Chapter 10.8 Special Provisions for Natural Gas and Other Public Utility Pipeline Franchises

10.8.10 Purpose of this Chapter

The purpose of this Chapter is to establish regulations governing water, natural gas and other public utility pipeline franchises.

10.8.20 Rights Granted

The franchisee that provides water service or natural gas service has the right, during the term covered by the franchise and subject to its provisions, to make service connections with all property that adjoins public streets and to distribute water or gas for any purpose through its pipelines to all territory in the City adjacent to those pipelines.

10.8.30 Plan Approval

All new pipelines, replacements, and extensions for the transmission of water or gas must be constructed, laid, and designed according to plans approved by the Community Development Director and by all other regulatory agencies that have jurisdiction.

10.8.40 Condition of Approval

The Fire Chief must also approve the plans if pipelines for the transmission of water to be laid, extended or replaced are designed to operate in conjunction with related facilities, such as fire hydrants. The location of fire hydrants must take into consideration required domestic demand and meet water pressure standards specified by the Board of Fire Underwriters. As further consideration for the granting of a water pipeline franchise, the franchisee must, at the request of the City Fire Department, install fire hydrants at no cost to the City (except a reasonable monthly rental) designed to specifications reasonably established by the Fire Chief in consultation with the Director. Fire hydrants must be of a size and type acceptable to the Fire Chief and must be installed at those locations along the franchisee’s water mains that are designated by the Fire Chief.

10.8.50 Gas Pipelines

On all pipelines carrying gas heavier than air that are laid in accordance with the franchise, the Director must approve the placement and method of installation of flush-valve connections in the pipeline. The availability of adequate water supplies, the commodities transmitted in the line, and the location of control valves will be considered when making that determination.

10.8.60 Report of Gross Receipts

The franchisee of any franchise awarded to a mutual water company, or to a public utility (other than a public utility operating a pipeline system transmitting oil or products thereof), must file a report with the Director for each franchise payment period. Within thirty (30) days after each franchise payment period, the franchisee must file two (2) copies of a report, verified by a responsible officer, showing the total gross receipts of the franchisee received or accrued during the franchise payment period in connection with the furnishing of the commodity or service and arising from the use or operation of the franchise. The franchisee must also submit any additional data that may be required by the Director to calculate or verify the calculation of the base annual fee required by this Chapter (or the pro rata portion of that fee for the first franchise payment period if less than six (6) months). Payment of the base annual fee is to be made concurrently with the filing of the statement. If the amount paid is incorrect, in the judgment of the City, it may order the payment of any additional sum that it may find due and, if not paid, or if paid under protest, the same may be determined by suit.

10.8.70 Report of Pipeline Footage

Within thirty (30) days after the expiration of each franchise report period, the franchisee must file with the Community Development Director a report in triplicate, showing the 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 those mains. The franchisee must also report any change in pipeline footage since the last franchise report period, segregating that 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.