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HomeMy WebLinkAboutOrdinance #3013 ORDINANCE NO. 3013 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH GRANTING TO FOUR CORNERS PIPELINE COMPANY, A CALIFORNIA CORPORATION, A FRANCHISE TO CONSTRUCT, OPERATE AND MAINTAIN A PIPELINE SYSTEM FOR THE TRANSPORTATION OF OIL The City Council of the City of Huntington Beach does ordain as follows : SECTION 1 . The terms and conditions of the franchise awarded by this ordinance are contained in Exhibit l which is incorporated by reference herein as though set forth in this Section 1. SECTION 2 . The City Clerk shall cause each ordinance to be posted in three places designated by the City Council within the .City and to be published by title with a brief summary at Least once within fifteen days after its adoption in a daily, semi-weekly or weekly newspaper, published in the County or the City and circulated in the City, which is selected by the City Council for that purpose. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 21st day of August 1989 . Mayor ATTEST: APPROVED AS TO FORM: QSk�City Clerk 4.1 City�Attrney REVIEWED AND APPROVED: City Administrator Director f A minist ative Services FRANCHISE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND FOUR CORNERS PIPELINE COMPANY PURSUANT TO CITY'S "PIPELINE FRANCHISE ORDINANCE" THIS FRANCHISE AGREEMENT is entered into by and between the City of Huntington Beach, a municipal corporation of the State of California (hereinafter referred to as "CITY" ) , and FOUR CORNERS PIPE LINE COMPANY, (hereinafter referred to as "FOUR CORNERS" ) , effective as of October 5, 1988 (the "Effective Date" ) , pursuant to the CITY' s "Pipeline Franchise Ordinance as set forth in Chapter 3 .44 of the Huntington Beach Municipal Code (Sections 3 .44 . 010 , et seq . ) . RECITALS WHEREAS, by Ordinance No. 989 , the City Council of the City of Huntington Beach granted to Richfield Oil Corporation, FOUR CORNER' S predecessor in interest, a franchise for the construction, operation and maintenance of a pipeline system for the transportation of oil, gas and other hydrocarbon substances; and FOUR CORNERS is the successor in interest to Richfield Corporation, pursuant to Resolution No . 5581 with respect to the rights and obligations of the grantee under said franchise; and Said franchise expired on October 5, 1988 ; and FOUR CORNERS has requested that the CITY renew said franchise; and City Council of the City of Huntington Beach has determined that a renewal of said franchise by the granting of this -1- 3013 Franchise Agreement would be consistent with the public interest, convenience and necessity; NOW, THEREFORE, the CITY and FOUR CORNERS agree as follows : 1. Grant . The CITY hereby grants to FOUR CORNERS, for a term commencing on the Effective Date and continuing through October 5, 2013 , subject, however, to all limitations , restrictions and conditions set forth herein and/or incorporated herein by specific reference, the right , privilege and franchise to lay, construct, maintain, operate, renew, repair , change the size of , remove or abandon in place one or more existing pipes and pipelines for the collection, transportation or distribution of oil, gas , gasoline, petroleum, wet gas and hydrocarbon substances , together with all manholes, valves, appurtenances and service connections necessary or convenient for the operation of said pipes or pipelines including conduits, cathodic protection devices, wires, cables and other appurtenances necessary or convenient for the exercise of FOUR CORNERS ' s business , in, under and along certain streets, roads, highways, alleys, lanes and other public ways within the City of Huntington Beach as herein designated or as may subsequently be authorized pursuant to Section 3 .44 .330 of the Huntington Beach Municipal Code . 2 . Application of Grant . This Franchise Agreement shall apply to that portion of FOUR CORNERS' s pipeline system within the territorial limits of the City of Huntington Beach in existence on the Effective Date and constructed and operated pursuant to the franchise granted by the City Council of the City of Huntington Beach by Ordinance No. 989 , along the -2- 3013 following routes : All streets, highways, alleys and public ways north of the centerline of Clay Street in its westerly prolongation to the west city limits and east to the centerline of Beach Boulevard. 3 . Incorporation of Pipeline Franchise Ordinance and Definitions . This Franchise Agreement is granted upon and subject to the rules , regulations, restrictions, terms and conditions of the CITY' s "Pipeline Franchise Ordinance" as set forth in Chapter 3 .44 of the Huntington Beach Municipal Code, a copy of which is attached hereto as Exhibit "I" and incorporated herein by this reference . All references in this Franchise Agreement to specific sections of the Huntington Beach Municipal Code are references to those sections as they now exist and are reflected in said Exhibit "I" . The words and phrases in this Franchise Agreement shall have the identical meaning as provided in Section 3 .44 . 040 of the Huntington Beach Municipal Code. 4 . Compensation to City. FOUR CORNERS shall pay the following fees to the CITY with respect to the rights and privileges granted to FOUR CORNERS hereunder : 4 . 1 Base granting fee . FOUR CORNERS shall pay the CITY the sum of five thousand dollars ($5, 000) as a one-time base granting fee within thirty (30) days following the execution of this agreement . 4 .2 Base annual fee and adjustments . A base annual fee shall be paid within sixty (60) days after the end of each calendar year during the term of this Franchise Agreement , including 1988, in the amount of twelve cents ($. 12) per lineal foot of pipe for all pipelines with an internal diameter of -3- 3013 eight (8) inches or less and an additional two cents ($. 02) per inch of internal diameter per foot of pipe for each inch or portion thereof in excess of eight (8) inches from October 6, 1988 . In determining the number of feet of pipeline upon which the annual fee will be computed, the greatest number of feet of pipeline covered by this Franchise Agreement during the calendar year for which payment is due will be utilized. If the base annual fee is not paid within seventy-five (75) days following the end of any calendar year during the term hereof , a penalty shall be assessed at the rate of ten percent (10%) per month or fraction thereof beyond the payment date; provided, however, that in no event shall said penalty exceed the rate of fifty percent (50%) . Said base annual fee shall be subject to annual adjustment pursuant to Section 3 .44 .290 of the Huntington Beach Municipal Code. Furthermore, said base annual fee shall be subject to proration pursuant to Section 3 .44 . 300 of the Huntington Beach Municipal Code. 4 . 3 Base construction charges . FOUR CORNERS shall pay at the time of installation, relocation or replacement of any pipeline or other facility covered by this Franchise Agreement, a base construction charge of one thousand five hundred dollars ($1, 500) for each one-half mile of pipeline or fractional part thereof installed, replaced or relocated on major streets and one thousand dollars ($1, 000) per one-half mile or fractional part thereof on minor streets . 5 . Force Majeure. The obligations of any party hereunder, other than the obligation to pay money, shall be suspended for so long as such party is unable, in whole or in -4- 3013 part, to carry out its obligations under this Franchise Agreement by reason of an act of God, strike, walkout or other industrial disturbance, act of the public enemy, war, blockade, public riot, lightning, fire, storm, flood, explosion, governmental action, governmental delay, restraint or inaction, the unavailability of equipment or materials, or any other cause, whether similar or dissimilar to the types specifically enumerated above, which is beyond the reasonable control of the party claiming the right to suspend its obligations . Such affected party shall provide prompt written notice to the other of the details of the "force majeure, " and shall use all reasonable diligence to remove, eliminate or otherwise minimize the force majeure situation as quickly as is practicable. Nothing herein contained shall require a party to settle a labor dispute contrary to the wishes of such party. 6 . Surrender . FOUR CORNERS shall have the right to surrender its rights under this Agreement and be relieved of the obligation to pay the base annual fee herein provided for at any time after the Effective Date hereof by filing written notice of its intention to surrender said right with the City Clerk of the CITY; provided, however that FOUR CORNERS shall comply with the provisions of the existing "Pipeline Franchise Ordinance" relating to removal or abandonment of facilities . 7 . Entire Agreement . This Franchise Agreement contains the entire agreement of the parties and supersedes any prior understandings or agreements between FOUR CORNERS and the CITY with respect to the matters addressed in this Franchise Agreement . -5- 3013 IN WITNESS WHEREOF, the parties hereto have executed this Franchise Agreement on the date which is set forth opposite their respective signatures . FOUR CORNERS PIPE LINE COMPANY CITY OF HUNTINGTON BEACH a municipal corporation Mayor U ATTEST: APPROVED AS TO FORM: &"ai City Clerk City At orney REVIEW p AWAPPOVED: INITIATED AND APPROVED: City Admi istrato Director f Administ ati e services ,- r sg _6_ 3013 Ord. No.- 3013 STATE OF CALIFORNIA ) COUNTY OF ORANGE ss: CITY OF HUNTINGTON BEACH 3 I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach and ex-officio Clerk of the City Council of the said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; i that the foregoing ordinance was read to said City Council at a regular meeting therof held on the nth day of August 19 89 and was again read to said City Council at a regular meeting therof held on the 21st day of August , 19 89 , and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council . AYES: Councilmembers: MacAllister, Green, Winchell, Bannister, Mays, Silva, Erskine NOES: Councilmembers: None ABSENT: Councilmembers: None C of c 4400� ,t, �f:flYCLEWCLEWme ity a Hu"on Bach wd ex4fto CW*offhBM City Clerk and ex-offici Clerk CouW,do Weby 6�fy tO a sy a Shia of p ordnance bast ban erished inft i�r Plot on of the City Council of the City of Huntington Beach, California in actor nc�/the Cty Cf r of Said Cyr Connie Brockway City CWk Clerk