20.02.290 Assignments or transfers of franchises, cable franchises or leases.
The assignment or transfer of any business license, franchise or lease subject to this title may not, directly or indirectly, be transferred, assigned or disposed of by sale, lease, merger, consolidation or other act of the franchisee or lessee, by operation of law or otherwise, without the prior written consent of the city, which consent shall not be unreasonably withheld or delayed, except as expressed by ordinance and then only on such reasonable conditions as may be prescribed therein.
A. No franchise or lease, subject to this title, shall be assigned or transferred before construction of such systems has been completed to the city’s satisfaction without prior written consent of the city, which consent shall not be unreasonably withheld or delayed, except as expressed by ordinance and then only on such reasonable conditions as may be prescribed therein.
B. The franchisee or lessee and the proposed assignee or transferee of the franchise or lease shall provide and certify the following information to the city not less than 90 calendar days prior to the proposed date of transfer:
1. Complete information setting forth the nature, terms and conditions of the proposed transfer or assignment relating to the franchise or lease;
2. All information required by a franchise or lease applicant pursuant to this title with respect to the proposed transferee or assignee;
3. Any other information reasonably required by the city; and
4. A nonrefundable application fee in the amount established in the city’s fee schedule.
C. No transfer shall be approved unless the assignee or transferee meets the requirements contained in this title and can comply with the requirements of the franchise or lease.
D. Unless otherwise provided in a franchise or lease agreement, the franchisee or lessee shall reimburse the city for all direct and indirect costs and expenses reasonably incurred by the city in considering a request to transfer or assign a franchise or lease. No approval shall be deemed approved until all such costs and expenses have been paid.
E. Any transfer or assignment of a franchise or lease without prior written approval of the city under this section or pursuant to a franchise or lease agreement shall be void and is cause for termination of the franchise or lease.
F. Notwithstanding anything contained herein to the contrary, transfer of cable franchises shall additionally be governed by applicable provisions of federal law, and issues involving transfers may be addressed in a cable franchise.
G. Any transactions which singularly or collectively result in a change of 50 percent or more of the ownership or working control of any franchisee or lessee of the ownership or working control of a utility, cable, or telecommunications system, of the ownership or working control of affiliated entities having ownership or working control of the franchisee or lessee or of a utility, cable, or telecommunications system, or of control of the capacity or bandwidth of the franchisee’s or lessee’s utility, cable, or telecommunications system, facilities or substantial parts thereof, shall be considered an assignment or transfer requiring city approval pursuant to this provision. Transactions between affiliated entities are not exempt from the required city approval. A franchisee or lessee shall promptly notify the city in writing prior to any proposed change in, or transfer of, or acquisition by any other party of control of a franchisee’s or lessee’s company. Every change, transfer, or acquisition of control of a franchisee’s or lessee’s company shall cause a review of the proposed transfer. In the event that the city council adopts a resolution, ordinance, or other appropriate order opposing such change, transfer or acquisition of control that has been completed without prior city approval pursuant to this provision, the city may terminate the franchise or lease. City approval shall not be required for mortgaging purposes or if said transfer is from a franchisee or lessee to another person or entity controlling, controlled by, or under common control with a franchisee or lessee. (Ord. 6798 § 3 (Exh. C), 2020.)