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HomeMy Public PortalAbout88-831U ORDINANCE NO. 88-831U AN ORDINANCE OF THE CITY OF CARSON AMENDING CHAPTER 6 OF ARTICLE VI OF THE CARSON MUNICIPAL CODE RELATING TO COMMUNITY ANTENNA TELEVISION SYSTEMS FRANCHISES, AND DECLARING THE URGENCY THEREOF THE CITY COUNCIL OF THE CITY OF CARSON DOES HEREBY ORDAIN AS FOLLOWS: i Section 1. Paragraph (d) of Section 6606 of Chapter 6, Article VI of the Carson Municipal Code is hereby amended in its entirety to read as follows: " (d) (1) The following transactions involving any franchise granted hereunder, or involving any grantee i of a franchise hereunder, shall require the prior consent of the Council expressed by resolution, and then only under such conditions as may therein be prescribed: (i) The sale, transfer, lease, assignment or other disposition of the franchise, in whole or in part, whether voluntary or involuntary; provided, however, that such consent shall not be required for a transfer in trust, mortgage or other hypothecation for the purpose of securing an indebtedness of the grantee. A transfer, assign- ment or other disposition hereunder shall be made only by an instrument in writing, a duly executed copy of which shall be filed in the office of the City Clerk within thirty (30) days after such transfer, assignment or other disposition. Ordinance No. 88-831U/Page 2 of 4 (ii) Any merger, consolidation, reorganization, business combination, or other transaction wherein or whereby fifty percent (50%) or more of the ownership interests in the grantee will be affected and control of the grantee will change or be subject to change. As used herein, 'control ' means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the grantee. A duly executed copy of a written instrument evidencing the closing and consummation of any such transaction shall be filed in the office of the City Clerk within thirty (30) days after the closing of such transaction. (2) The consent of the Council to a transaction specified herein shall not be unreasonably withheld; provided, however, that any entity or person acquiring a franchise by transfer, assignment or other disposi- tion, and any entity or person acquiring, directly or indirectly, fifty percent (50%) or more of the owner- ship interests in a grantee, shall demonstrate financial responsibility and shall agree to comply with all provisions of this chapter. Section 2 . American Cablesystems of California, Inc. , which is a wholly-owned subsidiary of American Cablesystems Corporation and the transferee of that certain cable television franchise initially granted by Ordinance No. 69-106 of the City of Carson, has notified the City that, pursuant to an Agreement and Plan of Merger dated October 14, 1987, a subsidiary of Continental Cablevision, Inc. will be merged with and into -2-. 880210 sas A176.6BR (0) Ordinance No. 88-8310/Page 3 of 4 American Cablesystems Corporation, and American Cablesystems Corporation, as the surviving corporation, will thereupon become a wholly-owned subsidiary of Continental Cablevision, Inc. The Agreement and Plan of Merger provides that this corporate reorganization may be finalized as early as February 29, 1988. The Council finds and determines that it is necessary, proper, and in the public interest to provide specifically, by ordinance, for the prior review and approval by the Council of any proposed transaction whereby a change in ownership and control of the grantee or transferee of a cable television franchise may be effectuated. Thus, the Council shall have the authority and responsibility to review and approve the financial responsibility and operational capabilities of the entity or person to which or to whom is to be transferred the power to direct the management and policies of the cable television franchisee. It is therefore necessary and desirable that this ordinance take effect immediately in order that it become effective prior to February 29, 1988, on which date the proposed corporate reorganization may be consummated, and in order that appropriate review and approval may be undertaken by the City Council prior to said date. This ordinance is an urgency ordinance necessary for the immediate preservation of the public peace, health or safety within the meaning of Section 26937 (b) of the Government Code and shall go into immediate effect. PASSED, APPROVED AND ADOPTED this 16th day of February 1988. May 6r ATTEST., itp Cl rk C:a2 (Signatures continue] -3- 580210 sas A176.YBR (0) Ordinance No. 88-831U/Page 4 of 4 APPROVED AS TO FORM: \�Aw.,4 -9. ZAay, City Attorney ajio/srx STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss . CITY OF CARSON ) I, Helen S. Kawagoe, City Clerk of the City of Carson, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing ordinance, being Ordinance No. 88-831U was duly and regularly adopted by the City Council of said City on an urgency basis at a regular meeting of said Council, duly and regularly held on the 16th day, of February , 19 88, and that the same was passed and adopted by the following roll call vote: AYES: COUNCIL MEMBERS: Mitoma, Muise, DeWitt and Calas NOES: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Mills ANL- City Clerk, City of Carson California —4- 880210 sas A176.NBR (0)