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2008-06 Granting to Southern CA Edison Co. a Franchise to Use ORDINANCE NO. 2008-06 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, GRANTING TO SOUTHERN CALIFORNIA EDISON COMPANY, ITS SUCCESSORS AND ASSIGNS, A FRANCHISE TO USE AND TO CONSTRUCT AND USE, POLES, WIRES, CONDUITS AND APPURTENANCES, INCLUDING COMMUNICATION CONDUITS AND CIRCUITS NECESSARY OR PROPER THEREFOR, IN, ALONG, ACROSS, UPON, OVER AND UNDER THE PUBLIC STREETS, WAYS, ALLEYS AND PLACES, AS THEY MAY NOW OR HEREAFTER EXIST, WITHIN THE CITY OF MENIFEE AND DECLARING THE URGENCY THEREOF THE CITY COUNCIL OF THE CITY OF MENIFEE 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 Menifee 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 "municipality" shall include counties, but no county shall grant a franchise pursuant to the 1937 Franchise Act in any incorporated area. d. The word "Streets" shall mean the public streets, ways, alleys and places as the same now or may hereafter exist within the City. e. The phrase "poles, wires, conduits and appurtenances" shall mean poles, towers, supports, wires, conductors, cables, guys, stubs, platforms, cross arms, braces, transformers, insulators, conduits, ducts, vaults, manholes, meters, cut-outs, switches, appliances, attachments, appurtenances and any other property located or to be located in, along, across, upon, over or under the streets of the City and used or useful, directly or indirectly, for the purpose of transmitting or distributing electricity for all purposes including secondary uses of excess available capacity of Facilities, pursuant to agreements between Grantee and third parties. f. The phrase "construct and use" shall mean to lay, construct, excavate, encroach, erect, install, reinstall, operate, maintain, use, repair, modify, replace, relocate, or remove any Facilities used for transmitting and distributing electricity for all purposes within the Franchise Area. 4817-0664-4995.1 g. The term "Facilities" shall mean the poles, wires, conduits and appurtenances, or any of them, of any kind installed or constructed by Grantee as described in section (d) above. h. The word "Franchise" shall mean and include any authorization granted hereunder in terms of a franchise, privilege, permit, license or otherwise to construct and use poles, wires, conduits and appurtenances, including related communication conduits and circuits, for transmitting and distributing electricity for any and all lawful purposes in, along, across, upon, over, and under Streets within the City. SECTION 2: Pursuant to and in accordance with the provisions of the Franchise Act of 1937, Public Utilities Code §§6201 et seq the City of Menifee hereby grants to Southern California Edison Company (Grantee), and its lawful successors and assigns a franchise to operate facilities for the purposes of transmitting and distributing electricity for any and all lawful purposes upon poles, wires, conduits and appurtenances, including communication conduits and circuits, secondary uses of excess available capacity of Facilities, pursuant to agreements between Grantee and third parties, necessary or proper therefore, in, along, across, upon, over and under the Streets within the City of Menifee. The City and Grantee intend that all work done by Grantee under this Franchise, on any Franchise Facilities and within the Franchise Area shall be covered by a blanket permit issued by the City to Grantee. Nothing in this Franchise in any way affects or otherwise requires Grantee to provide, report or otherwise disclose to the City or its agents or other third parties, any documents, maps, Facilities information, transmission/distribution systems, generating plants, apparatus inventories, or other records that are considered confidential, privileged, or are otherwise protected or classified as "protected materials" under Federal Energy Regulatory Commission (FERC), CPUC or Grantee's Information Management Policy. SECTION 3: The franchise shall be for an indeterminate term from the date of final adoption by the City. Said franchise shall endure in full force and effect for the entire indeterminate term unless and until, with the consent of the Public Utilities Commission of the State of California, Grantee shall voluntarily surrender or abandon this franchise 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 the Franchise and situated within the territorial limits of the State, municipal or public corporation purchasing or condemning such property, or until the franchise shall be forfeited for noncompliance with its terms by the Grantee. Nothing in this franchise in any way impairs or affects the right of the City to acquire the property of the grantee by purchase or condemnation, and nothing contained in this franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain in respect to any public utility. SECTION 4: Grantee shall pay to the City the sum provided by law, which is presently two percent (2%) of the gross annual receipts of Grantee arising from the use, operation or possession 4817-0664-4995.1 2 of the franchise; except that this payment shall not be less than one percent (1%) of the gross annual receipts derived by Grantee from the sale of the electricity within the Franchise Area. SECTION 5: The Grantee shall file with the City Clerk of the City of Menifee, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts of said Grantee derived during the preceding calendar year, or such fractional calendar year, from the sale of electricity within the limits of the City. The 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 aforesaid percentage of its gross receipts for the calendar year or fractional calendar year, covered by said statement. Any neglect, omission or refusal by Grantee to file said verified statement, or to pay said percentage at the times or in the manner herein before provided, shall constitute grounds for the declaration of forfeiture of this franchise and of all rights of Grantee hereunder. SECTION 6: The Grantee of this franchise shall pay to the City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting of this franchise, within thirty (30) days after the City shall have furnished Grantee with a written statement of such expenses. SECTION 7: The Grantee shall construct and use its facilities in accordance and in conformity with all of the ordinances and rules adopted by the City Council in the exercise of its police power and not in conflict with the paramount authority of the State, and, as to state highways, subject to the laws relating to the location and maintenance of such facilities therein. SECTION 8: The Grantee shall remove or relocate any facilities installed, used and maintained under the franchise if and when made necessary by any lawful change of grade, alignment or width of any public street, way, alley or place, including the construction of any subway, viaduct or any public works construction projects undertaken by the City. Such removal or relocation shall be performed by Grantee without expense to the City. However, Grantee shall not be required to bear the expense of any removal or relocation made at the request of the City on behalf of or for the benefit of, any developer or other third party. In no event shall Grantee be obligated to incur the cost of removal or relocation of any Facilities which were previously removed or relocated at the request of the City, if the City request for the removal or relocation is delivered on a date that is less than ten (10) years from the date of the completion of a prior removal or relocation requested by the City with respect to such Facilities. City shall at all times provide Grantee with access and a right of entry to all Streets within gated communities and to all of Grantee's facilities therein. SECTION 9: Grantee shall indemnify and hold harmless the City of Menifee and its officers, agents and employees from all liability for damages proximately resulting from any operations under this franchise. SECTION 10: Grantee shall pay to the City on demand the cost of all repairs to public property made necessary by any of the operations of the Grantee under this franchise. 4817-0664-4995.1 3 SECTION 11: The Grantee shall file with the City within thirty (30) days after any sale, transfer, assignment, or lease of this franchise or any part hereof, or any of the rights or privileges granted by this franchise, written evidence of the transaction certified by Grantee or its duly authorized officers. SECTION 12: This franchise shall never be given any value before any court or other public authority in any proceeding of any character in excess of the cost to the Grantee of the necessary publication and any other sum paid by the City herefor at the time of acquisition. SECTION 13: The City of Menifee, by its City Council, may declare this franchise forfeited, if the Grantee fails, neglects or refuses to comply with any of the provisions or conditions of this franchise, and does not within ten (10) days after written demand for compliance begin the work of compliance, or after such beginning, does not prosecute the work with due diligence to completion. Provided, however, that Grantee shall be afforded due process including reasonable notice and reasonable opportunity to cure any noncompliance prior to the commencement of any termination proceedings. SECTION 14: The City of Menifee may sue in its own name for the forfeiture of this franchise, in the event of noncompliance with any of the provisions or conditions hereof by Grantee. SECTION 15: This franchise shall not become effective unless Grantee files written acceptance hereof with the City Clerk within thirty (30) days after the adoption of this Ordinance. Such written acceptance shall constitute a continuing agreement by the Grantee that if and when the City later annexes, or consolidates with, additional territory, all franchises, rights and privileges owned by the Grantee therein shall be deemed abandoned and subsumed by this Ordinance within the limits of the additional territory. SECTION 16 The Grantee shall file within five days after the date of the granting of the franchise and at all times during the life of this franchise keep on file, with the City Council a corporate surety bond running to the City, in the penal sum of One Thousand Dollars ($1,000.00) conditioned that the Grantee shall well and truly observe, fulfill and perform each and every term and condition of this franchise, and that in the case of any breach of condition of the bond, the whole amount of the penal sum therein named shall be recoverable from the principal and surety upon the bond. If the bond is not so filed, or does not receive the approval of the City Council, the franchise may be refused or forfeited and any money paid to the City in connection therewith shall be retained by the City. SECTION 17: URGENCY ORDINANCE. This Ordinance shall become effective immediately upon adoption as Menifee is a new city which incorporated on October 1, 2008, and this Resolution is needed to ensure the flow of revenue to the new city. SECTION 18: The City Clerk shall cause this Ordinance to be published and posted within fifteen (15) days after its passage in three (3) public places within the City as required by law. 4817-0664-4995.1 4 PASSED, APPROVED, AND ADOPTED this day of� , 2008 by the following vote: AYES: ����`-��, ��(�✓ '� ��L,e��/ `�y�C-�,,y�y�� \�L,c�c�'��� NOES: ABSTAIN: ABSENT: Wallace W. Edgerton, Mayor ATTEST: Ka5y Bennett, City Clerk APPROVED AS TO FORM: Elizabe Martyn, City Attorney 4817-0664-4995.1 5