(A) Except as provided in division (F) below, a franchise shall not be assigned, transferred, pledged, leased, sublet, hypothecated, or mortgaged, either in whole or in part, in any manner, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person without the prior written approval of the Municipality. The grantee may, however, transfer or assign the franchise to a parent or wholly owned subsidiary of the grantee and such parent or subsidiary may transfer or assign the franchise back to the grantee without such consent, providing that such assignment is without any release of liability of the grantee. Any proposed assignee must show legal, technical and financial responsibility as determined by the Municipality, and must agree, in writing, to comply with all provisions of the franchise. The grantee shall submit a petition to the Municipality requesting the Municipality's approval at least 90 days before the grantee takes any action in furtherance of accomplishing any such assignment, transfer, pledge, lease, sublet, hypothecation, or mortgage, containing or accompanied by such information as is required in accordance with FCC regulations and by the Municipality. The Municipality shall have 120 days to act upon any request for approval of any such assignment, transfer, pledge, lease, sublet, hypothecation, or mortgage. The Municipality shall be deemed to have consented to a proposed assignment, transfer, pledge, lease, sublet, hypothecation, or mortgage if it fails to render a final decision within 120 days following receipt of the petition and receipt of all necessary information as to the effect of the proposed assignment, transfer, pledge, lease, sublet, hypothecation, or mortgage upon the public, unless the requesting party and the Municipality agree to an extension of time. The Municipality shall not unreasonably withhold consent to a proposed transfer and shall promptly notify grantee of any action taken on such a request. Where the Municipality deems to have found the petition to be incomplete or requiring further information, the Municipality shall request further information from the grantee within 30 calendar days from the receipt of the petition.
(B) The grantee shall promptly notify the Municipality of any actual or proposed change in, or transfer of, or acquisition by any other party of, control of the grantee. The word "control" as used herein is not limited to major stockholders but also includes actual working control in whatever manner exercised. A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or accumulation by any person or group of persons (excluding any parent or subsidiary thereof) of 5% or more of the of the grantee or the franchise under which the cable system is operated. Change, transfer or acquisition of control of the grantee without the Municipality's consent shall make the franchise subject to cancellation unless and until the Municipality shall have consented thereto, which consent shall not be unreasonably withheld. For the purpose of determining whether it shall consent to such change, transfer or acquisition of control, the Municipality may inquire into the qualifications of the prospective controlling party, and the grantee shall assist the Municipality in such inquiry.
(C) The consent or approval of the Municipality to any transfer of the grantee shall not constitute a waiver or release of the rights of the Municipality in and to any public street or public way, and any transfer shall, by its terms, be expressly subordinate to the terms and conditions of the franchise.
(D) In the absence of extraordinary circumstances, the Municipality shall not be required to approve any transfer or assignment of a new franchise prior to substantial completion of construction of the proposed system.
(E) In no event shall a transfer of ownership or control be approved without the successor(s) in interest to the franchise agreement becoming a signatory to the franchise agreement.
(F) Nothing in this section shall be deemed to prohibit any assignment, pledge, lease, sublease, mortgage, or other transfer of all or any part of the grantee's cable system, or any right or interest therein, solely for financing purposes, provided that each such assignment, pledge, lease, sublease, mortgage, or other transfer shall be subject and subordinate to the rights of the Municipality pursuant to this chapter, the franchise agreement, and applicable law.
(Ord. 767, passed 4-25-00)