§ 29. Franchise Not Transferrable.

A.

This franchise, or control thereof, shall not be sold, leased, mortgaged, assigned, or otherwise transferred, nor shall any of the rights or privileges herein granted or authorized be leased, assigned, mortgaged, sold, or transferred, either in whole or part, nor shall title hereto, either legal or equitable, nor any right, interest, or property herein pass to or vest in any person, except the grantee, either by act of the franchisee or by operation of law, without the prior consent of the City expressed by ordinance.

B.

The granting of such consent in one instance shall not render unnecessary any subsequent consent in any other instance.

C.

Nothing contained herein shall be deemed to prohibit the mortgage, pledge, or assignment of system tangible assets for the purpose of financing the acquisition of equipment for the construction and operation of the system, without the City's consent, but any such mortgage, pledge, or assignment shall be subject to the rights of the City hereunder. The franchisee, upon any sale, lease, assignment, mortgage, or other transfer of this franchise or any of the rights or privileges hereunder shall within sixty (60) days thereafter file with the City Manager a copy of the deed, agreement, mortgage, lease, or other written instrument evidencing such sale, lease, mortgage, assignment, or transfer certified and sworn to as correct by the franchisee.

D.

Every such sale, lease, mortgage, assignment, or transfer as heretofore described, whether voluntary or involuntary, shall be deemed void and shall have no effect unless franchisee shall within sixty (60) days after the same shall have been made, file such certified copy as required.

E.

The transfer of "control" shall be subject to the following:

(1)

The Franchisee shall promptly notify the City of any actual or proposed change in, or transfer of, or acquisition by any other party of, control of the Franchisee. The word "control" as used herein is not limited to major stockholders but includes actual working control in whatever manner exercised. Every change, transfer, or acquisition of control of the Franchisee shall make the Franchise subject to cancellation unless and until the City shall have consented thereto. [Note: delete the following words: which consent shall not be unreasonably withheld, and add the following conditions for the City granting their consent:] Any transfer or assignment of the franchise or a stock transfer that would change the controlling interest shall not be effective until submitted to and approved by the City Council. Any transfer of the franchise shall be granted by the City Council if the applicant for the transfer provides a letter of consent from the current Franchisee and if the applicant demonstrates to the City Council's satisfaction that:

(a)

The applicant has the available resources (including, but not limited to, vehicles, equipment, facilities and personnel) sufficient to meet the standards of service established by this Ordinance.

(b)

That the applicant has sufficient experience to ensure compliance with this Ordinance.

(c)

That the applicant has in force, or provides a letter of intent for, liability insurance in the amounts and for the coverage required by this Ordinance. Upon award of the transfer, the applicant shall provide the City with certificate(s) of insurance evidencing the coverage and amounts prior to the effective date of the transfer.

F.

In the event that the City consents to a transfer, assignment, or change of control, the person acquiring the franchise shall sign a written covenant not to seek a rate increase for a period of time not less than two years following the date of the covenant. This covenant may be set aside by the City if the person acquiring the franchise provides the evidence required in Section 24. of this Ordinance to substantiate that a rate adjustment is necessary in order to maintain the quality, effectiveness and efficiency of the solid waste management service in the City.

(Ord. No. 1475, § 29, 5-12-2009)