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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