Chapter 13.32 — GAS FRANCHISES

• A. The City, having heretofore (by the adoption of Section 2.1 of its Charter) elected to take advantage of the provisions of the 1914 amendment to Section 6 of Article XI of the Constitution of the State of California, giving cities home rule as to municipal affairs, and the granting of franchises of the character hereinafter referred to being within the classification "municipal affairs," hereby declares that the following sections, together with the provisions of said Charter, shall constitute the exclusive procedure applicable to the granting of gas franchises by the City.

• B. Pursuant to the provisions of Sections 2.1 and 8.9 of its Charter, the City hereby elects to have the granting of gas franchises governed by this chapter, and any ordinances amendatory thereof, together with the applicable provisions of its Charter, instead of by general laws of the State.

(Prior code § 10A.1)

The City Council is hereby empowered to grant a franchise to any person, whether operating under any existing franchise or not, to lay or use pipes or appurtenances for transmitting and distributing gas for any purpose across or under the public streets, as the same now or may hereafter exist within the City, upon terms as are provided in the applicable provisions of the Charter, and may in such franchise impose other additional terms not in conflict with said Charter or this chapter, whether governmental or contractual in character, as in the judgment of the City Council are in the public interest. In determining whether any such terms are in the public interest, the City Council shall consider the prevalent industrial uses within the City. (Prior code § 10A.2)

An applicant for any franchise mentioned above shall file with the City Council a verified application which shall state:

• A. The name of the applicant;

• B. The purpose and term of years (not to exceed 10 years) for which the franchise shall be desired;

• C. The fees or charges applicant, if granted the gas franchise, proposes to pay to the City during the life of such franchise; and

• D. A statement that the applicant agrees to the terms or conditions stated by Sections 13.32.060 through 13.32.090 of this chapter.

• (Prior code § 10A.3)

Upon receipt of said application, the City Council may pass its resolution declaring its intention to grant the franchise applied for, stating the character of the same, setting forth a notice of the day, hour and place when and where any and all persons having any objection to the granting thereof may appear before the City Council and be heard thereon, and directing the City Clerk to publish said notice at least twice, within five days after the passage of the resolution, in a newspaper of general circulation within the City. The time fixed for such hearing shall be not less than 10 days nor more than 25 days after the date of the adoption of said resolution. Said notice shall state the fees or charges specified in the application, that the grantee of said franchise and its successors and assigns will, during the life of said franchise, pay to the City. Said notice shall also designate the term of years for which the franchise is proposed to be granted. (Prior code § 10A.4)

• A. 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 hearing objections, the City Council shall proceed to hear and pass upon all protests so made, and its decision shall be final and conclusive. The City Council may adjourn said hearing from time to time.

• B. If no protest in writing shall have been delivered to the City Clerk up to the hour set for hearing, or such protests as shall have been filed shall have been heard and determined by the City Council to be insufficient, or shall have been overruled or denied, the City Council may adopt an ordinance granting such franchise upon the terms provided in the application or upon such other terms and conditions as it deems to be in the public interest.

• (Prior code § 10A.5)

• A. Every gas franchise granted pursuant hereto shall confer upon the grantee the right to lay or use gas pipes or appurtenances for the purpose of transmitting and distributing gas for such purposes provided in such franchise across or under the public streets as the same now or may hereafter exist within the City. In conducting operations under such franchise, each grantee shall recognize and accommodate the basic industrial character of uses within the City.

• B. Such rights shall not include the right to occupy any park, playground, school property or other municipal property (exclusive of public thoroughfares), unless a special permit therefor shall be granted by the City Council.

• C. No franchise shall be effective beyond a term of 10 years.

• D. Every gas franchise shall be non-exclusive. (Prior code § 10A.6)

No franchise granted shall become effective until written acceptance shall have been filed by the grantee with the City Clerk.

(Prior code § 10A.7)

No franchise granted pursuant to this chapter shall in any way affect the right of the City during the term of such franchise to acquire the property of the grantee, either by purchase or through the exercise of the right of eminent domain, and nothing therein 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 in respect to any public utility. Every franchise shall provide that upon termination the City may acquire the property of the grantee by paying an amount which equals the original cost of such property less depreciation. The franchise itself shall never be given any value before any court or other public authority in any proceeding of any character in excess of the cost to the grantee of the necessary publication and any other sum paid by the grantee to the City at the time the franchise was granted. (Prior code § 10A.8)

The grantee of any franchise shall:

• A. Construct, install and maintain all pipes and appurtenances in accordance with all of the lawful ordinances and regulations adopted by the City Council in the exercise of its police powers, and, as to state highways, subject to the provisions of general laws relating to the location and maintenance of such facilities therein;

• B. Pay to the City on demand the cost of all repairs to public property made necessary by any of the operations of the grantee;

• C. Indemnify and hold harmless the City, its officers and employees from any liability for damages proximately resulting from any operations under such franchise;

• D. Remove or relocate, without expense to the City, any facilities installed under the franchise when made necessary by any lawful change of grade, alignment or width or any public street, including the construction for the City of any sub-way, viaduct or any other lawful public work of governmental character;

• E. Keep its accounts in such form as to enable the City to readily ascertain and check the amounts due it pursuant to the requirements of any franchise granted; provided, that nothing herein contained shall be deemed to require noncompliance with the provisions of the Public Utilities Act of the State, or of the lawful orders of the California Public Utilities Commission;

• F. Provide all services to customers within the City at nondiscriminatory rates, terms and conditions;

• G. Provide all services at rates, terms and conditions which do not discriminate in the aggregate against all customers within the City, in favor of all customers within any other City; and

• H. Petition the City Council to review any determination by City staff regarding the franchise, in the event that the grantee disputes any such determination, as a necessary prerequisite to judicial review.

(Prior code § 10A.9)

• A. Nothing in this chapter shall make it mandatory for the City Council to authorize notice of the proposed granting of a franchise unless the City Council deems that the public interest requires such granting.

• B. In any case, the City Council may consider applicant's ability to carry out its proposal, its financial and business standing, experience, and any other pertinent factors.

• C. The City Council may require the grantee of any franchise to provide such bond and/or other security as it deems in the public interest.

• (Prior code § 10A.10)

The grantee shall pay to the City a sum of money sufficient to reimburse the City for all publication expenses incurred by it in connection with the granting of such franchise; such payment to be made within 30 days after the City shall furnish such grantee with a written statement of such expenses. The City may require the deposit in advance of a sufficient sum to cover such expense.

(Prior code § 10A.11)

• A. If the grantee of any franchise shall fail, neglect or refuse to comply with any of the provisions prescribed in this chapter, and shall not within 10 days after written demand for compliance begin the work of compliance, or after such beginning, shall not prosecute the same with due diligence to completion, then the City, by its City Council, may declare the franchise forfeited.

• B. The City may sue in its own name in the manner provided by law for the forfeiture of any franchise granted pursuant to this chapter in the event of noncompliance by the grantee, its successors or assigns with any of the conditions thereof.

• (Prior code § 10A.12)