Skip to code content (skip section selection)
(a) The licensee or franchisee shall not sell, transfer, assign, exchange or release, or permit the sale, transfer, assignment, exchange or release of more than three (3) percent of the ownership of the system or rights in the license or franchise agreement to a person (hereinafter "proposed transferee"), without the prior written authorization of the mayor and council. For purposes of this section, a merger or consolidation shall be deemed a transfer or assignment.
A secured debt financing arrangement in which the lender assumes the ownership position of the licensee, but not the operation of the licensee's system, shall not be deemed a transfer or assignment pursuant to this section. However, no such lender may subsequently take over operation of the system without the prior written authorization of the city obtained pursuant to this section.
(1) In seeking prior written authorization, the licensee or franchisee shall have the obligation:
a. To inform the city as to whether the proposed transferee, which, in the case of a corporation, shall include all officers, directors, employees and all persons having a legal or equitable interest of five (5) percent or more of its voting stock, or any of the proposed transferee's principals:
1. Has ever been convicted of a crime relating to fitness, trustworthiness or competence including any felony, or any misdemeanor involving moral turpitude, including, but not limited to, criminal fraud or deceit, or is presently under an indictment charging such a crime;
2. Has ever had a judgment in an action for fraud, deceit or misrepresentation entered against it, her, him or them by any court of competent jurisdiction; or
3. Has pending any legal claim or lawsuit arising out of or involving a fiber optics or cable communications system.
b. To establish to the satisfaction of the city the financial solvency of the proposed transferee by submitting all current financial information of the proposed transferee which the licensee or franchisee was required to submit in its proposal for the license or franchise agreement, and such other financial data as the city may request.
c. To establish to the satisfaction of the city that the proposed transferee has the experience and ability to fully comply with all provisions of this chapter and the license or franchise agreement and to effectively operate and maintain the system.
(2) The mayor and council specifically reserve the right to deny, restrict or condition authorization to transfer upon the criteria stated in this section and any other criteria the mayor and council determine to be necessary in the public interest.
(b) Any proposed transferee shall execute an agreement, in such form acceptable to the city attorney, that it will assume and be bound by all of the provisions, terms and conditions of this chapter, the license or franchise agreement, and any other conditions the mayor and council may have required in granting authorization.
(c) The occurrence of an unauthorized transfer or assignment may, at the option of the city, provide the mayor and council with cause to immediately terminate the license or franchise agreement and accelerate all of the obligations and rights as provided in section 7B-18 ("Renewal and Termination").
(d) From and after any occurrence constituting an unauthorized transfer or assignment, the licensee or franchisee shall not make, execute or enter into any deed, deed of trust, mortgage, contract, conditional sales contract or any loan, lease, pledge, security agreement, sale, pole agreement or any other agreement or hypothecation concerning any system facilities or property, whether real or personal, without the written approval of the mayor and council.
(e) Nothing in this section shall be deemed to prohibit the use of the licensee's property as collateral for security in regard to construction financing. However, any such financing arrangements shall be subject to all provisions of this chapter and the license or franchise agreement.
(f) No person at any time shall directly or indirectly hold more than one license or more than one franchise under this chapter. Any person holding two or more such instruments of authorization shall promptly surrender all but one such instrument to the department of information services or the city may declare any or all of them forfeited.
(Ord. No. 8522, § 1, 6-12-95; Ord. No. 8545, § 7, 7-10-95)