(a) Neither the franchise nor any of a grantee's interest therein or in the facilities shall be sold, assigned, transferred, pledged, leased, sublet, hypothecated or mortgaged in any manner, in whole or in part, to any person or entity, nor shall title thereto, either legal or equitable, or any right or interest therein, or any property or assets relating to this franchise or the facilities, pass to or vest in any person or entity, without the prior written consent of the City, which consent shall not be unreasonably withheld or delayed. A Grantee shall not otherwise provide service to a person or entity who or which the City contends is required to obtain a franchise from the City and who or which lacks such franchise. Nothing herein shall prevent a grantee from assigning its rights and obligations to an affiliate (defined as any entity directly owned by a grantee or a parent entity of a grantee) or subsidiary of a grantee upon notice to the City. Any assignment or transfer to a subsidiary or affiliate of a grantee shall not relieve a grantee of its liability hereunder. Further, nothing herein shall prevent or prohibit a grantee or any of its parents, subsidiaries or affiliates, from granting a security interest in the franchise or the facilities arising from a financing transaction. The grant or waiver of any one or more of said consents shall not render unnecessary any subsequent consent or consents, nor shall the grant of any said consent constitute a waiver of any other rights of the City.
In the event of a foreclosure proceeding pursuant to the enforcement of a security interest granted by a grantee, or any parent or subsidiary of a grantee, the City shall have the right to approve the purchaser of the franchise and/or the facilities at a foreclosure sale, which approval shall not be unreasonably withheld or unduly delayed. The prohibition against sales, assignments, transfers and similar actions shall also fully apply to any transfer of control of grantee ("control") and such transfer of control shall also require the prior written approval of the City, which approval shall not be unreasonably withheld or unduly delayed.
(b) No franchise nor any part or portion of an interest in the franchise may be sold, transferred or assigned until the facilities, equipment and personnel which the grantee has proposed in the current franchise application to provide and install pursuant to the franchise are 100 percent completed and operational for a minimum period of three years, except to a grantee's parent, affiliate or subsidiary.
(c) Any attempted transfer of the franchise, facilities, control or similar action by a grantee in violation of this section shall be ineffective and void and shall constitute a material event of default by a grantee.
(Ord. 99-07. Passed 3-2-99.)