HomeMy WebLinkAboutORD 2002-042 ORDINANCE NO. 2002-42
AN ORDINANCE OF THE CITY OF GRAPEVINE
PROVIDING CONDITIONAL APPROVAL OF CONSENT TO
CHANGE OF CONTROL OF THE CABLE FRANCHISE,
PROVIDING A SEVERABILITY CLAUSE, DECLARING AN
EMERGENCY AND PROVIDING AN EFFECTIVE DATE
WHEREAS, TCI OF ILLINOIS, INC. (hereinafter referred to as "Franchisee") is
currently a franchisee for cable services in the City of Grapevine pursuant to Ordinance
No. 97-62 (the "Franchise"); and
WHEREAS, Franchisee is an indirect subsidiary of AT&T Corporation ("AT&T"),
and AT&T has proposed a change of control of Franchisee from AT&T to AT&T
Comcast Corporation ("AT&T ComcasY'); and
WHEREAS, Franchisee, AT&T, and AT&T Comcast have requested the City's
consent to the change in control in accordance with Section 15 "Assignment of
Franchise" of the Franchise and have filed an FCC Form 394 with the City requesting
such consent; and
WHEREAS, the City has retained the services of C2 Consulting Services to
'�`� review the FCC Form 394, with respect to the legal, financial, and technical capacity of
AT&T Comcast to control Franchisee, and Franchisee's related ability to continue to
adhere to the requirements and conditions of the Franchise; and
WHEREAS, the City is willing to consent to the proposed change of control as
detailed in the FCC Form 394, pursuant to the conditions set forth below.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the preamble are found to be true and
correct and are incorporated herein as if copied in their entirety.
Section 2. That AT&T Comcast agrees that Franchisee will abide by the
lawful and applicable terms of the Franchise and its amendments, and all other
ordinances of the City of Grapevine.
Section 3. That Franchisee agrees that it will provide service pursuant to the
lawful and applicable requirements of the Franchise and its amendments after the
- - closing.
�.:� Section 4. That subject to Franchisee's compliance with the provisions
contained herein, the City of Grapevine accepts the change of control of the Franchisee
to AT&T Comcast. Such acceptance does not preclude further investigation by the City
of Grapevine of any potential franchise violations, including those occurring prior to the
change of control. Franchisee agrees that with respect to any violation or non-
�_ rt compliance issues that are not extinguished prior to change of control, the City of
Grapevine will have all rights to continue investigation of such matters following the
close of the merger under the terms set forth in the franchise agreements. Although
AT&T provided almost all of the answers, the City of Grapevine disagrees with AT&T's
position that the requests for information are outside the appropriate scope of review for
the change of control.
Section 5. That any actions which have the effect of circumventing payment
of any lawfully required ordinance fees and/or evasion of payment of the ordinance fees
by non-collection or non-reporting of gross receipts, bartering, or any other means
which evade the actual collection of revenues for business authorized by the Franchise
are prohibited. Pursuant to the Texas Constitution, the City is prohibited from granting
anything of value without compensation. The City has the right to audit all records
relating to the calculation of the franchise fee.
Section 6. AT&T Comcast acknowledges that the City has certain franchise
fee audit rights pursuant to the franchise. AT&T Comcast assures that it does not have
any contractual or other restrictions that will limit the ability of the Grantee to provide all
relevant information concerning the payment of franchise fees as required by the
franchise agreement between Grantee and the City
Section 7. That by granting this change of control, the City does not waive
"�`" and specifically retains any right to regulate and receive compensation as allowed by
law for all Cable Services offered over the Cable System. Upon request and if the City
is lawfully allowed to make such a request, Franchisee shall inform the City of any uses
of the Cable System by persons who are not Cable Operators.
Section 8. That within thirty (30) days from the effective date of this ordinance,
Franchisee shall hereby accept this Ordinance and agrees to be bound by all of its terms,
conditions, and provisions, subject to applicable law by signing below. If Franchisee does
not provide such agreement, this consent shall be null and voidable at the City's
discretion.
Section 9. If any section, paragraph, subdivision, clause, phrase, provision or
word of this ordinance shall be judged invalid or unconstitutional, such judgments shall
not affect the remainder of this ordinance.
Section 10. The fact that the present ordinances and regulations of the City of
Grapevine, Texas are inadequate to properly safeguard the health, safety, morals,
peace, and general welfare of the public creates an emergency which requires that this
ordinance become effective from and after the date of its passage, and it is accordingly
so ordained.
�:.,.. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 18th day of June, 2002.
ORD. NO. 2002-42 2
APPROVED:
William D. Tate
Mayor
ATTEST:
,. �
. �
Linaa Huff
City Secretary
APPROVED AS TO FORM:
�, � �����,4� ,.� �
} ��.
�`"� �vlatthew Boyle t
City Attorney TCI OF ILLINOIS, INC.
. >
Its: /d� �'
� .�
ORD. NO. 2002-42 3