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.
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(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.
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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.
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(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.
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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.
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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
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