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1995-021 I o o o STATE OF MINNESOTA CITY OF HOPKINS RESOLUTION NO. 95-21 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 Hopkins is a member, received a letter and Form 394 from Paragon Cable, the current franchisee of the cable system in Hopkins, 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, Inc. 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 Hopkins state that a franchising authority which receives a written request for approval of a sale or 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 affect the subscribers; and WHEREAS, the Minnesota Cable Communications Act. and the cable franchise ordinance for the City of Hopkins 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 Hopkins states that the City of Hopkins may inquire into the qualifications of the prospective controlling party, and the Grantee shall assist the City in such an inquiry and pay 393980 - 1 - o o o 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 Hopkins, 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 Hopkins has up to 120 days to exercise its right to purchase the system at the bona fide purchase price in the offer. NOW, THEREFORE, the City of Hopkins resolves 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 Hopkins 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 a hearing will be held on April 18, 1995 at 7:30 p.m. 3. The City of Hopkins acknowledges that it has the right to purchase the cable system pursuant to Article XI of the cable franchise ordinance for the City of Hopkins and it is determining whether to exercise that right. BE IT FURTHER RESOLVED, that the City Clerk is directed to send a copy of this Resolution to Paragon Cable and Time Warner, Inc. A motion to approve the foregoing Resolution No. 95-21 , was made by Council Member Anderson and duly seconded by Council Member Kritzler 393980 - 2 - ... . .,. . o o o The following Council Members voted in the affirmative: Charles D. Redepenning Charles Kritzler Frances Hesch Eugene Maxwell Robert Anderson The following Council Members voted in the negative: None Passed and adopted this 21s t day of , 1995. Narch ATTEST: ~~.~~ Title: De~y City Clerk ~~~,~~~-~ Title: ~ayor ~ 393980 - 3 -