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HomeMy Public PortalAbout97-1111 ORDINANCE NO. 97-1111 AN ORDINANCE OF THE CITY OF CARSON GRANTING A PIPELINE FRANCHISE TO ULTRAMAR, INC. THE CITY COUNCIL OF THE CITY OF CARSON DOES ORDAIN AS FOLLOWS: Section 1. Ordinance No. 83-652 is hereby repealed in its entirety. This ordinance supersedes the franchise granted to Champlin Petroleum Company by Ordinance No. 83-652 . Section 2 . The City Council hereby grants a franchise to Ultramar, Inc. , a Nevada 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 any and all streets within the City of Carson, approved from time to time by Resolution of the City Council, which specifically designates the route of said pipes or pipelines. ry'w 5230636 Ordinance No. 97-1111, Page 2 of 5 Section 3 . Franchisee shall pay to the City of Carson the following amounts: 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, 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 2A, 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 ow 52306W 2 - Ordinance No. 97-1111, Page 3 of 5 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 franchisee acquired pipelines prior to the effective date of this ordinance shall be paid to the City on or before April 18, 1997. 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) mile of trench, or fractional part thereof, of pipeline installed, replaced or relocated in major streets, and $2 ,232 for each rjw 5230636 3 - Ordinance No. 97-1111, Page 4 of 5 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 less than 1/4 mile 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 Governmental 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. riw 52306W 4 - Ordinance No. 97-1111, Page 5 of 5 Section 4. Ultramar, Inc. shall, within thirty (30) days after the passage of this Ordinance, file with the City Clerk of the City of Carson, a written acceptance of the terms and conditions of this Ordinance. PASSED, APPROVED, AND ADOPTED this 1st day of April , 1997 . la7le OR ATTEST: CITY CLERK APPROVED AS TO FORM: 0464. TTORNEY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF CARSON ) 1, Helen S. Kawagoe, City Clerk of the City of Carson, California, do hereby certify that the whole number of members of the City Council is five; that the foregoing ordinance, being Ordinance No. 97-1111 passed first reading on March 18, 1997, 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 1 st day of April. 1997 and that the same was passed and adopted by the following roll call vote: AYES: COUNCIL MEMBERS: Fajardo, Calas, Olaes, O'Neal, and Sweeney NOES: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None L 5230M City Clerk, City of C rson, Tifornia - 5 -