HomeMy WebLinkAboutResolution - City Council - 82-524 - 1982-11-09• •
RESOLUTION 82-524
A RESOLUTION OF THE COUNCIL OF THE CITY OF
FRESNO, CALIFORNIA, APPROVING A LONG-TERM
FINANCING AGREEMENT FOR FRESNO CABLE TV
LIMITED
City Attorney
Finance
MSl>
WHEREAS, pursuant to Article 2 of Chapter 6 oj: the Fresno
Municipal Code, Fresno Ca;ble TV Limited is the grantee of a cable
television franchise by the City of Fresno, and is the lessee of
city-owned property for television signal receiving and
transmitting purposes; and
WHEREAS, section 6-2:ll(c) of the Fresno Municipal Code and
Article XIII of the Land Lease Agreement bet,iTeen the City of
Fresno and the Franchise€! require that the city give consent to a
hypothecation of the franchise and assignment of the lease.,
provided that such consent shall not be unreasonably withheld by
the Council upon a showing of financial responsibility by the
proposed transferee, and an agreement by the proposed transferee
to abide by the terms of the Cable Television ordinance and the
Land Lease Agreement; and
WHEREAS, previously on September 29, 1981., the council by
Resolution No. 81-382 consented to the hypothecation of the cable
television franchise of Fresno Cable TV Limited to the Bank of
America N .. T .. & S .. A .. , as trustee, by a Deed of Trust and Security
Agreement to secure long-term financing; and to the operation of
the cable television franchise by the trustee in the event of
foreclosure due to default by the Franchisee, f;ubject to certain
conditions which were subsequently met; and
WHEREAS, the financing from said long-term financing was to
be utilized for capital improvement construction activities; and
WHEREAS, the Franchisee and one of its lenders, Bank of
Montreal, have reached a new long-term financing agreement; and
WHEREAS, said new long-term financing agreement will extend
the date for converting the revolving loan to a term loan from
December 31, 1982, to December 31, 1984, and chang,e the method of
-1-
.. •
computing interest to allow the Franchisee an option to compute
interest by reference to the lower of domestic or London bank
rate of interest; and
WHEREAS, Bank of America, N.T. & S .. A., as trustee, has
reaffirmed its consent to abide by all termis and conditions of
the Fresno Cable Television Ordinance and the subject Land Lease
Agreement, and to prior approval by the Council of any subs,equent
transfer of the franchise by the trustee.
NOW, THEREFORE, BE IT RESOLVED that the Council consents to
the hypothecation of the cable television franchise of Fresno
Cable TV Limited to the Bank of America, N.T. & S.A., as trustee,
by a Deed of Trust and Security Agreement to secure long-term
financing and to the operation of the cable television franchise
by the trustee in the event of foreclosu:i:·e due to default by
Franchisee.
STATE OF CALIFORNIA
COUNTY OF FRESNO
CITY OF FRESNO
* * * * * * * * * * * * * *
CLERK'S CERTIF:tCATION
I, JACQUELINE L~ RYLE, City Clerk of the City of Fresn,o I certify
that the foregoing resolution was adopted by the Council of the
City of Fresno, California, at a regular meeting held on
the ~th _day of No'lember, J9BZ _ •
HCM:mak
11/8/82
1371/40
.. --···--g1r~ -~~t!~: L. RYL1~ ~)
,..,-t i
! "• I{_,,,,/"' / Bjd f!@,--e,f;/;. e.-rA·-/-¥{ i/1=-
,f ,._, D~ } 1 /l --
I
APPROVED AS.TO FOR!.! /
' ,,,
CIT'-7 Ni''i'OB t.r;t'-~ ~· <>· OFFicz/