HomeMy Public PortalAbout2005 Approving the assignment and transfer from Adelphia to Comcast CorporationRESOLUTION NO 2005-37
A RESOLUTION OF THE VILLAGE COUNCIL OF THE
VILLAGE OF KEY BISCAYNE, FLORIDA APPROVING THE
ASSIGNMENT AND TRANSFER OF CONTROL OF CABLE
TELEVISION LICENSE FROM ADELPHIA
COMMUNICATIONS CORPORATION TO TIME WARNER
CABLE, INC , AND THEN TO COMCAST CORPORATION,
OR THEIR RESPECTIVE SUBSIDIARIES, SUBJECT TO
CERTAIN CONDITIONS, PROVIDING FOR CONFLICTS,
PROVIDING FOR SAVINGS, PROVIDING FOR
SEVERABILITY, AND PROVIDING FOR AN EFFECTIVE
DATE
WHEREAS, Adelphia Communications Corporation through its subsidiary Key Biscayne
Cablevision ("Adelphia"), currently owns, operates, and maintains a cable television system and
provides cable service to the residents of the Village of Key Biscayne ("Village"), pursuant to a
License Agreement entered on November 14, 2001, with the Village ("License"), and
WHEREAS, Chapter 8AA, Article I of the Miami -Dade County Code ("County Cable
Ordinance"), provides for the issuance and regulation of cable television licenses for, and the
installation, construction and operation of, cable television systems within the Village, and
WHEREAS, Adelphia is currently in Chapter 11 Bankruptcy proceedings, and
WHEREAS, pursuant to an Asset Purchase Agreement dated April 20, 2005, between
Adelphia and Time Warner NY Cable LLC ("TWNY"), the right to purchase Adelphia's cable
systems will be assigned by TWNY to a wholly owned subsidiary of TWNY, Cable Holdco
Exchange IV, LLC, which will purchase the cable systems and the Adelphia License (the "Adelphia
Transaction"), and
WHEREAS, pursuant to an Exchange Agreement dated April 20, 2005, between Time
Warner Cable, Inc ("Time Warner") and Comcast Corporation ("Comcast"), 100% of the equity
securities m the indirect Comcast subsidianes of C -Native Exchange HA, LP and Cap Exchange I,
LLC will be exchanged for 100% of the equity securities of Cable Holdco Exchange IV LLC
whereby that entity will become a 100% indirect subsidiary of Comcast (the "Exchange
Transaction"), and
WHEREAS, Adelphia, Comcast and Time Warner submitted the Federal Communications
Commission Form 394, Application for Franchise Authority Consent to Assignment or Transfer of
Control of Cable Television License ("Application") on June 14, 2005, seeking the Village's consent
to the assignment and transfer of control of the License, as a result of the Adelphia Transaction and
Exchange Transaction (collectively referred to herein as the "Transactions") in accordance with the
requirements of the License and County Cable Ordinance, and
WHEREAS, the Village has several concerns related to the License, cable services in the
Village and the Transactions, including, but not limited to, (a) responsiveness to customer service
issues, and (b) Comcast represented in the Application that it does not intend to make operational
changes affecting cable services in the Village but reserved the right to do so, and
WHEREAS, based on the representations of Adelphia, Time Warner, Comcast, and the
recommendations of Village staff, the Village Council of the Village of Key Biscayne, Florida finds
that it is in the best interests of the Village to approve the assignment of transfer of control of the
License to Time Warner and then to Comcast subject to certain conditions,
NOW THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF KEY BISCAYNE, FLORIDA, AS FOLLOWS
Section 1 The foregoing "Whereas" clauses are herby ratified and confirmed and being true
and correct and are hereby made a specific part of this Resolution upon its adoption
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103 041/Resolution/ KB Transfer of Adelphia Franchise to Comcast 10 6-05
Section 2. The Village Council of the Village of Key Biscayne, Florida hereby consents
to the assignment and transfer of control of the License from Adelphia Communications Corporation
and its subsidiary to a subsidiary of Time Warner Cable, Inc , and then to a subsidiary of Comcast
Corporation, pursuant to the terms and conditions described herein The Village Council's consent
is conditioned upon the closing of the Transactions in substantially the same form as the
Transactions described in the Application no later than October 1, 2006, and the outcome of the
federal Bankruptcy Court presiding over the Adelphia bankruptcy proceedmgs In the event that this
condition is not met, the consent granted herein shall be voidable at the sole option of the Village
The Village Council's consent is further conditioned expressly upon the following
a Comcast shall use its best efforts to notify the Village of the closing the Transactions
or Adelphia shall notify the Village in the event the Transactions does not close by
October 1, 2006
b Commensurate with the closing of the Transactions, Comcast shall ensure that the
Village Manager, or designee, has the names and complete contact information
(including business and emergency telephone numbers, facsimile number, and email
address) for appropnate persons with responsibility for the operational management
of the cable system serving the Village
c Operational Changes Upon the closing of the Transactions, Comcast shall comply
with all notice requirements associated with service and operations changes set forth
in the License and the County Cable Ordinance as it may be lawfully amended Prior
to making major operational changes affecting cable services in the Village,
including but not limited to, closing or significantly altering hours of operation of any
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103 041 /Resolution/ KB Transfer of Adelphia Franchise to Comcast 10 6-05
business offices within the Village, closing any call centers servicing Village
residents, changing procedures for installation and service, or closing or relocating
headends serving the Village, Comcast shall provide the Village thirty (30) days prior
written notice and shall respond to any concerns with respect to service as a result of
such major operational changes
d Performance Bond & Insurance Time Warner, Adelphia and Comcast agree that
there shall be no gap in any such coverages or obligations as required by the License
and the County Cable Ordinance as it may be lawfully amended Copies of the form
of any such new Performance Bonds and proof of insurance shall be provided by
Comcast to the Village in advance of the transfer and the new Performance Bonds
and proof of insurance shall be provided within thirty (30) business days of the close
of the Transactions
e Comcast shall comply with all terms of the License, this Resolution, the Village
Code, and the Miami -Dade County Code, as they may be lawfully amended
f Within thirty (30) calendar days of the Village Council's approval of this Resolution,
Adelphia, Comcast and Time Warner shall submit their written acceptances that they
are in agreement with all the provisions of this Resolution
Section 3 In the event Adelphia, Time Warner and Comcast fail to submit the required
acceptance pursuant to Section 2(f) above, or Comcast fails to provide the required bonds and
insurance required pursuant to Section 2(d), the Village's consent shall be voidable at the Village's
option
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103 041/Resolution/ KB Transfer of Adelphia Franchise to Comcast 10-6 05
Section 4 The Village may consider a violation of this Resolution as a violation of the
License and may enforce the provisions of this Resolution pursuant to Section 8AA-69 of the County
Cable Ordinance
Section 5. The Village hereby consents to and approves the assignment, mortgage,
pledge, or other encumbrance, if any, of the License, the Cable System, or assets relating thereto, as
collateral for a loan
Section 6 All ordinances and resolutions or parts of ordinances and resolutions and all
sections and parts of sections in conflict herewith shall be and hereby are repealed
Section 7 All rates, fees, charges and financial obligations previously accrued by
Adelphia or Comcast, or any of its predecessors, to the Village pursuant to any prior or current
ordinances or resolutions shall continue and remain due and owing until paid, consistent with
applicable state and federal law
Section 8 If any clause, section, or part of this Resolution shall be held by any Court of
competent jurisdiction to be unconstitutional or invalid, such unconstitutional or invalid part shall
be considered as eliminated and in no way affecting the validity of the other provisions of this
Resolution
Section 9 This Resolution shall become effective immediately upon adoption
PASSED AND ADOPTED this 11th day of October , 2005
4/0 ceti44,
MAYOR ROBERT OLDAKOWSKI
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103 041/Resolution/ KB Transfer of Adelphia Franchise to Comcast 10 6 05
AT
'Jaw -
C • ` CHITA H ALVAREZ, CMC, VILLAGE CLERK
APPROVED AS TO FORM AND LEGAL SUFFICIENCY
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103 041/Resolution/ KB Transfer of Adelphia Franchise to Comcast 10 6-05
NOV-07-2005 MON 05 45 PM WEISS SEROTA HELFMAN PA
FAX NO 9547647770
P 02/04
MITCHELL A PIERMAN
NINA L BONISKE
MITCHELL J BURN5TEIN
JAMIE ALAN COLE
STEPHEN J HELFMAN
HARRIET R LEY/IS
GILBERTO PASTORIZA
GARY I RESNICK
JOSEPH M SCROTA
NANCY E STROUD
SUSAN L TREVARTHEN
RICHARD JAY WEISS
DAVID M WOLPIN
STEVEN W ZELKOWITZ
THOMAS J AN5BRO
LILLIAN MANGO DE LA HOZ•
JAMES E $AKRA
ELAINE M COHEN
JORGE L CRUZ-BUSTILLO
ViVIAN DE LAS CUEVAS DIAZ
STEPHANIE DEUTSCH•
WEISS SEROTA HELFMAN
PASTORIZA COLE & BONISKE, PA
ATTORNEYS AT LAW
VIA FACSIMILE
OROWARD OFFICE
3107 STIRLING ROAD SUITE 300
FORT LAUDERDALE FLORIDA 33312
JAMIE ALAN COLE
MANAGING SHAREHOLDER BROWARO OP!ICE
TELEPHONE 964 763 4242
TELECOPIER 954 764 7770
WWW WSH LAW COM
MIAMI DADE OFFICE
2665 SOUTH BAYSHORE DRIVE SUITE 420
MIAMI FLORIDA 33133
TELEPHONE 305 664 0800 • TELECOPIER 305 864 2323
Ms Conchita H Alv arez, CMC
Village Clerk
Village of Key Bisca p ne
88 West McIntyre Street
Key Biscayne, Floridl133149
or COUNSEL
November 7, 2005
RE AccerLimice of Transfer Resolution
Dear Conchita
RAOUEL ELEJARARRIETA
CHAD PRIEDMAN
OLIVER 0 GILBERT III
DOUGLAS R GONZALES
TARA L GOULD
GREGORY A HAILE
JOHN J KENDRICK III
PETER A LICHTMAN
KAREN LIEBERMAN•
MATTHEW H MANDEL
MICHAEL J MARRERO
ALEXANDER L PALEN=UELA MAORI
MICHAEL S POPOK6
JOHN J QUICK
ANTHONY L RECIO
SCOTT A ROSIN
GAIL 0 SEROYA•
JEFFREY P SHEFFEL
E5TRELLITA 5 SIBILA
MICHAEL, L STONES
JOSE S TALAvERA
STEVEN E TAYLOR
JAMES E WHITE
inclosed pie he find a copy of Comcast Corporation's ( Comcast") acceptance
that it is in agieemetli with all the provisions of the Village of Key Biscayne Resolution
approving the assignment and transfer of control of the Cable Television License from
Adelphta Commune awns Corporation to lime Warner Cable, Inc , and then to
Comcast Please fomard a copy of the signed Resolution to our office at your earliest
convenience
If you have any questions, please do not hesitate to contact us
Very truly you's,
Scott Robin
NOV-07-2005 MON 05 45 PM WEISS SEROTA HELFMAN PA
FAX NO 9547647770 P 03/04
Conchita H Alvare?, CMC
Village Clerk
Village of Key Biscayne
November 7, 2005
Page 2
SR jc
103 041
Ms Jacqueline R Menendez Village Manager, Village of Key Biscayne
Mr Stephen I Helfinan, Village Attorney, Village of Key Biscayne
Mr David M Wolpin, VlllagL Attorney, Village of Key Biscayne
WEISS SEROTA HELFMAN
PASTORTZA COLE & BONISKE, PA
NOV-07-2005 MON 05 46 PM WEISS SEROTA HELFMAN PA
FAX NO 9547647770 P 04/04
Comcast
October 13, 2005
Gary Resnick, Esq
Weiss Serota Hellman Pastoriza Cole & Boniske, P A
3107 Sterling Rocid
Fort Lauderdale, I L 33312
RE Acceptance of the Transfer Resolution
Dear Mr Resnick
Comcast Cable Communications LLC
1500 Market Street
Philadelphia PA 19102 2148
We are very pleat ed that the Key Biscayne Village Commission adopted a
Resolution consenting to the Transactions described in our FCC Form 394
Application
In accordance with the conditions of the Resolution, Comcast Cable
Communications, I LC ("Comcast') on behalf of Cable Holdco Exchange IV LLC,
which will be a wholly -owned subsidiary of Comcast Corporation at the close of
the Transactions, provides its acceptance through this letter By acceptance of
this Transfer Resolution, Comcast does not waive and specifically retains its right
to challenge any local Ordinance, law, rule or regulation, including provisions of
the Village Code or Miami -Dade County Code, if Comcast believes that the local
requirement (i) is not a lawful exercise of the Village's or County's police powers,
or (ii) is not in compliance with state or federal laws
At your earliest convenience, please forward a copy of the signed Resolution to
Klayton F Fennell of Comcast at 2501 SW 145th Avenue, Miramar, Florida 33027
If you have any questions, please do not hesitate to contact me
Thank you
Sincerely,
_C---------__H-
Sheila R Willard
Senior Vice President, Government Affairs
cc Kathy Hutton, Adelphia
John Fogarty, Time Warner
Klayton Fennell, Comcast
Alison Jenkin, Comcast