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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 Page 1 of 3 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 Page 2 of 3 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 Page 3 of 3