HomeMy WebLinkAboutOrdinance #4070 ORDINANCE NO. 4 0 7 0
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH GRANTING TO
CHEVRON USA, INC , A PENNSYLVANIA CORPORATION, A FRANCHISE TO LAY,
CONSTRUCT, MAINTAIN, OPERATE,RENEW, REPAIR, ALTER, REMOVE OR
ABANDON IN PLACE ONE OR MORE EXISTING PIPES AND PIPELINES FOR THE
COLLECTION, TRANSPORTATION OR DISTRIBUTION OF HYDROCARBON
SUBSTANCES IN THE CITY OF HUNTINGTON BEACH
WHEREAS, Huntington Beach Charter section 615 provides that franchises shall be
granted by adoption of an ordinance, and
Chevron USA, Inc , a Pennsylvania corporation, has requested a franchise to lay,
construct, maintain, operate, renew, repair, alter, remove or abandon in place one or more
existing pipes and pipelines for the collection, transportation or distribution of hydrocarbon
substances in the city, and
The City of Huntington Beach has entered into a franchise agreement with Chevron USA,
Inc.,
NOW, THEREFORE, the City Council of the City of Huntington Beach does ordain as
follows
SECTION 1 The franchise sought by Chevron USA, Inc , a Pennsylvania corporation, is
hereby granted subject to the terms and conditions set forth in the Franchise Agreement, a copy
of which is attached hereto, marked Exhibit A, and by this reference made a part hereof as
though set out in full 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.
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Ordinance No . 4070
SECTION 3 This ordinance shall become effective thirty days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 5 t h day of October , 2015
May
ATTEST APPROVED O
e
ty Clerk v City Attorney 1<
REVIEW APPROVED NITIATED AND APPROVED:
y nager Deputy Di for of Business
Develop t
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FRANCHISE AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
CHEVRON U.S.A. INC. PURSUANT TO CITY'S
PIPELINE FRANCHISE ORDINANCE
THIS FRANCHISE AGREEMENT (this "Franchise") is made and entered into this day
of November 04 , , 2015 by and between the CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of California (hereinafter referred to as "City" or "Grantor"),
and CHEVRON U.S A. INC., a Pennsylvania corporation (hereinafter referred to as
"CHEVRON" or"Grantee"), pursuant to the City's "Pipeline Franchise Ordinance" as set forth in
Chapter 3 44 of the Huntington Beach Municipal Code(Section 3.44.010, et seq.).
RECITALS
1. WHEREAS, CHEVRON 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 CHEVRON agree as follows:
SECTION 1. DEFINITIONS
Whenever in this Agreement the words or phrases hereinafter in this section defined are
used, they shall have the respective meaning assigned to them in the following definitions
(unless, in the given instance, the context wherein they are used shall clearly import a different
meaning).
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(a) The word "grantee" shall mean CHEVRON and its lawful successors or assigns;
(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,water, gas, gasoline,
petroleum, wet gas, or other hydrocarbon substances 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
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(h) The phrase ,gross annual receipts„ receipts received shall mean gross operating P
by Grantee from the sale of oil to Grantee's customers less uncollectible amounts and less any
refunds or rebates made by Grantee to such customers pursuant to California Public Utilities
Commission orders or decisions.
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 623, of the Public
Utilities Code of the State of California, and Huntington Beach Municipal Code 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 purpo
ses, under, along, across
or upon the streets of the City. The City hereby grants to Grantee the right, privilege and
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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
Chapter 3 44 of the HBMC
SECTION 3. APPLICATION OF GRANT
This Franchise Agreement shall apply to that portion of the pipeline system within the
territorial limits of City in existence on the date this Agreement is approved by the City Council
depicted on the map attached hereto as Exhibit`B" and described as follows:
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A. Pipeline
A right of way in the County of Orange for a 6" pipeline, the
center line of which is described as follows:
Beginning at a point 3' West of the easterly side line of Bushard
Street and 1400' South of the center line of Banning Avenue in
Section 19, Township 6 South,Range 10 West, S.B.B &M.; thence
northerly along Bushard Street and parallel to the center line
thereof, a distance of 2.25 miles, more or less, to a point which is
6' North of the South side line of Quincy Street(also called Adams
Street); thence westerly along Quincy Street and parallel to the
center line thereof, a distance of 1.48 miles,more or less, to a point
which is 9.5' East of the city limits of Huntington Beach, thence
northwesterly to a point on the city limits of Huntington Beach
14.5' South of the center line of Quincy Street
B Pipeline 2
A right of way in the county of Orange for a 4" pipe line, the
center line of which is described as follows- Beginning at a point
17' East of the center line of Bushard Street and 12' North of the
southerly side line of Atlanta Avenue in Section 18, Township 6
South, Range 10 West, S.B.B.&M , thence westerly along Atlanta
Street and parallel to the center line thereof, a distance of 0.69
miles, more or less, to a point which is 1,000' West of the center
line of Cannery Avenue in Section 13, Township 6 South, Range
11 West, S.B.B.&M
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C. Pipeline 3
Rerouting (1 each) 2 inch gas line from 16t' Street alley between
Walnut and Pacific Coast Highway to Walnut, down Walnut to
17I Street alley; cap off 2 inch piping in Walnut alley between 16t`
Street and 17t' Street alley.
D Pipeline 4
Install a 6" natural gas pipeline on the West side of Goldenwest
Street approximately 35' Westerly and from 620' to 1320'
Southerly from the Northeast comer of Section 34,T5S,R11W.
E. Pipeline 5
Approximately 1630' of 3" pipe, 2192' of 4" pipe, 1105' of 5"
pipe and 3870' of 6" pipe beginning in Goldenwest Street
approximately 200' north of Garfield Avenue; thence south in
Goldenwest Street; thence east in Garfield Avenue to Crystal
Street; thence south in Crystal Street approximately 300', also,
easterly across Crystal Street beginning approximately 200' south
of Garfield Avenue, thence easterly across private lands
approximately 800'; also in Garfield Avenue between Main and
Huntington Streets.
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
Exhibit "A," and incorporated herein by this reference. All references in this Franchise
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Agreement to specific sections of the HBMC
are references to those sections as they now exist
and are reflected in said Exhibit "A." The words and phrases in this Franchise Agreement shall
have the identical meaning as provided in Chapter 3 44 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
and after January 1, 2014, and shall endure in full force and
Said franchise shall be from
effect until December 31, 2029, 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
urchasing or condemning such property, or until said franchise shall be forfeited for non-
e
compliance with its terms by the Grantee.
SECTION 6. COMPENSATION TO CITY
the City with respect to the rights and privileges
Grantee shall pay the following fees to
granted to Grantee hereunder:
hall pay the City the sum of Five Thousand Dollars
6.1 RacP Granting Fes• Grantee s
5 000.00 as a one-time base granting fee within thirty (30) days following the execution of
this Agreement.
ustments Abase annual fee shall be paid within (30)
6.2 Base Annual Fee and Adj
ar year during the term of the Franchise Agreement, as amended
days after the end of each calend
herem, as follows:
b
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Fee Fula
Pipeli—e Size (A) Fee ner linear
an Type Len foot
linear feet
6 inch- oil 19,705' $0.895 (A)X(B)
6 inch—oil 3,870' $0 895
6 inch—gas 700' $0.895 (A)X(B
5 inch—oil 1,105 $0._J (A X(B)
4 inch—oil 3,643' $0.590 (A �)
4 inch—oil 2,192'
3 inch—oil 1,630' $0.590 (A X(B)
2 inch— as 1,000
See HBMC Section 3.44.290 when calculating
Consumer annual
Price
adjustments to the Base Annual Fee using
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 C^^s+r„ct;On Charges Pursuant to HBMC Section 3.44.280, Grantee shall
a at the time of installation, relocation or replacement of any pipeline or other facility covered
PY
b the Franchise Agreement, a base construction charge established, and amended from time to
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time,by resolution of the City Council.
6.4 Payments to City. Payment is due thirty (30) days after the City's invoice date
or fraction thereof beyond the payment date shall
and a ten percent (10%) per month late penalty
50 ercent. In addition, an eighteen
be charged, but in no event shall said penalty exceed fifty ( ) P
18%) annual interest cost will be charged for any delinquent payment. The City will
Percent (
also withhold any permits and/or 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.
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HBMC Section 3 44.290 shall govern
when calculating annual adjustrnents 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
er at all times during the term of the Franchise Agreement keep on file with the City
thereaft
orate surety bond approved by the City Attorney running to the City in the penal'
Treasurer a co rP
sum of One Hundred Thousand Dollars ($100,000) In the event that said bond, after it has been
d shall at any time during the term of the Franchise Agreement become insufficient, inthe
so file ,
inion of the City Council, Grantee agrees to renew said bond within ten (10) days after
sole o p
en notice to do so from the City Treasurer. At such time, the bond shall be increased by a
writt
forth b the City Council,with a surety to be approved by the City Attorney, conditioned
rate set Y
that Gr
antee shall well and truly observe, fulfill and perform each condition of the Franchise
as amended, and that in case of any breach of condition of the bond the whole
Agreem en t,
of the enal sum shall be deemed to be liquidated damages and shall be recoverable from
amount P
al and sureties of the bond If said bond is not filed prior to the effective date of this
the princr p
the
Agreement, the approval of this Agreement may be denied and the ordinance granting
chise A eement repealed at any time prior to the filing of said bond and any money paid.
Fran �
SECTION 8. O 7-R FRANCHISES
This grant is made in lieu of all other oil utility franchises or leased easement agreements
from Gra
ntor owned by the Grantee, or by any successor of the Grantee to any rights under this
for transmitting and distributing oil, water, gas, gasoline, petroleum, wet gas, or other
franchise,
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hydrocarbon substances within the limits of the City, as said limits now or may hereafter exist,
the acce tance of the franchise hereby granted shall operate as an abandonment of all such
and P
till franchises, leases or easements from Grantor within the In-nits of this City, as such
oil u ty
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
( ) with all of the ordinances,rules and regulations
maintained in accordance with and in
her
etofore, or hereafter adopted by the legislative body of this City in the exercise of its police
powers and not in conflict with the paramount
authority of the State of California, and, as to state
hi hways, subject to the provisions of the general laws relating to the location and maintenance
g
of such facilities.
if any portion of any street shall be damaged by reason of defects in any of the
ro) reason of any other
pipes and appurtenances maintained or constructed under this grant, or by
ca
use 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
lama a and restore such portion of such damaged street to as good condition as existed
such g
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 mdemmfy, save, and hold harmless, City and any officers and
( ) ud ents, decrees, costs and expenditures
employees thereof against and from all damages, j gm
which City, or such officer or employee, may suffer, or which may be recovered from, or
nable a ainst City, or such officer or employee, for, or by reason of, or growing out of or
obtai g
from the exercising by Grantee of any or all of the rights or privileges granted hereby,
resultin g
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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
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 in
19t' Street in accordance with City's regulatory standards.
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 Fade, 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,
maintain, and use, or remove pipes and appurtenances thereto shall be subject at all times to the
ri ht of the City, in the exercise of its police power, to require the removal or relocation of said
g
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
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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
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
14-4093/109503 11
terminate the rights, privilege, and franchise granted in and by this Agreement, 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, elected or appointed officials, agents, volunteers and
employees (the "Additionally Insured Parties") 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.
(d) The policy shall specifically provide that any other insurance coverage which may
be applicable shall be deemed excess coverage and that the policy shall be primary and non-
contributory with any other valid and collectible insurance or self-insurance available to the
Additionally Insured Parties.
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NT LIABILITY INSURANCE
SECTION 14 ENVIRONMENTAL IMPAIRlV1E
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.
, such insurance shall be endorsed to provide an
(b) If written on a claims made form
ended re orting period of not less than two (2) years following termination or cancellation of
ext p
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.
who in the course and scope of their employment
(b Cover all employees of Grantee
conduct or do work involving operations under the Franchise Agreement.
c Provide for every benefit and payment presently or hereinafter conferred by
( ) cared employ ee, including
Division 4 of the Labor Code of the State of California upon an inJ p y
vocational rehabilitation and death benefits.
d Be noncancellable without thirty (30) days written notice thereof directed to the
City
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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 self-insurance coverage subject to the approval
of the City Attorney and Risk Manager, 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, mdemmfy 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
144093/109503 14
disturbance, act of the public enemy, war, blockade, public riot, lightning, fire, storm, flood,
explosion governmental action, governmental delay, restraint or inaction, the unavailability of
equipment or materials, or any other cause, whether similar or dissimilar to the types specifically
enumerated above, which is beyond the reasonable control of the parry 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
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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
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 the ordinance approving this Franchise
Agreement, 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.
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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.
CHEVRON U.S A. INC., a Pennsylvania CITY OF HUNTINGTON BEACH, a
corporation municipal corporation of the State of
Cahfornia
By
'-ALQ&
print name Mayo
ITS: (circle one)Chauman/Presiden President
� AND VCIerk
`ddr
-@
�,�7q;�
By. INITIATED AND APPROVED:
Ce f�;
print name r)L
ITS o(circle ne Secretary/Chief Financial
�——- Deputy erector of B ess Development
OfficerJAsst Secretary-)Treasurer
APPROVED O FORM:
rty Attorney �, {
�, ti
REV fiND APPROVED:
i Manager
Exhibits:
A HBMC Chapter 3.44
B Depiction of Pipeline System
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EXHIBIE
A: "
Page 1 of 17
Chapter 3 44 PIPELINE FRANCHISES `
II
Huntington Beach Charter and Codes Search Print No Frames
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MUNICIPAL CODE
Title 3 REVENUE AND FINANCE
Chapter 3.44 PIPELINE FRANCHISES
Note
* Note §§3 44 090,3 44 140 and 3 44 150 repealed by Ord 3889-9/10
Article I. General Provisions and Definitions
3.44.010 Short Title
and cited as"Pipeline Franchise Ordinance" (2319-10/78)
This chapter shall be known
3.44.020 General Provisions
Every franchise hereafter granted by the City to lay, construct,maintain,
operate, renew,,repal d stributanion ge the of oil,
size of,remove or abandon in place pipes and pipelines for the
eer with all
gas, gasoline,petroleum,wet gas,hydrocarbon substances, or° anthe op g anon f said p anho les,
valves, appurtenances and service connections necessary or convenient for
pipelines including conduits, cathodic protection devices�wires,ucables
along oand acother
ross any aned nances all streets within necessary or
convenient for the exercise of the franchisee's business, in,under,
the City of Huntington Beach except as otherwise provided in Bparticular
d e��� conditions of this chapter,m
hise agreement, shall be
granted upon and be subject to the rules,regulations,restrictions
addition to those rules,regulations,restrictions,terms and provisions set forth in the particular franchise
agreement (2319-10/78,3889-9/10)
3.44.025 Franchise Required When
person,firm or corporation to exercise any privilege or franchise to lay or maintain any
It is unlawful for any p water,heat,
pipes or conduits in or under any public street, or alley
oilheCity,
ty,foor the erection ro r or maintenance,
in or upon
steam, or other substance or to exercise any franchiseprivilege
any public street or alley in the City,of any telephone,telegraph, electric light or power poles,wires, or
or currnt,
system, or for the erection of any pole or wire for the purpose° s mittin firm og electrical corporation es e retitled toe do so
without first having procured a franchise to do so unless suchperson,
b direct and unlimited authority of the Constitution of the state or the Constitution of the laws of the United
Y
States (3850-1/10)
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 (2319-10/78)
3.44.040 Definitions
For the purpose of this chapter,the following terms,phrases,words and they derivations shall have the
meaning given herein
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Chapter 3 44 PIPELINE FRANCHISES
i
�
"Council" shall mean City Council of the City of Huntington Beach
"Code" shall mean the Huntington Beach Municipal Code City
Beach
"Department" shall mean the Public Works Department of the of Huntington h
"Director" shall mean the Public Works Director to the
Che City f franchise is granted, and any person to
"Franchisee" or"grantee" shall mean the person
whom it is lawfully assigned
"Facilities" or"appurtenances" shall mean all property owed station by
service connection wisee, in ith the
with the franchise, including but not limited to,pipelines,PUMP
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
date of the franchise
en the effective
"Franchise payment period" shall mean the time eriod ecember 31st of the sameec calendar year, and each calendar year
agreement granting the franchise and D
thereafter,during the life of the franchise
the effective date of the
"Franchise report period" in all cases shall mean the time
December 3 l t of that calendar year,
franchise agreement granting the franchise through and including
and each calendar year thereafter,during the life of the franchise a state freeway), street,road,
"Highway"or"street" shall mean any public highway, freeway(except
alle , lane or court or other public easement, and above and below the same,which now exists or which
Y
may hereafter exist in the City of Huntington Beach street for the
"Main" shall mean any pipeline or conduit laid in, alo b pprox or a
es tely parallel with any
collection,transmission or distribution of any hydrocarbon g highwayin the
"Major street" shall mean any street or portion there f designated as a major secondary
circulation element of the Huntington Beach
General"Minor street" shall mean all streets in the City other than those
edesignaralan lan ted
as"mayor"or"secondary
highways" in the circulation element of the Huntington Bea
"Person" shall mean any individual,person,firm,partnership or corporation
"Section" shall mean a section of the Huntington Beach Municipal Code,unless some other code or
statute is mentioned or place where
"Service connection" shall mean the wire,pipes, or conduits conneecttin o s wade available Table for use or
service or hydrocarbons supplied by the franchisee
hl hw y delivered,such
u h supply line or supply main on
delivery,with the supply line or supply
private property
" " is permissive (2319-10/78, 3889-9/10)
"Shall" is mandatory, may
3.44.050 Term
less the franchise agreement granting the franchise provides otherwise,the term of the franchise shall be 15
Un
years (2319-10/78, 3889-9/10)
3.44.060 Acceptance of Franchise Agreement
h grants the
The franchisee sha
ll enter into a written agreement with the City of Huntington Beach 0heac sfter the passage
franchise and sets forth the terms and provisions there in The franchisee shall,within Y
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Chapter 3 44 PIPELINE FRANCHISES
of the ordinance grantmg the franchise,
file with the City Clerk of the City of Huntington Beach a written
nditions of said ordinance The franchise 9/10)
acceptance is not filed within
be null and void if the written
acceptance of the terms and co the prescribed time (2319-10/ ,
3.44.070 Nonexclusive Franchise from anting identical or similar
The grantmg of the franchise shall not be construed to preventheyeem �ntamed shall ever be construed so as to
ity
franchise to any person other than the franchisee Nothing
exempt the franchisee from compliance with all ordinances,rules floe terms of the ofranch se (2319-10f the City now in eff g t or
which may be hereafter adopted which are not inconsistent with
3 889-9/10)
3.44.080 Ma s
n laid,removed or
Within 90 days following the date on which any facilities or ape unmans w thhthhe depave artment showing the
abandoned under the franchise,the franchisee shall file a map p
accurate"as built" location, depth, and size of the facilities or appurtenances so laid,removed or abandoned
(2319-10/78,3889-9/10)
3.44.100 Liability Insurance
The policy of liability insurance required by this chapter shall al issued urter indemnify forlll liability for
Ty and
its officers, agents, and employees as additional insureds Lansing further
m activities conducted pursuant to the
personal and bodily injury, death and damage to property
franchise by providing coverage thereof, including,but not limited to
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 lunit liability insurance in theO cted to the City of Huntington
C Be noncancellable without 30 days' written notice thereof di
Beach (2319-10/78, 3889-9/10)
3.44.105 Environmental impairment Liability
Ynsurance
icy as
The policy of environmental impairment liability msurance or other ter shall ensure liability for eental insurance nv onmental
approved at the sole discretion of the City as required by this chapter
impairment including cleanup cost endorsed for"sudden and accidnand fedecontamination
alrequirementsinor pollution
ll but in no event
p
coverage shall be in an amount and form to meet all applicable state
less than$5,000,000 00 per occurrence
A If written with an annual aggregate lunit,the policy lunrt should be three tunes the above-required
occurrence hmrted
B If written on a claims made form, such insurance sh ororsed to provide an cancellation of this franch se
reporting period of not less than two years following termination
(3889-9/10)
3.44.110 Workers'compensation Ynsurance
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44 PIPELINE FRANCHISES Page 4 of 17
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 to conduct or
B Cover all employees of franchi
erations in the course and scope of their employment
do work pursuant to the franchise op
f the
C
Provide for every benefit and payment presently or hereinafter vocational rehconferred by Dabihtationo Labor
and death
injured
of the State of California upon an �ured employee, including
benefits
otice thereof directed to the City of Huntington Beach
D Be noncancellable without 30 days' written n
(2319-10/78,3889-9/10)
3.44.120 Insurance—Filin
Clerk prior to commencement of any
franchise operations either certified
Franchisee shall file with the City to
o ies of said policies, or a certificate of self-insurance coverage subject
t oliciesaexe executed by the company Attorney
copies
and Risk Manager, or a certificate of insurance for each of the require information
issuing the policy, certifying that the policy is in force and providing the following
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
icy
G A description of all endorsements that form
aim of o etpol insured shall also agree to defend,
H In addition to the insurance requirements a e or expense by reason of
indemnify and hold harmless the City of mused by insured in the peron Beach against loss, �fo ante of the franchise as
any suits,claims,demands, and/or judgments
provided in Section 3 44 220
complied with the
Any
franchise operation shall not commence until franchisee has ded during ng any p nodrthat franchisee fails to
provisions of this section, and any such operation
27 8S 3889 9/10,4034-1/15)
uspenmaintain said policies in full force and effect319-10
3.44.130 Faithful Performance Bond franchisee shall file and
On or before the effective date of the franchise agreement granting the franchise,
thereafter at all times during the life of the franchise keep on file with u H City f1000 OOr00 In the event ther a corporate at said
they to the City in the pen
bond approved by the City Attorneyrunning
bond,after it has been so filed, shall at any time during the hev°s ad bond within 10 days ftercwri en notice
sole opinion of the City Council,the franchisee agrees to rein
the City Treasurer At such tune,the bond shall be increased b
y a rate set forth tY
to do so from franchisee shall well and truly observe on of the bond the
Council,
t3'
with a surety to be approved by the City Attorney,conditioned that the frchise and that in case of any breach of conditi
fulfill and perform each condition of
be deemed to be 1 qu dated damages and shall be recoverable from the
whole amount of the penal sum slim
al and sureties of the bond If said bond is not filed prior to the effective date of the ordnance granting
pnnci p
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I
be set aside and the ordinance granting the franchise repealed at
the franchise,the award of the franchise may aid in consideration for said award of franchise shall
any time prior to the filing of said bond and any
money puring the se a
, shall at any time
be dee
med forfeited In the event that said bond, after it has been
chisee agrees to rene bond,lsubject t he approval of he City
the franchise become ua ier written notice t do so from the director (2319-10/78, 3889-9/10)
Attorney,within 10
3.44.160 Forfeiture
is anted and shall be held and enjoined upon each and every
m o coca incorporated by reference inition contained in said
The franchise granted
franchise agreement,including such conditions contained herein as are ne lect,failure or refusal to
franchise agreement, and shall be strictly construed against the grantee Any g
of the terms and provisions of the franchise agreements th constitute0 days onotice mfwritmg of
comply with anyNance or
suspension or forfeiture of the franchise, shall give °�hthe no ced period,begin the worko compliance
y hold a
any default thereunder If the grantee does not, completion,the
after such begmnmg does not prosecute the work with f danili ed be heaord, and thereupon the Council may
hearing,at which the grantee shall have the right to appear
er
grantee is in
franchise
determine
whether such conditions are material and essential to re the franchise ded or forfeited Notice of said hearing shall
default with respect thereto and
f e may
mall not less than fiver e days before said hearing (2319-10/78)
be given to the grantee y
3.44.170 value of Franchise
franchise awarded to a public utility,by accepting the terms and conditions hereof,
the rates of the grantee,no greater
The grantee of any proceeding for the purpose of adjusting 2319-10/78)
stipulates and agrees that in any p aid therefor by the grantee
value shall be placed upon the franchise than the actual cash p
3.44.180 State Highwa s
ion thereof becomes a state highway, except for the right succeed to all rights reserved)to
If any street or port the state shall
payments in such other rights as by law remain with the City,
he City by the franchise (2319-10/78,3889-9/10)
3.44.190 Eminent Domain successor in
way
a im air or affect the right of the City or any
granted b the City shall m any y p contained in such a
No franchise gran y grantee b purchase or condemnation, and nothing the Crty's
authority to acquire he property of the gr y e eturty
franchise shall be construed to contract away,modify or abridge either
for a term
or in p
right of eminent domain in respect to any public utility
3.44.200 Publication Costs e shall pa a statement therefor, all advertising and
The grante e granting of the franchise, if necessary (2319-10/78,
udm e e cost 10 h f p blshmg h ays fter r�eceivin
publishing costs, incl g th
3 889-9/10)
3.44.210 Assignment
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Chapter 3 44 PIPELINE FRANCHISES
ise or any art thereof, or
The grantee shall not directly or indirectly sell,transfer,as rem ed facility subjr lease the ect to the franchise, except with
to operate any pipeline or
allow any other person or entity p
written approval of the Council which may be withheld at its sole a Council absolute coPY discr
the duly executed
the pp y filing with th
transfer, assignment, or lease shall be made oil by g
f the
instrument of such sale,transfer, assignment or lease and a written requestinstrument and such writtenorequest Council notfiled
such sale,transfer, assignment or lease f such duly executed effective
te of such sale,
ent
with the
Council before the expiration of 30 days after the effectiveb asub subject to forfeituresand theiCounc 1 or
lease,then,upon the expiration of said 30 days,the franchise shall be
of consent to such sale,transfer,
may,without notice,revoke the franchise As a condition to the grant
n the franchisee
assignment or lease the Council may impose such additional terms and oditions up
oest Such additional terms
upon the grantee or assignee,which the Council may deem to ben e public
herein contained shall be construed to grant
and conditions shall be expressed by Council resolution Nothing art thereof,except in the manner
to the grantee the right to sell,transfer, assign or lease the franchise,or any p a voluntary act of the
to an assignment,whether by operation of law,by orate antee or
aforesaid This section appliesY
antee or otherwise and includes a transfer of more than 50% of the voting stock , hether to a third party or
w
� general partner of a franchisee which is a partnership,
the change in identity of any g 2319-10/78,3889-9/10)
to any subsidiary,parent,or affiliated agency of franchisee
3.44.220 Hold Harmless and hold harmless the City
A The grantee shall be responsible to the City and shall defend, from the use, operation or
and its officers and employees from all damages or liability arising or maintained thereunder
maintenance of the facilities erected, constructed, laid, operated
g Franchi
see hereby agrees to protect,defend, indemnify and hold harml
agents, and volunteers from and against
na�lltclaiiriisedamages,l
or appointed officials, employees, y
expenses,judgments, demands defense costs, and consequential damage franchisee's employeety of any s losses,exp ,J from death or injury
or nature,however caused, including those resulting
rem
e to franchisee's property,arising directly or indirectly out of theas�obligations a omission of the franchisee,
damag b an negligent
undertaken by franchisee, caused n whole or in part Y Yof them or anyone for whose acts any
any subfranchisees, anyone directly or indirectly employed by any
a be liable,including but not limited to concurrent active
of them m ° of the City Franchisee shall passive negligence, except here
ymisconduct
caused by the active negligence, sole negligence, or willful
's fees incurred by the City in enforcing
co
nduct all defense at its sole cost and expense and the City e all approve selection of franchisee's
counsel The City shall be reimbursed for all costs an attorn y
claims and liability
is obli ation This indemnity shall apply to alln u on the regardless amount°ind mnificationc
this obligation
policies are applicable The policy limits do not act as a limit p
be provided by franchisee (2319-10/78,3889-9/10)
3.44.230 Standards
l be
erected,constructed,laid, operated or maintained under the provisions onform ng to all the ordinances,
erected,All facilities ere ,
erected,constructed,laid, operated or maintained in accordance with an
codes,rules and regulations now or hereafter adopted by or prescribed by the Council (2319-10/78)
3.44.231 Conflictin Improvements sewer structure, or other facility
If the City or any
other public entity to the ordinance,the grantee
constructs or maintains any storm dram,
or improvement under or across any facility of the grantee maintained pursuant
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I
ense to the City or other public entity such support as shall be reasonably required to
shall provide at no ex p
support,maintain and protect grantees facility (3889-9/10)
3.44.240 Defective Facilities
street shall be damaged by reason of defective ct°and1put such street iid or n as good condition
cted un-der the
If any portion of any p such defect p
franchise,the grantee shall, at its own expense,repair any the grantee,within 10 days after
as it was before such damage was mcurred,to
satisfaction
is repair such daxnageCity f shall fall to commence to comply
then the City
receipt of written notice from the City, instructing
such mstructions,or,thereafter, shall fail diligently to prosecut strsuuctIowork to
co stand expense of the
with out said in
immediately may do whatever work is necessary to carry grantee agrees to pay upon demand If
grantee,which cost and expense,by the acceptance of the franchise,the gr uiring the immediate u rate repair
such damage constitutes an immediate danger to the public health oanteeea Tee t pay the reasonable cost
thereof,the City without notice 7ay3889air such 9/10) damage and the gr b're
thereof upon demand (2319-10/ ,
3.44.250 Hazardous Substances for the
Prior to the issuance of any excavation permit for the construction or installation of any Pipeline
om the director
id
transmission of
flammable liquids or gases,written approval shall be obtaineodval ma be based onatheapproval
may be withheld at the sole and absolute discretion of the director Said aperty ee azeas through which the
determination that no undue fire hazard To make such d terini at on be created to life r consideration d anon shall be given to
proposed pipeline will be located
A Type of hydrocarbon to be transmitted
Dense area through which the pipeline will be
B Density of population or structural development in the
located
C Adequacy of water supplies for fire control purposes
D Extent of available public fire protection facilities
E Number and location of shutoff valves in line (2319-10/783 3889-9/10)
3.44.251 Dama a to Public Property
General)
public roe b grantee, in exercising directly or indirectly
Any damage done directly or indirectly to any p property rt y an du under or pursuant to the
any right,power,or privilege under this franchise,or in performing
at Its sole cost and expense to as good a
provisions of this section, shall be promptly repaired by grantee
r If the
condition
as it was before such damage was mcurred, and to the ucting it
ref it such dam ge, shall afail to
within 10 days after receipt of written notice from the City, instructing
ence to comply with such mstructions, or thereafter, shall fail to diligently
en ltructions and prosecute the cost and
comm to carry out
completion,the City Immediately may do work necessary
of the franchisee,which cost and expense,by the acceptance of the franchise,the franchisee agreestnte
expense danger to the public health or safety requiring
pay upon demand If such damage constitutes
notice n may merepa repair h damage and the franchisee shall pay all
immediate repair thereof,the City
costs incurred (3889-9/10)
Article II. Coin ensation
3.44.252 Public UtilityNot Transmittin Oil or Products Thereof
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Chapter 3.44 PIPELINE FRANCHISES
non-Public utility not transmitting oil or
Pay to the City in lawful money of the
The franchisee of any franchise awarded to a public utility or products thereof, as consideration for such franchise, shall annuarally during the life of the franchise for each
the franchise a franchise fee negotiated as part of the franchise
United States,within 30 days after the�d of each Galen y
and every year,including the year of granting operation or possession of the franchise
agreement(unless preempted b state law)arisingfrom the use,op
(3889-9/10)
3.44.253 Len th g payment due under any
Whenever the length of any wire,pipe or conduit is a factor m calculating any P such lengths
franchise granted by the City, all service connections shall be excluded in determining
(3889-9/10)
3.44.255 Public Utility Transmittin oil or Products Thereof oil or products thereof which has been
Commission to be a public utility, as consideration for such franchise, shall,
The franchisee of any
franchise awarded for a pipeline transmitting
determined by the Public Utilities the life of the franchise for each and every year,
within 30 days after the end of each calendar year and during
of granting the franchise, annually pay to the City me referenced fees increase pursuaned t to
including the year
fee in the following amounts as required by state law In the event es
state law,the fees referenced herem shall increase by the same
Base Rate Per Lineal Foot
Pipelines with an Internal Diameter of: 088
0-4 inches 132
6 inches 176
8 inches 220
10 niches 264
12 inches 308
14 inches 352
16 inches 396
18 niches 440
20 inches 484
22 inches 528
24 inches 572
26 inches 616
28 inches 660
30 inches
For pipelines with an intern
al diameter not listed above,the fees shall be in the same proportion to the fees of
a 12-mch-diameter pipe as the diameter of the unlisted pipe is to 12 inches
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Chapter 3 44 PIPELINE FRANCHISES
amount of the fee or charge provided for in this section shall be multiplied Cou Area for Consumer
rh of Price Index,
I,
The amo t5' i
All Urban Consumers(CPI-U)for the Los Angeles-Riverside-Orangeable, and divided by the
the month in which payment is due and pay Area for
September immediately preceding Angeles-Riverside-Orange County
Consumer Price Index,All Urban Consumers(CPI-U for the Los
June 30, 1989 (1982-84=100 0)) (3889-9/10)
3.44.156 Non-Public utility Franchises oil or oil products thereof,
The franchisee of any franchises awarded to other than ie public
otilr y transewal o or continuation of a previously
mitting
as further consideration for such franchise including
granted franc
hise, shall pay to the City in lawful money of the United States the following fees (3889-9/1
3.44.260 Basic Granting Fee renew, or continue previously anted
In the ev
ent of an initial grant of franchise or franchises which extend,ended from tune to t mel by resolution
franchises,a base granting fee shall be required as established, an
of the City Council (2319-10/78,2676-2/84)
3.44. 170 Base Annual Fee fter the end of each calendar year including the
A base annual fee shall be paid by franchisee within 30 days merit period as defined in this chapter, m the
year of granting the franchises, according to the franchisepayment
following amounts
Amount Per Lineal Foot
Pipelines with an Internal Diameter of: 590
0-41nches 895
6 inches 1 197
8 inches 1 485
10 inches 1 787
12 inches 2092
14 inches 2 377
16 inches 2 682
18 inches 2.984
20 inches 3 272
22 inches 3 574
24 inches 3 879
26 inches 4 164
28 inches 4 469
30 inches
applicable to pipelines with an internal diameter falling between incremental size
The base annual rate app p p ding the price corresponding to the lower size to a figure
categories shall pay a rate determined by
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IChapter 3 44 PIPELINE FRANCHISES Page 10 of 17
ultiplying he difference between the higher and lower price tunes the multiplier The I
computed by m g
d the lower size
multiplier will be determined by dividing the difference between In determining the umber of feet of pipeline upon
category by the difference between the two size categories covered by the franchise during
which the annual fee will be computed,the greatest number of feet of pipeline
dar year for which payment is due will be utilized The base annualee payment be paid no laterdate shall be barged,
than 30
the Galen y
days and a penalty at the rate of 10%per exceed 50%th or fraction thereof beyond
but in no event shall said penalty at time after the effective date of
The City reserves the right to adjust he base fees established 2 9 10/7852676 2 84,3889a9/10)any
er
the ordinance codified in this chapter
3.44.271 Pa ments to Ci
t is due 30 days aft the City,rty's invoice date and a 10%per month late penalty and 18% annual
Payment delm uent payment The City will also withhold any permits/not renew
interest cost will be charged for any q of Huntington
licenses f any payment is delinquent Payments should be 3 889-9/p)ailed to the City Treasurer,City
Beach,P O Box 711,Huntington Beach,CA 92648 0
3.44.280 Base Construction Charges se ent of
rep
The holder of the franchise shall pay at the time of installation,a relocation
, a base l or
acement of constructionchargge
pipe or pipeline,or any other facility covered by the franchisegr
shed and amended from time to tune,by resolution of the City Council (2319-10/78,2676-2/84)
estabh ,
3.44.290 Ad'ustments—Base Annual Fee every year,in
The amount of each base annual fee as specified in he above section shall be revised eve y
accordance with the following formula Angeles-Riverside-Orange
s Bureauu of Labor Statistics("Bureau"),
County
A The Consumer Price Index,All Urban Consumers(CPI-U)for Los
area(1982-84=100)as published by he United State be def-
shall be defined as he"index,"and such index as it stands° August re edmghhel fee payment date
"base index" and the index for he month of September immediately p
shall be defined as he"current index"
ual fee
hall increase or
B
If he current index differs from he base index,then the aase nd he base sindex,provided that,if he
by he percentage increase or decrease between the current index
fee
cur
rent index drops below the base index,no adjustment shall be made The
by th�ase des all be
multiplied by an adjustment factor determined by dividing e current
f he base index is 185 0 and the current index is 190 ,theunderannual franchise
l be
Forexample, provided,however,
hall
(1 e 190 5/185 0= 1 0297),times the base annual fee,p
factor be less than one,nor shall the annual franchise fee calculated using said factor,be
he multiplyingthe
less than he base annual fee If he Bureau shall revise the
and parties hereto shall accept e
method of revision for conversion recommended by the Bureau,
f he Bureau discontinues he preparation or publication), the CPI-U,All Urban Consumers for
f no transposition table prepared by
C I area(1982-84-100),an
he Los Angeles-Riverside-Orange County be reference to
he Bureau is available,hen the amount of each annual franchise
the City shall be fee he soljudge bof
such other price index as may be chosen by the City, an
abih of successive indices and its determination on his point shall be final and conclusive In
compar tY
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Chapter 3 44 PIPELINE FRANCHISES
l franchise fee adjustment by reference to such other price index be less than the
no event shall the annua
I
base annual fee as set forth herein to the City within 30
D Publication and Administrative Issuance Costs franchisee and der costs shall
m pay
cu ed by the City
days after receiving a statement therefor,all administrative
ed to the
processing the application for a franchise,including but nentaot mrtuahty A preparation
Resources es Code
statements or studies pursuant to the California Environmental or successor statute, and for any and all
Section 21000, et seq) and any sim lu federal statute,or any incurred in
advertising and publishing costs,including the cost of publishing the ordinance, if necessary,
connection with the granting of the franchise
E The base annual fee may also be amended from time to time by resolution of the City Council
(3889-9/10)
3,44.300 Proration of Pa ments
s chapter
In the
event of abandonment of facilities with the approval e,the City e event the grant tof a franchise provided,
or in the event of removal of such facilities by the franchtse or in
of less than one year,the annual franchise fee required under the
an initial franchise payment period ear in which such removal or abandonment or
aforementioned sections shall be prorated for the calendar y
ant 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
years
to the date of the most
A Franchisee shall keep and preserve for a period necessary
e fivessary to determine the tamount of such franchise
recent franchise fee determination all the records nece
fee
B At all reasonable tunes,the franchisee shall permit the City or its duly authorized representative o
examine all property of the franchisee erected, constructed, lard, a Brated or maintained antranscribepursuant to the
d to examine and any
franchise,together with any appurtenant property of the franchisee, the
and all books,accounts,papers,maps, and other records kept or maintained franchisee under its
r financial
anci condition
of the
control which concern the operations, affairs,transactions,property
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)
Article M. Construction
3.44.320 Construction Requirements
Pipelines and appurtenances shall be constructed and maintained in a good workmanlike
y City rule or nner i ion now, or
conformity with applicable law and the terms and conditions All
o and appurtenances will be installed in
as hereafter amended,adopted or prescribed by the City pipelines 2319-
accordance with the latest revision of the"American Standard Code of Pressure Piping ASA B31 4
10/78, 3889-9/10)
3.44.330 New Installation or Replacement
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Page 12 of 17
Chapter 3 44 PIPELINE FRANCHISES
New installations or replacements of pipelines and appurtenances and all other facilities necessary for the I
i elines and conduits shall be laid installations orreplacements hall be
maintained only
installation, operation,maintenance, and safety of P p All such instal
pursuant to applicable law and permit issued by the department
reviewed by the direc
tor as to the most desirable location n the streets of the City and his or her decision shall
be final and binding on the franchisee (2319-10/78,3889-9/10)
3.44.340 Permits ��Bch shall be in force at that
p, Where the provisions of any City ordnance,resolution or regulation,r other ermit, the franchisee shall
time,requirained
e the issuance of an excav oachme t work unde the fran ise until rt shall Safe ave obor welfare
not commence any excavation or encr public health, safety
such permit from the department except n cases of emergency affecting
life or property,in which case the franchisee hall apply for such permit not later
or the preservation of h P and
than the next business day facts the length
B The application of the franchisee for such main e in ended t be l show the installed, and such Other bfa thets n he
proposed location of the pipeline and/or app
nt may require.The franchisee shall pay any and all permit inspection fees require y
departure Y
department (2319-10/78,3889-9/10)
3.44.350 Work On and Restoration of Streets or removing all pipelines and
lain replacing,maintaining,repairing
over,under,along or across any street shall
The work of constructing,laying, p purposes of travel As soon as such
appurtenances authorized os bile hind rance to the u e the provisions Of this aof the street for ed hereby shall
be conducted with the leas p
laced or restored and placed n as good condition as
k is completed, all portions of the street which have been excavated or otherwise �a expense of
work aired,replaced promptly and m a workmanlike manner be rep
commencement of such work and shall be done to heof any City ord nance eresolution or r at the
before the cointhe City shall
theterms withyear prior to the proposed work, tY
the franchisee, and n accordance
been rehabilitated within conditions
sY p et as directed by the director
regulation.For streets that have o he entire lane widths of the stre
require the resurfacing, three or other treatment, f ears prior to the proposed work,the
air or replacement work
For those streets that have not been rhabth City eqthe
emen s All with restoration,rep accordance with all
restoration shall be n full compliance
repair,replacement
shall be done to the satisfaction of the ncectoe shall failor neglect to make such highway p e City may
applicable law In the event that the franchisee Franchisee agrees to pay to the City the
or restoration wo
rk, 10 days after notice therefor has been given franchisee by the director,h
eable shall be the direct cost of such work plus the current
repair,replace or restore said highway
lie amount so charge of franchisee 8 3889-9/10)
cost of performing such work 2319-10/7 ,
rate of overhead being charged by the City for reimbursable work
3.44.360 Failure to Com ly
Time l
the franchisee fails to complete the work within the tune 00 00 pepdayiasd in theliquidated
Permit,
A In the event that to he City not more than$
he City may require the franchisee to pay e permit
for each day construction extends beyond the tune specified in h p
damagesY work required by the terms and provisions of the
B Whenever the franchisee fats to complete any
he Citymay
d he permits issued hereunder,within he time limits
ex expense of he franchisee The franchisee
franchise,an p leted any and all such work at P
complete or cause to be comp
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Chapter 3 44 PIPELINE FRANCHISES Page 13 of 17
eable to franchisee shall
rg
agrees to pay to the City the cost of performing such work The amount so cab the City for
be the direct cost of such work plus the current rate of overhead being chargedY
reimbursable work (2319-10/78,3889-9/10)
3.44.370 Com letion statement
n of the construction of any pipelines or other facilities constructed pursuant to said
Upon the completlothe Permit or permits issued by
the construction of which
franchise,the franchisee shall submit a st etemee ine material, diameter of Pipeline,e11 laid and as-
the department,the total length of pipeline'
pipeline of pipeline or facilities actually
was authorized under such permit or permits, and the total length p P
built drawings (2319-10/78,3889-9/10)
3.44.371 Res onsibili
ty demnlficatlon set forth herein, franchisee shall be specifically
from all responsible
liability arising
In addition to any In agents, and employees,free and harmless
shall save the City,Its officers, person b reason of any excavation or obstruction being
from any damage or Injury suffered by any p Y
guarded during any work authorized pursuant to the franchise k the 8919/10�neglect of e
Improperly guar protect any phase of such
franchisee to properly perform,mamtain,or
3.44.380 Facilities
shall have the right to construct,maintain and repair such traps,manholes, conduits,valves'
The franchiseeor convenient for the proper maintenance and
appliances, attachments and other facilities as may be necessarywith the surface of
lines under said franchise, and said facilities shall be kt flush on or regulation of the
operation of the pipe applicable law Including any ordinance,
street and so located as to conform to
ent in re and thereto and shall not interfere with the use o e
City, or of any permit issued by the departm g
h ordinances, n
d regulations as
The franchisee shall have the right subject to sucn s in said street for the construction,
street for travel to make all necessary excavatlo
are now or may hereafter be in force,
provided,however,that the franchisee shall first o tain an
maintenance and repair of said facilities,p such work (2319-10/78,3889-9/10)
excavation permit from the department for doing any
3.44.386 Shorin
11 provide
at its sole cost such shoring or other support as shall be reasonably require to
The franchisee shall
p storm drain or sewer construction
and protect franchisee's facilities In connee n or by any successor agency (3889-9/10)
support,maintain, p facility constructed by
by the City or in connection with any
3.44.390 Ordinary Repair
all be privileged to excavate in the road or street for line the franchisee shall f s obtain an
The franir for the number of days
chisee shall P provided,however, 3889
shall
agreed upon by the franchisee and endepartment,
fo artm the do of any such work (2319-10/78,
excavation Permit from the department
3.44.391 Relocation of pipelines and Facilities e the width or to alter or change the
reserves the right to change the grade,to Chang
A The City g of the pipelines,facilities or
location of any street over which the franchise Is granted If any p P
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Chapter 3 44 PIPELINE FRANCHISES Page l4of17
I
ces heretofore or hereafter constructed, installed or maintained by the franchisee
which uant to
appurtenances on or across any street are located m a mane
the franchise on, along,under,over, In,up improvements,repair,
of ade,traffic needs, operation,maintenance, �p �
in any way with the changethe franchisee shall relocate
alteration or relocation of the street,
construction,reconstruction,widening, specified in such written
or temporarily any such facility at no expense to the Citye theday receipt of a written request
permanently
from the director to do so, and shall commence such won on o
request which date
shall be not less than 30 days from receipt of such written request Franchisee shall
thereafter diligently prosecute such work to completion
later be
are now or
B The City res
erves the right for itself, and all other public facilities
improvements lof any type or
established,to alter,relocate,and maintain subsurf c o other elstreets over which then franc s is
description in a governmental but not proprietarycapacity of such
ed If the City or any other public entity finds that the lOocattalntamrelocation
d a on e franchise,whether
grant
Improvements conflicts with the facilities laid,cons of the
or such other public entity were laid,the
such facilities were laid before or after the facilities of the Cory On or before the date
franchisee of such franchise shall at nodep nse to e tor,which date city shall be not less than 30 days after
or receipt
specified in a written request from the the location either penman Y location
of such notice and request to do so,commence work to change such work to completion
temporarily of all facilities so conflicting with such improvements ently Prosecutepermanent or temporary
temp Y
in said streets to be approved by the director and there g
(3889-9110)
3.44.400 Breaks or Leaks =jppe, nduit, or appurtenance
any portion of the street shall be damaged by reason of breaks or leaks in any pimmediately
If constructed or maintained under the franchise,the franchisee thereof shall, at its own expense,
re air any such damage and put such street in as good
following written or oral notification thereof, promptly ll o the satisfaction of the department The franchisee
or leak, 2319-10/78,
condition as it was m before such damageof an such work
shall obtain an excavation permit from the department for the doing Y
3889-9/10)
3.44.410 Emer ency Equipment
At all tunes during the te
rm of this franchise,the franchisee shall maintain or arrange for,on a 24-hour a day
5 miles from
enc equipment and a properly trained emergency crew
wtm off the pressure a radius of 2and the flow
basis adequate emergency q ursuant hereto for the purpose of shutting civil
any facilities installed or maintained p ncy resulting from an earthquake, act of war,
of contents of such facilities in the
event
use or naturemee whatsoever (2319-10/78)
disturbance,fire,flood, or any other
3.44.t20 Removal or Abandonment of Facilities
A At the expiration,
revocation or termination of this franchise or the permanent after ke written
discontinuance of the
the franchisee shall,within 30 days
use of all or a portion of its facilities, either (is to abandon all or a portion of such facilities in place,
application to the director for authority application shall describe the facilities desired to
or(2)to remove all or a portion of such facilities. Such The director shall determine
b reference to the map or maps required by ction 3 44 080 and shall also
be abandoned or removed Y condition of such facilities
describe with reasonable accuracy the physical ro osed may be effected without detriment to
whether any abandonment or removal which is thereby p p
be safel
the publi
c Interest and under what conditions such proposed abandonment or removal may Y
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Chapter 3.44 PIPELINE FRANCHISES Page 15 of 17
i
the franchisee of his or her determination The franchisee shall pay to the `
effected and shall then notify i
City
the cost of all tests required to determine the disposition of the application for abandonment
removal for a ermit from the
B Within 30 days after receipt of such notice,the franchisee shall apply p
shall pay
all fees and costs related thereto Such permit
department to abandon or remove the facility and
contain the conditions of abandonment or removal as may be prescribed by the director Any
is to upon the franchisee's compliance with the provisions set
abandonment shall be conditioned, in p
artforth in this chapter
franchisee shall,within 90 days after obtaining such permit,
e a commence hes for authorrity to abandon all or a
The fr the permit If the franchisee pp _ art of the
completion the work authorized by P lace of all or p
portion of its facilities m place,and the director determines h that
franchisee shall pay to the City a fee
facilities may be affected without detriment to the public
which shall be computed as follows
Amount per Lineal Foot
Pipelines with an Internal Diameter of $15 00
0-12 inches $22 00
14-18 inches $28 00
20-30 inches
(2319-10/78,3889-9/10)
3.44.430 Failure to Com AY
ed"in place" subject to prescribed conditions shall not be abandoned
A If any facilities to be abandon
accordance with all such conditions the director may make additional anchs franchisee hall coomply with such
an
in accord or all such facilities 'lh
order that the franchisee shall remove any
additional orders
1 with the terms and conditions of abandonmen
B In the event that the franchisee shall fail to comply be prescribed by the director,
or removal as may be required by this chapter and within such time as may
ranc
see
the City may
remove or cause to be removed such facilities at the franchisee ead being charged by the h se for
shall pay to the City the cost of such work plus the current rate o 0
reimbursable work
anent
C If,
at the expiration,revocation or termination of this franchise, in 30 days they after,fall o discontinuance refuse
of the use of all or a portion fof Its aboly es,the
o franchisee
authority,the director shall make the determination
to make written application
as to whether the facilities shall be abandoned in place or removed The director shall then notify e
franchisee of his or her determination The franchisee shall thereafter comply with the provisions o
fr
subsection B of Section 3 44 420 2319-10/78, 3889-9/10)
3.44,440 Abandonment"in Place"Conditions time after the effective date of
lace" shall be subject to the condition that if, at any public project,franchisee or
Facilities abandoned' p interfere with any p the City or to pay
the abandonment,the director determines that the facility May se when requested to do so by
Its successor in interest must remove 2319 ilia 8,3 8 at Its expense
x ense
the City for the cost of such removal
44&sho 10/6/2015
Page 16 of 17
Chapter 3 44 PIPELINE FRANCHISES
3,44.4,47 operation After Franchise Ex iration—
Revocable License I
s according to the franchise terms, and a new franchise has been
If a franchise is to expire within 60 day Council to issue the
requested,but has not yet been granted,the franchisee may request the Mayor and City
q public roe in the
n revocable license,for a renewable term not to exceed 0days from
P e expiration tyof e
franchisee a written its facilities
franchise,permitting the franchisee to continue to locate Council may issue such a revocable license, subject to
City during the term of the license The Mayor and City ) without limitation,that they deem to be in
any restrictions,terms,
and conditions(including compensation , ant such a revocable
the best interests of the City Nothing herein requires the Mayor and City Council toCity Council grant the
license,nor does the issuance of such a revocable hcenseetth require that l khshall provide yor a revocable license
franchisee a new franchise Upon request of the franch
application form (3850-1/10)
Article IV. S ecial Provisions for Petroleum pipelines
3.44.450 Ri hts Granted t during the life thereof to transport
have the
The franchisee granted a petroleum pipe hnthefranchise
c drocarbol substances hthrough the pipelines maintained
of the
oil, gas, gasoline,petroleum,wet gas and o Y
under the franchise If the franchisee or assignee later qualifies bee shall then have noirieght to continue to
and onsent of the Council, anted upon
State of California as a common earner,the franchisee or assignee
opera
te hereunder after the date of such qualification except with the
er or as superseded by statute Such
such additional terms andi ions conditions shall be expressed ed by r solution (2319-10/78,3889-9/10)
additional terms and con
3.44,460 Materials Used
as, gasoline,petroleum,wet gas and other
All pipelines used or to be d for first class assansportation of oil,and standard material as set forth by current American Petroleum
hydrocarbon substances shall
Institute pipeline specifications (2319-10/78)
3.44.470 A3provals
On all pipelines lad pursuant to the franchise,the director shall approve whereabons transmitted m the line, and
be placed in the line The availability of ad when making ate water such de errmmation Such flush-valve
the location of control valves shall be considered
connections shall be installed in the manner prescribed by the director (2319-10/78)
3.44.480 Re oils during the life of the franchise,within 60 days after the expiration of each franchise payment
The franchi
see
period, shall for the immediately
A File with the director two copies of a verif report
the internal diameter ofsuch Imes,the rate per
preceding franchise period,the length of lines
in foot per year and the total amount due the City permit obtained for
triplicate, showing the permit number of each p t ether with
g File with the director a report nthepiinm Y p
the installation of new mains during immediately receding franchise payment ang period,
franchise
the length and size of said mains On this report the franchisee shall show any
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Chapter 3 44 PIPELINE FRANCHISES Page 17 of 17
period segregating such footage as to new mains laid,old mains
footage since the last franchise payment pen �e g of mains in territory annexed or incorporated
removed, old mains abandoned in place,and the footage
since the last franchise payment period on Beach,P O Box 711,
C All payments should be mailed
led to the l Ot/yTreasure/10 Ty of Huntington
Huntington Beach,CA 92648-0711
3,44,490 payments Due
anted by the franchise,the semi-annual
Except for pipelines lawfully maintained other than by the authority 9date of
a ents shall accrue from the respective dates of installation,whether b ore on charges,or after the e f anfyeshall be the
PYin due
franchise agreement, and such payments,together with the mrti con
and payable semi-annually (2319-10/78, 3889-9/10)
3.44.500 Cost of Relocation
Franchisee shall bear the costs of removing and relocating its facilities
or width of any ned sderthis alley
franchise if made necessary by any lawful change of grade, alignment
or lace, or for any public project,even if franchisee's facilities areri 1c or empopanly its facilities located in,
P
grantee after reasonable notice, fails or refuses to relocate permanently grade,repave,resurface or
on,upon, along,under, over, across o�aboi any highway or to pave,n of the franchise,the City or other public entity may cause the
regrade as required,pursuant to any po
work to be done and shall keep an itemized account of the entire cost ere f,.an ay ariseor be the �am�edall hold from
harmless the City, its officers and employees from any liability
of the antee's facilities,or the turning on or off of water,oil, or
the moving, cutting, or alteration of any �'
other liquid, gas,or electricity (2319-10/78,3889-9/10)
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Ord. No. 4070
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 September 21,2015, and was again read to said City Council at
a Regular meeting thereof held on October 5,2015, and was passed and adopted by the
affirmative vote of at least a majority of all the members of said City Council
AYES: Posey, Katapodis, Hardy, Sullivan, Delgleize, Peterson
NOES: None
ABSENT: None
ABSTAIN: O'Connell
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 Wave on October 15,2015
Aar
In accordance with the City Charter of said City °
fy am
Joan L Flynn, CI , Clerk City Uterk and ex-officio Merk
Senior Deputy Cay Clerk of the City Council of the City
of Huntington Beach, California