(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, ASSIGNED or ASSIGNMENT shall mean the transfer, sale, or any other form of assignment of a cable system, to include any transaction or action which effectively or actually changes ownership from 1 person or entity to another to include the transfer of 50% or more of the ownership interest of an entity or the parent of an entity. Any attempted assignment without prior written approval shall constitute a default in the franchise. A proposed assignment shall be subject to the following:
(1) At least 120 days before a proposed assignment is scheduled to become effective, the cable 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 shall consider the legal, financial and technical qualifications of the proposed assignee.
(3) Nothing in this section shall restrict the city from considering criteria established under state or federal law, rule or regulation.
(4) Before an assignment is approved by the city, the proposed assignee shall sign a statement indicating that it has read, understands, and intends to abide by any existing franchise agreement.
(5) The city may include certain amendment(s) to the franchise or this chapter as a condition to the assignment; provided, however, any such amendment(s) shall either (i) be by mutual agreement between the city and the proposed assignee, or (ii) shall not have a material adverse effect on the rights and obligations of the cable operator under the franchise.
(6) In the event of any approved assignment, the assignee shall assume all obligations and liabilities of the former cable operator.
(7) The city's consent to an assignment shall not relieve the former cable operator of its liability under the franchise agreement until the assignment actually takes place unless specifically relieved by federal or state law or by the Council at the time an assignment is approved. In the event of an assignment, the former cable operator shall remain liable for any franchise fees incurred as of the time that the assignment is effective for the period governed by the applicable statute of limitations.
(8) If the cable operator has provided the city with all information as required by this section or the FCC in a timely manner, and the city has not taken action on the cable operator's request for transfer within 120 days after receiving such request, consent by the city shall be deemed given.
(B) Consent shall not be required for an assignment to a wholly-owned subsidiary entity of a cable operator or the current parent entity of a cable operator, whether the ownership is direct or indirect, such as through other wholly-owned intermediate subsidiaries. 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 cable 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.
(Ord. 4016, § 1, 12-17-2019)