Sacramento Municipal Code Art. XVIII Transfer and Termination

Except as otherwise expressly provided in this chapter, no part or element of a cable television system or any other real or personal property which is a part of said cable television system shall be sold, transferred, assigned, mortgaged, pledged, leased, sublet or otherwise encumbered for any purpose whatsoever, nor shall title thereto, either legal or equitable, or any right or interest therein pass to or vest in any party without the prior written consent of the cable television commission. Such consent of the commission shall not be unreasonably withheld.

A license issued pursuant to the provisions of this chapter shall not, either in whole or in part, be sold, transferred, assigned, mortgaged, pledged, leased, sublet, or otherwise encumbered for any purpose whatsoever; not shall title thereto, either legal or equitable, or any right or interest therein, pass to or vest in any party, nor shall there be any transfer or change of control of the license without the prior written consent of the cable television commission. Such consent of the commission shall not be unreasonably withheld.

Any such sale, transfer, assignment, mortgage, pledge, lease, sublease or other encumbrance of whatever kind or nature made in violation of the provisions of this section shall be void.

As used in this section, "transfer or change of control" shall mean the acquisition of sufficient dominance to determine the operational and financial policies of the licensee, including, but not limited to, the disposition of its assets. The word "control" as used in this section is not limited to major stockholders or financial interests, but also includes actual working control in whatever manner exercised, and includes, but is not limited to, (i) the acquisition of accumulation by any party or association of parties of ten percent (10%) or more of the voting shares or stock of the licensee or named owner of the licensee; (ii) a change in general partners of a licensee or named owner of the licensee; or (iii) a merger or consolidation of the licensee or named owner or the licensee. (Ord. 2002-028 § 6; prior code § 20.18.1700)

Violation of the provisions of Section 5.28.2430 of this chapter, shall constitute a misdemeanor. With the foregoing exception, violation of the provisions of this chapter shall not constitute a misdemeanor, infraction or other crime. (Prior code § 20.18.1702)

The following material breaches of the obligation of a licensee under the license shall constitute grounds for termination of a license by the cable television commission:

A. Any violation of Section 5.28.2570 of this chapter;

B. The failure to make any disclosure of fact within the application for the license which is required by this chapter, or the misrepresentation of such a fact in the application;

C. The willful failure to make any payments required by Section 5.28.2470 of this chapter; or

D. Any other act or omission by the licensee which materially violates the terms, conditions or requirements of this chapter or any order, directive, rule or regulation issued thereunder and which is not corrected or remedied within thirty (30) calendar days following mailing to the licensee of written notice of the violation. (Prior code § 20.18.1704)

The board of directors of the cable television commission shall not determine that a license shall be terminated upon grounds identified by Section 5.28.2590 of this chapter, until a hearing has been conducted upon the matter. Written notice of the time, date and place of the hearing shall be mailed to the licensee and the licensee's surety on the performance bond filed pursuant to Section 5.28.2520 of this chapter or pursuant to Section 5.28.2530 of this chapter, not later than thirty (30) calendar days in advance of the date of commencement of the hearing. The notice shall state the reasons for the hearing, describe the basis for termination, and identify the terms, conditions or requirements with respect to which the breach has occurred.

The hearing may be conducted either by the board of directors of the commission or, at the sole discretion of the board, by a hearing officer appointed by the board to conduct the hearing. Any such hearing officer shall be an attorney licensed to practice under the laws of the state of California.

The cost of providing quarters for the hearing, the compensation for the hearing officer, if any, and the per diem cost of any reporter retained to record the proceedings shall be borne by the cable television commission. The costs incurred by the parties for attorneys fees, expert witness fees and other expenses shall be borne solely by the party incurring the costs. (Prior code § 20.18.1706)

All witnesses testifying at the hearing concerning termination shall be sworn. Witnesses shall be subject to direct and cross-examination. However, formal rules of evidence applicable to the trial of civil or criminal proceedings in the trial courts of this state shall not be applicable to the hearing. The provisions of the administrative procedure act, commencing at Section 11500 of the California Government Code or any successor legislative enactment, shall not be applicable to any such hearing. The hearing may be continued from time to time.

If the hearing is conducted by a hearing officer, the officer shall, upon conclusion of the hearing, prepare a recommended decision which includes findings of fact and conclusions. The recommended decision shall be filed with the clerk of the board of directors of the commission and mailed to the parties not later than thirty (30) calendar days after conclusion of the hearing. Upon receipt of such a recommended decision, the board of directors may, without a hearing except as otherwise required below, either:

A. Adopt the recommended decision, including findings of fact and conclusions submitted by the hearing officer;

B. Adopt the findings of fact and conclusions contained in the recommended decision, modify the decision, and adopt the recommended decision as so revised;

C. Based upon the record of the hearing, modify the findings of fact, conclusions or decisions, and adopt the recommended decision as so revised; or

D. Reject the recommended decision and conduct a new hearing.

If the hearing is conducted by the board of directors of the commission, upon conclusion of the hearing, the board of directors shall adopt a decision which includes findings of fact and conclusions.

If the decision by the board of directors is that there are grounds for termination of the license and that the license shall be terminated, the board shall adopt a resolution which terminates the license and includes its decision. The effective date of termination shall be such date as is prescribed by the board of directors, within its sole discretion, in the resolution. (Prior code § 20.18.1708)

No provision of this chapter shall be deemed to bar the right of the county, cities or cable television commission to seek or obtain judicial relief from a violation of any provision of the license documents or any rule, regulation, requirement or directive promulgated thereunder. Neither the existence of other remedies identified in said chapter nor the exercise thereof shall be deemed to bar or otherwise limit the right of the county, cities or cable television commission to recover monetary damages (except where liquidated damages are otherwise prescribed) for such violation by the licensee, or judicial enforcement of the licensee's obligations by means of specific performance, injunction relief or mandate, or any other judicial remedy at law or in equity.

No provision of this chapter shall be deemed to affect the right otherwise existing in law, if any, of a licensee to seek or obtain judicial relief from the enforcement of any provision of this chapter or any rule, regulation, requirement or directive promulgated thereunder, nor shall any provision of this chapter be construed to create such a right. (Prior code § 20.18.1710)

A licensee shall not be relieved of any obligation to comply with any of the provisions of the license documents or any rule, regulation, requirement or directive promulgated thereunder by reason of any failure of the county, cities, cable television commission or their officers, agents or employees to enforce prompt compliance. (Prior code § 20.18.1712)

Except as otherwise expressly provided in any franchise issued by the city pursuant to its reserved powers under Section 5.28.170 of this chapter, all powers, rights, duties, and obligations of the city pursuant to the provisions of Article 4.5 (commencing with Section 53088) of Chapter 1 of Division 2 of Title 5 of the California Government Code (hereinafter the "Video Customer Service Act"), as it now exists or should hereafter be amended, are delegated to and conferred upon the board of directors of the cable television commission as to any video provider included within the scope of its provisions, including without limitation those video providers who have received, or hereafter receive, a license issued by the commission pursuant to this chapter. (Prior code § 20.18.1714)

The maximum monetary penalties set forth in Government Code Section 53088.1(o) are adopted and enacted as the applicable schedule of penalties for the material breach by a video provider of the provisions of Section 53088.1, as it now exists or should hereafter be amended, within the jurisdiction of the city. Subject to the procedures required by Government Code Section 53088.1(p), the board of directors of the commission is authorized to impose monetary penalties up to the maximum amounts so specified and subject to the terms thereof, provided that the schedule of penalties adopted shall not be deemed to reduce or delimit any other or additional penalties which the commission may otherwise be authorized to impose under law. (Prior code § 20.18.1716)