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HomeMy WebLinkAboutR-82-0843M82-766 (7/29/82) Uj RESOLUTION NO. 8 2- 8 4 3 A RESOLUTION ESTABLISHING A RULE OF THE CABLE COMMUNICATIONS AGENCY REGARDING INFORMATION TO BE PROVIDED TO THE CITY OF MIAMI PRIOR TO THE TRANSFER OF OWNERSHIP INTEREST IN THE CABLE TELEVISION LICENSEE; PROVIDING FOR A TIME WHEN OWNERSHIP TRANSFERS ARE PRESENTED TO THE CITY MANAGER; PROVIDING FOR WRITTEN DISCLOSURE INFOR- MATION; PROVIDING FOR CONDITIONS UNDER WHICH APPROVAL BY THE CITY COMMISSION IS REQUIRED AND PROVIDING FOR THE FORMS ON WHICH SUCH INFORMATION IS TO BE PRESENTED. WHEREAS, the City Commission adopted Ordinance No. 9332 on October 19, 1981, referred to as the Miami Cable Television License Ordinance; and WHEREAS, Section 701 of said ordinance provides for the adoption of reasonable rules and regulations that may be necessary for the con- duct of the system; and WHEREAS, Section 204 of said ordinance requires certain informa- tion to be provided prior to City approval of transfer of ownership interest in the Licensee; and WHEREAS, certain ownership interests are being transferred by the Licensee; and WHEREAS, it is necessary that the City maintain a record of all ownership interests in the Licensee including the conditions under which they are made; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The following rule is hereby adopted: Rule 1 - Transfer of Ownership Interest in Cable Television Licensee (a) Any person desiring to sell, purchase, exchange or otherwise transfer any ownership in Miami Tele-Communications, Inc. ("MCI") or Americable of Greater Miami, Ltd. ("Americable") shall, at least twenty-one (1) days prior to the proposed date of such transfer, present to the City Manager a written proposal with respect thereto. (b) The written proposal shall, in all cases, include full information regarding the details of the proposed transfer, .,iry COMMMMON 4 MEETING OB S E P 9 1982 �sourtan �a. $ 2,, 0 Ll including, without limitation, (i) a description of the interest to be transferred, (ii) the name, address and telephone number of the parties involved, (iii) the purpose of the acquisition (i.e., whether fully for investment or for the purpose of obtaining control), (iv) the amount of the purchase price and/or other consideration for the transfer, (v) a representation that the applicant has made reason- able inquiry and has no cause to believe that the proposed acquisition will result in a violation of any provision of Ordinance No. 9332 or will be contrary to the public interest, (vi) a statement that the purchaser will abide by the terms of the Miami Cable Television Ordi- nance No. 9332, and (vii) an affidavit signed by each party to the transfer confirming the accuracy of the information as required herein. The City Manager may require such additional information with regard to any proposed transfer as he deems appropriate. (c) In every case where the transfer of any interest in the Miami Cable Television Licensee is proposed each party to the transfer will provide the information herein required. The City Manager will provide the appropriate forms for the transfer of owner- ship in the *liami Cable Television Licensee. (d) When all of the required information has been provided, in the case of any proposed transfer which it appears resultsin any change in actual working control of the Licensee, MCI or Americable, then the request will be presented to the City Commission for their approval. A rebuttable presumption that a change of control or ownership has occurred shall arise upon the acquisition or accumula- tion by any person or group of persons of five percent (5%) or more of the Licensee, MCI or Americable. Section 2. This Rule shall be administered by the Cable Communi- cations Agency. PASSED AND ADOPTED this 9TH day of SEPTEMBER , 1982. ATTEST: eALP ONGIE, CITY CLEW -2- MAURICE A. FERRE ?•I A Y 0 R 82 -843 4w i PREPARED AND APPROVED BY: � 7 ROBERT F. CLARK DEPUTY CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: jfqCE R. GARCIA-PEDROSA TY ATTORNEY -3- 82-843 CITY OF MIAMI, FLORIDA 73 INTER -OFFICE MEMORANDUM Howard V. Gary DATE August 26, 1982 FILE City Manager SUBJECT 4a Mer0i i 1 Assistant to the City Manager Intergovernmental Affairs Proposed Rule to Transfer Owner- ship Interest in Cable Licensee REFERENCES ENCLOSURES (see page 2) "I recommend that the attached resolution establishing a Rule for Transferring Owner- ship Interest in the Cable Licensee be presented to the City Commission for their consideration." At the July 29, 1982 City Commission meeting a request was made to transfer a total of six percent (6%) interest in Americable of Greater Miami, Ltd. from George Kunde to Americable of Greater Miami, Ltd. (5%) and the William Hoffman Trust Account (1%). In approving that request, the Commission asked for additional information to be presented to them prior to making further requests for transfers of owner- ship in the cable licensee. (Motion No. 82-766.) The following rule has been drafted by the City's cable consultant Arnold & Porter and this office and provides for the necessary information regarding ownership interest in the cable television licensee as required by the cable television license ordinance. Rule 1 Transfer of Ownership Interest in Cable Television Licensee (a) Any person desiring to sell, purchase, exchange or otherwise transfer any ownership in Miami Tele-Communications, Inc.-V MCI") or Americable of Greater Miami, Ltd.("Americable") shall, at least twenty-one (21) days prior to the proposed date of such transfer, present to the City Manager a written proposal with respect thereto. (b) The written proposal shall, in all cases, include full information regarding the details of the proposed trans- fer, including, without limitation, (i) a description of the 82-843 CITY OF MIAMI. FLORIDA M . F 73 INTER -OFFICE MEMORANDUM Howard V. Gary DATE August 26, 1982 FILE City Manager 5`'e'E`T Proposed Rule to Transfer Owner- /�'i, ship Interest in Cable Licensee ark Me r i 11 REFERENCES Assistant to the City Manager Intergovernmental Affairs ENCLOSURES (see page 2) "I recommend that the attached resolution establishing a Rule for Transferring Owner- ship Interest in the Cable Licensee be presented to the City Commission for their consideration." At the July 29, 1982 City Commission meeting a request was made to transfer a total of six percent (6%) interest in Americable of Greater Miami, Ltd. from George Kunde to Americable of Greater Miami, Ltd. (5%) and the William Hoffman Trust Account (1%). In approving that request, the Commission asked for additional information to be presented to them prior to making further requests for transfers of owner- ship in the cable licensee. (Motion No. 82-766.) The following rule has been drafted by the City's cable consultant Arnold & Porter and this office and provides for the necessary information regarding ownership interest in the cable television licensee as required by the cable television license ordinance. Rule 1 Transfer of Ownership Interest in Cable Television Licensee (a) Any person desiring to sell, purchase, exchange or otherwise transfer any ownership in Miami Tele-Communications, Inc. -("MCI") or Americable of Greater Miami, Ltd.("Americable") shall, at least twenty-one (21) days prior to the proposed date of such transfer, present to the City Manager a written proposal with respect thereto. (b) The written proposal shall, in all cases, include full information regarding the details of the proposed trans- fer, including, without limitation, (i) a description of the 82 -843- TO: Howard V. Gary page 2 DATE: August 26, 1982 FROM: Clark Merrill RE: Proposed Rule to Transfer q Ownership Interest in Cable Licensee interest to be transferred, (ii) the name, address and tele- phone number of the parties involved, (iii) the purpose of the acquisition (i.e., whether fully for investment or for the purpose of obta-5-ing control), (iv) the amount of the purchase price and/or other consideration for the transfer, (v) a rep- resentation that the applicant has made reasonable inquiry and has no cause to believe that the proposed acquisition will re- sult in a violation of any provision of ordinance number 9332 or will be contrary to the public interest, (vi) a statement that the purchaser will abide by the terms of the cable tele- vision ordinance number 9332, and (vii) an affidavit signed by each party to the transfer confirming the accuracy of the in- formation as required herein. The City Manager may require such additional information with regard to any proposed trans- fer as he deems appropriate. (c) In every case where the transfer of any interest in the Miami Cable Television Licensee is proposed each party to the transfer will provide the information herein required. The City Manager will provide the appropriate forms for the transfer of ownership in the Miami Cable Television Licensee. (d) When all of the required information has been provided, in the case of any proposed transfer which it appears results in any change in actual working control of the Licensee, MCI or Americable, then the request will be presented to the City Commis- sion for their approval. A rebuttable presumption that a change of control or ownership has occurred shall arise upon the acquisition or accumulation by any person or group of persons of five percent (5%) or more of the Licensee, MCI or Americable. At the July 29, 1982 Commission meeting concern was expressed relating to the transfer of interest of local owners who had participated in the initial process for selecting the cable television licensee and who may be seeking to sell their interest now that the cable system is under construction. The City Attorney's office has been requested to formulate the appropriate criteria upon which the City Manager may determine to approve or disapprove such transactions. When this process is complete, it will be presented to the City Commission at a later date for consideration and approval as an amendment tq this rule. Mr. George Kunde has indicated his willingness to provide the information described in the proposed rule regarding the transfer of six percent (6%) ownership interest. CM/ah Enclosures: Attachment I - "Request for Approval of Transfer of Ownership Interest in the Miami Cable Television Licensee" form Resolution 82-843 ATTACHMENT I REQUEST FOR APPROVAL OF TRANSFER OF OWNERSHIP INTEREST -IN THE MIAMI CABLE TELEVISION LICENSEE Ownership and Control Information Name of Company in which ownership interest is to be transferred: (Americable of Greater Miami, Ltd. or Miami Tele-Communications, Inc.) Names of parties transferring ownership interest: Seller: Name Address City, State Telephone Occupation or Profession Name of Employer Address of Employer (If individual) (If organization) Zip Buyer: Name (If individual) (If organization) Address City, State Zip Telephone Occupation or Profession Name of Employer Address of Employer Page i of 5 8 2- 8 4 3 0 Ownership and Control Information (continued) Nature of Interest: ( ) Investment ( ) To obtain control ( ) Other (specify) Number of Shares to be transferred Purchase Price Percentage of Ownership transferred % (Other)_ explain If Buyer is an organization list all principals, officers, corporate directors and beneficial owners of 390 or more. Name Address Ownership Capacity N) (attach list if more space is needed) Attach a copy of all written agreements made regarding the transfer of ownership interest in the cable television licensee and outline any oral agreements or under- standings regarding this transfer. Ownership Qualifications The buyer will answer the following questions: 1 1. Does the buyer, or any person or business entity having any interest in buyer, directly or in5irectly own, operate, control, or have any interest in any of the following: a. A national broadcast television network (such as ABC, CBS, or NBC); or ( ) yes ( ) no 1. For purposes of this form, "interest" includes, in the case of corporations, officers, directors, and shareholders owning 1 percent or more of the company's out- standing voting stock. 2. An affirmative response to Questions 1(a) through 1(d) may constitute dis- qualification of a buyer if Federal Communications Commission (FCC) cr ss-ownership r les prohibit such a buyer from investing in cable systems (see CFR 63.54 and 76.501). Page 2 of 6 82-843 Ownership Qualifications (continued) 4 b. A television broadcast station whose predicted Grade B contour, computed in accordance with Section 73.684 of the FCC's rules, overlaps in whole or in part the service area of such system, or an applicant for a license to operate such a station; or ( ) yes ( ) no c. A television translator station licensed to the community of such system; or ( ) yes ( ) no d. A telephone company whose service area includes the community. ( ) yes ( ) no e. A newspaper having local circulation within the community. ( ) yes ( ) no f. A radio station. ( ) yes ( ) no 2. If "yes to any of the above, indicate below, with full identifying particulars, the nature and extent of such ownership operation, control of interest. Name of Buyer, Person or Entity: Name of Interest: Company in which Interest Held: Name of Buyer, Person or Entity: Nature of Interest: Company in which Interest Held: 3. Is the buyer a U. S. citizen? ( ) yes ( ) no 4. Is the buyer a U. S. corporation? If "no," please describe in detail. ( ) yes ( ) no 5. If "no," above, state any ownership retained by persons or entities which are not U.S. citizens or corporations. Page 3of 6 82-843 Character Qualifications of Transferee 1. Has the buyer (iicluding any affiliate or parent corporation if applicable) or any principal ever been convicted in a criminal proceeding (felonies or misdemeanors) in which any of the following offenses were charged? a. Fraud ( ) yes ( ) no b. Embezzlement ( ) yes ( ) no — c. Tax evasion ( ) yes ( ) no d. Bribery ( ) yes ( ) no — e. Extortion ( ) yes ( ) no f. Jury tampering ( ) yes ( ) no g. Obstruction of justice ( or other misconduct affecting public or judicial officers' per- formance of their official duties) ( ) yes ( ) no h. False/misleading advertising ( ) yes ( ) no i. Perjury ( ) yes ( ) no j. Anti-trust violations (state and federal) ( ) yes ( ) no k. Violations of FCC regulations ( ) yes ( ) no 1. Conspiracy to commit any of the foregoing offenses ( ) yes ( } no 2. If "yes," attach separate statement providing specifics such as date, court, sentence or fine, etc. 1. For the purposes of this form, "principal" means any officer or director of buyer, and any person, firm, corporation, partnership, joint venture, or other entity, who or which owns or controls 3 percent or more of the voting stock ( or any equivalent voting interest of a partnership or joint venture) of the buyer. Page 4 of 6 82-943 t. Character Qualifications of Transferee (continued) 3. Has the buyer or any principal ever been a party to a civil proceeding in which it was held liable for any of the follo,.,ing or is now a party to the proceeding? a. Unfair or anticompetitive business practices ( ) yes ( ) no b. Violations of securities laws (state and federal) ( ) yes ( ) no c. False/misleading advertising ( ) yes ( ) no d. Violations of FCC regulations ( ) yes ( ) no 4. If "yes," attach statement providing specifics. 5. Has buyer or any principal ever had a business license (defined to include FCC licenses, alcoholic beverage and restaurant licenses, etc.) revoked, suspended or the renewal thereof denied or is a party to a proceed- ing that may result in same? ( ) yes ( ) no 6. If "yes," attach statement providing specifics. 7. Has buyer or any principal ever, as a result of an adjudicated proceeding, been found in violation --other than routine service complaints --of any franchise agree- ment, contract, or regulation governing their cable communications system owned or operated by them? ( ) yes ( ) no 8. If "yes," attach statement providing specifics. 9. Has buyer or any principal ever initiated litigation against a franchising authority or had a franchising authority initiate litigation against it? ( ) yes ( ) no 10. If "yes," attach statement providing specifics. 11. Has buyer (including any affiliates or parent company) or any principal ever defaulted on a loan? ( ) yes ( ) no 12. If "yes," attach statement providing specifics. Page 5 of 6 82-843 i Buyers Affidavit The undersigned hereby attests to the accuracy of all the information contained herein and agrees to abide by the terms and conditions of the Miami Cable Tele- vision License Ordinance No. 9332. Buyer's Name (Print) Buyer's Signature Date ATTEST: Wi tness: Seller's Name Seller's Signature, Date Page 6 of 6 (Print) 82-843 0 6 Buyers Affidavit The undersigned hereby attests to the accuracy of all the information contained herein and agrees to abide by the terms and conditions of the Miami Cable Tele- vision License Ordinance No. 9332. Buyer's Name (Print) Buyer's Signature Date ATTEST: Witness: Seller's Name Seller's Signature Date (Print) Page 6 of 6 82-843