HomeMy Public PortalAboutOrd. 1466
CITY OF LYNWOOD
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE NO. 1466
AN ORDINANCE OF THE CITY OF LYNWOOD GRANTING
TO PACIFIC PIPELINE SYSTEM, INC., A DELAWARE
CORPORATION, A FRANCHISE TO LAY AND USE PIPES
AND APPURTENANCES FOR TRANSMITTING AND
DISTRIBUTING OIL, OR PRODUCTS THEREOF, FOR
ANY AND ALL PURPOSES IN, UNDER, ALONG, OR
ACROSS, THE PUBLIC STREETS, WAYS, ALLEYS AND
PLACES, AS THE SAME NOW OR MAY HEREAFTER
EXIST, WITHIN THE CITY OF LYNWOOD.
THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
ORDAIN AS FOLLOWS:
Section 1. Defined Terms.
The following words and phrases that are used in
this Ordinance are defined below in Section 17: "City,"
"Franchise," Grantee," "Lay and Use," "Oil or Products
Thereof," "Pipes and Appurtenances," and "Streets."
Section 2. Grant of Franchise.
A. The right, privilege, and franchise is hereby
granted to Grantee, to use, or to lay and use, and to
operate, maintain, repair and replace, pipes and
appurtenances for transmitting and distributing oil or
products thereof for any and all purposes in, under, along,
and across certain public streets within the City, as
authorized by resolution of the City Council.
B. This franchise is granted subject to all of
the terms and conditions contained in this Ordinance, in
Chapter 17 of the Lynwood Municipal Code as amended from
time to time, and in Division 3, Chapter 2 of the California
Public Utilities Code as amended from time to time. If any
provision of this Ordinance is in conflict or inconsistent
with any provisions of Chapter 17 of the Lynwood Municipal
Code, this Ordinance will be deemed to be controlling.
C. This franchise is for a term of thirty (30)
years from and after the effective date of this Ordinance,
or until such earlier time that this franchise is forfeited
for noncompliance by the Grantee with its terms and
provisions, or it is terminated by the Grantee's voluntary
surrender or abandonment.
Section 3. Franchise Fee.
A. The Grantee must pay annually to the City at
the times specified below, in lawful money of the United
States, an annual franchise fee, as provided for in Section
6231.5 of the California Public Utilities Code. This annual
fee is currently computed as follows:
1. The length of Grantee's pipelines located within
the City, expressed in feet, is multiplied by the
applicable base rate, as adjusted in accordance with
subsection 2 below, in accordance with the following
schedule:
Pipe Size (internal Base Rate
diameter in inches) per lineal foot
0--4 $0.088
6 0.132
g 0.176
10 0.220
12 0.264
14 0.308
16 0.352
lg 0.396
2p 0.440
22 0.484
24 0.528
26 0.572
2g 0.616
30 0.660
For pipelines with an internal diameter not listed
above, the fees will be in the same proportion to the
fees of a 12-inch-diameter pipe as the diameter of the
unlisted pipe is to 12 inches.
2. The Grantee's annual payment for each lineal foot
of pipeline will be computed and revised each calendar
year as follows:
(a) The applicable base rate will be multiplied by the
Consumer Price Index, All Urban Consumers, for the Los
Angeles-Anaheim-Riverside Area ("CPI"), as published by
the United States Department of Labor, Office of
Information, for the month of September immediately
preceding the month in which payment is due and
payable, and divided by the CPI for June 30, 1989,
which is deemed to be 100.0. TJnder ro circumstances
may the multiplying factor be less than one.
(b) If the United States Department of Labor, Office
of Information, discontinues the preparation or
publication of a Consumer Price Index for the Los
Angeles-Anaheim-Riverside Area, and if no translation
table prepared by the Department of Labor is available
so as to make those statistics that are then available
applicable to the index of June 30, 1989, the City's
legislative body must prescribe a rate of payment that
will, in its judgment, vary from the rates specified in
this Section 3 in approximate proportion as commodity
consumer prices then current vary from commodity
consumer prices current in December 1988. On this
point, the determination by the City's legislative body
will be final and conclusive.
B. The Grantee must file with the City Clerk, within
15 working days after the expiration of each calendar-year
following the effective date of this franchise, a verified
statement setting forth in detail the Grantee's computation of
the annual franchise fee that is payable for the preceding
calendar year. This verified statement must be accompanied by
payment of the annual franchise fee. Any neglect, omission, or
refusal by the Grantee to file the verified statement, or to pay
the annual franchise fee, at the times or in the manner herein
provided, will constitute grounds for the declaration of a
forfeiture of this franchise and of all rights of the Grantee
hereunder.
Section 4. Termination of Other Franchises.
This franchise is granted in lieu of all other franchises
for pipelines having public utility status held by the Grantee,
or by any authorized successor of the Grantee, for the
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transmission and distribution of oil or products thereof within
the limits of the City, as those limits now or may hereafter
exist. The acceptance of this franchise will operate as an
abandonment of all such franchises within the limits of the City,
as those limits now or may hereafter exist, in lieu of which this
franchise is granted, and as an agreement to comply with all
terms and conditions of this Ordinance.
Section 5. Acceptance of the Franchise.
The franchise granted by this Ordinance does not become
effective until written acceptance thereof has been filed by the
Grantee-with the City Clerk. When so fi-led, that acceptance --
constitutes a continuing agreement by the Grantee that, if and
when the City may thereafter annex, or consolidate with,
additional territory, all franchise rights and privileges owned
by the Grantee within the limits of that additional territory
will be deemed to be abandoned.
Section 6. Acquisition of Grantee's Property by Purchase or
Eminent Domain.
The franchise granted by this Ordinance does not in any
manner or to any extent impair or affect the right of the City to
acquire the property of the Grantee, either by purchase or
through the exercise of the right of eminent domain, and nothing
herein contained may be construed to contract away, or to modify
or to abridge, either for a term or in perpetuity, the City's
right of eminent domain in respect to the Grantee, nor may this
franchise be given any value before any court or other public
authority in any proceeding of any character in excess of the
necessary publication costs and any other sums paid by Grantee to
the City at the time of the acquisition of this franchise.
Section 7. Duties of the Grantee.
The Grantee of this franchise must comply with all of the
following provisions:
A. Within 60 days after the effective date of this
franchise, Grantee must file with the City Engineer improvement
plans relating to all facilities located or proposed to be
located within the City, and a map or maps showing the location,
length and size of all such facilities that have been.or will be
installed, relocated, removed or abandoned, as may be applicable.
B. Within 6 months after the installation of any new
pipelines under this franchise, Grantee must file with the City
Engineer an "as built" map or maps showing the location, length
and size of all pipelines so installed.
C. Grantee must construct, install, operate,
maintain, replace and repair all pipes and appurtenances in
compliance with the following standards and requirements:
1. The latest revision of the American National
Standard Institute Code for Pressure Piping, ANSI/ASME B31.4-
1979.
2. American Petroleum Institute Standard 1104.
3. Part 195 of Title 49 of the Code of Federal
Regulations.
regulations.
4. Title 49, United States Code, §§2001, et se .
5. All applicable State statutes and
6. All ordinances, rules, and regulations now
existing or hereafter adopted by the legislative body of the City
in the exercise of its police powers, and not in conflict with
s~osis ~osix-Doom ~< os9z~os s - 3 -
the paramount authority of the State of California or the Federal
Government.
In the event of any conflict or inconsistency in the Federal or
State standards and requirements, the more stringent standards
and requirements will be applicable.
D. Grantee must pay to the City, on demand, the cost
of all repairs to public property made necessary by any
operations of the Grantee under this franchise.
E. Grantee will indemnify, defend, and hold harmless
the City,~its officers, agents and employees, from and-against-
any and all liability for all damages proximately resulting from
any operations under this franchise, and for all damages
proximately resulting from the failure of Grantee well and
faithful'_y to observe and perform each and every provision of
this franchise and of Division 3, Chapter 2 of the California
Public Utilities Code. Grantee is solely responsible for
compliance with all laws, regulations, and other orders, whether
federal, sate, or local, that are applicable to the installation,
operation, repair, relocation, or removal of its facilities.
City's approval of any such installation, operation, repair,
relocation, or removal does not relieve Grantee of any liability
Grantee may have for contaminated soils or other environmental
liability attributable to or arising from Grantee's pipes,
appurtenances and other facilities. Grantee acknowledges that
the City has no obligation or responsibility to undertake or to
complete any such installation, operation, repair, relocation or
removal, or to comply with any laws, regulations, or orders
applicable thereto. Grantee agrees that the City will not be
liable or responsible in any manner for any loss, claim, or
damage, including environmental damage, attributable to or
arising out of any such installation, operation, repair,
relocation, or removal.
F. Within 30 days after any City-authorized transfer,
sale, or assignment of this franchise, or any part thereof, or of
any of the privileges 'rerein granted, Grantee must provide the
City with written evidence of the consummation of that transfer,
sale, or assignment, including a certification executed by a duly
authorized officer of the Grantee.
G. If, during the term of this franchise, or upon its
expiration or revocation, the Grantee desires to discontinue the
use and to abandon all or any portion of its pipeline or
appurtenances, the Grantee must comply with the requirements of
Section 17-46 of Chapter 17 of the Lynwood Municipal Code.
H. If, for any reason, the Grantee intends to suspend
its operation of the pipeline and appurtenances for a period in
excess of 180 days, the Grantee must notify the City Engineer.
During this period of suspended operations, the Grantee must
maintain its normal safety surveillance of the pipeline and
continue the operation of all cathodic protection systems to
ensure the integrity of the pipeline. Grantee must continue
these protective measures until such time as the pipeline is
returned to service or is requested to be abandoned in accordance
with paragraph G above.
Section 8. Removal or Relocation of Grantee's Facilities.
T.n connection with any change in grade, alignment, or width
of any public street, way, alley, or place, or the construction
of any subway or viaduct, or any other street improvement of any
kind undertaken by the City in accordance with Section 6297 of
the Public Utilities Code, Grantee must, at the request of the
City and at Grantee's sole cost and expense, comply with all of
the following provisions, as applicable:
A. Within 90 days after Grantee's receipt of a notice
in writing from the City that work is to be done pursuant to any
reserved right and specifying the general nature of the work and
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the area in which the work is to be performed, the Grantee must
do all things necessary to protect and support its franchise
property during the progress of that work. If so ordered by the
City, Grantee must disconnect, remove, or relocate those pipes
and appurtenances installed, used and maintained within the
street to such extent, in such manner, and for such period as may
be necessary to permit the performance of the work in an
economical manner, and in accordance with rules and regulations
of the California Public Utilities Commission, and to permit the
maintenance, operation and use of the street improvement.
B. Grantee must pay to the City the full amount of any
increase in cost for the construction, installation,_or repair...of
any bridge, or any artificial support in or underlying any street
in which any pipes or appurtenances of the Grantee are located,
if that increase in cost is required in order to provide for the
installation, maintenance, or operation of Grantee's pipes or
appurtenances in or on the street area which the bridge or other
artificial support covers or underlies.
C. Grantee will cooperate with the City in taking all
actions reasonably necessary in order to accomplish the comple-
tion of any City street improvement project, as referenced in
this Section 8, within a reasonable period of time. After
receipt by Grantee of a notice in writing from the City that such
improvement work is to be done, the Grantee will diligently
discharge its obligations hereunder.
Section 9. Construction of Facilities in Public Rights-of-
Way.
A. The Grantee must obtain an excavation permit, and
pay the applicable fee therefor, prior to commencing any
excavation in the public right-of-way. The Grantee may obtain an
excavation permit by filing a set of excavation plans with the
City Engineer, which plans are subject to the City Engineer's
review and approval. The excavation plans must show the location
of the proposed excavation, as well as the location of all
existig pipes, sewers, cordults, improvements, and other
facilities in or under any street or public property in which the
franchise property is located or proposed to be located. The
excavation plans must also contain an adequate description of the
proposed work, including an estimate of the duration of
interference with any street traffic.
B. In addition to the excavation plans referenced
above in paragraph A, the Grantee must submit to the City
Engineer documents that evidence compliance by the Grantee with
those requirements set forth in Section 17-26 of Chapter 17 of
the Lynwood Municipal Code that are applicable to pipelines for
the transportation of hazardous liquid substances or highly
volatile substances, including hydrocarbon substances.
C. Where it is necessary to lay any underground pipes
through, under, or across any portion of a paved or macadamized
street, that work, where practicable and economically feasible,
must be done by a tunnel or bore so as not to disturb the
foundation of the paved or macadamized street. If this cannot be
done, or if it is necessary to cut the street in order to access
existing pipes and appurtenances, that work must be done pursuant
to an excavation permit, as provided in paragraph A above, to be
issued by the City Engineer upon application therefor.
D. All work is subject to inspection by the City
Engineer. All street coverings or openings, valves, vaults, and
manholes must at all times be kept flush with the surface of the
streets; provided, however, that vents for underground vaults and
manholes may, subject to the prior approval of the City Engineer,
extend above the surface of the streets when those vents are
located in parkways, between the curb and the property line. The
Grantee must provide adequate traffic safety barriers, signs,
devices, and traffic safety warning equipment in accordance with
City ordinances, rules and regulations, and must comply with such
970818 10512-00001 eyc 0592709 3 - 5 -
additional safety measures as may be required by State statutes
and regulations.
Section 10. Emergency Situations.
A. The Grantee must develop and maintain an emergency
response plan that meets all applicable requirements of Federal
and State law, and that covers all franchise operations within
the City. The emergency response plan will require the Grantee
to have available, on a 24-hour basis, personnel to operate and
maintain the pipeline, as well as adequate standby equipment and
trained standby emergency crews for the purpose of implementing
emergency-r-esponses including-repairs, oil-spill cleanup, and
other remedial actions to prevent or minimize damage, or the
threat of damage, to persons and to the environment resulting
from an earthquake, act of war, civil disturbance, flood,
leakage, rupture, explosion, fire or other cause. 'Unless
otherwise mandated by State or Federal law, the emergency
response plan must include an immediate notification program and
proof of arrangements capable of providing emergency response
services, including but not limited to traffic control, street
excavation, pipeline repair, and supplies and services as
necessary, within two (2) hours after notification of any
problem. Repairs to a public street, alley, or parkway must be
completed within 72 hours unless otherwise authorized by the City
Engineer. The City Engineer must be notified 10 days in advance
of any proposed change in those arrangements.
B. Whenever any pipeline or appurtenance breaks or
leaks so as to cause the release of oil or products thereof into
the public right-of-way, Grantee, and any other person using or
controlling the pipeline or appurtenance, must immediately notify
the City's Fire Department and Public Works Department and must
implement precautionary safety measures including traffic
control, system shutdown, valve closures, and public
notification. In the event of an emergency that threatens life,
health, safety, or property, and where it is not possible to
obtain an excavation permit prior to commencement of the work,
the Grantee may commence that work; provided, however, that
within 72 hours thereafter the Grantee must make application to
the City Engineer for an excavation permit in accordance with the
procedures specified herein. The City Engineer may impose
conditions upon the issuance of the excavation permit, and all
work will be subject to inspection. Adequate traffic safety
barriers must be maintained at all times, and any damaged portion
of the street must be restored to its original condition.
Section 11. Repair of Damage to Public Rights-of-Way.
A. If any portion of any street is damaged by reason
of defects.in any of the pipes and appurtenances maintained or
constructed by Grantee, or by reason of any other cause
attributable to or arising from the operation of any pipes and
appurtenances constructed or maintained by Grantee, the Grantee
must, at its sole cost and expense, immediately repair all damage
and restore the street to the condition existing before that
damage occurred. This work must be done under the direction of
the City Engineer, and to the reasonable satisfaction of the City
Engineer. Grantee must repair the damage and restore the street
within 3 working days after written demand therefor by the City
Engineer, or such other period as the City Engineer may authorize
when required for the protection of the public health and safety.
B. If the Grantee, after reasonable notice, fails or
refuses to pave, surface, grade, repave, resurface, or regrade as
required by the provisions of this franchise, the City may cause
the work to be done and will prepare an itemized account of all
costs incurred. The Grantee will reimburse the City for all such
costs, including reasonable administrative overhead expenses,
within 30 days after presentation to Grantee of an itemized
account of those costs.
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Section 12. Disclaimer Regarding Information Provided by
the City.
Grantee acknowledges that the City's records may not be
complete and that pipes and appurtenances previously unknown to
the City are frequently discovered. Consequently, by granting
this franchise, or by approving any excavation permit requested
by Grantee, the City does not warrant the accuracy of information
supplied to the Grantee by the City regarding the location or
existence of other facilities. Nothing herein may be deemed to
make the City, or any officer, agent, or employee of the City,
responsible or liable to the Grantee, or to any other person, by
virtue of~the City's approval of excavation permit plans,
regardless of whether any information is supplied by the City to
the Grantee pertaining to the location of existing pipes,
facilities, or other improvements on, in, or under any street or
other public property.
Section 13. Remedies Upon Grantee's Default.
A. If the Grantee fails, neglects or refuses to comply
with any of the provisions or conditions of this franchise, and
does not, within 10 days after written demand for compliance,
begin the work of compliance, or after commencing that work of
compliance, fails to prosecute that work with due diligence to
completion, then the City, acting by and through its legislative
body, may declare this franchise to be forfeited.
B. In the event of noncompliance by the Grantee with
any of the conditions of this franchise, the City may, in
addition to all other remedies provided for herein, bring suit
for the forfeiture or termination of this franchise.
C. If Grantee is unable to comply with any of the
terms, provisions, or conditions of this franchise by reason of
strikes, riots, acts of God, acts of public enemies, or other
such causes beyond its control, Grantee will not be deemed to be
in default or to have forfeited its rights under the franchise if
it commences and prosecutes such compliance with reasonable
promptness as soon as it is possible to do so.
Section 14. Filing of Documents of the Grantee.
Within 3o days after passage and adoption of this Ordinance
granting the franchise, the Grantee must file with the designated
officers of the City the following instruments or documents:
A. File with the City Clerk the Grantee's
written acceptance of the terms and
conditions of this Ordinance.
B. File with the City Clerk the following:
(1) A copy of the Grantee's policy of Worker's
Compensation Insurance covering the Grantee's
statutory obligations to its employees under
California law. If Grantee is self-insured,
evidence must be provided that Grantee has been
certified by the state to self-insure and that the
required bond is in effect.
(2) A copy of the policies of liability
insurance, or, in lieu thereof, certificates
evidencing that insurance, which policies must be
in compliance with the requirements of Section 17-
10 of Chapter 17 of the Lynwood Municipal Code.
(3) Evidence that the State Fire Marshal has
certified that the Grantee has demonstrated
sufficient financial responsibility to respond to
liability in the maximum amount of one hundred
million dollars ($100,000,000) as required by
Civil Code Section 3333.4.
970818 10512-00001ayc 0592709 3 - 7 -
C. File with the Director of Public Works,
on or before the effective date of this
Ordinance, a bond issued by an admitted
surety insurer, and in a form approved by the
City Attorney, in the penal sum of one
hundred thousand dollars ($100,000),
conditioned that the Grantee will well and
truly observe, fulfill, and perform each
condition of the franchise, and that in case
of any breach of condition of the bond, the
whole amount of the penal sum therein
specified will be recoverable from the
principal and surety upon that bond. If the
bond is not filed, or if it does not receive
the approval of the City Attorney, the
franchise may be revoked or forfeited and any
money paid to the City in connection
therewith will be retained by the City.
Section 15. Reimbursement of Publication Expenses.
The Grantee must pay to the City a sum of money sufficient
to reimburse the City for all posting and publication expenses
incurred in connection with the granting of this franchise. That
payment must be made by Grantee within 30 days after the City
provides to the Grantee a written statement of those expenses.
Section 16. Miscellaneous Provisions.
A. Cumulative Remedies. No provision of this
franchise having the purpose of securing the enforcement of its
terms and conditions will be deemed to be an exclusive remedy, or
to afford the exclusive procedure, for the enforcement of those
terms and conditions, and the remedies and procedures herein
provided, in addition to those provided by law, are deemed to be
cumulative.
B. Notices. Where the manner of service of any
notice required to be giver. u:,der the terms of this franchise is
not specified, that notice may be served as follows:
(1) Upon the City, by personally serving the City
Manager or the City Clerk, or by addressing a written notice to
the City Clerk of the City of Lynwood, at 11330 Bullis Road,
Lynwood; California 90262, and depositing that notice in the
United States mail, postage prepaid.
(2) Upon the Grantee, by personal delivery to the
Secretary of the corporation or by addressing a written notice to
Grantee addressed to the General Manager, Pacific Pipeline
System, Inc., 333 South Grand Avenue, Suite 1600, Los Angeles,
California 90071, and depositing that notice in the United States
mail, postage prepaid.
Either party may change its address for delivery of
notice by delivering written notice of any change of address to
the other party.
C. Costs of Litigation. If any legal action is
instituted to enforce any terms and conditions of this franchise,
or to recover damages attributable to an alleged breach of any
terms and conditions of this franchise, the prevailing party is
entitled to recover from the losing party all reasonable costs
and expenses incurred in that litigation and such amount as the
court may determine to be reasonable attorney's fees for the
representation of the prevailing party in that action or
proceeding.
D. Governing Law. The terms and provisions of this
ordinance granting the franchise will be interpreted and
construed in accordance with the laws of the State of California.
970616 10512-00001 syc 0592709 3 - 8
Section 17. Definitions.
Whenever the words or phrases defined in this section are
used in this Ordinance, they have the following meanings:
A. "City" means the City of Lynwood, a municipal
corporation of the State of California, in its present
incorporated form or in any later reorganized, consolidated,
enlarged, or reincorporated form.
B. "Franchise" means the authorization from the City
to the Grantee to transmit and distribute oil or products thereof
for any and all purposes in, under, along, or across the public
streets, ways, alleys, and places in the City by means of pipes
and appurtenances.
C. "Grantee" means Pacific Pipeline System, Inc., a
corporation organized and existing under the laws of the State of
Delaware, and its lawful successors or assigns.
D. "Lay and use" means to lay, construct, erect,
install, operate, maintain, use, repair, replace, or remove.
E. "oil or products thereof" means oil, gasoline,
petroleum, wet gas, hydrocarbon substances, water, waste water,
mud, steam and other liquid substances not more hazardous than
the aforesaid substances.
F. "Pipes and appurtenances" means pipes, pipelines,
manholes, valves, scraper traps, flanges, appurtenances and
service connections necessary or convenient for the operation of
those pipes or pipelines, including conduits, cathodic protection
devices, a fiber optic cable communications system, wires, cables
and other appurtenances necessary or convenient for the exercise
of the Grantee's business in, upon, along, across, or under those
streets of the City that are described in the Resolution entitled
"A Resolution of the City Council of the City of Lynwood
Delineating Certain Locations for the Installation and Operation
of Pipelines and Other Facilities in Connection with a Franchise
Granted to Pacific Pipeline System, Inc.," adopted on
October 7 , 1997.
G. "Streets" means the public streets, ways, alleys,
and places within the City as the same now or may hereafter
exist, and in which the City has the authority to grant a
franchise.
Section 18.
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.
First read at a regular meeting, of the City Council. of Said City
held on the 16th 'day of September, 1997, and finally ordered published
at a regular meeting of said Council held on t 7th day of October,1997.
PAUL ICHARDS, II, MAYOR
ATTEST:
ANDREA L. HOOPER, CITY CLERK
APPROVED AS TO FORM:
V~'~Al,...:. ~. I~.~-
CITY ATTORNEY
970618 10512-00001 eyc 0592709 3 - 9
r '~+
STATE OF CALIFORNIA )
SS.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the Lynwood City Council do herPhy rertify that
the above and foregoing is a full, true and conect copy of Ordinance No. 1466 on
file in my office and that said ordinance was adopted on the NTH day of
OCTOBER , 19 97 ,and passed by the following vote:
AYES: COUNCILMEMBER BYRD, HENNING, RICHARDS
NOES: NONE
ABSENT: COUNCILMEMBER REA
~~ ~~
City Clerk, City of Lynwocd