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RESOLUTION NO. 2002-073 <br /> <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br />SANTA ANA SUPPORTING THE FORMATION OF A <br />COALITION OF LOCAL GOVERNMENTAL ENTITIES TO <br />PROTECT THE INTERESTS OF THE CITY OF SANTA <br />ANA AND ITS RESIDENTS DURING THE CHAPTER 11 <br />BANKRUPTCY PROCEEDINGS INVOLVING ADELPHIA <br />COMMUNICATIONS CORPORATION <br /> <br />JWF 09/09/02 <br /> <br /> BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS <br />FOLLOWS: <br /> <br /> Section 1. The City Council of the City of Santa Ana hereby finds, determines <br />and declares as follows: <br /> <br />Adelphia Communications Corporation ("Adelphia,) is a cable operator that <br />provides cable service in the City under the authority of a cable television <br />franchise. <br /> <br />On June 25, 2002, Adelphia, and more than two hundred of its <br />subsidiaries, filed for bankruptcy protection, resulting from, among other <br />things, disclosure of approximately $3.1 billion in previously undisclosed <br />off-balance sheet obligations. <br /> <br />In the course of the bankruptcy proceedings, Adelphia will be required to <br />assume or to reject the current franchise agreement with the City, and <br />during that process the City should play an active role to ensure that all <br />franchise obligations are satisfied and that the City's cable television <br />subscribers receive uninterrupted cable television services of the highest <br />quality. <br /> <br />Complicated issues are expected to arise during the course of the <br />bankruptcy including question regarding the rights and obligations of local <br />governments; the need to protect the public health, safety, and welfare; <br />and the quality and scope of cable television services that are provided <br />under franchises let by local government necessitating local government <br />have a voice in those proceedings. <br /> <br />Bankruptcy law provides, in some circumstances, for the formation of <br />committees that are comprised of parties sharing similar interests in the <br />bankruptcy proceeding. By forming a committee, local governments can <br />present a united front in the bankruptcy case, thereby enabling local <br />governments to exert more influence over the ultimate terms and <br /> <br />Resolution No. 2002-073 <br /> Page 1 of 3 <br /> <br /> <br />