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HomeMy WebLinkAbout1986-08-19; City Council; 8733; APPROVING SALE OF RANCHO LA COSTA CABLE TV TO DANIELS CABLEVISION, INC.'* ?* 1. n w 7 0 E a a 4 .. 2 0 U d 0 z 3 0 0 E CIBOF CARLSBAD - AGENWBILL <A 'e AB#- m- APPROVING SALE OF RANCIlO LA COSTA DEPT. HD. MTG. 8/19/86 CABLE TV TO DANIELS CABLEVISION, INC. C~TYA~ D EPT.WM CITY MGR RECOMMENDED ACTION: Adopt Resolution No. 875f approving the sale of La Costa Communj Antenna System, Inc. (Ran ho La Costa Cable Television) to Daniel: Cablevision, Inc. ITEM EXPLANATION: Caniels Cablevision, Inc, has agreed to purchase Rancho La Costa Cable TV. Section 5.28.140 of the Carlsbad Municipal Code require Council approval of the sale of any cable company franchised by tl City. Daniels Cablevision, Inc. is the managing corporaticn (al- though not the owner) of Carlsbad Cablevision. Carlsbad Cablevisj is a limited partnership. Daniels Cablevision, Inc. was originall granted and has operated the franchise since October, 1977. Danh transferred ownership to the limited partnership in 1979 but retaj ed management control of Carlsbad Cablevision under agreement. It is providing a quality cable service to the City. FISCAL IMPACT: Cable rates are no longer regulated by the City. The City does receive 3% of revenues as a franchise fee, therefore, any rate change would result in a change to our receipts, There is no fiscal impact which will result from this sale. EXHIBITS : 1. Memorandum from Director, Utilities & Maintenance tc the City 2. Resolution No. Manager of August 7, 1986. J=a- 0 0 '. t ~i August 7, 1986 TO: CITY MANAGER FROM: Director, Utilities 8 Maintenance SALE OF LA COSTA CABLE TV TO DANIELS CABLEVISION, INC. Rancho La Costa Cable TV is being purchased by Daniels Cablevision, Inc. They have requested, in accordance with Section 5.28.140 of the Carlsbad Municipal Cod< that the sale be approved by the city. Daniels Cablevision, Inc. was granted the original franchise for Carlsbad Cablevision in 1977. Subsequently, Daniels sold the franchise to Carlsbad Cablevision, a limited partnership, however, Daniels Cablevision, Inc. manages Carlsbad Cablevision as well as several other operating cable companies which are separate legal entities. The Cable Television Information Center, under contract to the city, reviewed the operations of Carlsbad Cablevision and Rancho La Costa Cable TV in 1984. It found that both systems were in compliance with our franchise requirements and Federal performance standards. were well managed and were providing an excellent level of service. There have been no significant changes in either company since that time. review of the latest audit report for Carlsbad Cablevision indicates management's financial responsibility. I, therefore, recommend that the Council approve the sale. It was CTIC's opinion that both systems A @?PA ROG W. GR ER RWG: jlc w w * August 4, 1986 Public Utilities and Maintenance Department City of Carlsbad 1200 Elm Avenue Carlsbad, CA 92008 Attached please find a copy of a proposed resolution to transfer ownership of Rancho La Costa Cable TV (seller) to Daniels Cablevision Inc. (buyer). We understand that the department director, Roger Greer, has set an agenda and Sequence of events leading up to the ultimate action on this resolution to be taken by the City Council at its regularly scheduled meeting of August 19, 1986. 1' We respectfully request that this agenda be followed as outlined by Mr. Greer. Both the buyer and seller are aPPropriately prepared to perform and a closing of this transaction is set for August 27, 1986. Thank YOU for your cooperation and attention in this matter. may be directed to the undersigned. Any questions Fred Morey- v. PS 2Q\ Tom Belcher General Manager Genera 1 Manager Rancho La Costa Cable TV Daniels Cablevision Inc. Daniels Cablevision qZ1% 3 .. , J . , ?a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 e RESOLUTION NO. 8754 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE ASSIGNMENT AND TRANSFER OF THE FRANCHISEE'S RIGHTS, PRIVILEGES, OBLIGATIONS, DUTIES AND LIABILITIES UNDER THE CABLE TELEVISION FRANCHISE GRANTED BY ORDINANCE NO. 6058. WHEREAS, the City of Carlsbad ("City") approved and enacted Ordinance No. 6058 on October 18, 1977 granting a cable television franchise to La Costa Community Antenna System, Inc., ("LCCAS"), a California corporation and, WHEREAS, LCCAS desires to transfer said franchise (inclusive of said Ordinance No. 6058, as amended to date, the "Franchise") to Daniels Cablevision, Inc., a delaware corporation ("DCI") , and has requested that the proposed transfer to DCI of the Franchise be approved by resolution; . NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad as follows: 1. That the City hereby approves of and consents to the transfer and assignment of the Franchise and System (as hereafter defined) by LCCAS to DC 2. That the City hereby approves of and consents to a creation of a security interest in and the encumbrance of the Franchise and the cable 1 television business and system conducted pursuant thereto (the "System") in order to secure indebtedness. 3. That the consents and approvals hereby granted are given pursuant ti the terms and provisions of the Franchise but do not, however, constitute an shall not be construed to constitute a disclaimer or waiver of any obligatio of the City under the Franchise. 4. That the Franchise was duly and legally adopted and approved by the City, is for a term ending as stated in Ordinance NO. 6058 and that the Franchise is hereby validated, ratified and confirmed. ////I I ,I ~ A. -&* i ?I # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 * 5. That DCI shall be controlled at all times during its application fo and operation, installation and maintenance of the System pursuant to the Franchise by any provisions of the Code of the City relative to cable television franchises and any such terms of said Code are hereby incorporate herein by this reference as if set forth in full. 6. That the Sections of this Resolution are hereby declared to severab and if any section, provision or part thereof shall be held unconstitutional or invalid or unenforceable, such section, provision or part shall be fully severable and this Resolution shall be construed and enforced as if such section, provision or part had never comprised a part hereof and the remaini sections, provisions and parts hereof shall remain in full force and effect and shall not be affected by any unconstitutional or invalid or unenforceabl section, provision or part or by its severance hereform. 7. This Resolution shall become effective and continue and remain in effect immediately upon its passage, approval and adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council c the City of Carlsbad held the 19th day of August , 1986, by the following vote, to wit: I AYES: Council Members Casler, Lewis, Kulchin and Pettine NOES: None ABSENT: None %- Q/I @&&&- MARY H. C&SLER, Mayor ATTEST: ALETHA L. RAUTENKRANZ (SEAL) * July 22, 1986 Treasurer City of Carlsbad 1200 Elm Avenue Carlsbad, CA 92008 Re: Account #809253 0519 Gentlemen: We enclose a check to cover our franchise fee related to Carlsbad Cablevision for Community Access Television for the quarter ended June 30, 1986. MONTH GROSS REVENUES April $121,669.08 May 126,915.76 June 123,731.79 372,316.63 x 1% $ 3,723.17 Sincerely, CARLSBAD CABLEVISION (A Limited Partnership) by and through its Managing Agent Daniels t Associates, Inc. %- Phyllis Hettinger Manager-Financial Reporting PH/gb Enc . aco 6C2C6-XC6 sc3 32-.->53 DANIP6 , ,/- e &ASSOCIATES INCq @ (& [<< ’ /-. July 22, 1986 *\ Treasurer City of Carlsbad 1200 Elm Avenue Carlsbad, CA 92008 Re: Account #809253 0519 Gentlemen: On the Franchise Agreement that Carlsbad Cablevision has calculations and check to cover our franchise fee for the quarter ended June 30, 1986. with the City of Carlsbad, we submit the following MONTH GROSS REVENUES April $167,013.22 May 197,936.27 June 185,098.86 550,048.35 x 3% $ 16,501.45 Sincerely, CARLSBAD CABLEVISION (A Limited Partnership) by and through its Managing Agent Daniels & Associates, Inc. T%L* Manager-Financial Reporting PH/gb Enc . - ijC2Q6-CC38