HomeMy WebLinkAbout2002-073 - Coalition of Local Governmental EntitiesRESOLUTION NO. 2002-073
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA SUPPORTING THE FORMATION OF A
COALITION OF LOCAL GOVERNMENTAL ENTITIES TO
PROTECT THE INTERESTS OF THE CITY OF SANTA
ANA AND ITS RESIDENTS DURING THE CHAPTER 11
BANKRUPTCY PROCEEDINGS INVOLVING ADELPHIA
COMMUNICATIONS CORPORATION
JWF 09/09/02
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
Adelphia Communications Corporation ("Adelphia,) is a cable operator that
provides cable service in the City under the authority of a cable television
franchise.
On June 25, 2002, Adelphia, and more than two hundred of its
subsidiaries, filed for bankruptcy protection, resulting from, among other
things, disclosure of approximately $3.1 billion in previously undisclosed
off-balance sheet obligations.
In the course of the bankruptcy proceedings, Adelphia will be required to
assume or to reject the current franchise agreement with the City, and
during that process the City should play an active role to ensure that all
franchise obligations are satisfied and that the City's cable television
subscribers receive uninterrupted cable television services of the highest
quality.
Complicated issues are expected to arise during the course of the
bankruptcy including question regarding the rights and obligations of local
governments; the need to protect the public health, safety, and welfare;
and the quality and scope of cable television services that are provided
under franchises let by local government necessitating local government
have a voice in those proceedings.
Bankruptcy law provides, in some circumstances, for the formation of
committees that are comprised of parties sharing similar interests in the
bankruptcy proceeding. By forming a committee, local governments can
present a united front in the bankruptcy case, thereby enabling local
governments to exert more influence over the ultimate terms and
Resolution No. 2002-073
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conditions under which Adelphia, or some other cable operator, will
provide cable services to subscribers on a going-forward basis.
On July 12, 2002, the Executive Director of the National Association of
Telecommunications Officers and Advisors ("NATOA"), and the President
of the States of Califomia and Nevada Chapter of N^TOA
("SCAN/NATOA") sent a letter to Adelphia's General Counsel requesting
that Adelphia support the United States Trustee's appointment of a local
governmental committee.
On August 15, 2002, Adelphia's General Counsel responded to the letter
from NATOA and SCAN/NATOA and stated that Adelphia would remain
neutral and would neither support nor oppose the formation of a local
governmental committee.
A hearing is scheduled on October 9, 2002 on the motion of County of St.
Port Lucie, requesting the creation of an official committee of local
franchising authorities.
Section 2. Based upon the information set forth above in the Recitals, the City
Council finds and determines that the City will benefit from its participation in a coalition
of cities, counties, and special districts that would act as the local governmental
committee in the bankruptcy proceedings, and would strive to protect the interests of
local franchising authorities and their cable television subscribers who are impacted by
the Adelphia bankruptcy.
Section 3. The City Council expresses its support for the appointment by the
United States Trustee of an official committee of local governmental entities.
Section 4. The City Council authorizes the City's participation in the event an
official committee of local governmental entities is appointed by the United States
Trustee.
Section 5. The Clerk of the Council is directed to transmit a certified copy of this
resolution to the following person:
Mr. Joe Hreha, Deputy Director
Community Services Department
City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, CA 93063
Section 6. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
Resolution No. 2002-073
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ADOPTED this 16th day of September, 2002.
yorlA. P~I~ ' - -
TO~M:
ttorney
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Councilmembers:
Councilmembers:
Councilmembem:
Councilmembers:
Alvarez, Bist, Franklin. McGuigan, Pulido (5)
None
None (0)
Christv. Solodo (2~
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the
attached Resolution No. 2002-073 to be the original resolution adopted by the City
Council of the City of Santa Ana on September 16, 2002
Date: ~//'~-'./,~ c~
City of Santa Ana
Resolution No. 2002-073
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