CC - Item 2A - Staff Report Ord. NO. 794 �3- i stat
teport
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TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL .J
FROM: FRANK G. TRIPEPI; CITY MANAGE T_74
DATE: JUNE 3, 1999 ��44
RE: ORDINANCE NO. 794—AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ROSEMEAD, CALIFORNIA, GRANTING TO SOUTHERN
CALIFORNIA WATER COMPANY, A FRANCHISE TO LAY AND USE, FOR
TRANSMITTING AND DISTRIBUTING WATER FOR ANY AND ALL
PURPOSES, PIPELINES AND OTHER FACILITIES, IN, ALONG, ACROSS,
UPON AND UNDER THE PUBLIC STREETS, WAYS, ALLEYS AND
PLACES WITHIN THE CITY OF ROSEMEAD — FIRST READING
Attached is Ordinance No. 794, granting Southern California Water Company a franchise
to lay and use, for transmitting and distributing water for any and all purposes, pipelines
and other facilities, in, along, across, upon and under the public streets, ways, alleys and
places within the City. At the May 11, 1999 City Council meeting, Resolution No. 99-23
was approved, declaring the City's intent to grant the franchise and setting the public
hearing for June 8, 1999.
In exchange for its franchise to use the City streets and rights of way, Southern California
Water Company pays a franchise fee of 2 percent of its gross revenue attributable to the
Rosemead franchise. Last year, the City received $16,181.18 in franchise fees from
Southern California California Water Company. The 2 percent amount is statutory and
cannot be increased.
RECOMMENDATION
It is recommended that the Rosemead City Council conduct the public hearing and
introduce Ordinance No. 794.
Attachment COUNCIL hGENDA�
JUN Q 8 1999
1999rsmdlstaff rpticity
ITEM No. -. - . 4
ORDINANCE NO. 794
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA, GRANTING TO SOUTHERN
CALIFORNIA WATER COMPANY, ITS SUCCESSORS AND
ASSIGNS, A FRANCHISE TO LAY AND USE, FOR
TRANSMITTING AND DISTRIBUTING WATER FOR ANY
AND ALL PURPOSES,PIPELINES AND OTHER FACILITIES,
IN, ALONG, ACROSS, UPON AND UNDER THE PUBLIC
STREETS,WAYS,ALLEYS AND PLACES WITHIN THE CITY
OF ROSEMEAD.
The City Council of the City of Rosemead, California does ordain as
follows:
Section 1. Whenever in this ordinance the words or phrases
hereinafter in this section defined are used, it is intended that they shall have the
respective meanings 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 the corporation to which the
franchise contemplated in this ordinance is granted and its lawful successors or assigns;
(b) The word "City shall mean the City of Rosemead, 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, except state freeways, as the same no or may hereafter exist within said City;
Ordinance No. 794
(d) The phrase "pipes and appurtenances" shall mean pipes,
pipelines and distribution and transmission systems consisting of mains, distribution and
transmission pipes and other properties and facilities, together with services, traps,
manholes and other necessary or appropriate appurtenances, for the purpose of
transmitting and distributing water;
(e) The phrase "to use or to lay and use' shall mean to lay,
construct, erect, install, operate, maintain, use, repair, replace, relocate or renew.
(0 The word "Franchise" shall mean and include any
authorization granted hereunder in terms of a franchise, privilege, permit, license or
otherwise to lay and use pipes and appurtenances for transmitting or distributing water for
any and all purposes under, along, across or upon the public streets, ways, alleys and
places in the City, and shall include and be in lieu of any existing or future City requirement
to obtain a license or permit for the privilege of transacting and carrying on a business
within the City.
Section 2. The right, privilege and franchise, subject to each and
all of the terms and conditions contained in this ordinance, and pursuant to and upon the
terms and conditions of Division 3, Chapter 2 of the Public Utilities Code of the State of
California, be and the same is hereby granted to SOUTHERN CALIFORNIA WATER
COMPANY, a corporation organized and existing under and by virtue of the laws of the
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Ordinance No. 794
State of California,to lay and use pipes and appurtenances for transmitting and distributing
water for any and all purposes, under, along, across, or upon streets.
Section 3. The term of this franchise shall be from May 23, 1999 to
May 22, 2024, that is to say, this franchise shall endure in full force and effect until, with
the consent of the Public Utilities Commission of the State of California, it is voluntarily
surrendered or abandoned by 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 this franchise and situate within the territorial limits of the State,
municipal, or public corporation purchasing or condemning such property, or until this
franchise is forfeited for noncompliance with its terms by the Grantee.
Section 4. For each full or fractional calendar year of the life of this
franchise, Grantee shall pay to the City at the times hereinafter specified, in lawful money
of the United States, a sum annually which shall be equivalent to two percent (2%) of the
gross annual receipts of Grantee arising from the use, operation or possession of this
franchise; provided, however,that such payment shall in no event be less than one percent
(1%)of the gross annual receipts of Grantee derived from the sale of water within the limits
of City.
Section 5. Grantee shall file withe the Clerk of City,within three (3)
months after the expiration of the calendar year, or fractional calendar year, following the
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Ordinance No. 794
date of the granting of this franchise, and within three (3) months after the expiration of
each subsequent calendar year or fraction thereof during which this franchise is in effect,
a verified statement showing in detail for the term of the franchise in such calendar or
fractional year, as the case may be, the total gross receipts of Grantee arising from the
use, operation or possession of this franchise and the total gross receipts of Grantee
derived from the sale of water within the City. Grantee shall pay to the City within fifteen
(15) days after the time for filing said statement, in lawful money of the United States, the
above required percentage of its gross receipts for the calendar year,or fractional calendar
year, covered by said statement. Any neglect, omission or refusal by said Grantee to file
said verified statement, or to pay said percentage, at the times or in the manner
hereinbefore provided, shall be grounds for the declaration of a forfeiture of this franchise
and of all rights of Grantee hereunder.
Section 6. This grant is made in lieu of all other franchises, rights,
or privileges that have been granted by the State or some municipal or public corporation
now owned by Grantee to lay and use pipes and appurtenances in the streets of City for
transmitting and distributing water and the acceptance of the franchise hereby granted
shall operate as (i) an abandonment within the limits of City of all such other franchises,
rights and privileges that have been granted by the State or some municipal or public
corporation in lieu of which this franchise is granted, and (ii) an agreement to comply with
the terms and conditions hereof.
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Ordinance No. 794
Section 7. The franchise granted hereunder shall not become
effective until written acceptance thereof shall have been filed by Grantee thereof with the
Clerk of City. When so filed, such acceptance shall constitute a continuing agreement of
Grantee that if and when the City shall thereafter annex or consolidate with, additional
territory, any and all franchises, rights and privileges owned by the Grantee therein shall
likewise be deemed to be abandoned as to all streets within the limits of such territory.
Section 8. The franchise granted hereunder shall not in any way or
to any extent impair or affect the right of City to acquire the property of Grantee hereof
either by purchase or through the exercise of the right of eminent domain, and nothing
herein contained shall be construed to contract away or to modify or abridge, either for a
term or in perpetuity, City's right of eminent domain in respect to Grantee or any public
utility; nor shall this franchise ever be given any value before any court or other public
authority in any proceeding of any character or in the event of the purchase by City of
assets or property of Grantee, in excess of cost to Grantee of the necessary publication
and any other sum paid by it to City therefor at the time of acquisition.
Section 9. City reserves the right to improve any street or portion
thereof over and within the area for which said franchise is granted, including change of
grade, relocation of right-of-way, realignment of right-of-way, change in width, construction
or reconstruction of any such street, or any portion thereof. Within sixty (60) days after
receipt by Grantee of a notice in writing from City of the fact that work is to be done
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Ordinance No. 794
pursuant to any such reserved right and specifying the general nature of the work and the
area in which the same is to be performed, Grantee shall do all things necessary to protect
its franchise property during the progress of such work and if ordered by the City Council,
Grantee shall disconnect, remove,or relocate its pipes and appurtenances within the street
to such extent, in such manner, and for such period as shall be necessary to permit the
performance of such work in an economical manner, and in accordance with generally
recognized engineering and construction methods, and to permit the maintenance,
operation and use of the street as so improved. All of such things shall be done and the
work shall be performed by Grantee at its sole cost and expense. In the event that City
shall hereafter construct, install, reconstruct or repair any bridge or artificial support in or
underlying any street in which any pipes or appurtenances of Grantee are located, and in
the event that the cost thereof be increased in order to provide for the installation,
maintenance or operation of any such pipes or appurtenances in or on the street area
which said bridge or other artificial support covers or underlies, then Grantee shall pay to
City the full amount of such increase of cost, upon completion of such construction,
installation or repair. Any damage done directly or indirectly to any such public
improvement by Grantee, in exercising directly or indirectly any right, power or privilege
under this franchise, or in performing any duty under or pursuant to the provisions of this
franchise, shall be promptly repaired by Grantee, at its sole cost and expense.
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Ordinance No. 794
Section 10. Grantee shall:
(a) Construct, install and maintain all pipes and appurtenances in
accordance and in conformity with all of the applicable ordinances and rules and
regulations heretofore or hereafter adopted by the City Council in the exercise of its police
powers and not in conflict with the authority of the State of California, and, as to State
highways, subject to the provisions of general laws relating to the location and
maintenance of such facilities therein; in constructing, installing and maintaining the pipes
and appurtenances Grantee shall make and backfill all excavations in such manner and
way as to leave the surface of the public street, alley, highway, or public place in as good
condition as it was prior to said excavation, as well as to conform to the statutes of the
State of California and the ordinances of City as they now exist or may hereafter be
amended with respect to the securing of permits for excavations, filling and obstructions
of City and state highways. In case of public utilities subject to the jurisdiction of the Public
Utilities Commission of the State of California, the rules, regulations and orders of the
Public Utilities Commission shall govern whenever any conflict may exist between them
and the ordinances, codes, rules and regulations adopted or prescribed by the City;
(b) Pay to City, on demand, the cost of all repairs to public property
made necessary by any operations of Grantee under this franchise;
(c) Indemnify and hold harmless City and its officers from any and
all liability for damage proximately resulting from any operations under this franchise, and
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Ordinance No. 794
be liable to City for all damages proximately resulting from the failure of said Grantee well
and faithfully to observe and perform each and every provision of this franchise and each
and every applicable provisions of Division 3, Chapter 2 of the Public Utilities Code of the
State of California. Nothing contained in the foregoing indemnity provisions shall be
construed to require the Grantee to indemnify the City against any responsibility or liability
as may be caused by the sole negligence or willful misconduct of City or its officers,
agents, employees or independent contractors;
(d) Remove or relocate, without expense to City, any facilities
installed, used and maintained under this franchise if and when made necessary by any
lawful change of grade, alignment or width of any street, or the construction therein or
thereunder of any subway, viaduct, sewer, storm drain, pipeline or other improvement,
made by City. This franchise shall not constitute an agreement or undertaking by City, nor
impose upon City any obligation, to pay any part of the costs of removal or relocation of
any of the pipes and appurtenances when required in order to accommodate construction
of any state freeway; provided, however, that Grantee shall not be required to bear the
expense of any removal or relocation made at the request of the City on behalf or for the
benefit of any private developer or other non-governmental third party;
(e) File with the City Council within thirty (30) days after any sale,
transfer, assignment or lease of this franchise, or any part thereof, or of any of the rights
or privileges granted thereby,written evidence of the same,certified thereto by the Grantee
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Ordinance No. 794
or its duly authorized officers; and
(f) Promptly repair, at the sole cost and expense of Grantee and to
the complete satisfaction of City, any damage to any street or public improvement caused
directly or indirectly be Grantee in exercising, directly or indirectly, any right, power or
privilege under this franchise or in performing any duty under or pursuant to any of the
provisions of this franchise.
Section 11. (a) If Grantee shall fail, neglect or refuse to comply
with any of the provisions or conditions hereof, and shall not, within ten (10) days after
written demand for compliance, begin the work of compliance,or after such beginning shall
not prosecute the same with due diligence to completion, then the City Council may
declare this franchise forfeited.
(b) The City may sue in its own name for the forfeiture of this
franchise in the event of noncompliance by Grantee, its successors or assigns, with any
of the conditions hereof.
Section 12. Grantee shall pay to City a sum of money sufficient to
reimburse it for all publication and posting expenses incurred by it in connection with the
granting of this franchise; such payment to be made within ninety (90) days after the City
shall furnish such Grantee with a written statement of such expenses.
Section 13. The City Clerk shall certify to the adoption of this
ordinance and shall cause the same to be published at least once in the Rosemead
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Ordinance No. 794
newspaper of general circulation, which circulated in the City of Rosemead.
Section 14. No sale, transfer, assignment or lease of this franchise,
or any part thereof, or of any rights or privileges granted thereby, shall be valid or effective
until the provisions of Sec. 10(e) hereof shall have been complied with and the purchaser,
transferee, assignee or lessee shall have filed with the City Council of City its within
assumption of all obligations hereof in a form satisfactory to said City Council.
Section 15. The franchise herein provided for shall not become
effective for any purpose until Grantee shall file a written acceptance of all terms and
provisions hereof with the City Clerk of City.
APPROVED and ADOPTED this day of , 1999.
JOE VASQUEZ, MAYOR
ATTEST:
NANCY VALDERRAMA - CITY CLERK
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