HomeMy WebLinkAboutResolution - 95-46 - Paragon Cable - Transfer of Ownership - 03/21/1995 STATE OF AIiNNFSOTA
CITY OF EDEN PRAIRIE
RESOLUTION NO. Q-�
REQUIRING A PUBLIC HEARING REGARDING THE PROPOSED
TRANSFER OF OWNERSHIP OF PARAGON CABLE
WHEREAS, on or about February 21, 1995, the Southwest Suburban Cable
Commission of which the City of Eden Prairie is a member, received a letter and Form 394
from Paragon Cable, the current franchisee of the cable system in Eden Prairie, stating that
KBLCOM Incorporated which is a wholly-owned subsidiary of Houston Industries and which
owns 100 percent of Nortel Cable Corporation and Countryside Investments, Inc. which own
Paragon Cable, would become a wholly-owned subsidiary of Time Warner, Inc.; and
WHEREAS, the federal Cable Communications Policy Act of 1984, as amended by
the Cable Television Consumer Protection and Competition Act of 1992, states that:
1) a cable operator cannot transfer a cable system unless it has held the system at
least thirty-six (36) months; and
2) if a cable transfer or sale requires franchising authority approval, the
franchising authority has 120 days from receipt of the Form 394 to approve
the sale; and
WHEREAS, the Minnesota Cable Communications Act and Article XII, Section 1,
Subsection B of the cable franchise ordinance for the City of Eden Prairie state that a
franchising authority which receives a written request for approval of a sale or transfer shall
answer in writing within thirty (30) days of the request and shall state whether it approves
the request or whether it determines that a public hearing is necessary because the sale or
transfer may adversely affect the subscribers; and
WHEREAS, the Minnesota Cable Communications Act and the cable franchise
ordinance for the City of Eden Prairie state that if a public hearing is deemed necessary,
such hearing shall be conducted within thirty (30) days of such determination and notice of
such a hearing shall be given fourteen (14) days before such hearing by publishing notice
once in a newspaper of general circulation in the area served by the franchise; and
WHEREAS, Article XII, Section 1, Subsection G of the cable franchise ordinance for
the City of Eden Prairie states that the City of Eden Prairie may inquire into the
qualifications of the prospective controlling party, and the Grantee shall assist the City in
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such an inquiry and pay all costs incurred by the City in so inquiring, including City staff time at a value
determined by the City; and
WHEREAS,pursuant to Article XI of the cable franchise ordinance for the City of Eden Prairie,
the Minnesota Cable Communications Act and federal Cable Communications Policy Act of 1984, as
amended by the Cable Television Consumer Protection and Competition Act of 1992, the City of Eden
Prairie has up to 120 days to exercise its right to purchase the system at the bona fide purchase price in the
offer.
NOW, THEREFORE,the City of Eden Prairie resolves as follows:
1. The City hereby states that Paragon Cable was held by KBLCOM for at least thirty-
six(36)months.
2. The City hereby states that it must approve a sale or transfer of the cable system and
it is reviewing the Form 394 provided by Paragon Cable and Time Warner,Inc.to
determine the effect of the proposed transfer on Eden Prairie subscribers.
Accordingly, a public hearing is necessary because the effect of the sale or transfer
is currently unknown and the effect on the subscribers may be adverse. Such a
hearing will be held on April 18, 1995 at 7:30 p.m.
3. The City of Eden Prairie acknowledges that it has the right to purchase the cable
system pursuant to Article XI of the cable franchise ordinance for the City of Eden
Prairie and it is determining whether to exercise that right.
BE IT FURTHER RESOLVED,that the City Clerk is directed to send a copy of this Resolution to
Paragon Cable and Time Warner, Inc.
Adopted ch 21, 1995
an L. Harris, Mayor
ATTEST:
J D. Frane, City Clerk