Chapter 5.40


5.40.010    Definitions.

5.40.020    Grant.

5.40.030    Scope.

5.40.040    Property location.

5.40.050    Other regulations.

5.40.060    Acceptance and bond.

5.40.070    Fee – Designated.

5.40.080    Fee – Revision.

5.40.090    Construction, permits and locations.

5.40.100    Property relocation due to public construction.

5.40.110    Additional authority.

5.40.010 Definitions.

In this chapter, unless the context otherwise requires:

A. “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 hereafter exist in the city.

B. “Franchise property” means the property constructed, installed, operated and maintained in accordance with this chapter and Sections 6001 through 6092 of the Public Utilities Code of the state.

C. “Grantee” includes the successors and assigns of grantee. [Ord. 605 C.S. § 1, 1970.]

5.40.020 Grant.

The city may grant an exclusive or nonexclusive franchise for the purposes described in Section 6001 of the Public Utilities Code, for such period as it determines. The city council may grant the franchise by resolution after complying with applicable law, including Sections 6000 through 6092 of the Public Utilities Code. 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. [Ord. 605 C.S. § 2, 1970.]

5.40.030 Scope.

The resolution of the city council shall specify the scope and purpose of the franchise. [Ord. 605 C.S. § 3, 1970.]

5.40.040 Property 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 any franchise previously granted or any interest of any other person in the property. [Ord. 605 C.S. § 4, 1970.]

5.40.050 Other regulations.

In addition the terms of this chapter and the special terms and conditions established in the resolution granting the franchise, this franchise is subject to provisions and conditions prescribed by federal, state and other local laws and regulations which may affect the franchise during its term. [Ord. 605 C.S. § 5, 1970.]

5.40.060 Acceptance and bond.

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. [Amended during 2007 recodification; Ord. 605 C.S. § 6, 1970.]

5.40.070 Fee – Designated.

The grantee shall pay to the city an annual franchise fee in the amount of two percent of the gross annual receipts of the grantee arising from the use of the franchise or $0.01 per inch of nominal internal diameter for each lineal foot of pipeline or other underground facility within city streets.

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. [Ord. 605 C.S. § 7, 1970.]

5.40.080 Fee – Revision.

Every 10 years during the term of the franchise, 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. [Ord. 605 C.S. § 8, 1970.]

5.40.090 Construction, permits and locations.

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 street for other public purposes. The grantee shall conform to all applicable laws and ordinances. The director of public works must approve the franchise property locations and construction plans before the grantee may begin construction. [Ord. 605 C.S. § 9, 1970.]

5.40.100 Property relocation due to public construction.

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 any 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.

If construction, maintenance or repair by the city or a public agency mentioned in the preceding paragraph necessitates the relocation, temporary removal or adjustment of the franchise property, the grantee shall pay the cost.

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 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. [Ord. 605 C.S. § 10, 1970.]

5.40.110 Additional authority.

Nothing in this chapter shall prevent the city from awarding a franchise to a grantee under the authority of the Franchise Act of 1937, as amended (Public Utilities Code Sections 6201 et seq.) (the “Franchise Act”). The Franchise Act represents independent authority for granting a franchise. The terms of PMC 5.40.010 through 5.40.100 shall only be applicable to a franchise granted under the Franchise Act if specifically set forth in the ordinance granting the franchise, as may be allowed by applicable law. [Ord. 1074 § 13, 1993.]


For statutory provisions regarding the granting of public utility franchise by local governments, see Public Utilities Code § 6001 et seq.