HomeMy WebLinkAboutOrdinance 12105
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w?~ ORDINANCE N0. L~
AN ORDINANCE AMENDING ORDINANCE NOS. 8291 AND 10193 AND
FRANCHISE AGREEMENT DATED AUGUST 11, 1981; GRANTING
CONSENT TO THE ASSIGNMENT AND TRANSFER OF A CABLE
TELEVISION SYSTEM AND FRANCHISE FROM SAMMONS OF FORT
WORTH, INC. TO MARCUS CABLE ASSOCIATES, L.P.; AND
APPROVING AN ACCEPTANCE AGREEMENT
WHEREAS, the City of Fort Worth has granted a cable television
franchise to Sammons of Fort Worth, Inc. ("Sammons") pursuant to
Ordinance No. 8291 and Franchise Agreement dated August 11, 1981,
as amended by Ordinance No. 10193 (collectively the "Franchise");
and
WHEREAS, on April 5, 1995, Sammons as seller and Marcus Cable
Associates, L.P. as buyer ("Marcus") entered into an Asset Purchase
Agreement pursuant to which Sammons agreed to assign and transfer
the Franchise and its cable television system in the City to
Marcus; and
WHEREAS, Marcus and Sammons submitted an Application for
Franchise Authority Consent on FCC form 394 providing certain
information with respect to the parties and the proposed transfer;
and
WHEREAS, Marcus and Sammons submitted additional information
and documents relating to the transaction- and its effect on the
provision of cable television service within the City in response
to requests of the City; and
WHEREAS, the City is relying upon the information and
documents submitted by Marcus and Sammons in acting upon the
,', Application for Franchising Authority Consent; and
WHEREAS, the City intends to consent to the transfer and
assignment, subject to Marcus' acceptance of the terms and
conditions set forth herein, having determined that such consent is
in the best interest of and consistent with the public necessity
and convenience of the City;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
Section 1. The City does hereby consent to the transfer
and assignment of the Franchise and the cable television system in
the City from Sammons to Marcus Cable Associates, L.P. in the
manner proposed, subject to the following:
a. Execution by Marcus of an Acceptance Agreement in the
form attached hereto and incorporated herein as Exhibit
1; and
b. Execution by Marcus Cable Operating Company, L.P., Marcus
Cable Company, L.P., and Marcus Cable Properties, L.P. of
an agreement in the form attached hereto and incorporated
herein as Exhibit 1 unconditionally guaranteeing Marcus'
performance of the obligations of the Franchise and the
Acceptance Agreement.
Section 2. Marcus may, at any time and from time to time,
assign or grant or otherwise convey one or more liens or security
interests in its assets, including its rights, obligations and
benefits in and to the cable television system and Franchise, to
any lender providing financing to Marcus. Any assignment or
transfer by a lender or as a result of a foreclosure will require
the City's consent as provided in the Franchise.
Section 3. To the extent that this ordinance or the
attached Acceptance Agreement modifies any of the terms and
conditions of Ordinance No. 8291, Ordinance No. 10193 or the
Franchise Agreement dated August 11, 1981, said ordinances and
Franchise Agreement are hereby amended. Except as hereby amended,
the provisions of Ordinance Nos. 8291 and 10193 and the Franchise
Agreement dated August 11, 1981 shall remain unchanged.
Section 4. The City Secretary is hereby directed to
publish this ordinance in its entirety once a week for four (4)
consecutive weeks within a period of thirty ( 30 ) days after its
passage in the official newspaper of the City, as required by
Section 2 of Chapter XXV of the City Charter.
Section 5. This ordinance shall be in full force and
effect from and after its passage, publication and written
acceptance by Marcus as above specified; provided however, that
this ordinance shall expire on March 31, 1996 and shall be of no
further force and effect if the transactions described in the Asset
Purchase Agreement between Marcus and Sammons have not closed by
that date; and it is so ordained.
Adopted this /~~ day of 1.~.~-(f r
1995.
Attest:
City Secretary
A proved as to F and Legality:
ity Attor eye
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Mayor
ACCEPTANCE BY MARCUS OF TERMS AND CONDITIONS TO
TRANSFER OF A CABLE TELEVISION SYSTEM AND FRANCHISE
("ACCEPTANCE AGREEMENT")
Marcus Cable Associates, L.P. ("Marcus") makes the following
agreement for the purpose of accepting Ordinance No. /o2./Z~S~ of
the City of Fort Worth, Texas ("City"j consenting to the transfer
of the franchise granted by Ordinance No. 8291 and Franchise
Agreement dated August 11, 1981, as amended from Sammons of Fort
Worth to Marcus Cable Associates, L.P.
Marcus Cable Operating Company, L.P., Marcus Cable Company,
L.P., and Marcus Cable Properties, L.P. join this Agreement for the
purpose of guaranteeing Marcus' performance of the Franchise and
this Agreement.
1. The promises, covenants, and conditions contained herein
inure to the benefit of the City and are binding on Marcus.
2. Marcus acknowledges that the transactions described in
the Asset Purchase Agreement dated as of April 5, 1995, between
Marcus Cable Associates, L.P. as buyer and Sammons Communications,
Inc., Sammons of Fort Worth, and other entities as seller
(collectively "Sammons") , and the transfer of the franchise granted
by Ordinance No. /~/0_~ (the "Ordinance" or "Franchise")
pursuant thereto are expressly subordinate to and will not affect
the binding nature of the Franchise and the obligations of the
Grantee provided for therein, and that the consent of the City to
the transaction does not constitute a waiver or release of any
rights of the City. Marcus assumes and agrees to perform all of
the obligations of the Franchise including any obligations to make
refunds for periods prior to the transfer.
3. Marcus acknowledges that the City has consented to the
transaction in reliance upon the representations, documents and
information provided by Marcus and Sammons, all of which are
incorporated herein by reference.
4. Customer Service.
(a) Marcus will comply with the customer service rules
of the FCC as presently in effect, 47 CFR ~ 76.309.
Marcus's compliance shall be measured and enforced
as follows:
(i) For the purpose of such rules "normal business
hours" therein are deemed to be 8:00 AM to
7:00 PM Monday through Saturday.
E%HIBIT 1
(ii) Transfer to or answering by a voice mail
system (or other automated response system)
does not constitute answering "by a customer
representative" under § 76.309(c)(ii) or
analogous provisions of such rules.
(iii) Within 20 business days of the close of each
calendar quarter (or monthly, if the City
requests same), Marcus will provide the City
with a report in such form as the City and
Marcus may reasonably agree, setting forth on
a consistent basis, fairly applied, Marcus's
performance as compared to such standards,
including in particular as compared to the
standards for telephone answer time, busy
signals, standard installations, service
interruptions, appointment windows, refunds
and credits.
(iv) Such reports shall show and use the telephone
calls originating from within the City if that
information is readily available from the
system, and as to installations, service
interruptions, appointment windows, refunds,
credits and the like shall show and use data
only for subscribers in the City.
(v) Such reports shall show Marcus's performance
including and excluding any periods of
abnormal operating conditions, and if Marcus
contends that any such abnormal conditions
occurred during the .reporting period in
question, they shall also describe the nature
and extent of such conditions.
(vi) Marcus acknowledges that noncompliance with
customer service standards will harm
subscribers and the City and that the extent
of harm will be difficult or impossible to
measure. The City may therefore assess
liquidated damages against Marcus for non-
compliance with the preceding customer service
standards as follows: The FCC Rules currently
state as to § 76.309(c)(1)(ii) and (iv); and §
76.309(c)(2)(i), (ii), (iii) and (iv)
(collectively "quarterly customer service
standards") that the standards set forth
therein "shall be met no less than ninety (90)
percent of the time under normal operating
conditions measured on a quarterly basis."
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a. Liquidated damages may be assessed if
Marcus does not meet the ninety (90)
percent standard for a given subsection
[for example, §76.309 (c)(2)(ii)) of the
quarterly customer service standards in a
given calendar quarters as follows:
Third and
First Non- Second Non- subsequent
compliance compliance Noncompliance
0 $5,000 $10,000
b. The City may collect liquidated damages
from any bond or letter of credit fur-
nished under the Franchise.
c. Marcus will accept procedures for con-
sideration and assessment of liquidated
damages under paragraph 4(a) of this
Acceptance Agreement that include at
l least the following:
• Notice in writing of non-compliance
and proposed assessment of liquidated
damages fourteen (14) days prior to
any action of the City Council; and
• An opportunity to be heard at a
meeting of the City Council prior to
action being taken.
(vii) Marcus will not change the location of its
offices in the City of Fort Worth for a period
of eighteen (18) months after the closing of
the transfer of the Fort Worth franchise.
(b) In the event of a change in 47 CFR ~ 76.309 that
makes any of the Federal customer service standards
therein less stringent than those in effect in
July, 1995, the City may adopt customer service
regulations as to the subject matter of the portion
of the rule that is changed. City agrees to meet
with Marcus on any proposed changes prior to taking
action on them, and to provide Marcus with at least
60 days notice of such action. Marcus agrees to
comply with any such provisions that are no more
stringent than those contained in 47 CFR ~ 76.309
as in effect in July, 1995 and to such extent
agrees that it is not entitled to recover the costs
of such compliance through external cost treatment
or otherwise.
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(c) Marcus acknowledges that under applicable law the
City may unilaterally establish and enforce
reasonable customer service regulations that exceed
or are not addressed by the standards established
by the FCC or the standards currently established
by the Franchise.
(d) Marcus will provide at minimum the same quality of
customer service that Sammons is currently
providing, but in all events no less than the
quality of service required by the Franchise, any
other applicable City ordinance and applicable FCC
regulation. As evidence of and to assist in
compliance with such commitment, Sammons and Marcus
agree as follows:
1. On an annual basis Marcus will provide the
City with historical expenditure information
and staffing levels on customer service
related matters; the customer service
standards currently used; its materials, if
any, on same as used by its customer service
representatives; and its procedures and forms
used to measure compliance with applicable
customer service standards.
2. Marcus will provide such other information as
the City reasonably requests relating to
customer service matters.
3. In addition to its other customer service
obligations, Marcus agrees to comply with the
National Cable Television Association's On-
Time Guarantee as announced on March 1, 1995.
5. Signal Ouality. The following shall apply to Marcus'
implementation of and compliance with the rules and
regulations relating to cable television technical
standards for signal quality adopted by the FCC in MM
Dockets 91-169 and 85-38 on February 13, 1992 and
subsequent amendments thereto:
(a) All testing for compliance with the FCC technical
standards shall be done by a person with the
necessary expertise and substantial experience in
cable television matters.
(b) Upon request, Marcus shall provide the City with
the written report of such testing.
(c) Marcus shall establish the following procedure for
resolving complaints from subscribers about the
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quality of the television signal delivered to them:
All complaints shall go initially to the manager of
Marcus' local office. All matters not resolved by
the manager shall at Marcus' or the subscriber's
option be referred to City for attempted
resolution. All matters not resolved at that step
shall be referred to the FCC for it to resolve.
(d) Marcus shall annually notify its subscribers of the
preceding.
(e) Upon request by the City, Marcus at its expense
will test the system in areas or at subscriber
locations specified by City where there are
apparent problems and provide City with the written
report of such testing. If the test shows a non-
compliance with such standards, Marcus will bring
the system into compliance with such standards
within 180 days.
6. Prior Defaults. Marcus agrees on behalf of itself and
its affiliates that it will not contend directly or indirectly that
any defaults or failures to comply with the franchise or other
matters set forth in 47 USC ~ 546(c)(1)(A) (Communications Act of
1934, Section 626(c)(1)(A)) (collectively "defaults") by Sammons
occurring prior to the transfer to Marcus are waived, including but
not limited to the following:
(a) The ability of the City to obtain redress for prior
defaults, such as recovery of any underpayment of
franchise fees.
(b) The ability of the City to enforce in the future
any Franchise terms which may not have been
enforced in the past.
Marcus reserves the right to contend that the
transfer and the City's approval thereof preclude the
City from considering defaults that occurred prior to the
transfer in connection with any renewal or non-renewal of
the Franchise. The City reserves the right to oppose
such contention.
The City confirms that it has informed Marcus of all defaults
or other instances of noncompliance with the Franchise of which the
City Administrator primarily responsible for cable television
matters is aware as of the date hereof (without, however, having
conducted any financial or other audit of performance or
compliance).
7. Validity of Franchise. Marcus accepts and agrees to be
bound by the terms and conditions of the City Charter, the
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Franchise and all other ordinances applicable to its operations
after the transfer. Marcus does not contend that any provision of
the Franchise is unlawful or unenforceable, nor is it aware of any
other ordinance or any provision in the City Charter which it
contends is unlawful or unenforceable. The City acknowledges that
the Franchise is in full force and effect.
8. Service and Equipment for Public Facilities.
(a) Marcus will continue
installation and service
facilities as Sammons is
time, but in all events n
the Franchise or any
ordinance.
to provide the same
without charge to public
providing at the present
o less than is required by
other applicable city
(b) In addition, at the City's request Marcus will
provide to the public facilities identified in the
Franchise or other applicable city ordinance the
highest level of installation and service without
charge as it provides to any other community in the
Fort Worth area.
(c) If any service or equipment for public facilities
provided pursuant to subsections (a) and (b) above
exceeds the requirements of the Franchise or other
applicable city ordinance, Marcus will not pass
through the costs as so-called "external costs" or
as new franchise requirements, except that Marcus
may pass through the cost of such services under
subsection (b) above that exceeds the requirements
of the franchise or other applicable city ordinance
to the extent that cost exceeds $5,000 per year.
9. EEO Matters.
(a) Marcus agrees to set goals for contracts to be
entered with qualified Fort Worth minorities, women
and other residents to provide goods, equipment and
services to Marcus.
(b) Marcus agrees to set goals for jobs (including
supervisory and midmanagement positions) to be. made
available by Marcus to qualified Fort Worth
minorities, women and residents. To this end,
Marcus agrees to faithfully adhere to all
applicable federal, state and city laws, rules and
regulations pertaining to non-discrimination, equal
employment and affirmative action.
(c) During the term hereof, Marcus agrees to share
information developed in paragraphs (a) and (b)
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above upon request of the City. Marcus will
furnish the City with the foregoing goals and its
concept proposals for meeting them within 120 days
after the transfer.
10. Access to Records. The records and reports of the
franchise grantee which are to be submitted to the City or
otherwise made available for the City (such as for inspection by
the City) pursuant to the Franchise or other ordinance or charter
provisions of the City shall include records maintained by Marcus
Cable Operating Company, L.P., Marcus Cable Company, L.P., Marcus
Cable Properties, L.P., and their affiliates to the extent
necessary for the City to discharge its responsibilities under the
Franchise, FCC rules or state or local law, or to insure compliance
with the Franchise or this Agreement.
11. Franchise Requirement.
(a) Marcus will give the City 60 days notice in writing
prior to allowing any telecommunications entity
other than Marcus to use or lease its facilities
(other than towers) in the City or capacity thereon
or to amending any agreement with such an entity.
No such arrangements or uses are presently in
existence except as have been disclosed.
"Telecommunications entity" means any entity
subject to the jurisdiction of or regulated by the
Federal Communications Commission (such as under
the Communications Act of 1934 as amended) or the
Texas Public Utility Commission or their
successors, including telephone, alternative access
and cable companies. Marcus will provide the City
with such documents relating to the foregoing as
the City may reasonably request, including copies
of the agreements.
(b) Marcus will give the City 60 days notice in writing
prior to providing telecommunications services
within the City or making its facilities (other
than towers) available to others for that purpose.
"Telecommunications services" means conventional
telephone service, such as switched local exchange
service; and non-switched services, such as
alternative access service which connect user
locations and connect users to long distance
companies.
(c) Nothing herein shall expand or modify any
restrictions or limitations under the Franchise or
applicable law on use for telecommunication
purposes of the facilities being acquired by
Marcus.
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12. Transaction Transparent to Rates. Marcus acknowledges
that the transfer, the consent process, the City's action granting
consent, and this Acceptance Agreement do not provide any basis for
increasing the amounts paid by subscribers through cost pass-
through as so-called "external costs" or as new franchise
requirements and the consent process, action, and this agreement do
not provide any basis for increasing the amounts paid by
subscribers in any other manner.
13. Other Matters.
(a) In the event of any conflict between the terms of
this Acceptance Agreement and the Franchise or any
City Ordinance, that provision which provides the
greatest benefit to the City, in the opinion of the
City Council, shall prevail.
(b) Marcus will join the City in obtaining from the FCC
any waivers from time to time necessary to
effectuate the provisions of this Acceptance
Agreement.
(c) If the transfer of the Franchise to Marcus Cable
Associates, L.P., is not completed on or before
March 31, 1996, then at the City's option prior to
the transfer occurring, this agreement and the
City's consent to transfer shall become null and
void. Such option may be exercised prior to the
transfer occurring by the City giving written
notice to Marcus and Sammons at the addresses
designated in the Asset Purchase Agreement dated as
of April 5, 1995.
(d) Marcus will cause the City to be reimbursed, by
Sammons or otherwise, for its reasonable expenses
in connection with the consent process including
publication costs and fees of consultants and
attorneys. Such reimbursement shall not exceed the
aggregate amount of $125,000 plus publication costs
for the City and the other municipalities which
have acted with the City in connection with the
consent process.
(e) The term "affiliate" means any individual,
partnership, association, joint stock company,
trust, corporation, or other person or entity who
owns or controls, or is owned or controlled by, or
is under common ownership or control with the
entity in question.
(f) Venue of any suit under or arising out of this
Agreement shall be exclusively in Tarrant County,
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Texas or in the United States District Court for
the Northern District of Texas. This Agreement
shall be construed in accordance with the laws of
the State of Texas.
14. Review of Purchase Price. The Ordinance contains
provisions relating to review by the City of the price paid by
Marcus for the system and the impact of that price on future rates .
In light of the present limitations and uncertain future of rate
regulation, the parties have agreed not to address the
interpretation, application and enforceability of these provisions
in the consent process. All such matters may be raised and decided
in the future. Marcus agrees that the City has not waived any
claims or rights it may have in that connection by failing to
pursue them in the transfer approval process.
15. State-of-the-Art System. The City has made Marcus aware
that it believes Sammons has not complied with "state-of-the-art"
requirements of the Franchise, including requirements for "modern
and efficient service." The parties have not addressed this issue
in connection with the application for approval of the transfer.
All such matters may be raised and decided in the future. Marcus
agrees that the City has not waived any claims and rights it may
have under this provision by failing to pursue them in the transfer
approval process.
16. Other provisions.
(a) The letter of intent between Sammons and the City
of Fort Worth dated August 25, 1986 relating to the
Fort Worth traffic control system is hereby adopted
and confirmed as a definitive agreement. They
parties agree to continue their historical practice
with respect to expense reimbursement.
(bj Sammons' proposal for the Franchise included a line
extension standard of thirty homes per contiguous
mile. However, the Franchise as awarded provides a
standard of fifty homes per contiguous mile.
Article I, Section 5 of the Franchise provides that
in the event of a conflict between the proposals
and the ordinance, the provision which provides the
greatest benefit to the City shall prevail. Marcus
therefore agrees to provide line extensions based
upon a thirty homes per contiguous mile standard
after the transfer.
(c) Marcus agrees to comply with the provisions of
Ordinance No. 10193 amending the Franchise,
including continuation of the funding and channel
locations of the five access channels.
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~.~.
(d) Marcus acknowledges that the City has requested and
Marcus will provide the following reports to the
City, subject to applicable subscriber privacy
requirements:
• Evidence of compliance with FCC's technical
standards
• Proof of performance test data
• Signal leakage logs and repair records
• Records of subscriber complaints
• Records of subscribers (for fee purposes)
• A current list of channels offered to
subscribers
• An updated copy of commission's cable
regulations
5. Marcus will also maintain the following records in
the City of Fort Worth for public inspection,
subject to applicable subscriber privacy
requirements:
• Political advertising records
• Sponsorship ID records
• Commercial records for children's programming
• EEO records
• Proof of performance test data
• Signal leakage & repair logs
• Leased access records
• List of broadcast stations carried pursuant to
FCC must-carry provisions
• Location of principal headend
6. Marcus will make arrangements that are reasonably
satisfactory to the City to prorate subscriber
billings in the event of an outage of which Marcus
is aware without the necessity of a request by the
subscriber.
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7. Marcus will inform the City of changes in service,
rates and procedures at least fifteen days prior to
informing subscribers.
17. Reliance b Cit on Financin Information:
Marcus has informed the ci.ty's ;~i.nancial consultant, KFA
Services, of the terms of commitments it has received from equity
investors and lenders for financing its acquisition of the Sammons
systems. RFA Services' report of August 4, 1995, is based in part
on this information. Marcus acknowledges that the City is relying
on that report in acting on the application for approval of the
transfer. Marcus agrees to inform the City's financial consultant
of any material differences between its final financing
arrangements and those disclosed in the approval process. Marcus
further agrees that the City may withdraw its approval and
reconsider the application if any such differences would have a
material adverse effect on Marcus or the subscribers.
Marcus Cable Associates, L.P~.
Dated: November 1, 1995 By:
`~~.1
Marcus Cable Operating Company, L.P., Marcus Cable C~mpany,
L.P., and Marcus Cable Properties, L.P., hereby uncondit'onallX
guarantee perforlaance of the obligations of the Franchise and of
this Acceptance Agreement by Marcus Cable Associates, L.P.
Marcus Cable Operating
L.P.
Dated: November 1. 1995 Hy:
"~
Comp ~ y,
.
Marcus Cable Company, L.P. *
Dated: NosrPmhAr ].._, i qAS BY:
Marcus Cable Properties, L.P.
Dated: November 1 , 1995 By; ~~9 ~ ~~L:._~.J
* Name: Daniel J. Wilson I
Title: Vice President of
Marcus Cable Properties, Inc.,
the ultimate general partner
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City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE I
08/22/95 G-11195 12CABLE 1 of 2
SUBJECT GRANTING CONSENT TO ASSIGNMENT AND TRANSFER OF CABLE TV SYSTEM
AND FRANCHISE FROM SAMMONS OF FORT WORTH, INC TO MARCUS CABLE
ASSOCIATES, L P
RECOMMENDATION
It is recommended that the City Council adopt the attached ordinance granting the City's
consent to the assignment and transfer of a cable television system and franchise from Sammons
of Fort Worth, Inc to Marcus Cable Associates, L P
DISCUSSION
On May 1, 1995, Sammons of Fort Worth ("Sammons")asked the City of Fort Worth to consent
to the assignment and transfer of its cable television system and franchise to Marcus Cable
Associates, L P ("Marcus") On April 5, 1995 Marcus entered into an "Asset Purchase
Agreement to purchase certain Sammons cable properties that included the Fort Worth system
Sammons was granted a franchise to operate a cable television system in Fort Worth in 1981
In 1988, the franchise was amended and extended to 2006
Because Marcus was created in 1990 and has been rapidly expanding and because the proposed
purchase of the Sammons systems is a 5962 5 million transaction, the City of Fort Worth and
18 other North Texas communities served by Sammons engaged cable experts to review the
proposed transfer and to assist in defining the terms and conditions for a transfer The law firm
of Varnum, Riddering, Schmidt & Howlett of Grand Rapids, Mich, was retained The consultants,
in turn, contracted with KFA Services to conduct a financial review
After extensive review, KFA Services has determined that Marcus Cable has the financial
capability to operate the Sammons system in Fort Worth and to pay the associated debt, based
on financial information provided by Marcus See Attachment "A"
In extensive negotiations, the consortium of cities, Sammons, and Marcus have negotiated an
Acceptance Agreement which establishes terms and conditions for the transfer from Sammons
to Marcus The Agreement (Exhibit "1" of the Ordinance) outlines among other items customer
services levels, signal quality, prior defaults, service and equipment for public facilities, equal
employment matters, franchise requirements relating to entering telephone business and other
matters particular to Fort Worth The franchise will be held by Marcus Cable Associates, L P
Performance will be unconditionally guaranteed by the Marcus parent organizations -- Marcus
Cable Operating Company, L P ,Marcus Cable Company, L P ,and Marcus Cable Properties, L P
City of Fort Worth, Texas
Mayor and Council Communication
DATE
08/22/95 REFERENCE NUMBER
G-11195 LOG NAME
12CABLE PAGE
2 of 2
SUBJECT GRANTING CONSENT TO ASSIGNMENT AND TRANSFER OF CABLE TV SYSTEM
AND FRANCHISE FROM SAMMONS OF FORT WORTH, INC TO MARCUS CABLE
ASSOCIATES, L P
Under the terms of the transfer, Marcus will reimburse the cities in the consortium on a prorata
basis for the cost of a transfer process up to a maximum of S 125,000, and will pay all
publication costs associated with the franchise transfer process
City staff, working with Varnum, Riddering, Schmidt & Howlett, has taken into account current
federal laws and Federal Communications Commissions rules and has anticipated the eventual
passage of the Telecommunications Act of 1995 that may substantially affect the manner in
which cable companies and telephone companies operate
Under FCC rules the City Council must act on the request for consent before September 1, 1995
If no action is taken by the Council by that date, the request is deemed to be approved
Under federal law, Sammons or Marcus can legally file to adjust rates twice a year to take into
account any inflationary costs and may do so about the time the sale of the system is finalized
Under the same laws, a city can adopt a tolling order which freezes the basic services rates and
equipment and service charges for 120 days while a review is conducted to determine if the
higher rates and charges are justified A tolling order would not prevent an increase in rates and
charges for any services above the basic level
The attached ordinance formally gives the city's consent to the transfer and assignment of the
Sammons franchise and cable television system to Marcus The City's consent is subject to the
execution by Marcus of the Acceptance Agreement The ordinance further provides that if
Sammons and Marcus have not closed on the Asset Purchase Agreement by March 31, 1996,
the consent expires
FISCAL INFORMATION/CERTIFICATION
The Director of Fiscal Services certifies that no expenditure of City funds is required for this
action
CB.a
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
'
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Pat Svacina 6414 G~LI
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APPfIti/
Originating Department Head: ~
Cl'(~Y C®~~~
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Wade Adkins 7623 (from)
For Additional Information ~ _ , , ~
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Contact: ~
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Pat Svacina 6415 City ~=~~`Q~~,7ta8
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Adapted Ordinance Na. /a~/~