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HomeMy WebLinkAboutO-1996-2095 transfer to TCI thru 12/31/96 e e' ORDINANCE NO. 96- 2095 AN ORDINANCE APPROVING THE TRANSFERS OF THE CABLE TELEVISION FRANCHISE WITH PRIME CABLE OF FORT BEND, L.P.; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: WHEREAS, Prime Cable of Fort Bend, L.P. ("FranChisee") owns, operates, and maintains a cable television system ("System") in the City of La Porte, Texas ("FranChise Authority"), and Franchisee is the duly authorized holder of a cable television franchise (the "FranChise") granted by the Franchise Authority; and WHEREAS, Franchisee and InterMedia Partners Southeast, a California general partnership ("InterMedia"), are parties to an agreement whereby Franchisee will assign and transfer all of the assets of the System, including all right, title, interest and obligations of Franchisee under the Franchise to InterMedia (the "Prime/InterMedia Transaction"); and WHEREAS, InterMedia and TCI Communications, Inc., a Delaware corporation ("TCI"), have entered into an agreement whereby, subsequent to the consummation of the Prime/InterMedia Transaction, InterMedia will assign and transfer all of the assets of the System, including all right, title, interest and obligations of InterMedia under the Franchise (the "InterMedia/TCI Transaction") to either Tele-Vue Systems, Inc., if TCI has acquired control of such entity in a separate pending transaction, or TCI of Houston, Inc., an indirect wholly owned subsidiary of TCI (collectively, the "TCI Transferees"); and WHEREAS, if it is determined that InterMedia/TCI Transaction cannot be completed as planned, it is possible that the interim transfer of the Franchise to InterMedia would not occur, and in such event the Franchise would be transferred directly by Prime to TCI of Houston, Inc. (the "Prime/TCI Transaction" and, together with the Prime/InterMedia Transaction and the InterMedia/TCI Transaction, the "Transactions"); and WHEREAS, Franchisee, InterMedia and TCI have requested consent by the Franchise Authority to the Transactions; and WHEREAS, The Transactions are deemed to be in the best interests of the residents of the City of La Porte; WHEREAS, Franchisee has requested that the term of the Franchise be extended for a period of six months from its current expiration of June 30, 1996, so that the Franchise will expire on December 31, 1996; Section 1. The Franchise Authority hereby consents to and approves the transfer of the System and the Franchise to InterMedia, all in accordance with the terms of the Franchise. e e ORDINANCE NO. 96- 2095 PAGE 2 section 2. The Franchise Authority hereby consents to and approves the subsequent transfer of the System and the Franchise from InterMedia to either of the TCI Transferees, or from Prime directly to TCI of Houston, Inc., all in accordance with the terms of the Franchise. section 3. The consents herein granted do not constitute and shall not be construed to constitute a waiver of any obligations of Franchisee under the Franchise. section 4. The Franchise Author i ty hereby extends the term of the Franchise for a period of six months from its current expiration date of June 30, 1996, so that the Franchise will expire on December 31, 1996. section s. The Franchise Authority confirms that (a) the Franchise was properly granted, (b) the Franchise is currently in full force and effect and will expire on June 30, 1996, and, pursuant to the extension granted in section 4 of this Ordinance, will expire on December 31, 1996, (c) the Franchise supersedes all other agreements between the parties, (d) the Franchise represents the entire understanding of the parties, and (e) Franchisee is materially in compliance with the provisions of the Franchise and there exists no fact or circumstance known to the Franchise Authority which constitutes or which, with the passage of time or the giving of notice or both, would constitute a material default or breach under the Franchise. Section 6. TCI may transfer the Franchise or control related thereto to any entity controlling, controlled by or under common control with TCI. e e ORDINANCE NO. 96-2095 PAGE 3 Section 7. Section 1 of this Ordinance shall become effective upon the consummation of the Prime/InterMedia Transaction. Section 8. Section 2 of this Ordinance shall become effective upon the consummation of the InterMedia/TCI Transaction, as applicable. Section 90 This Ordinance shall have the force of a continuing agreement wi th Franchisee, InterMedia, TCI and the applicable TCI Transferee and the Franchise Authority shall not amend or otherwise alter this Ordinance without the consent of Franchisee, InterMedia and TCI. section 10. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the ci ty for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. section 11. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this JJl....,{day of .m fU\ <:.O~ , 1996. By: CITY OF LA PORTE ~, '!i;; .~ -6 I aft m ---~. lIayar Bob McLaughlin, yor Pro Tern . e ORDINANCE NO. 96-2095 PAGE 4 ATTEST: )~-O ~ Sue Lenes, City Secretary A~'- /. I ~te Knox . As~ins, City Attorney