San Mateo Municipal Code Ch. 15.12 Franchise—procedure

An applicant for any franchise or privilege mentioned in Chapter 15.08 shall file with the Council an application in writing; thereupon council shall cause to be advertised the fact of such application, together with a statement that it is proposed to grant the same, in a newspaper of general circulation in the City. Such advertisement must state that bids will be received for such franchise, and that it will be awarded to the highest bidder, and the same must be published in such newspaper once a day for ten successive days, or as often during said period as such newspaper is published, if it be a daily newspaper, and if there is no daily newspaper published in the City, then it shall be published in a weekly newspaper once a week for four successive weeks, and in either case the full publication must be completed not less than twenty, nor more than thirty, days before any further action can be taken thereon.

Prior code § 120.04

Such publication must state the character of the franchise or privilege proposed to be granted, the term for which it is to be granted, and, if it is a street, railroad or automobile bus service, the route to be traversed; that sealed bids therefor will be received up to a certain hour and day named therein, and that the successful bidder and his or her assigns must, during the life of such franchise, pay to the City two percent of the gross annual receipts of the grantee to whom the franchise has been awarded, arising from its use, operation or possession. No percentage shall be paid for the first five years succeeding the date of the franchise, but thereafter such percentage shall be payable annually; and in the event such payment is not made, such franchise shall be forfeited; provided, further, that if the franchise is a renewal of a right already in existence, the payment of such percentage of gross receipts shall begin at once.

Prior code § 120.05

In case the franchise granted is an extension of an existing system of street, railroad or automobile bus service, then the gross receipts shall be estimated to be one-half of the proportion of the total gross receipts of such system which the mileage of such extension bears to the total mileage of the whole system, and such estimate shall be conclusive as to the amount of gross receipts of such extension.

Prior code § 120.06

Such advertisement shall also contain a statement that the franchise will be struck off, sold and awarded to the person who makes the highest cash bid therefor; provided, only, that at the time of the opening of such bid, any responsible person present or represented may bid for such franchise or privilege a sum of not less than ten percent above the highest sealed bid therefor, and such bid so made may be raised not less than ten percent by any other responsible bidder or bidders, and such bidding may so continue until finally such franchise is struck off, sold and awarded by council to the highest bidder therefor in lawful money of the United States of America. Each sealed bid shall be accompanied with cash or a certified check payable to the City treasurer for the full amount of such bid, and no sealed bid shall be considered, unless such cash or check is enclosed therewith, and the successful bidder shall deposit at least ten percent of the amount of his or her bid with the City Clerk before the franchise has been struck off to him. If he or she has failed to make such deposit immediately, then, and in that case, his or her bid shall not be received, and shall be considered as void, and such franchise shall then and there be again offered for sale to the bidder who makes the highest cash bid therefor, subject to the same conditions as to the deposit, as abovementioned. Said procedure shall be had until such franchise is struck off, sold and awarded to a bidder who shall make the necessary deposit of at least ten percent of his or her bid therefor, as herein provided. Such successful bidder shall deposit with the City Clerk, within twenty-four hours of acceptance of his or her bid, the remaining ninety percent of the amount thereof, and in case he or she has then failed to do so, then such deposit theretofore made, shall be forfeited, and such award of such franchise shall be void, and such franchise shall then and there by council be again offered for sale to the highest bidder or bidders therefor, in the same manner, and under the same restrictions as hereinbefore provided, and in case such bidder has failed to deposit with the City Clerk the remaining ninety percent of his or her bid within twenty-four hours after its acceptance, the award to him or her shall be forfeited, and no further proceedings for a sale of such franchise shall be had, unless the same is readvertised and again offered for sale, in the manner hereinbefore provided.

Prior code § 120.07

Work to erect or lay telegraph or telephone wires, to construct street or interurban railroads, to lay gas pipes for the purpose of carrying gas or light, heat or power, to lay water pipes for the purpose of carrying water, to erect poles or wires for transmitting electricity for light, heat or power, along or upon any street, or to exercise any other privilege whatever, a franchise for which has been granted in accordance with the terms hereof, shall be commenced in good faith within not more than four months from the granting of any such franchise, and if not so commenced within such time, franchise so granted shall be declared forfeited. Work to construct street or interurban railways under such franchise shall be completed within not more than three years from the date of granting such franchise, and if not so completed within such time such franchise so granted shall be forfeited; provided, that, for good cause shown, the City Council may, by resolution, extend the time for completion of such work in any case mentioned in this section for a period not to exceed three months. Work under any franchise shall be prosecuted diligently and in good faith, so as to meet and fill reasonable needs of the inhabitants of the territory for the service for which the franchise is granted.

Prior code § 120.08

The successful bidder for any franchise or privilege struck off, sold and awarded under Chapters 15.08 through 15.16 shall file with the Council within five days after such franchise has been awarded, a bond running to city, with at least two good and sufficient sureties, to be approved by council, or with a satisfactory corporate surety, in a penal sum by the City to be prescribed, and set forth in the advertisement for bids, conditioned that such bidder or bidders shall well and truly observe, fulfill and perform every term and condition of such franchise, and that in case of any breach of condition of such bond, the whole amount of the penal sum therein named shall be paid, and upon the filing and approval of such bond, such franchise shall, by council, be granted by ordinance to the person to whom it has been struck off, sold or awarded, and in case such bond has not been so filed, the award of such franchise shall be set aside, any money paid therefor shall be forfeited, and such franchise shall, in the discretion of council, be readvertised and again offered for sale in the same manner, and under the same restrictions, as hereinbefore provided.

Prior code § 120.09

No clause or condition of any kind shall be inserted in any franchise or grant offered or sold under this chapter which directly or indirectly restricts free and open competition in bidding therefor, and no clause or provision shall be inserted in any franchise offered for sale, which in any way favors one person as against another, in bidding for the purchase thereof.

Prior code § 120.10

The term of each franchise or privilege shall be fixed for such period as the City Council in its discretion deems advisable.

Prior code § 120.11