(A) The franchise shall be nonexclusive, shall be for a term as specified in the franchise not to exceed 20 years.
(B) Conditions:
(1) Except as herein provided, no transfer of control of the CATV system shall take place, whether by forced or voluntary sale, lease, mortgage, assignment, encumbrance or other form of disposition, without prior notice to and approval by the Mayor and Council which shall not be unreasonably refused. The notice shall include full identifying particulars of the proposed transaction, and the 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 Mayor and Council to any assignment, lease, transfer, sublease or mortgage of the grantee shall not constitute a waiver or release of the rights of the town in and to the streets.
(3) For the purpose of this section, the term
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 of any person, or group of persons, of 10% of the voting shares of any corporate grantee.
(5) In the absence of extraordinary circumstances, the Mayor and Council will not approve any transfer or assignment of the grantee before completion of initial construction of the energized cable.
(6) Notwithstanding anything in this section 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 town; and
(b) Any new grantee filing with town its written acceptance of this chapter, the franchise and all the conditions thereto. This acceptance shall be filed within 60 days following the date of the change.
(C) The Mayor and 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 under this chapter;
(2) The grantee made a material, false statement in the application for the franchise, knowing it to be false; or
(3) The grantee, contrary to the best interest of public convenience and welfare, is not providing subscribers with regular, adequate and proper service.
(D) If the use of any tangible part of the CATV system is discontinued for any reason for a continuous period of 365 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 Town Administrator may permit to be abandoned in place, and as directed by the Town Administrator shall either restore the street or pay the town 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.
(1995 Code, § 16-5)