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HomeMy WebLinkAboutPG&E - 1956 Agreement for Franchise Agreement .-_. --~. -.-., ~.^.,,~,. .~--- - ,.-. '-"'-'", "",...",-.-,.- -_,...'_..0..'.,-...._.,_..-.,.'.... ,.~.'''\,..._~ ~. STATE OF CALIFORNIA CI TY AND COUNTY OF SAN FRANCISCO l 68 K. C. CHRISTENSEN, being duly sworn, deposes and says: That he is Treasurer of Pacific Gas and Electric Company, a California corpora- tion, hereinafter called Pacific; that the Mayor and the Common Council of the City of Gilroy, hereinafter called City, granted a franchise to use the public streets of City for constructing, maintaining and using a gas transmission system therein for the distribution of gas to City and its inhabitants; that the franchise was granted for a term of twenty-five years to Coast Counties Gas and Electric Company, predecessor in interest of Pacific, by Ordinance No. 453, passed June 16, 1947; that Pacific is now the owner of said franchise; that said ordinance requires the grantee of said franchise to pay City "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 operations of the grantee under this franchise"; that said franchise was granted under and pursuant to such authority as was vested in the Common Council by the city charter as passed by the State Legislatur~ and approved by the Governor on March 12, 1870, and as amended in 1872 (Stat. 1869-70, p. 263 and 1871-2, p. 356 and 724); that no provision E contained in said charter providing the procedure by which franchises may be granted and that in consequence thereof, the General Laws relating thereto are applicable to the grant of said franchise (18 Cal. Jur. p. 782, Sec. 94); that said franchise was granted in fact pursuant to the provisions of the Franchise Sales Act of 1905, commonly known as the Broughton Act (stat. 1905 p. 777), except in respect to Section 3 thereof which requires that the publication of notice of in- tention to grant such franchise must state "that the successful bidder and his assigns must, during the life of said franchise, pay to the county or municipality two per cent (2%) of the gross annual receipts of the person, partnership or corporation to whom the franchise is awarded, arising from its use, operation or possession"; that the franchise thereto- fore operated under by the Coast Counties Gas and Electric Company in the 1. City of Gilroy, which was granted by the Mayor and Common Council, by Ordinance No. 320 passed March 12, 1923 for a term of twenty-five years from and after the effective date thereof; to-wit; April 11, 1923 was due to expire on April 11, 1948, and provided for a franchise payment in accordance with said Broughton Act, to-wit; "two (2) per cent. of its or their gross annual receipts arising from the use, oper~tion or possession" of said franchise; that in consequence of the foregoing circumstances a serious question has arisen in the minds of the advisers of Pacific as to the legality of the provision in said Ordinance 453 requiring a franchise payment in excess of that provided for by said Broughton Act: that more- over, the payment as provided in said Ordinance 453 provides a rate of payment far in excess of that paid to any other city within the service area of Pacific, and is, therefore, discriminatory and is not adjusted to the rate base under which other cities within Pacific's area are paid, who receive franchise payments on a less favorable basis; that neverthe- less, it is deemed equitable in view of payments heretofore paid by said Coast Counties Gas and Electric Company to City that the annual payments should not be reduced below the highest annual payment heretofore made by that Company, to-wit, the sum of $3,163.24; that the payment of this sum can be legally justified before the Public Utilities Commission of the State of California as a legal operating expense on the ground that the legality of the proper payment to be made is the source of a bona fide difference of opinion between City and Pacific; that payment of the sum of $3,163.24, or the sum due in accordance with the Broughton Act, which- ever is greater, constitutes a reasonable settlement of said controversy and the acceptance thereof constitutes an accord and satisfaction in respect to the annual payment for the year 1955; that the gnoss annual receipts arising from the use, operation and possession of said franchise by Pacific in said City during the year 1955, as provided in said Broughton Act, and as said Act has been construed by the Supreme Court of California in the cases of County of Tulare v. City of Dinuba (188 Cal. 664) and County of Los Angeles v. Southern Counties Gas Company (42 Cal. 2d 129) will not be available until March 15, 1956; that on March 15, 1956, Pacific 2. will calculate the sum payable to said city under said Broughton Act and will at that time submit a supplemental affidavit, that if the sum due the city calculated in accordance with the said Broughton Aot exceeds the sum of $3,163.24 Pacific will remit a supplemental payment. Check in the sum of $3,163.24 is therefor herewith delivered to City. / r Iff<. (;" I II -, . ' !AV.~ l' ~A - "' , Subscribed and sworn to before me this ~~ day Of"~'" 0 . L. 1956 . lS: ", . ~ ~~~~".. . o. ary u ic n an or t e .:;..:__..::_ City and County of San Francisco State of California ~t " vj ,1959 . 30 ( ( (/ ( ( , /2' ," \ \ # ORDINANCE NO. 550 ORDINANCE GRANTING TO PACIFIC GAS AND ELECTRIC COMPANY, ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE TO INSTALL, r4AINTAIN AND USE PIPES AND APPURTENANCES FOR TRANSMITTING AND DISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER, ALONG, ACROSS OR UPON THE PUBLIC STREETS AND PLACES AS THE SAME NOW OR MAY HEREAFTER EXIST WITHIN THE CITY OF GILROY. Tbe Common Council of the City of Gilroy does ordain as f'~!lo~';s: Section 1. Whenever in this ordinance the words or phrases hereinafter in this section defined are used" they shall have the ~spective rneanings assigned to theYil in the f'ollm'Jing definitions: (a) T'ne word"grantee" shall mean Pacific Gas and Electric Company, and its lawful successors or assigns; (b) The word ncity" shall mean the City of Gilroy, 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 "streets" shall mean the public streets, "'Jays, alleys ~ and places as the same now or may hereafter exist within city, including state highways, now or hereafter established within city, and freeways hereafter established within city; (d) The word "gasfl shall mean natural or artificial gas, or a mixture of natural and artificial gas; (e) The phrase "pipes and' appurtenances Ir shall mean pipes, pipelines, mains, services, traps, vents, vaults, manholes, meters, gauges, regulators, valves, conduits, appliances, attachments, appurtenances and) \'lithout limitation to the foregoing, any other property located or to be located in, upon, along, across, under or over t:;.e streets of the city, and used or useful in tra.nsmltting and/or distributing gas; (r) Tfle phrase "install, maintain and useJl sh'::lll mean to lay, construct, erect, install) operate, maintain, use, repair or replace. -1- , I ~, ( ( ( ~ Section 2. The franchise to install, maintain and use in the streets of city all pipes and appurtenances for transmitting and distributing gas to the public for any and all purposes within city is hereby granted to Pacific Gas and Electric Company, its successors and assigns. Section 3. Grantee of this franchise shall relocate, without expense to city, any pipes anq appurtenances theretofore installed, and then maintained or used under this franchise, if and when made necessary by any lawful change of g.rade, alignment or width of any streets by city, including the construction of any subway or viaduct, provided, however, that this provision shall remain in effect only so long as such street, subway or viaduct shall ~ma!ri under the jurisdiction of city as a city street, but shall eease to be applicable to any such street if and when the same shall become a freeway, nor shall it constitute a contractual obligation in respect to such freeway within the purview of Section 703 of the . . streets and Highways Code of the state of California, or any oorresponding provisions of law. Section 4. Said franchise shall be indeterminate, that is to say, said franchise shall endure in full force and effect until the same shall~ with the consent of the Public utilities Commission of the State of California, be voluntarily surrendered or abandoned by grantee, or until the state or some municipal or public corporation thereunto duly authorized by la~'l shall purchase by voluntary agreement ~ or shall condemn and take under the power or eminent domain, all property actually used and useful in the exercise of said franchise and sttuate in the territorial limits of the state, municipal or public corporation purchasing or condemning said property, Or until said franchise shall be forfeited for noncompliance with its terms by grantee. Section 5. For the period commencing on the effecthre date of this franchise and terminating on June 17, 1972, grantee shall pay -2- " ( , ( ( ( to city two per cent of the gross annual receipts of said grantee derived from the sale of gas within the limits of city. Thereafter, grantee of said franchise shall during the term thereof pay to city two percent of the gross annual receipts of grantee arising from the use, operation or possession of said franchise j provided, hm'fever, that such payment shall in no event be less than one per eent of the gross annual receipt~ of grantee derived from the sale of gaB within the limits ofcity~ !ection 6'. Grantee shall file with the Clerk of city J within three months after the e:/~pir,:!.t.Lon of the c:l1endaI' ; or fractional calendar year, following the date of the granting hereof, and within three months after the expiration of each and every calendar year thereafter, a duly verified statement showing in detail the total gross receipts of grantee during the preceding calendar year, or such fractional calendar year, from the sale of gas within city. Grantee shall pay to city within fifteen days after the time for filing such statement, in lawful money of the United states, "the aforesaid percentage of its gross receipts for such calendar year, of such fractional calendar year, covered by such statement. Any neglect, omission or refusal by grantee to file such verified statement, or to pay said percentage at the time and in the manner specified, shall be grounds for the declaration of a forfeiture of this franchise and of all rights of grantee hereunder. Section 7. Said franchise is granted under the Franchise Act of 1937. . Section 8. This ordinance shall become effective thirty days after its final passage unless suspended by a referendum petition filed as provided by law. Section 9. Grantee of said franchise shall pay to city a sum of rr.oYley sufficient to x"eimburse it for all publication expenses incurred by it in connection with the granting thereof; such pay~ent to be made within thirty days after city shall have furnished grantee -3- ... ( ( ( with a written statement of such expenses. Section 10. The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk. Section 11. The City Clerk shall cause this ordinance to be published once within fifteen (15) days after its passage in Gilroy Eyening Dispatch, a nei-<Tspaper of general circulation published and circulated in city. First read at a regular meeting of the Common Council of city held on the 13th day of I"~e.y J 19:,7., and fJ,nally adopted ,ordered published at a regular meeting of said Council held on the 13th day of May, 1957, by the following vote: AYES: Councilmen: Pate, Sanchez, Gallo, Petersen, Rush, Went~'lorth NOES: ABSENT: Councilmen: None Councilmen: None sl GEORGE C. MILl AS ~~yor of the City of Gilroy ATTEST: F. A. COX Clerk of the City of Gilroy (Seal) -4- ( ( " ';1 ORDINANCE NO. 551 ORDINANCE GRANTING TO PACIFIC GAS AND ELECTRIC COMPANY, ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE TO CONSTRUCT, MAINTAIN AND USE POLES, WIRES, CONDUITS AND APPURTENANCES, INCLUDING CQf'1fIIUNICATION CIRCUITS, NECESSARY OR PROPER FOR TRANSMITTING AND DISTRIBUTING ELECTRICITY TO THE PUBLIC FOR ANY AND ALL PURPOSES IN, ALONG, ACROSS, UPON, UNDER AND OVER THE PUBLIC STREETS AND PLACES WITHIN THE CITY OF GILROY. The Common Council of the City of Gilroy does ordain as follm'/s: Section 1. Whenever ~n this ordinance the words or phrases hereinafter in this section defined are used, they shall have the respective meanings assigned to them in the fpllowing definitions: (a) The word "grantee".shall mean Pacific Gas and Electric Company, and its lawful successors or assigns; (b) The word "city" shall mean the City of Gilroy, a municipal corpora- tion of the State of California, in its present incor~orated torm or in any later reorganized, consolidated, enlarged or reincorpor- ated form; (c) The word "streets" shall mean the public streets, ways, alleys and places as the same now or may hereafter exist within city, includ- ing state highways, now or hereafter established within city, and freeways hereafter established within city; (d) The. phrase "poles" wires, conduits and appurtenances" shall mean poles, towers, supports, 'Vlires, conductors, cables, guys, stubs" platforms, crossarmsJ braces, transformers, ins~lators, conduits, ducts, vaults, manholes, meters, cut-outs, switches, communication circuits, appliances, attachments, appurtenances, and, without limitation to the foregoing, any other property locate~ or to be located in" upon, along, across, under or over the streets of the city, and used or useful in transmitting and/or distributing electricity; (e) The phrase "eonstruct, maintain and use" shall mean to construct, erect) install, lay, operate, maintain, use, repair or replace, Section 2. The franchise to construct) maintain and use poles, wires, conduits and appurtenances necessary or proper for transmitting and distributing electricity to the public for any and all purposes, in, -1- ( ( along, across, upon, under and over the streets within city 1s hereby granted to Pacific Gas and Electric Company, its successors and assigns. Section 3. Grantee of this franchise shall relocate, without expense to city, any poles, wires, conduits and appurtenances there- tofore installed, and then maintained or used under this franchise, if and when made necessary by any lawful change of grade, alignment or width of any streets by city, including the construction of any subway or viaduct) provided, however, that this provision shall remain in effect only so long as such street, sub.way or viaduct shall remain under . the jurisdiction of city as a city street, but shall cease to be applic- able to any such street if and when the same shall become a freeway, nor shall it constitute a contractual obligation in respect to such freeway within the purview of Section 703 of the Streets and Highways Code of the State of California, or any corresponding provisions of law. section 4. Said franchise shall be indeterminate, that is to say, said franchise shall endure in full force and effect until the same shall, with the consent of the Public Utilities Commission of the State of California, be voluntarily surrendered or abandoned by grantee, or until the state or some municipal or public corporation thereunto ~uly authorized by law shall purchase by voluntary agreement or shall condemn and take under the power of eminent domain, all property actu- ally used and useful in the exercise of said franchise and situate in the territorial limits of the state, municipal or public corporation }'Ul"chasing or condemning such property, or until said franchise shall be forfeited for noncompliance with its terms by grantee. Section 5. For the period commencing on the effective date of this franchise and terminating on June 17, 1972, grantee shall pay to city two per cent of the gross annual receipts of said grantee der- ived from the sale of electricity within the limits of city. There- after, grantee of said franchise shall during the term thereof pay to city two per cent of the gross annual receipts of grantee arising from the use, operation or posseSSion of said franchise; provided, hOil2ver, that such payment shall in no event be less than one per cent of the gross annual receipts of grantee derived from the sale of electricity within the limits of city. -2- ( ( Section 6. Grantee shall file with the Clerk of city, within three months arter the expiration of the calendar year, or fractional calendar year, following the date of the granting hereof, and within three months after the expiration of each and every calendar year thereafter, a duly verified statement showing in detail the total gross receipts of grantee during the preceding calendar year, or such frac- tional calendar year, from the sale of electricity within city. Grantee s'hall pay to city within fifteen days after the time for filing such statement, i11 lawful mone;v of the United ,sta.tes) the aforesaid per- ce~tage of its gross receipts for such calendar year, or such fractional calendar year, covered by such statement. Any neglect, omission or reYusal by grantee to file such verified statement~ Qr to pay card Section 7. Said franchise is granted under the Franchise Act of 1937. Section 8.' This ordinance shall become effective thirty days after its final passage unless suspended by a referendum petition filed as provided by law. Section 9. Grantee of said franchise shall pay to city a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting thereof; such payment to be made within thirty days after city shall have furnished grantee with a written statement of such expenses. Section 10. The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk. Section 11. The City Clerk shall cause this ordinance to be puolish~::d once wi thin fifteen (15) days after its passage in Gilroy Evenins,___ ~ma tch, a ne'ifspape::::' of general c ircl1a tion publ ished and c i1'- culac?d in city. First read at a regular meeting of the Common Council of city held on the 13th day of May, 1957, and finally adopted and ordered - ~- _J .. ( published at a regular meeting of said Council held on the 13th day of May, 1957, by the following vote: AYES: Councilmen ~ Pate, Sanchez, Gallo, Petersen; Rush, Wentworth NOES: Councilmen - None ABSENT: Councilmen - None S/S GEORGE C. MILIAS Mayor of the City of Gilroy ATTEST: P. A. COX Clerk of the City of Gi.lroy -4- .., - :: ~: :: ,. :: :: g :: " :: " " ., :: 1 :: H 2 I: 3 " " n 4 jl .. .. 5 .. .. .. .. ~: ,. 6 .. ~~ " :: 7 " ,. .. .. .. 8 .. .. ., .. .. " 9 H .. " ., " .. :: 10 :: :: :: 11 IT ... " .. .. 12 " ,. ., .. i. 13 ,. :: .. .. :' 14 :: .. l:l' .. :f 15 .. " :~ ~: 16 ~ .. I? g .. .' " .. .. .. 18 .. H ,- of 19 g .. ! 20 .. " .. l.l " 21 " " :4 .. .. .' 22 r. H .. .. 23 :: :: " .. t: 24 :: .. .' .. :: 25 !' 26 H 27 g .. .. 28 .. .. .. .' .. " 29 " " : ~ 30 ! ~ " .. .. .. .. .. II " " .. " .' ., f: " ,. :: .. / ( ( "4- .....----.....- BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ~ .-.j T-;; D~.: '.. Ii .1 1..J .G In the matter of the application of PACIFIC GAS AND ELECTRIC COMPA}TY for an order issuing to applicant a certificate of public convenience and necessity to exercise the right, 'privilege and franchise granted to applicant by Ord5.nance NOM 550 of the Common Council of the Ci~~of Gilroy, County of sant.~~a.., state of' California. /~ ~ (~ . (Gas) J " / '----._-~-_../ 1 ~} 2 2 t~35? Application No. ~ A P P L I CAT ION TO THE HONORABLE, THE PUBLIC UTILITIES COf'.'1MISSION OF THE STATE OF CALIFORNIA: Herein, PACIFIC GAS AND ELECTRIC COMPANY, a California corporation, (sometimes called applicant) seeks an order of the Commission under Section 1002 of the Public utilities Code of the state of California (California statutes 1951, Ch. 764) issuing to applicant a certificate declaring that public convenience and necessity require the exercise by applicant of the right, privilege and franchise granted to it by Ordinance No. 550 of the Common Council of the City of Gilroy, County of Santa Clara, state of California. In support of its lllithin petition, applicant avers as fo11ol^1s: I. APPLICANT Applicant nOv.l is, and ever since the lOth day of October, 1905 has been, an operating public utility -1- ( . ( ( ( ..:: ,t H .. oO :: oO .. oO :: .. ,. " " ~ ,f .. t' " 1 ti corporation, duly organized and existing under and by :: 1i virtue of the laws of the state of California, engaged" " :: 3 11 principally, in the business of furnishing electric and gas .. 4: f: service in California. It also distributes and sells :: .. 5 !i water in a number of cities and towns and certain rural " .. :'l 6 f: areas, and produces and sells steam heat in certain parts H~ , g of the cities of San Francisco and Oakla.nd. ~ 2 8 :: ,. ft 9 f: City and County of San Francisco, State of California. Its II " t~ 10 [1 Post Office address is 211-5 Ivlarket Street, San Fl1[tnclr3co 6; ; llg Calif.ornia, and its attorneys in this matter are F.T.Searls, .. ,. il Malcolm A. MacKillop and David R. Fuller. a ;: :: 11 14 H with this application should be addressed to F. T. Searls, :~ .. 11 General Attorney of applicant, at the above mentioned :: II address. :: ,- " " t: " 18 'f ;: Incorporation, as amended to the date of this petition, is .. " " 1\ of record before the Commission in connection with appli- .. 11 cant's Application No. 39179 (Exhibit "A") filed on June 25, .. 21 !! 1957, and said Articles are incorporated herein by reference. .' g 22 :: :: ?3 g .- :~ ~ ~ 24 ~l " 25 11 Council of the City of Gilroy, County of Santa Clara, State " ~ of California, adopted an ordinance designated as Ordinance " :: \1 No. 550, a true and correct copy whereof is annexed hereto, 28 ii marked Exhibit A, and made a part hereof. . 1i :: .> ., 30 ;~ EmcceSsors and ass igns, the franchise to install, mainta.in " " II " " :: " " H g ., Applicant's principal place of business lsin the 12 13 . Communications regarding applicant in connection 15 16 17 A certified copy of applicant's Articles of 19 20 II. ORDINANCE NO. 550 On or about the 13th day of May, 1957, the Common 26 2'7 29 Ordinance No. 550 grants to applicant, its -2- 1 2 3 4. 5 6 7 8 9 10 11 12 13 14 15 16 17 -. - 18 19 20 21 22 23 24 25 26 27 28 -29 30 ( ( ( ( -., .. " " ., :: .. ., :: .. o' r. n " .. .' " " " .0 " " " I and use in the streets of the City of Gilroy all pipes and r: appurtenances for transmitting and distributing gas to the " :: 11 public for any and all purposes within said city, all .. " ii subject to the provisions of said ordinance. .. il g fl terms indeterminate, that is to say, it will endure in full ,. .0 .. ,0 ~ force and effect until the same shall> with the consent of ~'the Public utilities Commission of the state of California, .0 :: g be voluntarily surrendered or abandoned by grantee, or until ,0 .. ~ the state or some municipal or public corporation thereunto .. ., .. :: * duly authorized by law shall purchase by voluntary agreement .. ~ .. " U or shall condemn and take under the power of eminent domain, i .. g all property actually used and useful in the exercise of :f" .. i said franchise and situate in the territorial limits of the '" ~ U state, municipal or public corporation purchasing or ., " " il condemning such property, or until said franchise shall be ~ :: forfeited for noncompliance with its terms by the grantee. ., ::: .. :: U .. :i g for the period commencing on the effective date of this :: .. i franchise and terminating on June 17, 1972, grantee shall .. n o' U pay to the City of Gilroy two per cent of the gross annual H .. :~ ~ receipts of the grantee derived from the sale of gas within :: the limits of said city. Thereafter, grantee of said :: o' 1; franchise shall during the term thereof pay to the City of !! Gilroy two per cent of the gross annual receipts of grantee .. ~ arising from the use, operation or possession of said H l:':.j:,': franchise, but in no event less than one per cent of the gross annual receipts of grantee derived from the sale of gas :: :: within the limits of said city, :~ .' .. ;: g .. .. .. .. ~ .. .. " ~: .. " 0' :: :: :: The franchise, granted as aforesaid, is by its Section 5 of said Ordinance No. 550 provides that Ordinance No. 550 provides the same shall become -3- " O' oO oO :: oO ,. O' ~ :: :: " oO " .. .. ,0 0' ,0 0' .' 1 oO :: :: H 2 g ,0 .. ~ 3 to ,- g .. 4 .. .. " * :: 5 ~ n :: .. .. 6 w... .~ OJ ::- " iJ... 7 :~ :: g 8 :~ .. .. .. :: 9 ~ " " 10 .. " t: ~ 11 n .. .. ~: 12 :: " .. O' oO oO :! 13 " :: .. 14 il " ,0 " ., .. 15 ,. " .. 00 ~: 16 Ii 17 :: .. .. :: " 18 :: :: .. " 19 11 20 g t' oO " " ,- 21 H 0' ,. " .. 22 g 11 23 ~~ :: .. 24 g " II 25 .. " 26 j, 27 g 23 .. " " 2D " " " " .. 30 .. " .. " :: " .. .. .. ,. .. ~: :: :: ~1 " :: ( ( ( effective thirty days after its final passage unless suspended by a referendum petition filed as provided by law. Said Ordinance No. 550 was finally adopted and ordered published at a regular meeting of said Common Council held on the 13th day of IVIay ~ 1957; that the City Clerk of the City of Gilroy caused said ordinance to be published in the manner and w~thin the time specified in said ordinance; and that said ordinance has not been suspended by a referendum petition filed as provided by law.. or otheI".1ise, or at allj and that said ordinance became effective on the 12th day of June, 1957. The cost to applicant of acquiring the franchise granted by Ordinance Noo 550 was the sum of Four thousand thirty-five and 01/100 Dollars ($4,035.01), exclusive of the fee which must be paid to the Public utilities Commission of the State of California under and pursuant to the ~rovisions of Section 1904{a) of the Public utilities Code, namely, Fifty and 00/100 Dollars ($50.00), and applicant hereby stipulates and agrees that it, its successors or assigns, will never claim before the Commission or before any court or public body, a value for said franchise in excess of the actual cost thereof. III. PUBLIC CONVENIENCE AND NECESSITY The facts showing that public convenience and necessity require and will require, that your applicant exercise the right, privilege and franchi.se granted to It by said Ordinance No. 550 of the Common Council of the City of Gilroy are as follows: Tne City of Gilroy is located in the County of -4- I' " " :: :: ,., ,t " ,. " .. .. .. .. .. .. .. .. " I' " I- I' ,I I' .. 1 g Santa Clara, state of California. It was incorporated on .. !i 2 g March 12, 1870, and, according to the 1957 California :: .. " 3 g Roster has a population of approximately 6,020. .. :: .. 4 r. " 5 I! interest for more than 35 years last past have been, :: .. 6 g furnishing and supplying gas to persons, firms and ,- " .. :: 7 :: corporations situate in the City of Gilroy for light, heat, 8 11 and all other la\1ful purpoDes and uses. For th.e purposes .. :: .. 9 f: af'oresaid, _ applicant now is and for many years last past has .. :: 10 II been the owner and in possess ion of, and operates and U 11 ': maintains gas transmission, distribution and othex' properties i .. " 12 ~ situate in the City of Gilroy, which said properties are of It 13 i part and parce 1 of applicant's general transmiss ion and :: 14 i distribution systems used and useful in the furnishing of .. " 15 ~ ga~l service to its customers in California. .. :: " n .. " .. " :: l! constructed and subsequently extended the gas system in the .. .. " .. 18 II City of Gilroy and ep~aged in the business of furnishing = r: 19 U and supplying gas service therein under (a) the grant of ,. .. .. 20 U power and rights conferred by their charters obtained under i- 21 ~ the laws of the state of California from time to time in ..- .. 22 ~ force: and effect; (b) :: :: 23 g applicant's predecessor, Coast Counties Gas and Electric " .. .. 24 11 Company, by the Common Council of the City of Gilroy under .. H 25 ti :: :: :: " .. " 11 and expires June 17, 1972; and (c) the certificate of public 28 ji convenience and necessity granted to sai~ Coast Counties Gas " .. 29 l! .' ~: " ,. ,. 30 H " H .. .. .. .. .. :: .1 n :: " .. .. .. .. r: ( / "- Applicant now is, and it and its predecessors in 16 Your applicant and its predecessors originally 1? the effective franchise granted to 26 Ordinance No. 453~ which franchise was adopted June 16, 1947 and approved by the Mayor of said City on June 17, 1947, 27 and Electric Company by the Commission in Decision No. 40804, dated October 10, 1947, (Appl1cat:Lon No. 28630) to exerci:::,8 -5- .13 ( ( ( ( .. .' :: ~ .. .. .. .. :; .. .. :: :: " .. ., :: .. ., ., .. .' 1 il the rights and privileges granted by said Ordinance No. 453. fi 2 :: " .. " :: 11 convenience and necessity from the Commission to exercise " " .. ii the right J privilege and franchise granted by Ordinance No. g 5 * 550 of the Common Council of the City of Gilroy \'1il1 there- n 6 r: after in the conduct of its zas business :tn the City of if .. .. . 7 l' G.ilroy exerctse the rights.Q.nd pr~t.vileges undo!' the 8 j! franchise granted. by said Ordinance No. 550. .. .. ~: 9 :: ., .. ., ., .. 10 :,:. '. :: will be for its best int.erest and the interest of' :l.ts :l" r: 11 l! present and future gas customers in the City of Gilroy that .. ., " 12 II in the conduct of' its gas business it exercise the rights It .. " jl and privileges of' the lIindeterminate II franchise granted by :: " .. U said Ordinance No. 550 for the reason that its gas :: .. ~: H franchise' rights in said city will thereby be definitely ,. ., II established for as long a time as applicant or its n .. .. :: successors or assigns shall furnish gas service in said city; :: :~ :: H further, applicant in continuing qualif'ied its outstanding :: 1j bonds and effecting qualification of future issues of bonds .. .. H :: as legal'1nv.estments for savings banks and trust funds will .. .. ~: 21 i,i,: not be under the neceasity of applying for or obtaining 22 from the City of Gilroy any new or additional gas franchises ~ 23 :: or franchise rights. n .' 24 jj 25 11 of the public a large amount of First and Refunding n 11 Mortgage Bonds, all of which are now qualified as legal " .. .. ., II investments for savings banks in a number of the states of 1[ the United states. It is desirable that said bonds, n :: together i,1itb. future issues of applicant I s bonds, should :: 30 11 qualify as l06al investments for savings banks and trust " :: ., .. .. " " .. ., " :: " .' H .. .. Applicant, upon obtaining a certificate of public 3 4 Appl~cant believes and therefore alleges that it 14 15 16 17 18 19 20 Applicant has issued and outstanding in the hands 26 27 28 ~~9 -6- ,. " n :: :: .. " .. H :: .. " " -' " .. .' 1 .. :: ~: 2 ~~ .. H 3 n " " 4 " .. ~: 5 l 6 .. ., -' :: ;; ? :: ~ 8 :: " " .. 9 g '~ '.. .. 10 .. :: ii. 11 r, :: .. .. -- 12 .; ,. ., ! 13 ::. .. :.: .. : 14 .. " ,- .. :: :f 15 ,. ., :: ., .. ,< 15 n " :: to 17 :: .- r. :: 18 .. .' ., .. a 19 g .. .. .. 20 .. .. .- I 21 ., .. ., d :; 22 * * ~: 23 :": ., " .. .. .. 24 ~ .. .. :: .. 25 11 " 26 11 27 ~~ !I 28 .. " .. .. 29 " .. ; ~ " 30 .' :; .. " .. .. g H ~ ., .. .. ~ H ( ( ( ( funds in as many states of the United states as is possible to broaden the market for applicant's bonds and to enable applicant to obtain higher prices for its bonds. In other words, the matter of the legalization of applicant's bonds as savings bank and trust fund investments has a definite bearing upon the cost of money to your applicant ""hich in turn ultimately has an effect upon the rates charged for public utility services supplied. The exercise by your applicant of the right, privilege and franchise granted by Ordinance No. 550, together with other rights. privileges and franchises now possessed and exercised by your applicant, ~~d those obtained and hereafter to be obtained, is essential to enable applicant to qualify and/or continue so qualified 1ta said bonds. IV. PUBLIC UTILITY SERVICE No person, firm or public or private corporation, other than your applicant, is now engaged in the public utility business of furnishing, distributing or selling gas fer light, heat, or other lawful purposes in or to the City of Gilroy, or to the residents or inhabitants thereof or business enterprises situated therein, and said city and its residents, inhabitants and business enterprises are dependent upon your applicant and the properties owned, operated and maintained by it for gas service to meet their respective needs and requirements, present and prospective. Applicant intends to exercise the rights and privileges granted by said Ordinance No. 550 throughout said City of Gilroy in its pres.3nt incorporated form or in any later reorganized, consolidated, enlarged or r'2incorporated -7- i .1 I i I ( :- ( ( ( ,- .. :: .. ~ :: :: .. :: :: .. .. .. .. .. .. .. 1 if :f'orm. :: 2 ~ will file with the Collllllission a map in form as l:'equil:'ed !J~' :: 3 # Rule 19( c) 01' its 1luJ.es of Practice and Procedure. :: 4 g " .. 5 g l:hat the Public Utilities Commission of the State of it II g' California. duly give and make, its order and decision ~: 7 ~ granting and issuing to applicant a certificate declaring a ~. ~at the present and future public convenience and necessity .. .,. 9 Ii · requil:'eand "'ill reqUire, the eXe 1:'0 i8e by it of. the right, ~::: 10 _ priVilege and 'franchise granted by Ordinance No. 550 01' the .. 11 r: ... .. .. :f 12 :r .. .. .. o' " 13 ~ of the Public Utilities Code of the State of California. 14 l Dated at San Francisco, California, this 22nd :: :: 15 H day 01' August, 1957. 16 ii ;: 17 :: " .. li 18 g 19 Ii 20 .. I: ., r: 21 Ii 22 II :: 23 !i :: 24 Ji 25 ii .. ... .. ., .. 26 ii .. At or prior to the hearing of this petition app1icurt WHEREFORE~ PACIFIC GAS AND ELECTRIC COMPANY prays Common CounCil 01' the City of Gilroy, County of Santa Clara, State 01' Calirornia, all as provided for in Section 1002 PACIFIC GAS AND ELECTRIC COMPANY By ~. L. $I~Y Its ice Pres dent and Assistant Genera.l Manager F. T.. SEA.t:tLS MALCOLM A. MacKILLOP DAVID R. PULLER Attorneys for Pacific Gas and Electric Company, 245 Market Street, San Francisco 6, Calirornia. 27 28 '::-29 30 -8- / I \.. ' ( ( ,. " " ~l ,f g F- .' .. " f' " :; :: ~: 1 11 STATE OF CALIFORNIA 1 sa 2 :: CITY AND COUNTY OF SAN FRANCISCO n '% t. V :: ., " 4:: d ~ an says: 5 il That he is an officer of PACIFIC GAS AND ELECTRIC " S ti.COMPANY,. the applicant herein~ to wit: its Vice President " .. .' .' 7 n and Assistant General Manager, and makes this affidavit as " ,. S fi such on behalf of said applicant; that he has read the :: ~.' ~ 9 :: foregoing applic;:=.tion and lmows the contents t:hereof; that ! le g the same is true of his own knowledge, except as to those 5 11 i matters which are therein stated on information and belief, .. ~ 12 ~. and as to those matters that he believes it to be true. i 13 " i 14 U " ,. ~ 15 H :: .. :: 16 :l :: ~ 17 :: ... .. 18 H so: " 19 g Subscribed and SWorn to before me . :: If 20 II this 22nd day of August, 1957'0 g 21 :! t: .. .. 22 r: .. .. 12 n 23 :: n 24 g 25 I My Commission Expires November 22, 1959 26 11 (SEAL) :; 27 11 ,. 28 " " ., .' " 29 " The undersigned, being first duly sworn, deposes S. L. SIBLEY MARIE H. STANLEY Nota~J Public in and for the City and County of San Francisco, State of California. ,. .' " 30 il H :: n .t .. .. .. :: ., ~: 11 -9-