HomeMy WebLinkAboutItem 6e - O-1758 Amending Titile 13 Establishing Underground Utility District No. 176 Item 6e
Department: Public Works
Cost Center: 5009
For Agenda of: 9/1/2026
Placement: Consent
Estimated Time: NA
FROM: Scott Collins, Assistant City Manager
Prepared By: Matt Horn, Major City Projects Manager
SUBJECT: SECOND READING OF AN ORDINANCE TO AMEND TITLE 13,
CHAPTER 13.12 OF THE MUNICIPAL CODE TO ESTABLISH
UNDERGROUND UTILITY DISTRICT NO. 17 WITHIN THE PRADO
ROAD INTERCHANGE PROJECT LIMITS
RECOMMENDATION
Adopt Ordinance No. 1758 (2026 Series) entitled, “An Ordinance of the City Council of
the City of San Luis Obispo, California, amending Section 13.12.040 of the San Luis
Obispo Municipal Code to Establish a New Underground Utility District 17.” (Attachment
A)
POLICY CONTEXT
Chapter 13.12 of the San Luis Obispo Municipal Code establishes the process for
creating underground utility districts. Section 13.12.030 requires adoption of an ordinance
and formal notification of affected property owners before overhead utility facilities may
be converted to underground service. Final adoption of the ordinance memorializes the
City Council’s policy direction provided during the first reading.
Underground Utility District No. 17 also advances the City’s adopted goals for
infrastructure, sustainable transportation, climate resilience, and neighborhood livability
by coordinating utility improvements with a major multimodal transportation project and
improving the reliability, safety, and appearance of the Prado Road corridor.
On August 4, 2026, the City Council introduced the ordinance establishing Underground
Utility District No. 17. The ordinance is now before the Council for second reading and
final adoption.
DISCUSSION
Background
The City has established sixteen underground utility districts since 1972, typically in
conjunction with new development or major corridor improvements. Underground Utility
Page 135 of 249
Item 6e
District No. 17 would encompass the limits identified for utility conversion within the Prado
Road Interchange Project, Specification No. 2091613.
The Prado Road Interchange Project will construct a new Prado Road overcrossing of US
101, reconstruct the northbound interchange ramps, add a northbound auxiliary lane
between Prado Road and Madonna Road, realign Elks Lane, widen Prado Road, and
provide new bicycle and pedestrian facilities. Several existing overhead utility poles and
lines conflict with the proposed roadway geometry, bridge structures, retaining walls,
landscaping, and multimodal facilities.
Previous Council or Advisory Body Action
On August 4, 2026, following the required public hearing, the City Council introduced the
ordinance establishing Underground Utility District No. 17 within the Prado Road
Interchange Project limits. Final adoption will complete the legislative action required by
Municipal Code Chapter 13.12. The ordinance will become effective 30 days after final
passage, subject to its publication requirements.
Public Engagement
The Prado Road Interchange Project has included public workshops, community
meetings, advisory body presentations, project website updates, environmental review
circulation, and stakeholder coordination. As required by Municipal Code Section
13.12.030, notice of the proposed underground utility district was mailed to potentially
affected property owners and published in The New Times at least 30 days before the
August 4, 2026 public hearing. Utility providers have also been informed of the City’s
intent and will continue participating in utility coordination during final design.
CONCURRENCE
The Community Development, Public Works, and Utilities Departments concur with the
recommended action. Affected utility providers will continue coordinating with the City and
project design team during the Plans, Specifications and Estimates phase.
ENVIRONMENTAL REVIEW
The Interchange Project was evaluated under the California Environmental Quality Act
through an Initial Study/Mitigated Negative Declaration and under the National
Environmental Policy Act through a Categorical Exclusion, with Caltrans serving as the
lead agency. Environmental revalidation will be completed with the Supplemental Project
Report to confirm that final design refinements remain consistent with the approved
environmental documents. Final adoption of the ordinance establishes the administrative
district needed to implement utility undergrounding and does not independently authorize
construction beyond the environmentally reviewed project.
Page 136 of 249
Item 6e
FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-27
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Capital Outlay
(SLR)
$9,000,000 $0 $9,000,000 NA
Total $9,000,000 $0 $9,000,000 $NA
Adoption of the ordinance does not appropriate additional funding or increase the
Interchange Project budget. Current project estimates include approximately $9 million
for relocation of electrical, communication, natural gas, water, sewer, and petroleum
facilities throughout the broader interchange project. This amount includes work beyond
the overhead facilities subject to District No. 17. The final undergrounding cost and
allocation of responsibility will be refined through utility design and coordination. PG&E is
expected to provide an overhead-reconstruction credit, and the City will be responsible
for eligible incremental undergrounding costs beyond that credit.
ALTERNATIVES
Decline Final Adoption of the Underground Utility District 17. The City Council could
decline to adopt the ordinance and direct staff to coordinate relocation of affected facilities
while retaining overhead service. Staff does not recommend this alternative because it
would require additional poles within the interchange corri dor, increase conflicts with
sidewalks, bicycle facilities, landscaping, and retaining walls, reduce utility resilience,
diminish the visual quality of a major City gateway, and require redesign of portions of the
project.
ATTACHMENTS
A - Ordinance No. 1758 (2026 Series)
B - Proposed Underground Utility District No. 17 Overview Map
C - PG&E Franchise Agreement (1978)
Page 137 of 249
Page 138 of 249
O ______
ORDINANCE NO. 1758 (2026 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING SECTION 13.12.040 OF THE SAN
LUIS OBISPO MUNICIPAL CODE TO ESTABLISH A NEW
UNDERGROUND UTILITY DISTRICT 17
WHEREAS, The City of San Luis Obispo wishes to improve the resiliency and
appearance of the City by the removal of overhead utilities; and
WHEREAS, the limits of the Prado Interchange Project, Specification 2091613
(Project) will require significant overhead utility work during construction; and,
WHEREAS, the City and overhead utility purveyors will be able to share
undergrounding costs; and,
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The following Subsection 16 of Section 13.12.040 of the San Luis
Obispo Municipal Code is hereby added to establish Underground District 17:
17. That portion of Prado Road in the City of San Luis Obispo, County of San Luis
Obispo, State of California, described as follows:
COMMENCING at a point on the centerline of Higuera Street that bears South 27° 41'
25" West, 161.18 feet from a found brass pin in monument well marking the intersection
of the centerline of Higuera Street with the centerline of the Higuera Street Cul-de-sac as
shown on the Record of Survey filed in Book 114 of Records of Surveys at page 89 and
on the map of Higuera Commerce Park Tract No. 703 filed in Book 10 of Maps at page
50, in the Office of the County Recorder of said County, from which said brass pin, a
found pin in monument well marking the intersection of the centerline of Higuera Street
with the centerline of Tank Farm Road as shown on said maps, bears South 27° 41' 25"
West, 798.90 feet [South 26° 09' 20" West 798.84 feet per said record of survey];
Thence North 62° 18' 35" West, 42.00 feet to the northwesterly line of Higuera Street;
Thence along said line and along the northwesterly line of the offer to dedicate described
in the document recorded in Volume 3020 of Official Records at page 1 in the Offi ce of
the County Recorder of said County North 27° 41' 44", East 709.93 feet to the beginning
of a curve to the left, having a radius of 20.00 feet;
Thence continuing along line and along the southwesterly line of Prado Road, 84 feet
wide, along the arc of said curve through a central angle of 90° 37' 00" a distance of 31.63
feet;
Page 139 of 249
Ordinance No. _____ (2026 Series) Page 2
O ______
Thence continuing along the southwesterly line of Prado Road North 62° 55' 10" West,
588.88 feet to a point on the northwesterly prolongation of the south line of the “24’ str ip
to be dedicated to City of San Luis Obispo” shown on Parcel Map SLO -71-178 filed in
Book 6 of Parcel Maps at page 70, in the Office of the County Recorder of said County;
POINT OF BEGINNING;
Thence continuing along the southwesterly line of Prado Road , North 62° 55' 08" West,
1035.46 feet to the easterly right of way line of State Highway 101 as shown on the State
of California Transportation Agency, Department of Public Works, Division of Highways –
District 5, Right of Way Map 05-SLO-101 at post mile 26.9 on Sheet 31 of 32 sheets on
file at the District 5 Office;
Thence along said easterly right of way the following two courses:
Thence South 88° 05' 27”, East 56.44 feet to an angle point located 300 feet right of
station 718+46.90 as shown on said right of way map;
Thence North 27° 46' 34” West, 60.00 feet to an angle point located 300 feet right of
station 719+06.90 as shown on said right of way map and to the northeasterly right of
way line of said Prado Road marked by a nail and tag inscribed “LS 4819” in concrete as
shown on the Record of Survey filed in Book 65 of Licensed Surveys at page 41 in said
Office of the County Recorder;
Thence along said northeasterly right of way line, South 62° 55' 08” East, 1052.37 feet to
the southwesterly corner of Parcel 2 of Parcel Map No. SLO -73-495 filed in Book 14 of
Parcel Maps at Page 4 in said Office of the County Recorder;
Thence South 66° 21' 48" West, 108.52’ to the POINT OF BEGINNING.
The Basis of Bearings for this description is the City of San Luis Obispo horizontal control
network, January 2007, between control #8110 and control #8114, having a calculated
bearing of South 30º 05’ 40” East. Designated points are published in a contro l inventory
on file with the City of San Luis Obispo.
Containing 86,165 square feet more or less.
Also including that portion of Elks Lane in the City of San Luis Obispo, County of San Luis
Obispo, State of California, described as follows:
COMMENCING at a nail and tag inscribed “LS 4819” in concrete marking the northerly
corner of the northeasterly right of way line of Prado Road as shown on the Record of
Survey filed in Book 65 at Page 41 of Licensed Surveys in the Office of the County
Recorder of said County, marking the angle point on the easterly right of way line of State
Page 140 of 249
Ordinance No. _____ (2026 Series) Page 3
O ______
Highway 101, located 300.00 feet right of station 719+06.90 as shown on the State of
California Transportation Agency, Department of Public Works, Division of Highways –
District 5, Right of Way Map 05-SLO-101 at post mile 26.9 on Sheet 31 of 32 sheets on
file at the District 5 Office;
Thence along said easterly right of way line North 16° 17' 06" West, 111.30 feet to an
angle point marking the southeasterly corner of the land described in Parcel One of the
Relinquishment of State Highway to the County of San Luis Obispo, Road V -SLO-2-E
filed in Book 1258 of Official Records at page 19 in the Office of the County Recorder of
said County, and the POINT OF BEGINNING;
Thence northeasterly along the easterly line of said Parcel, North 18° 03' 55" East, 108.77
feet;
Thence leaving said Parcel line, North 72° 02' 18" West, 55.00 feet to said State Highway
easterly right of way line;
Thence southerly along said right of way line the following three courses:
South 17° 57' 05" West, 22.21 feet;
South 35° 26' 34" West, 104.94 feet;
South 80° 57' 04" East, 87.38 feet to the POINT OF BEGINNING.
The Basis of Bearings for this description is the City of San Luis Obispo horizontal control
network, January 2007, between control #8110 and control #8114, having a calculated
bearing of South 30º 05’ 40” East. Designated points are published in a control inventory
on file with the City of San Luis Obispo.
Containing 7,706 square feet more or less.
Property owners shall be prepared to receive underground services by June 30, 202 9.
Overhead facilities shall be removed from public property by June 30, 203 5.
Property owners shall not incur any costs required for conversions.
SECTION 2. A summary of this ordinance, approved by the City Attorney, together
with names of the Council Members voting for and against it, shall be published at least
five days prior to its final passage, in a newspaper published and circulated in this City.
This ordinance will go into effect at the expiration of thirty days after its final passage.
Page 141 of 249
Ordinance No. _____ (2026 Series) Page 4
O ______
INTRODUCED on the 4th day of August, 2026, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 18th day of August, 2026, on the following
vote:
AYES:
NOES:
ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 142 of 249
DUONG
053-051-033
JK DEWAR
PROPERTIES L.P.SOUTH HIGUERA STREETPOINT OF BEGINNING
POINT OF COMMENCEMENT
S 62° 18' 35" E 42.00'
S 66° 21' 48" W 108.52'
PR
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053-041-067
PARCEL 2 - 68/PM/66
WALTER BROS.
CONSTRUCTION CO. INC
053-041-066PARCEL 1 - 14/PM/4WALTER BROS.CONSTRUCTION CO. INC053-051-067
CITY OF SLO
053-051-072
CITY OF SLO
LOT 1
17 MB 71
PARCEL 1
SLAL-91-102
50 PM 51
PARCEL 2
SLAL-91-102
50 PM 51
4018 OR 380
114 LS 89
∆=90° 37' 00" L=31.63' R=20.00'
S 6
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5
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1
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5
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8
.
8
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'S 27° 41' 44" W 709.93'161.18'MONUMENT
PER 114/RS/89
T 805 544-4011
SAN LUIS OBISPO, CA 93401
612 CLARION COURT
www.wallacegroup.us
F 805 544-4294
DRAWING :
DRAWN BY:
JOB No. :
DATE :
SCALE :®
EXHIBIT "____"
UNDERGROUND UTILITY DISTRICT
COUNTY OF SAN LUIS OBISPO, CA
SHEET 1 OF 2 OF EXHIBIT "____"
1479-0007
1479-0007-LEGL-PRDO
NS
04/15/26
1" = 150'
0 150'300'
(IN FEET)
75'
GRAPHIC SCALE
1 IN = 150 FT
N S 27° 41' 25" W798.90'MONUMENT
PER 114/RS/89
LEGAL DESCRIPTION AREA
86,165 SQUARE FEET ±
FOUND MONUMENT AS NOTED
LEGEND
For Review
04/15/2026 10:01:20 AM
A
3 A
Page 143 of 249
NAIL AND TAG INSCRIBED "LS 4819"
(65 LS 41)053-041-071SAN LUIS OBISPO REGIONALTRANSIT AUTHORITY053-041-072COMMUNITY ACTIONPARTNERSHIP OF SLO, INC.053-041-036COMMUNITY ACTIONPARTNERSHIP OF SLO, INC.053-041-078COMMUNITY ACTIONPARTNERSHIP OF SLO, INC.053-041-077ERB053-041-076
CITY OF SLO
4' WIDE STRIP
053-041-032
PARCEL 1 - 14/PM/04
PRADO PM LLC
053-051-033
JK DEWAR
PROPERTIES L.P.
053-051-045
CITY OF SLO
PR
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POINT OF BEGINNING
N
6
2
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5
5
'
0
8
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W
1
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3
5
.
4
6
'
S 88° 05' 27" E 56.44'
N 27° 46' 34" E 60.00'
S 6
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5
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8
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E
1
0
5
2
.
3
7
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S 66° 21' 48" W 108.52'STATEHIGHWAY101ELKS LANET 805 544-4011
SAN LUIS OBISPO, CA 93401
612 CLARION COURT
www.wallacegroup.us
F 805 544-4294
DRAWING :
DRAWN BY:
JOB No. :
DATE :
SCALE :®
EXHIBIT "____"
UNDERGROUND UTILITY DISTRICT
COUNTY OF SAN LUIS OBISPO, CA
SHEET 2 OF 2 OF EXHIBIT "____"
1479-0007
1479-0007-LEGL-PRDO
NS
04/15/26
1" = 150'
LEGAL DESCRIPTION AREA
86,165 SQUARE FEET ±
FOUND MONUMENT AS NOTED
LEGEND
0 150'300'
(IN FEET)
75'
GRAPHIC SCALE
1 IN = 150 FT
N
For Review
04/15/2026 10:01:20 AM
A
3 A
Page 144 of 249
POINT OF COMMENCEMENT
NAIL AND TAG INSCRIBED "LS 4819"
(65 LS 41)053-041-071SAN LUIS OBISPO REGIONALTRANSIT AUTHORITYPR
A
D
O
R
O
A
DSTATE HIGHWAY 101POINT OF BEGINNING
N 18° 03' 55" E 108.77'
S 17° 57' 05" W 22.21'
S 35° 26' 34" W 104.94'
S 80° 57' 04" E 87.38'
N 16° 17' 06" W 111.30'ELKS LANE715716717718719720721722723724725726727728N 72° 02' 18" W 55.00'
T 805 544-4011
SAN LUIS OBISPO, CA 93401
612 CLARION COURT
www.wallacegroup.us
F 805 544-4294
DRAWING :
DRAWN BY:
JOB No. :
DATE :
SCALE :®
EXHIBIT "____"
UNDERGROUND UTILITY DISTRICT
COUNTY OF SAN LUIS OBISPO, CA
SHEET 1 OF 1 OF EXHIBIT "____"
1479-0007
1479-0007-LEGL-ELKS
NS
04/15/26
1" = 150'
LEGAL DESCRIPTION AREA
7,706 SQUARE FEET ±
FOUND MONUMENT AS NOTED
LEGEND
0 150'300'
(IN FEET)
75'
GRAPHIC SCALE
1 IN = 150 FT
N
For Review
04/15/2026 10:01:20 AM
3
A
3 A
Page 145 of 249
Page 146 of 249
ORDINANCE NO . 767 (1978 Series )
AN ORDINANCE OF THE CITY OF SAN LUIS OBISP O
GRANTING TO PACIFIC GAS AND ELECTRIC COMPANY ,
ITS SUCCESSORS AND ASSIGNS, THE FRANCHIS E
(1) TO USE, FOR TRANSMITTING AND DISTRIBUTIN G
ELECTRICITY SUITE D
FOR LIGHTING BUT FOR USE BY CONSUMERS FOR ANY
AND ALL LAWFUL PURPOSES OTHER THAN LIGHTING ,
ALL POLES, WIRES, CONDUITS AND APPURTENANCE S
WHICH ARE NOW OR MAY HEREAFTER BE LAWFULL Y
PLACED AND MAINTAINED IN THE PUBLIC STREET S
AND PLACES WITHIN THE CITY OF SAN LUIS OBISPO ,
UNDER THAT CERTAIN FRANCHISE OF GRANTEE AC -
QUIRED PURSUANT TO SECTION 19 OF ARTICLE X I
OF THE CONSTITUTION OF THE STATE OF CALIFORNIA ,
AS SAID SECTION EXISTED PRIOR TO ITS AMENDMEN T
ON OCTOBER 10, 1911 ; (2) TO CONSTRUCT, MAINTAI N
AND USE IN SAID PUBLIC STREETS AND PLACES AL L
POLES, WIRES, CONDUITS AND APPURTENANCES WHEN -
EVER AND WHEREVER SAID CONSTITUTIONAL FRANCHIS E
IS NOT NOW NOR SHALL HEREAFTER BE AVAILABL E
THEREFOR, NECESSARY TO TRANSMIT AND DISTRIBUT E
ELECTRICITY SUITE D
FOR, AND FOR USE BY CONSUMERS FOR, ANY OR AL L
LAWFUL PURPOSES ; AND (3) TO UTILIZE SAID POLES ,'
WIRES, CONDUITS AND APPURTENANCES IN SAID PUBLI C
STREETS AND PLACES FOR TRANSMITTING ELECTRICIT Y
_FOR USE OUTSIDE TH E
BOUNDARIES OF THE CITY FOR ANY AND ALL LAWFU L
PURPOSES, AND PROVIDING THE TERMS AND CONDITION S
OF THE FRANCHISE SO GRANTED .
BE IT ORDAINED by the Council of the City of San Lui s
Obispo as follows :
AG :ktm 3/8/7 8
rev .6 7rev.4/78
O 767
Page 147 of 249
SECTION 1 . DEFINITIONS .
Whenever in this ordinance the words and phrases herein -
after in this section defined are used, they shall have th e
respective meanings assigned to them in the following definitions :
(a)The word "grantee" shall mean Pacific Gas and Electri c
Company, and its lawful successors or assigns ;
(b)The word "city" shall mean the City of San Lui s
Obispo, a municipal corporation of the State of California ,
in its present incorporated form or in any later reorganized ,
consolidated, enlarged or reincorporated form ;
(c)The word "streets" shall mean the public streets, ways ,
alleys and places as the same now or may hereafter exis t
within city, including State highways, now or hereafte r
established within city, and freeways hereafter establishe d
within city ;
(d)The phrase "poles, wires, conduits and appurtenances "
shall mean poles, towers, supports, wires, conductors, cables ,
guys, stubs, platforms, crossarms, braces, transformers ,
insulators, conduits, ducts, vaults, manholes, meters, cut -
outs, switches, communication circuits, appliances, attach-
ments, 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 city, and used or usefu l
in transmitting and/or distributing electricity .
(e)The phrase "construct, maintain and use" shall mea n
to construct, erect, install, operate, maintain, use, repair ,
or replace ;
AG :ktm 3/8/78 -2 -
rev .6/5/78
Page 148 of 249
(f) The phrase "constitutional franchise" shall mean th e
right acquired through acceptance by grantee or its prede-
cessor in estate of the offer contained in the provision s
of Section 19 of Article XI of the Constitution of th e
State of California, as said section existed prior to it s
amendment on October 10, 1911 .
SECTION 2 . GRANT OF FRANCHISE .
The franchise (1) to use, for transmitting and distributin g
electricity suited for lighting but fo r
use by consumers for any and all lawful purposes other than lighting ,
all poles, wires, conduits and appurtenances which are now or ma y
hereafter be lawfully placed and maintained in the streets withi n
city under the constitutional franchise of grantee ; (2) to construct ,
maintain and use in said streets all poles, wires, conduits an d
appurtenances whenever and wherever the constitutional franchis e
of grantee is not now nor shall hereafter be available therefor ,
necessary to transmit and distribute electricity suited for, and fo r
use by consumers for, any or all lawful purposes ; (3) to utiliz e
said poles, wires, conduits and appurtenances in said publi c
streets and places for transmitting electricity for use outside th e
boundaries of city for any and all lawful purposes is hereb y
granted to Pacific Gas and Electric Company, its successors an d
assi g ns .
AG :ktm 3/8/78 -3 -
rev .6/5/7 8
rev .7/24/78 Page 149 of 249
SECTION 3 . RELOCATION OF FACILITIES .
Grantee of this franchise shall relocate, without expens e
to city, any poles, wires, conduits and appurtenances theretofor e
installed, and then maintained or used under this franchise, i f
and when made necessary by any lawful change of grade, alignmen t
or width of any streets by city, including the construction of an y
subway or viaduct, or any other conflict with a municipal govern-
ment purpose .
SECTION 4 . TERM .
Said franchise shall be indeterminate, that is to say ,
said franchise shall endure in full force and effect until th e
same shall, with the consent of the Public Utilities Commissio n
of the State of California, be voluntarily surrendered or aban-
doned by grantee, or until the state or some municipal or publi c
corporation thereunto duly authorized by law shall purchase b y
voluntary agreement or shall condemn and take under the powe r
of eminent domain, all property actually used and useful in th e
exercise of said franchise and situate in the territorial limit s
of the state, municipal or public corporation purchasing or con-
demning such property, or until said franchise shall be forfeite d
for noncompliance with its terms by grantee .
SECTION 5 . CONSIDERATION .
Grantee of said franchise shall during the term thereo f
pay to city a sum annually which shall be equivalent to two percen t
(2%) of the gross annual receipts of grantee arising from the use ,
operation or possession of said franchise ; provided, in case th e
AG :ktm 6/5/78 -4-
Page 150 of 249
State Legislature raises the minimum percentage allowable, th e
new rate shall apply ; and provided, however, that such paymen t
shall in no event be less than a sum which shall be equivalent t o
one-half percent (1/2%) of the gross annual receipts derived b y
grantee from the sale of electricity within the limits of city unde r
said franchise and said constitutional franchise .
In addition to the foregoing, grantee shall pay to cit y
within thirty (30) days of the issuance by the Public Utilitie s
Commission of a certificate of convenience and necessity t o
exercise the franchise the sum of Ten Thousand Dollars ($10,000 .00).
If, at any time after the payment of said sum, it shall be adjudge d
that said franchise did not become effective or was or is invalid ,
or if the grantee shall, at any time, be prevented by the city o r
by judgment procured by any other person from exercising the sam e
for any reason other than noncompliance with its terms by th e
grantee, then said sum of Ten Thousand Dollars ($10,000 .00) shal l
be forthwith repaid by the city to the grantee .
SECTION 6 . REPORTS .
Grantee shall file with the City Clerk within three (3 )
months after the expiration of the calendar year, or fractiona l
calendar year, following the date of the granting hereof, an d
within three (3) months after the expiration of each and ever y
calendar year thereafter, a duly verified statement showing i n
detail the total gross receipts of grantee during the precedin g
calendar year, or such fractional calendar year, from the sal e
of energy within city . Grantee shall pay to city within fiftee n
(15) days after the time for filing such statement, in lawfu l
AG :ktm 3/8/78 -5 -
rev . 6/5/78
Page 151 of 249
money of the United States, the aforesaid percentage of its gros s
receipts for such calendar year, or such fractional calendar year ,
covered by such statement . Any neglect, omission or refusal b y
grantee to file such verified statement, or to pay said percentag e
at the time and in the manner specified, shall be grounds for th e
declaration of a forfeiture of this franchise and of all right s
of grantee hereunder .
SECTION 7 . AUTHORITY FOR GRANT .
This franchise is granted under the Indeterminat e
Franchise Act of 1937 and pursuant to Article XIII of the Charte r
of the City of San Luis Obispo, adopted in 1955, and no othe r
authority .
SECTION 8 . COMPLIANCE WITH LAWS .
All facilities or equipment of grantee that grantee shal l
construct, maintain and use or remove, pursuant to the provision s
of the franchise granted herein shall be accomplished in accordanc e
with the ordinances, rules and regulations of city now or as here -
after adopted or prescribed which are not in conflict with th e
paramount authority of such rules, regulations and orders as ar e
promulgated or approved by or are filed with the Public Utilitie s
Commission or other governmental authority having jurisdiction i n
the premises .
SECTION 9 . ADMINISTRATIVE PRACTICES .
Grantee is herewith charged with the responsibility o f
preparing, with the cooperation of city, a manual of administrativ e
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Page 152 of 249
practices which shall govern the installation and removal of grantee's
facilities in the streets of city which shall include, but not b e
limited to, cathodic protection practices . Once each year, com-
mencing with the first full calendar year of the franchise grante d
herein, it is to be the joint responsibility of grantee and cit y
to review and update such administrative practices . Both grante e
and city are charged with the duty to review and update such admin-
istrative practices by a method of mutual cooperation which shal l
take into consideration the reasonable needs and convenience o f
each party ; provided that said administrative practices and th e
terms and conditions thereof shall be at all times subject t o
approval of the City Council as expressed by appropriate legis-
lative action, and shall not conflict with the paramount authorit y
of such rules, regulations and orders as are promulgated or approve d
by or are filed with the Public Utilities Commission or other govern -
mental authority having jurisdiction in the premises .
Following the preparation of said manual, and its approva l
by the City Council, it shall govern the practices of the grante e
in its installation and removal of grantee's facilities in th e
streets of city .
SECTION 10 .CITY RESERVED POWERS .
(a) City reserves the right for itself to lay, construct ,
erect, install, use, operate, repair, replace, remove, relocate ,
regrade or maintain below surface or above surface improvement s
of any type or description in, upon, along, across, under or ove r
the streets of the city . City further reserves the right to re -
locate, remove, vacate or replace the streets themselves . If th e
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necessary exercise of the aforementioned reserved rights is mad e
necessary in order to accommodate a municipal government purpos e
and conflicts with any poles, wires, conduits and appurtenance s
of grantee constructed, maintained and used pursuant to the pro -
visions of the franchise granted hereby, whether previously con-
structed, maintained and used or not, grantee shall, without cos t
or expense to city after written notice from the City Administativ e
Officer, or his designated representative, and request to do so ,
begin the physical field construction of changing the location o f
all facilities or equipment so conflicting . Grantee shall procee d
promptly to complete such required work .
(b) Irrespective of any other provision of this ordinance ,
grantee's right to construct, maintain and use, or remove poles ,
wires, conduits and appurtenances thereto shall be subject at al l
times to the right of city, in the reasonable exercise of it s
police power in response to a direct and immediate threat to th e
health or safety of the public, to require the removal or relocatio n
of said poles, wires, conduits and appurtenances thereto at th e
sole cost and expense of grantee .
SECTION 11 . REPAIR COSTS .
Grantee shall pay to city on demand the cost of al l
repairs to city property made necessary by any of the operation s
of grantee under the franchise granted hereby ; provided, however ,
that grantee may make repairs to streets, sidewalks, curbs an d
gutters itself at its own cost in accordance with city specifi-
cations if the same can be done without undue inconvenience t o
the public use of the streets .
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SECTION 12 . FORFEITURE .
This franchise is granted upon each and every conditio n
herein contained, and shall be strictly construed against grantee .
Nothing shall pass by the franchise granted hereby to grante e
unless it be granted in plain and unambiguous terms . Each o f
said conditions is a material and essential condition to th e
granting of the franchise . If grantee shall fail, neglect o r
refuse to comply with any of the conditions of the franchis e
granted hereby, and if such failure, neglect or refusal shal l
continue for more than thirty (30) days after written deman d
by the City Administrative Officer for compliance therewith, the n
city, by the City Council, in addition to all rights and remedie s
allowed by law, thereupon may terminate the right, privilege an d
franchise granted in and by this ordinance, and all the rights ,
privileges and the franchise of grantee granted hereby shal l
thereupon be at an end . Thereupon and immediately, grantee shal l
surrender all rights and privileges in and to the franchise grante d
hereby . No provision herein made for the purpose of securing th e
enforcement of the terms and conditions of the franchise grante d
hereby shall be deemed an exclusive remedy or to afford the ex-
clusive procedure for the enforcement of said terms and conditions ,
but the remedies and procedure outlined herein or provided, includin g
forfeiture, shall be deemed to be cumulative .
SECTION 13 . ACQUISITION AND VALUATION .
Nothing in this ordinance or in the franchise grante d
hereby shall be construed as in any way impairing city's right s
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to acquire property of grantee through the exercise of city's
power of eminent domain, or through voluntary agreement betwee n
city and grantee . In the event that city chooses to exercis e
its power of eminent domain, it shall do so in accordance wit h
the procedures provided by the general law of the State o f
California for the condemnation of public utility property .
The valuation of such property for condemnation purposes shal l
be made in accordance with such general law .
SECTION 14 . UNDERGROUNDING .
(a)It is the city's intent to underground all utilitie s
as expeditiously as possible .
(b)Presently, grantee is engaged in a program of con-
verting to underground certain of its facilities in accordanc e
with Decision No . 73078 of the California Public Utilities Com-
mission . At this time, said decision requires grantee to budge t
prior to the end of each calendar year, certain sums of money fo r
said program for the next succeeding year and allocate these sum s
to undergrounding projects in the various governmental juris-
dictions throughout grantee's entire service territory on th e
basis of the number of customers in each governmental jurisdiction .
Grantee shall at all times use its best efforts to accomplish a s
much conversion in the city as may be accomplished through th e
allocation or reallocation of funds by the California Publi c
Utilities Commission pursuant to Rule 20 .
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(c) In addition to the foregoing, grantee agrees to per-
mit city to install its conduits in grantee's trenches upon pay-
ment of city's proportionate share of trenching costs . Sai d
conduits shall include, but not be limited to, conduits fo r
street lighting, traffic signals and fire alarm systems .
SECTION 15 . HOLD HARMLESS .
Grantee of the franchise granted hereby shall indemnify ,
save and hold harmless, city and any officers and employees thereo f
against and from all damages, judgments, decrees, costs and expen-
ditures which city, or such officer or employee, may suffer, o r
which may be recovered from, or obtainable against city, or suc h
officer or employee, for, or by reason of, or growing out of o r
proximately resulting from the exercising by grantee of any or al l
of the rights or privileges granted hereby, or by reason of an y
act or acts of grantee or its servants or agents in exercisin g
the franchise granted hereby, and grantee shall defend any sui t
that may be instituted against city, or any officer or employe e
thereof, by reason of or growing out of or proximately resultin g
from the exercise by grantee of any or all of the rights or priv-
ileges granted hereby, or by reason of any act or acts of grantee ,
or its servants or agents, in exercising the franchise grante d
hereby .
SECTION 16 . EFFECTIVE DATE .
This ordinance shall become effective thirty (30) day s
after its final passage unless suspended by a referendum petitio n
filed as provided by law .
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SECTION 17 . WRITTEN ACCEPTANCE .
The franchise granted hereby shall not become operativ e
until written acceptance thereof shall have been filed by th e
grantee with the City Clerk .
SECTION 18 . PUBLICATION AND PUBLICATION COSTS .
This ordinance, together with the ayes and noes, shal l
be published once in full, at least three (3) days prior to it s
final passage in the Telegram-Tribune, a newspaper publishe d
and circulated in said city .
The grantee of said franchise shall pay to the city a
sum of money sufficient to reimburse it for all publicatio n
expenses incurred by it in connection with the granting thereof ;
such payment to be made within thirty (30) days after the cit y
shall have furnished such grantee with a written statement o f
such expense .
INTRODUCED AND PASSED TO PRINT by the Council of the Cit y
of San Luis Obispo at a regular meeting thereof held on the 18t h
day of July , 1978, on motion of Councilman Jorgensen, seconde d
by Councilman Settle , and on the following roll call vote :
AYES : Councilmen Dunin, Jorgensen, Petterson, Settle & Mayor Schwart z
NOES : Non e
ABSENT : Non e
ATTEST :
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rev .6/5/78
-12-Page 158 of 249
Approved as to form :Approved as to content :
WENDT, MITCHELL, SINSHEIMER ,
de la MOTTE & LILLE Y
City Attorne y
By Allen Grimes
'C ;;Ir<31City Administrate Office r
Director of Public Service s
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Page 159 of 249
ORDINANCE NO . 76 7
FINALLY PASSED this 1st day of August ,1978 ,
on motion of Councilman Settle seconded by
Councilman Jorgensen on the following roll call vote :
AYES : Councilmen Jorgensen, Petterson, Settle and Mayor Schwart z
NOES : Non e
ABSENT : Councilman Duni n
ATTEST :
Page 160 of 249