A. A franchise issued pursuant to this chapter and any cable communication system operated pursuant thereto shall not be sold, assigned, transferred, leased, or disposed of, either in whole or in part, either by involuntary sale or by voluntary sale, merger, consolidation, or otherwise hypothecated in any manner, nor shall title thereto, either legal or equitable, control thereof, or any right, interest, or property therein pass to or vest in any person or entity, nor shall the controlling interest in any corporation holding a franchise hereunder be changed in a manner reasonably anticipated to diminish substantially grantee’s ability or likelihood of performing its obligations under the franchise, without the prior consent of the council, such consent not to be unreasonably withheld, or only under such conditions as may be required by the council; provided, however, such transfer of control shall not include transfer to a parent, subsidiary, or affiliate of a grantee, except when such transfer is intended to avoid application of this section. Every type of sale, assignment change, transfer, or acquisition of control of a franchise issued pursuant to this chapter and any cable communication system operated pursuant thereto shall make a franchise subject to cancellation unless and until the city shall have consented. Such consent shall not be unreasonably withheld.

B. A grantee shall promptly notify the city of any proposed sale, assignment, transfer or lease or any merger, consolidation, or change in control. A formal application for approval of a proposed sale, assignment, transfer or lease or any merger, consolidation, or change in control shall be filed within 30 days of such notification. The application shall include, among other things, a copy of any and all documents relating to the transaction, and any filings by any party to the transaction at any state or federal agency including, but not limited to, the FCC, the Department of Justice, the Federal Trade Commission, and the Securities and Exchange Commission. An original of the text of the application shall be filed with the city.

C. The provisions of this chapter governing applications for new franchises shall apply to any proposed sale, assignment, transfer or lease or any merger, consolidation, or change in control. For the purpose of determining whether it shall consent to such sale, assignment, transfer, lease or change of control, the city may inquire into all qualifications of the prospective controlling party, and a grantee shall assist the city in any such inquiry. The city may require any reasonable conditions which it deems necessary at the time of review to ensure that the proposed cable system purchase will satisfy the public interest of the city and its citizens for the balance of the term of the franchise, including the commitment from the prospective controlling party to assume responsibility for any past violation or failure to comply with any of the provisions of this title or any franchise issued pursuant thereto and the duty and obligation to cure the same.

D. The city shall act within 120 days of receipt of a completed application. The proposed purchaser, transferee, or assignee or any person or entity assuming controlling interest in a change of control must show that it has the financial, legal and technical ability as determined by the city to provide the services, facilities, and equipment as set forth in this chapter or any franchise issued pursuant thereto and must agree to comply with all provisions of any franchise, including any provisions which the city may amend or add prior to approval of the transfer.

E. Nothing in this provision shall preclude a grantee from pledging, mortgaging, or hypothecating its interests to a recognized financial institution to secure borrowed funds. Said institution may foreclose on, hold, sell, assign or transfer such interests, but only to the extent that the mortgagee, pledgee, assignee, or transferee undertakes to assume, and has the ability to perform, all of grantee’s obligations under the franchise agreement and this chapter; and provided further, that said mortgage, pledge, sale or assignment shall not relieve grantee of any obligations under the franchise agreement or this chapter. (Ord. 5531 § 2, 2004.)