CC RESOLUTION 229910705
RESOLUTION NO. 2299
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF EL SEGUNDO, CALIFORNIA,
DECLARING ITS INTENTION TO GRANT A
FRANCHISE TO STANDARD GAS COMPANY,
A CORPORATION, FOR A TERM OF TWENTY -
FIVE (25) YEARS TO LAY, CONSTRUCT,
MAINTAIN AND OPERATE A PIPELINE SYSTEM
CONSISTING OF A SINGLE LINE OF PIPE
NOT TO EXCEED TWELVE (12) INCHES IN
INTERNAL DIAMETER FOR THE PURPOSE OF
TRANSPORTING AVIATION JET FUEL ALONG
CERTAIN PORTIONS OF CERTAIN PUBLIC
STREETS WITHIN SAID CITY.
WHEREAS, Standard Gas Company, a corporation, has
heretofore by written application dated May 21, 1969, petitioned
and applied to the City Council of the City of E1 Segundo,
California, to offer for sale and to sell in the manner provided
by law, the franchise hereinafter referred to; and
WHEREAS, said petition and application was referred to
the Public Works Department by the City Manager for its study
and recommendation to said Council; and
WHEREAS, said Public Works Department has now made its
report to this Council recommending that said franchise be awarded
said applicant in accordance with said application and the terms
and conditions of this resolution; and
WHEREAS, Standard Gas Company, a corporation, has
deposited with the City Treasurer the sum of $2,500.00 to cover
the administrative expenses of the City incurred in connection
with this franchise; and the further sum of $500.00 to cover the
expenses of publications incurred in connection with the granting
of this franchise. If said deposit of $500.00 should not be
sufficient to cover the expenses of publication, grantee agrees
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to pay the balance of the publication costs within thirty days
after the City furnishes grantee with a written statement of the
expenses. Should the expenses of publication be less than the
$500.00 deposited for publication expenses, the City agrees to
refund to Standard Gas Company the difference between the publica-
tion costs and $500.00.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
EL SEGUNDO, CALIFORNIA, DOES RESOLVE, DECLARE AND DETERMINE AS
FOLLOWS:
FIRST: That the said petition and application of said
Standard Gas Company, dated May 21, 1969, hereinabove referred to,
be and the same is hereby ordered placed on file in the office of
the City Clerk of said City and open to public inspection for the
purposes of identification and reference.
SECOND: That it is proposed to grant said franchise,
and that the character of said franchise so proposed to be granted
and the terms, provisions, conditions and restrictions thereof are
all as indicated, set forth and described in the following form of
"NOTICE OF SALE OF FRANCHISE TO LAY A SINGLE LINE OF PIPE FOR THE
TRANSPORTATION OF AVIATION JET FUEL ", to wit:
"NOTICE OF SALE OF FRANCHISE TO LAY A SINGLE
LINE OF PIPE FOR THE TRANSPORTATION OF
AVIATION JET FUEL.
TO WHOM IT MAY CONCERN:
Notice is hereby given that an application has been
made to the City Council of the City of El Segundo, County
of Los Angeles, State of California, for a franchise granting
the right to lay and construct, and for a period of not to
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exceed twenty -five (25) years to maintain and operate, a
pipeline system consisting of a single line of pipe, not
to exceed twelve inches (12 ") in internal diameter, for the
purpose of transporting aviation jet fuel along those certain
portions of the streets of the City of El Segundo hereinafter
described; and that it is proposed by the said City Council
of the City of E1 Segundo to sell to Standard Gas Company,
a corporation, a franchise upon the terms and conditions
hereinafter contained. The franchise is described as follows,
to wit:
A franchise to lay, construct, and for a period not to
exceed twenty -five (25) years, and as hereinafter provided,
to operate, maintain, renew, remove and /or abandon in place
a pipeline system consisting of a single line of pipe not to
exceed twelve inches (12 ") in internal diameter for the pur-
pose of transporting aviation jet fuel, together with all
manholes, valves, service connections and appurtenances
necessary and convenient to properly maintain and operate
said pipeline, including facilities necessary for cathodic
protection of said pipeline, in, under, along and across
those certain streets of the City of El Segundo hereinafter
described:
Beginning at a point in the south line of E1 Segundo
Boulevard (52 feet wide) 20.00 feet easterly of the
centerline of Whiting Street (50 feet wide); THENCE
northerly across El Segundo Boulevard to a point
7.00 feet south of the centerline of El Segundo
Boulevard; THENCE easterly parallel to the centerline
of El Segundo Boulevard to a point 12.50 feet westerly
of the centerline of Virginia Street (50 feet wide);
THENCE northerly parallel to the centerline of Virginia
Street and its extension to a point in Imperial Avenue
(60 feet wide) lying 16.00 feet south of the centerline
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of Imperial Avenue; THENCE easterly parallel to
the centerline of Imperial Avenue to a point
150.00 feet easterly of the centerline of Virginia
Street; THENCE northerly parallel to the center-
line of Virginia Street to the north line of
Imperial Avenue.
That the terms and conditions upon which said franchise
will be offered for sale are the following:
That the term of said franchise shall be for a period
of twenty -five (25) years from and after the date of granting
such franchise.
That franchise is granted and shall be held and enjoyed
only upon the terms and conditions herein contained, and that
the grantee must, within thirty (30) days after the passage
of this franchise, file with the clerk of the City Council a
written acceptance of the terms and conditions herein expressed.
The word "Grantee" whenever used herein shall be held to
include the grantee or grantees, his, her, its, or their,
successors or assigns.
The grantee of said franchise shall in good faith commence
the work of constructing said pipeline system within not more
than one (1) year from the date of granting this franchise,
and said work shall be prosecuted diligently thereafter and
in good faith, and if not so commenced within said time said
franchise so granted shall be declared forfeited.
That the grantee shall have the right to construct and
maintain such traps, manholes, valves, appliances and attach-
ments as may be necessary and convenient to properly maintain
and operate the pipeline laid and constructed under said
franchise, including all facilities necessary to provide
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cathodic protection for the pipeline, and said traps, manholes,
appliances, and attachments, shall at all times be kept flush
with the surface of the highway and so located as to conform
to any order of the City Council in regard thereto, and not
to interfere with the use of the highway for travel. The
grantee shall have the right, subject to such regulations as
are now, or may hereafter be, in force, to make all necessary
excavations in said highway for the construction and repair of
said pipeline, traps, manholes, appliances, and attachments.
If the said pipe shall be laid along any paved highway
in the City of El Segundo, it shall be placed as close as
reasonably possible to the edge of the pavement so as not to
unreasonably disturb the paved surface. In the event it is
necessary to break pavement to lay said pipe, grantee shall
apply for, and City shall, upon payment of the required fees,
grant a permit, which permit shall specify the manner in
which the pipe or conduit shall be laid; and the repair of
the highway, after the pipe has been laid, shall be made
promptly by the grantee, at the expense of the grantee and
to the satisfaction and approval of the City Engineer, and
in the event of its failure so to do, this franchise shall
thereupon be subject to forfeiture.
All pipe, pipeline, traps, manholes, attachments, and
appliances constructed or maintained under the provisions
of said franchise shall be constructed and maintained in
accordance with, and in conformity with, all the ordinances,
rules, and regulations now or hereafter adopted or prescribed
by the City Council of the City of El Segundo, County of Los
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Angeles, State of California; provided, however, that all
pipe and pipeline laid under said franchise shall be of
first class material and subject to the approval of said
City Engineer; and provided further, no pipeline laid here-
under shall exceed twelve inches (12 ") in internal diameter.
All excavations for laying, moving or repairing, said
pipeline and appurtenances shall be done in such manner as
not to interfere with the free use of the streets by the
public, except such temporary interference as may be reason-
ably necessary or incident to the proper prosecution of said
work. That all excavation shall be made and refilled in
strict compliance with the ordinances, resolutions and orders
of the City of E1 Segundo, that may be in force at the time
of the performance of such work. That the grantee of said
franchise shall make such deposits of money with the City
Treasurer or such other officer of said City as may be desig-
nated by such ordinances, resolutions, orders, or otherwise
by law, and as may be from time to time required from persons
making excavations in the streets of said City, for the purpose
of insuring the restoration of all streets to a good and
perfect condition along such excavations. That before the
work of laying said pipe is commenced, the grantee of said
franchise or assigns, shall file with the City Engineer of
said City complete plans showing the location of said pipeline
in the streets and the location of all manholes, traps, and
other appliances, and attachments, as may be necessary for the
purpose of safely and efficiently operating and maintaining
said pipeline. That the granting of such franchise shall not
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be construed to relieve said grantee from the provisions of
any order, ordinance, or law, that may be in force at the time
requiring applications to be made and obtained for excavations
in streets before such work can be done. That the location
of said pipeline in streets or portions of streets shall be
subject to the approval of the City Engineer of said City,
who shall have the power to give such directions for the
location of said pipes as may be necessary to avoid sewers,
water pipes, and other conduits, or structures, in or under
said streets, or portions of streets, within the boundary of
the City of El Segundo, hereinabove described, where said
pipeline is to be laid.
That the work of laying down and constructing said pipe-
line shall be done to the satisfaction of the City Engineer
of the City of El Segundo, and subject to his inspection and
shall be equipped with gate valves and other protective devices
as may be required from time to time.
That as soon as the laying or repairing of any pipe or
appliance is completed, all portions of the streets which
have been excavated or otherwise injured thereby shall be
placed in as good condition as the same was before the laying
of such pipe, and to the satisfaction of the said City Engineer.
That any damage or injury suffered by any person or property
by reason of any negligence on the part of grantee, its agents,
servants and employees, or which results from any excavation
being improperly guarded during such work shall be borne by
the grantee of said franchise, and grantee shall indemnify and
save the City, its officers, servants, agents and employees,
harmless therefrom.
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That the City of El Segundo reserves the right to change
the grade of any highway over that portion of the City of
El Segundo over which said franchise is granted, or to locate
or relocate municipal water pipes, sewer lines or other municipal
subsurface installations, and that grantee shall, within 30 days
after demand by City, start to change the location of all
pipes, conduits, traps, manholes, appliances and attachments
laid, constructed or erected hereunder, so as to conform to
such change of grade, or such location or relocation of sub-
surface installations, and proceed diligently to complete such
relocation, all at the grantee's own expense, and in case the
grantee shall fail to comply with the instructions given
therefor, the City of El Segundo may cause the work required
to be done and shall keep an itemized account of the cost
thereof, which the said grantee by the acceptance of said
franchise shall agree to pay immediately upon its being
presented to said grantee.
That if any street or portion thereof along, across, or
under which said pipeline or appurtenances shall be laid shall
be damaged by reason of any leak or leaks, or by reason of any
other cause arising from the operation or extension of such
pipeline under such street or portion thereof, then grantee
shall at his or its own cost and expense immediately repair
any and all such damage and restore said street or portion
thereof to as good condition as before such leak or cause of
damage occurred, such work to be done under the direction of
said City Engineer, and to his satisfaction.
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The grantee shall not commence the construction of any
pipelines or appurtenances under the provisions of this franchise
until it shall first have obtained permit from the City Engineer
so to do. Such permit shall be granted upon application of
the grantee, which application shall show the highway upon
which it is proposed to construct or lay the pipe, the length
of the pipe proposed to be constructed or laid on the highway,
the size and description of the pipe intended to be used, and
such other facts as said City Engineer may require. Each
application for a permit filed hereunder shall be accompanied
by a fee for the laying of such pipeline which fee shall be
at the rate of One Thousand Five Hundred Dollars ($1,500.00)
per mile, or major fraction thereof, and Seven Hundred Fifty
Dollars ($750.00) for each one -half mile or less, for all pipe
proposed to be laid under such application and permit, and
within ninety (90) days after the completion of the construction
authorized by said permit the grantee shall render a report to
the City of E1 Segundo showing in detail the total length of
pipe actually laid under said permit, and the grantee shall
accompany said report with the balance, if any, which may be
payable to said City for all lines of pipe so actually laid,
at the rates above stated.
The grantee of this franchise shall have the right during
the period for which this franchise is granted to transport
aviation jet fuel through said pipeline.
The provisions of said franchise and all rights, obligations
and duties thereunder shall inure to and be binding upon the
grantee, his, its, or their successors, or assigns.
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That said grantee shall during the life of said franchise,
pay to the City of E1 Segundo, in lawful money of the United
States, an annual franchise fee in an amount agreed upon by
the applicant and the City computed as follows: one cent (1�-)
per inch of internal diameter for each lineal foot of pipeline
installed, but not less than eight cents (8�) per lineal foot,
provided, however, that the amount of each annual payment
shall be revised at the time of payment in accordance with
the following formula:
a) The "Average Wholesale (Primary Market) Price
Index, All Commodities ", prepared by the United States
Bureau of Labor Statistics, Department of Labor, for
the calendar year 1968 shall be taken as the base upon
which the above franchise fee is computed.
b) If the said index for the last calendar month
ending more than ninety (90) days prior to the date upon
which payment to the City shall be due, shall stand at
other than said average 1968 rate, then the rate of
payment to the City shall vary from said hereinabove
rates in direct proportion as said index has increased
or decreased from the 1968 average.
c) If said Bureau shall revise the said index, the
parties hereto shall accept the method of revision or
conversion recommended by the said Bureau.
d) If said Bureau shall discontinue the preparation
of a wholesale price index using prices prevailing in
the years 1957 -59, inclusive, as a base of 100, and if
no transposition table prepared by said Bureau is
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available which is applicable to said years of 1957 -59
inclusive, then the amount of each annual payment shall
be at the amount last computed by the above formula.
Such franchise shall be forfeited upon any failure,
refusal or neglect of said grantee to make any such payments.
Said annual payment shall be accompanied by a statement,
verified by the oath of a duly authorized representative of
the grantee showing (so long as required by Section 6299 of
the Public Utilities Code of the State of California) the
gross receipts of the grantee for the preceding calendar year
arising from the use, operation or possession of said franchise.
Any neglect, failure, or refusal, by said grantee to file
said verified statement, or to pay the said percentage of the
gross annual receipts or to pay the franchise fee herein reserved
shall thereupon immediately ipso facto effect a forfeiture
thereof, and the said City, by its City Council, may thereupon
declare said franchise forfeited, and may exclude the grantee
from any further use of the public highways, streets or alleys,
included in said franchise, and said grantee shall thereupon
and immediately surrender all rights in and to the same, and
this franchise shall be deemed and shall remain null, void,
and of no effect; provided, however, the neglect, failure,
or refusal of the grantee to file a verified statement of the
percentage of gross annual receipts shall not effect a forfeiture
of this franchise if the City Council determines that such
condition may be waived and Section 6300 of the Public Utilities
Code of the State of California is amended to permit the
omission of such report.
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The grantee shall not sell, transfer or assign this
franchise or the rights or privileges granted thereby without
the consent of the City Council, nor shall the franchise or
the rights or privileges be sold, transferred or assigned,
except by a duly executed instrument in writing filed in the
office of the City Council of the City of E1 Segundo, and
nothing in the franchise contained shall be construed to
grant to said grantee any right to sell, transfer or assign
the franchise or any of the rights or privileges granted except
in the manner aforesaid.
The grantee shall, by acceptance of any franchise, agree
to complete the initial installation of a pipeline within
the time specified in the Permit to Excavate and shall pay
liquidated damages in the sum of Two Hundred Dollars 000.00)
per day for each day construction extends beyond the time
specified in the Permit to Excavate.
The grantee shall be privileged to open the street for
line testing, without penalty, on two days each year.
The grantee shall be permitted to open the street to
repair his lines, provided he first obtains a permit from
the City Engineer and pays the customary charges and sets
forth an agreed upon reasonable number of days within which
said work is to be completed. In the event said work is not
completed within the agreed upon number of days, the grantee
shall pay Two Hundred Dollars ($200.00) per day as liquidated
damages for each day that the street is open beyond the period
of time expressed in the permit.
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NOTICE IS HEREBY GIVEN that a public hearing will be
held by the City Council of the City of E1 Segundo, California,
concerning the granting of said franchise and all persons
having any objections to the granting thereof may appear
before the City Council and be heard thereon. Said public
hearing will be held by the City Council of the City of E1
Segundo, California, at the hour of 7:00 P.M. on Tuesday the
24th day of February, 1970, in the Council Chamber of the
City Hall of said City, located at 350 Main Street, in the
City of El Segundo, County of Los Angeles, State of California.
NOTICE IS HEREBY FURTHER GIVEN, that the grantee of said
franchise must, within thirty (30) days after the award of
said franchise, file with the City Clerk of said City of E1
Segundo a bond running to the said City of El Segundo and at
all times thereafter maintain in full force and effect, an
acceptable corporate surety bond, in the amount of Fifty
Thousand Dollars ($50,000.00), effective for the entire term
of the franchise, and conditioned that in the event the grantee
shall fail to comply with any one or more of the provisions
of the franchise, then there shall be recoverable jointly
and severally from the principal and surety of such bond, any
damages suffered by the City as a result thereof, including
the full amount of any compensation, indemnification, or cost
of removal or abandonment of property, up to the full amount
of the bond; said condition to be a continuing obligation for
the duration of the franchise and thereafter until the grantee
has liquidated all of its obligations with the City that may
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have arisen from the acceptance of this franchise by the
grantee or from its exercise of any privilege herein granted.
Neither the provisions of this paragraph, any bond
accepted by the City pursuant thereto, nor any damages
recovered by the City thereunder shall be construed to excuse
faithful performance by the grantee or to limit the liability
of the grantee under the franchise or for damages, either to
the full amount of the bond or otherwise.
By the order of the City Council of the City of El
Segundo, County of Los Angeles, State of California, dated
this 12th day of January , 1970.
City Clerk of the City of El Segundo,
California."
THIRD: That the City Clerk of said City is hereby
authorized and instructed to advertise the fact of said application,
together with a statement that it is proposed to grant the same.
Said advertisement or notice shall be in the form of "NOTICE OF
SALE OF FRANCHISE TO LAY A SINGLE LINE OF PIPE FOR THE TRANSPORTATION
OF AVIATION JET FUEL" hereinabove set forth in section "SECOND" of
this resolution. Said City Clerk shall cause said notice of
advertisement to be published once, not later than fifteen (15)
days after the adoption of this resolution, in the El Segundo
Herald, a weekly newspaper of general circulation published and
circulated within said City of E1 Segundo and which said newspaper
is hereby designated for that purpose.
FOURTH: That the City Clerk shall certify to the
passage and adoption of this resolution; shall cause the same to
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be entered in the book of original resolutions of said City, and
shall make a minute of the passage and adoption thereof in the
records of the proceedings of the City Council of said City of
the meeting at which the same is passed and adopted.
FIFTH: That this resolution shall take effect immediately.
PASSED, APPROVED and ADOPTED this 12th
January , 1970.
ATTEST:
L—-.�4 le 7z—.
City Clerk
(SEAL)
day of
Mayor of the City of E1 Segundo,
California.
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STATE OF CALIFORNIA, )
COUNTY OF LOS ANGELES, ) SS
CITY OF EL SEGUNDO. )
I, EUNICE U. CREASON, City Clerk of the
City of E1 Segundo, California, DO HEREBY CERTIFY that the
whole number of members of the City Council of the said City
is five; that the foregoing Resolution, being Resolution No. 2299
was duly passed and adopted by the said City Council, approved
and signed by the Mayor of said City, and attested by the City
Clerk of said City, all at a regular meeting of the said Council
held on the 12th day of JANUARY , 19V 70,
and that the same was so passed and adopted by the following vote:
AYES: Councilmen FREDERICK, NAGEL, STEPHENS AND
MAYOR CARR:
NOES: Councilmen None;
ABS ENT: None:
NOT VOTING: COUNCILMAN BALMER.
WITNESS my hand and the official seal of said City
this 13th day of JANUARY
(SEAL)
, 196 70 .
T-t!
i y Clerk of the City of egun o
California
IN