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August 14, 2000 STAFF REPORT 114/ 0
TO: Honorable Mayor and Members of the Seal Beach City Council
FROM: Quinn M. Barrow, City Attorney
SUBJECT: Cable Television Franchise - Transfer of Control
SUMMARY OF REQUEST
The City Council is being requested to consider and to adopt a resolution authorizing and
consenting to the transfer of control of a cable television franchise held by Comcast Cablevision of
Seal Beach, Inc., to a wholly-owned subsidiary of Adelphia Communications Corporation.
BACKGROUND
On March 9, 2000, City staff received a written request from Comcast Cablevision of California,
("Comcast"), the parent company of Comcast Cablevision of Seal Beach, Inc., requesting the
City's consent to the transfer of control and change of ownership of the cable television franchise
that serves the City of Seal Beach. The proposed transferee is Manchester Cablevision, Inc., a
wholly-owned subsidiary of Adelphia Communications Corporation. Comcast also submitted a
copy of Federal Communications Commission Form 394 outlining the request in conformance
with federal laws and regulations. The current franchise agreement between the franchisee and
the City requires City Council consent before ownership and control of the franchise is transferred
to another entity.
The City Attorney's office has reviewed the documentation that accompanied the FCC Form 394.
Based upon that documentation, the conclusion is warranted that Adelphia Communications
Corporation, as the ultimate parent corporation of the proposed transferee, Manchester
Cablevision, Inc., has the necessary financial, technical, and legal qualifications to adequately
perform, or to ensure the performance of, all obligations required under the current cable
television franchise agreement. The new owner and operator of the franchise will continue to be
subject to all terms, conditions, and obligations of the franchise previously held by Comcast
Cablevision of Seal Beach, Inc.
FISCAL IMPACT
There is no fiscal impact associated with the proposed transfer of ownership and control of the
cable television franchise. Comcast and Adelphia Communications Corporation are jointly
responsible for reimbursement to the City of all costs and expenses incurred in reviewing and
processing the proposed transfer of control. Those costs and expenses are not anticipated to
exceed $2500.
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August 14, 2000 - Page 2 - Cable Television - Transfer of Control
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution entitled "A Resolution of
the City Council of the City of Seal Beach Authorizing and Consenting to the Transfer of Control
of a Cable Television Franchise Held by Comcast Cablevision of Seal Beach, Inc."
Quinn M. Barrow, City Attorney
NOTED AND APPROVED:
/1141.ge / 191
D aniel Dorsey, Ac ' g City Maria( -r
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