Resolution - 9258C
RESOLUTION NO. 9258
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF WEST COVINA, CALIFORNIA DENYING,
THE APPLICATION OF CENCOM CABLE
TELEVISION DBA CROWN CABLE FOR AND
CHARTER COMMUNICATIONS, INC. FOR
TRANSFER OF THE FRANCHISE GRANTED BY THE
CITY AND SETTING FORTH THE GROUNDS AND
REASONS THEREFOR
WHEREAS, Cencom Cable Television dba Crown Cable (the "Franchisee") has been
granted a franchise (the "Franchise") to construct and operate a cable television system within
the City of West Covina (the "City"), by action of this City Council; and
WHEREAS, the Franchisee has filed an FCC Form 394 with the City requesting that the
City approve an assignment and transfer of control of the Franchise granted thereto (the
"Transfer"); and
WHEREAS, pursuant to the Franchise and various regulatory ordinances, neither the
Franchise nor control of the Franchisee can be transferred to Charter Communications,
Entertainment II, L.P. ("Charter") without the affirmative written consent of the City, and
WHEREAS, the City expeditiously requested additional information regarding the FCC
Form 394; and
WHEREAS, Franchisee and Charter refused or failed to provide a material portion of the
requested additional information, and
WHEREAS, the City requested certain information from the. Franchisee and Charter
relating to the impact, or potential impact, of the transfer upon current and future regulated rates
as well as the financial ability of Charter to generate sufficient cash flow to satisfy debt and
equity obligations; and
WHEREAS, neither the Franchise nor Charter have provided the requested information
regarding the actual or potential impact of the Transfer upon existing and future regulated rates
or the ability of Charter to generate sufficient cash flow to satisfy debt and equity obligations;
and
WHEREAS, the City has reviewed the FCC Form 394, all supplemental information
submitted in relation thereto, as well as information compiled in any compliance audit, and the
various staff reports and related documents; and
WHEREAS, the City Council has determined that it would not be in the public interest to
approve the Transfer at this point in time and has determined that it would be in the public
interest to disapprove the Transfer.
NOW, THEREFORE, the City Council of the City of West Covina does hereby resolve
as follows:
1. The recitals above are hereby declared to be true, accurate, and correct.
• 2. The transfer of the Franchise from the Franchisee to Charter, as described in the
FCC Form 394, is hereby disapproved for the following reasons:
(a) The Franchisee and Charter have failed to timely provide all necessary
additional information, as requested by the City in writing, relating to the legal structure of the
Transfer, the Transfer's potential impact upon existing and future regulated rates, and the
financial qualifications of Charter to own and operate the cable television system serving the
City.
(b) Charter has not demonstrated that it is a financially qualified applicant.
(c) The Franchisee is in material breach of the Franchise.
3. The disapproval of the Transfer contained herein is with prejudice until such time
. as the Franchise is brought into compliance in a manner acceptable to the City.
4. A transfer of the Franchise, transfer of actual ormanagerial control of the
Franchise, and/or transfer of control of the Franchisee shall be deemed a material breach of the
Franchise.
This Resolution is hereby approved and adopted by the City Council of the City of West
Covina on this 26th day of September, 1995, by the following vote and the Mayor is hereby
authorized and instructed to execute this Resolution on behalf of the City.
AYES: Manners, McFadden, Touhey, Wong, Herfert
NOES: None
ABSTAIN: None
Mayor
ATTEST:
ity Clerk
APPROVED AS TO FORM:
City'�Attorney
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