A. A transfer is any transaction in which (1) an ownership or other interest in a licensee, its cable system, or any person that is an operator of the cable system is transferred from one person or group of persons to another person or group of persons so that control of a licensee is transferred; or (2) the rights or obligations of a licensee under a license are transferred or assigned to another person or group of persons. Control for these purposes means working control, in whatever manner exercised. For example, the addition, deletion, or other change of any general partner of a licensee, any person who owns or controls a licensee, or a cable operator of a cable system would be a change of control.

B. No transfer may occur without prior approval of the City. The City will act upon any request for approval of a sale or transfer within 120 days of the request if the request contains or is accompanied by the information that is required by applicable FCC regulations and by this chapter.

C. An application for a transfer must provide complete information on the proposed transaction, including details on the legal, financial, technical, and other qualifications of the proposed transferee, and on the potential impact of the transfer on subscriber rates and service. At a minimum, the information required under applicable Federal law must be provided with respect to the proposed transfer. The City may require additional information related to its determination in subsection D of this section regarding the proposed transfer.

D. In deciding whether to grant, deny, or grant subject to conditions an application for a transfer of a license, the City will consider, as appropriate, the following: the legal, financial, including the purchase price of the cable system, technical and other qualifications of the proposed transferee to operate the cable system; whether the licensee is in compliance with its license and this chapter and, if not, the proposed transferee’s commitment to cure the noncompliance; whether operation by the proposed transferee affects competition in the delivery of cable service in the City including whether the proposed transferee owns or controls any other cable system in the City; and whether operation by the proposed transferee or approval of the transfer would affect subscribers, the City’s interest under this chapter, the license, or other applicable law, and whether the future cable related needs and interests of the community as provided in the license would be satisfied at a reasonable cost.

E. No application for a transfer of a license will be granted unless the proposed transferee agrees in writing that it will abide by and accept all terms of this chapter and the license, and that it will assume all obligations, liabilities, and responsibility for all acts and omissions, known and unknown, of the previous licensee under this chapter and the license for all purposes, including renewal.

F. Approval by the City of a transfer of a license does not constitute a waiver or release of any of the rights of the City under this chapter or the license, whether arising before or after the date of the transfer.

G. Notwithstanding the foregoing, prior consent will not be required for one transfer to any company which is owned or controlled or under common control and with the same direct parent as the licensee, and which is intended after the transfer to remain under the ownership or control of that parent or an entity under common control or with the same direct parent; provided, that no such transfer will be valid unless the licensee and the proposed transferee submit a statement describing the nature of the transfer, effect of the transfer on the direct and indirect ownership and control of the cable system, and a binding agreement and warranty to the City stating that:

H. Notwithstanding the foregoing, pledges in trust or mortgages of the assets of the system to secure the construction, operation or repair of the cable system may be made without the City’s prior consent; except that no such arrangement may be made which would in any respect prevent the licensee or any successor from complying with the license and this chapter and any other applicable laws and regulations, nor may any such arrangement permit a third party to succeed to the interest of licensee, or to own or control the cable system without the prior consent of the City.

I. A nonrebuttable presumption that transfer of control has occurred will arise upon the acquisition or accumulation by any person, or group of persons who did not previously hold a controlling interest, of more than 50 percent of the voting interest of the licensee or of the person exercising management authority over the licensee. A change in the general partner, managing partner or managing corporation is a change of control.

J. Subject to the exceptions in Section 617 of the Cable Act, no licensee may sell or otherwise transfer ownership in a cable system within a 36-month period following the licensee’s acquisition or initial construction of the system.

K. To the extent permitted by the Cable Act, the licensee is authorized to lease channels or provide leased access channels as provided in Section 612 of the Cable Act for commercial use by persons unaffiliated with the licensee. (Ord. No. G-6034, 2015)