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CC RESOLUTION 16RESOLUTION NO. 16 A RESOLUTION OF TKI, BOARD OF TRUSTEES OF THE CITY OF EL SEGUNDO DIRECTING A CERTAIN FRANCHISE TO .'LAY, CON - STRUCT, MAINTAIN AND OPERATE GAS PIPES AND MAINS IN SAID CITY TO BE ADVERTISED FOR SALE. The Board of Trustees of the City of E1 Segundo, State of California, do hereby resolve as follows: SECTION 1. Upon application of Southern California Gas Company, a corporation, organized and existing under and by virtue of the laws of the State of California, filed with the Board of Trustees of said City on the 11th day of December, 1918, it is hereby proposed by said Board of Trustees to grant to the highest bidder therefor, a franchise of the right for a period of forty years from the granting thereof, to lay, construct, maintain and operate a system of pipes and pipe lines in, under and along the public streets, highways, alleys and places in the City of E1 Segundo, California, for the pur- pose of supplying the said city and its inhabitants with gas for lighting, heating and all other purposes for which gas may be used. SECTION 2. Said franchise shall be sold and granted in the manner and under and upon the terms and conditions shown in the notice of sale hereinafter contained. SECTION 3. The City Clerk of said City is hereby auth- orized and directed to advertise in the E1 Segundo Herald, a weekly newspaper of general circulation, printed, published and circulated within said City of E1 Segundo, a Notice of Sale of said Franchise, said notice to be substantially in the following form: "NOTICE OF SAES OF FRANCHISE TO LAY, CONSTRUCT, MAINTAIN AND OPERATF. GAS PIEE9. Office of the City Clerk of the City of E1 Segundo. State of California. - (l) - Bl Segundo,California, Deeemberl9th, 1918. TO WHOPS IT MAY CONCERN: Hotice is hereby given that an application has been made by Southern California Gas Company, a California cor- poration, to the Board of Trustees of the City of E1 Segundo, California, for a franchise granting the right for a period of forty (40) years, to lay, construct, maintain and operate a system of pipes and pipe lines in, under and along the public streets, highways, alleys and places in the City of S1 Segundo, for the purpose of supplying the said City and its inhabitants with gas for lighting, heating and all other purposes for which gas may be lawfully used. Together with the right during said period to furnish and distribute gas through said pipes and pipe lines within the City of E1 Segundo and to collect the earnings, tolls and charges for the gas so furnished. Notice is further given that it is proposed by the said Board of Trustees to offer for sale and grant to the highest bidder said franchise upon the terms and conditions herein men- tioned. The grantee or assigns shall be required to file a written acceptance of the terms and conditions thereof with the City Clerk of the City of El Segundo, within thirty (30) days after the passage of the ordinance granting the same. That the grantee of said franchise, his, its or their successors or assigns, shall prosecute the work of laying pipes thereunder diligently and in good faith, so as to meet and fill the reasonable needs of the inhabitants of the said City of Zl Segundo. That the grantee of said franchise, his, its or their successors or assigns, shall have the right to construct and maintain such traps and manholes as may be necessary to afford - (2) - 21:! proper access to said pipes and pipe lines for cleaning and maintaining the same, and said traps and manholes shall at all times be kept flush with the surface of the streets and thoroughfares, and so located as to conform to any order of the Board of Trustees of said city in regard thereto, and not to interfere with the use of said streets and thoro- ughfares for travel, water mains or permanent culverts. The grantee of said franchise, his, its or their sao- cessors or assigns, shall have the right, subject to such regulations as are now, or may hereafter be in force, to make all necessary excavations in any such streets and thor- oughfares for the construction and repair of such pipes, pipe lines, traps and manholes. That all persons residing along the line of said pipe lines and within a reasonable extension thereof, shall be entitled to receive therefrom an adequate supply of gas for domestic or manufacturing purposes, or both, and that the gas to be furnished and distributed through said pipe lines shall be of good quality, free from injurious ingredients, and of sufficient purity to be suitable for both domestic and manufacturing use; and that the grantee of said fran- chise, his, its or their successors or assigns, shall, upon written request from any person residing along the line of said pipe lines, and upon payment by the applicant of all money due from him, at hia, its or their own cost and ex- pense, as provided by law, furnish to such person, an ade- quate supply of such gas for domestic or manufacturing use, or for both. That all pipes and pipe lines shall, in all oases where practicable, be laid in the parkways and alleys of said city and shall be laid not less than two (2) feet - (3) - 21 f; underground, and not less than two (2) feet below the established grade of streets under which said pipes are laid, and unless the Board of Trustees shall otherwise direct, when it is necessary to lay the same in a street or highway, shall be laid along the sides of the street or highway, and shall be within 15 feet from the property line in all highways sixty (60) feet or less in width, and within five (5) feet of the curb line in all other streets; and where it is necessary to lay said pipes or pipe lines through the border of any macadamized or paved roadway, the same shall be restored to its original condition, and in the event it is necessary to cross any portion of a macadamized roadway, the same shall be done by a tunnel or bore so as not to disturb the foundation of such macadamized road, and in the event the same cannot thus be done, the said crossing shall be made under special permit to be granted by the Board of Trustees upon appli- cation therefor, said application to be accompanied by a drawing, specifications and explanations showing the necess- ity for the same. That during the laying or repairing of any such pipes or pipe lines, any trench or excavation made for such pur- pose shall, at night -time, from sunset to sunrise, be barri- caded and protected by lights placed at distances of not more than one hundred (100) feet in distance apart, along such trench or excavation, and also at all street and alley in- tersections, sufficient to protect the public from danger. That the pipe lines constructed or maintained under the provisions of this franchise shall be constructed and maintained in accordance and conformity with all of the ord- inances, rules and regulations now in force, or that may hereafter be adopted and prescribed by the Board of Trustees - ( 4) - ME of said city; and the grantee, his, its, or their success- ors or assigns, before commencing any work of construction hereunder, shall make application for, and obtain, any permit then required by ordinance or general law then in force. That the work of laying and repairing such pipes or other appliances shall be conducted with the least possible hindrance to the use of said streets for the purpose of travel, and as soon as the laying or repairing of any pipes or appliances is completed, all portions of the streets, alleys or public places which have peen excavated or otherwise injured thereby, shall be placed in as good condition as the same were in before the laying of such pipes, and to the satisfaction of the Board of Trustees of said City. That the grantee of said franchise, his, its, or their successors or assigns, shall indemnify said City and the officers thereof, against and from all lia- bility to any person or persons arising from damage or in- jury suffered by any person or persons, by reason of any excavation being improperly guarded during said work. That the City of El Segundo reserves the right to change the grade of any street or portion thereof over which said franchise shall be granted, and the grantee of said franchise, his, its, or their successors or assigns, shall at once, at his, its or their own cost and expense, change the location of all pipes and other appliances laid under said franchise, so as to conform to said change of grade, as hereinbefore provided, without any recourse for damages whatsoever against the City of El Segundo on account thereof, That if any portion of any of said streeJrs shall be damaged by reason of leaks in any pipe laid under said franchise, or by reason of any other cause arising from the operation or existence of said pipes, the grantee of such franchise, his, its or their successors - (51 - 2l,"< or assigns, shall, at his, its or their own cost and ex- pense, with all reasonable diligence, repair such damage and put said street in as good condition as before such leak, or other cause of damage occurred, to the satis- faction of the Street Superintendent of said City, That if the grantee of said franchise, his, itls or their successors or assigns, shall fail to comply with any of the written instructions of said Board of Trustees, or the Street Superintendent of said city, with respect to the location of any portion of said system of pipes, or pipe lines, or the repair of any damage to said streets or thoroughfares, within ten (10) days after the service of a written notice upon said grantee, his, its or their successors or assigns, requiring compliance therewith, then said Board of Trustees or street Superintendent may immediately do whatever work is necessary to carry out said instructions, at the cost and expense of said grantee, his,its or their successors or assigns, which costs, by the acceptance of said franchise, said grantee, his, its or their successors or assigns, agrees to pay on demand. That the Railroad Commission of the State of Califor- nia, or other legally constituted regulatory authority, having jurisdiction over rates to be charged by the grant- ee herein, shall have the right to regulate and fix the reasonable charges of said grantee, his, its or their successors or assigns, for gas furnished and distributed through said pipes and pipe lines. That the said grantee, his, its or their successors or assigns, shall, during the life of said franchise, pay to the City of E1 Segundo, in lawful money of the United States of America, two per cent. (2 '91 of the gross annual receipts of such grantee, his, its or their successors or assigns, arisigg from the use, operation or possession of said franchise. To percentage shall be paid for the first - (6) - 2V five years succeeding the date of said franchise, bat thereafter such percentage shall be payable annually. And it shall be the duty of the grantee of said franchise, and of his, its or their successors or assigns, to file with the Clerk of the City of El Segundo, at the expiration of six years from the date of the Granting of said franchise, and at the expiration of each and every year thereafter, a statement verified by the oath of said grantee, his, its or their successors or assigns, or by the oath of the manager or other proper officer of said grantee, his, its or their successors or assigns, showing in detail the total gross receipts and gross earnings collected or received by said grantee, his, its or their successors or assigns, dur- ing the preceding twelve months, arising from the use, operation, or possession of said franchise. And within ten days after the date for filing the aforesaid state- ment, it shall be the duty of the said grantee, his, its or their successors or assigns, to pay to the City Treasurer of the City of E1 Segundo, the aggregate sum of the said percentage upon the amount of the gross annual receipts arising from the use, operation or possession of said franchise, and if the amount is incorrect in the judgment of the Board of Trustees of said city, they may order the payment of such additional sum as they may find due hereunder, and if not paid, the same may be collected by suit: and to enable said Board to ascer- tain the true percentage or amount payable, said Board, or any duly authorized agent of said Board, shall at any reasonable time or times, have access to all books, accounts and records of said grantee, his, its or their successors or assigns, which may be material to said matter; and any neglect, ommission or refusal by said - (71 - s' a grantee, his, its or their successors or assigns, to file said verified statement or to permit said inspection, or to pay the said percentage of the said gross annual receipts at the times and in the manner hereinbefore pro- vided, shall ipso facto work a forfeiture of said fran- chise and of all the rights thereunder to the City of E1 Segundo. That said grantee, or his or its or their successors or assigns, shall not sell, transfer or assign, or lease said franchise or any part thereof, or any of the rights or privileges granted thereby, except by a duly executed instrument in writing executed by both assignor and assignee, filed in the office of the City Clerk of said City; and in said instrument said assignee shall expressly accept and assume with said assignor and in favor of said city, all of the obligations contained in said franchise to be kept and performed by the grantee, and nothing in said fran- chise contained shall be construed to grant to said grantee, or his, or its or their successors or assigns, any right to sell, transfer, assign, or lease said franchise, or any of the rights or privileges thereby granted, except in the manner aforesaid, nor in any manner in case of such assign- ment to relieve the assignor of any obligation accrued or to accrue, and upon his, its or their part to be performed under said franchise. That the granting of said franchise or any of the terms and conditions therein contained shall not be con- strued to prevent the City of L1 Segundo from granting any franchise to any person, firm or corporation, other than said grantee, or his,its or their successors or assigns, for the same or similar purposes. That any neglect, failure or refusal to comply with any of the conditions of said franchise, shall operate as - (a) - } a forfeiture thereof, and the said city, by its Board of Trustees, may thereupon, after notice of at least ten days unto the said grantee, its, his or their successors or assigns, and a hearing had at the time designated in such notice, declare said franchise forfeited and may exclude said grantee, his, its or their successors or assigns from further use of the said streets and thoroughfares under said franchise, and said grantee, or his, its or their successors or assigns shall thereupon immediately suraender all rights in and to the same, and said franchise shall be deemed and shall remain null and void and of no effect. NOTICE IS HMBY GIVEN that sealed bids in writing will be received in the office of the City Clerk of said City, in the City Hall therein, for said franchisq,until 8:00 o'clock p. m., on the 13th day of February _,1919, ( the 12th day of Pebmary, 1919, being a legal holiday) and at the date and hour last mentioned and in the room in the City Hall of said City in which the Board of Trustees of the City of 31 Segundo hold their meetings in said city, any and all sealed bids will be publicly opened, examined and deelared. That the bids received must be for payment of a stated sum, in gold coin of the United States of America, and the said Franchise will be struck off, sold and awarded to the person, firm or corporation, who shall make the highest cash bid therefor, provided that at the time of opening said bids any responsible person, firm or corporation, present or represented, may bid for the fran- chise a sum not less than ten per cent. (10%labove the highest sealed bid therefor, and the said bid so made may be raided not lose than ten per cent. (10 %) by any other responsible bidder, and said bidding may so continue until finally said franchise shall be struck off, sold and award- ed by the said Board of Trustees to the highest bidder therefor, in gold coin of the United States of America. - (9) - +) s) Lvery sealed bid must be accompanied by cash, or a certified check, payable to the City Treasurer of the City of El Segundo, for the full amount of the said bid, and no sealed bid will be considered unless said cash or check is enclosed therewith, and the successful bidder must deposit at least ten per cent. (10°fol of the amount of his bid with the Clerk of said city before said franchise will be struck off to him, and if he shall fail to make such deposit immediately, his bid will not be received, and will be considered as void, and said franchise will then and there be again offered for sale to the bidder who shall maze the highest cash bid therefor, subject to the same coxiditions as to deposit as above mentioned. Said procedure will be had until said franchise is struck off, sold and awarded to a bidder who shall make the necessary deposit of at least ten per cent. (10 %) of the amount of his bid as herein provided. Said successful bidder shall deposit with the City Clerk of the City of 31 Segundo, within twenty -four (24) hours after the acceptance of his 1pid, the remaining ninety per cent. (90%) of the amount thereof, and in case he fails to do so, then the said de- posit theretofore made will be forfeited, and the said award of said franchise will be void, and said franchise will then and there, by said Board of Trustees, be again offered for sale to the highest bidder therefor, in the same manner, and under the same restrictions as hereinbe- fore provided. And in case said bidder fails to deposit with the said City Clerk the remaining ninety per cent. (90 %1 of his bid within twenty -four (24) hours after its acceptance, the award to him of said franchise will be set aside, and the deposit theretofore made by him will be forfeited, and no further proceedings for the sail of said franchise will be had unless the same shall be re- advertised for sale as required by statute. (10) - a) ) Rotice is hereby also given that the successful bidder for said franchise must, within five (5) days after said franchise is awarded to him or it, file with said Board of Trustees a bond, running to said City of E1 gegundo, in the penal sum of Five Hundred Dollars ($ 500.00), with at least two good and suffi- cient sureties, to be approved by the Board of Trustees, conditioned that said bidder, his, its or their successors and assigns will well and truly observe, fulfill and per- form each and every term and condition of said franchise, and that in case of any breach of condition of said bond, the whole amount of the penal sum therein named shall be taken and deemed to be liquidated damages therefor, and shall be recoverable from the prineipal and sureties upon said bond. Tf said bond be not so filed, the award of said franchise will be set aside, and any money paid therefor will be forfeited, and said franchise shall, in the discretion of said Board of Trustees be readvertised and again offered for sale in the manner provided by stat- ute. City Clerk and es- of£ici erk (8 A L ) of the Board of Trustees of the City of ski lei" 14180" SFCT20E 4. Such advertisement, or notice, shall be published in said E1 Segundo Herald for four (4) successive weeks, and full publication thereof shall be completed not less than twenty, nor more than thirty days before the day set for opening sealed bids, or before any further action be taken thereon. P -assed and annroved and adopted at a regular meeting of the Board of Trustees of the City of E1 aegundo, State of Cal- ifornia, held on the 18th day of December, 1918, by the follow- ing vote: - (11) - t$ AYE4,TRUSTFES• idlartin, Bryson, Work, and Rueger. ]gC?'4,°'RUSTFER None. ABSENT, TRUSTF.3R: Ward. i L1 s Presiden t of the oard of f T T st ees o3° _ the City of E1 leg-undo, State of Cal- ifornia, and Chatrman of said Board. (Sr,ALI ATT ST: City Clerk, STATE OF CALIFORNIA ) COUNTY OF LOR ANGELES ) SR. CTTY OF EL SEGUXDo ) I, Victor D. McCarthy, City Clerk of the City of E1 Segundo, California, do hereby certify that the foregoing resolution, being Resolution No. 16 _, was passed by the Board of Trustees of the City of E1 Segundo, signed by the President of said Board and attested by the City Clerk, all at a regular meeting of the said Board held on the 18th day of December, A. D. 1918, and that the same was passed by the following vote: AIMS: TRUST?3R,_ lartin, Bryson, Work and Rueger._ _ • NOES_ TRUSTEES, None. ; ABSENT: TRUSTF.BS,_,Ward. = (SUL) of �y — El Segundo if or ia. - (12) -