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HomeMy WebLinkAbout3096 Vyve Transfer Cable Franchise to SparklightPage 1 of 3 ORDINANCE NO. 3096 AN ORDINANCE OF THE CITY OF MOSES LAKE, WASHINGTON, APPROVING THE CHANGE OF CONTROL OF NORTHLAND CABLE TELEVISION, INC., d/b/a VYVE BROADBAND, WITH CONDITIONS AND ESTABLISHING AN EFFECTIVE DATE. Recitals: 1. On December 13, 2011, the City of Moses Lake (the “City”) adopted Ordinance No. 2636 granting a nonexclusive cable franchise to Northland Cable Television, Inc., d/b/a Vyve Broadband (Vyve) to operate a cable system (the “System”) within the city limits of the City of Moses Lake, with an effective date of December 18, 2011. 2. Sparklight has requested that the City consent to the Transfer and, in accordance with the requirements of the Franchise and federal law, Sparklight has filed an FCC Form 394, together with Exhibits and related materials (all hereinafter collectively the “Application”) with the City. 3. Section 16.2 of the Franchise requires that the Franchisee obtain the consent of the City for any change of control, including such change of control that will occur because of this Transaction. 4. The consent of the City to the change of control that will occur because of the closing of the Transaction shall not constitute a waiver or release of any rights the City or Franchisee may have under the Franchise. 5. The City is willing to consent to the change of control, subject to the closing of the Transaction between Sparklight and Vyve and the appropriate approvals by the Washington State Utilities and Transportation Commission and federal regulatory entities. 6. Sparklight, who will become the parent company of Franchisee, has agreed to continue to unconditionally accept the terms of the existing Franchise and to comply with any other agreements existing between the Franchisee and the City. 7. The City Council deems it to be in the public interest to grant the requested consent. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOSES LAKE, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. The City hereby consents to the change of control that will occur as a consequence of the closing of the Transaction and in accordance with the terms of applicable law, subject to and contingent on the fulfillment of the conditions set forth in Section 2 hereof. Section 2. Section 1 of this Ordinance is contingent on the fulfillment of the following condition: Sparklight shall acknowledge that the change of control will not affect, diminish, impair, or Document Ref: IJVMF-UQBSE-WFFTW-XTRRH Page 1 of 3 Page 2 of 3 supersede the binding nature of the Franchise and any other ordinances, resolutions, side letters, and agreements, if any, applicable to the operation of the System in the City. Further, Sparklight shall acknowledge that the Franchisee shall remain responsible for any and all non-compliance issues, if any, under the Franchise and any other ordinances, resolutions, side letter, and agreements, if any, applicable to the operation of the System in the City that may have arisen prior to, or that may contemporaneous with, or after, the closing of this Transaction. Section 3. The Franchise shall remain in full effect through the remainder of the Franchise term. The Transaction and the City’s consent to the change of control do not modify the terms of the Franchise. Franchisee remains responsible for any obligations and liabilities under the Franchise. The City’s consent to the change of control shall not be construed to constitute a waiver or release of any rights the City may have now, or in the future, under federal, state, or local law, the Franchise, or any separate written agreements or side letter, if any, between the City and the Franchisee that relate to the Franchise. Section 4. By consenting to this change of control, the City expressly reserves and does not waive or release any rights of the City in and to the rights-of-way as provided by state law and the Moses Lake Municipal Code, nor does the City waive or release any claim or issue of non-compliance it may have, known or unknown, now or in the future, related to the Franchise. Section 5. Written acknowledgment as provided in Section 2 shall be filed by Sparklight with the City Clerk within thirty (30) days of the date of the closing of this Transaction. If any of the construction and completion bonds, security funds or insurance are amended because of the change of control, then Sparklight shall file with the City Clerk such revised bonds, security funds, or evidence of insurance within thirty (30) days of the date of the closing of the Transaction. This provision in no way permits Sparklight to operate the System under the Franchise without bonds, security funds, and insurance in place. Section 6. Sparklight or Franchisee may change the name or legal form of the Franchisee subsequent to the passage of this Ordinance. Section 7. If any section, sentence, clause, or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or unconstitutionality of any other section, sentence, clause, or phrase of this Ordinance. Section 8. In the event that the Transaction does not close for any reason; or in the event approval is not granted by the Washington State Utilities and Transportation Commission and appropriate federal regulatory entities, or in the event that the Transaction closes on terms substantially or materially difference from the terms described in the Application and supplemental written information provided by Vyve and Sparklight that is relied upon by the City, or Sparklight does not provide the Statement of Acknowledgement; then the consent provided for herein shall be null and void, and the City shall be deemed to have disapproved the change of control under the Franchise and federal law, and all remedies under the Franchise and applicable laws shall be available to the City. In the event the Transaction does not close before October 1, 2026, Vyve and Sparklight will provide notice of that event to the City as well as an update on the reasons for such a delay in closing or notice of the termination of the Transaction. Section 9.This Ordinance, or a summary thereof, consisting of the title shall be published in the Document Ref: IJVMF-UQBSE-WFFTW-XTRRH Page 2 of 3 Page 3 of 3 official newspaper of the City, and shall take effect and be in full force five (5) days after publication. Adopted by the City Council of the City of Moses Lake, WA and signed by its Mayor on April 14, 2026. ________________________________________ Dustin Swartz, Mayor ATTEST: ________________________________ Debbie Burke, City Clerk APPROVED AS TO FORM: __________________________________ Katherine L. Kenison, City Attorney Swartz Myers Fancher Skaug Lombardi Graves Davis Vote: Aye Aye Aye Absent Aye Aye Aye Date Published: April 20, 2026 Date Effective: April 25, 2026 Document Ref: IJVMF-UQBSE-WFFTW-XTRRH Page 3 of 3 REF. NUMBER IJVMF-UQBSE-WFFTW-XTRRH DOCUMENT COMPLETED BY ALL PARTIES ON 16 APR 2026 16:57:49 UTC SIGNER TIMESTAMP SIGNATURE KATHERINE KENISON EMAIL KKENISON@BASINLAW.COM SENT 15 APR 2026 19:31:05 VIEWED 15 APR 2026 19:34:49 SIGNED 15 APR 2026 19:35:01 IP ADDRESS107.116.255.25 RECIPIENT VERIFICATION EMAIL VERIFIED 15 APR 2026 19:34:49 MAYOR DUSTIN SWARTZ EMAIL DSWARTZ@CITYOFML.COM SENT 15 APR 2026 19:31:05 VIEWED15 APR 2026 23:29:21 SIGNED 15 APR 2026 23:29:34 IP ADDRESS 104.193.239.74 LOCATION MOSES LAKE, UNITED STATES RECIPIENT VERIFICATION EMAIL VERIFIED 15 APR 2026 23:29:21 Signed with PandaDoc PAGE 1 OF 2 REF. NUMBER IJVMF-UQBSE-WFFTW-XTRRH DOCUMENT COMPLETED BY ALL PARTIES ON 16 APR 2026 16:57:49 UTC SIGNER TIMESTAMP SIGNATURE DEBBIE BURKE EMAIL DBURKE@CITYOFML.COM SENT 15 APR 2026 19:31:05 VIEWED 16 APR 2026 16:57:27 SIGNED 16 APR 2026 16:57:49 IP ADDRESS 63.135.54.162 LOCATION MOSES LAKE, UNITED STATES RECIPIENT VERIFICATION EMAIL VERIFIED 16 APR 2026 16:57:27 Signed with PandaDoc PAGE 2 OF 2