Ord 2306 - Cable TV Transfer
COUNCIL BILL NO. 2360
ORDINANCE NO. 2306
AN ORDINANCE AMENDING ORDINANCE NO. 2299 IN ORDER TO ENABLE THE
TRANSFER AND ASSIGNMENT OF A CABLE TELEVISION FRANCHISE FROM
NORTH WILLAMETTE TELECOM, INC. (DIRECT LINK) TO WILLAMETTE
BROADBAND, LLC., AND DECLARING AN EMERGENCY.
WHEREAS, the Council passed Ordinance No. 2299 approving and consenting to the
transfer and assignment of a cable television franchise from North Willamette Telecom, Inc.
(Direct Link) to Willamette Broadband, LLC, (Willamette) based upon the satisfactory
completion of certain conditions; and
WHEREAS, one condition was that Direct Link complete its franchise negotiation with
the City in order to achieve a mutually agreeable new franchise designed to meet current
Woodburn regulatory requirements and community needs; and
WHEREAS, after certain negotiations, a franchise agreement has been proposed and
will be presented before the Council at a public hearing on November 26,2001; and
WHEREAS, it is necessary that the 90 days provided by Ordinance 2299 to complete the
franchise renewal negotiations be extended; and
WHEREAS, it is also necessary that the condition originally imposed upon Willamette
requiring an independent and unconditional guarantee of franchise performance by its principals
be removed, Willamette having demonstrated to the City that such a guarantee is not possible;
NOW, THEREFORE,
THE CITY OF WOODBURN ORDAINS AS FOLLOWS:
Section 1. Section 1 of Ordinance No. 2299 is hereby amended to read as follows:
Section 1. The City hereby approves and consents to the transfer and
assignment of the Franchise from North Willamette Telecom, Inc. to Willamette
Broadband, LLC contingent upon Willamette's satisfactory completion of the
following conditions no later January 2, 2002.
(A) Complete the franchise renewal negotiations, represented in a
mutually agreeable new franchise designed to meet current
Woodburn regulatory requirements and community needs;
(B) Post a performance bond, to cover all franchise performance by Willamette, in an
amount of $300,000. Said bond shall be in a form acceptable to the City
Attorney;
Page I - COUNCIL BILL NO. 2360
ORDINANCE NO. 2306
(C) Establish a security fund or letter of credit running to the City in the amount of
$25,000. Such security fund or letter of credit shall be in a form acceptable to the
City Attorney, and shall be retained by the City for a period of five years, or until
such time as the City Council deems, based upon Willamette's performance under
a franchise, that such security is no longer necessary; and
(D) Agree in writing to remedy any historical violation or default under the Franchise,
regardless of whether the Seller or Willamette is responsible for the violation or
default.
IfWillamette fails to complete any of the conditions (A) to (D) above by January 2, 2002,
consent to the sale and transfer of the Franchise is denied
Section 2. Section 2 of Ordinance No. 2299 is hereby amended to read as follows:
Section 2. Subject to condition (A) to (D) above being met by January 2, 2002,
and from and after the closing of the sale of the Franchise and related assets to
Willamette, Willamette shall become the operator of the Franchise and shall be
bound by the lawful obligations and duties that arise on and after the closing with
respect thereto and the Seller shall be released of such obligations and duties.
Section 3. This ordinance being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist and this ordinance shall take effect
immediately upon passage by the Council and approval by the Mayor.
APprovedastoformm.~~ r \ - 2l' 2cc {
N. Robert Shields, City Attorney Date
APProVed:~Il.~~L<-. ~
ichard Jenmn~ Ma~
Passed by the Council November 26. 2001
Submitted to the Mayor
November 27, 2001
Approved by the Mayor
November 27, 2001
Filed in the Office of the Recorder
ATTEST: ~~
Mary Tenn t, City Recorder
City of Woodburn, Oregon
November 27, 2001
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COUNCIL BILL NO. 2360
ORDINANCE NO. 2306