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• is hereby repealed.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
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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"
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