Resolution Number 66-1-24-2191
RESOLUTION NO. 66-1-24-2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JUAN CAPISTRANO ORDERING PUBLICATION OF NOTICE
INVITING BIDS FOR A NON-EXCLUSIVE FRANCHISE FOR THE
CONSTRUCTION, INSTALLATION AND OPERATION OF TELEVISION
RECEPTION AND TRANSMISSION SYSTEM
WHEREAS, pursuant to Section 6001 et seq, of the Public Utilities Code and
Section 53066 of the Government Code an application has been made to the City
Council of the City of San Juan Capistrano, California, by The McRae Company for
a non-exclusive franchise for the construction, operation and maintenance of a tele-
vision reception and transmission system, along, over, under and across the public
streets and highways within the incorporated limits of the City of San Juan
Capistrano; and
WHEREAS, the provisions of law relating to the granting of such franchise
require a call for bids therefore;
NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of San Juan
Capistrano that on Monday, the 9th day of May, 1966 at 7:30 PM at the Council
Chambers of the City Hall, 31762 Camino Capistrano, San Juan Capistrano, California,
be and it is hereby fixed as the time and place for the opening of sealed bids for
said franchise.
BE IT FURTHER RESOLVED AND ORDERED that the Clerk of this Council be and he
is hereby authorized and directed to cause a Notice Inviting Bids for such franchise
to be published in the Coastline Dispatch, a newspaper of general circulation,
printed and published in the City of San Juan Capistrano, once each week for four
successive weeks, beginning with the issue of the 6th day of April 1966. Full
publication shall':be completed not less than twenty (20) nor more than thirty (30)
days before the date herein set for the opening of the sealed bids. Said notice
shall be substantially in the following form:
NOTICE INVITING BIDS FOR A NON-EXCLUSIVE FRANCHISE FOR
THE CONSTRUCTION, INSTALLATION AND OPERATION OF A TELE-
VISION RECEPTION AND TRANSMISSION SYSTEM
NOTICE IS HEREBY GIVEN that an application has been made to the City Council
of the City of San Juan Capistrano, California, by The McRae Company, for a franchise
as hereinafter described, and it is proposed by said City Council to offer for sale
and grant by ordinance, to the highest bidder, a franchise on the terms and
conditions hereinafter set forth.
Said franchise is described, and will be granted substantially in the
following terms:
ORDINANCE NO.
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AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, GRANTING TO (name of successful bidder),
ITS SUCCESSOR AND ASSIGNS, A NON-EXCLUSIVE FRANCHISE
TO CONSTRUCT, INSTALL, MAINTAIN AND OPERATE A SYSTEM
OF POLES, WIRE, CONDUITS AND APPURTENANCES FOR A
COMMUNITY ANTENNA TELEVISION AND FM TRANSMISSION
SYSTEM IN, ALONG OR ACROSS, OVER OR UNDER THE PUBLIC
EASEMENTS WITHIN SAID CITY OF SAN JUAN CAPISTRANO
The City Council of the City of San Juan Capistrano, State of California,
does ordain as follows:
SECTION 1. The right, privilege, and non-exclusive franchise is hereby
granted to (name of successful bidder), its successors and assigns, to construct,
install, operate and maintain a television and FM reception and relay system,
together with all wiring, poles and equipment necessary or convenient to transmit
television and FM signals by coaxial cable, in, along or across, over or under
the public streets, highways, alleys, public properties or public easements
within the incorporated limites of the City of San Juan Capistrano, State of
California; provided however, that no poles shall be erected or maintained in
any public highway in which there then exists or is being erected a pole line or
any public or private corporation or person engaged in service to the public as
a public utility and which pole is reasonably available to the Grantee for use
pursuant to a pole rental agreement; and provided further that no poles of either
Grantee will be permitted which will parallel or duplicate existing pole lines of
any such private or public corporation or person to which reference has been here-
inabove made.
The said franchise and privilege shall be subordinate to any public utility
existing franchise or franchise hereinafter granted or lawful occupancy of any
public highway, street, orad or other public property for the purpose of erecting,
operating and maintaining poles, lines, conduits, cables, gas pipe lines and other
necessary fixtures used in connection with the purpose of said existing franchise
or franchises hereafter granted or any extension thereof.
SECTION 2. The term of this franchise shall commence with the effective
date hereof, and continue and remain in full force and effect for a term of
twenty-five (25) years, or until such time as Grantee shall surrender or abandon
the same, or until said franchise shall be forfeited for noncompliance by the
possessor thereof with its terms.
SECTION 3.
(a) The word "Grantee" wherever used herein shall mean those to whom the
non-exclusive franchise is granted under the terms and conditions of this ordinance,
their employees, agents, successors and assigns.
(b) The word "City" wherever used herein shall mean the City of San Juan
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Capistrano, State of California, in its present form or in any later recognized,
consolidated or enlarged form.
(c) "Highways" wherever used herein shall mean and include public highways,
streets, alleys, roads, ways or other public places, as the same now or hereafter
may be dedicated to the City of San Juan Capistrano for street purposes in said City.
(d) "Franchise property" as used herein shall mean all property constructed,
installed, operated or maintained in any public street or highway or public place
pursuant to any right of privilege granted by this franchise.
(e) "Abandon" as used herein shall refer to any franchise which, for a
continuous period of one (1) year, is not used by the Grantee to serve customers
within the City of San Juan Capistrano.
(f) Wherever the singular is used herein it shall include the plural, and
the plural shall include the singular.
SECTION 4. This ordinance granting said franchise shall take effect thirty
(30) days after its passage as to each grantee, provided said grantee shall file
with the Clerk of the City of San Juan Capistrano a written acceptance thereof within
thirty (30) days after its passage. Failure to file such written acceptance and
to comply with the bonding provisions hereinafter set forth within such time shall
make the franchise void and of no effect as it effects such Grantee. Grantee
shall, upon acceptance of the franchise, immediately commence work towards establi-
shing, constructing, installing and maintaining such television transmission system
and shall diligently prosecute the same to completion. Failure to do so shall work
as a cancellation of the granchise granted hereunder and the loss of any investment
made hereunder. Whether or not sufficient work is begun and whether or not the
work is prosecuted with diligence shall be decided by the City Council after hearing
thereon at which Grantee may be heard. This franchise and privilege is granted and
shall be held and enjoyed only under the provisions prescribed by law and those
contained in this ordinance. Failure to furnish the type of service as specified
in its bid shall be further grounds for the cancellation of any franchise granted
hereunder to any Grantee.
SECTION 5. All franchise property to be constructed and operated under this
franchise shall be built in a good and workmanlike manner and of good material, and
any and all poles or conduits laid, located or maintained under said franchise shall
be so placed as not to interfere with the use of said public highways for public
purposes. In constructing, installing, repairing and maintaining the franchise
property, lines, poles and conduits, the Grantee shall made and backfill all
excavations in such manner and way as to leave the surface of the highways in as
good condition as it was prior to said excavation, as well as to conform to the
statutes of the State of California, and ordinances of the City of San Juan Capis-
trano, including, but not limited to, Article 3, Division 3, Title 6 of the Codified
Ordinances of the County of Orange as they now exist or may hereafter be amended.
All franchise property shall be erected, installed and maintained to conform
to existing installations; that is to say, where utilities normally carried on
poles are installed underground, then franchise property shall be installed under-
ground in suitable conduits, either independently or in conjunction with existing
public utility conduits. In the event any area should change from overhead
utilities to underground utilities, franchise properties shall, at the time of
such change, be transferred, at the expense of Grantee, to such underground
facilities.
SECTION 6. Whenever any portion of the territory covered by this franchise
shall be annexed to, or otherwise become a part of any municipal corporation, or
of any other county, or of any other political subdivision of the State of
California, the,rights reserved under this franchise to the City of San Juan
Capistrano, or to any officer thereof shall inure to the benefits of such munici-
pal corporation or county, and its appropriate officers.
SECTION 7. If any construction, installation, or removal of franchise
property is to be done within the public street or highway, the Grantee shall
comply with the provisions of Sections 63.031 to 63.0329, inclusive, of the
Codified Ordinances of the County of Orange, as they now exist or may hereafter
be amended. All overheadfacilities authorized pursuant to this franchise shall
be constructed in conformance with General Orders of the California Public Utili-
ties Commission, and its rules and regulations now in effect, or any additions or
amendments thereto, hereafter adopted.
SECTION 8. Grantee shall not sell, transfer or assign this franchise or
any of the rights or privileges hereby granted without the prior consent of the
City Council, and except by a duly executed instrument in writing filed in the
Office of the City Clerk of the City of San Juan Capistrano.
SECTION 9• The City of San Juan Capistrano reserves the right to improve
any highway, street, alley, or other public places, or any portions thereof, over
and within which this franchise is granted, including the widening, change of
grade, change of alignment, construction or reconstruction of such highway, street
or alley, or portion thereof, and there is further reserved to the City of San
Juan Capistrano, the right to construct, reconstruct, install, repair and maintain
it any such highway, street, alley, or other public places, or any portions there-
of', any public improvement.
If notice in writing is given to the Grantee thirty (30) days in advance of
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the fact that work is to be done pursuant to any right reserved above in the
section, specifying the general nature of the work and the area in which the same
is to be performed, then the Grantee shall do all things necessary to protect
its franchise property during the progress of such work, and if necessary, the
Grantee shall relocate its franchise property within the highway, street, or alley
to such extent, in such manner and for such period as shall be necessary to permit
the performance of such work in an economical manner, and in accordance with the
generally recognized engineering and construction methods, and to permit the main-
tenance, operation and use of such public improvement, highway, street, or alley
so improved. All of such things to be done and work to be performed by the Grantee
shall be at the sole cost and, expense of the Grantee.
In the event that the City of San Juan Capistrano, or any public improvement
or service district within the City of San Juan Capistrano, shall hereafter con-
struct, install, reconstruct or repair any bridge or artificial support in or
underlying any highway, street or alley in which the Grantee's franchise property
is located, and in the event that the cost of such work as may be reasonably be
required is increased in order to provide for the installation, maintenance or
operation of Grantee's franchise property in or on the area covered by or underlain
by said bridge or other artificial support, the Grantee shall pay to the City of
San Juan Capistrano, or district doing such work the full amount of such increase
of cost, upon completion of such construction, installation or repair.
Any damage done directly or indirectly to any public street, highway, alley
or public improvement by the Grantee, in exercising directly or indirectly any
right, power or privilege under this franchise, or in performing any duty under
or pursuant to the provisions of the ordinance, shall be promptly repaired by said
Grantee at its sole cost and expense, to the complete satisfaction of the City.
SECTION 10. No franchise property shall be installed, constructed, erected
or operated until plans for same are approved and a permit issued by the City
Engineer of the City of San Juan Capistrano. The Grantee shall comply with any
instructions of the City Council or of said City Engineer with respect to the
location or relocation of any of said franchise property, and shall coordinate the
location or relocation of franchise property with said City Engineer.
SECTION 11. The Grantee shall hold the City of San Juan Capistrano, its
authorized officers, agents and employees, harmless from and against any and all
liability or loss resulting from claims .for damages by any person arising out of
the acts or omissions of the Grantee, its agents or employees in the performance of
any work authorized hereunder.
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SECTION 12. The wires, cables, poles, equipment, attachments, appurtenances
and appliances constructed, erected or maintained and operated under this franchise
shall be used for the transmission of television and FM signals from a Master
Antenna System operated by the Grantee herein, and not for the transmission of
signals or electrical impulses for a subscription television system.
SECTION 13. The Grantee, during the life of this franchise, shall keep on
file with the Clerk of the City of San Juan Capistrano and maintain in good stand-
ing a bond running to the City of San Juan Capistrano from a duly qualified corpor-
ate surety in the penal sum of One Thousand Dollars ($1,000.00) and conditioned
that such Grantee shall well and truly observe, fulfill and perform each term and
condition of this franchise and that in case of any breach of condition, the whole
amount of the penal sum herein named shall be deemed to be liquidated damages and
shall be recoverable from the principal and sureties upon said bond. Said bond
shall be filed by the Grantee with the City Clerk within five (5) days after this
franchise is awarded.
SECTION 14. The Grantee shall, during the life of this franchise, pay to the
City of San Juan Capistrano, in lawful money of the United States, two per cent
(2%) of the gross annual receipts of the Grantee arising from the use, operation, or
possession of this franchise. Payment of the percentage of gross receipts shall
begin at once on the granting of the franchise.
The Grantee shall file with the City Clerk of the City of San Juan Capistrano
within three (3) months after the expiration of the City's fiscal year, or fractional
fiscal year, following the effective date of this ordinance granting this franchise,
and within three (3) months after the expiration of each and every fiscal year
thereafter, a duly verified statement showing in detail the total gross receipts
of said Grantee during the preceding fiscal year, arising from the use, operation
or possession of this franchise. Within fifteen (15) days after the time for
filing the aforesaid statement, the Grantee shall pay to the City Treasurer of the
City of San Juan Capistrano, in lawful money of the United States, the aforesaid
two percent (2%) of its gross receipts arising from the use, operation or posses-
sion of this franchise during said preceding fiscal year, or such fractional
fiscal year.
SECTION 15. Any neglect, failure or refusal to comply with any of the con-
ditions of this franchise, which neglect, failure or refusal shall continue for
more than fifteen (15) days following notice thereof to the Grantee from the City,
shall work a forfeiture hereof, and the said City, by its City Council, may there-
upon declare this franchise forfeited, and may exclude said Grantee from further
use of the public streets, alleys, highways and public places of said City under
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this franchise; and said Grantee shall thereupon surrender all rights in and to
the same, and this franchise shall be deemed and shall remain null, void and of no
effect. Said Grantee shall immediately remove all franchise property from the
public streets, alleys, highways and public places of said City at Grantee's sole
cost and expense.
SECTION 16. Each of the Grantees shall not increase its customer rates and
charges, as set forth in the respective vids of the Grantees, for a period of five
(5) years from and after the effective date of the franchise. Thereafter, the
terms and conditions of this franchise, or any of them, including said customer
rates and charges, and fees due to the City from the Grantee of the franchise, may
at any time during the life of the franchise be amended or modified by the City
after notice to the Grantee and hearing thereon. Under this section the Grantee
may request that changes be made, Grantee shall at all timed, during the term of
the franchise, keep on file with the City Clerk, a correct mailing address for
purposes of notice as herein provided. A notice deposited in the United States
mail addressed to the Grantee, or his assignee, at the address on file, shall
constitute sufficient notice for any purpose under the franchise.
SECTION 17. The provisions of this franchise and all rights, obligations and
duties hereunder shall inure to and be ginding upon the Grantee, its successors
and assigns.
SECTION 18. The City Clerk of the City of San Juan Capistrano shall certify
to the adoption of the ordinance granting this franchise and shall, before the
expiration of fifteen (15) days after the passage thereof, cause the same to be
published once, with the names of the members of the City Council voting for and
against the same in the Coastline Dispatch, a newspaper of general circulation
printed and published in said City.
NOTICE IS FURTHER GIVEN that each bidder shall specify in his bid, the following;
1. (a) If an individual, his full name, address and duration of residence
at such address.
(b) If a partnership, the full names and addresses of all the partners,
and the duration of their residence at such addresses.
(c) If a corporation, the name of the corporation and the location of
its principle office, together with the names and addresses of
the principle officers of such corporation.
2. That the bidder desires the requested franchise for a period of twenty-
five (25) years, unless otherwise provided by the terms of the franchise as granted.
3. A general description of the City area for which service will be pro-
vided, and the location of the master antenna or antennas proposed to be utilized
in exercising the proposed franchise.
4. A schedule of the rates and charges bidder proposes to make to each
customer, and the frequency of collection.
5. The amount the bidder proposes to pay the City of San Juan Capistrano
as consideration for the grant of the franchise. Cash or a certified check in
said amount payable to the City of San Juan Capistrano shall be included with each
bid.
6. Such proposition, terms or conditions as bidder may desire to offer or _
receive the benefit from an addition to or in conflict with terms and conditions
specified in this Notice.
BIDDERS ARE FURTHER NOTIFIED that:
1. The award of this franchise may be made by the City Council on the
basis of quality or service, rates to the subscribers, income to the City, exper-
ience and financial responsibility of the applicant plus any other considerations
that will safeguard the local public interest, pursuant to Section 53066 of the
Government Code.
2. The City Council reserves the right of reject any and all bids or to
waive any irregularities in any bid.
3. If the applicant does not bid for the franchise and the franchise is
not awarded to any person, or if the franchise is awarded to the applicant and he
fails to accept it, the applicant shall pay the entire cost of the publication of
the Notice of Sale. The amount of money which he deposited shall first be applied,
and, if insufficient, within thirty (30) days of notice thereof, the applicant
shall pay the difference to the City.
4. If the franchise is awarded to a person other than the applicant, such
Grantee shall pay all publication costs to the City, and upon such payment, the
City shall refund to the applicant the amount which he deposited, minus such
portion thereof, if any, already refunded to him.
NOTICE IS FURTHER GIVEN that sealed bids in writing will be received for
said franchise up to 7:30 o'clock PM on the 9th day of May, 1966, and at the time
above mentioned in the office of the City Clerk of the City of San Juan Capistrano,
any and all sealed bids will be opened; and that the franchise will be struck off,
sold and awarded to the person, firm or corporation making the highest and best
bid therefor; that at the time of the opening of the bids any person, firm or
corporation, who to the satisfaction of the City Council is responsible, present
or represented, may bid for the franchise a sum not less than ten per cent (10%)
above the highest cash bid therefor, and the bid so made may be raised not less than
ten per cent (10%) by any otherresponsible bidder and the bidding may so continue
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until the franchise is finally struck off, sold, and awarded to the highest or
best responsible bidder therefor in lawful money of the United States.
Each sealed bid shall be accompanied with cash or a certified check payable
to the Treasurer of the City of San Juan Capistrano, for the full amount of the
bid, and no sealed bid shall be considered unless said cash or check is enclosed
therewith. Any successful bidder shall deposit at least ten per cent (10%) of the
amount of his bid with the City Clerk of the City of San Juan Capistrano before
the franchise is struck off to him. I£ such a successful bidder fails to make the
deposit immediately, his bid shall not be received, and is void, and the franchise
shall then and there be again offered for sale to the next highest or best bidder,
subject to the same conditions as above mentioned. This procedures shall be had
until the franchise is struck off, sold and awarded to a bidder who makes the
necessary deposit of at least ten per cent (10%) of the amount of his bid as pro-
vided herein.
Any successful bidder shall further deposit with the City Clerk of the City
of San Juan Capistrano, within twenty four (24) hours of acceptance of his bid,
the remaining ninety per cent (90%) of the amount thereof. If such bidder fails
to deposit said remaining ninety per cent (90%) of his bid with said City Clerk
within twenty-four (24) hours after its acceptance, the award to him of the franchise
shall be set aside, the deposit made by him shall be forfeited, and no further
proceedings for a sale of the franchise shall be had unless it is readvertised and
man duan uapisLrano
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF SAN JUAN CAPISTRANO )
ss
I, ERNEST A. THOMPSON, City Clerk of the City of San Juan Capistrano, hereby
certify that the foregoing is a true and correct copy of a resolution of the City
Council of said City numbered 66-1-24-2, adopted by the City Council of said City
on the 24th day of January, 1966, and. was so passed and adopted by the following
stated vote, to wit:
AYES: COUNCILMEN: BATHGATE, BUCHHEIM, CHERMAK, OLIVARES and DURNFORD
NOES: COUNCILMEN: NONE
ABSENT: COUNCILMEN: NONE
and was thereafter on said day signed and approved by the Mayor of said Cite
Cit Clerk of the City of�
San Juan Capistrano