[R.O. 2011 § 670.790; R.O. 2009
§ 111.130; Ord. No. 01-125, 6-20-2001]
A.
If a renewal or extension of the grantee's
franchise is denied or the franchise is lawfully terminated and the
City either lawfully acquires ownership of the cable system or by
its actions lawfully effects a transfer of ownership of the cable
system to another person, any such acquisition or transfer shall be
in accordance with and to the extent permitted by 47 U.S.C. § 547
as follows:
1.
Upon revocation of a franchise, such
valuation shall not include any sum attributable to the value of the
franchise itself and plant and property shall be valued according
to its book value at the time of revocation or the system's initial
cost less depreciation and salvage, whichever of the two (2) is lower.
2.
At the expiration of a franchise
agreement, such valuation shall be at fair market value, exclusive
of the value attributed to the franchise itself.
[R.O. 2011 § 670.800; R.O. 2009
§ 111.131; Ord. No. 01-125, 6-20-2001]
A.
No grantee shall sell, transfer, lease,
assign, sublet or dispose of, in whole or in part, an interest in
or control of a franchise or cable system or any of the rights or
privileges granted by a franchise agreement without the prior consent
of the grantor, which consent shall not be unreasonably denied or
delayed and may be denied only upon a good faith finding by the grantor
that the proposed transferee lacks the legal, technical or financial
qualifications to consummate the transaction and operate the system
so as to perform its obligations under this Chapter and the applicable
franchise agreement. This Section shall not apply to sales of property
or equipment in the normal course of business. Consent from the grantor
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 grantee.
B.
The following events shall be deemed to
be a sale, assignment or other transfer of an interest in or control
of a franchise or cable system requiring compliance with this Section:
1.
The sale, assignment or other transfer
of all or a majority of a grantee's assets;
2.
The sale, assignment or other transfer
of capital stock or partnership, membership or other equity interests
in a grantee by one (1) or more of its existing shareholders, partners,
members or other equity owners so as to create a new controlling interest
in a grantee;
3.
The issuance of additional capital
stock or partnership membership or other equity interest by a grantee
so as to create a new controlling interest in a grantee; and
4.
A grantee's agreement to transfer
management or operation of the grantee or the system to an unaffiliated
entity. The term "controlling interest," as used herein, means majority
equity ownership of a grantee.
C.
In the case of any sale or transfer of
ownership of an interest in or control of a 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 Chapter and the applicable
franchise agreement. 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 120-day period.
D.
Grantor reserves any rights it may have
to require that a transferee pay all costs and expenses incurred by
grantor in connection with the sale, assignment or transfer of a franchise,
including, but not limited, to the grantor's costs of reviewing the
qualifications of any proposed transferees. Such reimbursement shall
not be considered franchise fees; provided, however, that a grantee/transferee
may in its discretion pass through such costs to subscribers.
