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99-019 RESOLUTION NO. 99-19 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA APPROVING THE CHANGE OF CONTROL OF THE TCI TKR OF SOUTH FLORIDA, INC CABLE TELEVISION FRANCHISE FROM TCI TO AT&T CORP.; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on February 1, 1999, the City of Aventura, Florida received notification of the proposed change of control of the TCI TKR of South Florida, Inc. ("TCI-SF") cable television franchise from TCI to AT&T Corp.; and WHEREAS, pursuant to Ordinance No. 97-20, as amended by Ordinance No. 98- 11, of the City of Aventura (the "Ordinance"), and the TCI-SF Franchise Agreement granted pursuant to Ordinance No. 99-03 (the "Franchise"), no such change of control may occur without prior approval of the City Commission; and WHEREAS, pursuant to Section 6(D), Section 9 and Section 23 of the Cable Television Ordinance and Section 29 of the TCI-SF Cable Television Franchise, any change of control of the Franchisee or transfer of the franchise is prohibited without prior authorization of the City; and WHEREAS, the City shall act upon TCI's application on the condition that the City Commission has passed and adopted the Ordinance granting to TCI a Franchise and pursuant to TCI's express consent that the City waives no rights under federal, state and local law and the Ordinance and the Franchise by scheduling consideration of the change of control; and WHEREAS, the City has required written acceptance from TCI-SF and AT&T Corp. of the terms and conditions of this Resolution by affidavit as a condition precedent to the adoption of this Resolution (affidavit attached hereto as Exhibit A); Resolution No. 99-19 Page 2 WHEREAS, in the event the proposed transaction between TCI and AT&T Corp. is not consummated or does not reach final closure for any reason, or in the event such closure is reached on terms substantially or materially different to the terms described in the application and exhibits thereto, submitted to the City on February 1, 1999, this Resolution, together with the affidavits of acceptance submitted by the proposed transferor and transferee, shall be null and void. NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF AVENTURA, THAT: 1. To the extent required, the City of Aventura hereby consents to the change of control of the TCI-SF Cable Television Franchise from TCI to AT&T Corp. 2. That the consent granted herein does not constitute and should not be construed to constitute a waiver or release of any obligations of TCI under cable Ordinance No. 97-20 as amended by Ordinance No. 98-11 and the cable television franchise. 3. That the consent granted herein does not and should not be construed to constitute a waiver of any right of the City under applicable law including, but not limited to Cable Television Ordinance No. 97-20, as amended by Ordinance No. 98-11 and the Cable Television Franchise; and further, this consent shall not prejudice the City's rights with respect to the enforcement, renewal or transfer of the current cable television franchise and any amendments thereto. 4. That the consent herein granted is conditioned upon (a) TCI-SF's assurances set forth in its affidavit submitted to the City on January 28, 1999 and attached hereto as Exhibit A; (b) TCI-SF's submission to the City of cost recovery all costs incurred by the Resolution No. 99-19 Page 3 City related to this transfer proceeding pursuant to Sections 9(I) and 10(F) of Cable Television Ordinance 97-20 and all payments due under Section 16B of the Franchise. 5. That the consent herein granted is limited to the right to provide cable services, and to the extent not otherwise prohibited by applicable law, TCI-SF shall be required to obtain any lawful permission from the City, prior to its providing any other services within the City. 6. That this Resolution shall have the force and effect of continuing the agreement between TCI-SF and the City of Aventura, Florida, the Franchise Authority. 7. That the City hereby reserves all of its rights pursuant to federal, state and local law including, but not limited to the rights in (a) the franchise renewal process including, but not limited to, the right to consider violations of the franchise by TCI-SF; (b) the franchise transfer process including, but not limited to, the right to act upon any application to sell, assign or otherwise transfer controlling ownership of the cable system; and (c) the enforcement of the current Cable Television Ordinance No. 97-20 as amended by Ordinance No. 98-11 and the current Cable Television Franchise as amended. 8. That the consent herein granted is an express non-waiver and express reservation of the City's rights and authority with respect to enforcement of TCI-SF's compliance with applicable law including, but not limited to Cable Television Ordinance No. 97-20 and 98-11 as amended and the current cable television franchise as amended. TCI-SF, and to the extent required by the franchise or allowed pursuant to applicable law its parent, affiliates and subsidiaries, shall be liable for any and all violations of said law and agreement notwithstanding whether any such violation arose Resolution No. 99-19 Page 4 prior to the effective date hereof. The City's approval of the transaction shall in no way be deemed a representation by the City that TCI-SF is in compliance with its obligation under Cable Television Ordinance 97-20 as amended by Ordinance No. 98-11 or the Franchise Agreement. 9. That the consent granted herein is subject to TCI-SF's compliance with all other applicable legal requirements and the City does not waive and expressly reserves the right to enforce full compliance with applicable Ordinance and Franchise requirements, whether or not any noncompliance that may be determined arose before or after the change of control of the TCI-SF franchise from TCI to AT&T Corp. 10. That this Resolution shall become effective upon the date of its adoption herein. The foregoing Resolution was offered by Commissioner Beskin who moved its adoption. The motion was seconded by Commissioner Berger , and upon being put to a vote, the vote was as follows: Commissioner Arthur Berger ~,es Commissioner Jay R. Beskin ,/es Commissioner Ken Cohen ,,es Commissioner Harry Holzberg Commissioner Jeffrey M. Perlow ,/es Commissioner Patricia Rogers-Libert yes Mayor Arthur I. Snyder yes PASSED AND ADOPTED this 6th day of Ap '~/~ AT,~/,~ ~,~ ~EST: AR-T~ R~"' I. SliDER! MAYOR TERESA M. SMITH, CMC, CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CITY~ EXIfIBIq A UNCONDITIONAL ACCEPTANCE OF TERMS OF RESOLUTION NO. 99- BEFORE ,ME, appeared the undersigned anthority wbo having been duly sw~m upon his oath deposes and states t/mt: 1. Thc affiant iq the Executive Vice President, Govermnen! Relations of TCI Communicat/ons, Inc., and is the person author[zexl to execu;c this document on behMf of the TCrFKR ofSoutk Flor.;da,/.nc. 2. The affiant is submitting t/tis affidavit as a condition precedent to the change of contxol of the TCITKR of South Florida, [nc. ("TCI-SF") cable television franchise from TCI to AT&T. 3. Affiant attest~ that TC[-SF is a cu.neat fi"anckisee in the CiD, of Aventura, Florida and that tile Franchisee shall comply w/th thc term~ of this acccpumce. 4. Franchisee and/or its successors in interest skall reimburse the City for all costs incurred by thc City related to the transfer process pursuant to Sect/oas 9(I) and l0 (F) of Cable T¢levistO'n OrdL-umce 97-20 a~ amended by Ordiuance ,~o 98-11. Receipt of payment by the City of th. is obhgation shall be acknowledged upon receipt of paymenB ha the amount of Forty Tb. onsm~d Dollars ($40,000.00) pursuant to Section ', 6(B) o£ the Franchise. 5. At thc request of the CiW, Franchisee shall demonstrate comDlia.uce w/~h the teclmical obligatian.~ set fom5 in the Ordinance and Franchise or in the altemat/vc, s 'hall provide thc City with. an acceptable Plan of Compliance. 6. Franchisee shall cooperate ;il any franci ~e fi'.e compliance uaqu/tT ia coialaectibn with any i)ossibl¢ fraacM~e tee arrearal~es tha~ may have ~fiser~ or. tibet may a.6se through the exclusion of certain, revenue streams. 7. In the event Franchisee offers cable Interact services Over its cable system in the City o£ Aventura, it ~h.!i, taking into aocount technical feasibility, provide access to £t~ cable modern platform to providers of Lnternet access and online services on comparable tern,s and conditions to those terms and condifio= ou which access is provided by Franchisee in any other community. Franehlsee shall comply vath all lawful reqtacements w/th respect to access to Franehise~"s cable modem piafforra for prov;ders of Lqtcraet access and oMi. ne services, Fr'aackisce shall comply with all other applicable legai requirements, including carriage of broadcast digital and high delL"fition televifion signal.,', and mtercounectioa of the cable system with potential competitors for purposes, among other things, of sharing cable PEG channels as required by the FrancMse Agreement or applicable law. 9. To ~e extent not p,ohibited by applicable law, the Franchisee agrees that cable Interact.services, including, but not IZmited to, ~ Home, Roadna:mer and Media F-xpress or similar services, pro~.4ded by the Fra.':e,hisce, its parent, aff:i~iates or ~ubsidiades, over the cable systexa shall be deemed "cable so.ices" as provided under Title VI of~e Cornmtmieations Act of 1.934, as amended. Revenues received by Fraachi. see, and te thc ex-tent consistent wilh the Franchise Agreement and not specifically prohibited by applicable law, ~ts parent, affiliates, or subsidiaries, from such services provided over the Franchisee's cable system, including, but not limited to, cable modem equipment, advertising a~d sales revenues, shall be included w~thin the defirfitio:: of g~oss revm~ucs ibr thc purpose of the tfanch/se fcc calcu2at!m, to the maximum exten~ ~ui~.by ~e F~c~e Agreement ~d covaistent p~aph appli~ no more bm~y ~hn~, flae ~i~dng ~blc tele~sion ~c~sc ~ ~ect to o~er ~ble service. [0. Fr~c~ ae~o~ge~ ~ &e Le~slanve Hi~ of ~e 1992 Cable Act ~nt~pi~ ~t ~e Ci~ ~y M~s ~y deficiead~ m sc~i~, ~cl~ non-~mpl~. ~ ~e ~le of~ly ~fer or change ofcon~oI of~e ~ise. ~e F~c~ ~e~ to e~e ~at it ~ r~pcmib~ for ~y ~d ~ non~ompfi~ ~der ~e c~t or ~y lat~ be ~covcr~ to have e~ d~g ~e ~ of ~e ~ehi~e ~en 5prior to ~e clos~ of~e ~*fer of mn~ol. 1 I. F~c~ ~mn~fion~y a~ ~ t~ mhd con,flora n f R~oI~on No. 99-~. 12. ~ ~ibit A may be hgned in FUR. TI-IER AFFIANT SAYETH NAUGHT. AT&T COiLP. hereby a~.epts the term~ and condiUo~s of ~is ~dav~ ~d R~olutioa No. ~d ~ to do ~e~g n~my to e~me ~mpti~ce FroI:TCl 3034883ZO? T-57! P.OZ/OZ Job-855 ~lg DTC ~