Title 13 - Streets and Sidewalks

13.50.190 Sale or Transfer of Cable Franchise.

1. A.
   A Cable Franchisee shall not sell, transfer, lease, assign, sublet, or dispose of, in whole or in part, an interest in or control of a Cable Franchise or Cable System without the prior consent of the City, which consent shall not be unreasonably denied or delayed and may be denied only upon a good faith finding by the City that the proposed transferee lacks the legal, technical, or financial qualifications to consummate the transaction and operate the Cable System so as to perform its obligations under the Cable Franchise.  This Section shall not apply to sales of property or equipment in the normal course of business.  Consent from the City shall not be required for a transfer in trust, mortgage, or other instrument of hypothecation, in whole or in part, to secure an indebtedness, or for a pro forma transfer to a corporation, partnership, or other entity controlling, controlled by, or under common control with a Cable Franchisee.
2. B.
   The following events shall be deemed to be a sale, assignment, or other transfer of an interest in or control of a Cable Franchise or Cable System requiring compliance with this section: (i) the sale, assignment, or other transfer of all or a majority of a Cable Franchisee’s Cable System assets in the City; (ii) the sale, assignment, or other transfer of capital stock or partnership, membership, or other equity interests in a Cable Franchisee by one or more of its existing shareholders, partners, members, or other equity owners so as to create a new controlling interest in Cable Franchisee; (iii) the issuance of additional capital stock or partnership membership or other equity interest by a Cable Franchisee so as to create a new controlling interest in a Cable Franchisee; and (iv) a Cable Franchisee’s agreement to transfer management or operation of the Cable Franchisee or the System to an unaffiliated entity so as to create a new controlling interest in the Cable Franchisee. The term “controlling interest” as used herein means majority equity ownership of a Cable Franchisee.
3. C.
   A transfer solely for security purposes such as the grant of a mortgage or security interest, including the pledge or grant of a mortgage or security interest to lenders of a Cable Franchisee’s assets, including, but not limited to, the Cable Franchise, such as in a transaction commonly known as an “initial public offering” shall not be deemed to be a sale, assignment or other transfer of an interest in or control of a Cable Franchise or Cable System and thus shall not require compliance with this section.
4. D.
   In the case of any sale or transfer of ownership of an interest in or control of a Cable Franchise or Cable System, the City shall have one hundred twenty (120) days to act upon any request for approval of such sale or transfer that contains or is accompanied by such information as is required in accordance with FCC Regulations and the requirements of this Code.  If the City fails to render a final decision on the request within one hundred twenty (120) days after receipt by the City of all required information, such request shall be deemed granted unless the requesting party and the City agree to an extension of the one hundred twenty (120) day period.
5. E.
   The City reserves any legal right it has under applicable law to require a Cable Franchisee to pay all costs and expenses incurred by the City in connection with the sale, assignment, or transfer of a Cable Franchise, including, but not limited to, the City’s costs of reviewing the qualifications of any proposed transferees.

(History: Ord. CaSC-2293 §1, 2001)

Effective on: 1/1/1901