It is the purpose and intent of the city council of the city of Los Alamitos by enacting this chapter to establish nondiscriminatory procedures for the granting of franchises to use and occupy the public rights-of-way. The city has the authority to manage public property through its police power, charter, and other statutory and constitutional powers granted to municipalities. The authority and procedures contained herein are intended to ensure that applicants seeking to occupy the public right-of-way for commercial purposes are treated fairly with sufficient consideration for due process, and that the city's responsibility to control and demand a fair rate of compensation for the public for such use is preserved.
(Ord. 604 § 1, 1997)
"Franchise"
means and includes any authorization granted hereunder in terms of franchise, privilege, or otherwise to erect, construct, install, operate, or maintain a facility for commercial purposes by occupying the public right-of-way within all or a specified area in the city. Any such authorization shall not mean or include any license or permit required for the privilege of transacting and carrying on a business within the city generally as required by other ordinances and laws of this city.
"Franchise agreement"
means a negotiated agreement between the franchisee and the city which sets forth the terms and conditions of the grant of franchise.
"Franchisee"
means the person, firm, or corporation granted a franchise by the city council under this chapter, and the lawful successor, transferee, or assignee of such person, firm, or corporation.
"Right-of-way"
means any public highway, public street, public way, or public place in the city, either owned by the city or dedicated to the public for public purposes.
(Ord. 604 § 1, 1997)
The city council of the city of Los Alamitos shall have the authority to grant a franchise, whether exclusive or nonexclusive, to erect, construct, install, operate, or maintain a facility for commercial purposes by occupying the public right-of-way as approved by the city council and subject to the terms and conditions of this chapter and any franchise agreement executed between the city and the franchisee.
(Ord. 604 § 1, 1997)
A. 
Following the effective date of this chapter, no person shall erect, install, or construct any permanent facility for commercial purposes within the public right-of-way unless the person has first obtained a franchise for such use granted by the city council under such terms and restrictions as are set forth herein.
B. 
No person shall operate or maintain a permanent facility for commercial use which is erected, installed, or constructed within the public right-of-way following the effective date of this chapter unless the person has first obtained a franchise for such use pursuant to the provisions of this chapter or has obtained some other specific grant of authority from the city for the use of the public right-of-way.
C. 
The procedures set forth herein shall not be applied to any facility, or the operation and maintenance of any facility, which is now or hereafter otherwise specifically authorized to locate in the public right-of-way by federal, state, or local laws, and for which all required approvals by the city are properly obtained.
(Ord. 604 § 1, 1997)
Franchisee shall be subject to all provisions of the franchise agreement and all applicable laws, ordinances, and regulations of the city of Los Alamitos, county of Orange, Orange County transportation agency (OCTA), state of California, United States of America, and any other public agency having jurisdiction over territory located within the city. The grant of a franchise shall not relieve the franchisee of any obligation under the Los Alamitos Municipal Code to obtain any building and construction permits, public works permits, encroachment permits, use permits, or any other specific authorization that may be required for the proposed project.
(Ord. 604 § 1, 1997)
Negotiation and grant of a nonexclusive franchise shall comply with the following procedural requirements:
A. 
Each applicant for a franchise shall submit the following to the city:
1. 
A written request and application for franchise to the city manager or his/her designee in a form prescribed by the city manager or designee; and
2. 
A proposal identifying the requested use of the public right-of-way, proposed locations of right-of-way occupation, method of construction, time of construction, hours of operation, resources and procedures for maintenance, the amount and method of compensation to the city, and the initial term of the proposed franchise and any renewal, if applicable; and
3. 
All applicable fees required by ordinance or resolution of the city council.
B. 
The city manager or designee shall negotiate a draft franchise agreement between the applicant and the city in consultation with the city attorney. The applicant shall sign the draft franchise agreement indicating acceptance of the terms prior to submission to city council for consideration.
C. 
The city council shall hold a public hearing to consider a resolution accepting the franchise agreement and granting the franchise accordingly. At least ten days prior to the hearing, the city shall publish notice of public hearing and intent to grant a franchise in any newspaper of general circulation in the community and post said notice in at least three posting places throughout the city.
D. 
The city council may approve and accept the franchise agreement and grant the franchise by resolution, deny the application for franchise, or continue the decision to grant the franchise and return the franchise agreement with direction for further negotiation between city staff and the applicant.
(Ord. 604 § 1, 1997)
Negotiation and grant of an exclusive franchise shall comply with the following procedural requirements:
A. 
Each applicant for a franchise shall submit the following to the city:
1. 
A written request and application for exclusive franchise to the city manager or his/her designee in a form prescribed by the city manager or designee; and
2. 
A proposal identifying the requested use of the public right-of-way, proposed locations of right-of-way occupation, method of construction, time of construction, hours of operation, resources and procedures for maintenance, the amount and method of compensation to the city, and the initial term of proposed franchise and any renewal, if applicable; and
3. 
All applicable fees required by ordinance or resolution of the city council.
B. 
The city council shall accept the application and consider a resolution of intention to consider an exclusive franchise and call for proposals which recites the terms under which the city intends to grant the franchise.
C. 
If said resolution is adopted by the city council, the city shall publish within ten days after adoption of the resolution a "notice of intention to consider an exclusive franchise and call for proposals" in any newspaper of general circulation in the community and post said notice in at least three posting places throughout the city. The notice shall invite competing proposals to be submitted to the city manager within 60 days of the date the resolution of intention to consider an exclusive franchise and call for proposals was adopted. The city manager or designee may also send notice to any other persons potentially interested in submitting a proposal.
D. 
The city manager or designee shall consider all proposals and submit one or more of the proposals to the city council for final selection. The city council shall select one proposal and direct the city manager or designee to negotiate a draft franchise agreement between the city and the party submitting the selected proposal. The city manager or designee shall negotiate the draft franchise agreement in accordance with the terms of the proposal, the provisions of this chapter, and the best interests of the city.
E. 
The city council shall hold a public hearing to consider a resolution accepting the franchise agreement and granting the exclusive franchise accordingly. At least ten days prior to the hearing, the city shall publish notice of public hearing and intent to grant an exclusive franchise in any newspaper of general circulation in the community and post said notice in at least three posting places throughout the city. The notice shall state the date, time, and location of the public hearing for protests and public comments to be heard.
F. 
The city council may approve and accept the franchise agreement and grant the franchise by resolution, deny the application for franchise, or continue the decision to grant the franchise and return the franchise agreement with direction for further negotiation between city staff and the proposed franchisee.
(Ord. 604 § 1, 1997)
Franchisee shall be subject to all other conditions, restrictions, and specifications as outlined in the franchise agreement negotiated between the city and franchisee as adopted and approved by resolution of the city council.
(Ord. 604 § 1, 1997)
Franchisee shall agree, and shall so state in the franchise agreement, to indemnify, protect, defend, and hold harmless the city, its officers, officials, employees, and agents against any and all claims, demands, losses, costs, expenses, penalties, damages, or liability of any kind or nature, including but not limited to injury, death of persons, damage to property, and any attorney fees, arising directly or indirectly out of franchisee's exercise or enjoyment of its franchise, or any other negligent or wrongful acts or omissions by franchisee, its officers, employees, or agents, excepting only liability arising out of the sole negligence of the city. Further, franchisee shall agree, and shall so state in the franchise agreement, to indemnify, protect, defend, and hold harmless the city, its officers, officials, employees, and agents against any and all claims, demands, losses, costs, expenses, penalties, damages, or liability of any kind or nature resulting from, or arising with respect to, the award of the franchise, including but not limited to the procedure for accepting and reviewing proposals and the decision of award, negligent or otherwise, including but not limited to a claim of bad faith.
(Ord. 604 § 1, 1997)