1999 AGN AUG 03 I02 - Laserfiche WebLink

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ClTY OF COLTON AGENDA REPORT Councii Meeting of August 3, 1999 TO: Honorable Mayor and Council Members APPROV,AL: Henry T. Garcia, City Manager � FROM: Daryl J. Parrish, Assistant City Manager � SUBJECI�: Transfer of Cable Television Franchise in the City of C�Iton from TCI Cablevision of Califomia to Century—TCI Califom'ra L. P. DATE: July 13, 1999 BACKGRiDUND: Recently the City of Colton received an Application for Franchise Authority Consent for Assignme��t of Cable Television Franchise (FCC Form 394) from TCI Cablevision of Califomia to Century-TCI Califomia L. P. This request is a result of an asset contribution agreement entered into between TCI Cablevision of Califomia and Century-T�f Califomia L. P. a partnership between certain affiliates of TCI Califomia and Century Communications Corporation. The asset contribution agreement is an eighty-one page document containing financia! and othe� documentation that outlines the details of the transaction between TG Califomia and Century-TCI Caiifomia L. P. The asset contribution agreement is available for review in the City Manager's Office. DISCUSSION/ANALYSIS: TCl Califomia and Century Communications have formed the partnership Century-TC� Califomia l�. P. to strengthen its position in the Southem Califomia marketplace. At the same time� Century Communications is in the process of inerging with Adelphia Communications Corporation and Adelphia will become the new ultimate parent company c�f all of Century's various cable subsidiaries (including the Century-TCI Califomia l�artnership which will include the Colton Cable Franchise). The Century — Adelphia transaction is estimated to be consummated within approximately ninety days. Section 4.a of the Franchise Agreement requires that the "right, title or interest in the Franchise :>hall not be sotd, transferred, assigned or otherwise encumbered without the prior cons�ent of the Franchising Authority and that such consent will not be unreasanab{y withheid." While the assignment of the franchise from TCI Califomia to Century-T�I Califomia L. P. requires the Franchising Authority's consent, the Century- Adelphia rnierger does not as the merger does not contemplate the sale, transfer, or assignmenf; of any individual franchise or any individual cable system and the corporate structure of Century and the Partnership remains largeiy unchanged. The results of the transactions discussed in this report will not effect cable rates or the level of service currently provided by TCI Califamia to its customers. The Century-TCI Partnership will continue to service its Colton customers from its offices located nearby in the City c►f Redlands. Finaliy, the Century-TCI Partnership will be required to meet � Item #2 ._ . _