HomeMy WebLinkAbout86-92 - ADMIN Resolution - City Council - 1986/07/07RESOLUTION NO. 86-92
A RESOLUTION APPROVING THE TRANSFER OF THE CABLE
TELEVISION FRANCHISE FROM NORTHERN CABLEVISION, INC.,
TO NORTEL CABLE ASSOCIATES.
WHEREAS, Storer Communications, Inc., Northern Cablevision,
Inc. (Northern), have requested the City's consent to the
transfer of the cable television Franchise from Northern to
Nortel Cable Associates, a Delaware limited partnership licensed
to do business in Minnesota (Nortel); and
WHEREAS, the City has established a process for reviewing the
legal, technical and financial qualifications of Nortel; and
WHEREAS, staff has reviewed the legal and technical qualifi-
cations of Nortel and Don Richards Associates, Inc. has been
retained to review the financial qualifications of Nortel; and
WHEREAS, the City conducted a public hearing affording notice
and reasonable opportunity for Nortel, Northern and the general
public to be heard; and
WHEREAS, the City has considered the Preliminary and Final
Report prepared by its staff and Don Richards Associates, Inc.
assessing the legal, technical and financial qualifications of
Nortel;
NOW, THEREFORE, BE IT RESOLVED, by the City of St. Louis Park,
Minnesota as follows:
1. The legal, technical and financial qualifications of
Nortel were considered in a full public proceeding
affording notice and a reasonable opportunity to be
heard and are hereby approved.
2. The City hereby consents to and approves the transfer of
the Franchise and all of the rights thereunder from the
present holder, Northern, to Nortel, subject to the
closing of the purchase of Northern's assets by Nortel
and on the following conditions:
a. Nortel shall, within thirty (30) days after the date
set forth below accept the Franchise and Capital
Commitment Agreement (referred to herein collec-
tively as the "Franchise") in form and substance
acceptable to City, unless the time for acceptance
is extended by City.
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b. With its acceptance, Nortel shall deliver to City
true and correct copies of documents creating Nortel
and evidencing the power and authority of that
officer or officers accepting on behalf of Nortel.
c. With its acceptance, Nortel shall furnish and file
with City an irrevocable and unconditional Letter
of Credit, in form and substance acceptable to
City, from a national or state bank approved by
City in the amount now required by the Franchise,
to stand as security for violation of the con-
ditions of the Franchise.
d. With its acceptance, Nortel shall deliver to City a
corporate surety bond in the amount of Fifty
Thousand Dollars ($50,000.00) from a responsible
company licensed to do business in the State of
Minnesota, renewable annually and conditioned upon
the faithful performance of Nortel.
e. With its acceptance, Nortel shall furnish to City
certificates of insurance, reasonably acceptable to
City and in accordance with the requirements of
the Franchise, along with written evidence of
payment of required premiums.
f. With its acceptance, Nortel shall represent and
warrant that as a condition of any renewal or
extension of the Franchise, Nortel shall establish
in the favor of City a $500,000 bond or a dedicated
line of credit in an equivalent amount from Citi-
zens and Fidelity Bank and Trust Company or an
equivalent bank, to provide funds for the upgrading
of the System.
g. With its acceptance, Nortel shall deliver to City
a guaranty from Amzak Corporation, in form and
substance acceptable to City.
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h. With its acceptance, Nortel shall pay all costs and
expenses, including legal and other consulting
fees, resulting from the transfer. City shall pro-
vide an itemized statement to Nortel within two (2)
weeks of the date set forth below.
3. In the event Nortel fails to comply with any of the
above requirements within the time specified, unless the
time is extended by City, this RESOLUTION and any and
all approvals set forth herein shall be null and void.
4. Nortel shall, within sixty (60) days after the closing of
the purchase of Northern's assets, file with the City a
copy of the deed, agreement, mortgage, lease or other
written instrument evidencing such sale, transfer of
ownership or control or lease, certified and sworn to as
correct by Nortel.
5. In the event Nortel fails to close with Northern on or
before August 30, 1986, this RESOLUTION and any and all
approvals set forth herein shall be null and void and
upon request of Nortel all documents referred to in
Paragraph 2 (a) through (g) shall be returned to Nortel.
Adopted by the City Council July 7, 1986.
Reviewed for administration: Approved as to form and legality:
City t•rney (Gary ratz, Herbst & Thue Ltd.)
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