Chico Municipal Code Art. IV Regulation of Franchise

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)

A. Remedies. Upon the occurrence of any event of default by the grantee, the city council may:

1. Assess against the grantee monetary penalties not to exceed One Thousand Dollars ($1,000.00) for each such event of default or series of related events of default and/or require the grantee to cure each such event of default within such time, in such manner, and upon such terms and conditions as the city council shall designate; or

2. Revoke and terminate the grantee's franchise.

B. Public Hearing. Prior to imposing any such remedy or remedies upon the grantee upon the occurrence of any such event of default, the city shall do the following:

1. The city shall provide the grantee with at least fifteen (15) days’ prior written notice of the time and place of a public hearing to be held before the city council for purposes of determining whether such event of default has occurred and, if it has occurred, whether such event of default was for just cause. Notice as to the time and place of such hearing shall be published at least once ten (10) days before such hearing in a newspaper of general circulation within the grantee's service area;

2. The grantee shall be afforded full due process in connection with such hearing, including, but not limited to, an opportunity to introduce evidence, to require the production of evidence, and to introduce and/or question persons connected with or having knowledge of the alleged default. A transcript may be made of the hearing at the grantee's expense;

3. The city council shall hear any persons interested therein and, based upon the evidence presented at such hearing, shall determine whether or not an event of default by the grantee has occurred;

4. If the city council shall determine that there occurred an event of default by the grantee and such default was with just cause, the city council shall direct the grantee to correct or remedy the same within such additional time, in such manner, and upon such terms and conditions as the council determines to be necessary; or

5. If the city council shall determine that there occurred an event of default by the grantee and such default was without just cause, then the city council may, by resolution, impose any one or more of the remedies set forth in subsection A of this section.

C. Remedies Cumulative. The city council may, in its sole judgment and discretion, impose any one or more of the foregoing remedies against the grantee, which administrative remedies shall be in addition to any and all other legal or equitable remedies it has under the franchise or under any applicable law.

D. City’s Rights Not Affected. The termination and forfeiture of any franchise shall in no way affect any of the rights of the city under the franchise or any provisions of law.

(Ord. 2107 §1)

A. Receivership. Any franchise herein granted shall, at the option of the city, cease and terminate one hundred twenty (120) days after the appointment of a receiver or receivers or trustee or trustees to take over and conduct the business of the grantee, whether in a receivership, reorganization, bankruptcy, or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred twenty (120) days or unless:

1. Such receivers or trustees shall have, within one hundred twenty (120) days after their election or appointment, fully complied with all the terms and provisions of this chapter and the franchise granted pursuant hereto, and the receivers or trustees within the one hundred twenty (120) days shall have remedied all material defaults under the franchise; and

2. Such receivers or trustees shall, within the one hundred twenty (120) days, execute an agreement duly approved by the court having jurisdiction in the premises whereby such receivers or trustees assume and agree to be bound by each and every term, provision, and limitation of the franchise.

B. Foreclosure. Subject to the provisions of this chapter permitting a lender to operate the service upon the default of the grantee in its obligations to such lender, in the case of a foreclosure or other judicial sale of the equipment of the grantee, or any part thereof, the city may serve notice of termination upon the grantee and the successful bidder at such sale, in which event the franchise and all rights and privileges of the grantee hereunder shall cease and terminate thirty (30) days after service of such notice, unless:

1. The city council shall have approved the transfer of the franchise in the manner provided by this chapter; and

2. Such successful bidder shall have covenanted and agreed with the city to assume and be bound by all the terms and conditions of the franchise.

(Ord. 2107 §1)