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HomeMy WebLinkAboutRES 94-45RESOLUTION NO. 94-45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR APPROVING THE TRANSFER BY JONES INTERCA'X -.E INCORPORATED OF CERTAIN SHARES OF ITS STOCK TO BELL CANADA INTERNATIONAL INCORPORATED A. RECITALS (i) On April 22, 1980, the County of Los Angeles Board of Supervisors (the "County") adopted Ordinance 12,137 granting a cable television system franchise (the "franchise"), for a period of fifteen (15) years, to Western Cable Enterprises, Incorporated (dba Walnut Valley Cable Television); (ii) This franchise was subsequently sold to Jones Intercable of California, Incorporated and then to Jones Intercable, Incorporated ("Jones"); (iii) On April 19, 1989, the County notified Jones that a portion of the County of Los Angeles in which Jones was operating a franchise had been incorporated and that the City of Diamond Bar, California (the "City") had assumed responsibility over the franchise and would serve as the franchising authority for that portion of the franchise area served by Jones.; (iv) Jones is the current franchisee in the City, and Jones' franchise continues to be governed by Ordinance 12,137, as amended, of the Los Angeles County Code, and heretofore adopted by the City of Diamond Bar; (v) On June 1, 1994, Jones signed a,definitive agreement with Bell Canada International, Incorporated ("BCI") by which BCI agreed that it or one of its controlled affiliates would purchase 30% of the outstanding shares of stock in Jones for $261,250.00 million dollars; (vi) Section 16.60.170 of Ordinance 88-0159F of the Los Angeles County Code, as adopted by the City, requires the City's consent prior to any sale, assignment or transfer which gives a 25% or more interest in the cable system to any person or corporation other than the controlling interest on the effective date of the franchise; (vii) Jones has requested, pursuant to Section 16.60.170 of Ordinance 88-0159F, that the City Council of the City of Diamond Bar approve (i) the change in ownership of Jones described herein and (ii) any subsequent transfers of the BCI Shares to any Affiliate of BCI; and (viii) All legal prerequisites to the adoption of this Resolution have occurred. B. RESOLUTION NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The City Council does hereby consent to (i) the sale by Jones to BCI and the purchase by BCI from Jones a certain number of shares of Class A Common Stock of Jones which, when aggregated with the shares of Class A Common Stock currently owned by an affiliate of BCI, will equal 30% of the outstanding shares of Jones stock and (ii) any subsequent transfers of the BCI Shares to any Affiliate of BCI. SECTION 2. The foregoing consent shall be effective upon the closing of the sale of the BCI Shares by Jones to BCI. Written notice of the closing date shall be given to the City by Jones. Any subsequent transfer of the BCI Shares from BCI to any Affiliate of BCI or between Affiliates of BCI shall be effective upon written notice being given to the City by the entity then holding the Franchise. SECTION 3. The City Council hereby confirms that, to its knowledge, (a) the Franchise is currently in full force and effect; (b) Jones is substantially incompliance in all materials respects with the Franchise; and (c) no event has occurred or exists which would permit the City to revoke or terminate the Franchise. Subject to compliance with the terms of this resolution, all action necessary to approve (i) the change in ownership of Jones described herein and (ii) any subsequent transfers of the BCI Shares to any Affiliate of BCI, has been duly and validly taken. SECTION 4. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED AND ADO] 'eptember, 1994. I, LYNDA BURGESS, City Clerk of the City of Diamond Bar do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on 20 day of September, 1994, by the following vote: AYES: COUNCILMEMBERS Ansai, MPT/Harmony and M/Werner NOES: COUNCILMEMBERS None ABSENT: COUNCILMEMBERS Miller ABSTAINED: COUNCILMEMBERS Papen ATTEST• _ Lyna& Burgess, Ci. y Clerk