San Jose Municipal Code Part 5 Terms and Conditions

A. Each grantee shall pay a franchise fee to the city.

B. The franchise fee shall be the greater of the following amounts:

1. Two percent of the gross annual receipts arising from the use, operation, or possession of the potable water franchise; or

2. One percent of the gross annual receipts of the grantee derived from the sale of potable water within the city limits.

C. Franchise fees shall be payable on a monthly basis, and shall be due and payable within thirty days after the end of each calendar month.

D. The required franchise fee shall be paid to the director of finance.

E. Each payment shall be accompanied by a written statement, verified by the grantee making the payment, or a duly authorized representative of the person, showing the calculation of the franchise fee payable in such form and detail as the director of finance may require and such other information as the director of finance may determine is material to a determination of the amount due.

F. No statement filed under this section shall be conclusive as to the matters set forth in such statement, nor shall the filing of such statement preclude the city from collecting by appropriate action the sum that is actually due and payable.

G. The payment of franchise fees to the city pursuant to this chapter shall be in addition to any utility user's tax paid or collected by grantee, or license fee or business tax prescribed by the city for the same period.

H. In the event grantee fails to make the payments of this franchise fee on or before the dates due as hereinabove provided, in addition to all other remedies available to the city, the grantee shall pay both of the following additional amounts:

1. A penalty in the amount of ten percent of the amount due.

2. A sum of money equal to one percent of the amount due per month as interest and for loss of use of the money due.

(Ord. 24931.)

A. The grantee shall at all times maintain accurate and complete accounts of all potable water deliveries in the city and of all revenues and income arising out of its operations under the potable water franchise granted pursuant to this chapter.

B. Grantee's books, accounts and records shall be open to inspection, examination and audit by the director of finance, or any other authorized officers, employees and agents of the city. The records shall be made available during normal working hours, upon reasonable notice.

C. All books, accounts, and other records relating to the statement required by this chapter shall be kept within the city. In the event that it becomes necessary for any representative designated by city to make such examination at any place other than within the city, all increased costs and expenses to city necessary or incident to such examination resulting from such books and records not being available within the city shall be paid to city by grantee on demand.

(Ord. 24931.)

Grantee shall file three copies of its annual report to the California Public Utilities Commission, or its successor in authority, with the city clerk, as soon as practicable after the original of the report has been filed with commission.

(Ord. 24931.)

A. There is hereby reserved to the city every right and power, and the exercise thereof, which is reserved or authorized by any provision of any lawful ordinance or resolution of the city, whether enacted before or after the effective date of this chapter.

B. Neither the granting of any potable water franchise nor any provision of any franchise shall constitute a waiver of or a bar to the exercise of any governmental right or power of the city.

C. The grantee shall have no recourse whatsoever against the city, its officers, employees or agents, for any loss, cost, expense or damage arising out of any provision or requirement of this chapter or of any franchise issued under this chapter or because of the enforcement of this chapter.

D. There is hereby expressly reserved to the city the power and authority to amend any section of this Code so as to require additional or greater standards on the part of the grantee and the power and authority to increase the franchise fees to be paid by the grantee pursuant to this chapter.

(Ord. 24931.)

All work undertaken or performed and all pipes and appurtenances constructed, maintained and used, pursuant to the provisions of the grant of a potable water franchise, including but not limited to the practices of grantee in its installation and removal of grantee's facilities in the streets of city, shall be done, undertaken, performed and accomplished in accordance and compliance with all applicable ordinances, rules and regulations of city now or as hereafter adopted or prescribed, and with applicable laws, rules, regulations and orders of the state of California, the public utilities commission of the state of California and of any other governmental authority having jurisdiction, and, also, so as to cause the least possible hindrance to the use of the streets for the purpose of travel or any other public purpose.

(Ord. 24931.)

A. By accepting any potable water franchise grant hereunder, the grantee shall have agreed to defend, indemnify, save and hold harmless, the city, and all officers and employees of city, for, against and from all damages, judgments, decrees, costs and expenditures or loss which city, or any such officers or employees, may suffer, or which may be recovered from or be obtainable against city, or such officers or employees, for, or by reason of, or growing out of, or resulting from the exercise by grantee of any or all of the rights or privileges granted by this potable water franchise, or by reason of, or growing out of or resulting from any act or acts of grantee or its servants or agents in exercising the franchise herein granted, or by reason of, or growing out of or resulting from the failure of the grantee to comply with the provisions of said franchise or to do anything required of it by the franchise.

B. In the event that any person, firm or private or public corporation makes claim against city for any damages for or against or from which the grantee hereinabove is obligated to indemnify city or save and hold city harmless, city shall give the grantee written notice of such claim within thirty days from and after the date city receives the claim.

C. In the event that any person, firm or private or public corporation makes claim against any officer or employee of the city for any damages for or against or from which grantee hereinabove is obligated to indemnify the officer or employee or save and hold the officer or employee harmless, city or the employee shall give grantee written notice of the claim within thirty days from and after the date the officer or employee receives the claim.

D. In the event city suffers any damage or loss for or against or from which grantee hereinabove agrees to indemnify city or save and hold city harmless, city shall give grantee written notice of such damage or loss within thirty days from and after the expiration of a reasonable time, after incurring such damage or loss, within which it could determine whether the damage or loss was covered by the above indemnification and save and hold harmless provisions. In the event any officer or employee of city suffers any damage or loss for or against or from which grantee hereinabove agrees to indemnify said officer or employee or save and hold the officer or employee harmless, city or the employee shall give grantee written notice of such damage or loss within thirty days from and after the expiration of a reasonable time, after incurring such damage or loss, within which it could determine whether the damage or loss was covered by the above indemnification and save and hold harmless provisions.

(Ord. 24931.)

A. Any grantee of a potable water franchise granted hereunder shall pay to the city, on demand, the cost of all repairs to city property made necessary by any of the operations of grantee under the potable water franchise.

B. The grantee of a potable water franchise granted hereunder may be permitted to make repairs to streets, sidewalks, curbs and gutters itself, at its own cost, in accordance with city ordinances, rules, regulations and specifications, if the repairs can be without undue inconvenience of the city or its residents.

(Ord. 24931.)