San Mateo Municipal Code Ch. 15.16 Gas and Electric Franchise

For the statutory provisions regarding the alternative procedure for Gas, Electric and Water Franchises see Cal. Pub. U.C. § 6201 et seq.

An applicant for franchise for the use, construction and use, of poles, wires, conduits and appurtenances for transmitting and distributing electricity for all purposes, and for the use, laying and use, of pipes and appurtenances for transmitting and distributing gas for any and all purposes, under, along, across, or upon the streets of city, in lieu of the provisions of Chapter 15.12, may be required to follow the procedure set forth in this chapter. Such applicant shall state in his or her application, the following:

(1) The name of the applicant;

(2) The purpose and term, whether definite or indeterminate, for which the franchise applied for is desired;

(3) That the applicant, if granted the franchise, will pay to the City during the life of such franchise, two percent of the gross annual receipts of applicant arising from the use, operation, or possession of such franchise; provided, however, that such payment shall in no event be less than one percent of the gross annual receipts of applicant derived from the sale within the limits of city of the utility service for which such franchise has been awarded; provided, further, if the application is for a franchise complementary to a franchise derived under Section 19 of Article XI of the Constitution of California (as said section existed prior to its amendment on October 10, 1911) then, in lieu of either of the aforesaid percentages, applicant will pay a sum annually which, if the application is for an electric franchise, shall be equivalent to two percent of the gross annual receipts of such applicant arising from the use, operation or possession of such franchise; provided, however, that such payment shall in no event be less than a sum which shall be equivalent to one-half percent of the gross annual receipts derived by applicant from the sale of electricity within the City under both such electric franchises; or, if the application is for a gas franchise, shall be equivalent to two percent of the gross annual receipts of applicant arising from the use, operation or possession of such franchise; provided, however, that such payment shall in no event be less than a sum which shall be equivalent to one-half percent of the gross annual receipts derived by applicant from the sale of gas within the City under both such gas franchises.

Prior code § 120.12

Upon receipt of such application, the Council may pass its resolution declaring its intention to grant the franchise applied for, stating the character thereof, setting forth a notice of the day, hour and the place when and where any and all persons having any objections to the granting thereof may appear before the Council and be heard thereon, and directing the City Clerk to publish such notice at least once, within fifteen days after the passing of such resolution, in a newspaper of general circulation within the City. The time fixed for such hearing shall be not less than twenty, nor more than sixty, days after the date of the passage of such resolution. Such notice shall state that the grantee of such franchise and his or her successors and assigns, will, during the life of franchise, pay to the City the percentage specified in such application, and that the same will be paid annually from the date of the granting of such franchise, and in the event such payment has not been made, such franchise will be forfeited. Such notice shall also designate the term, whether definite or indeterminate, for which the franchise is proposed to be granted.

Prior code § 120.13

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 the hearing of objections, the Council shall proceed to hear and pass upon all protests so made, and its decision shall be final and conclusive, subject to the right of referendum of the people. The council may adjourn such hearing from time to time. If no protest in writing has been delivered to the City Clerk up to the hour set for hearing, or such protests as have been filed, have been heard and determined by the Council to be insufficient or have been overruled or denied, the Council may grant such franchise. Such franchise shall be granted by ordinance adopted in the manner prescribed by law for the enactment of ordinances by the Council.

Prior code § 120.14

Every franchise granted pursuant to this chapter, shall, except when a definite term therefor has been specified in the ordinance granting the same, be indeterminate; that is to say, every such franchise shall endure in full force and effect until the same is, with the consent of the Public Utilities Commission of the state, voluntarily surrendered or abandoned by its possessor, or until the state, or some municipal or public corporation thereunto duly authorized by law, has purchased by voluntary agreement, or has condemned and taken, under the power of eminent domain, all property actually used and useful in the exercise of such franchise, and situate within the territorial limits of the City, or until such franchise has been forfeited upon noncompliance with its terms by the possessor thereof.

Prior code § 120.15

Every gas franchise granted pursuant hereto shall confer upon the grantee thereof the right to use, or to lay and use, gas pipes and appurtenances for the purpose of transmitting and distributing gas. Every electric franchise so granted shall confer upon the grantee thereof the right to use, or to construct and use, poles, wires, or conduits and appurtenances for the purpose of transmitting and distributing electricity for any and all purposes, under, along, across or upon the public streets of city.

Prior code § 120.16

Any gas or electric franchise granted hereunder shall not become effective until written acceptance thereof by the applicant shall have been filed by the grantee thereof with the City Clerk. When so filed, such acceptance constitutes a continuing agreement of such grantee that, if and when city thereafter annexes, or consolidates with, additional territory, and all franchises, rights and privileges owned by the grantee, except a franchise derived under the provisions of Section 19 of Article XI of the Constitution of the state of California, shall likewise be deemed to be abandoned within the limits of such territory.

Prior code § 120.17

The grantee of any gas or electric franchise granted pursuant hereto shall be required to file a bond running to the City with at least two good and sufficient sureties to be approved by the Council, or with a satisfactory corporate surety, in a penal sum to be prescribed by the Council, and to be set forth in the resolution of intention to grant such franchise conditioned that such grantee shall well and truly observe, fulfill and perform each and 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 named therein shall be taken and deemed to be liquidated damages, and shall be recoverable from the principal and sureties upon such bond. Such bond shall be filed with the City Clerk within five days after the date of granting of such franchise; and in case such bond has not been so filed or has not received the approval of the Council, such franchise shall be forfeited and any money paid to the City in connection therewith shall be likewise forfeited.

Prior code § 120.18

The grantee of any franchise granted pursuant hereto shall:

(1) Construct, install and maintain all pipes, conduits, poles, wires and appurtenances in accordance, and in conformity, with all of the ordinances, rules and regulations theretofore or thereafter adopted by the Council in the exercise of its police powers and not in conflict with the paramount authority of the state;

(2) Pay to the City on demand the cost of all repairs to public property made necessary by any of the operations of the grantee under the franchise;

(3) Indemnify and hold harmless the City and its officers from any and all liability for damages proximately resulting from any operations under such franchise;

(4) Remove or relocate without expense to the City any facilities installed, used, and maintained under the franchise, if and when made necessary by any lawful change of grade, alignment or width of any public street, including, but not limited to, the construction of any subway or viaduct, by the City; and

(5) File with the Council within thirty days after any sale, transfer, assignment or lease of the franchise, or any part thereof, or of any rights or privileges granted thereby, written evidence thereof, certified to by the grantee or by its duly authorized officers.

Prior code § 120.19

If the grantee of any gas or electric franchise has failed, neglected or refused to comply with any of the provisions or conditions prescribed herein, and has not within ten days after written demand for compliance, begun the work of compliance, or after such beginning, has not prosecuted the same with due diligence to completion, then the City, by the Council, may declare the franchise forfeited.

Prior code § 120.20

The grantee of any gas or electric franchise granted pursuant to this chapter shall file with the City Clerk, within three months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of such franchise, and within three months after the expiration of each and every calendar year thereafter, a duly verified statement showing in detail the total gross receipts of such grantee, its successors, or assigns, during the preceding calendar year, or such fractional calendar year, from the sale of the utility service for which such franchise was granted. Such grantee shall pay to city within fifteen days after the time for filing such statement, in lawful money of the United States of America, the specified percentage of its gross receipts for the calendar year, or such fractional calendar year, covered by such statement. Any neglect, omission, or refusal by such grantee to file such verified statement, or to pay such percentage at the times or in the manner hereinbefore provided, shall be grounds for the declaration of forfeiture of the franchise and of all rights thereunder.

Prior code § 120.21

The grantee of any franchise granted pursuant to this chapter 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 shall be made within thirty days after the City has furnished such grantee with a written statement of such expense.

Prior code § 120.22