HomeMy Public PortalAbout11-1470ORDINANCE NO. 11-1470
AN ORDINANCE OF THE CITY OF CARSON, CALIFORNIA, GRANTING A NONPUBLIC
UTILITY PIPELINE FRANCHISE TO CARDINAL PIPELINE, L. P.
The City Council of the city of Carson hereby finds and resolves:
Section 1. Recitals.
A. On December 5, 2000, the City Council passed Resolution No. 00-112 delineating
certain locations for the installation and operation of pipelines or other facilities in connection
with a nonpublic utility pipeline franchise awarded to Equilon Enterprises LLC ("Equilon"
herein).
B. On December 19, 2000, the City Council adopted Ordinance No. 00-1208
granting to Equilon a twenty-five (25) year franchise to construct, lay, operate, maintain, use,
renew, repair, replace, remove, change the size and number of, and remove or abandon in place
pipes and pipelines for conducting, transporting, conveying and carrying oil, gas, petroleum, wet
gas, hydrocarbon substances, water, waste water, mud, steam and other liquid substances not
more hazardous than the aforesaid substances on, along, in, under and across designated public
streets, ways, alleys and places within the city of Carson.
C. On April 26, 2005, Equilon sold a part of its franchise to Cardinal Pipeline, L. P.
("Franchisee" herein), a California limited partnership.
D. Subsequently, Franchisee filed with the City Council an application requesting
approval of a nonpublic utility pipeline franchise.
E. On April 5, 2011, the City Council adopted Resolution No. I 1-047 to consider the
granting of a nonpublic utility pipeline franchise to Franchisee.
F. The City Council has considered the request from Franchisee and has determined
that the granting of a franchise to Franchisee is in the public interest.
Section 2. Grant of Franchise. The City Council hereby grants a nonpublic utility
pipeline franchise to Franchisee for a period of 25 years to lay or construct from time to time,
and maintain, operate, renew, repair, change the size of, remove or abandon in place pipes and
pipelines for the collection, transportation or distribution of oil, gas, gasoline, petroleum, wet
gas, hydrocarbon substances, water, wastewater, mud, steam and other liquid substances not
more hazardous than the aforementioned substances, together with all manholes, valves,
appurtenances and service connections necessary or convenient for the operation of such pipes or
pipelines including conduits, cathodic protection devices, wires, cables and other appurtenances
necessary or convenient for the exercise of the franchisee's business, in, under, along or across
any and all streets within the city of Carson, as approved from time to time by Resolution of the
City Council. The Franchise shall be solely for a nonpublic utility pipeline system.
ORDINANCE N0. 11-1470
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Section 3. Compensation. Franchisee shall pay to the city of Carson the
following amounts or the franchise will be forfeited.
Base Granting Fee.
A base granting fee of seven thousand five hundred ($7;500.00) dollars for
pipelines with a total length of one-quarter (1/4) mile or more or one thousand six
hundred ($1,600.00) dollars for pipelines with a total length of less than one-
quarter (1/4) mile shall be paid within thirty (30) days after the City Council
adopts the ordinance granting the franchise and prior to signing the written
acceptance of the franchise pursuant to Carson Municipal Code Section 6805. If
at any time during the first five (5) years following the grant of the franchise
additional pipeline is added that will result in a total length of pipeline of one-
quarter (1/4) mile or more, the seven thousand five hundred ($7,500.00) dollar
granting fee shall be required at the same time such footage is added.
Base Franchise Fee.
A base franchise fee shall be paid by the Franchisee to the city of Carson
for the pipeline area occupied by the pipelines at an annual rate of one
dollar and sixty-eight cents ($1.68) per cubic foot. The franchise fee shall
be due and payable semi-annually, at the end of each franchise payment
period, as defined in Carson Municipal Code Section 6803(h), during the
life, of the franchise, including the year of granting the franchise. Such
franchise fee shall accrue at the end of each semi-annual period for the
pipeline area occupied by the greatest number of feet of pipeline covered
by the franchise during the franchise payment period. For purposes of this
paragraph, the pipeline area occupied by a pipeline or conduit including
protective covering, pipe connections, cathodic protection facilities, pipe
casings and other minor appurtenances shall be taken as equivalent to the
volume occupied by a cylinder of equal length having a diameter of one
(1) inch (for metal pipe) or two (2) inches (for plastic pipe) greater than
the nominal internal diameter of the pipe or conduit but in no case with an
equivalent cylinder diameter less than four (4) inches, and the payment
rate therefor shall be computed to the nearest tenth of a cent per Iineal foot
of pipe. Pipeline area occupied by any appurtenances such as manholes or
vaults shall be computed from the outside dimensions of the structure.
The semi-annual fee shall be paid no later than January 1st and July 1 st of
each calendar year. A penalty at the rate of ten percent (10%) per month
or fraction thereof beyond thirty (30) days after the payment due date shall
be charged, but in no event shall such penalty exceed fifty percent (50%).
2. The city of Carson reserves the right to adjust the base fees established
above at any time after the effective date of the ordinance granting the
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ORDINANCE NO. 11-1470
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franchise, but the base fees applicable to the franchise may only be
changed five (5) times during the life of the franchise, and may only be
changed in accordance with the provisions of California Public Utilities
Code Section 6231.5(e).
Base Construction Charges.
The Franchisee shall pay at the time of the commencement of installation,
relocation, or replacement of any pipeline or other facility covered by the
franchise, a base construction charge of three thousand three hundred eighty-four
dollars ($3,384.00) for each one-half ('/2) mile of trench or fractional part thereof
installed, replaced or relocated on major streets and two thousand two hundred
thirty two dollars ($2,232.00) per one-half ('/2) mile of trench or fractional part
thereof, on minor streets or actual cost of inspection, whichever is greater. The
city of Carson reserves the right to change such base fees at any time after the
effective date of the ordinance granting the franchise, but the base fees applicable
to the franchise may only be changed five (5) times during the life of the
franchise.
Adjustments.
The amount of each base fee specified above shall be adjusted at the time
payment is due by the percentage change in the Consumer Price Index, all
Urban Consumers for the Los Angeles -Anaheim -Riverside area (1982-84
= 100), for the period July 1, 1991 to the date which is sixty (60) days
prior to the due date of the fee.
2. In no event shall any base fee be charged which is less than the base fee
amount established above.
3. The indices specified in paragraph 1 above are calculated and published
by the United States Department of Labor, Bureau of Labor Statistics. If
the Bureau discontinues the calculation or publication of the Consumer
Price Index, all Urban Consumers for the Los Angeles -Anaheim -Riverside
area (1982-84 = 100), and no transposition table is available to convert to
another index, then the amount of each annual adjustment in base fees
shall be computed by using a comparable governmental index.
Section 4. Term. The Franchise granted by this Ordinance shall commence
on and shall run for a period of twenty-five (25) years from and after its effective date, or until
such Franchise is voluntarily surrendered or abandoned by the Franchisee, or until the State or
some municipal or public corporation thereunto duly authorized by law shall purchase by
voluntary agreement or shall condemn and take under the power of eminent domain all property
actually used and useful in the exercise of such Franchise and situated within the territorial limits
of the State, municipal, or public corporation purchasing or condemning such property, or until
such Franchise is forfeited for noncompliance with its terms by the Franchisee.
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Section 5. Compliance with Law. The Franchisee shall comply with all
applicable statutes, regulations and ordinances, including, but not limited to, the insurance and
faithful performance bond requirements of Carson Municipal Code Sections 6809 and 6810.
Section 6. Acceptance.. The Franchisee shall, within thirty (30) days after passage
of this Ordinance, file with the City Clerk of the city of Carson, a written acceptance of the terms
and conditions of this Ordinance.
Section 7. CEQA. The pipelines which are the subject of this Franchise were
previously owned and operated by Equilon under Ordinance No. 00-1208. The Franchisee will
continue use of the pipelines as previously approved. Therefore, this Franchise is exempt from
the requirements of California Environmental Quality Act as a Class 1 Categorical Exemption,
Existing Facilities, pursuant to Section 15301 of the CEQA Guidelines.
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PASSED, APPROVED and ADOPTED this 1 7th day of May 2011.
ATTEST:
d
City Clerk Helen S. Kawagoe, MMC
APPROVED AS TO FORM:
City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF CARSON )
I
Mayor Jim Dear
I, Helen S. Kawagoe, City Clerk of the City of Carson, California, do hereby certify that the
whole number of members of the City Council of said City is five; that the foregoing ordinance,
being Ordinance No. 11-1470 passed first reading on May 10, 2011, was duly and regularly adopted
by the City Council of said City at a regular meeting of said Council, held on the 17th day of May,
2011, and that the same was passed and adopted by the following roll call vote:
AYES: COUNCIL MEMBERS: Mayor Dear, Ruiz-Raber, Santarina, Gipson, and Davis -Holmes
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
City Clerk Helen S. Kawago