06-D Cox Cable Franchise Assignment

Home Browse Search

AGENDA INFORMATION SHEET PROJECT: Consider adopting a Resolution approving and consenting to a Transfer of the Cox Southwest Holdings, L.P. ("Grantee") Cable Franchise to Cebridge Acquisition, L.P. d/b/a Cebridge Connections ("Cebridge"), subject to Cebridge's compliance with the provisions contained therein; requiring a written Acceptance by the Cox the Grantee, and Cebridge; and establishing an effective date. BACKGROUND: The City of Paris Charter states that no holder of a franchise shall have the right to transfer or assign such franchise to any other person, firm, or corporation without the consent of a majority of the entire Council. Additionally, the City Code requires that a franchise shall not be assigned or transferred without the prior written consent of the City of Paris. Cox Southwest Holdings, L.P. ("Grantee") is a wholly owned subsidiary of Cox Communications, Inc. and is currently a Grantee for cable services in the City of Paris, Texas pursuant to Resolution No. 2003-177. Cox the "Grantee", and Cebridge LLC have requested the City's consent to transfer of the Cable Franchise to "Cebridge", and have filed a FCC Form 394 with the City requesting such consent. "Cebridge" will become an indirect subsidiary (but subject to the direction and control) of Cebridge Connections Holdings, LLC. In 2005, the Texas Legislature passed a law that resulted in a fundamental change in franchise relations with cable and telephone companies. The law now requires a state permit for all cable or video service providers, except those that currently have or had previously received a franchise to provide service with respect to a municipality until the expiration date of the existing franchise agreement. In its request for consent to transfer, Cebridge has expressed its agreement that, upon the closing of the transfer transaction, it shall be the successor entity to the incumbent cable service provider, pursuant to Texas law, including Chapter 66, Texas Utilities Code, [Sec. 66.004 (a) and (c)] as adopted by S.B. 5, 79th Texas Legislature, 2nd Called Session. As such, it is Cebridge's intent and agreement that it will be operating under the Franchise being transferred from the current incumbent cable provider (Cox) in the City and to be the incumbent cable provider in the City under applicable law as if it were, and had at all times been, the incumbent cable provider in the City under the Franchise as of December 8, 2003 thereunder since that date regardless of the actual date of the Franchise transfer. Cebridge additionally agrees to abide by all the terms, conditions, standards, duties, responsibilities, and obligations of the Grantee under the Franchise upon the closing of the transfer transaction. RECOMMENDED ACTION: It is recommended that the City Council consider adopting a Resolution approving and consenting to a Transfer of the Cox, L.P. Cable Franchise to Cebridge, subject to Cebridge's compliance with the provisions contained therein; and requiring a Written Acceptance by the Grantee and Cebridge. STAFF CONTACT: Tony Williams, City Manager COUNCIL DATE: City Council Regular Meeting on Monday, February 27, 2006. ,-, ..,.._, -T'