Chapter 15.40 — POTABLE WATER FRANCHISES
San Jose Municipal Code · 2026-09 edition · updated 2026-09-29 · San Jose
15.40.010 - Definition.¶
The definitions set forth in this part shall govern the application and interpretation of this chapter.
(Ord. 24931.)
15.40.020 - Constitutional franchise.¶
"Constitutional franchise" means such franchise or right, if any, as grantee may have because of the acceptance by grantee or its predecessor in interest of the offer contained in the provisions of Section 19 of Article XI of the Constitution of the State of California, as that section existed prior to its amendment on October 10, 1911.
(Ord. 24931.)
15.40.030 - Director.¶
"Director" means the director of the department of environmental services.
(Ord. 24931.)
15.40.040 - Engineer.¶
"Engineer" means the director of the public works department.
(Ord. 24931.)
15.40.050 - Grantee.¶
"Grantee" means the person, individual, partnership, association, joint stock company, trust, corporation, governmental or other entity to whom or which a potable water franchise is granted by the council, pursuant to the provisions of this chapter, and the lawful successor or assignee thereof.
(Ord. 24931.)
15.40.060 - Gross receipts.¶
"Gross receipts" means any and all compensation and other consideration, in any form whatsoever, and any contributing grant or subsidy, received directly or indirectly by grantee from customers or users of a water system in payment for water service received within the city.
(Ord. 24931.)
15.40.070 - Pipes and appurtenances.¶
"Pipes and appurtenances" means pipes, pipelines, mains, services, traps, vents, vaults, manholes, meters, gauges, regulators, valves, conduits, appliances, attachments, appurtenances and, without limitation to the foregoing, any other property located or to be located in, upon, along, across, under or over the streets of city, used or useful in transmitting and/or distributing potable water.
(Ord. 24931.)
15.40.080 - Potable water.¶
"Potable water" means water of a quality which meets California Department of Health Services and San Francisco Bay Regional Water Quality Control Board requirements for water suitable for human consumption.
(Ord. 24931.)
15.40.090 - Streets.¶
"Streets" means the public streets, ways, alleys and places now or hereafter established within the city, including state highways and freeways and county roads and expressways. The word "streets" shall not be deemed to mean or include any parks, playgrounds, school property or other municipal or public property not constituting public thoroughfares.
(Ord. 24931.)
Part 2 - GENERAL PROVISIONS
15.40.110 - Purpose.¶
A.
It is necessary for public health, safety and welfare for the city to regulate the business of establishing, operating or maintaining a system for retail distribution of potable water, utilizing pipes and other appurtenances located within public streets.
B.
Pursuant to the provisions of Article XIII of the city charter, the city hereby elects to have the grant of franchises governed by this chapter and these provisions constitute the exclusive procedure for the granting of potable water franchises for the conduct of the business of establishing, operating or maintaining a system of pipes in the streets for retail distribution of potable water in the city.
(Ord. 24931.)
15.40.120 - Activities which are unlawful unless authorized.¶
It is unlawful for any person to engage in the business of establishing, operating or maintaining a system of pipes in the streets for retail distribution of potable water in the city, beyond the extent of any constitutional franchise, unless that person has first been granted a potable water franchise pursuant to the provisions of this chapter and such franchise is in full force and effect.
(Ord. 24931.)
15.40.130 - Constitutional franchise exemption.¶
The exemption of such rights as exist with regard to those pipes and appurtenances subject to a franchise granted by the state of California under the provisions of Section 19 of Article XI of the Constitution of the State of California, as that section existed prior to its amendment on October 10, 1911, is to be narrowly construed.
(Ord. 24931.)
15.40.140 - Potable water franchise.¶
The council may, at its discretion, grant a nonexclusive franchise to engage in the business of establishing, operating or maintaining a system for retail distribution of potable water in the city, beyond the extent of any constitutional franchise, by ordinance, to any person, whether that person is operating under an existing constitutional franchise or not.
(Ord. 24931.)
15.40.150 - Franchise - Terms and conditions.¶
A.
All franchises granted to persons pursuant to this chapter shall be nonexclusive.
B.
No provision of this chapter shall be deemed to require restricting the number of franchises to one or any particular number, and no provision of this chapter shall be deemed to require the city council to grant any franchise if the council determines that the grant of any such franchise is not for the public good.
C.
All potable water franchises shall be subject to the terms and conditions specified in the city charter, in this chapter, as well as any terms or conditions specified in the ordinance granting the franchise.
D.
In granting any potable water franchise, the city council may prescribe such other terms and conditions, not in conflict with the city charter or this chapter, as are determined by the city council to be in the public
interest.
(Ord. 24931.)
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