Signal Hill Municipal Code Art. VII Acceptance, Term, Renewal and Transfer of Franchise

A. All franchises awarded hereunder shall be awarded by ordinance or resolution of the city council. Any reference herein to the date of award of a franchise shall be deemed to be the date the ordinance or resolution, as the case may be, awarding the franchise becomes effective.

B. Notwithstanding the award of franchise, no franchise shall become effective until all things required in this section and Sections 13.12.060, 13.12.070, 13.12.090, and 13.12.100 are done and completed. In the event any of such things are not done and completed in the time and manner required, the council may declare the franchise null and void.

C. Within thirty days after the award of franchise, or within such extended period of time as the council in its discretion may authorize, the grantee shall file with the city clerk, his written acceptance, in form satisfactory to the city attorney, of the franchise together with the bond and insurance policies specified herein, and his agreement to be bound by and to comply with and to do all things required of him by the provisions of this chapter and the franchise. Such acceptance and agreement shall be acknowledged by the grantee before a notary public, and shall in form and content be satisfactory to and approved by the city attorney.

(Ord. 85-07-950 § 1 (part))

The franchise granted by the council under this chapter shall be for a maximum term of twenty years from the date of award of the franchise, if accepted by the grantee(s).

(Ord. 85-09-954 § 2; Ord. 85-07-950 § 1 (part))

A. During the six-month period which begins with the thirty-sixth month before the franchise expiration, the city may on its own initiative, and shall at the request of the grantee, commence proceedings which afford the public in the franchise area appropriate notice and participation for the purpose of:

1. Identifying the future cable-related community needs and interest; and

2. Reviewing the performance of the grantee under the franchise during the then-current franchise terms.

B. Upon completion of a proceeding under subsection A of this section, the grantee seeking renewal of a franchise may on its own initiative or at the request of city submit a proposal for renewal. The request shall be accompanied by both the application and fee as provided in Section 13.12.060 except to the extent that the city waives such provisions. In addition, such request shall, at the minimum, specify the following:

1. Justification, based on prior experience and compliance with existing franchise and applicable law, for the extension;

2. Number of years of the requested franchise extension;

3. Changes, modifications, improvements, and up-grades to the grantee is proposing to provide during the term of the requested extension;

4. The financial legal and technical capability of the grantee to provide the necessary services facilities and equipment;

5. Demonstrate that the quality of service has been reasonable in light of community needs and that the service will reasonably meet community needs and interests;

6. Any and all other information grantee shall deem relevant to the request.

C. Upon submittal by grantee of an application for renewal, the city shall provide prompt public notice and during the four-month period beginning on completion of the proceedings under subsection A of this section, either renew the franchise or issue a preliminary assessment that the franchise should not be renewed. In the event that the city should issue such assessment and upon the request of grantee, the city shall initiate administrative proceedings, after providing notice to the grantee and public to consider whether the franchise should be renewed in accordance with this section. Any determination by the council shall be based upon the grounds stated in this chapter or other applicable law and shall be transmitted to the grantee in writing within ten days following such determination.

D. A final decision and agreement between grantee and the city shall be resolved at the earliest possible date, but in no event, later than eighteen months prior to the expiration of the existing franchise. In the event agreement is not concluded prior to that time, notice shall be given to the grantee of the city's intent to reopen the franchise to interested applicants. Nothing herein shall be construed to prevent the city in its sole discretion from reopening the franchise to interested applicants.

(Ord. 85-07-950 § 1 (part))

A. Any franchise granted pursuant to this chapter shall be a privilege to be held in personal trust by the original grantee. It cannot in any event be sold, transferred, leased, assigned, hypothecated, or disposed of in whole or in part, either by forced or involuntary sale, or by voluntary sale, merger, consolidation, or otherwise, without the prior consent of the council expressed by resolution, after receipt of any proposed contractual documents, including the considerations and then only under such reasonable conditions as may be prescribed in said resolution. Council consent shall not be necessary for any transfer or assignment to an affiliated entity which does not result in an actual change in ultimate control of the franchise; provided, that council consent shall be required where there is a change in control or ownership where a person or group of persons acting in concert acquire more than fifty percent of the voting stock of the franchisee. Council consent shall also not be necessary for a transfer in trust, mortgage, pledge, or other hypothecation of less than twenty-five percent of the market value of the property used in the conduct of the Signal Hill CATV System, unless made to avoid or evade the other provisions of this chapter affecting transfers.

B. Any transfer or assignment shall be made only by an instrument in writing, a duly executed copy of which shall be filed in the office of the city clerk within thirty days after any such transfer or assignment. The consent of the council, when required by this section, shall not be unreasonably refused; provided, however, the proposed assignee must submit an application in accordance with Section 13.12.060 except to the extent that the city waives such provisions. The fee for such application shall be one thousand dollars. The proposed assignee shall show financial responsibility and must agree to comply with all provisions of this chapter and of the franchise agreement. Failure to comply with all provisions of this section may result in termination of this franchise in accordance with Section 13.12.240.

(Ord. 85-10-961 § 1: Ord. 85-07-950 § 1 (part))