Chapter 13.05
FRANCHISES GENERALLY
Sections:
13.05.010 Definitions.
13.05.020 Granting of franchise – Exclusive or nonexclusive franchise.
13.05.030 Granting of franchise – Scope and purpose.
13.05.040 Granting of franchise – Location.
13.05.050 Granting of franchise – Additional terms and conditions.
13.05.060 Granting of franchise – Acceptance – Bond.
13.05.070 Fees – Annual fee.
13.05.080 Fees – Recalculation.
13.05.090 Construction.
13.05.100 Public improvement – Relocation of property.
13.05.110 Indemnity and damage.
13.05.120 Abandonment.
13.05.130 transfer.
13.05.140 Noncompliance with regulations.
13.05.150 Forfeiture.
13.05.010 Definitions.
As used in this chapter:
City street means the area within the right-of-way for a city street or road which is a part of the city street system or which is maintained by the city as a city street or road. It includes a way, alley, or place which exists or may exist in the city.
Franchise property means the property constructed, installed, operated and maintained in accordance with this chapter and Public Utilities Code sections 6001 through 6092. (1991 code § 17-1)
13.05.020 Granting of franchise – Exclusive or nonexclusive franchise.
The city may grant an exclusive or nonexclusive franchise for the purposes described in Public Utilities Code section 6001, for such period as it determines. The city council may grant the franchise by resolution after complying with applicable law including Public Utilities Code sections 6001 through 6092. The franchise is subject to the terms and conditions in this chapter, and the special terms and conditions stated in the resolution granting the franchise. (1991 code § 17-2.1)
13.05.030 Granting of franchise – Scope and purpose.
The resolution of the council shall specify the scope and purpose of the franchise. (1991 code § 17-2.2)
13.05.040 Granting of franchise – Location.
The grantee may exercise the franchise in, under, along and across city streets and roads in which the city has an interest which supports the grant of this franchise and which does not conflict with a franchise previously granted or the interest of another person in the property. (1991 code § 17-2.3)
13.05.050 Granting of franchise – Additional terms and conditions.
In addition to the terms of this chapter and the special terms and conditions established in the resolution granting the franchise, the franchise is subject to provisions and conditions prescribed by federal, state and other local laws and regulations which may affect the franchise during its terms. (1991 code § 17-2.4)
13.05.060 Granting of franchise – Acceptance – Bond.
A. Within 60 days after the grant of a franchise, the grantee shall file with the city a written acceptance of the terms and conditions of the grant, together with a bond. The franchise becomes effective when the grantee complies with this provision.
B. During the term of the franchise, the grantee shall maintain and keep on file with the city a bond issued by a qualified corporate surety approved by the city and in its favor in the sum of $5,000. The condition of the bond shall be that the grantee shall faithfully perform each term and condition of the franchise and that in case of a breach of a condition, the whole amount of the bond is considered as liquidated damages and shall be paid to the city. (1991 code § 17-2.5)
13.05.070 Fees – Annual fee.
A. The grantee shall pay to the city an annual franchise fee in the amount of 2% of the gross annual receipts of the grantee arising from the use of the franchise or one cent per inch nominal internal diameter for each lineal foot of pipeline or other underground facility within city streets.
B. The grantee shall pay the fee on or before January 31st of each year for the preceding calendar year. A part of a year shall be prorated. (1991 code § 17-3.1)
13.05.080 Fees – Recalculation.
Every 10 years during the term of this agreement, the fee shall be recalculated to allow for increases corresponding to the percentage increase, if any, during the preceding 10 years in the consumer’s price index for this area as published by the United States Bureau of Labor Standards. (1991 code § 17-3.2)
13.05.090 Construction.
The grantee shall construct, maintain and use the franchise property in a good and workmanlike manner and shall locate it so as not to interfere with the use of the city streets by the traveling public or the use of the city streets for other public purposes. The grantee shall conform to all applicable laws and ordinances. The director of public works and community development must approve the franchise property locations and construction plans before the grantee may begin construction. (1991 code § 17-4.1)
13.05.100 Public improvement – Relocation of property.
A. The city may improve a city street or road by widening, changing the grade, constructing or reconstructing the roadbed or constructing, reconstructing, installing, repairing, or maintaining a public improvement in the road. A public agency other than the city may, at any time during the term of the franchise, construct, maintain and use public improvements over, on, in, or under the city street in which the grantee’s franchise property is located.
B. If construction, maintenance, or repair by the city or a public agency mentioned in subsection A of this section necessitates the relocation, temporary removal or adjustment of the franchise property, the grantee shall pay the cost.
C. The city or the public agency whose work necessitates the relocation or adjustment of the franchise property shall give at least 10 days’ advance written notice to the grantee of the fact that it proposes to engage in work which will interfere with the franchise property. The notice shall specify the general nature and location of the work and shall direct the grantee to take all necessary steps to protect his or her franchise property. The city or the public agency may order the grantee to temporarily disconnect or remove, relocate, or readjust its franchise property to the extent and in the manner necessary to permit the performance of the construction by the city or public agency. (1991 code § 17-4.2)
13.05.110 Indemnity and damage.
The grantee shall indemnify and hold the city and its officers, agents and employees harmless from all liability or loss resulting from claims for damages in connection with, or arising out of, the existence of construction, maintenance and use of the franchise property. The grantee shall pay the cost and expense of repairs or damage to any city street or other public improvement which is caused by the grantee’s act or failure to act. (1991 code § 17-4.3)
13.05.120 Abandonment.
The city may authorize the abandonment in place of the franchise property upon terms and conditions which it considers reasonable and necessary. (1991 code § 17-4.4)
13.05.130 Transfer.
A. The grantee may not sell, transfer, or assign this franchise or the rights arising under it without written consent of the city.
B. The franchise property may be owned partly or wholly by persons other than the grantee, but the grantee continues solely responsible for the construction, maintenance and use of the franchise property, and the grantee remains responsible to the city for the full performance and observance of the terms and conditions of the franchise. (1991 code § 17-4.5)
13.05.140 Noncompliance with regulations.
If the grantee fails to comply with regulations or directions of the city within 10 days after written notice to do so, the city may take whatever steps are necessary to carry out the instructions and to comply with the regulations. Costs incurred by the city in this regard shall be paid by the grantee. (1991 code § 17-4.6)
13.05.150 Forfeiture.
If the grantee neglects, fails, or refuses to comply with a term or condition of the franchise and this continues for more than 15 days following notice from the city to the grantee, the city may declare the franchise forfeited. Upon the forfeiture, the grantee is excluded from the further use or acts in accordance with this franchise and the grantee shall surrender all of its rights under this franchise. (1991 code § 17-4.7)