(A) The franchise shall be nonexclusive and shall be for a term as specified in the franchise, not to exceed 15 years.
(B) (1) Except as herein provided, no transfer of control of the CATV shall take place, whether by forced or voluntary sale, lease, mortgage, assignment, encumbrance, or any other form of disposition, without prior notice to and approval by the City Council. Provided, that the transfer, alteration, substitution, or conveyance of shares within the parent, holding corporation, subsidiaries, or corporations in the control (as hereinafter defined) of the franchisee’s parent corporation shall not constitute transfer of control. Provided further, that transfer of control shall include any situation when 10% or more of the shares is transferred to any entity outside the control (as hereinafter defined) of the parent corporation. The notice shall include full identifying particulars of the proposed transaction, and the City Council shall either approve or disapprove the transfer by resolution, within 60 days of the receipt of the notice.
(2) The consent or approval of the City Council to any assignment, lease, transfer, sublease, or mortgage of the grantee shall not constitute a waiver or release of the rights of the city in and to the streets.
(3) For the purpose of this section, the following definition shall apply unless the context clearly indicates or requires a different meaning.
CONTROL. Is not limited to majority stock ownership, but includes actual working control in whatever manner exercised.
(4) A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or accumulation by any person or group of persons of 10% of the voting shares of any corporate grantee.
(5) In the absence of extraordinary circumstances, the City Council will not approve any transfer or assignment of the grantee before completion of initial construction of the energized cable.
(6) Notwithstanding anything herein to the contrary, the franchisee may hypothecate or pledge its interest in this franchise for the purpose of obtaining financing, the proceeds of which shall be utilized in the construction, maintenance, and operation of a cable television system authorized under the terms of this chapter. Any change in ownership or control of the system resulting from the pledge or hypothecation shall not become absolute without:
(a) The approval of the city; and
(b) Any new grantee filing with the city its written acceptance of this chapter, the franchise, and all the conditions thereto. The acceptance shall be filed within 60 days following the date of the change.
(C) The City Council may terminate the franchise prior to the date of expiration upon a finding, made after 30 days’ notice of any proposed termination and public hearing, that:
(1) The grantee has failed to comply in some material respect with any of the provisions of this chapter, or has, by any act or omission, violated in some material respect any term or condition of any franchise or permit issued hereunder;
(2) The grantee made a material, false statement in the application for the franchise, or in any information submitted pursuant to § 112.07(B) knowing it to be false; or
(3) The grantee, contrary to the best interest of public convenience and welfare, is not providing subscribers with service which is regular, adequate, and proper.
(D) In the event that the use of any tangible part of the CATV system is discontinued for any reason for a continuous period of 90 days, or the franchise has been terminated, cancelled, or has expired, the grantee shall promptly remove from the streets or public places all the property of the system, other than that which the Mayor may permit to be abandoned in place, and as directed by the Mayor shall either restore the street or pay the city for restoring the street or other area from which the property has been removed to a condition for public use as good as the abutting portions thereof. Any property remaining in place 60 days after the termination or expiration of the franchise shall be considered permanently abandoned.
(Ord. 20, passed 8-5-1982)