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HomeMy WebLinkAboutResolution - 3589 - Transfer Control - MCCLP To MAP - Lubbock Cable Television System - 04_25_1991Resolution No. 3589 April 25, 1991 Item #5 DGV:da RESOLUTION WHEREAS, Mission Cable Company, L.P., a Delaware limited partnership (the "Company"), is currently the owner and operator of the cable television system serving the City of Lubbock, (the "City"), such authority to operate being originally granted to Cable Vision of Texas pursuant to that certain Ordinance No. 8834 dated October 24, 1985 (the "Ordinance"); and WHEREAS, certain of the partners of the Company have transferred their interests in the Company to Mission Acquisition Partners, a Delaware general partnership ("Purchaser"), which is an affiliate of the Company's lenders; and WHEREAS; certain of the partners of the Company are corporations and, in lieu of transferring their respective interests in the Company to the Purchaser, have caused all of their respective shares of capital stock to be transferred to the Purchaser; and WHEREAS, the Company's lenders are The Toronto -Dominion Bank, Cayman Islands Branch, the Chase Manhattan Bank and the Canadian Imperial Bank of Commerce (collectively, the "Lenders"); and WHEREAS, the City is willing to grant its consent to the transfer of the ownership of the Company as referenced above and to any transfer described in Section 1 below; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the City hereby grants its consent to (i) any transfer of interests in the Company by any partner to the Purchaser, (ii) any transfer of capital stock of any partner in the Company to the Purchaser, (iii) any transfer, after the date hereof, of any partnership interest in the Company to any "affiliate" and (iv) any transfer, after the date hereof, of shares of capital stock of any partner of the Company which is a corporation to any "affiliate". For purposes of this Section 1, the term "affiliate" shall mean any entity all of whose voting securities are owned directly or indirectly through one or more subsidiaries of the Lenders. SECTION 2. THAT except as hereby transferred, or as modified prior to the date hereof, the Ordinance is in all other respects ratified and confirmed and all of the terms and conditions thereof shall remain in full force and effect. SECTION 3. THAT this Resolution is hereby declared to be a measure in the interest of public peace, health, welfare and safety. SECTION 4. THAT the City hereby waives the right of first refusal reserved by the City in paragraph E of Section 12 of Ordinance No. 8554. SECTION 5. THAT the transfer of franchise granted herein shall not become effective until receipt by the City of Lubbock of an Acceptance of Franchise duly executed by an officer or principal of the Purchaser, with authority to make and sign an agreement, in the following form: ACCEPTANCE OF FRANCHISE "The Honorable Mayor and City Council of the City of Lubbock: Mission Acquisition Partners, a Delaware general partnership, for itself, its successors and assigns, hereby accepts to be bound by the terms and conditions of City Ordinance No. 8834 granting a cable television franchise as finally passed by the City Council of the City of Lubbock on the 24th day of October, 1985. By this Acceptance of Franchise, Mission Acquisition Partners agrees to be bound by such franchise the same as if it were signatory to the original agreement." SECTION 6. THAT in the event that the City Council should determine that the actual sale price is unreasonable, then such portion of the sale price as is determined to be unreasonable, shall not be considered in the rate base of any subsequent request for rate increases. This Resolution passed by the City Council this 25th day of April , 1991. ATTEST: aneltte Boyd, City Secret7Fy APPROVED AS TO FORM: f uonaia u. vanaiver, First Assistant City Attorney CITY OF LUBBOCK BY: (�- B. C. MCMIN , MAYOR - 2 - MISSION CABLE Keith J. Cunningham President & CEO March 19, 1991 City of Lubbock P.O. Box 2000 Lubbock, Texas 79457 Re: Transfer of Partnership Interests Ladies and Gentlemen: Mission Cable Company, L.P. over the last several months. difficulties, Mission Cable's subsidiaries, acquired all Cable. This is a financial management anticipates no individuals with whom you Mission Cable by our ban stability for Mission Cab Mission Cable's customers. of the e ownership change in are used to ks will r le and, in has been struggling financially In response to these financial lenders have, through their quity ownership of Mission change only. Mission Cable's management personnel or the dealing. The ownership of esult in greater financial turn, better service for Mission Cable realizes that, pursuant to the terms of the franchise agreement under which it serves your community, your consent to this financial restructuring must be obtained. We therefore ask that you place consideration of the consent on the agenda for the next meeting of your City Council. We enclose a draft ordinance setting forth the necessary consents. If you will inform us to the time and place of the meeting where the consent item will be addressed, we will have at least one Company representative present to answer any questions which may arise. Moreover, if you need additional information in connection with our request, please contact me or Thomas W. Hopping, who is Chief Operating Officer/Executive Vice President at (512) 478-8184. Please call if we may be of assistance. sincerely, Kei h Nunningham 114 West 7th Street, Suite 1000 Austin, Texas 78701 (512) 478-8184 / Fax: (512) 478-0654 'Q3S�go� ----- ---- -- - -- A06401HO Tolley —Weidman Insurance P.O. Box 160 Colorado Springs, CO 80901 719-696-7100 Mission Cable Company, L.P. Attn: Liz Jenkins 1873 S. Bellaire St. #1550 Denver, CO 80222 ISSUE DATE 77 CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE COMPANY LETTER A Continental Insurance Compa COMPANY LETTER B COMPANY LETTER C COMPANY LETTER D COMPANY LETTER E THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LIS1 ED BELOW HAVE BEEN ISSUED TO If HE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOT WIT HST ANDING ANY REOUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, CO LT TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS DATE(MM/DD/YY) DATE(MM/[ro/VV) GENERAL LIABILITY GENERAL AGGREGATE $ 2000000 X PRODUCIS-COMP/CPAGG $ 2000000 A COMMERCIAL GENERAL LIABILITY 58CBP0611053593 8/01/92 8/01/93 CLAIMS MADE OX occuR. OTHER THAN TEXAS PERSONAL & ADv. INJURY g 10000.0_0 EACH OCCURRENCE_ _ $ 1000000 OWNER'S & CONTRACTOR'S PROT. FIRE DAMAGE (Any one fire) $ 50000 TCP0611053693 8/01/92 8/01/93 MEO. EXPENSE (Arty.one person $ 5000 AUTOMOBILE LIABILITY COMBINED SINGLE $ X A ANY AUTO 58CBPO611053593 8/01/92 8/01/93 LIMIT 1000000 BODILY INJURY $ ALL OWNED AUTOS SCHEDULED AUTOS OTHER THAN TEXAS (Per person) X BODILY INJURY $ HIRED AUTOS X NON -OWNED AUTOS (Per accideni) PROPERTY DAMAGE $ GARAGE LIABILITY CLP0520319393 8/01/92 8/01/93 A EXCESSLIABILITY X UMBRELLA FORM OTHER THAN UMBRELLA FORM 58CBPO611053593 8/01/92 8/01/93 EACH OCCURRENCE $ 10000000 AGGREGATE $ 10000000 A WORKER'S COMPENSATION AND I EMPLOYERS'LIABILITY 1 ObVV tlb I IU IU`9 GU �IiU I%�L 1L%31/3 STATUTORY LIMITS 50-VLooG_. DISEASE -POLICY LIMIT I 500000 DISEASE -EACH EMPLOYEE '—TI_S _ 500000 OTHER DESCRIPTION OF OPERATIONSILOCATIONSIVEH ICLESISPECIAL ITEMS City of Lubbock P.O. Box 2000 Lubbock, TX 79457 SHOULD ANY OFT HE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYSWRITTENNOTIC:ETOTHECL•RTIFICATEHOLDERNAMEDTOTHE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITYOF ANYKINDUPON THE COMPANY, ITS AGENTSORREPRESENTATIVES WTHORIZED_ ESENTATIVE % . gyp,. 041099000 11