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1 MARA W. ELLIOTT, City Attorney

GEORGE F. SCHAEFER, Assistant City Attorney.
2 JONE. TAYLOR, Senior Deputy City Attorney
California State Bar No. 155429
3 VALERIE SILVERMAN MASSEY, Deputy City Attorney
California State Bar No. 236283
4 Office of the City Attorney
.1200 Third Avenue, Suite 1100
5 San Diego, California 92101-4100
Telephone: (619) 533-5800
6 Facsimile: (619) 533-5856
Exempt from fees per Gov't Code§ 6103
To the benefit of the City of San Diego
7 Attorneys for Plaintiff
CITY OF SAN DIEGO
8
9 SUPERIOR COURT OF CALIFORNIA, COUNTY OF SAN DIEGO
10 CITY OF SAN DIEGO, a Municipal ) Case No. 37.2020.00002219-eu-ec.crL
corporation, )
11 ) CITY OF SAN DIEGO'S COMPLAINT
Plaintiff, ) EORUECLARA'fORYRELIEF A.NJ)
12 ) REIMBURSEMENT
v. )
13 ) IMAGED FILE
SAN DIEGO GAS & ELECTRIC COMPANY, )
14 a California corporation and DOES 1 through ) I/C Judge:
20, inclusive, )
15 Dept.:
) Complaint filed:
Defendants. ) Trial:
16 )
~~~~~~~~~~~~~~~-)
17

18 Comes now Plaintiff City of San Diego ("City") and alieges as follows against the above-
19 named Defendants:

2() GENERAL ALLEGATIONS

21 1. City asserts that jurisdiction and venue are proper before this Court as the events

22 which underlie this lawsuit occurred within the City of San Diego and County of San Diego.
23 2. City is, and at all times herein mentioned was, a California Charter City, duly

24 organized and existing by virtue of the laws of the State of California.

25 3. City is informed and believes_, and thereon alleges, that Defendant San Diego Gas

26 & Electric Company ("SDG&E") is a corporation organized and existing under the laws of the

27 State of California with its principal place of business located in San Diego County, California.
28 I I I

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CITY OF SAN DIEGO'S COMPLAINT FOR DECLARATORY RELIEF AND REIMBURSEMENT
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1 4. The true names and capacities of Defendants named herein as DOES 1 through
2 · 20, inclusive, whether individual, corporate or otherwise, are unknown to City, which is

3 informed and believes, and therefore alleges, that each of said fictitiously named Defendants is
4 liable to City on the causes of action herein alleged, and, therefore, City sues such Defendants by
. .
5 said fictitious names. City will move to amend this complaint when the true names and capacities
6 of said fictitiously named Defendants have been ascertained.
7 5. City is informed and believes, and thereon alleges, that at all times herein
8 mentioned each of the Defendants was the agent and/or employee of each of their Co-
9 Defendants, and in doing the things herein mentioned, was acting within the scope and course of
10 the authority of such agency and/or employment, and with the express or implied pennission and
11 consent of their Co-Defendants.
12 6. On April 26, 2014 the City Council adopted Resolution Number R-308906
13 enacting and undertaking the Pure Water Program. The City Council deemed the Pure Water
14 Program necessary to increase diversion of sewage flow away from tp.e Point Loma Wastewater
15 Treatment Plant (PLWTP) and the Pacific Ocean to the North City Water Reclamation Plant
16 (NCWRP) and planned Pure Water facilities and indirect potable use. Pure Water San Diego will
17 significant!y reduce flows to the PLWTP and will make San Diego more water independent. It is
18 a 20-year program to maintain regulatory compliance for the wastewater system, and to provide
19 a safe, secure and sustainable local potable water supply for San Diego. Recycled water will be
20 turned into potable water through the use of water purification technology.
21 7. Phase 1 of the Pure Water Program will create 30 million gallons per day (MGD)
22 oflocally controlled potable water and reduce flows to the PLWTP, which is necessary in order
23 to reduce total suspended solids (TSS) discharged to the ocean. Phase 1 of the Pure Water
24 Program involves the construction of advanced water purification facilities near the existing

25 NCWRP. New pump stations and pipeline facilities will convey flows to and from the treatment
26 facilities for: 1) intercepting, diverting, and pumping wastewater flows to water reclamation
27 facilities; 2) conveying tertiary recycled water to advanced water purification facilities; 3)

28 conveying purified water from Pure Water facilities to local reservoirs; and 4) transporting waste

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CITY OF SAN DIEGO'S COMPLAINT FOR DECLARATORY RELIEF AND REIMBURSEMENT
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1 flows (brine and sludge) from treatment processes to solids handling facilities or back into the

2 Metro Wastewater System.

3 8. On January 17, 1971 by Ordinance Nos. 10465 and 10466, the City of San Diego

4 granted to defendant SDG&E franchises to install and operate gas and electric service facilities

·5 in the streets of the City ("Gas Franchise" and "Electric Franchise," collectively the

6 "Franchises.") The franchises have a term of fifty (50) years and were effective at all relevant

7 times herein.

8 9. Each of the Franchise Agreements contains an identical Section 8 entitled "City

9 ReserVed Powers" which reserves to the City the paramount right to use the streets for any

10 governmental purpose, the right to change the streets, and the right to vacate the streets. Section

11 8 of each Franchise provides that if in the City's necessary exercise of these rights a conflict

12 exists with defendant SDG&E's facilities, then within 90 days of receiving notice from the City

13 SDG&E must commence the physical relocation of its facilities at its own expense whether or

14 not they were there first.

15 10. Through open communication with SDG&E and an iterative design process for

16 Phase 1 of the Pure Water Program, the City endeavored to avoid or minimize conflicts with

17 existing SDG&E utilities. As far back as 2016, the City and SDG&E.performed several reviews

18 to identify any conflicts across the various Phase 1 project alignments. However, there are

19 several locations where numerous SDG&E facility conflicts cannot be avoided and SDG&E

20 facilities must be relocated.

21 11. In a series of communications, the City sent notice to SDG&E of the alignment

22 conflicts and requested that SDG&E commence design and relocation of its conflicting facilities.

23 Contrary to the terms of the Franchise Agreement between the City and SDG&E, SDG&E

24 refused to commence any relocation activity, and instead stated in a letter dated June 7, 2018 that

25 it will not incur the costs associated with the design and construction of the relocations

26 associated with the conflicts between its facilities and the City's Pure Water Program facilities.

27 SDG&E contended that it would not perform any relocation work associated with its conflicting

28 facilities unless the C.ity paid for it.

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CITY OF SAN DIEGO'S .COMPLAINT FOR DECLARATORY RELIEF AND REIJv!BURSEMENT
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1 12. The Pure Water Program is subject to financing and schedule requirements. In

2 light of the June 7; 2018 letter and to avoid costly delays and schedule impacts to the Pure Water

3 Phase 1 Projects, the City was left with no choice but to agree to a Reservation of Rights

4 Agreement (ROR Agreement). The City and SDG&E entered into the ROR Agreement on or
. .
5 about January 2, 2019, attached hereto as Exhibit 1 and incorporated as though set forth in full.

6 (The June 7, 2018 letter is an exhibit to the ROR Agreement.) The City provided initial funding

7 to SDG&E in the amount of $35,678,521 so that SDG&E would complete the design work and

8 relocate the existing gas and electric utilities in the public right of way.

9 13. Under Article XI, Section 7 of the California Constitution, a county or city may

·10 make and enforce within its limits all local, police, sanitary, and other ordinances and regulations

11 not in conflict with general laws.

12 14. Under Article I, Section 1 of the San Diego City Charter, the City may own and

13 operate public utility systems, including the joint or sole operation and ownership of utilities for

14 the purchase, development, and supply of water and electrical power for the use of the City and

15 its inhabitants and others; and generally shall have all municipal powers, functions, rights,

16 privileges and immunities of every name and nature whatsoever now or hereafter authorized to

17 be granted to municipal corporations by the Constitution and laws of the State of California.
18 15. Under Article I, Section 2 of the San Diego City Charter, the City shall have the

19 right and power to make and enforce all laws and regulations in respect to municipal' affairs.

20 16. Under Article VII, Section 103 of the San Diego City Charter, the City Council

21 shall have power to grant to any person, firm or corporation, franchises, and all renewals,

22 extensions and amendments thyreof, for the use of any public property under the jurisdiction of

23 the City.

24 17. Under Article VII, Section 103 .1 of the San Diego City Charter, the City Council

25 shall have power to provide reasonable terms and conditions under which any business may

26 supply the inhabitants of the City with light, water, power, heat, transportation, telephone

27 service, or other means of communication, or furnish services of a public utility nature.

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CITY OF SAN DIEGO'S COMPLAINT FOR DECLARATORY RELIEF AND REIMBURSEMENT
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1 18. The City may provide for pµblic utility gas and electric service either by itself

2 under the San Diego City Charter, Section 1 powers, or by granting franchises by ordinances

3 under Section 103.

4 19. San Diego .City Charter Section 53 provides that "[tlhere shall be included hi the

5 administrative organization of the City a separate utility known as the Water Utility." At all

6 times relevant herein the Water Utility was operating as a governmental unit of the City

7 administrative service.

8 20. San Diego Municipal Code Chapter 6, Article 4, Division 1 is entitled "Sewers."

9 Section 64.0100 within that Division provides "[t]he purpose of this ordinance is to provide for

10 the maximum beneficial public use of the City's wastewater system through adequate regulation

11 of sewer construction, sewer use and industrial wastewater discharge, to provide for equitable

12 distribution of the City's costs, and to provide procedures for complying with wastewater

13 disqharge requirements placed upon the City by other regulatory bodies." At all times relevant

14 herein the City was planning and executing the Pure Water Program in furtherance of its

15 governmental role as the owner and operator of Metropolitan and Municipal Wastewater

16 Systems.

17 FIRST CAUSE OF ACTION

18 (Declaratory Relief)

19 21. City realleges paragraphs 1 through 20 of this complaint and incorporates them by

20 reference below as though fully set forth herein.

21 22. On or about January 17, 1971, the City and SDG&E entered into the two

22 Franchise Agreements, which allowed SDG&E to install electric and gas facilities within the

23 public right of way. A true and correct copy of the electric Franchise Agreement is attached as

24 Exhibit 2 and incorporated herein as though set forth in full. A true and correct copy of the gas

25 Franchise Agreement is attached as Exhibit 3 and incorporated herein as though set forth in full.

26 23. Section 8(a) of each of the Franchise Agreements, titled "City Reserved Powers,"

27 states that the "City reserves the right for itself to lay, construct, erect, install, use, operate,

28 repair, replace, remove, relocate, regrade or maintain below surface or above surface

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CITY OF SAN DIEGO'S COMPLAINT FOR DECLARATORY RELIEF AND REIMBURSEMENT
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1 improvements of any type or description in, upon, along, across, under or over the streets of the
2 City. City further reserves the right to relocate, remove, vacate or replace the streets themselves.
3 If the necessary exercise of the aforementioned reserve rights conflicts with any poles, wires,

4 conduits, and appurtenances of Grantee constructed, maintained and used pursuant to the

5 provisions of the franchise granted hereby, whether previously constructed, maintained and used

6 or not. Grantee shall, without cost or expense to City within Dinety (90) days after written notice

7 from the City Manager, or his designated representative, and request so to do, begin the physical

8 field construction of changing the location of all facilities or equipment so conflicting. Grantee

9 shall proceed promptly to complete such required work."

10 24. Sectio9- 8(b) of the each of the Franchise Agreements, titled "City Reserved

11 Powers," states that, "Irrespective of any other provision of this ordinance. Grantee's right to

12 construct, maintain and use, or remove poles, wires, conduits, and appurtenances thereto shall be

13 subject at all times to the right of the City, in the exercise of its police power, to require the

14 removal or relocation, to either overhead or underground locations, of said poles, wires, conduits
15 and appurtenances thereto at the sole cost and expense of Grantee."

16 25. Under the ROR Agreement entered into on or about January 2, 2019, the City and

17 SDG&E reserved ·their respective rights to file a lawsuit in order to determine the legal

18 obligations of each party with respect to resolving t!ie conflicts between SDG&E facilities and

19 the City's Pure Water Program facilities. This action is brought in accordance with terms of the
20 ROR Agreement and the two Franchise Agreements.

21 26. In order to protect the viability of the Pure Water Program, the City had no

22 reasonable alternative and that it was necessary to enter into the ROR Agreement (Exhibit 1) and
23 pay SDG&E $35,678.521 to begin performance of work that SDG&E was obligated to perform

24 at its own expense under the two Franchise Agreements.

25 27. An actual controversy has arisen and now exists between City and SDG&E

26 concerning their respective rights, duties, and obligations including but not limited to those

27 rights, duties, and obligations to perform and pay for design and relocation work to make way for

28 City infrastructure.

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CITY OF SAN DIEGO'S COMPLAINT FOR DECLARATORY RELIEF AND REIMBURSEMENT
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1 28. City requests a judicial determination of the respective rights, duties, and

2 obligations of City and SDG&E, and a judicial decree that under the terms of the franchise

3 agreements, SDG&E has a duty and obligation to design, remove, and relocate its underground

4 facilities at no cost to the City, because such duty and obligation is required under the terms of

5 the Franchise Agreements.

6 29. A judicial determination is necessary and appropriate at this time under the

7 circumstances in order that the City may ascertain its rights, duties and obligations under the

8 Franchise Agreements with SDG&E. Moreover; if this issue remains unsettled, the City has

9 suffered and will continue to suffer injury and damages by incurring the financial burd~n of

10 paying for the relocation of gas and electric facilities at its cost when such costs are required to

11 be paid by SDG&E.

12 SECOND CAUSE OF ACTION

13 (Reimbursement)

14 30. City realleges paragraphs 1 through 30 of this complaint and incorporates them by

15 reference below as though fully set forth herein.

16 31. City entered into the ROR Agreement and paid SDG&E $35,678.521 to begin

17 performance of design and construction work to relocate its underground facilities that SDG&E

18 was obligated to perform under the two Franchise Agreements.

19 32. To the extent that the Franchise Agreements required SDG&E to perform the

20 relocation work at no cost to the City and the City p_revails on the declaratory relief cl1'1im, the

21 City is entitled to reimbursement from SDG&E of the full amount of the $35,678.521 paid to

22 SDG&E plus pre-judgment interest.

23 WHEREFORE, Plaintiff, City, prays for judgment against Defendants, and each of

24 them, as follows:

25 1. For a declaration that SDG&E has failed to meet its contractual obligations under

26 the two Franchise Agreements by refusing to design and relocate its facilities at no cost to the

27 City that are located along the alignment for the Pure Water Project;

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CITY OF SAN DIEGO'S COMPLAINT FOR DECLARATORY RELIEF AND REWBURSEMENT
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1 2. For a declaration that SDG&E be required to return the $35,678,521 deposited

2 with SDG&E under the Reservations of Rights Agreement plus pre-judgment interest from the
3 date of the deposit;

4 3. For reasonable costs of other damages suffered by plaintiff, according to proof;

5 4. For costs of suit incurred herein; and

6 5. For such other and further relief as the court deems proper.

7 Dated: January J L-/, 2020 MARA W. ELLIOTT, City Attorney

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CITY OF SAN DIEGO'S COMPLAINT FOR DECLARATORY RELIEF AND REIMBURSEMENT
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EXHIBIT 1
 RESERVATION OF RIGHTS AGREEMENT

This Reservation of Rights Agreem~nt ("Agreement") is entered into as of January 2, 2019,

by and between the City of San Diego, a municipal corporntion (''CI'.fY") and San Diego Gas &
Electdc Company, a California corporation ("SDG&E"). For purposes o] this Agreement, the
CITY and SDG&E shall be referred to collectively as the "Parties."

RECITALS

The Parties have existing between them a dispute arising out of the need to relocate
SDG&E facilities. The Parties dispute who is responsible for the cost of relocating SDG&E
facilities locate-cl in the public right-of-way in order to accommodate the design and constmction
of Phase I of the Pure Water Project (the "Project").

The CITY believes, pursuant to Section 8 of the gas and electric franchise agreements
between the CITY and SDG&E ("Franchise Agryements»), SDG&E is required to relocate certain
SDG&E facilities in conflict with the Project in the public right>-of'."way at SDG&E's expense.
SDG&E disagrees that it is required to pay for the relocation of these facilitie·s because of the
nature of the Project. Neithe1· Party is disputing the need for such relocations. The "Dispute" is
further defined by letters between the Parties (See Letter from Andy Renger, SDG&E Project
Manager, dated June 7, 2018, and Letter from Thomas Zeleny, San Diego City Attorney's Office,
dated June 20, 2018; both attached hereto as Exhibit A). This Agreement does not address any
known or unknown utility disputes outside of the public right-of-way.
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The CITY has provided designs for the Prnject to SDG&E indicating which SDG&E
facilities must be relocated to eliminate utility location conflicts and to accommodate the Project.
There are several areas of known conflict identified in the design, including but not limited to those
listed and/or shown on Exhibit.B. The Parties agi•ee that additional areas of conflict may arise and
that cunently identified areas of conflict may change during the course of the Project.

In Ol'der to move forward with the relocation work under Dispute, the Parties agree as
follows:

AGREEMENT

1. On November 15, 2018, the San Diego City Council approved a Resolution (R-2019-
213Cor.Copy) approving thirty-five million, six hundred and seventy-eight thousand, five hundred
and twenty-one dollars ($35,678,521) to be provided to SDG&E for design and relocation work
for the Project. These funds and any subsequent fw1ds provided to SDG&E, all at the CITY's
discretion, are referred to herein as "Funding." Once any portion of the Funding is received by
SDG&E, SDG&E will utilize such Funding to begin the· relocation of SDG&E gas and electric .
facilities' located in the public right of way to accommodate the Project (the "Work"). The Work
shall be phased in accordance with the CITY's Priority Work Schedule attached hereto as Exhibit
C and the terms of this Agreement; provided that the Priority Work Schedule shall be revised to
incorporate SDG&E' s designs upon completion,
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2. Upon receipt of Funding, SDG&E shall perfonn the Work in accordance with SDG&E's
standard operating procedures, processes and methods, pursuant to the relocation designs for the
f ".
Work reasonably approved by the Parties in a prompt manner. SDG&E shall be solely in control
of the Work, and nothing in this Agreement shall require SDG&E to perform any Work in a manner
that SDG&E reasonably determines to be unsafe or in violation of applicable laws, including,
without limitation, detennining whether protect-in-place plans are adequate or requlre facility
relocation. The CITY does waive any rights to dispute a protect-in-place determination by SDG&E
and any right to reimbursement. SDG&E may perform the Work using its existing coritractors or
hire new contractors using SDG&E's customary selection process, in its discretion. SDG&E is
only obligated to perform Work for which it has received adequate funding as reasonably
determined by SDG&E.

3. The CITY may add or change its relocation priorities during the performance of the Work
by revising the Pdority Wodc Schedule as new information becomes available and providing such
revisions to SDG&E. in a format approved by the parties, provided that the CITY acknowledges
that SDG&B will require a reasonable amount of time to accommodate changes to the Priority
Work Schedule, and that changes to the Priority Woi'lc Schedule or the Work, especially changes
that require re-relocation of SDG&E.'s facilities, will increase the cost of the Work at the CITY's
expense..

4. SDG&E's calculation of the overall "Cost Estimate" for the Work is attached hereto as
Exhibit D.. The Cost Estimate approximates the cost of the Work, as calculated by SDG&E based
on information available on or around August 24., 2018. The CITY has not performed an ..

independent confirmation of the Cost Estimate and, therefore, does not confom the accuracy of ( '
'
such estimate. The Parties aclmowledge that the Cost Estimate may increase or decrease depe11ding
on changes to Project design and other factors including, but not limited to, changes in SDG&E
.loaders, environmental requirements, taxes, conflicts not previously identified or encountered
during construction, design changes proving infeasible, and other factors.

5. The Work shall be billed on an actual cost basis, meaning that all costs will be reconciled
at compl~tion of the Work and SDG&E.will bill or refund to the CITY any differences· larger than
$100. SDG&E shall not perform any Wodc for which it has not received adequate advance payment
(other than limited Work at SDG&E's discretion); except to the extent a court with jurisdiction
over the Dispute determines otherwise. The timing of reconciliation of funds paid under this
Agreement does not apply to or override any applicable court order relating to payment of
relocation costs by either Party.

6. Upon receipt, SDG&E will cl'eate two budget codes (one each for gas and electric Work)
to track the Funding provided by CITY pursuant to this Agreement. SDG&E will provide the
following infonnation in co1mectio11 with expenditure of the Funding:

a. On a monthly basis, SDG&E will submit a smmnary of all the charges incurred for the
Worlc by any party, entity or contracto1· to the CITY (example spreadsheet attached as
ExhibitE).
b. Contributions in Aid of Construction, discussed in Section 8, will be documented ·
separately from the cost of the Work.
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7. The Parties do not dispute the existence of utility conflicts, as set forth in Exhibit B, and
the necessity to relocate SDG&E's .assets. This Agreement does not govern any relocations
odginating outside of the public right-of-way, new services necessary for the Project, or a,ny work
necessary to accommodate the Ptoject in any location (within the public right-of-way or otherwise)
that does not atise out of an actual cmiflict betWeen Project facilities and.SDG&E facilities.

8. For purposes of this Agreement, payments made by the CITY to SDG&E forthe Work are
cm:i.si<lered "Contributi011s In Aid of Construction" (''CIAC") for utility facilities by the California
Public Utilities Commission ("CPUC") and the Interrial Revenue Setvice, aiid considered taxable
income. to SDG&E under sectio.n l l 8(b) of the Internal Revenue Code. The CPUC has directed
investor-owned utilities, including SDG&E, to recoyei' frorn paities paying CIAC a specific
amount to compensate SDG&E fol' the diffete.rtce between the taxes paid by SDG&E on such
income and the time value of tax depreciation dedµctious received by SDG&E oVel' the life of the
property, collected through a tax gross up rate set by the CPUC for SDG&E} 'Yl1ich is ctmently set
,'. at 24% but may change over time. 1As CITY disagrees tha,t it is responsible for relocation paynl.ents
to SDG&E relating to the Dispute, CITY also disag&es that it is responsible to pay CIAC taxes to
SDG&E because it believes ithas no duty to pay for the relocations in the first instanc:e. However,
for pul'poses of this Agreemef1t, the CITY agrees to pay SDG&E, in protest, such tax gross up rate
on all payments made by the CITY for the Work. Any such tax gross up payments sha,11 be
refundable to the CITY to the extent a court with jurisdiction over the Dispute determines tha,t
CITY is not responsible to SDG&E for telocatio11 woi'lc as described in the Dispute. Refund of the
monies paid by the CITY imd.er this paragraph is ilOt co1ltiilgent on a tax refund from any state,
local, or fedetal a,gency or proceedings ol' third-party corporate 01· fin.ancial aitangements.

9. 'v::An ,p[YJif~fm~1'ii'atl&'By~mgr(j'.fJiY.'\fof':W'.oJ:l{f~i'~'ffiatl eitf1~~!'.iP.i:9i~.§f,f1f'fhe CITY fully reserves

(and does not waive) all rights to make any and a.,11 legal, statutory,-co11fracl, franchise or regulatory
Claims in any administrative or legal tribunai to recover the money and any damages arising out
of the CITYis payment to SDG&E under this Ag1•eement, including interest acci·uir1g to the CITY
for Ftindifig pi"ovided to SDG&E, subject to proof. Neither Party is waiving any cfaims it may
have against the other regarding the Dispute or other claims either P111ty may make u11der the
Franchise Agi"eenients. Nothing iri this Agreement is intended to or sha,11 be comtrued to meai1 that
either Party has a valid claiin or defei1se. 1tJ1Hi$tAgreeff:iei,}tJdo:(5s';Jiot'UJe~§tn4~Ut!ix~g,~rtip~,·if1Jm1y'.
t~~;11hJI}g{fesohlt1.9ii"filf;;sett1~'!11~11'Hofi~tt!~'.1ID1S"ptffe'.~WimO"trtffiliffg''1ta~c.m1tti19r1~i:l!ii1lii~~i:~tJV.¢~i2ti~liWsJ
provided that the Parties acknowledge that ai1y such resolution or settlement may requir~
regulatory approval.

10. The CITY and SDG&E will work together to update the Priority Work Schedule on a
regular basis during the perfotmance of the Wark to accoui1t for the expenditure of CITY funds by
SDG&E with respect to each c011flict described therein that is part of the Dispute, including the
estimated percentage completion of the relocation Woi'lc for each conflict, the prime contractor
performing the Work, and the amount of fui1ds spent. The CITY and SDG&E will endeavor to
meet twice monthly to review and update the Priority Work Schedule. SDG&E ·sha11 notify the

1 SDG&E Advice Letter 3319-E/2727-G, dated December 7, 20 i 8.

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pITY when it reasonably anticipates that the amount of CITY funds made available to SDG&E to
perform the Wqfk will not be sufficient to pay for the Woi'k scheduled to be performed,~in the next
90 days pursuant to the Priority Work Schedule. In .no event will SDG&E be obligated to perform
any Work for which it has not received CITY funds except to the extent a court with jurisdiction
over the Dispute determines othe1wise.

11. The CITY will provide environmental consultation and coordination to SDG&E as
requested. Although SDG&E will be responsible for its own environmei1tal clea1;ai1ces it
determines to be necessary with respect to the performance of the Work by SDG&E and its
contractors, the CITY is responsible for ensuring the Work is consistent with the CITY's
environmental impact report (EIR) for the Project at the CITY's expense.

12. The Patties shall be responsible for their own attorneys' fees hi. coni1ection with any lawsuit
involving the Dispute. ·

13. The Patties agree that the running of time as to ai1y claim or causes Qf action regarding any
statute oflimitatiblJb !aches, or other pri!1cipl~g,[!~gi!Jlst_~tutory, 01· equi!ahle limitations of action
(''Time Defense'') \vnich'1ria'Y''H~fate''id"or'~i'Hse· 6ut:5ftH& 015Tspl1fe'.Is'f5Ir~'Ci't1fcW'~"p~H6d 'cif:,ffll'~~'ra) , .·
Ye..ti,t:§fr()mJ~~~qµt_iqn.JJfthis'.&gfo'ement('tl'9Aled Pei"iod"). This Agreement applies to any defense, ·
legal of'eC.iuft~b1~. based upon the. lapse of time; including but not limited to the statute of
limitations, !aches, estoppel, waiver or timely action or notice. This tolling pravision does 11.ot
prevent or prohibit either Party froth filing a claim or action relating to the Dispute or seek any
remedy allowable by law during the Tolled Period.

14. State prevailing wage laws ~pply to tbe Work to the extent paid fol' by the CITY, SDG&E
and its contractors shall comply with the prevailing wage reqtiirerhents set forth in E;xhibit F. For
the purposes of compliance with such requirements, the CITY acknowledges and agrees that
SDG&E is not a coi'itra:qtor of the CITY for anypurpose i'elated to the Project, The CITY repi·esents
that no ';Buy America/n" or other steel or iron pul'thasing requirements apply to the Work;
provided that if the CITY decides to obtain funds that n1a:y impose such requirements on the Work,
the CITY shall immediately notify SDG&E afid the Parties shall meet and confer regarding such
I'equiremei1ts and come to agreement before such i'equireme~1ts are imposed, including, withoi.1t
limitation, determination of applicable con'l.pliance obligations associated with such funds, if ai1y.

, 15. This Agreement (including all Exhibhs) is the final and entire agreeinent between the
' · Parties c;:onceming the Dispute. All agi'eemen:ts of the flf.!J~ies with respect to the Stibject mattet
hereof are in writing and supersede all prior written and oral agreements and uhdersta11di11gs of the
P~uties. This Agreement d9es not supersede or a111end the Franchise Agteeli1ents 1 bl..tt rather
provides a mechanism to ni.ove the Project ;forward while the Dispute is pending. Unless otherwise
specifically provided herein, this Ag~·eement cannot be modified except by a written document
signed by all of the Patties. None ofthe Paiiies are relying upon any other negotiations, discussions
or agreements in connection with the subject matter of this Agreement. This is a fully integrated
Agreement. No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any of the other provisions hereof, Whether similar, nor shall such waiver
constitute a continuing waiver.

(' '
 16. Nohvithstanding anything to the contrary contained herein, the Parties hereby stipulate and
agree that the Superior Coul't of the County of San Diego, State of California (the "Coul't'') shall
have subject matter jurisdiction for the enforcement of this Agreement and personal jurisdiction
ove1· the Patties.

17. A finding of invalidity as to any provision of this Agreement or any portion the.reef only
voids that provision or a portion thereof and not any other, and the Agreement shall be interpreted
as if the invalid provision or a portion thereof were not contained in the Ag1·ee111ent.

18. The Parties hereby agree to execute such other documents and to take such other action as
may be reasonably necessary to forther the purpose of this Agreement, with the Parties to bear
their own costs and attorney's fees for these additional actions. This Agreement may be executed
by authorize representatives of the Parties in counterparts, including electronically.

[SIGNATURES ON FOLLOWING PAGE}

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AGREED TO AND ACCEPTED:

SAN DIEGO GAS & ELECTRIC COMPANY

CITY OF SAN DIEGO

I hereby approve the fom1 of the foregoing Agreement t h i s _ l day of January~

2019.

. . ::\l~1-k._
I hereby approve the form of the forego mg Agreement tlus (/"' day of Janucuy,
2019.

MARA W. ELLIOTT, City Attorney

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By \.-JJY--Ov'\.._Q
Christine Leone
Deputy City Attorney

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(
Exhibit A - Letters

[attached]

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 OFFICE OF
SANNA R, SINGER CIVIL DIVISION
ASSIS'.I'ANT CITY ATIORNBY
( THE CITY ATTORNEY 1200 THIRD AVENUE, SUITE 1100
THOMAS C, ZELENY SANDIEOQ, CALIFORNIA 92101
CHIEF DEPUTY CITY ATIORNEY CITY OF SAN DIEGO TELEPHONE (619) 533-5800
FAX (619) 533-5856
Mara W. Elliott
CITY ATTORNEY

June 20, 2018

Via email to: bsyz@semprautilities.com

Brittany Applestein Syz

Senior Real Estate Counsel
San Diego Gas & Electric Company
8330 Ce1itury Park Court, CP32B
San Diego, CA 92123

Subject: Pure Water Project and SDG&E Utility Conflicts

Dear Ms. Syz:

It was a pleasure meeting you at the MCLE presentation at our Office last week. The regulatory
(_ framework SDG&E must navigate is more complex than many of us expected. Thank you for the
presentation.

In anticipation of our meeting tomorrow, I want to briefly address some of the issues raised in a
letter dated June 7, 2018 fi:om Andy Renger, SDG&E Project Manager to Vic Bianes, the Public
Utilities Dfrector for the City. Mr. Renger says that the City is responsible for SDG&E's costs. of
relocating its facilities to accommodate the City's Pure Water project. He relies on a common
law mle that a municipality acting in a "proprietary capacity" nwst pay to relocate conflicting
utilities, and that SDG&E ratepayers should not bear the cost of a project that only benefits
•iselect residents" of the City.

The terms of both the electric and natural gas :franchises require SDG&E to start relocating its -
facilities within 90 days at its own expense when necessary to acconunodate the City's use of its
streets:

City reserves theright for itself to lay, construct, erect, install, use, operate, repair,
replace, remove, relocate, regrade or maintain below surface or above surface
in1provements of any type or description in, upon, along, across, under or over the
streets of the City. City further reserves the right to relocate, remove, vacate or
replace the streets themselves. If the necessary exercise of the aforementioned
reserve rights conflicts with any poles, wires, conduits, and appurte11.ances of
Grantee constructed, maintained and used pursuant to the provisions of the
franchise granted hereby, whether previously constructed, maintained and used or
( not. Grantee shall, without cost or expense to City within ninety (90) days after
 Ms. Syz
June 20, 2018
Page2

written notice from the City Manager, or his designated representative, and
request so to do, begin the physical field construction of changing the location of
all facilities or equipment so conflicting. Grantee shall proceed promptly to
complete such required work.

San Diego Ordinance No. 0-10466, Section 8(a) (Dec. 17, 1970); See also San Diego Ol'dinance
No. Q-10465, Section 8(a) (Dec. 17, 1970) [natural gas franchise l'elocationrequirement
applying to '.'pipes'' instead of "poles, wires, conduits."]

Municipalities providing water and sewer service are acting in their governmental capacities.
The South Pasadena and Hansen cases cited by Mr. Renge:r do not apply to this situation. South ·
Pasadena addressed a city's acquisition of a water utility franchise operating in a neighbol'ing
city ove1· 100 years ago. The controlling law is stated in Southern Califomia Gas Comp.any v.
· . City ofLos Angeles, 50 Cal. 2d 713, 717 (1958) ["The laying of sewers is a governmental as
distinct from a proprietary function under the foregoing rule."] The Hansen case, which allowed
municipal utilities to charge rates that realize a reasonable retum on investments, has been
superseded by Proposition 218. Green Valley Landowners Association v. Ctty of Vallejo, 241
Cal. App. 4th 425, 439 (2015). .

Also, the Pure Water project is a regional project with two primary purposes. The first is to
offload wastewater from the Point Loma Wastewater Treatment Plant to help ensure the City will
receive future permits without expensive upgrades to the plant. Recognizing this benefit~ the (
following local agencies are dfrectly contributing to the cost of the Pure Water project: the cities . ·· ./
of Chula Vista, Coronado, Del Mar, El Cajon, Imperial Beach, Poway, and National City, the
Lemon Grove Sanitation District, the Padre Dam Municipal Water District, the Otay Water
District, and the San Diego County Sanitation District. The second purpose is to provide a local,
drought-resistant source of potable water. The Pure Water project has been incorporated into the
San Diego County Water Alithority's long-range water resource plans, postponing other
expensive capital projects to the. benefit of the Authority's 24 member agencies. Combined, the
· local agencies benefitting from the Plli'e Water p1'oject represent almost all of SDG&E's sel'Vice
area, not just the City of San Diego.

Hopefully providing this .information in advance will help with our discussion tomo1mw. We
look forward to seeing you then.

Sincerely,

cc: Vic Bianes, PUD Director

Doc.No: 1776582 t.·
 ( (

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J~'!qE'
·Andy Rei1ger
Pr.oJectMWii~g,er:,: MijJo.r.Pti)fec,t$
~3:1µ: century P~t1<;CJ:·1 cPaa
S$fi Diagt.11 Ck9212lH54.8.
6.~S'~mp:t1;t ~~w,r,~y :titJ!ftyf 'fal. 858.5.54".1835 Cell '6i9;7.64;~ti4S. :~ax Sss;6afa77o
A.R#n~~r@.S\:l:mprn\J.tllltfo~;com

tJty of:SM DfogO':PUYe Water PtqJet}

Jtlne. 7,;201a
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~.

D~atVltf.. B'f.a.t'.les( Clty;of 6.'ah. 'D.Jego.. l?ubHc: UtHlt'fl:l's Ditecto:r

San Dl:ego: G:as~ .m ·i:1ec.tr1.a C.ompan1t ('':SPG:&.E:"J reviewed the plang s:uhmJtt~d by the Clt;o/. ,t>f San
tIJ~go.· ,(' CJW Xfat th'I{ F"~tr.~ W~~~r $YSt\'5111 C'"l?"'rQl~~f"J a;n~. 'ci~t:etrnih.M th.at. the cos.t: ·ofthe. U.fHlty
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relociiltJc;ins requlr(?cl:·for tna;J?rqJE:c;;t $h.ovJ~; Pc:r.:pa.Jd .bythA· Clty.~ .A.syou l(now,. th~ P'ro'J~Pt:lS.<q
i'iiUlti. . phMe Wa1%W' ihfra:stru.cture ,proJ'ect. desi:&ned tn Jncre~se::Sc;in Dle~t;ls1 ~.urren~ W(Jt;f;!r ~t,tpply­ !~-
by :~rodoe:fr1g 'c:\emJt dtihkl~JS:: watet\ W:e tmderstan'tf that P.ha'se, 1 of the cort.str(.rctroli fa~· the .'"
~.

Pr:oJeoUs ggpecte·d.'fo.be.gfh lrt aa:dy l?:Qifr,ancl ~onolud.e. ft'.1'.lats·~02l.

( Pr:l9r tq· OJ.Ir fLt!J <1naJyS.I~ o.f 'th.a c;u:rreht pr.opmsaf for the P'ro'J~ct?: dl'l Febtltar.y ,q;, 20.'.l8} iSDG&E
sent;.~ l~t~er t.q Nls.. ·Chl'.i'$flt1e; :Lem:ie~ Oe:p.u.fy, .C:tty l\Uoroe.y~ st~tln·g th~t .SPG&Sls not r:asponsJbl.a
~or ·the .utiJlty· .r.eJocatlon j:OS'lls refat·ed t:o the. Mor~t}?J P\1.mp .$t:a.tto1:r ~nd: c:onv.!=Pt.'F.!0..~!':1: ::>yst.wm
;(."MPS{J .(wfil'.cb ts".:p~rt.of.th~ ·P'MJact)-. ihls d::et~'ftti.i:riatlo'fi was. made. l:h~caus.ethe MP.s :is not.a·
publla :street 11.rqJ~ct ·atid:t:he'~lilfbN:!t no.t tn:ve:r.ed by thad'~eloe:atlJ;:i.i1 ;P..ro:vfsforns t>Hha fr:a:rrchts:G
1
gS,rei;Rn:ent; hliltw~:en s.o<a&E. ~.n.d th~, Ci~y· ~f Hr~.n:n:;hls~t}i1 NP.Ntth~tw.e hav~ ana.l:yz:ed the. :C.kttr~nt
propose.d Profect, :SDG'.&;6 ftnd~~'thtit It I~ no.t re$w1;>n$lPl~. fqr gn_y lJ.tHltitx~1:crc:atJ.1;in GO$tS'. in th'~
Pi'Mthls11 ~t:e.a ·for the :re·as.oh.S. d~str:l'bed below.

Pltst~ "thS. P·roJect: b,e:11 ef[t$1 s.el~J:t resld'ehtl oH.he:· Cl'tv,· of.$ah..Dlegb:. The hf_gh co.st§ .af ithfa. ;pr.oJe.<tt .
"""'"' ·S'lif'f6't::i .. ttt··"·rrf-- ..... "k-";;i,,··"·"·[· ·..l·,, ..t''" ... l+'f'." '''."d" · ·1···.~.s •.
1.1;not .~a: spte~...i.:.·.!;l'.,.n.Pn~L
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.S11,Qll i,; •. f)!.'.!-;; S e.n :. .Efte.,n,. o,ry~. ·wnti.;.n 1ncJX1:.dil~H1 n:er c .d~s, :an "'o.:unt
Tire fun·dlh:tfof th1~ :e.mj'eott whlbh ulttmat;ely: wllLbi:i: r!;f~oup:~d 'fr.om Cit~, of S.'an Olt!g(:) ..res.td(:!nb.1•
·~b<>.u.ld:Jrg:Ju:cta utfl.lty· r~k?<:;t1t1.011 ·(:Qsts:i,

.$'.~cqop, Jn 'C~ll.f9:rnl.a.1: th.:C? eornmo.11 .!r.:iw rlJ:I~· ts· thl;lt ln: th\'t' t:fJS:a pf ·d.~v~l'ppment ·of ti uwat~r
.syWM:n, even Wl:tl1'.ih Ia t1ty's1 o.wrt limits, a dty does· not act tn Its' ~avernmentaf:cap·aei'tyi but ln
a p't.oJ;itl.e:t:axt 'ctip:arltyi, ,(ScJ.u:tih. Pasaderrct v;. Pasade1W." land and Wtrtet Co.mptmy t1£Jd8J 15·2
Cab·Eii.l!lli. s~~t '.(JJ~o..Hat1fiifJ;tr:1!. tlfV of.IJa.e:nav~nturtt. .(~9I{$J 4?; c.aJ. . :Sci1.1'172'); Whi3Ji'.a J'\'.\UhJ¢J'pallty
1·i ~ct.t:n:~ 'in '9: ·11p:nl!prJe.t.ary'1 c.-g,p,at;lty:, M. clJsttn,c;t from ~.';governmental usert, th~r nnxnicTpa:Hty
,shoul.d bear. the costS"to relocate,, removej or abandon ft,~:fa!f,!!tt~~,, {PD.$~<!/ Te./.~grgpb -:{;qpfrf <;o.;.
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v~ Cft:V·t.;1h'c£ CPMnty o[San f.rqnCJ1$.c.p {19Zi) 5:$ C~tA~PP:t l8.8):~ Th~. ·l·~w t,ul$' fo1;S' b~E}li comm.on.
emhodled:.hi. Califor.nt~·i::ase 'law for ne~rly a c~ntury, and,. )mportantl"y~ ha$ never b~:eJ:i, 9Verr.uied
liythe' ·¢a'!ifb.rnl\:J. '$µp(eme tn:u:rt. ·

' Tb:!r.d~· $0 $:$\Ei:$> ·F·r~richt~:e with th\:lc C(W at1th orl:tes· .s·.o.G&t: to. ihstaU ·uftnty fa c'ill'tles. ll.l ~h ~1 :p:9bHc
>streets. It efso requTres that t:ha City a11d .. SD.G&E ~re~are a marH:tal· 0P·adh'1lntstr·i'itive t>ra.ctrces:
'(Which s.h~JJ. govern: th$: !'nst~.lif:'t\on at'lct rerno.va:I . of GtEmte~\.'s facUlfl#s lh the· ·$tre:.e:ts./1
tfr.anch'l.se.. ;CJt ,s:e~tlon 7), .S.mih Jrri;tJT!JGif ":$h~ll :gPvexn tfr~ p,ra~ti~~~· ·~tf' tS:DG&El, ln Jt$ :ln·$t~ffa.~lbn
~hd rt3:movt'll' of [?P~&\}.t~s4·fa¢\.lkt¢s. lo th~ strt'lets qfth~ City/' (F.:r:$n~hlsf;·?it.$'a~t[9h, 7).1 The· Cfty
:Ma.nuc;il <if Adh'llhfatra.tlve Practftes.'for UtllltY J~stallatlO.n:t dated February 24j 1SB6/ { M.a.11o~WJ 11

·1~ti~ffirlii's: the t1tv .s. :cti:rnm1t.tnent to> fh:e; -common :fow govert1mc;fntaJ~propd:e:taty dts.tfri.cflcin lit
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({eterm:l'qtn,g "\i'/ho··.s.q:oqlq: he~t· the Qost·s. .of utility re..b~G~tJon~,, Th!'\; Mi:nJ:ual/.: whtoh w~:s: Jqll!.tl:Y.
c!-1htere.d: int.¢ ~y the C:IW°1;$.:·t.1tffitl;e$' :(Jhc;.ludtng th:1;r Gltf$' W~tlf.r o~·p~t~in~nt). a1;1cJ prf\l~:te (tt'f!tty
:com:panie~: (fncl.UdJn~ SOG.&E}:,, exptes:sJy acknowfed:~$s; tha~ viher~ .f~c:'ffi.~iC;1$; .or 1m~rovem~l'.lt.s
'are: J5ro.prleta i'Y' ffr: n~ti;t re?: :as: .op pos~'~ t<J :g·ov.~ r:rr111ehhil) the: c1w ·should be'a'r the: cost. for su:ch;
.relocl:ltkH\$:\· $ectkm. Vfl~~~ ;Prtlvld:e.$· that: ·u:tlllty ;r!;llb.catlons a're~ to: h~ borhe: by the :utUity onl\r
when 'iC\tY:' foGUlt.1:1')$ \:Ind tmprovem.~n·ts aria flnanc.ed by, thli!i Clf;y,,!'i an,cl where 1~lJch ·fao1Htl~$, or
lmpr.¢.v~:.trr~oJ~ ftr~ gqvtJmITT!:111t!=ll hr :Mt!Jre ~s :9pp.os·~.c1 ·~9 proprlM~.ry ln M.tQ't.t):};: (Manual,,
5.ec:t.IN1 'VH {~))'.,
Adtjlt\oit~JJyj. cmr 1nav· ttot pe-rml't S'DG.&~ to .soclalhi:e "th.e; ·ce>..s.ts to ·relocate, our
1'¢.&ul~tors
f:atll:ltl'.es fo.r·:~ :~roJe'ct that. ·onl¥- l:iEil'leflt:s: selett .city ofS,art OJ.e:gp's: t.<3sldents. among the: 2a. o:th~r
·mun1 clpalltl.g.s. we sercv#x
cl
SOXJ:&S wU:t t:oope..rf!.t~, ·with the C.l:W· :111 ·a: tl:ml;1Jy· man;m1r t.o effli!·ctu:at~ 'any .d~s.lre:cl utllitv.
r~:to,ca.ti6.1\$:. · f!Qw~v~n~ th~, city .l?· r@$:p:qo$lb.Je., fqr th~ :9.o·~t~t :o.f'the :r.elo¢llt:fon$ '.t$qtt!t~d' by ·the: I
If
:p·t··f···ct
.. o,e.:. ~
:\f;/'.~ wo.vta fl.k.e: ~cti:fet nip: a: m'eetln:~ wfth yo.u. to dlscuss: tMs·further.::~n'.l tbaH1. ptoJect: a:gta;~m~nt f
· ''*"·n·<b· ": ,11r-1.~, :"I~ ·p l·"fr"6' ·t"'h·a~"t·•ill:l·
l>O. : &:' .tf~·l( ,r,t. .. ~.'-t'IM" .... ~
,v.y. ,, .tt·
« •••.• ~ n~ . "'."S. io:·X11 th"' :co'n·st. .ru "."tio· :~'* •o·r· It ,,.,,,.d. ' "."'
"':r·dv:t:d,.,;·t'*e-te·"'
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,hi. t:·s;i1:· t·e· .cl· :l'i""•vw..e·n'h"'··
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:P.li!i£t.$1')' le,t: us; kn·ow :v.v;hli'ln. you .a:re itV;;iUab.:Ie. Thnr ls. tlrrre., .se..n:s'i'tl.ve :·ta$. ·the- .SOG'&e; rti.f.ot.t:1fl.o:m: ·I
J
.de:$r~.n.~ ~r~~·t:i.n froftj: p.1;!n(;{1;ng- p.:~yn,:ig.n;t,,
:'
Tb~:nkyP,l,I· fory.oJ:Jr'th:ne: and citt.entlQth

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 (

( ;Exhibit B - Conflict List

[attached]

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 2S/IU3201Q
Pure Waler SDG&c Relocotlons

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Et Um atell du111n Md consiru~tton com~te\lun dates ~iist-d on tursoiy nvahmtlons as cng!~entloa nu 11otvot
ttinll'O~n~ed, Oates ate Ukely to tllange a11cl a~lllf\\ll tityfu11dl11g or.1l1e SOG&~ rnlrir.ntkmt l:i provl~n.1 In U01n forSDliJJ.!!
tobeR!ndos!11nworkot110/1/111,
(
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Exhibit C - Priority Schedule

[attached]

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Pure Water North City Projects 11 I

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........ \h"~IYI V/{l.<J#Ml~ ro·e~tr(lhl n11-~ Br.l<"~Gml1a1e U1\'\

....,....,.. 'tlerf.nll :rump litr.uon. ~1"119.JTI D\/1''.1101 !111w11·
-\hi!M"11mpmt11in-C~~:D.iwr1;'1;1.1
'l'l*»>Mltindfl'G!lsl'lp~he

Gm] ~tflhCl\JPl~W~l'ltF\\tl!'J
IE!} HrrtllClly Pil'i! W~!CI r;.ari11s1~1tm
lmJ ff!"tdtCll,YW~:o'llc<J,n1~;1::JnF't,1ntnP.l'f'l~Qn
11 \lri;mo•Wl/.Oll'(IPl.rnC'n1P in:lm~r{1{omo10
1

llJl llu'\'loWdiYCP-rhkrh~lt,.,~~e\ity
lilli'il \l;t'l'I U~..,;(l)~CMICI/ lm~nYJ11111~
(B \~~M uump ~t~t!1111
H Lt11~!•~03CT:inpres!>Ol'~lil\tn
Date: 12/26/20'18 ~tilyofSMl)!(l~O
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;;;:~-.::;mmm;,., ::;;m;,·r.:m;;;;;mm;;;::m;;;.s;•

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(
Exhibit D - Project Cost Estimate

[attached] ·

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Pure Water Preliminary Cost Estimate Division of Work: August 24, 2018

The following is a basic estimate of the division of costs on the Pure Water project for SDG&E
relocations by type of work and locatipn of conflict. Th ls estimate is preliminary, and SDG&E reserves
the right to edit or revise these estimates as necessary. This estimate is based on initial land rights
.research, does n.ot take relocated positions Into account, and assumes that the City of San Diego _ls
rerouting Its pipelines at Meanly Drive sci that SDG&E does not need to relocate Its gas and electric
facilities In that location. Numbers are In $OOO's.

:~~;~~~~~{~~~·~r:_~l£~t~e~~~~;~~1~~};;~~;~tfi:~~1:~!:1~\;,:~~1f:Ji~,~:~~;~A:~~;~~~t:z~~~~€J~ ;,_: .~ :,: Jt~:~~ f~t· ·)~

ED $0 $36,388 $0 $0 $36,388
ET $0 $0 $0 $602 $602
Gas $3,131 $44,370. $469 $8,293 $56,263
Protect In $0 $0 $0 $1,500 $1,500
Place (PNP)
Total $3,131 $80,758 $469 $10,395 $94,753

ED::: Electric Distribution

ET= Electric Transmission

"Other" includes costs the City would pay for Independent of the dispute, such as the cost to monitor
the City's PNP measures, SDG&E moving to accommodate City construction sans actual facilities
conflicts, installing a new gas regulator station to accommodate the Project because new load exceeds
current capacity, etc. ·
C.

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 (

Exhibit E - Invoice Sm·eadsheet Example

[attached]

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i§jd!Mlli@i@Af@iloAlE"JUOJlD CGSU (coiivrrompllormonlh)

!~™®l<WNil®R:u@lcompletedlob1

Mlih.t.#R£fJ1ff9:tUche~ cur1tnt monlh no bll(ed aniount t!f.~~'s p1lorm1>nthJTD a

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 (

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Exhibit F- Prevailing Wage Requirements

[attached]

(
 EXHIBITF~l
PREVAILING WAGE (DESIGN)

4.20 Prevailing Wage Rates, Prevailing wage rates apply to this Agreement.
(""'.
Pursuant to San Diego Municipal Code section 22.3019, construction, alteration, demolition, repair and
maintenance work performed under this Agreement is subject to State prevailing wage laws. For construction
work performed under this Agreement cumulatively exceeding $25,000 and for a Iteration, demolition, repair and
maintenance work performed under this Agreement cumulatively exceeding $15,000, the Design Professional and
Its subconsultants shall comply with State prevailing wage laws Including, but not limited to, the-requirements
listed below.

4.20.1 Compliance with Prevailing Wage Requirements. Pursuant to sections 1720 through
1861 of the California Labor Code, the Design Professional and Its subconsultants shall ensure that all workers who
perform work under this Agreement are paid not less than the prevailing rate of per diem wages as determined by
the Director of the California Department of Industrial Relations (DIR), This Includes work performed during the
design and preconstruction phases of construction Including, but not limited to, Inspection and land surveying
work.

4.20.1.1 Coples of the prevalllng rate of per diem wages also may be found at
http://www.dir.ca.gov/OPRL/DPreWageDetel'mination.htm. The Design Professional and Its
subconsultants shall post a copy of the prevailing rate of per diem wages determination at each job site and shall
make them available to any Interested party upon request.

4.20.1.2 The date of the City's Request for Cost Proposal for a Task Order Letter
(Proposal Letter) shall be used for the purpose of determining which published prevailing wage rate shall apply on
a Task Order. All wage rates published and all predetermined wage rate Increases known at the date of the
Prop.osal Letter shall apply for the duration of said Task Order. The wage rates determined by the DIR refer to
expiration dates. If the published wage rate does not refer to a predetermined wage rate to be paid after the
expiration date, then the published rate of wage shall be In effect for the llfe of that particular Task Order. If the ( '
published wage rate refers to a predetermined wage rate to become effective upon expiration of the published .· ·
wage rate and the predetermined wage rate Is on file with the DIR, such predetermined wage rate shall become
. effective on the date following the expiration date and shall apply to that particular Task Order In 'the same
manner as if It had been published In said publlcatlc>n. If the predetermined wage rate refers to one or more
additional expiration dates with additional predetermined wage rates, which expiration dates occur during the life
of that particular Task Order, each successive predetermined wage rate shall apply to that particular Task Order on
the date foll owing the expiration date of the previous wage rate. If the last of such predetermined wage rates
expires during the life of that particular Task Order, such wage rate shall apply to the balance of that Task Order.

4.20.2 Penalties for Violations, Design Professional and Its subconsultants shall comply with
California Labor Code section 1775 ln the event a worker Is paid less than the prevailing wage rate for the work or
craft In which the worker Is employed. This shall be ln addition to any other applicable penalties allowed under
Labor Code sections 1720-1861.

4.20.3 Payroll Records. Design Professional and Its subconsultants shall comply with California
Labor Code section 1776, which generally requires keeping accurate payroll records, verifying and certifying payroll
records, and making them available for Inspection. Design Professlonal shall require its subconsultants to also
comply with section 1776. Design Professional and Its subc.onsultants shall submit weekly certified p·ayroll records
online via the City's web-based Labor Compliance Program. Design Professional Is responsible for ensuring Its
subconsultants submit certlfle~ payroll records to the City.

4.20.3.1 In addition to the requirements In 4.20,3, the Design Professional and Its
subconsultants shall also furnish records specified In Labor Code section 1776 directly to the Labor Commissioner
ln the manner required by Labor Code section 1771.4.

4.20.4 Apprentices Design Professional and Its subconsultants shall comply with California
Labor Code sections 1777.5, 1777.6 and t777.7 concerning the employment and wages of apprentices. Design (. ,

1
 (

EXHIBITF~1
PREVAILING WAGE (DESIGN)
( Profession al shall be held responsible for the compliance of their subconsultants with sections 1777.5, 1777.6 and
1777.7.

4.2.0,5 Working Hours. Design Professional and Its subconsultants shall comply with California
Labor Code sections 1810 through 1815, including byt not limited to: (I). restrict working hours on public works
contracts to eight (8) hours a day and forty (40) hours a week, unless all hours worked In excess .of eight (8) hours
per· day are compensated at not less t~an lY. times the basic rate of pay; and (II) specify penalties to be Imposed
on design professionals and subcontractors of $25 per worker per day for each day the worker works more than
eight (8) hours per day and forty (40) hours per week In violation of California Lab.or Code sections 1810 through
1815.

4.2.0.6 Required Provisions for Subcontracts. Design Professlonal shall Include at a minimum a
copy of the following provisions In any contract they enter Into with a sub consultant: California Labor Code
sections 1771, 1771.1, 1775, 1776, 1777.5, 1810, 1813, 1815, 1860 and 1861. ·

4.2.0.7 Labor Code Section 1861 Certification. Design Professional In accordance with California
Labor Code section 3700 is required to secure the payment of compensation of Its employees and by signing this
Agreement, Design Professional certifies that "I am aware of the provisions of Section 3700 of the California Labor
Code which require every employer to be insured against llablllty for workers' compensation or to undertake self·
Insurance In accordance with the provisions of that code, and I will comply with such provisions before
commencing the performance of the work of this Agreement."

4.2.0.8 labor Compliance Program. The City has its own Labor Compliance Prngram authorized
In August 2011 by the DIR. The City will withhold contract payments when payroll records are delinquent or
deemed Inadequate by the City or other governmental entlty, or It has been established after an investigation by
the City or other governmental entity that underpayment(s) have occurred.
( 4.2.0.9 Contractor and Subcontractor Registration Requirements. This project is subject to
compliance monitoring and enforcement by the DIR. A Design Professional or subcontractor shall not be quallfied
to ibid on, be listed In a bid or proposal, subject to the requirements of section 4104 of the Public Contract Code, or
engage in the performance of any contract for public work, as defined In this chapter, unless currently registered
and qualified to perform public work pursuant to Labor Code section 1725.5 It Is not a violation of this section for
an unregistered contractor to submit a bid that ls authorized by Section 7029.1 of the Business and Professions
· Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor Is registered to perform
public work pursuant to Section 1725.5 at the time the contract ls awarded.

4.2.0.9.1 A Design Professlonal's Inadvertent error In llstl°ng a subconsultant who ls

not registered pursuant to Labor Code section 1725;5 In resp.onse to a solicitation shall not be grounds for flllng a
protest or grounds for considering the bid or proposal non·responslve provided that any of the followlng apply: (1)
the subconsultant Is registered prior to proposal due date; (2) within twenty.four hours after the proposal due
date, the subconsultant Is registered and has paid the penalty registration fee specified In Labor Code section
1725.5; or (3) the subconsultant ls replaced by another registered subconsultant pursuant to Public Contract Code
section 4107.

4.2.0.9.2.. By submitting a bid or proposal to the City, [)eslgn Professional ls certifying

that he or she has verified that all subcontractors used on this public work project are registered with the DIR In
compliance with Labor Code sections 1771.1and1725.5, and Design Professional shall provide proof of
registration for themselves and all listed subcontractors to the City at the time of bid or proposal due date or upon
request.

4.20.10 Stop Order. For Design Professional or Its subcontractor(s) engaging In the .
performance of any public work contract without having been registered In violation of Labor Code sections 1725.S
or 1771.1, the Labor Commissioner shall Issue and serve a stop order prohibiting the use of the unregistered
(
. 2
 (

. EXHIBIT FMl
PREVAILING WAGE (DESIGN)

• Design Professional or unregistered subcontractor(s) on ALL public works until the unregistered Design
Professional or unregistered subcontractor(s) Is registered, Failure to observe a stop order Is a misdemeanor.
r··.
4.20.11. List of all Subcontractors. The Design Professional shall provide a complete list of
subcontractors (regardless of tier) utilized on this Agreement, along with their DIR registration numbers, If
applicable, prior to any work being performed on this Agreement, and D.eslgn Professional shall provide a
complete llst of subcontractors, regardless oftler, with each Invoice. Additionally, Design Professional shall
provide the City with a complete list of all subcontractors utilized on this Agreement, regardless of tier, within ten
working days of the completion of the Agreement, .along with their DIR registration numbers, If applicable. The_ City
shall withhold final payment to Design Professional until at least thirty (30) days after this Information Is provided
to the City.

4.20.12 Exemptions for Small Projects. There are limited exemptions for Installation,
aIteration, demolition, or repair work done o'n projects of $25,000 or less. The Design Professional shall still comply
with Labor Code sections 1720 et. seq. The only recognized exemptions are listed below:

4.20.12.1 Registration. The Design Professional will not be required to register with
the DIR for small projects. (Labor Code section 1771.1).

4.20.12.2 Certified Payroll Records. The records required In Labor Code section 1776
shall be required to be kept and submitted to the City of San Diego, but will not be required to be submitted on line
with the DIR directly. The Design Professional will need to keep those records for at least three years following the
completion of the Agreement. (Labor Code section 1771.4),

4.20.12.3 List of all Subcontractors. The Design Professional shall not be required to
hire only registered subcontractors and Is exempt from submitting the list of all subcontractors that Is required In
section 4.20.11 above. (Labor Code section 1773.3),
(\,

( .

3
 ( (

( EXHIBIT F-2

PREVAILING WAGES (CONSTRUCTION)

1. PREVAILING WAGE RATES: Pursuant to San Diego Municipal Code section 22.3019, construction,
alteration, demolition, repair and maintenance work performed under this Contract ls subject to
State prevailing wage laws. For construction work performed under this· Contract cumulatively
exceeding $25,000 and for alteration, demolition, repair and maintenance work performed under
this Contract cumulatively exceeding $15,000, the Contractor and its subcontractors shall comply
with State prevailing wage laws Including, but not limited to, the requirements listed below.

1.1. Compliance with ·Prevailing Wage Requirements. Pursuant to sections 1720 through
1861 of the California Labor Code, the Contractor and its subcontractors shall ensure that
· all workers who perform work under this Contract are paid not less than the prevailing
rate of per diem wages as determined by the Director of the California Department of
Industrial Relations (DIR). This includes work performed during the design and
preconstruction ·phases of construction Including, but not limited to, inspection and land
surveying work.

1.1.1. Copies of such prevailing rate of pet diem wages are on flle at the City and are
available for Inspection to any_ interested party on request. Copies of the
prevailing rate of per diem wages also may be found at
http://www.dir.ca.gov/OPRL/DPreWageDetermlnation.htm. Contractor and Its
subcontractors shall post a copy of the prevailing rate of per diem wages
( determination at each job site and shall make them available to any interested
party upon request.

1.1.2. The wage rates determined by the DIR refer to expiration dates. If the published
wage rate does not refer to a predetermined wage rate to be paid after the
expiration date, then the published rate of wage shall be in effect for the life of
this Contract. If the published wage rate refers to a predetermined wage rate to
become effective upon expiration of the published wage rate and the
. predetermined wage rate is on file with the DIR, such predetermined wage rate
shall become effective on the date following the expiration date and shall apply
to this Contract In the same manner as if it had been published In said
publication. If the predetermined wage rate refers to one or more additional
expiration dates with additional predetermined wage rates, which expiration
dates occur during the life of this Contract, each successive predetermined
wage rate shall apply to this Contract on the date following the expiration date
of the previous wage rate. If the last of such predetermined· wage rates expires
during the life of this Contract, such wage rate shall apply to the balance of the
Contract.

1.2. Penalties for Violations. Contractor and its subcontractors shall comply with California
Labor Code section 1775 in the event a worker is paid less than the prevailing wage rate
for the work or craft in which the worker is employed. This shall be In addition to any
other applicable penalties allowed under Labor Code sections 1720 -1861.

1.3. Payroll Records. Contractor and Its subcontractors shall comp.ly with California Labor
 ( (

Code section 1776, which generally requires keeping accurate payroll records, verifying f. \
and certifying payroll records, and making them available for inspection. Contractor shall
require Jts subcontractors to also comply with section 1776. Contractor and Its
subcontractors shall submit weekly certified payroll records online via the City's web~
based Labor Compliance Program. Contractor is responsible for ensuring Its
subcontractors submit certified payroll records to the City.

.1.3.1. ·Contractor and their subcontractors shall also furnish records specified In
Labor Code section 1776 dlre.ctly to the Labor Commissioner in the manner
required by Labor Code section 1771.4.

1.4. Apprentices. Contractor and its subcontractors shall comply with California Labor Code
sections 1777.5, 1777.6 and 1777.7 concerning the employment and wages of apprentices.
Contractor Is held responsible for the compliance of their subcontractors with sections
1777.5, 1777.6 and 1777.7.

1.5. Working Hours. Contractor and their subcontractors shall comply with California Labor
Code sections 1810 through 1815, including but not limited to: (l) restrict working h6urs
on public works contracts to eight hours a day and forty hours a week, unless all hours
worked ln excess of 8 hours per day are compensated at not less than 11/z times the basic
rate of pay; and (ii) specify penalties to be imposed on contractors and subcontractors of
$25 per worker per day for each day the worker works more than 8 hours per day and 40
hours per week in violation of California Labor Code sect1ons1810 through 1815.

1.6. Required Provisions for Subcontracts. Contractor shall .include at a minimum a copy of
the following provisions In any contract they enter Into with a subcontractor: California
Labor Code sections 1771, 1771.1, 1775, 1776, 1777.5, 1810, 1813, 1815, 1860 and 1861.

1.7. Labor Code Section 1861 Certification. Contractor in accordance with California Labor
Code section 3700 is required to secure the payment of compensation of Its employees
and by signing this Contract, Contractor certifies that "I am aware of the provisions of
Section 3700 of the California Labor Code which require every employer to be insured
against liability for workers' compensation or to undertake self-insurance in accordance
with the provisions of that code, and I will comply with such provisions before
commen-cing the performance of the work of this Contract."

1.8. Labor Compliance Program. The City has its own Labor Compliance Program authorized
In August 2011 by the DIR. The City wlll withhold cont~act payments when payroll records
are delinquent or deemed Inadequate by the City or other governmental entity, or it has
been established after an Investigation by the City or other governmental entity that
underpayment(s) have occurred, For questions or assistance; please contact the City of
San Diego's Prevailing Wage Unit at
858-627-3200.

1.9. Contractor and Subcontractor Registration Requirements. This project is subject to

compliance monitoring and enforcement by the DIR. A contractor or subcontractor shall
not be qualified to bid on, be listed in a bid or proposal, subject to the requirements of
section 4104 of the Public Contract Code, or engage ln the performance of any contract
for public work, unless currently registered and qualified to perform public work pursuant ~ .·
·~ ....
 (

( to Labor Code section 1725.5 It is not a violation of this section for an unregistered
contractor to submit a bid that Is authorized by Section 7029.1 of the Business and
Professions code or by Section 10164 or 20103.5, of the Public Contract Code, provided
the contractor is registered to perform public work pursuant to Section 1725.5 at the time
the contract Is awarded.

1.9.1. A Contractor's inadvertent error In listing a subcontractor who is not registered

pursuant to Labor Code section 1725.5 in response to a soil citation shall not
be grounds for filing a bid protest or grounds for considering the bid non·
responsive provided that any of the following apply: (1) the subcontractor is
registered prior to bid opening; (2) within twenty-four hours after the bid
opening, the subcontractor is registered and has paid the penalty registration
fee specified in Labor Code section 1725.5; or (3) the subcontractor is replaced
by another registered subcontractor pursuant to Public Contract Code section
4107.

1.9.2. By ~ubmltting a bid or proposal to the City, Contractor is certifying that he or

she has verified that all subcontractors used on this public work project are
registered with the DIR in compliance with Labor Code sections 1771. 1 and
1725.5, and Contractor shall provide proof of registration for themselves and
all listed subcontractors to the City at the time of bid or proposal due 'date or
upon request.

1.10. Stop Order. For Contractor or its subcontractors engaging in the performance of any
public work contract without having been registered in violation of Labor Code sections
1725.5 or 1771.1, the Labor Commissioner shall issue and serve a stop order prohibiting
the use of the unregistered contractors or unregistered subcontractor(s) on ALL public
works until the unregistered contractor or unregistered subcontractor(s) Is registered .
. Failure to observe a stop order is a misdemeanor.

1.11. List of all Subcontractors. The Contractor shall provide the list of subcontractors
(regardless of tier), along with their DIR registration numbers, utilized on this Contract
prior to any work being performed; and the Contractor shall provide a complete list of
all subcontractors with each Invoice, Additionally, Contractor shall provide the City with a
.complete list of all subcontractors (regardle.ss of tier) utilized on this contract within ten
working days of the completion of the contract, along with their DIR registration numbers.
The City shall withhold final payment to Construction Management Professional until at
least thirty (30) days after this Information is provided to the City.
(1
. \.\
'·

,,
<

1.12. Exemptions for Small Projects. There are limited exemptions for Installation, alteration, {
demolition, or repair work done on prpjects of $25,000 or less. The Contractor shall still
comply with Labor Code sections 1720 et. seq. The only recognized exemptions are listed
below:

1.12.1. Registration. The Contractor will not be required to register with the DIR for
·small projects. (Labor Code section 1771. 1

1.12.2. Certified Payroll Records. The records required In Labor Code section 1776
shall be required to be kept and submitted to the City of San Diego, but will
not be required to be submitted· .online with the DIR .directly. The Contractor
will need to keep those records for at least three years following the
completion. of the Contract. (Labor Code section 1771.4).

1.12.3. List of all Subcontractors. The Contractor shall not be requl.red to hire only
registered subcontractors and is exempt from submitting the list of all
subcontractors that is required in section 4.20.11 above. (Labor code section
1773.3).. I
( .

EXHIBIT 2
 ( .(
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..
ORDINANCE NO, 10466 DEC 1 71970
(New Series)
ORDINANCE GMN'J.';I:NG TO SAN DIEGO GAS & ELECTRIC COMPANY,
ITS SUCCESSORS l\ND ASSIGNS, THE P.R.ANCHIS!j: ( 1) TO ust::,
FOR TP.AN$MIT'J;'ING 1\ND DISTRIBUTING l\ilJ.X:::'J}~Bi.g~~AfpUIT).m
FOR LIGHTING BUT FOR USE BY CONSUMERS FOR At-l'l 'AND ALL \
LAWPc,rL !>uRPosE:s oTHJ:;R TnAn Lra}1Tr?1a ;-- ALL POI.Es, wrREs, .
CONDUITS 1\ND APPURTT::NANCES WHICH l\IU'1 Ht')W OR MAY HERE-
AFTER BE LAWFULLY PL.7\CED AND HAINTJ\.PlED rn Tim STnBETS
WI'I'HIN THE CITY OF SAN DIEGO UNDER Tfll\T CP,9.TAIN FRAN-
CHISE OF GRANTEE. ACQUIRED. Pl]R,sUl\NT TQ SECTION 19 OF
l\R'I'ICLE XI OF THE CONSTITUTION OF TIIE STJ\.TE OF'
CALIFORilili,, AS. SAID S~CT!ON EXISTED E'RIOR TO ITS AMEND-
MENT ON OCTOBER 10, 1911, (2) TO CONSTRUCT, M.l\INTl\IN -
AUD USE IN 81\lD STIIBETS ALL POLES, WIHES, CONDUITS
AND APPURTEtlANCES \>llIENEVER AllD WHEREVER SAID CONSTI-
TUTIONAL FM!!C::JIISE IS JWT .NO\'l NOR SHALL HE~A.PTER DE
AVAI LADLE THE)'.EFOR, l'iE;CE:S Sl\lW TO TRAJ-IS~HT AND DIS-
TRll3UTf, J;::LECTRIC!TY' SUITEn FQR, 1\NP FOR USR BY CON-
SUMERS F'OR, 1\NY M!P AL. L Ll\WFUL PURPOSES 1 AND ( 3) TO
U'I'II,IZE $hID. POLES, WIRES; CONDUITS AND l\Pt'URTENANCES
IU SAID S'rB.f,E;':L'S FOR TMNSMIT'l'ING ELECTRICITY FOR
USE OUTSIDE Tl.IE BOUNDARIE!S OP THE CITY FOR ANY 71.?TD
llliL LAWFUL PURPOSES, AUD J;>l;tOVIDI!'JG TITE TERMS AND
CONDITIONS OF THE FRANCHISE SO OAANTED.

BE IT ORDAINED, by the Council Of The City of San Diego I

as follows:
S~ction 1. DE;FINITIONS
·Whenever in this ordinance the words or phrast;;!s
hereinafter in this section defined are used, they shall have
the respective meanings assigned to them in the following
definitions:

(a) 'l'he word \~Si°B~~;g,~~,l~) shall mean San Diego Gas &

Electric:: Company , i~s 1awful successors ahd assigns~·

(b)

Diego, a municipal corporation of the State of California,

in its present incorporated form· or in· any later reorganized,
consolidated, enlarged or reincornorated form:
'
I

(cl The \·1ord \l::~t,:~~'.§Kf{!\}.~jshall mean the public

freeways, highways, streets, ways, alleys and places
as the same now or may hereafter exist within the city 1
(dJ 'l'he phrase "p',9.i:BY§~V',!;tif'~:@~i~,{!E;{JffiJiiTf~'j~.n.~.'.~pplif'f.':,
"-']" ,,::·.'.;..-;,:;:4
: \t'.;:en'iiri.C:'ti's';;; shall mean poles, towers, supports, wires,
conductors, cables, guys, stubs, platforms, cr?ssarms,
braces, transformers, insulator~, conduits, duct"s., vaults,

1\41 cR0F1 l MEf) APR 2 8 1978.. .:

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manholes, meters, cut-outs, switches, communication

circuits, appliances, attachments, appurtenances, and,
without limitation to the foregoing, any other property
located or to be located in, upon, along, across,
under or over the streets of the City, and used or
useful in transmitting or distributing electricity,
sometimes otherwise referred to as "facilities" i

<e > 'l'h-e phras~ 't£9~~.~~~g~:~;j~fMn~~~!1J®ml'.\\~~}' shan

mean to construct, erect, install, operate, rnah1tain,
use, repair, relocate or replace poles, wires, conduits
and appurtenances thereto in, upon, along, across,
under or over the streets of the Cit~;

(f) The phrase (ia6Wli"tltut1BMfi.'!t£ri;incht;~.2r shall

mean the right acquired through .acceptance by Grantee
or its predecessor in esta.te of the offer contained in
the provisions of Section 19 of Article XI of the Con-
stitution of the State of Cal.i.fornia, as said Section
ex:isted prior to its amendm13nt on October .10, 19111
(g) The phrase 'l~~&TI·~·Jf,f~1~~:~B~~,!1 shall mean
all gross O!Jerati.119 revenues received by Grantee
from the sale oe electricity to Grantee's customers
with points of setvice within the corporate limits
of the City (including, but not limited to, saies
to military reserva,t.ions with points of service
within the City's corporate limits) which are credited
in Account Nos. 440, 442, 444, 445 and 446 of the
current Uniform System of Accounts of the Federal Power
commission as adopted by the California Public Utilities
co~nissio~ or similar superseding accounts, iess
uncol;J..ectible amounts and less any refunds or rebates
made by Grantee to such customers pursuant to California

Public Utilities Commission orders Ml CRcQsfll~ ED' APR 2S1978 Ii'

\t_

10466
-2-
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(h) ··· ..
shall mean all gross operating revenues received by
Grantee from the sale of electricity to Grantee's
customers within its entire service territory which :.>

are credited in Account Nos, 440, 442, 444; 445 and

446 of the current Uniform System o~ Accounts of the
Federal Power Commission as adopted by the California· •
Public Utilities Coinrnisdc;:m or similar superseding
accot,lrits, less Uncollectible amounts and leas any
refunds or rebates made·by Grantee to such customers
pursuant tp cal~fornia Public Utilities Commission
orders or decisions;
(i) The J?hrase ('!/,¥f168~h6'ri:·~i~t'i.i51• shall, unless
and until other\oiise modified by the California Public I
Utilities commission, mean a numerical ratio detel'ltlined !
by the proportion which the number of Grantee's electric
customers in the City bears to all of Grantee 1 s electric
II
customers throughout its entire electric service
territory, -I

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MIC·ROFILMEQ '•

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Section 2. PURPOSE
The franchise (1) to use, for transmitting antl diatri ...
buting electricity suited for lighting but for use by
consumers for any and all lawful purposes other than lighting 0
aJ.l polE:'!s, wires, conduits .and appurtenances which are tlOW

or may hereafter be lawfully placed and maintained in the

streets within City under the constitutional franchise of
Gt:antee, (2f to construct, mai"ntain and \\Be in said sti:eets
all poles, wir~s, 0.onduits and appu?:tenanoes whenever
and wherever the constitutional franchiae of Grantee is not
now nor shall here.after be available therefor, neoess ary
to transmit and distribute electricity auited for, and for
use by consumers fox:, "ny and all lawful pUr(?oaes, and ( 3) to
utilize said poles, wires, condl,lits and appurtenances in
aaid streets f.or transmitting el<O!ct:doity for use outside
the boundaries of City for any and all lawful purpose!? is (
hereby granted to ....JHm Die~o Gas & Eleotdc Company , its
suocessors and assigns.

' .

MJCROF llMED
'
APR 281978
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'10466
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Section 3 • z°F,~~'.i
The right, privilege and franchise, subject to each
and all of the terms and conditions contained in this
ordinance hereby is granted to San Diego Gas & Electric Company,
a corporation organized and existing under and by virtue
of the laws of the State of California, for the term of
:f;;;§y'',?t'9.};'.'.y~~.?=;-~:\ ~rorn and after the effective date hereof •

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. MICROFILM.ED APR 2s 19ra .. . .....

l~~t'. . . .., .19466.

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Section 4, CONSIDERATION
(a) The rights and privileges herein granted
are upon the express condition that Grantee, as con•
sideration therefor and as compensation for the use
of the streets of the City as herein authorizad and
permitted, shall pay each year to City in lawful
money of the united States, a sum equal to t!ii};l~,'.~~Es,, ·,:
q,~IJ,t d 3%.) ,,of· G.rantee ~.s ,;g).:,9,ffe,~::cl'.~9,~Ai:>.I:.:? q~i;:~.It9'·~iJ:.Qe:·:p~1ff'f:
ceding calendar year, or a fractional year, commencing
with the date of adoption of this ordinance by the City
council., for the first thirty (30) years of the term of
this franchise by the dates, in the manner, and on the
conditions as set forth in Section ~ hereof,
(b) For the last twenty (20) years of the term
of this franchise Grantee, as consideration and compensan
tion for the rights and privileges herein granted and
for the use of the streets of the City as herein authorized
and permitted, shail pay each year to City in lawful I.
money of the United States a sum equal to an amount to be
determined as set forth below of Grantee's gross receipts
during the preceding calendar year, or a fractional year,
for the ~emainder of the term of this franchise by the
dates, in the manner and on the conditions as set forth

in section 5 hereof.
(cl Determination of the amount to be paid as
set forth in Section 4 (b) above shall be made by good
faith negotiation between city and Grantee commencing
not less than six (6) months prior to the expiration of
the first thirty (30) year period, In the event that at
the conclusion of the first thirty (30) year period
said good faith negotiation does not result in a deter-
/ mination of the amount to be paid by Grantee during the

MICROFILMED (
APR 281978. 10466
-6- .....
 ;i.,.
. .. ,.. ., ;..
I I• o
,•
I '

( last:: twenty (20) years (or 19 yeara·, 6 mon~ha, as the

case may be) of the term of this franchise, then this'·
···:·.i .. : l

question (and no other) shall be aubmi ttecl to binding

arbitration as hereinafter set forth 1 provide¢! however
that no later than fifteen (15) days prior to the end
of the first thirty (30) year period the parties may
.mutually agree to extend the time for said good faith
negotiation for an additional six (6) months if they so~

desire, during which time Grantee shall continue to pay

a sum equal to three percent (3%) of Grantee's gross
receipts as consideration for the rights and privileges
herein granted, Unless City and Grantee mutually agree
in writing to a modification prior to the conclusion of
the first thirty (30) year period (or at the conclusion I
•'

of the additional six (6) month period as provided for

above) then the determination of the number of arbi•

trators 1 the time and mode of their selection, and the
rules of practice and procedure to be followed shall be
as set fQrth herein.
(d) \Uthin thirty (30) days after the end of the
first thirty (30) year period or within thirty (30) days
after the six (6) month extension provided for above, as
·the case may be, Grantee and City shall each appoint a
person to serve as an arbitrator and shall give written
notice to the other party of. such appointment.
(e) 'l'he two l?erso1\s so appointed. shall then agree
ui.:ion and secure a third arbitrator. If the third arbi·
trator should not be secuted within thirty (30) days from
the selection of the arbitrators by Grantee and City
respectively, then upon application in writing by either :·
City or Grantee to the Chief Justice of.the California I \111

'I

State Supreme Court, said Chief Justioe shall be empowered

to appoint a third arbitrator, No person shall be
M'ICROFILMED 10
. :· . . · ·. ::.
APR 28 1978 1MGfl ,.:, • •::·... : .:,:.'.

\ ) . ·.: >;. ~{(; ;,;,·. :.·:.;i~ '/:;,,}{:\

G*•&•,
 ( ,,'..
. ' 11 ,•'

eligible for appointment by Baid Chief Justicse who

is an officer or employee of City or Grantee, or a f.·
shareholder of. Grantee,
(f) ~he arbitrators so appointed shall hear
evidence submitted by both City and Grantee.and may
oall fot additional information, which additional
information City or Grantee shall furnish to the
ei,tent feasible. An award, decision or determination
I
i

in writing and signed by a majority of the arbitrators

I
I
i
I
shall be made within sixty (60) days after the aelec• I
!

tion of the third arbitrator and shall be conclusive

with respect to the issue submitted and shall be binding
upon both City and Grantee,
(g) Except as otheJ:Wise provided in this section,
the arbitration shall be governed by the rules of
practice and procedure of the American Arbitration
Aasooiation from time to time in foroe, except that, if
such rules and praotice as herein modified shall con~

flict with the California Code of civil Procedure or any

other provision of California law then in force, such
California rules and provisions shall govern. This
submi.sgion and agreement to arbitrate shall be
specifically enforceable. The award of the arbitrators
or a majority of them upon the question submitted to
them hereunder shall be final and binding upon the
parties to the extent and in the manner provided by the
Cal.ifornia Code of Civil Procedure,
(h) Each party sh~ll bear the fee and personal
expenses of the arbitrator appointed by it together -with
the fees and expenses of its own counsel and of· its own
witnesses. ~ll other costs and expenses of the arbitra-
tion, including the coat ancl expense incurred by reason
of selection of the third arbitrator as hereinabove
provided; shall be borne equally by City and Grantee •.
MIC R0F1 l ME(l>4GG ..
APR 28·1970 · · .
'••,•,I ·.:'•:
 (
'· ... •.

Section s. REPORTS, DATES OF PAYMENT TO CITY, AU~lTS

(a) on or before the 15th day of Febru~FY of eaoh

calendar year during the term of this franchise and
forty~five (45) days after the expiration of the term
of this franchise, Grantee shall file with the City
clerk Of City, the original. and with the Auditor of
City, one oopy of a statement showing the <Jross receipts
during the preceding calendar year or fractional
calendar year,
(b) Within ten (10) days after the filing of the
statement required to be filed on or before the 15th
day of February 1971, Grantee shall pay to the City
Treasurer the money herein required to be paid by
Grantee to City upon the basis of the· data set forth
in said statement.
{o) Thereafter, no later than the 25th day of
( May, the 25th day of August and the 25th day of
November of each calendar year during the term of this
franchise Grantee shall pay to the said City Treasuz:-er
one-fourth (1/4) of the money herein required to be
paid by Grantee to City upon the basis of the data set
forth in the statement required by Section 5(a) hereof,
By this method of payment it is contemplated and under~

stood that Grantee is in effect paying the money herein

required to be paid by Grantee to City under this sub~

section on the basis of groe1. receipts for the preceding

calendar y7ar and that an adjustment shall be made as
more fully set forth in Section 5(d) hereof,
(d) Within ten (10) days after the filin~ of the
statement required by Section 5(a) hereof, Grantee
shall pay to the said City Treasurer, or receive as a
refund from the City, as the case may be, a sum of money

MICROFll MED
APR ls 1§7a
-9- 10466
 ... ( .. •, .... ( ..... ..
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equal to the difference between the sum of the payments (.'

of money ma.de in accol:'dance with Section S(o) hel:'eof
a.nd the annual payment of money herein requii:'ed to
be paid by Grantee to City upon the basis of the data
set fol:'th in said statement.
(e) The City 1\uditol:', or any qualif.ie!ld person
designated by the City, at any reasonable time during
business hours 1 may make examination at Grantee's
office or. offices, of its books and records, germane
to and for the purpose of verifying tho data set forth
in the statement requil:;'.'ed by Section 5 (a) hceraof,
(f) All .books and records subject to examination
by city Auditox-, or qualified parson designated by city,
shall be kept within the County of Sa.n Di.ego, or in
such other pl.ace as the reasonable convenience of
Grantee may re.quire; and in the event that it
beoomc:rn necessary ·for said City ~uditor, or any
(
l:'epresentative designated by the City to ma.ke such
examination at any place other than within tho County,
then, in that event, all increased coats and expenses
to City necessary o:.: incident to such e~amination

and resultin~ ft:om auch books ant1 records not being

available within the County, shall be paid City by
Grantee on demand,
(g) Grantee shall file with the City Manage:i:
a copy of its annual report to the cali.fornia Puolio
Utilities Commission, or its successor in authorit:oh
as soon as practicable af te~ the original of said
report has been filed with said Cc:>mmission, or its
successor in autho~ity.

..
,,,... MICROFILMED
(.·
APR 28 1978
~~~,.
'•
'••r
1.()16() ··...
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ii~· ' ,, ·.
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.'· ·.·· ... "' .. '• ~ .. · ,.... '!"\:-"'.··· ,... ,...., .. ·) r·'.:-.' \•. l:·"'f.')'J\'·..:·\\\~:l} ....~~· ..r,.:.·.ft . ·Mr·~,A~t·
.;. .. . . ·.· ". · ·~ · : . , .:,,~~'.!:::7-,'F·;;:1::\t::·
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,. '• ·. '. . .•( :

..
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'
·. '.!. . . ·;·. :~.:·:"·:·.·,)_);:
(h) In the event Grantee fails to make the
·.' . ·. ::...: :1' : :': .'.:. ', ':~
payments for this franohine on or before the dates •I
.
·' ' ....,
,•

due ae hereinabove provided, Grantee shall pay as

additional consideration both of the following amounts= '1.

(1) A sum of money equal to two percent

( 2111 )- of the amount due. · This amount h required
in order to defray those add:l.t:ional expenses and
¢0Sts incurred by City by reason of the delinquent
payment including, but not limited to, the cost
of administering, accounting and oolleoting said
delinquent payment and the cost to City of
postponing services and proje~ts neaesaitatod by
the delay in receiving revenue,
(2) A sum cf money equal to one percent
(1%) of the amount due per month ao interest and
(
for loss of use of the money due.

,,

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·.,',>,:.·,·,·..•·.• · •... .·::,·,.',. •. •. '·,.',·.;•. .: .....~t ~··: ,•' ~., 1 , . '
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Section 6. COMl?Lil\NC!!: WITI! LAWS
'•. 11.11 facilities O:t:' equipment of G:i;antee that Grantee
shall. construct, maintain and use or i:emove, pursuant to
. the pr.ovisions of the franchise granted herein shall be
accomplished in accordance with the ordinances, rules
and regulations of City now or as hereafter adopted or
ptescribed, and· such rules or regulations as are promul-
gated under state J.aw, or orders of the Public Utilities
commission or other govetnmental authority having
jur·isdiction in the premises.

0
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MICROFILMED

'" .. , ..... •'. ,, ... /::,

;• ...
APR 2B 1979

: ....:.
 (
~· : ·~· ~. . .· ~· '.:' ' . ' •. ~ ....
•
'
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· ..

Section 7 • ~P~1ttti.fJ'.J;'Rb~:~~ '~J~J}S!,W~S~S.r;;,

.,,,-,·- -.
~ ~·.<:- ~·:)-::-i;

Grantee is herewith charged with the responsibility

of cooperating with City in preparing :~?,1n?'.f\~_'{~1;'~2'.t"(GEf's~}

')l~W~i:ti~.t~.a:tiy.~·:'.'~~.~~F~~·~' .\·~!\icJi.: ~~¥11 govei~.:~he '.~~:st_aJ1~{ ~ ;,
<• l ~ ~ ;a ~f ~ ~ ~ I .,_, < ..! ,

.;;~,igi,:i,:t;~i5:]Zi~fil~.v:~t;£51t{gJ;:'~Wf'~~:(!§%£K9J~{~'!'~l?·'iifi';;t:lfi&'i;i~t'i'eet'iP.'/
f!.K::cS:M?Yi:Nffi'i~h\:!\>ff~'~i'fiW&Tu~~v;;S}jUt:L·\ijqt/2h·~·;nhli~&d'.j~qJ].}
cathodic protection practices.
\.1ith the first full calendar year of the franchise granted -
f9~q.~:ftf~b.lf:;_~;J;'ti~'iqboi:nmencing
I
·1
i
heroin, it is to be the joint responsibility of Grantee
ahd .City to review and update such administrative practices.
II
ct~9..Fh ::ar:1iti:f¢'£:~::&Jr.a·1~r.C'l~gy~?,~&,~.'l~.~f:?;;,~~.~.:,:~t!fi:i';}~K~'i~s:!!~Y''f:f0If?Eaptife'i"1
;-~~y;±,;~m.:<1~~nfiliUW.l~~~,tl$.'i!~K·.~~}ftlilh'i~V€f~HV~!~.f~8£I.'6Glfr.::f}jy'~''K'•·'1i

:~:;.~~:;·~;~~~5i~~~~i~~::~·~;~~~~~~·~,~~~~:~:~~~'~:~~~:·:~'::::~::;:::::~~:i( I
party; provided thut said administrative practices and I
the terms and conditions thereof shall be at all times
Sl,lbject to approval of the City Council as E:!Xp:r:essed by
appropriate legislative action.

Fol.lowing the preparation of said manual, ancl its

approval by the city council, :i[.tf1,lg.il'.~'.tr:.;;g6~'i@~n!f;f@~l~P'~H:'a~'lt~{~ •f\

~~~;~ffi,;~l~il%~fl;~h!If~Ki~.~nf~~Jl1'.123:~;~~~~;~;;;i1!i'!rnIJ;'~l~~J::gff'Ci~if),[i~~~¥1B~~~.;~~(~ll~
q~f~;Th~,n:m/:'~Jl:#.~.E.iA~t'J'.~§:'.fJ~'iJ'il~ti~.~,)~t,X~1~l'.~,T~s>:t;l,)2A~~;~;,\

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MICROFILMED .··
APR 2 81978 :10466 ... ...-:: ..::.:' .
-13- .
; •· '•I'

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 ,( ;·""
......

... ,. . '

('
Section B. CITY RESERVED POWERS

(a) City reserves the right for itself to lay,

construct, erect, install, use, operate, repctir,
replace, remove, relocate, regrade or maintain below
surface or above ·surface improvements of any type
or ~escription in, upon, along, across, under or
over the streets of the City. City further reserves
the right to relocate, remove, vacate or replace
the streets themse 1 ves. \1;;!,E,~'l~Xri~S~~i~!'.Y,\'~~~i~l~~·;:}?
R{"·~'.M.·1;~!,f!lW.~~'.f!Q·if~~·xi~~~fv~!:';\~.4'.9G~s·;:c2fff!):2'.t~1'.!!i..tt;.;t:i \:
\~~xx~z~~~;v:11~~'¥"~'.~,¥~(;~?.~~~~f:-~''ff~:in.a·.ii'PJ?B;:·~~~~'~'??-~.~;ff!,~;'\1L··;.1
Grantee constructed, maintained and used pursuant
to the provisions of the fJ:anchise granted hereby,
whether previously constructed, mi!intained and used
or not, G:tat1:t~~;~/''fi~tiY2Jf~·fi6tl~f''b'B~t~.t;~·:;;~j(f;~fi~~ •ioN

,~i!~:iii~~J;~~~J;:E:!::~:j
~isii~~~~~W~tWAq;'~ti't~~~ii~iri~{t'.IJ~'.i\!e;t~~;€'.!l~~s;~i}li'fi?i;cf"~~!j/t~!~~7
',§fi.{~Ji'U'f~fu~'ti''~:~';~if~.'@gj:i'£i'H:~i~~:f'.) Gr an te!3 sh a ii proceed
promptly to'cornpi.ete such required work.
(b) Irrespective of any other provision of
this ordinance, Grantee's right to qonstruct, main-
tain and use, OJ: rerrove poles, wires, conduits, and
appurtenances thereto shall be subject at all times
to the right of the City, in the exercise of its
police power, to require the removal or relocation,
to either overhead or underground locations, of said
poles, wires, conduits and appurtenances thereto at
the sole cpst and expense of Grantee.

M\CFOftLMEO APR 28 1978

10466
-14-
.... ....... ;
 ..
.
' .

Seotion 9. UNDERGROUNDlNG OF FACILITIES

(a) Presently, Grantee is engaged in a progtam
of converting to underground certain of its facilities
in accordance with Decision No. 73078 of the California
Public Utilities commission. ~t this time, said
decision requires Grantee to budget prior to the end of
each calendar year certain sums of money· for said pro-
gram for the next succeeding year and allocate these
sums to undergrounding projeots in the various govern-
mental jurisdictions throughout Grantee's entire electric
service territory on the basis of the number of electric
customers in each governmental jurisdiction. Grantee
is willing to increase the amounts of money budgeted for
said program and as a portion of the consideration for
the granting of the rights and privileges oontained in
this franchise shall acoompliah this in the following
( manner.
" (bl Grantee shall apply annually to the California
Public Utilities Commission for authority to budget
amounts of money for the undergrounding of existing
overhead facilities in the City. In its application for
calendar year 1971 Grantee shall apply to increase the
amounts of ·money to be budgeted for such undergrounding
in the City from the amount budgeted for 1970 by an
amount equivalent to one-half of one percent (l/2%) of
its total system gross receipts for the calendar year
preceding 1the year of application (i.e., 196!}) multiplied
by the allocation ratio. Thereafter Grantee shall
\
li'
... increase eaoh year the amount so applied for by oneNhalf
i
percent (l/2%) of its total system gross receipts for
the calendar year preceding the year of application

'MICROF ilMED ~PR 2s 1978

-15-
10466 ..

. ''•
 .( . ·:·. ·.1.'1.,,
',
.. ·' '. '•"." ··!"' ...•• :. · •• ·,

..

multiplied by the allocation ratio until such budgeted

amounts of. rooney for undergrounding in the City reach a
sum ~1hioh is equal to four and one-half percent (4 1/2%)
of said total system gross receipt11 multiplied by the
allocation ratio. Thereafter Grantee shall continut:! to
apply to budget an arnount of money equal to four and one•
half percent: (4 l/2%) of said total system gross rece.ieta
'
multiplied by the allocation ratio for such under• ·
grounding conversion,
(c) If the amounts ao bµdgeted for any calend~r

year are not expended in that calendar yeat or the next

two succeeding calendar yearn following the budgeting !
. !
thereof because of forces beyond the control of Grantee,
then in that event and that event only Grantee may
reallocate the unexpended amounts of noney, in its
piam:etion, for any other lawful purt?ose.
(d) Thia section shall not be deemed in any way to
be an impairment of City's rights as more particularly
set forth in section 8 of this ordinance. Nothing con-
tained herein is intended to prevent Grantee trom
informing City and the California Public Utilities
Comuission of then existing or foreseeable economic con-
ditions or other factors whioh in the opinion of Grantee
make unwise the granting· in whole or in part, of the
particular annual application,
(e) This section is intended only to be a meanure
of a portion of the consideration to be paid by'Grantee
to City for the rights and privileges granted herein
and therefore it does not create or confer any rights
or obligations to any one other than City or Grantee,

MlCROF1lMEf}PR281978
10466
···1·
.. 16- "' ,\
•I ' '•' '• . .·~ ·..'; .:.: :. ·,,, .·~·
 . ': ""' (_ .. "' ': '. ::·?::_:;:·:\''"'':''.\·'';,','.:::·~:.'>:;
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'' ...
' '

,.·
( Section lO' HOLD lll\RMiil!lSS

Grantee of the franchise granted hereby ~hall indemnify,

save and hold harmless, City and any officers nnd employees
thereof against and from all damages, judgments, decrees,
costs and expenditur.es which ·city, or such officer or
employee, may suffer, or whioh may be recovered from, Ol:'

obtainahle against City, or such officer or employee, for,

or by reason of,_ or growing out of or resulting from the
exercising by Grantee of any or all of the rights or
privileges granted hereby, or by reason of any act or
acts of Grantee or its servants or agents in exercising
the franchise granted hereby, and Grantee shall defend any
suj,t that may be instituted against City, or any officer
or employee thereof, by reason of or growing out of or
resulting from the exercise by Grantee of any or all of the
rights or privileges granted hereby, or by reason of any

( act or acts of Grantee, or its servants or agents, in

exercising the franchise granted hereby,

•',

' .. •'

·:'
r:

...t':
MICR0FI LMED fl.PR 2~ 197~ .
.,' ...
:10466. . . ~

."
 .. ..
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..
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."' ~
'',
I • I ~ '

Section ll. lU!lPAIR COSTS

Grantee ahal.l pay to City on demand the cost ,of all
repairs to City property rnade necessary by any of the
operations of Grantee under· the fx-anoh.i.ae granted hereby,
provided however that Grantee may make repairs to streets,
sidewalks 1 curbs and gutters itaelf at its ol'tn cost ill

accordance with Qity specifications if the same can be

done without undue inconvenience to the public use of the
stteets.

. ',

...

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., .

... '• .. "

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M R0F\l MED APR ~ ~~~ :·>81
(•

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~

104f>G
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(
Section 12. FORFEITURE
This franchise is granted upon each and every condition
herein contained, and shall ever be strictly construed against
Grantee. Nothing shall pass by the franchise granted hereby
to Grantee unless it be granted in plain and unambiguous
terms. Each of said conditions is a material and essential
condition to the granting of the franchise.
·(,t,~~J~r;,i11~~1~.~:!:7:::;9;t;;,,:k.'JiJy'~l,l.···,:~9'' ··~99:rnt31Y:\l~.~:ri;~ijy;,:,9~·1·~£HEi 1:i~f!tra;;t"!:C¥.!l~r;'~::, •.•·,·

v~;::;~~=~~:::i:~:::i:~~~!i~~i[~::~tr:~~~~;~~~:''~j'''"
~~l~E~I.ft,~~"lr~%~\.'.g$Jn~~i;i.~:iR¥Lt:n§;•.~.·.gn;y 1 J1~~·l(ey~1;;-rnr?:re9¥~:iJ.~ti~.~:rj~~F~'~

-~~~~~i:~;u~!,~~~~~~r~~""~i:i~~~~it~·:.~·i~t;·i~t;~:~::~~t~~~:.r!:~~;~~::.;~': ·
''<'ili~',?i3L~hf:'~;;~£iit:Li~lj~/~\{"J··'fi:a~6li.i~'~''~f~Wf.kh 'i'd\:a-na'W.Jy;•.1·:£fffrf''"'

,;~:;::~~!!~;~~~:~~~~!i:i~!!~~~~:~~~~~~~~47;;fi~~,U~~n
and immediately, Grantee shall surrender all rights and
privileges in and to the franchise grantep hereby. No pro-
vision herein made for the purpose of securing the enforcement
of the terms and conditions of the franchise grarite~ hereby
shall be deemed an exclusive remedy or to afford the exclusive
procedure for the enforcement of said terms and conditions,
but the remedies and procedure outlined herein or provided,
including forfeiture, shall be deemed to be cumulative,

MlCROFt LM En A~R 281978

-19- '· 1046f>
P·ii
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• •, 111
01
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Seotion 13. 'ACQUISITIOU AND VALUATION ' ', ·, .: . l~.~

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Nothing in this ordinance or in the franohiae granted· · · . : '"
•,'•'

hereby shall be construed as in any way impa.i.ring City's

.: .\ .• ·:\

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··:
rights to aoquire property of Grantee through t~e

exercise of City's power of eminent domain ot through

voluntary agreement betwel:ln City and Grantee. In. the event
tha.t City chooses to exercise its power of eminent domain, .
it shall do so ~n accordance with the procedures provid~d .•
'
'
by the general law of the State of California for the oon~ ·

demnation of public utility property. 'l'he valuation

of suoh property for condemnation purposes shall be made
in accordance with such general law.

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exJ?enses incurred by it in connection with the granting
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thereof; such payment to be made within thirty
, ... . . . ·:
after City shall have furnished Grantee with a wdtten ,•. . ... ::1' .
statement of suoh expenses. .".:".~;·.,·'..'::.'.
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section ·15, AUTHOR!~~ FOR GRANT ,•. ,•. r::-·
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,;·. Notwithstanding any other provisions oontai.nea. herei~"~
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~.: this franchise is granted' solely and exolusiveiy under
:;~:· ,' . Sections- 103, lO 3.1, 104 and 105 of: the Charter of. The' Ci.ty
of San Diego and under no other authority. ·,;
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'.t'his grant of f~anchiae and authority shall' be ahd •, • i' ••
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is subject to the right of the maj.o:r:ity of the electors .. \
of City voting at any election at any time thereafter to
repeal, change or modify the grant, and such right is
hereby expressly reserved to said electors1 and it is
...
expressly agreed that at any election held in City a
:.'· majority of the electo?:s of City voting at said election·
shall have the right to repeal, change or modify the
. te:i;ms of this franchise and the authority granted
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\• hareunder.
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·MICROFtlMED·
APR 28·1978 '. . .
1.~66
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·~ Grantee shall file and maintain a faithful
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perf~r~a~ce
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·"~·· . ' bond in favor of the City in the 'sum o'f. Fiv~' H·und.·~ed. Thbtiaand "
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.'· Dollars ($500,000) to guarantee that Grantee shall well and
truly observe, fulfill and perform each and every term and
,• :
.condition of the franchise herein granted. In case of any
breach of any· condition of the franchise, any amount of the -
sum made in the bond up to the whole thereof, may be receivable
; . from the principal and ~ureties upon said bond to compensate
0

City for any damages it may suffer by reason of such breach.

Said bond shall be acknowledged by Grantee·as principal and

t= .. '
by a corporation licensed by the Insurance Commissioner of
t. the state of California to transact the business of a fidelity
and surety insurance company as surety.
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Passed nnd 11doptod by tho Council of Tho Clty of San Dingo on ................................................ OEC . t. .'l.19'flJ. ,'
·· by the following vote: '
Councilmen Yens Nays IlKcused Absent
,.... Helen Cobb ur 0 0 0

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.I• Snm 1', Loftin D 0
Q!\... IJ'7 D
~
wt·:· Henry L. Lnndc D D
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Cj Leon L, Willlnms 0 0 0
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IJ..J ~·. g Floyd I.., Morrow D aY
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LLJ :.: w ~!,;!
Cl
Bob Mnrtlnct D
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Cl ;;;::: Allen Jlhch d 0 D
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C.· ~ Mike Schncfor 0 D 0
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ml!. Mayor Frnnk Cur1nn 0 D D

AUTllEN'l'lCA'l'EO 13Y:

.............................. .J.2.~,.N,:. ~.9..S~.~.\?.9..P...................................

Ctty Clark of 'l'ho Cit)' of Snn Diego, Cntllornlo, ·
(Soni)

lly .. ~ .....'21. . ~,g.i.;/.llcputy,

I HERIWY CERTlF\' thnt the Coregoln& ordinance wns not r!nnt!y passed nnti!twelvo cnlcndar dAys had
clopsocl between tho day of Its Introduction and tho dny of Its fhrnl pnssoge, to wlt, on
f'
,.

( . .......................O..~.C.........a. .1.910........................... , nna on P.~.Q.J. .7..J.azo............................................. .

......................................
~~~nl!..,rendlnf~n+~.
I FURTHER CHRTIFY that the rendlng of snld ordlnnnce Jn Cull wn9 dispensed wltb by n vore of not
foss than n mnJoricy ofthe membors elected to the Councll 1 and thnt there was nvailnble forthe consideration
of each member of the Councll and the public prior to the dny ol Its pnssnge a wdmin or 1>rlnted co1>y of
snid ordlnnnce, ...........:
·'
..................................J..9.!.!.\':! ...l~.9..~!'f.W.9.9.P. ...................................... •
City Clark ol Tho City ol Snn nloso, Cntlforn!n,
(Soni)

lly :.... ~ ..... '?.!.(....~. ,Deputy,

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Office of the City Clark, Snn Diego,, Callfomln

\•

FOfll.I CC.t255·A 11·701

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• O!TY OF SAN DIEGO ' ' •' I
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202 C Street ,: \.• ! 1'· I

Community Concourse
S~p Diege, CQJ.ifornia
I'•,·, I
! I

CERTIFICATE OF PUBLICATION

ORDINANCE GRANTHIG TO SAU DIEGO GAS & ELIWTRI

COMPANY, rr.ra SUCC~SSORS AND ~SSIGNS, ECT. .

·.
" {
'I \
I, Patricia M. Apples till hormby c•rtlfv
that The Daily Tront11;rlpt 111 a dolly newapopar of oenoral
clrcuh:ition within the provl1.lona of the Governm•nt Cod• of
tho Stotct of Callfornlo, prlnt«1d and published in the City of
San Diego, Count! of San Dle,po, State of Callfornlo; thot
I am the princ pal olel'!G,f said newspopu; that th•

ORD!NAl'lCE NO• 1 Ql.+66 (NEW SimIES)

..
lo a true and correct copy of which thl 1 certlfl cote Is 011noxod
.. was pub! hhed In sold n.,wspaper on
\

'·
..~·
' ' Dt~cember 25, 1970
.. I c:ortlfv vndar penalty of p•rlury that tho for•ooing Is
J '. true and e et, at San Otego, Collfornla, on
...
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. {g) T1111 11/ira$e "IJ'!>M roNhll!I" . ,
1111~11 111~m1 n 1 11rMa Q\ll!r"1ln11t rw· ,
ot1UG~ tlll'!!Wml h,1• ora nteo t1·~m the
imla or a1ar1rlrlw to 0 ~nn\01> ~ <•11i;.
io111u1·s w lh ti n111 of ~or1·1~ wit Jn
thu 1·01·po1•hte ~ mlr• or tlio· ~Jt1• ft11.
<>lurllng, lllil Ml Hmltccl to, H\1los, to
mlll\nr)' 1·11fil'rl'nlion~ wl\h J>n nt« u.r
r 'WI' 1·~ w lhh1 U1¢ Cit~· n r•orpot•nto
hnll;) · wl\le>h nro cro1ll\Q1l In A~·
MUnt ll:o~, 4 IO, •H2. 4·1 , 4•1.1 01111
4·H! (Jf Ille c•urront Ur11rom1 !lv~l~tn
.or J\N.'llljlltn ol tho Po1Jornl J>ower
C<llll{nl~~IOtl ~~ ~ll~fllllll >V tllo Cpll•
fnrn 11 T'Ullll1• Uti llM Com111lu~1t1n
or • mll11r su1>e1•so ntr n~rountn, lns~
1111<'rilli>ctlhh1 1111101111\a nw1 •lr.> fin nny
''tr11n1la or rohntun nin11u h~· 0 tMltPO
to '\'<•ll r.uf.tomnrtt ..1mr.sunut .to. Coll·
£1>rn n r11hll<• t 'tllltles comm1aulon
orrler6 or dr.«lslrm•:
CM 'l'h~ f>h.ritso "'ltllnl Ry1tem 11roM
rer~Jpt•" ~Hill ll1Mn all' .1n·o~~ imor•
ntlnir rc\'en110~ rC.l'Qil'O<I W 01•nnti:ie
rmm the ~nJo or t'IN•tr!~lty to Grnn·
t~u·~ <iu.•101mr,; w!thlll It• anti~
~·w~·!r11
tQrVJlnr,v whl<'h,ora ~rodlted
Ill Art'OUtlt ~o~, •110, ·1~!!, 444.o H.~
otld •H!I or tho cui-ront l.'nlfnrm IW.,
tutn of At•(•o11n1a or the F'~drrnl I'll~•
gr OJtnllllsHIM on. "llontorl bf \oil
cnlllornlo 1'111111<' Ut ltloR ·co1111nl11-o
Rlctl ·nr ~lmllnr ~llJIQl'h~dlllR n<1c11unt*•
Je1a unr•ollr<:llhlu Mlflllll s llnd 'li!M
011~· NfUnd~. or rul>RlOR mmte by
Gl'llhlN• to ff\IQJ\ {'n~l01)101'R lJIJr&!IPllt
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mlR~lon ordorg or <lm•IHlnttu:
m The 111u·11$ll "111lor•rt1011. rn.tto"
$hall, unlc>lis 11111/ un)I 1Jtl1rr11·1~1J
tno<lln~<l 11~· th11 C'llllt<irnln .l'Ull I.<!
lltllllle~ C1>111mln.~l.cn, 1Mnll n 1111mo1"
Jc-111 ·l'lllln 11~1m111n"cd IJY llm 11ro1mr,·
tloh''ll'h!l'h tlw m1mhcr l\f Ornnteo R
lilal·1r1" t<11Htomer~ 11 tho .ctt~ 1ion1·11
l'o n of OrnrJIQO'R o1eN1•lc •'llttl.omnr~
thrnturhout ltK entlr!l .cloctl'lo sorvlco
~t;,r;;\~?ri1!. ,,,t:.nrosr.
'l'M rrn111·11fM I 1> to mo, ror trn11a.
mlttln'1 hntl dlHlrlb11lhl1C el~rlJ'lclW
MlllM for llllhtlnll bltL 'for 11~11 hv con•
Eumera. ror nnv ·nn!l lljl tuwftll 11 111~
po~m; other t hnn I t'!ht llJ<, n I po 1 e~,
wtr~~. t·o111luUq in1tl OIJJ>Ut'll'Mtlt'et
whil'h ore now or 11l11'' horP.nflet' be
l11wf111!~·11l11rQ.(J nnd molnlu\ltQtl In the
HM¢t.u. within Cll)' un11cr th() '<J11.nstlt11·
tl<mnl rrnt.whlqo of tlrn11tno, <~) 1Q
~Qllslrurt, t11nt111nln· nnrl unn Ill £nld
~11'<•N• nl! Jl<Jl~R wh•cs, 1•011d11ltq nlllJ
no.1>Ul'l.<thl/l\l'l'K 11·1101101'1'1' n111l whuro\•Qr
tho mnRt htll11nn. frntll'l\11\~ <lt GrontPO
l• ·Mt. rww nor ttlml! 1.1e1•c11ltQr ho n1·1ru.-·
nh!P. !!10.ror~r. noN•Mnr,1• to lrnllFmH
nn1I 111-trlhu.U! r•ltl'lr!t•ltY Rllltocl fm•,.nn<l
(JI• UAU h~· ('t>moUIMI·~ fOl'. 111111 n11il n.11
[nwfu.I r1uri10~0~. nnrl (II) to ullHio An!<
poleP, wlrr•. ron1!11lw nllll n1m11r•illl•
nnrn~ In Kuhl Hli'<1r1tH to1• h•1111wtn tflnl\'
~IN·tr!r·lfy r01· 11Hc ouU1frlo tho hou1l-
<1nrle~. or C!lt~· ror n11:v 111111 nn lnwrul
1111r1W1r.<>q ls h~r••h~" 11rnnto1l ti) f!H11
lil<'~o. ·011•. & f:Jl'rll'll' l.'m111111h~'t lu
KUN•Qfi"<lrH nti<l ""'lfll\R.
l'il"et!on ll. 'rJ·:nM
'I'h<1 rl11ht, ul'f1·ll~1111 ottrl rronrhlM.
$1th!nN to anf·l1 unrl nll of tho t~r111R
nn!l mn11lllonF r·ontl\hll'rl hi thhr nrtll•
rinnr,. hPP/tb~· I• 11rn11l11tJ to Hn11 11l1•u11
l'lAff & •:lrNl'lr l'omnnii~·, n Nirr>nrntlon
nr11nnl?.orl nml o~JHtlmt 11111lf1.r nh<l hV
\•Ir.tut> of Illa In\\'.~ Of tlM RtOIP of C[lll•
fornfo. fn1• t 10 t~thl nr flt.1y C.10)
~onr~ rro111 t!llll nft(!I' tho crraoll\'(! unto
~~~flm1 •I, CO':StDl;;rtA'I'ro~
en> 'rho 1·lf!hl~ 01111 t>rMlcflOR lrar~·
In 111•1>11lor1 11rr> 11J>on . thC' 11x11rat:'Jl
rnmu11011 tllnt oro11toa, nA <1t.11lHl1Hn•n·
lion the~ofl!I' nnfl nn M1\H1Q11nntlon
for thu 11nn "{:the Rl/'MI~ ot lhll CllV
np \\eral11 n11 horl1.01 1111t! pa1•mllt~d.
n11n poy eo1• 1 1·an1· to City h1 1nwf11l
lnPnr~• of lhll tJnftPd f:lt11toq, I) sum
M1Unl \o three JlDl'<'~llt (R'<) or
ClrnnM o n r:irr~~ l'O('OIJll4 during tho
ro~Nl 1n11 ~nlQ111111r )'llnr, 01•
nlonnl frnc·
1•nm111~n~111u wll .1 tho
'l
lnh1 llfvonr,
I 111hlptlo11 or t HR or1!1.nnnco
>hVI lh1! C:,tY C:n\lllrll\ for tho f l'Rt
( t. rt~· 1no' y~Tirll M t 10 Jcrm ot this
rr1111chl1111 b:V t i1 dnt«is. 11 th11 tnlln·
·,I
'1 ro Rmtt 1~!\iei~1>n11~ ~Plli1;1on11
1 nK Het·

'•,
(

~
.. CJ() Grnntllll lhnll Clle wJLh' 111111 City ) lrtU~llve'of 1n1y' olhtr')!.?::;,;,. ::.. ::
" 1rmnil'or n ('OJIY ut ltlJ 1J»nuAI ""l!Qt~ '11/~ lilt (If till• f>tdln11,nce, Oran(H • · . ' :
w \llo C!IUfo\'nla PobUil Ulllltlen r R t to (11!JUl~l'\lct, pm1ntnhl 11nd irno,
Comm1~~lon, or Its .~un<:e~ffnr In oU· <ir NttlO\'ll poltls, wires, i·on~\ult..~_.. unn
•tho1•1w. ow soun ns 11r11ct1ut1llla nr1e1• ttripurlell~llcoa th(lrelP shill! be Bllh•
the QrlrrJHnl M Hnltl r~t?Qrl hns hi\1'n jcrt nt Ull times to \110· l'lt(ht .11f m U· •
tned with ttuld ·commla~lon, or Its Cit~·, In thll oxorctao Qf !\JI po11oo
MU.'t'CR);(Jt• /n· 1t1ll·hor1w. powm'. lo rolJlllrQ the 1•0111m•111 or 1•0-
1111 In 11<! Q\'qnt C11·11nt~c !olln tll Jot•11Uop1 to el\,lot' p\•erhentl or Untlc~·
mnl<c lho pQ~·mo11tR tor thl~· fti\ll• urcm111 foqn\ oM, or Rn1d llOlca,
1:'11RQ on nr ·1ieroi•i:t· the 1JijtOR duo M wh·~i; cl)l1UU Is 111111 n\lp11r\e11~1lrQa
ho1•-0111tih01'& 111•ov1t.IQfl, 01·n11tell nhnll 1 at the ~olo c()st «nil expan~o
thill'QIO
11p» r1H 11drll1lonM 1•()nHlrlt1rntl<m h11th
o tho rollowlnrr nmount~t ~~cWJ:rtfi?· tJNnmnmtoUNtm:a OI!'
Cll A num <ir mone\' 011unl to J•ACl1..11'1l~fl .
two 121>·rr11ut 12o;; \ of tM nm@nt (R) l"ro~~ntl;.'. Ornntell Is on"ngocl
11\ll" 'l'hlff 1m1011nt fo rcqulrocl ·In In D )ll'O!(rr111\ or t•or:\•l)r\lng lo 111\ller·
MOar to 1lefrll)' thoM n<ll\lllomtl l(toUJlrl ·ccrtnln of 18 fpc•IHtlO$ In n~·
rXMll$Dfi 11nrl co~tu ln~urreil llY ror1111n~o wl.lh "Qo~ «101i.,:-:o• wo7Co6 ot
cit~· .b~· rcn1<rm or Urn dell{1)rn1erit
11n~·111on\ lnclmllnA'1 Im~ Mt m 1e1l
'I
thl> Cnll(Ornln ...-11!1110 ul 1 1t1Q~ . m•
mlsslOlh At .thht thM, ~i• cl tlcotRlol\
ref1t1lros or1111tc.i: t(l bu11J~el llrlor to
the en1l .of· oncu en1 llllttn1• )lenr car·
to, Hie <o0Rt ot ·ntJmlnlA\orlnA'. 11c•
t•o1111.tlt1ir anrl ron~cllnA' rnl<l (Jolin•
{1ucnt 1>a~·m~M a11tl the. co·s1 ·10 tnln ~umn M mono:; fqr ~uld prj).
Cl\,1• or t>OstJf<lflfr.ff Rc1•1·lr.cs nml irrum ror the M>:l. auccectlh\ll' yenr
11roJOOts tlecQMJtn ~cl bY tho do)ny unrl o\\<'IC't1lo lhORc ~11m~ to· undet'•
1.n t'otol\'lnll to;•unuc.
i21 A sum or n10M1' oq1ml to
11m11n< mr 11r0Joa1s In the v11rlo11~
ona )lor,•11111 rl ';;) or tlla nmount
i;ovcr_nmo11.t11l m• scll°l'tlons t1iro11r:1 h•
mit ornnt<!c'« entire clcctr1c Rer\' 1ce
11110 11w mtllllh ntt lnt11re~t nnd tor ter1•llor;<1 cm IM huslll cl Ille 11.1111111~!.'
1·o;e M use llF tM mono.~· 11t1e, or ·eJrn11rlc <'1rnto1·ne1•a tn each go\lern• •",
S.er.tli'ln fl, COMPLIA~C~ w
l TH. mcntnl Jurlmllcllon. Grnntco '" Wiii·
J,A.WR
All fn~llJl!·oR or ~q11ltrm~nl
tiw thnt (;runtco Hhllll cotrntruc , mnlr,·
or
Grnn•
1111{ to lncro11nu the nrr1011nta of moM:."
1Jt11lgotctl rnr "nltl tlrllstr~m 1111ll nK n
J.>01'11011 Of !fiU OOtlKl11C1'4tl011 f,01' lhC
1 0 1
ru;~m1 ~~11"-fJ\ 111~ 1t.1\\~~lg1Ml~11';/lf"n~~
UIIT1 nnc1 uw or rotn<ll'·.:t• ll~rsunnt o
U111 -r11VJ\'l•Jrll'~ ll/ lho f1•111w111"n granted
hcrPln .tslH• . be tm'<!mnll~hotl In ·nr.• c•omp lah this n ·t rn . ollowlllli mull•
1J<Jtdnlll'O W\t h tlla nrrllnnnQ.en, 1•ulcK nw ·
p1111 re~'l1lnl ons of :c11~· 1rnw or ii~ · · (b) GrnnlQc uhn\I nrm\i' nl111\lnll)I
1wrc11rt~r aclo11ted or J•1'<'St•rlbcd·, nnjl \Q uni c1111ror11tn Publ o uu Illes •
HU~h rill~R nr r~rnilnllon 1 M 111·0. ·nromu • c.on1mlB$IOt\ for nulhUf~lt~· t~ bmlu~t
J1.0t1?1l .11mlrr Rtoln lnw·, or order~ or nn'lo\llltff o.f mono». or th<> 11111101'•
the !"Uhl.It~ Utlllllo$ Cl)lnn11u1!011 or 6th• 1n·11unc11n11 Qf oxlRllng 01•0\•Mml 1tn•
lsrl 1 ct nn Ill th~ preml•1111.
j)r i:i11 vermn~nt-nl nutllorlW h111•lng. Jur•
1 rllltlQ~ Jll lhO "Cfl~', ln JIR nppllcnt
foi• mtondnr ~·Nir 1011 arnnt110 al'm
Ou.
8<'*/g~J· /\ m11x!B'l'nA'l'l\'F. !>RAC· n1111IY tn uwronM ·the ·n11101.mts o
monc~· to l>~ hud~ctecl to1· ,·s11oh tlh·
C:r111\tn~ l• !)Ornwlth rhnrrr~tl with tho durrtroun<lln!l In ,hi) .Cl\~' 1·0111 t.hrl
tlH<JllJO•lblllW of ~oopo1•MlM whh Cit~· nmount htJtlgototl ror o;o b~· nn
ltt propnrln.ll n IJHJhUltl or (trJmlll!Rfrn·
u1•0 nrn1•1l~t-~ whlrll ~hnl w:i1•e1·11 {ha
umou11t 0111111·~l~nt- to !ln£!.hait or
OM p1)1'UOl1t ( . ·%) or I~~ totnl SV!;•
l11~1Nlln\1011 nntl roma1·n1 or OrnntM'a :tom flt'l.'SA l'c1•u p\s ror thO cnlon\lnr
lurll ll M 111 tho ~tr~nla -Of CIW WhMl ~·cnr l>l'Ct'Cl ltHt the ~·ori1• of ll\')\11 CIC•
~11WN;!/;,0n· rmW.' ~lW~~rrVg~ 6%11~:
shnl 1nt' 1ll<lP., ·httt 11"0! btl lhn!torl ·to,
('Ill M•llr Jll'Ql~r·t.Jo11 priwll~~s Onco·
~,11 r11 ,1·~ 11r. 1"0111mandn11 with ·tlrn .f.lfHt
1 1
.u l c•n ~nrlm' ~·~ar M thP fr11n<•h Fe
g.rrtt\ll cl h.. rol:n. It 1~ to I><>. th~ 10111\ rn·
.sh11ll h\~ron•a ench ;veAr tho 111Munt
oo t11m led rnr llY ollfr.h"lf llar.~ent
(11,t ~~-) or II~ totn1 ~i·~tcm lfl'ORH 1,e-
,·$1>.onslhlHty or t'.lrnntM 111111 C'ltv to ra·· •01111a for tha 111t1ont1nr .~·ant' 1mirad·
\'Jew r111rl .1111<ln1P ~11rh mlll\lnl•trall\<Q
Jll'llrl 1.l'l'k, l'fith Grottl~~ n111l' c11.~· .ore 1 1111 "\he yenr i>f ormllcollon 11111111·
pllrtl IW · tha 11l11JMtln11 1'11\10 until
t1111rlfM wlU1 thn .rl\llV ·t<'I 11repnrn, re• n11~11 \>1Hl1te\NI ntJ\QlllllH 11r 11WMY for
\'li'll' AtHI lll>lllllP 0 \lt•h ndllllnl.<trntl\'O u11r ·orJlr(ltlll!llllft lrt tho City ronch 11
11tm'llres 111• n mothlJll nf n111t11nl tOlll!< uu111 \\'h"llJh Is cottuLto ro.ur nntl uni!•
ar11tlol\ WIJ.lrh i;hnll Iuka l11ln Mt1altfo1·· hulr )lurrcn.t (41/.i •i-) o( .Miii \Dlul
~tlnJHll~ rvm;onnlM. tt1•q:11~ .rln«I crinl'Oj1· F\'Rtom itrns~. l'C'C\llPIR ll\\llllP11l!!l lJY
11m.•\'. r.f &tiell phrt:r: pmvl!h!ll tho.I" .Sl'\ ti .tho culln\•n.tlon rauo. 'tharenW!r. IJflin•
J1ilfl'llnlstruU.\'9 rirn~ll~P• nn!I ttun~~m• ·1Qc ~ho! conllnuu. to npply to 11111 net
ind co~IU!!llil tllfr()Q( •llall'l>e 11t all 1111 rrmnunt nf moMY l!Jl\lnl to four
tlllWB ruhJ.tW.l \0 ~PJ1rov111 <ii tb" 'Clly n111l am)-11u1f riorc•ont r-i¥.rr;.) ·or a~lil
f'..ot.mel "" cxpt'l!s!IW I))' ~1111t01>rlate \nttll F)'Rl.Unl 1ttt'ORS rU\'OIPI~, 111ulll•.
tcli'Hllll11•0. nrllon. 111!~11 h)' U10.1 nl ovntlon1 r~Uo ror ~llcll
1''.1,11\oll'lng· tM \ll'Ullnt'n·tl.on nr llJlhl ttnrle.l'lll'<llll\"lnrt 1•on\ cru nnJ
mnnunl, ll!lil It~ n1111ro\'RI· h~· lhll- CllY 1.r1 1t the n111ou11ta tK> · 11111get1nt tor
Cou~t•I, II <.hull ll'W•ril .t111• lll'Jllitlt'U< nnJI ~nlont1111• ~·l!hr nrn not ~J!!l.l>tnlocl
of 1... u OrnnteQ In .HH 1rrnrnllollo/1 1111t1 111 thnt ruler.dnr· ~1oar o~ too 1101tt
remo\•nl of <>r:1rit11<1'll fu~·l.l!Uctt 11 the two ~11~.1·ood nl(· 11tili!l1\ln~ yen rs rol·
rJ rorrcs h.o~1 imcl the C!.onll'<'I 1 ol
5h'<ll'lff of C'lty,
Jnwl11·1t the hu1ltrn\lnitt terl?llf be~ nuao
t;;(r•111111 a. err\' m:1nmv1m POW• nrn1\tc'(!, lli~ll In thtlt el'~n~ nn<l thut
MIS • (l\'t•nl" on\~· ornnte~ ma~~ 1•u11llocnt~ Urn
«111 C!ly r~Mh•.cq. the rl~ht for '\' 1mQX11rnilc11 a mounta· ot mono~~. II\
11QI! to. Ill~'. l'On~1r.1ll't. i;rurt. lnHtn·I , HR dl~~r~t1011, fat Dt1Y OlhOI', lnwtul
u, e, .01m1•1110, re111Jl~; ro11:r1~c. remove,
.re101•uto, t<1rc1•or o or 11111lntuln bvlaw
11111°fnl·~ or 111w1·e ~urf·U!'"c 1m11ri:i\'o•
purgrue,l'hls ~ccttan ~hnll ll.ot be
T11QJ\\& or nn.1· t)•11e .ur d~.-~r-111tlun. 1t1, der1Mil In nn~· w11~· \o 1Jo· an lmvnjr·
u1m11, ·lllong, 111'1'\'•~!!i under ·m.• 01•ct• n\0111 ur Cit~··" rhdlll\ llR,lllOl'C llrUl'.t C•
tho 'hlrout.~ or UtQ ~·It~·. "Cllt~· fUl'lhOI' UIRl'IY 6N rr•rth In RMI Clll ·s 0 lhla
rc,cl'\'11~ lllo rl11ht to ro\i:irt1to, rc- !ll'<llMnc··e. ~othlng 1•0111n111.ot1 11uro1t1
I~ 1111~11clcil to l)ru\·ent Gl'lln\eu f1'<lln
1w11'Q, l'llmlc or ro11ln•'ll t 10 utr<l.ots
th&mKo)l·un, If tho n·epcKHnry cxar• 1nr01•mltHt lilt:.' .01111 \hu
cnm~rnla
Puhllo ·utllltle~ comm ~~1011 1,1r .tl11lh
('110 or tho 11ror11111cnt1on~\I rcsc1·1•a
right~ mmf.llt•tn with nn~· 11v 01<, wires, l!~lntlnl{ nr fOre~oQll\llU O('QllOIYllO Urn•
1lltlona 01• ntbo1· (p~torR whlol\ 1n t Ill
Cllntlulo, tinil 111mur.ionn1H·c~ or tlt·nn·
t~o 1•011H1rm·•N, mn.hltnlnml .nnd u~orl O)llnlon or (lrqnli'il 1\111110 l\11\\' 1M t e
11Ut'AllRt'll 111 11\11 1>ro\•1.qlonn 11! the ffrnntlntt n ll'Mln 111• 111 nni•f, of t o
fl?ltnl'hlH[ 111'111\lCtl h11.1't.!h)', 11'1\Uthet• 1io1•t1culnr nnnunl atJ!l\lrutlon. 1
prcl'locrn y t·o1ntrm1tcd, 111n\11t11111od (e) 'fhl"A fioNI01l I» 111te1111011 (lt\IY
n111l 11~01 or not, Clru11tec Rltn I, with• to h~ n 111ouA11ra of n 1>nrt1on of tha
aUl vo»t or ex11c.nRo to Cit~· Wl\hll\ (i(Jn~lde1•ntlol1 'to b& pnltl "h~· a,· rontcci
nlnotY (001 d11Y11 llll<>r written ,np. to CH:.- rr:ir \lie rlJ(htA n11tl 1w vllc~aN, •
tlr.a lrotn tho Cll~· ;\furlnttor, o~ hln l(Tant~ htl't!ln·111ntl Um•for• l~.~··" •.,....
c!~Rlf!t\ated rup1·e~cnt11U\'Co 111111 rll•
11oijt so to 110, fic11Jn. the 1ihs·alq11I ~Uflic~l\ro~~ % ~:J~r:'"i>t~~:'.~
rnw or <lr•ntet.
1
H"~1<: (.
. . • " · · 1.,1, .:., '" :
1
I.cit! l'OllHli'UQtlon rir rhnnJrllllf the
fi
. OQAt1on of nil fcwllltlpa nr cqUIJi·
»1-"..nl..~ C'1tttlkl ttn11. oran t~t! li!uill '
1 to '1QIUP1 eto intCh
nro.~ .......... prol'IJPUY
1
~ti'""' w.orl(,
 ( (

... f!erllln" 10. J.tOLD ltAnMLEfjS • ' '~ . . .

, Or~ntea i)f tit~ rand1f1111 111.!l '•
'llP.r~lllY shn111Jttclt'mr f}', t.n\•o nnc? n~. ....::.:· ~lfP ui.· "': ~ . T n ~ ~.l '1'1¥,, i·'.~U
inrll\ t'""• C t~· ~111 ON1' of(lc~rn ntTd
· on" contnhtCJI liercrn, I11:Is · 1r11nchlsa
ntnpln,·~~~ thott>M n1wln~t nnc (ro111
1111 dllllltll1~R, JUdl!llHIOIK, cleWOQff, Ct'JRIH
. , ·.N'o\W~Andlllr 11.11y o the~ .', Pf<!Via·
mitl exp~nrl lttron WhMi Cit~, Ill' ~ll~h
n(lf1·~r ar N11ployoo, mrw KUtrcr, 01•
m:n11tud oolelY oml ax~ tJ~l\'el¥ unclor
1111 10:1 io:ul to~ onu tQ,, ot \hq
which mny ht! 1•11r1>1'<-N1d fr01l1' or ol)o ur or The Cl y or Bun PJog11 unu
tnlnrihlr nit11lmL Cit~" or flll(' 1 nr/lcer Ull or M othor nuthrirJly,
fit ampfo;vl'r., tor, 01• h~· l'efiaon o , or Section !IJ, NO TllANIWlm Wl'l'H•
f{rr.wh1Ji 0111 nf or r~Hult mt rt•om the OUT CONSl~N'J.'
llXcrc1RINP: hy Ornnll!O of Ito~· or ltll M Gru11tee ~irnll n<it s~11 1 . transtor or
!hi! r lfhts <n• prMloR'~" 11r1111lM hor<1· PSMll!ll thlH rrnnchl~~ 01• tno rlgn1u nnll
• hY, or 1).1' 1•oo~<m or 1111~· ML or nc-t.<i Qf prl\'llogeu gront~ll therob)I w1t1\011Uhe
COllHant Of thu CllY Countill Of T!Je CltY
~~~J17in~rl~~' r~%~~7;g g~u~lclfl1WcJ~ ot Son Pfo110, na set rorth n !JoaUon
tw, nhd Ornntc•u sllt1ll dafonct on1• suit 103 o:ic tho CtiArter or 'l'h1.1 City ol Snn
t.111\t m"r'' l>Q lmllt11tc1J t1R11lnat Cltv, or Pl~gCJ '
nn~· or feor m• 11mplfi)'<?e thereor, hY Seailcm j7, n I GU 'I! Oli' CITY'S
rf:ll1<-.» or or grow11111 0111 or or ro~ull· IULEO'!'OllB ,
· 11111 rrr.m 1110 11~cr(·l~o h~· Or»nt~o at ·Thi~ gr11111 of rrnnchls~ tmrl a11thorJtY. ·
· IHI>' or nil "' 11111 tl!lhtH or 11rM101tos shnll !J~ 011d Jn ~lll>Joa~ l<l the right of
nra ntNI Mroh~·· (. t• l>Y 1•0Moh Qf nny
art or nl'tH ot <lrnntea, ot• It.< Ron•nntll'
thu 111nJ1>mY or L11e e 1cctors ot City
voting at nny elect1Qn 11t 11ny tfmll
or t111~ntA, In axcrclHlhR' tho frilnc\llse thercarter lo rot1e11t, cn«n>'lil or modify
Kl'J3~jf/i~~ 1l:nh'JnpAJn COS1'S the itrnnt, nnd nttch 1·11111t le haroby
ell.nrott~IY tQijarvetl to Bllltl ~lectora;
or1111tQo ah ·111 111w 10 Cit 1• on rl~mnnrl ll~tl ft ta nl'prcHHJY agrcctl th~\ Ill nllY
Ill<.> rQ~t or u1I r1mnlra w t:'lt,1• 1u•oriorty ~ 1Wlfo» hclc In C:lt 11 maJorlly of IUl
mnll~ n~1'1>R«n1·~· 1w n11y 11 th(! opGrll• f G('\.Oj'a of Cfty vntl111i "t ~uld election
tlrHlll 11r <Jrnnteo 1.wrJw the Crancl/lst! B nfl rn\'ct lhct 1•/g!Jt to l'epcal1 ollllnxe
l<J'llnlcd hWehy. pr<Nfdur) howa1·or l mt or motl!fy Ille term~ or ~Illa 1r1111vb1..,
Or1rntN1 Ina~· mnl<~ repnh•s to Ktreol1, and me uutlmrttr flrnjlle hereunder.
~ldew111kl!, 1·url1a nn(I 11uttcrA jtsolt 11t SliCllon IR l'IWIIO tM NCI~ UONJ)
l\n l'>Wll 1·oit ln nm-ordnnc·o 11• lh Clt:v (lr11ntoij $hn11 (fie a11t1 ninlnwln 1o1,
flW!l:'UlrMJ/111~ It 11111 wime ~mi he <.lotic fulthf\11 11erlor.111nncc \:mild In ra1•or ·or
wl!Jlout unr1110 fnrom·onfctWC tll tho the C ty )n 1111) RUl!l0 or l'h'i Hl.mtlrOll
puhllc 11$!1 of th<! Atreet.11. 'l'hauYn .. l>ollors (.,000,000 to 11u r.
B~Nlon 12. vonP~~lTUnE llntee 1nu1 l'.lruntee glJoll wet and trlli)'
'l'hfq frun\•hl~c 1~ gr1111w1l 1111on ench <ibb!l1'1·e, !lllf!ll 1111d llC/'fr.rm eaoh :ma
anrl o\·ur\' rohrllt oh hPreln l'llnt.ifnQd, 1wacy 1er111 und .t:on<lll on Of the rrnn•
11nt1 tthnll ~v~r tm 8\rll'l v ron~truod
Malnil (lrnnlcc. Nolh ng nhall pan~ bV bc:hl~c heroin nrnllt~.,. In cnsehorJ any
reua11 or nny c11n ... lion <i~ t c rM·
mo frlllll'hf~c 11r1111lntl h<•relw to ornil· ahlsc, llllY nmoun\ o the aum mn e in
cca 1m10~~ It 1ic grnnfnd lrt 11IQltt nncl Ute l)(Jn11 ur1 to the whole lllcrc•or .l!'l~)I'.
( Utlntnh ~U0\14 tQrm~. r.:n('h (,Jf Rn (). COil•
ll!tl"llff fff n mnt•!1fol 11ncl l'JSH~nllnl CM\•
be rq~eh•uhle from lhll m·l11c111nf 111111
ktJtetloa u1i<m l>Ull'.I ban<! to comr>enSl!til
ti Lion to lh11 J?rrinllng or th~ lrnn~hl$e. Ou~· for un~· t1nt11n11es fl mny ~urro1• I>~
·11 01•11ntca •hnll roll, 11c11lu~1 or 1·oru&~ nnuon tit ~1n•ll l.lrcu~h. Said l>ond $\lll I
to l'l)ltlflf,1• with mi~· tit tho t•onrllt an~ bb n~l11Wj1'11'11fll'vll by Orun~co ns Pl'lll~ •
or tl\~ lrnrt~hlM 11runt11<l harnli;v, nn<'I , 1'11\l tJllcl I)' LI COr(lO~lljft>n lit'011HC() by
U aH<'h rn1,1url), ne11l<>(lt or ror11S1:1I nhnll t.1111 Jnauronr11 comm fis oner or the
('()11\llll(IQ <lr lllDl'O lhnl1 tl\Jrt\' rno) • Stille of C11..11Cornln t1> u·nnsno} the
tl~YK 11 tnr wrltLott dema11d ll,1• tho Cit).' b11B!11ei;s or 11 fidelity nnd liUrely ntur•
Mann11r1• tor ·r~impllntwo therewllli,
0Wm 'rc; ~·~~l~MtSilfvm DAT!!;
..Ill\~~
1
thQn CJt~·· 111• lht'! Cit\• Cr111nrl1, In ndcll•
tlr.n W nflhr1gfH.H unrl rcmetllaP nllowod
hv low. t urcu1>1111 mny t"rmltmlll l\t6
:rd~I~ Pl'dlnatrne $htlll tnk1.1 errllnt 1ind
.,., n foroe 011 the lhlrtNlrst dny froin
right, 1>rMIP-1t!! hntl (rnnchl~e Kr".intad l'lhffl!ll~ll1.,u
•n arm• Jta APPn
·11:1 uhtl ll~· thl• or1Hnn1we. nttd 1111 thfl \•:. :
t1Khtu, twh·J1~1t1·~ ttnil .ltw frutM\~e of JOHN \', \ 'IT'l',
OrMHvc irrnntcrl fll'r~h~· bh1Jll ore- Clly Attornq~·
• Ul!Qn Ile at nn f'nrf. TheroUJl<)n n111 l1t1•
.1tl111llntol)•. OrnnMe nhall flllmlllrler nit
ny,c, )ii. l"ITZPATR!CK,
Ch et ))e1H1ty
rl~HR nl\cl Jll'l\'f 1atten In 1111<1 to 1!1il :Pl)ssad nlll? t11101>tcd by tha CouMll
fraMh!l'tl i:rru111c11 hcretw. Nil 1mwlalon of Tit CJt.v of Snn Plogo on t>ec~lllbe~
har~IJ1 nw.cln ft1r the purrnrno or MoUr• ~.7 10 o. liy the ro}lowurn \'Oto:
Intl' th!' 011ror,1.mmont of thn to~111~ nntl x Cotib, Ui \fn, L.attclt, Hitch,
MncfhJonq 11 tho trrrnclll~o W'llll}Cd I) 1er, currnn.
heralw ~hnll hQ 1!Qonwr1 nn cxclua 1•c u Wflllt1ms, M<lrrow.
1·cmct1~· ot- tr.i ouortl tha ci:~tu~ll·o lli'O-
r~<111re for t111> enror~em~nl or Mlr1 A ~l!l~¥P~g~J,tlnet,
rnrm~ 1md ,~011<.lltlona, lnll tho rcmedlair AUTHENTIOA'I'ED DY:
111111 l>l~>('IX urn <>utflnM harcln or 11ro· nv.NK cunnAN,
\•hlcrJ, lnn1urlh11;i torfnltur~. ehnll Ile !\Inyo!' '(}f 'l'Jta CIW o£
tlo~mo1l li:i bi• cumulntl\•o, l:!on D(ORO Cnllf<lrnllt.
fl~Nl(•I\, 1:t.
\'.\l.tJATIO!..:
AC(l1.W'll'l'ION' MID .wm: LOCRWOOO
City Clerk~ 0£ 'l'he City of
~oU\lntc In lhls or!llnnnt•o 01• In the S1111 Plc110. C4lff<1rnln,
rrunrh ~o 1;1rn1111.1d lierafJy shall be con· ny ~L~'A l!', HA~1m:,,
&jli!Cd nu In nny wn:.i tmrmlrfn11 City's CSonl) :Oopt\Ly,
r Rlltn to nN1u1r~ 11roJlQrh' or Ol'llllfoe
through tho t,>l(errlsa or 01\\''JI 1l(:l!1•cr 1 m:mnllY Ctll'l'IF\' thnt tho roro.
or emthQnt d~mnhl or thtDURh \'<1 un· goh 11l' ortllnnm·o wna noL tinnily 11asgacl
unt 1I tWQJ\•c cnlellllur do~·a hnd c1a11~ccl
tM. 'I'
tnl',\' nRrromerit be111•cu11 Cit~· nnd Orun-
the f!\'tlllt 11nt Cit\' ClltX>fiCR to
l\Ncrr Rq 11..~ tmW<:r or cmfnnnl tlomnln.
bOt\\'QOI\ the d11~' of llK lll\tOdUUllon
nlld the dny of Ila llnlll pa&!inRc to
It ~hnll to l!O In urcot'flnnce Wlt.ll lhu wlt,hon t>~ccmllor ti, llliCJ, u1111 u11lna.
11rn(·1ldurn~ urn\'l<.led II\' lho tiQM~nl eom or 17 irno.
law of tllr Rtnto 11f Cllllforn\n tor 1110 I ~·unTirn:n C~l\'I'lt>'\' that um retul·
l'QtHIQ~mn1!011 M 11utillc utr ltY nrot>- lnll' or ~n/<1 qrtllnnnco In full w11u dis·
erty, 'l'ltr vnluntlott ar ~u~l1 11ronoN~· llOh&~d Wth l>Y n \'olu tlf Jlot jus~ thntt
for con11r.rnnnt1011 11Ut'f)QM~ nhnll b~ 11 nrnlorll:.'. or tho mo111bcrs e actod to
nnrl~ 1t1 nl•cordnnro with such ROnern!' Ub10 C'<?,llllcllh nn<I tlint ui~ro w~g nl'llll•
.l .ser,~ws~ 1~.
llW,
l'UU1.ICATf?N' 1-lX•
11 1c , or t o t"Onsldor11 t10J1 or nn~h
motnllllr at tile Co111wll 1111<1 the nullllo
nrla1· to lJie 1 ny or It..~ pa~ijttJl'O 11 writ·
·.....to~~~~.1 ....0!.~~ !.~~~ ..~~ lb.U Pir,. ton 01• 11r ntod ro~y or NOICI ord!nant?u.
.lOH. LOCKWOOD
«llY • MUlll t.it llil'i' '_liiiltfa~'n(·'tt:i .... ~It~· !erk. or 'rho City ot
nilmbl1rr " tar -11 lillCiUi\11 ex· nin Dlt'llO, (lnllforllllh ...
tthu'&-W8n~
Wir11"t It ~.· fJli~UQ~ . .(StaJ>
.
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I lt'ter Ott>-
. . (f"-C«'*. WJlh •
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wr
:J&Yu'fu1!\
.wtUUWilll or
Pttbl •6cil' ~. 21i, Sll'l'O '·' · · • ' i>.att · .;
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EXHIBIT .3
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ORDINANCE NO. 10465 DEC 1 71970

(Ne:iw Series)
ORDINANCE GRANTING TO SAN DIEGO GAS & ELECTRIC COM!? ANY 1
ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE (l) TO
~~·~ i~~~r;~s~~i~':gg ~~ ~~s~~~~g~~~~Wk~~fl~~T~D
ALL LAWFUL PURPOSE$ OTllER THAN LIGHTING, ALL l?IJ?ES
AND ·APPURTENN/CES WHICH ARE Now OR MJ\Y HEREAFTER BE
LA\'/FULLi' PLACED AND MAINTAINED IN THE STREETS WITHIN
THE CITY CiF SM DIEGO UNDER THAT CERTAIN FRANCHISE
OF GRANTEE ACQUIRED PURSUANT TO SECTION 19 OF
/l.RTICLE XI OF THE CONSTI'rUTION OF THE STA.TE OF
CALIFORNIA, AS SAID SECTION EXISTED PRIOR 'l'O ITS
AMENPHENT ON OCTOBER lb, 1911, (2) TO CONS'l'RUCT,
MAil·l';l'AIN AND_ USE IN SAID STR..£ETS ALL PIPES 11,ND
Al'PUl'l.TENl\NCES NHENEVER AND WHEREVER SAID CONS'l'ITU-
TIONAt FIWlCHISE IS NOT NOI•7 NOR S!l/\LL HEREAFTER BE
AVAILABLE THEREFOR, NECESSARY TO TRANSM.IT 1\ND DIS-
TRIBUTE GAS SUITED. FOR, AND FOR US!'; BY CON.SUMERS FOR,
ANY MD l\LL LM1FUL PURPOSES r AND ( 3) TO UTILIZE SAID
PIPES AN.D APPUR:TENAtiCES IN SAID S'l'REETS FOR TRANS-
MI'l''rING GAS FOR USE OUTSIDE .THE BOUNDARI.ES OF TH.E
CI'l'Y FOR ANY ANb ALL LAWFUL PURPOSES, Al\ID PROVIDING
THE TERMS AND CONDITIONS OP THE FMNCHI,SE SO GRANTED.

BE IT ORDAitmP, by the Council of The City of San Diego,

as follows:
Section l. DEFINITIONS
Whenever in this ordinance the words or phrases
hereinafter in this section defined are Useci, they shall have
the respective meanings assigned to them in the following
definitions:
(a) The word "Granteeh shall mean San biego Gas &
_E_l_e_c_tr_i_·c_c_o_rn_.p~a~n_.Y.___ , its lawful ~·§.Uccessors and assigns;
(bl The Hord ilcity" shaJ,.l mean The City of San
Diego, 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 "s~reets" shall mean the public
freeways, highways, streets, ways, alleys and places
,1

..." as the same now or may hereafter exist within the City;
(d) The word "gas" shall mean natural or artificial
gas, or a mixture of natural and artificial gas;

MICROFILMED
APR 2 8 1978 ·';
 ' '
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(e) The J?hrase "pipes and appm:tenanoea" shall

mean pipes, pipe lines, mains, services, traps, vents 1
vaults, manholes, meters, gauges, regulators, valves,
conduits, appliances, attachments, appurtenances and,
without limitation to the foregoing, any other p.roperty
located in, upon, along, across 1 under oi: over the streets
of the city and used or useful in transmitting or distri-
buting' gas, sometimes otherwise :i:-eferred to aa '' faoilitj.es" J
(f.) 'rhe phrase "construct, maintain and use 11 shall
mean to construct, ei:ect, install, operate; maintain,
use, repair, relocate or teplace pipes and appurtenances
'
thereto in, upon, along, across, under or ovet' the streets
of the City;
(<.J) The phrase "oonstitutional franchise" shall
mean the right acquired through acceptance by G~antee

oi: its predecessor in estate of the offer contained in

the provisions of Section 19 of Article XI of the con~
(
stitution of the State o:t: Cal.ifol'.'nia, as said Section
existed prior to its amendment on October 10, 19111
(h) The phrase "gross l:'eceipts" shall mean aU.
gross operating revenues r.eceived by Grantee from the
sale of gas to Grantee Is customers with points of service
within the corporate 1.imits of the City (including, but
not limitGd to, sales to military reservations with
points of service ·within the City's corporate limits)
which are credited in Account ~lumbers 480, 481 and 482
of the current Uniforrn system of Accounts of the Federal
Powel: commission a.s adopted by the California. J?ublic
utilities Commission, or similar superseding accounts,
lass uncollectible amounts and less any refunds or rebates
made by Grantee to such customers pursuant to orders or
decisions of the California ~ublic utilities commission.

MlCR£f~~~hD
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Section 2. PURPOSE
The franchise (1) to use for transm:i.ttin~ and distri•
buting gas suited fo:r li~hting- bttt. for use by oonsumars. for
any and all lawful purposes othe:r. than light:l.ng, al.1 pipes
and appurtenances whioh are now or may hereafter be lawfully
pJ.aced and rnaintainEJd in the streets within the. City of
San Diego under t-hut oartai.n friinchise of Grantee acquired ~

pursuant to Seotion 19 of Article XI of the constitution of

the State of California, as said Section existed prior to
its amendment on October 10, 1911 1 (2) to oonstruct, maintain
and use in said streets all pipes and appurtenances whenever
and wherever said constitutional franchise is not now nor
shall hereafter be available.therefor, necessary to t:ransmit
'
and distt'ibute gas suited for, -and for use by consumers for,
any .and all lawful putposes, and (3) to utilize said pipes
( and appurtenances in said streets for transmitting gas and
£or use outside the boundaries of the City for any and all
lawful purposes is hereby i;p:anted to __san Di.~go Gas &

Electric Comean~, its successors and assigns.

Seo ti on 3. 'l'ERM

The right, privilege and franchise, subject to each

and all of the terms and conditions contained in this
ordinance hereby is g:rantad to San Dieao_ qas & Electric Companl'i,
a corporation: organized and existing under and by virtue
of the laws of the State of California, for the term of
fifty (50) years fX'om and ti.fter the effective date hereof.
Section 4. CONSIDERATION
(a) The rights and privileges herein granted
are upon the express condition that Grantee, as con~
.
sideration therefor and as compensation for the use
~l
of the streets of the City a.a herein authorized and

MlCROFtlMED
APR 28 1978
-3- 104.SS I '11•

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permitted, shall pay eaoh year to City in lawful

money of the United States, a sum equal to three per~

.cent. (3lt) of Grantee's gross receipts during the pre~

aeding calendar year, or.a fractional year, conlI\lencing

with the date of adoption of this ordinnnce by the City
Counoi l 1 for the first thirty ( 30) . yea:rs of! the term of
this franchise by the dates, in the manner, and on the-
conditions as set forth in Section 5 hereof.
(b) For the last twenty (20) years of the term
of this ft"anchise Grantee, aa consideration and compensa-
tion for the rights and privileges herein granted and
for the use of the stl:'eets of the City as herein authorized
and permitted, shall pay each year to City in lawful.
money of the United States a sum equal to an amount to be
determined as set forth below of Grantee' a gross receipts
during the preceding calendar year, or a fractional year, (
for the remainder of the! tei:-m of this franchise by the
da tea, in the, manJ\1:1:r. and on the oondi tions aa set forth
in Saotj,on 5 hers.of.
(c) Determination of the ambunt ~o be paid as
set forth in Section 4(bl above ahall be made by good
faith oogotiation between city and GrantM oommencing
nc.t less than six ( 6) rnonthff prior to the expiration of
the first thirty (30) year period. In the event that at
the conclusion of the first thirty (30) year period
said good hi th negotiation does not result in a deter-
mination of the amount to be paid by Grantee during the
last twenty (20) years (or 19 years, 6 months; as the
case may be) of the term of this franchise 1 then this
question (and no other) shall be subrt\itted to binding
arbitration as hereinafter aet forth; ptovided however

,.
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that no l.ater than fifteen (15) days prior to the end

1 '
thirtM\C:ij'~vi~D th• p~:;, may
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mtttually agree to extend t'fl.'ta time for said good faith

"•
negoUation for an additional six (6) months if they so
desire, durin9 which time Grantee shall continue to pay
a sum equal to three peroent (3%) of Grantee's gross
receipts .as consideration for the rights and privileges
herein granted. unless City and Grantee mutually agree
i11 w:dting ~o a modification prior to the oonclusion o~

the first thirty (30) year period (or at the conclusion·

of the additional six (6) month pe:r.iod as provided for
'.
above) then the determination of the number of arbi ...
trators, the time and mode of their selection, and the
rules of practice and procedure to be followed shall be
as set forth herein.
(d) Within thirty (30) days after the end of the
first thirty (30) yea~ period or within thirty (30) days
{ after the six (6) month extension provided for above, as
the case may be, Grantee and City shall each appoint a
person to serve as an arbitrator and shall give w~itten

notice to the other party of such appointme11t.

(e) The two persons so appointed shall then agree
upon and secure a third arbitrator. If the third arbi-
trator should not be secured within thirty (30) days from
the selection of the arbitrators by Grantee and City
respectively, then upon appliaation in writing by either
City or Grantee to the Chief Justice of the California
State Supreme Court, said Chief Justice shall be empowered
to appoint a third arbitrator. No person shall be
eligible for appointment by said Chief. J\1stice who
is an officer or employee of City or Grantee, or a
shareholder of Grantee,
"
( MI CR OFI LM EDAPR 261978
~s-

'10465 ..
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(f) The arbitrators so appointed shall hear

evidence submitted by both City and Grantee and meiy
call for additional inforrnat.i.on, which additional
information City or Grantee shall furnish to the
extent feasible, An award, decision or determination

in writing and signed by a.· majority of the arbitrator$

shall be made within siKty (60) days afte:i; the selec- 4

tion of the third arbitrator and shall be conclusive

with respect to the issue submifted and shall be binding
upon both City and Grantee.
(g) Except as otherwise provided in this section,
the arbitration shall be gove:i:ned by the rules of
practice and procedure of the American Arbitration
Association from time to time in farce, except that, if
such rules and practice as hisrein modified shall. con-
flict with t.he California cooe of civil PX'o<::edu:re or any
other provision of California law then in fo.rae, sue:!h
California :i;ules and provj,sions shall govern. •rh:ts
submis.s:l.on ·and agreement to arbitrate shall be
specifically enforceable, 'l'he award of the arbitrators
or a majority of them upon the question submitted to
them hereunder shall be final and binding upon the

parties to the extent and in the manner provided by the

California Code of civil Procedure.
(h) Each party shall bear the fee and piarsonnl
expenses of the arbitrator appointed by it together with
the fees and expenses of its own couns·el and of its own
witnesses, All other costs and expenses of the arbitra-
tion, including t.he cost and expense incurred by reason
of selection of the third arbitrator as hereinabove
I
··' provided, shall be born~ egually by City and Grantee.

M1CR 0FI LME°'t>R 2s 191~.

10465
.,•\•I

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SAcUon 5. RE:l?ORTS I Dll'.rES OF PAYMENT TO CI'l'Y' I
AUDITS

(a) On or before the 15th day of Februal:'y of each

calendar year during the term of this frano))ise and
forty-five (45) days after the expiration of the te:r.m
of this franohist'.!l, Grantee shall file '~ith the City
Clerk of City, the OZ"iginal, and with the Audi.tor. of
City, one cepy of a statement showing the gross
receipts during the preceding calendar year or fractional
calendar year.
(b) Within ten (10) days after the ;filing of the

statement required to be filed on or before the 15th

day of FebZ"Uary 1971, Grantee shall pay to the City
Treasurer the money.herein required to be paid by
Grantee to Ci t.y upon the basis of the data set forth
in said statement.
( (o) 'l'hereafter, no l.ater than the 25th day of
May, the 25th day of Zrngust and the 25th day of
November of each calendar year during the term of this
franchise Grantee shall pay to the said City Treasurer
one-fourth (l/4) of the money herein required to be
paid by Grantee to City upon the basis of the data sat
forth in the statement required by Section 5(a) hereof,
By this method of payment it :l.s contemplated and unde:i:-
stood that Grantee is in effect paying the money herein
required to be paid Ly G:tantee to City under this sub-
section on the basis of gross receipts for the preceding
calendar year and that. an adjustment shall be made as
more fully set forth in Section 5 (d) hereof,
(d) Within ten (10) days after the filing of the
I

f statement required by Section 5(a) hereof, Grantee

.
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-7-
MICR0FILM EiJAPR 2.s 191e .
1.0465
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shall pay to the said City Treasurer, or teoeive as a

(•"
refund from the City, as the oase may be, a sum of money
egual to the diff.Grenae between the aµm of the payments
of money made in aocordanae with Section 5(o) hereof
and the a.ni~ual payment of money herein required to
be paid by Grantee to City upon the bQs:i.s of the data
set forth in said statement,
~

(e) The City Auditor, or any qualified person

~esi9nated by the City, at any reasonable time durint;J
business hours, may make examination at Grantee's
office or offioes, of its books and recol;'da, gertnane
to and for the purpose of verifying the data set forth
in· the statement required by Section 5(a) hereof,
(£) All books and records subject to e~amination

by· city Auditor, or qualified parson designated by City,

shall be kept 1<1i thin the County of San Die90, or in
such other place aa the :reasonable convenience of
Grantee may require; and in the event that it
becomes necessary for said City Auditor, ·or any
representative designated by the City to make such
,..
examination at any place other than within the County,
i then, in that event, all increased costs and e~penses
}··
... to City necessary oJ; incident to suoh examination
and resulting from such booka and records not being
available wlthi.n the County, shall be paid City by
Grantee on demand.
i
1\, (g) Grantee shall file with the City Manager
·'
a copy of _its annual. r.epo:i:t. to the California. J?ublic
Utilities commission, o~ its successor in authority,
as soon as practicable after tha original of said
report has been filed with sai\l Commiss~.on, o:r .its
successor in authority,
MICROFILMED
APR 28 1970: ·
104.65
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(h) In the event Grantee fails to make the

payments for this franchise on or before the dates
due as hereinabove provided, Grantee shall pay as
additional consideration both of the following amounts:
(l) A sum of money equal to two percent
(2%) of the amount due, This amount is required
in order to defray those additional expenses and -
costs incurred by City by reason of the delinquent
paYl!1eht including, but not limited to; the cost
of administering, accounting and collecting said
delinquent payment .and the cost to city of
postponing services and projects necessitated by
the delay in receiving revenue.
(2) A sum of money equal to one percent
(1%) of the amount due per month as interest
and ~or loss of use of the money due.
Section 6. COMPLIANCE WITH LAWS
All facilitii;s \:lr 'eg:u;i.pment of Grantee that Grantee

shall construct, maintain and use or remove, pursuant to

the provisions of the franchise granted herein shall be
accomplished in accordance with the ord.inances, rules
and regulations of City now or as hereafter adopted or
prescribed, and such rules oi: regulations as are promul-
gated under State law, 6r orde:rs of the Public Utilities
Commission or other governmental authority haying
jurisdiction in the premises.
,~H,2.~JPXi'' 7-.:z G:2w1:11:wr&.f~~i~·11t~ti'f±8~§~n '.·:/;
Grantee is herewith cht1rg'3d with the responsibility
of cooperating with City in preparing a manual of
/ adm,inistrative practices which shall govern the installa-
tion and removal of Grantee's facilities in the streets

MlCROFlLMED
APR 28 .1978
-9- 104:65 t( ·,(
......
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·,;: ::.;,::.}}
'Ill
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of City which ohall include, but not be limited to,
cathodic protection practices, Once each year, commencing
with the first full calendar year of the franchise granted
herein, it is to be the joint responsibility of Grantee
and City to review and update such administrative practices.
Both Grantee and City are charged with the duty to prepare,
review and updat~ subh administrative practices by a
method of mutual cooperation which shall take into con-

. .
sideration the reasonable needs and convenience of each
party; provided that said administrative practices ani;l
the terms and conditions thereof shall be at all times
subject to approval of the City Council as expressed by
uppropriate legisiative action,
Following the preparation of said manual, and its
approval by t~e City Council, it shall govern the prac-
tices of the Grantee in its installation and removal of
Grantee's facilities in the streets of City.

tc1$.~f~R~.~"P.'~t~.~\f~:is;;tf~;t,,~B,~"iJX.~R:~?:9W~Ji[J
(a) city reserves the right for itself to lay,
construct, erect, install, use, operate, repair,
replace, remove, re109ate, regrade or maintain below
surface or above surface improvements of any t~tpe

or description in, upon, along, across, under or

over the streets of the City, city further reserves
the right to relocate, remove, vacate or replace
the streets themselves. If the necessary exercise
of the;; aforementioned reserve rights conflicts with
any pipes and appurtenances of Grantee constructed,
maintained and used pursuant to the provisions of
the franchise granted hereby, whether previously
constructed, maintained and used or not, Grantee

M\CROF\LMED ·...;.

..;10- 10465.
 :.• -·: ·:. ~.:. ·......
..

sh a 11, '1,~t.hBHt.!-89,~JLH~'"'~-~.12~~$.$ F~8 P.~:1W ~~17:~~~ '~-~fW.~¥{:,i

,,tlO,),, days after written notice from the City Manager,
or his designated representative, and request so to '

do , \p·~-~H,n'.)]:J}§tP11MM;~tD5A~1~~.:?gr7t:,.'fJ,l9f.'~·9n ·'Q.~:;&h'~ii-~'ifi~; ·3
.c~~q~'.. X~8~H6fi~h;'f\/~1~··•-i:'t~B1T:tt'fg·~·''6±i·i:?1j&ii:fnl~ht·';~2i··'\Sotiii'·"u
;Hi:§'{;{@,. Grantee shall proceed promptly to complete
',; ;~;. · " 4• '· •

such required work.

(b) Irrespective of ahy other provision of
this ordinance, Grantee's right to construct, main-
tain and use, or remove pipes and appurtehances shall
be subject at all times to the right of the City, in
the exercise of its police power, to require the removal
or relocation, of said pipes and appurti;nances there.to
at the sole cost and expense of Grantee.
Section 9. HOLD HAPJ·lLESS

Grantee of the franchise granted hereby shaJ.l indemnity,

save and hold harmless 1 City and any officerio a,nd employees
thereof against and from all damages, jud9ments, decrees,
costs and expenditures which City, or such officer or
employee, may suffer, or which may be recovered from, or
obtainable against City, or such· office~ or employee, for,
.·.or by reason of, or growing out of or resulting from the
ex,frcising by Grantee of any or all of the rights or
privil~ges
:;;,
grante~ hersby, or by reason of any act or
abts of Grantee br its se~vants Or agents in exercising
the franchise granted hereby, and Grantee shall defend any •
1·

(. suit that may be instituted against City, or any officer

or employee thereof, by reason of or growing out of or
resulting from the exercise by Grantee of any or all of the
rights or privileges granted hereby, or by reason of any
act or acts of Grantee, or its servants or agents, in
exercisin~ the franchise granted hereby.
MlCROFILMED
APR 2 81978
10465
-11-
 .........
'• ·.

Section 10. REPAIR COSTS

Grantee shall pay to City on demand the cost of all
repairs to City property made necessary by any of the
operations of Grantee under the franchise granted hereby,
~
provided however that Grantee may make repairs to streets,
sidewalks, curbs and gutters itself at its own cost in
accordance with City specifications if the same can be
done without undue inconvenience to the public use of the
streets,
Section ll. FORFEITURE ··~·

This franchise is granted upon each and every condition

herein contained, and shall ever be strictly construed against
Grantee. Nothing shall pass by the franchise granted
horeby to Grantee unless it be granted in plain and
unambiguous terms. Each of said conditions is a material
and essential condition to the granting of the franchise,
WJ.:t~E@,t;;~,q·~;~r,~,~i~,~.'.t~.~tD··nM.±~9:t;~J9;,J;E?tti'~~:~:t'6''''S6rii~i~;.:·\eft.fKJ;; !}
".41'.lY·t'q#.z,;;i,hg 11¢.:c;rnan:rnns ·;;'of.'''tt.ie' •ffancllfs'e ·s;'ffffl'€~~'q:fi£F~bYP"-:~'ifciiif£ B
r·;;~,H9!J.;;;4r~;M.~~Ifimi;!Sle¢t·•uo1t~.r.efusa·1;,d;liallg'con~in1ie':·Rtor:'~n\6fa''.;1t;}i[fi•';•;1
:· ,.

t:tnM=:l:Y::rns·o'fJEat~•s1<1.af.£sr1Iwt:'itti3h "''.f!:l.emana '.'hy''.~,the~·~citff'izf.1'~fif~i&¥g;z;~

~:.io·:e·1.compi•i:-l!fnce·~:£her:ew1tn;:1,,t1.·en'··c1£y'l'r1Ji:l"Hl.e''"art:Y·~2c-auri'Clit/·'-rw

,,~ri·:1aatH'tf6~'":~g;w~1r~''i'f~~t~·"·~Wa"1'f.~'fifg;'a'f~·g···~1ttiwt:icf'SY''~I~?trf·~;si.\:n
"!£WEfi~Hi§orF•;ii\&yi'Ee'rmrnat~··;;t.h:eL:~i.gh.t:~·;;;pt:~~iA~s~k~JI<;i.•\ifrancn·i:'~e

::~.r,.%!Jt:~?1:x~:r!•1•a:r;a·:1H'ffe:·&:t:td;~c;;;;1raJJi'2:i~~~·;Jr:.l!fMa1·xarfr'.:€h'E{':t1•9h't.:s:;,D
...l .'
·~,R.~!:f~;J;;~<J'.~v~;::;~.nfl::tt:}}"~):'f:~'aili;!KiY~·?J::1:fe.;~9.;!int;~;;;.~,~f.~1.\.t.rE1:;'~e,H~R~.• 1{)
{sM,!:\l ~~ffg$'\~U \;56ii'~'·b'Wi:1:~'.t?''@Z@tl9-}':\; Thereupon .and immediately,
7

Grantee shall surrender all rights and privileges in and

to the franchise granted hereby. No provision herein
made for the purpo/1e of securing the enforcement of the.
terms and conditions of the franchise granted hereby shall
be deemed an exclusive. remedy or to afford the exclusive
:.

MICROFILMED
'~~~ti \916 .. :.. :'. .::
1.04.65 .: .:
-12-
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 '.'. ' , \ , . , · •• • ••1: ·.:.. :··· • : ,1 .,.,,

' ,, ' . " .. ,

( procedure for the enforcement of said terms and conditions,

but the remedies and procedure outlined herein or provided 1
including forfeiture, shall be deemed to be cumulative,
Seotion 12, ACQUISI 1rION AND VALUATION
Nothing in this ordinance or in the franchise granted
hereby shall he construed as in any way impairing City's
rights to acquire property of Grantee through the
exercise of City'"s power of eminent domain or thl'.'ough
voluntary agreement between City and Grantee, In the event
that City chooses to exercise its power of en1inent domain,
it shall do so in accordance with the procedures ptovided
by the. general law of the State of California for the con··
demnation of public utility prop.el:'ty. The valuation
of such property for condemnation purposes shall be made
in accordance with such general law.
Section 13. PUBLICATION EXP~NSS
( Grantee o;E said franohise shall pa.y to City a sum
of money sufficient to reif'\1burse it for all publication
expenses incurred by it in connection with the granting
thereof 1 such payment to .be made within thirty (30) days
after City shall have furnished Grantee with a wr.itten
statement of such expenses.
Section 14. . Z...UTHORlT'l FOR GMNT
Hotwithstanding any other provisions contained herein,
this franchise is granted solely and exclusively under
Sections 103, 103.l, 104 and 105 of the Charter of The City
of San Diego and under no other authority.
Section 15. NO '.l'RANSFER WITHOU'l' CONSENT

Grantee shall not sell, transfer or assign this franchise

or the rights and privileges granted thereby without the con-
sent of the City council of 'l'he City of San Diego, as set forth •'

in Section 103 of the Charter.of The City of San Dieg'o. .·~

MlCROFILMED .. · !
10465 . P.t>R 2, 8 \$18 '

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'

Seotion 16. RIGHT OF CITi'S ELECTORS

'.L'his grant of frtmchiae and a.uthoritl" shall be and
is subject to the right 0£ the majority of the electors
of city voting at any eieotion at any time thereafter to
repeal, change or modify the grant, and such ri9ht is
hereby expressly reserved to said electors1 and it ia
expressly agreed that at nny electiQn held in city a
tna.jority of the electors of City voting at said election
shall have the right to reJ?eal, change or modify the terms
o·f this franah:l.'s·e and the authority granted hereunder.
Section l.7. PERFORMANCE BOND
Grantee shall file and maintain a hithful perforrnanoe
bond in £<Ivor o;f the City in the sum of Five Hundt'ed Thousand
Dollars ($500 ,oOO) to guaJ:antee that Gt'antee shall \>1ell and
truly observe, ful:eill and 1.1e:r:fo:rm eaoh and every tern and
condition of the franchise hereih granted-. In case of any
breach of any condition of the franchise, any amount of the (
sum ma·de in the bond up to the whole thereof may be :receivable
from the principal and sureties upon said bond to compensate
City for any damages d.t may suffer by :t'eason of such breach.
Said bond shall be aoki'lOwledged .by Gx:a.ntee as principal a;nd
by a corporation licensed by the Insurance Commissioner of

the state of Califor.nia to transact the b1.1siness of a fidelity

and ~urety insurance company as suret;f.
Section u. EFFEC'l'IVE DA'l'E

This ordinance shall take effect and be in foroe on

the thi:rtr·first day from and after i ta passage.

APPROVED:

•',

MfCROF.llME.D
APR 281978 {-
10d65
 (

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"~"~· 'l\',\f\,.l\~·~"······r,o~· '.•VI 1'H•, ··••(t),'IV~ /l•r ..,.,11•:1.}·. C·"· I f.'l~'i)::~\l.,\'1~1· '•t1~1.• ,r,~· 't\'l•''t"'' ........1'·ltio111\1•f .... ··~h• •• 1••1";• I'•. • ..... •...... ,,., •1)'.'~ •l''''" ··1r1o. 1:
0

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~:L·•: '.:::~'.~~'S·~
~·~If~ ·~ ~

•,' •' I:.,.. •'11•' I •:i

,,,: ... \1\: ,,,•.,1/' '11 011' '' 'r l,..'\••" •' 1' 'ol,,,... ;l<'l•<:t....',.1'1,,<\... ,~h, ... t•'1\,:.. ' ~
,• _i': • I .': • • "• ,:; " ' • • • • • . \ : ::: ': "~'.... :. •;.:-:--.::·;: ..:.-9~~\~
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Pussed nnd ado)?ted by the Counc:Ji of 1'h~ City ol Snn Dfogo on ................................. OE0 . 1..7.. 1970. . . ~,,.,.,,,, ,. ·
by tho !ollowlng vote:
Coundlmcn Yens Nays Excused Absent
AJ•
,._ Halen Cobb CT( D D D
tn
a:. ~ :....: u.: Sam '!', Loftin ~ 0 0 D
LIJ~:,..
:;,, ~~ a u~ UY" 0 0 0
Henry L. Lnndt

~
1.JJ ::~ 0 o"
Leon L. Wlll!nms 0 0 0
U': w l::t
r.!;J Floyd L, Morrow
!:id 0 0 D
w· w !lob Mnrtinct 0 D II{ 0
o:;.· = Cl ::<!:

~
., ,_ •<(
VJ Allen llltch D D 0
~ /)/,a. Mike Schnefcr
0 0 0
Mayor l'rnnk Curran D 0 0

AlJ'l'HEt\TICA TED BY:

.............................. J.2.'.!.~....k9..S~.~.9.!?..!?....................., ..........

City Clark of 'l'hc Cit)' of 8nn lllqgo, ColHornln,
IS col)
lly ....... ~....~.r....~ 1 0epuiy,
I H!\RJ:mY CER TlltY that the foteBolng ordinance was not finnily J?assed umll twelve calendar days hnd
dapsed bet"'een the dny o! lts inttoduction nnd the day of its final passage, to wlt, on

( . . . . . . . . . . ~. ~P. . . . ~. J.~?.Q. . . . . . . . . . . . . . . . , 11nd on ........................................ P.'.~.Q. .1. f. 1.a.10........................., . . . . , . . . ,

~6Elt'fff'/ t!11>1 !>ftld 'i>IJiilftl~G* -~<I.Li £u11 ..pd<>t ~9 hH-tntd jl~!:Sll'!lt:, "

!FURTHER CJ!H'l'l!IY that tho reading of snld ordinance in foll was dispensed with by n vote or not
less thnn ·a majority of the members elected to the CouncH, nnd that there wn~ nvnllable fonhc conslderntlon
or each m<tmbcr or the Council nnd tho public prior to ~he dny of Its passage n written or printed copy of
said ordinance,

(Seo!)
lly ..... ~... "/J.!.,....»./~. . . 1 IJoputy,

,, ...
.........

Q(flco or the City C::lcrk, San Diego, California

....
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" ATTORNEY (SI
Io, '0

111
CITY OB' SAN DIEGO ...
202 0 Street '.·. 4 ••

Community Concourse
San Diego, Calito~nia

No.
CERTIFICATE OF PUBLICATION ...
.··.·, ...
IN THI!. MATTt;:R QF
"' .,
' .. I

OHOIW~NOE GRANTING ·ro SAN DIEGO Gf...S & .· .

ELmC'.rRIC COl~PAl~Y', ITS SUCCfilSSOHS AND ASSIGNS,
i~c·.c.

...

..
(
•I \_,
• I, Patricia M. Applestill h.rebv eertlfv
th11t The Oa•lr Tunacrlpt h a da.l ly n•wspapet of general
circulation within th111 provisions of tht Government Code of
the State of California, printed cind publlsh•d In the City of
San Oh1go 1 Co11ntx of Son Dl•i'_o, State of Collfotnll); thot
I am the princn.pa1 Ohl".tl{,f 1aid now1pap1r; that the

ORDINANCE NOo 10465 '(N!M SillRII!lS)

to a truei and eorroct copy of which thl I cert If Icote ISI annued
was publl$hed In said n111wspaptt on

D~cember 25, 1970

I ccirtlfy vnder penalty of perJury tht1t the for1goln9 11
tru0 ond c:orreet, 01 San Diego, C'allfornlo, on ·
December 25, 1970

··.·

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