CC RESOLUTION 23661/26/71
RESOLUTION NO. 2366
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF EL SEGUNDO, CALIFORNIA, DECLARING ITS INTEN-
TION TO GRANT A FRANCHISE TO SHELL OIL COMPANY,
ITS SUCCESSORS AND ASSIGNS, TO LAY, CONSTRUCT,
INSTALL, OPERATE, MAINTAIN, RENEW, REPLACE, RE-
PAIR, CHANGE THE SIZE OF, A
REMOVE ND /OR ABANDON
IN PLACE, ONE EXISTING SIX (6) INCH PIPE LINE
FOR THE TRANSPORTATION OF OIL, GAS, GASOLINE,
PETROLEUM, WET GAS, LIQUID HYDROCARBON PRODUCTS,
WATER, WASTE WATER, MUD, AND /OR STEAM, WITHIN
CERTAIN PUBLIC STREETS, HIGHWAYS, ALLEYS, AND
OTHER PUBLIC WAYS IN SAID CITY.
WHEREAS, Shell Oil Company, a Delaware corporation,
has heretofore by written application dated December 21, 1970,
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 Director by the City Manager for its study and.
recommendation to said Council; and
WHEREAS, said Public Works Director 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, Shell Oil Company, a corporation, shall deposit
with the City Treasurer the sum of $1,250 to cover the administra-
tive expenses of the City incurred in connection with this francnise;
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, applicant agrees to pay the balance of the
publication costs within thirty days after the City furnishes
applicant 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 Shell Oil Company
the difference between the publication 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
Shell Oil Company, dated December 21, 1970, 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 purpose 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 MAINTAIN ONE EXISTING SIX (6) INCH
PIPELINE FOR THE TRANSPORTATION OF OIL, GAS, GASOLINE, PETROLEUM,
WET GAS, LIQUID HYDROCARBON PRODUCTS, WATER, WASTE WATER, MUD,
AND /OR STEAM ", to wit:
"NOTICE OF SALE OF FRANCHISE TO MAINTAIN ONE
EXISTING SIX (6) INCH PIPELINE FOR THE TRANS-
PORTATION OF OIL, GAS, GASOLINE, PETROLEUM,
WET GAS, LIQUID HYDROCARBON PRODUCTS, WATER,
WASTE WATER, MUD, AND /OR STEAM.
"TO WHOM IT MAY CONCERN:
"Notice is hereby given that an application has been made
to the City Council of the City of E1 Segundo, County of Los Angeles,
State of California, for a franchise granting the right to lay,
construct, install, operate, maintain, renew, replace, repair,
change the size of, remove and /or abandon in place, one existing
six (6) inch pipeline for a period not to exceed twenty -five (25)
years. The purpose of said pipeline system is for the transporta-
tion of oil, gas, gasoline, petroleum, wet gas, liquid hydrocarbon
products, water, waste water, mud, and /or steam, along, under, and
across certain portions of public streets, highways, alleys and
other public ways of the City of E1 Segundo hereinafter described;
and that it is proposed by the said City Council of the City of
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E1 Segundo to sell to Shell Oil 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
install, operate, maintain, renew, replace, repair, change the size
of, remove and /or abandon in place, one existing six (6) inch
pipeline for the transportation of oil, gas, gasoline, petroleum,
wet gas, liquid hydrocarbon products, water, waste water, mud,
and /or steam, together with all manholes, valves, service connec-
tions and appurtenances necessary and convenient to properly
maintain and operate said pipelines, including facilities necessary
for cathodic protection of pipelines, in, under, along and across
those certain portions of public streets, highways, alleys and
other public waysof the City of E1 Segundo hereinafter described
on the attached Exhibit "A ".
"That the terms and conditions upon which said franchise
will be offered for sale are the following:
"That the terms 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 granting 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, its successors or assigns.
"That the grantee shall have the right to construct and
maintain such traps, manholes, valves, appliances and attachments
as may be necessary and convenient to properly maintain and operate
the pipelines under said franchise, including all facilities nec-
essary to provide cathodic protection for the pipelines, and said
traps, manholes, appliances, and attachments, shall at all times
be kept flush with the surface of the street and so located as to
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conform to any order of the City
not to interfere with the use of
shall have the right, subject to
may hereafter be, in force, to m
said street for the construction
traps, manholes, appliances, and
t t rl'21
Council in regard thereto, and
the street for travel. The grantee
such regulations as are now, or
ake all necessary excavations in
and repair of said pipelines,
attachments.
"All pipes, pipelines, 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 regu-
lations now or hereafter adopted or prescribed by the City Council
of the City of E1 Segundo, County of Los Angeles, State of California;
provided, however, that all pipes and pipelines laid under said
franchise shall be of first class material, shall conform to
applicable U.S.A. Standard Code for Pressure Piping in its latest
revision and shall be subject to the approval of said City
Engineer; and provided further, no pipelines laid hereunder shall
exceed twelve (12) inches in internal diameter. Any smaller
diameter pipeline covered by this franchise may be enlarged to
said maximum twelve (12) inch diameter at and only at such time
as the street surface of any particular segment thereof is dis-
turbed for purposes of repairing such pipeline or if approved by
the Director of Public Works, during periods of street excavation
by other utilities or by City's street improvements.
"All excavations for laying, moving or repairing, said
pipelines and appurtenances hereunder 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 reasonably necessary
or incident to the proper excavation of said work. That all excava-
tion 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 the said City as
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may be designated 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 the work of laying down and constructing any pipe-
lines hereunder shall be done to the satisfaction of the City
Engineer of the City of E1 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 pipes or
appliances 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 were before the laying of such pipes,
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.
"That the City of E1 Segundo reserves the right to change
the grade of any highway over that portion of the City of E1
Segundo over which said franchise is granted, or to locate or
relocate municipal water pipes, sewer lines or other municipal
sub - surface installations, and that Grantee shall, within thirty
(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 subsurface
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
E1 Segundo may cause the work required to be done and shall keep
an itemized account of the cost thereof, which the said grantee
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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 any pipelines or appurtenances installed or maintained
hereunder, 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 pipelines under such street or portion thereof, then grantee
shall at 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.
"The grantee of this franchise shall have the right
during the period for which this franchise is granted to transport
oil, gas, gasoline, petroleum, wet gas, liquid hydrocarbon products,
water, waste water, mud, and /or steam through said pipelines.
"The provisions of said franchise and all rights, obliga-
tions and duties thereunder shall inure to and be binding upon the
grantee, its successors or assigns.
"That.said grantee shall, during the life of said fran-
chise, 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 (U) per
inch of internal diameter for each lineal foot of each pipe line
maintained hereunder, but not less than eight cents (8j) per lineal
foot of each pipe line, 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
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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 transportation table prepared
by said Bureau is 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.
"Upon any neglect, failure, or refusal, by said grantee
to file said verified statement, or to pay the percentage of the
gross annual receipts, or to pay the said franchise fee herein set
forth the City Council, may 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 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 its lines, provided a permit is first obtained from the
City Engineer, 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.
"The grantee shall, by acceptance of this franchise,
agree to remove any pipelines installed hereunder within ninety
(90) days after the surrender or termination of this franchise
unless permission to abandon said pipelines in place is granted by
the City Engineer and, in the event that such permission is granted
by the City Engineer, the grantee shall, by the acceptance of this
franchise, agree to comply with any terms or conditions imposed by
the City Engineer upon such abandonment in place.
"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 E1
Segundo, rind 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 sever-
ally 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 aban-
donment 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 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.
"NOTICE IS HEREBY FURTHER 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 Monday , the 8th day of March ,
1971 , in the Council Chamber of the City Hall of said City,
located at 350 Main Street, in the City of E1 Segundo, County of
Los Angeles, State of 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 sane.
Said advertisement or notice shall be in the form of "NOTICE OF
SALE OF FRANCHISE TO MAINTAIN ONE EXISTING SIX (6) INCH PIPELINE
FOR THE TRANSPORTATION OF OIL, GAS, GASOLINE, PETROLEUM, WET GAS,
LIQUID HYDROCARBON PRODUCTS) WATER, WASTE WATER, MUD, A \TD /OR STE:\:I" 2
hereinabove set forth in section "SECOND" of this resolution.
Said City Clerk shall cause said notice of advertisement to „,2
published once, not later than fifteen (15) days after the ,"4option
of this resolution, in the E1 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 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 remain inoperative unless
Shell Oil Company makes the deposits of $2, 500. 00 and $ 500. 00 on or before
February 9, 1971, at 5:00 P.M.
SIXTH, That this resolution shall take effect immediately.
PASSED, APPROVED and ADOPTED this 8th day of February,
1971.
ATTEST:
City Clerk
(SEAL)
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STATE OF CALIFORNIA, )
)
COUNTY OF LOS ANGELES, )
CITY OF EL SEGUNDO. )
I, JANE D. HOUGH,
SS
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. 2366
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 Sth day of February , 197
and that the same was so passed and adopted by the following vote:
AYES: Councilmen Balmer, Frederick, McGill, Nagel and
Mayor Stephens;
NOES: Councilmen None;
ABSENT: Councilmen None.
this 22nd
(SEAL)
WITNESS my hand and the official seal of said City
day of February . 197E
qtr 0(y.
ity Clerk--ontie City cff El Segun—cTo-
California