Resolution 367
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'-'~"'" I.
RESOLUTION NO.
RESOLUTION AUTHORIZING ACCEPrANCE OF AMOUNT OFFERED BY
PACIFIC GAS & ELECTRIC COMPANY IN PAYMENT OF FRAN::HISE
TAX, WITHOUT PREJUDICE TO THE RIGHTS OF THE CITY OF
GILROY.
WHEREAS, the City of Gilroy has heretofore granted
two (2) franchises to the COAST COUNTJES GAS & ELECTRIC
COMPANY, one giving the right to furnish gas to the
inhabitants of the said City of Gilroy, and the other to
furnish electricity thereto, under an agreement and
ordinance providing for the payment of two (2%) per cent
of the gross annual receipts arising from the sale of gas
and from the sale of electricity within the limits of the
City of Gilroy; and,
WHEREAS, the said COAST COUNTIES GAS & ELECTRIC COMPANY
has been operating under the said franchises since the
year 1947, and did pay the said percentage as long as it
was the owner and holder of said franchises; and,
WHEREAS, the said COAST COUNTIES GAS & ELECTRIC COMPANY
has merged with and become a part of the PACIFIC GAS &
ELECTRIC COMPANY, and the said PACIFIC GAS & ELECTRIC COMPANY
is now the owner and holder of said franchises; and,
WHEREAS, the said PACIFIC GAS & ELECTRIC COMPANY now
disputes the legality of the said franchises and the
requirement that it pay 2% of the gross annual receipts from
the sales of gas and electricity within the said city limits,
and a controversy exists between the said City of Gilroy
and the said Pacific Gas & Electric Company relative to
the validity of said franchises; and,
WHEREAS, the said PACIFIC GAS & ELECTRIC COMPANY has
offered to pay to the city of Gilroy for the year 19~, the
sum of $3163o~ on the gas franchise, and the sum of $4315.23
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on the electricity franchise, without prejudice to the rights
of said City tG challenge the sufficiency of the same, and
upon the understanding that the acceptance of the said payments
will not constitute a waiver of any of the rights of the City
of Gilroy whatsoever as to the sufficiency of the payments,
and that the City shall retain all rights which it would
possess were it not to accept said payments.
NCW J THEREFORE, BE IT RESOLVED:
That the said City of Gilroy accept the said payments
under the conditions which they have been offered, and that
in such acceptance the City of Gilroy does not waive any
rights whatsoever of any kind.
PASSED and ADOPTED the 5th day of .December, 1955, by
the following vote:
AYES:
NOES :
ABSENT:
Councilmen Rush, Pate ,Kennedy ,Petersen, Sanchez
( None)
Councilman Gallo
Mayor
Attest:
City Clerk