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Home My Public Portal About99-1159 SON" c *$UVLI ti ORDINANCE NO. 99-1159 AN ORDINANCE OF THE CITY OF CARSON APPROVING ASSIGNMENT OF A NONPUBLIC UTILITY PIPELINE FRANCHISE BY WICKLAND OIL COMPANY TO SHORE TERMINALS, LLC THE CITY COUNCIL OF THE CITY OF CARSON DOES ORDAIN AS FOLLOWS: Section 1. Approval of Franchise Assignment. The City Council hereby approves the assignment by Wickland Oil Company (hereinafter referred to as "Assignor"), a California corporation, to Shore Terminals, LLC (hereinafter referred to as "Assignee"), a Delaware limited liability corporation, of the nonpublic utility pipeline franchise granted to the Assignor by Ordinance No. 91-948, subject to the twenty-five (25) year term established by Ordinance No. 91-948, 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 such pipes or pipelines including conduits, cathodic protection devices, wires, cables and other appurtenances necessary or convenient for the exercise of the Assignee's business, in, under, along or across any and all streets within the City of Carson, as approved from time to time by Resolution of the City Council. The franchise shall be solely for a nonpublic utility pipeline system. Section 2. Compensation. The Assignee shall pay to the City of Carson the following amounts: Base Granting Fee. A base granting fee of seven thousand five hundred ($7,500.00) dollars for pipelines with a total length of one-quarter (114) mile or more or one thousand six hundred ($1,600.00) dollars for pipelines with a total length of less than one-quarter (1/4) mile shall be paid within thirty (30) days after the effective date of this Ordinance and prior to signing the written acceptance of the franchise pursuant to Carson Municipal Code Section 6805. If at any time during the first five (5) years following the effective date of this Ordinance additional pipeline is added that will result in a total length of pipeline of one- quarter (1/4) mile or more, the seven thousand five hundred ($7,500.00) dollars granting fee shall be required at the same time such footage is added. CITY OF CARSON Page 1 ORDINANCE NO. 99-1159 990223 C 1 3 6000 9 30 trb 1 391 1 39 111 Base Franchise Fee. 1. A base franchise fee shall be paid by the Assignee to the City of Carson for the pipeline area occupied by the pipelines at an annual rate of one dollar and sixty-eight ($1.68) cents per cubic foot. The franchise fee shall be due and payable semi-annually, at the end of each franchise payment period, as defined in Carson Municipal Code Section 6803(h), during the life of the franchise, including the year of granting the franchise. Such 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 paragraph, 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 (1") inch (for metal pipe) or two (2") 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 (4") inches, 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 such penalty exceed fifty percent (50%). 2. The City of Carson reserves the right to adjust the base fees established above at any time after the effective date of this Ordinance, but the base fees applicable to the franchise may only be changed five (5)times during the life of the franchise, and may only be changed in accordance with the provisions of California Public Utilities Code Section 6231.5(e). Base Construction Charges. The Assignee shall pay at the time of the commencement of installation, relocation, or replacement of any pipeline or other facility covered by the franchise, a base construction charge of three thousand three hundred eighty- four ($3,384.00) dollars for each one-half (1/2) mile of trench or fractional part thereof installed, replaced or relocated on major streets and two thousand two hundred thirty two ($2,232.00) dollars per one-half (1/2) mile of trench or fractional part thereof, on minor streets or actual cost of inspection, whichever is greater. The City of Carson reserves the right to change such base fees at any time after the effective date of this Ordinance, but the base fees applicable to the franchise may only be changed five (5) times during the life of the franchise. Adjustments. 1. The amount of each base fee specified above shall be adjusted at the time payment is due by the percentage change in the Consumer Price CITY OF CARSON Page 2 ORDINANCE NO. 99-1159 990223 C1 380-00930 1ro 139;139111 Index, all Urban Consumers for the Los Angeles-Anaheim-Riverside area (1982-84 = 100), for the period July 1, 1991 to the date which is sixty (60) days prior to the due date of the fee. 2. In no event shall any base fee be charged which is less than the base fee amount established above. 3. The indices specified in paragraph 1 above are calculated and published by the United States Department of Labor, Bureau of Labor Statistics. If the Bureau discontinues the calculation or publication of the Consumer Price Index, all Urban Consumers for the Los Angeles-Anaheim-Riverside area (1982-84 = 100), and no transposition table is available to convert to another index, then the amount of each annual adjustment in base fees shall be computed by using a comparable governmental index. Section 3. Compliance with Law. The Assignee shall comply with all applicable statutes, regulations and ordinances, including, but not limited to, the insurance requirement of Carson Municipal Code Section 6809. Section 4. Acceptance. The Assignee shall, within thirty (30) days after 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 20" day of April, 1999. ATTEST: CITY CLERK MAYOR APPROVED AS TO FORM: CITY ATTORNEY CITY OF CARSON Page 3 ORDINANCE NO. 99-1159 990223 C1380 CC930 vb 1391139 Op 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. 99-1159, passed first reading on April 6, 1999 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 20th day of April, 1999, and that the same was passed and adopted by the following roll call vote: AYES: COUNCIL MEMBERS: Mayor Fajardo, Calas, Sweeney, Frank, and Ontal NOES: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None City Clerk, City of Car , California CITY OF CARSON Page 4 ORDINANCE NO. 99-1159 990223 C1380-00930 trb 1391139 111