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HomeMy Public PortalAbout86-050RESOLUTION NO. 86-050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON DECLARING ITS INTENTION TO GRANT A PIPE- LINE FRANCHISE TO CARSON ENERGY, INC. WHEREAS, Carson Energy, Inc., a California corpora- tion, has filed with the City Council of the City of Carson an application requesting that a franchise be granted to it of the character and for the purposes mentioned in the form of notice - hereinafter set forth; and WHEREAS, in the opinion of said City Council the public good requires that said franchise be granted; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carson that the said City Council intends to grant said franchise; that the character of said franchise, and the terms and conditions upon which it is proposed to be granted, are described in the form of notice hereinafter set forth; that hearing of objections to the granting of said franchise will be held at the time and place specified in the form of notice hereinafter set forth, which the City Clerk is hereby directed to publish at least once in the Carson Star, a newspaper of general circulation printed and published nearest to the City of Carson, within 15 days after the passage of this Resolution; and that said notice shall be substantially in the following words and figures: . "NOTICE OF INTENTION TO GRANT FRANCHISE "NOTICE IS HEREBY GIVEN that Carson Energy, Inc., a California corporation, has filed its application with the City Council of the City of Carson requesting that said City Council grant to it a franchise for a period of 25 years from and after the date upon which the 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 which are not more hazardous than the aforementioned substances, together with all manholes, valves, appurtenances and service connections necessary or convenient for the operation of said pipes or pipelines including con- duits, 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. "If said franchise shall be granted to it, said Carson Energy, Inc., and its assigns, hereinafter designated Grantee, will annually pay to said City the following fees: a. Base Annual Fee. A base annual fee in the following amounts: -2- 860505 Ij 0064WBR(0) Amount Per Linear Foot Pipelines with an internal diameter of 0-4 inches 23.2 cents Pipelines with an internal diameter of 6 inches 35.2 cents Pipelines with an internal diameter of 8 inches 47.1 cents Pipelines with an internal diameter of 10 inches 58.4 cents Pipelines with an internal diameter of 12 inches 70.3 cents Pipelines with an internal diameter of 14 inches 82.3 cents Pipelines with an internal diameter of 16 inches 93.5 cents Pipelines with an internal diameter of 18 inches $ 1.055 Pipelines with an internal diameter of 20 inches 1.174 Pipelines with an internal diameter of 22 inches 1.287 -2- 860505 Ij 0064WBR(0) Amount Per Linear Foot Pipelines with an internal diameter of 24 inches 1.406 Pipelines with an internal diameter of 26 inches 1.526 Pipelines with an internal diameter of 28 inches 1.638 Pipelines with an internal diameter of 30 inches 1.758 The base annual rate applicable to pipelines with an internal diameter falling between two incremental size categories shall pay a rate determined by adding the price corresponding to the lower size to a figure computed by multiplying the difference between the higher and lower price times the 'multiplier.' The 'multiplier' will be determined by dividing the difference between the size of the pipe and the lower size category by the difference between the two size categories. In determining the number of feet of pipeline upon which the annual fee will be computed, the greatest number of feet of pipeline covered by the franchise during the calendar year for which payment is made will be utilized. b. Base Construction Charges. At the time of instal- lation, relocation, or replacement of any pipeline or other facility covered by the franchise, a base construction charge of $2,350 for each one-half mile of pipeline or fractional part thereof installed, replaced or relocated on major streets, and $1,550 for each one-half mile or frac- tional part thereof on minor streets. C. Base Grantor's Fee. A base grantor's fee of $7,500.00. -3- 860505 Ij 0064WBR(0) d. Adjustments. The amount of each payment under paragraphs a, b and c shall be revised at the time payment is due in accordance with the following formula: If ninety (90) days prior to the date on which payment from the Grantee shall be due the Home Ownership Component of the Consumer Price Index for all Urban Consumers, Los Angeles -Long Beach -Anaheim area, (1967 equals 100.0) prepared by the United States Bureau of Labor Statistics, Department of Labor, shall stand at a level different than the 'base level' (as defined herein), then the rate of payment to the City shall vary from the amounts specified in paragraphs a, b and c in direct proportion as said Index has increased or decreased from the 'base level.' 'Base level' for the purposes of this paragraph shall be the level of the index on December 31, 1982. e. Modifications. The City will reserve the right to change the base annual fee at any time, but not more than five times during the life of the franchise. "The City Council of the City of Carson proposes to grant said franchise for a period of 25 years from and after the date upon which the franchise shall become effective, or until it is voluntarily surrendered or abandoned by the Grantee, 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 860505 Ij 0064WBR(0) exercise of such franchise and situated within the territorial limits of the State, municipal, or public corporation purchas- ing or condemning such property, or until such franchise is forfeited for noncompliance with its terms by Grantee. "NOTICE IS FURTHER GIVEN that the Grantee of said franchise shall file a bond, with a corporate surety authorized to conduct a surety business in the State of California, and in a form approved by the City Attorney for the City of Carson, in the penal sum of Ten Thousand Dollars ($10,000.00), conditioned that the Grantee shall well and truly observe, fulfill, and perform each term and condition of said franchise and that in case of any breach of condition of said bond, the amount of the penal sum therein named shall be recoverable from the principal and surety upon said bond. Said bond shall be filed with the Business License Supervisor of the City on or before the effec- tive date of the ordinance granting said franchise; an& if said bond is not filed, or if it does not receive the approval of the City Attorney, said franchise may be refused or forfeited and any money paid to the City in connection therewith shall be retained by the City. The Grantee will also be required to obtain insurance as provided in Section 6809 of the Carson Municipal Code. "NOTICE IS FURTHER GIVEN, that any and all persons having any objection to the granting of said franchise may appear before the City Council in the Council Chambers located at the Carson City Hall, 701 E. Carson Street, Carson, California, at 6:30 p.m. on ,Time ?.n(i , 1986 and be heard thereon; and at any time not later than the hour set for hearing objections, any person interested may make written protest stating objections against the granting of said fran- chise, which protest must be signed by the protestant and be -5- 860505 Ij 0064WBR(0) delivered to the City Clerk of said City. The City Council at the time set for hearing said objections shall proceed to hear and pass upon all protests so made. "For further particulars, reference is hereby made to said application which is on file in the Office of said City Clerk, and also to the resolution adopted by said City Council on the 5th day of May , 1986, declaring its inten- tion to grant said franchise. DATED: , 1986 City Clerk" PASSED, APPROVED, AND ADOPTED by the City Council of the City of Carson on the 5th day of May , 1986. ATTEST: CITY C ER Z APPROVED AS TO FORM: CITY ATTORNEY Q'C 860505 Ij 0064WBR(0) MAYOR 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 resolution, being Resolution No. 86-050 , was duly adopted by the City Council of said City at a regular meeting of said Council,.duly and regularly held on the 5th day of May , 1986, and that the same was so passed and adopted by the following roll call vote: AYES: COUNCILMEMBERS: Calas, DeWitt, Egan and Muise NOES: COUNCILMEMBERS: None ABSENT COUNCILMEMBERS: Mills C y C erk, City of Carson, Cali ornia -7- 860505 Ij 0064WBR(0)