§ 30-62. Grant of franchise.

(a)

Grant of franchise. Subject to the provisions of this Act, after the enactment hereof, in the event that grantor shall grant to the grantee a franchise to occupy or attach to city property or the city's rights-of-way to install, maintain and/or repair wireless facilities within the city, the franchise shall include those provisions of the grantee's franchise agreement that are finally negotiated and accepted by the grantor and grantee and set forth in writing. The terms of any franchise granted by grantor shall be consistent with the provisions of this Act and shall not conflict with, eliminate, or materially alter any provision of this Act. In the event of a conflict between the terms of this Act and the franchise, the terms of this Act shall control.

The franchise shall be granted under the terms and conditions contained herein and as set forth in the Charter, which terms and conditions are incorporated by reference as if fully set forth at length herein. In the event of conflict between the terms and conditions of any franchise and the terms and conditions on which the city can grant a franchise as set forth in the Charter, the Charter shall, without exception, control.

The franchise shall be subject to the Charter and general ordinance provisions of the city. Nothing in the franchise shall be deemed to waive the requirements of the various codes and ordinances of the grantor regarding permits, fees to be paid, manner of construction, or the zoning and land use regulations.

(b)

Attachment to utility poles or other city property in the public right-of-way. For the purpose of constructing, operating, and maintaining wireless facilities utilizing utility poles or other city property in the public right-of-way, a grantee may occupy, install, maintain and/or repair such equipment and plant as is necessary and appurtenant to the operation of wireless services within the city. In installing, maintaining, and/or repairing its wireless facilities utilizing utility poles or other city property, the grantee shall comply with all applicable rules, regulations and laws, including but not limited to zoning and land use regulations.

(c)

Duration. The term of the franchise and all rights, obligations and restrictions pertaining thereto shall be for a definite period of time, not to exceed 15 years from the effective date of the franchise unless terminated sooner as hereinafter provided. The effective date of the franchise shall be the date of acceptance of the franchise by the grantee after passage by the council.

After ten years, the parties may opt to:

(1)

Allow the agreement to continue under its terms and conditions with no changes for an additional five years which shall require no action by either party; or

(2)

Re-negotiate the terms upon the mutual, written consent of both parties prior to continuing the agreement for an additional five years. If no mutual written modification is agreed upon by both parties, the franchise shall expire.

(d)

Franchise nonexclusive. The franchise shall be nonexclusive. The grantor specifically reserves the right to grant, at any time, such additional franchises for wireless communications systems as it deems appropriate.

(e)

Nontransferable requirements.

(1)

Grantees shall provide the director with written notice of any transfer, sale, or assignment of any material interest in, or a change in control of, grantee within ten days after the effective closing date of such transfer, sale, or assignment. The foregoing and any other provision of this Act regarding a change in control shall not apply to the sale, issuance, or other transfer of stock less than a majority share of any publicly traded grantee.

(2)

Except for sales, assignments, or transfers of franchises by reason of sales, assignments, or transfers of material interests in or changes of control of grantees, franchises shall not be sublet or assigned, nor shall any of the rights therein granted or authorized be leased, assigned, sold or transferred, either in whole or in part, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person, except the grantee, without the prior consent of the grantor expressed by ordinance. Such consent shall not be unreasonably withheld. The grantor shall be deemed to have consented if the grantor has not acted within 120 days after receipt of grantee's request for approval unless grantor and grantee agree to an additional period of time for grantor's review. The granting of such consent shall not render unnecessary any subsequent consent. For the purpose of determining whether it will consent to such change, transfer, or assignment of the franchise, the grantor may inquire into the qualifications of the prospective holder of the franchise, including, but not limited to proof of such person's compliance with the insurance and security fund requirements of this Act, and grantee shall assist the grantor in any such inquiry.

(3)

Within 60 days after transfer, sale, or assignment of the franchise, grantee shall file with the council utilities regulatory office and director a copy of the deed, agreement, mortgage, lease, or other written instrument evidencing such transfer, sale, or assignment, certified and sworn to as correct by the grantee.

(4)

For purposes of this Act, a change in control of grantee occurs:

a.

When a 51-percent ownership interest in the grantee is acquired;

b.

When an ownership interest changes from 51 percent or more to 50 percent or less;

c.

When substantially all of the assets of the grantee are acquired by a third party; or

d.

When control, as defined by the regulations of the securities and exchange commission, is acquired.

(5)

Notwithstanding any provision in this Act to the contrary, grantee shall have the right to assign its franchise, in whole or in part, to any parent, subsidiary, affiliate, or any person, firm, or corporation that shall control, be under the control of, or be under common control with grantee, or to any entity into which grantee may be merged or consolidated or which purchases all or substantially all of the assets of grantee that are subject to the franchise, provided in each case grantee provides grantor with written notice of such assignment as soon as reasonably possible but in no event more than 30 days after such assignment.

(f)

Rights reserved to grantor.

(1)

Right to require removal of property. At the expiration or termination of any franchise the grantor shall have the right to require the grantee to remove, at its own expense, all portions of the wireless facilities from all utility poles and other property of the city within 180 days of termination.

(M.C.S., Ord. No. 27999, § 1, 3-14-19)