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.
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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
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°. 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
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870422 hm A057.WBR