Loading...
HomeMy WebLinkAbout9.a. Transfer of Control over FTTH Communications, LLC4ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Meeting: January 19, 2010 AGENDA ITEM: Transfer of Control over FTTH AGENDA SECTION: Communications, LLC New Business PREPARED BY: Dwight Johnson, City Administrator, Kim Lindquist, Community Development AGENDA NO. Director ATTACHMENTS: Draft Resolution, Draft Ordinance, FCC 394 Transfer Application, Memo from APPROVED BY: Mark Ruff dated 1/8/10 RECOMMENDED ACTION: There are two actions required for transfer of FTTH Communications, LLC and its Cable Franchise to Everest FTTH Acquisition, LLC: Motion to Approve a Resolution Approving Transfer of FTTH Communications, LLC and its Cable Franchise and System to Everest FTTH Acquisition, LLC; And Motion to Aperove an Ordinance Amending the FTTH Cable Franchise DISCUSSION The City of Rosemount was contacted by Rudder /FTTH some time ago indicating that they are interested in selling the cable /telephone /internet service and would ultimately need a transfer of the franchise agreement to a new entity. Rudder has been marketing the asset and has settled on a buyer, Jeffrey Feldman, who is currently associated with EveresTV, Inc. Mr. Feldman has been before the City Council at two meetings to discuss purchase and plans for future expansion of subscribers and services within the City of Rosemount. The Council has questioned the ability to receive more regular updates about subscribers, investments, and operational information about the system. In review of the current Franchise Agreement, Section 7 permits the City to request reports and maps relating to "operations, affairs, transactions or property, as they relate to the System." Section 7 also recognizes that the City may require evaluation sessions, which are open to the public, to discuss "application of new technologies, System performance, programming offered, access channels, facilities and support, municipal uses of cable, customer complaints, amendments to this Franchise, judicial rulings, FCC rulings, line extension policies and any other topics the City and Grantee deem relevant." The opportunities afforded in the Franchise requirements will allow the City access to desired information about the operations of the cable system. Staff has asked the City Attorney and financial consultant, Ehlers and Associates, to review the application information. The Attorney had reviewed a previous draft application and asked for modifications which are reflected in the application included in the council's packet. Ehlers reviewed the financial information that was made available from Mr. Feldman regarding EveresTV, Inc. Additionally they conducted a Dun and Bradstreet (D & B) review of EveresTV, Inc. Their comments about the information are attached. The first action item for the Council is a resolution approving the transfer of the cable franchise and system to Everest FTTH Acquisition, LLC. There are several items to note in the resolution. The resolution recognizes that the City Council adopted a resolution in July 2009 revoking the Franchise, and extended the Franchise revocation until April 21, 2010 in order to give additional time to work out purchase details. The resolution requires that the City consents to the transfer of cable franchise so long as the closing of the purchase occurs prior to that April 21, 2010 deadline. If the closing is not completed by April 21, 2010, the resolution indicates that the City's consent to the transfer is void and it would be deemed that the City denied the transfer application and the Franchise would be terminated. The resolution also notes that the City waives its right of first refusal to purchase FTTH and its system arising as a result of the transfer application. The resolution also preserves the City's rights regarding any and all compliance matters involving the Franchise and the right to enforce the Franchise. The ordinance amending the Franchise is an attachment to the resolution but staff is requesting the Council make a separate motion for its approval. The ordinance is consistent with the previous information forwarded to the Council. The ordinance modifies the dates for particular aspects of the PEG access, reduces the required letter of credit, and sets some benchmarking for future buildout. The benchmarking sets unit goals but is not linked to a map or specific neighborhood which is a departure from the previous franchise agreements. RECOMMENDATION Staff is recommending approval of the resolution allowing the transfer of the cable franchise and its system to Everest FTTH Acquisition LLC, and also approval of an ordinance amending the cable franchise. CITY OF ROSEMOUNT, MINNESOTA RESOLUTION APPROVING TRANSFER OF FTTH COMMUNICATIONS, L.L.C. AND ITS CABLE FRANCHISE AND SYSTEM TO EVEREST FTTH ACQUISITION, LLC. WHEREAS, the City of Rosemount ( "City ") granted a cable franchise to FTTH Communications, L.L.C. ( "FTTH ") pursuant to Ordinance No. X1.23 ( "Franchise "); and WHEREAS, FTTH currently operates a cable communications system ( "System ") in the City pursuant to the Franchise; and WHEREAS, Rudder Capital Corporation, a Minnesota corporation ( "Rudder "), holds 100% of all issued and outstanding membership interests in FTTH; and WHEREAS, on July 21, 2009, the City Council adopted Resolution No. 2009 -35 revoking the Franchise effective October 19, 2009 due to FTTH's undisputed and acknowledged material violations of the Franchise; and WHEREAS, Rudder subsequently indicated that it was negotiating with a potential purchaser and requested that the City extend the revocation date to allow additional time for continued negotiation and submission of a franchise transfer application in conjunction with sale of the System or FTTH; and WHEREAS, on October 14, 2009, the City Council adopted Resolution No. 2009 -59 extending the franchise revocation date to April 21, 2010, and reaffirming the prior Resolution in all other respects; and WHEREAS, FTTH and Everest FTTH Acquisition LLC, a Delaware limited liability company ( "Everest "), have filed a Federal Communications Commission Form 394 dated December 17, 2009 with the City, together with certain attachments (collectively "Transfer Application"); and WHEREAS, the Transfer Application includes the Securities Purchase Agreement dated December 1, 2009 by and between Rudder and Everest, and consented to by FTTH ( "Agreement "); and WHEREAS, pursuant to the Agreement, Everest intends to acquire from Rudder all membership interests in FTTH along with control over the System and Franchise; and WHEREAS, pursuant to the Franchise, Rudder and Everest cannot complete the transaction contemplated by the Agreement without the City's prior written consent; and RJV- 266063v1 VS 105 -3 WHEREAS, pursuant to Resolution Nos. 2009 -35 and 2009 -59, the Franchise will be terminated, null and void on April 21, 2010 unless the City withdraws revocation of Franchise for material violations; and WHEREAS, FTTH provides telephone and other telecommunications services under the regulatory jurisdiction of the Minnesota Public Utilities Commission ( "MPUC "); and WHEREAS, the transaction contemplated by the Agreement requires MPUC approval; and WHEREAS, the MPUC has not yet approved the proposed transaction with respect to the services under its jurisdiction; and WHEREAS, the MPUC and City review the same or similar considerations, to wit: whether the applicant has the financial, technical and legal/managerial capacity to operate; and WHEREAS, prior to filing the Transfer Application, Everest indicated that it would request that the City withdraw the revocation and agree to certain amendments to the Franchise including specifically modification of the required build -out schedule; and WHEREAS, the City has reviewed the Transfer Application and request to withdraw the revocation and modify the Franchise; and WHEREAS, in reliance upon the Transfer Application, the City will consent subject to the conditions set forth in this Resolution. NOW, THEREFORE, BE IT RESOLVED THAT the City consents to the transaction described in the Transfer Application and withdraws the revocation, subject to the following conditions: 1. FTTH and Everest shall be bound by the representations and understandings reflected in the Transfer Application; 2. The City will enact certain Franchise amendments as indicated in Attachment 1 hereto; 3. Everest shall be bound by all applicable laws, codes and regulations and the Franchise for the term thereof. 4. This consent shall continue until April 21, 2010 during which time the transaction contemplated by the Transfer Application must close. Within ten (10) days of closing, Everest shall provide written notice to the City. 5. All City fees, including PEG fees associated with the operations of the System and required by the Franchise must be paid and deemed up to date prior to the transfer. RJV- 218139v1 VS105 -4 BE IT RESOLVED FURTHER THAT the City waives its right of first refusal to purchase FTTH and /or the System arising as a result of the Transfer Application. BE IT RESOLVED FURTHER THAT by consenting herein, the City does not waive, and expressly reserves, its rights regarding any and all compliance matters involving the Franchise and the right to enforce the Franchise, and this consent shall not affect or impact the parties' rights and obligations concerning Franchise renewal. BE IT RESOLVED FURTHER THAT if any of the foregoing conditions are not met or satisfied, the City's consent is void and the City shall been deemed to have denied the Transfer Application and the Franchise shall terminate on April 21, 2010. BE IT RESOLVED FURTHER THAT FTTH or Rudder will reimburse the City for its actual legal fees incurred in review of the transfer, and related matters, in an amount not to exceed $10,000.00. BE IT RESOLVED FURTHER THAT Everest shall accept this Resolution, effective upon closing, as provided below. Adopted by the City Council of the City of Rosemount this day of .2010. Mayor ATTEST: City Administrator RJV- 218139v1 VS105 -4 ACCEPTANCE The foregoing Resolution, the Franchise and all terms and conditions therein, and the amendments to the Franchise noted, are expressly accepted and agreed to. EVEREST FTTH ACQUISITION LLC, a Delaware limited liability company Its: STATE OF NEW JERSEY ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of , 2010 by the for RJV- 218139v1 VS105-4 Notary Public P"o--tA � CITY OF ROSEMOUNT COUNTY OF DAKOTA STATE OF MINNESOTA ORDINANCE NO. AN ORDINANCE AMENDING THE FTTH CABLE FRANCHISE, ORDINANCE NO. X1.31 THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA, ORDAINS as follows: Section 1. Rosemount Ordinance No.XI.31, Section 6, paragraph 1 is amended as follows: Public, Educational and Government Access. d. Grantee will cable cast all PEG access programming produced by the City or City's designee. The Grantee will maintain the live video feed from City Hall. In addition, within 6 months of the franchise transfer the Grantee will begin cable casting ISD 196 Channel 10 and will provide or obtain a live video feed or connection from Apple Valley City Hall and cable cast PEG access programming produced by the Apple Valley, Farmington Rosemount Cable Commission including Rosemount /Dakota County Channel 22, Apple Valley /Farmington Channel 16 and the public access channel produced by the Cable Commission. Grantee shall present a plan and timetable for obtaining and cable casting Regional Channel 6. Grantee shall be responsible for the cost of obtaining the foregoing program feeds or connections, and the cost of any equipment necessary to cable cast such programming. Any PEG programming originated from FTTH facilities will be provided to all public buildings Section 2. Rosemount Ordinance No.XI.31, Section 8, paragraph 2 is amended as follows: Letter of Credit. a. At the time of acceptance of this Franchise, Grantee shall deliver to the City an irrevocable and unconditional Letter of Credit, in form and substance acceptable to the City, from a National or State bank approved by the City, in the amount of Ten Thousand Dollars ($10,000.00). (Remainder unchanged] Section 3. Rosemount Ordinance No. XI.31, Exhibit C is amended as follows: EXHIBIT C Exhibit C is a map showing the location of Grantee's system as constructed as of January 1, 2010. The City and Grantee acknowledge that the Grantee has applied for necessary governmental permits, licenses, certificates, and authorizations in order to construct a system serving the City and that such system construction is underway as of the date of the granting of this franchise. Grantee shall continue to apply for permits associated with work in specific portions of the right -of -way as construction proceeds. Energized trunk cable must be extended substantially throughout the Area depicted on Exhibit B, and installation of an additional 800 dwelling units must be completed by December 31, 2011. Persons along the route of the energized cable must have individual drops as desired during the same period of time. Thereafter, the system shall be extended throughout the remainder of the City consistent with the Franchise and in accordance with Minnesota Statutes, Section 238.084. Construction phases must result in a minimum of installations of service to at least 500 new dwelling units per year after 2011 and the Rosemount Business Park. Upon completion of system construction, Grantee will extend its system and services in accordance with Section 2.7 of the Franchise. The requirements herein may be waived by the City upon occurrence of unforeseen events or acts of God. The City may only agree to such modifications by amendment to this Franchise. Section 4. Rosemount Ordinance No.XI.31, Exhibit B and deleted and replaced with the following: Insert new current service area map and future service area. Section 5. This Ordinance shall be in effect following its passage and publication. ADOPTED this day of 2010, by the City Council of the City of Rosemount ATTEST: City Clerk 2 CITY OF ROSEMOUNT William H. Droste, Mayor CITY OF ROSEMOUNT COUNTY OF DAKOTA STATE OF MINNESOTA ORDINANCE NO. AN ORDINANCE AMENDING THE FTTH CABLE FRANCHISE, ORDINANCE NO. XI.31 THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA, ORDAINS as follows: Section 1. Rosemount Ordinance No.XI.31_, Section 6, paragraph 1 is amended as follows (deletions shown as strikeouts, additions shown in bold/underline): Public, Educational and Government Access. d. Upon the Effee6ve Date ef tWs Fffm , Grantee will cable cast all PEG access programming produced by the City or City's designee. VAdiia one yee& of Eff-eefive ate of this FrmeWse, +The Grantee will maintain the alive video feed from City Hall. In addition, , within 6 months of the franchise transfer the Grantee will begin cable casting ISD 196 Channel 10 and will provide or obtain a live video feed or connection from Apple Valley City Hall and cable cast PEG access programming produced by the Apple Valley, Farmington Rosemount Cable Commission including Rosemount/Dakota County Channel 4-22, Apple Valley/Farmington Channel 16 and the Public access channel produced by the Cable Commission. On-e� befer-e jamwy 1, 2 A9 Grantee shall present a plan and timetable for obtaining and cable casting Regional Channel 6 and, to the e)aent eemmer-eial feasible °m3i# °a by the ,.,,n+°.,+ °-A°, s) Publ ,, n eeess Channel 12. Grantee shall be responsible for the cost of obtaining the foregoing program feeds or connections, and the cost of any equipment necessary to cable cast such programming. Any PEG programming originated from FTTH facilities will be provided to all public buildings Section 2. Rosemount Ordinance No. XI.31, Section 8, paragraph 2 is amended as follows (deletions shown as strikeouts, additions shown in bold/underline): Letter of Credit. a. At the time of acceptance of this Franchise, Grantee shall deliver to the City an irrevocable and unconditional Letter of Credit, in form and substance acceptable to the City, from a National or State bank approved by the City, in the amount of Sbaylen Thousand Dollars ($610,000.00). [Remainder unchanged] Section 3. Rosemount Ordinance No. X1.31, Exhibit C is amended as follows (deletions shown as strikeouts, additions shown in bold/underline): EXHIBIT C Exhibit B C is a map showing the location of Grantee's system as ouffe constructed as of January 1, 2012, ' ebb g ,.,;tea i 2 and 3 and these per - ens of Area n eetk ,, the aem;... The City and Grantee acknowledge that the Grantee has applied for necessary governmental permits, licenses, certificates, and authorizations in order to construct a system serving the City and that such system construction is underway as of the date of the granting of this franchise. Grantee shall continue to apply for permits associated with work in specific portions of the right -of -way as construction proceeds. Energized trunk cable must be extended substantially throughout the Area 4-depicted on Exhibit B, and all asseeiated system eens#uefie installation of an additional 800 dwelling units must be completed by December 31, 2AA8 2011; eempleted by Deeeo 3 1, 2009; energized , ank able „s« be ex4en oa b t . Persons along the route of the energized cable must have individual drops as desired during the same period of time. Thereafter, the system shall be extended throughout the remainder of the City consistent with the Franchise and in accordance with Minnesota Statutes, Section 238.084,. Construction phases must result in a minimum of installations of service to at least 500 new dwelling units per year after 2011 and the Rosemount Business Park. Speeifieally, terahnique by the > or- pr-eeess (1) supplied Cffantee; > aPA (3) that is not general! kneyrin to, diselestwe and not being — •reacaazly aseeftuinable of sueh maps. t�- vy,wmpetit6rs that Upon completion of system construction in , Grantee will extend its system and services in accordance with Section 2.7 of the Franchise. The requirements herein may be waived by the City upon occurrence of unforeseen events or acts of God. The City may only agree to such modifications by amendment to this Franchise. Section 4. Rosemount Ordinance No. XI.31, Exhibit B and deleted and replaced with the following: Insert new current service area may and future service area. Section 5. This Ordinance shall be in effect following its passage and publication. ADOPTED this day of , 2010, by the City Council of the City of Rosemount. ATTEST: City Clerk 3 CITY OF ROSEMOUNT William H. Droste, Mayor 401 EHLERS LEADERS IM PUBLIC FINANCE O To: Kim Lindquist, City of Rosemount From: Mark Ruff, Ehlers & Associates W Date: January 8, 2010 2 Subject: EveresTV You have requested that we offer observations about the financial capacity of EversTV (the "Company ") to undertake the cable franchise previously held by FTTH Communications. Our overall finding is that the Company is a small firm with low revenues (less than $1 M in 2008), low outstanding debt (under $100,000 at the end of 2008) and without a substantial history to determine strengths or weaknesses. Assets at the end of 2008 were listed as slightly more than $500,000. Attached is a Dun and Bradstreet (D &B) report on the Company, as you requested. The report demonstrates that there is only minimal data available on the Company. The Company's credit quality recently jumped from the 20 percentile to the 73`d percentile. It is not clear why the credit quality rating increased after an extended period of time at a lower percentile. A likely explanation is that the Company paid off a debt or a line of credit. At this time, D &B ranks the firm's risk of payment delinquency as low to moderate. The D &B report shows no outstanding judgments or lawsuits. While the volume of information provided in the D &B report is limited, the greatest value in the report is affirmation that the Company has not encountered serious legal or financial problems while operating under this name. We reviewed only the D &B report and the financial information provided by the Company in the application to the City. We have not undertaken any independent review of the Company or spoken with its principals. The Company's primary place of business is New Jersey, therefore no regional public or private sector references are available. Please contact us with any questions or comments. Federal Communications Commission Washington, DC 20554 FCC 394 APPLICATION FOR FRANCHISE AUTHORITY CONSENT TO ASSIGNMENT OR TRANSFER OF CONTROL OF CABLE TELEVISION FRANCHISE SECTION I. GENERAL INFORMATION Approved By OMB 3060 -0573 FOR FRANCHISE AUTHORITY USE ONLY -. -DATE I 1 C'cl I 1 Community Unit Identification Number. 2. Application for: 0 Assignment of Franchise Transfer of Control 3. Franchising Authority: °x p 4. Identify community where the syste nOlse that is the subject of the assignment or transfer of control Is located: Assumed name used for doing business (if any) vSe. 5. Date system Wis acquired or (for system's constructed by the transferor/assignor) the date on City which service was provided to the first subscriber In the franchise area: 0o (p 6. Proposed effective date of closing of the transaction assigning or transferring ownership of the system to trans feree/assi nee: I t 17010 7. Attach as an Exhibit a schedule of any and all additional information or material filed with this application that is identified In the franchise as required to be provided to the franchising authority when requesting Its approval of the type of transaction that is the subject of this application. PART I - TRANSFEROR/ASSIGNOR Indirata thn namA- mallinn addraea and f.1- 6....e ..,,...its. -s 46- --- s---. Exhib� No. Legal name of Transteror /Assignor (if individual, list last name first) ,M (- Assumed name used for doing business (if any) Mailing street address or P.O. Box t� al TO Co ,ti,t ll 3' . 5'�c -3 c City State ZIP Code Telephone No. (include area code) -2. a - Attach as an Exhibit a co of the contract or agreement that - - -- - _ O copy g provides for the assignment or - _ Exhibit No: transfer of control (Including any exhibits or schedules thereto necessary in order to understand the A terms thereof). If there Is only an oral agreement, reduce the terms to writing and attach. (Confidential trade, business, pricing or marketing information, or other information not otherwise publicly available, may be redacted). (b) Does the contract submitted In response to (a) above embody the full and complete agreement between the transferor/assignor and the transferee/assignee? If No, explain In an Exhibit. `� ■ . Exhibft No. FCC 394 (Page 1) September 19% PART 11 - TRANSFEREE /ASSIGNEE 1.(a) Indicate the name, mailing address. and telephone number of the transferee /assignee. Legal name of Transferee/Assignee (if individual, list last name first) 6tirm- + F -Ti-+� A cpi s,, 4o Assumed name used for doing business (i any) Mailing street address or P.O. Box 6W 4-A& ! -+- 4 L � City i ZIP Code State ZIP Code �-a 24 Telephone No. (include area code). 7-,D 1 - 3 9 1 0 - 3 2 Indicate the name, mailing address, and telephone number of person to contact, if other than transferee/assignee. k-Nne. �' Name of contact person (list last name first) Firm or company name Of any) Mailing street address or P.O. Box City State ZIP Code Telephone No. (Include area code) (c) Attach as an Exhibit the name, mailing address, and telephone number of each additional person who Exhibit No. should be contacted, if any. �e o t \ � �'+ ' �nz i5xav 4:vp DX, -56- 10 . (d) Indicate the address where the system's records will be maintained. Street address b 1i� su L w city I ^ w State ZIP Code 2. indicate on an attached exhibit any plans to change the current terms and conditions of service and Exhibit No. operations of the system as a consequence of the transaction for which approval is sought. FCC 394 (Page 2) September 1996 SECTION Ii. TRANSFEREEVASSIGNEE'S LEGAL QUALIFICATIONS 1. Transferee /Assignee is: E, Corporation Limited Partnership General Partnership Individual a. Jurisdiction of incorporation: d. Name and address of registered agent in G jurisdiction: b. Date of incorporation: Cv 1 T V\ Lt.( c. For pro& or not - for -profit: 02� a. Jurisdiction in which formed: C. Name and address of registered agent in ludadiction: b. Date of formation: a. Jurisdiction whose laws govern formation: b. Date of formation: Other. Describe in an Exhibit. L. Exhibit No. 2. List the transferee/assignee, and, if the transfereelassignee is not a natural person, each of its officers, directors, stockholders beneficially holding more than 5% of the outstanding voting shares, general partners, and limited partners holding an equity interest of more than 5 %. Use only one column for each individual or entity. Attach additional pages if necessary. (Read carefully - the lettered Items below refer to corresponding lines in the following table.) (a) Name, residence, occupation or principal business, and principal place of business. (If other than an individual, also show name, address and citizenship of natural person authorized to vote the voting securities of the applicant that it holds.) List the applicant first, officers, next, then directors and, thereafter, remaining stockholders and/or partners. (b) Citizenship, (c) Relationship to the transfereelassignee (e.g., officer, director, etc.). (d) Number of shares or nature of partnershhp interest. (e) Number of votes. (f ) Percentage of votes. (a) 3aC �"I'r4ti tAc� ;c; %, LLt_ Eve. �e�+t Q // (Mi -_ 6:1- "ve br. L!`1 -OAC 6,KCAt 'kvt W.'- (,):I J (4, la, (c) r -k e,.t 4, tine. gµ e -4- (e) �z)-c ' (f ) Kb Der SVrweLwl FCC 394 (Page 3) -jo- c�►� ao� V September 1996 3. If the applicant is a corporation or a limited partnership, is the transfereelassignee formed under the Yes n, No laws of, or duly qualified to transact business in. the State or other jurisdiction in which the system operates? If the answer is No, explain in an Exhibit. Exhibit No. 4. Has the transfereelassignee had any interest in or in connection with an applicant which has been 0 Yes No dismissed or denied by any franchise authority/? If the answer Is Yes, describe circumstances In an Exhibit. Exhibit No. 5. Has an adverse finding been made or an adverse final action been taken by any court or F1 Yes MLCJ, No administrative body with respect to the transfereelassignee in a civil, criminal or administrative proceeding, brought under the provisions of any law or regulation related to the following: any felony; revocation, suspension or involuntary transfer of any authorization (including cable franchises) to provide video programming services; mass media related antitrust or unfair competition; fraudulent statements to another government unit; or employment discrimination? If the answer is Yes, attach as an Exhibit a full description of the persons and matter(s) involved, Exhibit No. Including an Identification of any court or administrative body and any proceeding (by dates and file numbers, if applicable), and the disposition of such proceeding. 6. Are then; arty documents, instruments, contracts or understandings relating to ownership or future Yes JR No ownership rights with respect to any attributable interest as described in Question 2 (including, but not limited to, non - voting stock Interests, beneficial stock ownership interests, options, warrants, debentures)? If Yes, provide particulars in an Exhibit. 7c. Do documents, instruments, agreements or understandings for the pledge of stock of the Yes E] No transfereelassignee, as security for loans or contractual performance, provide that: (a) voting rights will remain with the applicant, even In the event of default on the obligation; (b) In the event of default, there will be either a private or public sale of the stock; and (c) prior to the exercise of any ownership rights by a purchaser at a sale described in (b), any prior consent of the FCC and/or of the franchising authority, if required pursuant to federal, state or local law or pursuant to the terms of the franchise agreement will be obtained? If No, attach as an Exhibit a full explanation. Exhibit No. SECTION III. TRANSFEREE'S /ASSIGNEE'S FINANCIAL QUALIFICATIONS I . The transfereelassignee certifies that it has sufficient net liquid assets on hand or available from Yes F� No committed resources to consummate the transaction and operate the facilities for three months. 2. Attach as an Exhibit the most recent financial statements, prepared in accordance with generally Exhibk No. accepted accounting principals,, a balance sheet and income statement for at least one full - I - °. 1 year, for the transfereelassignee or parent entity that has been prepared in the ordinary course of business, if any such financial statements are routinely prepared. Such statements, if not otherwise publicly available, may be marked CONFIDENTIAL and will be maintained as confidential by the franchise authority and its agents to the extent permissible under local law. SECTION IV. TRANSFEREE'S /ASSIGNEE'S TECHNICAL QUALIFICATIONS Set forth in an Exhibit a narrative account of the transferee's /assignee's technical qualifications, experience Exhibit No. and expertise regarding cable television systems, including, but not limited to, summary information about appropriate management personnel that will be involved in the system's management and operations. The transfereelassignee may, but need not, list a representative sample of cable systems currently or formerly owned or operated. FCC 394 (Page 4) September 1996 01/03/2010 23:16 FAX 2019447469 EVERESTV to 005/003 01x0 A01V "1 09 FAX 261SW4E9 EV£BESiy UOal005 l3 ti iqN V - MR WIMCATIONS Port I - YroeNlprpel/Wl w Al tho aftwwb ffimb in 1ho npphooft aM a4 *dW guftb ara aamkw4d mob ow rspleaenbum. arKt an Itn !:*ltlhrs ero a ""Mw po homw and am incavowed homin as it w od in "to on appimtirxt. i t ti tF'{ &WIna dda mft ih 06 fps W6 bee, '^� •` fie beet d aq►:�Dtwle�ggs and seMaf one �- '� ` %MUJ:V . KQM fr^Tmtrs 4MM On pis PMM AM Fa'�*z � c k..l • �"�� E t. S part ".1hharohmm"Oft r trams M 64o ipadc�lat one g� us oa d �lriri ,i f,rl, ww dew b hLb pN lwea! ated a1y Mobepq� taitrin as fed ael h>idi fn tie p� Tna nw :aa@1Me tat �lich4C 1 Hra s am" of to imO'a Ado alWeio~ O e[ � amid ow d off* appamxf % and 41ww spp wo D mu on a low tr,� 1NM z s b C4t1p� M�ft1 tba lens otiht ehd sppMookle am **nor bad g a dh4mm d nirW arat aAyct dta as, is pettpfy dA P �abl9, in bte apsre a�uont, r ifb►tllf om rra rmm& aaq►to an y:VrlohMon. tAwarars �reundetpn.�ry>�, �aanpopg, I CCkT" Mid to ommwa* bt f* appuowlrn so fths, W"Wa and amatottobmdatAY brawkfta andmWWW dta ewes h goad �irkh. WI'.! M Film! I fAifaUiWV — Mt#*"W Wf IgkS "MR iYaulwoa Irawat�r WR �. U.S. ecaI M.,�,. Imm 1f, Sao mpd 40ot._ - r^•� Glrakap�apfMlle Wvi?,l ' fNXk A ob. u a: Fogx" 0*0 r, Oe�wiv tfDa