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Home My WebLink About8.5 PG&E Application Gas & Electric t • 1441-1E CITY I�LTBLIN O F 0 P.O. Box 2340 • Dublin.CA 94566 (415) 829-3543 10 2 0 -10 TO: Councilmembers FROM: City Attorney DATE: March 26 , 1982 RE: P. G. & E. APPLICATIONS FOR GAS AND ELECTRIC FRANCHISES The P. G.. & E. has submitted applications for a franchise to distribute gas and electricity in Dublin_ The Franchise Act of 1937 (Government Code Sections 6201, et seq.) governs gas and electric franchises . Section 6231 provides that the franchise shall pay to a City 2% of the gross annual receipts and, in no event, less than 1% of the gross annual • receipts. This franchise "fee" is incorporated in the franchise ordinance submitted .by P. G. & E. to Dublin. As a matter of fact, the proposed Dublin gas franchise 4 Ordinance is drafted in substantially the exact language of various provisions of the Franchise Act of 1937. Attached hereto is a copy of the proposed Ordinance.. I have annotated the Ordinance in the margin to reflect the statutory source of the Ordinance provisions. The only area which may be open to negotiation is the duration of the franchise. P. G. & E. , in its application, has requested an indeterminate franchise. Section 6264 provides that an indeterminate franchise shall endure in full force and effect until it is abandoned, purchased, condemned or forfeited. Section 6231 provides that a franchise may, however, be determinate, or fixed in duration. I would venture a guess that probably 99.9% of all P. G. & E. gas and electric franchises in California are indeterminate in duration. In rare instances, cities have condemned or purchased P. G. & E. franchises and delivered gas and electricity to their residents at substantially lower rates . Palo Alto is a notable example. Given the current concern about rising utility bills and being unaware of future developments, Dublin may want to try to impose a determinate franchise. • TO: CouncilmeMbelp March 26 , 1982 • Page Two • The advantage of so doing could be to minimize the purchase or condemnation costs of acquiring the P. G. & E. transmission facilities in the event that Dublin, sometime in the future, decides to acquire P. G. & E. 's facilities, as the value of a lengthy franchise is far more than a franchise which is shorter in duration. Admittedly, the probability of Dublin acquiring the utilities is slim. However, inasmuch as this will be the only time Dublin may have to impose a determinate term, it should be considered. In the event that the City Council desires to proceed with. the application, it should adopt a Resolution of Intention to Grant the Franchise which provides for the publication of a notice of public hearing. After the public hearing, which shall be not less than 20 nor more than 60 days after the passage of the Resolution, the Council may adopt the Ordinance granting the franchise . The franchise then becomes effective 30 days after passage. P. G. & E. will pay Dublin's costs of publication upon receipt of a statement by the City. Dated: March 26 , 1982 , City Attorney • Gas IndetA.P. ,• ' ''! . ® ORDINANCE NO. ORDINANCE GRANTING TO PACIFIC GAS AND ELECTRIC COMPANY, ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE TO INSTALL, MAINTAIN AND USE PIPES AND APPURTENANCES FOR TRANSMITTING AND DISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER, ALONG, ACROSS OR UPON THE PUBLIC STREETS AND PLACES AS THE SAME NOW OR MAY HEREAFTER EXIST WITHIN THE CITY OF DUBLIN The City Council of the City of Dublin does ordain as follows : Section 1. Whenever in this ordinance the words of phrases hereinafter in this section defined are used, they shall have the respective meanings assigned to them in the following definitions : (a) The word "Grantee" shall mean Pacific Gas and • Electric Company and its lawful successors or assigns. (b) The word "City" shall mean the City of Dublin 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 as the same now or may hereafter exist within City, including State highways, now or hereafter established within City, and freeways hereafter established within City. (d) The word "gas" shall mean natural or artificial gas, or a mixture of natural and artificial gas. (e) The phrase "pipes and appurtenances" shall mean pipes, pipelines, mains, services, traps, vents, vaults, manholes, meters, gauges, regulators, • -1` • �I yyt ''N I , 100 All . s Gas Indet. A.P. values, conduits, appliances, attachments, appurtenances and, without limitation to the foregoing, any other property located or to . be located in, upon, along, across, under or over the streets of City, and used or useful 1 t 1 in transmitting and/or distributing gas. (f) The phrase "install, maintain and use" shall mean to lay, construct, erect, install, oper- ate, maintain, use, repair, or replace. 1 „ "4-. Cock Section 2 . The franchise to install, maintain i 1 , 7a2. and use in the streets of City all pipes and appurtenances i for transmitting and distributing gas to the public for any 1 and all purposes is hereby granted to Grantee. Section 3. Grantee shall relocate, without expense to City, any pipes and appurtenances installed, maintained i or used under this franchise, if and when made necessary by any . 297 lawful change of grade, alignment or width of any streets by City, including the construction of any subway or viaduct, provided, however, that the cost of any such relocation made 1 necessary by the construction or any lawful change of grade,. alignment or width of any freeway constructed by the State of California shall be divided equally between Grantee and the State of California. Section 4 . Said franchise shall be indeterminate, that 4-6 is to say, said franchise shall endure in full force and effect until the same shall, with the consent of the Public Utilities Commission of the State of California, be voluntarily surrendered or abandoned by Grantee, or until the State or 7 3 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 -2- . 4:) 0 Gas Indt. A.P. actually used and useful in the exercise of said franchise and situate in the territorial limits of the State, municipal or public corporation purchasing or condemning such property, or until said franchise shall be forfeited for noncompliance with its terms by Grantee. Section 5. Grantee shall during the term of L-:431(e) said franchise pay to City two per cent (2%) of the gross annual receipts of Grantee arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one per cent (1%) of the gross annual receipts of Grantee derived from the sale of gas within the limits of City. Section 6. Grantee shall file with the City Clerk t. �� of City, within three (3) months after the expiration of the (, 300 calendar year or fractional calendar year, following the date of the granting hereof, and within three (3) months after the expiration of each and every calendar year thereafter, a duly t verified statement showing in detail the total gross receipts of Grantee during the preceding calendar year, or such 1 fractional calendar year, from the sale of gas within City. Grantee shall pay to City within fifteen (15) days after the time for filing such statement, in lawful money of the United IStates, the aforesaid percentage of its gross receipts for i such calendar year or such fractional calendar year, covered by such statement. Any neglect, omission or refusal by Grantee to file such verified statement, or to pay said percentage at the time and in the manner specified shall be S grounds for the declaration of a forfeiture of this franchise and . 3 of all rights of Grantee hereunder. 1 ai -3- • 1 Gas Indet . A. P. Section 7 . Said franchise is granted under the Franchise Act of 1937. Section 8 . This ordinance shall become effective thirty (30) days after its final passage unless suspended by a referendum petition filed as provided by law. 1 1 Section 9. Grantee shall pay to City a sum of money sufficient to reimburse it for all publication expenses money P P ley incurred by it in connection with the granting of said franchise. Such payment shall be made within thirty (30) days after City shall have furnished Grantee with a written statement of such expenses . Section 10. The franchise granted hereby shall 63.S5 not become effective until written acceptance thereof shall have been filed by Grantee with the City Clerk of City. Section 11. The City Clerk of City shall cause this ordinance to be posted in at least three (3) public places in City in accordance with Section 36933 of the Government Code of the State of California. First read at a regular meeting of the City Council of City held on the _J day of , 1982, and finally adopted and ordered posted at a regular meeting' of said Council held on the day of , 1982, by the A following vote: 4 AYES: Councilmen 1 NAYS: Councilmen 4 ABSENT: Councilmen Mayor of the City. of Dublin ATTEST: Clerk of the City of Dublin -4 1