HomeMy WebLinkAbout1992-05-12 - AGENDA REPORTS - FRANCHISE AGMT TEXACO TRADING (2)PUBLIC NEARING
DATE: May 12,1992
AGENDA REPORT
City Wdnag'er App4dy V---11
Item to be presented by:
Ren Pulskamo
SUBJECT: Proposed Franchise Agreement With Texaco Trading and
Transportation Company
Ordinance Number: 92-10
DEPARTMENT: FINANCE
Within the incorporated boundaries of Santa Clarita, Texaco Trading and
transportation Inc. owns, maintains, and operates a 1,247.5 foot, 8 -inch crude
oil pipeline under Los Angeles County Franchise Ordinance No. 9213. On December
8, 1991 the franchise expired with the County, thus requiring the City to draft
its own franchise ordinance agreement.
Staff has recently completed negotiations with Texaco Transportation and
Trading, Inc. ("Texaco") for an oil pipeline franchise with the City. The
Franchise Act of 1937 and Section 6201 of the Public Utilities Code gives the
City the authority to impose certain minimum duties and liabilities' upon a
franchisee.
The proposed Texaco franchise ordinance covers a ten year term. The franchise
grants Texaco permission to lay and use pipelines for the transportation of oil
and the products thereof. These pipelines may cross public streets, highways,
and alleys as shown in Exhibit A. The ordinance also specifies that the grantee
will submit an Emergency Preparedness Plan to the City, assuring the citizens of
Santa Clarita that adequate safety precautions are being taken. The City will
also receive a $10,000 granting fee for consideration.
RECOMMENDATION
To waive further reading and pass to the second reading.
ATT -kr— ENTS
Ordinance No. 92-10
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Agenda Item:
PUBLIC HEARING PROCEDURE
1.
Mayor Opens Hearing
a. States Purpose of Hearing
2.
City Clerk Reports on Hearing Notice
3.
Staff Report
(City Manager)
or
(City Attorney)
or
(RP Staff)
4.
Proponent Argument (30 minutes)
5.
Opponent Argument (30 minutes)
6.
Five-minute Rebuttal (Proponent)
a. Proponent
7.
Mayor Closes Public Testimony
8.
Discussion. by Council
9.
Council Decision
10. Mayor Announces Decision
10 far
4 dud/ � Ae
RESOLUTION NO. 92-71
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA CLARITA DECLARING THE CITY COUNCIL'S
INTENTION TO GRANT AN OIL PIPELINE FRANCHISE
TO'TEXACO TRANSPORTATION AND TRADING, INC.
WHEREAS, Texaco Transportation and Trading, Inc.
("Texaco") has filed with the City Council of the City of Santa
Clarita an application requesting that a franchise be granted to
it of the character and for the purposes mentioned in the notice
hereinafter set forth; and
WHEREAS, in the opinion of the City Council the public
good requires that said franchise be granted;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
CLARITA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The City Council hereby declares its
intention to grant said franchise to Texaco, and that a public
hearing to consider any objections to the granting thereof will
be held at the time and place specified in the notice hereinafter
set forth, which the City Clerk is hereby directed to publish at
least once within fifteen (15) days after the passage of this
resolution in The Signal , a newspaper of general circulation
within the City of Santa Clarita, and that said notice shall be
in the following words and figures:
"NOTICE OF INTENTION TO GRANT
NOTICE IS HEREBY GIVEN that Texaco Transportation
and Trading, Inc. ("Texaco") has filed its application
with the City Council of the City of Santa Clarita
requesting that the City Council grant to it a
franchise for a ten year period, pursuant to the
Franchise Act of 1937, to lay and use pipes and
appurtenances for transmitting and distributing oil and
products thereof, under, along, across and upon the
public highways and streets within the City, as
described in Exhibit A. attached.
If said franchise shall be granted to it, Texaco, it
successors and assigns shall, during the life thereof, pay
to the City an annual Franchise Fee, computed as follows:
A. The length of the pipe expressed in feet located
within the franchised area shall be multiplied by the
applicable base rate, as adjusted pursuant to subdivision
(S), in accordance with the following schedule:
For pipelines with an internal diameter not listed
above, the Fee shall be in the same proportion to the Fee of
an 12 -inch -diameter pipe as the diameter of the unlisted
pipe is to 12 inches.
Such payments shall be computed from the effective date
of the Franchise, to and including the date of either actual
removal of the facilities or the effective date of a
properly approved abandonment "in place" authorized by the
City, and until Texaco shall have fully complied with all
the provisions of the Franchise and of all other applicable
provisions of law -or ordinance relative to such
abandonments. All such payments shall be made payable to
the City; and shall be.supported by Texaco's verified
statement concerning the computation thereof. In the event
of installation or abandonment of facilities with the
scnmus.RES -2`
approval of the City, or in the event of removal of such
facilities by Texaco, the payments otherwise due to the City
for occupancy of the streets by such facilities shall be
prorated for the calendar year in which such installation,
removal or abandonment occurs as of the end.of the calendar
month in which installed, removed or abandoned.
Provided, however, that the amount of each annual
payment shall be computed and revised each calendar year as
follows:
(1) The applicable base rate shall be multiplied
by the Consumer Price Index for the area, as published
by the United States Department of Labor, Office of
Information for the month of September immediately
preceding the month in which payment is due and
payable, and divided by the Consumer Price Index for
June 30, 1989, which is declared to be 100.0. Under no
circumstances shall the multiplying factor be less than
one.
(2) If the United States Department of Labor,
Office of Information discontinues the preparation or
publication of a Consumer Price Index for the area,'and
if no translation table prepared by the Department of
Labor is available so as to make those statistics which
are then available applicable to the index of June 30,
1989, the City shall prescribe a rate of payment which
shall, in its judgment, vary from the rates specified
in this section in approximate proportion as commodity'
consumer prices then current vary from commodity
consumer prices current in December 1988. On this
point, the determination by the City.shall be final and
conclusive.
NOTICE IS HEREBY FURTHER GIVEN that any and all persons
having any objections to the granting of said franchise may
appear before the City Council at the.City offices, located
at 23920 Valencia Blvd., Suite 300, Santa Clarita,
California, at the hour of 6:30 P.m., on
Tuesday , the 12th day of !lay , 1992, and
be heard thereon; and
NOTICE IS HEREBY FURTHER GIVEN that at any time not
later than the hour so set for hearing objections, any
person interested may make written protest stating
objections against the granting of said franchise, which
protest must be signed by the protestant and delivered to
the City Clerk, and the City Council will, at the time set
for hearing said objections, proceed to hear and pass upon
all protests so made.
3CIM"9."A -3-
For further particulars, reference is hereby made to
said application on file in the Office of the City Clerk,
and also to Resolution No. 92-71, adopted on the 21st day
of April , 1992, declaring the City Council's intention to
grant said franchise.
PASSED, APPROVED AND ADOPTED this. 21s -day of April , 1992
u
ATIESTt
CITY CLERK
I, Donna M. Grindey, HEREBY CERTIFY.that the foregoing
Resolution was duly adopted by the City Council of the City Of Santa Clarita
at a regular meeting thereof, held on the 21st day of APril 1992 by the
following vote of Council:
AYES:
NOES
• ABSENT
= Boyer: Darcyr Heidt, Pederson, Elajic
CODHCIIXEKBERS: None
: None
12
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ORDINANCE NO. 92-10
AN ORDINANCE OF THE CITY OF SANTA CLARITA
GRANTING A FRANCHISE TO CONSTRUCT AND USE AN
OIL PIPELINE TO TEXACO TRADING AND
TRANSPORTATION, INC.,
THE CITY COUNCIL OF THE CITY OF SANTA CLARITA DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION 1. NATURE.OF FRANCHISE. The City of Santa Clarita
hereby grants a non-exclusive Franchise to Texaco Trading and
Transportation Inc., a Delaware Corporation, (hereinafter
referred to as "Grantee"), for the term of ten (10) years from
and after December 10, 1991, to lay and use pipelines, not to
exceed twenty-four (24) inches in internal diameter, for the
transportation of oil and products thereof, in, under, along and
across the public streets, highways, and alleys (hereinafter for
the convenience, collectively referred to as "streets"), in the
City of Santa Clarita (hereinafter referred to as "City"), as
described in Exhibit "A" attached hereto and made a part hereof
(hereinafter referred to as the "Franchise").
This Franchise is hereby granted to Texaco, its lawful
successors and assigns, under and in accordance with the
O provisions of the Franchise Act of 1937. This Franchise shall
include the right, for the period and subject to the conditions
hereof, to so maintain, operate, repair, renew, and change the
size of the pipeline system, if any, of Grantee, as already laid
and constructed in said steeets.
The terms and conditions of this Franchise shall also apply
to any pipe or other facilities of Grantee which are located
within the right of way of any road or highway at the time such
road or highway becomes a City highway.
SECTION 2. APPURTENANCES. The Grantee shall have the
right, subject to the prior approval of the City Engineer, to
construct and maintain such traps, manholes, conduits, valves,
appliances, attachments,.and appurtenances (hereinafter for
convenience collectively referred to as "appurtenances"), as may
be necessary or convenient for the proper maintenance and
operation of the pipelines under the Franchise. Said
appurtenances shall be kept flush with the surface of the streets
and so located as to conform to any.order of the City Engineer in
regard thereto and not to interfere with the use of the street
for travel. The Grantee shall have the right, subject to such
ordinances, rules, or regulations as are now or may hereafter be
in force, to make all necessary excavations in said highways for
the construction and repair of said pipelines and appurtenances
• subject to the prior approval of the City Engineer. Such
approval may be conditioned by the City Engineer,. including
without limitation, the issuance to Grantee of certain
encroachment permits.
• SECTION 3. LOCATION OF PIPELINES. So far as is
practicable, any pipelines thereinafter laid shall be located
along the edge or shoulder of the streets or in the parking areas
adjacent thereto so as not to unreasonably disturb the flow of
traffic and where possible shall be laid in the unpaved portion
of the street.
If the pipelines shall be laid across or along the paved
portion of a street, the repair of the street, after the
pipelines have been laid, shall be made by the Grantee within
five (5) days of the completion of the laying of such pipeline,
at the expense of the Grantee in accordance with the street
excavation ordinance of the City.
SECTION 4. CONSTRUCTION OF PIPELINES.
A. Terms of Construction
The pipelines and appurtenances laid, constructed or
maintained under the provisions of this Franchise shall be
installed, maintained, and inspected by the Grantee in a
satisfactory, safe, and workmanlike manner, of good material, and•
in conformity with all ordinances, rules, or regulations now or
hereafter adopted or.prescribed by the City Council, State, of
• Federal authorities.
B. Restoration of Streets.
The work of laying, constructing, maintaining,
operating, renewing, repairing, changing and moving any of the
pipeline system contemplated by this Franchise and all other work
in exercise of this Franchise shall be conducted with the least
possible hindrance or interference to the use of City roads by
the public or by the City of Santa Clarita, and Grantee shall
provide.all necessary warning, safety and traffic control devices
as are or may be required by City, County, State or Federal
regulations. All excavations shall be back filled and adequately
compacted. The surface of City roads shall be placed in as good
and serviceable condition as existed at the beginning of this
work and to the satisfaction of the City Engineer.
SECTION 5. COMMENCEMENT OF CONSTRUCTION. The Grantee, in
good faith, shall commence with work of laying the pipelines and
appurtenances within four (4) months from the date of City
approval of this Franchise, and if any such pipelines be not so
commenced within said time, this Franchise shall be declared
forfeited; provided, however, that if the Grantee is maintaining
and operating an existing pipeline system over the route referred
to in Article 1 herein, it shall be deemed to be in compliance
0 stP80=9.OBD —2—
with the foregoing. The Grantee shall not commence the
construction of the pipelines under the provision of this
Franchise or add to such existing pipeline system, if any there
be, until it first shall have obtained a permit therefor from the
City Engineer. The application of the Grantee shall show the
following facts: the length, approximate depth and proposed
location of the pipeline proposed to be laid or constructed, the
size and description of the pipe intended to be used, and such
other facts as the City Engineer may require. The Grantee shall
pay any and all inspection fees of the City. Upon the completion
of the construction of any pipelines constructed pursuant to said
Franchise, the Grantee shall render a statement to the City of
Santa Clarita showing in detail the permit or permits issued and
the total length of pipeline the construction of which was
authorized under such permit or permits, and the total length of
pipeline actually paid, and the Grantee shall accompany said
report with payment to City for the pipelines which have.been
actually constructed under said Franchise at the rate of Two
Hundred Dollars ($200.00) per mile. Grantee shall prorate for
pipeline construction of less than one (1) mile.
SECTION 6. MAPS AND DATE TO BE FURNISHED. Within ninety
(90) days following the date in which any pipelines or additional
pipelines have been laid or constructed under this Franchise, the
Grantee shall file a map in such form as may be required by the
City Engineer showing the accurate location and size of all its
facilities then in place, and shall, upon installation of any
additional facilities or upon removal, change or abandonment.of
all or any portion thereof, file a revised map or maps showing
the location and size of all such additional and/or abandoned
facilities as of that date. If cathodic protection is to be used
for facilities installed or maintained pursuant to this
Franchise, a description of all the protective devices shall be
furnished to the City Engineer which shall show the location and
types of anodes, including a description of methods to be used as
protection against corrosion and electrolytic leakage.
SECTION 7. COMPENSATION TO THE CITY
A. Amount of Franchise Fee.
As consideration for the Franchise hereby granted, the
Grantee shall pay an annual Franchise Fee to the City. The
Franchise Fee shall be paid annually to the City in lawful money
of the United States within sixty (60) days after the end of each
calendar year. The base rate of the Franchise shall be computed
as follows:
The length of the pipe expressed in feet located within
the franchised area shall be multiplied by the applicable base
rate, as adjusted pursuant to subdivision (B), in accordance:with
the following schedule:
• rtA U=9.BRD -3-
0
Pipe size
(internal diameter in inches)
Base rate per lineal foot
0 - 4
$0.088
6
0.132
8
0.176
10
0.220
12
0.264
14
0.308
16
0.352
18
0.396
20
0.440
22
0.484
24
0.528
26
0.572
28
0.616
30
0.660
For pipelines with an internal diameter not listed
above, the Fee shall be in the same proportion to the Fee of an
12 -inch -diameter pipe as the diameter of the unlisted pipe is to
12 inches.
B. Computation of Payments
Such payments shall be computed from the effective date
of this Franchise,to and including the date of either actual
removal of the facilities or the effective date of a properly
approved abandonment "in place" authorized by the City, and until
the Grantee shall have fully complied with all the provisions of
this Franchise and of all other.applicable provisions of law or
ordinance relative to such abandonments. All such payments shall
be made payable to the City, and shall be supported by the
Grantee's verified statement concerning the computation thereof.
In the event of installation or abandonment of facilities with
the approval of the City as elsewhere in this Franchise provided,
or in the event of removal of such facilities by the Grantee, the
payments otherwise due to the City for occupancy of the streets
by such facilities shall be prorated for the calendar year in
which such installation, removal or abandonment occurs as of the
0 dAST Z59.oRD -4-
end of the calendar month in which installed, removed or
abandoned.
Provided, however, that the amount of each annual
payment shall be computed and revised each calendar year as
.follows:
(1) The applicable base rate shall be multiplied
by the Consumer Price Index for the area, as published by the
United States Department of Labor, Office of Information for the
month of September immediately preceding the month in which
payment is due and payable, and divided by the Consumer Price
Index for June 30, 1989, which is declared to be 100.0. Under no
circumstances shall the multiplying factor be less than one.
(2) If the United States Department of Labor,
Office of Information discontinues the preparation or publication
of a Consumer Price Index for the area, and if no translation
table prepared by the Department of Labor is available so as to
make those statistics which are then available applicable to the
index of June 30, 1989, the City shall prescribe a rate of
payment which shall, in its judgment, vary from the rates
specified in this section in approximate proportion as commodity
consumer prices then current vary from commodity consumer prices
current in December 1988. On this point, the determination by
the City shall be final and conclusive.
S (3) If said Office shall revise the said Index,
the parties hereto shall accept the method of revision or
conversion recommended by the said office.
C. Right of Inspection
The City shall have the right to inspect Grantee's
pipeline records relating to its annual report and to audit and
recompute any and all amounts payable under this Franchise.
Costs of audit shall be borne by Grantee when audits result in an
increase of more than five percent of Grantee's annual payments
due the City. Acceptance of any payment shall not be construed
as a release, waiver, acquiescence, or accord and satisfaction of
any claim the City may have for further or additional sums
payable under this Agreement or for the performance of any other
obligation hereunder.
D. Granting Fee
In consideration for the granting of this Franchise,
and to reimburse the City for its administrative expenses in
preparing and approving the Franchise documents, Grantee shall
pay the City Ten Thousand Dollars ($10,000.00) within thirty (30)
days of the date the City Council approves this Franchise.
. SM07M9.0RD -5-
SECTION 8. EMERGENCY PREPAREDNESS.
A. Equipment and Crews
At all times during the terms of this Franchise; the
Grantee shall maintain on a twenty-four (24) hour -a -day basis,
adequate emergency equipment and a properly trained emergency
crew or representatives within a radius of fifteen (15) miles
from any facilities installed or maintained pursuant hereto for
the purpose of shutting off the pressure and the flow of contents
of such facilities in the event of an emergency resulting from
any earthquake, act of war, civil disturbance, flood or other
cause.
B. Plans
Within ninety (90) days.of the effective date of this
Ordinance, Grantee shall submit an emergency preparedness plan.
Grantee shall obtain City approval of the plan, and update it to
the satisfaction of the City.
SECTION 9. REPAIRS. Grantee shall pay.to City on demand
the cost of all repairs.to City property made necessary by any.of
the operations.of Grantee under the Franchise, provided however
that Grantee may make repairs to streets, sidewalks, curbs and
gutters itself at its own cost in accordance with city
specifications, if the same can be done without undue
inconvenience to the public use of the streets.
SECTION 10. REARRANGEMENT OF FACILITIES.
A. Expense of Grantee.
(1) If any of the Granteets facilities, in the
discretion of the City, shall endanger the public in the use of
the public streets or interfere with or obstruct the use of any
street by the public or for public purpose, the City shall have
the right to require the Grantee, and the Grantee shall move,
alter or relocate the same (hereinafter called "rearrangement")
to avoid such danger interference or obstruction, in conformity
with the written notice of the City Engineer, at the Grantee's
sole expense.
(2) Whenever, during the existence of this
Franchise, the City, its Redevelopment Agency, any water,
electric, gas or other utility system now or hereafter owned or
operated by the City, or any community facilities or assessment
district, or similar agency established by the City, shall change
the grade, width, alignment or location of any street, way, alley
or place or improve any said street in any manner, including but
not limited to the laying of any sewer, storm drain, conduits,
gas, water or other pipes, pedestrian tunnels, subway, viaduct or
0 sfll8a=9.0RD —6—
other work of the City (the right to do all of which is
specifically reserved to the City without any admission on its
• part that it would not otherwise have such rights), the Grantee
shall, at its own cost and expense, do any and all things to
effect such change in position, or location, in conformity with
the written approval of the City Engineer including without
limitation the acceptance of encroachment permits, and the
removal or relocation of any facilities installed, if and when
made necessary by the determination of the City Engineer.
B. Expense of Others
(1) The City shall also have the right to require
the Grantee to rearrange any part of the Grantee's facilities for
the accommodation of any private person, firm, or. corporation.
When such rearrangement is.done for the accommodation of any
private person, firm or corporation, the cost of such
rearrangement shall be borne by the accommodated party. Such
accommodated party, in advance of such rearrangement, shall
deposit with the Grantee or the City Clerk cash or a corporate
surety bond in an amount, as in the reasonable discretion of the
City Engineer, shall be required to pay the costs of such
rearrangement.
(2) The rearrangement referred to in subsection
(1) of Section B of this Article 10 shall be accomplished in
conformity with the written notice of the City Engineer.
• C. Rearrangement of the Facilities of Others. Nothing
in this Franchise contained shall be construed to require the
City to move, alter or relocate any of its facilities upon said
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, to move, alter or relocated any part of its
system upon said streets for the convenience, accommodation or
necessity of the Grantee.
D. Notice. The Grantee shall be given not less than
thirty (30) days written notice of any rearrangement of
facilities which the Grantee is required to make herein. Such
notice shall specify in reasonable detail the work to be done by
the Grantee and shall specify the time that such work is to be
accomplished. In the event.that.the City shall change the
provisions of any such notice given to the Grantee, the Grantee
shall be given an additional period not less than thirty (30)
days to accomplish such work.
SECTION 11. REMOVAL OR ABANDONMENT OF FACILITIES. At the
time of expiration, revocation or termination of this Franchise
of the permanent discontinuance of the use of its facilities, or
any portion thereof, the Grantee shall, within thirty (30) days
• a(fl807M9.0RD —7—
thereafter, make a written application to the City Engineer to
either: (1) abandon all, or a portion, of such facilities in
• place, or (2) remove all, or a portion, of such facilities as the
City Engineer, in his discretion, shall considered to be
appropriate. Such application shall describe the facilities
desired to be abandoned by reference to the map or maps required
by Article 6 of this Agreement and shall also describe with
reasonable accuracy the relative physical condition of such
facilities. Thereupon, the City Engineer shall determine whether
any abandonment or removal which is thereby proposed may be
effected without detriment to the public interest or under what
conditions such proposed abandonment or removal may be safely
effected and shall then notify the. Grantee, according to such
requirements as shall be specified in the City Engineer's order,
and within ninety (90) days thereafter, to either:
(a) Remove all or a portion of such facilities, or
(b) Abandon in place all or a portion of such
facilities.
If any facilities to be abandoned in place subject to
prescribed conditions shall not be abandoned in accordance with
all such conditions, then the City Engineer may make additional
appropriate orders, including, if he deems desirable, an order
that the Grantee shall remove all such facilities in accordance
with applicable.requirements.
• A request of the Grantee to abandon in place any facilities
shall be deemed an offer of transfer of such facilities to the
City and by resolution authorizing Grantee to abandon any
facility in place, the City shall succeed to all right, title and
interest of Grantee in said facilities.
SECTION 12. COMPLETION OF WORK. In the event that the
Grantee fails to commence any work oractand diligently proceed
therewith or to complete any such act or work required of the
Grantee by the terms of this Franchise within the time limits
required hereby, the City may cause such act or work to be
completed by the City or, at the election of the City, by a
private contractor. The Grantee agrees to pay the City, within
ten (10) days after delivery of an itemized bill, the cost of
performing such act or work plus an amount equal to twenty-five
percent (25%) thereof for overhead. If the Grantee is
dissatisfied with any decision made by the City Engineer
hereunder or the determination of the cost of any work performed
by the City pursuant to this Agreement, if may petition the City
Council to review the same within ten (10) days after such
decision or determination. The decision of the City Council
shall be final and conclusive.
10 dfl60=9.OAD -8-
SECTION 13. RECOVERY OF COSTS OF REPAIRS AND UNPAID FEES.
. If the Grantee has not paid the City for such fees and expenses
incurred by or.payable.to the City as hereinabove set forth, the
City may institute the following collection procedures:
A. The City Engineer shall keep an itemized account
of the expenses incurred by the City pursuant hereto, or the fees
unpaid by the Grantee. Sixty (60) days after the presentation of
the bill to the Grantee therefor, the City Engineer shall prepare
and file with the City Clerk.a report specifying the work done by
the City, or the unpaid fees, the itemized and total cost of the
work, a description of the work performed, and the name and
address of the Grantee entitled to notice pursuant to this
Article.
B. Upon receipt of said report, the City Clerk shall
present it to the City Council for consideration. The City
Council shall fix a time, date and place for hearing said report,
and any protest or objections thereto. The City Clerk shall
cause notice of said hearing to be posted once in a newspaper of
general circulation in the City, and served by certified mail,
postage prepaid, addressed to the Grantee as set forth herein.
Such notice shall be given at least ten (10) days prior to the
date set for hearing and shall specify the day, hour, and place
when the Council will hear and pass upon the City Engineer's
report, together with any objections or protests which may be
filed as hereinafter provided.
• C. The Grantee may file written protests or objec-
tions with the City Clerk at any time prior to the time set for
the hearing on the report of the City Engineer. Any such protest
or objection must contain a description of the work or unpaid fee
in which the Grantee is interested and the grounds of such
protest or objection and the date it was received by him. He
shall present such protest or objection to the City Council at
the time set for the hearing, and no other protest or objection
shall be considered.
D. Upon the day and hour fixed for the hearing, the
City council shall hear and pass upon the report of the City
Engineer together with any such objections or protests: The
Council may make such revision, correction or modification in the
report or charge as it may deem just; and when the Council is
satisfied with the correctness of the charge, the report as
submitted, or as revised, corrected or modified, together with
the charge, shall be confirmed or rejected. The decision of the
City Council on the report and the charge, and on all protests or
objections, shall be final and conclusive.
E. The City Council may thereupon order that such
charge shall be made a personal obligation of the Grantee or
assess such charge against the property of the Grantee.
• 8MWr s9.0en -9-
(1) If the City Council orders that the charge
• shall be personal obligation of the Grantee,.it shall direct the
City Attorney to collect the same on behalf of the City by use of
all appropriate legal remedies.
(2) If the City Council orders that the charge
shall be assessed against the property of the Grantee, it shall
confirm the assessment, cause the same to be recorded on the
assessment roll, and thereafter, said assessment shall constitute
a special assessment against and a lien upon any property held in
the State of California by the Grantee.
F. The validity of any assessment made under the `
provisions.of this Franchise shall not be contested in any action
or proceeding unless the same is commenced within sixty (60) days
after the assessment is placed upon the assessment roll as
provided herein. Any appeal from a final judgment in such action
or proceeding must be perfected within sixty (60) days.after the
entry of such judgment.
G. The City Council in its discretion, may determine
that assessments in amounts of $500.00 or more shall be payable
in not more than five (5) equal annual installments. The
Council's determination to allow payment of such assessments in
installments, the number of installments, whether they shall bear
interest, and the rate thereof shall be adopted by a resolution
prior to the confirmation of the assessment.
H. Immediately upon its being placed on the
assessment roll, the assessment shall be deemed to be complete,
the several amounts assessed shall be payable, and the
assessments shall be liens against the property of the Grantee in
the State of California. The lien shall be subordinate to all
existing special assessment liens previously imposed upon the
same property, and shall be paramount to all other liens except
for state, county and municipal taxes with which it shall be upon
a Parity. The lien shall continue until the assessment and all
interest due and payable thereon are paid.
(1) All such assessments remaining unpaid after
thirty (30) days from the date of recording on the assessment
roll shall become delinquent and shall bear interest at the then
current levied in judicial judgments from and after said date.
I. After confirmation of the report, certified copies
of the assessment shall be filed with the County Auditor on or
before August 10th. The descriptions of the parcels reported
shall be those used for the same parcels on the County Assessor's
map books for the current year.
J. The amount of.the assessment shall be collected at
the same time and in the same manner as ordinary municipal taxes
0 IMSO=9.ORD -10-
are collected; and shall be subject to the same penalties and
procedure and sale in case of delinquency as provided for
ordinary municipal taxes. All laws applicable to the levy,
collection and enforcement of municipal taxes shall be applicable
to such assessment.
If the City Council has determined that the
assessment shall be paid in installments, each installment and
any interest thereon shall be collected in the same manner as
ordinary municipal taxes in successive years. If any installment
is delinquent, the amount thereof is subject to the same
penalties and procedure for sale as provided for ordinary
municipal taxes.
K. All money recovered by payment of the charge or
assessment or from the sale of the property at foreclosure sale
shall be paid to the City Treasurer.
SECTION 14. BOND. Grantee shall, within thirty (30) days
of the effective date of this Franchise, file with the City
Clerk, and yearly thereafter, maintain in full force and effect,
a bond running to the City in the penal sum of One -Hundred
Thousand Dollars ($100,000.00), with a surety to be.approved.by.
the City Finance Director, conditioned that Grantee shall, will -
and truly observe, fulfill, and perform each and every term and
condition of this Franchise, and in case of a breach of condition►
of said Franchise, at the discretion of the City Council, the
• whole amount.of the penal sum therein shall be paid to the City
in addition to any damages recoverable by the City and shall be
recoverable from the principal and sureties of the bond. If said
bond is not so filed, the award of this Franchise will be set
aside and any money paid therefore will be forfeited..
Whenever a bond is taken and deemed to be liquidated damages
for any breach of a term or condition of this Franchise, the
Grantee must immediately file another bond of like amount and
character, and if the Grantee fails to do so within the time set
by the City Council, the Council may, by resolution, declare said
Franchise automatically forfeited.
Nothing herein shall insulate Grantee from liability in
excess of the amount of said bond or shall be construed as a
waiver by the City of any remedy at law against the Grantee for
any breach of the terms and conditions.of this Franchise, or for
any damage, loss or injuries suffered by the City in case of any
damage, loss or injury suffered by any person, firm, or
corporation by reason of any work done or any activity conducted
by the Grantee in the exercise of this Franchise.
0
sM80=9.0RD _11—
SECTION 15. INSURANCE.
. A. Within thirty (30) days of the effective date of
this Franchise, Grantee shall furnish proof that the Grantee is
insured under abroad form policy of liability insurance issued
by a company authorized to do business in California. Such proof
may be by one or more certificates of insurance evidencing
compliance with the provisions of this Chapter and the Franchise
Ordinance. The City shall approve the form and provisions of the
insurance. The insurance policy shall include, but not be
limited to, coverage for premises operations, explosion and
collapse hazard, underground hazards, contractual insurance,
broad form property damage, independent contractors and personal
injury, and automobile liability. The insurance shall be
maintained in an amount not less than $5,000,000.00.
B. The City and its officers, agents and employees
shall be named as additional insureds on said policy at no cost
to the City. Grantee shall also provide workers' compensation
coverage consistent with California statutory requirements. The
City shall receive thirty (30) days advance written notice of any
proposed reduction in coverage of the insurance policies ,on which
it is carried.as a named insured, as well as on coverage required
to be maintained by this section. Such advance notice shall also
be required as to any proposed or actual cancellation of any such,
policies of insurance. Insurance endorsements of such coverage
shall be filed with the City.
• SECTION 16. INDEMNIFICATION BY GRANTEE. The Grantee
shall indemnify, defend with counsel selected by City, protect
and hold harmless City, its officers, employees, agents, assigns
and any successor or successors to City's interest from and
against all claims, actual damages (including but not limited to
special and consequential damages), penalties, attorneys' fees,
consultant's and expert's fees and costs arising directly or
indirectly as a result of the Grantee's exercise of the.Franchise
or operation of the pipeline system, regardless whether any act
or omission complained of is authorized, allowed, or prohibited
by the Franchise. This indemnity includes, but is not limited to
any repair, cleanup or detoxification, or preparation and
implementation of any removal, remedial, response, closure or
other plan (regardless of whether undertaken due to governmental
action) concerning any hazardous substance or hazardous wastes
including petroleum and its fractions as defined in the
Comprehensive Environmental Response, Compensation and Liability
Act ["CERCLA"; 42 U.S.C. S 9601, et sec.] the Resource
Conservation and Recovery Act ["RCRA"; 42 U.S.C. § 6901 et sea.)
and California Health & Safety Code S-25280 gt sea. at any place
where Grantee maintains a pipeline for the transportation of
substances and liquids pursuant to this Franchise Agreement. The
foregoing indemnity is intended to operate as an agreement
pursuant to Section 107(e) of CERCLA and California Health &
S.m907n59.ORn -12-
Safety Code Section 25364, to assure, protect, hold harmless and
indemnify City from liability.
• SECTION 17. ASSIGNMENT.
A. Grantee shall not transfer, sell, hypothecate,
sublet or assign the Franchise, nor shall any of the rights or
privileges therein be hypothecated, leased, assigned, sold or
transferred, either -in whole or in part, nor shall title thereto,
either legal or equitable, or any right, interest or.property
therein, pass to or vest in any person, except the.Grantee,
either by act of the Grantee or by operation of law, without the
prior consent of the City expressed by resolution. The aforesaid
provisions of this Article 17 shall not prohibit the Grantee from
using its pipelines for the purpose of transporting for other
persons oil, petroleum, gas, gasoline or other hydrocarbon
substances or water, but in such event the Grantee shall be
responsible to the City for the full performance and observance
of the terms and conditions of this Franchise.
B. Any sale, lease or assignment of this Franchise of
the rights or -privileges granted hereby, or any of them without
the prior written consent of the City Council first had an
obtained, whether by operation of law or otherwise, shall be null
and void.
C. The City shall not unreasonably withhold its
. consent to a Franchise transfer. For the purpose of determining
whether it -shall consent to such change, transfer, or change in
control, City may inquire into the qualifications of the
prospective transferee or controlling.party, and Grantee shall
assist City in any such inquiry. In seeking City's consent to
any change of ownership or control, Grantee shall have the
responsibility of insuring that transferee completes an
application in form and substance reasonably satisfactory to
City. An application shall be submitted to City not less than
ninety (90) days prior to the date of transfer. The Grantee
shall be required to establish that it is in material compliance
with its Franchise. The transferee shall be required to
establish that it possesses the qualifications and financial and
technical capability to operate and maintain the pipeline and
comply with all Franchise requirements for the remainder of the
term of the Franchise. If the City finds that the legal,
financial, character, technical and other public interest
qualities of the applicant are satisfactory, and that.the
proposed transferee has the capability to.operate and maintain
the system and comply with all Franchise requirements for the
then remaining term thereof, the City shall consent to the
transfer and assignment of the rights and obligations of such
Franchise. The City may condition the transfer to insure the
transferee is in material compliance, and remains in material
compliance with the Franchise.
• d WrM9.0xn -13-
D. City consent is further required for any change in
control of Grantee, pursuant to Article 17 above. "Change of
control" shall mean any sale, transfer or acquisition of Grantee,
Grantee's parent, the parent of Grantee's parent, etc. If
Grantee or its parent(s) is a corporation, any acquisition of
more than ten percent (10%) of Grantee's voting stock by a person
or group of persons acting in concert, whom already own less than
50% of the voting stock, shall be deemed a change in control.
E. Notwithstanding the above, Grantee shall be
entitled to pledge, encumber, or grant any security interest in
the Franchise, provided that Grantee shall first notify and
obtain.City consent in writing of such proposed transaction.
City shall consent to such transaction, subject, however, to the
following conditions:
(1) Any consent so granted shall not be deemed a
consent to such pledgee, encumbrancer, or secured party
exercising any rights or prerogatives of Grantee under the
Franchise, nor to its exercise of any rights or prerogatives of a
holder of an ownership interest in Franchise.
(2) Any consent so granted shall not be deemed a
consent to any subsequent transfer or assignment as referred to
in this Article. Any such subsequent transfer or assignment
shall be deemed an assignment of this Franchise within the
meaning of.this Section, and shall be subject to the provisions
• of this Section.
(3) The pledgee, encumbrancer, or secured party
shall have executed and delivered to. City an instrument in
writing agreeing to be bound by the provisions of the Franchise.
SECTION 18. RECEIVERSHIP AND FORECLOSURE.
A. Subject to applicable provisions of the Bankruptcy
Code, the Franchise shall, at the option of the City, cease and
terminate one hundred twenty (120) days after the appointment of
a receiver or trustee to take over and conduct the business of
the Grantee whether in a receivership, reorganization, bankruptcy
or other action or proceeding unless such receivership or
trusteeship shall have been vacated prior to the expiration of
said one hundred twenty (120) days, or unless:
(1) Such receiver or trustee shall have, within
one hundred twenty (120) days after his election or appointment,
fully complied with all terms of the Franchise and remedied all
breaches of the Franchise or provided a plan for the remedy of
such breaches which is satisfactory to the City; and
(2) Such receiver or trustee shall, within said
one hundred twenty (120) days, execute an agreement duly approved
0. .maamsv.DnD -14-
by the court having jurisdiction, whereby such receiver or
trustee assumes and agrees to be bound by each and every term,
provision and limitation of the Franchise.
B. Upon the foreclosure or other judicial sale of all
or a substantial part of a pipeline system, the Grantee shall
notify the City Clerk of such fact, and such notification shall
be treated as a notification that a change in ownership of the
Grantee has taken place and the provisions of this Chapter
governing such changes shall apply.
SECTION 19. WAIVER OF BREACH. No waiver of the breach
of any of the covenants, agreements, restrictions, or conditions
of this Franchise by the City shall be construed to be a waiver
of any such succeeding breach of the same or other covenants,
agreements,restrictions or conditions of.this Franchise. No
delay or omission of the City in exercising the right, power or
remedy herein.provided in the event of default shall be construed
as a waiver thereof, or acquiescence therein, nor shall the
acceptance of any payments made in a manner or at a time other
than is herein provided be construed as a waiver of or variation
in any of the terms of this Franchise.
SECTION 20. DEFAULT
A. Default.
• In any event that the Grantee shall default in the
performance of any of the terms, covenants and conditions herein,
the City Manager.may give written notice to the Granteeofsuch
default. In the event that the Grantee does not commence the
work necessary to cure such default within five (5) days after
such notice is sent or prosecute such work diligently to
completion, the City Council may.declare this Franchise forfeited
by giving written notice thereof to the Grantee, whereupon this
Franchise shall be void and the rights of the Grantee hereunder
shall terminate and the Grantee shall execute an instrument of
surrender and deliver the same to the—
City.-
If the City Council declares this Franchise forfeited,
it may thereupon and thereafter exclude the Grantee from further
occupancy or use of all City roads authorized under this
Franchise. A forfeiture of said Franchise shall not of itself
operate to release -the bond filed for said Franchise. Upon
declaring a Franchise forfeited, the City Council may elect to
take and accept the bond as liquidated damages therefore and
pursue any other legal remedy for any damage, loss or injury
suffered by the City as a result of such breach. After .
forfeiture, the bond shall remain in full force and effect for a
period of one (1) year unless exonerated by the. City Council. No
bond shall be exonerated unless a release is obtained -from the
City Engineer of the City of Santa Clarita and is filed with the
41
sfAW=v.oxn -15-
Clerk of the City of Santa Clarita. The release shall state
whether all excavations have -been back filled, all obstructions
removed, and whether the substratum or surface of City roads
occupied or used have been placed in good and serviceable
condition. Release shall not constitute a waiver of any right
or remedy which the City of Santa Clarita may haveagainst the
Grantee or any person, firm or corporation for any damage, loss
or injury suffered by the City as a result of any work or
activity performed by the Grantee in the exercise of this
Franchise.
B. Cumulative Remedies.
No provision herein made for the purpose of securing
the enforcement of the terms and conditions of this Franchise
shall be deemed an exclusive remedy or to afford the exclusive
procedure, for the enforcement of said terms and conditions, but
the remedy and procedure herein provided, in addition to those
provided by law, shall be deemed to be cumulative.
SECTION 21. SCOPE OF RESERVATION. Nothing herein
contained shall ever be construed so as to exempt the Grantee
from compliance with all ordinances of the City now in effect or
which may be hereafter adopted which are not inconsistent with:
the terms of this Franchise. The enumeration herein of specific
rights reserved shall not be construed as exclusive, or as
limiting the general reservation herein made or as limiting such
• rights as the City may now or hereafter have in law.
SECTION 22. NOTICE. Any notice required to be given
under the terms of this Franchise, the manner of service of which
is not specifically provided for, may be served personally or by
United States First Class Mail as follows:
A. Upon the City, by addressing a written notice to
the City Clerk of the City of Santa Clarita, City
Hall, 23920 Valencia Blvd., Suite 300, Santa
Clarita, California 91355;
B. Upon the Grantee, by addressing a written notice
to Texaco Trading and Transportation Inc., P.O.
Box 2087, Bakersfield, CA 93009, Attn: Claims and
Right -of -Way;
C. For such other address as may from time to time.be
furnished in writing by one party to the other and
depositing said notice in the United States Mail,
postage prepaid.
When service of any such notice is made by mail, the time of
such notice shall begin with and run from three days after the
date of the deposit of same in the United States Mail.
• .me0azs9.0en -16-
SECTION 23. SUCCESSORS. The terms herein shall inure
to the benefit of and shall bind, as the case may be, the
successors and assigns of the parties hereto, subject, however,
to the provisions of Section 17.
SECTION 24. RESTRICTION ON SERVICE. The Grantee shall
not use any of the lines laid pursuant to the provisions.of this
Franchise for the purpose of acting as a public utility. In the
event that the Grantee shall violate the provisions of Section
24, the City may give written notice to the Grantee of such
default. In the event that such default is not cured within
thirty (30) days after said notice is sent, the City may declare
this Franchise void.
SECTION 25. INTERPRETATION. This Franchise is granted
upon each and every condition herein contained, and shall be
strictly construed against Grantee. Nothing shall pass by the
Franchise granted hereby to Grantee unless it be granted in plain
and unambiguous terms. Each of said conditions is a material and
essential condition to the granting of the Franchise.
SECTION 26. FORCE MAJEURE. The time within which
Grantee is obligated hereunder to construct, erect, maintain,
operate, repair, renew, change the size of and remove pipelines
or other improvements shall be extended for a period of time
equal in duration to, and performance in the meantime shall be
excused on account of and for and during the period of any delay
. caused by strikes, threats of strikes, lockouts, war, threats of
war, insurrection, invasion, acts of God, calamities, violent
action of the elements, fire, impossibility of obtaining
materials, or other things beyond the reasonable control of
Grantee.
SECTION 27. ATTORNEYS' FEES. In the event the City
brings legal action against Grantee or Grantees bonding
companies or insurance carriers to compel performance of or to
recover for breach of any covenant, agreement or condition
contained in this Franchise, or for damages, Grantee shall and
will pay to the City, in addition to any other relief obtained by
the City, such reasonable attorneys' fees as are fixed by the
judge -of the court in which such action is brought.
SECTION 28. PUBLICATION EXPENSES. The.Grantee of this
Franchise shall pay to the City a sum of money sufficient to
reimburse it for all publication expenses incurred by it in
connection with the granting of this Franchise; said payment to
be made within thirty (30) days after the City shall have
furnished said Grantee with a written statement of such expenses.
0
sM807M9.0RD —17—
SECTION 29. ACCEPTANCE. The Franchise granted hereby
shall not become effective until written acceptance thereof shall
• have been filed by the Grantee with the City Clerk of the City
within thirty (30) days of the effective date of this Ordinance.
SECTION 30. SEVERABILITY. The City Council hereby
declares that the provisions of this Ordinance are severable and
if for any reason a court of competent jurisdiction shall hold
any sentence, paragraph, or Section of this Ordinance to be
invalid, such decision shall not affect the validity of the
remaining parts of this Ordinance.
SECTION 31. CERTIFICATION. The City Clerk shall certify
to the adoption of this Ordinance and shall cause the same to be
posted as required by law.
SECTION 32. EFFECTIVE DATE. This.Ordinance shall be in
full force and effect thirty days after its passage. A summary
of this Ordinance shall be published in a newspaper pdblished and
circulated.in said City at least five (5) days prior to the City
Council meeting.at which the proposed Ordinance is to be adopted.
A certified copy of the full text of the proposed Ordinance shall
be -posted at City Hall. Within fifteen (15) days after adoption
of the Ordinance, the summary with the names of those City
Council members voting for and against the Ordinance shall be
published again, and the City Clerk shall post a certified copy
of the full text of such adopted Ordinance.
• SECTION 33. EFFECTIVE DATE OF FRANCHISE -RETROACTIVITY. All
conditions precedent having first been met to make this Franchise
effective and binding upon the City and the Grantee, the rights,
privileges, limitations, restrictions, conditions, obligations
and duties granted and imposed hereby shall be retroactive to
December 10, 1991.
PASSED, APPROVED AND ADOPTED THIS DAY OF
, 1992. -
MAYOR
ATTEST:
CITY CLERK
• $ff18U=9.0RD -18-
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF SANTA CLARITA
I, . CITY CLERK OF THE CITY OF SANTA CLARITA,
o hereby certify that the foregoing Ordinance No. was duly introduced
and placed upon its first reading at a regular meeting oof the City Council on
the day of , 199 , and that thereafter, said
Ordinance was duly adopted and passed at a regular meeting of the City
Council on the day of 199by the following vote,
to wit:
AYES:
NOES:
ABSENT:
APPROVED .AS TO FORM:
•
TY ATTORNEY
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
CITY CLERK
d}MVM9.0RD -19-