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HomeMy WebLinkAboutReso 49-2002RESOLUTION NO. 49-2002 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING THE PROPOSED CHANGES OF CONTROL OF AT&T BROADBAND WHEREAS, on or about February 10, 1996, the City of South San Francisco, California ("City") granted a Cable Television Franchise Ordinance ("Franchise") to TCI Cablevision of California, Inc. ("TCI") which Franchise is now held by AT&T Broadband (Grantee"); and WHEREAS, Grantee is an indirect subsidiary of AT&T Corp. ("AT&T"); and WHEREAS, pursuant to an Agreement and Plan of Merger dated as of December 19, 2001 by an among AT&T, AT&T Broadband Corp., Comcast Corporation ("Comcast"), AT&T Broadband Acquisition Corp., Comcast Acquisition Corp. and AT&T Comcast Corporation and a Separation and Distribution Agreement dated December 19, 2001 by and between AT&T and AT&T Broadband Corp. (collectively, the "Merger Agreement") AT&T and Comcast intend to create a new company to be known as AT&T Comcast Corporation ("AT&T Comcast"); and WHEREAS, as a result of the Merger Agreement, Grantee and AT&T Comcast has requested consent by City to change of control of Grantee. In addition, Grantee may elect, as permitted by law, to convert or reorganize its legal form to a limited liability company ("LLC Conversion"); and WHEREAS, under the Franchise and applicable law, the proposed change of control requires consent from the City; and WHEREAS, the City has reviewed the proposed change of control and the legal, technical, and financial qualifications of AT&T Comcast to be the new parent company of Grantee following the proposed change of control; and WHEREAS, based on information obtained and on the reports and information received by City, including the report prepared by Moss & Barnett, a Professional Association, which is hereby incorporated by reference, City has elected to approve the proposed change of control. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby resolves as follows: The Franchise is in full force and effect, and Grantee is the lawful holder of the Franchise. Grantee will remain the lawful holder of the Franchise after consummation of the transaction contemplated under the Merger Agreement. The City hereby consents and approves of the proposed change of control of Grantee as contemplated under the Merger Agreement, as well as the LLC Conversion, subject to: ao Closing of the transaction described in information provided to the City by Grantee, AT&T and AT&T Comcast. AT&T Comcast, within thirty (30) days of the date of closing, notifying the City in writing of the completion of the transaction. Co Pursuant to and as provided in the May 28, 2002 letter from Kathi Noe, Director, Government Affairs for AT&T, to Brian A Moura, Chariman, San Mateo County Telecommunications Authority (SamCat), with that letter on file at 600 Elm Street, San Carlos, CA 94070, City and Grantee agree that Grantee will commence implementation to activate and provide City with a second PEG access channel on the schedule set forth in the Franchise. do Grantee hereby confirms that, as of May 28, 2002, the City has met all requirements necessary to trigger Grantee's obligation under Section 5 and Exhibit C(2) of the Franchise and therefore Grantee shall, within ninety (90) days of the date of adoption of this Resolution, commence provision to the City of EG access grant funds in the amount of thirty (30) cents per South San Francisco subscriber per month as capital to be used solely for EG access equipment and facilities pursuant to and in accordance with Section 5 and Exhibit C(2) of the Franchise. In the event the change of control of Grantee to AT&T Comcast contemplated by the foregoing resolution is not completed, for any reason, the City's consent shall not be effective. This Resolution shall take effect and continue and remain in effect from and after the date of its passage, approval, and adoption. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 12th day of June 2002 by the following vote: AYES: Councilmembers Joseph A. Femekes, Raymond L. Green and Karyl Matsumoto, Mayor Pro Tem Pedro Gonzalez and Mayor Eugene R. Mullin NOES: None. ABSTAIN: None. ABSENT: None. ATTEST: City Clerk " ACCEPTANCE AND AGREEMENT TCI Cablevision of California, Inc., providing services as AT&T Broadband, as controlled by AT&T Comcast Corporation, hereby accepts this Resolution No. __ ("Resolution") and agrees to be bound by the terms and conditions of this Resolution and the lawful terms and conditions of the Franchise referenced within the Resolution. Dated this __ day of ,2002 TCI CABLEVISION OF CALIFORNIA, INC. PROVIDING SERVICES AS AT&T BROADBAND By: Its: STATE OF ) )SS. COUNTY OF ) The foregoing instrument was subscribed and sworn to before me this day of 2002, by , the of TCI Cablevision of California, Inc., providing services as AT&T Broadband. SEAL Notary Public