§ 26-13. Transfer of a franchise.

(a)

Except in the case of a pro forma transfer for which notice but no consent of the county shall be required, no transfer of a franchise shall occur without prior approval of the board of county commissioners which shall not be unreasonably withheld. Notwithstanding any other provision of this chapter, pledges in trust or mortgages of the assets of a cable system or OVS to secure construction, operation or repair of the system and the sale of a portion of the assets of the system that will not substantially affect the system's operations may be made without application and without the county's prior consent; except that no such arrangement may be made if it would in any respect under any condition prevent the cable system or OVS operator or any successor from complying with the franchise or license and applicable law, nor may any such arrangement permit a third party to succeed to the interest of the franchisee, or to own or control the cable system or OVS without the prior consent of the county. Any mortgage, pledge or lease shall be subject and subordinate to the rights of the county under this chapter or other applicable law.

(b)

All applications for a transfer of a franchise shall be filed at least 120 calendar days prior to the effective date of the transfer, shall meet the requirements of this chapter, and shall provide complete information on the proposed transaction, including details on the legal, financial, technical, and other qualifications of the transferee, and on the potential impact of the transfer on subscriber rates and services. Except in the case of a pro forma transfer, the application shall contain, at a minimum, the information required in sections 26-9(e)(1)—(5), (8), (10), (11) with respect to the proposed transferee. If the information to be provided in response to these items will not change as a result of the transfer, the transferee may so indicate in its response. The information required in sections 26-9(e)(7), (9), (10) shall also be provided whenever the proposed transferee expects material changes to occur in those areas as provided in federal regulations. The following information must be included in the application, provided that a franchisee is not required to duplicate information that it submits to the county to comply with its obligations under federal or state law:

(1)

All information and forms required under federal law;

(2)

Upon request, any contracts or other documents that relate to the proposed transaction, and all documents, schedules, exhibits, or the like referred to therein to the extent that such documentation is required by the FCC or is to be provided to local franchising authorities by the FCC;

(3)

Any shareholder reports or filings with the Securities and Exchange Commission that discuss the transaction;

(4)

Other information deemed necessary by the county to provide a complete and accurate understanding of the financial position of the transferee;

(5)

Complete information regarding any potential impact of the transfer on subscriber regulated rates and service;

(6)

If requested, a brief summary of the proposed transferee's plans for at least the next two years regarding line extension, plant and equipment upgrades, channel capacity, expansion or elimination of cable services, and any other changes affecting or enhancing the performance of the cable system or OVS. If the transferee deems information to be provided pursuant to this section to be proprietary, the transferee may make the information available for the county's review, but will not be required to provide copies of the information to the county unless the county can maintain such information as confidential.

(c)

In making a determination on whether to grant an application for a transfer, the board of county commissioners shall consider the legal, financial, and technical qualifications of the transferee to operate the system; whether the incumbent franchisee is in substantial compliance with the material terms of its franchise agreement and this chapter and, if not, the proposed transferee's commitment to cure such noncompliance; whether the transferee has agreed to comply with the franchise; and, to the extent allowed in the cable act, whether the transfer may reduce competition in cable services within the county; and whether operation by the transferee would adversely affect subscribers or the county, or otherwise be contrary to the public interest.

(d)

No application for a transfer shall be granted unless the transferee agrees in writing that it will abide by and accept all terms of this chapter and the franchise agreement, and that it will assume the obligations and liabilities, known and unknown, of the previous franchisee under this chapter and the franchise agreement.

(e)

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

(f)

The transferee shall notify the county that the transfer is complete within five business days of the date the transfer is complete.

(Ord. No. 02-18, § 2, 7-30-02)