(A) No transfer of a franchise shall occur without prior approval of the City Commission. Notwithstanding any other provision of this subchapter, pledges in trust or mortgages of the assets of a cable system or OVS to secure construction, operation or repair of the system and the sale of a portion of the assets of the system that will not substantially affect the system's operations, may be made without application and without the city's prior consent; except that no such arrangement may be made if it would in any respect under any condition prevent the cable system or OVS operator or any successor from complying with the franchise and applicable law, nor may any such arrangement permit a third party to succeed to the interest of the franchisee, or to own or control the cable system or OVS without the prior consent of the city. Any mortgage, pledge or lease shall be subject and subordinate to the rights of the city under this subchapter or other applicable law.
(B) All applications for a transfer of a franchise shall be filed at least 120 calendar days prior to the effective date of the transfer, shall meet the requirements of this subchapter, and shall provide complete information on the proposed transaction, including details on the legal, financial, technical, and other qualifications of the transferee, and on the potential impact of the transfer on subscriber rates and services. Except in the case of a pro forma transfer, the application shall contain, at a minimum, the information required in § 112.09(E)(1) through (5), (8), (11), and (12) with respect to the proposed transferee. If the information to be provided in response to these items will not change as a result of the transfer, the transferee may so indicate in its response. The information required in § 112.09(E)(7), (9), and (10) shall also be provided whenever the proposed transferee expects material changes to occur in those areas. The following information must be included in the application, provided that a franchisee is not required to duplicate information that it submits to the city to comply with its obligations under federal or state law:
(1) All information and forms required under federal law, or the equivalent of the forms if no longer required by federal law;
(2) Any contracts or other documents that relate to the proposed transaction, and all documents, schedules, exhibits or the like referred to therein to the extent that the documentation is required by the FCC;
(3) Any shareholder reports or filings with the Securities and Exchange Commission that discuss the transaction;
(4) Other information deemed necessary by the city to provide a complete and accurate understanding of the financial position of the cable system or OVS before and after the proposed transfer;
(5) Complete information regarding any potential impact of the transfer on subscriber rates and service;
(6) A brief summary of the proposed transferee's plans for at least the next five years regarding line extension, plant and equipment upgrades, channel capacity, expansion or elimination of cable services, and any other changes affecting or enhancing the performance of the cable system or OVS.
(C) An application for approval of a pro forma transfer of a franchise shall be considered granted on the 91st calendar day following the filing of such application with the city unless, prior to that date, the city notifies the franchisee to the contrary. An application for approval of a pro forma transfer of a franchise shall clearly identify the application as such, describe the proposed transaction, and explain why the applicant believes the transfer is pro forma. Unless otherwise requested by the city within 30 calendar days of the filing of an application for a pro forma transfer, the applicant shall be required only to provide the information required in § 112.09(E)(1), (3)(a), (5)(b) and (12) with respect to the proposed transferee.
(D) In making a determination on whether to grant an application for a transfer, the City Commission shall consider the legal, financial, and technical qualifications of the transferee to operate the system; whether the incumbent franchisee is in substantial compliance with the material terms of its franchise agreement and this subchapter and, if not, the proposed transferee's commitment to cure the noncompliance; whether the transfer may reduce competition in cable services within the city; and whether operation by the transferee would adversely affect subscribers or the city, or otherwise be contrary to the public interest.
(E) No application for a transfer shall be granted unless the transferee agrees in writing that it will abide by and accept all terms of this subchapter and the franchise agreement, and that it will assume the obligations and liabilities, known and unknown, of the previous franchisee under this subchapter and the franchise agreement.
(F) Approval by the city of a transfer of a franchise does not constitute a waiver or release of any of the rights of the city under this subchapter or the franchise agreement, whether arising before or after the date of the transfer.
(G) The transferee shall notify the city that the transfer is complete within five business days of the date the transfer is complete.
(Ord. 1406, passed 5-15-02)