95-8237r
10
RESOLUTION NO. 8237
RESOLUTION 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 Richfield is a member, received a letter and Form 394
from Paragon Cable, the current franchisee of the cable system in Richfield, 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,lnc.
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 Richfield state that a
franchising authority which receives a written request for approval of a sale of 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 effect the subscribers; and
WHEREAS, the Minnesota Cable Communications Act and the cable franchise
ordinance for the City of Richfield 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 Richfield states that the City of Richfield may inquire into the
qualifications of the prospective controlling party, and the Grantee shall assist the City
in 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
Richfield; the Minnesota Cable Communications Act and the Federal Cable
Communications Policy Act of 1984, as amended by the Cable Television Consumer
Protection and Competition Act of 1992, the City of Richfield has up to 120 days to
exercise its right to purchase the system at the bona fide purchase price in the offer.
Resolution No. 8237
-2-
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Richfield, Minnesota .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 Richfield 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 hearing is
scheduled for 7:00 p.m. on April 10, 1995.
3. The City of Richfield acknowledges that is has the right to purchase the cable
system pursuant to Article XI of the cable franchise ordinance for the City of Richfield
and it is determining whether to exercise that right.
BE IT FURTHER RESOLVED, that the City Clerk is directed to send a certified
copy of this resolution to Paragon Cable and Time Warner, Inc. and to publish notice of
the public hearing.
Adopted by the City Council of the City of Richfield, Minnesota this 13th day of
March, 1995.
ATTEST:
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Thomas P. Ferber City Clerk