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RE 09-22-98.1 RESOLUTION NO. 092298.1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, APPROVING THE TRANSFER OF THE CABLE TELEVISION FRANCHISE; PROVIDING A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Paragon Communications, d/b/a Paragon Cable ("Franchisee"), a wholly- owned indirect affiliate of Time Warner, Inc. ("Time Warner"), owns, operates and maintains a cable television system ("System") in the City of Coppell, Texas (the "Franchise Authority"), pursuant to Ordinance No. 93615 (the "Franchise"), and the Franchisee is the duly authorized holder of the Franchise; and WHEREAS, Time Warner Entertainment-Advance/Newhouse Partnership ("TWE- A/N"), a New York general partnership two-thirds owned by Time Warner Entertainment Company, L.P. ("TWE"), another affiliate of TWE-A/N (together with TWE-A/N, the "Time Warner Partners"), TCI Texas Cable Holdings LLC, TCI Texas Cable Holdings LLC (together with TCI Texas Cable Holdings LLC, the "TCI Partners"), and Texas Cable Partners, LP, a Delaware limited partnership owned 50% by the Time Warner Partners and 50% by the TCI Partners (the "Partnership"), are parties to that certain Contribution Agreement dated as of June 23, 1998 (the "Contribution Agreement"), which provides for the transfer o£the System and the Franchise to the Partnership at the closing contemplated by the Contribution Agreement (the "Closing"); WHEREAS, at the Closing, the Partnership will enter into a Management Agreement with Time Warner Cable, a division of TWE, providing for the management of the Partnership, the System and the Franchise by Time Warner Cable and Time Warner Cable will engage an affiliate of the TCI Partners to provide various day-to-day operating and support services with respect to the System and such affiliate of the TCI Partners will employ the System-level personnel, although Time Warner Cable will retain exclusive management and supervisory functions for the Partnership with respect to the System and the Franchise; WHEREAS, AT&T Corp. and Tele-Communications, Inc. ("TCI") are parties to a merger agreement which provides For AT&T Corp. to acquire control of TCI, the ultimate parent o£ each TCI Partner; and WHEREAS, the transfer of the Franchise to the Partnership (regardless of whether AT&T Corp. is or becomes the ultimate owner of the TC1 Partners)(the "Transfer," which term shall include any necessary transfers of the System and the Franchise through one or more affiliates o£Franchisee) is deemed to be in the best interest o£ the residems o£ the City of Coppell, Texas. SS20229 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: SECTION 1. That the Franchise Authority hereby consent to the transfer of the Franchise to Texas Cable Panners, L.P., a Delaware limited partnership owned fiPty percent (50%) by the Time Warner Partners and fifty percent (50%) by the TCI Partners (including, if applicable, the control of the TCI Partners by AT&T Corp.), all in accordance with the terms of the Franchise. SECTION 2. The Franchise Authority confirms (a) the Franchise was properly granted to Franchisee, (b) the Franchise is currently in full force and effect and will expire on October 26, 2008, subject to options in the Franchise, if any, to extend such term, and (c) the Franchise supersedes all other agreements between Franchisee and the Franchise Authority and represents the entire understandings of the parties. SECTION 3. This Resolution shall be deemed effective upon the date of the Closing of the Contribution Agreement (the "Closing Date"). SECTION 4. That all provisions of any Resolution of the City of Coppell, Texas, in conflict with the provisions of this Resolution be, and the same is hereby, repealed, and all other provisions not in conflict with the provisions of this Resolution shall remain in full force and effect. SECTION 5. This Resolution shall become effective immediately from and after its passage, as the law and charter in such cases provide. 2 ss20229 DULY PASSED and approved by the City Council of the City of Coppell, Texas, on this the~c~r~c~ dayof..__~/~n, ~x~,q, 1998. APPROVED: c~Y si:m~, ~Y6~/ ATTEST: KATHLEEN ROACH, CITY SECRETARY APPROVED AS TO FORM: (PGS/ttl 8/18/98) 3 SS20229