(A) No person may construct or operate a cable system in the city without first obtaining a franchise therefor from the city pursuant to the terms and provisions of the City Charter and this article. A franchise is required before a permit may be issued for work associated with the construction, operation or repair of a cable system. Any permit issued for such work to a person that does not hold a franchise shall vest no rights in the permittee; the permit may be revoked at will, and the permittee shall remove all facilities installed under the permit upon and in full compliance with the city's demand.
(B) No transfer of a franchise, grantee, or cable system, or of control over the same (including, but not limited to, transfer by forced or voluntary sale, merger, consolidation, receivership, or any other means) shall occur unless prior application is made by the grantee to city and city's prior written consent is obtained, pursuant to this article and the franchise, and only then upon such terms and conditions as city reasonably deems necessary and proper to protect the public interest. City will not unreasonably withhold consent to a requested transfer. Transfer applications shall be deemed to be held in trust, and to be personal to the grantee. Any transfer that is made without the prior approval of City shall be without affect. The granting of approval for a transfer in one instance shall not render unnecessary approval of any subsequent transfer. An application for a transfer must be submitted at least 120 days prior to the date the transaction is scheduled to be consummated. If the city does not act upon an application for transfer within 120 days, it shall be deemed approved.
(C) A change of control of a franchise, grantee, or cable system cable will be deemed to have occurred whenever there is a change, acquisition or transfer of control of more than a 25% ownership in the grantee or its direct or indirect parents by any person, or a group of persons acting in concert who did not prior to the time of such change, acquisition or transfer already own 25% or greater ownership interest in the grantee or the direct or indirect parent, except where such change, acquisition or transfer involves only limited partner interests. Without limiting the above, any change in the general partners of a grantee will be presumed a change in control. A transfer also occurs whenever there is a change in actual working control (but not including non-ownership management), in whatever manner exercised, over the affairs of a grantee or its direct or indirect parents.
(D) Notwithstanding any other provision of this article, pledges in trust or mortgages of the assets of a cable system to secure the construction, operation, or repair of the system may be made without application and without city's prior consent. However, no such arrangement may be made if it would in any respect under any condition:
(1) Prevent the grantee or any successor from complying with this article, the franchise or other applicable law or regulation; or
(2) Permit a third party to succeed to the interest of the grantee, or to own or control the system, without the prior consent of city. Any mortgage, pledge or lease shall be subject to and subordinate to the rights of city under any franchise, this article, or other applicable law.
(Ord. 24-2002)