Loading...
HomeMy WebLinkAboutPipeline Franchises - Ordinance 3889 - Amend Chapter 3.44 of (2) Huntington Beach Independent has been adjudged a newspaper of general circulation in Huntington Belch and Orange County by Decree of the Superior Court of Or-inge County State of California under date of Aug 24 1994 clse A50479 — — -- CITY OF HUNTINGTON BEACH PROOF OF IEGAIHOTICE ORDINANCE NO 3889 Adopted by the PUBLICATION City Council on AUGUST 16 2010 "AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH STATE OF CALIFORNI A ) AMENDING CHAPTER 1®1� 1� 3 44 OF THE HUNTINGTON BEACH SS MUNICIPAL CODE RELATING TO PIPELINE FRANCHISES" COUNTY OF ORANGE SYNOPSIS IN 1978 THE CITY OF HUNTINGTON BEACH HUNTINGTON BEACH EN 44 OF am the Citizen of the United States and a ACTED CHAPTERMUNICIPAL CODE THE MUNICIPAL CODE � (HBMC) TO REGULATE resident of the County aforesaid, I am over THE OPERATION UCFION PIPE AND the age of eighteen years, and not a party LINES WITHIN THE to or interested in the below entitled matter CITY S BORDERS AMA 10RITY OF THE CHAPTER I am a principal clerk of the HUNTINGTON is DEDICATED TD THE ,REGULATION OF PETRO LEUM PIPELINE FRAN BEACH INDEPENDENT, a newspaper of �REGULATED CHISES HOWEVER OTH ER PIPELINES ARE ALSO general circulation, printed and published in BY THIS the City of Huntington Beach County of NOTPTER BEEN UPDATED IN ANY Orange, State of California, and the I SINCE UIITSANTIVE ADOPTONY MANY OTHE CHANGES attached Notice is a true and complete copy I REFLECTFA MODERNIZED WAY OF DOING BUSI as was printed and published on the N SS AND ARE MORE IN LINE WITH OTHER following date(s) SOUTHERN CALIFORNIA CITIES PIPELINE ORDI NANCES THE CITY HIRED A PE TROLEUM PIPELINE CONSULTANT TO RE t SEARCH ISSUES RELAT ED TO THE CITY S CUR RENT FRANCHISE AGREEMENTS N August 26, 2010 REQU REMENTSAODFI CHAPTER 3 44 IT WAS DISCOVERED THAT POR TIONS OF CHAPTER 344 WERE IN NEED OF SEV ERAL REVISIONS IN CLUDING AN INCREASE IN PIPELINE FRANCHISE FEES THE CHANGES ARE declare, under penalty of perjury, that the BASED ON INDUSTRY ACCEPTED METHODS foregoing is true and correct THAT HAVE BEEN CON SISTENTLY USED BY OTHER CITIES PASSED AND ADOPTED by the City Council of the City of Huntington Executed on August 27 2010 Beach at a regular meet mg held August 16 2010 at Costa Mesa, California �by the following roll call vote AYES Carchio Coerper Hardy Green Bohr Han .ti sen NOES None ABSTAIN None �vv � ABSENT Dwyer THE FULL TEXT OF THE Signature ORDINANCE IS AVAIL ABLE IN THE CITY CLERK S OFFICE This ordinance Is effec tive 30 days after adoption CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH CA 92648 714 S36 S227 JOAN L FLYNN CITY CLERK Published Huntington Beach Independent Au gust26 2010 084 922 7�� ad,�D Fo/- Council/Agency Meeting Held _ 11,-A. cWJ0 Deferred/Continued to-�� Ob,� Py '01 pp oved ❑ Cond ti Wally Approved ❑ Denied fit Cle s Sig re Council Meeting Date 7 August 2 2010 Department ID Number ED 10-025 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO Honorable Mayor and City Council Members SUBMITTED BY Fred A Wilson City Administrator PREPARED BY Jennifer McGrath City Attorney Stanley Smalewitz Economic Development Director SUBJECT Approve for introduction Ordinance No 3889 amending Chapter 3 44 of the Huntington Beach Municipal Code (HBMC) relating to Pipeline Franchises Statement of Issue City Council is requested to adopt an ordinance amending Chapter 3 44 of the Huntington Beach Municipal Code (HBMC) Financial Impact Future increase in revenue of approximately $60 000 per year to the General Fund Recommended Action Motion to After the City Clerk reads by title approve for introduction Ordinance No 3889 An Ordinance of the City of Huntington Beach Amending Chapter 3 44 of the Huntington Beach Municipal Code Relating to Pipeline Franchises Alternative Action(s) Do not adopt Ordinance No 3889 An Ordinance of the City of Huntington Beach Amending Chapter 3 44 of the Huntington Beach Municipal Code Relating to Pipeline Franchises -595- Item 21 - Page 1 REQUEST FOR COUNCIL ACTION MEETING DATE 8/2/2010 DEPARTMENT ID NUMBER ED 10-025 Analysis In 1978 the City of Huntington Beach enacted Chapter 3 44 of the Municipal Code (HBMC) to regulate the construction and operation of pipelines within the City s borders A majority of the Chapter is dedicated to the regulation of petroleum pipeline franchises however other pipelines are also regulated by this Chapter HBMC Chapter 3 44 has not been updated in any substantive way since its adoption Many of the changes reflect a modernized way of doing business and are more in line with other Southern California cities pipeline ordinances Pursuant to the requirements of Huntington Beach Municipal Code (HBMC) Chapter 3 44 if a company would like to install and operate a pipeline (oil or otherwise) within the City right-of- way it must first obtain a Franchise Agreement The Franchise Agreement sets forth terms and conditions that the franchisee must abide by including the payment of a franchise fee In addition the HBMC Chapter 3 44 regulates many aspects of the pipeline operation including construction operation and removal of a pipeline Over the last few decades the City has granted franchises to various pipeline companies Many of the pipelines were built over fifty years ago and since that time have changed or transferred ownership and/or have ceased to operate While the conditions of the existing pipelines have changed HBMC Chapter 3 44 has not had significant changes since 1984 Minor changes were made to the Chapter in 2009 however the proposed changes were not meant to address the variety of new issues related to oil pipeline franchises While the current Municipal Code attempts to regulate the health safety and financial concerns that may result when petroleum and other franchises exist in the public right-of-way updated regulations are needed The Economic Development Department has met with the City Attorneys Office Public Works and Finance Departments to address the issues that have arisen regarding the pipeline franchises In addition the City hired a petroleum pipeline consultant to research issues related to the City s current Franchise Agreements and requirements of Chapter 3 44 As part of that research as well as suggestions by City departments it was discovered that portions of Chapter 3 44 are in need of several revisions including an increase in pipeline franchise fees The code changes have been reviewed and approved by the Public Works Department Finance Department Economic Development Department as well as the City Attorneys office Some of the proposed changes include the following (1) Decrease the term of the Franchise Agreement from thirty (30) to fifteen (15) years (2) Increase the liability insurance requirement from $1 million to $5 million (3) Add a requirement that franchisee maintain Environmental Impairment Liability Insurance (4) Increase the performance bond amount from $10 000 to $100 000 (5) Add a requirement that the franchisee pay fees when abandoning pipelines (6) Increase the amount of the franchise fee as well as the method of calculation (The proposed fees are now close in fee structure with the City of Long Beach) and (7) Change to the methodology used in calculating annual increases including using the CPI (Consumer Price Index) instead of the current PPI (Producer Price Index) A single base index will be standard for all future franchises and will affect any new or renewed franchises and all franchisee payments will eventually be calculated in the same fashion This will streamline the calculation process and maintain consistency among all franchisees in the future as they come up for renewal Item 21 - Page 2 -596- REQUEST FOR COUNCIL ACTION MEETING DATE 8/2/2010 DEPARTMENT ID NUMBER ED 10-025 The City currently has four active Franchise Agreements in place with Pacific Pipeline Pacific Terminals and two franchises with Chevron/Texaco two of these will be up for renewal in the next few years City staff is currently negotiating the renewal of two expired franchises covering existing pipelines under new ownership These changes are based on industry accepted methods that have been consistently used by other cities The City Attorney is recommending substantive revisions to Chapter 3 44 to better address new issues and changes that have arisen over the 32 years since its adoption Environmental Status Exempt from CEQA pursuant to section 15061(b)(3) Strategic Plan Goal Maintain financial viability and our reserves Attachment(s) ® . . 1 Ordinance No 3889 amending Chapter 3 44 of the Huntington Beach Municipal Code relating to Pipeline Franchises 2 Legislative Draft of Chapter 3 44 -597- Item 21 - Page 3 ATTACHMENT # 1 ORDINANCE NO 3889 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 3 44 OF THE HUNTINGTON BEACH MUNICIPAL CODE RELATING TO PIPELINE FRANCHISES The City Council of the City of Huntington Beach does hereby ordain as follows SECTION 1 Chapter 3 44 of the Huntington Beach Municipal Code is hereby amended to read as follows Chanter 3 44 PIPELINE FRANCHISES (2319 10/78 2676 2/84 3850 1/10) Sections I GENERAL PROVISIONS AND DEFINITIONS 3 44 010 Short title 3 44 020 General provisions 3 44 025 Franchise required when 3 44 030 Pole lines 3 44 040 Definitions 3 44 050 Term 3 44 060 Franchise agreement 3 44 070 Nonexclusive franchise 3 44 080 Maps 3 44 090 Insurance 344 100 Liability insurance 3 44 105 Environmental Impairment Liability Insurance 3 44 110 Workers' compensation insurance 3 44 120 Insurance--Filing 3 44 130 Faithful performance bond 344 160 Forfeiture 3 44 170 Value of franchise 3 44 180 State highways 344 190 Eminent domain 3 44 200 Publication date 3 44 210 Assignment 3 44 220 Hold harmless 3 44 230 Standards 3 44 231 Conflicting Improvements 3 44 240 Defective facilities 3 44 250 Hazardous substances 3 44 251 Damage to Public Property Generally II COMPENSATION 344252 Public Utility Not Transmitting Oil or Products Thereof 07 1267 005h0099 I Ordmance No 3889 3 44 253 Length 3 44 255 Public Utility Transmitting Oil or Products Thereof 3 44 256 Non-Public Utility Franchises 3 44 260 Basic granting fee 3 44 270 Base annual fee 3 44 271 Payments to City 3 44 280 Base construction charges 3 44 290 Adjustments--Base annual fee 3 44 300 Proration of payments 3 44 310 Records III CONSTRUCTION 3 44 320 Construction requirements 3 44 330 New installation or replacement 3 44 340 Permits 3 44 350 Work on and restoration of streets 3 44 360 Failure to comply timely 3 44 370 Completion statement 3 44 371 Responsibility 3 44 380 Facilities 3 44 386 Shoring 3 44 390 Ordinary repair 3 44 400 Breaks or leaks 3 44 410 Emergency equipment 3 44 420 Removal or abandonment of facilities 3 44 430 Failure to comply 3 44 440 Abandonment "m place" conditions 3 44 447 Operation after Franchise Expiration—Revocable License IV SPECIAL PROVISIONS FOR OIL PIPELINES 3 44 450 Rights granted 3 44 460 Materials used 3 44 470 Approvals 3 44 480 Reports 3 44 490 Payments due 3 44 500 Cost of relocation 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 07 1267 005/�0099 2 Ordmance No 3889 in addition to those rules regulations,restrictions, terms and provisions set forth in the particular franchise agreement (2319 101-78) 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 to 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 (38501110) 3 44 030 Pole lanes Nothing in this chapter or in any francluse agreement granting such a franchise shall be construed to permit the grantee to construct new poles or other facilities aboveground (231910/78) 3 44 040 Definitions For the purpose of this chapter the following terms phrases words and their derivations shall have the meaning given herein (a) "Council" shall mean City Council of the Cityof Huntington Beach (b) "Code" shall mean the Huntington Beach Municipal Code (c) "Department" shall mean the Public Works Department of the City of Huntington Beach (d) "Director" shall mean the Public Works Director of the City of Huntington Beach (e) "Franchisee" or "grantee" shall mean the person to whom the franchise is granted, and any person to whom it is lawfully assigned (f) "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 (g) "Franchise payment period" shall mean the time period between the effective date of the franchise agreement granting the franchise and December 31 of the same calendar year, and each calendar year thereafter during the life of the franchise (h) "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 of that calendar year and each calendar year thereafter,during the life of the franchise (1) "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 07 1267 OWh0099 3 Ordinance No 3889 (k) "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 (1) "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 (m)"Person" shall mean any individual,person, firm partnership or corporation (n) "Section" shall mean a section of the Huntington Beach Municipal Code,unless some other code or statute is mentioned (o) "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 (2319 10/78) (p)"Shall'is mandatory, 'May is permissive 3 44 050 'Term Unless the franchise agreement granting the franchise provides otherwise the term of the franchise shall be fifteen(15) years (2319 10/78) 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 thirty(30)days after the passage of the ordinance granting the franchise,file with the City Clerk of the City of Huntington 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) 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) 3 44 080 Maps Within ninety(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 1 o 78) 3 44 100 Liability insurance The policy of liability insurance 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 ansmg 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 insurance in the amount of five million dollars ($5,000 000) 07 1267 005/50099 4 Ordmance No 3889 (c) Be noncancellable without thirty(30)days written notice thereof directed to the City of Huntington Beach (2319-10f78) 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 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 should 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 this franchise 3 44 110 Workers' compensation insurance 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 thirty(30)days written notice thereof directed to the City of Huntington Beach (2319 10/78) 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 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 07 1267 005h0099 5 Ordmance No 3889 (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,judgments 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) 3 44130 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 One Hundred Thousand Dollars($100 000) 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 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 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 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 ten(10)days after written notice to do so from the Director (231910l78) 3 44 160 Forfeiture The franchise is granted and shall be held and enjoyed upon each and every condition contained in the franchise agreement, including such conditions contained herein 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 thirty(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 (5) 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 highways 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) 07 1267 005h0099 6 Ordmance No 3889 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) 3 44 200 Publication costs The grantee shall pay to the City within thirty(30)days after receiving a statement therefore all advertising and publishing costs, including the cost of publishing the granting of the franchise, if necessary (2319 10l78) 3 44 210 Assignment 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 thirty(30)days after the effective date of such sale,transfer, assignment or lease,then, upon the expiration of said thirty(30)days, the franchise shall be subject to forfeiture and the Council may without notice, revoke the franchise As a condition to the granting 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 fifty(50)percent 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) 3 44 220 Hold harmless 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 (2319 10R8) 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 ansmg 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 City shall approve selection of franchisee's counsel City shall be reimbursed for all costs and attorney's fees incurred by City in enforcing this obligation This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable The 07 1267 00�,/,0099 7 Ordmance No 3889 policy limits do not act as a limitation upon the amount of indemnification to be provided by franchisee 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 10178) 3 44 231 Conflicting Improvements If the City or any other public entity constructs or maintains any storm drain, sewer structure or other facility or impfovement under or across any facility of the grantee maintained pursuant to the ordinance,the grantee 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 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 ten(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) 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) 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 ten (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 07 1267 005/)0099 8 Ordmance No 3889 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 II COMPENSATION 3 44 252 Public Utility Not Transm►ttinj!Oil or Products Thereof 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 thirty(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), ansing from the use,operation or possession of the franchise 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 all service connections shall be excluded in determining such lengths 3 44 255 Public Utility Transmittine 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 thirty (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 Pi ehnes with an Internal Diameter of Base hate Per Lineal Foot 0-4 088 6 132 8 176 10 220 12 264 14 308 16 352 18 396 20 440 22 484 24 528 26 572 28 616 30 660 07 1267 00�/50099 9 Ordinance No 3889 For pipelines with an internal diameter not listed above,the fees shall be in the same proportion to the fees of a twelve (12)-inch-diameter pipe as the diameter of the unlisted pipe is to twelve(12) inches The amount of the fee or charge provided for in this paragraph 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)) 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 3 44 260 Basic granting 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 10l78 2676 2/84) 3 44 270 Base annual fee A base annual fee shall be paid by franchisee within thirty(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 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 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 07 1267 005h0099 10 Ordmance No 3889 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 often(10) percent per month or fraction thereof beyond the payment date shall be charged,but in no event shall said penalty exceed fifty(50)percent The City reserves the right to adjust the base fees established hereunder at any time after the effective date of the ordinance 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 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 10178 2676 2184) 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 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 herein 07 1267 005/50099 11 Ordmance No 3889 (d)Publication and Administrative Issuance Costs The franchisee shall pay to the City within thirty(30)days after receiving a statement therefore, 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 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) 3 44 310 Records Franchisee shall keep and preserve for a period of five(5)years subsequent to the date of the most recent franchise fee determination all the records necessary to determine the amount of such franchise fee 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 County of Orange (2319 10/78) 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) 3 44 330 New installation or replacement 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 decision shall be final and binding on the franchisee (2319 10/78) 3 44 340 Permits 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 07 1267 00�,h0099 12 Ordinance No 3889 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 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 10178) 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(3)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, ten(10)days after notice therefore 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) 3 44 360 Failure to comply timely 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 five hundred dollars ($500)per day as liquidated damages for each day construction extends beyond the time specified in the permit Whenever the franclsee 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 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) 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) 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 07 1267 00�/50099 13 Ordmance No 3889 guarded during any work authorized pursuant to the franchise or the failure to neglect of the franchisee to properly perform,maintain,or protect any phase of such work 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) 3 44 386 Shoring 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 City or by any successor agency 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 Departmentprovided however,that the franchisee shall first obtain an excavation permit from the Department for the doing of any such work (2319 ions) 3 44 391 Relocation of Pipelines and Facilities 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 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 thirty(30) days from receipt of such written request Franchisee shall thereafter diligently prosecute such work to completion The City reserves the right for itself and all other public entities which are now or may later be established, to lay, construct repair, alter relocated 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 thirty (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 07 1267 005/30099 14 Ordmance No 3889 improvements to a permanent or temporary location in said streets to be approved by the Director and thereafter diligently prosecute such work to completion 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) 3 44 410 Emergency equipment At all times during the term of this franchise the franchisee shall maintain or arrange for on a twenty-four(24)hour a day basis adequate emergency equipment and a properly trained emergency crew within a radius of twenty-five (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 10l78) 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 thirty (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 effected and shall then notify the franchisee of his 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 thirty(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 ninety(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 Amount per Lineal Foot 0-12 inches $15 00 14-18-inches $22 00 20-30 inches $28 00 07 1267 005/50099 15 Ordmance No 3889 (2319 10/78) 3 44 430 Failure to comply (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 thirty(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 determination The franchisee shall thereafter comply with the provisions of subsection(b)of section 3 44 420 (2319 10/78) 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 City for the cost of such removal (2319 10/78) 3 44 447 Operation after Franchise Expiration—Revocable License If a franchise is to expire within sixty 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 one hundred twenty(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) 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 07 1267 005/50099 16 Ordmance No 3889 proper or as superseded by statute Such additional terms and conditions shall be expressed by resolution (2319 10178) 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 (231910178) 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 (2319-10178) 3 44 480 Reports The franchisee during the life of the franchise, within sixty(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 lines 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 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 (2319-10n8) (c) All payments should be mailed to the City Treasurer City of Huntington Beach P O Box 711 Huntington Beach, CA 92648-0711 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 10n8) 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 07 1267 005/50099 17 Ordmance No 3889 SECTION 2 This ordinance shall become effective 30 days after its adoption PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16 t h day of August , 2010 lot a r ATTEST INITIATED AND APP OV JED City Clerk Director of Ec no Development REVIE ND APPROVED APPROVED AS TO FORM ty mistrator �. City ttorney 07 1267 005/50099 18 Ord No 3889 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 August 2,2010,and was again read to said City Council at a regular meeting thereof held on August 16,2010, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council AYES Carchio, Coerper, Hardy, Green Bohr, Hansen NOES None ABSENT Dwyer ABSTAIN None 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 Fountain Valley Independent on August 26 2010 In accordance with the City Charter of said City Q00-41d 0'(JVW� Joan L Flynn,City Clerk ty Clerk and ex-office Clerk Senior Deputy City Clerk of the City Council of the City of Huntington Beach, California ATTACHMENT #2 KEY INSERTIONS Double underline DELETIONS Stfike r ORDINANCE NO 3889 LEGISLATIVE DRAFT Chapter 3 44 PIPELINE FRANCHISES (2319 10/78 2676 2184 3850 1/10) Sections I GENERAL PROVISIONS AND DEFINITIONS 3 44 010 Short title 3 44 020 General provisions 3 44 025 Franchise required when 3 44 030 Pole lines 3 44 040 Definitions 3 44 050 Term 3 44 060 Franchise agreement 3 44 070 Nonexclusive franchise 3 44 080 Maps 3 44 090 r.,s,,.anee 3 44 100 Liability insurance 3 44 105 Ens ironmental Impairment Liabilit-y Insurance 3 44 110 Workers' compensation insurance 3 44 120 & n * ^��Insurance--Filing 344 130 Faithful performance bond 1 2,41 150 Length 344 160 Forfeiture 3 44 170 Value of franchise 3 44 180 State highways 3 44 190 Eminent domain 3 44 200 Publication date 3 44 210 Assignment 3 44 220 Hold harmless 3 44 230 Standards 3 44 231 Conflicting, Improx ements 3 44 240 Defective facilities 3 44 250 Hazardous substances 3 44 251 Damage to Public Property Generally II COMPENSATION 3 44 252 Public Utility-Not Transmitting Oil or Products Thereof 3 44 253 Length 3 44 255 Public Ltility Transmitting Oil or Products Thereof 3 44 256 Non Public Utilitv Franchises 3 44 260 Basic granting fee 3 44 270 Base annual fee 3 44 271 Payments to CitX 3 44 280 Base construction charges 3 44 290 Adjustments--Base annual fee 07 1267 005/47102 1 KEY INSERTIONS Double underline DELETIONS &44e4ffeugh-- 3 44 300 Proration of payments 3 44 310 Records III CONSTRUCTION 3 44 320 Construction requirements 3 44 330 New installation or replacement 3 44 340 Permits 3 44 350 Work on and restoration of streets 3 44 360 Failure to comply timely 3 44 370 Completion statement 344 371 Responsibility 3 44 380 ApptiAeiiaii Facilities 3 44 386 Shoring 3 44 390 Ordinary repair 3 44 400 Breaks or leaks 3 44 410 Emergency equipment 3 44 420 Removal or abandonment of facilities 3 44 430 Failure to comply 3 44 440 Abandonment "in place" conditions 3 44 447 Operation after Franchise Expiration—Revocable License IV SPECIAL PROVISIONS FOR OIL PIPELINES 3 44 450 Rights granted 3 44 460 Materials used 3 44 470 Approvals 3 44 480 Reports 3 44 490 Payments due 3 44 500 Cost of relocation 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 eAyCity-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 ei-t-�Cit-v 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) 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, 07 1267 005/47102 2 KEY INSERTIONS Double underline DELETIONS &nkedwough- 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 (231910/78) 3 44 040 Definitions For the purpose of this chapter, the following terms, phrases, words and their derivations shall have the meaning given herein (a) "Council" shall mean City Council of the eft�-City-of Huntington Beach (b) "Code" shall mean the Huntington Beach Municipal Code (c) "Department" shall mean the Public Works Department of the c-tyCity of Huntington Beach (d) "Director" shall mean the Public Works Director of the e+t-6City of Huntington Beach (e) "Franchisee" or "grantee" shall mean the person to whom the franchise is granted, and any person to whom it is lawfully assigned (f) "Facilities" or "appurtenances" shall mean all property owned or used by of-the franchisee to 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 onginalIN grar+ted 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 (g) "Franchise payment period" shall mean the time period between the effective date of the franchise agreement granting the franchise and December 31 of the same calendar year, and each calendar year thereafter, during the life of the franchise (h) "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 of that calendar year, and each calendar year thereafter, during the life of the franchise (1) "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 (k) "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 (1) "Minor street" shall mean all streets in the ei-�vQty other than those designated as "major" or "secondary highways" in the circulation element of the Huntington Beach General Plan (m)"Person" shall mean any individual, person, firm, partnership or corporation 07 1267 005/47102 3 KEY INSERTIONS Double underline DELETIONS &ftkedffeug1+- (n) "Section" shall mean a section of the Huntington Beach Municipal Code, unless some other code or statute is mentioned (o) "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 (2319 10/78) (p) Shall is mandatory, "May" is permissive 3 44 050 Term Unless the franchise agreement granting the franchise provides otherwise, the term of the franchise shall be fifteen (15) tA e ty r:<.o (25`years (2319 10/78) 3 44 060 Acceptance of Franchise agreement The franchisee shall enter into a written agreement with the ett�,afCityoof Huntington Beach which grants the franchise and sets forth the terms and provisions therein The franchisee shall, within thirty(30) des after the passage of the ordinance granting the franchise, file with the City Clerk of the City of Huntington 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) 3 44 070 Nonexclusive franchise The granting of the franchise shall not be construed to prevent the e--tvCity 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 eftyCity,now in effect or which may be hereafter adopted which are not inconsistent with the terms of the franchise (2319 10/78) 3 44 080 Mans Within ninety(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 depai4ffient Department showing the accurate "as built" location, depth, and size of the facilities or appurtenances so laid, removed or abandoned (2319 10/78) Knee Comfnissionef of Gakf R 44-o� 3 44 100 Liability insurance The policy of liability insurance required by this chapter shall be issued to franchisee and name the Citv 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 insurance in the amount of one milho„ dellafs five million dollars ($5,000,000) (c) Be noncancellable without thirty(30) days written notice thereof directed to the Ct of Huntington Beach (2319 10/78) 3 44 105 Environmental Impairment Liability Insurance The policy of environmental impairment liability insurance or other environmental insurance policy as qpproved at the sole 07 1267 005/47102 4 KEY INSERTIONS Double underline DELETIONS -'1 11 ig1 discretion of the Cit a� ,required by this Chapter shall insure liability for environmental impairment including cleanup cost endorsed for Sudden and Accidental contamination or pollution Such cot erase shall be in an amount and torm to meet all applicable state and federal requirements but in no eN ent less than fig e million dollars (S5,000,000)per occurrence (a) If written with an annual aggregate limit the policy limit should be three (3) times the above- required occurrence limit (b) If written on a claims made form such insurance shall be endorsed to pro`ide an extended reporting period of not less than two (2)years following termination or cancellation of this ti anchise 3 44 110 Workers' compensation insurance 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 aite-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 slpAe 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 Getipx-4-the City of Huntington Beach (2319 10/78) 3 44 120 W f-�n � 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 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 T4e-the insured shall also agree to defend, indemnify and hold harmless the eityCity of Huntington Beach 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 Section 144 220 07 1267 005/47102 5 KEY INSERTIONS Double underline DELETIONS S4frke6wougJr 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) 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 Cler-k Treasurer a corporate surety bond approved by the City Attorney running to the Citt in the penal sum of to *heu nfid dalln , ,S One Hundred Thousand Dollars (S100,000) 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 ten (10) datis after written nonce to do so from the City Comer-kTreasurer At such time, the bond shall be increased bl 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 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 and monel 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 ten(10) days after written notice to do so from the Director (2319 10/78) 9 ffanehfsee iqla�'deposit With the T-1 ffeetaf afird assign to the eity savings and loan eefufieates of �JI LZTie J—Of .�a4 n 11.e c an p 10/7 t234�8) 3 44 160 Forfeiture The franchise is granted and shall be held and enjoyed upon each and every condition contained in the franchise agreement, including such conditions contained herein 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 thirty(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 (5) 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) 07 1267 005/47102 6 KEY INSERTIONS Double underline DELETIONS Stftked-ffeugh- 3 44 180 State highways 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 eft-yCity, the state shall succeed to all rights reserved to the eityCity by the franchise (2319 10/78) 3 44 190 Eminent domain No franchise granted by the ettyCity shall in any way impair or affect the right of the ettyCity 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 ettyClty's right of eminent domain in respect to any public utility (2319 10178) 3 44 200 Publication costs The grantee shall pay to the eityClty within thirty (30) days after receiving a statement therefore, all advertising and publishing costs, including the cost of publishing the granting of the franchise, if necessary (2319 10/78) 3 44 210 Assignment 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 thirty (30) days after the effective date of such sale, transfer, assignment or lease, then, upon the expiration of said thirty(30) days, the franchise shall be subject to forfeiture and the Council may, without notice, revoke the franchise As a condition to the granting 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 fifty (50) percent of the voting stock of an-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) 3 44 220 Hold harmless The grantee shall be responsible to the eityCgty and shall defend, indemnify and hold harmless the ettyCity 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 (2319 10/78) 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, liowever caused, including those resulting_frorii 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, an,,one directly any of them or anyone for whose acts and of them may be liable, including but not limited to coneurrent actin e or passiN e negligence except where caused by the acti-ve negligence, sole negligence, or willful misconduct of the City Franchisee shall conduct all defense at its sole cost and expense and Citvishall apprw e selection of franchisee's counsel 07 1267 005/47102 7 KEY INSERTIONS Double underlme DELETIONS Stfi1'0 Citv shall be reimbursed for all costs and attorney's tees incurred by City in enforcing this obligation This indemnity shall apply to all claims and]lability regardless of whether any insurance policies are qpplicable The policy limits do not act as a limitation upon the amount of indemnification to be pro-vided by franchisee 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 1 prov c ents If the City or an o�ther public entity constructs or maintains anti storm drain, sewer structure or other facility or improvement under or across any facility of the grantee maintained pursuant to the ordinance the grantee shall rovide at no expense to the City or other public entity such support as shall be reasonablj required to support, maintain and protect grantee s facility 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 ei yC`i If the grantee, within ten(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 e4yCity 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 e--ttyCity without notice may repair such damage and the grantee agrees to pay the reasonable cost thereof upon demand (2319 10/78) 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, ,v hie afe he g,ief that air- written approval shall be obtained from the Director Said approval may be ,,,ithheld at the sole and absolute discretion of the Director Said approvals 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) 3 44 251 Damage to public Property GenerallyAAny damage done directly or indirectly to any Public property by grantee in exercising directly or indirectly any right, power, or privilege under this franchise, of 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 damas2e was incuried, and to the satisfaction of the Director If the franchisee, within ten(10) days after receipt of 07 1267 005/47102 8 KEY INSERTIONS Double underline DELETIONS —1 11 1 , written notice from the CaN, 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 earn,out said instructions and the cost and expense of the franchisee, which cost and expense, by the acceptance of the franchise, the franchisee agrees es 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 Kati all costs incurred II COMPENSATION 3 44 252 Public LlWAN Not Transmitting Dal or Products Thereof The franchisee of any franchise a"arded to a public utility or non-public uWAN not transmitting oil or products thereot, as consideration for such franchise shall annually pay to the City in lawful money of the United States, within s Fthirt� 30daN,, 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 b, State law)arising from the use, operation or possession of the franchise 3 44 253 Length Vk henever the length of any wire pipe or conduit is a tactor in calculating any payment due under any franchise granted by the all sen ice connections shall be excluded in determining Bach lengths 3 44 255 Public Utility Transmitting Dal or Pi od cts Thereof The franchisee of any franchise awarded for a pipeline transmittingoil it or products thereof which has been determined by the Public Utilities Commission to be a public utility, as consideration for such franchise, shall, Aithin si��thirty_ 3( 60) da�s after the end of each calendar Near and during the lite of the franchise for each and every year, including the Year of granting the tranchise 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 mcredse pursuant to State law, the fees referenced herein shall increase by the same Pi elanes with an Internal Diameter of Base Date Per Lineal Foot 04 088 6 132 8 176 10 220 12 264 14 308 16 352 18 396 20 440 22 484 24 528 26 572 28 616 07 1267 005/47102 9 KEY INSERTIONS Double underline DELETIONS Stfikethfough- 3-0 660 For pipelines with an Internal diameter not listed above the fees shall be in the same proportion to the tees of a e (12)-inch-diameter pipe as the diameter of the unlisted pipe is to twelve (12) inches Fhe amount of the fee or charge provided for in this paragraph shall be multiplied by the Consumer price Index, all Lrban Consumers(CPI-t ) for the Los Angeles-Riverside-Orange County Area for the month of September immediately preceding the month in %which payment is due and pa-yable, and divided by the Consumer Price Index, All I rban Consumers (CPI-U for the Los Angeles Riverside-Orange County Area for June 10, 19M (1982-84=100 0 3 44 256 Non-Public Ltility Franchises The franchisee of anv 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 pax to the CAN in lawful money of the United States the follo,�N ing fees 3 44 260 Basic iyanting 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�y (360) day s 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 at iffies s City G. Line,i R34-9-40n� Pi elines with an Internal Diameter of hinount Per Lineal Foot 0-4 inches 590 61nches 895 flinches 197 10 inches 1 48ti 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 niches 3 879 28 inches 4 164 30 inches 4 469 1 he 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 07 1267 005/47102 10 KEY INSERTIONS Double underline DELETIONS StFrke4weugji- com up ted 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 y 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 630 days and a penalty at the rate of ten(10) percent per month or fraction thereof beyond the payment date shall be charged, but in no event shall said penalty exceed fifty(50) percent The City reserves the right to adjust the base fees established hereunder at any time after the effective date of the ordinance 3 44 271 Payments to City Payment is due 30 days after the City's myoice date and a 10% per month late penalty and 18% annual interest cost will be charged for an delinquent payment The City will also withhold any permits/not renew licenses if M payment is delinquent Payments should be mailed to the City Treasurer, City of Huntington Beach, P O Box 711, Huntington Beach, CA 92648-0711 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 a fee ( )-The r-Wholezccsc�r6E�Cer� rE$-indeccc x ( 967-1000) "All 11 Geff ffne, ittecxc " established by the United States Bur-eau of habef > > as it stands en the date the n n gr-afAede "base shali be taken as thebase index Won w-hfeh the abeve ffanehise fee is eemputed n "base n "base in dir-eet pfepei4ien as said inde-H has n > as hefeinabeve defined,pfevfded, hewevef, "baseshall the ameui4 ef the amPaa4 payfnent be less than the n as set fei4h herein (e) if said bufeau shall fevise the said indeN, the pai4tes her-ete shall aeeept the ffiethed ef (d) if said bufeatt shall diseenittitte the pr-epar-attan ef the said index using pr-iees prevailing in year- 1967 as a base of 100 and if no tr-enspesitten table pfepafed by safd btffeaii ts available, appiteable to said year-of 1967 then the ameth4 of eaeh annua4 paymei4 shall be eomputed- by fefefenee to sueh other-pr-tee index as may be ehesen by etty and the eity shall be the sole 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 Coun . area(1982-84=100) as published by the United States Bureau of Labor 07 1267 005/47102 11 KEY INSERTIONS Double underline DELETIONS St rl euglr 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 re,.ise 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 Count area rea (1982-84=100) and if no transposition table prepared b the he Bureau is a-vailable, then the amount of each annual franchise fee shall be computed bN reference to such other price index as may be chosen by the Ciri, and the City shall be the sole judge of cornparabiliq of successive indices and its determination on this point shall be final and conclusive In 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 herein (d) Publication and Administrative Issuance Costs The franchisee shall pay to the City within thirty(30) da,,s after receiving a statement therefore, 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 En-,ironmental Quality Act (Public resources Code Section 21000 et sect) 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 3 44 300 Proration of payments In the event of abandonment of facilities with the approval of the ei�yCity 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 t eeti.n 3 4 4 2°n 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) 3 44 310 Records Franchisee shall keep and preserve for a period of five (5) years subsequent to the date of the most recent franchise fee determination all the records necessary to determine the amount of such franchise fee At all reasonable times,the franchisee shall permit the ei+y-City or its duly authorized representative to examine all property of the franchisee erected, constructed, laid, operated or maintained 07 1267 005/47102 12 KEY INSERTIONS Double underline DELETIONS Strik h- 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 bounty of Orange (2319 10/78) 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 eiltCitv ordinance, rule or regulation now, or as hereafter amended, adopted or prescribed by the eit-yClty All pipes laid s ffldef the f^iehise shall be at fifst elass mate is pipelines and appurtenanLes will be installed in accordance with the latest revision of the American Standard Code of Pressure Piping ASA B31 4 " (2319 10/78) 3 44 330 New installation or replacement 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 dew; 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 decision shall be final and binding on the franchisee (2319 10178) 3 44 340 Permits Where the provisions of any L�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 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}ts installed, and such other facts as the Department may require The franchisee shall pay any and all permit inspection fees rei ulred by�te-the Y4l)epartment (2319 10/78) 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 eitt�,Ciry ordinance, resolution or regulation For streets that have been rehabilitated within three (,) years prior to the proposed work, the city shall requite 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 Citv within three dears prior to the proposed work, the restoration shall be in Lull 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 07 1267 005/47102 13 KEY INSERTIONS Double underline DELETIONS S{ikedwough- In the event that the franchisee shall fail or neglect to make such highway repair, replacement or restoration work,ten(10) days after notice thereforr therefore has been given franchisee by the Director,the eityCity may repair, replace or restore said highway at the expense of franchisee Franchisee agrees to pay to the ettyCity 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) 3 44 360 Failure to comply tamely In the event that the franchisee fails to complete the work within the time specified in the permit,the ettyCity may require the franchisee to pay to the eit-�-City not more than r five hundred dollars ($M6500) per day as liquidated damages for each day construction extends beyond the time specified in the permit 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 e-ityClty may complete or cause to be completed any and all such work at the expense of the franchisee The franchisee agrees to pay to the wit Citv 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 eit-yCity for reimbursable work (2319 10/78) 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 depaftt 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 appuf4efla-He facilities actually laid and as-built drawings (2319 10/78) 3 44 371 Responsibilit- y 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 to neglect of the franchisee to properly perform, maintain, or protect anaphase of such work 3 44 380 A r-,,PH e1ft"eeSFacihties The franchisee shall have the right to construct, maintain and repair such traps, manholes, conduits, valves, appliances, attachments and appi�i-* - ea enaiie (hefetnafter elle tt ely roroffoa to as 'n uftena ees")other facilities as may be necessary or convenient for the proper maintenance and operation of the pipelines under said franchise, and said appuftenane tacilities 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 ettyCity, or of any permit issued by the depart-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 depaireiit Department for doing any such work (2319 10/78) 3 44 386 Shoring 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 bN the City or in connection with any facility constructed by City or by any successor agencti 07 1267 005/47102 14 KEY INSERTIONS Double underline DELETIONS S4ike 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 deri^ t.men,Department for the doing of any such work (2319 10/78) 44 391 Relocation of PipLhnes and Facilities The City reserves the right to change the grade, to change the width or to altei or change the location of any street over which the franchise is granted If any of the pipelines, facilities or appurtenances heretofore or hereafter constructed, installed or maintained bN 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 permanentl� 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 thirty (30) days trom receipt of such written request Franchisee shall thereafter diligently prosecute such work to completion The City reserve,,the right for itself and all other public entities which are now or may later be established, to lay, construct repair alter, relocated and maintain subsurface or other facilities or improv e ents of anN type or description in a got ernmental but not proprietary capacity w ithin the Streets over which the franchise is granted It the City or an other ther publiL entity finds that the location or relocation of suLh 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 Crt� or suLh other public entity were laid. the franchisee of such franchise shall at no expense to the City or public eiztity, on or before the date specified in a written request from the DireLtor, which date shall be not less than thirtN (30)days alter the receipt of such notice and request to do so, commence work to change the location either permanently or temporarily of all tacilities so conflicting vvith such improvements to a permanent or temporary location in Said streets to be approved by the Directoi and thereafter diligently prosecute such work to completion 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 de Department The franchisee shall obtain an excavation permit from the&Arai. �meff Department for the doing of any such work (2319 10/78) 3 44 410 Emergency equipment At all times during the term of this franchise the franchisee shall maintain or arrange for, on a twenty-four(24)hour a day basis adequate emergency equipment and a properly trained emergency crew within a radius of twenty-five (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) 07 1267 005/47102 15 KEY INSERTIONS Double underline DELETIONS Stfrkedweug�t- 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 thirty(30) days thereafter make written application to the ei-tyDirector 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 mats or maps required bti Section 3 44 080 and shall also describe with reasonable acciirac� the ph)sical 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 effected-44e and shall then notify the franchisee of his determination 1 he franchisee shall pay to the City the cost of all tests required to determine the disposition of the application toi abandonment removal (b) Within thirty(30) days after receipt of such notice, the franchisee shall apply for a permit from the den i:ae.fi 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 ninety(90) days after obtaining such permit commence and diligently prosecute to completion the work authorized by the permit If the franchisee applieN 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 Citti a fee which shall be computed as follows Pipelines with an Internal Diameter of Amount iser Lineal Foot 0 12 inches $15 00 14-18 inches $22 00 20-30 inches $28 00 (2319 10/78) 3 44 430 Failure to com12 (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 ei�yCity 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 ti4yCity 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 thirty (30) days thereafter, fall 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 07 1267 005/47102 16 KEY INSERTIONS Double underline DELETIONS Stf l� determination The franchisee shall thereafter comply with the provisions of subsection(b) of section 3 44 420 (2319 10/78) 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 eityCity or to pay ei-t-yCltY for the cost of such removal (2319 10/78) 3 44 447 Operation after Franchise Expiration—Revocable License If a franchise is to expire within sixty 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 one hundred twenty(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 (38501/10) IV SPECIAL PROVISIONS FOR PETROLEUM PIPELINES 3 44 450 Rights granted The franchisee granted an-eAq_ e oleum 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 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) 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 sixty (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 lines, the rate per foot per year and the total amount due the e4yCity (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 07 1267 005/47102 17 KEY INSERTIONS Double underlie DELETIONS Stfikedffeugh- shall show any change in franchise 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 (2319 10/78) (cLAll payments should be mailed to the Crty Treasurer, City of Huntington Beach, P O Box 711, Huntington Beach, CA 92648-0711 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 (231910/78) 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 notiL e f-uls or refuses to relocate Permanently or temporarily its faCllitie5 located in, on, upon, along, under, over across or above any hi hwa or to pave surface, grade, repave, resurface or re grade as required, pursuant to any pro`ision of the franchise, the City or other public entity maN cause the work to be done and shall keep_an itemized account of the entire cost thereof, and the grant ~hall hold harmless the City, its officers and employees from any habilitti NNhich 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 10178) 07 1267 005/47102 18 to 2d CITY F HUNTI T N BEACH 13 Interdepartmental Memo TO Honorable Mayor and Members of the City Council VIA Fred A Wilson City Administrator FROM Stanley Smalewitz Director of Economic Development DATE August 2 2010 SUBJECT Late Communication — Ordinances for Introduction —Approve for introduction Ordinance No 3889 amending Chapter 3 44 of the Huntington Beach Municipal Code HBMC) relating to Pipeline Franchises The Economic Development Department has a PowerPoint presentation to add to tonight s City Council meeting Please see attached copy CPAB Late Communication 1 6/1/2009 Petroleum City of Huntington Beach August 2 , 2010 t History ► Chapter 3 . 44 of HBMC was enacted in 1978 to regulate construction and operation of pipelines ► Most of the chapter is dedicated to petroleum ► No significant changes since inception ► Proposed revisions reflect current business practices for the industry and are in line with other local cities with pipeline ordinances x a ' Franchises ► Over 100 , 000 linear feet f petroleum pipeline infrastructure in City ► Four active franchises • Pacific Pipeline • Pacific Terminals • Chevron /Texaco (2) ► Two pending franchises are undergoing negotiations for transferred pipelines Major Changes to Ordinance Term - changed to 15 years versus 25 or 30 year term Liability insurance .- from $ 1 million to $ 5 million Environmental Impairment Liability Insurance added (at $ 5 million liability amount) Performance bond increased from $ 10 , 000 to $ 1009000 major unanges to u' rdinance ► Abandonment fees adds ► Relocation of pipelines and facilities (if conflicting ith public r/ ) ► Compensation section : • Calculation method improved • Fees increased • Penalty and Interest rates dated Fee Changes Charts are based on revenues a cit would receive for 1000 linear feet of ipeline psi a 'Yss I r >t, r d i Huntington Beach current fees $186 $186 $186 $186 $248 $311 Huntington Beach (proposed new fees $590 $590 $895 $17197 $17485 $1 ,787 r Reve chide al act�uepropr ridcorn urr t IRevenues $64,571gcarri41 40- anchises ,a AM- sg inclu` a I rve ri a ro et and Common p rY ro ectedA 1,111 $123 817 r franchise Please note 75% of pipelines in City of HB are 6 to 8 inches in diameter a other its s Market Survey Results Charts are based on revenues a city would receive for 1000 linear feet of pipeline Long Beach $590 $590 $895 $11197 $11485 $11 787 Carson $234 $365 $715 $1 ,181 $11766 $21466 Lynwood $214 $334 $655 $1 ,082 $11617 $21258 Norwalk $329 $329 $498 $667 $827 $995 Redondo Beach $237 $237 $359 $480 $596 $717 County of Los Angeles $295 $295 $304 $524 $818 $11178 . n 9§ Conclusion ► Proposed revisions are based on industry accepted methods and used by other cities ► Future increases to General Fund revenue " IT A r