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RESOLUTION No. 1897
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH DECLARING ITS
INTENTION TO GRANT A FRANCHISE TO UNION
OIL COMPANY OF CALIFORNIA, a CALIFORNIA
CORPORATION, COVERING CERTAIN FACILITIES
WITHIN CERTAIN OF THE PUBLIC WAYS OF THE
CITY OF HUNTINGTON BEACH.
WHEREAS, Union Oil Company of California, a California
corporation, has made application to ,the City Council of the
City of Huntington Beach for a franchise covering certain
facilities within certain of the public ways of the City of
Huntington Beach; and
WHEREAS, it is the intention of the City Council to
grant such a franchise; and
WHEREAS, the City Charter requires a Resolution of In-
tention prior to the granting of such a franchise;
NOW, THEREFORE, THE CITY COUNCIL OF THE- CITY OF HUNT-
INGTON BEACH DOES RESOLVE AS FOLLOWS:
Section 1. That it is the intention of said City
Council to grant to said Union Oil Company of California said
franchise for a period of twenty-five (25) years upon the
following terms, provisions, and conditions:
.ARTICLE I
NATURE OF FRANCHISE
There is .hereby granted to Union Oil Company of Calif-
ornia., a California 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,
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Res. No. 1897
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 cons-
truct, maintain, operate, renew, repair, change the size of
and remove or abandon in place, pipelines for the purpose of
transporting gas, oil, petroleum, gasoline, other liquid
hydrocarbon substances, water, waste water, mud, steam and
other substances, together with underground telephone and
telegraph and electrical power lines necessary or convenient
for the Grantee's business, in, under, over, along or across
certain streets, highways, alleys and other public ways in
the City of Huntington Beach as described in Article II A,
and within such other streets, highways, alleys and other
public ways in the City of Huntington Beach as may be auth-
orized by the City Council in accordance with the provisions
of Article II B.
ARTICLE II
STREETS PERMITTED TO BE USED
A. Specific Street Routes. This franchise is spe-
cifically granted along the following routes;
Algonquin Street, from its northerly terminus
at Heil Avenue, southerly to its southerly
terminus at the northwesterly line of Warner
Avenue; and Warner Avenue, from said southerly
terminus of Algonquin Street, southerly, south-
westerly and westerly to the westerly City
boundary line crossing Warner Avenue,
B. Authorization to Use Additional Streets.-
The City Council may grant to the Grantee author-
ization to use additional streets, highways,
alleys or other public ways for any of the pur-
poses covered by this franchise, upon application
by the Grantee to the City Council for such
authorization; provided that facilities constructed
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Res. No. 1897
pursuant to any such further authorization
by the City Council shall be subject to all
of the provisions of this franchise; and pro-
vided further that, before granting any such
further authorization, the City Council shall
pass a resolution declaring its intention to
grant the same, which resolution shall fix and
set forth the day, hour and place when and
where any persons having any interest therein
or any objection to the granting thereof may
appear before the City Council and be heard
thereon. The City Council shall direct the
City Clerk to publish said resolution at
least once, within fifteen days of the passage
thereof, in the official newspaper, which no-
tice shall be published at least ten days prior
to the date of hearing. At the time set for
the hearing, the City Council shall proceed to
hear and pass upon all proceedings and its
decision thereon shall be final and conclusive.
Thereafter, it may grant or deny the appli-
cation.
ARTICLE III
APPURTENANCES
The Grantee shall have the right to construct and
maintain such traps, manholes, conduits, valves, 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 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 ap-
purtenances and said underground telephone, telegraph and
electrical power lines.
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Res. No. 1897
ARTICLE IV
CONSTRUCTION OF PIPELINES OR APPURTENANCES
The facilities constructed and maintained under the
provisions of this franchise shall be constructed and main-
tained 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 facilities construct-
ed under said franchise shall be first class material, and no
pipe laid under this franchise shall exceed sixteen (16) inch-
es in internal diameter. The work of constructing, maintain-
ing, or repairing all facilities hereunder 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 thereby 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
Tqe 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 facilities constructed, removed or abandoned under the
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Res. No. 1897
franchise, during the preceding three or six months period,
together with a map or maps accurately showing the location
of any such facilities 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.
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 diam-
eter per lineal foot per year for each pipeline
and 25.00 per mile of underground conduit in-
stalled 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 equivalent 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,
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Res. No. 1897
or fractional calendar year following the date of the grant
of this franchise, a duly verified statement showing in de-
tail the total gross receipts of the grantee, during the pre-
ceding 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 facil-
ities 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 Grantee
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
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Res. No. 1897
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-
Lion, it may petition the City Council to review the same with-
in ten (10) days after such determination. During the pendency
of such petition, the work required to be done shall be sus-
pended. The decision of the City Council thereon shall be
final and conclusive.
ARTICLE VIII
BREAKS OR LEAKS
If any portion of any street shall be damaged by
reason of breaks or leaks in any facility constructed under
this franchise, the Grantee shall, at its own expense, immed-
iately 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 satisfact-
ion of the City Engineer.
ARTICLE IX
EMERGENCY EQUIPMENT AND CREWS
At all tines during the term of this franchise, the
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Res. No. 1897
Grantee shall maintain on a twenty four (24) hour a day basis
adequate emergency equipment and a properly trained emergency
crew within a radius of thirty miles from any facilities in-
stalled or maintained pursuant hereto 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
use of its facilities, or any portion thereof, the Grantee
shall, within thirty (30) days thereafter, make a written ap-
plication 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 abandon-
ed or removed by reference to the map or maps required by
Article V of this ordinance and shall also describe with reason-
able accuracy the relative physical condition of such facili-
ties. Thereupon the City Engineer shall determine whether any
abandonment or removal which is thereby proposed may be effect-
ed without detriment to the public interest or under what con-
ditions such proposed abandonment or removal may be safely
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Res. No, 1897
effected and shall then notify the Grantee according to such
requirements as shall be specified in the City Engineer's or-
der, 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
facilities.
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 addit-
ional appropriate orders, including, if he deems desirable, an
order that the Grantee shall remove all such facilities in ac-
cordance with applicable requirements. In the event the Grant-
ee shall fail to remove any facilities which it is obligated to
remove in accordance with such applicable requirements within
such time as may be prescribed by the City Engineer, then the
City may remove such facilities at the Grantee's expense and
the Grantee shall pay to the City the actual cost thereof plus
fifteen percent (15%) for overhead. 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
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Res. No. 1897
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 pe-
tition 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.
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) execut-
ed 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, fulfill
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 prin-
cipal 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 during the term hereof
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Res.No. 1897
which require the Grantee to post a bond other than the bond
required by this Article.
ARTICLE 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
not less than $100,000 for any person and $3009000 for any ac-
cident and $25,000 for property damage. Said policy or policies
shall name the City, its agents and employees as persons co-in-
sured with the Grantee. A certified copy thereof shall be ,filed
in the office of the City Clerk of the City of Huntington Beach
at the request of the City Clerk.
ARTICLE XIV
INDEMNIFICATION BY GRANTEE
The Grantee, by the acceptance 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-
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Res. No. 1897
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, pros-
ecuted or established against the City under the provision of
the Workmen's Compensation Act for injury to, or the death of
any City officers, agents, or employees while acting within
the scope of their employment.
ARTICLE XV
ASSIGNMENT
The Grantee shall not sell, lease, or assign this fran-
chise 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 execut-
ed 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
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
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Res. No. 1897
Grantee shall execute an instrument of surrender and deliver
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.
In the event that the Grantee does not commence the work nec-
essary to cure such default within thirty (30) days after
such notice is sent or prosecute such work diligently to com-
pletion, the City may declare this franchise forfeited. Upon
giving written notice thereof to the Grantee, this franchise
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.
Co Cumulative Remedies. No provisions 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 paid 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 X`TII
SUPERSEDURE
This franchise shall be in lieu of any like franchise
if any, heretofore granted by the City to the Grantee and
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Res. No 1897
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
is effective,
chise/ and the rights, liabilities and obligations of such
Grantee under such other franchise shall thereupon cease and
terminate. Should the foregoing be applicable to the grant
of this franchise, the Grantee shall pay to the City any 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 ordinanc-
be
es of the City now in effect or which may hereafter/adopted
which are not inconsistent with the terms of this franchise.
The enumeration herein of specific rights reserved shall not
be construed as exclusive, or as limiting the general reserva-
tion herein made or as limiting such rights as the City may
now or hereafter have in law.
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Res. No. 1897
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:
Upon the City, by serving the City Adminis-
trator, 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.O. Box 190, Huntington 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 Union Oil Compan of
California, P.O. Box 7600, Los Angeles 54,
California, or such other address as may from
time to time be furnished in writing by one party
to the other, and depositing 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 deposit 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 assigns
of the parties hereto, subject, however, to the provisions
of Article XV.
ARTICLE XXI
RESTRICTION ON` SERVICE
The Grantee shall not use any of the lines laid pur-
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Res. No. 1897
suant to the provisions of this franchise for the purpose
of acting as a public utility.
ARTICLE XXII
ACCEPTANCE OF FRANCHISE
This franchise is granted and shall be held and en-
joyed only upon the terms and conditions herein contained
and the Grantee must, within thirty (30) days after the pass-
age of the ordinance granting said franchise, file with
the City Clerk of the City of Huntington Beach a written ac-
ceptance of such terms and conditions.
ARTICLE XXIII
FRANCHISE TO BE STRICTLY CONSTRUED
AGAINST GRANTEE
This franchise is granted upon each and every con-
dition 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 condit-
ions is a material and essential condition to the granting
of this franchise.
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Res. No. 1897
Section 2. BE IT FURTHER :RESOLVED that the City
Clerk of the City of Huntington Beach be and he is hereby
authorized and directed to advertise the fact that said ap-
plication 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 resolution, by publishing this resolution
in the Huntington Bea(gh News, a newspaper of general circula-
tion published and circulated in the City of Huntington
Beach; that said resolution be published once within fifteen
(15) days Of the passage 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 6th day of January, 1964, 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 time any persons having any interest in the
franchise or any objection to the granting thereof may appear
before the City Council and be heard thereon.
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Res. No. 1897
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach, California, this 16th day of December ,
1963.
Mayor
ATTEST:
Cit erk
APPROVED AS TO FORM:
JAMES D. PLUNK4TT, ity Attorney
6.
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George " `hibata
Asst.City Attorney
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» Res. No. 1897
STATE OF CALIFORNIA )
County of Orange ) ss
City of Huntington Beach )
I, PAUL C. JONES, the duly elected qualified and
acting 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 five; that the foregoing
resolution 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 16th day of
December 1963.
AYES: Councilmen:
Gisler, Stewart, Lambert
NOES: None
ABSENT: Councilmen:
Wells Welch
City Clerk and ex- icio Clerk of the City
Council of the Ci y of Huntington Beach,
California