§ 5.16.380. Transfers.

A.

No transfer of a franchise, franchisee, or cable communications system, or of control over the same (including, but not limited to, transfer by forced or voluntary sale, merger, consolidation, receivership, or any other means) shall occur unless prior application is made by the franchisee to the city and the city's prior written consent is obtained, pursuant to this chapter and the franchise ordinance. Every franchise shall be deemed to be held in trust, and to be personal to the franchisee. Any transfer that is made without the prior approval of the city shall be deemed to impair that trust. The granting of approval for a transfer in one instance shall not render unnecessary approval of any subsequent transfer.

B.

A transfer of control of a franchise, franchisee, or cable communications system will be deemed to have occurred whenever there is a change, acquisition or transfer of control of fifty (50) percent or more of the ownership in the franchisee or its direct or indirect parents by any person, or a group of persons acting in concert, or whenever there is a change in actual working control, in whatever manner exercised, over the affairs of a franchisee or its direct or indirect parents, regardless of the percentage of ownership change. Without limiting the above, any change in the general partners of a franchisee will be presumed a change in control.

C.

Notwithstanding any other provision of this chapter, pledges in trust or mortgages of the assets of a cable communications system to secure the construction, operation, or repair of the system may be made without application and without the city's prior consent. However, no such arrangement may be made if it would in any respect under any condition: (1) prevent the cable communications system operator or any successor from complying with, this chapter, the franchise ordinance or other applicable law or regulation; or (2) permit a third party to succeed to the interest of the operator, or to own or control the system, without the prior consent of the city. Any mortgage, pledge or lease shall be subject to and subordinate to the rights of the city under any franchise, this chapter, or other applicable law.

(Ord. 12729 § 1 (part), 2006)