(a) Prohibition. Franchisee may not sell, assign or transfer the rights, privileges, and franchise granted hereunder, in whole or in part and control of the Franchisee may not be transferred to any other person without the prior written consent of City expressed by resolution or ordinance, and then only under such conditions as may herein be prescribed. No assignment or transfer in law or otherwise shall be effective until the City has consented and the Assignee or transferee has filed with the AUC an instrument, duly executed, reciting the fact of such assignment or transfer, accepting the terms of this franchise, and agreeing to comply with all of the provisions hereof.
(b) Personal Trust. Franchisee agrees that franchise shall be held in personal trust and that any permitted assignee or transferee hereunder shall also hold the franchise in personal trust.
(c) Process. Franchisee shall file FCC Form 394 with the Mayor requesting City approval of any transfer. The application shall detail the terms of the transfer and all applicable qualifications of the assignee or transferee relating to fulfilling the terms of the franchise. Upon receipt of such application, the AUC shall diligently investigate the application and place the request on the City Council agenda at the earliest practicable time. The City reserves the right to ask the Franchisee for additional information concerning the proposed transfer, and Franchisee shall comply with any such request. The City Council shall proceed to act on the request within one hundred twenty (120) days or such other period as applicable law may provide. In the event the City Council does not deny its approval within said period of time, the request shall be deemed approved.
(d) Scope of Review. In reviewing a request for assignment, the City or its Agent may inquire into the legal, technical and financial qualifications of the prospective assignee, and may also inquire into Franchisee's compliance with the terms of this franchise and the ability of the Franchisee or its assignee or transferee and their ability to cure any non-compliance with this franchise. The City may condition said assignment upon such terms and conditions as it deems reasonably necessary, provided such terms and conditions are related to the qualifications of this assignee. The City shall not unreasonably withhold its approval.
(e) Assignments not Requiring Approval. Notwithstanding anything to the contrary, the prior approval of the City shall not be required for any assignment to an entity controlling, controlled by or under the same common control as Franchisee, as long as such entity has expertise in the operation of a CTS System. Franchisee shall demonstrate that the proposed assignee has the financial resources necessary to fulfill the requirements of the franchise, as well as Franchisee's compliance with the terms of this franchise. Franchisee shall give written notice to the Mayor of such assignment. Such notice shall also describe the particulars thereof and explain why Franchisee believes the proposed transfer or assignment falls within this paragraph.
(f) Transference of Escrow and Bonds. Upon an assignment by Franchisee of this franchise, all escrow accounts and bonds required under this agreement shall transfer to he assignee, and the assignee shall assume all of the responsibilities and obligations of the Franchisee under this agreement.
(Ord. 2439. Passed 1-2-96.)
(Ord. 2439. Passed 1-2-96.)