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.
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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
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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
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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
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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
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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
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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
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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
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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.
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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.
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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:
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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.
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