HomeMy WebLinkAboutMINUTES - 02062001 - C.3 TO: BOARD OF SUPERVISORS `' J
FROM: MAURICE M. SHIU, PUBLIC WORKS DIRECTOR
DATE: FEBRUARY 6, 2001
SUBJECT: CONSENT TO ASSIGNMENT OF COUNTY'S, LICENSE WITH GST TELECOM, INC. TO TIME
WARNER TELECOM, INC.
Work Order No. 5080
SPECIFIC REQUEST(S)OR RECOMNIENDA"rION(S)&BACKGROUND AND JUSTIFICATION
I. Recommended Action: AUTHORIZE the Public Works Director, or his designee, on behalf of Contra Costa
County, the Contra Costa County Flood Control and Water Conservation District, and the Redevelopment Agency
of Contra Costa County (referred to together as the Agencies), to EXECUTE a letter consenting to the assignment
of the Agencies' license agreement with GST Telecom,Inc. (GST) from GST to Time Warner Telecom, Incorporated
(Time Warner), as provided in said license agreement.
II. Financial Impact: There will be no financial impact from this action.
III. Background and Reasons for Recommendations: On February 21, 1996, the Agencies entered into a License for
the Construction and Operation of Telecommunications Systems On Specified Contra Costa County Properties
(License) with GST. The License was amended on October 6, 1998. The License provided that GST would, in
exchange for license fees paid to the Agencies, install fiber-optic cable conduit within the Agencies' property,
formerly known as the Southern Pacific Right of Way, in order to provide commercial telecommunication service
to the public.
In 1999, GST declared bankruptcy under Chapter 11 in the United States Bankruptcy Court for the District of
Delaware (Court). On September 21, 2000, the Court ordered the sale of substantially all the assets of GST, and of
its subsidiaries, to Time Warner. GST's assets included the Agencies' license agreement with GST. The License
provides that no entity may possess DST's rights and obligations under the License without the prior written consent
of the Agencies. Upon review of the Court's order,the Agencies' consent to the assignment of the License from GST
to Time Warner is warranted.
IV. Consequences of Negative Action: The Agencies will not consent to the assignment of its License agreement with
GST from GST to Time Warner, and will bei iolation of the Court's order.
Continued on Attachment: SIGNATURE
RECOMMENDATION OF COUNTY AD RATOR
RECOMMENDATION OF BOARD COMMITTEE
_APPROVE _OTHER
SIGNATURE(S):
ACTION OF BOARD ON FEBRUARY 6, 2001 APPROVED AS RECOMMENDED_OTHER_
V E OF SUPERVISORS
UNANIMOUS(ABSENT NONE ) I hereby certify that this is a true and correct
AYES: NOES: copy of an action taken and entered on the
ABSENT: ABSTAIN: minutes of the Board of Supervisors on the
DRA:eh date shown.
G:\GipData\Rea1Prop\2001-Files\BOs&RES\l 1001GST.assign.brdl.doc FEBRUARY 6, 2001
Orig.Div: Public Works(R/P) ATTESTED:
Contact: D. Awenius (313-2227) PHIL BATCHELOR,Clerk of the Board of
cc: County Administrator Supervisors and County Administrator
Auditor-Controller(via R/P)
Jim Kennedy, Redevelopment(via R/P) By ,Deputy
Dean Eckerson,Flood Control(via R/P)
Phillip S. Althoff, Deputy County Counsel(via R/P)
P. W. Accounting