O-2058-6-02ORDINANCE NO. 2059-&02
' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, APPROVING THE CHANGE OF CONTROL FROM AT&T
CORPORATION TO AT&T COMCAST CORPORATION; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, Communication Service, Inc. (hereinafter referred to as "Franchisee) is currently a franchisee
for cable services in the City of Allen pursuant to Ordinance No. 1341-6-95 (the "Franchise'); and,
WHEREAS, Franchisee is an indirect subsidiary of AT&T Corp. ("AT&T"), and AT&T has proposed a
change of control of Franchisee from AT&T to AT&T Comcast Corporation ("AT&T Comcast'); and,
WHEREAS, the City of Allen Cable Communication Ordinance No. 1340-6-95 governs the granting and
regulation of cable television franchises for the installation, construction and operation of cable television
systems within the City; and,
WHEREAS, Franchisee, AT&T, and AT&T Comcast have requested the City's consent to the change in
control in accordance with Sections 8 and 24 of the Cable Communication Ordinance and have filed a FCC
Fonn 394 with the City requesting such consent; and
WHEREAS, the City has retained the services of C2 Consulting Services to review the FCC Fomr 394,
with respect to the legal, financial, and technical capacity of AT&T Comcast to control Franchisee, and
Franchisee's related ability to continue to adhere to the requirements and conditions of the Franchise; and,
WHEREAS, the City is willing to consent to the proposed change of control as detailed in the FCC Form
394, pursuant to the conditions set forth below.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1. All matters stated in the preamble are found to be true and correct and are incorporated herein
as if copied in their entirety.
SECTION 2. AT&T Comcast agrees that Franchisee will abide by the lawful and applicable terms of the
Franchise and its amendments, and all other ordinances of the City of Allen.
SECTION 3. Franchisee agrees that it will provide service pursuant to the lawful and applicable
requirements of the Franchise and its amendments after the closing.
SECTION 4. Subject to Franchisee's compliance with the provisions contained herein, the City of Allen
accepts the change of control of the Franchisee to AT&T Comcast. Such acceptance does not preclude
further investigation by the City of Allen of any potential franchise violations, including those occurring prior
to the change of control. Franchisee agrees that with respect to any violation or noncompliance issues that
are not extinguished prior to change of control, the City of Allen will have all rights to continue investigation
of such matters following the close of the merger under the terms set forth in the franchise agreements.
SECTION 5. Any actions which have the effect of circumventing payment of any lawfully required
' ordinance fees and/or evasion of payment of the ordinance fees by non -collection m non -reporting of gross
receipts, bartering, or any other means which evade the actual collection of revenues for businesses authorized
by Franchisee are prohibited. Pursuant to the Texas Constitution, the City is prohibited from granting
anything of value without compensation. The City has the right to audit all records relating to the calculation
of the franchise fee.
1]
SECTION 6. By granting this change of control, the City does not waive and specifically retains any right
to regulate and receive compensation as allowed by law for all Cable Services offered over the Cable System.
Upon request and if the City is lawfully allowed to make such a request, Franchisee shall inform the City of
any uses of the Cable System by persons who are not Cable Operators.
SECTION 7. Within thirty (30) days from the effective date of this ordinance, Franchisee shall hereby accept
this Ordinance and agrees to be bound by all of its terms, conditions, and provisions, subject to applicable law by
signing below. If Franchisee does not provide such agreement, this consent shall be null and voidable at the
City's discretion.
SECTION 8. If any section, paragraph, subdivision, clause, phrase, prevision or word of this ordinance
shall be judged invalid in unconstitutional, suchjudgments shall not affect the remainder of this ordinance.
SECTION 9. Should any word, sentence, paragraph, subdivision, clause, phrase or section of this ordinance be
adjudged or held to be void or unconstitutional, the same shall not affect the validity of the remaining portions of
said ordinance which shall remain in full fume and effect.
SECTION 10. This ordinance shall take effect immediately from and after its passage and publication of the
caption in accordance with the provisions of the Charter of the City of Allen, and it is accordingly so ordained.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE �5Ta DAY OF JUNE, 2002.
APPROVED:
Stephen Terrell, MAYOR
APPROVED AS TO FORM: ATTEST:
Pe er G. Smith, ATTORNEY Judy Mo on, CMC/AAE, CITY SECRETARY
Ordinance No. 2058-6-02, Page 2