Hawaiian Gardens Municipal Code Ch. 5.77 Water System Franchise

Whenever in this chapter the words or phrases hereinafter in this section defined are used, it is intended that they have respective meanings assigned to them in the following definitions (unless, in the given instance, the context wherein they are used shall clearly import a different meaning):

City means the City of Hawaiian Gardens, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.

Franchise means and includes any authorization granted hereunder in terms of a franchise, privilege, permit, license or otherwise to lay and use pipes and appurtenances for transmitting and distributing water for any and all purposes under, along, across or upon the public streets.

Grantee means the corporation to which the franchise contemplated in this chapter is granted and its lawful successors or assigns.

Lay and use means to lay, construct, erect, install, operate, maintain, use, repair, replace, relocate or remove.

Pipes and appurtenances means pipes, pipelines and distribution and transmission systems consisting of mains, distribution and transmission pipes and other properties and facilities, together with services, traps, manholes and other necessary or appropriate appurtenances, for the purpose of transmitting and distributing water.

Streets means the public streets, ways, alleys and places, except State freeways, as the same now or may hereafter exist within said City.

(Ord. 382 § 1, 1991)

A. Extent of grant. The City of Hawaiian Gardens, California hereinafter also referred to as "City," hereby grants Southern California Water Company, a corporation, its successors and assigns, hereinafter, referred to as "grantee" subject to the terms and conditions herein contained, the right, franchise and privilege from time to time, for a period of ten years, from and after the effective date of the ordinance codified in this chapter, to install, operate, maintain, replace, change the size of, abandon in place and/or remove pipelines for the conveyance and distribution of water for domestic, commercial, industrial, irrigation, and agricultural purposes together with all appurtenances and service connections necessary or convenient to properly maintain and operate said pipelines, hereinafter collectively called "franchise property," within the public streets, highway, alleys, and other public ways or public property, within the area in the City as shown on the Exhibit "A" attached to the ordinance codified in this chapter, which is incorporated herein and made a part thereof.

B. The right, privilege and franchise, subject to each and all of the terms and conditions contained in this chapter, and pursuant to and upon the terms and conditions of Division 3, Chapter 2, of the Public Utilities Code of the State of California, be and the same is hereby granted to Southern California Water Company, a corporation organized and existing under and by virtue of the laws of the State, to lay and use pipes and appurtenances for transmitting and distributing water for any and all purposes, under, along, across or upon the streets.

C. The franchise granted hereunder shall not become effective until written acceptance thereof shall have been filed by the grantee thereof with the Clerk of the City. When so filed, such acceptance shall constitute a continuing agreement of the grantee that if and when the City shall thereafter annex or consolidate with, additional territory, any and all franchises, rights and privileges owned by the grantee therein shall likewise be deemed to be abandoned as to all streets within the limits of such territory.

(Ord. 382 § 1, 1991)

This grant is made in lieu of all other franchises, now owned by the grantee to lay and use pipes and appurtenances in the streets of the City for transmitting and distributing water.

This franchise will expire ten years from and after the effective date of the ordinance codified in this chapter unless sooner terminated, by ordinance, as herein provided. City reserves the right to terminate this franchise prior to its expiration date in the event:

A. Grantee fails to comply with any provision hereof; provided, however, that if such failure to comply shall be due to a cause beyond the reasonable control of grantee, the franchise shall not be so terminated. In the event grantee shall default in the performance of any of the terms, covenants or conditions herein and such default is curable, City shall give written notice to grantee to commence within ten days the work necessary to cure default, and if grantee fails to comply with such notice, City may terminate this franchise.

B. The time within which grantee is obligated to commence, perform or complete any obligation hereunder shall be extended for a period of time equal in duration to, and the commencement, performance or completion in the meantime shall be excused on account and for and during the period of, any delay caused by strikes, threats of strikes, lockouts, war, threats of war, insurrection, invasion, acts of God, calamities, violent action of the elements, fire, action or regulation of any government agency, law or ordinance, impossibility of obtaining materials, or other things beyond the reasonable control of grantee.

C. It is voluntarily surrendered or abandoned by the grantee.

D. Until the State or some municipal or public corporation thereunto duly authorized by law shall purchase by voluntary agreement or shall condemn and take under the power of eminent domain, all property actually used and useful in the exercise of this franchise and situated within the territorial limits of the State, municipal, or public corporation purchasing or condemning such property. The City shall give the grantee ten days' written notice of any termination proceedings.

(Ord. 382 § 1, 1991)

A. Location of franchise property. Grantee shall consult with the City as to the location of any franchise property installed hereunder.

B. Quality control. All franchise property installed and maintained hereunder shall be constructed in a good workmanlike manner and in compliance with rules and regulations set forth by the California Public Utilities Commission and the American Water Works Association standards.

C. Street excavations. Grantee shall have the right to make all necessary excavations in the streets for the purposes granted in this franchise, but nothing herein contained shall relieve grantee from the provisions of any ordinance or law that may be in force at the time, requiring permits to be obtained for street excavations before such work is commenced.

1. All excavations shall be made and refilled in strict compliance with all City ordinances that may be in effect at the time of the performance of the work and shall be so made as not to interfere unreasonably with the free use of the streets by the public.

2. Upon completion of the work for which street excavations are made, all portions of the streets which have been excavated or otherwise damaged by such excavation work shall be restored to as good condition as they were in before the commencement of such work, to the satisfaction of the City.

D. Emergency work. The grantee shall promptly repair any leaks or breaks in pipelines and conduits, and if any portion of any street shall be damaged by reason of breaks or leaks in any pipe or conduit constructed under this franchise, the grantee shall take immediate steps to repair any such damage and restore such street to as good condition as it was before such break or leak, to the satisfaction of the City. Such emergency repair of franchise property may be commenced without prior permit; provided, however, that grantee shall, by not later than the next normal working day, apply to the City for a permit authorizing such emergency work.

E. Changes required by public improvements. The City reserves the right to improve any street or portion thereof over and within the area for which said franchise is granted, including the change of grade, relocation of right-of-way, realignment of right-of-way, change in width, construction or reconstruction of any such street, or any portion thereof. Within 90 days after receipt by grantee of a notice in writing from the City of the fact that work is to be done pursuant to any such reserved right and specifying the general nature of the work and the area in which the same is to be performed, the grantee shall do all things necessary to protect its franchise property during the progress of such work and if ordered by the City the grantee shall disconnect, remove, or relocate its pipes and appurtenances within the street to such extent, in such manner, and for such period as shall be necessary to permit the performance of such work in an economical manner, and in accordance with the general recognized engineering and construction methods, and to permit the maintenance, operation and use of such public improvement of the street as so improved. All of such things shall be done and the work shall be performed by the grantee at its sole cost and expense.

1. Upon failure to do so, the City may cause said work to be completed and the grantee shall immediately pay for the same upon presentation of an itemized account of the cost thereof.

2. In the event that the City shall hereafter construct, install, reconstruct or repair any bridge or artificial support in or underlying any street in which any pipes or appurtenances of the grantee are located, and in the event that the cost thereof be increased in order to provide for the installation, maintenance or operation of any such pipes or appurtenances in or on the street area which said bridge or other artificial support covers or underlies, then the grantee shall pay to the City the full amount of such increase of cost, upon completion of such construction, installation or repair. Any damage done directly or indirectly to any such public improvement by the grantee, in exercising directly or indirectly any right, power or privilege under this franchise, or in performing any duty under or pursuant to the provisions of this franchise, shall be promptly repaired by said grantee, at its sole cost and expense.

3. In the event that any franchise property is required to be abandoned in or permanently removed from any street or portion thereof affected, the City shall approve such additional street location or locations as may be necessary to permit the installation of substitute facilities.

F. Abandonment of franchise property. The City Administrator upon such terms and conditions as he/she may determine, may give grantee permission to abandon, without removing, franchise property installed under the franchise. The length of a pipeline, abandoned with such permission, shall not be considered in calculating payments due under the franchise following the date the City Administrator, or his/her designated representative, has inspected and approved in writing the abandonment work. The ownership of all franchise property so abandoned shall thereafter vest in the City.

(Ord. 382 § 1, 1991)

Within six months following the date in which any franchise property has been installed, relocated, removed, or abandoned under this franchise, the grantee shall file a map or maps in such forms as may be required by the City Administrator showing the location, length and size of all such facilities so installed, relocated or abandoned.

(Ord. 382 § 1, 1991)

As consideration for the franchise hereby granted, for each full or fractional calendar year of the life of this franchise, the grantee shall pay to the City at the times hereinafter specified, in lawful money of the United States, a sum annually which shall be equivalent to two percent of the gross annual receipts of grantee arising from the use, operation or possession of this franchise. The grantee of this franchise shall file with the City Treasurer within three months after the expiration of the calendar year, or any fractional calendar year following the date of the granting of this franchise, and within three months after the expiration of each subsequent calendar year or fraction thereof, during which this franchise is in effect, a verified statement showing in detail for the term of the franchise in such calendar of fractional year, as the case may be, the annual gross receipts for said year.

With said statement the grantee shall pay to the City Treasurer, in lawful money of the United States, the aforesaid compensation. Any neglect, omission or refusal of said grantee to file said verified statement or to pay said compensation at the time or in the manner hereinbefore provided, which neglect, omission or refusal shall continue more than 15 days following notice thereof to the grantee by the City, shall be grounds for the declaration of the forfeiture of this franchise and of all rights of the grantee hereunder. The City Treasurer shall have the power and authority to reasonably dispute any verified statement and to require additional proof with respect to any matters set forth in said verified statement.

(Ord. 382 § 1, 1991)

Grantee, by the acceptance or use of the franchise hereby granted, agrees to indemnify and hold harmless the City, its officers, from any and all liability for damage proximately resulting from any operations under this franchise, and be liable to the City for all damages proximately resulting from the failure of said grantee well and faithfully to observe and perform each and every provision of this franchise and each and every applicable provision of Division 3, Chapter 2 of the Public Utilities Code of the State of California.

(Ord. 382 § 1, 1991)

Grantee shall not permit any right or privilege granted by the franchise to be exercised by another, nor shall the franchise or any interest therein or any right or privilege thereunder be in whole or in part sold, transferred, leased, assigned, or disposed unless such transaction is accomplished as provided by the California Public Utilities Commission.

(Ord. 382 § 1, 1991)

The franchise granted hereunder shall not in any way to any extent impair or affect the right of the City to acquire the property of the grantee hereof either by purchase or through the exercise of the right of eminent domain, and nothing herein contained shall be construed to contract away or to modify or to abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to the grantee or any value before any court or other public authority in any proceeding of any character.

(Ord. 382 § 1, 1991)

This franchise is granted and shall be held and enjoyed only upon the terms and conditions herein contained, and the grantee shall, within 30 days after the adoption of the ordinance codified in this chapter granting said franchise, file with the City Clerk a written acceptance of such terms and conditions.

(Ord. 382 § 1, 1991)

The grantee shall pay to the City a sum of money sufficient to reimburse it for all publication and posting expenses incurred by it in connection with the granting of this franchise; such payment to be made within 90 days after the City shall furnish such grantee with a written statement of such expenses.

(Ord. 382 § 1, 1991)