(A) Prior written consent required. Any Official Police Tow Service shall not sell, transfer, lease, assign, sublet, mortgage, or dispose of, either in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation or otherwise, the franchise or any rights or privileges granted therein, without obtaining the prior, written consent of the City Council. Any request to transfer or assign the franchise must be in writing and must be submitted to the city at least 120 days prior to the effective date of such sale, transfer, or assignment.
(B) Recommendation to city council. Upon receipt of a written request to sell, transfer, lease, assign, sublet, mortgage, or otherwise dispose of an Official Police Tow Service franchise, the city’s Chief Executive Officer shall investigate the proposed transferee or assignee and determine whether such proposed transferee or assignee is qualified to serve as an Official Police Tow Service operator pursuant to the criteria and requirements set forth in this chapter and contained in the franchise agreement, and shall make a recommendation to the City Council.
(C) Change of control defined. The prohibition against the sale, transfer, lease, assignment, subletting, mortgage, or disposal of any interest in the franchise shall apply to any change in control of the Official Police Tow Service operator. The word CONTROL as used herein is not limited to a change in major stockholders or partners of the Official Police Tow Service, but also includes actual working control in whatever manner exercised. In the event that an Official Police Tow Service operator is a corporation, prior written consent of the City Council shall be required where ownership or control of more than 49% of the voting stock of the tow truck operator is acquired by a person or group of persons acting in concert, none of whom own or control the voting stock of the Official Police Tow Service operator, either singularly or collectively, as of the effective date of the franchise. Provided, however, that nothing in this provision shall be construed to require the prior authorization of the City Council for any transfer of the franchise from an Official Police Tow Service operator to a wholly owned subsidiary.
(D) Grounds for revocation of franchise. Any attempt to sell, transfer, lease, assign, sublet, mortgage, or otherwise dispose of an Official Police Tow Service franchise without the prior, written consent of the City Council shall be null and void and shall subject the offending Official Police Tow Service to cancellation, revocation or suspension of its franchise subject to the terms and procedures set forth in this chapter.
(Ord. 1161, passed 7-12-00; Ord. 1407, passed 3-7-18)