Agenda - Council - 01/14/1997 - Laserfiche WebLink

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Creighton stated that from his letter dated October 28, 1996 and in any oral conversation that had occurred that it was made clear what the Commissions position was. Creighton stated that a week before closing Mr. Gibbs had asked for the signatures on the Corporate Quarantee and Mr. Vose had pointed out that if they are asking for the Corporate Guarantees that they must be getting ready to close. Mr. Gibbs stated to Mr. Creighton at that time that it would be a while before the deals would be able to close. Creighton stated that in his opinion the closing had been taking place all week long and that they had ample time to communicate with his office. Creighton also stated that they proceeded to close regardless of the Commissions concerns with the Consent Resolutions with the Franchises. Creighton then went on to discuss pg. 4 of the memorandum, remedies which are available to the Commission if it chooses to proceed with sanctions of the current franchise holder which they allege is U.S. West and Tom alleges is still Continental. In Article 8 Section 4 of our Franchise provision for the letter of credit. Default remedy is a notification by the Cable Commission on behalf of the member municipalities that in the commission's opinion a material provision of the Franchise has been violated and therefore the Franchise Holder is in default of the Franchise. This is not termination of the Franchise, this is notification of default. This remedy would kick in a process in which the Cable Co. has 30 days to cure the default and/or appear in front of the Commission at a regular or special meeting. A minimum of 30 days subsequent to notification of the franchise default notification. The purpose of the hearing is to determine why you should not recommend to your member municipalities that they terminate the franchise. Creighton stated that the Commission does not have authority to terminate the franchise, but does have the authority to issue the notice of default. The Franchise provides that the city will issue a notice of default but then they adopted a Joint Powers agreement that delegated the powers and duties the authority to "enforce the franchise of the member municipalities, unless a member of municipality knowingly withholds specific authority to the contrary." Creighton has not received any notice from any of the cities after the adoption of the Joinf Powers agreement that they have infect with held the authority to issue a notice of default. Creighton informed Commission Members that after the hearing if you were to recommend termination of the franchise you would proceed do that and your member municipalities then would also at a I i, I I I I I I I I I I I i