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ORDINANCE NO. 00-1201
AN ORDINANCE OF THE CITY OF CARSON, CALIFORNIA
RENEWING A NONPUBLIC UTILITY PIPELINE FRANCHISE
GRANTED TO MOBIL OIL CORPORATION
THE CITY COUNCIL OF THE CITY OF CARSON DOES ORDAIN AS FOLLOWS:
Section 1. Renewal of Franchise. The City Council hereby renews the nonpublic
utility pipeline franchise granted pursuant to Ordinance No. 75-344 to Mobil Oil
Corporation (hereinafter referred to as "the Franchisee"), a New York corporation,
pursuant to Ordinance No. 75-344, 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, other 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
Franchisee'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 Franchisee 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 (1/4) 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 City Council
adopts the ordinance granting the franchise 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 grant of the franchise
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.
Base Franchise Fee.
1. A base franchise fee shall be paid by the Franchisee 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 p�;r cubic foot. The franchise fee shall
be due and payable semi-annually, at the end of each franchise payment
CITY OF CARSON Page 1 of 3 ORDINANCE NO. 00-1201
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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 (10) percent 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 (50) percent.
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 Franchisee 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.
Adiustments.
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 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.
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000517 C1380 00930 vb 1391 541 111
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. Term. This franchise renewal shall commence on September 4, 2000
and shall run for a period of twenty-five (25) years, or until such franchise is voluntarily
surrendered or abandoned by the Franchisee, or until the State or some municipal or
public corporation thereunto duly authorized by law shall purchase by voluntary
agreement or shall condemn and take under the power of eminent domain all property
actually used and useful in the exercise of such franchise and situated within the
territorial limits of the State, municipal, or public corporation purchasing or condemning
such property, or until such franchise is forfeited for noncompliance with its terms by the
Franchisee.
Section 4. Compliance with Law. The Franchisee shall comply with all
applicable statutes, regulations and ordinances, including, but not limited to, the
insurance requirement of Carson Municipal Code Section 6809.
Section 5. Acceptance. The Franchisee 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—day of duly , 2000.
ATTEST:
i i Z
CITY CLERK MAYOR
APPROVED AS TO FORM:
CITY ATTORNEY
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OCOS17 C1380009301r01391541ill
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. 00-1201, passed first reading on July 5, 2000 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 18th day of July,
2000, and that the same was passed and adopted by the following roll call vote:
AYES: COUNCIL MEMBERS: Mayor Fajardo, Sweeney, and Ontal
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Calas and Frank
/i
City Clerk, City of Carson, Crnia