City Council Resolution 1987-09RESOLUTION 87- 9
A RESOLUTION AUTHORIZING THE ASSIGNMENT AND
TRANSFER OF A CABLE COMMUNICATIONS FRANCHISE
TO CONSTRUCT, OPERATE AND MAINTAIN A CABLE
COMMUNICATIONS SYSTEM
WHEREAS, the City of Monticello has granted a cable communications
franchise (hereinafter "Franchise") to construct, operate, and maintain
a cable communications system within the City to Rite Cable Company
of Minnesota, Ltd. (hereinafter "Rite"); and
WHEREAS, Jones Intercable, Inc., a Colorado corporation, has
agreed to purchase the assets of the cable communications system
of Rite; and
WHEREAS, Jones Intercable, Inc., (hereinafter "Jones") has requested
the City to approve the assignment and transfer of the Franchise
from Rite to Jones and/or one or more of its controlled affiliates;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY AS FOLLOWS:
1. The City hereby accepts the recommendation of the Sherburne/Wright
County Cable Communications Commission II that the technical
ability, financial condition, and legal qualifications of
Jones as those qualifications apply to the acquisition and
operation of the Cable communications system are acceptable.
2. The assignment and transfer of the Franchise to construct,
operate, and maintain a cable communications system from
Rite to Jones and/or one or more of its controlled affiliates
is approved and confirmed by the City effective upon the
date of the sale of Rite's cable communications system to
Jones, and subject to Jones supplying documentation satisfactory
to Commission that Jones as general partner of the controlled
affiliate, if and when an assignment and transfer is made
to a controlled affiliate, will be obligated to perform
all franchise obligations.
3. In the event that Jones and/or one or more of its controlled
affiliates desires to grant a security interest or interests
in any or all of its rights, duties and obligations under
the Franchise and the cable communications system to its
lender or lenders as may be designated by Jones, the City
hereby consents to such grant of such security interest(s).
4. The City hereby certifies that the Franchise is in full
force and effect and that Rite is not in default under any
of the terms or provisions of the Franchise.
5. The City hereby waives any right of first refusal to purchase
the cable communications system but only as that right of
first refusal applies to the transaction now before the
City.
solution 87- 9
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6. The City approval set forth herein is subject to:
A. The closing of the sale of Rite's cable communications
system to Jones.
B. Jones and/or one or more of its controlled affiliates
shall, within thirty (30) days after the closing set
forth above, accept the Franchise in form and substance
acceptable to the Sherburne/Wright Counties Cable Communications
Commission II (hereinafter "Commission"), unless the
time for acceptance is extended by the Commission.
C. Jones shall deliver to the Commission any performance
bond and letter of credit required under the Franchise.
D. Jones shall furnish to the Commission certificates of
insurance in accordance with the requirements of the
Franchise.
7. In the event Jones fails to close on the sale of Rite's
cable communications system on or before June 30, 1987,
this Resolution and any or all approvals set forth herein
shall be null and void unless said date is further extended
by the Commission.
Passed and approved this 23rd day of March, 1987.
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Arve A. Grimsmo, Mayor
City Administrator