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Ordinance 1996-17ORDINANCE NO. 96 -17 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY PROVIDING CONSENT, SUBJECT TO CONDITIONS AND TERMS, TO THE TRANSFER OF A CABLE TELEVISION SYSTEM FRANCHISE FROM FALCON CABLE SYSTEMS COMPANY, L.P., TO FALCON CABLE SYSTEMS COMPANY II, L.P., PURSUANT TO GILROY MUNICIPAL CODE SECTION 24.57. WHEREAS, Gilroy Municipal Code section 24.57 provides that any television franchise may be sold, transferred, leased, assigned or disposed of, either in whole or in part, only with the prior consent of the City Council ( "City ") expressed by ordinance, and then only under such conditions and terms as may be prescribed by the City; and WHEREAS, Falcon Cable Systems Company, L.P., a California limited partnership ( "FCS "), is the holder of a franchise (the "Franchise ") to provide, operate and maintain a cable television system ( "System ") in the City of Gilroy; and WHEREAS, Falcon Holding Group, L.P., a Delaware limited partnership ( "FHGLP ") and the general partner of FCS desires to acquire FCS under the terms and conditions described in the Agreement of Limited Partnership of FCS; and WHEREAS, FHGLP is also the general partner of Falcon Cable Systems Company II, L.P., a California limited partnership ( "New Falcon "); and WHEREAS, FCS, FHGLP and New Falcon are in the process of negotiating the renewal of the Franchise; and WHEREAS, FCS, FHGLP and New Falcon have requested the City's consent to the transfer of ownership of the Franchise from FCS to New Falcon ( "Transfer "); and WHEREAS, FCS, FHGLP and New Falcon intend to perform the Transfer in compliance with such conditions and terms as are more particularly described below, and the City intends to consent to the Transfer under the conditions and terms stated herein; IRPJQ18278.01 -I- ORDINANCE 96 -17 61- N1104706002 FOLLOWS: NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF GILROY AS SECTION 1. In accordance with Gilroy Municipal Code section 24.57, City hereby consents to the Transfer subject to such conditions and terms as are herein prescribed; provided, however, if any one or all of the conditions and terms herein stated are not fully satisfied on or before October 18, 1996, then City's consent to the Transfer shall be deemed denied as of the date hereof. SECTION 2. FCS, New Falcon, and FHGLP shall guarantee in writing that the ongoing negotiations with the City for renewal of the Franchise shall not be adversely affected by the Transfer, which guarantee shall provide, without limitation, that: (a) the negotiation shall continue without interruption, notwithstanding the City's consent to the Transfer pursuant to the terms and conditions hereof, and (b) the terms and provisions negotiated by FCS, FHGLP and New Falcon for the renewal of the Franchise shall be binding on successor transferees. This guarantee shall be provided in substantially the form attached as Exhibit 1, or in such other form as is required and approved by the City. The guarantee shall be signed by FCS, FHGLP and New Falcon and received by the City on or before October 18, 1996. SECTION 3. On or before October 18, 1996, a performance bond and insurance policies, as required by the Gilroy Municipal Code, shall be furnished to the City to ensure performance by FCS, FHGLP and New Falcon of all provisions of the Franchise and the Gilroy Municipal Code. SECTION 4. FCS, FHGLP and New Falcon shall sign a Transfer Agreement, in substantially the form attached as Exhibit 2, or in such other form as is required and approved by City, and FCS shall make all payments required thereunder on or before October 18, 1996. At all times, FCS, FHGLP and New Falcon shall comply with and remain responsible for each and every provision and obligation of the Transfer Agreement and the Gilroy Municipal Code. 1RPA318278.01 -2- ORDINANCE 96 -17 61- 091104706002 SECTION S. By consenting to the Transfer pursuant to the terms and conditions of the Ordinance, City is not in any way determining that New Falcon is financially, legally, or technically qualified to hold the Franchise, and City expressly reserves determination thereof at such time as the City considers and negotiates the renewal of the Franchise. City's approval of this Transfer is not in any way a representation, warranty or guarantee that the City will issue a renewal franchise to FCS, FHGLP or New Falcon. SECTION 6. City's consent to the Transfer shall be deemed effective as of October 18, 1996, if and only if the foregoing conditions are satisfied on or before such date. PASSED AND ADOPTED this 23rd day of September, 1996 by the following vote: AYES: COUNCILMEMBERS: GILROY, MORALES, ROGERS, ROWLISON, SPRINGER, GAGE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: VALDEZ ATTES : - Susanne E. Ste'nme z, City C I, the undersigned, being the duly appointed qualified and City clerk of the City of Gilroy hereby certify that the foregoing ,Qrdinance No. 96 -17 is a true, correct and accurate copy as duly and lawfully passed and adopted by the City of Gilroy on the 23rd day of " 1RPM1627&01 -3- ORDINANCE 96 -17 61- 091104706002