Chapter 13.32 PIPELINE FRANCHISES

Every franchise hereafter granted by the city to lay or construct from time to time and to maintain, operate, renew, repair, change the size of, remove or abandon in place pipes and pipelines for the collection, transportation, or distribution of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud, steam and other liquid substances which are not more hazardous than the aforementioned substances, together with all manholes, valves, appurtenances and service connections necessary or convenient for the operation of such pipes or pipelines, including conduits, cathodic protection devices, wires, cables and other appurtenances necessary or convenient for the exercise of the franchisee’s business, in, under, along or across any and all streets within the city, except as otherwise provided in the ordinance granting the franchise, shall be granted upon and be subject to the rules, regulations, restrictions, terms and conditions of this chapter, in addition to those rules, regulations, restrictions, terms and conditions set forth in the ordinance granting the franchise. This chapter shall not apply to any public utility organized for the purpose of supplying or distributing water, to any mutual water company, or to any other water company when transporting water. (Prior code § 7-7.102)

13.32.030 Pole lines.

Nothing in this chapter or in any ordinance granting such a franchise shall be construed to permit the grantee to construct new poles or other facilities aboveground. (Prior code § 7-7.103)

13.32.040 Definitions.

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

“Department” means the community development department of the city.

“Director” means the director of the community development department of the city.

“Facility” or “appurtenance” means any property of the franchisee, including, but not limited to, pipelines, pump stations, and service connections with the franchisee’s facilities, whether installed by the franchisee or not, erected, constructed, laid, operated or maintained in, upon, over, under, along or across any street pursuant to any right or privilege granted by the franchise.

“Fire chief” means the fire chief of the city.

“Franchise” or “grantee” means the person to whom a franchise is granted pursuant to this chapter and any person to whom such franchise is lawfully assigned.

“Franchise payment period” means a calendar year.

“Franchise report period” in all cases means a calendar year.

“Main” means any pipeline or conduit laid in, along or approximately parallel with any street for the collection, transmission or distribution of any substance or commodity.

“Major street” means any street, or portion thereof, designated as a major secondary highway in the Circulation Element of the General Plan.

“Minor street” means all streets in the city other than those designated as “major” or “secondary highways” in the Circulation Element of the General Plan.

“Person” means any individual, person, firm, partnership or corporation.

“Service connection” means the wires, pipes or conduits connecting the building or place where the service or commodity supplied by the franchisee is used or delivered, or is made available for use or delivery, with the supply line or supply main in the highway or with such supply line or supply main on private property.

“Street” means any street, road, highway, alley, lane, court or other public easement, and above and below the same, which now exists or may hereafter exist in the city and in which the city has the authority to grant a franchise. (Prior code § 7-7.104)

13.32.050 Term.

Unless the ordinance granting the franchise provides otherwise, the term of the franchise shall be twenty-five years. (Prior code § 7-7.105)

13.32.060 Acceptance of franchises.

The franchisee, within thirty days after the passage of the ordinance granting the franchise, shall file with the city clerk and with the director a written acceptance of the terms and conditions of such ordinance. (Prior code § 7-7.106)

13.32.070 Nonexclusive franchises.

The granting of the franchise shall not be construed to prevent the city from granting any identical or similar franchise to any person other than the franchisee. Nothing contained in this chapter shall ever be construed so as to exempt the franchisee from compliance with all laws, rules and regulations of the city now in effect or which may be hereafter adopted which are not inconsistent with the terms of the franchise. (Prior code § 7-7.107)

13.32.080 Change in status.

If, after the granting of a franchise to other than a public utility, the franchisee qualifies before the Public Utilities Commission of the state as a common carrier, or if, after the granting of a franchise to a public utility, the franchisee is found or determined to not be a public utility or common carrier, the franchisee shall then have no right to continue to operate under this chapter after the date of such qualification, except with the consent of the council, granted upon such additional terms and conditions as the council may deem proper. (Prior code § 7-7.108)

13.32.090 Maps.

Within ninety days following the date in which any facilities or appurtenances have been laid, removed or abandoned under the franchise, the franchisee shall file a map or maps with the department showing the accurate “as built” location, depth and size of the facilities or appurtenances so laid, removed or abandoned. (Prior code § 7-7.109)

13.32.100 Insurance.

A. On or before the commencement of any franchise operation, the franchisee shall obtain or provide satisfactory evidence of having polices of liability and worker’s compensation insurance from companies authorized to transact business in the State by the Insurance Commissioner of the State.

1. The policy of liability insurance shall:

a. Be issued to the franchisee and name the city and its officers, agents and employees as additional insured; and

b. Indemnify for all liability for personal and bodily injury and death and damages to property arising from activities conducted pursuant to the franchise by providing coverage therefor, including, but not limited to, coverage for:

i. Negligent acts or omissions of the franchisee, and the agents, servants, and employees thereof, committed in the conduct of franchise operations,

ii. Provide a combined single limit liability insurance in the amount of one million dollars, and

iii. Be noncancellable without thirty days’ written notice thereof directed to the city.

2. The policy of worker’s compensation insurance shall:

a. Have been previously approved as to substance and form by the Insurance Commissioner of the state;

b. Cover all employees of the franchise who, in the course and scope of their employment, are to conduct or do work pursuant to the franchise operations;

c. Provide for every benefit and payment presently or hereafter conferred by Division 4 of the Labor Code of the state upon an injured employee, including vocational rehabilitation and death benefits; and

d. Be noncancellable without thirty days’ written notice thereof directed to the city. The franchisee shall file with the city prior to the commencement of any franchise operation either certified copies of such policies or a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force and providing the following information with respect to such policy:

i. The policy number,

ii. The date upon which the policy will become effective and the date upon which it will expire,

iii. The names of the named insured and any additional insureds,

iv. The subject of the insurance,

v. The type of coverage provided by the insurance,

vi. The amount of the limit of coverage provided by the insurance, and

vii. A description of all endorsements which form a part of the policy.

B. No franchise operation shall commence until the franchisee has complied with the provisions of this section and any such operations shall be suspended during any period the franchisee fails to maintain such policies in full force and effect. (Prior code § 7-7.110)

13.32.110 Faithful performance bonds.

On or before the effective date of the ordinance granting the franchise, the franchisee shall file and thereafter at all times during the life of the franchise keep on file with the city clerk a corporate surety bond approved by the city attorney running to the city in the penal sum of ten thousand dollars, with a surety to be approved by the city attorney, conditioned that the franchisee shall well and truly observe, fulfill, and perform each condition of the franchise and that, in case of any breach of any condition of the bond, the whole amount of the penal sum shall be deemed to be liquidated damages and shall be recoverable from the principal and sureties of the bond. If such bond is not filed prior to the effective date of the ordinance granting the franchise, the award of the franchise may be set aside and the ordinance granting the franchise repealed at any time prior to the filing of such bond, and any money paid in consideration for such award of the franchise shall be deemed forfeited. In the event such bond, after it has been so filed, shall at any time during the life of the franchise become insufficient, the franchisee agrees to renew such bond, subject to the approval of the city attorney, within ten days after written notice from the city to do so. (Prior code § 7-7.111)

13.32.120 Alternate security.

In lieu of the bond required pursuant to Section 13.32.110, the franchisee may file alternate security approved by the city attorney. (Prior code § 7-7.112)

13.32.130 Determination of length.

Whenever the length of any wire, pipe, or conduit is a factor in calculating any payment due under any such franchise granted by the city, all service connections shall be excluded in determining such length. (Prior code § 7-7.113)

13.32.140 Forfeiture.

The franchise shall be granted and shall be held and enjoyed upon each and every condition contained in the ordinance granting the franchise, including such conditions contained in this chapter as are incorporated by reference in such franchise ordinance, and shall ever be strictly construed against the grantee. Any neglect, failure or refusal to comply with any of the conditions of the franchise shall constitute grounds for the suspension or forfeiture thereof. The council, prior to any suspension or forfeiture of the franchise, shall give to the grantee not less than thirty days’ notice in writing of any default thereunder. If the grantee, within the noticed period, does not begin the work of compliance or, after such beginning, does not prosecute the work with due diligence to completion, the council shall hold a hearing at which the grantee shall have the right to appear and be heard, and thereupon the council will determine whether such conditions are material and essential to the franchise and whether the grantee is in default with respect thereto and may declare the franchise suspended or forfeited. Notice of such hearing shall be given to the grantee by certified mail not less than five days before such hearing. (Prior code § 7-7.114)

13.32.150 Value of franchises.

The grantee of any franchise awarded to a public utility, by accepting the terms and conditions thereof, stipulates and agrees that in any proceeding for the purpose of adjusting the rates of the grantee, no greater value shall be placed upon the franchise that the actual cash paid therefor by the grantee. (Prior code § 7-7.115)

13.32.160 State highways.

If any street, or portion thereof, shall become a state highway, except for the right to continue to collect franchise payments in such other rights as by law remain with the city, the state shall succeed to all rights reserved to the city by the franchise, but this provision shall not preclude the grantee from receiving reimbursement for the relocation of its facilities if and to the extent otherwise lawfully entitled to.

This section shall apply to any street, or portion thereof, which becomes a state highway in which the grantee maintains its facilities under the authorization of the franchise at the time such street, or such portion thereof, becomes a state highway, whether at such time it is under the jurisdiction of the city or any other public entity.

This section shall not require any change or location in a state highway for a temporary purpose. (Prior code § 7-7.116)

13.32.170 Eminent domain.

No franchise granted by the city shall in any way impair or affect the right of the city, or any successor in authority, to acquire the property of the grantee by purchase or condemnation, and nothing contained in such a franchise shall be construed to contract away, modify, or abridge, either for a term or in perpetuity, the city’s right of eminent domain in respect to any public utility. (Prior code § 7-7.117)

13.32.180 Publication costs.

The grantee shall pay to the city, within thirty days after receiving a statement therefor, all advertising and publishing costs, including the cost of publishing the ordinance, if necessary, incurred in connection with the granting of the franchise. (Prior code § 7-7.118)

13.32.190 Assignments.

The grantee shall not sell, transfer, assign, or lease the franchise, or any part thereof, except with the consent of the council. Such sale, transfer, assignment or lease shall be made only by filing with the council a copy of the duly executed instrument of such sale, transfer, assignment or lease and a written request for the consent of the council to such sale, transfer, assignment, or lease. If such duly executed instrument and such written request is not filed with the council before the expiration of sixty days after the effective date of such sale, transfer, assignment or lease, then, upon the expiration of said sixty days, the franchise shall be subject to forfeiture, and the council, without notice, by ordinance, may repeal the franchise. As a condition to the granting of consent to such sale, transfer, assignment or lease, the council may impose such additional terms and conditions upon the franchise and upon the grantee or assignee which the council may deem to be in the public interest. Nothing contained in this section shall be construed to grant to the grantee the right to sell, transfer, assign or lease the franchise, or any part thereof, except in the manner set forth in this section. This section shall apply to any assignment, whether by operation of law, by a voluntary act of the grantee, or otherwise. (Prior code § 7-7.119)

13.32.200 Prior franchises.

All facilities erected, constructed, laid, operated or maintained by the grantee in the streets, including services connected with the grantee’s facilities, whether installed by the grantee or not, in the area described in and by virtue of the authority provided by the ordinance granting the franchise, prior to the effective date of such ordinance, except those maintained under prior right other than franchise, shall become subject to all the terms and conditions of such ordinance upon such effective date. (Prior code § 7-7.120)

13.32.210 City officers.

Any right or power conferred, or duty imposed, upon any officer, employee, or department of the city shall be subject to transfer to any other officer, employee, or department of the city if the city manager so designates. (Prior code § 7-7.121)

13.32.220 Hold harmless.

The grantee shall be responsible to the city and save and defend the city and its officers and employees free and harmless from all damages or liability arising from the use, operation or possession of the franchise and from the use, operation or maintenance of the facilities erected, constructed, laid, operated or maintained thereunder. (Prior code § 7-7.122)

13.32.230 Standards.

All facilities erected, constructed, laid, operated or maintained under the provisions of the franchise shall be erected, constructed, laid, operated or maintained in accordance with and conforming to all the laws, codes, rules and regulations now or hereafter adopted or prescribed by the council. (Prior code § 7-7.123)

13.32.240 Conflicting improvements.

If the city or any other public entity constructs or maintains any storm drain, sewer structure, or other facility or improvement under or across any facility of the grantee maintained pursuant to this chapter, the grantee shall provide at no expense to the city or other public entity such support as shall be reasonably required to support, maintain and protect the grantee’s facility. (Prior code § 7-7.124)

13.32.250 Relocation.

If the grantee, after reasonable notice, fails or refuses to relocate permanently or temporarily its facilities located in, on, upon, along, under, over, across or above any highway or to pave, surface, grade, repave, resurface or regrade as required pursuant to any provision of the franchise, the city or other public entity may cause the work to be done and shall keep an itemized account of the entire cost thereof, and the grantee shall hold harmless the city, and its officers and employees, from any liability which may arise or be claimed to arise from the moving, cutting, or alteration of any of the grantee’s facilities or the turning on or off of water, oil, or other liquid, gas or electricity.

The grantee agrees to, and shall, reimburse the city or other public entity for such cost within thirty days after the presentation to the grantee of an itemized account of such costs. (Prior code § 7-7.125)

13.32.260 Defective facilities.

If any portion of any street shall be damaged by reason of defective facilities laid or constructed under the franchise, the grantee, at it own expense, shall repair any such defect, and put such street in as good condition as it was before such damage was incurred, to the satisfaction of the city. If the grantee, within ten days after the receipt of written notice from the city instructing it to repair such damage, shall fail to commence to comply with such instructions, or thereafter shall fail diligently to prosecute such work to completion, then the city immediately may do whatever work is necessary to carry out such instructions at the cost and expense of the grantee, which cost and expense, by the acceptance of the franchise, the grantee agrees to pay upon demand. If such damage constitute an immediate danger to the public health or safety, requiring the immediate repair thereof, the city, without notice, may repair such damage, and the grantee shall agree to pay the reasonable cost thereof upon demand. (Prior code § 7-7.126)

13.32.270 Hazardous substances.

Prior to the issuance of any excavation permit for the construction or installation of any pipeline for the transmission of flammable liquids or gases, which are heavier than air, approval shall be obtained from the fire chief. Such approval should be based on the determination that no undue fire hazard will be created to life or property in the area through which the proposed pipeline will be located. To make such determination, consideration shall be given to:

A. The type of commodity to be transmitted;

B. The density of the population or the structural development in the area through which the pipeline will be located;

C. The adequacy of water supplies for fire control purposes;

D. The extent of available public fire protection facilities; and

E. The number and location of shut-off valves in line. (Prior code § 7-7.127)

13.32.280 Compensation – Rates.

As consideration for the franchise granted, the franchisee shall pay to the city the following:

A. Public Utilities. The franchisee of any franchise awarded to a bona fide public utility, as consideration for such franchise, including the extension, renewal or continuation of a previously granted franchise, shall pay to the city in lawful money of the United States two percent of the gross annual receipts of the franchisee arising from the use, operation or possession of the franchise; provided, however, such payment shall in no event be less than one percent of the gross annual receipts of the applicant derived from the sale within the limits of the municipality of the utility service for which the franchise is awarded or such other amounts as are provided in Section 6231 of the Public Utilities Code of the state. The city reserves the right to change its fees if, following a public hearing, such action is not in conflict with the laws of the state.

B. Others. The franchisee of any franchise awarded to any other person than a public utility, as further consideration for such franchise, including the extension, renewal or continuation of a previously granted franchise, shall pay to the city in lawful money of the United States the following fees:

1. In the case of an initial grant of a franchise or franchises which extend, renew or continue previously granted franchises, a base granting fee of five thousand dollars for pipelines with a total length of one-quarter mile or more or two thousand five hundred dollars for pipelines with a total length of less than one-quarter mile shall be paid within thirty days after the council adopts the ordinance granting the franchise and prior to signing the written acceptance of the franchise pursuant to Section 13.32.060. If, at any time during the first five years following the grant of a franchise, additional pipeline is added which will result in a total length of pipeline of one-quarter mile or more, the five thousand dollar granting fee shall be required at the time such footage is added.

2. A base annual fee shall be paid within sixty days after the end of each calendar year and during the life of the franchise for each and every year, including the year of granting the franchise, according to the “franchise payment period,” as defined in Section 13.32.040, in the amount of twelve cents per lineal foot of pipe for pipelines with an internal diameter of eight inches or less and an additional two cents per inch of internal diameter per foot of pipe for each inch or portion thereof in excess of eight inches. In determining the number of feet of pipeline upon which the annual fee will be computed, the greatest number of feet of pipeline covered by the franchise during the calendar year for which the payment is due will be utilized. The base annual fee shall be paid no later than seventy-five days following the end of the calendar year, and a penalty at the rate of ten percent per month, or fraction thereof, beyond the payment date shall be charged, but in no event shall such penalty exceed fifty percent.

3. The city reserves the right to adjust the base fees established by this subsection B at the time after the effective date of the ordinance granting a franchise.

C. Base Construction Charges. The holder of the franchise shall pay at the time of the installation, relocation, or replacement of any pipeline or other facility covered by the franchise a base construction charge of one thousand five hundred dollars for each one-half mile of pipeline, or fractional part thereof, installed, replaced, or relocated on major streets and one thousand dollars per one-half mile, or fractional part thereof, on minor streets. The city reserves the right to change the base fees established by this subsection at any time after the effective date of the ordinance granting a franchise.

D. Adjustments. The amount of each base fee provided for in subsections B and C of this section shall be revised at the time payment is due pursuant to this section in accordance with the following formula:

1. If, ninety days prior to the date on which payment from the franchise holder shall be due, the Wholesale Price Index, all commodities (1967 equals 100.0), prepared by the United States Bureau of Labor Statistics, Department of Labor, shall stand at a level different than the base level, as defined in this subsection, then the rate of payment to the city shall vary from the amounts set forth in this section in direct proportion as said Index has increased or decreased from the base level. “Base level,” for the purposes of this section, shall be the level of the Index on December 31, 1983.

2. If said Bureau shall discontinue the preparation of said Wholesale Price Index using prices prevailing during the year 1967 as the base of 100, and if no transposition table prepared by said Bureau is available which is applicable to said year 1967, then the amount of each annual payment shall be computed by using the successor or most nearly comparable successor Index thereto.

3. In no event shall any fee less than the base fees established by subsections B and C of this section be charged. (Prior code § 7-7.201)

13.32.290 Proration of payments.

In the event of the abandonment of facilities with the approval of the city as elsewhere in this chapter provided, or in the event of the removal of such facilities by the franchisee, or in the event of the grant of a franchise with an initial franchise payment period of less than one year, the annual franchise fee required by subsections A and B of Section 13.32.28 shall be prorated for the calendar year in which such removal, abandonment, or grant occurs as of the end of the calendar month in which removed, abandoned or granted. (Prior code § 7-7.202)

13.32.300 Franchise fee – Records.

The franchisee shall keep and preserve for a period of five years subsequent to the date of the most recent franchise fee determination all of the records necessary to determine the amount of such franchise fee.

At all reasonable times, the franchisee shall permit the city or its duly authorized representative to examine all property of the franchisee erected, constructed, laid, operated or maintained pursuant to the franchise, together with any appurtenant property of the franchisee, and to examine and transcribe any and all books, accounts, papers, maps and other records kept or maintained by the franchisee or under its control which concern the operation, affairs, transactions, property, or financial condition of the franchisee with respect thereto. Such records shall be made available to the city at a location in the county. (Prior code § 7-7.203)

13.32.310 Construction requirements.

Pipelines and appurtenances shall be constructed and maintained in a good workmanlike manner in conformity with the terms and conditions of any law, rule or regulation now in effect or as hereafter amended, adopted or prescribed by the city. All pipes laid under the franchise shall be of first-class material. All pipelines and appurtenances shall be installed in accordance with the latest revision of the American Standard Code of Pressure Piping ASA B 31.4. (Prior code § 7-7.301)

13.32.320 New installations or replacements.

New installations or replacements of pipelines and appurtenances and all other facilities necessary for the installation, operation, maintenance and safety of pipelines and conduits shall be laid and maintained only pursuant to permits issued by the department. All such installations or replacements shall be reviewed by the director as to the most desirable location in the streets of the city, and his decision shall be final and binding on the franchisee. (Prior code § 7-7.302)

13.32.330 Construction permits.

Where the provisions of any law, rule, or regulation which shall be in force at that time require the issuance of an excavation, encroachment, or other type of permit, the franchisee shall not commence any excavation or encroachment work under the franchise until the franchisee shall have obtained such permit from the department, except in cases of emergency affecting the public health, safety, or welfare or the preservation of life or property, in which case the franchisee shall apply for such permit not later than the next business day.

The application of the franchisee for such permits shall show the following facts: the length and proposed location of the pipeline and/or appurtenance intended to be used and such other facts as the department may require. (Prior code § 7-7.303)

13.32.340 Work on and restoration of streets.

The work of constructing, laying, replacing, maintaining, repairing or removing all pipelines and appurtenances authorized under the provisions of this chapter in, over, under, along or across any street shall be conducted with the least possible hindrance to the use of the street for purposes of travel, and, as soon as such work is completed, all portions of the street which have been excavated or otherwise damaged thereby shall promptly and in a workmanlike manner be repaired, replaced or restored and placed in as good condition as the same was before the commencement of such work. Such restoration, repair or replacement work shall be done to the satisfaction of the director at the expense of the franchisee and in accordance with the terms and conditions of all statutes and laws.

In the event the franchisee shall fail or neglect to make such highway repair, replacement or restoration work, then, ten days after notice therefor has been given the franchisee by the director, the city may repair, replace or restore such highway at the expense of the franchisee. The franchisee agrees to pay to the city the cost of performing such work. The amount so chargeable shall be the direct cost of such work, plus the current rate of overhead being charged by the city for reimbursable work. (Prior code § 7-7.304)

13.32.350 Failure to timely comply – Additional fees.

In the event the franchisee shall fail to complete the work within the time specified in the permit, the city may require the franchisee to pay to the city not more than two hundred dollars per day as liquidated damages for each day construction extends beyond the time specified in the permit.

Whenever the franchisee shall fail to complete any work required by the terms and conditions of the franchise and the permits issued thereunder, within the time limits required thereby, the city may complete, or cause to be completed, any and all such work at the expense of the franchisee. The franchisee agrees to pay to the city the cost of performing such work. The amount so chargeable to the franchisee shall be the direct cost of such work, plus the current rate of overhead being charged by the city for reimbursable work. (Prior code § 7-7.305)

13.32.360 Construction completion statement.

Upon the completion of the construction of any pipeline or appurtenance constructed pursuant to the franchise, the franchisee shall submit a statement to the director identifying the permit or permits issued by the department, the total length of the pipeline the construction of which was authorized under such permit or permits, and the total length of pipeline or appurtenance actually laid. (Prior code § 7-7.306)

13.32.370 Damage or injury – Franchisee responsibility.

The franchisee shall be responsible to the city and shall save and defend the city, and its officers, agents and employees, free and harmless from all damages or liability arising from any damage or injury suffered by any person by reason of any excavation or obstruction being improperly guarded during any work authorized pursuant to the franchise or the failure or neglect of the franchisee to properly perform, maintain or protect any phase of such work. (Prior code § 7-7.307)

13.32.380 Appurtenances.

The franchisee shall have the right to construct, maintain and repair such traps, manholes, conduits, valves, appliances, attachments, and appurtenances (collectively referred to in this section as “appurtenances”) as may be necessary or convenient for the proper maintenance and operation of the pipeline under the franchise, and such appurtenances shall be kept flush with the surface of the street and be so located as to conform to any law, rule or regulation of the city, or to any permit issued by the department in regard thereto, and shall not interfere with the use of the street for travel. The franchisee shall have the right, subject to such laws, rules or regulations as are now or may hereafter be in force, to make all necessary excavations in streets for the construction, maintenance, and repair of such appurtenances; provided, however, the franchisee shall first obtain an excavation permit from the department for doing any such work. (Prior code § 7-7.308)

13.32.390 Ordinary repairs.

The franchisee shall be privileged to excavate in roads or streets for line repairs for the number of days agreed upon by the franchisee and the department; provided, however, the franchisee shall first obtain an excavation permit from the department for doing any such work. (Prior code § 7-7.309)

13.32.400 Relocation of pipelines and appurtenances.

A. The city reserves the right to change the grade, to change the width, or to alter or change the location of any street over which the franchise is granted. If any of the pipelines, facilities or appurtenances heretofore or hereafter constructed, installed or maintained by the franchisee pursuant to the franchise on, along, under, over, in, upon or across any street is located in a manner which prevents or interferes with the change of grade, traffic needs, operation, maintenance, improvements, repair, construction, reconstruction, widening, alteration or relocation of the street, the franchisee shall relocate permanently or temporarily any such facility at no expense to the city upon the receipt of a written request from the director to do so and shall commence such work on or before the date specified in such written request, which date shall be not less than thirty days after the receipt of such written request. The franchisee shall thereafter diligently prosecute such work to completion.

B. The city reserves the right for itself, and all other public entities which are now or may later be established, to lay, construct, repair, alter, relocate, and maintain subsurface or other facilities or improvements of any type or description in a governmental but not proprietary capacity within the streets over which the franchise is granted. If the city or any other public entity finds that the location or relocation of such facilities or improvements conflicts with the facilities laid, constructed or maintained under the franchise, whether such facilities were laid before or after the facilities of the city or such other public entity were laid, the franchisee of such franchise, at no expense to the city or public entity, on or before the date specified in a written request from the director, which date shall be not less than thirty days after the receipt of such notice and request to do so, shall commence the work to change the location, either permanently or temporarily, of all facilities so conflicting with such improvements to a permanent or temporary location in such streets to be approved by the director and thereafter diligently prosecute such work to completion. If such street shall be subsequently constituted a state highway, while it remains a state highway the rights of the state shall be as provided in Section 680 of the Streets and Highways Code of the state. (Prior code § 7-7.310)

13.32.410 Breaks or leaks.

If any portion of the street shall be damaged by reason of breaks or leaks in any pipe, conduit or appurtenance constructed or maintained under the franchise, the franchisee thereof, at its own expense, immediately following written or oral notification thereof, shall promptly repair any such damage and put such street in as good condition as it was in before such damage or leak, all to the satisfaction of the department. The franchisee shall obtain an excavation permit from the department for doing any such work. (Prior code § 7-7.311)

13.32.420 Emergency equipment.

At all times during the term of the franchise, the franchisee shall maintain or arrange for, on a twenty-four hour a day basis, adequate emergency equipment and a properly trained emergency crew within a radius of twenty-five miles from any facility installed or maintained pursuant to the franchise for the purpose of shutting off the pressure and the flow of the contents of such facilities in the event of an emergency resulting from an earthquake, act of war, civil disturbance, fire, flood or any other cause or nature whatsoever. (Prior code § 7-7.312)

13.32.430 Removal or abandonment of facilities.

A. At the expiration, revocation or termination of the franchise or of the permanent discontinuance of the use of all or a portion of its facilities, the franchisee, within thirty days thereafter, shall make a written application to the city for authority either: (1) to abandon all or a portion of such facilities in place; or (2) to remove all or a portion of such facilities. The director shall determine whether any abandonment or removal which is thereby proposed may be effected without detriment to the public interest and under what conditions such proposed abandonment or removal may be safely effected. He shall then notify the franchisee of his determinations.

B. Within thirty days after the receipt of such notice, the franchisee shall apply for a permit from the department to abandon or remove the facility. Such permit shall contain the conditions of abandonment or removal as may be prescribed by the director.

The franchisee, within ninety days after obtaining such permit, shall commence and diligently prosecute to completion the work authorized by the permit. (Prior code § 7-7.313)

13.32.440 Removal or abandonment of facilities – Failure to comply.

A. If any facility to be abandoned in place subject to prescribed conditions shall not be abandoned in accordance with all such conditions, the director may make additional appropriate orders, including an order that the franchisee shall remove any or all such facilities. The franchisee shall comply with such additional orders.

B. In the event the franchisee shall fail to comply with the terms and conditions of abandonment or removal as may be required by this chapter and within such time as may be prescribed by the director, then the city may remove, or cause to be removed, such facilities at the franchisee’s expense. The franchisee shall pay to the city the cost of such work, plus the current rate of overhead being charged by the city for reimbursable work.

C. If, at the expiration, revocation or termination of the franchise, or of the permanent discontinuance of the use of all or a portion of its facilities, the franchisee, within thirty days thereafter, shall fail or refuse to make a written application for the above-mentioned authority, the director shall make the determination as to whether the facilities shall be abandoned in place or removed. The director shall then notify the franchisee of his determination. The franchisee shall thereafter comply with the provisions of subsection B of Section 13.32.430. (Prior code § 7-7.314)

13.32.450 Abandonment in place – Conditions.

Facilities abandoned in place shall be subject to the condition that if, at any time after the effective date of the abandonment, the director determines that the facility may interfere with any public project, the franchisee or its successor in interest shall remove the facility at its expense when requested to do so by the city or pay the city for the costs of such removal. (Prior code § 7-7.315)

13.32.460 Special provisions for oil pipelines – Rights granted.

A franchisee granted an oil pipeline franchise shall have the right during the life thereof to transport oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances through the pipelines maintained under the franchise. If the franchisee or assignee later qualifies before the Public Utilities Commission of the state as a common carrier, the franchisee or assignee shall then have no right to continue to operate under this chapter after the date of such qualification, except with the consent of the council granted upon such additional terms and conditions as the council may deem proper. Such additional terms and conditions shall be expressed by ordinance. (Prior code § 7-7.401)

13.32.470 Special provisions for oil pipelines – Materials used.

All pipelines used or to be used for the transportation of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances or other flammable liquids shall be first-class and standard material as set forth by current American Petroleum Institute pipeline specifications. (Prior code § 7-7.402)

13.32.480 Special provisions for oil pipelines – Approvals.

On all pipelines laid pursuant to the franchise, the fire chief shall approve where flush-valve connections shall be placed in the line. The availability of adequate water supplies, the commodity transmitted in the line and the location of control valves shall be considered when making such determinations. Such flush-valve connections shall be installed in the manner prescribed by the fire chief. (Prior code § 7-7.403)

13.32.490 Special provisions for oil pipelines – Reports.

The franchisee, during the life of the franchise, within ninety days after the expiration of each franchise payment period, shall:

A. File with the director a report verified by the oath of the franchisee or by the oath of a duly authorized representative of the franchisee showing for the immediately preceding franchise period the length of lines in streets, the internal diameter of such lines, the rate per foot per year, and the total amount due the city; and

B. File with the director a report showing the permit number of each permit obtained for the installation of new mains during the immediately preceding franchise payment period, together with the length and size of such mains. On such report the franchisee shall show any change in franchise footage since the last franchise payment period, segregating such footage as to new mains laid, old mains removed, old mains abandoned in place and the footage of mains in territory annexed or incorporated since the last franchise payment period. (Prior code § 7-7.404)

13.32.500 Special provisions for oil pipelines – Payments due.

Except for pipelines lawfully maintained other than by the authority granted by the franchise, the annual payments shall accrue from the respective dates of installation, whether before or after the effective date of the ordinance granting the franchise, and such payments, together with the initial construction charges, if any, shall be due and payable annually. (Prior code § 7-7.405)

13.32.510 Special provisions for oil pipelines – Nonapplicability.

The provisions of Sections 13.32.460, 13.32.490 and 13.32.500 shall not apply to public utilities. (Prior code § 7-7.406)

13.32.520 Public utilities – Reports of gross receipts.

The franchisee of any franchise awarded to a public utility shall file with the director for each franchise payment period, within ninety days after such period, two copies of a report verified by the oath of the manager or any responsible officer of the franchisee (except where the franchisee is an individual, in which case the report shall be verified by the oath of the franchisee) showing the total gross receipts of the franchisee for the franchise payment period received or accrued in connection with the furnishing of the commodity or service arising from the use or operation of the franchise, together with such additional data as is necessary in the opinion of the director to calculate or verify the calculation of the annual payment required by subsection A of Section 13.32.280 (or the pro rata amount thereof for the first period if less than one year) and which payment shall be paid within fifteen days after such ninety day period. In the event the amount paid is incorrect in the judgment of the city, it may order the payment of such additional sum as it may find thereunder, and, if not paid, or if paid under protest, the amount may be determined by suit. (Prior code § 7-7.501)

13.32.530 Public utilities – Reports of permits for mains.

Within ninety days after the expiration of each franchise report period, the franchisee shall file with the director a report in triplicate showing the permit number of each permit obtained for the installation of new mains during the immediately preceding franchise report period, together with the length and size of such mains. On such report the franchisee shall show any change in franchise footage since the last franchise report period, segregating such footage as to new mains laid, old mains removed, old mains abandoned in place, and the footage of mains in territory annexed or incorporated since the last franchise. (Prior code § 7-7.502)

13.32.540 Public utilities – Payments.

The franchisee, during the life of the franchise, shall make annual payments to the city as provided in subsections A, C and D of Section 13.32.280. (Prior code § 7-7.503)

13.32.550 Special provisions for gas pipelines – Rights granted.

The franchisee shall have the right, during the period covered by the franchise and subject to the terms and conditions thereof, to make service connections with all property in the city adjoining streets and to furnish and distribute gas through such pipes and pipelines to all territory in the city adjacent to such pipelines for any purpose. (Prior code § 7-7.601)

13.32.560 Special provisions for gas pipelines – Approval.

On all pipelines carrying gas heavier than air laid pursuant to the franchise, the fire chief shall approve where flush-valve connections shall be placed in the line. The availability of adequate water supplies, the commodities transmitted in the line, and the location of control valves shall be considered when making such determination. Such flush-valve connections shall be installed in the manner prescribed by the fire chief. (Prior code § 7-7.602)