TO:Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM:Len Gorecki, Assistant City Manager/Public Works Director Kimberly Gonzalez, Public Works Coordinator
SUBJECT: Consideration and possible action to waive further reading and adopt Ordinance No. 1454 – An Ordinance granting to Bellflower- Somerset Mutual Water Company a franchise agreement to
transmit and distribute potable water in, under, along, across, or upon City’s public streets, ways, alleys and places [Agreement File No. 320.9].
DATE:April 27, 2026
EXECUTIVE SUMMARY
Ordinance No. 1454 was introduced on April 13, 2026. Second reading and adoption is recommended. If adopted, the Ordinance will take effect in 30 days.
RECOMMENDATION TO CITY COUNCIL
1) Waive further reading and adopt Ordinance No. 1454 granting a Water Franchise to Bellflower-Somerset Mutual Water Company; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
None.
ATTACHMENTS
April 13, 2026, Staff Report (Without Attachments) ......................................................... 2 Ordinance No. 1454 ........................................................................................................ 4 15-F
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TO:Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM:Len Gorecki, Assistant City Manager/Public Works Director SUBJECT: Consideration and possible action to conduct a public hearing to consider reading by title only, waiving further reading, and introducing Ordinance No. 1454 – An Ordinance granting to Bellflower-Somerset Mutual Water Company a franchise to transmit and distribute potable water in, under, along, across, or upon, City’s public streets, ways, alleys and places [Agreement File No. 320.9].
DATE:April 13, 2026
EXECUTIVE SUMMARY
On March 9, 2026, the City Council adopted Resolution No. 26-07 to set a Public Hearing regarding its intent to grant a Water Franchise to Bellflower-Somerset Mutual Water Company on April 13, 2026. If approved, Ordinance No. 1454 will grant a Water Franchise to Bellflower-Somerset Mutual Water Company (BSMWC) for the purpose of transmitting and distributing water within the public right-of-way.
RECOMMENDATION TO CITY COUNCIL
1) Open the public hearing; take testimonial and documentary evidence, and after considering the evidence, introduce Ordinance No. 1454 granting a Water Franchise to Bellflower-Somerset Mutual Water Company; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
Based on the past ten-year average of franchise fees paid by Bellflower-Somerset Mutual Water Company to the City, it is anticipated that the annual franchise fee associated with this Water Franchise will generate approximately $80,000 for the City. 12-C
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Staff Report – Ordinance No. 1454 Granting a Water Franchise to Bellflower- Somerset Mutual Water Company
April 13, 2026
DISCUSSION
In April 2001, the City granted a Franchise Agreement to Bellflower-Somerset Mutual Water Company for the purpose of transmitting and distributing potable water within the public right-of-way throughout the City. While the Franchise Agreement technically expired in May 2021, BSMWC has continued to operate its water system in good faith and partnership with the City and has continued to make its annual franchise fee payments in accordance with the agreement.
The proposed Ordinance would grant a new Water Franchise to Bellflower-Somerset Mutual Water Company for a term of twenty-five (25) years, retroactive to May 2021; revise the annual franchise fee payment due date from January 2nd to January 15th of each year; and include updated insurance requirements and terminology.
As required by Public Utilities Code Section 6231, BSMWC will continue to pay an annual franchise fee to the City in the amount of 2% of its gross annual receipts from its retail water sales for the duration of the agreement.
On March 9, 2026, the City Council adopted Resolution No. 26-07 to set a Public Hearing regarding its intent to grant a Water Franchise to Bellflower-Somerset Mutual Water Company on April 13, 2026. If approved tonight, the second reading and adoption of the Ordinance will be scheduled for the April 27, 2026, City Council Meeting.
ATTACHMENTS
Resolution No. 26-07 ..............................................................................................................3 Public Notice ............................................................................................................................6 Ordinance No. 1454 ................................................................................................................7 -3-
CITY OF BELLFLOWER
ORDINANCE NO. 1454
AN ORDINANCE GRANTING TO BELLFLOWER-SOMERSET MUTUAL
WATER COMPANY A FRANCHISE TO TRANSMIT AND DISTRIBUTE
POTABLE WATER IN, UNDER, ALONG, ACROSS OR UPON CITY’S
PUBLIC STREETS, WAYS, ALLEYS AND PLACES
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
SECTION 1. RECITALS.
The City Council finds and determines as follows:
A. The City of Bellflower (“City”) received an application from Bellflower-Somerset Mutual Water Company (“BSMWC”) for a franchise to lay and use pipes and appurtenances for transmitting and distributing potable water in, under, along, across or upon City’s public streets, ways, alleys and places.
B. In accordance with applicable law, the City Council, at a regular meeting held on February 12, 2001, declared its intention to grant said franchise agreement to BSMWC by adopting Resolution No. 01-14.
C. The City Council also conducted a duly noticed public hearing on March 26, 2001, and after considering all oral and written testimony at said hearing, approved the granting of this franchise agreement to BSMWC in accordance with the terms and conditions of the Ordinance.
D. The original franchise agreement term expired on May 11, 2021, and both the City of Bellflower and Bellflower Somerset Mutual Water Company have agreed to renew the franchise agreement, retroactive to May 11, 2021.
SECTION 2. DEFINITIONS.
Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this chapter. “City” means the city of Bellflower, a charter law city and municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.
“Director” means the Director of Public Works of the City. “Engineer” means the City Engineer of the City, or designee. “Facilities” means “Pipes and Appurtenances” as defined below. -4-
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“Franchise” means this Ordinance, including its terms and conditions, and includes the authorization by City to transmit and distribute potable water for all purposes under, along, across or upon City’s public streets, ways, alleys and places as designated in Exhibit “A,” and incorporated by reference. “Lay and use” means to lay, construct, erect, install, operate, maintain, use, repair, replace,relocate or remove.
“Pipes and appurtenances” means pipes, pipelines and distribution and transmission systems consisting of mains, distribution and transmission pipes and other properties and facilities, together with services, traps, manholes and other necessary•or appropriate appurtenances, for the purpose of transmitting and distributing water.
SECTION 3. FRANCHISE.
The right, privilege and the terms and conditions contained in this ordinance, and pursuant to the terms and conditions of the Bellflower Municipal Code (BMC) and the Franchise Act of 1937 (Public Utilities Code §§ 6201-6302; “Act”), as it may from time to time be amended, is granted to BSMWC, a California corporation, to use or to lay and use pipes, ditches, flumes, conduits and appurtenances for transmitting and distributing water for any and all purposes in, along, across, upon and under the public streets, ways, alleys and places as they now exist or may subsequently exist within the Franchise area depicted in Exhibit A.
SECTION 4. FRANCHISE RIGHTS; TERM OF FRANCHISE.
A. As part of this Franchise, BSMWC may install, operate, maintain, replace, repair, abandon in place and/or remove such scraper traps, manholes, flanges, conduits, culverts, vaults, valves, appliances, cathodic protection systems, attachments and other appurtenances (collectively, “appurtenances”) as may be necessary or convenient for the proper maintenance and operation of the pipelines under this franchise; provided, however, that BSMWC must first secure the requisite permits and/or approvals from City for construction or excavation.
B. This Franchise is granted in lieu of all other franchises for pipelines held by BSMWC, or by any predecessor of BSMWC, for transmitting and distributing potable water within the City's present or future jurisdictional limits. Acceptance of this franchise constitutes BSMWC’s abandonment of all such franchises within the City's present or future jurisdictional limits in lieu of which this franchise is granted, and as BSMWC's agreement to comply with all the Franchise's terms and conditions.
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C. This Franchise has a term of 25 years from and after the effective date of this Ordinance (“initial term”), unless the following occurs:
1. BSMWC voluntarily surrenders or abandons the Franchise; or
2. The property affected by this Franchise is purchased, condemned, or otherwise taken by a public entity rendering the Franchise useless; or
3. BSMWC forfeits the Franchise by violating its terms and conditions or that of the Act.
D. BSMWC may extend this Franchise for an additional 25 years before the end of the initial term of this Franchise, upon the City's written approval, which approval will not be unreasonably withheld or conditioned. The parties must commence good faith negotiations on such extension upon notification from BSMWC to the City of its election to renew this Franchise, which notice must be given not later than 12 months before the initial term expires.
SECTION 5. COMPENSATION.
In consideration of City's granting this Franchise, in addition to complying with the Franchise's terms and conditions, BSMWC must pay to City the following:
A. Base Annual Fee. For each full or fractional calendar year of the life of this franchise, BSMWC must pay to City, based on BSMWC’s gross receipts from its retail water sales only, the sum required to be paid for said franchise by Public Utilities Code §6231 as it may from time to time be amended.
B. The annual fee is due and payable annually on January 15, during the term of the Franchise for the preceding annual period, without demand and upon filing of the report required by this Section. Any fees or expenses charged to BSMWC by City pursuant to this Section, or any other provision of this Franchise, unless disputed in good faith, must be paid when due or are deemed delinquent. Any undisputed delinquent amounts will accrue interest commencing 30 days after the due date, at the rate of 1.5% per month (based upon a 30-day calendar month) or any lesser amount if required by law. Any neglect, omission or refusal by BSMWC to pay any undisputed delinquent fee with any late charges, within 30 days of written demand for payment is grounds for the City to declare the Franchise forfeited.
C. Payments must be made to the City’s Finance Department or at such place as City may, from time to time, designate in writing. The base annual fee must be paid annually during the term of the Franchise, including the year of granting the Franchise.
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D. Reports Required. BSMWC shall file with the City Clerk, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each subsequent calendar year or fraction thereof during which the franchise is in effect, a verified statement showing in detail for the term of the franchise in such calendar year or fractional year, as the case may be, the total gross receipts of the Grantee arising from the use, operation or possession of this franchise and the total gross receipts of the Grantee derived from the sale of water within the City. BSMWC shall pay to the City within fifteen (15) days after the time for filing this statement, the above required percentage of its gross receipts for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by said Grantee to file said verified statement, or to pay said percentage, at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of a forfeiture of this franchise and all of the rights of the Grantee hereunder.
SECTION 6. RIGHTS OF THE CITY.
A. This Franchise does not impair or affect any right of the City to acquire the property of BSMWC, either by purchase or through the exercise of the right of eminent domain, subject to BSMWC’s rights, remedies and defenses, and nothing in this Franchise may be construed to contract away, or to modify or to abridge, either for a term or in perpetuity, the City’s right of eminent domain in respect to the BSMWC, nor will this Franchise be given any value before any court or other public authority in any proceeding of any character in excess of the necessary publication costs and any other sums paid by BSMWC to the City at the time this Franchise was acquired.
B. In connection with any change in grade, alignment or width of any public street, way, alley or place (“the Streets”), or the construction of any subway or viaduct, or any other street improvement of any kind by the City, where BSMWC’s rights to occupy the Streets do not supersede the City’s rights, BSMWC must, at the City's direction and at BSMWC’s sole cost and expense, comply with all of the following provisions, as applicable:
1. Within 90 days after BSMWC receives written notice from the City that work is to be done pursuant to any reserved right and specifying the general nature of the work and the area in which the same is to be performed, BSMWC must commence to do all things necessary to protect and support its franchise property during the progress of such work. If so ordered by City, BSMWC must relocate those pipes and appurtenances installed, used and maintained within the street to such extent, in such manner, and for such period as is necessary to permit the performance of such work in an economical manner, and to permit the maintenance, operation and use of such street improvement.
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2. BSMWC must pay to City the full amount of any increase in cost for the construction, installation or repair of any bridge, or any artificial support in or underlying any street in which any pipes or appurtenances of BSMWC are located, if such increase in cost is required in order to provide for the installation, maintenance or operation of BSMWC’s pipes or appurtenances in or on the street area which the bridge or other artificial support covers or underlies.
3. BSMWC must cooperate with City to take all actions reasonably necessary to accomplish the completion of any City street improvement project within a reasonable period. After BSMWC receives written notice from the City that work is to be done, BSMWC must diligently prosecute such work to completion.
4. In the decision process necessary to determine if BSMWC’s pipelines and/or appurtenances are required to be relocated, City will also consider all known future projects that, if done separately, may cause multiple relocation of the pipelines and/or appurtenances. If such known future projects can be identified, full consideration of concurrent projects will be given by City. If City requires the relocation within the public street, way, alley or place more than once within a period of 10 years, then City will pay the cost of the second and all subsequent relocations within such 10-year period.
5. Should City change the planned rearrangement of pipelines, or the notice given to BSMWC, BSMWC will be given an additional period of not less than 60 days to accomplish such work. When BSMWC’s rights to utilize the Streets predate or supersede City’s rights, such relocations will be performed by BSMWC as set forth above with the costs reimbursed to BSMWC by City.
6. Except as otherwise provided above, when City requires a rearrangement of BSMWC’s facilities and such rearrangement is done for the accommodation of any person, firm, corporation or public agency other than City, the cost of such rearrangement will be borne by the accommodated party. Such accommodated party, in advance of such rearrangement, must (a) deposit with BSMWC either cash or a corporate surety bond in an amount, as in the reasonable discretion of BSMWC, to pay the costs of such rearrangement, and (b) execute an instrument agreeing to indemnify, defend and hold harmless BSMWC from any and all damages or claims caused by such rearrangement. This provision will not be construed to require BSMWC to rearrange its facilities. Any accommodation for rearrangement of BSMWC’s facilities will be made at the BSMWC's sole discretion.
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7. Nothing in this Agreement may be construed to require City to move, alter, or relocate any of its pipelines upon public streets at its own expense, for the convenience, accommodation or necessity of any other public utility, person, firm or corporation, now or hereafter owning a public utility system of any type or nature, or to move, alter, or relocate any part of its pipelines upon said streets for the convenience, accommodation or necessity of the BSMWC.
SECTION 7. ADDITIONAL OBLIGATIONS; INDEMNIFICATION.
BSMWC must comply with all the following provisions:
A. Within 60 days after the City Council adopts this Ordinance, BSMWC must file with the Director improvement plans relating to all BSMWC’s facilities located within City’s jurisdiction, and a map or maps showing the location, length and size of all such facilities which have been installed, relocated, removed or abandoned by BSMWC.
B. Within six months after the installation of any new pipelines under this franchise, BSMWC must file with the Director an “as built” map or maps showing the approximate location, length and size of all BSMWC’s pipelines so installed.
C. BSMWC must construct, install and maintain all pipes and appurtenances in a good and workmanlike manner, and of good materials, and operate in conformity with all applicable federal, state, and local laws including, without limitation, the BMC. In case of public utilities subject to the jurisdiction of the Public Utilities Commission of the State of California, the rules, regulations and orders of the Public Utilities Commission will govern whenever any conflict may exist between them and the applicable ordinances, codes, rules and regulations adopted or prescribed by City.
D. BSMWC must pay the City, on demand, the cost of all repairs to public property made necessary by any operations of the BSMWC under this Franchise, provided BSMWC fails to make such repairs after notice and reasonable opportunity to complete such repairs.
E. BSMWC agrees to indemnify, defend and hold harmless the City, its elected and appointed officials, officers, and employees, from and against any and all claims, losses, liabilities, damages to persons or property, demands, actions, judgments, causes of action, assessments, penalties, costs and expenses (including, without limitation, reasonable fees of legal counsel, expert witnesses and accountants) arising out of or resulting from BSMWC’s operations under this franchise, except to the extent caused by City’s sole active negligence, and for all damages proximately resulting from the failure of BSMWC to faithfully observe and perform each and every provision of this franchise and of the Act. BSMWC is solely responsible for -9-
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complying with all laws, regulations, and other orders which are applicable to the installation, repair, relocation or removal of its facilities, whether federal, state or local. City’s approval of such installation, repair, relocation or removal will not relieve BSMWC of any liability BSMWC may have for contaminated soils or other environmental liability attributable to or arising from BSMWC’s pipes, appurtenances and other facilities. Any fee paid by BSMWC pursuant to this Agreement will in no way limit BSMWC’s obligation to compensate City for any damage, claim, expense or loss whatsoever, as set forth in this paragraph.
F. In addition, BSMWC indemnifies and holds the City harmless from and against any claim, action, damages, costs (including, without limitation, reasonable attorney’s fees and penalties), injuries, or liability, arising out of this Agreement, or its performance including, without limitation, damages or penalties arising from BSMWC's removal, remediation, response or other plan concerning any Hazardous Materials resulting in the release of any hazardous substance into the environment. Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, BSMWC will defend the City (at the City's request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or otherwise.
G. The foregoing indemnity is intended to operate as an agreement pursuant to 42 USC § 9607(e) (the Comprehensive Environmental Response, Compensation and Liability Act; “CERCLA”) and Health & Safety Code § 25364 to defend, protect, hold harmless, and indemnify the City from all forms of liability under CERCLA, or other applicable law, for any and all matters addressed in this Franchise.
H. In no event will BSMWC’s indemnity obligation under this Franchise include indemnification for City’s gross negligence or willful misconduct.
SECTION 8. INSURANCE.
A. Before commencing performance under this Franchise, and at all other times this Agreement is effective, BSMWC must procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below:
Type of Insurance Limits (combined single)
Commercial general liability:$2,000,000
Workers compensation Statutory requirement.
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Ordinance No. 1454
B. Commercial general liability insurance must meet or exceed the requirements of ISO-CGL Form No. CG 00 01 11 85 or 88. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage.
Liability policies will be endorsed to name the City, its officials, and employees as “additional insureds” under said insurance coverage and to state that such insurance will be deemed “primary” such that any other insurance that may be carried by CITY will be excess thereto. Such insurance must be on an “occurrence,” not a “claims made,” basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to the City.
C. BSMWC will furnish to the City duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement, endorsements as required herein, and such other evidence of insurance or copies of policies as may be reasonably required by the City from time to time. Insurance must be placed with admitted insurers with a current A.M.
Best Company Rating equivalent to at least a Rating of “A:VII.” Certificate(s) must reflect that the insurer will provide 30-day notice of any cancellation of coverage. BSMWC will require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.
D. Should BSMWC, for any reason, fail to obtain and maintain the insurance required by this Agreement, the City may obtain such coverage at BSMWC's expense or terminate this Franchise.
E. BSMWC must deliver to City, in the manner provided for notices, copies or endorsements of all insurance certificates and endorsements required by this Ordinance, within the following time limits:
1. For insurance required at commencement of this Ordinance, within 30 days after this Ordinance becomes effective;
2. For insurance becoming required later, at least 10 days before the requirement becomes effective, or as soon thereafter the requirement, if new, becomes effective; and
3. For any renewal or replacement of a policy already in existence, at least 20 days after expiration or other termination of the existing policy.
F. Notwithstanding anything to the contrary, BSMWC may provide a program of self-insurance provided it can demonstrate that it had a net worth of $10,000,000.00 within the preceding year. The City, at its sole discretion, -11-
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may allow BSMWC to self-insure provided the self-insurance program complies with the provisions and specified limits contained herein, and is approved by the City Manager and City Attorney.
SECTION 9. PRESENCE OF HAZARDOUS MATERIALS.
Except as otherwise provided below, BSMWC may not or permit any Hazardous Materials to be discharged or released in, under, or about the streets or adjacent properties at any time. BSMWC must, at its expense, procure, maintain in effect and comply with all conditions of any and all applicable permits, licenses, and other governmental and regulatory approvals required of BSMWC for BSMWC’s use of the streets or adjacent properties. Upon expiration or earlier termination of the franchise term, BSMWC must cause all Hazardous Materials released by BSMWC in or under the Streets or adjacent properties, if any, to be removed from the streets or adjacent properties in accordance with and in compliance with all applicable laws. BSMWC may not take any remedial action in response to the presence of any Hazardous Materials in or about the streets or adjacent properties, nor enter into any settlement agreement, consent decree or other compromise in respect to any claims relating to any Hazardous Materials in any way connected with the streets or adjacent properties, without first notifying City of BSMWC’s intention to do so and affording City ample opportunity to appear, intervene or otherwise appropriately assess and protect City’s interests.
SECTION 10. NOTICE TO GRANTOR.
BSMWC must immediately notify City in writing of (i) any enforcement, cleanup, removal or other governmental or regulatory action instituted, completed or threatened pursuant to any applicable laws relative to the streets or adjacent properties; (ii) any claim made or threatened by any person against BSMWC or the streets or adjacent properties relating to damage, contribution, cost recovery compensation, loss or injury resulting from or claimed to result from any Hazardous Materials; and (iii) any reports made to any governmental agency arising out of or in connection with any Hazardous Materials in or removed from the streets or adjacent properties, including any complaints, warnings or asserted violations in connection therewith. BSMWC must also supply to City as promptly as possible copies of all claims, reports, complaints, notices, warnings or asserted violations, relating in any way to the streets or adjacent properties, or BSMWC’s use of the streets. BSMWC must promptly deliver to City copies of manifests reflecting the legal and proper disposal of all Hazardous Materials removed by the BSMWC from the streets or adjacent properties.
SECTION 11. ASSIGNABILITY.
BSMWC may sell, transfer or assign this Franchise or any interest therein directly or indirectly, or any of the rights or privileges granted by this Franchise, with the City's prior written consent, which will not be unreasonably withheld. Notwithstanding the above statement, BSMWC may transfer or assign this Franchise to any parent, subsidiary or affiliate without obtaining the consent of City, provided BSMWC provides written notification within 30 days of said transfer or assignment and submits written evidence of -12-
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the same, including a certification executed by a duly authorized officer of the BSMWC.
Upon compliance with the foregoing, this Franchise will be binding on the successors and assigns of the parties, and inure to the benefit of the successors and assigns of the parties.
SECTION 12. EXCAVATIONS.
A. BSMWC must obtain an excavation permit in accordance with the BMC, and pay the applicable fee therefore, before commencing any excavation in any street or public right of way, or before disturbing the earth beneath the surface of the street, except in the case of an emergency. If the proposed location of the excavation does not, or will not, unreasonably interfere with the use of the streets by City or if BSMWC holds rights to occupy the area of the Streets which supersede City’s rights, and BSMWC complies with all applicable laws, the Public Works Director will issue the appropriate permit(s).
B. Where it is necessary to lay any underground pipes through, under or across any portion of a paved or macadamized street, such work, where deemed by BSMWC in its sole discretion to be a safe method of installation, as well as practicable and economically feasible, may be done by a tunnel or bore so as not to disturb the foundation of such paved or macadamized street. If the same cannot be done, or if it is necessary to cut the street to access existing pipes and appurtenances, such work will be done pursuant to an excavation permit.
C. All work is subject to the City's inspection. All street coverings or openings, valves, vaults and manholes must at all times be kept flush with the surface of the streets; provided, however, that vents for underground vaults and manholes as well as cathodic protection devices, including pole-mounted rectifiers may, subject to the City's prior approval, extend above the surface of the streets when such vents and cathodic protection devices, including pole-mounted rectifiers, are located in parkways, between the curb and the property line. The BSMWC must provide adequate traffic safety barriers, signs, devices and traffic safety warning equipment in accordance with the BMC and comply with such additional safety measures as the City may direct.
D. In emergencies, BSMWC may commence excavation of streets without prior permit; provided, however, BSMWC acts in a reasonable and diligent manner as soon as practicable after the onset of said emergency to obtain a permit authorizing such work.
E. BSMWC acknowledges that the City’s records may not be complete and that pipes and appurtenances previously unknown to City are frequently discovered. Consequently, by granting this franchise or by approving any excavation permit requested by BSMWC, the City does not warrant the -13-
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accuracy of information supplied to the BSMWC by the City regarding the location or existence of other facilities. Nothing herein will make the City, or any officer, agent or employee of the City, responsible or liable to the BSMWC or to any other person by virtue of the City’s approval of excavation permit plans, regardless of whether any information is supplied by the City to the BSMWC pertaining to the location of existing pipes, facilities or other improvements on, in or under any street or other public property.
F. Except as otherwise provided, BSMWC cannot excavate public streets that were resurfaced with an emulsified asphalt “slurry” or asphalt “cape seal” within the previous two years or improved with asphalt/concrete within the previous five years, of the proposed excavation date.
G. Excavation of a public street will be allowed by permit under only the most unusual circumstances if the Public Works determines that relocation or boring is not feasible. Under such circumstances, the Public Works Director will require BSMWC to meet the city’s construction standards for excavating in recently resurfaced streets, pay all costs associated with such excavation, and provide such additional security to ensure the integrity of the recently resurfaced public street as may be reasonable required by the Director.
SECTION 13. EMERGENCY RESPONSE PLAN; PIPELINE ACCIDENTS.
A. BSMWC must develop and maintain an emergency response plan, reasonably satisfactory to the City, which covers all franchise operations within the City. In general, an emergency response plan meeting the requirements of Federal and State law and containing the information contained in this section is acceptable. The emergency response plan must include a 24-hour notification program and proof of arrangements capable of providing emergency response services, including without limitation to traffic control, street excavation pipeline repair, and supplies and services as necessary, within two hours of notification of any problem, and such other information as the City may reasonably require. Repairs to a public street, alley or parkway must be completed within 72 hours of BSMWC completing repairs to its facilities and clean-up of any materials released from its facilities, if reasonably possible, unless otherwise authorized by City. City must be notified 10 days in advance of any proposed change in such arrangements. Any changes in or revisions to BSMWC’s emergency response plan must be submitted to the City on the first working day of the subsequent calendar year.
B. Whenever any pipeline or appurtenance breaks or leaks so as to cause the release of water into or under the public right-of-way, BSMWC, and any other person using or controlling the pipeline or appurtenance, must immediately notify the Director and implement precautionary safety measures including traffic control, system shutdown, valve closures, and -14-
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public notification. In the event of an emergency which threatens life, health, safety, or property, and where it is not possible to obtain an excavation permit before commencing the work, BSMWC may commence such work; provided, however, that within 72 hours thereafter BSMWC must apply for an excavation permit. Adequate traffic safety barriers must be always maintained, and any damaged portion of the street must be restored to at least the condition that existed immediately before the damage.
C. If any portion of any City street is damaged by reason of defects, breaks or leaks in any of the pipes and appurtenances maintained or constructed by BSMWC, or by reason of any other cause attributable to or arising from the operation of any pipes and appurtenances constructed or maintained by BSMWC, BSMWC must, at its sole cost and expense, immediately repair all damage and restore the street to the condition existing before such damage occurred. All such work must be done under City's direction, and to City's reasonable satisfaction. BSMWC must repair such damage and restore the street within three working days after receiving a written demand from City or such other reasonable period as the Director may authorize when required for the protection of the public health and safety.
D. Should BSMWC, after reasonable notice, fail or refuse to pave, surface, grade, repave, resurface or regrade any damaged street as required by the provisions of this franchise, City may cause the work to be done after written notice is given to BSMWC and will keep an itemized account of all costs incurred. BSMWC agrees to, and must, reimburse City for all such costs, including reasonable administrative overhead expenses, within 30 days after presentation to BSMWC of an itemized account of such costs.
SECTION 14. ABANDONMENT.
Should BSMWC abandon all or any part of the pipes and appurtenances which encompass this Franchise, such abandonment must be accomplished by BSMWC as required by applicable law. BSMWC will not owe the City any compensation for the privilege of said abandonment. The ownership of all franchised property so abandoned in place, immediately vest in City except that BSMWC will retain all liability for the installation or construction of those facilities, and any liability for Hazardous Materials, as those liabilities exist as of the date of the Abandonment.
SECTION 15. DEFAULT.
A. Effect of Default. Should BSMWC default in the performance of any of the terms, covenants and conditions herein, and such default is curable, City may give written notice to BSMWC of such default. Should BSMWC not commence the work necessary to cure such default within 60 days after such notice is received by BSMWC, or prosecute such work diligently to completion, City may declare this Franchise forfeited. Upon giving written notice of forfeiture to BSMWC, this Franchise will terminate and BSMWC's -15-
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rights will terminate. Should the Franchise be forfeited, BSMWC must execute an instrument of surrender and deliver same to City. In the event of noncompliance by the BSMWC with any of these conditions, City may, in addition to all other remedies, bring suit for the forfeiture or termination of this Franchise.
B. Force Majeure. Should BSMWC's performance of this Franchise be prevented due to fire, flood, explosion, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond BSMWC’s control, then BSMWC will not be deemed to be in default or forfeit its Franchise rights if it commences and prosecutes performance with all due diligence and promptness upon being able to do so.
C. Cumulative Remedies. No provision of this Franchise for enforcing the terms and conditions of this Franchise is an exclusive remedy or procedure for enforcement. These remedies and procedures are in addition to those provided by law and are cumulative.
SECTION 16. DISPUTE RESOLUTION.
If a dispute arises between the parties relating to this Franchise, the parties agree to use the following procedure before either party pursuing other available legal remedies, except when doing so would cause the expiration of an applicable statute of limitations.
A meeting will be held promptly between the parties, attended by individuals with decision-making authority regarding the dispute, to attempt in good faith to negotiate a resolution of the dispute. If, within 30 days after such meeting the parties have not succeeded in negotiating a resolution of the dispute, they agree to submit the dispute to mediation. City and BSMWC will equally advance a proportionate share of the costs of mediation. The parties will jointly appoint a mutually acceptable mediator within 30 days from the conclusion of the negotiation period. The parties agree to participate in good faith in the mediation and related negotiations for a period of 60 days. Any decision of the mediator must be supported by written findings of facts and conclusions of law. If the parties are not successful in resolving the dispute through mediation, the matter may be submitted to a court of law.
SECTION 17. NOTICE.
Any notice required to be given under the terms of this Franchise, the manner of services of which is not specifically provided for here, may be served to the following identified addresses, or to such other address as may from time to time be furnished in writing by one party to the other, and by depositing said notice in the United States mail, postage prepaid. When the services of any such notice is made by mail, the time such notice will begin with and run from, is the date of deposit of the same in the United States mail.
Upon City: City of Bellflower
Public Works Department
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City of Bellflower
Ordinance No. 1454
Attn: Director of Public Works
16600 Civic Center Drive
Bellflower, CA 90706
Upon BSMWC: Bellflower Somerset Mutual Water Company
ATTN: General Manager
10016 Flower Street
Bellflower, CA 90706
SECTION 18. ACCEPTANCE OF FRANCHISE.
Except as otherwise provided, BSMWC must within 30 days after this Franchise is adopted, file with the officers of City designated herein the following instruments or documents:
A. File with the City Clerk BSMWC’s written acceptance of the terms and conditions of this ordinance.
B. File with the City Clerk certified copies of the policies of liability insurance and workers’ compensation insurance, or, in lieu thereof, certificates evidencing such insurance, which policies must be in accordance with the terms and conditions of this ordinance. Notwithstanding anything to the contrary, BSMWC may provide a program of self-insurance provided it can demonstrate that it had a net worth of $10 million within the preceding year.
The City, at its sole discretion, may allow BSMWC to self-insure provided the self-insurance program complies with the provision and specified limits contained herein, and is approved by the City Administrator and City Attorney.
C. File with the City Clerk, within 10 business days after the City Council adopts and passes the ordinance granting this franchise and thereafter at all times during the life of the Franchise keep on file with the City Clerk, a bond issued by an admitted surety insurer, and in a form approved by the City Attorney, in the penal sum of $100,000, conditioned that the BSMWC will well and truly observe, fulfill, and perform each condition of the Franchise and that in case of any breach of condition of the bond, the whole amount of the penal sum therein specified will be recoverable from the principal and surety upon said bond. If said bond is not filed, or if it does not receive the approval of the City Attorney, the Franchise may be revoked or forfeited and any money paid to the City in connection therewith will be retained by the City.
SECTION 19. REIMBURSEMENT FOR CITY’S EXPENSES.
BSMWC will pay City a sum of money sufficient to reimburse City for all posting and publication expenses incurred in connection with the granting of this Franchise. Such payment must be made by BSMWC within 30 days after City provides to BSMWC a -17-
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written statement of such expenses.
SECTION 20. VENUE.
The Parties agree that all actions or proceedings arising in connection with the ordinance will be tried and litigated in the State courts located in the County of Los Angeles, State of California. The Parties intend that this choice of venue be mandatory and not permissive in nature, thereby precluding the possibility of litigation between the parties with respect to or arising out of this Ordinance in any jurisdiction other than that specified in this Section. Each party waives any right it may have to assert the doctrine of forum non conveniens or similar doctrine or to object to venue with respect to any proceeding brought in accordance with this Section, and stipulates that the State courts located in the County of Los Angeles, State of California have in person jurisdiction and venue over each of them for the purpose of litigating any dispute, controversy, or proceeding arising out of or related to this Agreement.
SECTION 21. NO WAIVER.
BSMWC is not excused from complying with any of the terms and conditions of this Ordinance by any failure of City upon any one or more occasions to insist upon or to seek compliance with any such terms or conditions. No City waiver of any provision or consent to any action constitutes a waiver of any other provision or consent to any other action, whether similar. No waiver or consent constitutes a continuing waiver or consent or commit a party to provide a waiver in the future except to the extent specifically set forth in writing. Any waiver given by a party will be null and void if the party requesting such waiver has not provided full and complete disclosure of all material facts relevant to the waiver requested.
SECTION 22. BINDING EFFECT.
Each and all of the provisions are binding on and inure to the benefit of the Parties and their respective heirs, successors, and permitted transferees and assigns.
SECTION 23. AMENDMENT.
No amendment, modification, or supplement to this ordinance is binding on any of the parties unless it is in writing, signed by the parties, and approved through legislative action.
SECTION 24. ENTIRE AGREEMENT.
This ordinance constitutes the entire agreement between the parties about this subject matter. This ordinance supersedes all previous agreements between or among the parties. There are no agreements, representations, or warranties between or among the parties other than those set forth in this Agreement or the documents and agreements referred to in this agreement.
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SECTION 25. CONSTRUCTION.
Each party has been represented by counsel in the negotiation and execution of this ordinance. The terms of this ordinance were negotiated by the Parties and the language used in this Franchise is deemed to be the language chosen by the Parties to express their mutual intent. This Franchise will be construed without regard to any presumption or rule requiring construction against the party causing such instrument or any portion thereof to be drafted, or in the favor of the party receiving a particular benefit under this Agreement. No rule or strict construction will be applied against any Person.
SECTION 26. MISCELLANEOUS PROVISIONS.
A. Captions. The captions here are for convenience and reference only, and are not part of this Franchise, and do not in any way limit, define or amplify the terms and provisions hereof.
B. Governing Law. This Franchise has been made and will be construed and interpreted in accordance with the laws of the State of California.
C. Execution. The Mayor of the City will approve and sign and the City Clerk will attest to the passage of this Ordinance. This Ordinance will take effect 30 days from the date of its adoption. Once this Ordinance becomes effective, it will be deemed to be applicable as of XXX.
D. Municipal Code. Repeal of any provision of the BMC will not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance’s effective date. Any such repealed part will remain in full force and effect for sustaining action of prosecuting violations occurring before the effective date of this Ordinance.
SECTION 27. SEVERABILITY.
If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable.
SECTION 28. RECORDING.
The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Bellflower’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law.
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SECTION 29. EFFECTIVE DATE.
This Ordinance becomes effective 30 days after adoption.
ORDINANCE NO. 1454 HAD ITS FIRST READING ON APRIL 13, 2026, ITS SECOND READING ON APRIL 27, 2026, AND WAS DULY PASSED, APPROVED, AND
ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER AT ITS REGULAR MEETING OF APRIL 27, 2026.
Sonny R. Santa Ines, Mayor
ATTEST:
__________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
__________________________
Karl H. Berger, City Attorney
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