(A) A cable operator’s franchise may not be assigned in whole or in part without the city’s prior written approval. For purposes of this section, ASSIGNMENT shall mean the transfer, sale or any other form of assignment of a cable operator’s franchise, to include any transaction or action which effectively or actually changes ownership from one person or entity to another to include the transfer of 50% or more of the ownership interest of an entity. Any attempted assignment without prior written approval shall constitute a default in the franchise.
(B) A proposed assignment shall be subject to the following.
(1) At least 120 days before a proposed assignment is scheduled to become effective, the franchised operator shall make a written request to the Council for the city’s approval of the proposed assignment.
(2) The city will not unreasonably withhold its consent to an assignment. However, in making its determination, the Council may consider the following criteria:
(a) Qualifications of the proposed assignee;
(b) Financial ability and stability of the proposed assignee;
(c) The experience of the proposed assignee which may include conducting an investigation of the proposed assignee’s record in other communities;
(d) Legal integrity of the proposed assignee or transferee;
(e) Information from the proposed assignee willingness to abide by the terms of the franchise; and
(f) The corporate connection, if any, between the franchised operator and the proposed assignee.
(C) Nothing in this section shall restrict the city from considering other reasonable criteria allowed under law, and in particular, any criteria established under state or federal law, rule or regulation.
(D) Before an assignment or transfer is approved by the city, the proposed assignee shall execute an affidavit that it has read, understood and intends to abide by any existing franchise agreements along with stipulated conditions, covenants, liabilities, obligations and provisions associated with the cable operator’s regulatory, statutory or contractual requirements.
(E) The city may condition such transfer upon such reasonable terms and conditions as it deems appropriate including curing of any outstanding defaults; provided, however, that any such terms and conditions shall be related to the legal, technical and financial qualifications of the prospective controlling party or transferee.
(F) In the event of an assignment, the former franchised operator shall remain liable for any franchise fees incurred for the period while it was franchisee, subject to the application of the state statute of limitations.
(G) (1) Consent shall not be required for an assignment to any entity controlled by, controlling or under common control of the cable operator.
(2) In addition, consent shall not be required for the granting of a security interest in the cable operator’s system including its franchise. However, if the holder of the security interest repossesses, forecloses or takes other action concerning its collateral, it shall dispose of the system within a reasonable period of time and the disposition by the holder of the security interest shall be considered an assignment subject to the provisions of this section.
(Prior Code, § 110.093) (Ord. 13-08, passed 6-3-2013)