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R a <br />-2- <br />4. It would be a simple matter to modify Subparagraph (f) <br />of No. 3, which provides only that payments would be made at 90-day <br />intervals to provide for quarterly payment dates, so that the date <br />would always be the same as you have suggested you would desire, and <br />to provide for an accounting period following the end of the quarter <br />during which lessee would have to report to you and make his payment. <br />5. Mr. Thornton informs me, in answer to your next question, <br />that at one time there was consideration of moving the City nursery <br />into the area now considered for this lease and making it something <br />of an arboretum which would be open to the public for viewing and <br />identification of the various plants, trees and shrubs used by the <br />City. <br />6. As to your last question as to whether or not you are re- <br />quired to go to bid, I might state as pointed out that the language <br />of the first two paragraphs of Charter Section 1300 are clearly. broad <br />enough to include such a lease. The first paragraph defines streets <br />of the City as including any public grounds within or belonging to <br />the City, and the second paragraph gives the City power to grant <br />franchises for any service using the streets of the City. This would, <br />however, be a considerable enlargement of the historic use of the <br />word "franchise", and reading the other provisions of this Article XIII, <br />it would appear that the intent was to include franchises which are <br />under the control of the Public Utilities Commission and not ground <br />leases of this type. Franchises can only be granted on an indeter- <br />minate term, which is, in effect, a perpetual franchise, or for not <br />longer than 25 years. It has been suggested that all renewal <br />franchises for railroads, electric power, gas, etc. be limited to <br />25 years in all cases. You certainly have the power to require a <br />notice period and provide for what is in essence a bidding procedure <br />if you wish. I am told that this is the custom in most cities for <br />any leases exceeding 5 years in duration, some cities using a period <br />of 7 years without bid procedure. <br />The lease form which you have been handed contains the <br />terms which Mr. Novel B. James is requesting. It is the opening of <br />his bargaining procedure and,I am told, is based somewhat upon the <br />Pasadena lease form. <br />Re.~spectfull~_. submitted, <br />/: , f <br />I ;_ _-i <br />,~., i ~ _ I , .,. _, ~ ~ ~~ =!. 1 r <br />.JOHN K. COLWELL <br />~`` City Attorney <br />JKC/fm <br />