City Council

Agenda Request

Agenda Of:

10-17-06

Agenda Request No:

III B

Initiated By:

joe morris, city attorney

Responsible Department:

City Attorney

Presented By:

joe morris

Department Head:

Joe Morris

City Attorney

 

 

Additional Department. Head (s):

n/a

Subject / Proceeding:

transfer of cable authority

Exhibits:

resolution no. 06-42

Clearances

Approval

Legal:

n/a

Executive Director:

n/a

Purchasing:

n/a

Asst. City Manager:

 

Budget:

n/a

City Manager:

Allen Bogard

Budget

Expenditure Required:  $

n/a

Amount Budgeted/Reallocation:  $

n/a

Additional Appropriation:  $

n/a

Recommended Action

Approve Resolution No. 06-42

Executive Summary

Comcast Corporation and Time Warner each currently own (indirectly through subsidiaries) 50% of the cable system serving Sugar Land.  On August 28, Comcast filed documents with the City Secretary showing that Comcast and Time Warner have entered into an agreement under which Comcast will acquire Time Warner's 50% interest in the cable system.  

 

The 1992 Cable Act (a Federal law) gives a municipality 120 days to act on an application for consent to a transfer, if the City’s consent is required under the franchise agreement.  If the City takes no action, the transfer is automatically deemed approved.  Where the City's consent to the change is required, the City may inquire into the financial, legal and technical qualifications of the entity acquiring the franchise.  

 

The City's cable franchise agreement with Texas Cable Partners (the operating subsidiary of the parties) provides that the City must consent to any transfer in control or ownership that is more than a 50% change in ownership or control (sec. 18.09).  Although the change in control will not exceed 50%, the cable operator is asking that the City Council give its written consent to facilitate the transfer.

 

Exhibits

 

RESOLUTION NO. 06-42

 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS, CONSENTING TO THE CHANGE OF CONTROL OF OWNERSHIP INTEREST OF THE CITY’S CABLE SYSTEM FROM TIME WARNER, INC. TO COMCAST CORPORATION.        

 

            WHEREAS, Texas and Kansas City Cable Partners, L.P. (the Franchisee) owns a cable television system (the System) in the City of Sugar Land (the Franchise Authority); and   

 

            WHEREAS, through indirect subsidiaries, Comcast Corporation (Comcast) and Time Warner Inc. (Time Warner) each hold a 50% ownership interest in the Franchisee; and

 

            WHEREAS, pursuant to the terms of a Limited Partnership Agreement entered into by subsidiaries of Comcast and Time Warner, Comcast will acquire the 50% ownership interest in the System currently held by Time Warner; and

 

WHEREAS, to effectuate Comcast’s acquisition of the 50% ownership interest in the System currently held indirectly by Time Warner (1) the Franchise cable system and franchise will be assigned to a wholly-owned subsidiary of Franchisee, Houston TKCCP Holdings, LLC, and (2) immediately thereafter, Comcast TCP Holdings, Inc., will obtain the 100% ownership interest in Houston TKCCP Holdings, LLC (the Transaction); and

 

WHEREAS, the Franchise Authority has considered and approves of the Transaction described above; NOW, THEREFORE,

 

BE IT RESOLVED BY THE CITY COUNCIL

OF THE CITY OF SUGAR LAND, TEXAS:

 

            Section 1.  That the City of Sugar Land, as Franchise Authority, consents to the Transaction described.

 

            Section 2.  That this resolution shall have the force of a continuing agreement and the City as Franchise Authority shall not amend or otherwise alter this resolution without the consent of the Franchisee.

 

            Section 3.  That this resolution is deemed effective upon adoption. 

 

 

            APPROVED on   _______________________________, 2006.

 

 

 

 

                                                                                                _________________________

                                                                                                David G. Wallace, Mayor

 

 

ATTEST:

 

 

 

________________________________

Glenda Gundermann, City Secretary

 

Reviewed for Legal Compliance: