(A) To protect the rights and interest of the city under any franchise agreement entered into pursuant to this chapter, a franchisee shall not consummate any conditional sales contract, transfer, assignment, or merger of assets, or otherwise transfer control of the cable system without obtaining prior city consent. If the franchise agreement gives the city a right of first refusal in such a situation, the city shall first be notified pursuant to such contractual provisions. If the city has no such right of first refusal or elects not to exercise it, the franchisee shall not consummate the transaction without adherence to the following procedures:
(1) The franchisee shall file an application with the city for its consent pursuant to the requirements of §§ 112.020 et seq. of this chapter, which application shall supply all pertinent information relevant to the proposed transaction, including, among other things, a copy of the purchase agreement and full details on the proposed transferee and any plans it may have for the operation of the cable system;
(2) The City Council or other designated authority shall hold a public hearing to determine the potential effect of the proposed transaction on the city and the cable subscribers and to address the qualifications of the transferee. If the city determines that the transferee is qualified and the transaction is otherwise in the public interest, it shall approve the proposed transfer; and
(3) Following the approval, the city and the transferee shall enter into an amendment to the franchise agreement pursuant to which the city formally approves the transfer and the transferee agrees to be bound by all terms and conditions of the franchise agreement.
(B) Prior approval shall not be required where the proposed transaction does not effect a substantial change in control of the franchisee. However, the city must be notified of the proposed transaction together with all pertinent details at least 30 days in advance of the date of consummation. Unless demonstrated to the contrary, it will be assumed that any change involving a transfer in ownership or control of more than 25% of the stock or other controlling interest in the franchisee will constitute a substantial change in control requiring prior city consent.
(Ord. 96-9, passed 2-26-1996)