(A) Notification of sale.
(1) PSC approval.
(a) When a provider is the subject of a sale, transfer, lease, assignment, sublease or disposed of, in whole or in part, either by forced or involuntary sale, or by ordinary sale, consolidation or otherwise, such that it or its successor entity is obligated to inform or seek the approval of the PSC, the provider or its successor entity shall promptly notify the city of the nature of the transaction and, if applicable, request a transfer of the franchise to the successor entity.
(b) A request for a transfer shall include a certification that the successor entity unequivocally agrees to all of the terms of the original provider’s franchise agreement.
(2) Transfer of franchise. Upon receipt of a request to transfer a franchise, the city designee, as provided in § 152.014(A)(1) of this chapter, may send notice approving the transfer of the franchise to the successor entity. Such approval shall not be unreasonably withheld. If the city has reason to believe that the successor entity may not comply with this subchapter or the franchise agreement, it may require an application for the transfer. The application shall comply with § 152.005 of this chapter.
(B) If PSC approval is no longer required. If the PSC no longer exists, or if its regulations or state law no longer require approval of transactions described in division (A) above, then the following events shall be deemed to be a sale, assignment or other transfer of the franchise requiring compliance with division (A) above:
(1) The sale, assignment or other transfer of all or a majority of a provider’s assets to another person;
(2) The sale, assignment or other transfer of capital stock or partnership, membership or other equity interests in a provider by one or more of its existing shareholders, partners, members or other equity owners so as to create a new controlling interest in a provider;
(3) The issuance of additional capital stock or partnership, membership or other equity interest by a provider so as to create a new controlling interest in such a provider; or
(4) The entry by a provider into an agreement with respect to the management or operation of such provider or its system.
(Prior Code, § 33.01.120) (Ord. 98-37, passed 8-20-1998)