2005-38
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DA TE:
April 11. 2005
RESOLUTION NO:
2005-38
MOTION BY: Peterson
SECONDED BY: Labatt
RESOLUTION TRANSFERRING AND ASSIGNING THE RIGHTS AND OBLIGATIONS
OF KMC TO CENTURYTEL
WHEREAS, KMC Telecom, Inc. ("KMC") and the City of Chanhassen, Minnesota (the
"City") entered into an Encroachment Agreement ("Agreement") which took effect June 16, 1997
and which expires on June 15,2007 with an automatic renewal for successive five year periods. As
a result of a pending Asset Purchase Agreement initiated by CenturyTel Acquisitions LLC
("CenturyTel") d/b/a KMC Telecom ill to purchase the network assets of KMC in Chanhassen.
KMC has notified the City of its intent to transfer and assign the rights and obligations of KMC to
CenturyTel and has requested the consent of the City to transfer those rights and obligations
pursuant to the Agreement; and
WHEREAS, CenturyTel and KMC have jointly filed an application at the Minnesota
Public Service Commission pursuant to Minnesota Statute ~237.74(12) for the transfer of assets
and customers from KMC Telecom ill LLC (f/k/a KMC Telecom, LLC; KMC Telecom ill, Inc.), a
wholly owned subsidiary of KMC Telecom Holdings, Inc. to KMC Telecom ill LLC, a wholly
owned subsidiary of CenturyTel Acquisition, LLC,
WHEREAS, CenturyTel is qualified to provide the same services that KMC has been
providing in Chanhassen;
WHEREAS, CenturyTel agrees to adhere to all applicable provisions of the Agreement;
WHEREAS, CenturyTel' s acquisition of and continued operation of KMC' s network
assets in the City of Chanhassen will result in positive benefits for the Chanhassen community in
that it will promote local exchange competition.
NOW, THERFORE, BE IT RESOLVED by the City Council of the City of Chanhassen
that consent to the transfer and assignment of the rights and obligations of KMC pursuant to the
terms of the Encroachment Agreement to CenturyTel is hereby granted.
BE IT FURTHER RESOLVED that this Consent shall become effective as of the date of
the closing of the Asset Purchase of KMC Telecom ill LLC' s assets in Chanhassen by CenturyTel
which is anticipated to be on or near June 30, 2005. In the event that the Asset Purchase is not
closed before or within ninety (90) days after June 30, 2005, this Consent shall be null and void.
Passed and adopted by the Chanhassen City Council this 11th day of April, 2005.
e ATIEST:
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Todd Gerhardt, City Manager
YES
Furlong
Peterson
Labatt
Tjomhom
G:\admin\reso1\2005- 38
~A.~
NO
None
Thomas A. Furlong, Mayor