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Home My WebLink About2003-032 Franchise transfer to Open Access Communications, Inc. ORDINANCE NO 2003- 32 AN ORDINANCE relating to the multichannel video/cable communications system franchise granted to Central Telecommunications East, Inc. under City of Yakima Multichannel Video /Cable Communications System Franchise Ordinance No. 2002- 43, and approving the transfer of the multichannel video/cable communications system franchise from Central Telecommunications East, Inc. to Open Access Communications, Inc. WHEREAS, Central Telecommunications East, Inc ( "CTE ") is duly authorized to operate and maintain a multichannel video /cable communications system in the City of Yakima, Washington, pursuant to the terms and conditions of a multichannel video /cable communications system franchise (the "franchise ") as granted by the City of Yakima (the "City ") under City of Yakima Multichannel Video /Cable Communications System Franchise Ordinance No 2002 -43, and WHEREAS, CTE has entered into an agreement to complete a transaction (the "transaction ") with Open Access Communications, Inc. ( "OAC"), pursuant to which OAC will become a separate corporate entity and retain certain assets currently owned by CTE, and WHEREAS, pursuant to the transaction, CTE has agreed to transfer all of its rights, privileges and obligations under the franchise to OAC, and WHEREAS, as provided for m Section 2.14 of the franchise, CTE must request and be given consent by the City to transfer the franchise to another entity prior to such transfer of the franchise occurring; and WHEREAS, CTE has requested consent by the City to transfer all of its rights, privileges and obligations under the franchise to OAC, to the extent that such consent is required under the franchise, in accordance with the terms, conditions and requirements of the franchise, and WHEREAS, the City has conducted a review of a formal franchise transfer apphcation letter and accompanying materials and has concluded that consent to the transfer of the franchise from CTE to OAC should be given, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA. SECTION 1. The City hereby consents to and approves the transfer of the franchise from CTE to OAC, to the extent such consent is required by the terms and conditions of the franchise and applicable law, and the assumption by OAC of all obligations and liabilities of CTE under City of Yakima Telecommunications System Franchise Ordinance No 2002 -43, known and unknown, subject to applicable law SECTION 2. The franchise, as granted by City of Yakima Telecommunications System Franchise Ordinance No 2002 -43, shall be amended upon the effective date of this ordinance, as set forth m this ordinance. Any terms of City of Yakima Telecommunications System Franchise Ordinance No 2002 -43 not expressly amended by this ordinance shall remain in full force and effect. SECTION 3. As provided for in Section 7 5 of the franchise, OAC shall, prior to the effective date of this ordinance, provide the City with proof of insurance (refer to Subsection 7 5.2) in the amounts specified in the franchise (refer to Subsection 7 51 (1), (2) and (3)), and, as provided for in Section 7 6 of the -2- franchise, OAC shall, prior to the effective date of this ordinance, provide the City with a performance bond in the amount specified in the franchise SECTION 4. Upon the date this ordinance becomes effective, this ordinance shall have the force of a continuing agreement with OAC and shall not be amended, changed or otherwise altered without the consent of the City and OAC. SECTION 5. This ordinance shall be in full force and effect thirty (30) days after its passage, approval and publication as provided by law and by the City Charter PASSED BY THE CITY COUNCIL, signed and approved this 20th day of May, 2003 CITY OF YAKIMA OPEN ACCESS COMMUNICATIONS, INC. • • i_ Mary, ce, Mayor 1 Attest: City Clerk Franchise City No F 02 002 Ordinance No 2003 -32 Publication Date: 5 -23 -2003 'Effective Date: 6 -22 -2003 -3- State of b1�,j's ) �. a ) ss. County of rt. -/ I ) I ereby f , �� r �� tif that I know or have satisfactory evidence that YfS L -CZ K - is the person who appeared before me, and said person cknowledged that IQ she signed this instrument, and on oath stated that/ she was authorized to execute the instrument on behalf of Open Access Communications, Inc., and acknowledged it as the e E of Open Access Communications, Inc., to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument. Dated this / V day of ` J(, ./Le_ - , 2003 Patty- vl ' ''% Print Name. r i'YI /t Chti -t •',S, . •: Q; ;i . ti' �•, y '' ., NOTARY PUBLIC in and for the State : Fc, a' q of f�Ok_ _ g *)&) residing fit-i.: . AR1 'a: , `,, • My commission expires /0 - / -4- BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON - AGENDA STATEMENT Item No off' 4 For Meeting of May 20, 2003 ITEM TITLE: An ordinance relating to the multichannel video /cable communications system franchise granted to Central Telecommunications East, Inc under City of Yakima Telecommunications System Franchise Ordinance No 2002 -43, and approving transfer of said franchise from Central Telecommunications East, Inc to Open Access Communications, Inc P p SUBMITTED BY��f'Cook, Director, Community and Economic Development Department CONTACT PERSON /TELEPHONE Randy Beehler, Telecommunications Manager, 575 -6092 SUMMARY EXPLANATION On August 6, 2002, the City Council passed City of Yakima Multichannel Video /Cable Communications System Franchise Ordinance No 2002 -43 granting Central Telecommunications East, Inc ( "CTE ") authority to construct, operate and maintain a multichannel video /cable communications system within the City of Yakima. In late 2002, CTE began a process in which it divided its major functions into two distinct areas 1) telecommunications cabling and infrastructure development; and 2) provision of telecommumcations services such as telephone services, high -speed Internet, multichannel video /cable services, etc The CTE arm of the company would become responsible for cabling and infrastructure development while another arm of the company, Open ACCbs Communications, Inc ( "OAC ") would be responsible for provision of telecom/multichanrel video /cable services. In early sprang 2003, the process of establishing the two separate armsDf the business was completed, including the sale of CTE In April 2003, CTE contacted the City's Telecommunications Division in order to request that the City transfer the multichannel video /cable franchise held by CTE to OAC The City's Telecommunications Manager requested pertinent information be provided by both CTE and OAC in order for the City to consider tie franchise transfer request. After reviewmg information provided by CTE and OAC, the City's Telecommunications Manager has recommended that the City Council approve the transfer)f the multichannel video /cable franchise held by CTE to OAC Resolution Ordinance X Other (specify) Contract _ Mail to (name & address) Phone Funding Source APPROVAL FOR SUBMITTAL C•*--A.N City Manager STAFF RECOMMENDATION Pass ordinance BOARD /COMMISSION RECOMMENDATION N/A COUNCIL ACTION. Ordinance passed. ORDINANCE NO. 2003 -32