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HomeMy WebLinkAboutOrd 1972-1427 ORDINANCE NO. 1427 AN ORDINANCE GRANTING TO SAN DIEGO GAS & ELECTRIC COMPANY, ITS SUCCESSORS AND ASSIGNS , THE FRANCHISE TO CONSTRUCT, � MAINTAIN AND USE POLES, WIRES , CONDUITS AND APPURTENANCES , INCLUDING COMMUNICATION CIRCUITS, NECESSARY OR PROPER FOR TRANSMITTING AND DISTRIBUTING ELECTRICZTY TO THE PUBLIC FOR ANY AND ALL PURPOSES IN, ALONG, ACROSS , UPON, UNDER AND OVER THE PUBLIC STREETS AND PLACES WITHIN THE CITY OF CHULA VISTA The City Council of the City of Chula Vista does ordain as follows : SECTION 1. DEFINITIONS. Whenever in this ordinance the words or phrases hereinafter in this� section defined are used, they shall have the respective meaning . assigned to them in the following definitions (unless, in the given instance , the context wherein they are used shall clearly import a different meaning) : (a) The word "grantee" shall mean San Diego Gas & Electric Company, and its lawful successors or assigns ; (b) The word "city" shall mean the City of Chula Vista, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form; (c) The word "streets" shall mean the public streets, ways , alleys and places as the same now or may hereafter exist within said city, including state highways , now or hereafter established within said city, and freeways hereafter established within said city. (d) The phrase "poles, wires, conduits and appurtenances" shall mean poles, towers, supports , wires, conductors, cables, guys, stubs , platforms, crossarms, braces, transformers , insulators , conduits, ducts, vaults, manholes, meters , cut-outs, switches, communication circuits, appliances , attachments , appurtenances and 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 the transmitting and/or distributing of electricity. (e) The phrase "construct, maintain and use" shall mean to construct, erect, install, lay, operate, maintain, use , repair or replace. (f) The phrase "gross receipts" shall mean all gross operating revenues received by grantee from the sale of electricity to grantee' s customers with points of service within the corporate limits of the City (including, but not limited to, sales to military reservations with points of service within the City' s corporate limits) which are credited in Account Nos. 440 , 442 , 444 , 445 and 446 of the current Uniform System of Accounts of the Federal Power Commission as adopted by the California Public Utilities Commission or similar superseding accounts, less un- collectible amounts and less any refunds or rebates made by grantee to such customers pursuant to California Public Utilities Commission orders or decisions. (g) The phrase "total system gross receipts" shall mean all gross operating revenues received by grantee from the sale of electricity to grantee' s customers within its entire service � territory which are credited in Account Nos. 440 , 442 , 444 , 945 and 446 of the current Uniform System of Accounts of the Federal Power Commission as adopted by the California Public Utilities Commission or similar superseding accounts, less uncollectible amounts and less any refunds or rebates made by grantee to such customers pursuant to California Public Utilities Commission orders or decisions. -1- (h) The phrase "allocation ratio" shall, unless and until other- wise modified by the California Public Utilities Commission, mean a numerical ratio determined by the proportion which the number of grantee' s electric customers in the city bears to all of grantee' s electric customers throughout its entire electric service territory. SECTION 2. PURPOSE. The franchise to construct, maintain and use poles , wires , conduits and appurtenances , including communication circuits, necessary or proper for transmitting and distributing electricity to the public for any and all purposes , in, along, across, upon, under and over the public streets, ways , and places within said city is hereby granted to San Diego Gas & Electric Company, its successors and �assigns. SECTION 3 . TERM. Said franchise shall be for the term of twenty-five (25) years from and after the effective date herein , that is to say, said 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 shall purchase by voluntary agreement or shall condemn and take under the power of eminent domain, all property actually used and useful in the exercise of said franchise and situate in the territorial limits of the state , municipal or public corporation purchasing or condemning such property, or until said franchise shall be forfeited for non-compliance with its terms by the grantee. SECTION 4 . CONSIDERATION. The grantee of said franchise shall during the term thereof pay to the city one and one-tenth percent (1. 1�) of the gross annual receipts of said grantee, which amount has been held� by Decision Nos. 80432 ,and 80494 of the Public Utilities Commission of the State of California to be the normal level paid to other political subdivisions within the utility' s territory; provided, however, that such payment shall in no event be less than the dollar amount paid for such franchise privilege by grantee to city for the calendar year 1971. It is understood that any administrative , legislative or judicial modification of said franchise fee or the basis of calculating said fee pur- suant to Decision Nos. 80432 and 80494 shall be cause for review and renegot- iation of this amount of franchise fee at any time within the term of this franchise. SECTION 5 . REPORTS, DATES OF PAYMENT AND CITY AUDITS. The grantee shall file with the Clerk of said city, within three months after the expiration of the calendar year, or fractional calendar year, following the date of the granting hereof , and within three months after the expiration of each and every calendar year thereafter, a duly veri- fied statement showing in detail the total gross receipts of such grantee during the preceding calendar year, or such fractional calendar year, from the sale of electricity within said city. Such grantee shall pay to said city within fifteen 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 said grantee to file such verified statement, or to pay said percentage at the time and in the manner specified, shall be grounds for the declaration of a forfeiture of this franchise and all rights of grantee hereunder. SECTION 6 . COMPLZANCE S9ITH LAWS . Al1 facilities or equipment of grantee that grantee shall construct , maintain and use or remove, pursuant to the provisions of the franchise grant- ed herein shall be accomplished in accordance with the ordinances , rules and regulations of city now or as hereafter adopted or prescribed, and such rules and regulations as are promulgated under state law, or orders of the Public Utilities Commission or other governmental authority having jurisdiction in the premises. -2- ,a�Y -1 SECTION 7. ADMINISTRATIVE PRACTICES. Grantee is herewith charged with the responsibility of cooperating with city in preparing a manual of administrative practices which shall govern the installation and removal of grantee' s facilities in the streets of city which shall include, but not be limited to, cathodic protection practices. Once each year, commencing with the first full calendar year of the franchise granted herein, it is to be the joint responsibility of grantee and city to review and update such administrative practices. Both grantee and city are charged with the duty to prepare, review and update such administrative practices by a method of mutual cooperation which shall take into consideration the reasonable needs and convenience of each party; provided that said administrative practices and the terms and conditions thereof shall be at all times subject to approval of the City Council as expressed by appropriate legislative action. Following the preparation of said manual, and its approval by the City Council, it shall qovern the practicies of the .grantee in its installation and removal of grantee' s facilities in the streets of city. SECTION 8. CITY RESERVED POWERS. (a) City reserves the right for itself to lay, construct, erect, install, use, operate, repair, replace , remove , relocate , re- grade or maintain below surface or above surface improvements of any type or description in, upon, along, across , under or over the streets of the city. City further reserves the right to relocate , remove , vacate or replace the streets themselves. If the necessary exercise of the aforementioned reserve rights conflicts with any poles , wires , conduits, and appurtenances of grantee constructed, maintained and used pursuant to the provisions of the franchise granted hereby, whether previously constructed, maintained and used or not, grantee shall, without cost or expense to city within ninety (90) days after written notice from the City Manager, or his designated representative , and request so to do, begin the physical field construction of changing the location of all facilities or equipment so conflicting. Grantee shall proceed promptly to complete such required work. (b) Irrespective of any other provision of this ordinance , grantee' s right to construct, maintain and use , or remove poles, wires , conduits , and appurtenances thereto shall be subject at all times to the right of the city, in the exercise of its police power, to require the removal or relocation, to either overhead or underground locations, of said poles, wires, conduits and appurtenances thereto at the sole cost and expense of grantee. SECTION 9 . UNDERGROUNDING OF FACILITIES. (a) Presently, grantee is engaged in a program of converting to underground certain of its facilities in accordance with Decision No. 73078 of the California Public Utilities Commission. At this time , said decision requires Grantee to budget prior to the end of each calendar year certain sums of money for said program for the next succeeding year and allocate these sums to undergrounding projects in the various governmental jurisdictions throughout grantee' s entire electric service territory on the basis of the number of electric customers in each governmental jurisdiction. Grantee is willing to increase the amounts of money budgeted for said program and as a portion of the consideration for the granting of the rights and privi- leges contained in this franchise shall accomplish this in the follow- ing manner. - 3 - 1 , a� (b) Grantee shall apply annually to the California Public Utilities Commission for authority to budget amounts of money for the undergrounding of existing overhead facilities in the city. In its application for calendar year 1972 grantee shall apply to increase the amounts of money to be budgeted for such undergrounding in the city from the amount budgeted for 1971 by an amount equivalent to one-half of one percent (1/2�) of its total system gross receipts for the calendar year preceding the year of application (i.e. , 1970) multiplied by the allocation ratio. Thereafter grantee shall increase each year the amount so applied for by one-half percent (1/2�) of its total system gross receipts for the calendar year preceding the year of application multiplied by the allocation ratio until such budgeted amounts of money for undergrounding in the city reach a sum which is equal to four and one-half percent (4-1/2�) of said total system gross receipts multiplied by the allocation ratio. Thereafter grantee shall continue to apply to budget an amount of money egual to four and one- half percent (4-1/2�) of said total system gross receipts multiplied by the allocation ratio for such undergrounding conversion. (c) If the amounts so budgeted for any calendar year are not expended in that calendar year or the next two succeeding calen- dar years following the budgeting thereof because of forces beyond the control of grantee, then in that event and that event only grantee may reallocate the unexpended amounts of money, in its discretion, for any other lawful purpose. (d) This section shall not be deemed in any way to be an impairmern, of city' s rights as set forth in Section 8 of this ordinance. Nothing contained herein is intended to prevent grantee from informing city and the California Public Utilities Commission of then existing or foreseeable economic conditions or other factors which in the opinion of grantee make unwise the granting in whole or in part, of the particular annual . application. (e) This section is intended only to be a measure of a portion of the consideration to be paid by grantee to city for the rights and privileges granted herein and therefore it does not create or confer any rights or obligations to any one other than city or grantee. SECTZON 10. HOLD HARMLESS. Grantee of the franchise granted hereby shall indemnify, save and hold harmless, city and any officers and employees thereof against and from all damages, judgments, decrees , costs and expendi- tures which city, or such officer or employee , may suffer, or which may be recovered from, or obtainable against city, or such officer or employee, for, or by reason of , or growing out of or resulting from the exercising by grantee of any or all of the rights or privi- leges granted hereby, or by reason of any act or acts of grantee or its servants or agents in exercising the franchise granted hereby, and grantee shall defend any suit that may be instituted against city, or any officer or employee thereof , by reason of or growing out of or resulting from the exercise by grantee of any or all of the rights or privileges granted hereby, or by reason of any act or acts of grantee , or its servants or agents, in exercising the franchise granted hereby. SECTION 11. REPAIR COSTS. Grantee shall pay to city on demand the cost of all repairs to city property made necessary by any of the operations of grantee under the franchise granted hereby, provided, however, that grantee may make repairs to streets, sidewalks, curbs and gutters itself at its own cost in accordance with city specifications if the same can be done without undue inconvenience to the public use of the streets. a2�� - 4 - SECTION 12. FORFEITURE. This franchise is granted upon each and every condition herein contained, and shall ever be strictly construed against grantee. Nothing shall pass by the franchise granted hereby to grantee unless it be granted in plain and unambiguous terms. Each of said conditions is a material and essential condition to the granting of the franchise. If grantee shall fail, neglect or re- fuse to comply with any of the conditions of the franchise granted hereby, and if such failure, neglect or refusal shall continue for more than thirty (30) days after written demand by the City Manager for compliance therewith, then City, by the City Council, in addition to all rights and remedies allowed by law, thereupon may terminate the right, privilege and franchise granted in and by this ordinance, and all the rights, privileges and the franchise of grantee granted hereby shall thereupon be at an end. Thereupon and immediately, grantee shall surrender all rights and privileges in and to the franchise granted hereby. No provision herein made for the purpose of securing the enforcement of the terms and conditions of the fran- chise granted hereby shall be deemed an exclusive remedy or to afford the exclusive procedure for the enforcement of said terms and condi- tions, but the remedies and procedure outlined herein or provided, including forfeiture , shall be deemed to be cumulative. SECTION 13. ACQUISITION AND VALUATION. Nothing in this ordinance or in the franchise granted hereby shall be construed as in any way impairing city' s rights to acquire property of grantee through the exercise of city' s power of eminent domain, or through voluntary agreement between city and grantee. In the event that city chooses to exercise its power of eminent domain, it shall do so in accordance with the procedures provided by the general law of the State of California for the condemnation of public utility property. The valuation of such property for condemnation purposes shall be made in accordance with such general law. SECTION 14 . AUTHORITY FOR GRANT. Notwithstanding any other provision herein contained, this franchise is granted solely and exclusively under Sections 1400 , 1401, 1402 , 1403, 1404 , 1405 and 1406 of Article XIV of the Charter of the City of Chula Vista and no other authority. SECTION 15 EFFECTIVE DATE. This ordinance shall become effective thirty days after its final passage unless suspended by a referendum petition filed as pro- vided by law. SECTZON 16. PUBLZCATION COSTS. The grantee of said franchise shall pay to the city a sum of money sufficient to reimburse it for all publication expenses in- curred by it in connection with the granting thereof; such payment to be made within thirty (30) days after the city shall have fur- nished such grantee with a written statement of such expenses. - 5 - � ��.1 SECTION 17 . WRITTEN ACCEPTANCE. The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by the grantee with the City Clerk. SECTION 18. PUBLICATION. The City Clerk shall cause this ordinance to be published once within fifteen (15) days after its passage in the Chula Vista Star News , a newspaper of general circulation published and circu- lated in said city. Presented by Approved as to form by /o I�� / � �,�� / � � , �'�.,��(�G✓�/4 y .�'�-�'/�_��,� �..`�✓` ., ��J� � � � � George D. Lin erg, City Attbrney George D. Lin erg, City_Attoriiey ADOPTED AND APPROVED by the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, this 31st day of October , 19�, by the following vote , to-wi—� AYES : Councilmen Scott Hobe1 . Hamilton . Hvda�Fgdahl NAYES : Councilmen None ABSENT: Councilmen None �/�/ Mayor of t e City of Chula Vi a ATTEST i�' �/ � '- City C erk STATE OF CALIFORNZA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I , , City Clerk of the City of Chula Vista, Cali ornia, DO HEREBY CERTIFY that the above is a £ull, true and correct copy of Ordinance No. , and that the same has not been amended or repealed. DATED City Clerk - 6 - , 11