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Home My Public Portal About87-014RESOLUTION NO. 87-014 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON DECLARING ITS INTENTION TO GRANT A PIPELINE FRANCHISE TO FOUR CORNERS PIPE LINE COMPANY WHEREAS, Four Corners Pipe Line Company, a Delaware corporation, 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 aid franchise; that the character of said franchise, and the -erms 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 ereinafter 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 Df Carson, within 15 days after the passage of this Resolution; and that said notice shall be substantially in the following words and figures: Resolution No. 87-014/Page 2 of 7 "NOTICE OF INTENTION TO GRANT FRANCHISE "NOTICE IS HEREBY GIVEN that Four Corners Pipe Line Company, a Delaware 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 main- zain, operate, renew, repair, change the size of, remove or abandon in place pipes and pipelines for the collection, trans- portation 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 .forementioned substances, together with all manholes, valves, appurtenances and service connections necessary or convenient for the operation of said pipes or pipelines including con- luits, cathodic protection devices, wires, cables and other appurtenances necessary or convenient for the exercise of the 'ranchisee'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 Four Corners Pipe Line Company, and its assigns, hereinafter desig- nated Grantee, as consideration for such franchise, including :he extension, renewal, or continuation of a previously granted Franchise, shall pay to the City in lawful money of the United States the following fees: "A. Annual Fee. "Two percent (2%) of the gross annual receipts of the Grantee arising from the use, operation or possession -2- 860801 sas 0107WBR 0 Resolution No. 87-014/Page 3 of 7 of the franchise; provided, however, that such payment shall in no event be less than one percent (1%) of the gross annual receipts of the Grantee arising from the sale within the limits of the municipality of the utility service for which the franchise is awarded; or such other amounts as are provided in Section 6231 of the Public Utilities Code of the State of California. The City reserves the right to change its fees at five (5) year intervals from the effective date of the ordinance granting the franchise, if following a public hearing, such action is not in conflict with the law of the State of California. "B. Base Construction Charges. "The Grantee shall pay at the time of installation, elocation, or replacement of any pipeline or other facility yovered by the franchise, a base construction charge of Two thousand Three Hundred and Fifty Dollars ($2,350) for each 1/2 -tile of pipeline or fractional part thereof -installed, replaced )r relocated on major streets, and One Thousand Five Hundred and Fifty Dollars ($1,550) per 1/2 mile or fractional part .hereof on minor streets. The City reserves the right to change the base fees established hereunder at any time after the effective date of the ordinance granting a franchise, but the base fees applicable to any one franchise may only be changed five (5) times during the life of that particular fran- -hise. "C. Adjustments. "The amount of the base construction charges shall be revised at the time payment is due hereunder in accordance with the following formula: "1. If ninety (90) days prior to the date on which payment from the Grantee shall be due the Home -3- 860801 sas 0107WBR 0 Resolution No. 87-014/Page 4 of 7 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 hereinabove amounts in direct proportion as said Index has increased or decreased from the 'base level.' 'Base level' for the purposes of this subsection shall be the level of the Index on December 31, 1982. "2. If said Bureau shall discontinue the pre- paration of said Home Ownership Component of the Consumer Price Index for all Urban Consumers, Los Angeles -Long Beach -Anaheim area using prices prevail- ing during the year 1967 as the base of 100, and if no transposition table prepared by said Bureau is avail- able which is applicable to said year, 1967, then the amount of each annual payment shall be computed by using the successor_ or most nearly comparable successor index thereto. "3. In no event shall any charge less than the base charge established above by section B be charged. "The Grantee of this franchise shall file with the ''usiness License Supervisor of the City within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the grant of this fran- chise, and within three (3) months after the expiration of each and every calendar year thereafter, a duly verified statement showing in detail the total gross receipts of the Grantee, its successors or assigns, during the preceding calendar year, or -4- 860801 sas 0107WBR 0 Resolution No. 87-014/Page 5 of 7 such fractional calendar year, from the sale of the utility service within the City for which this franchise is granted. It shall be the duty of the Grantee to pay to the City within fifteen (15) days after the time for filing such statement, in lawful money of the United States, the specified percentage of its gross receipts for the calendar year, or such fractional calendar year, covered by such statement. Any neglect, omis- �ion or refusal by said Grantee to file such verified state- aent, or to pay said percentage, at the times or in the manner Hereinbefore provided, shall be grounds for the declaration of a forfeiture of this franchise and of all rights thereunder. "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 zntil it is voluntarily surrendered or abandoned by the irantee, or until the State or some municipal or public corpor- ation thereunto duly authorized by law shall purchase by volun _ary agreement or shall condemn and take under the power of =minent 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 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), conditioned :hat the Grantee shall well and truly observe, fulfill, and perform each term and condition of said franchise and that in -5- 860801 sas 0107WBR 0 Resolution No. 87-014/Page 6 of 7 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; and 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 .nd any money paid to the City in connection therewith shall be -etained by the City. The Grantee will also be required to btain insurance as provided in Section 6809 of the Carson Municipal Code. "NOTICE IS FURTHER GIVEN, that any end 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, 7alifornia, at 6:30 p.m. on March 9, , 1987 and be heard ,hereon; and at any time not later than the hour set for searing 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 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 Department of Finance and Administration of the City, and also to the resolution 860801 sas 0107WBR 0 Resolution No. 87-014/Page 7 of 7 adopted by said City Council on the 2nd day of February , 1987, declaring its intention to grant said franchise. "DATED: February 5. 1967 Helen S. Kawagoe City Clerk" PASSED, APPROVED, AND ADOPTED by the City Council of the City of Carson on the 2nd day of February r 1987 . ZA7?i4e 6 MAYOR PRO TE ATTEST: Y CLERK APPROVED AS TO FORM: CITY ATTORNEY 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 four; that the foregoing resolution, being Resolution No. 87-014 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 2nd day of February, 1987, and that the same was so passed and adopted by the following vote: AYES: COUNCIL MEMBERS: Calas, DeWitt, and Mills NOES: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Muise 4104. � Ck144,)k-4=. C-Tty Clerk, City bf Cars California +j S -7- F, 860801 sas 0107WBR 0