ORDINANCE 759ORDINANCE NO. 759
AN ORDINANCE OF THE CITY OF EL SEGUNDO,
CALIFORNIA, GRANTING TO SHELL OIL COM-
PANY A FRANCHISE OF THE RIGHT FOR A
PERIOD NOT TO EXCEED TWENTY -FIVE YEARS
FROM THE GRANTING THEREOF TO LAY, CON-
STRUCT, MAINTAIN AND OPERATE A PIPELINE
SYSTEM CONSISTING OF A SINGLE LINE OF PIPE
NOT TO EXCEED TWELVE (12) INCHES IN INTER-
NAL DIAMETER FOR THE PURPOSE OF TRANS-
PORTING AVIATION JET FUEL ALONG CERTAIN
PORTIONS OF CERTAIN PUBLIC STREETS WITH-
IN SAID CITY.
WHEREAS, on the 21st day of December, 1970 SHELL OIL
COMPANY, a corporation, organized and existing under and by virtue of
the laws of the State of Delaware, filed with the City Council of the City of
E1 Segundo, California, an application in writing for a franchise to lay a
single line of pipe for the transportation of aviation jet fuel, and requested
the City Council to advertise the fact of the application; and
WHEREAS, the City Council by Resolution No. 2367, adopted
on the 8th day of February, 1971, declared its intention to grant said pipe-
line franchise to SHELL OIL COMPANY, and did set March 8, 1971 as the
date of the public hearing thereon; and
WHEREAS, the City Council did, by the aforesaid resolution,
authorize and direct the City Clerk to publish a notice of sale of franchise
entitled:
"NOTICE OF SALE OF FRANCHISE TO LAY A SINGLE
LINE OF PIPE FOR THE TRANSPORTATION OF AVIA-
TION JET FUEL. ";
stating all the facts and matters in connection with the granting of the fran-
chise; and
WHEREAS, the City Managerdid authorize and direct the City
Clerk to mail a copy of said notice to all property owners along the line of
the work as shown on the last equalized assessment roll; and
WHEREAS, the City Clerk did publish and mail said notice as
directed by the City Managerbefore any further action on said franchise was
taken by the City Council and an affidavit of publication and an affidavit of
mailing notice are on file in the office of the City Clerk; and
1 (),,
WHEREAS, on the 8th day of March, 1971, said hearing was
held and it was determined by the City Council to grant said pipeline fran-
chise to Shell Oil Company; and
WHEREAS, Shell Oil Company has deposited with the City Treasurer
the sums of $2, 500. 00, $1, 500. 00 and $500. 00 to cover costs and other matters
incurred and occasioned in connection with the granting of said franchise; and
WHEREAS, Shell Oil Company has filed with the City Clerk an
acceptable corporate surety bond in the sum of $50, 000. 00;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
EL SEGUNDO, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. That there be and there is hereby granted to Shell
Oil Company, a corporation, its successors or assigns, a franchise to lay,
construct, and for a period not to exceed twenty -five (25) years, and as here-
inafter 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 purpose of transporting aviation jet
fuel, together with all manholes, valves, service connections and appurten-
ances necessary and convenient to properly maintain and operate said pipe-
line, including facilities necessary for cathodic protection of said pipeline,
in, under, along and across those certain streets of the City of E1 Segundo
described on Exhibit "A" attached hereto.
SECTION 2. That Shell Oil Company, its successors or assigns,
is hereby granted said franchise upon and subject to the terms and conditions
hereinafter contained, and said grantee of said franchise shall file written
acceptance of said terms and conditions with the City Clerk within thirty (30)
days after the adoption of this ordinance. Said terms and conditions are as
follows:
That the term of said franchise shall be for a period of twenty-
five (2 5) 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 March 8, 1971, file with the clerk of the City Council
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!' 70"
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 attachments as may be neces-
sary or convenient to properly maintain and operate the pipeline laid and
constructed under said franchise, including all facilities necessary to pro-
vide cathodic protection for the pipeline, and said traps, manholes, appli-
ances, 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 con-
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I -* () "I
structed 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 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 the
City Engineer; and provided further, no pipeline laid hereunder 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 reasonably 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 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 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 loca-
tion of said pipeline in the streets and the location of all manholes, traps,
and other appliances, and attachments, as may be necessary for the pur-
pose of safely and efficiently operating and maintaining said pipeline. That
the granting of such franchise shall not 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,
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and other conduits, or structures, in or under said streets, or portions of
streets, within the boundary of the City of E1 Segundo, hereinabove described,
where said pipeline is to be laid.
That the work of laying down and constructing said pipeline 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 pro-
tective 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 other-
wise 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 indem-
nify and save the City, its officers, servants, agents and employees, harm-
less 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 subsurface installations, and that grantee
shall, within thirty (30) days after demand by City, start to change the loca-
tion 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 dili-
gently 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 by the accep-
tance of said franchise shall agree to pay immediately upon its being pre-
sented to said grantee.
That if any street or portion thereof along, across, or under
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170f"WI
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 (:jar -nage occurred, such work
to be done under the direction of said City Engineer, and to his satisfaction.
The grantee shall not commence the construction of any pipe-
lines 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 construc-
tion 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.
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 com-
puted 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 pay-
ment 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 here-
to 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 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 repre-
sentative 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
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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.
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, trans-
ferred 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 ($200. 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 test-
ing, without penalty, on two days of 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 com-
pleted 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 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 main-
tain 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 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.
SECTION 3. That this ordinance shall become effective at mid-
night on the thirtieth day from and after the final passage and adoption thereof.
SECTION 4. That the City Clerk shall certify to the passage and
adoption of this ordinance; shall cause the same to be entered in the book of
original ordinances of said City; shall make a minute of the passage and adop-
tion thereof in the records of the meeting at which the same is passed and
adopted; and shall within fifteen days after the passage and adoption thereof,
cause the same to be published once in the E1 Segundo Herald, a weekly news-
paper of general circulation, published and circulated within said City of
El Segundo and which is hereby designated for that purpose.
IRM
PASSED, APPROVED and ADOPTED this 22nd day of March
1971.
ATTEST:
City Clerk
(SEAL)
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¢Sig• A
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, JANE D. HOUGH ............ . 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 ordinance, being Ordinance No. .759 . .
is a full, true and correct original of Ordinance No. ...759 ...... of the said City of
El Segundo, California, entitled:
"AN ORDINANCE OF THE CITY OF EL SEGUNDO,
CALIFORNIA, GRANTING TO SHELL OIL COM-
PANY A FRANCHISE OF THE RIGHT FOR A
PERIOD NOT TO EXCEED TWENTY -FIVE YEARS
FROM THE GRANTING THEREOF TO LAY, CON-
STRUCT, MAINTAIN AND OPERATE A PIPELINE
SYSTEM CONSISTING OF A SINGLE LINE OF PIPE
NOT TO EXCEED TWELVE (12) INCHES IN INTER-
NAL DIAMETER FOR THE PURPOSE OF TRANS-
PORTING AVIATION JET FUEL ALONG CERTAIN
PORTIONS OF CERTAIN PUBLIC STREETS WITH-
IN SAID CITY. ";
which 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 ........ day of ................. .
19.......... , and that the same was so passed and adopted by the following vote:
AYES: Councilmen Balmer, Frederick, N4ge1 apo.TVlayor. Stephens;
NOES: Councilmen. WWI; ... .
ABSENT: Councilmen. Nona.......................................
I do hereby further certify that pursuant to the provisions of Section 36933
of the Government Code of the State of California, that the foregoing Ordinance
No. . M.... was duly and regularly published according to law and the order of
the City Council of said City in the E1 Segundo Herald, a weekly newspaper of
general circulation, printed, published and circulated within said City and that the
same was so published therein on the following date, to wit: .....................
. ity Clerk�of� the City of. El�Segundp,�California
(SEAL)
By.......................... ............
Deputy
4s»- $
Affidavit of Publication
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) as
CITY OF EL SEGUNDO )
................ .. ................................... _. ... ....._...... being first duly sworn, deposes and says: That .................... 1 ......... . � I' LC
he is, and at all of the times hereinafter mentioned was, a citizen of the United States of America,
over the age of eighteen years, and a resident of the County of Los Angeles, state of California; that he
was, at, and during all of the time of the publication of the instrument hereunto attached the ....._.....
-_ ._.......1.r nc ..................................... :
Editor of EL SEGUNDO HERALD, a newspaper of general circulation, published and circulated weekly in
the City of El Segundo, in said County and State; that said newspaper has been so published and
circulated at regular intervals of one week for more than one year immediately preceding the
publication of the instrument hereunto annexed; that said newspaper is, and was, at all of the times
herein mentioned, a newspaper of general circulation within the meaning of Section 4450 of the Political
Code of the State of California; that as provided by said section, said newspaper is published for the
dissemination of local or telegraphic news and intelligence of a general character, having a bona fide
subscription list of paying subscribers; that said newspaper is not and was not at any of the times herein
referred to, devoted to the interests, or published for the entertainment or instruction of a particular
class, profession, trade, calling, race or denomination, or for any number of such classes, professions, trades,
callings, race; or denominations, and that said newspaper is not devoted to or published for, nor was it
at any of the times herein mentioned devoted to or published for the purpose, whether avowed or
otherwise, of entertaining or instructing such classes, professions, trades, callings, races or denomin-
ations, or any of such OL&%es, professions, trades, callings, races or denominations.
That the notice, order, ordinance, resolution or instrument hereunto attached on page ............ numbered
.............. ............... _........ -------- ....---- --..................... ...................... .............._................ ......... . - ........._ ._ ....... _._...................
hereof in all respects, including subject matter, and size and arrangement of type, is a full true and
correct copy of the said notice, ordinance, resolution or instrument, in words and figures exactly as
published; that the same was set and printed in type not smaller than nonpareil and that the body of
the same was preceded with words printed in black -face type not smaller than nonpareil, describing
and expressing in general terms the purpose and character of the notice, order, ordinance, resolution
or instrument intended to be published, a; will appear from an inspection of the said annexed instru-
ment; that the .........Ur. . ��'.... _...Q.......75 ..:::............ - ...... - ..... ................._.._..........
of which the annexed is a printed copy as hereinabove stated, was published and printed in said news-
paper at least ....... i.G.E .. week ..... .)_, 1sY ........... Q11.Q ............. consecutive publication ......... commencing on the
ry i
......i.?.._.(...r day .of....__...i`:...x'Chi...... - A. D.._'.1......., and ending on the ... . ........................ day of
........... ..............I.... - ..-- - - - - -- A. D. 19...71.., and as often during said time as said newspaper was regu-
larlyissued, to -wit: ............ ...:...1?.G.� ...- J. ] .r.....L _� ............... ............................... ...- --................ -..... ......................
.............. I ...... ........... ....................... .............. ............... * .
r ............. 2L�.!s.L� �... .....- .......
Subscribed anti sworn to before me this . � ..-tA
day of ........ ..� ............................ A. D. 19 -V..
/lY .
City clerk of the City of El Seg do, County
of Los Angeles, state of California.
By.- ................. _. --------- ................................................................
Deputy City Clerk aif said City.