Loading...
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. 1 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. 2 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 3 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: 4 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. 5 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 6 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 7 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 8 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: 9 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 10 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 11 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 12 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 13 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 14 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. 15 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. 16 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 17 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 18 APPROVED AS TO FORM APPROVED AT TO CONTENT � Noel Tapia, City Attorney Ernie z, City Manager 19 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 20