HomeMy WebLinkAbout1986-08-19; City Council; 8733; APPROVING SALE OF RANCHO LA COSTA CABLE TV TO DANIELS CABLEVISION, INC.'*
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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-
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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
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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.
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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
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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.
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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)
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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
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DANIP6 , ,/-
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&ASSOCIATES INCq
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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 . -
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