HomeMy Public PortalAboutOrd. 1757ORDINANCE NO. 1757
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
GRANTING A NONEXCLUSIVE FRANCHISE TO TORRANCE PIPELINE
COMPANY TO OPERATE AND MAINTAIN A PIPELINE SYSTEM FOR
THE TRANSPORTATION OF OIL AND GAS UNDER CERTAIN PUBLIC
WAYS AND PUBLIC PLACES IN THE CITY OF LYNWOOD; SETTING
FORTH CONDITIONS ACCOMPANYING A GRANT OF NONEXCLUSIVE
FRANCHISE; PROVIDING FOR AMOUNT AND METHOD OF PAYMENT
BY FRANCHISEE FOR THE PRIVILEGE GRANTED, AND PROVIDING
FOR THE TERM OF THE NONEXCLUSIVE FRANCHISE
RECITALS
WHEREAS, the Public Utilities Code Sections 6234 authorizes City to grant
nonexclusive franchises for oil and gas pipelines by ordinance;
WHEREAS, On March 18, 2008, the City Council of the City of Lynwood ("City
Council") adopted Ordinance No. 1600, which granted ExxonMobil Oil Corporation a non-
exclusive fifteen (15) year franchise to operate and maintain a pipeline system for the
transportation of oil and gas under certain public ways and public places within City
boundaries ("Franchise"); and
WHEREAS, on June 7, 2016, the City Council approved the transfer of Pipeline
Ordinance No. 1600 from the ExxonMobil Oil Corporation to Torrance Pipeline Company
LLC; and
WHEREAS, the Franchise will expire in March of 2023 and Torrance Pipeline
Company LLC desire to extend the Franchise for an additional ten (10) year term; and
WHEREAS, on December 5, 2022, Torrance Pipeline Company LLC filed a
request to extend the existing pipeline Franchise; and
WHEREAS, on March 21, 2023, pursuant to California Public Utilities Code
Section 6232, The City Council adopted Resolution No.2023.017 declaring its intent to
grant an additional ten (10) year term to Torrance Pipeline Company LLC and set a
hearing date of March 7, 2023; and
WHEREAS, on March 21, 2023, the City Council conducted a duly noticed hearing
regarding the granting of such Franchise to Torrance Pipeline Company LLC; and
WHEREAS, the City Council and Torrance Pipeline Company LLC desire to grant
Torrance Pipeline Company LLC an oil and gas pipeline franchise as further described
below.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
HEREBY ORDAIN AS FOLLOWS:
Section 1. TITLE
This ordinance shall be known and may be cited as the "Torrance Pipeline
Company LLC Franchise Ordinance."
Section 2. DEFINITIONS
For the purpose of this Ordinance, the following terms, phrases, words and their
derivations have the meaning set forth below. When not inconsistent with the context,
words used in the present tense include the future tense, words in the plural number
include the singular number, and words in the singular number include the plural number.
The word "shall" is always mandatory and not merely directory.
a. City means the City of Lynwood.
b. Council means the City Council of the City of Lynwood.
c. Code means the Municipal Code of the City of Lynwood, as amended from time
to time.
d. Department means the Department of Public Works of the City of Lynwood.
e. Director means Director of Public Works of the City of Lynwood.
f. Facilities or Appurtenances means all property of the Franchisee, including, but
not limited to, pipelines, pump stations, and service connections to the
Franchisee's Facilities, whether or not installed by the Franchisee, which are
erected, constructed, laid, operated or maintained in, upon, over, under, along
or across any street in accordance with any right or privilege granted by the
Franchise.
g.
Franchise means the privilege granted by the City of Lynwood to construct,
operate and maintain oil and gas pipelines under the streets, alleys, public
ways and public places now laid out or dedicated, and all extensions thereof,
and additions thereto, to the City of Lynwood.
h. Franchisee means Torrance Pipeline Company LLC.
Franchise Payment Period means the time period between the effective date
of the ordinance granting the franchise and June 30; and the period between
July 1 and June 30, of each successive calendar year during the term of the
franchise.
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J.
Main means any pipeline or conduit laid in, along, or approximately parallel with
any street for the collection, transmission or distribution of any substance or
commodity.
k. Major Street means any street or portion of a street designated as a major
secondary highway in the Circulation Element of the General Plan.
Minor Street means any street or portion of a street other than one designated
as a major secondary highway in the Circulation Element of the General Plan.
m. Person means any individual, firm, partnership, association, corporation,
company, or organization of any kind.
n. Service Connection means the wire, pipes, or conduits which connect the
building or place where the service or commodity supplied by the Franchisee
is used or delivered, or is made available for use or delivery, with the supply
line or supply main in the street or with the supply line or supply main on private
property.
o. Street means any road, highway, alley, land, or court or other public easement
or public place, and the space above and below it, which now or hereafter exists
in the City and with respect to which the City has the authority to grant a
Franchise.
Section 3. GRANT OF NON-EXCLUSIVE FRANCHISE
a. The privilege and Franchise is hereby granted to Franchisee, to operate and
maintain oil and gas pipelines (Facilities) under the streets, alleys, public
ways and public places now laid out or dedicated, and all extensions thereof,
and additions thereto, to the City of Lynwood, and more particularly described
as follows: A 12 -inch pipeline beginning at the southerly boundary line of the
City of Lynwood, said point being 225.12 feet northerly of Dixon Avenue and
9.3 feet westerly of centerline Alameda Street East; thence continuing
northerly along Alameda Street East ±3,708.41 feet to a point on centerline of
Fernwood Avenue North, said point 5.25 feet westerly of the centerline of
Alameda Street East; thence continuing northerly along Alameda Street East
±360.48 feet to a point 11.11 feet westerly of the centerline of Alameda Street
East and 35.47 feet northerly of the centerline of 112th Street; thence
northerly along Alameda Street East ±1,610.23 feet to a point 11.5 feet
westerly of centerline of Alameda Street East and 188.18 feet northerly of
centerline of 108th Street; thence continuing northerly along Alameda Street
East ±434.31 feet to a point being 10.15 feet westerly of centerline of
Alameda Street East and 280.22 feet northerly of Martin Luther King Jr.
Boulevard and formally Century Boulevard; thence continuing northerly along
Alameda Street East ±411.70 feet to the northerly boundary line of Lynwood,
said point being and 9.3 feet westerly of centerline of Alameda Street East; a
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total distance within the City of Lynwood of ±6,525.13 more or less all of
which is 12 -inch pipeline.
b. The right to use and occupy said streets, alleys, public ways and public
places of the purpose set forth, shall not be exclusive, and the City reserves
the right to grant a similar use of such streets, alleys, public ways and public
places, to any person at any time during the period of the Franchise.
c. The Franchise is granted subject to all of the terms and conditions contained
in this Ordinance and the City of Lynwood Municipal Code. If this Ordinance
specifies terms and conditions that augment, modify, or waive the terms and
conditions set forth in the City of Lynwood Municipal Code, the provisions of
this Ordinance will be deemed to be controlling.
Section 4. TERM
The term of the Franchise shall be for a period of two (2) years commencing thirty (30)
days atter the adoption of this Ordinance.
Section 5. ACCEPTANCE OF FRANCHISE
Within thirty (30) days after the Council's adoption of this Ordinance granting the
Franchise, the Franchisee must file with the Director, its written acceptance of the terms
and conditions of this ordinance.
Section 6. MAPS
Within ninety (90) days after the date on which any Facilities or Appurtenances have been
laid, removed or abandoned under the Franchise, the Franchisee must file with the
Department a map or maps accurately showing the "as built" location, depth, and size of
those Facilities or Appurtenances.
Section 7. INSURANCE
On or before the effective date of this Ordinance granting the Franchise, the Franchisee
must provide satisfactory evidence of having obtained policies of comprehensive general
liability and workers' compensation insurance from companies authorized to transact
business as insurers in the State of California.
a. The policy of comprehensive general liability insurance must:
1. Be issued to the Franchisee and name the City, its officers, agents, and
employees, as additional insureds.
2. Indemnify the City against all liability for personal and bodily injury, death,
and damage to property arising from activities conducted pursuant to the Franchise and
provide for the following:
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Coverage for negligent acts or omissions of the Franchisee, its
agents, servants and employees, committed in the conduct of Franchise
operations;
ii. A combined single -limit liability insurance coverage in the amount of
ten million dollars ($10,000,000.00); and
No cancellation without thirty (30) days' prior written notice of
cancellation to the Director.
b. The policy of workers' compensation insurance must:
1. Be in a form and substance previously approved by the California Insurance
Commissioner.
2. Cover all employees of Franchisee who will be employed or do work related
to the Franchise operations.
3. Provide for every benefit and payment required by the California Labor
Code, including, but not limited to, vocational rehabilitation and death benefits.
4. Be non -cancelable without thirty (30) days' prior written notice of
cancellation to the Director.
c. Franchisee must file with the Director, prior to commencement of any Franchise
operations, either:
1. Certified copies of the required insurance policies; or
2. A certificate of insurance for each of the required policies, executed by the
insurer issuing the policy, and containing the following information with respect to each
policy:
The policy number.
ii. The date upon which the policy will become effective and the date
upon which it will expire.
iii. The name of the insured and of any additional insureds.
iv. The type and limits of coverage provided by the policy.
v. A description of all endorsements that form a part of the policy.
d. Environmental Pollution Coverage, including Contractors Pollution Liability with
minimum limits of five million dollars ($5,000,000) per claim, or ten million dollars
($10,000,000) per claim if an aggregate policy is provided, insuring against all liabilities
related to environmental pollution and damage, including, but not limited to, all such
liabilities for which Franchisee would be liable pursuant to the Franchise.
e. Automobile liability insurance against claims and liability for personal injury, death,
or property damage arising from the use, construction, or maintenance of the Franchise,
providing protection in an amount no less than Two Million Dollars ($2,000,000.00) per
occurrence for personal injury, death and property damage. Said policy shall be carried
only by a financially sound insurance company admitted and licensed to do business in
the State of California and which is rated A.VII or better according to the most recent A.M.
Best Co. Rating Guide.
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f. No Franchise operations may commence until Franchisee has complied with the
provisions of this Section, and all Franchise operations will be suspended during any
period that Franchisee fails to keep in effect the required insurance policies.
For commencement of the Franchise or any subsequent transfer of the Franchise or any
portion thereof, Franchisee shall furnish City with original endorsements, or copies of
each required policy, effecting and evidencing the insurance coverage required by
the Franchise. Notwithstanding the above, and subject to approval by City, Franchisee
may provide a program of self-insurance. Any self-insurance program maintained by
Franchisee shall comply with the provisions and the specified limits contained herein.
Franchisee may effect for its own account any insurance not required under this
Ordinance. Franchisee shall provide each year for the duration of the Franchise, written
notification to the City of its intent to self -insure.
Franchisee shall furnish evidence of all insurance policies required by this Ordinance.
City reserves the right to require Franchisee to deliver to City copies and endorsements
of all insurance policies required by this Ordinance, together with evidence reasonably
satisfactory to City of payment required for procurement and maintenance of the policy,
with the following time limits:
For insurance required at the commencement of the Franchise or any subsequent
transfer of the Franchise or any portion thereof, within ten (10) days after the
Franchise or any subsequent transfer of the Franchise or any portion thereof
becomes effective;
For insurance becoming required at a later date, at least (10) days before the
requirement takes effect, or as soon thereafter as the requirement, if new, takes
effect;
For any renewal or replacement of a policy already in existence, at least thirty (30)
days before expiration or other termination of the existing policy.
If Franchisee fails or refuses to procure or maintain insurance as required by this
Ordinance or fails or refuses to furnish City with required proof that the insurance
has been procured and is in force and paid for, City shall have the right at City's
election and on ten (10) days notice, to declare the Franchise as a forfeiture.
Section 8. FAITHFUL PERFORMANCE BOND
Franchisee must maintain on file with the Director, a corporate surety bond, approved as
to form by the City Attorney, in the penal sum of one hundred thousand dollars
($100,000.00). This bond must be issued by an admitted surety insurer approved by the
Director, and provide that Franchisee will perform each condition of the Franchise and
that, upon any breach of condition of the bond, the whole amount of the penal sum will
be deemed to be liquidated damages and will be recoverable from the principal and
sureties on the bond. If the bond, after it has been filed, becomes insufficient at any time
during the term of the Franchise, the Franchisee must obtain a new bond, in a form
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approved by the City Attorney, within ten (10) days after written notice to do so is given
by the Director.
Section 9. FORFEITURE
The Franchisee must comply with all conditions contained in this Ordinance, including
those conditions contained in the City of Lynwood Municipal Code which are incorporated
by reference in this Ordinance. Any neglect, failure or refusal by the Franchisee to comply
with any conditions of this Ordinance will constitute grounds for suspension or forfeiture
of the Franchise. Before any suspension or forfeiture of the Franchise, the City must give
to the Franchisee not less than thirty (30) days' written notice of any default. If the
Franchisee does not, within the noticed period, commence the work of compliance or,
after commencing, does not prosecute the work with due diligence to completion, the
Council may hold a hearing. Notice of the hearing must be given to the Franchisee by
certified mail not less than ten (10) days before the hearing. At that hearing the Franchisee
has the right to appear and be heard, and the Council may then determine whether the
conditions are material to the operation of the Franchise and whether the Franchisee is
in default of those conditions. The Council may, in its discretion, declare the Franchise
suspended or forfeited.
Section 10. STATE HIGHWAYS
a. If any street or portion of a street becomes a State highway, the State will succeed
to all rights reserved to the City by the Franchise, except for the right to continue to collect
the Franchise payments and such other rights as by law may remain with the City.
b. This Section applies to any street or portion of a street which becomes a State
highway and in which the Franchisee maintains its Facilities under the authorization of
the Franchise at the time that street or portion of it becomes a State highway.
Section 11. EMINENT DOMAIN
No franchise granted by the City affects the right of the City or any successor in authority
to acquire the property of the Franchisee by purchase or condemnation, and nothing
contained in this Ordinance may be construed to contract away, modify, or abridge, either
for a term or in perpetuity, the City's right of eminent domain in respect to any public utility.
Section 12. ADMINISTRATIVE COSTS
The Franchisee must pay to the City, within thirty (30) days after adoption of this
ordinance, an Administrative Fee of Two Thousand Dollars ($2,000) to cover all
administrative and advertising costs associated with the preparation and advertising of
this Ordinance.
Section 13. ASSIGNMENT
The Franchisee may not transfer or assign the Franchise or any part of it, except with the
consent of the Council. A transfer or assignment may be made only after filing with the
Council a copy of the executed instrument of transfer or assignment and a written request
for the consent of the Council to that transfer or assignment. If that executed instrument
and written request are not filed with the Council within thirty (30) days prior to the
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effective date of the proposed transfer or assignment, then the Franchise is subject to
forfeiture and the Council may, without notice, adopt an ordinance repealing this
Ordinance. In consenting to the proposed transfer or assignment, the Council may, by
ordinance, impose any additional terms and conditions upon the Franchise, and upon the
transferee or assignee, which the Council deems to be in the public interest. The
Franchisee has no right to transfer or assign the Franchise, in whole or in part, except in
the manner specified in this Section. This Section applies to any assignment, whether by
operation of law, by voluntary act of the Franchisee, or otherwise.
Section 14. PRIOR FRANCHISES
All Facilities erected, constructed, laid, operated, or maintained by the Franchisee in the
streets or other areas described in this Ordinance granting the Franchise, whether or not
originally installed by the Franchisee, and which are in existence prior to the effective date
of this Ordinance, are subject to all terms and conditions of this Ordinance upon its
effective date. This Section does not apply to Facilities which have been constructed, laid,
operated, or maintained under a prior right which did not involve the issuance of a
franchise.
Section 15. DELEGATION OF AUTHORITY/DUTIES
Wherever, in this Ordinance, a power is granted to or a duty is imposed upon a public
officer or employee, the power may be exercised or the duty may be performed by a
deputy of that officer or employee or by a person otherwise duly authorized pursuant to
statute or ordinance.
Section 16. INDEMNITY AND HOLD HARMLESS
The Franchisee shall indemnify, defend, and hold harmless the City, its officers, agents,
and employees, from and against all damages and liability arising from the use, operation,
or possession of the Franchise, and from the use, operation, and maintenance of all
Facilities erected, constructed, laid, operated or maintained under the Franchise.
Franchisee will not be liable to City for any damages resulting from or arising out of the
negligent or willful acts, errors, or omissions of the City, its employees and/or authorized
representatives.
Section 17. CONFLICTING IMPROVEMENTS
If the City or any other authorized public entity constructs or maintains any storm drain,
sewer structure, or other facility or improvement under or across any Facility of the
Franchisee which is maintained in accordance with this Ordinance, the Franchisee must
provide, at no expense to the City or other public entity, such support as is reasonably
required for the support, maintenance and protection of that facility or improvement.
Section 18. RELOCATION
In connection with any City work or improvement specified in Section 35 of this Ordinance,
if the Franchisee, after reasonable notice, fails or refuses to relocate, permanently or
temporarily, its Facilities that are located in, on, upon, along, under, over, across, or above
any street, or to pave, surface, grade, repave, resurface, or re -grade a street as required
under any provision of the Franchise, then the City may cause that work to be done. The
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City must keep an itemized account of the entire cost of that work, and the Franchisee
must reimburse the City for that cost within thirty (30) days after its receipt of an itemized
account of that cost. The Franchisee is obligated to indemnify, defend, and hold harmless
the City, its officers, agents, and employees, in accord with Section 16 of this Ordinance,
from any liability which arises or is claimed to arise from the moving, cutting, or alteration
of any of the Franchisee's Facilities, or the turning on or off of water, oil, or other liquid,
or of gas or electricity.
Section 19. DAMAGE CAUSED BY DEFECTIVE FACILITIES
If any portion of a street is damaged as a result of defective Facilities laid or constructed
under the Franchise, the Franchisee must, at its sole expense, repair that damage and
restore the street to the condition existing before the damage was incurred, all to the
satisfaction of the City. If the Franchisee, within ten (10) days after receipt of written notice
from the City instructing it to repair the damage, fails to commence compliance with those
instructions, or, after commencing compliance, fails to prosecute diligently the work to
completion, then the City may immediately undertake whatever work is necessary to carry
out those instructions. That work will be at the cost and expense of the Franchisee. By
the acceptance of the Franchise, the Franchisee agrees to pay that cost and expense
upon demand after receiving an itemized statement of reasonable costs incurred by City
in the performance of such repair. If the damage creates an immediate danger to the
public health or safety requiring immediate repair, the City may, repair that damage, and
the Franchisee must pay the reasonable cost of that repair upon demand, but only if City
takes reasonable efforts to notify Franchise of such repair action.
Section 20. HAZARDOUS SUBSTANCES
Prior to the issuance of any excavation permit for the construction or installation of a new
pipeline for the transportation of a hazardous substance in a gaseous state, or for the
transportation of hazardous liquid substances or highly volatile liquid substances, the
following conditions must be satisfied, as applicable:
a. With regard to pipelines for the transportation of a hazardous substance in a
gaseous state, approval must be obtained from the Los Angeles County Fire Department
— Petrochemical Unit. This approval will be based upon a determination that no undue
fire hazard will threaten life or property in any areas of the City where the proposed
pipeline will be located. In making this determination, the Los Angeles County Fire
Department — Petrochemical Unit must consider and report upon the following:
1. The type of substance in a gaseous state that is to be transported in the pipeline.
2. The density of population or structural development in the areas of the City where
the pipeline will be located.
3. The adequacy of water supplies for fire suppression purposes.
4. The availability of public fire protection facilities.
5. The number and location. of shut-off valves in the pipeline.
b. With regard to pipelines for the transportation of hazardous liquid substances or
highly volatile substances, including hydrocarbon substances, the Franchisee must,
unless preempted by paramount State or Federal law, submit to the Director copies of
documents previously submitted to the State Fire Marshal evidencing the following:
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1. That the new pipeline is designed to accommodate the passage of instrumented
inspection devices, and has leak mitigation and emergency response plans and
equipment as may be required by the State Fire Marshal, as provided for in section
51013(b) of the California Government Code.
2. That the newly constructed pipeline will be tested in accordance with subpart E
(commencing with section 195.300) of part 195 of title 49 of the Code of Federal
Regulations, as provided for in section 51013.5(a) of the California Government Code.
3. That the Franchisee will notify the State Fire Marshal and the Los Angeles County
Fire Department — Petrochemical Unit at least three (3) working days prior to conducting
a hydrostatic test required by the Elder California Pipeline Safety Act of 1981
(Government Code §51010 et seq.), as provided for in section 51014.3 of the California
Government Code.
4. That the Franchisee will provide to the Los Angeles County Fire Department —
Petrochemical Unit, a map or suitable diagram showing the location of the pipeline, a
description of all products to be transported within the pipeline, and a contingency plan
for pipeline emergencies that includes, without limitation, any reasonable information that
the State Fire Marshal may require, as provided for in section 51015(a) of the California
Government Code.
5. That the Franchisee will be available to meet with the Los Angeles County Fire
Department — Petrochemical Unit, at least once each calendar year to discuss and
review contingency plans for pipeline emergencies, as provided for in section 51015(e)
of the California Government Code.
6. That, with regard to any portion of the proposed pipeline that is within five hundred
feet (500') of any rail line in the City, the Franchisee will be in compliance with all
applicable regulations adopted by the State Fire Marshal governing the construction,
testing, operations, periodic inspection, and emergency operations of intrastate
hazardous liquid pipelines, as provided for in section 51015.2 of the California
Government Code.
7. That the Franchisee will comply with all applicable regulations of the State Fire
Marshal that establish procedures for maintaining, testing, and inspecting mainline valves
and check valves on the intrastate hazardous liquid pipeline, as provided for in section
51015.4 of the California Government Code.
8. That the Franchises will be in compliance with all applicable guidelines and
regulations of the State Fire Marshal relating to the spacing of valves on new pipelines
so as to limit spillage from surrounding higher ground into standard metropolitan statistical
areas and environmentally sensitive areas, as provided for in section 51016 of the
California Government Code.
9. That the Franchisee will immediately report to the Los Angeles County Fire
Department — Petrochemical Unit, as well as the office of Emergency Services, every
rupture, explosion, or fire involving the pipeline, including the testing of such pipeline, as
provided for in section 51018(a) of the California Government Code.
Section 21. COUNCIL APPROVAL OF LOCATION OF FACILITIES
With the exception of existing Facilities and on -going maintenance and operations
associated with such assets, the Franchisee may not install or operate any Facilities in
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any public street, alley, public way, or public place without first obtaining the prior approval
of the Council.
PART B. COMPENSATION
Section 22. DAMAGE TO PUBLIC PROPERTY GENERALLY
Any damage caused directly or indirectly to any public property by the Franchisee, while
exercising any right, power, or privilege under the Franchise, or while performing any duty
under the provisions of this Ordinance, must be promptly repaired by Franchisee at its
sole cost and expense.
Section 23. COMPLIANCE WITH APPLICABLE LAWS
The Franchisee shall, at all times during the term of the Franchise, comply with all
Applicable State, Federal and Local laws, ordinances, codes, rules and regulations.
Section 24. NOTICES
All notices, bills, payments, reports, or other material required to be delivered under the
terms of the Franchise shall be delivered to:
City
City of Lynwood
Public Works Director
11330 Bullis Road
Lynwood, California 90262
Franchisee
Torrance Pipeline Company
Manager Right of Way
12851 E. 166th Street
Cerritos, California 90703
Any notices, bills, payments, reports, or other material required by this Ordinance shall
be deemed received on (a) the day of delivery if delivered by hand during Franchisee's
regular business hours or by email, facsimile before or during Franchisee's regular
business hours; or b) on the third business day following deposit in the United States mail,
postage prepaid, to the addresses heretofore set in this Ordinance, or to such other
addresses as the parties may, from time to time, designate in writing.
Section 25. FEES
The Franchisee must pay to the City an annual Base Franchise Fee, for nonpublic utility
pipeline franchises for gas or oil products, of $3.51 per lineal ft. of pipeline for a 12 inch
pipeline for each for Franchise Pay Period for the Term of this Franchise.
Section 26. PRORATION OF PAYMENTS
If Facilities are abandoned by the Franchisee with the approval of the City as elsewhere
provided in this Ordinance, or if Facilities are removed by the Franchisee, the annual
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Base Franchise Fee will be prorated for that calendar year, as of the end of the calendar
month in which that abandonment or removal occurs.
Section 27. RECORDS AND INSPECTIONS
a. Franchisee must preserve for a period of five (5) years all records necessary to
determine the amount of any fee which is payable to the City under the provisions of this
Ordinance.
b. At all reasonable times, the Franchisee must permit the City to inspect all property
of the Franchisee that is erected, constructed, laid, operated, or maintained under the
Franchise, and to examine and make copies of all non-proprietary books, accounts,
papers, maps, and other records maintained by the Franchisee, or under its control, which
concern the operations, transactions, property or financial condition of the Franchisee
pertaining to the Franchise. These records must be made available to the City at a
location in the County of Los Angeles.
PART C. CONSTRUCTION
Section 28. CONSTRUCTION REQUIREMENTS
Pipelines and appurtenances must be constructed and maintained in a good and
workmanlike manner and in conformity with all applicable State, Federal and Local laws,
ordinances, codes, rules and regulations.
Section 29. NEW INSTALLATION OR REPLACEMENT
The installation or replacement of pipelines, Appurtenances, and all other Facilities
necessary for the operation, maintenance, and safety of pipelines and conduits must be
in accordance with permits issued by the Department. All proposed installations or
replacements must be reviewed and approved, if approved, by the Director as to the most
acceptable location in the City's streets.
Section 30. PERMITS
Where the provisions of any law, ordinance, code, or regulation require the issuance of
an excavation, encroachment or similar type of permit, the Franchisee may not
commence any excavation or encroachment work under the Franchise until it has
obtained that permit from the appropriate agency and/or the Department, except in cases
of emergency affecting the public health, safety or welfare, or the preservation of life or
property, in which case the Franchisee must apply for a permit not later than the next
business day after work has commenced.
The Franchisee's application for the permit issued by the Department must include a map
showing the length and proposed location of the pipeline or Appurtenance intended to be
used, and such other information as the Department may require. The Franchisee must
pay to the Department all permit fees including, but not limited to, permit inspection fees.
The Franchisee shall notify Underground Service Alert of Southern California at 1-800-
422-4133 and obtain an inquiry identification number (USA Ticket) a minimum of two (2)
working days not including day of submission, but not more than fourteen (14) calendar
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days, prior to any excavation in the vicinity of any potentially existing underground
facilities in order to verify the location of all utilities prior to the commencement of any
excavation.
The Franchisee shall be responsible for coordinating its work with all utility companies.
Section 31. WORK ON AND RESTORATION OF STREETS
a. The work of constructing, laying, replacing, maintaining, repairing or removing
those pipelines and Appurtenances authorized under the provisions of this Ordinance in,
over, under, along or across any street must be conducted so as to cause the least
possible interference with pedestrian and vehicular travel on the street. As soon as the
work is completed, all portions of the street which have been excavated or otherwise
damaged must be promptly repaired, replaced or restored and placed in as good
condition as before the commencement of such work. The restoration, repair or
replacement work may, as determined by the Director, require the resurfacing, slurry
sealing or other treatment of a street to a minimum of one driving lane, and all work must
be done to the satisfaction of the Director and at the expense of the Franchisee.
b. If a Franchisee fails or neglects to undertake or complete the repair, replacement,
or restoration work on any street, within ten (10) days after written notice has been given
to Franchisee by the Director, the City may repair, replace or restore that street at the
expense of Franchisee. Franchisee must pay to the City all costs incurred in performing
that work. The amount chargeable is the direct cost of that work, plus the current rate of
overhead then charged by the City for reimbursable work.
Section 32. FAILURE TO TIMELY COMPLY
a. If the Franchisee fails to complete any work within the time specified in a permit,
the City may require the Franchisee to pay to the City Five Hundred Dollars ($500.00) per
day as liquidated damages for each day that construction extends beyond the time
specified in the permit if the Franchisee fails to make a good faith effort to complete the
work within the time frame specified in the permit. The amount specified per day as
liquidated damages will be adjusted annually by the percentage change in CPI
commencing one year from the effective date of this Ordinance.
b. If the Franchisee fails to complete any work required by the terms and conditions
of the Franchise, or any related permits, within the required time limits, the City may
complete or cause to be completed that work at the expense of the Franchisee if the
Franchisee fails to make a good faith effort to complete the work with on the time frame
specified in the permit. The Franchisee must pay to the City the cost of performing that
work after receiving an itemized statement of reasonable costs incurred by City in the
performance of such repair. The amount chargeable to Franchisee is the direct cost of
that work, plus the current rate of overhead then charged by the City for reimbursable
work.
c. Franchisee shall not be liable or responsible to City, nor be deemed to have
defaulted under or breached this Agreement, for any failure or delay in fulfilling or
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performing arty term of this Agreement, with the exception of any obligation to pay any
fees required by this Agreement, when and to the extent such failure or delay is caused
by or results from acts beyond the Franchisee's reasonable control and cannot be
reasonably mitigated by Franchisee, including, without limitation, the following force
majeure events ("Force Majeure Event(s)") that frustrates the purpose of this
agreement: (a) acts of God; (b) flood, fire, earthquake or explosion; (c) war, invasion,
hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil
unrest; (d) government order or law; (e) actions, embargoes or blockades in effect on or
after the date of this agreement; (f) action by any governmental authority; (g) national or
regional emergency; (h) strikes, labor stoppages or slowdowns or other industrial
disturbances; (i) epidemic, pandemic or similar influenza or bacterial infection (which is
defined by the United States Center for Disease Control as virulent human influenza or
infection that may cause global outbreak, or pandemic, or serious illness); co emergency
state; (k) shortage of adequate medical supplies and equipment; (I) shortage of power
or transportation facilities; and (m) other similar events beyond the reasonable control of
Franchisee.
Section 33. COMPLETION STATEMENT
Upon the completion of the construction of any pipelines or appurtenances authorized by
the Franchise, the Franchisee must submit to the Director a statement which identifies
the permit or permits issued by the Department, the total length of pipeline authorized to
be constructed under the permit or permits, and the total length of pipelines or
Appurtenances actually laid.
Section 34. APPURTENANCES
The Franchisee has the right to construct, maintain and repair all traps, manholes,
conduits, valves, appliances, attachments, and Appurtenances (collectively referred to as
"Appurtenances") as may be necessary for the proper maintenance and operation of the
pipelines under the Franchise. Those Appurtenances must be kept flush with the surface
of the street and be located so as to conform to all applicable State, Federal and local
laws, ordinances, codes, rules and regulations, and to all permits issued by the
Department, and must not interfere with the use of the street for travel. The Franchisee
has the right, subject to all applicable State, Federal and Local laws, ordinances, codes,
rules and regulations, to make all necessary excavations in the streets for the
construction, maintenance and repair of those Appurtenances; but the Franchisee must
first obtain an excavation permit from the Department to undertake that work.
Section 35. ORDINARY REPAIR
The Franchisee may excavate in the street for pipeline repair for the number of days
agreed upon by the Franchisee and the Department; but the Franchisee must first obtain
an excavation permit from the Department to undertake that work.
Section 36. RELOCATION OF PIPELINES AND APPURTENANCES
a. The City reserves the right to change the grade, alignment, or width, of any public
street, way, alley, or place over which the Franchise is granted, including the construction
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of any subway or viaduct. If any pipelines, Facilities or Appurtenances constructed,
installed, or maintained by the Franchisee are located in a manner which prevents or
interferes with the change of grade, traffic needs, operation, maintenance, improvements,
repair, construction, reconstruction, widening, alteration or relocation of a street, the
Franchisee must permanently or temporarily relocate that Facility, at no expense to the
City, upon receipt of a written request from the Director to do so. The Franchisee must
commence that work on or before the date specified in the written request, which date
may be not less than ninety (90) days from receipt of the written request. Franchisee must
then diligently prosecute that work to completion.
b. The City reserves the right for itself, and all other public entities which are now or
may later be so authorized, to lay, construct, repair, alter, relocate, and maintain
subsurface or other facilities or improvements of any type or description within the streets
over which the Franchise is granted. If the City or other public entity determines that the
location or relocation of those facilities or improvements conflicts with the Facilities laid,
constructed or maintained under the Franchise, whether those Facilities were laid before
or after the facilities of the City or other public entity were laid, the Franchisee must
relocate those Facilities or improvements, at no expense to the City or other public entity.
The Franchisee must, on or before the date specified in a written request from the
Director, which date may not be less than ninety (90) days after receipt of the notice and
request to do so, commence work to permanently or temporarily change the location of
all Facilities which conflict with those improvements to another location which is approved
by the Director. Franchisee must then diligently prosecute the work to completion. If the
street is later designated as a State highway, the rights of the State of California will be
as provided in California section 680 of the Streets and Highways Code while it remains
a State highway.
Section 37. BREAKS OR LEAKS
If any portion of a street is damaged by reason of breaks or leaks in any pipeline, conduit,
or Appurtenance constructed or maintained under the Franchise, the Franchisee must, at
its sole expense and immediately following written or oral notification from the Director,
promptly repair that damage and put the street in as good condition as existed before that
damage or leak, all to the satisfaction of the Department. The Franchisee must obtain an
excavation permit from the Department to undertake that work.
Section 38. EMERGENCY EQUIPMENT
At all times during the term of the Franchise, the Franchisee must maintain or arrange
for, on a twenty four (24) hour basis, an emergency telephone number provided to the
Los Angeles County Fire Department Station 147, adequate emergency equipment, and
a properly trained emergency crew. The emergency equipment and crew must be
available within a radius of twenty five (25) miles from any Facilities installed or
maintained under the Franchise for the following purpose: shutting off the pressure and
the flow of substances in those Facilities in the event of an emergency resulting from an
earthquake, act of war, civil disturbance, fire, flood, or any other cause.
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Section 39. REMOVAL OR ABANDONMENT OF FACILITIES
a. Upon the expiration, revocation or termination of the Franchise, or upon the
permanent discontinuance of the use of all or a portion of its Facilities, Franchisee must,
within the following thirty (30) days, make written application to the Director for authority,
as determined by the Franchisee, either: 1) to abandon all or a portion of those Facilities
in place; or 2) to remove all or a portion of those Facilities. The application must describe
the Facilities desired to be abandoned or removed by reference to the map or maps
required by Section 6 of this Ordinance and must describe with reasonable accuracy the
physical condition of those Facilities.
b. The Director must determine whether the abandonment or removal proposed by
the Franchisee may be performed without detriment to the public interest and under what
conditions the proposed abandonment or removal may be safely completed. The Director
must then notify the Franchisee of that determination. The Franchisee must pay to the
City the cost of all tests and studies required to determine the disposition of the application
for abandonment or removal.
c. Within thirty (30) days after receipt of the notice, the Franchisee must apply for a
permit from the Department to abandon or remove all or any portion of the Facilities and
must pay all applicable fees and costs. The permit must set forth any conditions of
abandonment or removal that may be prescribed by the Director. Any abandonment of
the Facilities must be conditioned, in part, upon Franchisee's future compliance with the
provisions of Section 35 of this Ordinance.
d. Within ninety (90) days after obtaining the permit, the Franchisee must commence
and diligently prosecute to completion the work authorized by the permit.
e. If the Franchisee applies for authority to abandon in place all or a portion of its
Facilities, and the Director determines, in his or her sole discretion, that such
abandonment in place may be effected without detriment to the public interest, and the
Director accepts such abandonment in place of all or a portion of the Facilities, the
Franchisee must pay to the City an abandonment fee as follows:
Pipelines with an Internal Diameter of:
0-12 inches
13-18 inches
19-30 inches
Amount per Lineal Foot
$15.00
$22.00
$28.00
Section 40. FAILURE TO COMPLY
a. If any Facilities proposed to be abandoned "in place" and subject to prescribed
conditions are not abandoned in accordance with those conditions, the Director may issue
additional orders, including an order that the Franchisee remove any or all of those
Facilities. The Franchisee must comply with these additional orders.
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b. If the Franchisee fails to comply with the terms and conditions of abandonment or
removal as required by this Ordinance and within the time prescribed by the Director, then
the City may remove or cause to be removed those Facilities at the Franchisee's expense.
The Franchisee must pay to the City the cost of that work, plus the current rate of
overhead then charged by the City for reimbursable work after receiving an itemized
statement of reasonable costs incurred by City in the performance of such repair.
c. If, upon the expiration, revocation or termination of the Franchise, or the permanent
discontinuance of the use of all or a portion of its Facilities, the Franchisee, within thirty
(30) days thereafter, fails or refuses to make written application for the authority
referenced above, the Director will make the determination as to whether the Facilities
are to be abandoned in place or removed. The Director must then notify the Franchisee
of that determination. The Franchisee must then comply with the provisions of Section 39
of this Ordinance.
Section 41. ABANDONMENT "IN PLACE" CONDITIONS:
Facilities abandoned "in place" are subject to the condition that, if at any time after the
effective date of the abandonment, the Director determines that any Facility interferes
with a public project, Franchisee or its successor in interest must remove that Facility at
its expense when requested to do so by the City, or pay the City for the cost of that
removal.
PART D. SPECIAL PROVISIONS
Section 42. RIGHTS GRANTED
Franchisee has the right, during the term of that Franchise, to transport petroleum, oil,
gas, gasoline, and like substances through the pipelines maintained under the Franchise.
Section 43. MATERIALS USED
All pipelines used for the transportation of petroleum, oil, gas, gasoline, and like
substances, or other flammable liquids must be of standard material and in conformity
with current American Petroleum Institute pipeline specifications.
Section 44. APPROVALS
No excavation permit for a pipeline to be constructed or installed in accordance with the
Franchise may be issued unless the Franchisee has complied with all applicable
provisions of Subsection 20b of this Ordinance relating to pipelines for the transportation
of hazardous liquid substances or highly volatile liquid substances. This requirement does
not apply to emergency situations, such as those involving the mitigation of pipeline
ruptures, spills or leaks.
Section 45. REPORTS
During the term of the Franchise, and within thirty (30) days after the expiration of each
Franchise Payment Period, the Franchisee must:
a. File with the Director two (2) copies of a report, verified under penalty of perjury by
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a duly authorized representative of the Franchisee, showing for the immediately
preceding Franchise Payment Period: 1) the length of all lines in streets; 2) the
internal diameter of those lines; 3) the rate per foot per year; and 4) the total
amount due the City.
b. File with the Director a report in triplicate, showing the number of each permit
obtained for the installation of new mains during the immediately preceding
Franchise Payment Period, together with the length and size of those mains. The
Franchisee must show on this report any change in pipeline footage since the last
Franchise Payment Period, segregating that footage as to new mains laid, old
mains removed, old mains abandoned in place, and the footage of mains in any
territory annexed or incorporated since the last Franchise Payment Period.
Section 46. PAYMENTS DUE
The Franchisee's payments are due semi-annually in accordance with the Franchise
Payment Period indicated in Section 2 of this Ordinance.
Section 47. SEVERABILITY
If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason
held to be invalid or unconstitutional by a decision of any court of any competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have passed this Ordinance,
and each and every section, subsection, sentence, clause, or phrase not declared invalid
or unconstitutional without regard to whether any portion of the Ordinance would be
subsequently declared invalid or unconstitutional.
Section 48. PUBLISHING ORDINANCE
The City Clerk is directed to certify to the passage and adoption of this Ordinance and
to cause it to be posted or published as required by law and said Ordinance shall become
effective 30 days after its passage.
PASSED, APPROVED AND ADOPTED this 4th day of April 2023.
Oscar Flores, M yor
ATTEST:
Maria Quirionez, City Clerk
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APPROVED AS TO FORM APPROVED AT TO CONTENT
�
Noel Tapia, City Attorney
Ernie z, City Manager
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STATE OF CALIFORNIA )
)§
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify
that the foregoing Ordinance was passed and adopted by the City Council of the City of
Lynwood at a meeting held on the 4th day of April 2023.
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA, SOLACHE,
MAYOR PRO TEM SOTO AND MAYOR FLORES
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
aria Quifionez,
City Clerk
STATE OF CALIFORNIA )
)§
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the
Clerk of the City Council of said City, do hereby certify that the above foregoing is a full,
true and correct copy of Ordinance 1757 on file in my office and that said Resolution was
adopted on the date and by the vote therein stated. Dated this 4th day of April 2023.
Maria Quinonez,
City Clerk
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