(a) Prior Written Approval Required. Prior written approval of the City Council shall be required before a Franchise is assigned or transferred, either in whole or in part, or leased, sublet, or disposed of in any manner, directly or indirectly, either by forced or involuntary sale, voluntary sale, merger, consolidation or otherwise; and before title thereto, either legal or equitable, or any right, interest, or property therein, passes to or vests in any person or persons. A change in control of a Grantee or any person that manages, owns, or controls the Grantee is a transfer within the meaning of this section.
(b) Applications. The proposed transferee shall make a written request of the City for approval of the transfer. The application shall provide complete information regarding the proposed transfer, including:
(1) All documents embodying the transaction,
(2) Financing documents,
(3) Documents identifying any person who will be responsible, through any arrangement, for managing or controlling the cable system,
(4) Documents showing that the proposed transferee has the financial, technical, and legal ability to operate the cable system after the transfer so as to satisfy all its obligations under a Franchise without adversely affecting subscribers,
(5) Information regarding the length of time that a Grantee has held the Franchise(s) involved in the transfer so that the City may make a determination under the FCC anti-trafficking rules 47 C.F.R. 76.502, and
(c) City Response. Upon receiving a transfer application, the City may require additional information from the Grantee or the proposed transferee as required to evaluate the proposed transaction, and both shall cooperate to provide the information to the City. The City shall be under no obligation to transfer the Franchise if the Grantee's acts or omissions make the Franchise subject to revocation; nor shall the City be required to transfer the Franchise unless it is fully satisfied that any interests it or the public has in the Franchise will be fully preserved and protected, that past non- performance will be corrected, and that the proposed transferee has the ability and is likely to comply with the Franchise in the future. Under no circumstances shall the Franchise be transferred unless the proposed transferee agrees to accept all the terms and conditions of the Franchise, agrees that the transfer does not constitute a waiver of any rights by the City or indication that the prior Grantee is or has been in compliance with the Franchise, and agrees to assume all the obligations and liabilities of the prior Grantee. The City may conduct such public hearings as it deems appropriate to consider the transfer request.
(d) Change in Control. A "change in control," for purposes of Sections 856.24
and 856.25
, includes a change in actual working control in whatever manner exercised and shall be deemed to have occurred whenever there is a disposition of five percent (5%) or more of any interest in a Grantee or any person that, through any arrangement, manages or controls the Grantee.
(e) Evidence of Transfer. A Grantee, upon transfer, shall within sixty days thereafter file with the City a copy of the deed, agreement, mortgage, lease, or other written instrument evidencing transfer of ownership control or lease of the cable system, certified and sworn to as correct by the Grantee.
(f) Transfer Null Without Authorization. Any transfer made without the authorization required herein renders a Franchise null and void from the time of the transfer.
(Ord. 52-96. Passed 7-8-96.)
(Ord. 52-96. Passed 7-8-96.)