HomeMy WebLinkAboutItem 11 - Paragon Cable Franchise TransferMEMO TO:
FROM:
MEETING DATE:
SUBJECT:
RECOMMENDATION:
ITEM i /
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
ROGER NELSON, CITY MANAGER kl
DECEMBER 5, 2000
PARAGON CABLE FRANCHISE TRANSFER
City Council approve a resolution to approve the transfer of a cable television franchise
from Texas Cable Systems, L.P to TCI of Illinois.
FUNDING SOURCE:
The City of Grapevine will continue to receive fee payments as required by the franchise
agreement of 5% of gross receipts.
BACKGROUND:
Paragon Cable is currently managed and owned by the joint venture known as Texas
Cable Partners, L.P. The joint venture involves Time Warner and AT&T Corporation.
Dennis Moore, General Manager, of the Paragon Cable System in Grapevine submitted
a request to transfer our existing cable television franchise from the Texas Cable
Partners to TCI of Illinois, Inc. TCI of Illinois is affiliated with the AT&T Corporation.
Essentially, Time Warner and AT&T Corporation are exchanging systems in their
respective areas of Texas. The Paragon Cable system, with the approval of the
resolution, will be owned by TCI of Illinois, Inc. and will be operated as AT&T
Broadband. A number of cable systems in the south Texas region which are currently
operated by AT&T Corporation will then become a part of the Texas Cable Partners L.P.
The Staff met with Susan Patten, Time Warner Vice President of Governmental Affairs,
Dennis Moore, General Manager of Paragon Cable, and Dick Kirby, Regional Director of
Franchising for AT&T Broadband to discuss the transfer process. The Staff was
assured that all terms of the existing franchise would be honored. The Utilities
Committee also reviewed the franchise transfer with the respective company
representatives. TCI of Illinois, Inc. will market the service as AT&T Broadband by mid-
year 2001. The official transfer should appear seamless to Grapevine residents as there
should not be any disruption in service.
The Utilities Committee, the City Attorney and the Staff have reviewed the transfer and
recommend approval of the resolution.
November 29, 2000 (8:44AM)
0 RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, APPROVING THE TRANSFER OF
CABLE TELEVISION FRANCHISE WITH TEXAS CABLE
PARTNERS, L. P. TO TCI OF ILLINOIS, INC. AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Texas Cable Partners, L.P., a Delaware limited partnership
("Franchisee") owns, operates and maintains a cable television system (the "System") in
the City of Grapevine, Texas (the "Franchise Authority"), pursuant to a cable franchise (the
"Franchise"), and the Franchisee is the duly authorized holder of the Franchise;
WHEREAS, Franchisee, TCI Cablevision of Texas, Inc. Communications Services,
Inc., and Heritage Cablevision of Texas Inc., are parties to that certain Asset Exchange
Agreement dated as of August 23, 2000 (the "Exchange Agreement"), which provides for
the transfer of the System and the Franchise to TCI of Illinois, Inc. or its affiliate
("Transferee") at the closing contemplated by the Exchange Agreement (the "Closing");
WHEREAS, as of the date of closing of the transfer from Texas Cable Partners, L.P.
to Transferee, TCI of Illinois, Inc., does accept said assignment and assume all of the
duties and obligations of Texas Cable Partners, L. P. in the said Franchise Agreement
from and after the closing date.
WHEREAS, the Franchise Authority has investigated the qualifications of Transferee
and has received assurance the franchise would be honored and deems the transfer of the
Franchise to Transferee (the "Transfer") to be reasonable.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the above preamble are true and correct and
are incorporated herein as if copied in their entirety.
Section 2. That the Franchise Authority hereby consents to the Transfer of the
Franchise to Transferee, all in accordance with the terms of the Franchise.
Section 3. That this resolution shall take effect from and after the date of the
closing.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 5th day of December, 2000.
ATTEST:
RES. NO. 2