Sunnyvale Municipal Code Art. XVI Franchises

When Required. As used in this Article "franchised privilege" means:

The furnishing to the City or its inhabitants, or any portion thereof,

The use of the public streets, ways, alleys or places in the City of Sunnyvale as the same now or may hereafter exist, for any of such purposes described in this section, or for the operation of plants, works, or equipment for the furnishing thereof.

Traversing any portion of the City for the transmitting or conveying of any such utility or service elsewhere.

No person, firm or corporation shall engage in a franchised privilege without having first obtained a grant of franchise therefor in accordance with the provisions of this Article and in accordance with the procedure prescribed by ordinance, except insofar as entitled to do so by direct authority of the Constitution or laws of the State of California or of the United States.

Nothing in this Article shall be construed to invalidate any lawful franchise previously granted nor to necessitate the obtaining of a new franchise for a use for which a franchise holder shall have a valid unexpired franchise or spur track permit.

(Amended effective July 8, 1968, December 31, 1975 and November 30, 1995)

The City Council is empowered to grant by ordinance a franchise to engage in a franchised privilege, and all renewals and substantive amendments thereof, to any person, firm or corporation, whether operating under an existing franchise or not.

Nothing in this Article shall apply to the granting of permits by the City Council to any steam or commercial railroad for the construction of spur or side tracks along or across any street, avenue or highway in the City of Sunnyvale, for the purpose of connecting the facilities of any commercial enterprise with the line of such railroad.

The City Council is further empowered to amend any franchise grant with the consent of the person, firm or corporation to whom it was granted. Technical non-substantive amendments may be authorized by the City Manager.

(Amended effective July 8, 1968 and November 30, 1995)

The City Council may by ordinance prescribe the terms and conditions under which franchises will be granted, subject to the provisions of this Charter, and may by ordinance provide a procedure for granting franchises; provided, however, that such procedural ordinance or ordinances shall make provisions for the giving of notice of franchise applications, protests against the granting of such franchises and for the hearing of such protests.

The City Council in granting franchises shall prescribe the terms and conditions of such franchises in accordance with the applicable provisions of this Charter and any ordinance adopted pursuant thereto, and may in such franchise impose such other and additional terms and conditions not in conflict with said Charter or ordinances, whether governmental or contractual in character, as in the judgment of said Council are in the public interest or the people by initiative indicate they desire to have so imposed.

No franchise shall be granted without reserving to the City adequate consideration for the privilege conferred.

The City Council may grant a franchise by ordinance or may, at its discretion, advertise for bids for the sale of a franchise upon a basis, not in conflict with the provisions of this Article, to be set out in the advertisement for bids and notice of sale; provided that no bidding shall be had or required upon any renewal of a franchise, surrender of existing franchise or parts thereof, or in settlement of litigation between the grantee and the City.

Every franchise shall state the term for which it is granted, which, unless it be indeterminate as provided for herein, shall not exceed thirty years.

A franchise grant may be indeterminate; that is, it may provide that it shall endure in full force and effect until the same, with the consent of the Public Utilities Commission of the State of California, shall be voluntarily surrendered or abandoned by its possessor, or until the State of California, or some municipal or public corporation, thereunto duly authorized by law, shall purchase voluntary agreement or shall condemn and take, 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 State, municipal, or public corporation purchasing or condemning such property, or until the franchise shall be forfeited for noncompliance with its terms by the possessor thereof.

No franchise grant shall in any way or to any extent impair or affect the right of the City to acquire the property of the grantee thereof either by purchase or through the exercise of the right of eminent domain, and nothing herein contained shall be construed to contract away or to modify or to abridge either for a term or in perpetuity the City's right of eminent domain with respect to any public utility. Every franchise grant shall reserve to the City the right to purchase the property of such utility or find a purchaser therefor, upon one year's written notice, either at an agreed price or a price to be determined in a manner to be prescribed in the grant, or in the manner prescribed by the procedural ordinance hereinabove mentioned. In fixing the price to be paid by the City for any utility, no allowance shall be made for franchise value (other than the actual amount paid to the City at the time of the franchise acquisition), good will, going concern, earning power, or increased value of right-of-way.

Nothing in this Article shall be construed to require motor, contract or other carriers of freight or passengers not operating over a fixed route to obtain franchises for use of any public place of the City.

The exercise by any person, firm, or corporation of any privilege for which a franchise is required, without procuring such franchise, shall be a misdemeanor and each day that such condition continues to exist shall constitute a separate violation.

Preservation of Rights. Nothing contained in this Article shall apply to the City, or to any department thereof, when furnishing any public utility or service.

Nothing contained in this Article shall be construed to affect or impair any rights, powers, or privileges relating to franchises vested in, possessed by, or available to, the City by virtue of previous Charter provisions.

(Added effective July 8, 1968)