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Ordinance 14-05AN uRDINANCE OF'rHE CITY CUUNuIL OF THE CITY OF EAS i vALE, CALLFORNIA, (jRANTfNu TO SOUTHERN uALl-POKNIA GAS cumPANY, ITS SUCCESSORS AND ASSIUNS, THE FRANCHISE To uONSTRUCT, MAIMAIN ANU USE PIPES AND APPURTENANutS FuR TRANSmITiIN(i AND DISTRIBUTINU UAS FOR ANY AND ALL PuRPuSES IN, ALON(j, AuRuSS, UPUN, AND UNDER THE FuBLIU STREETS AND FLAULS WITtlIN THE CITY OF EAs rvALh. SEuTIuN I DEFINITIONS. Whenever in this ordinance the wu,ds o. phrases hereinatter Inthis section defuied are used, they shall have the respective mezu,mg assigned toot c inthe follow1ug definitions (unless, inthe given instance, the conteAt wherein they are use® snail clearly impuri: a ditterent meaning). (a) The word "grantee" shall mease Southern ,alit{? la as Company, and its lawful sues esso. s or assigns; (b) The woes d "city" shall mean the city of Easivale, a municipal corporation oar the orporated form oi in any later reorganized, consolidated, enlaiged or State Lit uafifornia, ;u lia present me reincorporated torm; (c) The word ""ata cis"" shall mean the public streets, ways, alleys and places as the same now or may hereafte. exist within said city, including state highways, now or hereafter established within said city, and treeways hereatter established within said city; (d) The word "franchise" shall mean and include any autho, if -aur.. granted hereunder in terms ot a trancnise, privilege. , permit, license or otherwise to cousiruct, maintain and use pipes and appurtenances fo, transmitting and distributing gas for all purposes under, along, acioss or upon the public streets, ways, alleys and places in the City, and shall include and be in lieu of any existing or luture ment in mhyi*n a license or 3ermit tor the;v;lrge of transacting and carrying on a business within the C;ty;. (e) The phrase "p;pcs and appurtenances" shall iticau pipes, pipelines, mains, services, traps, vents, cables, conduits, communications uitrastructure, vaults, manholes, iiieteis., appliances, attachments, appurtenances and any other properwy located or to be located in, upon, along, across, or under the streets ofthe c;ty, and used or usetul in the traitwuk6rig andlor distributing ot gas; kf) The word "gas" shall mean natural o, manufactured gas, or a mixture of naTulal andmanufamu.edgas meeting the specificat;ous.equired by the calitornia Fublic Utilities Commission; (g) The phrase "construct, maintain, and use" shall incan it) construct, erect, install, lay, operate, maintain, use, epair. or replace; and (0000304.LviuX VI) - I — N The pha.c "gross annual receipts" snan mean all gross uperating receipts received by Grantee from the sale ot gas to Giautcr.',) customers within its service territory less uncollectible amounts and less any tetunds or rebates made by Grantee to such custoluvis puisuant to ualifornia Public Utilities Commission orders or decisions. NKOWF�r r� That the right, privilege and franchise, subject to each and all ot the terms and conditions contained in this ordinance, and vu, suant to the provisions ot L)ivision 3, uhapter 2 of the Publ.c Utilities uode of the Stair, of California, known as the Franchise Act of 1937, n the same is hereby granted to G,amee to construct, maintain and use pipes and appurtenances tor transmitting and distributing gas fo, any and all purposes, undei, along, across or upon the streets ot tile City. SEuTION 3. TERM. Said franchise shall be indeterminate from and atte, the effective date hereot; that is to say, said tranchise shall endure in full foice aud effect until the same shall, with the consent of the Public utilities uommiss;on of thu State of California, be voluntarily surrendered o, abandoned by the Orantee, ot until the state or some municipal or public corporatiou theicunto duly authorized by law shall purcnase by voluntary agreement or shall condemn and take under the power ot eminent dotuaiji, all piopeffy— actually used and uaeftil in the exercise ot said trancnise and situate in the territorial limits ot the state, 7xVicw� ,mrchasnij, ot coudemning such ��j or until said tranchise shall bu torteited for non-couiphance with its terms by the Urantee. SEuTION 4. CONSLDERATIUN. (a) The urantee ot said tranchise shall, dui;iig the term thereof, pay to the City at We times hereinatter specinea, in lawful ninucy of the United States, a sum annually which shall . be 9 IL uity under th;b hauchise. (b) The (irantee shall tile with the Cleik of Cty, within three (3) months atter the expiration ot the calendar year, or fiactioual calendar year, tollowing the date ot Me granting heieof, and witnin three (3) mouths after the expiration ot each and every calendar yea, thereafter, a duly veritied statement showing in detail the total gross annual rerlpis of such Orantee during the preceding calendar year, or such fractional calenda, year, trom the sale ot gas within said uity. Such G,auicc shall pay to City within fitteen (15) days atter the time tor tiling such statujurut, ,, lawful money of the United States, the atoresaid percentage of its gross aujival eceipts tor such calendar year, or such fractional calenda, year, covered by such statement. (c) 6rantee shall pay to uity any applicable Municipal Public Lands Use Surcharg,4 [r-ursuant to Calitornia FtIbliC utilities Code Sect.on 6350 et seq. (d) At all reasonable and upon reasonable prior notice, the Grantee sh'411 permit the City to examine at its own eFense. any and all books, accounts, papers, and other recor kept or maintained by the Granter. o, under its control that are necessaty for the City to adboo of vepify i accuracy of payments me ►y Urarnee r due tthe City as a result this Franchise rovide,* however, that Grantee shall redact any customer identification information which the Grantee (Ou4073u4.DOCX VI) - 2 — required under law ot i-egulation to keep confidential, and turtner provided that Souaivas is not ,c3ponsible for delays by the City or Ntate to provide intormation required by SoCalGas to update ;Is recoras with respect to any potential City enlargements, conbolidationa ut annexations. Upon examination and in the event City discovers inaccutacies in payments made by (irantee to the City, urantee shall reimburse City for all -easoiable expenses in the examination ot (irantee7s books, accounts, papers and other reco,,ds thereof within tony-tive (4) days arter the City furnishes the urantee with a written statriiem: of such expenses. Such reimbursement shall be limited to instances where Grantee has undryald the City in excess ot tive percent (59/1u) ot what was owed. i o the extent such undeipaymeit is at or below five percent p0lv), City shall solely bear the cost of such audit. SEuTluN 5. OTHER FRANCHISES. This grant is made in fieu ot an otner franchises owued by the G,auteu, or by any succesbui of the Gamee to any rights under this tranchise, tor transmitting and distributing gas within the limits ot tne City, as said limits uow n, may hereatter exist, and the acceptance ot tile trancnise hereby 6L&qIDL-S.'- L -ML KWI H mr SECTION 7 REMOVE uR RELucATE FAULITIES. j05uu73u4.DFjCX VI) -3- (a) uity resnves the right tor itsell to lay, construct, ricer, Install, use, operate, move, relocate or maintain below SUrfaCU 0i above surface improvements ot any type o, repair, replace, ir desn ipiion in, upon, along, across, under o, uvri the streets ot the City. City further rese, ves the right to lawfully Change the gradc, Agnment or width ot any street. If the necessary exercise ot the aforementioned mserve rights contlicts with any pipes and appurtenances ot (irantee, constructed, maintained, and used pursuant to the p.c;v;sions ot the trancnise granted heieby, whether previously constructed, maintaiucd and used or not, (irantee shall, without coar: or expense to City within ninety �vO) days after written notice trom the uity Managrn, or his designated representative, and equusi: au to do, begin the physical field construction of changing the location of all ta6litic., or equipment so contficting. urantee �hall p,oceed promptly to complete such elocation to an alternative permanent location Piovidrd by City at such time. (b) Iffuspecive of any other provision of this ordivance, Grantee's right to construct, maintain, and use, or remove pipes and appurtenances the,uto shall be subject at all times to the right of the City, in the exercise ot its police powei, to require the removal or relocation of said pipes and appurtenances thereto at the aole cost and expense ot urantee, excupt (1) as the law may otherwise prov idu m; (2) except where Urantee's right to posses.,ion is pursuant to instruments evidencing , ight-of- way, easements oth er interest in ral p,opefty, or (3) except where the removal o, clocation is made at the request of the Cay on behalt ot or for the benefit of any pi vaie developer or other third party. (c) In th;-, event that the uity is made awarv; uf a pr6ect developed by a govermnuntal agency, water %.;urripm-ty, private parTy or the City that wuuld bu located within five hundred feet of a regulator statiun uL uthur majur gas taciles, City shall nutify Graunrtq-� M -'d work with Grauntee and the implicated parties in w&,r tu assess potential econuiniv. and wiminudly impacts mid fa..Alita-6-, coordinated and ccuriumically reasunablq'- outcomes. SECTIuN 8 t RANSFER OR SALE uF FRANuHISE. Giantee of the tranchise granted hereby shall file with the legislative body ot tne Uity within Thifq (30) days alter any sale, trauste., assignment or lease ot this tranchise, ot atty part thereot, or ot any ot the rights o, piivileges granted thereby, written evidence of the same, cenitied thereto by the Gi antrr. M as duly authorized otticers. Th;., franchise is granted upon each and uvury condition herein contained, and shall eve, be -DT.;clly construed against Granter. Nothing shall pass by the tranchise granted limeby to 6rantee unless it be granted in plam and unambiguous terms. Each of sa;d coud;i;ons is a material and essential condition to the granting ot the traticnise. If Giantre oliall fail, neglect or retuse to comply w;ih any of the conditions ot the franch;sr, graured hereby, and it such tahure, neglect o, ietboal shall continue for more than thirty (30) days after written demand by the C;ty Manager for compliance therewith, then City, by the City Council, in addition to all ights and remedies allowed by law, thetrupon may terminate the rights, privilege- aud franchise granted in and by this ordinance, and all the rights, privileges and the franchise of 6rantee granteci hereby shall theirupun be at an end. Tnereupon and immediately, Grantee shall surrender all ights and privileges in and to the tranchise granted hereby. No provision herein made for ilic purpose ot securing the entorcement of the terms and conditions ot the tranchise granted hrjrby shall be deemed an exclusive juniudy or to attord the exclusive proceduiu tim the enforcement ot said terms and coud;6ons- but the remedies and procedure outl;ued limein or provided, including torteiture, shall be deemed to be cumulative. (OU0073RDOux VI) -4— The franchise granted he, eu, Aer shall not in any way or to any extent impair or attect the right ot tne City to acquire We piopefty- of the Urantee hereot either by puichase of througn the r.,crcise of the ;ght of eminent doand notning herein contained shall be construed to couttact away or to er tor a term u. n perpetuity, the City's right ot eminent domain in respectthe LIM III p,oceeding of any chatacier in excess of Mr. cost to Ine Grantec at sum paid by it to the City trierefo, at the time ot tne acquisition thereot. The Grantee of said Tranchise oliall pay to the Ciry a sum ot molley sufficient to 10;mburse it tor all publication expensea incurred by it it, connection with the granting tnereof, uuh mished Such urantee with a written Shall have fu statentent of such expensca. SECTION 12. LPFECTIVE PATh. The franchise granted Itcleby Shall not become ettective until the later of the specified TMUMOUt-Written accc(liance thereot shall have been tiled by the Grantee with the City Clem Whun so tiled, such acceptance snail cmiatiTute a continuing agreement of the Grantee that if aid when the City shall thereatter anneA o. consolidate with additional territory, any and all franchise rights and privileges owned by the 6, antee therein shall likewise be deemed to be abandoned w ithin the limits of the additional teff itory. Atter the publication of this ordinance, the (.grantee shall file with the City Clerk a written acceptance of the ant is hereby granted, and an agreement to coallply with the terms and conditions hereof. V I The City clerk shall certify to tne adoption of this ordinaii-ec, and within fifteci, (15) days ?tter its adoption, snall cause the same (with a list ot the council, ,embers voting foi aA against) to be ,.4ANWP� P1-M9Mej*kvrise, a nevvspaj�ser of general c4culation published a..d circulated in said Ciuy. MSSED� APtRu v ED AND ADOPTED THIS I I" day ot June, 2014 Auest: Carol Jacobs, City ClerK {0UUU/304,DQCXV1) -5- MMMM� Ike Bootsma, Mayoi I 1 0 — IMM 1 11 MW aay Of Api d. /-U Pr anO was linally passea Dy Ult; kALY r. at held the I Ith day ot June, 2014, by the toilowing vote: AYES: Coui,cil Members DeGrandpre, Welch, Link, mayn.L Pro Tem Rush, Mayor Bootsma. City Clerk, Carol Jacobs (00007304,DOCX VI)