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HomeMy Public PortalAbout87-801 ORDINANCE NO. 87-801 AN ORDINANCE OF THE CITY OF CARSON GRANTING A PIPELINE FRANCHISE TO SHELL OIL COMPANY THE CITY COUNCIL OF THE CITY OF CARSON DOES ORDAIN AS FOLLOWS: Section 1. The City Council hereby grants a franchise to Shell Oil Company, a Delaware corporation, for a period of 25 years from and after the date upon which this franchise shall become effective, to lay or construct from time to time, and to maintain, operate, renew, repair, change the size of, remove or abandon in place pipes and pipelines for the collection, trans- portation or distribution of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud, steam and other liquid substances which are not more hazardous than the aforementioned substances, together with all manholes, valves, appurtenances and service connections necessary or convenient for the operation of said pipes or pipelines including conduits, cathodic protection devices, wires, cables and other appur- tenances necessary or convenient for the exercise of the Franchisee's business, in, under, along or across any and all streets within the City of Carson, approved from time to time by Resolution of the City Council. Section 2. Franchisee shall pay to the City of Carson: A. Base Annual Fee. A base annual fee within sixty (60) days after the end of each calendar year and during the life of the franchise for each and every year, including the year of granting the franchise, according to the "franchise payment period" as defined in Subsection h of Section 6803 of Part I, Chapter 8, Article VI of the Carson Municipal Code, in the following amounts: Amount Per Linear Foot ~ Pipelines with an internal diameter of 0-4 inches 23 .2 cents Pipelines with an internal diameter of 6 inches 35.2 cents Pipelines with an internal diameter of 8 inches 47. 1 cents Pipelines with an internal diameter of 10 inches 58.4 cents Pipelines with an internal diameter of 12 inches 70. 3 cents Ordinance No801/Page 2 of 4 Pipelines with an internal diameter of 14 inches 82 . 3 cents Pipelines with an internal diameter of 16 inches 93 .5 cents Pipelines with an internal diameter of 18 inches $ 1. 055 Pipelines with an internal diameter of 20 inches $ 1. 174 Pipelines with an internal diameter of 22 inches $ 1.287 Pipelines with an internal diameter of 24 inches $ 1.406 Pipelines with an internal diameter of 26 inches $ 1.526 Pipelines with an internal diameter of 28 inches $ 1. 638 Pipelines with an internal diameter of 30 inches $ 1. 758 The base annual rate applicable to pipelines with an internal diameter falling between two incremental size categories shall pay a rate determined by adding the price corresponding to the lower size to a figure computed by multiplying the difference between the higher and lower price times the "multiplier. " The "multiplier" will be determined by dividing the difference between the size of the pipe and the lower size category by the difference between the two size categories. In determining the number of feet of pipeline upon which the annual fee will be computed, the greatest number of feet of pipeline covered by the franchise during the calendar year for which payment is made will be utilized. The base annual fee shall be paid no later than seventy-five (75) days following the end of the calendar year and a penalty at the rate of ten percent (10%) per month or fraction thereof beyond the payment date shall be charged, but in no event shall said penalty exceed fifty percent (50%) . B. Base Construction Charges. At the time of installation, relocation, or replacement Of any pipeline or other facility covered by the franchise, a base construction charge of $2,350 for each one-half (;) mile of pipeline or fractional part thereof installed, replaced or relocated on major streets, and $1,550 for each one-half (;) mile or fractional part thereof on minor streets. C. Base Granting Fee. A base granting fee of $7,500. -2- 870422 b A057.HBR Ordinance No. 87-801/Page 3 of 4 D. Adiustments. The amount of each payment under paragraphs A, B and C shall be revised at the time payment is due in accordance with the following formula: If ninety (90) days prior to the date on which payment from the Grantee shall be due, the Home Ownership Component of the Consumer Price Index for all Urban Consumers, Los Angeles- Long Beach-Anaheim area, (1967 equals 100. 0) prepared by the United States Bureau of Labor Statistics, Department of Labor, shall stand at a level different than the "base level" (as defined herein) , then the rate of payment to the City shall vary from the amounts specified in paragraphs A, B and C in direct proportion as said Index has increased or decreased from the "base level. " "Base level" for the purposes of this paragraph shall be the level of the index on December 31, 1982. E. Modifications. The City reserves the right to adjust the base fees established hereunder at any time after the effective date of this ordinance, but not more than five times during the life of this franchise. Section 3. Franchisee shall, prior to the operation or activation of any pipes or pipelines subject to this franchise, pay to the City of Carson all accrued fees and penalties, if applicable, relating to the pipes or pipelines which are subject to this franchise and which were previously operated by Shell Chemical Corporation under Ordinance No. 7323 of the County of Los Angeles, which ordinance expired by its terms on May ,15, 1983. Said pipes or pipelines shall not be operated or activated by the Franchisee unless and until the City Council Resolution referenced in Section 1 hereof has been adopted and has become effective. Section 4. This franchise is granted upon the terms and conditions of Chapter 8 of Article VI of the Carson Municipal -3- 870422 bm A057.NBR °. Ordinance No. 87-801/Page 4 of 4 i Code, as may be amended from time to time, which is incorporated herein by this reference. PASSED, APPROVED, AND ADOPTED this 22nd day of June , 1987. ATTEST: MAYOR J CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF CARSON ) I, Helen S. Kawagoe, City Clerk of the City of Carson, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing ordinances, being Ordinance No. 87-801 passed first reading on June 15, 1987, was duly and regularly adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 22nd day, of June , 19 87 ,, and that the same was passed and adopted by thefollowing roll call vote: - AYES: COUNCIL MEMBERS: Mitoma, Muise and Calas NOES: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: DeWitt ABSENT: COUNCIL MEMBERS: Mills dif City Clerk, City of Carson, California -4- 870422 hm A057.WBR