Memorandum
City of Lawrence
Legal Services Department
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TO: |
David L. Corliss, City Manager Toni Ramirez Wheeler, Director of Legal Services |
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FROM: |
John Jay Miller, Staff Attorney |
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Date: |
September 28, 2010
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RE: |
Transfer of Cable and Telecommunications Franchises from The World Company and WorldNet L.L.C. to Knology of Kansas, Inc. |
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On September 7, 2010, the City Commission received a request form The World Company, d/b/a Sunflower Broadband (Sunflower), to transfer its cable systems, including its cable franchise agreement with the City, to Knology of Kansas, Inc., d/b/a Knology (Knology), and also a request from WorldNet L.L.C, to transfer its telecommunication systems, including its telecommunications franchise agreement with the City, to The World Company and then to Knology.
On August 3, 2010, The World Company entered into an Asset Purchase Agreement whereby The World Company will transfer their cable and telecommunications operations to Knology. This transaction is anticipated to close in November of 2010.
The World Company, WorldNet L.L.C. and Knology are requesting the City’s consent of the assignments to Knology (written notice). Assignment of the cable franchise agreement is allowed by Section 11 of Ordinance 7055, as amended. Assignment of the telecommunications contract franchise ordinance is allowed by Section 15 of Ordinance 7359, as amended. Knology will be bound by the terms and the provisions of the franchise ordinances.
With Ordinance 8577, the City Commission consents to the transfer of the cable franchise from the World Company to Knology. The ordinance requires Knology to provide the City with a Transfer Acceptance and Assumption document to complete the transfer. The transfer documents are to be substantially similar to the attachments.
With Ordinance 8575, the City Commission consents to the transfer of the telecommunications franchise from WorldNet L.L.C. to The World Company.
With Ordinance 8576, the City Commission consents to the transfer of the telecommunications franchise from The World Company to Knology. The ordinances require Knology to provide the City with a Transfer Acceptance and Assumption document to finalize the transfer.
Staff provided The World Company, WorldNet L.L.C. and Knology with the draft ordinances and transfer documents for their review.
City staff recommends adoption of the attached ordinances.
ACTION: Adopt the following ordinances, if appropriate:
· Ordinance 8575 consenting to the transfer of the telecommunication franchise from WorldNet L.L.C. to The World Company.
· Ordinance 8576 consenting to the transfer of the telecommunication franchise from The World Company to Knology.
· Ordinance 8577 consenting to the transfer of the cable franchise from The World Company to Knology.
Attachments:
Cable Franchise Transfer Acceptance and Assumption Document
Telecommunications Franchise Transfer Acceptance and Assumption Document