(A) In the event that the grantee files for a transfer of the grantee, or a general rate case with the PSC, it will furnish the City Clerk or his/her designee with timely notice of such filing. In the event the city should choose to intervene in such PSC action, the grantee shall not oppose such intervention.
(B) No transfer shall take place, whether by forced or voluntary sale, lease, mortgage, assignment, encumbrance or any other form of disposition, without prior notice to and approval by the city which shall not be unreasonably refused, withheld, or delayed. The notice shall include full identifying particulars of the proposed transaction, and the Board of Commissioners shall act by resolution. The city shall have 120 days within which to approve or disapprove a transfer. If no action is taken within such 120 days approval shall be deemed to have been given.
(C) Division (B) above is not intended to apply to assignments to a parent, subsidiary or affiliate of the grantee.
(D) In making a determination on whether to grant an application for a transfer, the city may consider the financial, technical and other qualifications of the transferee (assignee) to operate the telecommunication system; whether the incumbent grantee is in compliance with this chapter and, if not, the proposed transferee’s (assignee’s) commitment to cure such noncompliance and any other criteria allowed by applicable law.
(E) The consent or approval of the city to any transfer of the grantee shall not constitute a waiver or release of the rights of the city in and to the streets.
(F) The person to whom the franchise is transferred (“transferee”) shall complete a transfer application in a form required by city and pay a $5,000 application fee, providing the following information:
(1) Address and telephone number of local office of transferee, if any;
(2) Method to contact transferee on a 24-hour basis in case of emergency with respect to its telecommunications system, facilities, poles, and equipment and apparatus;
(3) The articles of incorporation or organization of transferee, the state in which transferee was formed, and whether transferee is in good standing in that state;
(4) Whether transferee is qualified to do business in the Commonwealth of Kentucky;
(5) The name, address and telephone number of transferee’s agent for service of process in Kentucky;
(6) A statement signed by an officer of transferee certifying that transferee has obtained authorization from the PSC to provide telecommunications services in Kentucky, and a copy of the document constituting that authorization. If no approval is required by the PSC, the transferee shall identify the statute or regulation exempting transferee from the necessity to obtain approval;
(7) An agreement signed by transferee and grantee stating that transferee: (a) has read this chapter, (b) will comply with all its terms and conditions, and (c) has accepted and assumed all obligations and liabilities arising under this chapter and/or franchise agreement.
(G) Should grantee attempt to affect a transfer of its franchise without fully complying with this section, or should transferee fail to comply with the requirements of this section, such assignment or transfer shall be invalid, unless ratified by the city. The transferee shall be liable for all costs incurred by the city with regard to the transfer of the franchise, including attorneys’ fees, and shall reimburse city within 30 days of billing accompanied by an itemized statement.
(H) Notwithstanding a transfer of a franchise to the transferee, grantee shall remain liable and obligated for any debts or obligations incurred to the city by grantee prior to the date of the transfer.
(Ord. 22-08, passed 4-12-22)