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Minutes 1943/01/18 691 Gilroy. California. January l8,l941. This regular adjourned meeting of the Common Counoil is called to order by His Honor Mayor George C.Milias,Jr. Present:Councilmen George A.Martln,George M.Mason,Nat Heiner,J.H. Wentworth,David V.stout. Absent:Councilmen James Battersby. The alUlounces that the purpose 0 f the meeting is to discuss the renewal of the gas and electric franchises of the Coast Count ies Gas and Ele ctric Company. A Resolution of Intention in the Matter of the Application of the Coast Counties Gas and Electric Company, corporation, for algaJh.2'.' ..' franchise is now read by the Deputy City Clerk. Motion by Councilman Stout that the matter of a new franoh~se be tabled until suoh time as the old franchise runs its course. Motion fails far want of a second. COAST COUNTIES GAS AND ELECTRIC COMPANY, a corporation, In the Matter of the Application of) ) ) ) ) ~ RESOLUTION OF INTENTION for a gas franchise I , I COAST COUNTIES GAS AND ELECTRIC COMPANY, a corporation,having heretofore, by a petition in writing filed with the Mayor and Common Council of the City of Gilroy, County of Santa Clara, state of Calif'ornia,on the 24th d~ of June,l942, made its flPplioation to said Mayor and Common C'ouncil for a gas franchise, and said application coming on regularly to be heard and considered on this 18th day of January,1943 at a regular adjourned . meeting of said Mayor and Common Council,and good cause appearing therefor, upon mot1o~ of Councilman Martin, seconded by Councilman Heiner: IT IS RESOLVED,ORDERED,DECLARED and STATED that is proposed to grant said fWa~hise and that the character of said franchise proposed to be granted and the terms fo~which it is granted and the conditions and restrictions of said franohise are as follows,ngmely: A fraDC~1,8e for a period of thirty-five (35) years from the date of the grant to use the public streets,highways and alleya of the City of Gilroy, County of' Santa Clara, state 0 f california, for the purpose of constructing,maintaining and using ~q~as transmission system for t he sale and di stributlon of gas to s.aid municipality and its inhabitants for light, hea t, power and all lawful pu rpo ses, and any 0 t them. Said franchise shall be effective within the corpcrate limi~s of the City of Gilroy as now existing and as the same may be extended during the life of the franchise. . Said franchise is to be granted and shall be held and enjoyed upon the terms and conditions therein contained and the grantee thereof must~ 692 within thirty (50) days after the passage of the prdinance making the grant, file with the cler k of the Common Council of the City of Gilroy a written acceptance of the terms and conditions therein espressed. The term "grantee" whenever used in said grant of franchise shall be held to include the grantee, its successors and assigns. The grantee, shall, in good faith, commence th e work of construct ion of said gas transmission system within not more than four (4) months from the granting 0 f the franchise, and if soald work has not already been commenced said work once begun shall be prosecuted thereafter diligently and in good faith sO as to meet and fill the reasonable needs of said municipality and inhabitants thereof. The grantee shall, during the li:fa of said franchise, pay to the City of Gilroy two per cent (2%) of the gross annual receipts of said grantee arising from the sale of gas within the limits of the city of Gilroy, provided, however, that the amount so paid shall in no event be less than two per cent (2%) of the gross annual receipts arising from the grantee's use, operation or possession of said fran- chise. Said percentage shall be payable thirty (50) days after June 30,1943 and within thirty {30} days after the expiration of each and every'eyar thereafter, and in the event said payment is not made, said franchise isto be forfeited. No percentage shall be paid for the first five (5) years immediately succeeding the date of the franchise unless the franchise is a renewal of one already franted to said grantee, in which case the payment of said two per cent (2%) shall begin at once; provided, however, that if and when any existing gas operator or successor in .ald city shall operate under said franchise, then the said payment of two per cent C2~) shall begin at once. The right, privelege and franchise to be granted shall not be ex- clusive, and there slall be reserved to said City of Gilroy the right and privelege to grant like franchises for like purposes to other persons or corpcwations who shall makde pIOper application therefor. Wbenever grantee, its successors or assigns, shall disturb any of the streets for any 0 f the purpo ses aforesaid, it ot they shall restore th e SaIr19 to good 0 rder and condi tion as soon as pract icable wi thout unnecessary delay, and failing to do so, the Common Council of said City of Gilroy shall have the right to fix a reasonable time within within which such repairs and restoration of st~eets shall be completed, and upon failure of such repairs being made by said granteeJil it successors and assigns, the said Common Council shall cause such repairs to be made at the .-pense of said grantee, its successors and assigns. In case of any change in grade of any street, the grantee will lower its gas facilities thereto as necessary without cosr to the Ci ty of Gilroy. The ordinance granting said franchise shall go into efrect thirty (30) days after it final passage unless its operation is suspended by a referendum petition filed according to law. It is further RESOLVED,ORDERED,DECLARED and STATED that Monday,the lst day of March,l943, up to 8:00 o'clock P.M. of said day, be and the same is hereby fixed as the hour and day up to which tenders will be rece ived for sai d franchise at the office of the City Clerk of said City of Gilroy in the City Hall and that the City Clerk if said City be and he is hereby directed to advertise the fact that said application for franchuse has been made to said Mayor and Common Council, together with a statement that its is proposed to grant said franchise upon the aforesaid terms and subject to the aforesaid conditions and restrictions by publishing in the Gilroy Evening Dispatch, a newspaper of general circulation published in the City o~ Gilroy; that said advertisement be published for ten (10) successive days or as aftern as said paper is published during said period; that the full publication thereof be complete in not less than twenty (20) nor more than thirty (30) days before said lst day of March,1943, the day fixed 'up to which tenders will be received; that such advertisement state the character of the franchise herein proposed to be granted, and that said advertisement and notice to be given by said clerk pursuant to this order and resolutt.on shall be substantially the form of the Exhibit "B" attached hereto and made a part hereof. Adopted by the Mayor and Common Council of the City of Gilroy, County of Santa Clara, state of california, on the l8th day of January,1943, by the following vote. 1 ~ ~ .... ~ , I ..... AYES: Councilmen George A.Martin,Nat Heiner,J.H. Wentworth. NOES: Councilmen George M.Mason,David V.stout. ABSENT: Counc ilmen James Batt Gilroy. 69a ATTEST: B:8,C~/ Deputy City Clerk, City of Gilroy. ElHIBIT B In the Matter 0 f the Application of} ) COAST COUNTIES GAS AND ELECTRIC ) COMPANY, a corporation, ) NOTICE OF SALE OF FRANCHISE ) for a gas franchise ) ) ~ l ~ Notice is hereby given that COAST COUNTIES GAS AND ELECTRIC COMPANY, a corporation, has filed woth the Mayor and Common Council of the City of Gilroy its certain application for a franchise for itself, its successors and assigns, to use the public streets, highways and alleys of said municipality for the purpose of vonstructing, maintaining and using a gas transmission system, for the purpose of selling and dis- tributing gas for light,heat,power and all lawful purposes,and any of them to said City of Gilroy and its inhabitants, all as ap~ars in said application and the records of said Mayor and Common Council, reference to which is hereby made for greater particularity. Notice is further given that on the 1st day of March,l945, at the hour of 8:00 o'clock P.M. of said day or as soon thereafter as the matter can be heard in the council chamber of said Mayor and said Common Council situated in the City Hall in said City of Gilroy, the said Mayor and said Common Council will sell said right,priv'lege and franchise as previously set forth in sa id applicat ioIl. lb.f):.;t:Pfl _!lgl!leste cash bidder. Said franchise proposed to be sold will be generally as set fcrth in said application except that the same shall include the following prOVisions: Said franchise will be for a term of thirty-five (35) years from ... and after the date of award. Whenever grantee, its successors or assigns, shall disturb any of the streets for any of the purposes aforesaid, it or they shall restore the same to good order and condition as soon as practicable without un- necessary delay, and d"ailing to do so, the Common Council of said City of Gilroy shall have the right to fix a reasonable time within which such repairs and restoration of streets shall be completed, and upon failure of such repairs being made by said grantee, its successoraoor assigns, the said Common Council shall cause such repairs to be made at the expense o~ said grantee, its successors and assigns. Said franchise shall be effective within the corporate limits of the City of Gilroy as now existing and as ~he same may be extended during tle life of the franchise. The grantee from time to time shall supply yhe City or Gilroy with a map showing the principal transmission and distribution lines used under said tranchise. In case of any change in grade of any street~ the grantee will lower it s gas facilities thereto as necessary without cost to the City 0 t Gilroy . ",~..+.... I · I - Notice is hereby given that sealed cash bids will be received up to and at said hour of hearing in said council chamber of said Mayor and Common Council situated in the City Hall in the City or Gilroy. And notice is further given that the successful bidder, his successors and assigns, must duing the life of sail franohise pay to the said City ot Gilroy two per d~nt (2%) of the gross annual receipts of said grantee arising from the sale of gas within the limits of the City of Gilroy, prOVided, however, that the amount so paid shall in no event be less than two per cent (2~) of the gross annual receipts arising from the grantee's use, operation or possession of said franchise. No percentage shall be paid for the first five years succeeding the date of ~aid tranchise, but thereafter such percentage shall be payable annually; and in the event said payment is not made said franchise shall 694 be forfeited; provided, however, that if the franchise Be a renewal of a right already in existence the payment of said percentage of gross receipts to the City of Gilroy shall begin at once, provided, further that if and when any existing gas operator or successor in said city shall operate under the franchise, then the said payment of two per cent (2%) shall begin at once. The issuance of said franchise shall be conditioned that the bidder shall file a bond running to said municipality, with at least two good and sufficient surities to be approved by said Mayor and Common Council in the penal sum of '1,000. conditioned that such bidder shall well and truly observe, fulfill aM pe rform each and every term and <<ondltion of such franchise, and that in case of any breach of such bond, the whole amount of the penal sum therein named Shall be taken and deemed to be liquidated damages, and slall be recoverable tram the principal and surities upon said bond. Said bond shall be filed with the Mayor and Common Council within five (5) days' after such franchise is awarded, and upon the filing and approval if such bond, t the said franc hise shall, by said Mayo rand Common Counc il, be grant- ed by ordinance to the person, firm or corporation to whom it has been struck off, sold, or awarded, and in case that said bond shall not be so filed, the award of such franchise shall be 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 a again offered for sale in,.'the same manner, Sld under the same res- trictions as hereinabove provided. ~ , , ..... The Com:-jon Council reserves the right to accept or reject any or all bids. This notice is given and advertised pursuant to resolution adopted by the Mayor and Common Council of the City of Gilroy the 18th day of January,1945. (3. ~ . ~~ Oi ty Clerk, City' 0 Gilroy. A Resolution of Ineention in the Matter Qf the Application of .. the Coast Counties Gas and Electric Company, a corpoll"ation, for an ... electric franchise is now read by the Deputy City Clerk. In the Mat"ter af the Appli cat ion or) ) COAST COUNTIES GAS A~~ ELECTRIC ) COMPANY, a corporation, ) RESOLUTION OF INTENTION ) for an electric franchise ) ) COAST COUNTIES GAS AND ELECTRIC COMPANY, a corporation, having heretofore, by a petition in writing filed with the Mayor and Common Counc il of the City of Gilroy, County of Santa Clara, State 0 f Calit- flrnia, on the 24th day 0 f June, 1942, made it appli cation to said Mayor and Common Council for an electric franchise, and said applic- ation coming on regularly to be heard and considered this 18th day of Ja nuary, 1943, at a regular ad journed meeting 0 f said Mayor and Common council, and good caus~ appearing therefor, upon motion of Councilman Martin seconded by Councilman Heiner: Its is RESOLVED,ORDERED,DECLARED AND STATED that it is proposed to grant said franchise and that the charact er of said franchise proposed 1t~ to be granted and the terms for which it is granted and the conditions and restrictions of said franchise are as follows namely: .. A franchise for a period of thirty-five (35) years from the date of the grant to use the public streets ,highways and a11e,-,s of the City of Gilroy, County of Santa Clara, State of california, for the purpose of constructing, maintaining and using an electrio transmission sysjem for the sale and distribution of electricity to said municipality and its inhabitants for light, heat, power and all lawful purposes, and any of them. Said franchise shall be effective within the corporate limts of the City of Gilroy as now existing and as the same may be extended during the lifer of the franchise. Said franchise is to be granted and shall be held and enjoyed only upon the terms and conditions therein contained and the grantee thereof must, within thirty (30) days after the passage of the r -- "'~'-liI - - - 695 ordinance making the grant, file with the clerk of the Common Council of the City of Gilroy a written acceptance of the terms and conditions therein expressed. The term ~grantee" whenever used in said grant of franchise shall be held to include the grantee, its successors and assigns. The grantee shall, in good faith, commence the work of construction of said electric transmission system within not more than four (4) months from the granting of the franchise, and if said work has not already been commenced said work once begun shall be prosecuted there- after diligently and in good fa ith so as to meet and fill the reason- able needs of said municipality and inhabitants thereof. The grantee shall, during the life of said franchise, pay to said City of Gilroy two per cent (2%) of the gross annual receipts of said grantee arising from the sale of electricity within the limits of the City of Gilroy, provided, however, that the amount so paid shall in no event be less than two per cent (2%) of the gross annual receipts arising from the grantee's use, operation or possession of said fran- chise. Said percentage shall be payable thirty (30) days after June 30,l943 and within thirty (30) days after the expiration of each and every year thereafter, and in the event said payment is not made said franchise is to be forfeited. No percentage shall be paid for the first five (5) years immediately succeeding the date of the franchise unless the franchise is a renewal of one already granted to said grantee in which case the payment of said two per cent (2%) shall begin at once; provided, however, that if and when any existing electric o~rator or sucoessor in said city shall operate under said franchise, then the said payment of two per cent (2%) shall begin at orne. The right, privilege and franchise to be granted' shall not be ex- clusive, and there shall be reserved to said 6ity of Gilroy the right and privilege to grant like franchises for like purposes to other persons or corporations who shall make proper application therefor. Whenever grantee, its successors or assigns, shall disturb any of the streets for any of the purposes aforesaid, it or they shall restore the same to good order and condition as soon as praBticable without unnecessary delay, and failing to do so, the Common Council of said City of Gilroy shall have the right to fix a reasonable time within which such repairs and restorations of streets shall be com- pleted, and upon failure of such repairs being made by said grantee, its successors and assigns, the said Common Council shall cause such repairs to be made at the expense of said grantee its successors and assigns. In consideration of the right and privilege granted, the City of Gilroy shall have, and the grantee shall grant and yield to it during the life of said franchise the right and privilege to place, where aerial construction exists, a fixture on tops of poles erected and maintained under said franchise, to which may be attached wires not exoeeding four, free of Charge to said City of Gilroy, to be used for low ~ension pOlice, fire signal, and communication purposes; provided, however, that the proposed use by said City will not in the opinion of grantee endanger or impair the service and property of grantee, and further provided that said City of Gilroy shall in its use and main- tenance of such fixtures or wires comply with the reasonable plans and rules of said grantee and provided further, that the said City of Gilroy will care for its own wires and fixtures at its own risk and expense and will save the grantee harmless from any accidents caused by same. In the event the grantee installs any under-ground duct systems for electric distribution purposes under this franchise, the grantee shall install a separate duct or section at no cost to the City of Gilroy for its use to carry four signal wires. In case of street improvement involving change or set back of curb line, grantee agrees to move or replace its poles within the newly established curb line without cost to the City of Gilroy. The oIUinance granting said franchise shall go into effect thirty (30) days after its final passage unless its operation is suspended by a referendum petition filed according to law. It is further RESOLVED, ORDERED, DECLARED and STATED, that Monday the 1st day of March, 1943 up to 8:00 o'clock P.M. of said day, be and the same is hereby fixed as the hour and day up to which tenders will be received for said franchise at the office of the City Clerk of said City of' Gilroy in the City Hall and that the City Clerk of said City be and be is hereby directed to advertise the fact that 8ai<< applic- ation for franchise has been made to said l~yor and Common Council, together with a statement that it is proposed to grant said franchise upon the aforesaid terms and subject to the aforesaid conditions and restrictions by pUblishing in the Gilroy Evening Dispatch, a newspaper of general circulation published in the City of Gilroy; that said advertisement be published for ten (lO) successive days or as often 696 as said paper is published during said J;I1' riod; that t he full public- ation thereof be complete in not less than twenty (20) nor more than thirty (30) days before the said 1st day of March,1943, the day fixed up Xm to which tenders will be received; that such advertisement state the character of the franchise herein proposed to be granted, and that said advertisement and notice to be given by said clerk pursuant to thos order and resolution shall be in sUbstantially the the form of the Exhibit "B" attached hereto and made a part hereof. Adopted by the Mayor and Common Counc il of the City of Gilroy, County of Santa Clara,State of California, on the 18th day of January, 1943, by the following vote; AYES: NOES: ABSENT: Councilmen George A.Martin,Nat Heiner,J.H. Wentworth. Councilmen George M.Mason,David V.Stout. Councilmen James Batte ~ .... ATTEST: ~C~ epu y City Clerk of the City 0 f Gilroy. EXHIBIT "B" In the Matter of the Application of) ) COAST COUNTIES GAS AND ELECTRIC ) COMPANY, a corporat ion, ) NOTICE OF SALE OF FRANCHISE ) for an electric tranchise ) ) ..... ..... Notice is hereby given that COAST COUNTIES GAS AND ELECTRIC COMPANY, a corporation, has filed with the Mayor and Common Council of the City of Gilroy its certain application for a franchise for itself, its successors and assigns, to use the public streets, highways and alleys of said municipality for the purpose of constructing, main- taining and using an electric transmission system, for the purpose of selling and distributing electricity for light, heat, power and all lawful purposes, and any of them to said City of Gilroy and its in- habi tants, all as appears in said appli cation and the records 0 f said Mayor and Common Council, reference to which is hereby made for great- er particularity. Notice is further given that on the lst day of Marwh, 1943, at the hour of 8 0' clock P.M. 0 f said day or as soon thereaft er as the matter can be heard in the council chamber of said Mayor and said Common Council situated in the City Hall in said City of Gilroy, the said Mayor and said Common Council will sell said right, privilege and franchise as prev~ously set forth in said application to the highest cash bidder. Said franchise proposed to be sold will be generally as set forth in said application except that the same shall include the following provisions: Said franchise will be for a term of thirty-five (35) years from and after the date of its award. .. Whenever grantee, its successors or assigns, shall disturb any of the stBeets for any 0 f the purpo ses aforesaid, it or they shall ..... restore the same to good order and condition as soon as practicable without unnecessary delay, and failing to do so, the Common Council of said City of Gilroy shall have the right to fix a reasonable time within which such repairs and restcration of streets shall be com- pleted , and upon failure of such repairs be ing made by said grantee, its successors and assigns, the said Common Council shall cause such replirs to be made at the expense of said grantee, its successors and assigns. Said franchise shall be effective within the co rpcrate limi ts of the City of Gilroy as now existing and as the same may be extended during the life of the franchise. The grantee fram tine to time shall supply the City of Gilroy with a map showing the principal transmission and distribution lines used ,....... . I....... - - ..;~'... - 6!l7 under said franchise. In consideration of the right and privilege granted, the City or Gilroy shall have, and the said grantee shall grant and yield to it during the life of said franchise the right and privilege to place, where aerial construction exists, a fixture on the tops of poles erected and maintained under said franchise, to which may be attacred wires not exceeding four, free of charge to said City of Gilroy, to be used for low tension police, fire signal, and communication pur- poses; provided, however, that the proposed use by said City will not in the opinion of srantee endanger or impair the service and property of grantee, and further provided that said City of Gilroy shall in its use and maintenance of such fixtures or wires comply with the reason- ab Ie plans and rules 0 f sa id grantee and provided further, that the said ~ City of Gilroy will care for its own wires and fixtures at its own risk and expense and will save the grantee harmless from any accidents caused by same. In the event the grantee installs any underground duct systems for electric <<istribution purposes under said tranchise,the grantee shall install a separate duct or section at no cost to the City of Gilroy for its use to carry four signal wires. In case of street improvement involving change or set back of curb line, grantee shall move' or replace its poles within the newly established curb line without cost to the City of Gilroy. Notice is hereby given that sealed cash bids will be received up to and at said hour of hearing in said council chamber of said Mayor and Common Council situated in the City Hall in the City of Gilroy. And notice is further given that the successful bidder, his successors and assigns, must during the life of said franchise pay to the said City of Gilroy two per cent (2%) of the gross annual receipts of said grantee arising from the sale of electricity within the limits of the City of Gilroy, provided, however, that the amount so paid shall in no event be less than two per cent (2%) of the gross annual receipts arising from the grantee's use, operation or possession of said franchise. No per- centage shall be paid for the fi rat five years succeeding the date of said franchise, but thereafter such percentage shall be payable annually; and in the event said payment is not made said franchise shall be for- feited; provided, however, that if the franchise be a renewal of a right alread y in existence the payment of said percentage of gross recei pts to the City of Gilroy shall begin at once; provided, further, that if and when any existing electric operator or successor in said city shall operate under the franchise, then the said payment of two per cent (2%) shall begin at once. The issuance of said tranchise shall be conditioned that the bidder shall file a bond running to said municipality, with at least two good and sufficient sureties to be approved by said Mayor and Common Council in the penal sum of $l,OOO. conditioned that such bidder shall well and truly observe, fultull and perform each and every term and condition of such franchise, and that in case of any breach of such 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. Said bond shall be filed with the Mayor and Common Council within five days after such franchise is awarded, and upon the filing and approval of such bond, the said franchise ,shall, by said Mayor and Common Council, be granted by ordinance to the person, firm or corporation to whom it has been struck off, sold, or awarded, and in case that said bond shall not be so filed, the award of such franchise shall be set aside, and any money paid therefor shall be forfeited, and said franchise shall, in the discretion of said 1~yor and Common Council, be readvertised, and again offered for sale in the same manner, and under the same restrictions as hereinbefore provided. xThe Common Council reserves the right to accept or reject any or all bids. This notice is given and advertised pursuant to resolution adopted by the Mayor and Common Council of the City of Gilroy on the 18th day of January,1943 · (J ~,Q.~ Ci ty Cle rk of the City of Gilroy Motion by Councilman Wentworth, seconded by Councilman 1~son and carried that a lease be made with Henry Allemand for a period of five years on 89. '12 acres of the Gilroy Sewer Farm on th e basis of 25% of all crops raieeduaIid1:Jharrvested on said land, and the City Clerk is 698 instructed to have such a lease drawn up and signed. Adjourned subject to the call 0 f the chair. De!:f:k~. ;.