HomeMy WebLinkAboutOrdinance #3974 ORDINANCE NO. 3974
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
GRANTING TO OXY USA, INC. 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 hereby 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 Oxy USA, Inc.
Pursuant to City's Pipeline Franchise.Ordinance," a copy of which is attached hereto as Exhibit "A"
and incorporated by this 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 of Orange 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 I s t day of Apri 1 , 20 136"�aj A04��—
Mayor
ATTEST: IN ED AND APPROVED:
(j--jW- 4
City Clerk Deputy City Manager/Director of Economic
Development
REVS APPROVED:
___APPROVED AS TO FORM:
�61y�4anager
City Attorn y
12-3501/86924
Ordinance No. 3974 /��T
FRANCHISE AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
OXY USA INC. PURSUANT TO CITY'S
PIPELINE FRANCHISE ORDINANCE
THIS FRANCHISE AGREEMENT (this "Franchise") is made and entered into this day
of 1�)MCtf /[f, 2013 by and between the CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of California(hereinafter referred to as "City" or"Grantor"),
and OXY USA Inc., a Delaware corporation (hereinafter referred to as "OXY USA" or
"Grantee"), ,pursuant to the City's "Pipeline Franchise Ordinance" as set forth in Huntington
Beach Municipal Code("HBMC")Chapter 3.44.
RECITALS
1. WHEREAS, Oxy USA,Inc.has applied to the City of Huntington Beach for a
franchise for the construction,operation and maintenance of a pipeline system for the
transportation of oil,gas and other hydrocarbon substances; and
2. The City Council of the City of Huntington Beach has determined that granting
said franchise by the approval of this Franchise Agreement would be consistent with the public
interest, convenience and necessity,and desires to grant said franchise on the terms and
conditions set forth hereinbelow,
NOW,THEREFORE,the City and OXY USA agree as follows:
SECTION L . DEFINITIONS.
Whenever in this ordinance the words or phrases hereinafter in this section defined are
used, they shall have the respective meaning assigned to them in the following defmitions
(unless, in the given instance, the context wherein they are used shall clearly import a different
meaning).
(a) The word"grantee" shall mean OXY USA and'its lawful successors or assigns;
12-3501/88D5-oi 1
Ordinance No.3974
(b) The word "City" shall mean the City of Huntington Beach, a municipal
corporation of the State of California, in its present incorporated form or in any later reorganized,
consolidated,enlarged or reincorporated form;
(c) The word "streets" shall mean the public streets,ways, alleys and places as the
same now or may hereafter exist within the City, including state highways, now or hereafter
established within the City, and freeways hereafter established within the City;
(d) The word"franchise"shall mean and include any authorization granted hereunder
in terms of a franchise, privilege, permit, license or otherwise to construct, maintain and use
pipes and appurtenances for the business of transmitting and distributing oil for all purposes
under, along, across or upon the public streets, ways, alleys and places in the City, and shall
include and be in lieu of any existing or future City requirement to obtain a license or permit for
the privilege of transacting and carrying on a business within the City;
(e) The phrase "pipes and appurtenances" shall mean pipes, pipelines, mains,
services, traps, vents, cables, conduits, vaults, manholes, meters, appliances, associated
communications infrastructure, attachments, appurtenances, and any other property located or to
be located in, upon, along, across, or under property of the City, and used or useful in the
transmitting and/or distributing of oil;
(f) The word "oil" shall mean natural or manufactured oil, or a mixture of natural and
manufactured oil;
(g) The phrase "construct, maintain, and use" shall mean to construct, erect, install,
lay, operate,maintain,use,repair, or replace;and
SECTION 2. PURPOSE and GRANT
That the right,privilege and franchise, subject to each and all of the terms and conditions
contained in this Agreement, and pursuant to the provisions of Section 6231 of the Public
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Ordinance No.3974
Utilities Code of the State of California, and HBMC Chapter 3.44 be and the same is hereby
granted to Grantee to construct, maintain and use pipes and appurtenances for transmitting and
distributing oil for any and all purposes,under, along, across or upon the streets of the City. The
City hereby grants to Grantee 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, water, gas, gasoline,
petroleum, wet gas, or other 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 Grantee's business, in, under and along certain
streets, roads, highways, alleys, lanes and other public ways within City as herein designated or
as may subsequently be authorized pursuant to HBMC Chapter 3,44.
SECTION 3. APPLICATION OF GRANT
This Franchise Agreement shall apply to that portion of the pipeline system within the
territorial limits of City to be constructed by Grantee after this Agreement is approved by the
City Council as follows:
Six-inch oil pipeline as follows:
Running generally along the alley between Pacific Coast Highway and Walnut Avenue,
crossing 19'h, 20th, 21", 22°d, and Goldenwest Streets, as more specifically described and
depicted in the legal description and sketch attached hereto as Exhibit "A" and
incorporated by this reference as though fully set forth herein.
SECTION 4. INCORPORATION OF OIL PIPELINE FRANCHISE ORDINANCE
The City's grant of this Franchise Agreement is subject to the rules, regulations,
restrictions, terms and conditions of the City's "Pipeline Franchise Ordinance" as recently
amended and set forth in Chapter 3.44 of the HBMC, a copy of which is attached hereto as
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Ordinance No.3974
Exhibit "B," and incorporated herein by this reference. All references in this Franchise
Agreement to specific sections of the HBMC are references to those sections as they now exist
and are reflected in said Exhibit "B." The words and phrases in this Franchise Agreement shall
have the identical meaning as provided in Section 3.44.040 of the HBMC. If any terms
referenced in this Franchise Agreement or the HBMC are in conflict, the terms of the HBMC,
shall govern followed by this Franchise Agreement, except that any term more protective of the
City's rights and remedies shall govern regardless of which agreement or code sections are
thereby referenced.
SECTION 5. TERM
The franchise granted herein shall be from and after the effective date hereof; and shall
endure in full force and effect until December 31, 2033, or until the state or some municipal or
public corporation thereunto duly authorized by law shall purchase by voluntary agreement or
shall condemn and take under the power of eminent domain, all property actually used and useful
in the exercise of said franchise and situate in the territorial limits of the state, municipal, or
public corporation purchasing or condemning such property, or until said franchise shall be
forfeited for non-compliance with its terms by the Grantee. Upon mutual agreement of the
parties, this Franchise Agreement may be extended for two (2) additional periods of ten (10)
years each.
SECTION 6. COMPENSATION TO CITY
Grantee shall pay the following fees to the City with respect to the rights and privileges
granted to Grantee hereunder:
6.1 Base Granting Fee. Grantee shall pay the City the sum of Five Thousand Dollars
($5,000.00) as a one-time base granting fee within thirty (30) days following the execution of
this Agreement.
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Ordinance No. 3974
6.2 Base Annual Fee and Adjustments. A base annual fee shall be paid within (30)
days after the end of each calendar year during the term of the Franchise Agreement, as amended
herein, as follows:
Pipeline Size (A) BL Fee Formula
and Type Len h Fee per linear
linear feet foot
6"oil 1407 $0.895 x CPI (A)X(B)
Adjustment
See HBMC Section 3.44.290 when calculating annual
adjustments to the Base Annual Fee using the Consumer Price
Index-Los Angeles-Riverside-Orange County area (1982-
1984=100).
The base annual fee shall be subject to proration pursuant to Section 3.44.300 of the
HBMC (HBMC fee).
6.3. Base Construction Charges. Pursuant to HBMC Section 3.44.280, Grantee shall
pay at the time of installation, relocation or replacement of any pipeline or other facility covered
by the Franchise Agreement, a base construction charge established, and amended from time to
time, by resolution of the City Council.
6.4 Removal or Abandonment of Facilities Fee. Grantee shall pay a fee pursuant to
HBMC Section 3.44.420 for the removal or abandonment of Grantee's existing facilities located
along Walnut Avenue,between 191h Street and Goldenwest Street.
6.5 Payments to City. Payment is due thirty (30) days after the City's invoice date
and a ten percent (10%) per month late penalty or fraction thereof beyond the payment date shall
be charged, but in no event shall said penalty exceed fifty (50) percent. In addition an eighteen
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percent (18%) annual interest cost will be charged for any delinquent payment. The City will
also withhold any permits and/or not renew licenses if any payment is delinquent. Payments
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Ordinance No.3974
should be mailed to the City Treasurer, City of Huntington Beach, P.O. Box 711, Huntington
Beach, CA 92648.
HBMC Section 3.44.290 shall govern when calculating annual adjustments to the Base
Annual Fee using the Consumer Price Index-Los Angeles-Riverside-Orange County area(1982-
1984=100).
The base annual fee shall be subject to proration pursuant to Section 3.44.300 of the
HBMC.
SECTION 7. FAITHFUL PERFORMANCE BOND
On or before the effective date of this Franchise Agreement, Grantee shall file and
thereafter at all times during the term of the Franchise Agreement keep on file with the City
Treasurer a corporate surety bond approved by the City Attorney running to the City in the penal
sum of One Hundred Thousand Dollars ($100,000). In the event that said bond, after it has been
so filed, shall at any time during the term of the Franchise Agreement become insufficient,in the
sole opinion of the City Council, Grantee agrees to renew said bond within ten (10) days after
written notice to do so from the City Treasurer. At such time, the bond shall be increased by a
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rate set forth by the City Council,with a surety to be approved by the City Attorney, conditioned
that Grantee shall well and truly observe, fulfill and perform each condition of the Franchise
Agreement, as amended, 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. If said bond is not filed prior to the effective date of this
Agreement, the approval of this Agreement may be denied and the ordinance granting the
Franchise Agreement repealed at any time prior to the filing of said bond and any money paid.
12-3501/88035-01 6
Ordinance No. 3974
SECTION 8. OTHER FRANCHISES
This grant is made in lieu of all other oil utility franchises or leased easement agreements
owned by the Grantee, or by any successor of the Grantee to any rights under this franchise, for
transmitting and distributing oil within the limits of the City, as said limits now or may hereafter
exist, and the acceptance of the franchise hereby granted shall operate as an abandonment of all
such oil utility franchises, leases or easements within the limits of this City, as such limits now or
may hereafter exist,in lieu of which this franchise is granted.
SECTION 9. OBLIGATIONS OF GRANTEE
(a) All facilities or equipment of Grantee shall be constructed, installed and
maintained in accordance with and in conformity with all of the ordinances,rules and regulations
heretofore, or hereafter adopted by the legislative body of this City in the exercise of its police
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powers and not in conflict with the paramount authority of the State of California, and, as to state
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highways, subject to the provisions of the general laws relating to the location and maintenance
of such facilities, including but not limited to, HBMC Sections 3.44.320 through 3.44.447,
inclusive.
(b) If any portion of any street shall be damaged by reason of defects in any of the
pipes and appurtenances maintained or constructed under this grant, or by reason of any other
cause arising from the operation or existence of any pipes and appurtenances constructed or
maintained under this grant, Grantee shall, at its own cost and expense, immediately repair any
such damage and restore such portion of such damaged street to as good condition as existed
before such defect or other cause of damage occurred.
(c) The Grantee shall pay to the City, on demand, the cost of all repairs to public
property made necessary by any operations of the Grantee under this franchise.
(d) Grantee shall indemnify, save, and hold harmless, City and any officers and
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Ordinance No. 3974
employees thereof against and from all damages, judgments, decrees, costs and expenditures
which City, or such officer or employee; may suffer, or which may be recovered from, or
obtainable against City, or such officer or employee, for, or by reason of, or growing out of or
resulting from the exercising by Grantee of any or all of the rights or privileges granted hereby,
or by reason of any act or acts of Grantee or its servants or agents in exercising the franchise
granted hereby, and Grantee shall defend any suit that may be instituted against City, or any
officer or employee thereof, by reason of or growing out of or resulting from the exercise by
Grantee of any or all of the rights or privileges granted hereby, or by reason of any act or acts of
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Grantee, or its servants or agents,in exercising the franchise granted hereby.
(e) At Grantee's sole cost and expense, Grantee shall abandon its current pipeline
along Walnut Avenue between 19`h Street and Goldenwest Street in accordance with City's
regulatory standards,including,but not limited to,HBMC Section 3.44.420.
SECTION 10. REMOVE OR RELOCATE FACILITIES
(a) City reserves the right for itself to lay, construct, erect,install,use, operate,repair,
replace, remove, relocate or maintain below surface or above surface improvements of any type
or description in, upon, along, across,under or over the streets of the City. City further reserves
the right to lawfully change the grade, alignment or width of any street. If the necessary exercise
of the aforementioned reserved rights conflicts with any pipes and appurtenances of Grantee
constructed, maintained, and used pursuant to the provisions of the franchise granted hereby,
Grantee shall, without cost or expense to City within ninety (90) days after written notice from
the City Manager, or his designated representative, and request so to do, begin the physical
design and field construction of changing the location of all facilities or equipment so
conflicting. Grantee shall proceed promptly to complete such required work.
(b) Irrespective of any other provision of this ordinance, Grantee's right to'construct,
12-3501188035-01 8
Ordinance No.3974
maintain, and use, or remove pipes and appurtenances thereto shall be subject at all times to the
right of the City, in the exercise of its police power, to require the removal or relocation of said
pipes and appurtenances thereto at the sole cost and expense of Grantee, except (1) as the law
may otherwise provide or, (2) except where Grantees right to possession is pursuant to
instruments evidencing right-of-way, easements or other interest in real property, or (3) except
where the removal or relocation is made at the request of the City on behalf of or for the benefit
of any private developer, CalTrans,or other third party.
(c) In the event that the City is made aware of a project developed by a governmental
agency, water company, private party or the City that would be located within five hundred feet
of a regulator station or other major oil facilities, City shall notify Grantee and initiate
discussions among the implicated parties in order to assess potential economic and community
impacts and facilitate coordinated and economically reasonable outcomes.
SECTION 11. TRANSFER OR SALE OF FRANCHISE
This franchise may not be transferred (voluntarily, involuntarily, or by operation of law),
leased or assigned by the Grantee except by written consent of the City Council, which may be
withheld or conditioned at the City's sole discretion, and unless the transferee or assignees
thereof shall agree to be bound by the terms and conditions of this Agreement. Grantee of the
franchise granted hereby shall file with the City Manager and the legislative body of the City
within thirty (30) days after any sale, transfer, assignment or lease of this franchise, or any part
thereof, or of any of the rights or privileges granted thereby, written evidence of the same,
certified thereto by the Grantee or its duly authorized officers.
SECTION 12. FORFEITURE
This franchise is granted upon each and every condition herein contained. Nothing shall
pass by the franchise granted hereby to Grantee unless it be granted in plain and unambiguous
12-3501/88035-01 9
Ordinance No.3974
terms. Each of said conditions is a material and essential condition to the granting of the
franchise. If Grantee shall fail, neglect or refuse to comply with any of the conditions of the
franchise granted hereby, and if such failure, neglect or refusal shall continue for more than
thirty (30) days after written demand by the City Manager for compliance therewith, then City,
by the City Council, in addition to all rights and remedies allowed by law, thereupon may
terminate the rights, privilege, and franchise granted in and by this ordinance, and all the rights,
privileges and the franchise of Grantee granted hereby shall thereupon be at an end. Thereupon
and immediately, Grantee shall surrender all rights and privileges in and to the franchise granted
hereby. No provision herein made for the purpose of securing the enforcement of the terms and
conditions of the franchise granted hereby shall be deemed an exclusive remedy or to afford the
exclusive procedure for the enforcement of said terms and conditions, but the remedies and
procedure outlined herein or provided, including forfeiture,shall be deemed to be cumulative.
SECTION 13. LIABILITY INSURANCE
The policy of liability insurance required by HBMC Chapter 3.44 shall be issued to
Grantee and name the City and its officers, agents, and employees as additional insureds. It shall
further indemnify for all liability for personal and bodily injury, death and damage to property
arising from activities conducted pursuant to the Franchise Agreement by providing coverage
thereof,including but not limited to:
(a) Negligent acts or omissions of Grantee and the agents, servants and employees
thereof, committed in the conduct of operations under the Franchise Agreement.
(b) Provide combined single limit liability insurance in the amount of five million
dollars($5,000,000).
(c) Be noncancellable without thirty (30) days written notice thereof directed to the
City.
12-3501/88035-01 10
Ordinance No.3974
SECTION 14. ENVIRONMENTAL IMPAIRMENT LIABILITY INSURANCE
The policy of environmental impairment liability insurance or other environmental
insurance policy as approved at the sole discretion of the City as required by HBMC Chapter
3.44 shall insure liability for environmental impairment including cleanup cost endorsed for
"Sudden and Accidental" contamination or pollution. Such coverage shall be in an amount and
form to meet all applicable state and federal requirements but in no event less than five million
dollars($5,000,000)per occurrence.
(a) If written with an annual aggregate limit, the policy limit must be three (3)times
the above-required occurrence limit.
(b) If written on a claims made form, such insurance shall be endorsed to provide an
extended reporting period of not less than two (2) years following termination or cancellation of
the Franchise Agreement.
SECTION 15. WORKERS' COMPENSATION INSURANCE
The policy of workers'compensation insurance, shall:
(a) Have been previously approved as to substance and form by the California
Insurance Commissioner.
(b) Cover all employees of Grantee who in the course and scope of their employment
conduct or do work involving operations under the Franchise Agreement.
(c) Provide for every benefit and payment presently or hereinafter conferred by
Division 4 of the Labor Code of the State of California upon an injured employee, including
vocational rehabilitation and death benefits.
(d) Be noncancellable without thirty (30) days written notice thereof directed to the
City.
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Ordinance No. 3974
SECTION 16. INSURANCE POLICY REQUIREMENT
Grantee shall file with the City prior to commencement of any franchise operations either
certified copies of said policies or a certificate of insurance for each of the required policies
executed by the company issuing the policy, certifying that the policy is in force and providing
the following information:
(a) The policy number.
(b) The date upon which the policy will become effective and the date upon which it
will expire.
(c) The names of the insured and any additional insureds.
(d) Subject of the insurance.
(e) The type of coverage provided by the insurance.
(f) Amount of limit of coverage provided by the insurance.
(g) A description of all endorsements that form a part of the policy.
(h) In addition to the insurance requirements in this section the insured shall also
agree to defend, indemnify and hold harmless City against loss,damage or expense by reason of
any suits, claims, demands,judgments caused by insured in the performance of the franchise as
provided in HBMC Chapter 3.44. Any franchise operation shall not commence until Grantee has
complied with the aforementioned provisions of this section, and any such operation shall be
suspended during any period that Grantee fails to maintain said policies in full force and effect.
SECTION 17. 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,
12-3501/88035-01 12
Ordinance No. 3974
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 parry.
SECTION 18. ACQUISITION AND VALUATION
The franchise granted hereunder shall not in any way or to any extent impair or affect the
right of the City to acquire the property of the Grantee hereof either by purchase or through the
exercise of the right of eminent domain, and nothing herein contained shall be construed to
contract away or to modify or to abridge, either for a term or in perpetuity, the City's right of
eminent domain in respect to the Grantee; nor shall this franchise ever be given any value before
any court or other public authority in any proceeding of any character in excess of the cost to the
Grantee of the necessary publication and any other sum paid by it to the City therefor at the time
of the acquisition thereof.
SECTION 19. PUBLICATION COSTS
The Grantee of said 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 thereof,
such payment to be made within thirty (30) days after the City shall have furnished such Grantee
with a written statement of such expenses.
SECTION 20. EFFECTIVE DATE
The franchise granted hereby shall not become effective until written acceptance thereof
shall have been filed by the Grantee with the City Clerk. When so filed, such acceptance shall
12-3501/88035-01 13
Ordinance No. 3974
constitute a continuing agreement of the Grantee that if and when the City shall thereafter annex
or consolidate with additional territory, any and all franchise rights and privileges owned by the
Grantee therein shall likewise be deemed to be abandoned within the limits of the additional
territory.
SECTION 21. WRITTEN ACCEPTANCE
After the publication of the ordinance related to this Franchise,the Grantee shall file with
the City Clerk a written acceptance of the franchise hereby granted, and an agreement to comply
with the terms and conditions hereof.
SECTION 22.. PUBLICATION
The City Clerk shall certify to the adoption of this ordinance, and within fifteen(15) days
after its adoption, shall cause the same (with a list of the councilmembers voting for and against)
to be published in the Huntington Beach Independent, a newspaper of general circulation
published and circulated in the City.
REST OF PAGE INTENTIONALLY LEFT BLANK
12-3501/88035-01 14
Ordinance No. 3974
IN WITNESS WHEREOF,the parties hereto have caused this Franchise Agreement to be
executed by and through their authorized offices the day,month and year first above written.
&.kt.waxr—
OXY USA INC.,a�corporation CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California
(4-zc
e
By. dark. a • 4;?4klie
print name 6"tj
ITS: (circle one)Chairman/President4ice President Mayor
AND `
CV Clerk
3IIgItg P�
By: -
/vi,c�-A ,,p M�ciC�'z_ D AND A ROVED:
print name
ITS: (circ ,one)Secretary/Chief...Financial
Officersst.'Secretary-Treasurer of Econdmic Development
APPROVED AS TO FORM:
REVIE APPROVED: M i J
ula
City Attorney
Manager
V
Exhibits:
A. Depiction of Pipeline System
B. HBMC Chapter 3.44
12-3501/Compare Result 2 15
Ordinance No. 3974
- Exhibit
I
Ordinance No.3974
EXHIBIT A
Description of Public Road Alignments of Oxy USA,Inc's
6-inch Oil Pipeline
within 19`s Street and the alley northeasterly of Pacific Coast Highway
City of Huntington Beach
County of Orange
State of California
Commencing at the centerline intersection of Pacific Coast Highway(100 feet wide) and
19`b Street(75 feet wide);thence northeasterly 210 feet along the centerline of 191k Street;
thence southeasterly,perpendicular to said centerline, 37.5 feet to a point on the
southeasterly line of 19a'Street,said point being the True Point of Beg`uxing;thence
northwesterly 77 feet to the centerline of the southeast/northwest alley(15 feet wide)
between Pacific Coast Highway and Walnut Ave;thence northwesterly along said
centerline 1330 feet to the northwesterly line of Goldenwest Street(120 feet wide).
Total footage of 6-inch oil pipeline in city streets: 1407 feet
Attached hereon is Plat Exhibit A and by this reference made a part hereof
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Exhibit A-Sheet 1 of 2
KA5415WesignlROWt5415_HB_dty franchise—E*�h—A.doc 09/19/12
My of HB franchise desc—6'pipeline—Ft Apache to Oxy HB—a0ach 5415-IX-901
Ordinance No. 3974
TRUE POINT OXY
'� OF BEGINNING FORT
APACHE
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77' 37.5'
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—19TH ST- -�— - - —i
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210'
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15 WIDE ALLEY =
—20TH
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—21ST
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OXY USA, INC.
60 OIL PIPELINE
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GOLDENWEST ST—
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39 _� A PORTION OF THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA
X
a % 0' 200' 400'
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OXY USA, INC. 6—INCH OIL PIPELINE
9 �
OXY USA Inc. PLAT EXHIBIT A � RWS 5415—EX-901
i 301 E Ocean Boulevard, Suite 300 "h
,'_ Y Long Beach, CA 90B02 Sheet 2 Of 2 SHOWN 09/19/12
Ordinance No. 3974
Exhi. bit
Ordinance No. 3974
Chapter 3.44
PIPELINE FRANCHISES
(2319-10/78,2676-2/84, 3850-1/10,3889-9/10)
Sections
I. GENERAL PROVISIONS AND DEFINITIONS
3.44.010 Short Title
3.44.020 General Provisions
3.44.025 Franchise Required When
3.44.030 Pole Lines
3.44.040 Definitions
3.44.050 Term
3.44.060 Acceptance of Franchise Agreement
3.44.070 Nonexclusive Franchise
3.44.080 Maps
3.44.090 Repealed—Ordinance No. 3889-9/10
3.44.100 Liability Insurance
3.44.105 Environmental Impairment Liability Insurance
3.44.110 Workers' Compensation Insurance
3.44.120 Insurance--Filing
3.44.130 Faithful Performance Bond
3.44.140 Repealed—Ordinance No. 3889-9/10
3.44.150 Repealed—Ordinance No. 388.9-9/10
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
3.44.231 Conflicting Improvements
3.44.240 Defective Facilities
3.44.250 Hazardous Substances
3.44.251 Damage to Public Property Generally
II. COMPENSATION
3.44.252 Public Utility Not Transmitting Oil or Products Thereof
3.44.253 Length
3.44.255 Public Utility Transmitting Oil or Products Thereof
3.44.256 Non-Public Utility Franchises
3.44.260 Basic Granting Fee
3.44.270 Base Annual Fee
3.44.271 Payments to City
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
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3.44.350 Work On and Restoration of Streets
3.44.360 Failure to Comply Timely
3.44.370 Completion Statement
3.44.371 Responsibility
3.44.380 Facilities
3.44.386 Shoring
3.44.390 Ordinary Repair
3.44.400 Breaks or Leaks
3.44.410 Emergency Equipment
3.44.420 Removal or Abandonment of Facilities
3.44.430 Failure to Comply
3.44.440 Abandonment "In Place" Conditions
3.44.447 Operation After Franchise Expiration—Revocable License
IV. SPECIAL PROVISIONS FOR PETROLEUM PIPELINES
3.44.450 Rights Granted
3.44.460 Materials Used
3.44.470 Approvals
3.44.480 Reports
3.44.490 Payments Due
3.44.500 Cost of Relocation
I. GENERAL PROVISIONS AND DEFINITIONS
3.44.010 Short Title. This chapter shall be known and cited as "Pipeline Franchise Ordinance."
(2319-10/78)
3.44.020 General Provisions. Every franchise hereafter granted by the City to lay, construct,
maintain, operate, renew, repair, change the size of,remove or abandon in place pipes and
pipelines for the collection,transportation or distribution of oil, gas, gasoline,petroleum, wet
gas, hydrocarbon substances, or other 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 the franchisee's business, in, under, along or across
any and all streets within the City of Huntington Beach except as otherwise provided in the
particular franchise agreement, shall be granted upon and be subject to the rules, regulations,
restrictions and terms and conditions of this chapter, in addition to those rules, regulations,
restrictions, terms and provisions set forth in the particular franchise agreement. (2319-10178,
3889-9110)
3.44.025 Franchise Required When. It is unlawful for any person, firm or corporation to
exercise any privilege or franchise to lay or maintain any pipes or conduits in or under any
public street, or alley in the City, for the transmission of gas, water, heat, steam, or other
substance or to exercise any franchise or privilege for the erection or maintenance, in or upon
any public street or alley in the City, of any telephone, telegraph, electric light or power poles,
wires, or system, or for the erection of any pole or wire for the purpose of transmitting electrical
energy or current, without first having procured a franchise to do so unless such person, firm or
corporation is entitled to do so by direct and unlimited authority of the Constitution of the state
or the Constitution of the laws of the United States. (3850-1110)
3.44.030 Pole Lines. Nothing in this chapter or in any franchise agreement granting such a
franchise shall be construed to permit the grantee to construct new poles or other facilities
aboveground. (2319-10178)
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Ordinance No. 3974
3.44.040 Definitions. For the purpose of this chapter, the following terms,phrases, words and
their derivations shall have the meaning given herein:
(a) "Council" shall mean City Council of the City of Huntington Beach. (3889-9/10)
(b) "Code" shall mean the Huntington Beach Municipal Code.
(c) "Department" shall mean the Public Works Department of the City of Huntington Beach.
(3889-9/10)
(d) "Director" shall mean the Public Works Director of the City of Huntington Beach. (3889-9/10)
(e) "Franchisee" or "grantee" shall mean the person to whom the franchise is granted, and any
person to whom it is lawfully assigned.
(f) "Facilities" or "appurtenances" shall mean all property owned or used by the franchisee, in
connection with the franchise, including but not limited to, pipelines, pump stations, and
service connection with the franchisee's facilities, whether installed by the franchisee as
named or originally granted under this franchise or its predecessors or assignors, erected,
constructed, laid, operated or maintained in, upon, over, under, along or across any street
pursuant to any right or privilege granted by the franchise. (3889-9/10)
(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 calendar year, and
each calendar year thereafter, during the life of the franchise. (3889-9/10)
(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
calendar year, and each calendar year thereafter, during the life of the franchise. (3889-9/10)
(i) "Highway" or "street" shall mean any public highway, freeway (except a state freeway),
street, road, alley, lane 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. (3889-9/10)
(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.
(3889-9/10)
(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. (2319-1078)
(p) "Shall" is mandatory; "May" is permissive. (3889-9/10)
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Ordinance No.3974
3.44.050 Term. Unless the franchise agreement granting the franchise provides otherwise, the
term of the franchise shall be fifteen(15)years. (2319-10n8,3889-9/10)
3.44.060 Acceptance of 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. The franchisee shall, within thirty (30) days after the passage of the
ordinance granting the franchise, file with the City Clerk of the City of Huntington Beach a
written acceptance of the terms and conditions of said ordinance. The franchise shall be null and
void if the written acceptance is not filed within the prescribed time. (2319-10178, 3889-9/10)
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, 3889-9/10)
3.44.080 Maps. 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. (2319-16/78,3889-9/10)
3.44.100 Liability Insurance. The policy of liability insurance required by this chapter shall be
issued to franchisee and name the City and its officers, agents, and employees as additional
insureds. It shall further indemnify for all liability for personal and bodily injury, death and
damage to property arising.from activities conducted pursuant to the franchise by providing
coverage thereof, including but not limited to: (3889-9/10)
(a) Negligent acts or omissions of franchisee and the agents, servants and employees thereof,
committed in the conduct of franchise operations.
(b) Provide a combined single limit liability insurance in the amount of five million dollars
($5,000,000). (3889-9/10)
(c) Be noncancellable without thirty (30) days written notice thereof directed to the City of
Huntington Beach. (2319-10/78, 3889-9/10)
3.44.105 Environmental Impairment Liability Insurance. The policy of environmental
impairment liability insurance or other environmental insurance policy as approved at the sole
discretion of the City as required by this Chapter shall insure liability for environmental
impairment including cleanup cost endorsed for"Sudden and Accidental" contamination or
pollution. Such Coverage shall be in an amount and form to meet all applicable state and federal
requirements but in no event less than five million dollars $5,000,000 per occurrence. (3889-9/10)
(a) If written with an annual aggregate limit, the policy limit should be three (3) times the above-
required occurrence limit. .(3889-9/10)
(b) If written on a claims made form, such insurance shall be endorsed to provide an extended
reporting period of not less than two (2)years following termination or cancellation of this
franchise. (3889-9/10)
3.44.110 Workers' Compensation Insurance. The policy of workers' compensation insurance,
required by this chapter, shall:
(a) Have been previously approved as to substance and form by the California Insurance
Commissioner.
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Ordinance No. 3974
(b) Cover all employees of franchisee who in the course and scope of their employment to
conductor do work pursuant to the franchise operations. (3889-9/10)
(c) Provide for every benefit and payment presently or hereinafter conferred by Division 4 of the
Labor Code of the State of California upon an injured employee, including vocational
rehabilitation and death benefits. (3889-9/10)
(d) Be noncancellable without thirty (30) days written notice thereof directed to the City of
Huntington Beach.
(2319-10/78,3889-9/10)
3.44.120 Insurance--Filing. Franchisee shall file with the City Clerk prior to commencement
of any franchise operations either certified copies of said policies or a certificate of insurance for
each of the required policies executed by the company issuing the policy, certifying that the
policy is in force and providing the following information: (3889-9/10)
(a) The policy number.
(b) The date upon which the policy will become effective and the date upon which it will expire.
(c) The names of the insured and any additional insureds.
(d) Subject of the insurance.
(e) The type of coverage provided by the insurance.
(f) Amount of limit of coverage provided by the insurance.
(g) A description of all endorsements that form a part of the policy.
(h) In addition to the insurance requirements in this section the insured shall also agree to defend,
indemnify and hold harmless the City of Huntington Beach against loss, damage or expense
by reason of any suits, claims, demands,judgments caused by insured in the performance of
the franchise as provided in Section 3.44.220. (3889-9/10)
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 Treasurer a corporate surety bond approved by the City
Attorney running to the City in the penal sum of One Hundred Thousand Dollars ($100,000). In
the event that said bond, after it has been so filed, shall at any time during the life of the franchise
become insufficient, in the sole opinion of the City Clouncil, the franchisee agrees to renew said
bond within ten(10) days after written notice to do so from the City Treasurer. At such time, the
bond shall be increased by a rate set forth by City Council,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. If said bond is not filed prior to the effective date of the
ordinance granting the franchise,the award of the franchise may be set aside and the ordinance
granting the franchise repealed at any time prior to the filing of said bond and any money paid in
consideration for said award of franchise shall be deemed forfeited. 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. (2319-10/78, 3889-9/10)
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Ordinance No. 3974
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. (2319-10/78)
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. (2319-10/78)
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. (2319-10/78,3889-9/10)
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. (2319-10/78, 3889-9/10)
3.44.200 Publication Costs. The grantee shall pay to the City within thirty (30) days after
receiving a statement therefore, all advertising and publishing costs, including the cost of
publishing the granting of the franchise, if necessary. (2319-10/78, 3889-9/10)
3.44.210 Assignment. The grantee shall not directly or indirectly sell, transfer, assign or lease
the franchise or any part thereof, or allow any other person or entity to operate any pipeline or
related facility subject to the franchise, except with the written approval of the Council which
may be withheld at its sole and absolute discretion. Such sale, transfer, assignment, or lease shall
be made only by filing with the Council a copy of the duly executed instrument of such sale,
transfer, assignment or lease and a written request for the consent of the Council to such sale,
transfer, assignment or lease. If such duly executed instrument and such written request is not
filed with the Council before the expiration of thirty (30) days after the effective date of such
sale, transfer, assignment or lease, then, upon the expiration of said thirty (30) days, the franchise
shall be subject to forfeiture and the Council may, without notice, revoke the franchise. As a
condition to the granting of consent to such sale, transfer, assignment or lease, the Council may
impose such additional terms and conditions upon the franchisee and upon the grantee or
assignee, which the Council may deem to be in the public interest. Such additional terms and
conditions shall be expressed by Council resolution. Nothing herein contained shall be construed
to grant to the grantee the right to sell, transfer, assign or lease the franchise, or any part thereof,
except in the manner aforesaid. This section applies to any assignment, whether by operation of
law, by a voluntary act of the grantee or otherwise and includes a transfer of more than fifty
percent (50%) of the voting stock of any corporate grantee or the change in identity of any
general partner of a franchisee which is a partnership, whether to a third parry or to any
subsidiary, parent, or affiliated agency of franchisee. (2319-10/78, 3889-9/10)
3.44.220 Fold Harmless. The grantee shall be responsible to the City and shall defend,
indemnify and hold.harmless the City and its officers and employees from all damages or liability
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Ordinance No. 3974
arising from the use, operation or maintenance of the facilities erected, constructed, laid, operated
or maintained thereunder. (2319-10/78,3889-9/10)
Franchisee hereby agrees to protect, defend, indemnify and hold harmless City, its officers,
elected or appointed officials, employees, agents, and volunteers from and against any and all,
claims, damages, losses, expenses,judgments, demands defense costs, and consequential damage
or liability of any kind or nature, however caused, including those resulting from death or injury
to franchisee's employees and damage to franchisee's property, arising directly or indirectly out
of the obligations or operations herein undertaken by franchisee, caused in whole or in part by
any negligent act or omission of the franchisee, any subfranchisees, anyone direcly or indirectly
imployed by any of them or anyone for whose acts any of them may be liatie, including but not
limited to concurrent active or passive negligence, except where caused by the active negligence,
sole negligence, or willful misconduct of the City. Franchisee shall conduct all defense at its sole
cost and expense and City shall approve selection of franchisee's counsel. City shall be
reimbursed for all costs and attorney's fees incurred by City in enforcing this obligation. This
indemnity shall apply to all claims and liability regardless of whether any insurance policies are
applicable. The policy limits do not act as a limitations upon the amount of indemnification to
be provided by franchisee. (3889-9/10)
3.44.230 Standards. All facilities erected, constructed, laid, operated or maintained under the
provisions of the franchise shall be erected, constructed, laid, operated or maintained in
accordance with and conforming to all the ordinances, codes, rules and regulations now or
hereafter adopted by or prescribed by the Council. (2319-10/78)
3.44.231 Conflicting Improvements. If the City or any other public entity constructs or
maintains any storm drain, sewer structure, or other facility or improvement under or across any
facility of the grantee maintained pursuant to the ordinance, the grantee shall provide at no
expense to the City or other public entity such support as shall be reasonably required to support,
maintain and protect grantee's facility. (3889-9/10)
3.44.240 Defective Facilities. If any portion of any street shall be damaged by reason of
defective facilities laid or constructed under the franchise, the grantee shall, at its own expense,
repair any such defect and put such street in as good condition as it was before such damage was
incurred, to the satisfaction of the City. If the grantee, within ten(10) days after receipt of
written notice from the City, instructing it to repair such damage, shall fail to commence to
comply with such instructions, or, thereafter, shall fail diligently to prosecute such work to
completion, then the City immediately may do whatever work is necessary to carry out said
instructions at the cost and expense of the grantee, which cost and expense, by the acceptance of
the franchise, the grantee agrees to pay upon demand. If such damage constitutes an immediate
danger to the public health or safety requiring the immediate repair thereof, the City without
notice may repair such damage and the grantee agrees to pay the reasonable cost thereof upon
demand. (2319-10/78, 3889-9/10)
3.44.250 hazardous Substances. Prior to the issuance of any excavation permit for the
construction or installation of any pipeline for the transmission of flammable liquids or gases,
written approval shall be obtained from the Director. Said approval may be withheld at the sole
and absolute discretion of the Director. Said approval may be based on the determination that no
undue fire hazard will be created to life or property in the areas through which the proposed
pipeline will be located. To make such determination, consideration shall be given to: (3889-9/10)
(a) Type of hydrocarbon to be transmitted.
(b) Density of population or structural development in the area through which the pipeline will
be located.
(c) Adequacy of water supplies for fire control purposes.
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(d) Extent of available public fire protection facilities.
(e) Number and location of shutoff valves in line. (2319-10/78)
3.44.251 Damage to Public Property Generally. Any damage done directly or indirectly to
any public property by grantee, in exercising directly or indirectly any right, power, or privilege
under this franchise, or in performing any duty under or pursuant to the provisions of this section,
shall be promptly repaired by grantee at its sole cost and expense to as good a condition as it was
befor such damage was incurred, and to the satisfaction of the Director. If the franchisee, within
ten (10) days after receipt of written notice from the City, instructing it to repair such damage,
shall fail to commence to comply with such instructions, or thereafter, shall fail to diligently
prosecute such work to completion, the City immediately may do work necessary to carry out
said instructions and the cost and expense of the franchisee,which cost and expense, by the
acceptance of the franchise, the franchisee agrees topay upon demand. If such damage
constitutes an immediate danger to the public health or safety requiring the immediate repair
thereof, the City without notice may repair such damage and the franchisee shall pay all costs
incurred. (3889-9/10)
II. COMPENSATION
3.44.252 Public Utility Not Transmitting Oil or Products Thereof. The franchisee of any
franchise awarded to a public utility or non-public utility not transmitting oil or products thereof,
as consideration for such franchise, shall annually pay to the City in lawful money of the United
States, within thirty (30) days after the end of each calendar year and during the life of the
franchise for each and every year, including the year of granting the franchise a franchise fee
negotiated as part of the franchise agreement(unless preempted by State Law) arising from the
use, operation or possession of the franchise. (3889-9/10)
3.44.253 Length. Whenever the length of any wire, pipe or conduit is a factor in calculating any
payment due under any franchise granted by the, all service connections shall be excluded in determining
such lengths. (3889-9/10)
3.44.255 Public Utility Transmitting Oil or Products Thereof. The franchisee of any franchise
awarded for a pipeline transmitting oil or products thereof which has been determined by the Public
Utilities Commission to be a public utility, as consideration for such franchise, shall, within thirty (30)
days after the end of each calendar year and during the life of the franchise for each and every year,
including the year of granting the franchise, annually pay to the City in lawful money of the United
States, a fee in the following amounts as required by State law. In the event these referenced fees
increase pursuant to State law,,the fees referenced herein shall increase by the same: (3ss9-9/10)
Pipelines with an Internal Diameter of: Base Rate Per Lineal Foot
0-4 inches .088
6 inches .132
8 inches .176
10inches .220
12 inches .264
14 inches .308
16 inches .352
18 inches .396
20 inches .440
22 inches .484
24 inches .528
26 inches .572
28 inches 616
30 inches .660
(3889-9/10)
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For pipelines with an internal diameter not listed above, the fees shall be in the same proportion to the
fees of a twelve (12)-inch-diameter pipe as the diameter of the unlisted pipe is to twelve(12) inches.
(3889-9/10)
The amount of the fee or charge provided for in this paragraph shall be multiplied by the Consumer Price
Index, all Urban Consumers (CPI-U)for the Los Angeles-Riverside-Orange County Area for the month
of September immediately preceding the month in which payment is due and payable, and divided by the
Consumer Price Index, All Urban Consumers (CPI-U for the Los Angeles-Riverside-Orange County
Area for June 30, 1989, (1982-84=100.0)). (3889-9/10)
3.44.256 Non-Public Utility Franchises. The franchisee of any franchises awarded to other than a
public utility transmitting oil or oil products thereof, as further consideration for such franchise including
the extension, renewal, or continuation of a previously granted franchise, shall pay to the City in lawful
money of the United States the following fees: (3889-9/10)
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 (2319-10/78,
2676-2/84)
3.44.270 Base Annual Fee. A base annual fee shall be paid by franchisee within thirty (30)
days after the end of each calendar year including the year of granting the franchises, according to
the franchise payment period as defined in this chapter, in the following amounts: (2319-10/78,
2676-2/84, 3889-9/10)
Pipelines with an Internal Diameter of- Amount Per Lineal Foot
0-4 inches .590
6 inches .895
8 inches 1.197
10 inches 1.485
12 inches 1.787
14 inches 2.092
16 inches 2.377
18 inches 2.682
20 inches 2.984
22 inches 3.272
24 inches 3.574
26 inches 3.879
28 inches 4.164
30 inches 4.469
The base annual rate applicable to pipelines with an internal diameter falling between incremental size
categories shall pay a rate determined by adding the price corresponding to the lower size to a figure
computed by multiplying the difference between the higher and lower price times the multiplier. The
multiplier will be determined by dividing the difference between the size of the pipe and the lower size
category by the difference between the two size categories. 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
the franchise during the calendar year for which payment is due will be utilized. The base annual fee
shall be paid no later than 30 days and a penalty at the rate of ten(10)percent per month or fraction
thereof beyond the payment date shall be charged, but in no event shall said penalty exceed fifty (50)
percent. (3889-9/10)
The City reserves the right to adjust the base fees established hereunder at any time after the effective
date of the ordinance. (3889-9/10)
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Ordinance No.3974
3.44.271 Payments to City. Payment is due 30 days after the City's invoice date and a 10%per
month late penalty and 18% annual interest cost will be charged for any delinquent payment.
The City will also withhold any permits/not renew licenses if any payment is delinquent.
Payments should be mailed to the City Treasurer, City of Huntington Beach, P.O. Box 711,
Huntington Beach, CA 92648-0711. (3889-9/10)
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. (2319-10/78,2676-2/84)
3.44.290 Adiustments--Base Annual Fee.
The amount of each base annual fee as specified in the above section shall be revised every year, in
accordance with the following formula: (3889-9/10)
(a) The Consumer Price Index, All Urban Consumers (CPI-U) for the Los Angeles-Riverside-
Orange County area(1982-84=100) as published by the United States Bureau of Labor
Statistics ("Bureau"), shall be defined as the "index," and such index as it stands on August
1, 2010 shall be defined as the "base index" and the index for the month of September
immediately preceding the fee payment date shall be defined as the"current index;"
(3889-9/10)
(b) If the current index differs from the base index, then the base annual fee shall increase or
decrease by the percentage increase or decrease between the current index and the base index,
provided that, if the current index drops below the base index, no adjustment shall be made.
The base annual fee shall be multiplied by an adjustment factor determined by dividing the
current index by the base index. (3889-9/10)
For example, if the base index is 185.0 and the current index is 190.5, the annual franchise fee shall be
(i.e. 190.5/185.0 = 1.0297), times the base annual fee, provided however, under no circumstances shall
the multiplying factor be less than one, nor shall the annual franchise fee calculated using said factor, be
less than the base annual fee. If the Bureau shall revise the index, the parties hereto shall accept the
method of revision for conversion recommended by the Bureau; and (3889-9/10)
(c) If the Bureau discontinues the preparation or publication of the CPI-U, All Urban Consumers
for the Los Angeles-Riverside-Orange County area(1982-84=100), and if no transposition
table prepared by the Bureau is available, then the amount of each annual franchise fee shall
be computed by reference to such other price index as may be chosen by the City, and the
City shall be the sole judge of comparability of successive indices and its determination on
this point shall be final and conclusive. In no event shall the annual franchise fee adjustment
by reference to such other price index be less than the base annual fee as set forth herein.
(3889-9/10)
(d) Publication and Administrative Issuance Costs. The franchisee shall pay to the City within
thirty (30) days after receiving a statement therefore, all administrative and other costs
incurred by the City processing the application for a franchise, including but not limited to
the preparation of any reports, statements or studies pursuant to the California Environmental
Quality Act(Public resources Code Section 21000, et seq.) and any similar federal statute, or
any successor statute, and for any and all advertising and publishing costs, including the cost
of publishing the ordinance, if necessary, incurred in connection with the granting of the
franchise. (3889-9/10)
(e) The base annual fee may also be amended from time to time by resolution of the City
Council. (3889-9/10)
City of Huntington Beach Municipal Code Chapter 3.44 Page 10 of 16
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Ordinance No. 3974
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 the aforementioned sections 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. (2319-10/78,3889-9/10)
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.
At all reasonable times, the franchisee shall permit the City or its duly authorized representative
to examine all property of the franchisee erected, constructed, laid, operated or maintained
pursuant to the franchise, together with any appurtenant property of the franchisee, and to
examine and transcribe any and all books, accounts, papers, maps, and other records kept or
maintained by the franchisee or under its control which concern the operations, affairs,
transactions,property or financial condition of the franchisee with respect thereto. Said records
shall be made available to the City at a location in the County of Orange. (2319-10/78,3889-9/10)
III. CONSTRUCTION
3.44.320 Construction Requirements. Pipelines and appurtenances shall be constructed and
maintained in a good workmanlike manner in conformity with applicable law and the terms and
conditions of any City ordinance,rule or regulation now, or as hereafter amended, adopted or
prescribed by the City. All pipes pipelines and appurtenances will be installed in accordance
with the latest revision of the "American Standard Code of Pressure Piping ASA 1331.4."
(2319-10/78,3889-9/10)
3.44.330 New Installation or Replacement. New installations or replacements of pipelines and
appurtenances and all other facilities necessary for the installation, operation, maintenance, and
safety of pipelines and conduits shall be laid and maintained only pursuant to applicable law and
permit issued by the Department. All such installations or replacements shall be reviewed by the
Director as to the most desirable location in the streets of the City and his decision shall be final
and binding on the franchisee. (2319-10/78,3889-9/10)
3.44.340 Permits. Where the provisions of any City ordinance, resolution or regulation, which
shall be in force at that time, require the issuance of an excavation, encroachment or other type of
permit, the franchisee shall not commence any excavation or encroachment work under the
franchise until it shall have obtained such permit from the Department except in cases of
emergency affecting public health, safety or welfare or the preservation of life or property, in
which case the franchisee shall apply for such permit not later than the next business day.
(3889-9/10)
The application of the franchisee for such permit shall show the following facts: the length and
proposed location of the pipeline and/or appurtenance intended to be installed, and such other
facts as the Department may require. The franchisee shall pay any and all permit inspection fees
required by the Department. (2319-1078,3889-9/10)
3.44.350 Work On and Restoration of Streets. The work of constructing, laying, replacing,
maintaining,repairing or removing all pipelines and appurtenances authorized under the
provisions of this chapter in, over, under, along or across any street shall be conducted with the
least possible hindrance to the use of the street for purposes of travel. As soon as such work is
completed, all portions of the street which have been excavated or otherwise damaged thereby
shall promptly and in a workmanlike manner be repaired, replaced or restored and placed in as
good condition as before.the commencement of such work and shall be done to the satisfaction of
the Director at the expense of the franchisee, and in accordance with the terms and conditions of
any City ordinance,resolution or regulation. For streets that have been rehabilitated within three
City of Huntington Beach Municipal Code Chapter 3.44 Page 11 of 16
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Ordinance No. 3974
(3) years prior to the proposed work, the City shall require the resurfacing, or other treatment, of
the entire lane widths of the street as directed by the Director. For those streets that have not
been rehabilitated by the City within three (3)years prior to the proposed work, the restoration
shall be in full compliance with City requirements. All restoration,repair or replacement work
shall be done to the satisfaction of the Director at the expense of the franchisee in accordance
with all applicable law. In the event that the franchisee shall fail or neglect to make such
highway repair, replacement or restoration work, ten(10) days after notice therefore has been
given franchisee by the Director, the City may repair, replace or restore said highway at the
expense of franchisee. Franchisee agrees to pay to the City the cost of performing such work.
The amount so chargeable shall be the direct cost of such work plus the current rate of overhead
being charged by the City for reimbursable work. (2319-10/78, 3889-9/10)
3.44.360 Failure to Comply Timely. In the event that the franchisee fails to complete the work
within the time specified in the permit, the City may require the franchisee to pay to the City not
more than five hundred dollars ($500) per day as liquidated damages for each day construction
extends beyond the time specified in the permit. (3889-9/10)
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. (2319-10/78, 3889-9/10)
3.44.370 Completion Statement. Upon the completion of the construction of any pipelines or
other facilities 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, pipeline material, diameter of pipeline, the construction of which was authorized under
such permit or permits, and the total length of pipeline or facilities actually laid and as-built
drawings. (2319-10/78,3889-9/10)
3.44.371 Responsibility. In addition to any indemnification set forth herein, franchisee shall be
specifically responsible to the City and shall save the City, its officers, agents, and employees,
free and harmless from all damages or liability arising from any damage or injury suffered by any
person by reason of any excavation or obstruction being improperly guarded during any work
authorized pursuant to the franchise or the failure to neglect of the franchisee to properly
perform, maintain, or protect any phase of such work. (3889-9/10)
3.44.380 Facilities. The franchisee shall have the right to construct, maintain and repair such
traps, manholes, conduits, valves, appliances, attachments and other facilities as may be
necessary or convenient,for the proper maintenance and operation of the pipelines under said
franchise, and said facilities shall be kept flush with the surface of the street and so located as to
conform to applicable law including 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 facilities; provided, however, that the
franchisee shall first obtain an excavation permit from the Department for doing any such work.
(2319-10/78,3889-9/10)
3.44.386 Shoring. The franchisee shall provide at its sole cost such shoring or other support as
shall be reasonably required to support, maintain, and protect franchisee's facilities in connection
with any storm drain or sewer construction by the City or in connection with any facility
constructed by City, or by any successor agency. (3889-9/10)
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
City of Huntington Beach Municipal Code Chapter 3.44 Page 12 of 16
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Ordinance No. 3974
provided, however, that the franchisee shall first obtain an excavation permit from the
Department for the doing of any such work. (2319-10/78,3889-9/10)
3.44.391 Relocation of Pipelines and Facilities. The City reserves the right to change the
grade, to change the width or to alter or change the location of any street over which the franchise
is granted. If any of the pipelines, facilities or appurtenances heretofore or hereafter constructed,
installed or maintained by the franchisee pursuant to the franchise on, along, under, over, in,
upon or across any street are located in a manner which conflict in any way with the change of
grade, traffic needs, operation, maintenance, improvements, repair, construction, reconstruction,
widening, alteration or relocation of the street, the franchisee shall relocate permanently or
temporarily any such facility at no expense to the City upon receipt of a written request from the
Director to do so, and shall commence such work on or before the day specified in such written
request which date shall be not less than thirty (30) days from receipt of such written request.
Franchisee shall thereafter diligently prosecute such work to completion. (3889-9/10)
The City reserves the right for itself, and all other public entities which are now or may later be
established,to lay, construct, repair, alter, relocated and maintain subsurface or other facilities or
improvements of any type or description in a governmental but not proprietary capacity within
the streets over which the franchise is granted. If the City or any other public entity finds that the
location or relocation of such facilities or improvements conflicts with the facilities laid,
constructed or maintained under the franchise, whether such facilities were laid before or after
the facilities of the City or such other public entity were laid, the franchisee of such franchise
shall at no expense to the City or public entity, on or before the date specified in a written request
from the Director, which date shall be not less than thirty (30) days after the receipt of such
notice and request to do-so, commence work to change the location either permanently or
temporarily of all facilities so conflicting with such improvements to a permanent or temporary
location in said streets to be approved by the Director and thereafter diligently prosecute such
work to completion. (3889-9/10)
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. (2319-10/78,3889-9/10)
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 Director 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. Such
application shall describe the facilities desired to be abandoned or removed by reference to
the map or maps required by Section 3.44.080 and shall also describe with reasonable
accuracy the physical condition of such facilities. The Director shall determine whether any
abandonment or removal which is thereby proposed may be effected without detriment to the
public interest and under what conditions such proposed abandonment or removal may be
safely effected and shall then notify the franchisee of his determination. The franchisee shall
City of Huntington Beach Municipal Code Chapter 3.44 Page 13 of 16
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Ordinance No. 3974
pay to the City the cost of all tests required to determine the disposition of the application for
abandonment removal. (3889-9/10)
(b) Within thirty (30) days after receipt of such notice, the franchisee shall apply for a permit
from the Department to abandon or remove the facility and shall pay all fees and costs related
thereto. Such permit is to contain the conditions of abandonment or removal as may be
prescribed by the Director. Any abandonment shall be conditioned, in part, upon the
franchisee's compliance with the provisions set forth in this Chapter. (3889-9/10)
The franchisee shall, within ninety (90) days after obtaining such permit commence and
diligently prosecute to completion,the work authorized by the permit. If the franchisee applies
for authority to abandon all or a portion of its facilities in place, and the Director determines that
abandonment in place of all or part of the facilities may be affected without detriment to the
public interest,the franchisee shall pay to the City a fee which shall be computed as follows:
Pipelines with an Internal Diameter of Amount per Lineal Foot
0-12inches $15.00
14-18-inches $22.00
20-30 inches $28.00
(2319-10/78, 3889-9/10)
3.44.430 Failure to Comply.
(a) If any facilities to be abandoned "in place" subject to prescribed conditions shall not be
abandoned in accordance with all such conditions the Director may make additional
appropriate orders, including an order that the franchisee shall remove any or all such
facilities. The franchisee shall comply with such additional orders.
(b) In the event that the franchisee shall fail to comply with the terms and conditions of
abandonment or removal as may be required by this chapter and within such time as may be
prescribed by the Director, the City may remove or cause to be removed such facilities at the
franchisee's expense. The franchisee shall pay to the City the cost of such work plus the
current rate of overhead being charged by the City for reimbursable work. (3889-9/10)
(c) If, at the expiration, revocation or termination of this franchise, or of the permanent
discontinuance of the use of all or a portion of its facilities,the franchisee shall, within thirty
(30) days thereafter, fail or refuse to make written application for the abovementioned
authority, the Director shall make the determination as to whether the facilities shall be
abandoned in place or removed. The Director shall then notify the franchisee of his
determination. The franchisee shall thereafter comply with the provisions of subsection (b)
of section 3.44.420. (2319-10/78)
3.44.440 Abandonment "In Place" Conditions. Facilities abandoned "in place" shall be
subject to the condition that if, at any time after the effective date of the abandonment, the
Director determines that the facility may interfere with any public project, franchisee or its
successor in interest must remove the facility at its expense when requested to do so by the City
or to pay City for the cost of such removal. (2319-10/78,3889-9/10)
3 44 447 Operation After Franchise Expiration—Revocable License. If a franchise is to
expire within sixty days according to the franchise terms, and a new franchise has been
requested, but has not yet been granted, the franchisee may request the Mayor and City Council
to issue the franchisee a written revocable license, for a renewable term not to exceed one
hundred twenty (120) days from the expiration of the franchise, permitting the franchisee to
continue to locate its existing facilities in or upon public property in the City during the term of
the license. The Mayor and City Council may issue such a revocable license, subject to any
restrictions,terms, and conditions (including compensation), without limitation, that they deem
City of Huntington Beach Municipal Code Chapter 3.44 Page 14 of 16"
9115110
Ordinance No.3974
to be in the best interests of the City. Nothing herein requires the Mayor and City Council to
grant such a revocable license, nor does the issuance of such a revocable license require that the
Mayor and City Council grant the franchisee a new franchise. Upon request of the franchisee, the
City Clerk shall provide a revocable license application form. (3850-1/10)
IV. SPECIAL PROVISIONS FOR PETROLEUM PIPELINES (3889-9/10)
3 44.450 Rights Granted. The franchisee granted a petroleum pipeline franchise shall have the
right during the life thereof to transport oil, gas, gasoline,petroleum, wet gas and other
hydrocarbon substances through the pipelines maintained under the franchise. If the franchisee
or assignee later qualifies before the Public Utilities Commission of the State of California as a
common carrier, the franchisee or assignee shall then have no right to continue to operate
hereunder after the date of such qualification except with the consent of the Council, granted
upon such additional terms and conditions as the Council may deem proper or as superseded by
statute. Such additional terms and conditions shall be expressed by resolution.
(2319-10178,3889-9/10)
3.44.460 Materials Used. All pipelines,used or to be used for the transportation of oil, gas,
gasoline, petroleum, wet gas and other hydrocarbon substances shall be first class and standard
material as set forth by current American Petroleum Institute pipeline specifications. (2319-10178)
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. (2319-10/78)
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. (3889-9/10)
(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. (2319-10/78)
(c) All payments should be mailed to the City Treasurer, City of Huntington Beach, P.O. Box
711, Huntington Beach, CA 92648-0711. (3889-9/10)
3.44.490 Pavments Due. Except for pipelines lawfully maintained other than by the authority
granted by the franchise, the semi-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 semi-
annually. (2319-10178,3889-9/10)
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. If the grantee after reasonable notice,
fails or refuses to relocate permanently or temporarily its facilities located in, on,upon, along,
under, over, across or above any highway or to pave, surface, grade, repave, resurface or regrade
Chapter 3.44 Page 15 of 16
City of Huntington Beach Municipal Code Cha p
9/15/10
Ordinance No. 3974
as required, pursuant to any provision of the franchise, the City or other public entity may cause
the work to be done and shall keep an itemized account of the entire cost thereof, and the grant
shall hold harmless the City, its officers and employees from any liability which may arise or be
claimed to arise from the moving, cutting, or alteration of any of the grantee's facilities, or the
turning on or off of water, oil, or other liquid, gas, or electricity. (2319-10/78,3889-9/10)
City of Huntington Beach Municipal Code Chapter 3.44 Page 16 of 16
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Ordinance No. 3974
OXY USA Inc. 301 East Ocean Blvd, Suite 300
OX Y LA Basin Asset Long Beach, CA 90802
N%bool/ A subsidiary of Occidental Petroleum Corporation
April 9,2013
Writer's Direct Line:
562.495.9345 (direct)
Huntington Beach Cit}� Clerk
2000 Main Street
Huntington Beach, CA 92648
Re: Pipeline Franchise Agreement
Ordinance#3974
Huntington Beach Field, CA
To Whom It May Concern:
Pursuant to Section 21 of the attached Franchise Agreement between the City of Huntington Beach
(Grantor) and Oxy USA Inc. (Grantee), Oxy USA Inc. hereby accepts the franchise and will abide
by the terms and conditions of the same.
jRespe tfully,
mes K. Easresident
OXY USA Inc. - LA Basin Asset --
Ord. No. 3974
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN, 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 March 18, 2013, and was again read to said City Council at a
Regular meeting thereof held on April 1,2013, and was passed and adopted by the
affirmative vote of at least a majority of all the members of said City Council.
AYES: Sullivan, Hardy, Harper, Boardman, Shaw, Katapodis
NOES: None
ABSENT: Carchio
ABSTAIN: None
I,Joan L.Flynn,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 Huntington Beach Fountain Valley
Independent on April 11,2013.
In accordance with the City Charter of said City
Joan L. Flynn,Qi1y Clerk CiV Clerk and ex-officio Verk
Vi' f/� ,1"k, N' Senior Deputy City Clerk of the City Council of the City
of Huntington Beach, California