CC - Item 3G - Grant to Southern California Water Company S — E�
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teport
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAG��
DATE: MAY 6, 1999
RE: RESOLUTION NO. 99-23-A RESOLUTION BY THE ROSEMEAD
CITY COUNCIL DECLARING ITS INTENTION TO GRANT TO
SOUTHERN CALIFORNIA WATER COMPANY, A FRANCHISE TO USE OR
TO LAY AND USE PIPES, CONDUITS AND APPURTENANCES FOR
TRANSMITTING AND DISTRIBUTING WATER FOR ANY AND ALL
PURPOSES IN, ALONG,ACROSS, UPON AND UNDER THE PUBLIC
STREETS,WAYS,ALLEYS, AND PLACES WITHIN THE CITY OF
ROSEMEAD AND FOR SETTING A PUBLIC HEARING ON JUNE 8, 1999
Southern California Water Company has applied for a renewal of their 25-year franchise for
water service in some parts of the city.
The California Public Utilities Code requires that the City Council pass a Resolution of Intention
and publish Public Notice of the proposed franchise renewal. Presented for Council consideration
is Resolution No. 99-23,A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA, DECLARING ITS INTENTION TO GRANT TO SOUTHERN
CALIFORNIA WATER COMPANY, A FRANCHISE TO USE OR TO LAY AND USE PIPES,
CONDUITS AND APPURTENANCES FOR TRANSMITTING AND DISTRIBUTING WATER
FOR ANY AND ALL PURPOSES IN, ALONG,ACROSS, UPON AND UNDER THE PUBLIC
STREETS,WAYS, ALLEYS AND PLACES WITHIN THE CITY OF ROSEMEAD. This
Resolution sets a public hearing on June 8, 1999 and directs the City Clerk to publish Public
Notice of the public hearing.
In exchange for its franchise to use the city streets and rights of way, Southern California Water
Company pays a franchise fee of 2% of its gross revenue attributable to the Rosemead franchise.
Last year, the city received $16,181.18 in franchise fees from Southern California Water
Company. The 2% amount is statutory and cannot be increased.
COUNCIL . , L .
fjtg
k`.AY 1 199
ITEM No.
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Page 2.
Prior to the public hearing,staff will review the existing franchise agreement and determine if any
modifications are necessary.
RECOMMENDATION
That the City Council adopt Resolution No. 99-23 setting the public hearing on the franchise
renewal for June 8, 1999 and directing the City Clerk to publish Public Notice thereof.
FGT:js
Attachments
RESOLUTION NO. 99-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, DECLARING ITS INTENTION TO GRANT TO SOUTHERN
CALIFORNIA WATER COMPANY A FRANCHISE TO USE OR TO LAY AND
USE PIPE, CONDUITS AND APPURTENANCES FOR TRANSMITTING AND
DISTRIBUTING WATER FOR ANY AND ALL PURPOSES IN,ALONG,ACROSS,
UPON AND UNDER THE PUBLIC STREETS, WAYS,ALLEYS AND PLACES
WITHIN THE CITY OF ROSEMEAD
WHEREAS, SOUTHERN CALIFORNIA WATER COMPANY, a California corporation,
has filed with the City Council of the City of Rosemead, application requesting that a franchise be
granted to it of the character and for the purpose mentioned in the form of notice hereinafter set
forth; and
WHEREAS, in the opinion of said City Council, the public good requires that said franchise
be granted.
NOW, THEREFORE, BE IT RESOLVED, that said City Council intends to grant said
franchise, that hearing of objections to the granting thereof will be held at the time and place
specified in the form of notice hereinafter set forth, which the City Clerk of said City is hereby
directed to publish at least once in a newspaper of general circulation in said City, within fifteen(15)
days after the passage of this Resolution, and that said notice shall be substantially in the following
words and figures:
NOTICE OF INTENTION TO GRANT FRANCHISE
NOTICE IS HEREBY GIVEN that the Southern California Water Company, a
California corporation, has filed its application with the City Council of the City of
Rosemead requesting that said City Council grant to it a franchise from May 23, 1999
to May 22, 2024 pursuant to Division 3, Chapter 2 of the Public Utilities Code of the
State of California (the "Franchise Act of 1937"), to use or to lay and use pipes,
ditches, flumes, conduits and appurtenances for transmitting and distributing water for
any and all purposes, upon and under the public streets, ways, alleys and places as
they now exist or may hereafter exist within the City of Rosemead.
If said franchise shall be granted to it, said Southern California Water Company, its
successors and assigns, hereinafter designated 'Grantee, for each full or fractional
calendar year during the life of said franchise will pay to said City, in lawful money of
the United States, a sum equivalent to two per cent (2%) of the gross annual receipts
of said Grantee arising from the use, operation or possession of said franchise;
provided, however, that such payment shall in no event be less than a sum equivalent
Resolution No. 99-23
Page 2.
to one per cent (I%) of the gross annual receipts derived by Grantee from
the sale of water within the limits of said City. Such percentage shall be paid annually
from the date of the granting of the franchise applied for, and in the event such
payment shall not be made, said franchise shall be forfeited.
The City Council of the City of Rosemead proposes to grant said franchise from May
23, 1999 to May 22, 2024, or until with the consent of the Public Utilities
Commission of the State of California it is 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 such franchise and situate within the territorial limits of the State,
municipal, or public corporation purchasing or condemning such property, or until
such franchise is forfeited for noncompliance with its terms by Grantee. Any and all
persons having any objections to the granting of said franchise may appear before said
City Council at Rosemead, California at the hour of 8:00 o'clock p.m. on the 8th day
of June, 1999, and be heard thereon; and at any time not later than the hour set for
hearing objections, any person interested may make written protest stating
objections against the granting of said franchise, which protest must be signed by the
protestant and be delivered to the City Clerk of said City. The City Council at the
time set for hearing said objections shall proceed to hear and pass upon all protests so
made_
For further particulars reference is hereby made to said application which is on file in
the office of said City Clerk, and also to the resolution adopted by said City Council
on the 11th day of May, 1999, declaring its intention to grant said franchise
DATED this 11th day of May, 1999.
By order of the City Council of the City of Rosemead, California.
Nancy Valdcrrama
City Clerk
City of Rosemead
MAYOR
ATTEST:
City Clerk