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HomeMy WebLinkAbout01/23/1992 B A K E R S F I E L D Patricia M. Smith, Chair Patricia J. DeMond Lynn Edwards Staff: Trudy Slater Larry Lunardini AGENDA LEGISLATIVE AND LITIGATION COMMITTEE Thursday, January 23, 1992 12:00 Noon City Manager's Conference Room 1. Warner Cable Request (Partnership Agreement) 2. Councilmanic Elections 3. Legislative Update 4. Set Next Meeting TO: All Counciimembers '-'.'.i;2F,~7;~L2 ~;7'-' .'. --" FROM: Clarence Mc~:lders ~. SUBJECT: Council Elections on Even Numbered Years DATE: November 18, 1991 ! believe the November 5, 1991 skimpy voter turnout indicates an absolute need for changing councilmanic elections to even years. If you don't think voters are concerned that we still hold odd-year elections at high cost and without appreciable turnout - you are not tuned in. Just think how disturbed they would be if they knew we could change it so easily - and wouldn't. The idea of wanting supervisors and school boards to change to odd years is not a viable aJternative. First, supervisor elections are set by State law. Then, people want less elec~ons, economicaJly feasible elections, and a lot less politics. To ask other entities to change to odd years would make every year election year over much of the coUnty at greater expense. We are the ones that are out of step. I'm going to make the' suggestion again t~at the ordinance for councilmanic election dates be changed to the June primaries (even years, of course) and that the elected persons take office the first meeting in July. This would extend ail current terms for 6 months plus and would not require a vote of the people..The alternative would be a referendum, which certainly can be done. The referendum process would be a baJlot measure with expenses involved and that's what people object to now. This is a money-saving, voter-pleasing, image-improving means to make a positive contribution to our city. urge you to make this change. Light voter turnout has some inherent dangers including the ease of recaJi. COMMUNICATIONS INC. i :' I '~' C[T'Y MAN.~,(~EFF~ OFF; ' November 13, 1991 = - . -. Mr. Dale Hawley Bakersfield City Manager -. 1501 Trux=un Avenue Bakersfield, CA 93301 Dear ~r. Hawley: I am pleased to inform you that Time Warner Inc., which is the parent corporation of Warner Cable Co--unica=ions ("Warner Cable"), has recently announced an agreemen= with Toshiba Corpora=ion and C. Itoh & Co., Ltd., to creaCe a unique s~rategic Partnership .ar the subsidiary level, to be known as Time Warner Entertainment Company, L.P. ("TWE ") · The limited partnership will own, or have an interest in, all of Time Warner' s cable, television system businesses and franchises, including those of Warner Cable, as well as Time Warner's filmed entertainment business (Warner Bros. and Lorimar Telepictures ) and ce=Cain of its cable television progra-~ng businesses (such as Home Box Office). T~me Warner, through subsidiaries, will be the managing general 9ar=net of TWE with full management, operational and creative control over TWE's cable and other businesses. TWE, which will have a to=al capitaiiza=ion of $20 billion, will issue 6.25% 1;~ted partnership interests to each of C. Itoh and Toshiba for their investment of $1 billion in TWE. The remaining 87.5% of TWE will be owned by Time Warner which will also have a 9referred equity interest in =he new company which =he par~ies have valued a~ approximately $5 billion. Time Warner may a~m~= other suitable l;m~ted par=hers to the venture in the future, but on a basis which preserves Time Warner's right to control and manage these businesses. Our new international partners · bring impressive resources, international influence, prestige and diversity to Time Warner Entertainment. Toshiba is a worldwide leader in. the manufacture of integra=ed high technology electronic and electrical products, including advanced information and teleco~mmnica=ion sys=-m~, electronic devices, heavy electrical equipment, consumer and other products. C. Itoh is the world's largest trading group and deals in a broad range of ~rodu.cts and services including electronics and co--unica=ions services · This transaction will have .no effect on-the ongoing local management of the cable system serving your community. -2- * There will be no adverse impact on your cable system, or its customers, services, business practices or personnel. * The day-to-day management of the cable system in your co~,~.~ni=y will remain the same. * Warner Cable will continue to run the operations of the cable system under its cable television franchises. * Warner Cable will continue to exist as an operating division of TWE. * The same officers and managers of Warner Cable will continue to hold their'current positions in a cable division of' TWE. * The corporate 'officers of Time Warner !nc. (the parent company of Warner Cable) will also service as officers of TWE. We believe that the formation of T~me Warner Entertainment will bring added strengths to Time Warner, including Warner Cable, and will assure a stronger, more technologically and crea=iveiy i~novative and exciting cable television company which can only benefit our customers. Although'the day-to-day operations and management control of Warner Cable will no= be adversely affected, our franchise may require your approval of the TWE transaction.. If you conclude, that such approval is required, we would appreciate the consideration and adop:ion of the accompanying form. of resolution. We, of. course, appreciate the. prompt adoption of such a resolution if.you conclude that it is in fao= necessary. For your information, I have enclosed a fact sheet containing a brief description of the transaction. We will contact you within the hex= few days to discuss any questions you may have. Thank you for your cooperation. Sincerely, C. W. Grinstead President CWG:ih Enclosures FACT SHEET TI:{E WARNER ENTERTAINMENT * T~e Warner Inc. has announced an agreement with two (2) ; partners to creaue a limited partnership at the subsidiary level to be known as Time Warner Entertainment Company, L.P. * TWE will have a total capitalization .of twenty billion dollars. 87.5% of the common equity in TWE will be owned by T~me Warner. As limited partners, Toshiba and C. Itoh will each own 6.25% of the common equity in TWE. Time Warner, through subsidiaries, will be the managing general partner of TWE wi~h full management, operational and creative control over all businesses of the partnership. * TWE will own, or have an interest in, all of the cable television systems operated by Warner Cable and ATC, plus the businesses of Warner Bros., Lor~m~r Telepictures and ~ome Box Office. * The franchises held by Warner Cable will be transferred to TWE. Warner Cable'wil! continue to exist, under current management, as a division of TWE. * The creation of TWE and the transfer of the franchises from Warner Cable to TWE will have no adverse affect on any cable television system. o There will be no adverse impact upon services, business practices or personnel as a result of this transaction. o The day-to-day management of the Systems will remain thm s~e, and all existing franchise obligations will be honored. o Warner Cable will continue to exist as an operating division of TWE. o The current officers and managers of Warner Cable will continue to hold the same positions. RESOLUTIO~t NO. WHEREAS, Warner Cable Communications Inc. is the holder of a cable television franchise (the "Franchise") for the (city/county) of ; and WHEREAS, Warner Cable Communications Inc. ("Warner Cable") is a wholly-owned subsidiary of Time Warner Inc., ("Time Warner") a widely held New York Stock Exchange company which intends to create a new. limited partnership entity comprised of the assets and opera=iOns of its filmed entertainment, progr~---ing and cable television businesses, which entity shall be known, as Time Warner Entertainment Company, L.P. ("~""~E"); and WHEREAS, Time warner will retain majority ownership as well as 'opera:lng and manaaement control of TWE; and will operate TWE as a con=rolled subsidiary, of Time .Warner consisting of the assets of Warner ' Cable Communications Inc. ("Warner Cable"), AmeriCan Television and 'Communications Corp.. ("ATC"), Lor~m~r Telepictures ("Lor~ar"), Home Sox Office !nc. ("~BO"), and Warner Bros..Inc. ( "Warner Bros. ") , including the. Franchise; and WHEREAS, Time Warner in:ends to offer minority limited partnership interes=s in TWE to Strategic partners in TWE, inciuding Toshiba Corporation and C. Itoh & Co'.; and. WHEP~AS, Warner Cable and ATC will continue to exist as opera:lng divisions of TWE, with the existing m~nagemen: str~¢ture surviving; and WHEREAS, at bo=h the local and corporate levels no change is anticipated in the manner in which the business and operations of Warner Cable communications Inc. ("Warner Cable") are conducted; and WHEREAS, the Warner Cable Co..~unica=ions Inc. ("Warner Cable'~} division of TWE will continue to operate the Franchise and will be responsible for all existing obligations under the Franchise~ NOW THEREFORE, be i: resolved that, insofar as may be necessaz7 or advisable under the Franchise, the transfer of the Franchise and related cable television system from the existing grantee either directly or through one Or more wholly-owned subsidiaries of Time Warner, to TWE is hereby authorized and consented to in ail respects'. This resoiu~ion shail take effect and be in force from and altar the eariier of the date of the finai passage hereof or the earlies: time perr..~ted by !aw. Passed this dav of , 1991. ATTE._ST: Daue Da=e