1999 AGN JUL 20 I19 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT Council Meeting of July 20, 1999 TO: Honorable Mayor and Council Members APPROVAL: Henry T. Garcia, City Manager L FROM: Daryl J. Parrish, Assistant City Manager SUBJECT: Transfer of Cable Television Franchise in the City of Colton from TCI Cablevision of California to Century—TCI California L. P. DATE: July 13, 1999 BACKGROUND: Recently the City of Colton received an Application for Franchise Authority Consent for Assignment of Cable Television Franchise (FCC Form 394) from TCI Cablevision of California to Century -TCI California L. P. This request is a result of an asset contribution agreement entered into between TCI Cablevision of California and Century -TCI California L. P. a partnership between certain affiliates of TCI California and Century Communications Corporation. The asset contribution agreement is an eighty-one page document containing financial and other documentation that outlines the details of the transaction between TCI California and Century -TCI California L. P. The asset contribution agreement is available for review in the City Manager's Office. DISCUSSION/ANALYSIS; TCI California and Century Communications have formed the partnership Century -TCI California L. P. to strengthen its position in the Southern California marketplace. At the same time Century Communications is in the process of merging with Adelphia Communications Corporation and Adelphia will become the new ultimate parent company of all of Century's various cable subsidiaries (including the Century -TCI California Partnership which will include the Colton Cable Franchise). The Century — Adelphia transaction is estimated to be consummated within approximately ninety days. Section 4.5 of the Franchise Agreement requires that the "right, title or interest in the Franchise shall not be sold, transferred, assigned or otherwise encumbered without the prior consent of the Franchising Authority and that such consent will not be unreasonably withheld." While the assignment of the franchise from TCI California to Century -TCI California L. P. requires the Franchising Authority's consent, the Century - Adelphia merger does not as the merger does not contemplate the sale, transfer, or assignment of any individual franchise or any individual cable system and the corporate structure of Century and the Partnership remains largely unchanged. The results of the transactions discussed in this report will not effect cable rates or the level of service currently provided by TCI California to its customers. The Century -TCI Partnership will continue to service its Colton customers from its offices located nearby in the City of Redlands. Finally, the Century -TCI Partnership will be required to meet Item #19