HomeMy WebLinkAboutRes 079 - Cable Franchise TransferDeschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of June 4, 2014
DATE: May 27, 2014
FROM: Tom Anderson Administrative Services 388-6565
TITLE OF AGENDA ITEM:
Consideration of Resolution 2014-079 Approving the assignment and transfer of the cable television
franchise currently issued to Bend Cable Communications, LLC (db a Bendbroadband) to Telephone
and Data Systems, Inc (dba TDS Baja).
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
In April 2008, Deschutes County entered into a Franchise Agreement with Bend Cable
Communications (Bendbroadband) providing for operation of a cable system within designated
unincorporated areas of Deschutes County. Section 15 of the Franchise Agreement provides in pertinent
part that Bendbroadband "shall not sell, assign, dispose of or transfer this agreement, the Franchise or
the Cable System without prior written approval of County ... [s ]uch approval by County, shall not be
unreasonably withheld, delayed, or conditioned by the County". Upon seeking County approval,
Bendbroadband must demonstrate that the "proposed purchaser, assignee or transferee has such
financial and managerial resources as are sufficient to maintain the then current quality of Cable
Service and to comply with the terms of this Franchise ... ".
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Bendbroadband has informed Deschutes County that TDS Baja (an indirect wholly owned subsidiary of
Telephone and Data Systems, Inc.) is prepared to acquire Bendbroadband's cable system and franchise
which serves customers in Deschutes County. Bendbroadband has also submitted extensive financial
documents which establish that Telephone and Data Systems Inc., is a publicly-traded Fortune 500
corporation, provides cable and wire line connections to 5.8 million customers in 36 states, owns cell
phone carrier U.s. Cellular, and has 10,600 employees.
I FISCAL IMPLICATIONS:
None.
I RECOMMENDATION & ACTION REQUESTED:
Approve Resolution 2014-079 Approving the assignment and transfer of the cable television franchise
currently issued to Bend Cable Communications, LLC (dba Bendbroadband) to Telephone and Data
Systems, Inc (db a TDS Baja).
! ATTENDANCE: Tom Anderson, County Administrator
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DISTRIBUTION OF DOCUMENTS:
Administration, Legal, Bendbroadband, TDS Baja
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REVIEWED
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LEGAL COUNSEL
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Approving the Assignment and *
Transfer of Assets and Franchise from Bend * RESOLUTION NO. 2014-079
Cable Communications, LLC to Telephone and *
Data Systems, Inc. and its Assignee *
WHEREAS, Bend Cable Communications, LLC ("Franchisee") is the duly authorized
holder of a cable television franchise (the "Franchise") issued by Deschutes County, Oregon (the
"County"), authorizing Franchisee to operate and maintain a cable television system (the
"System") in the unincorporated area of the County; and
WHEREAS, Franchisee and Telephone and Data Systems, Inc. ("TDS") entered into an
agreement pursuant to which Franchisee has agreed to assign and transfer the assets of the
System (including the Franchise) to TDS Baja Broadband LLC ("Assignee"); and
WHEREAS, Franchisee, pursuant to Section 15 of the Franchise now seeks written
approval of the assignment and transfer of the assets of the System (including the Franchise) to
Assignee; and
WHEREAS, County has reviewed the financial submittals provided by TDS (including
FCC Form 394) and has determined that TDS and Assignee each have the financial and
managerial resources sufficient to maintain the current quality of cable service and to comply
with the terms of the Franchise; now therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY, OREGON as follows:
Section 1. The County consents to and approves of the assignment and transfer of
the assets of the System (including the Franchise) from Franchisee to Assignee.
Section 2. The County affirms that Assignee may assign or transfer its assets in any
manner consistent with the Franchise (including compliance with Section 15 of the Franchise).
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Page 1 of2 -RESOLUTION NO. 2014-079
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Section 3. This Resolution evidences the County's written approval of the
assignment and transfer of the assets of the System (including the Franchise) to Assignee.
Section 4. All terms of the Franchise remain in full force and effect.
Dated this ___of ___ ,2014. BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
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TAMMY BANEY, Chair
1i ANTHONY DeBONE, Vice Chair
ATTEST:
Recording Secretary ALAN UNGER, Commissioner
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Page 2 of2 RESOLUTION NO. 2014-079
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