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RESOLUTION: 2002-39
SUBJECT: Resolution Approving AT&T/Comcast Transfer
RECOMMENDATION: Approval
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
This Resolution approves, with conditions, a transfer of control of Lakewood's cable television franchise from Mountain States Video, Inc., dba AT&T Broadband, to AT&T Comcast. AT&T Broadband is merging with Comcast Corporation to create AT&T Comcast.
The corporate entity holding the franchise (Mountain States Video, Inc.) will remain the same but the parent company (AT&T) is merging with Comcast, a reputable cable provider. This transaction is merely a change in control of the parent company.
During a transfer consideration, local franchising authorities have limited jurisdiction. Under federal law our review is limited to whether the new entity has the legal, technical and financial ability to manage its subsidiary in a way which will allow it to comply with the terms of the franchise agreement. Such a review has been conducted by the Greater Metro Telecommunications Consortium, of which Lakewood is a member. We found that the new company has such an ability with the following conditions, which have been negotiated and agreed to with AT&T:
1. The Resolution makes clear that AT&T and AT&T Comcast have made
representations to us regarding the transaction and that we are relying on that
information in granting the approval.
2. The transaction between AT&T and Comcast is based on documents provided
to us for review. If the deal changes prior to final closing, this transfer
approval does not apply.
3. The Customer Service Standards established and enforced by the City of Lakewood
will remain in full force and effect.
4. AT&T Comcast will take no actions that would keep Mountain States Video
from complying with the terms of the franchise.
5. The cable operator and AT&T Comcast will take no action to "bundle"
cable services with non-cable services in an effort to evade or avoid franchise
fees.
6. If any term of the Resolution is violated it will be treated as a violation
of the franchise.
7. The Resolution does not waive any claims of prior franchise violations.
8. Mountain States Video and AT&T Comcast must acknowledge, in writing,
within 30 days after notification of Council's action that they accept the terms
and conditions of the Resolution.
All of these conditions are included in the Resolution.
Both myself and our telecommunications attorney, Ken Fellman of Kissinger and Fellman, will be in attendance at the June 10 City Council meeting to address any questions that you might have.
RESOLUTION ADOPTION DATE: June 10, 2002
ORIGINATED BY: Joni D. Inman, Director, Mayor and City Manager's Office
STAFF PERSON RESPONSIBLE: Joni D. Inman, Director, Mayor and City Manager's Office 303-987-7052.
DOCUMENTS ATTACHED: Resolution 2002-39
SUBMITTED BY:
Joni D. Inman, Director Mayor and City Manager's Office
REVIEWED BY:
Joni D. Inman, Director Mayor and City Manager's Office
Michael J. Rock, City Manager
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