HomeMy WebLinkAboutOrdinance #3014 10
ORDINANCE NO. 3014
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
GRANTING TO UNION OIL COMPANY OF CALIFORNIA, 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 1 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:
City Clerk City Att ne
REVIEWED AND APPROVED: TE D OVED:
City Administrator erector of inistr eve
S rvices
57878
FRANCHISE AGREEMENT BETWEEN THE CITY OF
HUNTINGTON BEACH AND UNION OIL COMPANY OF CALIFORNIA
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
UNION OIL COMPANY OF CALIFORNIA, a California Corporation,
(hereinafter referred. to as "UNION OIL" DBA "UNOCAL" ) , effective
as of February 20 , 1989 (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 . 1033 , the City Council of the
City of Huntington Beach granted to Union Oil a franchise for the
construction, operation and maintenance of a pipeline system for
the transportation of oil, gas and other hydrocarbon substances;
and
Said franchise expired on February 20, 1989 ; and
UNION OIL 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 Franchise Agreement would be consistent with the public
interest, convenience and necessity;
NOW, THEREFORE, the CITY and UNION OIL agree as follows :
1 . Grant. The CITY hereby grants to UNION OIL, for a
term commencing on the Effective Date and continuing through
February 20, 2013 , subject, however, to all limitations,
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3014
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 UNION OIL' 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 UNION OIL' 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 . 1033 , along the following
routes :
Algonquin Street, from its northerly terminus at Heil
Avenue, southerly to its southerly terminus at the
northwesterly line of Warner Avenue; and Warner Avenue,
from said southerly terminus of Algonquin Street,
southerly, southwesterly and westerly to the westerly City
boundary line crossing Warner Avenue .
3 . Incorporation of Pipeline Franchise Ordinance and
Definitions . This Franchise Agreement is granted upon and
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subject t h o the rules regulations, restrictions, terms an 7 gd
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. UNION OIL shall pay the
following fees to the CITY with respect to the rights and
privileges granted to UNION OIL hereunder :
4 . 1 Base granting fee. UNION OIL 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 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
February 20 , 1989
thereof in excess of eight (8) inches from lleltebef 6, 198 , In
determining the number of feet of pipeline upon which the . annual
fee will be computed, the neatest number of feet of pipeline /Y
P g P P
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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 . UNION OIL 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
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,
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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 it 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 . UNION OIL 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 UNION OIL 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 UNION OIL and the CITY with
respect to the matters addressed in this Franchise Agreement .
REST OF PAGE NOT USED
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3014
IN WITNESS WHEREOF, the parties hereto have executed this
Franchise Agreement on the date which is set forth opposite their
respective signatures .
UNION OIL COMPANY OF CALIFORNIA CITY OF HUNTINTON BEACH
a California Corporation a municipal corporation
dba UNOC L
B
R. K. J orison, President Mayor
Unocal eal Estate Division
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney 1^-15-�(
REVIEWED AND APPROVED: INITI -'LLD AND A ROVED:
City Administrator birector o minist ative
Se vices
APPROVED
Descri,Ition:
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3014
Ord. No. 3014
STATE OF CALIFORNIA )
COUNTY OF ORANGE . ss:
CITY OF HUNTINGTON BEACH
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;
that the foregoing ordinance was read to said City Council at a regular
meeting therof held on the 7th 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
I. CQr'*Brcft*y C"M ERK of the CRY Of
Hirt Beach wWex (3okatwe myCity Clerk and ex-offici Clerk
� �� �$$ ��� of the City Council of the City
on ce has been puafsftec!in Me WAY POt on y y
of Huntington Beach, California
In a wkh the Cky Ctrs w of swd City.
Connie BLcg way
Gitf►Clerk