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Home My Public Portal About91-948 ORDINANCE NO. 91-948 AN ORDINANCE OF THE CITY OF CARSON GRANTING A PIPELINE FRANCHISE TO WICKLAND OIL COMPANY THE CITY COUNCIL OF THE CITY OF CARSON DOES ORDAIN AS FOLLOWS: Section 1. The City Council hereby grants a franchise to Wickland Oil Company, a California 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, transportation or distribution of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud, steam and other liquid substances not more hazardous than the aforesaid 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 appurtenances necessary or convenient for the exercise of the Franchisee 's business, in, under, along or across those certain streets within the City of Carson which are described in the Resolution entitled "A Resolution of the City Council of the City of Carson Delineating Certain Locations for the Installation and Operation of Pipelines or Other Facilities in Connection with a Franchise Granted to Wickland Oil Company" , adopted on October 1, 1991 Section 2 . Franchisee shall pay to the City of Carson the following amounts which shall be subject to revision as provided in paragraphs D and E of this Section 2 : A. Base Franchise Fee. A base franchise fee for the pipeline area occupied by the pipelines at an annual rate of one dollar and sixty-eight cents ($1. 68) per cubic foot. The franchise fee shall be due and payable semi-annually, at the end of each franchise payment period" , as defined in the Carson Municipal Code, during the life of the franchise, 910912 abb 0850399 (1) • Ordinance No. 91-948/Page 2 of 4 including the year of granting the franchise. Said franchise fee shall accrue at the end of each semi-annual period for the pipeline area occupied by the greatest number of feet of pipeline covered by the franchise during the franchise payment period. For purposes of this subsection 2 (A) , the pipeline area occupied by a pipeline or conduit including protective covering, pipe connections, cathodic protection facilities, pipe casings and other minor appurtenances shall be taken as equivalent to the volume occupied by a cylinder of equal length having a diameter of one inch (for metal pipe) or two inches (for plastic pipe) greater than the nominal internal diameter of the pipe or conduit but in no case with an equivalent cylinder diameter less than four inches (411) , and the payment rate therefor shall be computed to the nearest tenth of a cent per lineal foot of pipe. Pipeline area occupied by any appurtenances such as manholes or vaults shall be computed from the outside dimensions of the structure. The semi-annual fee shall be paid no later than January 1st and July 1st of each calendar year. A penalty at the rate of ten percent (10%) per month or fraction thereof beyond thirty (30) days after the payment due date shall be charged, but in no event shall said penalty exceed fifty percent (50%) . The base franchise fee for each year after the previous franchise expired and prior to the effective date of this ordinance shall be paid to the City on or before January 1, 1992 . Said fee shall be calculated based on the semi-annual fee rates set forth in this ordinance. A penalty shall accrue at the rate of ten percent (10%) per month or fraction thereof beyond the payment due date, but in no event shall said penalty exceed fifty percent (50%) . B. Base Construction Charges. At the time of commencement of installation, relocation, or replacement of any pipeline or other facility covered by the franchise, a base construction charge of $3, 384 for each one-half (1/2) -2- 910912 ttbb 0850399 (1) Ordinance No. 91-948/Page 3 of a mile of trench, or fractional part thereof, of pipeline installed, replaced or relocated in major streets, and $2 , 232 for each one-half (1/2) mile of trench or fractional part thereof installed, 'replaced or relocated in minor streets, or the City's actual inspection costs, whichever is greater. C. Base Granting Fee. A base granting fee of $1, 600 for pipelines with a total length of 1/4 mile or less or $7, 500 for pipelines with a total length of 1/4 mile or more. D. Adjustments. The amount of each fee or charge provided for in paragraphs A, B and C shall be adjusted at the time payment is due by the percentage change in the Consumer Price Index published by the Bureau of Labor Statistics, for the Los -Angeles-Anaheim-Riverside area (1982-84=100) , All Urban Consumers, for the period July 1, 1991 to the date which is sixty (60) days prior to the due date of the fee. If said Index should be discontinued, the most comparable successor index shall be used. E. Modifications. In addition to the adjustments referenced in paragraph D, above, the City reserves the right to adjust the base fees established hereunder at any time after the effective date of this ordinance. Notwithstanding the foregoing, the City may not adjust said fees pursuant to this paragraph E more than five times during the life of this franchise, and only if such adjustment is made consistent with amendment of the Carson Municipal Code provisions governing all adjustable pipeline franchise fees. Section 3 . This franchise is granted upon the terms and conditions of Chapter 8 of Article VI of the Carson Municipal Code, as may be amended from time to time, which is incorporated herein by this reference. -3- 910912 mbb 0850399 (1) • Ordine No. 91-948/Page 4 of a Section 4. The City Clerk is directed to insert the date of adoption of the Resolution entitled "A Resolution of the City Council of the City of Carson Delineating Certain Locations for the Installation and Operation of Pipelines or Other Facilities in Connection with a Franchise Granted to Wickland Oil Company" in Section 1 of this ordinance. PASSED, APPROVED, AND ADOPTED this 1cr day of October 1991. i 4Y0 ATTEST: CITY CLERK APPROVED AS TO�FORM:�Q ASSISTANT CITY ATTORNEV- Franchisee tenders herewith the granting fee in the amount of $ 7 , 606 . 00 and accepts and agrees to abide by the terms and conditions set forth in this Ordinance. Wickland Oil Company B Y Executive Vice President 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 ordinance, being Ordinance No. 91-948 passed first reading on September 17-, 1991, 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 1st day of October 1991, and that the same was passed and adopted by the following roll call vote, AYES: COUNCIL MEMBERS: DeWitt, Muise, McDonald, and Mitoma NOES: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Calas i City Clerk, City of Carson, California -4- 910912 mbb 0850399 (1)