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A. Amount of Franchise Fee. The city council may fix and determine in the ordinance granting the franchise the amount of a franchise fee which shall be paid to city by grantee. Such amount may be based on a fixed fee basis or upon a gross annual receipts basis.
B. Acceptance by City. The acceptance of a franchise fee payment by the city shall not be construed as a release or as an accord and satisfaction of any claim the city may have for further or additional sums payable as a franchise fee under this chapter or for the performance of any other obligation of the grantee.
C. Failure to Make Required Payment. In the event that any franchise fee payment is not made on or before the date specified in the ordinance granting the franchise, the grantee shall pay a late fee and/or interest as set forth in the ordinance granting the franchise.
D. Payments. The manner and time for payment of the franchise fee shall be set forth in the ordinance granting the franchise.
(Ord. 2107 §1)
A. Transfer of Franchise. Any franchise granted hereunder shall be a privilege to be held for the benefit of the public. Such franchise cannot in any event be sold, transferred, leased, assigned, or disposed of by forced or voluntary sale, merger, consolidation, receivership, or other means without the prior consent of the city, and then only under such conditions as the city may establish.
B. Ownership or Control. The grantee shall promptly notify the city of any proposed change in, transfer of, or acquisition by any other party of control of the grantee. The word “control” as used herein is not limited to major partners or stockholders but includes actual working control in whatever manner exercised. A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or transfer by any person or group of persons of twenty-five percent (25%) of the aggregate partnership interests in or voting shares of the grantee. Every change, transfer, or acquisition of control of the grantee shall make the franchise subject to cancellation unless and until the city shall have consented thereto. For the purpose of determining whether it shall consent to such change, transfer, or acquisition of control, the city may inquire into the qualifications of the prospective controlling party, and the grantee shall assist the city in any such inquiry. In seeking the city's consent to any change in ownership or control of the grantee, the grantee shall have the responsibility to establish to the satisfaction of the city that the proposed purchaser, transferee, or assignee (the “proposed transferee”) which, in the case of a partnership or corporation, shall include all partners, officers, directors, and all persons having a legal or equitable interest in five percent (5%) or more of its partnership interests or voting stock, or any of the proposed transferee’s principals, meets all of the qualifications applicable to the grantee of a franchise as set forth in section 5.14.170, herein.
C. Right of Lender to Operate System. Notwithstanding anything to the contrary contained in this chapter, any financial institution having a pledge of the franchise for the advancement of money for the construction and/or operation of the franchise service for which the franchise is granted shall have the right to notify the city that it or its designee satisfactory to the city will take control and operate the services for which the franchise was granted in the event of a grantee default in its financial obligations. Further, such financial institution shall also submit a plan for such operation that will ensure continued service and compliance with all franchise requirements during the term the financial institution exercises control over the system. The financial institution shall not exercise control over the system for a period exceeding one year unless extended by the city in its discretion and during that period of time it shall have the right to petition the city to transfer the franchise to another grantee. If, after considering the legal, financial, character, technical, and other public interest qualities of the proposed transferee, the city finds that such transfer is satisfactory, the city will approve the transfer and assign the rights and obligations of such franchise to such proposed transferee.
D. Transferee to Assume Grantee's Obligations Under Franchise. In no event shall a transfer of ownership or control be approved without the successor in interest to the grantee assuming all of the grantee's obligations under its franchise. Notwithstanding the requirements of the grantee's franchise, the city may require, as a condition of the transfer of such franchise, that the proposed transferee furnish either or both a security fund and a performance bond in such amount or amounts as the city shall designate.
E. Permitted Encumbrances. Notwithstanding the provisions of this section, the grantee may pledge, assign, hypothecate, or create a security interest in its franchise without the consent of the city in favor of any bank, financial institution, or other lender with respect to any indebtedness of the grantee to such person.
(Ord. 2107 §1)
The yard debris collection and compost program for which a franchise is required by this chapter shall be operated in conformance with the regulations now or hereafter adopted by or pursuant to this chapter, as well as the provisions of any city law or regulation of general application now or hereafter in effect. In the event of a conflict between a regulation adopted by or pursuant to this chapter and the provisions of any city law or regulation of general application, the regulations adopted by or pursuant to this chapter shall prevail.
(Ord. 2107 §1, Ord. 2127 §10)
The regulations adopted by or pursuant to this chapter shall be interpreted and applied so as to be consistent with any applicable federal or state law or regulation now or hereafter in effect to the extent such federal or state law or regulation is preemptive of local laws and regulations, provided that in the event of any conflict between this chapter or any regulations adopted by or pursuant to this chapter and any such federal or state law or regulation, the federal or state law or regulation shall prevail.
(Ord. 2107 §1)
The fees to be charged by a grantee for yard debris collection services, and for yard debris drop off services at the compost site shall be as set forth in the ordinance granting the franchise for such services.
(Ord. 2107 §1, Ord. 2127 §11)
The grantee shall be deemed to be in default with respect to the performance of its obligations under its franchise upon the occurrence of any of the following events:
A. The grantee is in violation of the provisions of its franchise, this chapter or any federal or state law or regulation applicable to the operation of the grantee's service in the city and such violation is not corrected within thirty (30) days following receipt of written notice thereof from the city manager specifying such violation or, if more than thirty (30) days are reasonably required to correct such violation, within such additional time as the city manager shall consider reasonably necessary to effect such correction;
B. The grantee has failed to perform according to the specifications and standards included in the ordinance granting the franchise, including, but not limited to, any required standards for the maintenance of collection schedules, hours of collection, vehicle and equipment maintenance and condition, collection of missed collections within a specified time, compost site hours of operation, and maintenance of a business office location with specified hours of operation and procedures for responding to customer complaints.
C. The grantee has engaged in repeated violations of any of its material obligations under its franchise or this chapter or any material federal or state law or regulation applicable to the operation of the grantee's service in the city which, for purposes of this chapter, shall be deemed to exist if the same or similar violation occurs three (3) or more times within any twelve (12) month period. In any such case, the grantee shall not be entitled to notice or a period to correct the third such violation; or
D. The grantee ceases to operate the service in all or substantially all of its service area for a period of seven consecutive days without the prior approval of the city or for any reason within the control of the grantee.
(Ord. 2107 §1, Ord. 2127 §12)
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