(a) The Contractor shall not assign its rights or delegate or otherwise transfer its obligations under an Exclusive or Limited Franchise granted pursuant to this Chapter in whole or in part to any other person without the prior written consent of the City. Any such assignment made without the consent of the City shall result in the revocation of the Exclusive or Limited Franchise. Permits issued under this Chapter may not be transferred or assigned.
(b) For purposes of this section, "assignment" shall include, but not be limited to:
(1) A sale, exchange or other transfer of substantially all of Contractor's assets dedicated to service under this Chapter to a third party;
(2) A sale, exchange or other transfer of 30 percent or more of the outstanding common stock of Contractor;
(3) Any reorganization, consolidation, merger, recapitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction to which Contractor or any of its shareholders is a party which results in a change of ownership or control of thirty (30) percent or more of the value or voting rights in the stock of Contractor;
(4) Any combination of the foregoing, whether or not in related or contemporaneous transactions, which has the effect of any such transfer or change of ownership. For purposes of this section, the term "proposed assignee" shall refer to the proposed transferee(s) or other successor(s) in interest pursuant to the assignment. Assignment shall not include the gifting or sale of ownership interest to a spouse or lineal family members nor shall it include a transfer by bequest to a spouse or lineal family members.
(c) If Contractor requests City Council consideration of and consent to an assignment, the City Council may deny or approve such request. No request by Contractor for consent to an assignment need be considered by the City Council unless and until Contractor has met the following requirements:
(1) Contractor shall pay to City the cost for administrative staff time and attorney fees to investigate the suitability of any proposed assignee, and to review, evaluate and process any documentation required as a condition for approving any such assignment. Contractors possessing a Limited Franchise who request an assignment or transfer of Franchise must apply for a termination of the Franchise and reapply for a new Franchise under a new name.
(2) Contractor shall furnish City Manager or designee with audited financial statements of the proposed assignee's operations for the immediately preceding three (3) operating years unless an exception is granted by the City Manager or designee.
(3) Prior to consideration by the City Council, the Exclusive Franchise Contractor shall furnish the City Manager or designee with satisfactory written proof the proposed assignee has at least ten (10) years of solid waste management experience on a scale equal to or exceeding the scale of operations conducted by Contractor under this Chapter; that in the last five (5) years, the proposed assignee has not received any citations or other censure from any federal, state, or local agency due to any significant failure to comply with federal, state, or local laws and that the assignee has provided the City Manager or designee with a complete list of such citations and censures; that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; that the proposed assignee conducts its solid waste management practices in accordance with sound waste management practices in full compliance with all federal, state, and local laws regulating the collection and disposal of solid waste, including hazardous waste as identified in Title 22 of the California Code of Regulations; and, of any other information required by the City Council to ensure the proposed assignee can fulfill the terms of this Chapter in a timely, safe and effective manner. Proposed assignees must be approved by the City Council.
(Ord. 1688-NS, eff. December 17, 2021)