1994-050-Intention To Introduce And Adopt Ordinance Granting A Franchise For Water Service In The Town To San Jose Water CompanyRESOLUTION 1994 -50
RESOLUTION OF INTENTION TO INTRODUCE AND ADOPT ORDINANCE
GRANTING A FRANCHISE FOR WATER SERVICE IN THE TOWN OF LOS GATOS
TO THE SAN JOSE WATER COMPANY
RESOLVED by the Town Council of the Town of Los Gatos:
WHEREAS, the Town Council has received a recommendation from the Town
Engineer that the Town adopt an ordinance granting a franchise to the San Jose Water
Service Company to provide water service in the Town and establishing conditions and
terms for such a franchise generally in the form attached hereto as Exhibit A, and
WHEREAS, such a franchise would provide a structure in which water service could
be provided to the community and in which San Jose Water Company could utilize the
public rights -of -way in the Town,
NOW, THEREFORE, IT IS ORDERED AS FOLLOWS:
1. A public meeting shall be held on May 2, 1994, at 7:30 p.m. or as soon thereafter
as the matter may be heard in the Town Council Chambers of Town Hall, located at 110
E. Main Street, Los Gatos, CA, to consider the introduction and adoption of an ordinance
awarding a franchise to provide water service in the Town to the San Jose Water Company.
All interested persons shall be heard at that time on this question.
2. A public hearing shall be held on May 16, 1994, at 7:30 p.m. or as soon thereafter
as the matter may be heard in the Town Council Chambers of Town Hall, located at 110
E. Main Street, Los Gatos, CA, to consider the adoption of an ordinance awarding a
franchise to provide water service in the Town to the San Jose Water Company. All
interested persons shall be heard at that time on this question.
3. The amount of One Thousand Dollars ($1,000) is fixed as the penal sum of the
bond to be filed by San Jose Water Company for the proposed franchise no later than five
(5) days after the award of the franchise by the Council, should the franchise be awarded
to San Jose Water Company.
4. The Town Clerk shall publish notice of the public meeting and the public hearing
in the Los Gatos Weekly -Times as required by State law, in particular Public Utilities Code
H 6232 and 6233.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 21st day of March, 1994 by the following vote.
COUNCIL MEMBERS:
AYES: Joanne Benjamin, Steven Blanton, Linda Lubeck, Patrick O'Laughlin
Mayor Randy Attaway
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED:
M TOWN F OS GATOS
LOS GATOS, CALIFOR
N:\S11ARE\WXrRFRAN.LEA
ORDINANCE NO.
ORDINANCE OF THE TOWN OF LOS GATOS
ADDING ARTICLE I TO CHAPTER 27 OF THE TOWN CODE GRANTING
TO SAN JOSE WATER COMPANY
A FRANCHISE TO LAY, CONSTRUCT,
MAINTAIN, REPAIR AND OPERATE A SYSTEM OF
WATER PIPELINES AND OTHER APPARATUS
IN, OVER, ALONG, ACROSS, UNDER, THROUGH AND UPON
THE PUBLIC STREETS, ROADS, ALLEYS, AND HIGHWAYS
OF THE TOWN OF LOS GATOS,
FOR THE TRANSPORTATION AND DISTRIBUTION OF WATER FOR
SALE AND DISTRIBUTION FOR
DOMESTIC, AGRICULTURAL, INDUSTRIAL, COMMERCIAL, AND OTHER LAWFUL
USES AND PURPOSES
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS
FOLLOWS:
SECTION I
(a) San Jose Water Company, a corporation, duly organized and
existing under and by virtue of the laws of the State of
California, and duly qualified and authorized to transact a public
utility business within this State, filed with this Council on
1994, a written application for the franchise
hereinafter set forth; and this application was made under and in
conformity with the laws of the State of California pertaining to
the granting of franchises by the Town authorities, under the
provisions of Chapter 2, Division 3 of the Public Utilities Code
of the State of California.
(b) The Town Council adopted a resolution of intention at its
regular meeting on March 21, 1994, to grant such a franchise upon
the terms, conditions and restrictions imposed and required by law.
Notice of that resolution of intention, of the right to file
objections and the place and time to do so, and of the public
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March 11, 1994 1
EXHIBIT A
franchise, to lay, construct, maintain, repair and operate a system
of water pipelines and other apparatus in, over, along, across,
under, through and upon the public streets, roads, alleys, and
highways of the Town for the transportation and distribution of
water for sale and distribution for domestic, agricultural,
industrial, commercial and other lawful uses and purposes, subject
to the terms and conditions set forth in this Article. For
purposes of this Article, San Jose Water Company is referred to as
grantee.
Sec. 27.10.020. Term of Franchise.
The franchise granted pursuant to this Article shall be
indeterminate and shall remain in full force and effect until:
(a) The franchise is, with the consent of the State Public
Utilities Commission, voluntarily surrendered or abandoned by the
grantee; or
(b) The State or other public agency or other public
corporation duly authorized by law purchases by voluntary agreement
or condemns and takes by power of eminent domain, all property
actually used and useful in the exercise of the franchise; or
(c) The franchise is forfeited for noncompliance with its
terms by the grantee.
Sec. 27.10.025. Duties of Grantee.
(a) All pipes and necessary appliances and fixtures used in
connection with the franchised system shall be laid, constructed,
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enlarged, maintained and removed in conformity with law. Whenever
it is proposed by the grantee of this franchise to open the public
highways, streets, alleys and places of the Town or perform any
other work, grantee shall first apply for, and obtain all permits
required under the applicable laws and policies of the Town, unless
an emergency situation exists that poses an immediate threat to
persons or property in too short a period of time to obtain the
required permits.
(b) In the event of an emergency as described above, grantee
shall comply with the following procedures:
(i) If the emergency occurs during the normal operating
hours of the Town Building and Engineering Services
Department, the grantee shall first secure approval from the
Building & Engineering Services Director, or Director's
authorized designee, and comply with all conditions imposed
by the Director, or designee, for the preservation and
furtherance of the public health, safety or welfare.
(ii) If the emergency occurs outside of the normal
operating hours of the Town Building & Engineering Services
Department, grantee shall immediately notify the Town's
emergency communications center of the location and nature of
the necessary work, and the impacts on the traveled way. The
communications center will then contact the Town Manager or
other authorized Town officer. Should authorized Town officer
so contact then direct the grantee to comply with certain
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conditions for the preservation and furtherance of the public
health, safety, and welfare, the grantee shall comply.
(iii) In either emergency case, grantee shall submit a
completed written permit application within five (5) working
days following initiation of the emergency work.
(c) Grantee, and its successors and assigns, shall at all
times keep the water pipeline system and all accessory appliances
and fixtures used in connection with the franchised system in good
order and condition, and shall take all measures reasonably
necessary to mitigate the impact of grantee's facility,
maintenance, construction and operations on any and all Town
property, including but not limited to the streets and their
appurtenances. Grantee shall, at all times, in good faith, confer
with the Building and Engineering Services Director, or the
Director's designee, about appropriate mitigation measures. If
damage should result to public property or surfaces, then grantee
shall repair to Town's reasonable sat.sfaction the surfaces
immediately, at grantee's sole expense. w the event that grantee
fails to repair any public property in a reasonable time, Town may,
but is not required to, have such property repaired; and grantee
shall reimburse Town of the costs of all such repairs within twenty
(20) days of demand by the Town therefore.
(d) The grantee shall construct, install and maintain all
pipes, conduits, poles, wires, and appurtenances in accordance and
in conformity with all of the ordinances and rules adopted by the
Town Council in the exercise of its police powers and not in
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conflict with the paramount authority of the State, and, as to
State highways, subject to the laws relating to the location and
maintenance of such facilities therein.
Sec. 27.10.030. Relocation of Facilities.
The grantee shall remove or relocate without expense to the
Town any facilities installed, used, and maintained under the
franchise if and when made necessary by any lawful change of grade,
alignment, or width of any public street, way, alley, or place,
including the construction of any subway or viaduct, by the Town.
Whenever any pipes, main, or other facilities are required to be
relocated by this section, grantee shall, with respect to the size
and configuration of replacement facilities, consider all current
and projected public, residential, commercial, industrial and fire
protection demands and standards required to serve all existing and
projected development in the Town as depicted in the Town's
applicable General Plan, Specific Plans, ordinances, Capital
Improvement Plans, Redevelopment Plans, and Town policies;
Sec. 27.10.035. Coordination for Improvement.
Grantee shall designate an authorized representative, who
shall meet and confer, in good faith, with an authorized
representative of the Town at least once annually concerning a plan
for improving or upgrading the existing water system within the
Town to accommodate current and future public, residential,
commercial, industrial and fire protection standards and demands
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March 11, 1994 6
as depicted in the Town's General Plan, Specific Plans, ordinances,
Redevelopment Plans, Capital Improvement Plans and Town policies,
and to coordinate these improvements or upgrades with the Town's
plans for repair, maintenance and construction of public works. The
parties shall consider, among other things, the impacts on current
and future streets, current and future fire protection needs, and
economic impacts on future and current businesses and residences.
The meeting shall take place prior to March 31st of each year.
Sec. 27.10.040. Payment to Town.
The grantee, its successors and assigns, shall, during the
life of said franchise, pay to the Town the greater of the
following sums:
(a) Two percent (2 %) of the gross annual receipts arising from
the use, operation, or possession of this franchise; or
(b) At least one percent (1 %) of the gross annual receipts of
San Jose Water Company derived from the sale within the limits of
the Town of the utility service for which the franchise is awarded.
Sec. 27.10.045. Filing of Statement of Gross Receipts; Payment of
Fee.
(a) No later than March 31 of each year during which this
franchise is in existence, and no later than three (3) months
following the surrender or termination of the franchise, the
grantee shall file with the Town Clerk a verified statement
showing in detail the total gross receipts of the grantee, its
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March 11, 1994 7
successors, or assigns during the preceding calendar year or
fractional calendar year from the sale of the utility service for
which the franchise was granted;
(b) The Town shall have the right, upon 72 hours written
notice, to review and audit any and all books, ledgers, accounts
and other financial records necessary to verify the information
submitted pursuant to this section, or confirm the franchise fee
due under Section 27.10.040.
(c) Within fifteen (15) days after the time for filing its
statement of gross receipts, the grantee shall pay to the Town, in
lawful money of the United States, the specified percentage of its
gross receipts for the calendar year or fractional calendar year
covered by the statement as calculated under Section 27.10.040.
Any neglect, omission, or refusal by the grantee to file the
verified statement, or to pay the percentage at the times or in
the manner provided constitutes grounds for the declaration of a
forfeiture of the franchise and of all rights thereunder.
(d) The grantee shall pay to the Town a sum of money
sufficient to reimburse it for all publication expenses incurred
by it in connection with the granting of the franchise. This
payment shall be made within thirty (30) days after the Town
furnishes the grantee with a written statement of the expenses.
Sec. 27.10.050. Conditions and Terms.
(a) Grantee shall indemnify, defend and hold harmless the
Town and its officers, official and employees from any and all
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liability for damages proximately resulting from any operations
under the franchise. This indemnity shall extend to any and all
attorney's fees and costs incurred by Town in the defense of any
claim of liability covered by this section.
(b) This franchise shall commence on the date grantee files
written acceptance hereof with the Town Clerk.
(c) The grantee shall file with the Town Clerk within thirty
(30) days after any sale, transfer, assignment, or lease of the
franchise or any part thereof, or any of the rights or privileges
granted thereby, written evidence of the transaction certified to
by the grantee or its duly authorized officers;
(d) If the grantee fails, neglects or refuses to comply with
any of the provisions or conditions prescribed in this Article, and
does not within ten (10) days after written demand for compliance
begin the work of compliance, or after such beginning does not
prosecute the work with due diligence to completion, the Town
Council may declare the franchise forfeited.
(e) In the event that any provision of this ordinance is held
by a court of competent jurisdiction to be void or unenforceable
for any reason, the remainder of the ordinance shall be deemed
severable and shall continue in full force and effect unless
otherwise determined by the Town.
SECTION III
This ordinance was introduced at a regular meeting of the Town
council of the Town of Los Gatos on April 4, 1994 and adopted by
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the following vote as an ordinance of the Town of Los Gatos at a
regular meeting of the Town Council of the Town of Los Gatos on
May 16, 1994. This ordinance takes effect on July 1, 1994.
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
N: \B &E \MILLIE \SJWFRAN.TCR (origin.l Craft)
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