Chapter 5.30
FRANCHISES*

Sections:

5.30.010    Required for certain activities and services.

5.30.020    Required for uses involving streets – Services defined.

5.30.030    Services subject to franchise tolls.

5.30.040    Audit requirements – Incorporation in certain documents required.

*    For statutory authority for cities to license businesses for purposes of revenue and regulation, see Gov. Code § 37101; for provisions of Charter law regarding franchises, see Charter §§ 1400 – 1406.

5.30.010 Required for certain activities and services.

It is unlawful, without first obtaining a franchise therefor from the city council, or having a valid franchise heretofore granted by the city, for any person or public utility, their agents or employees, to use, connect, install, keep or maintain any meter, or to measure any service, or to enter into a contract, agreement, promise or understanding with any consumer or person to sell, furnish, transmit or carry any service to such consumer or person; or to make any charge or debit, or to render any bill or statement for any service; or engage in the business of a public utility for any service. (Ord. 1205 § 2, 1969; prior code § 27.701).

5.30.020 Required for uses involving streets – Services defined.

It is unlawful, without first obtaining a permit therefor from the director of public works or a franchise therefor from the city council, or having a valid franchise heretofore granted by the city, for any person or public utility, their agents or employees, to place, string, lay, erect, maintain, keep or use any pole, wire, pipe or equipment, in, on, upon, over or under any street, avenue, alley or public place in the city for any of the following uses or purposes, which are herein defined for the purpose of this chapter as “services”:

A. For transmitting electricity for light, heat, power communication, or for any other use or purpose;

B. For transporting or piping gas for light, heat, power, or for any other use or purpose;

C. For a sewer for carrying sewage;

D. For water or carrying water, or for any other use, purpose or service whatever. (Ord. 1205 § 2, 1969; prior code § 27.702).

5.30.030 Services subject to franchise tolls.

All electricity, gas, or other service furnished, sold, transmitted or delivered to any person, or consumer thereof, through the use of the public streets, alleys, avenues or other public places in the city, or through the use, operation or possession of a franchise, shall be deemed and held to be sold, transmitted or delivered solely for the uses or purposes, or service or services, for which any franchise was granted, regardless of the use or purpose for which such electricity, gas, or other service or part thereof may be devoted by any person or a consumer thereof, and the franchise toll for the use of such public streets, alleys, avenues or other public places shall be paid thereon, and the gross receipts therefor shall be included in the statement furnished to the city and deemed to be gross receipts arising from the use, operation or possession of the franchise, and the tolls must be paid thereon. (Ord. 1205 § 2, 1969; prior code § 27.703).

5.30.040 Audit requirements – Incorporation in certain documents required.

A. All grantees of franchises granted by the city, other than those franchise holders who are subject to the requirements of the Public Utilities Commission of the state of California, and all parties having contractual relations with the city, wherein the city establishes reasonable rates for the performance of services under said contracts, or whereby the city receives as consideration under said contracts a fractional share of revenues, may be required, if requested by the city council, to submit an annual audited statement as soon as possible after the end of the fiscal year, prepared by either a certified public accountant or a licensed public accountant, certified without qualifications. Further, at such time as the city council conducts hearings to establish rate schedules or amendments thereto, or at such time as franchises or contracts are to be granted or renewed, the franchise holder, other than those subject to the requirements of the Public Utilities Commission, or contractor, shall be required to submit an audited statement not more than 60 days in arrears.

B. Further, the city may waive said requirements in those instances where such contractor or franchise holder is also operating its business in areas outside of the city limits and rate schedules are established by other governmental agencies in addition to the city council; provided, however, that the city receives notice of hearings relative to the establishment of said rate schedules so that the city may participate and be fully informed in all proceedings of said hearings.

C. The terms and conditions of this chapter shall be incorporated and made a part of all contracts or ordinances granting franchises. (Ord. 1151 § 1, 1968; prior code § 15.1).