(A) Exclusivity. Franchises granted under this chapter are not exclusive. The city reserves the right to grant other franchises to other persons at any time.
(B) Effective period. Each franchise shall take effect and be in force as provided in this chapter for 15 years from the effective date as provided in § 116.041(F), subject, however, to the right of the city to terminate the franchise as provided in this chapter.
(C) Noninterference with use of streets. The right and privilege granted by a franchise shall be exercised so as not to interfere with the use of the streets by the city and such others as may be designated by the city to use such streets. The city may demand the removal of cables or equipment that have been constructed by the grantee when the city believes that the same is interfering with the use of the streets.
(D) Transfers.
(1) No franchise shall be sold, transferred, leased, assigned or disposed of, whether by way of sale, merger, consolidation or otherwise, without, in each case, the prior written consent of the city, and then only after the distribution facilities have been substantially completed and under such conditions as the city may establish. The consent shall not be unreasonably withheld.
(2) Notwithstanding the provisions of division (D)(1) of this section, a franchise may be mortgaged, pledged or assigned as security for the financing of the related BTN. The mortgage, pledge or assignment may be made without the consent of the city, but any such mortgage, pledge or assignment shall be subject to the terms and conditions of the franchise and the related franchise agreement and to the rights of the city under this chapter.
(3) Reference is made to division (I)(1) of this section for the effect of changes in ownership or control of the grantee and to division (I)(2) of this section for rules covering control of a network by a financial institution.
(4) Reference is made to § 116.057 for transfers in connection with insolvency proceedings.
(E) Territory.
(1) Each franchise shall relate to the territorial limits of the city and to any area henceforth added thereto during the term of the franchise. Subject to § 116.046, the grantee shall be required to extend the network to and to offer the services of the network to potential subscribers within the franchise territory where there are at least a total of 40 residential dwelling units and/or occupied commercial or industrial structures per line mile.
(2) Where the density of residential dwellings and occupied commercial or industrial structures, adverse terrain or other factors render extension of the system and offer of services impractical or technically infeasible, or create an economic hardship, the city may, upon petition of the grantee, either waive the extension of the network into such areas or allow the extension and offer of services on such special terms, conditions and provisions as are reasonable and fair to the city, the grantee and potential subscribers in the areas.
(F) Specification of privileges and exemptions. No privilege or exemption shall be granted or conferred by any franchise granted except those specifically prescribed in this chapter.
(G) Obligations of grantee to obtain other permits. A franchise shall not relieve the grantee of any obligations involved in obtaining pole or conduit space from any department of the city, a utility company or others maintaining utilities in streets.
(H) Obligation of successors and assignees. A franchise shall be binding upon the grantee and all successors, lessees or assignees as may be approved by the city.
(I) Transactions affecting ownership or control.
(1) (a) Express approval of Council, which shall not be unreasonably withheld, shall be required where ownership or control of more than 10% of the right of control of or interest in the franchise or the grantee is acquired by a person or group of persons acting in concert, none of whom already owns or controls 10% or more of the right of control or interest, singularly or collectively. Transfer from a subsidiary to a parent corporation or vice versa shall not be considered change of control.
(b) At the time a franchise is granted, and annually thereafter, the grantee shall file with the city a current list of its owners, partners (both general and limited), officers and directors, together with a list of shareholders having 5% or more of its stock if the grantee is a corporation.
(2) Any financial institution having a pledge of or other form of security interest in a franchise, or in the assets of a grantee, for the advancement of money for the construction and/or operation of the BTN, shall notify the city whenever it or its designee satisfactory to the city takes control and operates the network. However, the financial institution shall also submit a plan for the operation that will ensure continued service and compliance with all franchise obligations during the term the financial institution exercises control over the network. The financial institution shall not exercise control over the network for a period exceeding one year, unless extended by Council, at its discretion, and during the time it shall have the right to petition the city to transfer the franchise to another grantee. If the city finds that any transfer, after considering the legal, financial, character, technical and other public interest qualities of the applicant, is satisfactory, the city may transfer and assign the rights and obligations of the franchise consistent with the public interest. The consent of the city to the transfer shall not be unreasonably withheld.
(3) As used in this section, “grantee” does not include any affiliate of the grantee.
(2000 Code, § 5.12.190) Penalty, see § 116.999