§ 50-72. Transfer of ownership or control.

(a)

Transfer of franchise. A franchise, in whole or in part, shall not be assigned, transferred, leased, sold, or disposed of in any manner, nor shall title to the cable system, legal or equitable, pass to or vest in any other person without the prior written consent of the city.

(b)

Transfer of ownership. The grantee shall not sell, transfer, or dispose of 25 percent or more, at any one time, of the ownership or control of grantee, or 40 percent or more cumulatively over the term of the franchise of such interest to another person, or group of persons acting in concert, without first obtaining the written consent of the city. Grantee need not, however, obtain said consent from the city when the sale, transfer or disposition is to a person which is then under common control with the grantee; provided, that prior to such sale, disposition or transfer the grantee provides to the city verifiable information establishing that such other person has the financial, legal, and technical ability to fully perform all obligations of the franchise.

(c)

Transfer of control. No change, directly or indirectly, in the control of the grantee or of any person holding a controlling interest in grantee shall take place without the prior written consent of the city.

(d)

City approval. For the purpose of determining whether it shall consent to such transfer the city may inquire into the legal, financial, and technical qualifications of the prospective transferee or controlling party, as well as its ability to comply with the franchise and applicable city ordinances. The grantee shall provide the city with all reasonably required information, provided the city serves grantee with written notice of the required information within 60 days of receiving grantee's request for transfer on notice of change in control (unless a shorter time is established by federal law, in which case said shorter time shall apply). The city reserves the right to impose reasonable conditions on the transferee as a condition of the transfer to ensure that the transferee is able to meet existing ordinances. Every transfer of ownership or control shall make the franchise subject to cancellation unless and until the city issues its written consent.

(e)

No waiver of city property rights. The consent of the city to a transfer of the grantee shall not constitute a waiver or release of the rights of the city in and any property owned by the city or to public rights-of-way, and any transfer shall, by its terms, be expressly subordinate to the terms and conditions of this article and the franchise.

(f)

Signatory requirement. Any approval by the city of transfer of ownership or control shall be contingent upon the prospective party becoming a signatory to the franchise agreement.

(g)

Notification of sale. In the event the grantee places its system for public sale, grantee, or its designee, shall notify the city, at the same time it notifies other prospective purchasers, of that fact. The grantee shall also advise the city of the proposed terms and conditions of such a sale, to the extent they have been made public, so long as the city can commit to grantee that such information shall be kept as confidential as grantee requires other prospective purchasers.

(h)

Time frame for city review. The city shall act upon any transfer request within a reasonable time, but in no event more than allowed by federal law.

(i)

Grantee. For the purpose of subsection (c) immediately above (regarding transfers of control), "grantee" shall be deemed to include not only the name grantee but also its subsidiaries, parents or affiliated companies, associations or organizations as well as all persons having any title or interest in the system.

(Ord. No. 170, § XII, 4-5-99)