Chapter 27 — UTILITIES›Article III — GAS FRANCHISE
Article III — GAS FRANCHISE
Los Gatos Municipal Code · 2026-09 edition · updated 2026-10-02 · Los Gatos
Sec. 27.30.010. - Definitions.¶
For the purposes of this article, the following words and phrases shall have the meanings respectively ascribed to them by this section:
Gas. Natural or artificial gas, or a mixture of natural and artificial gas.
Grantee. Pacific Gas and Electric Company, and its lawful successors or assigns.
Lay and use. To lay, construct, erect, install, operate, maintain, use, repair or replace.
Pipes and appurtenances. Pipes, pipelines, mains, services, traps, vents, vaults, manholes, meters, gauges, regulators, valves, conduits, appliances, attachments, appurtenances and any other property located or to be located in, upon, along, across, under or over the streets of the Town, and used or useful in the transmitting and distributing of gas.
Streets. The public streets, ways, lanes, alleys and places as the same now or hereafter exist within the Town.
(Code 1968, § 32-7)
Cross reference— Definitions and rules of construction generally, § 1.10.015.
Sec. 27.30.015. - Franchise granted.¶
The franchise to lay and use in the streets of the Town all pipes and appurtenances for transmitting and distributing gas to the public for all purposes within the Town is hereby granted to Pacific Gas and Electric Company upon the terms and conditions set forth in this article.
(Code 1968, § 32-8)
Sec. 27.30.020. - Term of franchise.¶
The franchise granted pursuant to this article shall be indeterminate, that is to say such franchise shall endure in full force and effect until the same shall, with the consent of the Public Utilities Commission of the State be voluntarily surrendered or abandoned by the grantee, or 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 such franchise and situate in the territorial limits of the State, municipal or public corporation purchasing or condemning such property, or until such franchise shall be forfeited for noncompliance with its terms by the grantee.
(Code 1968, § 32-9)
Sec. 27.30.025. - Duty of grantee to replace, repair, etc., streets.¶
All public streets disturbed or excavated by the grantee under this article shall at the grantee's own cost and expense immediately be placed in as good order and condition as same were in before being so disturbed or excavated.
(Code 1968, § 32-10)
Sec. 27.30.030. - Payments to Town.¶
The grantee of the franchise granted pursuant to this article shall during the life of such franchise pay to the Town two (2) percent of the gross annual receipts of such grantee arising from the use, operation or possession thereof; provided, that such payment shall in no event be less than one (1) percent of the gross annual receipts of the grantee derived from the sale of gas within the Town. No percentage shall be paid for the first five (5) years succeeding the date of this franchise, but thereafter such percentage shall be payable annually; and in the event such payment shall not be made such franchise shall be forfeited; provided, that if such franchise is a renewal of a right already in existence the payment of such percentage of gross receipts shall begin at once.
(Code 1968, § 32-11)
Sec. 27.30.035. - Filing of statement of gross receipts; payment of fee.¶
The grantee shall file with the Town Clerk, within three (3) months after the expiration of the calendar year or fractional calendar year following the date of the granting hereof, and within three (3) months after the expiration of every calendar year thereafter, a duly verified statement showing in detail the total gross receipts of such grantee during the preceding calendar year or such fractional calendar year from the sale of gas within the Town. Such grantee shall pay to the Town within fifteen (15) days after the time for filing such statement, in lawful money of the United States, the percentage of its gross receipts as specified in section 27.30.030 for such calendar year or such fractional calendar year covered by such statement. Any neglect, omission or refusal by the grantee to file such verified statement, or to pay such percentage at the time and in the manner specified, shall be grounds for the declaration of a forfeiture of this franchise and of all rights of the grantee under this article.
(Code 1968, § 32-12)
Sec. 27.30.040. - Duties of grantee.¶
The grantee of the franchise granted pursuant to this article shall install and maintain all pipes and appurtenances in accordance and in conformity with all of the ordinances, rules and regulations theretofore or thereafter adopted by the Town Council in the exercise of its police powers and not in conflict with the paramount authority of the State, and as to State highways, subject to the provisions of general laws relating to the location and maintenance of such facilities therein; pay to the Town on demand the cost of all repairs to public property made necessary by any of the operations of the grantee under this franchise; indemnify and hold harmless the Town and its officers from any and all liability for damages proximately resulting from any operations under this franchise; remove or relocate without expense to the Town any facilities installed, used and maintained under this franchise if and when made necessary by any lawful change of grade, alignment or width of any public street, way, alley or place, including the construction of any subway or viaduct, by such town; and file with the Town Council within thirty (30) days after any sale, transfer, assignment or lease of the franchise, or any part thereof or any of the rights or privileges granted thereby, written evidence of the same certified to by the grantee or its duly authorized officers.
(Code 1968, § 32-13)
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