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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 0