HomeMy Public PortalAbout09-1416ORDINANCE NO. 09 -1416
AN ORDINANCE OF THE CITY OF CARSON, CALIFORNIA, GRANTING A
NONPUBLIC UTILITY PIPELINE FRANCHISE TO TESORO REFINING AND
MARKETING COMPANY
The City Council of the city of Carson hereby finds and resolves:
Section 1. Recitals.
A. On December 5, 2000, the City Council passed Resolution No. 00 -112
delineating certain locations for the installation and operation of pipelines or other
facilities in connection with a nonpublic utility pipeline franchise awarded to Equilon
Enterprises LLC ( "Equilon" herein).
B. On December 19, 2000, the City Council adopted Ordinance No. 00 -1208
granting to Equilon a twenty -five (25) year franchise to construct, lay, operate, maintain,
use, renew, repair, replace, remove, change the size and number of, and remove or
abandon in place a pipes and pipelines for conducting, transporting, conveying and
carrying oil, gas, petroleum, wet gas, hydrocarbon substances, water, waste water,
mud, steam and other liquid substances not more hazardous than the aforesaid
substances on, along, in, under and across designated public streets, ways, alleys and
places within the city of Carson.
C. On May 10, 2007, Equilon sold a part of its franchise to Tesoro Refining
and Marketing Company ( "Franchisee" herein), a Delaware corporation.
D. Subsequently, Franchisee filed with the City Council an application
requesting approval of a nonpublic utility pipeline franchise.
E. On December 2, 2008, the City Council adopted Resolution No. 08 -140 to
consider the granting of a nonpublic utility pipeline franchise to Franchisee.
F. The City Council has considered the request from Franchisee and has
determined that the granting of a franchise to Franchisee is in the public interest.
Section 2. Grant of Franchise. The City Council hereby grants a nonpublic
utility pipeline franchise to Franchisee for a period of 25 years to lay or construct from
time to time, and 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, wastewater,
mud, steam and other liquid substances not more hazardous than the aforementioned
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
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01007/0015/63072.01
ORDINANCE NO. 09 -1416
PAGE 2 OF 5
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 3. Compensation. Franchisee shall pay to the city of Carson the
following amounts or the franchise will be forfeited:
01007/0015/63072.01
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 Tess 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) dollar 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 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 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 Tess 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
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01007/0015/63072.01
ORDINANCE NO. 09 -1416
PAGE 3 OF 5
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 the
ordinance granting the franchise, 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 dollars ($3,384.00) for each one -half ( %) mile of trench or
fractional part thereof installed, replaced or relocated on major streets and
two thousand two hundred thirty two dollars ($2,232.00) 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 the
ordinance granting the franchise, 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 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.
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ORDINANCE NO. 09 -1416
PAGE 4 OF 5
Section 4. Term. The Franchise granted by this Ordinance shall
commence on and shall run for a period of twenty -five (25) years from and after its
effective date, 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 5. Compliance with Law. The Franchisee shall comply with all
applicable statutes, regulations and ordinances, including, but not limited to, the
insurance and faithful performance bond requirements of Carson Municipal Code
Sections 6809 and 6810.
Section 6. 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.
Section 7. CEQA. The pipelines which are the subject of this Franchise
were previously owned and operated by Equilon under Ordinance No. 00 -1208. The
Franchisee will continue use of the pipelines as previously approved. Therefore, this
Franchise is exempt from the requirements of California Environmental Quality Act as a
Class 1 Categorical Exemption, Existing Facilities, pursuant to Section 15301 of the
CEQA Guidelines.
[SIGNATURES ON FOLLOWING PAGE]
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01007/0015/63072.01
ORDINANCE NO. 09 -1416
PAGE 5 OF 5
PASSED, APPROVED AND ADOPTED this 3 day of , 2009.
ATTEST:
City Clerk Helen S. Kawagoe r�
APPROVED AS TO FORM:
City Attorney
Mayor Jim Dear
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. 09 -1416 passed first reading on January 14, 2009, was duly and regularly adopted by the
City Council of said City at a regular meeting of said Council, held on the 3rd day of February, 2009,
and that the same was passed and adopted by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
01007/0015/63072.01
Mayor Dear, Gipson, Santarina, Williams and Davis - Holmes
None
None
None
City Clerk, City of Carson, Calif
[MORE]
ORDINANCE NO. 09 -1416
AN ORDINANCE OF THE CITY OF CARSON, CALIFORNIA, GRANTING A
NONPUBLIC UTILITY PIPELINE FRANCHISE TO TESORO REFINING AND
MARKETING COMPANY
The City Council of the city of Carson hereby finds and resolves:
Section 1. Recitals.
A. On December 5, 2000, the City Council passed Resolution No. 00 -112
delineating certain locations for the installation and operation of pipelines or other
facilities in connection with a nonpublic utility pipeline franchise awarded to Equilon
Enterprises LLC ( "Equilon" herein).
B. On December 19, 2000, the City Council adopted Ordinance No. 00 -1208
granting to Equilon a twenty -five (25) year franchise to construct, lay, operate, maintain,
use, renew, repair, replace, remove, change the size and number of, and remove or
abandon in place a pipes and pipelines for conducting, transporting, conveying and
carrying oil, gas, petroleum, wet gas, hydrocarbon substances, water, waste water,
mud, steam and other liquid substances not more hazardous than the aforesaid
substances on, along, in, under and across designated public streets, ways, alleys and
places within the city of Carson.
C. On May 10, 2007, Equilon sold a part of its franchise to Tesoro Refining
and Marketing Company ( "Franchisee" herein), a Delaware corporation.
D. Subsequently, Franchisee filed with the City Council an application
requesting approval of a nonpublic utility pipeline franchise.
E. On December 2, 2008, the City Council adopted Resolution No. 08 -140 to
consider the granting of a nonpublic utility pipeline franchise to Franchisee.
F. The City Council has considered the request from Franchisee and has
determined that the granting of a franchise to Franchisee is in the public interest.
Section 2. Grant of Franchise. The City Council hereby grants a nonpublic
utility pipeline franchise to Franchisee for a period of 25 years to lay or construct from
time to time, and 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, wastewater,
mud, steam and other liquid substances not more hazardous than the aforementioned
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
01007/0015/63072.01
[MORE]
ORDINANCE NO. 09 -1416
PAGE 2 OF 5
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 3. Compensation. Franchisee shall pay to the city of Carson the
following amounts or the franchise will be forfeited:
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) dollar 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 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 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
01007/0015/63072.01
[MORE]
01007/0015/63072.01
ORDINANCE NO. 09 -1416
PAGE 3 C F 5
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 the
ordinance granting the franchise, 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 dollars ($3,384.00) for each one -half ( %) mile of trench or
fractional part thereof installed, replaced or relocated on major streets and
two thousand two hundred thirty two dollars ($2,232.00) per one -half (%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 the
ordinance granting the franchise, 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 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.
[MORE]
ORDINANCE NO. 09 -1416
PAGE 4 OF 5
Section 4. Term. The Franchise granted by this Ordinance shall
commence on and shall run for a period of twenty -five (25) years from and after its
effective date, 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 5. Compliance with Law. The Franchisee shall comply with all
applicable statutes, regulations and ordinances, including, but not limited to, the
insurance and faithful performance bond requirements of Carson Municipal Code
Sections 6809 and 6810.
Section 6. 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.
Section 7. CEQA. The pipelines which are the subject of this Franchise
were previously owned and operated by Equilon under Ordinance No. 00 -1208. The
Franchisee will continue use of the pipelines as previously approved. Therefore, this
Franchise is exempt from the requirements of California Environmental Quality Act as a
Class 1 Categorical Exemption, Existing Facilities, pursuant to Section 15301 of the
CEQA Guidelines.
[SIGNATURES ON FOLLOWING PAGE]
[MORE]
01007/0015/63072.01
ORDINANCE NO. 09 -1416
PAGE 5 OF 5
PASSED, APPROVED AND ADOPTED this :? day of g� � , 2009.
ATTEST:
f (� tL
City Clerk Helen S. Kawagoeu
APPROVED AS TO FORM:
(-.9,
Ci y Attorney
Mayor Jim Dear
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 No. 09 -1416 passed first reading on January 14, 2009, was duly and regularly adopted by the
City Council of said City at a regular meeting of said Council, held on the 3rd day of February, 009
and that the same was passed and adopted by the following roll call vote: '
AYES:
NOES:
ABSTAIN:
ABSENT:
COUNCIL
COUNCIL
COUNCIL
COUNCIL
01007/0015/63072.01
MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:
Mayor Dear, Gipson, Santarina, Williams and Davis - Holmes
None
None
None
City Clerk, City of Carson, Cali
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