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EEVERETT <br /> An Ordinance Approving the Change of Control of Frontier Communications Northwest, INC., with <br /> Project title: Conditions and Establishing an Effective Date <br /> City Council Agenda Item Cover Sheet <br /> Council Bill# <br /> Consideration: Ordinance <br /> ' , Project: Change of Control of Frontier Communications Northwest, INC. <br /> Agenda dates requested: , :. <br /> 10/23/19, 10/30/19, Partner/Supplier <br /> 11/06/19 Location: N/A <br /> Briefing X Preceding action: None <br /> Proposed action Fund: N/A <br /> Consent <br /> Action <br /> Ordinance X Fiscal summary statement: <br /> Public hearing None. <br /> Yes X No <br /> Project summary statement: <br /> Budget amendment: On May 28, 2019, Northwest Fiber entered into a purchase agreement with Frontier <br /> Yes X No <br /> Communications Corporation, and its wholly owned subsidiary Frontier Communications <br /> PowerPoint presentation: ILEC Holdings, LLC. Under the purchase agreement, Northwest Fiber will acquire control <br /> Yes X No of Frontier Communications Northwest, Inc("Frontier"). Frontier offers cable TV <br /> services in the City pursuant to a cable TV franchise. <br /> Attachments: <br /> The franchise agreement requires that Frontier obtain the City's consent to the above- <br /> Department(s)involved: described transfer of control. <br /> Legal,Administration The transaction is all-cash and is valued at about$1.352 billion. At closing, Northwest <br /> Contact person: Fiber will have approximately$300 million dollars on the balance sheet to continue <br /> Katie Rathbun operations,and more than half a billion dollars in available liquidity. Northwest Fiber <br /> will take ownership of all Frontier state entities, networks, and assets in the Pacific <br /> Phone number: Northwest. Northwest Fiber's business plan aims to expand the fiber availability for <br /> 425-257-7007 both residential and commercial customers, as well as improve product capabilities and <br /> Email: service quality. <br /> krathbun@Everettwa.gov Attached to this cover sheet is a memorandum prepared by law firm Ogden Murphy <br /> Wallace with an analysis of the viability of and a recommendation to approve the <br /> transfer of control. <br /> Initialed by: <br /> Depa lent head <br /> inistra '•n <br /> jfwx <br /> Coun P sident Recommendation (exact action requested of Council): <br /> Adopt an Ordinance approving the change of control of Frontier Communications <br /> Northwest, INC.,with conditirls and establishing an effective date. <br />