Weed Municipal Code Ch. 14.18 Gas Franchise

The ordinance codified in this chapter shall be known as the City of Weed Gas Franchise Ordinance.

(Ord. 352-2001§1(part))

For the purpose of this chapter, the following words and phrases shall have the meaning given in this section:

When not inconsistent with the context of this chapter, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number. The words "shall" or "will" are mandatory, and the word "may" is permissive. Words not defined in this section shall be given their common and ordinary meaning.

"City" means the municipal corporation designated as the city of Weed, located in the County of Siskiyou, and includes the territory that currently is, or may in the future be, included within the boundaries of the city of Weed.

"Council" or "city council" means the legislative body of the city of Weed.

"Facilities" means all physical components of any franchisee which are reasonably necessary to provide gas into, within and through the city for transportation, distribution and sale and include, but are not limited to, plants, works, systems, transmission and distribution structure, lines equipment, pipes, mains, conduit, gas compressors and meters, underground lines, wires and cables.

"Gas" or "natural gas" means such gaseous fuels as natural, artificial, synthetic, liquefied natural, liquefied petroleum, manufactured, or any mixture thereof, but shall not mean any gas or petroleum product primarily used to power vehicles of any nature.

"Gas distribution facilities" means that portion of any franchisee's gas system reasonably necessary to provide for the transportation and sale of gas within the city, and includes all physical infrastructure to the point of delivery of the customer, and all devices connected to that system.

"Official city representative" or "city administrator" means the Weed city administrator, his/her successor in office or any officer or employee of the city designated to act as the official city representative by the city administrator, his/her successors, or said officer, each of whom shall be authorized to act on behalf of the city under this franchise.

"Park" or "park land" means a recreation area within the city owned, maintained and designated as a park or park land by the city council.

"Public or dedicated easements" refer to and are public easements created and available for use by investor-owned or other public utilities for their facilities.

"Public utilities commission" means the public utilities commission of the state of California ("Commission" or "P.U.C.") or other authority succeeding to the regulatory powers of the public utilities commission of the state of California.

"Residents" means all persons, businesses, industry, governmental agencies and any other entity whatsoever, presently located or to be hereinafter located, in whole or in part, within the territorial boundaries of the city of Weed.

"Revenues" means those amounts of money that any franchisee receives from its customers, or from any source, for use of its facilities within the city by other entities and from the sale of gas and the transportation of gas.

"Streets and public places" means streets, alleys, viaducts, bridges, highways, avenues, boulevards, roads, lanes and public rights-of-way that are located in the city.

(Ord. 352-2001 §1 (part))

Pursuant to pertinent sections of the California Public Utilities Code, including but not limited to §6001 et seq., and §6201 et seq., the city hereby declares its authority to grant, subject to any conditions, terms and provisions agreed upon with any potential franchisee, the right(s) to furnish, sell and distribute propane gas within the city, to the city, and to all residents of, or business located within, the city.

Such authority shall include the authority to grant the right(s) to acquire, construct, install, locate, maintain, operate and extend into, within and through the city, all facilities reasonably necessary to furnish, sell and distribute gas within the city, and the right(s) to make reasonable use of the streets and other public places as may be necessary to carry out any agreement conveying such right(s) entered into pursuant to this chapter.

Any right(s) granted pursuant to this chapter shall be subject to the city's right(s) of usage for any municipal purposes, and shall further be subject to zoning, subdivision, permitting, building code, or similar land use requirements.

Any right(s) granted pursuant to this chapter shall, unless otherwise articulated in any specific franchise agreement, extend to all areas of the city as it is now constituted, and to additional areas as the city may increase in size by annexation or otherwise.

Any right(s) granted pursuant to this chapter shall not constitute any waiver or abdication of any of right(s) or obligation(s) conferred or imposed upon the city under the statutes and/or constitutions of the state of California and the United States, except as otherwise specifically set forth herein, or as may be legally waived or abdicated pursuant to a written agreement entered into pursuant to this chapter.

In any agreement entered into pursuant to this chapter, the city shall expressly retain the right(s) to use, control and regulate, through the exercise of its police power, the use of city streets, public easements and other public places, and the space(s) above and beneath them, and to impose such other regulation(s) as may be determined by the city council to be necessary in the exercise of its police power to protect the health, safety and welfare of the public.

(Ord. 352-2001 §1(part))

Any right(s) granted pursuant to this chapter shall not constitute the granting of any right, privilege or authority to engage in any other activity than such activity(ies) as may be articulated in any agreement entered into pursuant to this chapter.

Any right(s) granted pursuant to this chapter shall not constitute, and shall not be deemed to be, exclusive franchise right(s), unless expressly articulated in any agreement entered into pursuant to this chapter, and the city reserves the right to itself to make or grant similar right(s) or grant similar right(s) to any other person, firm or corporation.

(Ord. 352-2001 § 1 (part))

No franchise right(s) granted, or purportedly granted, pursuant to this chapter or any written agreement shall vest with any potential franchisee or be valid, unless:

A. Such right(s) and agreement have been approved by majority vote of the city council;

B. The potential franchisee has filed with the city clerk a notice of written acceptance of any terms agreed upon pursuant to this chapter; and

C. Any such right(s) are approved by the city attorney.

(Ord. 352-2001 §1(part))

In consideration for the grant of any franchise pursuant to this chapter, any potential franchisee shall pay to the city either:

A. A sum equal to three percent Broughton Formula or one percent whichever is greater;

B. Payment of one percent of all revenues received from the sale of gas, and from the transportation of gas to customers within the city, and from revenues accruing to any franchisee from any use of its utility facilities within the city by other entities; or

C. Sum or amount otherwise agreed to by the city and the franchisee.

Payment of the franchise fee shall not exempt the franchisee from any lawful taxation upon its property, or from sales and use taxes, and from fees and taxes that are uniform and generally applicable to businesses alike.

(Ord. 352-2001 §1(part))

The city administrator, or other authorized city representative, shall have access to the books of any franchisee for the purpose of auditing or checking to insure that the franchise fee has been correctly computed and paid.

(Ord. 352-2001 §1 (part))

The city administrator, or other authorized city representative, shall be designated in any agreement entered into pursuant to this chapter to be the official of the city having full power and authority to take appropriate action for and on behalf of the city and its inhabitants to enforce the provisions of this chapter, and to investigate any alleged violations or failure of any franchisee to comply with the provisions hereof, or to adequately and fully discharge its responsibilities and obligations under this chapter or any agreement entered into pursuant to this chapter. The failure or omission of said official city representative to so act shall not constitute any waiver or estoppels nor limit independent action by other city officials.

(Ord. 352-2001 §1(part))

Any franchisee granted right(s) pursuant to this chapter shall at all times take all reasonable and necessary action(s) to assure an adequate long-term supply of gas to its customers at the lowest reasonable cost. If the supply of gas to city customers should be interrupted, the franchisee shall take all necessary and reasonable actions to restore such supply at the earliest practicable time. In the event the company's gas system is partially or wholly destroyed or incapacitated, the company shall use due diligence to restore its system to satisfactory service within the shortest practicable time.

(Ord. 352-2001 §1(part))

Any franchisee granted right(s) pursuant to this chapter shall assure that the gas it distributes meets with the minimum standards promulgated by the California Public Utilities Commission, and such franchisee shall keep on file with the city copies of P.U.C. rules regulating the service of gas utilities, and any tariff provisions of the franchisee setting minimum standards for gas service, as the same may be amended from time to time, and the city shall have access to all records of the franchisee monitoring compliance with such standards. Prior to final adoption by the city of this franchise agreement prepared pursuant to this chapter, the franchisee shall file with the P.U.C. such amendments to its tariffs as may be necessary to make its tariff provisions compatible with the provisions of this chapter, and shall report to the city any changes that have been made for this purpose.

(Ord. 352-2001 §1(part))

At the city's option, any potential franchisee may be required to pay in advance, or reimburse the city for, expenses incurred for: city staff time including attorney's fees, the publication of notices, the publication and codification of any supplemental ordinances, and any other associated costs arising from the negotiations of any franchise agreement contemplated pursuant to this chapter. None of the expenses paid or reimbursed by the franchisee under this section shall be surcharged against city ratepayers

(Ord. 352-2001 §1(part))