HomeMy WebLinkAbout99-78 - Approving a change in control for franchisee Metricom, Inc106
RESOLUTION NO. 99-78
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, APPROVING A CHANGE IN
CONTROL FOR FRANCHISEE METRICOM, INC.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AND FIND AS FOLLOWS:
WHEREAS, on January 6, 1997, the City of Costa Mesa approved a
Franchise Agreement entered into by and between the City of Costa Mesa ("City")
and Metricom, Inc., permitting Metricom to install, operate, and maintain a
wireless digital communication radio network in the City public right-of-way; and
WHEREAS, there are certain provisions of the Costa Mesa Municipal Code
which govern a "change of control" of a franchisee; specifically, Section 19-3230)
of the Costa Mesa Municipal Code which requires that a franchisee notify the City
whenever a "change of control" in ownership occurs and obtain the City's consent
thereto; and
WHEREAS, in November, 1999, Vulcan Ventures, Inc. ("Vulcan") committed
to purchase shares in Metricom amounting to a 49.7 percent ownership in
Metricom ("Transaction"); the Transaction was approved by Metricom
shareholders on January 30, 1998; the Transaction is considered a "change of
control" under the Costa Mesa Municipal Code because Vulcan acquired "actual
working control" of Metricom as a result of the Transaction; and
WHEREAS, Metricom inadvertently failed to notify the City and seek the
City's consent for the Transaction at least 30 days prior to this "change of
control" as required under the Costa Mesa Municipal Code; and
WHEREAS, the City's authorization of this "change of control" will benefit
the residents of the City by allowing Metricom's Ricochet system to be deployed
within the City, and will enhance Metricom's ability to operate the system.
NOW, THEREFORE BE IT RESOLVED by the Costa Mesa City Council that
the City Council hereby consents to the Transaction described above in
accordance with the requirements and procedures specified in Section 19-323(1) of
the Costa Mesa Municipal Code with retroactive effect just as if Metricom had
requested the City's consent to the Transaction as required under Section 19-
323(1) and as if the City had granted its consent thereto in due course.
PASSED AND ADOPTED this 15th day of November, 1999.
ATTEST:
Deputy Citi lerk of the City of Costa Mesa
— a, ( ---7
Mayor oft City of Costa Mesa
STATE OF CALIFORNIA)
COUNTY OF ORANGE ► ss
CITY OF COSTA MESA ►
I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City
Council of the City of Costa Mesa, hereby certify that the above and foregoing
Resolution No. 99-78 was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on the 15"' day of November, 1999.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of
the City of Costa Mesa this 16"' day of November, 1999.
Deputy Citylerk and ex -officio Clerk of
the City Cou cil of the City of Costa Mesa
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