Kern County Municipal Code Ch. 5.36 Garbage Collection Franchises

With the adoption of the California Integrated Waste Management Act of 1989, or "AB 939" (Stats. 1989; Ch. 1095), the legislature has provided that the county may determine whether solid waste handling services, including the collection, transportation, storage, transfer or processing of solid waste, are to be provided by means of nonexclusive, partially exclusive or wholly exclusive franchise, contract, license, permit or otherwise, either with or without competitive bidding. The authority has also been granted to the county to provide for the terms and conditions upon which such solid waste handling services are to be provided. This chapter sets forth the process for obtaining authorization to provide solid waste handling services within the unincorporated area of the county and the terms and conditions for providing such services.

(Ord. G-6921 § 2 (part), 2002)

For the purposes of this chapter, the following words are defined and shall be construed as hereinafter set out unless it is apparent from the context that they have a different meaning:

A. "AB 939" means the California Integrated Waste Management Act of 1989, being Division 30 of the California Public Resources Code, commencing with Section 40000 thereof, as it may be amended from time to time.

B. "Bin disposal fee" is the basic per-ton gate fee for nonresidential discarded materials, converted to a cubic yard charge and applied to a nonresidential bin.

C. "Board of supervisors" means the board of supervisors of Kern County.

D. "County" means the county of Kern.

E. "County resource management facility" means a facility that has been approved by the county to accept discarded materials from the county's recyclable materials collection program, organic materials collection program, or discarded materials collection program, as defined in Section 8.28.020.

F. "Department" means the Kern County public works department.

G. "Director" means the director of the public works department, or a designee authorized by the director.

H. "Discarded materials" means any one (1) or combination of solid waste, recyclable materials, organic materials, or other material discarded by a generator as defined in Section 8.28.020.

I. "Discarded materials handling" means one (1) or more of the following: the collection of discarded materials from a commercial, residential, construction or industrial source; the transportation of such discarded materials to a county resource management facility; and the transfer, processing, composting, transformation or disposal of such discarded materials at the county resource management facility. The specific discarded materials handling required of grantee shall be specified in its franchise agreement.

J. "Franchise agreement" means the agreement entered into between the county and the grantee under the provisions of this chapter which authorizes/requires the grantee to provide discarded materials handling services in a specified franchise zone and franchise area.

K. "Franchise zones and areas" means the geographic territory in the unincorporated county for which the grantee has been granted a franchise to provide discarded materials handling services, as specified in each franchise agreement.

L. "Grantee" means any person to whom a franchise has been granted by the board of supervisors pursuant to this chapter.

M. "Hazardous waste" means any waste which by reason of its quality, concentration, composition or physical, chemical or infectious characteristics may do either of the following: cause, or significantly contribute to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness, or pose a substantial threat or potential hazard to human health or the environment when improperly treated, stored, transported or disposed of, or otherwise mismanaged, or any waste which is defined or regulated as a hazardous waste, toxic substance, hazardous chemical substance or mixture, or asbestos under then applicable law, as amended from time to time, including, but not limited to:

1. The Resource Conservation and Recovery Act and the regulations contained in 40 CFR Parts 260—281;

2. The Toxic Substance Control Act (15 U.S.C. Section 2601 et seq.) and the regulations contained in 40 CFR Parts 761—766;

3. California Health & Safety Code Section 25117;

4. California Public Resources Code Section 40141; and

5. Future additional or substitute federal, state or local laws pertaining to the identification, treatment, storage or disposal of toxic substances or hazardous wastes.

N. "Person" means an individual, association, co-partnership, political subdivision, government agency, municipality, industry, public or private corporation, firm, organization, partnership, joint venture or any other entity whatsoever.

O. "Solid waste" means, except as provided in subsection 5.36.020(M) or other then applicable law, all putrescible and nonputrescible solid, semisolid and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances (subject to salvage and other special handling requirements under then applicable law and regulation), dewatered, treated or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semisolid wastes, and other discarded solid and semisolid wastes.

1. "Solid waste" does not include hazardous waste and does not include radioactive waste regulated under the Radiation Control Law (Chapter 8, commencing with Section 114960) of Part 9 of Division 104 of the California Health and Safety Code);

2. "Solid waste" does not include medical waste (except treated medical waste) which is regulated pursuant to the Medical Waste Management Act (Chapter 6.1, commencing with Section 25015 of Division 20 of the California Health and Safety Code);

3. "Solid waste" does not include petroleum or a petroleum product or fraction thereof at reasonably detectable levels, asbestos and, with respect to a particular solid waste facility, any waste or material which a regulatory agency, the facility's solid waste facility permit or county policy, does not allow to be accepted for transfer, processing, composting, transformation or disposal at that facility; and

4. "Solid waste" does not include items which would be recyclable materials but for the fact that they are personally separated from other solid waste by the generator thereof and are donated or sold to third parties. For purposes of this chapter, no donation or sale shall be deemed to have occurred in any instance where a generator directly or indirectly pays the third party any sum (including, without limit, as a consulting fee, container rental or other fees or tangible consideration) either: (1) in lieu of being directly charged for collecting, transporting, processing or recycling such item; or (2) to offset the payment to the generator for the purported sale of such item to the third party. Nor shall the receipt of a discount of, or reduction in, the disposal service rate on unsegregated solid waste containing such an item be deemed to be the donation or sale of such an item to a third party.

5. "Solid waste" does not include items which would be organic materials, as defined in Section 8.28.020 of this code, but for the fact that they are personally separated from other solid waste by the generator.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-9091, § 2, 3-15-22)

For the purposes of this chapter, the county is divided into zones, which shall hereafter be referred to as the "franchise zones." Said franchise zones are established and defined as follows:

A. Franchise Zone No. 1 shall consist of all of the unincorporated area of the county described as:

Beginning at the northwest corner of Section 6, Township 25 South, Range 17 East, Mount Diablo Meridian, and a point on the north boundary line of the county of Kern; thence east along section lines and the last named north boundary line a distance of 91 miles to the northeast corner of Section 6, Township 25 South, Range 32 East, Mount Diablo Meridian; thence departing from said last named north boundary line; southerly along section lines 18 miles to the southeast corner of Section 31, Township 27 South, Range 32 East, Mount Diablo Meridian; thence west along section lines 35 miles to the northeast corner of Section 5, Township 28 South, Range 26 East, Mount Diablo Meridian; thence south along section lines 4 miles to the southeast corner of Section 20, Township 28 South, Range 26 East, Mount Diablo Meridian; thence east along section lines 2 miles to the southeast corner of Section 22, Township 28 South, Range 26 East MDM; thence south along section lines 2 miles to the southeast corner of Section 34, Township 28 South, Range 26 East, MDM, and a point on the Seventh Standard Parallel; thence west along said Standard Parallel to the north one-quarter corner of Section 3, Township 29 South, Range 26 East, MDM; thence south along the north south mid-section line of Sections 3 and 10, Township 29 South, Range 26 East, MDM, to the center one-quarter corner of said Section 10; thence west along the east-west mid-section lines of Sections 7, 8, 9 and 10, Township 29 South, Range 26 East, MDM, to the west one quarter-corner of said Section 7; thence south along section lines 6½ miles to the southeast corner of Section 12, Township 30 South, Range 25 East MDM; thence west along Section lines 3 miles to the northwest corner of Section 15, Township 30 South, Range 25 East MDM; thence south along section lines 6 miles to the southeast corner of Section 9, Township 31 South, Range 25 East, MDM; thence west along section lines 3 miles to the northwest corner of Section 18, Township 31 South, Range 25 East, MDM; thence south along section lines 10 miles to the southeast corner of Section 36, Township 32 South, Range 24 East, MDM, and a point on the Eighth Standard Parallel; thence east along said Standard Parallel to the northeast corner of Section 25, Township 12 North, Range 23 West, SBM; thence south along section lines 4½ miles more or less to the southeast corner of Section 13, Township 11 North, Range 23 West, SBM; thence west along section lines 11 miles to the southwest corner of Section 17, Township 11 North, Range 24 West, SBM, and a point on the westerly boundary of the county of Kern; thence northerly, westerly and northwesterly along the exterior boundary of Kern County to the point of beginning.

B. Franchise Zone No. 2 shall consist of all the unincorporated area of the county described as:

Beginning at the southwest corner of Section 12, Township 11 North, Range 20 West, SBM; thence west along section lines 17 miles to the southwest corner of Section 7, Township 11 North, Range 22 West, SBM; thence north along section lines a distance of 3½ miles, more or less, to the northwest corner of Section 30, Township 12 North, Range 22 West, SBM, and a point on the Eighth Standard Parallel; thence west along section lines and the said Standard Parallel to the southwest corner of Section 31, Township 32 South, Range 25 East, MDM; thence north along section lines a distance of 10 miles to the northwest corner of Section 18, Township 31 South, Range 25 East, MDM; thence east along section lines three miles to the southeast corner Section 9, Township 31 South, Range 25 East, MDM; thence north along section lines six miles to the northwest corner of Section 15, Township 30 South, Range 25 East, MDM; thence east three miles to the southeast corner of Section 12, Township 30 South, Range 25 East, MDM; thence north along section lines 6½ miles to the west one-quarter corner of Section 7, Township 29 South, Range 26 East, MDM; thence east along the east-west mid-section lines of Sections 7, 8, 9 and 10, Township 29 South, Range 26 East, MDM, to the center one-quarter corner of said Section 10; thence north along the north-south mid-section lines of Section 10 and 3, Township 29 South, Range 26 East, MDM, to the north one-quarter corner of said Section 3 and a point on the Seventh Standard Parallel; thence east along the Seventh Standard Parallel to the southeast corner of Section 34, Township 28 South, Range 26 East, MDM; thence north along section lines 2 miles to the northeast corner of Section 27, Township 28 South, Range 26 East, MDM; thence west along section lines 2 miles to the southwest corner of Section 21, Township 28 South, Range 26 East, MDM; thence north along section lines 4 miles to the northwest corner of Section 4, Township 28 South, Range 26 East, MDM; thence east along section lines 34 miles to the northeast corner of Section 1, Township 28 South, Range 31 East, MDM; thence south along section lines 6 miles to the southeast corner of Section 36, Township 28 South, Range 31 East, MDM, and a point on the Seventh Standard Parallel; thence west along said Standard Parallel to the northeast corner of Section 1, Township 29 South, Range 31 East, MDM; thence south along section lines 6 miles to the southeast corner of Section 36, Township 29 South, Range 31 East, MDM; thence west along section lines 6 miles to the northeast corner of Section 1, Township 30 South, Range 30 East MDM; thence south along the east line of said Section 1 to the southeast corner thereof and E.T. No. 17 on the boundary of Rancho El Tejon; thence continuing south 8 miles to the northwest corner of Section 19, Township 31 South, Range 31 East, MDM, and a point on the boundary of Rancho El Tejon; thence southwesterly along the boundary of Rancho El Tejon to E.T. No. 13 Rancho El Tejon; thence southwesterly to an intersection with the easterly extension of the Eighth Standard Parallel; thence west along said extension one mile more or less to the southeast corner of Section 34, Township 32 South, Range 29 East, MDM, also being a point on said Standard Parallel; thence west along said Parallel to the northeast corner of Section 27, Township 12 North, Range 20 West, SBM; thence south along section lines 2½ miles more or less to the northwest corner of Section 11, Township 11 North, Range 20 West, SBM; thence east along the north line of said Section 11 to the northeast corner of said Section; thence along the east line of said Section 11 to the point of beginning.

C. Franchise Zone No. 3 shall consist of all of the unincorporated area of the county described as:

Beginning at the northwest corner of Section 5, Township 25 South, Range 32 East, MDM, and a point on the north boundary line of the county of Kern; thence easterly on and along the said north boundary line a distance of 52 miles to the northeast corner of Section 2, Township 25 South, Range 40 East, MDB&M, and the northeast corner of the county of Kern; thence south on and along the East boundary of the county of Kern to the southeast corner of Section 32, Township 9 North, Range 7 West, SBM, and the southeast corner of the county of Kern; thence westerly and northwesterly on and along the Southwest boundary of the county of Kern a distance of 122 miles, more or less, to the northwest corner of Section 20, Township 11 North, Range 24 West, SBM; thence east along section lines 11 miles to the northwest corner of Section 19, Township 11 North, Range 22 West, SBM; thence north along the west line of Section 18, Township 11 North, Range 22 West, SBM, to the northwest corner thereof; thence east along section lines 17 miles to the northwest corner of Section 13, Township 11 North, Range 20 West, SBM; thence north along the west line of Section 12, Township 11 North, Range 20 West, SBM, to the northwest corner thereof; thence west along the south line of Section 2, Township 11 North, Range 20 West, SBM, to the southwest corner thereof; thence north along section lines 2½ miles, more or less, to the northwest corner of Section 26, Township 12 North, Range 20 North, SBM, and a point on the Eighth Standard Parallel; thence east along said Standard Parallel and easterly extension thereof 9½ miles to an intersection with a line running southwesterly from ET No. 13 of the Rancho El Tejon; thence along said line northeasterly to ET No. 13, being a point on the boundary of Rancho El Tejon; thence northeasterly along said Rancho boundary to the northwest corner of Section 19, Township 31 South, Range 31 East, MDM; thence north 8 miles to the southeast corner of Section 1, Township 30 South, Range 30 East, MDM, and ET No. 17 on Rancho El Tejon boundary; thence continuing north along the east line of said Section 1 to the northeast corner thereof; thence east along section lines 6 miles to the northeast corner of Section 1, Township 30 South, Range 31 East, MDM; thence north along section lines 6 miles to the northwest corner of Section 6, Township 29 South, Range 31 East MDM, and a point on the Seventh Standard Parallel; thence along said Standard Parallel ½ mile, more or less, to the southwest corner of Section 31, Township 28 South, Range 32 East, MDM; thence north along section lines 6 miles to the northwest corner of Section 6, Township 28 South, Range 32 East, MDM; thence east along the north line of said Section 6 to the northeast corner thereof; thence north along section lines 18 miles, more or less, to the northwest corner of Section 5, Township 25 South, Range 32 East, MDM, to the point of beginning.

(Ord. G-6921 § 2 (part), 2002)

A. Except as provided in this section, no person shall conduct, participate and carry on the business of the collection, disposal or destruction of discarded materials or otherwise to go about from house to house or place to place collecting such discarded materials within the franchise zones of the county, as those zones are described in Section 5.36.030 of this chapter, unless such person has been granted a franchise to do so by the board of supervisors of the county pursuant to the provisions of this chapter.

B. Notwithstanding subsection (A) above, any person may engage in or provide discarded material handling services which are related solely to one of the types of discarded materials set forth below without such person being required to have or maintain a franchise:

1. Abandoned vehicles and parts thereof;

2. Ashes;

3. Demolition and construction wastes where such waste is being removed as part of the abatement of a public nuisance or dangerous condition at the direction of the county;

4. Hauling construction and demolition waste where it is performed as part of a remodeling, repair, demolition, cleanup or construction project for a property owner and the contractor is using his own equipment and employees;

5. Dewatered, treated or chemically fixed sewage sludge;

6. The cleaning, removal, hauling and disposal of septic waste or sewage from septic systems, cesspools, dry wells, sewage wells, vaults, pits, privies, grease traps, vessels or any containment device used for the storage, holding or disposal of septage, sewage, offal or grease.

C. Notwithstanding the provisions of subsection (B)(3) herein, whenever the county contracts for the removal of demolition and construction wastes where such waste is being removed as part of the abatement of a public nuisance or dangerous condition, the county bid documents will require the use of the local franchise hauler whenever the primary contractor subcontracts for hauling services, unless the primary contractor provides evidence that the franchise hauler declines to participate as a subcontractor.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-7875, § 2, 6-2-09; Ord. No. G-9091, § 3, 3-15-22)

A. The award by the board of supervisors of a franchise for discarded materials handling shall be evidenced by approval and execution of a franchise agreement. The board of supervisors shall not approve a franchise agreement with any person or entity that operates any class or type of solid waste handling facility that is owned by the county of Kern and located in the county of Kern. The board of supervisors may award exclusive or non-exclusive discarded materials handling franchises, with or without competitive bidding, through individual franchise agreements. A franchise agreement shall be granted by the board of supervisors when it determines that public convenience and necessity are served by the award of the franchise, and where a partially or wholly exclusive franchise is awarded without competitive bidding, that the granting of such a franchise is in the best interests of county residents based on the health, safety and well-being of residents in the franchise area where the partially or wholly exclusive franchise is awarded.

B. Each franchise agreement shall provide for the terms and conditions by which the grantee shall be obligated to provide services. Nonperformance of the terms and conditions of the franchise agreement may result in financial and operating penalties to the grantee and may result in the loss or limitation of the grantee's right to provide services. Each franchise agreement shall specify the specific discarded materials handling services to be provided by the grantee.

C. Each franchise agreement shall provide for the following:

1. The specific collection and handling services to be provided by grantee, describing the type and frequency of service to customers;

2. The franchise area(s), describing the geographical territory in which the grantee has been provided a right to perform services;

3. Discarded materials disposal requirements providing for the grantee to assume responsibility for disposal of discarded materials;

4. Development, implementation and compliance with a source separated recyclables and organic materials plan for residential and commercial wastes in order to meet diversion and recycling goals and program requirements as determined by the applicable law;

5. Minimum operating assets delineating the vehicles and equipment standards for grantee in the performance of collection services;

6. Rates and a rate review process to provide for basic rates for services and a process for periodic adjustment by the board of supervisors. The actual rates shall be set forth as an exhibit to the franchise agreement and may be subject to change by the board of supervisors in accordance with Section 5.36.090;

7. Requirements providing for liability and other insurance requirements for the protection of public health, safety and welfare;

8. Public access to the grantee and a complaint process for customers;

9. Standards for determining conditions of default and remedies for breach of the franchise agreement;

10. Reporting requirements relating to the quantities, types, volumes, nature and location of discarded materials collected, transported and disposed as outlined by the county or as determined by the applicable law;

11. Any requirements for the conduct of business as a separate venture or business from grantee's other businesses;

12. A prohibition on the franchisee operating any class or type of solid waste handling facility that is owned by the county of Kern and located in the county of Kern;

13. Other terms and conditions determined to be necessary by the board of supervisors for the public health, safety and welfare.

D. In order to qualify for the award of a franchise, an applicant must:

1. Demonstrate a minimum of three (3) years' experience in providing substantially the same type, class and extent of services as those for which the franchise is sought; and

2. Not operate any class or type of solid waste handling facility that is owned by the county of Kern and located in the county of Kern.

3. Provide to the director the information demonstrating the applicant's experience, skill and reputation for conducting its discarded materials management operations in a safe, effective and responsible fashion and the financial resources to maintain the required equipment and services. Such information shall include but is not limited to:

a. Audited financial statements of the applicant's operations for the immediately preceding three (3) years;

b. Demonstrated experience in discarded materials management on a scale equal to or exceeding the scale of operations proposed to be conducted by the applicant;

c. Applicant's record with respect to compliance with federal, state or local environmental laws or regulations;

d. Applicant's record with respect to compliance with federal, state or local laws or regulations regulating the collection and disposal of discarded materials; and

e. Any other information required by the county to ensure the applicant can fulfill the terms of a franchise agreement in a timely, safe and effective manner.

The applicant shall agree to pay the county its reasonable expenses, including attorneys' fees and other professional services fees to investigate the suitability of any applicant and to review and finalize any documentation required as a condition for approving and granting a franchise agreement.

4. If the county and the grantee so agree, the franchise agreement may specify the county resource management facility or facilities to which the grantee will transport the discarded material collected pursuant to discarded material handling services provided under the franchise agreement.

5. If the county and the grantee so agree, the franchise agreement may allow the county to specify a different or additional county resource management facility to which the grantee will transport the discarded materials collected pursuant to the discarded materials handling services provided under the franchise agreement.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-8890, §§ 2—4, 12-17-19; Ord. No. G-9091, § 4, 3-15-22)

A. There is hereby established a solid waste administration fee to be paid by each franchise garbage hauler authorized to engage in solid waste handling under the authority of this chapter.

B. The amount of the solid waste administration fee shall be established by the board of supervisors on an annual basis and shall be based on the actual costs, both direct and indirect, incurred by the public works department in administering the franchise garbage hauler agreements.

C. The solid waste administration fee for each hauler will be based on the total number of residential units and non-residential units serviced by each franchise garbage hauler. Residential units are defined as the number of separate residences on each parcel serviced by the hauler including both single family dwellings and multiple family dwellings; e.g., single family home = one (1) unit, duplex = two (2) units, triplex = three (3) units, apartment complex with thirty-one (31) apartments = thirty-one (31) units and so on. Non-residential accounts include commercial, industrial, agricultural, institutional and governmental locations. Non-residential units are defined as the number of separate pickup locations for each non-residential account serviced by the hauler. The total number of residential and non-residential units serviced by each franchise garbage hauler will be determined annually by the public works department for a representative one-month period. Each hauler's total fee shall be the total number of residential units and non-residential units multiplied by the monthly solid waste administration fee multiplied by twelve (12) months.

D. The amount of the solid waste administration fee shall be set annually. The public works department shall submit a report to the board of supervisors detailing the actual costs for the prior fiscal year and the proposed amount of the fee and shall request that the board of supervisors schedule a public hearing for consideration of the matter, if necessary.

E. All franchise garbage haulers are subject to the solid waste administration fee. The public works department will deduct the fee monthly for all haulers that service tax roll billed properties. For all residential non-tax roll billed and non-residential non-tax roll billed properties, the public works department will invoice the hauler within thirty (30) days of the end of each quarter, which shall be due and payable to the public works department upon receipt.

F. Failure to submit such payment within ninety (90) days after the due date shall be an event of default under the franchise agreement, unless the director agrees in writing to extend the time for payment.

(Ord. G-7014 § 3, 2003; Ord. No. G-8172, § 2, 6-28-11; Ord. No. G-8244, § 2, 1-10-12; Ord. No. G-8976, § 3, 9-22-20)

Whenever any new application is filed under the provisions of this chapter for the award of a franchise to serve an area adjacent to, but distinct from, an area for which a franchise already exists, the board of supervisors, after due investigation, may find and determine as a matter of fact that there does not exist in the area for which such new application is made a sufficient number of potential sources of discarded materials disposal to justify the award of a new and separate franchise distinct from a franchise already existing in an adjacent area. Predicated upon any such finding and determination, the board of supervisors may deny the application for the award of such new franchise upon the grounds that such new franchise is not economically or financially feasible.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-9091, § 5, 3-15-22)

A. Whenever a need for discarded materials collection service exists in any non-franchise area adjacent to, but distinct from, an area for which a franchise has been awarded under the provisions of this chapter, but in the event that said need is found and determined by the board of supervisors not to economically or financially justify the award of a new and separate franchise for such adjacent non-franchise area, the holder of a franchise in an area adjacent to said non-franchise area may apply to the board of supervisors for a permit to furnish discarded materials collection service in such non-franchise area. The board of supervisors may grant such permit to such applicant upon such terms and conditions as the board shall determine.

B. Any such permit granted under the provisions of this section may be terminated by the board of supervisors at any time in either of the following events:

1. Failure of the permittee to comply with the terms and conditions of the permit; or

2. A finding and determination by the board of supervisors that a franchise should be awarded for the area served by the permittee.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-9091, § 6, 3-15-22)

Unless otherwise provided in a franchise agreement, no franchise may be transferred, sold, hypothecated, leased, or assigned, nor shall any of the rights or privileges granted thereunder be transferred, sold, hypothecated, leased, or assigned, either in whole or in part, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person without the prior written consent of the board of supervisors. The consideration of a request for the board of supervisors' consent shall be within the board's exercise of its discretionary legislative power.

A. The term "assignment" includes any dissolution, merger, consolidation, or other reorganization of the grantee, which results in a change of control of the grantee, or the sale or other transfer of a controlling percentage of grantee's capital stock to a person or entity not a shareholder, immediate family member, management employee, or principal of the grantee. "Immediate family members" means a person's issue, siblings, parents, grandchildren, aunts, uncles, nieces, and nephews.

B. "Change in control" means any sale, transfer, or acquisition of grantee. If grantee is a corporation, any acquisition of more than ten percent (10%) of grantee's voting stock by any entity, person, or group of persons who already owns less than fifty percent (50%) of the voting stock shall be deemed a change in control; provided, however, any transfer of ownership of any or all of the stock of grantee to an immediate family member of grantee shall not constitute a change in control.

C. Any assignment or change in control of the grantee occurring without the prior written consent of the board of supervisors shall constitute a breach of the grant of the franchise and the franchise shall be deemed to be terminated forthwith, without suit or other proceeding.

D. Notwithstanding any other provision of this section, grantee, if grantee is a corporation, may, without the consent of the board of supervisors, transfer ownership of grantee's capital stock to an employee stock option plan (ESOP) or to current management employees of grantee or to a member of the immediate family of the shareholders of grantee.

E. Each or any of the following acts shall be considered an involuntary assignment providing the board of supervisors with the right to elect to terminate the franchise forthwith, without suit or other proceeding:

1. If grantee is or becomes insolvent, or makes an assignment for the benefit of creditors;

2. If a writ of attachment or execution is levied on the operating assets of the franchise such that it would affect grantee's ability to perform; and

3. If any proceedings to which grantee is a party, a receiver is appointed with authority to take possession of grantee's property such that it would affect grantee's ability to perform its duties.

F. The grantee shall provide written notice to the county of any request to assign or transfer the franchise. The notice of intention to assign or transfer the franchise agreement shall contain a statement of the allocation of dollars in the consideration to be paid by the assignee to the grantee for: (1) the franchise; (2) goodwill; (3) equipment; and (4) any other asset transfer which has any connection with said assignment, all as agreed upon by the grantee and the assignee. The notice shall also contain a statement showing the method of payment of the consideration and whether the grantee proposes to hold some security interest as security for the payment of the unpaid balance of the consideration.

The grantee shall provide the county with information regarding the general business qualifications of the proposed assignee, the proposed assignee's ability to perform the franchise services, and a statement of the proposed assignee's financial resources, plus any other information requested by the county that reasonably reflects on the likelihood the proposed assignee will successfully perform the franchise services.

Within sixty (60) days after receipt of the information requested by the County, the County shall either consent or withhold its consent to the request for assignment or transfer of the franchise. The sixty (60) day response period may be extended by no more than thirty (30) days should circumstances reasonably warrant the extension.

G. The proposed transferee must be shown, by credible and sufficient evidence, to be qualified, by financial condition, background, and experience to be able to fully assume and satisfactorily perform all of the grantee's obligations. The proposed assignment must be shown to be in the best interests of the public health, safety, and general welfare of the county.

H. This section shall not apply to any dissolution, sale, transfer, consolidation, or other reorganization of the grantee whereby there is no change in control of the grantee, or the sale or other transfer of a controlling percentage of the grantee's capital stock is to a person who is a shareholder, immediate family member, or corporate-owned by family trust of the grantee.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-8782, § 2, 6-5-18)

Grantee shall not charge more for discarded material handling services than the rates adopted by the board of supervisors and as provided in the franchise agreement. The board of supervisors may periodically adjust the schedule of maximum rates as it deems necessary and consistent with the provisions of the franchise agreement, after notice to the grantee and after public hearing.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-9091, § 7, 3-15-22)

Unless otherwise provided in the franchise agreement, each grantee shall at all times during the life of said franchise maintain on file with the clerk of the board of supervisors a performance bond in a form approved by the county counsel. Such bond shall run to the county of Kern and shall be in an amount as listed below:

A. Two thousand five hundred dollars ($2,500.00) for any grantee not described below;

B. Ten thousand dollars ($10,000.00) for a grantee using at least three (3) but not more than six (6) vehicles rated one (1) ton or more in carrying capacity for the collection and transportation of discarded materials;

C. Fifteen thousand dollars ($15,000.00) for a grantee using at least seven (7) but not more than ten (10) vehicles rated one (1) ton or more in carrying capacity for the collection and transportation of discarded materials;

D. Twenty thousand dollars ($20,000.00) for a grantee using eleven (11) or more vehicles rated one (1) ton or more in carrying capacity for the collection and transportation of discarded materials; but

E. If the public works director determines a grantee has at least seventy-five percent (75%) of his service accounts within an incorporated city or cities within the county, he may make a recommendation to the board of supervisors that the bond be reduced to twenty percent (20%) of the grantee's gross receipts collected from his service accounts located in the unincorporated areas of the county. In any event the amount shall not be less than two thousand dollars ($2,000.00). Said bond shall be conditioned upon the grantee well and truly observing, fulfilling and performing each and every term and condition of the nonexclusive franchise.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-9091, § 8, 3-15-22)

Unless otherwise provided in the franchise agreement, each vehicle, other than those hauling roll-offs, which is used by a grantee for the collection and transportation of discarded materials under a franchise granted pursuant to the provisions of this chapter shall comply with the minimum specifications and requirements hereinafter set forth:

A. The vehicle shall be equipped with a metal or metal-lined bed designed to prevent the spillage of liquids on county roads and highways;

B. The vehicle shall be equipped with wooden or metal sides around the bed on all sides of the vehicle, having a minimum height of three (3) feet as measured from the floor of such bed;

C. The vehicle shall be equipped with canvas tarps or metal covers, which canvas tarps or metal covers shall be secured at all times while the vehicle is being used for the transportation of discarded materials, so as to prevent the spillage of garbage, waste, offal or debris on county roads or highways;

D. When separate containers are used in a vehicle for wet discarded materials, such separate containers shall contain suitable covers;

E. The vehicle shall be equipped with one (1) dustpan and one (1) broom;

F. The vehicle shall contain the name of the grantee, business address and phone number in legible letters on each side of the vehicle;

G. The vehicle shall comply with such other minimum specifications or requirements prescribed by the health officer and the chief of the fire department of the county as they shall determine necessary to protect the public health and safety; and

H. Each vehicle used by a grantee in the collection and transportation of discarded materials shall be emptied and cleaned at the end of each day of hauling, and no vehicle shall be parked overnight with discarded materials therein.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-9091, § 9, 3-15-22)

Ownership of discarded materials shall transfer to grantee at such time as the discarded material is abandoned and discarded by the discarded materials handling service subscriber of grantee in the location provided in Section 8.28.040 of this code.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-9091, § 10, 3-15-22)

A. Upon demand, every grantee shall permit the auditor-controller of the county to examine and audit the books of account of the grantee at any and all reasonable times.

B. Upon request, every grantee shall allow the director of the public works department to examine the bin fee reports, the accounts receivable and the invoices pertaining to any fee or charge approved by the board of supervisors for services related to the franchise. Such requests shall be made at reasonable times and with reasonable notice. Such examinations shall be kept confidential unless otherwise provided by law.

C. Upon request, every grantee shall allow the director of the public works department to examine information and reports regarding the quantities, types, volumes, weights, nature and location of discarded materials collected, transported and disposed or otherwise relating to county compliance by then applicable law.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-9091, § 11, 3-15-22)

Every grantee holding any franchise issued under the provisions of this chapter shall present to county a full and complete accounting of all gross income received during each calendar year. Such accounting shall be in writing and shall be subscribed and declared by the grantee's bookkeeper or accountant in the manner prescribed by Section 2015.5 of the Code of Civil Procedure. Said accounting shall be filed with the public works department within forty-five (45) days from and after the close of each calendar year.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-9091, § 12, 3-15-22)

In addition to the grounds provided in the franchise agreement, refusal of any grantee to permit the audit provided for by Section 5.36.130 or the refusal or failure of any grantee to invoice, collect and deliver to the county all bin disposal charges in the time and manner required in Kern County Ordinance No. G-5940, or in any other manner fail or refuse to comply with Kern County Ordinance No. G-5940, or the refusal or failure of any grantee to file the accounting prescribed by Section 5.36.140 shall be cause of the immediate revocation of any and all franchises held by the grantee so refusing or failing to comply with the requirements of said sections.

(Ord. G-6921 § 2 (part), 2002)

Any provisions of this chapter to the contrary notwithstanding, this chapter shall not apply to the disposal of sewage effected by means of any permanent installation of subterranean sewers and/or sewage disposal plants connected to any such sewer system.

(Ord. G-6921 § 2 (part), 2002)

The county reserves its right to regulate, or further regulate, aspects of discarded materials handling including, but not limited to, frequency of collections, means of collection and transportation, delivery point, level of services, charges and fees, nature, location, extent of providing discarded materials handling services, whether such services are to be by means of nonexclusive franchise, contract, license, permit or otherwise, either with or without competitive bidding, or, if in the opinion of the board of supervisors, the public health, safety and welfare so require, by partially exclusive, or wholly exclusive, franchise or contract, license, permit or otherwise, either with or without competitive bidding, authority to provide such discarded materials handling services may be granted under such terms and conditions as are prescribed by the board of supervisors pursuant to resolution or ordinance.

(Ord. G-6921 § 2 (part), 2002; Ord. No. G-9091, § 13, 3-15-22)