HomeMy Public PortalAbout00-069 RSON, C
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CITY OF CARSON
CITY COUNCIL
RESOLUTION NO. 00-069
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARSON, CALIFORNIA, DECLARING ITS INTENTION TO
GRANT A NONPUBLIC UTILITY PIPELINE FRANCHISE TO
DOW CHEMICAL COMPANY
The City Council of the City of Carson hereby finds and resolves:
Section 1. Recitals.
A. Dow Chemical Company("Dow" herein), a Delaware corporation, has filed with the
City Council an application requesting that a nonpublic utility franchise be granted to it of the
character and for the purposes mentioned in the form of notice set forth in Section 4 below.
B. The City Council has determined that the public good requires the granting of the
requested franchise.
Section 2. Declaration of Intent. The City Council hereby declares its intent
to grant the franchise requested by Dow. The character of the requested franchise, and the
terms and conditions upon which it is proposed to be granted, are described in the form of
notice set forth in Section 4 below.
Section 3. Consideration of Objections. All persons having any objection to
the granting of the requested franchise may appear before the City Council and be heard
thereon in the Council Chambers located at Carson City Hall, 701 E. Carson Street, Carson,
California, on July 5, 2000 at 6:00 p.m., or as soon thereafter as the matter may be heard.
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 the requested franchise. Any
such protest shall be signed by the protestant and delivered to the City Clerk. At the time
set for hearing objections, the City Council shall proceed to hear and pass upon all protests
so made.
Section 4. Publication of Notice. The City Clerk is hereby directed to publish
at least once in the Daily Breeze, a newspaper of general circulation printed and published
nearest to the City of Carson, a notice substantially in the words and figures set forth below.
Such notice shall be published within 15 days after the passage of this Resolution.
"NOTICE OF INTENTION TO GRANT A FRANCHISE
"NOTICE IS HEREBY GIVEN that Dow Chemical Company (hereinafter referred
to as "Franchisee"), a Delaware corporation, has filed an application with the City Council
of the City of Carson requesting that the City Council grant to it a nonpublic utility 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,
CARSON CITY COUNCIL
REGULAR MEETING RESOLUTION NO. 00-069
000517 C1380-00930 trb 1391367(3) Page 1 of 4 JUNE 6, 2000
transportation or distribution of oil, gas, water, petroleum products and other hydrocarbons
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.
"If the franchise shall be granted to it, pursuant to Carson Municipal Code Section
6832, the Franchisee will pay the City of Carson the fees set forth below 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) 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 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 orvaults 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.
CARSON CITY COUNCIL
REGULAR MEETING RESOLUTION NO. 00-069
000517 C1380-00930 t1b 1391367 131 Page 2 of 4 JUNE 6, 2000
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($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
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.
1 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.
'The City Council of the City of Carson proposes to grant the requested 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 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.
"NOTICE IS FURTHER GIVEN that the Franchisee shall file a bond; with a
corporate surety authorized to conduct a surety business in the State of California, and in
CARSON CITY COUNCIL
REGULAR MEETING RESOLUTION NO. 00-069
000517 C1380-00930 trb 1391367 131 Page 3 of 4 JUNE 6, 2000
a form approved by the City Attorney for the City of Carson, in the penal sum of One
Hundred Thousand Dollars ($100,000.00), conditioned that the Franchisee shall well and
truly observe, fulfill, and perform each condition of the franchise and that in case of any
breach of condition of the bond, the whole amount of the penal sum therein named shall be
recoverable from the principal and surety upon such bond. Such bond shall be filed with the
Revenue Manager of the City on or before the effective date of the ordinance granting the
franchise. If such bond is not filed, or if it does not receive the approval of the City Attorney,
then the franchise may be refused or forfeited and any money paid to the City in connection
therewith shall be retained by the City. The Franchisee will also be required to obtain
insurance as provided in Carson Municipal Code Section 6809.
"NOTICE IS FURTHER GIVEN that all persons having any objection to the granting
of the requested franchise may appear before the City Council and be heard thereon in the
Council Chambers located at Carson City Hall, 701 E. Carson Street, Carson, California, on
July 5, 2000 at 6:00 p.m., or as soon thereafter as the matter may be heard. 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 the requested franchise. Any such protest
shall be signed by the protestant and delivered to the City Clerk. At the time set for hearing
objections, the City Council shall proceed to hear and pass upon all protests so made.
"For further particulars, reference is hereby made to the application which is on file
in the office of the City Clerk, and also to the resolution adopted by the City Council on the
6th day of June, 2000, declaring its intention to grant the requested franchise.
DATED: June 6 12000 Helen S . Kawagoe
City Clerk"
PASSED, APPROVED and ADOPTED this 6`h day of June, 2000.
ATTEST:
CITY C K 6AAYOR
APPROVED AS TO FORM:
CITY ATTORNEY
CARSON CITY COUNCIL RESOLUTION NO. 00-069
REGULAR MEETING Page 4 of 4 JUNE 6, 2000
000517 C1380-00930 ttb 1391 367(3(
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 is five; that the foregoing resolution, being Resolution No.
00-069 was duly and regularly adopted by said Council at a regular meeting duly and regularly held on the
6th day of June, 2000, and that the same was passed and adopted by the following vote:
AYES: COUNCIL MEMBERS: Mayor Fajardo, Calas, Frank, and Ontal
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Sweeney
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