Sec. 5-15. Franchise renewal and transfer.
(a) Negotiated Renewal.
(1) As an alternative to the formal renewal procedures set forth in the Cable Act, the Grantee may submit to the Grantor a proposal for extension or renewal of the franchise at any time before the expiration of the franchise.
(2) The Grantor and the Grantee at any time may elect to negotiate a proposed franchise renewal agreement.
(3) The provisions of this Section shall constitute the informal renewal proceedings described in the Cable Communications Policy Act of 1984.
(b) Transfer of Ownership or Control.
(1) In this Section, the following words have the meanings indicated:
Control means actual working control in whatever manner exercised. Control includes, but may not necessarily require, majority stock ownership.
Proposed transferee means a proposed purchaser, transferee, lessee, assignee or person acquiring ownership or control of the franchise or the Grantee.
(2) The Grantee shall not sell, transfer, lease, assign, sublet or dispose of, in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, the franchise or any of the rights or privileges therein granted, without the prior written consent of the Grantor, except that such consent shall not be required for an intracorporate transfer from one (1) wholly-owned subsidiary to another wholly-owned subsidiary of the parent corporation. The consent required by the Grantor shall be given or denied no later than one hundred and twenty (120) days following any request, and may not be unreasonably withheld, but may be conditioned upon the performance of those requirements necessary to ensure compliance with the franchise.
(3) The requirements of Subparagraph (2) above shall also apply to any change in control of the Grantee. A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or accumulation by any person or group of persons of thirty percent (30%) or more of the voting shares of the Grantee. The consent required shall be deemed granted by the Grantor if the Grantor has not consented or denied consent within one hundred and twenty (120) days following a request, and the Grantor’s consent may not be unreasonably withheld. For the purpose of determining whether it should consent to transfer of control, the Grantor may inquire into the qualifications of the proposed transferee, and the Grantee shall assist the Grantor in the inquiry.
(4) In seeking the Grantor’s consent to any change in ownership or control, the proposed transferee shall indicate whether it:
a. Has ever been convicted or held liable for acts involving deceit including any violation of federal, state or local law or regulations, or is currently under an indictment, investigation or complaint charging such acts; and
b. Has ever had a judgment in an action for fraud, deceit or misrepresentation entered against the proposed transferee by any court of competent jurisdiction; and
c. Has pending any material legal claim, lawsuit or administrative proceeding arising out of or involving a cable system, except that any such claims, suits or proceedings relating to insurance claims, theft of service or employment matters need not be disclosed; and
d. Is financially solvent, by submitting the financial data, including financial statements that are audited by a certified public accountant, who may also be an officer of the parent corporations, along with any other data that the Grantor may reasonably require; and
e. Has the legal, financial and technical capability to enable it to maintain and operate the cable system for the remaining term of the franchise; and
(5) The consent or approval of the Grantor to any transfer by the Grantee does not constitute a waiver or release of the rights of the Grantor in or to its public rights-of-way or easements, and any transfer shall by its own terms be expressly subject to the terms and conditions of this franchise.
(6) A sale, transfer or assignment of the franchise may not be approved without the successor in interest becoming a signatory to this franchise.
(7) Notwithstanding anything contained in this franchise, the Grantee may pledge the assets of the cable system for the purpose of financing; provided that such pledge of assets shall not impair or mitigate the Grantee’s responsibility and capability to meet all its obligations under the provisions of this franchise. (Ord. 731 §1, 2004)