(A) A cable operator’s franchise may not be assigned in whole or in part without the town’s prior written approval. For purposes of this section, ASSIGNMENT means 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 Board of Trustees for the town’s approval of the proposed assignment.
(2) The town will not unreasonably withhold its consent to an assignment. However, in making its determination, the Board of Trustees 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 service record in other communities;
(d) Legal integrity of the proposed assignee or transferee;
(e) If requested by the Board of Trustees, submittals from the proposed assignee concerning any changes it intends to make in the operation and maintenance of the present cable system;
(f) The corporate connection, if any, between the franchised operator and the proposed assignee;
(g) The economic viability or non-viability of the cable system in the future, based upon certain factors including the impact of the purchase price on the town and/or the proposed assignee; and
(h) Any other aspect of the proposed assignee’s background which could affect the health, safety and welfare of the citizenry of the town as it relates to the operation of the cable system.
(3) Nothing in this section shall restrict the town from considering other criteria, and in particular, any criteria established under state or federal law, rule or regulation.
(4) Before an assignment or transfer is approved by the town, the proposed assignee shall execute an agreement that it has read, understood and intends to abide by any existing franchise agreement.
(5) In the event of any approved assignment, the assignee shall assume all obligations and liabilities of the former franchised operator, except as noted in the following division (B)(6).
(6) (a) The town’s consent to an assignment shall not relieve the former franchised operator of its liabilities under the franchise agreement until the assignment actually takes place unless specifically relieved by federal or state law or by the Board of Trustees at the time an assignment is approved. In the event of an assignment, the former franchised operator shall remain liable for any then incurred franchise fees for the period governed by the applicable state statute of limitations. Consent shall not be required for an assignment to a wholly-owned subsidiary entity of the current parent entity of a cable operator, whether the ownership is direct or indirect, such as through other wholly-owned intermediate subsidiaries.
(b) 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, § 13.20.410) (Ord. 96-13.20, passed - -1996)