No person, firm or corporation shall exercise in the city of Sunnyvale any franchise right or privilege mentioned in Article XVI of the city Charter, except insofar as he or it may be entitled to do so by direct authority of the Constitution of the state of California or of the United States, unless he or it shall have obtained a grant therefor in accordance with the provisions of this chapter and of the applicable provisions of the Charter. Nothing in this chapter contained shall be construed to invalidate any lawful franchise heretofore granted, nor to necessitate the obtaining of a new franchise for a use for which a franchise holder shall have a valid unexpired franchise.
(Prior code § 11-2.01)
An applicant for any franchise shall file with the council a verified application which shall state (1) the name of the applicant, (2) the purpose and term whether definite or indeterminate, for which the franchise is desired, (3) the amounts or percentages, if any, applicant, if granted the franchise, will pay to the city during the life of such franchise, (4) any limitations as to time, place or type of services proposed by applicant, and (5) any other terms or conditions that applicant may desire, including surrender of existing franchises, or parts thereof, or claims to such franchises, or proposals to settle any litigation or controversies between applicant and the city. The council may require such other information as it deems necessary.
(Prior code § 11-2.02)
Every application for a franchise shall be accompanied by a cash deposit of not less than three hundred dollars, or by a certified check for said amount, payable to the city treasurer, as a fund out of which to pay all expenses connected with such application. The deposit of the applicant shall be retained until the acceptance of the franchise and the filing of any bond or other security required or until the council determines not to grant the franchise. Whereupon the remainder, if any, of the three hundred dollars shall be returned after the payment therefrom of all expenses incurred by the city in connection with the advertising, engineering, clerical work and awarding of such franchise.
(Prior code § 11-2.03)
(a) 
Every application made to the council for a franchise mentioned in this chapter shall, before any action is taken thereon, be referred by the council to the city manager for his recommendation and report.
(b) 
If, in the judgment of the city manager, the franchise applied for should not be granted, he shall so report stating the reasons therefor; and if, in his judgment, such franchise should be granted, he shall recommend the terms and conditions upon which the same should be granted.
(Prior code § 11-2.04)
(a) 
Upon receipt of the city manager's recommendation the council, if it desires to consider the granting of the franchise, shall pass a resolution declaring its intention to consider the application, stating the character of the franchise, setting forth a notice of the day, hour and place when and where any and all persons may appear before the council and be heard thereon, and directing the city clerk to publish said notice in the official newspaper at least once within ten days after the passage of the resolution. The time fixed for such hearing shall not be less than fifteen nor more than sixty days after the date of the passage of the resolution.
(b) 
Such notice shall state the name of the applicant, the character of the franchise, its term, whether definite or indeterminate, the amounts or percentages, if any, grantee shall pay to the city during the life of such franchise, any limitations as to time, place or type of service proposed, together with a general statement of the other major provisions of the proposed franchise, and that copies of the proposed franchise may be obtained at the office of the city clerk.
(c) 
The council may, in its discretion, as a part of said notice, advertise for competitive bids for the purchase of said franchise.
(Prior code § 11-2.05)
Any time no later than the hour set for the hearing, any person interested may make written protest stating objections against the granting of such franchise. Such protests must be signed by the protestant and be delivered to the city clerk.
(Prior code § 11-2.06)
(a) 
At the time set for the hearing, the council shall proceed to hear the matter and all persons shall be given opportunity to present their arguments. The council may adjourn the hearing from time to time.
(b) 
Any franchise granted shall be by ordinance adopted in the manner prescribed by the Charter for the enactment of ordinances.
(Prior code § 11-2.07)
Any franchise granted hereunder shall not become effective until written acceptance thereof shall have been filed by the grantee thereof with the city clerk. Such acceptance shall be filed within ten days after the ordinance granting the franchise becomes effective unless the time is extended by the city council.
(Prior code § 11-2.08)
Any franchise granted by the city with respect to a particular utility service shall be in lieu of all other franchises, rights, or privileges then owned by the grantee for the furnishing of that particular utility or service within the limits of the city as they now or may hereafter exist and by acceptance of any franchise hereunder the grantee shall be deemed to have waived and abandoned all other franchises, rights and privileges then owned by the grantee for the furnishing of that particular utility or service within the limits of the city as they now or may hereafter exist. The provisions of this section shall not apply to any franchise, right or privilege obtained by direct authority of the Constitution of the state of California or of the United States.
(Prior code § 11-2.09)
By its acceptance of any franchise, the grantee shall covenant and agree to perform and be bound by each and all of the terms and conditions imposed by the Charter, this chapter, and the franchise.
(Prior code § 11-2.10)
The council may require the grantee of any franchise to provide such bond or other security as it deems the public interest requires.
(Prior code § 11-2.11)
A franchise grant may be indeterminate, that is, it may provide that it shall endure in full force and effect until the same, with the consent of the appropriate state or federal agency, shall be voluntarily surrendered or abandoned by its possessor, or until the state of California, or some municipal or public corporation, duly authorized by law, shall purchase by voluntary agreement or shall condemn and take, under the power of eminent domain, the property actually used and useful in the exercise of such franchise and situate within the territorial limits of the city of Sunnyvale, as they now or may hereafter exist, or until the franchise shall be forfeited for noncompliance with its terms by the possessor thereof, or until it is terminated in any other manner that may be specified in the franchise grant.
(Prior code § 11-2.12)
(a) 
As part of the consideration for the granting of each franchise, the grantee shall agree to the purchase price, if any, for the franchise as set forth in the franchise, and to make the franchise payment, if any such payment shall have been fixed by the council, and the grantee shall also agree to perform all covenants and agreements set out in the franchise to be performed by the grantee.
(b) 
The city council shall have the right to recognize that extensions of service, betterment of services, surrendering of existing franchises or parts thereof, settling litigation between the grantee and the city, or the performance by grantee of franchise obligations, may be considerations (other than the franchise payment) of benefit to the city and its inhabitants, and in determining the amount of adequate consideration for the franchise or the amount of franchise payment, if any, to be paid by a grantee, the city council shall have the right to give weight to such factors.
(c) 
Where the city council has fixed a percentage of gross receipts to be paid for the exercise of grantee's franchise, and where the operations of the grantee extend beyond the territorial boundaries of the city, the city council shall have the right to allocate such percentage payments so that such grantee shall pay only for its operations, for which a franchise is required, within the city.
(Prior code § 11-2.13)
The council may likewise in the case of communication companies collecting tolls for both local and out of city business, interurban transportation companies and other companies as to which practical difficulties may arise as to the segregation between local and other tolls, fares or charges, provide for a segregation as between such local and other tolls, fares or charges. In franchises covering operations as to which the requirement of payments of a percentage of gross receipts is not practical, the council shall fix a basis for computing the franchise payments, if any, to be paid by grantee.
(Prior code § 11-2.14)
Every franchise shall be subject to the following conditions:
(a) 
The grantee shall construct, install and maintain all tracks, pipes, tubes, conduits, poles, wires, instrumentalities and appurtenances in accordance and in conformity with all of the lawful ordinances, rules and regulations theretofore or thereafter adopted by the council in the exercise of its police powers, and, as to state highways, subject to the provisions of general laws relating to the location and maintenance of such facilities therein.
(b) 
The grantee shall pay to the city on demand the cost of all repairs to public property made necessary by or proximately resulting from any operations of the grantee under such franchise, ordinary wear and tear excepted.
(c) 
The grantee shall indemnify and hold harmless the city and its officers and employees from any and all liability for damages proximately resulting from any operations under such franchise.
(d) 
The grantee shall permit such examination of its records by the city as are material to the determination of the performance of the franchise obligations and shall make such reports as the franchise may specify.
(Prior code § 11-2.15)
In the discretion of the city council, the grantee of any franchise may be required to move or relocate any facilities installed, used and maintained under the franchise if and when made necessary by any lawful change of grade, alignment or width of any public street, way, alley or place, including the construction of any bridge, tube, subway, viaduct or other highway structure, or any lawful public work of a governmental character incidental to the use of city streets for travel purposes, and so long as the location of the facilities involved constitute a city street under the jurisdiction of the city. The city council shall have the right to allocate the expense of such moving or relocation between the city and the grantee of a franchise, except where the exclusive jurisdiction thereover is in the public utilities commission.
(Prior code § 11-2.16)
No transfer, assignment or lease of any franchise shall have any validity unless and until:
(a) 
The grantee or holder of any judgment or decree of foreclosure or quiet title shall have duly executed a good and sufficient instrument making such transfer, assignment or lease, and a duplicate original thereof shall have been filed in the office of the city clerk;
(b) 
An ordinance of the city consenting to such transfer, assignment or lease shall have been duly adopted and become effective;
(c) 
The transferee, assignee, lessee, vendee or holder of any judgment or decree of foreclosure or quiet title shall duly execute and file in the office of the city clerk a good and sufficient instrument accepting such transfer, assignment or lease, assuming all the obligations of the grantee under the franchise;
(d) 
The transferee, assignee, lessee or vendee shall duly execute and file in the office of the city clerk of the city a good and sufficient instrument surrendering to the city all franchises, rights and privileges, which the transferee, assignee, lessee, or vendee would have been required to surrender under the provisions thereof, if such transferee, assignee, lessee, or vendee had been the original grantee thereof.
Provided, however, that the terms of subsection (a), (b), (c) and (d) of this section shall not apply to any mortgage or deed of trust made in good faith by the grantee, or by any person, firm or corporation under a transfer, assignment or lease made in full accordance with the provisions of this section; but the terms of subsections (a), (c) and (d) shall apply and the terms of subsection (b) shall not apply to any buyer at a sale under any mortgage or deed of trust.
(Prior code § 11-2.17)
If any person, firm or corporation shall exercise a right or privilege for which he or it is required by the charter to obtain a franchise without having first obtained such franchise from the city, the city may establish by ordinance the reasonable amount or percentage that such person, firm or corporation shall pay to the city for the exercise of such right or privilege within the city for which a franchise is required and if such person, firm or corporation shall thereafter fail to pay to the city on demand such amount or percentage which has been so established by ordinance, the city shall have the right to enforce the payment thereof from such person, firm or corporation. If the grantee of any franchise shall fail or refuse to comply with any of the provisions or conditions set out in any franchise ordinance enacted by the city council, the city may declare a forfeiture, and/or may sue each person, firm or corporation for damages for such noncompliance, and/or may exercise any other rights or remedies provided by law.
(Prior code § 11-2.18)
(a) 
When the council finds that an emergency exists and that public convenience and necessity require it, and that by reason of such emergency the operation or performance of a utility service should be permitted before the securing of a franchise under this chapter is possible, the council, by resolution, may grant to any applicant for a franchise under the ordinance a special permit to operate in the city of Sunnyvale.
(b) 
Such special permit shall only be granted to an applicant for a franchise under this chapter, and after the filing of the application for a franchise as in this chapter provided.
(c) 
An application for a special permit shall be filed in writing with the council setting forth such information as will permit action thereon.
(d) 
All such special permits shall be granted under the express condition that if a franchise is not granted and accepted, all work done under such special permit shall be removed immediately at applicant's expense and the streets or alleys or other public places affected by such work shall be placed in as good condition as before such work was done, all to the satisfaction of the city.
(e) 
The council may require, as a condition to the granting of such special permits, that a bond of a kind and in an amount determined by it shall be furnished by applicant conditioned upon the faithful performance of the terms and conditions of the permit and further conditioned that applicant shall prosecute diligently to completion all work thereunder including removal work as hereinbefore provided.
(f) 
Applications for permits under this section shall be referred to the city manager in the manner provided in Section 15.12.040.
(Prior code § 11-2.19)
The following ordinances of the city of Sunnyvale relating to the granting of franchises are hereby continued in effect until hereafter superseded or repealed by proper authority:
Ordinance No. 109 — Ordinance granting to Pacific Gas and Electric Company, its successors and assigns, the right, privilege and franchise of laying, maintaining and using, for the purpose of conveying, distributing and supplying as to the public and particularly to the inhabitants of the town of Sunnyvale, in the county of Santa Clara, state of California, for light, heat, power and all lawful purposes, gas pipes, mains and conduits in so many and in such parts of the public highways, streets and alleys of said town of Sunnyvale as the grantee may elect to use for the purpose aforesaid. Date passed September 17, 1923.
Ordinance Number 200 — Ordinance granting to Pacific Gas and Electric Company, its successors and assigns, the franchise to construct and use, for transmitting and distributing electricity to the public for any and all purposes poles, wires, conduits and appurtenances, including communication circuits, necessary or proper therefor, in, along, across, upon and under the public streets, ways and places within the city of Sunnyvale. Date passed February 21, 1938.
Ordinance Number 232 — An ordinance granting to Pacific Homes, Inc., its successors and assigns, the franchise to construct, use and maintain a domestic water distribution system and a sanitary sewerage collection system in and for Tract No. 209, Homewood Map No. 2, Sunnyvale, California. Date passed July 6, 1942.
Ordinance Number 234 — An ordinance grating to J. H. Rodda, his successors and assigns, the franchise to construct and maintain a water distribution and sanitary sewage collection systems for the Pioneer Homes Subdivisions in the city of Sunnyvale. Date passed November 2, 1942.
Ordinance Number 235 — An ordinance granting to Pacific Homes, Inc., its successors and assigns, the franchise to construct, use and maintain a domestic water distribution system in and for Tract No. 213, Homewood Map No. 3, Sunnyvale, California. Date passed November 16, 1942.
Ordinance Number 236 — An ordinance granting to residential Victory Homes, Inc., its successors and assigns, franchise to construct, use and maintain a domestic water distribution system and a sanitary sewerage collection system in and for Victory Village Subdivisions in the city of Sunnyvale, California. Date passed November 16, 1942.
Ordinance Number 366 — Ordinance granting to Pacific Gas and Electric Company, its successors and assigns, the franchise to install, maintain and use pipes and appurtenances for transmitting and distributing gas for any and all purposes under, along, across or upon the public streets and places as the same now or may hereafter exist within the city of Sunnyvale. Date passed February 17, 1953.
Ordinance Number 468 — An ordinance granting a franchise to California Water Service Company, its successors and assigns, to install and maintain pipes and appurtenances for transmitting and distributing water and to operate a water system in certain areas of the city of Sunnyvale; setting forth the conditions accompanying the grant of franchise and to prescribe penalties for the violations of its provisions. Date passed November 8, 1955.
(Prior code § 11-2.20)