Section 1. Franchise, renewals, extensions or amendments of franchise may be granted by the City Council whenever, in its opinion, the public necessity or convenience may require any such grant. No such grant shall be exclusive, nor made except by ordinance, nor in violation of any limitation contained in this Charter, nor for a longer term than fifty years. The enactment, publication and taking effect of any such ordinance shall be governed by and subject to the provisions of Article VI and Article XV of this Charter; provided, that no such ordinance shall be passed as an emergency measure. No public utility franchise shall be transferable except with the approval of the City Council expressed by ordinance; and copies of all transfers, trust deeds, mortgages or other documents affecting the title or use of public utilities shall be filed with the City Council within ten days after the execution thereof.
Section 2. Any person desiring any franchise or a renewal of any franchise, may file with the City Clerk a written application therefor, accompanied by a cash deposit of One Hundred ($100) Dollars, as a fund out of which to pay the expenses connected with such application, and proceedings had or taken thereunder. In the event the franchise or the renewal of franchise so applied for is not granted, the unexpended portion of said deposit, if any, shall be returned to the applicant; and if the franchise or the renewal of franchise applied for shall be awarded to some other than the applicant, such deposit shall be returned to the applicant. No franchise or any renewal of a franchise shall be finally awarded, until all expenses incurred in connection with the awarding of the same shall have been fully paid by the person to whom the same shall be awarded.
Section 3. Upon the filing of the said application and the making of the deposit, as aforesaid, the City Council shall, if it propose grant the same, proceed to determine the character of the franchise or of the renewal franchise applied for, and shall determine the terms, restrictions, reservations, conditions, provisions, and the form of the ordinance to be adopted for the purpose of granting the same. And if such application be for the renewal of an existing franchise, the Council shall not be in any way limited or restricted in its determination of such terms, restrictions, reservations, conditions or provisions, by the provisions of the franchise sought to be renewed.
Section 4. The Council shall thereupon advertise the fact of said application, together with the statement that it proposes to grant the same in the form so determined, in one or more newspapers of general circulation published in the City of Visalia, once a day for five successive days, or as often during said period as such newspapers are published, and the full publication must be completed not less than twenty nor more than thirty days before any further action is taken thereon. Said advertisement must state the character of the franchise or of the renewal of franchise proposed, and set forth in full the form of the ordinance proposed for the granting of the same, and must state that sealed bids therefor will be received and open at a time and place to be stated in said advertisement, and that the said franchise or renewal of franchise will be awarded to the highest and best bidder; provided that no franchise nor any renewal of any franchise shall be sold for less than $500.
Section 5. At the time of opening the sealed bids, any responsible person, firm or corporation may bid for said franchise or renewal of franchise, a sum not less than ten percent above the highest sealed bid therefor and such bid so made may be raised, and such bidding may continue until finally said franchise or renewal of franchise shall be struck off, sold and awarded by the City Council to the person, firm or corporation offering the highest and best bid therefor; provided, that such bidder shall, before the making of such award deposit with the City Clerk at least ten per cent of the amount of his bid, and if such successful bidder be not the applicant, the sum of One Hundred ($100) Dollars in addition to his bid shall be deposited by him at the same time, and in the event of his failure to make such deposit or deposits, his bid shall be rejected and no further proceedings for the sale of said franchise, or renewal of franchise shall be had without re-advertising in the manner hereinbefore provided; and in case the successful bidder shall fail to deposit with the Treasurer, the remaining ninety per centum of his bid within five days after its acceptance, the award of said franchise or renewal of franchise shall be set aside and all deposits theretofore made thereon shall be forfeited to the City, and no further proceedings for the sale of said franchise or renewal of franchise shall be had without re-advertising in the manner hereinbefore provided.
Section 6. The successful bidder for any franchise or renewal of franchise sold or awarded under this Charter, shall file a bond running to the City of Visalia, with at least two good and sufficient sureties or other good and sufficient bond provided by law, to be approved by the City Council, in a penal sum to be prescribed by the City Council and set forth in the advertisement for bids, conditioned that such bidder shall well and truly observe, fulfill and perform each and every term, condition and provision of such franchise or renewal of franchise, and that in case of any breach of condition 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, or from any or either of them. Said bond shall be filed with the City Clerk within five days after such franchise, or renewal of franchise is awarded, and upon the filing and approval of such bond the said franchise or renewal of franchise shall be granted by the City Council by ordinance to the person, firm or corporation to whom it was struck off, sold and awarded. And in case the said bond shall not be so filed, the award of such franchise or renewal of franchise shall be set aside and any money paid therefor shall be forfeited to the City and said franchise or renewal of franchise may, in the direction of the City Council, be re-advertised and again offered for sale in the same manner and under the same restrictions as in this Charter provided for the original application, advertisement and sale.
Section 7. No clause or condition of any kind shall be inserted in any franchise or renewal of franchise offered for sale under the terms of this Charter, which shall directly or indirectly restrict free and open competition in bidding therefor, and no clause or provision shall be inserted in any franchise or renewal of franchise offered for sale, which shall in any wise favor one person, firm or corporation as against another in bidding for the purchase therefor.
Section 8. Extensions and amendments of existing franchise may be granted by the City Council in the same manner and subject to the same limitation, restrictions and provisions as provided in this Charter for the granting of franchises and renewals of franchises; provided that extensions or amendments of franchises shall not be advertised for sale, or sold, or awarded to the highest bidder, and the provisions of this Charter governing the advertising for sale, and the sale and award of franchises or renewals of franchises to the highest bidder, shall have no application to the granting of extensions or amendments of existing franchises.
Section 9. If any ordinance granting a franchise or a renewal, extension or amendment of any franchise shall fail to go into effect by reason of its not being approved by a majority of the votes cast at an election to which the same was referred by referendum proceedings as provided in this Charter, such failure to go into effect shall not entitle the person to whom the grant of such franchise or renewal, extension or amendment of franchise was made, to claim a refund of any moneys paid or deposited by him as provided in this Charter, on account of any of the proceedings had for the obtaining of such grant. But if any such ordinance shall be repealed by the City Council upon the filing of a referendum petition demanding its repeal, or a reference thereof to a vote of the electors of the City, without submitting it to such vote, all moneys paid or deposited by the grantee of such franchise renewal, extension or amendment of franchise as provided in this Charter, in excess of the actual expenses of the proceedings for such grant shall be refunded to such grantee.
Section 10. Any public utility franchise may be terminated by ordinance at specified intervals of not more than ten years after the beginning of operation, whenever the City shall determine to acquire by condemnation or otherwise, the property of such utility. Indeterminate franchise may also be granted, subject always to the right of the City at any time and upon six months' notice in writing to acquire and possess the property of the grantee.
Section 11. All grants, renewals, extensions or amendments of public utility franchises, whether so provided in the ordinance or not, shall be subject to the right of the City:
(a) To repeal the same by ordinance at any time for non-use, or for failure to begin construction within the time prescribed;
(b) To require proper and adequate extensions of plant service, and the maintenance of the plant and fixtures at the highest practicable standard of efficiency;
(c) To regulate the rates and charges of all public utilities;
(d) To establish reasonable standards of service and quality of products and prevent unjust discrimination in service or rates;
(e) To prescribe the form of accounts and at any time to examine and audit the accounts and other records of any such utility, and to require annual and other reports by each such public utility; provided, that if a public service commission or any other authority shall be given the power by law to prescribe the forms of accounts for public utilities throughout the state or throughout any district of which the City is a part, the forms so prescribed shall be controlling so far as they go, but the City Council may prescribe more detailed forms for the utilities within its jurisdiction;
(f) To impose such other regulations as may be conducive to the safety, welfare, and accommodation of the public.
Section 12. The consent of abutting and adjacent property owners shall not be required for the construction, extension, maintenance or operation of any public utility, but any such property owner shall be entitled to recover from the owner of such public utility, the actual amount of damages to such property on account thereof, less any benefits received therefrom; provided, suit is commenced within two years after the damage is begun.
Section 13. All extensions of public utilities within the City limits shall become a part of the aggregate property of the public utility, shall be operated as such, and shall be subject to all the obligations and reserved rights contained in this Charter, and in any original grant hereafter made. The right to use and maintain any extension shall terminate with the original grant and shall be terminable as provided in Sections 10, 11 and 17 hereof.
Section 14. Every public utility franchise hereafter granted shall be held subject to all the terms and conditions contained in this Article, whether or not such terms are specifically mentioned in such franchise. Nothing in this Charter shall operate to limit in any way, except as specifically stated, the discretion of the City Council or the electors of the City in imposing terms and conditions in connection with any franchise grant.
Section 15. Within six months after this Charter takes effect, every public utility and every owner of a public utility franchise, shall file with the City, certified copies of all the franchises owned or claimed or under which any such utility is operated. The City shall compile and maintain a public record of all public utility franchises and of all public utility fixtures in the streets of the City.
Section 16. It shall be the duty of the City Manager to investigate and report on all proposed ordinances relating to public utilities. He shall exercise a diligent oversight over the operation of all public utilities operated within the City. The City Attorney shall represent the City in all proceedings before any State Public Utilities Commission involving the public utilities within the City. The City Manager shall perform such other duties in relation to public utilities as may be prescribed by the City Council.
Section 17. Accounts shall be kept for each public utility owned or operated by the City, distinct from other City accounts and in such manner as to show the true and complete financial results of such City ownership, or ownership and operation, including all assets, liabilities, revenues and expenses. Such accounts shall show the actual cost to the City of each public utility owned, the cost of all extensions, additions and improvements, all expenses of maintenance, the amounts set aside for sinking fund purposes, and in the case of City operation, all operating expenses of every description. The accounts shall show as nearly as possible the value of any service furnished to or rendered by any such public utility by or to any other City or governmental department. The accounts shall also show a proper allowance for depreciation, insurance and interest on the investment, and estimates of the amount of taxes that would be chargeable against the property if privately owned. The City Council shall annually cause to be made and printed for public distribution, a report showing the financial results of such City ownership or ownership and operation, which report shall give the information specified in this section and such other information as the City Council shall deem expedient.
Section 18. The City may establish, acquire, lease and operate, or cease to operate and dispose of public utilities and quasi-public utilities at its own option in the manner provided by the laws now existing or hereafter enacted or by the majority vote of the registered, qualified electors of the City in the manner provided by ordinance enacted by the City Council by the affirmative vote of four members of such Council. All amendments of such ordinances shall require a like vote. In such ordinances the City Council may define what are public utilities and quasi-public utilities.
Section 19. In acquiring public utilities and quasi-public utilities, the City may purchase the same subject to existing bond issues and other obligations thereof, whether secured by mortgages or trust deeds against the property of such utilities or not, and may assume and pay such obligations as part of the purchase price.