HomeMy WebLinkAboutOrdinance #3354 57-
ORDINANCE NO. 3 3 5 4
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
GRANTING TO TORCH OPERATING COMPANY
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 the"Franchise Agreement Between the City of Huntington Beach and Torch
Operating Company Pursuant to City's Pipeline Franchise Ordinance," a copy of which is
attached hereto as Exhibit"X' and incorporated by reference as though set forth herein.
SECTION 2. The City Clerk shall cause this 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 21 s t day of A2rii 199 7
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk t-r"City Attorney
DEVIEWED AND APPROVED: IN ROVED:
City Administrator IN
ROVED:
City
Administrative Services
41s:PCD:0rdinance:Torch
12/5/96
RLS 96-775
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Huntington Beach Municipal Code 3.44— Index
Chapter 3.44
PIPELINE FRANCHISES
(2319-10/78,2676-2/84)
Sections:
I. GENERAL PROVISIONS AND DEFINITIONS
3,44.010 Short title
3.44.020 General provisions
3.44.030 Pole lines
3.44.040 Definitions
3.44.050 Term
3.44.060 franchise agreement
3.44.070 Nonexclusive franchise
3.44.080 Maps
3.44.090 Insurance
3.44.100 Liability insurance
0.44.110 Workers' compensation insurance
3.44.120 Workers' compensation insurance--Filing
3.44.130 Faithful performance bond
3.44,140 Alternative security
3.44.150 Length
3.44.160 Forfeiture
3.44.170 Value of franchise
3.44.180 State highways
3,44.190 Eminent domain
3.44.200 Publication date
3.44.210 Assignment
3.44.220 Hold harmless
3.44.230 Standards
3.44.240 Defective facilities
3.44.250 Hazardous substances
II. COMPENSATION
1.44.260 Basic granting fee
3.44.270 Base annual fee
3.44.280 Base construction charges
3.44.290 Adjustments--Base annual fee
3.44.300 Proration of payments
3.44.310 Records
III. CONSTRUCTION
3.44.320 Construction requirements
3.44.330 New installation or replacement _
3.44.340 Permits
1.44.350 Work on and restoration of streets
3.44.360 Failure to comply timely
3.44.370 Completion statement
3.44.380 Appurtenances
3.44.390 Ordinary repair
3.44.400 Breaks or leaks
3.44.410 Emergency equipment
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Huntington Beach Municipal Code 3.44.040(g)--3.44.090
(g) "Franchise payment period" shall mean the time period between the effective date of the
franchise agreement granting the franchise and December 31 of the same year, and each
calendar year thereafter, during the life of the franchise.
(h) "Franchise report period" in all cases shall mean the time period between the effective date of
the franchise agreement granting the franchise through and including December 31 of that
year, and each calendar year thereafter, during the life of the franchise.
G) "Highway" or "street" shall mean any public highway, freeway (except a state freeway),
street, road, alley, Iane or court or other public easement, and above and below the same,
which now exists or which may hereafter exist in the city of Huntington Beach.
(j) "Main" shall mean any pipeline or conduit laid in, along or approximately parallel with any
street for the collection,transmission or distribution of any hydrocarbon substances.
(k) "Major street" shall mean any street or portion thereof designated as a major secondary
highway in the circulation element of the Huntington Beach General Plan.
(1) "Minor street" shall mean all streets in the city other than those designated as "major" or
"secondary highways" in the circulation element of the Huntington Beach General Plan.
(m)"Person" shall mean any individual,person, firm,partnership or corporation.
(n) "Section" shall mean a section of the Huntington Beach Municipal Code, unless some other
code or statute is mentioned.
(o) "Service connection" shall mean the wire,pipes, or conduits connecting the building or place
where the service or hydrocarbons supplied by the franchisee is used or delivered, or is made
available for use or delivery,with the supply line or supply main in the highway or with such
supply line or supply main on private property. (2319-10178)
3.44.050 Term. Unless the franchise agreement granting the franchise provides otherwise, the
term of the franchise shall be twenty-five (25)years. (2319-10178)
3.44.060 Franchise agreement. The franchisee shall enter into a written agreement with the
city of Huntington Beach which grants the franchise and sets forth the terms and provisions
therein. (2319-10/78)
3.44.070 Nonexclusive franchise. The granting of the franchise shall not be construed to
prevent the city from granting identical or similar franchise to any person other than the
franchisee. Nothing herein contained shall ever be construed so as to exempt the franchisee from
compliance with all ordinances, rules or regulations of the city now in effect or which may be
hereafter adopted which are not inconsistent with the terms of the franchise. (2319-10/78)
3.44.080 Mans. Within ninety (90) days following the date on which any facilities or
appurtenances have been laid, removed or abandoned under the franchise,the franchisee shall
file a map or maps with the department showing the accurate "as built" location, depth, and size _
of the facilities or appurtenances so laid, removed or abandoned. (2319-10178)
3.44.090 linsurance. On or before commencement of any franchise operations, franchisee shall
obtain or provide satisfactory evidence of having policies of liability and workers' compensation
insurance from companies authorized to transact business in the state of California by the
Insurance Commissioner of California. (2319-10178)
2184
Huntington Beach Municipal Code 3.44.120--3.44.190
Any franchise operation shall not commence until franchisee has complied with the
aforementioned provisions of this section,and any such operation shall be suspended during any
period that franchisee fails to maintain said policies in full force and effect. (2319-10/78)
3.44.130 Faithful performance bond. On or before the effective date of the franchise
agreement granting the franchise, franchisee shall file and thereafter at all times during the life of
the franchise keep on file with the City Clerk a corporate surety bond approved by the City
Attorney running to the city in the penal sum of ten thousand dollars ($10,000) with a surety to
be approved by the City Attorney, conditioned that franchisee shall 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 shall be deemed to be liquidated damages and shall be
recoverable from the principal and sureties of the bond. In the event that said bond, after it has
been so filed, shall at any time during the life of the franchise become insufficient, franchisee
agrees to renew said bond, subject to the approval of the City Attorney, within ten(10) days after
written notice to do so from the Director. (2319-10178)
3.44.140 Alternative security. In lieu of the bond required pursuant to section 3.44.100, the
franchisee may deposit with the Director and assign to the city savings and loan certificates or
shares, or both, in the same amount as required on such bond. (2319-10/78)
3.44.150 Length. Whenever the length of any wire,pipe or conduit is a factor in calculating any
payment due under any franchise granted by the city, all service connections shall be excluded in
determining such lengths. (2319-1 arr8)
3.44.160 Forfeiture. The franchise is granted and shall be held and enjoyed upon each and
every condition contained in the franchise agreement, including such conditions contained herein
as are incorporated by reference in said franchise agreement, and shall be strictly construed
against the grantee. Any neglect, failure or refusal to comply with any of the terms and
provisions of the franchise agreement shall constitute grounds for the suspension or forfeiture of
the franchise, shall give to the grantee not less than thirty(30) days notice in writing of any
default thereunder. If the grantee does not, within the noticed period,begin the work of
compliance or after such beginning does not prosecute the work with due diligence to
completion, the Council may hold a hearing, at which the grantee shall have the right to appear
and be heard, and thereupon the Council may determine whether such conditions are material and
essential to the franchise and whether the grantee is in default with respect thereto and may
declare the franchise suspended or forfeited. Notice of said hearing shall be given to the grantee
by certified mail not less than five (5) days before said hearing. (2319-10178)
3.44.170 Value of franchise. The grantee of any franchise awarded to a public utility,by
accepting the terms and conditions thereof, stipulates and agrees that in any proceeding for the
purpose of adjusting the rates of the grantee, no greater value shall be placed upon the franchise
than the actual cash paid therefor by the grantee. (2319-10178)
3.44.180 State highways. If any street or portion thereof becomes a state highway, except for
the right to continue to collect franchise payments in such other rights as by law remain with the
city, the state shall succeed to all rights reserved to the city by the franchise. (2319-10/78)
3.44.190 Eminent domain. No franchise granted by the city shall in any way impair or affect
the right of the city or any successor in authority to acquire the property of the grantee by
purchase or condemnation, and nothing contained in such a franchise shall be construed to
contract away, modify or abridge either for a term or in perpetuity the city's right of eminent
domain in respect to any public utility. (2319-1 of78)
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Huntington Beach Municipal Code 3.44.250(d)--3.44.250(e)
(d) Extent of available public fire protection facilities.
(e) Number and location of shutoff valves in line. (2319-10178)
11. COMPENSATION
3.44.260. Basic granting fee. In the event of an initial grant of franchise or franchises which
extend,renew, or continue previously granted franchises, a base granting fee shall be required as
established, and amended from time to time,by resolution of the City Council. (2319-10R8,
2676-2184)
3.44.270 Base annual fee. A base annual fee shall be paid by franchisee at times specified and
in the amount established, and amended from time to time, by resolution of the City Council.
(2319-10178,2676-2184)
3.44.280 Base construction charges. The holder of the franchise shall pay at the time of
installation, relocation or replacement of any segment of pipe or pipeline, or any other facility
covered by the franchise agreement, a base construction charge established, and amended from
time to time, by resolution of the City Council. (2319-1 oR8,2676-2184)
3.44.290 Adjustments--Base annual fee. The amount of each annual payment of the base
annual fee shall be revised every year from the effective date of the franchise agreement at the
time of payment, in accordance with the following formula:
(a) The "Wholesale 'Producer' Price" index (1967=100) "All Commodities," established by the
United.States Bureau of Labor Statistics, Department of Labor, as it stands on the date the
franchise is granted, shall be taken as the "base index" upon which the above franchise fee is
computed.
(b) If said index for the calendar month ending two (2) months prior to the month in which
payment to the city is due shall stand at other than said "base index," then the rate of payment
to the city shall vary from said "base annual fee" in direct proportion as said index has
increased from the "base index," as hereinabove defined; provided,however, that in no event
shall the amount of the annual payment be less than the "base annual fee" as set forth herein.
(c) If said bureau shall revise the said index,the parties hereto shall accept the method of
revision or conversion recommended by said bureau.
(d) If said bureau shall discontinue the preparation of the said index using prices prevailing in the
year 1967, as a base of 100 and if no transposition table prepared by said bureau is available,
applicable to said year of 1967, then the amount of each annual payment shall be computed
by reference to such other price index as may be chosen by city and the city shall be the sole
judge of comparability of successive indices. (2319-10/78)
3.44.300 Proration of payments. In the event of abandonment of facilities with the approval of
the city as elsewhere in this chapter provided, or in the event of removal of such facilities by the
franchisee, or in the event of the grant of a franchise with an initial franchise payment period of _
less than one year, the annual franchise fee required under section 3.44.390 shall be prorated for
the calendar year in which such removal or abandonment or grant occurs as of the end of the
calendar month in which removed, abandoned or granted. (2319-10178)
3.44.310 Records, Franchisee shall keep and preserve for a period of five (5) years subsequent
to the date of the most recent franchise fee determination all the records necessary to determine
the amount of such franchise fee.
2184
Huntington Beach Municipal Code 3.44.360-3.44.420(a)
more than two hundred dollars ($200)per day as liquidated damages for each day construction
extends beyond the time specified in the permit.
Whenever the franchisee fails to complete any work required by the terms and provisions of the
franchise, and the permits issued thereunder, within the time limits required thereby, the city may
complete or cause to be completed any and all such work at the expense of the franchisee. The
franchisee agrees to pay to the city the cost of performing such work. The amount so chargeable
to franchisee shall be the direct cost of such work plus the current rate of overhead being charged
by the city for reimbursable work. (2319-10l78)
3.44.370 Cg=letion_statement. Upon the completion of the construction of any pipelines or
appurtenances constructed pursuant to said franchise, the franchisee shall submit a statement to
the Director, identifying the permit or permits issued by the department,the total length of
pipeline, the construction of which was authorized under such permit or permits, and the total
length of pipeline or appurtenances actually laid. (2319-10178)
3.44.380 Appurtenances. The franchisee shall have the right to construct,maintain and repair
such traps, manholes, conduits,valves, appliances, attachments and appurtenances (hereinafter
collectively referred to as "appurtenances") as may be necessary or convenient for the proper
maintenance and operation of the pipelines under said franchise, and said appurtenances shall be
kept flush with the surface of the street and so located as to conform to any ordinance, resolution
or regulation of the city, or of any permit issued by the department in regard thereto and shall not
interfere with the use of the street for travel. The franchisee shall have the right subject to such
ordinances,resolutions and regulations as are now or may hereafter be in force,to make all
necessary excavations in said street for the construction, maintenance and repair of said
appurtenances;provided,however,that the franchisee shall first obtain an excavation permit
from the department for doing any such work. (2319-10/78)
3.44.390 Ordinary repair. The franchisee shall be privileged to excavate in the road or street
for line repair for the number of days agreed upon by the franchisee and the department;
provided,however, that the franchisee shall first obtain an excavation permit from the
department for the doing of any such work. (2319-10178)
3.44.400 Breaks or leaks. If any portion of the street shall be damaged by reason of breaks or
leaks in any pipe, conduit, or appurtenance constructed or maintained under the franchise,the
franchisee thereof shall, at its own expense, immediately following written or oral notification
thereof,promptly repair any such damage and put such street in as good condition as it was in
before such damage or leak, all to the satisfaction of the department. The franchisee shall obtain
an excavation permit from the department for the doing of any such work. (2319-10/78)
3.44.410 Emergency equipment. At all times during the term of this franchise,the franchisee
shall maintain or arrange for, on a twenty-four (24)hour a day basis adequate emergency
equipment and a properly trained emergency crew within a radius of twenty-five (25) 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 an
earthquake, act of war, civil disturbance, fire, flood, or any other cause or nature whatsoever.
(2319-10/78)
3.44.420 Removal or abandonment of facilities.
(a) At the expiration, revocation or termination of this franchise or the permanent discontinuance
of the use of all or a portion of its facilities,the franchisee shall, within thirty (30) days
thereafter make written application to the city for authority either. (1) to abandon all or a
- portion of such facilities in place; or(2) to remove all or a portion of such facilities. The
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Huntington Beach Municipal Code 3.44.470--3.44.500
3.44.470 Approvals. On all pipelines laid pursuant to the franchise, the Director shall approve
where flush-valve connections shall be placed in the line. The availability of adequate water
supplies, the hydrocarbons transmitted in the line, and the location of control valves shall be
considered when making such determination. Such flush-valve connections shall be installed in
the manner prescribed by the Director. (2319-10/7&)
3.44.480 Reports. The franchisee during the life of the franchise,within sixty (60) days after
the expiration of each franchise payment period, shall:
(a) File with the Director two copies of a verified report of the franchisee showing for the
immediately preceding franchise period,the length of lines in streets, the internal diameter of
such lines, the rate per foot per year and the total amount due the city.
(b) File with.the Director a report in triplicate, showing the permit number of each permit
obtained for the installation of new mains during the immediately preceding franchise
payment period, together with the length and size of said mains. On this report the franchisee
shall show any change in franchise footage since the last franchise payment period
segregating such footage as to new mains laid, old mains removed, old mains abandoned in
place, and the footage of mains in territory annexed or incorporated since the last franchise
payment period. (2319-10178)
3.44.490 Payments due. Except for pipelines lawfully maintained other than by the authority
granted by the franchise, the annual payments shall accrue from the respective dates of
installation, whether before or after the effective date of the franchise agreement, and such
payments, together with the initial construction charges, if any, shall be due and payable
annually. (2319-10f78)
3.44.500 Cost of relocation. Franchisee shall bear the costs of removing and relocating its
facilities used and maintained under this franchise if made necessary by any lawful change of
grade, alignment or width of any public street,way, alley or place, or for any public project, even
if franchisee's facilities are located on a private easement. (2319-10178)
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Ord. No. 3354
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 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 thereof held on the 7th of April, 1997, and was again read to said
City Council at a regular meeting thereof held on the 21st of April, 1997, and was
passed and adopted by the affirmative vote of at least a majority of all the members of
said City Council.
AYES: Julien, Harman, Dettloff, Bauer, Sullivan, Green, Garofalo
NOES: None
ABSENT: None
ABSTAIN: None
1,Connie Brockway CITY CLERK of the City of
Huntington Beach and ex-officio Clerk of the City
Council,do hereby certify that a synopsis of this
ordinance has been published in the Independent on or
44�-
,19
In accordance with the City Charter of said City City Clerk and ex-officio Clerk
Connie Brockway City Clerk of the City Council of City
Deputy City Clerk of Huntington Beach, California
G/ordinane/ordbkpg
1/12/98