Alhambra Municipal Code Art. XXI Franchises

Plenary control over all primary and secondary uses of its streets and other public places is vested in the city. Franchises may be granted to persons, firms or corporations, upon such terms, conditions, restric-tions or limitations as the council may prescribe by ordinance; but no franchise shall be granted without reserving the city adequate compensation for the privilege conferred.

No person, firm or corporation shall ever exercise any franchise or privilege mentioned in this article except in so far as he or she or it may be entitled to do so by direct authority of the constitution of California or of the Constitution or laws of the United States, in, upon, over, under or along any street, or other public place in the city unless he or she or it shall have obtained a grant therefor in accordance with the provisions of this article and of this Charter.

Editor's note: This section was amended by the voters of the city on March 26, 1996.

The council shall have power to designate the terms, conditions and duration of all franchises, subject to the general laws of the state and the provisions of this Charter relating thereto; provided, that no exclusive franchise shall ever be granted.

The rights of the city in and to its streets, parks and all other public places, except as otherwise provided in this Charter, are hereby declared inalien-able.

The City may grant, for a period not to exceed fifty years, the right and franchise to use the public streets and highways of the City for the purpose of operating street, suburban or interurban railroads and for constructing thereon or laying thereunder telegraph, telephone, and telecommunications wires and cables, conduits and water mains and service pipes, in, upon, over, under or along any street, highway or other public places and may grant franchises for railroads, other than street, suburban or interurban, when authorized so to do by a vote of the electors. The City may grant, for an indeterminate period of time or for such specific term as may be determined by the City, the right and franchise to any person, firm or corporation, whether operating under an existing franchise or not, to use or to construct and use, poles, wires, conduit and appur-tenances for transmitting and distributing electricity for all purposes, or to use, or to lay and use, pipes and appurtenances for transmitting and distributing gas for any and all purposes, under, along, across or upon the public streets, ways, alleys and places within the City.

Editor's note: This section of the Charter was amended by Assembly Concurrent Resolution No. 162, which was approved by the voters of the city, June 8, 1965; this section was further amended by the voters of the city March 5, 2002.

The grant of every franchise or privilege shall be subject to the right of the city, whether reserved in such grant or not, to make all regulations which shall be necessary to secure in the most ample manner the safety, welfare and accommodation of the public, including among other things, the right to pass and enforce ordinances to protect the public from danger or inconvenience in the operation of any work or business authorized by the grant of the franchise and the right to make and enforce all such regulations as shall be reasonably necessary to secure adequate, sufficient and proper service and accommodations for the people and insure their comfort and convenience.

Editor's note: This section was repealed by the electorate on March 26, 1996.

Every ordinance granting any franchise shall provide that at the expiration of the period for which the franchise was granted, or at any time before as stated in the ordinance granting such franchise, the city, at its election and upon payment of the physical valuation therefor, to be made in the manner provided in the ordinance making such grant, may purchase and take over to itself the property and plant operated under said franchise in its entirety, but in no case shall such valuation include any compensation for franchise or goodwill other than the amount originally paid to the City for such franchise. Or it may be provided in the ordinance granting any fran-chise that the property and plant operated under said franchise in its entirety shall, at the expiration of the period for which the franchise was granted, become the property of the City, without compensation to the owner of the franchise. The grantee, his or her successor or assign, of any franchise under this article shall be required in said ordinance to file, not later than March 1st of each calendar year, with the City Clerk an itemized statement of the expenditures for new construction during the calendar year next preceding the filing of said statement; and said statement shall be verified by the oaths of the president and secretary of the grantee, his or her successor or assign, if such grantee, successor or assign be a corporation, or by the oaths of a majority of the members of the firm, if the said grantee, successor or assign be a firm or by his or her oath if the grantee, his or her successor or assign be a person. No cost of maintenance, operation, repair or renewal shall be considered to be a cost of construc-tion.

Editor's note: This section of the Charter was amended by Assembly Concurrent Resolution No. 162 which was approved by the voters of the city, June 8, 1965. This section was further amended by the voters of the city on March 26, 1996.

Every ordinance granting any franchise shall further provide that upon the payment by the city of the physical valuation in the manner provided in said ordinance making such grant, the plant and property operated under said franchise in its entirety shall become the property of the city by virtue of the grant in payment thereunder, and without the execution of any instrument or conveyance. Or in case it is provided in the ordinance granting any franchise that the property and plant operated under said franchise in its entirety, shall, at the expiration of the period for which it was granted, become the property of the city without any compensation to the owner of the franchise, the property and plant operated under said franchise in its entirety shall then become the property of the city by virtue of the grant and without the execution of any instrument or conveyance.

Applications for a franchise shall be in writing and filed with the city clerk, and shall state the nature of the franchise applied for and the term desired, and shall be accompanied by a cash deposit of five thousand dollars, which sum shall be retained by the city for its expenses in evaluating the application (including the fees of any professional consultants the city deems necessary), said expenses to be paid in full by the successful bidder. Every application for a franchise under this article shall, in addition to being accompanied by the sum of five thousand dollars, be accompanied by the sum of ten thousand dollars, or by a certified check for that amount, payable to the city clerk, as a guaranty of good faith, which sum of ten thousand dollars, or certified check, shall be returned only on execution of a bond as hereinafter provided. Every application for a franchise under this article shall state either the percentage to be annually paid to the city of the gross receipts generated by the franchise, or the annual compensation to be paid to the city.

If, after the filing of such application accompanied by the original cash deposit, the council deems it desirable to grant the same, it shall set such application for hearing and advertise the fact and the time of such hearing, together with a brief description of the franchise applied for, and that it proposes to grant the same, in a daily newspaper published in said city, for not less than ten days before the hearing. At the conclusion of said hearing, the council may grant the franchise by ordinance.

In the event said franchise is awarded, and within such reasonable time thereafter as the council shall allow, the franchisee shall cause to be executed a bond to the city in a sum to be fixed by the council, but not less than ten thousand dollars, and with sufficient sureties, approved by the mayor, after approval thereof as to form by the city attorney, conditioned that such franchisee will faithfully execute the conditions of such franchise upon his or her part to be performed. After such bond is received, all deposits made shall be returned to the person making them; provided that the amounts expended by the city for its expenses in connection therewith shall be deducted from the deposits made by the franchisee and retained by the city to reimburse itself for the expenses so incurred. If the franchise is not awarded, all deposits made shall be returned to the person making them, provided that the amounts expended by the city for its expenses in connection therewith shall be deducted from the deposits made by the franchisee and retained by the city to reimburse itself for the expenses so incurred.

Every franchise shall have inserted therein a proviso that it shall be forfeited in the event that the specified percentage of the gross receipts or the annual compensation required by the franchise is not annually paid to the city at a date set by the council in the ordinance granting the franchise.

Editor's note: This section was amended by the voters of the city on March 26, 1996; this section was further amended by the voters of the city on March 5, 2002.

As an alternative to the provisions of Section 157 of Article XXI of this Charter, the City may grant a franchise to any person, firm or corporation, whether operating under an existing franchise or not, to use or to construct and use poles, wires, conduits and appur-tenances for transmitting and distributing electricity for all purposes, or to use or to lay and use pipes and appurtenances for transmitting and distributing gas for any and all purposes, under, along, across or upon the public streets, ways, alleys and places within the City by complying with the provisions of the Fran-chise Act of 1937 of the State of California as that act may now exist or as said act may from time to time be amended hereafter.

Editor's note: This section of the Charter was added by Assembly Concurrent Resolution No. 162 which was approved by the voters of the city, June 8, 1965.

Construction work under any franchise granted, shall be commenced in good faith within not more than four months from the date of the taking effect of the ordinance granting such franchise, and if not so commenced within said time, said franchise shall be forfeited. Work under any franchise so granted shall be prosecuted with reasonable diligence to completion and shall be completed within the time fixed for such completion in the ordinance granting the same, and if not so completed within said time, the same shall be forfeited; provided, that the council may by resolution extend the time for the completion thereof as they may deem advisable.

No franchise granted by the city shall be leased, assigned or otherwise alienated without the express consent of the council entered upon its minutes, and no dealings with a lessee or assignee on the part of the city to require the performance of any act or payment of any compensation by the lessee or assignee shall be deemed to operate as such consent; provided, that nothing therein shall be construed to prevent the owner of such franchise from including it in a mortgage or trust deed executed for the purpose of obtaining money for corporate objects.

Every franchise granted shall provide that, and the council shall have authority to examine the books, vouchers and records of any person, firm or corpora-tion exercising or enjoying any franchise or privilege granted by the city, and it shall be the duty of every person, firm, or corporation exercising any franchise granted by the city, to file with the city clerk annually as provided by said franchise a report of its business during the preceding year: such report shall contain a statement of the gross receipts arising from the business done by such person, firm or corpora-tion, within said city, and such report shall contain such further facts as may be required by the council concerning the character and amount of business done, the amount and source of receipts and expenses connected therewith, during the period to be covered.

Every franchise shall provide for the determination and forfeiture thereof for any breach or failure to comply with any of its terms, limitations; or conditions imposed by this Charter, or ordinance granting the same.

No officer or employee of the city shall either directly or indirectly, receive any transportation, electric, gas, or telegraph, telephone, or telecommunications service, or other thing or commodity, as a gratuity from any person, firm or corporation, operating under any franchise granted by the city, nor shall he or she receive the same unless he or she pays therefor the same rate as that charged other patrons or consumers similarly situated, except as hereinbefore in this article provided.

Editor's note: This section was amended by the voters of the city on March 26, 1996; this section was further amended by the voters of the city on March 5, 2002.

Every grant of a franchise for railroad purposes shall provide for strict compliance by the owner thereof of all the provisions of subdivision 61 of section 61 of this Charter.