HomeMy WebLinkAboutCity Council - 1823 RESOLUTION No. 1823
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH DECLARING ITS
INTENTION TO GRANT A FRANCHISE TO RICHFIELD
OIL CORPORATION, A DELAWARE CORPORATION,
TO CONSTRUCT, MAINTAIN, OPERATE, RENEW,
REPAIR, CHANGE THE SIZE OF AND REMOVE OR
ABANDON IN PLACE A SYSTEM OF PIPELINES, IN,
UNDER, OVER, ALONG OR ACROSS CERTAIN PUBLIC
WAYS OF THE CITY OF HUNTINGTON' BEACH FOR
THE PURPOSE OF TRANSPORTING HYDROCARBON
SUBSTANCES IN THE CITY OF HUNTINGTON BEACH.
WHEREAS, Richfield Oil Corporation, a Delaware corpora-
tion, under Franchise Ordinances No. 199 and 218`from the
County of Orange, is maintaining a system of pipelines in
certain areas now incorporated in the City of Huntington
Beach, which ordinances expired December 27th, 1962 and
July 25, 1963, respectively; and
WHEREAS, Richfield Oil Corporation desires to renew
said franchises to construct, maintain, operate, renew, re-
pair, change the size of and remove or abandon in place a
system of pipelines, in, under, over, along or across certain
public ways of the City of Huntington Beach for the purpose
of transporting hydrocarbon substances in the City of Hunting-
ton Beach and has so requested in writing; and
WHEREAS, the City Charter requires a Resolution of In-
tention to grant said franchise;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUNTING-
TON BEACH DOES RESOLVE AS FOLLOWS:
1.
Res. No. 1823
s
Section 1. That it is the intention of said City Counc-
il to grant said Richfield Oil Corporation the renewal of
said franchises for the period of twenty five years (25) upon
the following terms, provisions and conditions :
ARTICLE I.
NATURE OF FRANCHISE
There is hereby granted to the Richfield Oil Corpora-
tion, a Delaware corporation, hereinafter referred to as
"Grantee" for a term of twenty five (25) years , from and af-
ter the effective date of this ordinance, subject, however,
to all the limitations and restrictions herein contained, and
as set forth in Article XIV of the City Charter, the right,
privilege and franchise,from time to time, to construct, main-
tain, operate, renew, repair, change the size of and remove
or abandon in place a system of pipelines for the purpose of
transporting gas, oil, petroleum, gasoline, water and other
liquid hydrocarbon substances in, under, over, along or across
certain streets, highways, alleys and other public ways in the
City of Huntington Beach.
ARTICLE II
STREETS PERMITTED TO BE USED
This franchise is granted along the following routes :
All streets,highways ,alleys and public ways
north of the centerline of Clay Street in
its westerly prolongation to the west city
limits - and east to the centerline of
Beach Boulevard.
2.
Res. No. 1823
ARTICLE III
APPURTENANCES
The Grantee shall have the right to construct and
maintain such traps, manholes, conduits, values, appliances,
attachments and appurtenances as may be necessary or con-
venient for the proper maintenance and operation of the
pipelines under said franchise. Said appurtenances shall
not interfere with the use of the streets and shall be kept
flush with the surface of the street and be so located as
to conform to any order of the City Engineer of the City of
Huntington Beach. The Grantee shall have the right, subject
to such ordinances as are now or may hereafter be in force,
to make all necessary excavations in said highways, for the
construction and repair of said pipelines and appurtenances.
ARTICLE IV.
CONSTRUCTION OF PIPELINES
OR APPURTENANCES
The pipelines or appurtenances constructed and main-
tained under the provisions of this franchise shall be con-
structed and maintained in a good, workmanlike manner and
in conformity with all ordinances, rules or regulations now
or hereafter adopted or prescribed by the City Council. All
pipes laid under said franchise shall be first class mater-
ial, and no pipe laid under this franchise shall exceed
sixteen (16) inches in internal diameter. The work of con-
3•
Res. No. 1823
structing, maintaining, or repairing all pipes, pipelines
and 'appurtenances shall be conducted with the least possible
hindrance to the use of the streets for purposes of travel,
and as soon as such work is completed, all portions of the
streets which have been excavated or otherwise damaged there-
by shall be placed in as good condition as they were before
the commencement of such work and to the satisfaction of the
City Engineer.
ARTICLE V.
MAPS AND DATA TO BE FURNISHED
The grantee shall file with the City Engineer within
three (3) months from the effective date of this ordinance,
and every six (6) months thereafter for the life of the fran-
chise, a statement describing in detail the total length of
any pipelines constructed, removed or abandoned under the
franchise, during the preceding three or six months period,
together with a map or maps accurately showing the location
of any such pipelines so constructed, removed or abandoned. If
cathodic protection is to be used for facilities installed or
maintained pursuant to this franchise, a description of the
protective devices shall be filed with the City Engineer
which shall show the location and type of annodes, including
a description of methods to be used as a protection against
corrosion and ectrolytic leakage.
4-.
Res. No. 1823
ARTICLE VI
COMPENSATION TO THE CITY
As and for consideration for the franchise hereby
granted, Grantee shall pay to the City in lawful money of the
United States annually, on a calendar year basis, within
ninety (90) days after the end of each calendar year, a fee
to be computed on the following basis:
One half (1/2) cent per inch of internal di-
ameter per lineal foot per year for each
pipeline installed and maintained in the
public streets or ways; provided, however,
that such payment shall in no event be less
than a sum annually which shall be equiva-
lent to two percent (2%) of the gross annual
receipts of Grantee arising from the use,
operation, or possession of this franchise.
The Grantee shall file with the City Clerk within
ninety (90) days after the expiration of the calendar year,
or fractional calendar year following the date of the grant
of this franchise, a duly verified statement showing in detail
the total gross receipts of the grantee, during the preceding
calendar year, or such fractional year, arising from the use,
operation or possession of this franchise.
ARTICLE VII
REARRANGEMENT OF FACILITIES
The City of Huntington Beach reserves the right to
construct sanitary sewer or storm drain lines or to change
the grade or line of any street, alley or way, in which pipe-
. ,�.
Res. No. 1823
lines are constructed, maintained or operated under this
franchise and upon receiving written notice from the City
Council of its intention to do so, the Grantee shall promptly
and at its own cost and expense , change the location of such
facilities and appurtenances necessary to conform to such
change of grade or line, or sewer or 'storm drain construction
and the damage caused to any public improvement by the Grant-
ee in exercising any duty under this section shall be properly
repaired by the Grantee at its sole cost and expense. In case
the Grantee shall fail to commence work in compliance with
such written notice within thirty (30) days after service of
same upon the Grantee, (unless the Grantee shall be unable to
comply with such notice by reason of strikes, riots, acts of
God, or acts of public enemies) , the City Engineer may cause
the work required in said notice to be done by the City, or
at the election of the City, by a private contractor. The
Grantee agrees to pay the costs thereof within ten (10) days
after delivery of an itemized bill therefor to it, or its
local agent, or manager. The cost of doing said work shall
be considered the actual cost, plus fifteen percent (15%)
thereof for overhead. If the Grantee is dissatisfied with
any determination of the City Engineer permitted by this sec-
tion, it may petition the City Council to review the same
within ten (10) days after such determination. During the
pendency of such petition, the work required to be done shall
be suspended. The decision of the City Council thereon shall
be final and conclusive.
6 .
Res. No. 1823
ARTICLE VIII
BREAKS OR LEAKS
If any portion of any street shall be damaged by
reason of breaks or leaks in any pipe or conduit constructed
under this franchise, the Grantee shall, at its own expense,
immediately following written notice or oral notification
thereof, repair any such leaks or damage and put such street
in as good condition as it was before such break or leak to
the satisfaction of the City Engineer.
ARTICLE IX
EMERGENCY EQUIPMENT AND
CREWS
At all times during the term of this franchise, the
Grantee shall maintain on a twenty four (24) hour a day bas-
is, adequate emergency equipment and a properly trained emer-
gency crew within a radius of thirty miles from any facilities
installed or maintained pursuant thereto for the purpose of
shutting off the pressure and the flow of the contents of
such facilities in the event of an emergency resulting from
an earthquake, act of war, civil disturbance, flood or other
cause.
ARTICLE X
REMOVAL OR ABANDONMENT OF FACILITIES
At the time of expiration, revocation, or termination
of this franchise or of the permanent discontinuance of the
7-
Res. No. 1823
use of its facilities , or any portion thereof, the Grantee
shall, within thirty (30) days thereafter, make a written
application to the City Engineer 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 aban-
doned or removed by reference to the map or maps required by
Article V of this ordinance and shall also describe with
reasonable accuracy the relative physical condition of such
facilities. Thereupon, the City Engineer shall determine
whether any abandonment or renewal which is thereby proposed
may be effected without detriment to the public interest or
under what conditions such proposed abandonment or removal
may be safety effected and shall then notify the Grantee
according to such requirements as shall be specified in the
City Engineer's order, and within ninety (90) days thereafter,
to either:
(a) Remove all, or a portion of such facilities; or
(b) Abandon in place all, or a portion of such facil-
sties.
If any facilities to be abandoned in place subject to
prescribed conditions shall not be abandoned in accordance
with all such conditions, then the City Engineer may make
additional appropriate orders, including, if he deems desirable,
8.
Res. No. 1823
an order that the Grantee shall remove all such facilities
in accordance with applicable requirements. In the event
the Grantee shall fail to remove any facilities which it is
obligated to remove in accordance with such applicable require-
ments within such time as may be prescribed by the City En-
gineer, then the City may remove such facilities at the Grant-
ee's expense and the Grantee shall pay to the City the actual
cost thereof to the City plus fifteen percent (15%) for over-
head. The decision of the City Council shall be final and
conclusive.
ARTICLE XI
COMPLETION OF WORK
Whenever the Grantee fails to complete any work re-
quired of the Grantee by the terms of this franchise within
the time limits required hereby, the City may cause such work
to be completed by the City or, at the election of the City,
by a private contractor. The Grantee agrees to pay to the
City within ten (10) days after delivery of an itemized bill
covering the cost of performing such work, an amount equal to
fifteen percent (15%) thereof for overhead. If the Grantee
is dissatisfied with the determination of said amount, it may
petition the City Council to review the same within ten (10)
days after such determination. The decision of the City
Council shall be final and conclusive.
9•
Res. No. 1823
ARTICLE XII
BOND
The franchise is granted on the condition that the
Grantee has now and shall at all times during the life of
this franchise keep on file with the City a bond running to
the City in the sum of One Thousand Dollars ($1000.00) execu-
ted by a reputable surety company entitled to do business in
the State of California. The said bond shall contain the con-
ditions that the Grantee shall well and truly observe, ful-
fill and perform each and every term and condition of this
franchise, and that in case of any breach of condition of said
bond the whole amount of the sum therein named shall be taken
and deemed to be liquidated damages and shall be recoverable
from the principal and from the sureties upon said bond. The
provisions of this Article XII shall not exempt the Grantee
from compliance with any of the laws of the City in force dur-
ing the term hereof which require the Grantee to post a bond
other than the bond required by this Article.
ARRTICLE XIII
INSURANCE
The Grantee, if it has not already done so, shall pro-
cure and keep in effect throughout the term of this franchise
a policy or policies of liability insurance from an insurance
company authorized to do business in California, in an amount
10.
Res. No. 1823
not less than $100,000 for any person and $300,000 for any ac-
cideht and $25,000 for property damage. Said policy or policies
shall name the City, its agents and employees as persons CO-
insured with the Grantee. A certified copy thereof shall be
filed in the office of the City Clerk of the City of Hunting-
ton Beach at the request of the City Clerk.
ARTICLE XIV
IND17, 1NIFICATION BY GRANTEE
The Grantee, by the a.ceptance or use of the franchise
hereby granted, agrees to keep and save free and harmless the
City, Its officers, agents, and/or employees against any and
all claims , demands, or causes of action which may be asserted
prosecuted or established against them, or any of them, for
damage to persons , or property, of whatsoever nature, arising
out of the use by it of the City streets hereunder or arising
out of any of the operations or activities of the Grantee pur-
suant to this franchise, whether such damage shall be caused
by, negligence or otherwise, excepting therefrom, however, any
claim, demand or cause of action, which may be asserted, prose-
cuted or established against the City under the provision of
the Workmens' Compensation Act for injury to, or the death of
any City officers, agents, or employees while acting within
the scope of their employment.
Res. No, 1823
ARTICLE XV
ASSIGNMENT
The Grantee shall not sell, lease, or assign this
franchise or the rights or privileges granted hereby, or
any of them, without the consent of the CITY Council nor shall
this franchise be sold, leased, or assigned except by a duly
executed instrument in writing filed in the office of the
City Clerk; and nothing in this franchise contained shall be
construed to grant to the Grantee any right to sell, lease,
or assign this franchise, or any of the rights or privileges
hereby granted, except in the manner aforesaid.
ARTICLE XVI
DEFAULT
A. Non-Curable Default. In' the event that the Grant-
ee shall default in the performance of any of the terms, cov-
enants or conditions herein and such default is not curable,
the City may declare this franchise forfeited. Upon giving
written notice thereof to the Grantee, this franchise shall
be void and the rights of Grantee hereunder shall cease and
the Grantee shall execute an instrument of surrender and de-
liver the same to the City.
B. Curable Default. In the event that the Grantee
shall default in the performance of any of the terms, coven-
ants and conditions herein and such default is curable, the
City may give written notice to the Grantee of such default.
12.
Res. No. 1823
In the event that the Grantee does not commence the work
necessary to cure such default within thirty (30) days after
such notice is sent or prosecute such work diligently to
completion, the City may declare this franchise forfeited.
Upon giving written notice thereof to the Grantee, this Fran-
chise shall be void and the rights of the Grantee hereunder
shall cease and the Grantee shall execute an instrument of
surrender and deliver the same to the City.
C. Cumulative Remedies. No provision herein made
for the purpose of securing the enforcement of the terms and
conditions of this franchise shall be deemed an exclusive
remedy, or to afford the exclusive procedure, for the enforce-
ment of said terms and conditions, but the remedies and pro-
cedure herein provided, in addition to those provided by law,
shall be deemed to be cumulative.
ARTICLE XVII
SUPERSEDURE
This franchise shall be in lieu of any like franchise,
If any, heretofore granted by the City to the Grantee and
such other franchise, if any, shall be deemed to be and shall
be repealed as of the date upon which the grant of this fran-
chise is effective as to a Grantee under such other franchise,
and the rights, liabilities and obligations of such Grantee
under such other franchise shall thereupon cease and terminate.
13.
Res. No. 1823
Should the foregoing be applicable to the grant of this
any
franchise, the Grantee shall pay to the City/and all amounts
accrued up to the effective date of this franchise under
such other franchise so repealed as shown by statement of
such amounts in the form required by' such other franchise
filed not later than ninety (90) days after this ordinance
becomes effective. Payment of such amounts shall be made
with the filing of such statement.
ARTICLE XVIII
SCOPE OF RESERVATION
Nothing herein contained shall ever be construed
so as to exempt the Grantee from compliance with all ordi-
nances of the City now in effect or which may be hereafter
adopted which are not inconsistent with the terms of this
franchise. The enumeration herein of specific rights reserv-
ed shall not be construed as exclusive, or as limiting the
general reservation herein made or as limiting such rights
as the City may now or hereafter have in law.
ARTICLE XIX
NOTICE
Any notice required to be given under the terms of
this franchise, the manner of service of which is not spec-
ifically provided for, may be served as follows :
14.
Res. No. 1823
Upon the City, by serving the City Ad-
ministrator, or the City Clerk personally,
or by addressing a written notice to the
City Clerk of the City of Huntington Beach,
California, City Hall, P.J. Box 190,Hunting-
ton Beach, California, and depositing such
notice in the United States mail, postage
prepaid.
Upon the Grantee by addressing a written
notice to Grantee, addressed to Richfield
Oil Corporation, Wilshire at Mariposa, Los
Angeles, California (or such other address
as may from time to time be furnished in
writing by one party to the other and depos-
itinm said notice in the United States mail
postage prepaid).
When the service of any such notice is
made by mail the time of such notice shall
begin with and run from the date of the de-
posit of same in the United States Mail.
ARTICLE XX.
SUCCESSORS
The terms herein shall inure to the benefit of,
or shall bind, as the case may be, the successors and as-
signs of the parties hereto, subject, however, to the pro-
visions of Article IV.
ARTICLE XXI
RESTRICTION ON SERVICE
The Grantee shall not use any of the lines laid
pursuant to the provisions of this franchise for the pur-
pose of acting as a public utility.
15.
Res. No. 1823
ARTICLE XXII
ACCEPTANCE OF FRANCHISE
This franchise is granted and shall be held and enjoy-
ed only upon the terms and conditions herein contained and
the Grantee must, within thirty (30) days after the passage of
the ordinance granting said franchise, file with the City Clerk
of the City of Huntington Beach a written acceptance of such
terms and conditions.
ARTICLE XXIII
FRANCHISE TO 13E STRICTLY CONSTRUED
AGAINST GRANTEE
This franchise is granted upon each and every condit-
ion herein contained and shall be strictly construed. against
Grantee. Nothing shall pass hereby unless it be granted in
plain and unambiguous terms. Each of said conditions is a ma-
terial and essential condition to the granting of this fran-
chise.
Section 2, BE IT FURTHER RESOLVED that the City Clerk
of the City of Huntington Beach be and is hereby authorized
and directed to advertise the fact that said application for
said franchise has been made to said City Council together
with a statement that it is proposed to grant said franchise
upon terms, provisions and conditions, set forth in this resolu-
tion, by publishing this resolution in the Huntington BEACH
16.
Res. No. 1823
News, a newspaper of general circulation published and cir-
culated in the City of Huntington Beach; that said resolu-
tion be published once within fifteen (15) days of the pass-
age of said resolution and at least ten (10) days prior to
the date of hearing of any persons having any interest in
the franchise or any objection to the granting thereof.
Section 3, IT IS FURTHER ORDERED, STATED AND DECLAR-
ED that the hour of 7 :30 P.M- , or as soon thereafter as poss-
ible, on the 19th day of August, 1963, be and the same is
hereby fixed as the hour and the day for the meeting of the
City Council in the Council Chamber of the City Hall of said
City, at which any persons having any interest in the fran-
chise or any objection to the granting thereof may appear
before the City Council and be heard thereon.
PASSED AND ADOPTED by the City Council of the City
of Huntington Beach, California, this 5th day of August,1963*
_z
Mayor
ATTEST:
city Cork
17.
Ties. No 1823
STATE OF CALIFORNIA )
County of Orange ) ss
City of Huntington Beach )
I, FAUL C. JONES, the duly elected, qualified and acting
City Clerk of the City of Huntington Beach, and ex-officto
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 five; that the foregoing resolu-
tion was passed and adopted by the affirmative vote of more
than a majority of all the members of said City Council at a
regular meeting thereof held on the 5th day of August ,
1963.
AYES: Councilmen:
Wells , Gisler, Stewart, Welch, Lambert
NOES: Councilmen:
None
ABSENT: Councilmen:
None
City Clerk and e f icio Clerk of the City
Council of the City of Huntington Beach,
California