(A) The franchisee shall not transfer, assign, sell, lease or dispose of, its interest in any franchise or ordinance or agreement awarding a franchise in accordance herewith or in its cable communications system without the prior written authorization of the City Council. A merger or consolidation shall be deemed a transfer or assignment.
(B) During the term of any franchise, the franchisee shall not sell, transfer, assign, lease, dispose of, exchange or release more than 25% of the ownership of its cable communications system to a person, (hereinafter "proposed transferee") without the prior written authorization of City Council. The City Council may require such information as it reasonably deems necessary from the franchisee in connection with a proposal to sell, transfer, assign, lease, dispose of, exchange or release of more than 25% of the ownership of its cable communications system.
(C) Any proposed transferee shall execute an agreement, in the form and containing the conditions approved by the City Attorney that it will assume and be bound by all of the provisions, terms and conditions of this chapter and any agreement or ordinance in accordance herewith and all applicable federal, state and local laws and further that it shall be primarily liable and obligated under said documents without, however, relieving the franchisee from its obligations to the city under said document.
(D) No transfer under division (A) or (B) of this section shall be made within 13 months of the termination date of the term of franchise agreement.
(E) Nothing in any approval by the City Council of any transfer or assignment of any ownership interest pursuant to divisions (A) and (B) of this section shall be construed to waive or release any rights of the city in and to the streets, public ways and public places of the city or as a release of any of the city's police powers.
(F) The occurrence of any event which constitutes either grounds for entry of an Order for Relief under the united states Bankruptcy Code, or placement of the franchisee into receivership, or the issuance of any order to the franchisee or any of its stockholders by a government agency or court of competent jurisdiction to divest any interest related to the cable communications system hereunder, or the entry of any judgment against the franchisee which, in the opinion of the City Council impairs the franchisee's credit shall be deemed an unauthorized transfer and assignment under the provisions of this section and shall:
(1) Be deemed a material breach and default of any agreement or ordinance awarding a franchise in accordance herewith; and
(2) Subject the franchisee to all penalties and remedies prescribed in the agreement and to all other remedies, legal and equitable which are available to the city.
(G) The occurrence of an unauthorized transfer or assignment may, at the option of the city, terminate any agreement and franchise and accelerate all of the obligations and rights thereunder including, inter alia, the right of the city to purchase the cable communications system at book value or to award a franchise to another person.
(1) The franchisee shall notify the City Clerk of any occurrence which constitutes an unauthorized transfer under the provisions of division (F) hereof and of the entry of any judgment against it within 24 hours of such occurrence.
(H) From and after any of the occurrences enumerated in division (F) hereof, the franchisee shall not make, execute or enter into any deed, deed of trust, mortgage, contract, conditional sales contract or any loan, lease, pledge, sale, pole agreement or any other agreement or hypothecation concerning any of the facilities or property, real or personal, of the cable communications system without the written approval of City Council.
(Ord. 92-06, passed 12-17-92; Am. Ord. 93-01, passed 5-20-93)