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HomeMy WebLinkAboutResolution No. 72960 0 RESOLUTION NO. 7296 A RESOLUTION OF THE AZUSA CITY COUNCIL CONSENTING TO A CHANGE IN NAME OF THE FRANCHISE HOLDER AND CONSENTING TO THE GRANTING OF A SECURITY INTEREST IN FRANCHISE AND FINDING SUCH FRANCHISE TO BE IN FULL FORCE AND EFFECT. WHEREAS, the City Council of the City of Azusa adopted Ordinance No. 1092 on December 2, 1974, awarding a CATV franchise to Cable Service of Azusa, Inc. to construct and operate a CATV system in the City, pursuant to the provi- sions of Title 14 of the Azusa Municipal Code (the "Franchise"); WHEREAS, on September 19, 1977, pursuant to Resolu- tion 6575, the City Council of the City of Azusa approved a change in the form of ownership of Cable Service of Azusa, Inc. to Cable Service of Azusa, a sole proprietorship owned by Julius Cohen; WHEREAS, on October 4, 1982, pursuant to Resolution 7187, the City Council of the City of Azusa consented to the transfer of the Franchise from Cable Service of Azusa to Jones Intercable, Inc., general partner and nominee for, Cable TV Fund 10, a limited partnership; WHEREAS, Cable TV Fund 10-C Ltd., a Colorado limited partnership of which Jones Intercable, Inc. is the general partner, is the Cable TV Fund 10 limited partnership which bought the assets of Cable Service of Azusa, including the Franchise, and which operates the CATV system in the City of Azusa pursuant to such Franchise; WHEREAS, it is desirable to change the name of the Franchise holder to Cable TV Fund 10-C Ltd.; WHEREAS, Cable TV Fund 10-C Ltd. has negotiated a credit agreement with Wells Fargo Bank, N.A., Mellon Bank, N.A., and RepublicBank Dallas, N.A. (collectively, the "Banks") pursuant to which the Banks will make certain loans to Cable TV Fund 10-C Ltd. and Cable TV Fund 10-C Ltd. will grant to the Banks a security interest in, among other things, the Franchise and the granting of such security interest in the Franchise requires the consent of the City Council of the City of Azusa; and WHEREAS, the general welfare of the citizens of the City of Azusa will not be adversely affected by the proposed change in name or the granting of the security interest. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES RESOLVE AS FOLLOWS: 1. The name of the Franchise holder shall be Cable TV Fund 10-C Ltd., a Colorado limited partnership. 2. Consent is hereby given to the grant by Cable TV Fund 10-C Ltd. of a security interest in the Franchise to the Banks and to the exercise by the Banks or 0 0 any of them of any and all rights they may have as secured creditors under the California Uniform Commerical Code, specifically including the right to operate the CATV system in the City of Azusa pursuant to the Franchise upon a default by Cable TV Fund 10-C Ltd. under the credit agreement between Cable TV Fund 10-C Ltd. and the Banks; provided, however, that the City Council of the City of Azusa shall have the right to approve prior to its effectiveness any sale or transfer of the Franchise by the Banks to any third party. 3. The Franchise is in full force and effect on the date hereof and there is no default in the performance or observance of any of the provisions, covenants, terms or conditions of the Franchise, nor has any event occurred which, with the passage of time or the giving of notice, or both, would ripen into any such default. 4. The Mayor is hereby authorized to sign, date and deliver to Cable TV Fund 10-C Ltd. and Wells Fargo Bank, N.A. the letter attached hereto as Exhibit A. ADOPTED AND APPROVED THIS 5th DAY OF July 1983. L/ MAYOR PRO -TE I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Azusa at a regular meeting thereof, held on the 5th day of July, 1983, by the following vote of the Council: AYES: COUNCILMEMBERS: DECKER, HART, CRUZ, LATTA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: MOSES CITY CLERK 2. EXHIBIT A June , 1983 Cable TV Fund 10-C Ltd. 5275 DTC Parkway Englewood, Colorado 80111 Wells Fargo Bank, N.A., as "Agent for itself and other lenders 444 South Flower Street Los Angeles, California 90017 Re: Ordinance No. 1092 of the City Council of the City of Azuza, dated December 2, 1974• Ordianance No. 1077 of the City Council of the City of Azuza, dated May 6, 1974; Resolution No. 6575 of the City Council of the City of Azuza, dated September 19, 1979; Resolution No. 7187 of the City Council of the City of Azuza, dated October 4, 1982; and all related franchise applications, documents, maps, instruments and agreements (all of the above hereinafter collectively called the "Franchise") Gentlemen: The City of Azuza, California (hereinafter called the "City"), understands (a) that Cable TV Fund 10-C Ltd., a Colorado limited partnership (hereinafter called "Fund 10-C"), as borrower, and Wells Fargo Bank, N.A., a national banking association (hereinafter called "Agent"), Mellon Bank, N.A., a national banking association, and RepublicBank Dallas, N.A., a national banking association as lenders (hereinafter collectively called "Banks"), have ~ 0 0 Cable TV Fund 10-C Ltd. Wells Fargo Bank, N.A. June , 1983 2. entered into a credit agreement pursuant to which the Banks have agreed to make certain loans to Fund 10-C, (b) Fund 10-C has agreed to grant to the Agent a security interest covering Fund 10 -C's rights under the Franchise and (c) Fund 10-C and the Agent are relying upon this letter in connection therewith. With such understanding, the City agrees, on behalf of itself and its successors and assigns for the benefit of Fund 10-C and Agent and their respective succes- sors and assigns, that: a. Fund 10-C is the holder of the entire right, title and interest of the franchisee under the Franchise; b. The Franchise is in full force and effect, has not been amended (except as may be described above), and all conditions precedent to Fund 10 -C's full use and enjoyment of all rights and benefitts under the Franchise have llieen duly satisfied; C. To the best knowledge of the City, there is no default in the performance or observance of any of the pro- visions, covenants, terms or conditions of the Franchise , nor has any event occurred which, with the passage of time or the giving of notice, or both, would ripen into any such default; Cable TV Fund 10-C Ltd. Wells Fargo Bank, N.A. June , 1983 3. d. To the best knowledge of the City, Fund 10-C has not previously assigned, pledged, transferred or other- wise hypothecated any portion of its right, title or interest as the franchisee under the Franchise; e. The City hereby consents to the acquisition by the Agent of the Franchise pursuant to a public or private foreclosure sale, by deed or other instrument in lieu of foreclosure or pursuant to the exercise of any other rights or remedies of the Agent under the security agreement creat- ing the aforementioned security interest or under any other related agreement, instrument; or contract or by law or in equity or otherwise; f. The granting by Fund 10-C of a security interest covering the Franchise for the benefit of the Agent does not constitute a detfault under the Franchise and the City hereby consents to the same; g. The City hereby agrees to deliver all notices of default, termination, forfeiture or expiration and all other notices given to Fund 10-C under or in connection with the Franchise to the Agent and, if any such notice specifies one or more defaults or events of default or other acts or omissions which might lead to the termination, forfeiture or expiration of the Franchise, will give the Agent a reason- Cable TV Fund 10-C Ltd. Wells Fargo Bank, N.A. June . 1983 4. able period of time following the expiration of any notice, cure or grace periods specified in any such notice (or otherwise available to the franchisee) within which to cure such default or events of default or to otherwise take any other steps necessary to prevent the termination, forfeiture or expiration of the Franchise. The City agrees to accept any cure by the Agent as if such cure were made by the franchisee; and h. The City hereby agrees that it will not unrea- sonably withhold its consent to the transfer or assignment of the Franchise to any indivsdual or entity pursuant to any foreclosure proceedings instituted by the Agent (or subse- quent to any foreclosure proceedings in which the Agent acquired the Franchise). i Very truly yours, CITY OF AZUZA BY7Z I By e