§ 126-120. Application for transfer of Franchise.

When a Franchisee proposes to sell, transfer or assign its Franchise, facilities or any portion of those facilities, or there is a change in the majority organizational control, the Franchisee shall apply to the County for authorization of the transactions and shall receive the approval of the Board prior to such selling, transferring or assignment being effective.

(a)

Minimum filing requirements. The Franchisee shall file with County Staff an original application and ten copies, which shall provide the following:

(1)

The full name and address of the Franchisee that is selling, transferring or assigning (Transferor);

(2)

The full name and address of the buyer, transferee or assignee (Transferee);

(3)

The type of business organization of the Transferee, i.e., corporation, limited liability corporation, partnership, limited partnership, individual proprietorship, association, etcetera;

(4)

The names and addresses of corporate officers, directors or managers, as applicable, of Transferee;

(5)

Current balance sheet and income statement of the Transferee and if the Transferee has annual Gross Receipts in excess of $200,000.00, the most recent Audited Financial Statement;

(6)

The date and state of incorporation or organization of the Transferee; copies of the corporate charter or other instrument of organization of the Transferee;

(7)

The names and locations of any other Public Utilities owned by the Transferee;

(8)

The date on which the proposed transfer is expected to be accomplished;

(9)

The names and addresses of the proposed principal owners, stockholders, members, or partners who have ten percent or more of the voting rights or the right to participate in ten percent or more of the profit from the Transferee;

(10)

A copy of the contract for sale or transfer, which should include or provide for the disposition of:

a.

Customer deposits and accumulated interest thereon;

b.

Any guaranteed revenue contracts;

c.

Developer agreements;

e.

Customer advances;

f.

Debt of the Transferor;

g.

Leases;

h.

Purchase price, if any, and terms of payment; and

i.

Assets purchased and liabilities assumed (or not assumed);

(11)

A statement from the Transferee as to the financing of the transfer, if applicable;

(12)

A statement of facts to demonstrate that the transfer is in the public interest, including a summary of the Transferee's experience in water and/or wastewater utility operations and a showing of the Transferee's financial ability to provide the service;

(13)

The Rate Base of the Transferor as of the proposed date of transfer;

(14)

The proposed Rate Base of the Transferee following the transfer if the purchase is accomplished by a transfer of assets;

(15)

If the transfer is an asset transfer and an Acquisition Adjustment is requested, a statement setting out the reasons for the inclusion of an Acquisition Adjustment. No Acquisition Adjustment will be considered by the Board for a stock transfer; and

(16)

A statement by the Transferor that it will furnish the Transferee with all the books and records of the Franchisee, or duplicates thereof.

(17)

A detailed schedule of all fixed assets of the Transferor as of the date of the current balance sheet, depreciated using the straight-line method, based upon original cost to the owner first dedicating them to public service. The detailed schedule of fixed assets shall include each utility asset and include the date placed in service, its original cost, its accumulated depreciation and its depreciable life; and

(18)

A detailed schedule of contributions in aid of construction of the Transferor as of the date of the current balance sheet, its accumulated amortization and its amortization period,

(b)

Board determinations. Following a determination by County Staff that the application is complete, the Board may grant, deny or amend an application for transfer of Franchise upon such conditions it deems proper, and after requiring such further information as it deems necessary. Before any transfer is granted, the Board shall consider the following:

(1)

That the application is made in good faith;

(2)

That the proposed transfer is in the public interest;

(3)

That the Transferor is in regulatory compliance; and

(4)

The economic impact, if any, on Transferor's existing customer base.

(c)

Transfers to homeowners association. Transfers to homeowners associations (or similar groups or organizations) shall be subject to the following additional provisions:

(1)

The Transferee shall be a Nonprofit Corporation organized under the laws of the State of Florida. The members of the homeowners association (or similar groups or organizations) shall be users of the service or services of the Franchisee; and

(2)

The members of the homeowners association (or similar groups or organizations) shall have voted to acquire the Franchise not more than 90 days prior to the filing of the application for transfer. The majority vote required for approval shall be that provided in the corporate charter or bylaws.

(Ord. No. 2016-041, § 2, 9-21-2016)