HomeMy WebLinkAboutRES NO 307-06
RESOLUTION NO. 3 0 '( - 0 6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF BAKERSFIELD CONDITIONALLY CONSENTING TO
THE SALE OF A CABLE TELEVISION SYSTEM FROM
CEBRIDGE ACQUISITIONS, LP TO THE BRIGHT HOUSE
NETWORKS, LLC AND THE SURRENDER OF A CABLE
TELEVISION FRANCHISE AND TERMINATION AND
ABANDONMENT OF SERVICE BY CEBRIDGE
ACQUISITION, LP.
WHEREAS, on April 5, 2006, the City Council of the City of Bakersfield (the
"City") passed and adopted Resolution No. 093-06 consenting to the transfer of a
franchise (the "Franchise") to operate a cable television system (the "System") within
the City and the franchise agreement (the "Franchise Agreement") memorialized in the
City of Bakersfield Agreement No. 95-229 related thereto from CoxCom, Inc. to
Cebridge Acquisitons, LP d/b/a/ Suddenlink Communications ("Suddenlink"); and
WHEREAS, such consent to the transfer was subject to certain conditions, which
Suddenlink subsequently complied with ("the "Franchise Agreement" together with the
"Franchise" are collectively referred to herein as the "Franchise Rights"); and
WHEREAS, on October 13, 2006, Suddenlink notified the City that it had entered
into an Asset Purchase Agreement dated September 20, 2006 (the "Agreement") with
Bright House Networks, LLC ("Bright House Networks") and Advance/Newhouse
Partnership; and
WHEREAS, pursuant to the Agreement, Suddenlink proposes to sell and assign
to Bright House Networks the System and certain assets related thereto (the
"Transaction"); and
WHEREAS, on August 30, 1995, the City granted the Time Warner
Entertainment-Advance/Newhouse Partnership a non-exclusive cable television
franchise, which franchise was transferred and assigned to Bright House Networks on
December 31, 2002, with the approval of the City in accordance with that certain
franchise agreement memorialized in the City of Bakersfield Agreement No. 95-228;
and
WHEREAS, Bright House Networks currently operates a cable television system
in the City; and
WHEREAS, effective as of the closing of Transaction, Suddenlink seeks to
surrender its Franchise Rights and terminate and abandon service in the City as
Suddenlink believes that the public interest, convenience and necessity no longer fQ"'K~
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require that Suddenlink furnish service as authorized or required by the Franchise
Rights as Bright House Networks will provide such cable service to Suddenlink's
subscribers; and
WHEREAS, Sudden link has requested the consent of the City Council to sell and
transfer the System to Bright House Networks and to surrender its Franchise Rights and
terminate and abandon service in the City and has provided all information necessary in
order to facilitate a decision by the City Council; and
WHEREAS, the Franchise Agreement requires the City to hold a public hearing
regarding the abandonment of the Franchise Rights and requires Suddenlink to provide
fifteen days' notice of the hearing to all of its cable subscribers and Suddenlink has
done so; and
WHEREAS, City staff is familiar with the financial, technical and legal abilities of
Bright House Networks to fulfill the obligations associated with the System, followed all
required procedures to consider and act upon this matter, and considered the
comments of all interested parties and has found the sale and transfer of the System to
be in the public interest and recommends that the City Council approve the transfer of
the System to Bright House Networks; and
WHEREAS, City staff has reviewed the application of Suddenlink to surrender its
Franchise Rights and terminate service in the City, followed all required procedures to
consider and act upon the application, and considered the comments of all interested
parties and has found that the public interest, convenience and necessity no longer
require that Suddenlink furnish service as authorized or required by the Franchise
Rights and recommends that the City Council approve the surrender of Suddenlink's
Franchise Rights and the termination and abandonment of its service in the City; and
WHEREAS, City understands that various federal agencies must consent to the
transfer of the System from Sudden link to Bright House Networks and that, without such
consent, there will be no sale of the System to Bright House Networks.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield
as follows:
1. The above recitals and findings are true and correct and are incorporated
herein by reference;
2. The requisite public hearing was duly noticed;
3. The City Council hereby conditionally consents to (a) the sale and transfer
of the System from Sudden link to Bright House Networks and (b) the
surrender by Suddenlink of its Franchise Rights and the termination and
abandonment of Suddenlink's service in the City;
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4. The City finds it to be in the public interest, convenience and necessity to
permit Suddenlink to abandon its Franchise Rights, as Bright House
Networks has the ability to and will continue to provide the same or better
cable service to Suddenlink's current subscribers;
5. The City Council's consent to the sale and transfer to Bright House
Networks of the System and the surrender by Suddenlink of its Franchise
Rights and the termination and abandonment of Suddenlink's service in
the City shall be effective only upon the closing of the Transaction (the
"Effective Date") and Bright House Networks shall notify the City after the
closing of the Transaction;
6. If, for any reason, the Transaction cannot or does not go forward, there
will be no abandonment by Suddenlink of its Franchise Rights and it must
continue to provide service to its subscribers pursuant to the Franchise
Agreement;
7. The City Council confirms that Suddenlink is in material compliance with
the provisions of the Franchise Rights and the City Council releases
Suddenlink, upon the Effective Date, from all obligations and liabilities
arising in connection with the System and the Franchise Rights that
accrue on and after the Effective Date; and Bright House Networks shall
be responsible for any obligations and liabilities arising in connection with
the System that accrue on and after the Effective Date.
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I HEREBY CERTIFY that the foregoing Resolution was passed and adoptEid ~~
the Council of the City of Bakersfield at a regular meeting thereof held on NOV ~ ~ 2 6
by the following vote:
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ABSTAIN:
ABSENT:
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COUNCILMEMBER: M~~G!~D-,- CARSON, BENHAM, COUCH. HANSON, SULLIVAN, SCRIVNER
COUNCILMEMBER: ~
COUNCILMEMBER:
COUNCILMEMBER:
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/fSf>t. CITY CLERK and Ex Officio Clerk of the
Council of the City of Bakersfield
APPROVED NOV 2 9 2006
By
HARVEY L. HALL
Mayor
APPROVED as to form:
VIRGINIA GENNARO
City Attorney
By:
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