2005 AGN OCT 04 I09 - Laserfiche WebLink

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ITEM #9 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF OCTOBER 4, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DARYL PARRISH, CITY MANAGER SUBJECT: RESOLUTION CONDITIONALLY APPROVING TRANSFER OF CABLE FRANCHISE FROM ADELPHIA TO TIME WARNER DATE: SEPTEMBER 27, 2005 BACKGROUND: Earlier this year, the City concluded negotiations with Adelphia Communications regarding a renewal of Adelphia's cable television franchise. As part of the ongoing bankruptcy proceedings involving Adelphia, Time Warner Cable has agreed to purchase many Adelphia cable systems, including the system in Colton. In order to complete the proposed purchase, Time Warner needs to obtain approval from the City for the transfer of the cable franchise, and Time Warner has filed with the City the proper form to request transfer approval. ANALYSIS: City staff and the City Attorney's office have reviewed the information submitted by Time Warner in connection with its transfer application. Time Warner does appear to have the legal, financial, and technical capabilities to operate the cable system in Colton. It also appears that areas such as system maintenance and customer service that have been problems at times under Adelphia may improve under Time Warner, as Time Warner seems to be operating on a more sound financial footing. The proposed new franchisee is a new limited liability company (LLC) that has apparently been formed specifically to own and operate former Adelphia systems acquired by Time Warner; it will be an indirect subsidiary of Time Warner Cable. As a result, many cities have requested that Time Warner Cable provide a guarantee that the LLC will fulfill its obligations under the various franchise agreements that the LLC will acquire. Time Warner has agreed in principle to do so if the resolution and guarantee are in the form negotiated by the City Attorney's office and Time Warner. The attached resolution and the guarantee it contains are consistent with the form agreed to in principle by Time Warner.