(A) Transfer/sale/lease/assignment. Any franchise granted hereunder cannot in any event be sold, transferred, leased, assigned or disposed of, including but not limited to by force or voluntary sale, receivership or other means, without the prior consent of the county, and then under such reasonable conditions as the county may establish.
(B) Notice. The grantee shall promptly notify the county of any actual or proposed change in, transfer of, or acquisition by any other party of control by the grantee or of its franchise privileges, directly or indirectly, by sale, by gift or assignment to any person or entity not previously in control of the grantee or under common control with the grantee, voluntary sale, merger, consolidation or otherwise, except publicly traded issue, not in control of the grantee. The word "control" as used herein is not limited to major stockholders but includes actual working control in whatever manner exercised. A rebuttable presumption that a transfer of control has occurred shall arise upon the disposal by the grantee, directly or indirectly, by gift, assignment, voluntary sale, merger, consolidation or otherwise, of 5% or more at one time of the ownership or controlling interest in the system, or 20% cumulatively over the term of the franchise, of such interests to a corporation, partnership, limited partnership, trust or association, or person or group of persons acting in concert.
(C) Franchise subject to cancellation. Every change, transfer or acquisition of control for which notice is required under subsection (B) above by the grantee shall make the franchise subject to cancellation unless and until the county shall have consented thereto, which consent will not be unreasonably withheld.
(1) For the purpose of determining whether it shall consent to such change, transfer or acquisition of control, the county may inquire into the legal, financial, character, technical and other public interest qualifications of the prospective controlling party, and the grantee shall assist the county in any such inquiry.
(2) Consistent with applicable federal regulations, in connection with any request for approval, the grantee shall submit to the county all information reasonably requested by the county, and will otherwise comply with all federal regulations in connection with any proposed change, transfer or acquisition of control. Failure to do so may result in the county's denying the request pursuant to such regulations.
(D) Pledge of franchise. The county agrees that any financial institution having a pledge of the franchise or its assets for the advancement of money for the construction and/or operation of the franchise shall have the right to notify the county that it, or its designees satisfactory to the county, will take control and operate the cable television system.
(1) Further, said financial institution shall also submit a plan for such operation that will ensure continued service and compliance with all franchise obligations during the term the financial institution exercises control over the system.
(2) The financial institution shall not exercise control over the system for a period exceeding one year, unless extended by the county at its discretion, and during said period of time it shall have the right to petition for transfer of the franchise to another grantee.
(3) If the county finds that such transfer, after considering the legal, financial, character, technical and other public-interest qualifications of the applicant, is satisfactory, the county will transfer and assign the rights and obligations of such franchise as are in the public interest.
(4) The consent of the county to such transfer shall not be unreasonably withheld.
(E) County consent. The consent or approval of the county to any transfer of the grantee shall not constitute a waiver or release of the rights of the county or other governmental entity in and to the streets, and any transfer shall, by its terms, be expressly subordinate to the terms and conditions of this chapter and the franchise agreement.
(F) Non-approval. In the absence of extraordinary circumstances, the county will not approve any transfer or assignment of the franchise prior to completion or rebuild of construction of the proposed system.
(G) Controlling party signatory. Any approval by the county of transfer of ownership or control or rebuilds of the cable system shall be contingent upon the prospective controlling party becoming a signatory to the transfer amendment with the county.
(Ord. 3502, passed 10-7-02)