(A) Notification of sale.
(1) Notification and election. When a provider is the subject of a sale, transfer, lease, assignment, sublease, or is 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 fact and nature of the transaction. The notification shall include either:
(a) The successor entity’s certification that the successor entity unequivocally agrees to all of the terms of the original provider’s franchise agreement; or
(b) The successor entity’s application in compliance with § 114.54.
(2) Transfer of franchise. Upon receipt of notification and certification in accordance with division (A)(1)(a) above, the city designee, as provided in § 114.58(A)(1), shall send notice affirming the transfer of the franchise to the successor entity. If the city has good cause 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 § 114.54.
(3) If PSC approval no longer required. If the PSC no longer exists, or if its regulations or state law no longer require approval of transactions described in this division (A), and the city has good cause to believe that the successor entity may not comply with this subchapter or the franchise agreement, it may require an application from the successor entity. The application shall comply with § 114.54.
(B) Events of sale. The following events shall be deemed to be a sale, assignment, or other transfer of the franchise requiring compliance with division (A) above:
(1) Provider’s asset. The sale, assignment, or other transfer of all or a majority of a provider’s assets to another person;
(2) Stock or partnership, membership, other equity interests. 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) Additional capital stock. 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) Agreement. The entry by a provider into an agreement with respect to the management or operation of such provider or its system.
(Prior Code, § 13.10.070) (Ord. 11-98, passed 5-20-1998)