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HomeMy WebLinkAbout86-25 - Sale of Group W Cable Inc.RESOLUTION No. 86 -25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONSENTING TO THE SALE OF GROUP W CABLE, INC. PURSUANT TO SECTION 5.44.060(g) OF THE NEWPORT BEACH MUNICIPAL CODE AND REPEALING RESOLUTION No. 86 -22. WHEREAS, Group W Cable, Inc. ( "Group W ") is the owner of the cable television system serving Newport Beach, California; • and WHEREAS, all of the stock of Group W is currently owned by Westinghouse Broadcasting and Cable, Inc. ( "Westinghouse "); and WHEREAS, Westinghouse has entered into an agreement to sell the stock of Group W to American Television and Communications Corporation; Century Southwest Cable Television, Inc.; Comcast Corporation; Daniels & Associates, Inc.; and TCI Holdings, Inc. (or their designated affiliates or assignees); and WHEREAS, pursuant to this transaction, it is proposed that Comcast Cablevision of California ( "Comcast ") will become the cable television operator in Newport Beach; and WHEREAS, Section 5.44.060(g) of the Newport Beach Municipal Code provides that a cable television franchise can- not be sold, transferred or otherwise disposed of, in whole or in part, by sale, merger, consolidation or otherwise, without the prior consent of the City Council, expressed by resolution; and WHEREAS, Group W and Comcast have requested the City Council of the City of Newport Beach to consent to these trans- actions, as set forth in the attached letters dated February 19, 1986 and March 3, 1986, attached hereto and marked Exhibit "A" and incorporated herein as though fully set forth at length; and WHEREAS, the City Council finds and determines that the proposed transactions are in the best interests of the City • of Newport Beach. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach, that pursuant to Section 5.44.060(g) of the Newport Beach Municipal Code, the City Council hereby consents to the subject transactions. BE IT FURTHER RESOLVED that the City Clerk is hereby authorized and directed to send a certified copy of this Res- olution to COMCAST CABLEVISION OF CALIFORNIA, evidencing the City of Newport Beach's prior consent to these transactions. BE IT FURTHER RESOLVED, that Resolution No. 86 -22 • is hereby repealed. ADOPTED this 14th day of April 1986 ATTEST: Jo�,Z� I City Clerk A'A" 0 991 WEST SIXTEENTH Sr., NEWPORT BEACH, CA 92663 February 19, 1986 e Honorable Mayor Phillip Maurer hers of the City Council ity Hall 3300 Newport Blvd. Newport Beach, CA 92663 Dear Mayor Maurer and Members of the City Council: •rCai�'i i�:�(Y4y itiVk'i „i3j:`. �. GROUP G W I CABLE Group W Cable, Inc., A Subsidiary d WESTINGHOUSE BROADCASTING AND CABLE, INC. As we have communicated previously, Westinghouse Broadcasting and Cable, Inc. is selling the stock it owns in Group W Cable, Inc. to a group of buyers including five cable operators. Group W Cable, Inc. will continue to own and operate the cable system serving your community; however, the stock of Group W Cable, Inc. will be owned by these buyers instead of Westinghouse Broadcasting and Cable, Inc. These buyers include affiliates of major cable operators such as ATC, TCI, Comcast, and others. A form of consent which describes this transaction in greater detail and which identifies the buyers is attached for your review and consideration. As we have also discussed previously, the buyers intend to have one of the buyers of the stock have primary responsibility for the operation and management of the cable system which serves our customers and your constituents. The enclosed form of consent recognizes that designation and chain of responsibility and requests your approval of the ultimate transfer of franchise interests and system facilities to that particular responsible buyer or group. That request is being made now to avoid any delay in the future or confusion in the interim. As soon as you have had a chance to review this enclosure, please give me a call. If you have any questions, I will resolve them promptly. We would like to complete the formal transfer requirements as soon as possible. I am available at your convenience to discuss an appropriate schedule for that to occur.without unnecessary delay. Thank..you_for:your consideration... Sincerely yours,. m�� ?� Michael McDonald General Manager CC: Ruthelyn Plummer, Mayor Pro Team Councilwoman_ Jackie Heather Councilwoman Evelyn Hart Councilman Donald Strauss Councilman John Cox Councilman Bill Agee MM /lf EXHIBIT "A” Robert Wynn, City Manager Ken Delino, Assistant City Manager Robert Burnham, City Attorney Comcast Cable Communications. Inc. One Belmont Avenue Bala Cynwyd, PA 19004 221556667 -4200 m c .g. March 3, 1986 Mr. Kenneth J. Delino Executive Assistant to City Manager City of Newport Beach 3300 Newport Boulevard, P. 0. Box 1768 Newport Beach, California 92663 Re: Cable Franchise Transfer Dear Mr. Delino: This letter is written in reference to Comcast's plans to purchase a portion of the stock of Group W Cable, Inc. and thereafter to own and operate the cable system in the City of Newport Beach, California. As has been communicated to you previously, Westinghouse Broadcasting and Cable, Inc. is selling all of the stock of Group W Cable, Inc. to a group of buyers, including affiliates of major cable operators such as Comcast, American Television and Communications, Inc. (ATC) and Tele- Communications, Inc. (TCI). Closing of this transaction is expected in June, 1986. Group W Cable, Inc. will continue to own and operate the cable system serving the City of Newport Beach. However, the stock of Group W Cable, Inc. will be owned by these buyers instead of Westinghouse Broadcasting and Cable, Inc. The buyers intend to allocate the Group W Cable cable commumications systems among themselves at or after the time of their acquisition. Under the plan of allocation, the cable communications system serving the City of Newport Beach will be owned and operated by Comcast Cable - vision of California, a Partnership. On behalf of both the buyers and the Comcast Partnership which will become the owner of the City of Newport Beach cable system, I am authorized to accept the terms of the Franchise Agreement. If you have any questions concerning the foregoing, please do not hesitate to raise them with me. V(eerry Qtrul�y yours, s,�_, ' V&-V / — Robert B. Clasen President n EXHIBIT "A" M