§ 1004-2.422. Transferability of franchise.

(a)

Transfer.

(i)

Documentation. A grantee may not sell, transfer, assign or lease a franchise or any part of a franchise, except with the consent of the board of supervisors, which the board shall not arbitrarily withhold. No sale, transfer, assignment or lease of a franchise may be made unless the grantee files with the board of supervisors no later than sixty days after execution of an agreement for any sale, transfer, assignment, or lease of the franchise, or any part thereof, or any of the rights or privileges granted under a franchise: (1) a certified copy of the executed instrument of the sale, transfer, assignment or lease of the franchise; and (2) a written request, by all parties to the agreement, for the consent of the board of supervisors to the sale, transfer, assignment or lease. If the instrument and request are not filed with the board of supervisors within sixty days after the effective date of the sale, transfer, assignment or lease, then the franchise is subject to forfeiture.

(ii)

Deposit; Applicability; Pledge of Franchise. At the time a grantee seeking to transfer a franchise files the documents required by subsection (a)(i) of this section, the grantee shall deposit five thousand dollars with the public works department to cover the county's administrative costs, staff time, administrative, legal and consulting fees incurred by the county in connection with processing the application for the transfer of a franchise. If the initial deposit is depleted, the grantee shall, within thirty days after receiving written notice, make an additional deposit with the public works department in an amount specified by the public works department.

(iii)

Additional Terms; Security Grant. In granting consent to the sale, transfer, assignment or lease, the board of supervisors may impose additional terms upon the franchise that the board deems to be in the public interest. This section applies to any sale, transfer, assignment, or lease of a franchise, whether by operation of law, by voluntary act of the grantee, or otherwise. Any attempt to sell, transfer, assign, or lease of a franchise without board of supervisors consent is invalid. Notwithstanding the foregoing, the county's approval is not required for the granting of a security interest in any of grantee's assets, or any mortgage or other hypothecation, or by assignment as collateral of any rights, title or interest of grantee in the franchise in order to secure indebtedness.

(iv)

Merger or Reorganization. The county's approval is required to sell, transfer, assign or lease any franchise resulting from a consolidation or merger of grantee with or into any other person, entity or corporation, or any other business reorganization, including any transaction or series of related transactions by grantee where more than twenty-five percent of the ownership is transferred, unless the ownership is transferred to any person or entity that was, immediately prior to the transaction or transactions, the direct or indirect owner of, or under common ownership with, the grantee.

(b)

Transfer Request. To obtain the county's consent, a grantee shall provide the county with a written request setting forth the specific interests to be transferred, along with other information as the county may request, to the extent the information is not proprietary or otherwise privileged. A transfer application is subject to the approval of the board of supervisors.

(c)

Conditions. The county's approval or disapproval of the proposed transfer shall be based on the proposed transferee's legal, financial and technical qualifications, the transferee's acceptance of the terms and conditions of the franchise and agreement to be bound by the terms of the franchise, and on whether grantee is in compliance with the terms of the franchise and this chapter, and the approval shall not be arbitrarily withheld. If the proposed transfer is approved by the board of supervisors, the transferor and the transferee will, within thirty days of the resolution approving the transfer, execute and deliver an assumption and consent agreement, in a form acceptable to the county. As a condition to consenting to the sale, transfer, assignment, lease or agreement, the county may impose any additional terms and conditions upon the franchise and upon the grantee or assignee, which the county may deem to be in the public interest and which will be expressed by resolution.

(d)

No Presumption of Approval. Nothing in this ordinance shall be construed to grant to a grantee the right to sell, transfer, assign or lease the franchise, or any part thereof, except in the manner set forth in this section. No transfer shall be effective unless and until the transfer is approved by the board of supervisors, as provided in this section.

(e)

Existing Franchise Requirements. Any purchaser, transferee, assignee, or lessee of a franchise shall comply with all bond and insurance requirements of the existing franchise within thirty days after the assignment or transfer. The bond or letter of credit must be reissued in the name of transferee or assignee. After the bond or letter of credit is reissued, the original grantee's bond or letter of credit will be released, less the amount sufficient to compensate the county for any unpaid administrative costs and losses arising out of the grantee's exercise of the franchise.

(Ord. No. 2013-19, § II, 8-13-13)