Chapter 15.32

GAS AND ELECTRIC FRANCHISES

Sections:

• 15.32.020 Council power to grant franchise.

• 15.32.030 Application for franchise - Information required.

• 15.32.040 Notice of resolution of intention to grant franchise.

• 15.32.050 Conditions for granting of franchise - Filing of protests.

• 15.32.060 Rights conferred by franchise - Limitations - Term.

• 15.32.070 Written acceptance required.

• 15.32.080 Eminent domain not affected.

• 15.32.090 Duties of grantee.

• 15.32.100 City council discretion - Scope.

• 15.32.110 Publication expenses.

• 15.32.120 Noncompliance - Franchise forfeiture conditions.

• A. The city, having heretofore (by the adoption of Section 2a of Article I of its Charter) elected

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to take advantage of the provisions of the 1914 amendment to Section 6 of Art. XI of the Constitution of the state of California, giving cities home rule as to municipal affairs, and the granting of franchises of the character hereinafter referred to being within the classification municipal affairs," hereby declares that the following, together with the provisions of said Charter, shall constitute the exclusive procedure applicable to the granting of gas and electric franchises by the city, including resettlement franchises in lieu of existing franchises or claims.

• B. Pursuant to the provisions of Section 2a of Article I of its Charter, the city hereby elects to have the granting of franchises governed by this chapter, and any ordinances amendatory thereof, together with the applicable provisions of its Charter, instead of by the general laws of the state.

(Prior code § 10100.)

The council is hereby empowered to grant a franchise to any person, whether operating under any existing franchise or not, to construct or use poles, wires, conduits or appurtenances for transmitting and distributing electricity for any purpose, or to lay or use pipes or appurtenances for transmitting and distributing gas for any purpose across the public streets, as the same now or may hereafter exist within said city, upon terms as are provided in the applicable provisions of the Charter, and may in such franchise impose other additional terms not in conflict with said Charter or this chapter, whether governmental or contractual in character, as in the judgment of the council are to the public interest. (Prior code § 10101.)

An applicant for any franchise mentioned above shall file with the council a verified application which shall state:

• A. The name of the applicant;

• B. The purpose and term, whether definite or indeterminate, for which the franchise shall be desired;

• C. The amounts or percentages applicant, if granted the franchise, proposes to pay to the city during the life of such franchise; and

• D. Any other terms or conditions that the applicant may desire.

(Prior code § 10102.)

Upon receipt of said application, the council may pass its resolution declaring its intention to grant the franchise applied for, stating the character of the same, setting forth a notice of the day, hour and place when and where any and all persons having any objection to the granting thereof may appear before the council and be heard thereon, and directing the city clerk to publish said notice at least twice, within five days after the passage of the resolution, in a newspaper of general circulation within the city. The time fixed for such hearing shall be not less than ten days nor more than twenty-five days after the date of the adoption of said resolution.

Said notice shall state the amounts or percentages specified in the application, that the grantee of said franchise and its successors and assigns will, during the life of said franchise, pay to the city. Said notice shall also designate the term, whether definite or indeterminate, for which the franchise is proposed to be granted. (Prior code § 10103.)

• A. At any time not later than the hour set for the hearing of objections, any person interested may make written protest stating objections against the granting of such franchise. Such protest must be signed by the protestant and be delivered to the city clerk. At the time set for hearing objections, the council shall pro-

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ceed to hear and pass upon all protests so made, and its decision shall be final and conclusive. The council may adjourn said hearing from time to time.

• B. If no protest in writing shall have been delivered to the clerk up to the hour set for hearing, or such protests as shall have been filed shall have been heard and determined by the council to be insufficient, or shall have been overruled or denied, the council may adopt an ordinance granting such franchise upon the terms provided in the application or upon such other terms and conditions as it deems for the public interest.

(Prior code § 10104.)

No franchise granted pursuant to this chapter shall in any way affect the right of the city to acquire the property of the grantee, either by purchase or through the exercise of the right of eminent domain, and nothing therein 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 any public utility. Nor shall any franchise ever be given any value before any court or other public authority in any proceeding of any character in excess of the cost to the grantee of the necessary publication and any other sum paid by it to the municipality at the time of the acquisition.

(Prior code § 10107.)

• A. Every gas franchise granted pursuant hereto shall confer upon the grantee the right to lay or use gas pipes or appurtenances for the purpose of transmitting and distributing gas for such purposes provided in the franchise, and every electric franchise so granted shall confer upon the grantee the right to construct or use poles, wires, conduits or appurtenances for the purpose of transmitting and distributing electricity for such purposes provided in the franchise across the public streets as the same now or may hereafter exist within the city.

• B. Such rights shall not include the right to occupy any park, playground, school property or other municipal property (exclusive of public thoroughfares), unless a special permit therefor shall be granted by the council.

• C. No franchise shall be effective beyond the maximum period fixed by the Charter.

• (Prior code § 10105.)

Any franchise granted shall not become effective until written acceptance shall have been filed by the grantee with the city clerk. (Prior code § 10106.)

The grantee of any franchise shall:

• A. Construct, install and maintain all pipes, conduits, poles, wires and appurtenances in accordance with all of the lawful ordinances and regulations adopted by the council in the exercise of its police powers, and, as to state highways, subject to the provisions of general laws relating to the location and maintenance of such facilities therein;

• B. Pay to the city on demand the cost of all repairs to public property made necessary by any of the operations of the grantee;

• C. Indemnify and hold harmless the city, its officers and employees from any liability for damages proximately resulting from any operations under such franchise;

• D. Remove or relocate, without expense to the city, any facilities installed under the franchise when made necessary by any lawful change of grade, alignment or width of any public street, including the construction for the city of any subway, viaduct or any other lawful public work of governmental character;

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• E. Keep its accounts in such form as to enable the city to readily ascertain and check the amounts due it pursuant to the requirements of any franchise granted; provided, that nothing herein contained shall be deemed to require noncompliance with the provisions of the Public Utilities Act of the state, or of the lawful orders of the California Railroad Commission.

(Prior code § 10108.)

• A. Nothing in this chapter shall make it mandatory for the council to authorize notice of the proposed granting of a franchise unless the council deems that the public interest requires such granting.

• B. In any case, the council may consider applicant's ability to carry out its proposal, its financial and business standing, experience, and any other pertinent factors.

• C. The council may require the grantee of any franchise to provide such bond and/or other security as it deems in the public interest.

• (Prior code § 10112.)

The grantee shall pay to the city a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting of such franchise; such payment to be made within thirty days after the city shall furnish such grantee with a written statement of such expenses. The city may require the deposit in advance of a sufficient sum to cover such expense. (Prior code § 10111.)

• A. If the grantee of any franchise shall fail, neglect or refuse to comply with any of the provisions prescribed in this chapter, and shall not within ten days after written demand for compliance begin the work of compliance, or

after such beginning, shall not prosecute the same with due diligence to completion, then the city, by its council, may declare the franchise forfeited.

• B. The city may sue in its own name in the manner provided by law for the forfeiture of any franchise granted pursuant to this chapter in the event of noncompliance by the grantee, its successors or assigns with any of the conditions thereof.

(Prior code § 10109.)