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:
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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
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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.
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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
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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
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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
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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
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