Part 4 — APPLICATION FOR POTABLE WATER FRANCHISE

A.

An application for a potable water franchise by any person other than San José Water Company, Great Oaks Water Company, in the business of establishing, operating or maintaining a system for retail distribution of potable water in the city after July 1, 1995, shall be submitted in writing to the director.

B.

Each application for the grant of a potable water franchise pursuant to this part shall be on a form provided by the director and shall contain the following information:

The name and address of the applicant;

a.

If the applicant is a partnership, the name and address of each partner shall be set forth in the application.

b.

If the applicant is a corporation, the application shall state the names and addresses of the corporation's directors, main offices, major stockholders and associates, and the names and addresses of the parent and subsidiary companies.

A statement and description of the potable water system proposed to be constructed, installed, maintained or operated by the applicant; the proposed location of such system and its various components; the manner in which applicant proposes to construct, install, maintain and operate the same; and, particularly, the extent and manner in which existing or future pipes or other facilities of other public utilities will be used for such system;

A description, in detail, of the public streets, public places and proposed public streets within which applicant proposes or seeks authority to construct, install or maintain any potable water system equipment or facilities; a detailed description of the equipment or facilities proposed to be constructed, installed or maintained therein; and the proposed specific location thereof;

A map specifically showing and delineating the proposed service area or areas within which applicant proposes to provide people of the city with potable water services and for which a franchise is requested; and

Such additional information as may be reasonably requested by the director.

C.

The application shall be signed by the person applying for the potable water franchise or, in the case of a partnership, corporation or other entity, by a person authorized to bind the partnership or corporation.

D.

The application shall be accompanied by the potable water franchise application fee as set forth in the schedule of fees established by resolution of the city council.

(Ord. 24931.)

A.

Upon receiving an application for the grant of a potable water franchise under the provisions of this part, the director shall forward a copy to the city clerk.

B.

Upon receipt of the copy of the application, the city clerk, subject to the rules of the city council as to the hour and place of public hearings which shall be conducted by it, shall set a date for a public hearing by the city council on the application for the potable water franchise.

C.

The city clerk shall cause the nature of the application and of the time and place of hearing on the application to be published at least once in a newspaper of general circulation in the city at least five days prior to the date set for the hearing.

D.

At the hearing on the application for the grant of a potable water franchise, the city council shall give all persons desiring to be heard a reasonable opportunity to present evidence or otherwise be heard in favor of or in opposition to the granting of the franchise to the applicant.

E.

At such hearing, the council may demand from the applicant such additional information as the council may deem relevant and necessary.

(Ord. 24931.)

A.

Upon conclusion of the hearing on the application for a potable water franchise, or within a reasonable time thereafter, the council shall render its decision on the application.

B.

The council may refuse to grant the requested franchise or the council may, by ordinance, grant the franchise to the applicant as it deems to be in the public good.

C.

Any grant of a potable water franchise by the council may be subject to such terms, conditions, rules, regulations, restrictions and limitations as the council deems advisable to protect the citizens, to preserve the rights and interests of the city in its streets and public places, or to otherwise protect the interests of the city and its people.

D.

In making its decision, the council may consider whether the applicant is qualified to engage in supplying inhabitants of the city with potable water; the applicant's compliance with laws and regulations governing the supply and distribution of potable water; income to the city; experience and financial responsibility of the applicant; and any other consideration that the council determines will safeguard the interests of the city and its people.

E.

The potable water franchise granted to an applicant need not be identical to franchises granted to other applicants and need not contain the same terms and conditions, rights or privileges as requested by the applicant.

F.

Other than as set forth in Part 3 of this chapter, no potable water franchise shall be granted except by ordinance and no potable water franchise shall become effective unless and until the requirements set forth in Section 15.40.340 have been satisfied.

(Ord. 24931.)

A.

Any potable water franchise granted pursuant to this part shall be deemed accepted if the grantee takes any action for which a potable water franchise is required; and

B.

Within twenty days from the effective date of the ordinance granting a potable water franchise pursuant to this part, or within such extended period of time as the city council in its discretion may authorize, the grantee has filed with the city clerk the following documents, if such is required by the ordinance granting the franchise:

A faithful performance bond.

Evidence of compliance with the insurance requirements.

(Ord. 24931.)

The term of any potable water franchise granted or renewed under the provisions of this part shall be for a term of twenty years unless otherwise specified in the ordinance granting the franchise.

(Ord. 24931.)

A.

Any potable water franchise granted pursuant to this part is a privilege to be held in trust by the original grantee. No such franchise shall be sold, leased, transferred, assigned, or otherwise disposed of, either in whole or in part, whether by forced sale, merger, consolidation, bankruptcy, reorganization under bankruptcy laws or otherwise, without the prior consent of the city council expressed by resolution.

B.

Consent shall not be denied if the successor or assignee has never had a potable water franchise terminated by the city and if the transferee or assignee can provide adequate assurances of quality of service and financial responsibility.

C.

Any such consent of the city council shall be subject to such terms and conditions to assure financial responsibility as may be prescribed by the council.

(Ord. 24931.)