Minutes 1923/01/22
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Gilroy, Calif., Jan. 22nd, 1921.
The regular wljourned meetin~ of the Common Council of
Jan. 4th, 19~~1, was call~(l to orller 1Jy His Honor }rayor Ja~.
princevalle. t
Present Councilmen Chesbro, Fredrickson, ~rown, Ra~tk~;
Absent Councilmen Uecker, :1chemel.
Dy motion of !~. J. CheslJro, secomlec1 by A. W. Brown Or-
dinancc No. 11f) was passerl an'l adontecl after havinp..; been rearl
an(1 re-reall by title as follows:
An Orclinance amending; 'kction llYl of' the ~!1mictpal Cole of tlv~
Citv of' rr.'llr'oy, ] t. t
J real vo 0 obstructions on siflewalks, pro"1t1)i t-
:~
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in:; t1)C
keeping amI exhibition of' ; icrcharlll..'lc>f' . 1 11
- - on Sll ew<l._;:s aTI{l
regulating signs antI a(t~ertiselllents:
Vote, Ayes, CouncilrJen T~. J. Cl-],':.-;1Ji'o, A. w. Brown, C. E. Fred-
rickson, Wm. Had.tke; Noes, CounCilmen, None; Absent Councilmen
Gerald Hecker, Cha'l. 1\'. ~3cheP1e 1.
i---'.
:Jy motion of' !~. .J. CIlCshro, seconlled h~( Wm. Hautke the follow- ......
tng Hcsolutlon waf, arl.')l)tCd, viz:
BE IT Im:WINg) by the :,~ayor and COlrnnon Council of the Ci t:v of'
. Gilroy, that all duties required to be perforrnc~ by the Atreet
Super'intendent lImier an Act of the Le,!;islatnre of the state of
California, (lesignate(l as the "Improvemnnt Act of tQll", An1'\r'oved
April 7th, 1911, (levolve upon the ci ty ~,!arshal, who is Street Com-
missioner of the City of' Gilr'oy, an'! f'or the purpose of nrosecl1t-
ing all work und.er said "Imnrovement Act of 1011", by the City or
Gilroy, the City :.!arshal is hereby :iesi{!;natecl as Gtreet :.iupertn-
tenuent, ami the bon(1 heretof'tircr-:iven by sai:l City ;,rarshal, shall
also cover the unties to be nerforMeu by him as Street Superin-
.
ten,lent.
Vote, Ayes, Councilmen \~. J. Clle~l)ro, A. \','. Brown, C.,B.
Fredrickson, '','111. Halltk~;
Noes, Councilmen, None; Absent Coun-
cilmen f,eraht Hecker, Chas. W. ScheJllel.
By lllotion of Wm. Hacttke, see-oll'le;l lJY P~. J. Ches'wo the f'ollow:
ing was adopte~, viz:-
Hesolution declarinl!' the intention of the 7rayoJ" and Cmrnnon
Council of the City .of Gilroy, in the County of Santa Clara, qtate
of California, to grant the ri~ht, nrivile~e anJ franchise of er-
ecting, constructil1{!:, amintaining amI using:, for the pnr'''1ose of'
transmitt.ing, (iistrihutin!I!' an:i snpnlyinr! electricity to Ole pU1J-
lic and particularly to the inhabitants of said City of Gilroy
ror light, heat, power amI all la.\'vfnl purposes, electric lines
"'
consi sting of' poles or ot lvn' sui t.a hIe s tructmres, an(l wire:..;,
k.,,.
clJoss-arns, lnsulators an,1 other appliances installell theY'con,
in
such p.1.rts of thl~ Int'Jlic higJlWays, strel~ts and alleys of! saill City
of' Gilroy as the Grantee liMY elect to nse for the purpose af(H'~-
said..
WlIEHEA3 the C01\8'1' COUWfIg:3 G.,"'" .un I1JL;-:;CTHIC CI)'U'ANY, a cor-
poration d.uly or~anized ~nd existing by virtue of the laws of the
State of California, has filed with the Mayor and Cornmon
Oouncil of the city of Gilroy an application for the grant
of the right, privilege and franchise mentioned in the title
to this resolution, which right, privilege and franchise are
more particularly defined and described in the form of ordin-
ance contained in the notice hereinafter ordered to be
publishedS
NOW, THEREFORE, BE IT RESOLVED, by the Mayor and Oommon
Oouncil of the City of Gilroy that it is the intention of said
Mayor and Common Council to grant the said right, privilege and
franchise in the form and upon the terms and conditions con-
tained in the said form of ordinance; that sealed bids for said
right, privilege and franchise be received by said Mayor and
Oommon Oouncil at the office of the Oity Olerk of said City
in said City of Gilroy up to the hour of 8 o'clock in the
afternoon on Monday, the 12th day of March, 1923; that all bids
received for said franchise shall be opened and read before a
meeting of said Mayor and Oommon Council to be held on the day
and at the hour last hereinbefore mentioned, at the office of
said Mayor and Common Council in said City of Gilroy; that the
said right, privilege and franchise will thereupon be struck off,
sold and awarded to the person, firm or corporation that shall
make the highest cash bid as provided by law;that the person,
firm or corporation to whom said right, privilege and franchise
shall be awarded shall file with said Mayor and Common Council,
within the time provided by law, a bond in the penal sum of
$1,000.00, which bond shall be in substance and form as pro-
vided by law; that notice of the filing of said application and
of the time and place therein fixed for receiving bids for the
grant of said right, privilege and franchise shall be given as
required by law; that the City Clerk of said City be, and he is
hereby directed to publish once a week and for four (4) successive
weeks in the Gilroy Advocate, a Weekly newspaper published in the
said City of Gilroy (there being no dmly newspaper published in
the said City of Gilroy), a notice in the following form:
"NOTICE OF SALE OF FRANCHISE:
NOTICE IS HEREBY GIVF~ That on Monday, the 22nd day of Janu-
ary, 1923, an application in writing was made and filed in the
office of the Mayor and Common Council of the City of Gilroy,
95
CO~ll~ANY, a corporation, ~or the grant o~ the right, privi-
lege and ~ranchise o~ erecting, constructing and maintaining
electric lines consisting o~ poles or other suitable structures
and wires, cross-arms, insulators and other appliances in-
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96 state o~ Cali~ornia, by the OOAST COUNTIES GAS AND ELECTRIC
stalled thereon, and o~ using the same for the purpose o~ trans-
mitting and distributing electricity to be used ~or light, heat
and power, and o~ supplying electricity to the public and par-
ticularly to the inhabitants o~ said City o~ Gilroy, in the
~
'w..-",.
highways, streets and alleys or said City or Gilroy, as speci-
fied and set ~orth in the form or ordinance hereinarter contain-
ed, which right, privilege and franchise are more fully set forth
in said form of ordinance, which contains a statement of' the char-
acter of' said right, privilege and franchise, and of the con-
ditions upon which it is proposed to grant the same, and that
said form of ordinance is in the words and ~igures ~ollowing,
viz:
'ORDINANCE NO.
Ordinance granting to
, and
assigns the right, privilege and franchise of erecting, construct-
ing, maintaining and using, for the purpose of transmitting, dis-
IIIlI!IIlI
to".".
tributing and supplying electricity to the public and particularly
to the inhabitants of the City of Gilroy, inthe County of Santa
Clara, State of California, for light, heat, power and all law-
ful purposes, electric lines consisting o~ poles and other suit
able structures and wires, cross-arms, insulators and other ap-
pliances installed thereon, in so many and in such parts o~ the
pUblio highways, streets and alleys of said City of Gilroy as the
grantee may elect to use for the purpose aforesaid.
THE MAYOR AND C01,L'\ION COUNCIL OF THE CITY OF GILROY DO
ORDAIN AS FOLLOWS:
Section 1. The right, privilege and franchise of laying,
maintaining and using, for the purpose of transmitting, dis-
tributing and supplying electricity to the public and particular-
ly to the inhabitants of said-City of Gilroy for light, heat,
'"";'<"'11
power and all lawful purposes, electric lines consisting of poles
or other suitable structures and wires, cross-arms, insulators
and other applicances installed thereon, in so many and in such
parts of the public highways, streets and alleys of said City of
i",,,,,
Gilroy as the grantee may elect to use for the purpose afore-
said, are hereby granted by the City of Gilroy for the term
of twenty-five (25) years from and after the time when this
ordinance shall tal{e effect, to
and assigns.
Section 2. All electric lines which shall be constructed
and used under and pursuant to the provisions of this ordinance
and in the exercise of' the right, privilege and franchise here-
in granted, shall be erected1 constructed and maintained in a
good and workmanlike manner under the direction of the City
Marshal of' the City of Gilroy or other officer having charge
of the streets and highways of said City, and in accordance
with all ordinances of the City of Gilroy relative thereto.
No new electric line shall be constructed, nor shall the
location of any existing electric wire be changed in any street
or alley in the City of Gilroy, without a written notice of in-
tention to construct such new line or to change the location of
any existing line being filed in the office of the City Clerk
of the City of Gilroy before the work of constructing such new
line or of changing the location of any existing line shall be
commenced. No notice shall be required of' repairs to .electric
lines where location is not changed.
Section 3. The oW~er for the time being of said right,
privilege and :franchise shall, inunediately upon erecting, con-
structing, replacing or repairing said electric lines, or any
part thereof, at its own cost and expense, place said highways,
streets and alleys, or so much thereof as may have been damaged
thereby, in as good order and condition as that in which they
were before being disturbed or excavated for the purpose of
erecting, constructing, replacing or repairing said electric
lines or any part thereof.
Section 4. The owner for the time being of said right,
privilege and franchise shall have the right to maintain, re-
pair and replace any or all of such electric lines from time to
time as may be necessary and proper.
Section 5. The grantee of the aforesaid right, privilege
and franchise, its successors and assigns, shall, fluring the
term for which the same is granted, pay to said City of Gilroy
two (2) per cent. of its or their gross annual receipts arising
97
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from the, use, operation or possession thereof; provided, however,
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that no percentage shall be paid for the first five (5) years
succeeding the date of the grant of said right, privilege and
franchise, but thereafter such percentage shall be payable an-
nually, and if such payment shall not be made, such right, priv-
ilege and franchise shall be forfeited; provided further, that
if this franchise be a renewal of a right already in existance,
the payment of said percentage of gross receipts shall begin at
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once.
Section 6. The said right, privilege mnfrancbise
are granted under and pursuant to the provisions of the laws of
the State of California, which relate to the granting of rights,
privileges and franchises by municipalities.
Section 7. This ordinance shall, except as here-
inafter otherwise provided, take effect and be in force upon
the expiration of thirty (30) days after its final passage, and
shall, before the expiration of said thirty (30) days and be-
fore going into effect, be published once in the Gilroy Advocate,
a newspaper published in said City of Gilroy; and if, during
said thirty (30) days, a petition signed by not less than ten
per cent. of the electors of said City of Gilroy protesting
against the passage of this ordinance be presented to said May-
or and Common Council, the same shall thereupon be suspended from
going into operation, and it shall be the duty of said Mayor and
Common Council to reconsider this ordinmlce. If said Mayor and
Common Council shall thereupon not entirely repeal said ordinance,
they shall submit the same to a vote of the electors either at a
regular municipal election or a special election to be called for
the purpose, and this ordinance shall not go into effect or be-
come operative, unless a majority of the voters voting upon the
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same shall vote in favor thereof.
Passed this
day of
, 1923,
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by the following vote:
Ayes: Councilmen
Noes: Councilmen
Absent: Councilmen
Approved:
Attest:
city Clerk'
Mayor of the City of Gilroy'
99
NOTICE IS HEREDY FUnTHER GIVEN, That it is proposed by
said Mayor and Common Council to grant said right, privilege and
franchise upon the ter.ms and conditions set forth in said form of
ordinance; that sealed bids for such right, privilege and fran-
chise will be recei ed by said Mayor and Common Council at the
office of the City Clerk of said City of Gilroy in said City up
to the hour of 8 o'clock P. M., on Monday, the 12th day of March,
1923;that the successful bidder, and his assigns, must, during
the life of said francluse, pay to said City of Gilroy a per-
centage of the gross annual receipts to be derived from the use,
operation or possession of said right, privilege and franchise
upon the terms and conditions set forth in said form of ordin-
ance;that said Mayor and Common Council will meet in open session
on the day and at the hour last hereinbefore mentiones and will
then and there open and read such bids; that thereupon and dur-
ing such meeting said right, privilege and franchise will be
awarded to the person, firm or corporation that shall make the
highest cash bid therefor, provided only that at the time of the
opening of said bids any responsible person, fir.m or corporation
present or represented may bid for such right, privilege and fran-
chise a sum not less than ten (10) per cent. above the highest
sealed bid therefor, and said bid may be raised not less than
ten 10) per cent. by any responsible bidder, and said bidding may
so continue until finally said right, privilege and franchise
shall be struck off, sold and awarded by said Mayor and Comnon
Council to the highest bidder therefor, in gold coin of the
United states of America, and each sealed bid shall be accompanied
with cash or a certified check payable to the City Treasurer of
said City for the full amount of said bid, and no sealed bid shall
be considered unless such cash or certified check shall be en-
~
closed therewith, and the successful bidder shall deposit at least
ten (10) per cent. of the amount of his bid w~h the City Clerk
of said City before said right, privilege and franchise shall be
struck off to him; and if he shall fail to make such deposit im-
mediately, then and in that case his bid shall not be received and
shall be considered as void, and said franchise shall then and there
be again offered for sale to the bidder who shall make the highest
cash bid therefor, subject to the same conditions as to deposit
as above mentioned; that such procedure shall be had until said
..1L.._
franchise shall be struck off, sold and awarded to the bidder
who shall make the necessary deposit of ten (10) per oent. of
the amount of his bid as hereinbefore provided; that such suo-
cessful bidder shall deposit with the City Clerk of said City
within twenty-four (24) ~ours after the acceptance of his bid
the remaining ninety (90) per cent. of the amount thereof, and
in ease he shall fail to do so, then said deposit theretofore
made shall be forfeited and the award of said franchise shall
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be void, and said franchise shall then and there by said Mayor
and Common Council be again offered for sale to the highest
bidder therefor, in the same manner and under the same re-
strictions as hereinbefore provided; and in ease said bidder
shall fail to deposit with the City Clerk of said City the. re-
maining ninety (90) per cent. of his bid within twenty-four (24)
hours after its acceptance, the award to him of said franchise
shall be set aside and the deposit theretofore made by him
shall be forfeited, and no further proceedings in the sale of
said franchise shall be had unless the same shall be again ad-
vertised and offered for sale in the manner hereinbefore pro-
vided, and
.....
NOTICE IS HEREBY FURTHER GIVEN, That the grantee of
said right, privilege and franchise must within five (5) days
after the same shall have been awarded, file with said Mayor and
Common Council a bond running to said City of Gilroy, with at
least two (2) good and sufficient sureties to be approved by
said Mayor and Common Council, in the penal sum of $1,000.00,
conditioned that such bidder shall well and truly fulfill and
perform each and every term and condition of said franchise, and
that in case of any breach of condition of said bond, the whole
amount of the penal sum therein named shall be taken and deemed to
be liquidated damages and shall be recoverable from the principal
and sureties upon said bond; and that in case said bond shall not
be filed as aforesaid, then the award of said :franchise shall be
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set aside and any money paid therefor shall be forfeited, and said
franchise shall, in the discretion of said Mayor and Common
Council, be re-advertised and again of:fered :for sale as provided
by law. For :further particulars reference is hereby made to
said application :filed as aforesaid in the o:ffice o:f said Mayor
and Common Council, and also to the resolution adopted by said
101
Mayor and Common Oouncil, on the 22nd day of January, 1923, an4
pursuant to which and to the provisions of such laws of the
State of California as relate to the granting of rights, privi-
leges and franchises by municipalities, this notice is g~en,
and all proceedings relating to the grant of said right, privi-
lege and franchise will be had."
Passed this 22nd day of January, 1923, by the following
vote:
Ayes: Councilmen E. J. Chesbro, C. E. Fredrickson, A. W.
Brown, Wm. Radtke;
Noes: Councilmen None;
Absent: Councilmen Gerald Hecker, Chas. W. Schemel.
By motion of E. J. Chesbro, seconded by A. W. Brown, the
following was adopted, viz:
Resolution declaring the intention of the Mayor and COBIDlon
Council of the City of Gilroy, in the County of Santa Clara,
State of California, to gra~ the right, privilege and fran~hise
of laying, maintaining and using, for the purpose of conveying,
distributing and supplying gas to the public and particularly
to the inhabitants of said City of Gilroy for light, heat,
power and all lawful purposes, gas pipes, mains and conduits in
so many and in such parts of the public highways, streets and
alleys of said City of Gilroy as the grantee may elect to use
for the purpose aforesaid.
WHEREAS, the COAST COUNTIES GAS AND ELECTRIC COMPANY, a cor-
ikc
poration duly organized and existing under and by virtue of the
laws of the State of California, has filed with the Mayor and
Common Council of the City of Gilroy an application for the grant
of the right, privilege and franchise mentioned in the title to
this resolution, which right, privilege and franchise are more
particularly defined and described in the form of ordinance con-
tained in the notice hereinafter ordered to be published;
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Connnon Coun-
'cil of the City of Gilroy that it is the intention of said ~rayor
and Connnon Council to grant the said right, privilege and fran-
chise in the form and upon the terms and conditions contained in
the said form of ordinance; that sealed bids for said right, privi-
lege and franchise be received by said Mayor and Common Council
at the office of the City Olerk of said City in said City of
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Gilroy up to the hour of 8 o'clock in the afternoon on Monday,
the 12th day of March, 1923; that all bids received for said
franchise shall be opened and read before a meeving of said
Mayor and Common Council to be held on the day and at the
hour last hereinbefore mentioned, at the of~i~e o~ said
Mayor and Common Council in said City of Gilroy; that the
said right, privilege and franchise will thereupon be struck
off,: sold and awarded to the person, firm or corporation that
...
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shall make the highest cash bid as provided by law; that the
person, firm or corporation to whom said right, privilege and
francp~se shall be awarded shall file with said Mayor and
Common Council, within the time provided by law, a bond in
the penal sum of $1,000.00, which bond shall be in substance
and form as provided by law; that notice of the filing of
said application and of the time and place therein fixed for
receiving bids for the grant of said right, privilege and fran-
chise, shall be given as required by law; that the City Olerk
of said City be, and he is hereby directed to publish once a
week for four (4) successive weeks in the Gilroy Gazette, a
weekly newspaper published in the said City of Gilroy (there
being no daily newspaper published in the said City of Gilroy),
a notice in the following form:
Il!IIIlII
,"",<".
"NOTICE OF SALE OF FRANCHISE,
NOTICE IS HEREBY GIVEN That on Monday, the 22nd day
of January, 1923, an application in wiritng was made and filed
in the office of the Mayor and Common Council of the City of
Gilroy, in the County of Santa Clara, State of California, by
the COAST COUNTIES GAS AND ELECTRIC C01WANY, a corporation, for
the grant of the right, privilege and franchise of laying and
maintaining gas pipes, mains and conduits and of using the same
for the purpose of carrying gas to be used for light, heat and
power and of supplying gas to the public and particularly to the
inhabitants of the said City of Gilroy, in the highways, streets
and alleys of said City of Gilroy as specified and set forth in'
,.,,"'"
M
the form of ordinance hereinafter contained, which right, privi-
lege and franchise are more fully set forth in said form of or-
dinance, which contains a statement of the character of said
right, privilege and franchise, and of the conditions upon
which it is proposed to grant the same, and that said ronn or
ordinance is in the words and rigures following, viz:
'ORDINANCE NO.
Ordinance granting to ,
and assigns the right, privilege and franchise of laying, maintain-
ing and using, for the purpose gf conveying, distributing and supply-
ing gas to the public and particularly to the inhabitants of the city
of Gilroy in the County of Santa Clara, State of California, for
light, heat, power and all lawful purposes, gas pipes, mains and
conduits in so many and in such parts of the public highways, streets
and alleys of said City of Gilroy as the grantee may elect to use
for the purpose aforesaid.
THE MAYOR AND COMMON COUNCIL OF THE CITY OF GILROY DO ORDAIN
AS FOLLOWS:
Section 1. The right, privilege and franchise of laying, main-
taining and using, for the purpose of conveying, distributing, and
supplying gas to the public and particularly to the inhabitants of
said City of Gilroy, for light, heat, power and all lawful purposes,
gas pipes, mains and conduits in so many and in such parts of the
public highways, streets and alleys of said City of Gilroy as the
grantee may elect to use for the purpose aforesaid, are hereby
granted by the City of Gilroy for the term of twenty-five (25)
years from and after the time when this ordinance shall take effect,
to and assigns.
Section 2. All gas pipes, mains and other conduits whish shall
be laid and used under and pursuant to the provisions of this ordin-
ance and in the exercise of the rigl't, privilege and franchise here-
in granted, shall be of iron, or other suitable material, and shall
be of such dimensions as the owner for the time being of said right,
privilege and franchise shall determine. All such gas pipes, mains
and conduits shall be laidin a good and workmanlike manner and at
least eighteen (18) inches below the surface of said highways,
streets and alleys under the direction of the Oity Marshall of the
City of Gilroy, or other officer having charge thereof, and in accord-
ance with all ordinances of the City of Gilroy relative thereto.
No new gas mains shall be laid, nor shall the location of
any existing gas main be changed, in any street or alley in the
City of Gilroy without the written notice of intention to lay such
new gas main, OD to change the location of any existing gas main,
103
being ~iled in the o~fice of the City Clerk of the City of Gil-
.~
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roy, before the work of laying such new gas main or of changing
the location of any existing gas main shall be commenced. No
notice shall be required of repairs to gas mains where location
is not changed.
Section 3. The ownerfbr the time being of said right,
privilege and franchise shall, ilmnediately upon laying, replac-
~
ing or repairing said gas pipes, mains and other conduits, or
any part thereof, at its own cost and expense, place said high-
ways, streets and alleys, or so much thereof as may have been
damaged thereby, in as good order and condition as that in which
they were before being disturbed or excavated for the purpose of
laying, replacing or repairing said pipes and other conduits.
Section 4. The owner for the time being of said right,
privilege and franchise shall have the right to maintain, repair
and replace any or all of such gas pipes, mains and other con-
dui ts from time to time as may be necessary and proper~.
Section 5. The grantee of the aforesaid right, privi-
lege and franchise, its successors and assigns, shall, during
the term for which the same is granted, pay to said City of Gil-
roy two (2) per cent. of its or their gross annual receipts aris-
ing from the use, operation or possession thereof; provided, how-
ever, that no percentage shall be paid for the first five (5)
years succeeding the date of the grant of said right, privilege
and franchise, but thereafter such percentage shall be payahle
annually, and if such payment shall not be made, such right,
privilege and franchise shall be forfeited; provided further,
that if this franchise be a renewal of a right already in exist-
ence, the payment of said percentage of gross receipts shall begin
~
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at once.
Section 6. The said right, privilege and franchise are
granted under and pursuant to the provisions of the laws of the
State of California which relate to the granting of rights,
privileges and franchises by municipalities.
Section 7. This ordinance shall, except as hereinafter
otherwise provided, take effect and be in force upon the expirat~n
....~
, ,><ill
of thirty (30) days after its final passage, and shall, before the
expiration of said thirty (30) days and before going into effect,
,be published once in the Gilroy Gazette. a newspaper published in
105
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said dity or ~ilroy; and if, during said thirty (~O) days, a
petition signed by not less than ten per cent. of the electors
of said City of Gilroy protesting against the passage of this
ordinance, be presented to saud Mayor and Co~non Council, the
same shall thereupon be suspended from going into operation, and
it shall be the duty of said Mayor and Connnon Council to reconsider
this ordinance. If said Mayor and Common Council shall thereupon
not entirely repeal said ordinance, they shall submit the same to
a vote of the electors wither at a regular municipal election or
a special election to be called for the purpose, and this ordin-
ance shall not go into effect or become operative, unless a major-
ity of the voters voting upon the same Shall vote in favor thereof.
Passed this day of , 1923, by the follow-
ing vote:
Ayes: Councilmen
Noes: Councilmen
Absent: Councilmen
Approved:
Attest:
Mayor of the City of Gilroy.
Ioii.-_~:
City Clerk'
NOTICE IS HEREBY FURTHER GIVEN, That it is proposed by said
Mayor and Common Council to grant said right, privilege and fran-
chise upon the terms and conditions set forth in said form of ordin-
ance; that sealed bids for such right, privilege and franchise will
be received by said Mayor and Common Council at the office of the
City Clerk of said City of Gilroy in said City up to the hour of
8 o'clock P. M. on Monday, the 12th day of March, 1923; that the
successful bidder, and his assigns, must, during the life of said
franchise, pay to said City of Gilroy a percentage or the gross
annual receipts to be derived from the use, operation or possession
or said right, privilege and franchise, upon the terms and con-
ditions set forth in said form of ordinance; that said Mayor and
Common Council will meet in open session on the day and at the
hour last hereinabove mentioned, and will then and there open and
read such bids; that thereupon and during such meeting said right,
privilege and franchise will be awarded to the person, firm or
corporation that shall make the highest bid therefor, provided only
that at the time of the operning of said bids any responsible per-
lOG .
J son, f1rm or corporation present or represented may bid ~or such
right, privilege and ~ranchise, a swn not less than ten (10) per
cent. anove the highest sealed bid thero~or, and said hid may be
raised not less than ten per cent. (10%) by any responsible bidder,
and said bidding may so continue until ~inally said right, privi-
lege and ~ranchise shall be struck of~, sold and awarded by said
Mayor and Con~on Coincil to ~he highest bidder there~or, in gold
coin o~ the United States of ft~, and each sealed bis shall
be accompanied with cash or a certified check payable to the City
Treasurer of said City ~or the ~ull amount o~ said bid, and no
sealed bid shall be considered unless such cash or certified
check shall be enclosed therewith, and the successful bidder shall
deposit at least ten (10) per cent. or the amount o~ his bid wibh
the City Clerk o~ said City before said right, privilege and
~ranchise shall be struck o~~ to him; and i~ he shall fail to
make such deposit i~nediately, then and in that case, his bid
shall not be received and shall be considered as void, and said
~ranchise shall then and there be again offered for sale to the
bidder 'ivho shall make the highest cash bid therefor, subject to
the same conditions as to deposit as above mentioned; that such
procedure shall be had until said franchise shall be struck off,
sold and awarded to the bidder who~hall make the necessary deposit
o~ ten (10) per cent. of the amount of his bid as hereinbefore pro-
vided; that such successful bidder shall deposit with the City
Clerk of said City within twenty-four (24) hours after the accept-
ance o~ his bid the remaining ninety (90) per cent. of the amount
thereof, and in case he shall fail to do so, then said deposit
theretofore made shall be forfeited and the award o~ said fran-
chise shall be void, and said ~rancluse shall then and there by
said Mayor and Common Council be again offered for sale to the
highest bidder there~or, in the same manner and under the. same re-
strictions as hereinbefore provided; and in case said bidder shall
~ail to deposit with the City Clerk of said City the remaining
ninety (90) per cent. of his bid within twenty-~our (24) hours after
its acceptance, the award to him of said franchise shall be set aside
and the deposit theretofore made by him shall be forfeited, and no
further proceedings in the sale of said franchise shall be had un-
~ess the same shall be again advertised and o~fered for sale in the
manner hereinbe~ore provided; and
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107
NOTIC~ IS aEREilY FURTHER GIVEN, That the grantee of said
right, privilege and f'ranchise must, within five (5) days
after the same shall have been awarded, file with said Mayor
and Common Council a bond running to said City of Gilroy, with
at least two (2) good and sufficient sureties to be approved
by said Mayor and Common Council, in the penal sum of $1,000.09,
conditioned that such bidder shall well and truly fulfill and
perform each and every term and condition of said franchise, and
that in case of any breach of condition of said bond, the whole
amount of the penal sum therein named shall be taken and deemed
to be liquidated damages and shall be recoverable from the prin-
cipal and sureties upon said bond; and that in case said bond
shall not be filed as aforesaid, then the award of said franchise
Passed this 22nd day of' January, 1923, by the following vote:
Ayes:
Councilmen E. J. Chesbro, A. W. Brown, Wm. Radtke, C.
E. Fredrickson;
Noes: Councilmen None;
Absent: Coun~ilmen C. W. Schemel, Gerald Hecker.
"
Acljom:'ne\l suhject to t1w
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Ci ty ClerK.
call of the Chair.