HomeMy WebLinkAboutChevron USA, Inc. - 2015-09-21Chevron
Frank G. Soler RECEIVED
Assistant Secretary 2016 MAY —3 AM 1 1 : 07
CITY CLERK
CITY OF
H11NTIN6TG'E BF�AC
April 28, 2016
Via E-mail/Facsimile
Ordinance No.4070
City of Huntington Beach
Joan L. Flynn
City Clerk
City of Huntington Beach
200 Main Street
Huntington Beach, CA 92648
Dear Mrs. Flynn:
Chevron U.S.A. Inc. does hereby accept the terms and conditions of that certain Franchise
Agreement dated November 4, 2015 between the City of Huntington Beach and Chevron U.S.A.
Inc. pursuant to City's Pipeline Franchise Ordinance.
Sincerely,
cc: Micheal Green
Chevron U.S.A. Inc.
6001 Bollinger Canyon Road, CA 94583 T3192
Tel 925 842 2814 Fax 925 842 6047
Addressee's Name
Page 2
April 28, 2016
Dept ID ED 15-10 Page 1 of 2
Meeting Date 9/21/2015
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 9/21/2015
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A Wilson, City Manager
PREPARED BY: Ken Domer, Assistant City Manager
Kellee Fritzal, Deputy Director, Business Development
SUBJECT: Approve for introduction Ordinance No 4070 and authorize execution of a
Pipeline Franchise Agreement with Chevron U S A, Inc for the operation and
maintenance of a pipeline system for the transportation of oil, gas, and other
hydrocarbon substances
Statement of Issue
The City Council is asked to approve for introduction an ordinance and authorize the execution of a
Franchise Agreement between the City and Chevron USA, Inc for the operation and
maintenance of an existing pipeline system for the transportation of oil, gas, and other hydrocarbon
substances
Financial Impact
The City will receive an initial Base Grant Fee ($5,000) and Base Annual Fee ($27,372), to the
General Fund (Account Number 10000100 41230) The new Base Annual Fee ($27,372)
represents an approximately $19,890 increase over the prior Base Annual Fee ($7,483) and is
subject to additional annual adjustments according to the increase in the consumer price index
("CPI")
Recommended Action
A) Approve for introduction Ordinance No 4070, "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," and,
B) Approve and authorize the Mayor and City Clerk to execute the "Franchise Agreement Between
the City of Huntington Beach and Chevron U S A, Inc Pursuant to City's Pipeline Franchise
Ordinance "
Alternative Action(s)
Do not approve the Agreement and direct staff accordingly
Analysis
City Council is asked to approve a Franchise Agreement between the City and Chevron U S A, Inc
(Chevron) for the operation and maintenance of an existing pipeline system used for the
transportation of oil, gas, and other hydrocarbon substances The pipeline system consists of
approximately 24,275 linear feet of 6-inch diameter pipe, 1,105 linear feet of 5-inch diameter pipe,
HB -1121- Item 21. - I
Dept ID ED 15-10 Page 2 of 2
Meeting Date 9/21/2015
5,835 linear feet of 4-Inch diameter pipe, 1,630 linear feet of 3-Inch diameter pipe, and 1,000 linear
feet of 2-Inch diameter pipe
Standard Gas Company, Subsidiary of Chevron Corporation, the former pipeline owner, held the
last valid Franchise Agreement, which expired on January 1, 2014 The proposed Agreement
Incorporates the amendments made in 2010 to "Chapter 3 44 - Pipeline Franchises of the
Huntington Beach Municipal Code " Terms of the proposed Franchise Agreement Include
• Term 15 years
• Base Grant Fee $5,000
• Base Annual Fee 2014 fee estimated at $27,372
• Base Annual Fee Increase (each year) based on CPI
• Faithful Performance Bond, $100,000
• Liability, Environmental and Workers Compensation Insurance (self Insured - Including no
less than $5 million coverage for Liability and Environmental)
City Charter Section 615 states that the City Council shall by ordinance regulate the granting of
franchises for the City Accordingly, as part of the granting of this franchise agreement, the City
Council is asked to approve for first reading, and subsequently adopt, an ordinance amending the
original ordinance granting the oil pipeline franchise
Staff recommends approval of the Franchise Agreement The agreement provides substantial
General Fund revenue, and ensures continued maintenance and responsibility for a pipeline
network currently present within City right-of-way
Environmental Status
Exempt from CEQA pursuant to Section 15301
Strategic Plan Goal
Strengthen economic and financial sustainability
Attachment(s)
1 Ordinance No 4070 Amending Ordinance No 3012 which Granted an Oil Pipeline
Franchise
2 Franchise Agreement between the City of Huntington Beach and Chevron U S A, Inc
3 Franchise Bond (Faithful Performance Bond)
4 Proof of Insurance
Item 21. - 2 HB -1122-
ATTACHMENT #1
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
Inc.,
The City of Huntington Beach has entered into a franchise agreement with Chevron USA,
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
14-4093/116816
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
ATTEST.
ager
City Attorney
TED AND APPROVED.
Deputy Di for of Business
Develop t
14-4093/116816 2
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
In accordance with the City Charter of said City
Joan L Flynn, Ca Clerk
Senior Deputy City Clerk
ATTACHMENT #2
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).
14-4093/109503 1
(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
144093/109503 2
(h) The phrase "gross annual receipts" shall mean gross operating receipts received
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 6231 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 purposes, under, along, across
or upon the streets of the City. The City hereby grants to Grantee the right, privilege and
franchise to lay, construct, maintain, operate, renew, repair, change the size of, remove or
abandon in place one or more existing pipes and pipelines for the collection, transportation or
distribution of oil, water, gas, gasoline, petroleum, wet gas, or other hydrocarbon substances,
together with all manholes, valves, appurtenances and service connections necessary or
convenient for the operation of said pipes or pipelines including conduits, cathodic protection
devices, wires, cables and other appurtenances necessary or convenient for the exercise of
Grantee's business, in, under and along certain streets, roads, highways, alleys, lanes and other
public ways within City as herein designated or as may subsequently be authorized pursuant to
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:
14-4093/109503 3
A. Pipeline 1
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
14-4093/109503 4
C. Pipeline 3
Rerouting (1 each) 2 inch gas line from 16'h Street alley between
Walnut and Pacific Coast Highway to Walnut, down Walnut to
17'h Street alley; cap off 2 inch piping in Walnut alley between 16t'
Street and 17'h 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 corner of Section 34, T5S, RI I W.
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
14-4093/109503 5
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
Said franchise shall be from and after January 1, 2014, and shall endure in full force and
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
purchasing or condemning such property, or until said franchise shall be forfeited for non-
compliance with its terms by the Grantee.
SECTION 6. COMPENSATION TO CITY
Grantee shall pay the following fees to the City with respect to the rights and privileges
granted to Grantee hereunder:
6.1 Base Granting Fee. Grantee shall pay the City the sum of Five Thousand Dollars
($5,000.00) as a one-time base granting fee within thirty (30) days following the execution of
this Agreement.
6.2 Base Annual Fee and Adjustments. A base annual fee shall be paid within (30)
days after the end of each calendar year during the term of the Franchise Agreement, as amended
herein, as follows:
14-4093/109503 6
Pipeline Size
and Type
(A)
Len
(linear feet)
(W
Fee per linear
Fee Formula
foot
6 inch - oil
19,705'
$0.895
(A)X(B)
6 inch — oil
3,870'
$0.895
(A)X(B
6 inch — gas
700'
$0.895
(A)X(B)
5 inch — oil
1,105'
$0.590
(A)X(B
4 inch — oil
3,643'
$0.590
(A)X(B)
4 inch — oil
2,192'
$0.590
(A)X(B
3 inch — oil
1,630'
$0.590
(A)X(B)
2 inch — gas
1,000
$0.590
(A)X(B)
See HBMC Section 3.44.290 when calculating annual
adjustments to the Base Annual Fee using the Consumer Price
Index -Los Angeles -Riverside -Orange County area (1982-
1984=100).
The base annual fee shall be subject to proration pursuant to Section 3.44.300 of the
HBMC (HBMC fee).
6.3. Base Construction Charges. Pursuant to HBMC Section 3.44.280, Grantee shall
pay at the time of installation, relocation or replacement of any pipeline or other facility covered
by the Franchise Agreement, a base construction charge established, and amended from time to
time, by resolution of the City Council.
6.4 Payments to City. Payment is due thirty (30) days after the City's invoice date
and a ten percent (10%) per month late penalty or fraction thereof beyond the payment date shall
be charged, but in no event shall said penalty exceed fifty (50) percent. In addition, an eighteen
percent (18%) annual interest cost will be charged for any delinquent payment. The City will
also withhold any permits and/or not renew licenses if any payment is delinquent. Payments
should be mailed to the City Treasurer, City of Huntington Beach, P.O. Box 711, Huntington
Beach, CA 92648.
14-4093/109503 7
HBMC Section 3.44.290 shall govern when calculating annual adjustments to the Base
Annual Fee using the Consumer Price Index -Los Angeles -Riverside -Orange County area (1982-
1984=100).
The base annual fee shall be subject to proration pursuant to Section 3.44.300 of the
HBMC.
SECTION 7. FAITHFUL PERFORMANCE BOND
On or before the effective date of this Franchise Agreement, Grantee shall file and
thereafter at all times during the term of the Franchise Agreement keep on file with the City
Treasurer a corporate surety bond approved by the City Attorney running to the City in the penal
sum of One Hundred Thousand Dollars ($100,000). In the event that said bond, after it has been
so filed, shall at any time during the term of the Franchise Agreement become insufficient, in the
sole opinion of the City Council, Grantee agrees to renew said bond within ten (10) days after
written notice to do so from the City Treasurer. At such time, the bond shall be increased by a
rate set forth by the City Council, with a surety to be approved by the City Attorney, conditioned
that Grantee shall well and truly observe, fulfill and perform each condition of the Franchise
Agreement, as amended, and that in case of any breach of condition of the bond the whole
amount of the penal sum shall be deemed to be liquidated damages and shall be recoverable from
the principal and sureties of the bond. If said bond is not filed prior to the effective date of this
Agreement, the approval of this Agreement may be denied and the ordinance granting the
Franchise Agreement repealed at anytime prior to the filing of said bond and any money paid.
SECTION 8. OTHER FRANCHISES
This grant is made in lieu of all other oil utility franchises or leased easement agreements
from Grantor owned by the Grantee, or by any successor of the Grantee to any rights under this
franchise, for transmitting and distributing oil, water, gas, gasoline, petroleum, wet gas, or other
14-4093/109503 8
hydrocarbon substances within the limits of the City, as said limits now or may hereafter exist,
and the acceptance of the franchise hereby granted shall operate as an abandonment of all such
oil utility franchises, leases or easements from Grantor within the limits of this City, as such
limits now or may hereafter exist, in lieu of which this franchise is granted.
SECTION 9. OBLIGATIONS OF GRANTEE
(a) All facilities or equipment of Grantee shall be constructed, installed and
maintained in accordance with and in conformity with all of the ordinances, rules and regulations
heretofore, or hereafter adopted by the legislative body of this City in the exercise of its police
powers and not in conflict with the paramount authority of the State of California, and, as to state
highways, subject to the provisions of the general laws relating to the location and maintenance
of such facilities
(b) If any portion of any street shall be damaged by reason of defects in any of the
pipes and appurtenances maintained or constructed under this grant, or by reason of any other
cause ansing from the operation or existence of any pipes and appurtenances constructed or
maintained under this grant, Grantee shall, at its own cost and expense, immediately repair any
such damage and restore such portion of such damaged street to as good condition as existed
before such defect or other cause of damage occurred.
(c) The Grantee shall pay to the City, on demand, the cost of all repairs to public
property made necessary by any operations of the Grantee under this franchise.
(d) Grantee shall indemnify, save, and hold harmless, City and any officers and
employees thereof against and from all damages, judgments, decrees, costs and expenditures
which City, or such officer or employee, may suffer, or which may be recovered from, or
obtainable against City, or such officer or employee, for, or by reason of, or growing out of or
resulting from the exercising by Grantee of any or all of the rights or privileges granted hereby,
14-4093/109503 9
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 grade, alignment or width of any street If the necessary exercise
of the aforementioned reserved rights conflicts with any pipes and appurtenances of Grantee
constructed, maintained, and used pursuant to the provisions of the franchise granted hereby,
Grantee shall, without cost or expense to City within ninety (90) days after written notice from
the City Manager, or his designated representative, and request so to do, begin the physical
design and field construction of changing the location of all facilities or equipment so
conflicting. Grantee shall proceed promptly to complete such required work
(b) Irrespective of any other provision of this ordinance, Grantee's right to construct,
maintain, and use, or remove pipes and appurtenances thereto shall be subject at all times to the
right of the City, in the exercise of its police power, to require the removal or relocation of said
pipes and appurtenances thereto at the sole cost and expense of Grantee, except (1) as the law
may otherwise provide or, (2) except where Grantee's right to possession is pursuant to
instruments evidencing right-of-way, easements or other interest in real property, or (3) except
14-4093/109503 10
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 parry.
(c) In the event that the City is made aware of a project developed by a governmental
agency, water company, private parry 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 ansmg 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.
14-4093/109503 12
SECTION 14. ENVIRONMENTAL IMPAIRMENT LIABILITY INSURANCE
The policy of environmental impairment liability insurance or other environmental
insurance policy as approved at the sole discretion of the City as required by HBMC Chapter
3.44 shall insure liability for environmental impairment including cleanup cost endorsed for
"Sudden and Accidental" contamination or pollution. Such coverage shall be in an amount and
form to meet all applicable state and federal requirements but in no event less than five million
dollars ($5,000,000) per occurrence.
(a) If written with an annual aggregate limit, the policy limit must be three (3) times
the above -required occurrence limit.
(b) If written on a claims made form, such insurance shall be endorsed to provide an
extended reporting period of not less than two (2) years following termination or cancellation of
the Franchise Agreement.
SECTION 15 WORKERS' COMPENSATION INSURANCE
The policy of workers' compensation insurance, shall:
(a) Have been previously approved as to substance and form by the California
Insurance Commissioner
(b) Cover all employees of Grantee who in the course and scope of their employment
conduct or do work involving operations under the Franchise Agreement.
(c) Provide for every benefit and payment presently or hereinafter conferred by
Division 4 of the Labor Code of the State of California upon an injured employee, including
vocational rehabilitation and death benefits.
(d) Be noncancellable without thirty (30) days written notice thereof directed to the
City.
14-4093/109503 13
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, indemnify and hold harmless City against loss, damage or expense by reason of
any suits, claims, demands, judgments caused by insured in the performance of the franchise as
provided in HBMC Chapter 3 44. Any franchise operation shall not commence until Grantee has
complied with the aforementioned provisions of this section, and any such operation shall be
suspended during any period that Grantee fails to maintain said policies in full force and effect.
SECTION 17. FORCE MAJEURE
The obligations of any party hereunder, other than the obligation to pay money, shall be
suspended for so long as such party is unable, in whole or in part, to carry out its obligations
under this Franchise Agreement by reason of an act of God, strike, walkout or other industrial
144093/109503 14
disturbance, act of the public enemy, war, blockade, public not, 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 parry 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.
14-4093/109503 15
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
councllmembers voting for and against) to be published in the Huntington Beach Independent, a
newspaper of general circulation published and circulated in the City.
14-4093/109503 16
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
corporation
By.
print name
ITS: (circle one) Chairman/PresidenY v President
AND c
By:
print name rPi n r-- C S
ITS. (circle one) Secretary/Chief Financial
Offic /Asst Secretary - Treasurer
Exhibits
A HBMC Chapter 3.44
B Depiction of Pipeline System
CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California
INITIATED AND APPROVED:
Deputy irector of B ness Development
APPROVED A O FORM:
/ity Attorney
REV,r^D APPROVED:
17 i Manager
14-4093/109503 17
EXHIBIT "A"
Chapter 3.44 PIPELINE FRANCHISES
Page 1 of 17
Huntington Beach Charter and Codes
�p Prev_ious Text Main -Collapse -Sea Print No Frames
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
This chapter shall be known and cited as "Pipeline Franchise Ordinance " (2319-10/78)
3.44.020 General Provisions
Every franchise hereafter granted by the City to lay, construct, maintain, operate, renew, repair, change the
size of, remove or abandon in place pipes and pipelines for the collection, transportation or distribution of oil,
gas, gasoline, petroleum, wet gas, hydrocarbon substances, or other substances, together with all manholes,
valves, appurtenances and service connections necessary or convenient for the operation of said pipes or
pipelines including conduits, cathodic protection devices, wires, cables and other appurtenances necessary or
convenient for the exercise of the franchisee's business, in, under, along or across any and all streets within
the City of Huntington Beach except as otherwise provided in the particular franchise agreement, shall be
granted upon and be subject to the rules, regulations, restrictions and terms and conditions of this chapter, in
addition to those rules, regulations, restrictions, terms and provisions set forth in the particular franchise
agreement (2319-10/78, 3889-9/10)
3.44.025 Franchise Required When
It is unlawful for any person, firm or corporation to exercise any privilege or franchise to lay or maintain any
pipes or conduits in or under any public street, or alley in the City, for the transmission of gas, water, heat,
steam, or other substance or to exercise any franchise or privilege for the erection or maintenance, in or upon
any public street or alley in the City, of any telephone, telegraph, electric light or power poles, wires, or
system, or for the erection of any pole or wire for the purpose of transmitting electrical energy or current,
without first having procured a franchise to do so unless such person, firm or corporation is entitled to do so
by direct and unlimited authority of the Constitution of the state or the Constitution of the laws of the United
States (3850-1/10)
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 their derivations shall have the
meaning given herem
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"Council" shall mean City Council of the City of Huntington Beach
"Code" shall mean the Huntington Beach Municipal Code
"Department" shall mean the Public Works Department of the City of Huntington Beach
"Director" shall mean the Public Works Director of the City of Huntington Beach
"Franchisee" or "grantee" shall mean the person to whom the franchise is granted, and any person to
whom it is lawfully assigned
"Facilities" or "appurtenances" shall mean all property owned or used by the franchisee, in connection
with the franchise, including but not limited to, pipelines, pump stations, and service connection with the
franchisee's facilities, whether installed by the franchisee as named or originally granted under this
franchise or its predecessors or assignors, erected, constructed, laid, operated or maintained in, upon,
over, under, along or across any street pursuant to any right or privilege granted by the franchise
"Franchise payment period" shall mean the time period between the effective date of the franchise
agreement granting the franchise and December 31 st of the same calendar year, and each calendar year
thereafter, during the life of the franchise
"Franchise report period" in all cases shall mean the time period between the effective date of the
franchise agreement granting the franchise through and including December 31 st of that calendar year,
and each calendar year thereafter, during the life of the franchise
"Highway" or "street" shall mean any public highway, freeway (except a state freeway), street, road,
alley, lane or court or other public easement, and above and below the same, which now exists or which
may hereafter exist in the City of Huntington Beach
"Main" shall mean any pipeline or conduit laid in, along or approximately parallel with any street for the
collection, transmission or distribution of any hydrocarbon substances
"Major street" shall mean any street or portion thereof designated as a major secondary highway in the
circulation element of the Huntington Beach General Plan
"Minor street" shall mean all streets in the City other than those designated as "major" or "secondary
highways" in the circulation element of the Huntington Beach General Plan
"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
"Service connection" shall mean the wire, pipes, or conduits connecting the building or place where the
service or hydrocarbons supplied by the franchisee is used or delivered, or is made available for use or
delivery, with the supply line or supply main in the highway or with such supply line or supply main on
private property
"Shall" is mandatory, "may" is permissive (2319-10/78, 3889-9/10)
3.44.050 Term
Unless the franchise agreement granting the franchise provides otherwise, the term of the franchise shall be 15
years (2319-10/78, 3889-9/10)
3.44.060 Acceptance of Franchise Agreement
The franchisee shall enter into a written agreement with the City of Huntington Beach which grants the
franchise and sets forth the terms and provisions therein The franchisee shall, within 30 days after the passage
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of the ordinance granting the franchise, file with the City Clerk of the City of Huntmgton Beach a written
acceptance of the terms and conditions of said ordinance The franchise shall be null and void if the written
acceptance is not filed within the prescribed time (2319-10/78, 3889-9/10)
3.44.070 Nonexclusive Franchise
The granting of the franchise shall not be construed to prevent the City from granting identical or similar
franchise to any person other than the franchisee Nothing herein contained shall ever be construed so as to
exempt the franchisee from compliance with all ordinances, rules or regulations of the City now in effect or
which may be hereafter adopted which are not inconsistent with the terms of the franchise (2319-10/78,
3889-9/10)
3.44.080 Maps___
Within 90 days following the date on which any facilities or appurtenances have been laid, removed or
abandoned under the franchise, the franchisee shall file a map or maps with the department showing the
accurate "as built" location, depth, and size of the facilities or appurtenances so laid, removed or abandoned.
(2319-10/78, 3889-9/10)
3.44.100 Liability Insurance
The policy of liability msurance required by this chapter shall be issued to franchisee and name the City and
its officers, agents, and employees as additional insureds It shall further indemnify for all liability for
personal and bodily injury, death and damage to property arising from activities conducted pursuant to the
franchise by providing coverage thereof, including, but not limited to
A Negligent acts or omissions of franchisee and the agents, servants and employees thereof,
committed in the conduct of franchise operations
B Provide a combined single limit liability msurance m the amount of $5,000,000 00
C Be noncancellable without 30 days' written notice thereof directed to the City of Huntington
Beach (2319-10/78, 3889-9/10)
3.44.105 Environmental Impairment Liability Insurance
The policy of environmental impairment liability insurance or other environmental insurance policy as
approved at the sole discretion of the City as required by this chapter shall ensure 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 $5,000,000 00 per occurrence
A If written with an annual aggregate limit, the policy limit should be three times the above -required
occurrence limit
B If written on a claims made form, such insurance shall be endorsed to provide an extended
reportmg period of not less than two years following termination or cancellation of this franchise
(3889-9/10)
3.44.110 Workers' Compensation Insurance
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Chapter 3 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
B Cover all employees of franchisee who in the course and scope of their employment to conduct or
do work pursuant to the franchise operations
C Provide for every benefit and payment presently or hereinafter conferred by Division 4 of the Labor
Code of the State of California upon an injured employee, including vocational rehabilitation and death
benefits
D Be noncancellable without 30 days' written notice thereof directed to the City of Huntington Beach
(2319-10/78, 3889-9/10)
3.44.120 Insurance —Filing
Franchisee shall file with the City Clerk prior to commencement of any franchise operations either certified
copies of said policies, or a certificate of 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,
indemnify and hold harmless the City of Huntington Beach against loss, damage or expense by reason of
any suits, claims, demands, and/orjudgments caused by insured in the performance of the franchise as
provided in Section 3 44 220
Any franchise operation shall not commence until franchisee has complied with the aforementioned
provisions of this section, and any such operation shall be suspended during any period that franchisee fails to
maintain said policies in full force and effect (2319-10/78, 3889-9/10, 4034-1/15)
3.44.130 Faithful Performance Bond
On or before the effective date of the franchise agreement granting the franchise, franchisee shall file and
thereafter at all times during the life of the franchise keep on file with the City Treasurer a corporate surety
bond approved by the City Attorney running to the City in the penal sum of $100,000 00 In the event that said
bond, after it has been so filed, shall at any time during the life of the franchise become insufficient, in the
sole opinion of the City Council, the franchisee agrees to renew said bond within 10 days after written notice
to do so from the City Treasurer At such time, the bond shall be increased by a rate set forth by City Council,
with a surety to be approved by the City Attorney, conditioned that franchisee shall well and truly observe,
fulfill and perform each condition of the franchise and that in case of any breach of condition of the bond the
whole amount of the penal sum shall be deemed to be liquidated damages and shall be recoverable from the
principal and sureties of the bond If said bond is not filed prior to the effective date of the ordinance granting
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the franchise, the award of the franchise may be set aside and the ordinance granting the franchise repealed at
any time prior to the filing of said bond and any money paid in consideration for said award of franchise shall
be deemed forfeited In the event that said bond, after it has been so filed, shall at any time during the life of
the franchise become insufficient, franchisee agrees to renew said bond, subject to the approval of the City
Attorney, within 10 days after written notice to do so from the director (2319-10/78, 3889-9/10)
3.44.160 Forfeiture
The franchise is granted and shall be held and enjoined upon each and every condition contained in the
franchise agreement, including such conditions contained herem as are incorporated by reference in said
franchise agreement, and shall be strictly construed against the grantee Any neglect, failure or refusal to
comply with any of the terms and provisions of the franchise agreement shall constitute grounds for the
suspension or forfeiture of the franchise, shall give to the grantee not less than 30 days' notice in writing of
any default thereunder If the grantee does not, within the noticed period, begin the work of compliance or
after such beginning does not prosecute the work with due diligence to completion, the Council may hold a
hearing, at which the grantee shall have the right to appear and be heard, and thereupon the Council may
determine whether such conditions are material and essential to the franchise and whether the grantee is in
default with respect thereto and may declare the franchise suspended or forfeited Notice of said hearing shall
be given to the grantee by certified mail not less than five days before said hearing (2319-10/78)
3.44.170 Value of Franchise
The grantee of any franchise awarded to a public utility, by accepting the terms and conditions thereof,
stipulates and agrees that in any proceeding for the purpose of adjusting the rates of the grantee, no greater
value shall be placed upon the franchise than the actual cash paid therefor by the grantee (2319-10/78)
3.44.180 State
If any street or portion thereof becomes a state highway, except for the right to continue to collect franchise
payments in such other rights as by law remain with the City, the state shall succeed to all rights reserved to
the City by the franchise (2319-10/78, 3889-9/10)
3.44.190 Eminent Domain
No franchise granted by the City shall in any way impair or affect the right of the City or any successor in
authority to acquire the property of the grantee by purchase or condemnation, and nothing contained in such a
franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's
right of eminent domain in respect to any public utility (2319-10/78, 3889-9/10)
3.44.200 Publication Costs
The grantee shall pay to the City within 30 days after receiving a statement therefor, all advertising and
publishing costs, including the cost of publishing the granting of the franchise, if necessary (2319-10/78,
3889-9/10)
3.44.210 Assignment
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The grantee shall not directly or indirectly sell, transfer, assign or lease the franchise or any part thereof, or
allow any other person or entity to operate any pipeline or related facility subject to the franchise, except with
the written approval of the Council which may be withheld at its sole and absolute discretion Such sale,
transfer, assignment, or lease shall be made only by filing with the Council a copy of the duly executed
instrument of such sale, transfer, assignment or lease and a written request for the consent of the Council to
such sale, transfer, assignment or lease If such duly executed instrument and such written request is not filed
with the Council before the expiration of 30 days after the effective date of such sale, transfer, assignment or
lease, then, upon the expiration of said 30 days, the franchise shall be subject to forfeiture and the Council
may, without notice, revoke the franchise As a condition to the grantmg of consent to such sale, transfer,
assignment or lease, the Council may impose such additional terms and conditions upon the franchisee and
upon the grantee or assignee, which the Council may deem to be in the public interest Such additional terms
and conditions shall be expressed by Council resolution Nothing herein contained shall be construed to grant
to the grantee the right to sell, transfer, assign or lease the franchise, or any part thereof, except in the manner
aforesaid This section applies to any assignment, whether by operation of law, by a voluntary act of the
grantee or otherwise and includes a transfer of more than 50% of the voting stock of any corporate grantee or
the change in identity of any general partner of a franchisee which is a partnership, whether to a third party or
to any subsidiary, parent, or affiliated agency of franchisee (2319-10/78, 3889-9/10)
3.44.220 Hold Harmless
A The grantee shall be responsible to the City and shall defend, indemnify and hold harmless the City
and its officers and employees from all damages or liability arising from the use, operation or
maintenance of the facilities erected, constructed, laid, operated or maintained thereunder
B Franchisee hereby agrees to protect, defend, indemnify and hold harmless City, its officers, elected
or appointed officials, employees, agents, and volunteers from and against any and all claims, damages,
losses, expenses, judgments, demands defense costs, and consequential damage or liability of any kind
or nature, however caused, including those resulting from death or injury to franchisee's employees and
damage to franchisee's property, arising directly or indirectly out of the obligations or operations herein
undertaken by franchisee, caused in whole or in part by any negligent act or omission of the franchisee,
any subfranchisees, anyone directly or indirectly employed by any of them or anyone for whose acts any
of them may be liable, including but not limited to concurrent active or passive negligence, except where
caused by the active negligence, sole negligence, or willful misconduct of the City Franchisee shall
conduct all defense at its sole cost and expense and the City shall approve selection of franchisee's
counsel The City shall be reimbursed for all costs and attorney's fees incurred by the City in enforcing
this obligation This indemnity shall apply to all claims and liability regardless of whether any insurance
policies are applicable The policy limits do not act as a limitation upon the amount of indemnification to
be provided by franchisee (2319-10/78, 3889-9/10)
3.44.230 Standards
All facilities erected, constructed, laid, operated or maintained under the provisions of the franchise shall be
erected, constructed, laid, operated or maintained in accordance with and conforming to all the ordinances,
codes, rules and regulations now or hereafter adopted by or prescribed by the Council (2319-10/78)
3.44.231 Conflicting Improvements
If the City or any other public entity constructs or maintains any storm dram, sewer structure, or other facility
or improvement under or across any facility of the grantee maintained pursuant to the ordmance, the grantee
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shall provide at no expense to the City or other public entity such support as shall be reasonably required to
support, maintain and protect grantee's facility (3889-9/10)
3.44.240 Defective Facilities
If any portion of any street shall be damaged by reason of defective facilities laid or constructed under the
franchise, the grantee shall, at its own expense, repair any such defect and put such street in as good condition
as it was before such damage was incurred, to the satisfaction of the City If the grantee, within 10 days after
receipt of written notice from the City, instructing it to repair such damage, shall fail to commence to comply
with such instructions, or, thereafter, shall fail diligently to prosecute such work to completion, then the City
immediately may do whatever work is necessary to carry out said instructions at the cost and expense of the
grantee, which cost and expense, by the acceptance of the franchise, the grantee agrees to pay upon demand If
such damage constitutes an immediate danger to the public health or safety requiring the immediate repair
thereof, the City without notice may repair such damage and the grantee agrees to pay the reasonable cost
thereof upon demand (2319-10/78, 3889-9/10)
3.44.250 Hazardous Substances
Prior to the issuance of any excavation permit for the construction or installation of any pipeline for the
transmission of flammable liquids or gases, written approval shall be obtained from the director Said approval
may be withheld at the sole and absolute discretion of the director Said approval may be based on the
determination that no undue fire hazard will be created to life or property in the areas through which the
proposed pipeline will be located To make such determination, consideration shall be given to
A Type of hydrocarbon to be transmitted
B Density of population or structural development in the area through which the pipeline will be
located
C Adequacy of water supplies for fire control purposes
D Extent of available public fire protection facilities
E Number and location of shutoff valves in line (2319-10/78, 3889-9/10)
3.44.251 Damage to Public Property Generally
Any damage done directly or indirectly to any public property by grantee, in exercising directly or indirectly
any right, power, or privilege under this franchise, or in performing any duty under or pursuant to the
provisions of this section, shall be promptly repaired by grantee at its sole cost and expense to as good a
condition as it was before such damage was incurred, and to the satisfaction of the director If the franchisee,
within 10 days after receipt of written notice from the City, instructing it to repair such damage, shall fail to
commence to comply with such instructions, or thereafter, shall fail to diligently prosecute such work to
completion, the City immediately may do work necessary to carry out said instructions and the cost and
expense of the franchisee, which cost and expense, by the acceptance of the franchise, the franchisee agrees to
pay upon demand If such damage constitutes an immediate danger to the public health or safety requiring the
immediate repair thereof, the City without notice may repair such damage and the franchisee shall pay all
costs incurred (3889-9/10)
Article II. Compensation
3.44.252 Public Utility Not Transmitting Oil or Products Thereof
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The franchisee of any franchise awarded to a public utility or non-public utility not transmitting oil or
products thereof, as consideration for such franchise, shall annually pay to the City in lawful money of the
United States, within 30 days after the end of each calendar year and during the life of the franchise for each
and every year, including the year of granting the franchise a franchise fee negotiated as part of the franchise
agreement (unless preempted by state law) arising from the use, operation or possession of the franchise
(3889-9/10)
3.44.253 Length
Whenever the length of any wire, pipe or conduit is a factor in calculating any payment due under any
franchise granted by the City, all service connections shall be excluded in determining such lengths
(3889-9/10)
3.44.255 Public Utility Transmitting Oil or Products Thereof _
The franchisee of any franchise awarded for a pipeline transmitting oil or products thereof which has been
determined by the Public Utilities Commission to be a public utility, as consideration for such franchise, shall,
within 30 days after the end of each calendar year and during the life of the franchise for each and every year,
including the year of granting the franchise, annually pay to the City in lawful money of the United States, a
fee in the following amounts as required by state law In the event these referenced fees increase pursuant to
state law, the fees referenced herein shall increase by the same
Pipelines with an Internal Diameter of.
Base Rate Per Lineal Foot
0-4 inches
088
6 inches
132
8 inches
176
10 inches
220
12 inches
264
14 inches
308
16 inches
352
18 inches
396
20 inches
440
22 inches
484
24 inches
528
26 inches
572
28 inches
616
30 inches
660
For pipelines with an internal diameter not listed above, the fees shall be in the same proportion to the fees of
a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches.
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The amount of the fee or charge provided for in this section shall be multiplied by the Consumer Price Index,
All Urban Consumers (CPI-U) for the Los Angeles -Riverside -Orange County Area for the month of
September immediately preceding the month in which payment is due and payable, and divided by the
Consumer Price Index, All Urban Consumers (CPI-U for the Los Angeles -Riverside -Orange County Area for
June 30, 1989 (1982-84=100 0)) (3889-9/10)
3.44.256 Non -Public Utility Franchises
The franchisee of any franchises awarded to other than a public utility transmitting oil or oil products thereof,
as further consideration for such franchise including the extension, renewal, or continuation of a previously
granted franchise, shall pay to the City in lawful money of the United States the following fees (3889-9/10)
3.44.260 Basic Grantina Fee
In the event of an initial grant of franchise or franchises which extend, renew, or continue previously granted
franchises, a base granting fee shall be required as established, and amended from time to time, by resolution
of the City Council (2319-10/78, 2676-2/84)
3.44.270 Base Annual Fee
A base annual fee shall be paid by franchisee within 30 days after the end of each calendar year including the
year of granting the franchises, according to the franchise payment period as defined in this chapter, in the
following amounts
Pipelines with an Internal Diameter of:
Amount Per Lineal Foot
0-4 inches
590
6 inches
895
8 inches
1 197
10 inches
1 485
12 inches
1 787
14 inches
2092
16 inches
2 377
18 inches
2 682
20 inches
2 984
22 inches
3 272
24 inches
3 574
26 inches
3 879
28 inches
4 164
30 inches
4 469
The base annual rate applicable to pipelines with an internal diameter falling between incremental size
categories shall pay a rate determined by adding the price corresponding to the lower size to a figure
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computed by multiplying the difference between the higher and lower price times the multiplier The
multiplier will be determined by dividing the difference between the size of the pipe and the lower size
category by the difference between the two size categories In determining the number of feet of pipeline upon
which the annual fee will be computed, the greatest number of feet of pipeline covered by the franchise during
the calendar year for which payment is due will be utilized The base annual fee shall be paid no later than 30
days and a penalty at the rate of 10% per month or fraction thereof beyond the payment date shall be charged,
but in no event shall said penalty exceed 50%
The City reserves the right to adjust the base fees established hereunder at any time after the effective date of
the ordinance codified in this chapter (2319-10/78, 2676-2/84, 3889-9/10)
3.44.271 Payments to City
Payment is due 30 days after the City's invoice date and a 10% per month late penalty and 18% annual
interest cost will be charged for any delinquent payment The City will also withhold any permits/not renew
licenses if any payment is delinquent Payments should be mailed to the City Treasurer, City of Huntington
Beach, P O Box 711, Huntington Beach, CA 92648-0711 (3889-9/10)
3.44.280 Base Construction Charges
The holder of the franchise shall pay at the time of installation, relocation or replacement of any segment of
pipe or pipeline, or any other facility covered by the franchise agreement, a base construction charge
established, and amended from time to time, by resolution of the City Council (2319-10/78, 2676-2/84)
3.44.290 Adjustments —Base Annual Fee
The amount of each base annual fee as specified in the above section shall be revised every year, in
accordance with the following formula
A The Consumer Price Index, All Urban Consumers (CPI-U) for the Los Angeles -Riverside -Orange
County area (1982-84=100) as published by the United States Bureau of Labor Statistics ("Bureau"),
shall be defined as the "index," and such index as it stands on August 1, 2010 shall be defined as the
"base index" and the index for the month of September immediately preceding the fee payment date
shall be defined as the "current index "
B If the current index differs from the base index, then the base annual fee shall increase or decrease
by the percentage increase or decrease between the current index and the base index, provided that, if the
current index drops below the base index, no adjustment shall be made The base annual fee shall be
multiplied by an adjustment factor determined by dividing the current index by the base index
For example, if the base index is 185 0 and the current index is 190 5, the annual franchise fee shall be
(i e 190 5/185 0 = 1 0297), times the base annual fee, provided, however, under no circumstances shall
the multiplying factor be less than one, nor shall the annual franchise fee calculated using said factor, be
less than the base annual fee If the Bureau shall revise the index, the parties hereto shall accept the
method of revision for conversion recommended by the Bureau, and
C If the Bureau discontinues the preparation or publication of the CPI-U, All Urban Consumers for
the Los Angeles -Riverside -Orange County area (1982-84=100), and if no transposition table prepared by
the Bureau is available, then the amount of each annual franchise fee shall be computed by reference to
such other price index as may be chosen by the City, and the City shall be the sole judge of
comparability of successive indices and its determination on this point shall be final and conclusive In
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no event shall the annual franchise fee adjustment by reference to such other price index be less than the
base annual fee as set forth herem
D Publication and Administrative Issuance Costs The franchisee shall pay to the City within 30
days after receiving a statement therefor, all administrative and other costs incurred by the City
processing the application for a franchise, including but not limited to the preparation of any reports,
statements or studies pursuant to the California Environmental Quality Act (Public Resources Code
Section 21000, et seq ) and any similar federal statute, or any successor statute, and for any and all
advertising and publishing costs, including the cost of publishing the ordinance, if necessary, incurred in
connection with the granting of the franchise
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 Payments
In the event of abandonment of facilities with the approval of the City as elsewhere in this chapter provided,
or in the event of removal of such facilities by the franchisee, or in the event of the grant of a franchise with
an initial franchise payment period of less than one year, the annual franchise fee required under the
aforementioned sections shall be prorated for the calendar year in which such removal or abandonment or
grant occurs as of the end of the calendar month in which removed, abandoned or granted (2319-10/78,
3889-9/10)
3.44.310 Records
A Franchisee shall keep and preserve for a period of five years subsequent to the date of the most
recent franchise fee determination all the records necessary to determine the amount of such franchise
fee
B At all reasonable times, the franchisee shall permit the City or its duly authorized representative to
examine all property of the franchisee erected, constructed, laid, operated or maintained pursuant to the
franchise, together with any appurtenant property of the franchisee, and to examine and transcribe any
and all books, accounts, papers, maps, and other records kept or maintained by the franchisee or under its
control which concern the operations, affairs, transactions, property or financial condition of the
franchisee with respect thereto Said records shall be made available to the City at a location in the
CountyofOrange (2319-10/78,3889-9/10)
Article III. Construction
3.44.320 Construction Requirements
Pipelines and appurtenances shall be constructed and maintained in a good workmanlike manner in
conformity with applicable law and the terms and conditions of any City ordinance, rule or regulation now, or
as hereafter amended, adopted or prescribed by the City All pipelines and appurtenances will be installed in
accordance with the latest revision of the "American Standard Code of Pressure Piping ASA B31 4 " (2319-
10/78, 3889-9/10)
3.44.330 New Installation or Replacement
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New installations or replacements of pipelines and appurtenances and all other facilities necessary for the
installation, operation, maintenance, and safety of pipelines and conduits shall be laid and maintained only
pursuant to applicable law and permit issued by the department All such installations or replacements shall be
reviewed by the director as to the most desirable location in the streets of the City and his or her decision shall
be final and binding on the franchisee (2319-10/78, 3889-9/10)
3.44.340 Permits
A Where the provisions of any City ordinance, resolution or regulation, which shall be in force at that
time, require the issuance of an excavation, encroachment or other type of permit, the franchisee shall
not commence any excavation or encroachment work under the franchise until it shall have obtained
such permit from the department except in cases of emergency affecting public health, safety or welfare
or the preservation of life or property, in which case the franchisee shall apply for such permit not later
than the next business day
B The application of the franchisee for such permit shall show the following facts the length and
proposed location of the pipeline and/or appurtenance intended to be installed, and such other facts as the
department may require The franchisee shall pay any and all permit inspection fees required by the
department (2319-10/78, 3889-9/10)
3.44.350 Work On and Restoration of Streets
The work of constructing, laying, replacing, maintaining, repairing or removing all pipelines and
appurtenances authorized under the provisions of this chapter in, over, under, along or across any street shall
be conducted with the least possible hindrance to the use of the street for purposes of travel As soon as such
work is completed, all portions of the street which have been excavated or otherwise damaged thereby shall
promptly and in a workmanlike manner be repaired, replaced or restored and placed in as good condition as
before the commencement of such work and shall be done to the satisfaction of the director at the expense of
the franchisee, and in accordance with the terms and conditions of any City ordinance, resolution or
regulation For streets that have been rehabilitated within three years prior to the proposed work, the City shall
require the resurfacing, or other treatment, of the entire lane widths of the street as directed by the director
For those streets that have not been rehabilitated by the City within three years prior to the proposed work, the
restoration shall be in full compliance with City requirements All restoration, repair or replacement work
shall be done to the satisfaction of the director at the expense of the franchisee in accordance with all
applicable law In the event that the franchisee shall fail or neglect to make such highway repair, replacement
or restoration work, 10 days after notice therefor has been given franchisee by the director, the City may
repair, replace or restore said highway at the expense of franchisee Franchisee agrees to pay to the City the
cost of performing such work The amount so chargeable shall be the direct cost of such work plus the current
rate of overhead being charged by the City for reimbursable work (2319-10/78, 3889-9/10)
3.44.360 Failure to Comply Timely
A In the event that the franchisee fails to complete the work within the time specified in the permit,
the City may require the franchisee to pay to the City not more than $500 00 per day as liquidated
damages for each day construction extends beyond the time specified in the permit
B Whenever the franchisee fails to complete any work required by the terms and provisions of the
franchise, and the permits issued thereunder, within the time limits required thereby, the City may
complete or cause to be completed any and all such work at the expense of the franchisee The franchisee
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agrees to pay to the City the cost of performing such work The amount so chargeable to franchisee shall
be the direct cost of such work plus the current rate of overhead being charged by the City for
reimbursable work (2319-10/78, 3889-9/10)
3.44.370 Completion Statement
Upon the completion of the construction of any pipelines or other facilities constructed pursuant to said
franchise, the franchisee shall submit a statement to the director, identifying the permit or permits issued by
the department, the total length of pipeline, pipeline material, diameter of pipeline, the construction of which
was authorized under such permit or permits, and the total length of pipeline or facilities actually laid and as -
built drawings (2319-10/78, 3889-9/10)
3.44.371 Responsibility
In addition to any indemnification set forth herein, franchisee shall be specifically responsible to the City and
shall save the City, its officers, agents, and employees, free and harmless from all damages or liability arising
from any damage or injury suffered by any person by reason of any excavation or obstruction being
improperly guarded during any work authorized pursuant to the franchise or the failure or neglect of the
franchisee to properly perform, maintain, or protect any phase of such work (3889-9/10)
3.44.380 Facilities
The franchisee shall have the right to construct, maintain and repair such traps, manholes, conduits, valves,
appliances, attachments and other facilities as may be necessary or convenient for the proper maintenance and
operation of the pipelines under said franchise, and said facilities shall be kept flush with the surface of the
street and so located as to conform to applicable law including any ordinance, resolution or regulation of the
City, or of any permit issued by the department in regard thereto and shall not interfere with the use of the
street for travel The franchisee shall have the right subject to such ordinances, resolutions and regulations as
are now or may hereafter be in force, to make all necessary excavations in said street for the construction,
maintenance and repair of said facilities, provided, however, that the franchisee shall first obtain an
excavation permit from the department for doing any such work (2319-10/78, 3889-9/10)
3.44.386 Shorin�_�
The franchisee shall provide at its sole cost such shoring or other support as shall be reasonably required to
support, maintain, and protect franchisee's facilities in connection with any storm drain or sewer construction
by the City or in connection with any facility constructed by the City, or by any successor agency (3889-9/10)
3.44.390 Ordinary Repair
The franchisee shall be privileged to excavate in the road or street for line repair for the number of days
agreed upon by the franchisee and the department, provided, however, that the franchisee shall first obtain an
excavation permit from the department for the doing of any such work (2319-10/78, 3889-9/10)
3 44 391 Relocation of Pipelines and Facilities
A The City reserves the right to change the grade, to change the width or to alter or change the
location of any street over which the franchise is granted If any of the pipelines, facilities or
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appurtenances heretofore or hereafter constructed, installed or maintained by the franchisee pursuant to
the franchise on, along, under, over, in, upon or across any street are located in a manner which conflict
in any way with the change of grade, traffic needs, operation, maintenance, improvements, repair,
construction, reconstruction, widening, alteration or relocation of the street, the franchisee shall relocate
permanently or temporarily any such facility at no expense to the City upon receipt of a written request
from the director to do so, and shall commence such work on or before the day specified in such written
request which date shall be not less than 30 days from receipt of such written request Franchisee shall
thereafter diligently prosecute such work to completion
B The City reserves the right for itself, and all other public entities which are now or may later be
established, to alter, relocate, and maintain subsurface or other facilities or improvements of any type or
description in a governmental but not proprietary capacity within the streets over which the franchise is
granted If the City or any other public entity finds that the location or relocation of such facilities or
improvements conflicts with the facilities laid, constructed or maintained under the franchise, whether
such facilities were laid before or after the facilities of the City or such other public entity were laid, the
franchisee of such franchise shall at no expense to the City or public entity, on or before the date
specified in a written request from the director, which date shall be not less than 30 days after the receipt
of such notice and request to do so, commence work to change the location either permanently or
temporarily of all facilities so conflicting with such improvements to a permanent or temporary location
in said streets to be approved by the director and thereafter diligently prosecute such work to completion
(3889-9/10)
3.44.400 Breaks or Leaks
If any portion of the street shall be damaged by reason of breaks or leaks in any pipe, conduit, or appurtenance
constructed or maintained under the franchise, the franchisee thereof shall, at its own expense, immediately
following written or oral notification thereof, promptly repair any such damage and put such street in as good
condition as it was in before such damage or leak, all to the satisfaction of the department The franchisee
shall obtain an excavation permit from the department for the doing of any such work (2319-10/78,
3889-9/10)
3 44 410 Emergency Equipment
At all tunes during the term of this franchise, the franchisee shall maintain or arrange for, on a 24-hour a day
basis adequate emergency equipment and a properly trained emergency crew within a radius of 25 miles from
any facilities installed or maintained pursuant hereto for the purpose of shutting off the pressure and the flow
of contents of such facilities in the event of an emergency resulting from an earthquake, act of war, civil
disturbance, fire, flood, or any other cause or nature whatsoever (2319-10/78)
3.44.420 Removal or Abandonment of Facilities
A At the expiration, revocation or termination of this franchise or the permanent discontinuance of the
use of all or a portion of its facilities, the franchisee shall, within 30 days thereafter make written
application to the director for authority either (1) to abandon all or a portion of such facilities in place,
or (2) to remove all or a portion of such facilities Such application shall describe the facilities desired to
be abandoned or removed by reference to the map or maps required by Section 3 44 080 and shall also
describe with reasonable accuracy the physical condition of such facilities The director shall determine
whether any abandonment or removal which is thereby proposed may be effected without detriment to
the public interest and under what conditions such proposed abandonment or removal may be safely
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effected and shall then notify the franchisee of his or her determination The franchisee shall pay to the
City the cost of all tests required to determine the disposition of the application for abandonment
removal
B Within 30 days after receipt of such notice, the franchisee shall apply for a permit from the
department to abandon or remove the facility and shall pay all fees and costs related thereto Such permit
is to contain the conditions of abandonment or removal as may be prescribed by the director Any
abandonment shall be conditioned, in part, upon the franchisee's compliance with the provisions set
forth in this chapter
The franchisee shall, within 90 days after obtaining such permit, commence and diligently prosecute to
completion the work authorized by the permit If the franchisee applies for authority to abandon all or a
portion of its facilities in place, and the director determines that abandonment in place of all or part of the
facilities may be affected without detriment to the public interest, the franchisee shall pay to the City a fee
which shall be computed as follows
Pipelines with an Internal Diameter of
0-12 inches
14-18 inches
20-30 inches
(2319-10/78, 3889-9/10)
3.44.430 Failure to Com
Amount per Lineal Foot
$15 00
$22 00
$28 00
A If any facilities to be abandoned "in place" subject to prescribed conditions shall not be abandoned
in accordance with all such conditions the director may make additional appropriate orders, including an
order that the franchisee shall remove any or all such facilities The franchisee shall comply with such
additional orders
B In the event that the franchisee shall fail to comply with the terms and conditions of abandonment
or removal as may be required by this chapter and within such time as may be prescribed by the director,
the City may remove or cause to be removed such facilities at the franchisee's expense The franchisee
shall pay to the City the cost of such work plus the current rate of overhead being charged by the City for
reimbursable work
C If, at the expiration, revocation or termination of this franchise, or of the permanent discontinuance
of the use of all or a portion of its facilities, the franchisee shall, within 30 days thereafter, fail or refuse
to make written application for the abovementioned authority, the director shall make the determination
as to whether the facilities shall be abandoned in place or removed The director shall then notify the
franchisee of his or her determination The franchisee shall thereafter comply with the provisions of
subsection B of Section 3 44 420 (2319-10/78, 3889-9/10)
3.44.440 Abandonment "In Place" Conditions
Facilities abandoned "in place" shall be subject to the condition that if, at any time after the effective date of
the abandonment, the director determines that the facility may interfere with any public project, franchisee or
its successor in interest must remove the facility at its expense when requested to do so by the City or to pay
the City for the cost of such removal (2319-10/78, 3889-9/10)
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3.44.447 Operation After Franchise Expiration —Revocable License
If a franchise is to expire within 60 days according to the franchise terms, and a new franchise has been
requested, but has not yet been granted, the franchisee may request the Mayor and City Council to issue the
franchisee a written revocable license, for a renewable term not to exceed 120 days from the expiration of the
franchise, permitting the franchisee to continue to locate its existing facilities in or upon public property in the
City during the term of the license The Mayor and City Council may issue such a revocable license, subject to
any restrictions, terms, and conditions (including compensation), without limitation, that they deem to be in
the best interests of the City Nothing herein requires the Mayor and City Council to grant such a revocable
license, nor does the issuance of such a revocable license require that the Mayor and City Council grant the
franchisee a new franchise Upon request of the franchisee, the City Clerk shall provide a revocable license
application form (3850-1/10)
Article IV. Special Provisions for Petroleum Pipelines
3.44.450 Rights Granted
The franchisee granted a petroleum pipeline franchise shall have the right during the life thereof to transport
oil, gas, gasoline, petroleum, wet gas and other hydrocarbon substances through the pipelines maintained
under the franchise If the franchisee or assignee later qualifies before the Public Utilities Commission of the
State of California as a common carrier, the franchisee or assignee shall then have no right to continue to
operate hereunder after the date of such qualification except with the consent of the Council, granted upon
such additional terms and conditions as the Council may deem proper or as superseded by statute Such
additional terms and conditions shall be expressed by resolution (2319-10/78, 3889-9/10)
3.44.460 Materials Used
All pipelines used or to be used for the transportation of oil, gas, gasoline, petroleum, wet gas and other
hydrocarbon substances shall be first class and standard material as set forth by current American Petroleum
Institute pipeline specifications (2319-10/78)
3.44.470 Approvals
On all pipelines laid pursuant to the franchise, the director shall approve where flush -valve connections shall
be placed in the line The availability of adequate water supplies, the hydrocarbons transmitted in the line, and
the location of control valves shall be considered when making such determination Such flush -valve
connections shall be installed in the manner prescribed by the director (2319-10/78)
3.44.480 Reports
The franchisee during the life of the franchise, within 60 days after the expiration of each franchise payment
period, shall
A File with the director two copies of a verified report of the franchisee showing for the immediately
preceding franchise period, the length of lines in streets, the internal diameter of such Imes, the rate per
foot per year and the total amount due the City
B File with the director a report in triplicate, showing the permit number of each permit obtained for
the installation of new mains during the immediately preceding franchise payment period, together with
the length and size of said mains On this report the franchisee shall show any change in franchise
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Chapter 3 44 PIPELINE FRANCHISES
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footage since the last franchise payment period segregating such footage as to new mains laid, old mains
removed, old mains abandoned in place, and the footage of mains in territory annexed or incorporated
since the last franchise payment period
C All payments should be mailed to the City Treasurer, City of Huntington Beach, P O Box 711,
Huntington Beach, CA 92648-0711 (2319-10/78, 3889-9/10)
3.44.490 Payments Due
Except for pipelines lawfully maintained other than by the authority granted by the franchise, the semi-annual
payments shall accrue from the respective dates of installation, whether before or after the effective date of the
franchise agreement, and such payments, together with the initial construction charges, if any, shall be due
and payable semi-annually (2319-10/78, 3889-9/10)
3.44.500 Cost of Relocation
Franchisee shall bear the costs of removing and relocating its facilities used and maintained under this
franchise if made necessary by any lawful change of grade, alignment or width of any public street, way, alley
or place, or for any public project, even if franchisee's facilities are located on a private easement If the
grantee after reasonable notice, fails or refuses to relocate permanently or temporarily its facilities located in,
on, upon, along, under, over, across or above any highway or to pave, surface, grade, repave, resurface or
regrade as required, pursuant to any provision of the franchise, the City or other public entity may cause the
work to be done and shall keep an itemized account of the entire cost thereof, and the grant shall hold
harmless the City, its officers and employees from any liability which may arise or be claimed to arise from
the moving, cutting, or alteration of any of the grantee's facilities, or the turning on or off of water, oil, or
other liquid, gas, or electricity (2319-10/78, 3889-9/10)
View the mobile version
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EXHIBIT `B"
WI
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ATTACHMENT #3
RECEIVED BY -
(Name)
CITY CLERK RECEIPT COPY
Return DUPLICATE to
City Clerk's Office
after signing/dating
(Date)
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICATION
TO City Treasurer
FROM. City Clerk
DATE D 6 d !J--
SUBJECT Bond Acceptance
I have received the bonds for
CAPITAL PROJECTS (Includes CC's and MSC's)
Performance Bond No.
Payment Bond (Labor and Materials) Bond No.
Warranty or Maintenance Bond No.
TRACT AND DEVELOPMENT
Faithful Performance Bond No.
Labor and Material Bond No.
Guarantee and Warranty Bond No.
Monument Bond No.
Franchise Bond No. D /
Letter of Credit Bond No.
Other
Re: Tract No Approved
(Coup Appro a)l Date)
CC No Agenda Item No O� /
MSC No City Clerk Vault No
Other No. �gd�GCs� a — SIRE System ID No
t g /forms/bond transmittal to reasurer ��Y!%��t%%m
FRANCHISE BOND
(License or Permit - Continuous)
Bond No 070013224
KNOW ALL MEN BY THESE PRESENTS
THAT WE, Chevron U.S.A., INC., as Principal, and Liberty Mutual Insurance Company, a
corporation duly incorporated under the laws of the State of Connecticut and authorized to do business in the
State of California, as Surety, are held and firmly bound unto City of Huntington Beach, as Obligee, in the
penal sum of One Hundred Thousand 00/100------- ---- ($100,000.00) Dollars, for the payment of which we
hereby bind ourselves, our heirs, executors and administrators, jointly and severally, firmly by these presents
WHEREAS, the Principal has obtained or is about to obtain a license or permit for Franchise for the
construction operation and maintainance of a pipeline system for the transportation of oil, gas and
other hydrocarbon substances
NOW, THEREFORE, THE CONDITIONS OF THIS OBLIGATION ARE SUCH, that if the Principal shall
faithfully perform all duties and protect said Obligee from any damage caused by the Principal's non-
compliance with or breach of any laws, statutes, ordinances, rules or regulations, pertaining to the license or
permit issued, then this obligation shall be null and void, otherwise to remain in full force and effect
This bond shall become effective on the 19th day of March, 2015
PROVIDED, that regardless of the number of years this bond is in force, the Surety shall not be liable
hereunder for a larger amount, in the aggregate, than the penal sum listed above
PROVIDED FURTHER, that the Surety may terminate its liability hereunder as to future acts of the Principal at
any time by giving thirty (30) days written notice of such termination to the Obligee
SIGNED, SEALED AND DATED this 19th day of March, 2015
S-2151A (02-00)
By
Chevron U.S.A., INC.
ncipal jetii ►vt, �,w�en .,fk cr+ T►' �c ,
Liberty Mutual Insurance Company
By (:
James Ross, Attorney -in -Fact
S-2151A (02-00)
A Notary Public or other officer completing this certificate venfies only the identity of the
individual who signed the document to which this certificate is attached, and not the truthfulness,
accuracy, or validity of that document
State of California
County of San Francisco
LIAR 19 2015
On before me, Kelly Rowley, Notary Public, personally appeared
James Ross who proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is/nr-e subscribed to the within instrument and acknowledged to me that he/she4iey
executed the same in his/heBheff authorized capacity(ies), and that by his/hef4heir signature(s)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed
the mstrument.
I certify under PENALTY OF PERJURY under the laws of the
State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal
Signature L t �� A z , , —
Kelly Rowle , Signature of Aotary Public
QKELLY ROWLEYCOMM #2040580zNotary Public California o
Los Angeles County
MY Comm Expires Sep, 7, 2017
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document
State of California
County of Contra Costa )
On March 20, 201S before me, Kim Do, Notary Public
Date Here Insert Name and Title of the Officer
personally appeared
James E Lawrence
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(S) is/aF&
subscribed to the within instrument and acknowledged to me that he/bheA4ey executed the same in
his/her,the►r authorized capacity0es), and that by hisA;aW#ww signature(s) on the instrument the person*,
or the entity upon behalf of which the person(s) acted, executed the instrument
KIM DO
��..��- a �Commission # 1951686
a =ems; Notary Public - California z
Z
Z -� D
�'"' Contra Costa County
My Comm Expires Sep 10 2015'
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
is true and correct
WITNESS my hand and official seal
Signature
Signature of Notary Public
Place Notary Seal Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document
Description of Attached Docpm#
on 0013224-City of Huntington Beach -
Title or Type of Document r kh R4 Document Date
Number of Pages 2 Signer(s) Other Than Named Above No Other Si
Capacity(ies) Claimed by Signer(s)
Signer's Name James E Lawrence
N Corporate Officer — Title(s) Assistant Treasurer
❑ Partner — ❑ Limited ❑ General
❑ Individual ❑ Attorney in Fact
❑ Trustee ❑ Guardian or Conservator
❑ Other
March 19, 2015
ners
Signer's Name
❑ Corporate Officer — Title(s)
❑ Partner — ❑ Limited ❑ General
❑ Individual ❑ Attorney in Fact
❑ Trustee ❑ Guardian or Conservator
❑ Other
Signer Is Representing Signer Is Representing
Chevron U S A
02014 National Notary Association - www NationalNotary org - 1-800-US NOTARY (1-800-876-6827) Item #5907
THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND.
This Power of Attorney limits the acts of those named herem, and they have no authority to bind the Company except in the manner and to the extent herein stated
Certificate No 61653so
Amencan Fire and Casualty Company Liberty Mutual insurance Company
The Ohio Casualty Insurance Company West American Insurance Company
POWER OF ATTORNEY
KNOWN ALL PERSONS BY THESE PRESENTS ThatAmencan Fire & Casualty Company and The Ohio Casualty Insurance Company are corporations duly organized under the laws of
the State of New Hampshire, that Liberty Mutual Insurance Company is acorporation duly organized under the laws of the State of Massachusetts, and WestAmencan Insurance Company
is a corporation duly organized under the laws of the State of Indiana (herein collectively called the "Companies"), pursuant to and by authority herein set forth, does hereby name, constitute
and appoint, -Ashmf Elrrasry B Alemari Daravy" Mady� Edward Q. Sp ,ctor lames Ross KID Conrad Kristine Mendez, Lisa K. Grail. Marina Tapia
Misty Wright Paul Rodriguez Simone Gerhard Tracy Aston
all of the city of Los Angeles state of CA each individually if there be more than one named, its true and lawful attomey-in-fact to make, execute, seal, acknowledge
and deliver, for and on its behalf as surety and as its act and deed, any and all undertakings, bonds, recognizances and other surety obligations, in pursuance of these presents and shall
be as binding upon the Companies as if they have been duly signed by the president and attested by the secretary of the Companies in their own proper persons
IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or official of the Companies and the corporate seals of the Companies have been affixed
thereto this 12th day of June_ 2013
Y American Fire and Casualty Company
,a The Ohio Casualty Insurance Company
1. \
a i k" .
Liberty Mutual Insurance Company
West American Insurance Company
11115
By
C STATE OF WASHINGTON SS - Gregory VV Davenport, Assistant Secretary
i ,COUNTY OF KING "
eo
On this 12th day of June 2013 before me personally appeared Gregory W Davenport, who acknowledged himself to be the Assistant Secretary of American
m Fire and Casualty Company, Liberty Mutual Insurance Company, The Ohio Casualty Company, and West American Insurance Company, and that he, as such, being authorized so to do,
execute the foregoing instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer
ro -
> IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my notarial seal at Seattle, Washington, on the day and year first above written
- By
00) KID Riley, Not Public
This Power of Attomey is made and executed pursuant to and by authority of the following By-laws and Authorizations of American Fire and Casualty Company, The Ohio Casualty Insurance
Company, Liberty Mutual Insurance Company, and West American Insurance Company which resolutions are now in full force and effect reading as follows
ARTICLE IV —OFFICERS = Section 12 Power of Attorney Any officer or other official of the Corporation authorized for that purpose in writing by the Chairman or the President, and subject
to such limitation as the Chairman or the President may prescribe, shall appoint such attomeys-in-fact, as may be necessary to act in behalf of the Corporation to make, execute, seal,
acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations Such attorneys -in -fact, subject to the limitations set forth in their respective
powers of attorney, shall have full power to bind the Corporation by their signature and execution of any such instruments and to attach thereto the seal of the Corporation When so
executed, such instruments shall be as binding as if signed by the President and attested to by the Secretary Any power or authority granted to any representative or attomey-in-fact under
the provisions of this article may be revoked at any time by the Board, the Chairman, the President or by the officer or officers granting such power or authority
ARTICLE )all — Execution of Contracts — SECTION 5 Surety Bonds and Undertakings Any officer of the Company authorized for that purpose in writing by the chairman or the president,
and subject to such limitations as the chairman or the president may prescribe, shall appoint such attorneys -in -fact, as may be necessary to act in behalf of the Company to make, execute,
seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations Such attorneys -in -fact subject to the limitations set forth in their
respective powers of attorney, shall have full power to bind the Company by their signature and execution of any such instruments and to attach thereto the seal of the Company When so
executed such instruments shall be as binding as if signed by the president and attested by the secretary
Certificate of Designation — The President of the Company, acing pursuant to the Bylaws of the Company, authorizes Gregory W Davenport, Assistant Secretary to appoint such
attomeys-in-fact as may be necessary to act on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and
other surety obligations
Authorization — By unanimous consent of the Company's Board of Directors, the Company consents that facsimile or mechanically reproduced signature of any assistant secretary of the
Company, wherever appearing upon a certified copy of any power of attorney issued by the Company in connection with surety bonds, shall be valid and binding upon the Company with
the same force and effect as though manually affixed
I, David M Carey, the undersigned, Assistant Secretary of American Fire and Casualty Company, The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West
American Insurance Company do hereby certify that the original power of attorney of which the foregoing is a full, true and correct copy of the Power ofAttomey executed by said Companies,
is in full force and effect and has not been revoked
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this day of 20—
MA
By
A David M Carey, Assistant Secretary
LMS 12873 092012
71 of 500
ATTACHMENT #4
Chevron
Frederick]. Savage Chevron U S.A. Inc.
Director, Risk Management 6001 Bollinger Canyon Rd
San
(San Ramon) San Ramon,
CA 94583
Insurance Division Tel 925 842 8086
Fax 925 842 6007
FSavage@chevron com
February 9, 2015
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Franchise Agreement between the City of Huntington Beach and
Chevron U.S.A. Inc. Pursuant to City's Pipeline Franchise Ordinance
Dear Sir/Madam
Chevron U S A Inc ("Chevron"), is covered for property and liability exposures through major
worldwide insurance programs with large deductibles Losses that fall within these deductible levels,
including those for which Chevron is contractually liable, are self-administered and paid through the
financial resources of Chevron
This is to confirm that the insurance requirements of the subject agreement including Section 14(b) fall
within Chevron's deductible levels Therefore, losses for which Chevron is required to insure under the
agreement will be covered to the extent of the agreement's mimmum insurance requirements and
administered as described above
This further confirms that Workers' Compensation insurance requirements for Chevron companies are
satisfied through insured/self-insured programs depending upon the location of the employee's
workplace
This letter is in lieu of a certificate of insurance and will remain valid until the expiration or earlier
termina ion of the subject agreement (or any renewal thereon
Sin
c y,
�--�
Frederick J Savage
cc Ray Riddle
FS/bjb APPROVED AS TO FORM
By:
Michael Gates, City Attorney
City Of Huntington Beach
2000 Main Street ♦ Huntington Beach, CA 92648
(714) 536-5227 ♦ www.huntingtonbeachea.gov
Office of the City Clerk
Joan L. Flynn, City Clerk
October 8, 2015
Chevron USA, Inc
Attn Frederick J Savage
6001 Bollinger Canyon Rd
San Ramon, CA 94583
Dear Mr Savage
Enclosed for your records is a duplicate original of the fully executed "Franchise Agreement
Between The City of Huntington Beach And Chevron U S A Inc Pursuant to City's Pipeline
Franchise Ordinance "
Sincerely,
Joan L Flynn, CIVIC
City Clerk
J F pe
Enclosure
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RECEIVED/BY
7
(Name)
(Date)
CITY CLERK RECEIPT COPY
Return DUPLICATE to
City Clerk's Office
after signing/dating
,► CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICATION
TO City Treasurer
FROM City Clerk
DATE ® 16
SUBJECT Bond Acceptance
I have received the bonds for
CAPITAL PROJECTS (Includes CC's and MSC's)
Performance Bond No.
Payment Bond (Labor and Materials) Bond No.
Warranty or Maintenance Bond No.
TRACT "AND DEVELOPMENT
Faithful Performance Bond No.
Labor and Material Bond No.
Guarantee and Warranty Bond No.
Monument Bond No.
Franchise Bond No.
Letter of Credit Bond No.
Other
Re: Tract No
CC No
MSC No
Other No.
,�
g /forms/bond transmittal to
(Company
Approved
(Coup Appro al Date)
Agenda Item No c�!
City Clerk Vault No rJ'�
SIRE System ID No