6.22.660 Assignment or Transfer of Franchise.
(1) An MCS provider’s franchise may not be assigned or transferred in whole, or in part, by the affected MCS provider, without the prior express written approval by the Council/franchising authority. Upon any change of control of an MCS provider, the MCS provider must complete and file with the Council/franchising authority the FCC form 394 “Application for Franchise Authority Consent to Assignment or Transfer of Control of Cable Television Franchise.”
(2) Any attempted assignment or transfer without such prior written consent shall constitute a default of such franchise.
(3) In the event of such a default, the Council/franchising authority shall proceed according to the procedure set forth in this Chapter, and any applicable federal and/or State law.
(4) In accordance with applicable law, at least one hundred twenty (120) days before a proposed assignment or transfer of an MCS provider’s franchise is scheduled to become effective, such franchised MCS provider shall petition in writing for the Council/franchising authority’s written consent for such a proposed assignment or transfer. Within thirty (30) days of receiving the request for assignment or transfer, the Council/franchising authority shall, in accordance with applicable law, notify the MCS provider in writing of any additional information it requires.
(5) The Council/franchising authority will not unreasonably withhold its consent to such an assignment or transfer. However, in making such a determination, the Council/ franchising authority may consider the following:
(a) experience of proposed assignee or transferee (including conducting an investigation of proposed assignee or transferee’s service record in other communities);
(b) qualifications of proposed assignee or transferee;
(c) legal integrity of proposed assignee or transferee;
(d) financial ability and stability of the proposed assignee or transferee;
(e) if requested by the Council/franchising authority, submittals from the proposed assignee or transferee, on what, if any, changes it intends to make in the operation and maintenance of the present multi-channel system;
(f) the corporate connection, if any, between the franchised MCS provider, and proposed assignee or transferee;
(g) the economic viability or non-viability of the multi-channel system in the future, based upon certain factors including the impact of the purchase price on the City and/or the proposed assignee or transferee; and
(h) any other aspect of the proposed assignee’s or transferee’s background which could affect the health, safety, and welfare of the citizenry of City as it relates to the operation of the multi-channel system with respect to the legal, technical and financial qualifications of the new cable provider;
(6) A copy of the completed sales agreement, or a functionally equivalent instrument, between the franchised MCS provider and proposed assignee or transferee shall be provided to the Council/franchising authority, so that the Council/franchising authority may discover the assumption of obligations by the franchised MCS provider and proposed assignee or transferee with respect to the multi-channel system. In lieu of the sales agreement, the Council/ franchising authority may accept an attested summary of obligations assumed by the above referenced parties.
(7) Before an assignment or transfer is approved by the Council/franchising authority, the proposed assignee or transferee shall execute an affidavit, acknowledging that it has read, understood, and intends to abide by both this chapter, and the applicable franchise agreement.
(8) In the event of any approved assignment or transfer, the assignee or transferee shall assume all obligations and liabilities of the former franchised MCS provider, except as noted in Subsection (9) of this Section.
(9) An assignment or transfer shall not relieve the former franchised MCS provider of its liabilities under the franchise agreement until the assignment actually takes place, or unless specifically relieved by Federal, or State law, or unless specifically relieved by the Council/ franchising authority at the time an assignment or transfer is approved.
(10) If the Council/franchising authority has not taken action on the MCS provider’s request for assignment or transfer within one hundred twenty (120) days after receiving the request, consent shall be deemed given by the Council/franchising authority.