Chapter 13.24
GAS AND WATER FRANCHISE*

Sections:

13.24.010    Definitions.

13.24.020    Granting of Franchise.

13.24.030    Relocation of Pipes.

13.24.040    Duration of Franchise.

13.24.050    Payment for Use.

13.24.060    Report of Receipts.

13.24.070    Granting Under Certain Act.

13.24.080    Maintenance Standards.

13.24.090    Replacing Conditions.

13.24.100    Payment for Publication.

*    For statutory provisions authorizing cities to grant franchises, see Government Code § 39732; for provisions on gas franchises by municipalities, see Public Utilities Code § 6201 et seq.

13.24.010 Definitions.

Whenever in this chapter the words or phrases in this section are used, they shall have the respective meanings assigned to them in the following definitions:

A. “City” means the City of Carmel-by-the-Sea, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.

B. “Gas” means natural or artificial gas, or a mixture of natural and artificial gas.

C. “Water” includes both potable and nonpotable, other than sewage.

D. “Grantee” means Pacific Gas and Electric Company and/or California-American Water Company (CAL AM) and their lawful successors or assigns.

E. “Install and use” means to lay, construct, erect, install, operate, maintain, use, repair or replace.

F. “Pipes and appurtenances” means pipes, pipelines, mains, services, traps, vents, vaults, manholes, meters, gauges, regulators, valves, conduits, appliances, attachments, appurtenances and, without limitation to the foregoing, any other property located or to be located in, upon, along, across, under or over the streets of the City, and used or useful in transmitting and/or distributing gas or water.

G. “Streets” means the public streets, ways, alleys and places as the same now or may hereafter exist within the City, including State highways and freeways established in the City. (Ord. 93-27 § 1, 1993; Ord. 82 C.S. § 1, 1963; Code 1975 § 1400.01).

13.24.020 Granting of Franchise.

The franchise to install, maintain and use in the streets of the City all pipes and appurtenances for transmitting and distributing gas and/or water to the public for any and all purposes is granted to the grantee. (Ord. 93-27 § 1, 1993; Ord. 82. C.S. § 1, 1963; Code 1975 § 1400.02).

13.24.030 Relocation of Pipes.

The grantee shall relocate, at its own expense, without expense to City or adjacent property owners, any pipes and appurtenances theretofore installed, and then maintained or used under this franchise, if and when made necessary by any lawful change of grade, alignment or width of any streets by City, or the bringing of the traveled portion of such streets to lawful grade, including the construction of any subway or viaduct; provided, however, that the cost of any such relocation made necessary by the construction or any lawful change of grade, alignment or width of any freeway constructed by the State of California shall be divided equally between the grantee and the State of California. (Ord. 82 C.S. § 1, 1963; Code 1975 § 1400.03).

13.24.040 Duration of Franchise.

The franchise shall be indeterminate; that is to say, the franchise shall endure in full force and effect until the same shall, with the consent of the Public Utilities Commission of the State of California, be voluntarily surrendered or abandoned by the grantee, or until the State or some municipal or public corporation thereunto duly authorized by law purchases by voluntary agreement or condemns and takes under the power of eminent domain all property actually used and useful in the exercise of the franchise and situate in 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 grantee. (Ord. 82 C.S. § 1, 1963; Code 1975 § 1400.04).

13.24.050 Payment for Use.

The grantee shall, during the life of the franchise, pay to City two percent of the grantee’s gross annual receipts arising from the use, operation or possession of the franchise; except that this payment shall be not less than one percent of the gross annual receipts of the grantee from the sale of gas or water within the limits of City under the gas franchises or both the water franchises. (Ord. 93-27 § 1, 1993; Ord. 82 C.S. § 1, 1963; Code 1975 § 1400.05).

13.24.060 Report of Receipts.

The grantee 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 this 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 grantee during the preceding calendar year, or such fractional calendar year, from the sale of gas and/or water within City. Grantee shall pay to City within 15 days after the time for filing such statement, in lawful money of the United States, the aforesaid percentage of its gross receipts for such calendar year, or such fractional calendar year, covered by such statement. Any neglect, omission or refusal by the grantee to file such verified statement, or to pay the percentage at the time and in the manner specified, shall be grounds for the declaration for a forfeiture of this franchise and of all rights of grantee under this chapter. (Ord. 93-27 § 1, 1993; Ord. 82 C.S. § 1, 1963; Code 1975 § 1400.06).

13.24.070 Granting Under Certain Act.

The franchise is granted under the Franchise Act of 1937, as amended, found in California Public Resources Code Section 6201 et seq. (Ord. 79-21 § 19, 1979; Ord. 82 C.S. § 1, 1963; Code 1975 § 1400.07).

13.24.080 Maintenance Standards.

A. All pipes and appurtenances which shall be installed, maintained and used under and pursuant to the provisions of this chapter and in the exercise of the right, privilege and franchise granted in this chapter shall be laid in a good and workmanlike manner and at least 18 inches below the surface of the streets under the direction of the Director of Public Works of the City, or other officer having charge thereof, and in compliance with all valid ordinances and regulations enacted and prescribed by the City under its police power.

B. The grantee shall not use any portion of any street in the City for the installation, maintenance or use of pipes and appurtenances in such manner as to injure or destroy any tree or tree shrub therein, unless a permit in writing is first obtained for such purpose from the Director of Public Works, or other officer having charge thereof. In the event the Director of Public Works or other officer refuses to issue any such permit when applied for by the grantee, the grantee may appeal such refusal by filing an appeal in writing with the City Clerk addressed to the City Council. Such appeal shall be heard at the next ensuing regular meeting of the City Council, and the determination of the City Council thereupon after such hearing shall be final and conclusive, and binding on all parties interested. (Ord. 82 C.S. § 1, 1963; Code 1975 § 1400.08).

13.24.090 Replacing Conditions.

The grantee shall, immediately upon laying, replacing or repairing any pipes and appurtenances, at its own cost and expense, place the streets, or so much thereof as may have been damaged thereby, in as good order and condition as that in which they were before being disturbed or excavated for the purpose of laying, replacing or repairing the pipes and appurtenances. This requirement includes the continued maintenance of all trench lines to include timely repair of trench settlement and/or pavement damage due to trench settlement or due to grantee’s excavation of the pavement. (Ord. 93-27 § 1, 1993; Ord. 82 C.S. § 1, 1963; Code 1975 § 1400.09).

13.24.100 Payment for Publication.

The grantee shall pay to City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting of the franchise, such payment to be made within 30 days after City shall have furnished grantee with a written statement of such expenses. (Ord. 82 C.S. § 1, 1963; Code 1975 § 1400.10).