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HomeMy Public PortalAboutOrd. 1431CITY OF L'fN:~'OOD LOS ANGELES COUNTY, CALIFORNIA ORDINANCE NO. 1431 FOLLOWS: AN ORDINANCE OF THE CITY OF LYNWOOD AMENDING THE LYNWOOD MUNICIPAL CODE BY ADDING A NEW CHAPTER 17 RELATING TO PIPELINE FRANCHISES THE CITY COUNCIL OF THE CITY OF LY?~T'i~iOOD DOES ORDAIN AS Section 1. TYie Lyrwood Municipal Code is amendefl by adding a new Chapter 17 to read as follows: "CHAPTER 17 PIPELINE FRANCHISES Part I. General Provisions and Definitions 17-1. Short Titie. This chapter may be cited as "The Pipeline F3_anchise Ordinance." 17-2. General Con~itior_c. Except as otherwise provided in the ordinance granting the franchise, every pipeline franchise granted by the City is subject to the rules, regula- tions, restrictions, terms and conditions of this chapter. The provisions of this chapter apply to every franchise to lay or construct from time to time, and to maintain, operate, renew, repair, change the size of, remove, or abandon in place pipes and pipelines for the collection, transportation, or distribution of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water., was•:.e water, 3n.~d, steam and other liquid substances which are not more hazardous than the subs~~ances *-=•~av~_~esly lister, together with all manholes, valves, appurtenances, and service connections required for the operation of those pipes or pipelines, including conduits, cathodic protection devices, wires, cables and other appurtenar..ces nece:;sary or convenient for 960131 10512-0000] ryc 0592600 (3) I. "~. the exercise of the franchisee's business, in, under, along or across any and all streets within the City. 17-3. Pole Lines. Nothing in this chapter or in any ordinance granting a franchise may be construed to permit the. franchisee to construct new poles or other facilities above ground. 17-4. Definitions. For the purpose of this Chapter, 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. a. "Council" means the City Council of the City of Lynwood. b. "Code" means the Municipal Code of the City of Lynwood. c. "Department" means the Public Works Department of the City of Lynwood. d. "Director" means Public Works Director of the City of Lynwood. e. "Franchisee" means the person who is granted a franchise, and the person to whom it is lawfully assigned. 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 960131 10512-00001 syc 0592000 (3) - 2 - maintained in, upon, over, under, along or across any street in accordance with any right or privilege granted by the franchise. g. "Franchise payment period" means the time period between the effective date of the ordinance granting the franchise and June 30 or December 31 of the same calendar year, whichever first occurs; and the period between January 1 and June 30, and July 1 and December 31 of each successive calendar year during the term of the franchise. h. "Franchise report period" means the time period between the effective date of the ordinance granting the franchise through and including June 30 or December 31 of that calendar year, whichever first occurs; and the period between January 1 and June 30, and July 1 and December 31 of each successive calendar year during the term of the franchise. i. "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 . j. "Major street" means any street or portion of a street designated as a major secondary highway-in the Circulation Element of the General Plan. k. "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. 1. "Person" means any individual, firm, partnership or corporation. m. "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 960131 10512-00001 syc 0592000 (3) - 3 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. n. "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. 17-5. Term. The ordinance granting the franchise may establish the term of the franchise, but no franchise may be for a term in excess of twenty-five (25) years. 17-6. Acceptance of Franchise. Within thirty (30) days after the Council's adoption of an ordinance granting a franchise, the franchisee must file with the City Clerk its written acceptance of the terms and conditions of that ordinance. 17-7. Nonexclusive Franchise. The grant of a franchise does not preclude the City from granting an identical or similar franchise to another person. 17-8. Chance in Status. If, after being awarded a franchise, a nonpublic utility pipeline franchisee qualifies with the California Public Utilities Commission as a public utility, that franchisee may not continue to operate under the franchise unless it obtains the consent of the Council. If the franchisee is the operator of a nonpublic utility pipeline transmitting oil or products of oil, that consent may be granted only upon the franchisee's compliance with the provisions of paragraph c of Section 17-29. 17-9. 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 960131 10512-00001 syc 0592000 (3) - 4 - ,~'~~- 1; .. ..~~.., Department a map or maps accurately showing the "as built" location, depth, and size of those facilities or appurtenances. 17-10. Insurance. On or before commencement of any franchise operations, 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: (a) Coverage for negligent acts or omissions of the franchisee, its agents, servants and employees, committed in the conduct of franchise operations; (b) A combined single-limit liability insurance coverage in the amount of ten million dollars ($10,000,000); and (c) No cancellation without thirty (30) days' prior written notice of cancellation to the Director. b. The policy of workers' compensation insurance must: 960131 10512-00001 syc 0592000(3) - cJ - 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 Division 4 of the California Labor Code, including vocational rehabilitation and death benefits. 4. Be noncancellable 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 (i) certified copies of the required insurance policies, or (ii) 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: (a) The policy number. (b) The date upon which the policy will become effective and the date upon which it will expire. (c) The name of the insured and of any additional insureds. (d) The type and limits of coverage provided by the policy. (e) A description of all endorsements that form a part of the policy. d. No franchise operations may commence until franchisee has complied with the provisions of this Section 960131 10512-00001 syo 0592000 (3) 17-10, and all franchise operations will be suspended during any period that franchisee fails to keep in effect the required insurance policies. 17-11. Faithful Performance Bond. On or before the effective date of the ordinance granting the franchise, franchisee must 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). 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 this bond is not filed before the effective date of the ordinance granting the franchise, the award of the franchise may be set aside and the ordinance granting the franchise may be repealed. If these actions are taken by the Council, any money paid in consideration for the award of the franchise will be forfeited. 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 approved by the City Attorney, within ten (10) days after written notice to do so is given by the Director. 17-12. Alternate Security. In lieu of the bond required under Subsection 17-11, the franchisee may provide alternate security to the City in such form as may be approved by the Director and the City Attorney. 17-13. Forfeiture. The franchisee must comply with all conditions contained in the ordinance granting the franchise, including those conditions contained in this Chapter 17 which are incorporated by reference in the franchise ordinance. Any neglect, failure or refusal by the franchisee to comply with 'any conditions of the franchise will constitute grounds for its 960131 10512-000OI syc 0592000 (3) - ') - suspension or forfeiture. 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 five (5) 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. 17-14. Value of Franchise. If a franchise is awarded to a grantee which is a public utility, the grantee, by accepting its terms and conditions, agrees that in any proceeding to adjust the rates of the grantee, no greater value may be placed upon the franchise than the actual amount paid for it by the grantee. 17-15. State Hiahwa~. 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 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. 17-16. 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 the franchise may be 960131 10512-00001 syo 0592000 (3) - $ - 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. 17-17. Publication Costs. The franchisee must pay to the City within thirty (30) days after receiving an itemized statement, all advertising and publishing costs, including the cost of publishing the ordinance, which are incurred in granting the franchise. 17-18. 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 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 the franchise. 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. 17-19. Prior Franchises. All facilities erected, constructed, laid, operated, or maintained by the franchisee in the streets or other areas described in the ordinance granting the franchise, whether or not originally installed by the franchisee, and which are in existence prior to the effective date of the ordinance, are subject to all terms and conditions of 960131 10512-00001syc 0592000 (3) - 9 - the 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. 17-20. Delegation of 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. 17-21. Hold Harmless. The franchisee is obligated to 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. 17-22. Standards. All facilities erected, constructed, laid, operated, or maintained under the provisions of the franchise must comply with all ordinances, rules and regulations now existing or hereafter adopted by the City. 17-23. Conflictinq 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 the 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. 17-24. Relocation. After reasonable notice, if the franchisee fails or refuses to relocate permanently or temporarily its facilities located in, on, upon, along, under, 960131 10512-00001 syc 0592000 (3) - 1 ~ - over, across or above any street, or to pave, surface, grade, repave, resurface or regrade a street as required under any provision of the franchise, then the City may cause that work to be done. The 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, 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. 17-25. 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. If the damage creates an immediate danger to the public health or safety requiring immediate repair, the City may without notice repair that damage, and the franchisee must pay the reasonable cost of that repair upon demand. 17-26. Hazardous Substances. Prior to the issuance of any excavation permit for the construction or installation of pipelines for the transmission of flammable liquids or gases heavier than air, approval must be obtained from the Fire Chief. 960131 10512-00001 syc 0592000 (3) - 11 - This approval will be based upon a determination that no undue fire hazard will threaten life or property in any areas where the proposed pipeline will be located. In making this determination, the Fire Chief must consider the following: a. The type of commodity or substance to be transmitted in the pipeline. b. The density of population or structural development in the areas where the pipeline will be located. c. The adequacy of water supplies for fire suppression purposes. d. The availability of public fire protection facilities. e. The number and location of shut-off valves in the pipeline. 17-27. Council Approval of Location of Facilities. A franchisee may not install or operate any facilities in any public street, highway, road, alley or other public place without first obtaining the prior approval of the Council. That approval must be expressed by resolution. 17-28. Damaae to Public Property General. Any damage caused directly or indirectly to any public property by the franchisee, while exercising any right, power, or privilege under a franchise, or while performing any duty under the provisions of this section, must be promptly repaired by franchisee at its sole cost and expense. 960131 10512-00001 syc 0592000 (3) - 12 - Part II. Compensation 17-29. Public Utilities Transmitting Oil or Products of Oil. As consideration for the award of any franchise to a public utility for a pipeline system transmitting oil or products of oil, including the extension, renewal, or continuation of a previously granted franchise, the franchisee must pay to the City the following fees: a. Base Annual Fee. During the term of the franchise, a base annual fee must be paid within thirty (30) days after the end of each calendar year, including the year in which the franchise is granted. The base annual fee is determined by multiplying the pipe length expressed in feet by the applicable base rate, as follows: Pipe Size (Internal) Diameter in Inches Base Rate Per Lineal Foot 0-4 6 8 10 12 14 16 18 20 22 24 26 28 30 $0.088 0.132 0.176 0.220 0.264 0.308 0.352 0.396 0.440 0.484 0.528 0.572 0.616 0.660 vbm3~ iosiz-ooooi eye osvzooo ~> - 13 - For pipelines with an internal diameter not listed above, the fees shall 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. The formula used in computing the annual fee shall apply to any replacement, modification or extension of the pipeline. b. Adjustments. 1. The base annual fee provided for in paragraph a of this section will be adjusted at the time payment is due by multiplying the base annual fee by the Consumer Price Index, All Urban Consumers, for the Los Angeles-Anaheim-Riverside Area as published by the United States Department of Labor, Office of Information, for the month of September immediate- ly preceding the month in which payment is due, and divided by the Consumer Price Index for June 30, 1989 (June 30, 1989 = 100.0). The multiplying factor may not be less than one. 2. In no event will a base annual fee be charged which is less than the amount of the base annual fee established by paragraph a of this section. 3. The indices specified in subparagraph 1 of this paragraph b 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 (June 30, 1989 = 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. 960131 10512-00001 syc 0592000 (3) - 1, Q - c. Conversion of Nonpublic Utilitv to Public Utili~ Upon the expiration of a franchise issued to the operator of a nonpublic utility pipeline transmitting oil or products of oil, if that operator has converted or seeks to convert to public utility status, all of the following must be established to the satisfaction of the Council in accordance with Public Utilities Code Section 6231.5(f): 1. Its property is dedicated to the service of the public. 2. Its rates for transportation are established pursuant to tariffs filed with the California Public Utilities Commission ("Commission"). 3. Its accounts and records are established pursuant to rules and regulations adopted by the Commission. 4. It has filed an appropriate annual report with the Commission. 5. Its rates for transportation are just, reasonable, and nondiscriminatory, as evidenced either by an order of the Commission approving those rates, or an application for approval of its rates is pending with the Commission. 17-30. Public Utilities Transmitting Substances Other than Oil or Products of Oil. As consideration for the award of any franchise to a public utility for a pipeline system transmitting substances other than oil or products of oil, including the extension, renewal, or continuation of a previously granted franchise, the franchisee must pay to the City the following fees: 960131 10512-00001 syc 0592000 (3) - 15 - a. Base Annual Fee. As provided in Section 6231(c) of the California Public Utilities Code, the franchisee must pay to the City during the term of the franchise two percent (2$) of the gross annual receipts of the franchisee arising from the use, operation or possession of the franchise; but this annual payment may not be less than one percent (1$) of the gross annual receipts of the franchise derived from the sale within the boundaries of the City of the utility service for which the franchise is awarded. b. Adjustments. The City reserves the right to change the fees imposed by this section at five (5) year intervals from the effective date of the ordinance granting the franchise, if, following a public hearing, that action is not in conflict with the law of the State of California. 17-31. Nonpublic Utilities. The franchisee of any franchise awarded to any entity other than a public utility, as consideration for that franchise, including the extension, renewal, or continuation of a previously granted franchise, must pay to the City. the following fees: a. Base Granting Fee. Upon the initial grant of a franchise, or a franchise which extends, renews, or continues a previously granted franchise, a base granting fee must be paid in accordance with the following provisions, whichever is applicable: 1. For pipelines with a total length of ; mile or more, the base granting fee will be the greater of (i) seven thousand five hundred dollars ($7,500), or (ii) the product of 960131 10$12-00001 syc 0592000 (3) - 1 6 $1.21 multiplied by the number of lineal feet of pipeline. 2. For pipelines with a total length of less than ; mile, the base granting fee will be the sum of one thousand six hundred dollars ($1,600). If, at any time during the first five (5) years following the grant of a franchise, additional pipeline is added which will result in a total length of pipeline of 1/4 mile or more, payment of the base granting fee as determined in accordance with subparagraph 1 above will be required at the same time that footage is added. The base granting fee must be paid within thirty (30) days after the Council adopts the ordinance granting the frahchise and before the franchisee files its written acceptance of the ordinance under Section 17-6 of this Code. b. Base Franchise Fee. 1. The franchisee must pay to the City a base franchise fee for the area occupied by the pipeline at an annual rate of one dollar and sixty-eight cents ($1.68) per cubic foot. The base franchise fee is payable semi-annually during the term of the franchise, at the end of each "franchise payment period" as defined in Section 17-4 (g) of this chapter, including the year of granting the franchise. The base franchise fee accrues at the end of each franchise payment period for the area occupied by the greatest number of feet of pipeline during that period. For purposes of this paragraph b(1), the area occupied by a pipeline or conduit, including 960131 10512-00001syc 0592000(3) - 1 7 - protective covering, pipe connections, cathodic protection facilities, pipe casings, and other minor appurtenances, is equivalent to the volume occupied by a cylinder of equal length having a diameter of one inch (for metal pipe) or two inches (for plastic pipe) greater than the nominal internal diameter of the pipe or conduit, but in no case with an equivalent cylinder diameter less than four inches (4"). The applicable payment rate must be computed to the nearest tenth of a cent per lineal foot of pipe. The area occupied by any appurtenances, such as manholes or vaults, must be computed from the outside dimensions of the structure. The semi-annual base franchise fee must be paid no later than January 1st and July 1st of each calendar year. A penalty will be imposed at the rate of ten percent (10$) per month, or fraction thereof, beyond thirty (30) days after the payment due date. 2. The City reserves the right to adjust the base franchise fee specified above in subsection 1 at any time after the effective date of the ordinance granting a franchise, but the base franchise fee applicable to any one franchise may be changed only five times during the life of that particular franchise. If the franchise is for a non-public utility pipeline for industrial gas or oil or products thereof, the fee modification must be made in accordance with the provisions of California Public Utilities Code Section 6231.5(e). 960131 10512-00001 syc 0592000 (3) - 1$ c. Base Construction Charges. Upon commencement of the installation, relocation, or replacement of any pipeline or other facility covered by the franchise, the franchisee must pay a base construction charge of three thousand three hundred eighty-four dollars ($3,384) for each one-half mile of trench or fractional part thereof which is installed on major streets, and two thousand two hundred thirty- two dollars ($2,232) for each one-half mile of trench or fractional part thereof, which is installed on minor streets. In either case, the actual costs of inspection may be charged if they exceed the base construction charge. The City reserves the right to change these base construction charges at any time after the effective date of the ordinance granting a franchise, but the base construction charges applicable to any one franchise may be changed only five times during the life of that particular franchise. d. Adjustments. 1. The amount of each base fee specified in paragraphs a, b and c of this section will 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, 1995 to the date which is sixty (60) days prior to the due date of the fee. 2. No base fee will be charged which is less than the amount of the base fee specified in paragraphs b and c of this Section. 3. The indices specified in subsection 1 of this paragraph d are calculated and published by the United States Department of Labor, Bureau of Labor 960131 10512-00001 syc 0592000 (3) - 19 - 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 will be computed by using a comparable governmental index. 17-32. Proration of Payments. If facilities are abandoned by the franchisee with the approval of the City as elsewhere provided in this chapter, or if facilities are removed by the franchisee, or if a franchise is granted which has an initial franchise payment period of less than six months, the annual base franchise fee required under paragraph b of Section 17-31 will be prorated for that calendar year, as of the end of the calendar month in which that abandonment, removal or grant occurs. 17-33. Records and Inspections. a. Franchisee must preserve for a period of five years all records necessary to determine the amount of any fee which is payable to the City under the provisions of this chapter. 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 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. These records must be made available to the City at a location in the County of Los Angeles. Part III. Construction 960131 10512-00001 syc 0592000 (3) - 2 ~ - 17-34. Construction Requirements. Pipelines and appurtenances must be constructed and maintained in a good and workmanlike manner and in conformity with all applicable laws, ordinances, rules and regulations. 17-35. 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 by the Director as#to the most acceptable location in the City's streets. The Director's decision will be final and binding on the Franchisee. 17-36. Permits. Where the provisions of any ordinance, rule, 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 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 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 inspection fees. 17-37. Work on and Restoration of Streets. a. The work of constructing, laying, replacing, maintaining, repairing or removing those pipelines and appurten- ances authorized under the provisions of this chapter in, over, under, along or across any street must be conducted so as to cause the least possible interference with pedestrian and 960131 10512-00001 eyc 0592000 (3) - 2 1 - vehicular travel on the street. As soon as completed, all portions of the street which or otherwise damaged must be promptly repai restored and placed in as good condition as ment of such work. The restoration, repair may, as determined by the Director, require the work is have been excavated red, replaced or before the commence- or replacement work 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 under- take or complete the repair, replacement, or restoration work on any street, then 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. 17-38. Failure to Timelv 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 not more than two hundred dollars ($200.00) per day as liquidated damages for each day that construction extends beyond the time specified in the permit. 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. The franchisee must pay to the City the cost of performing that work. 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. 960131 10512-00001 syc 0592000 (3) - 2 Z - 17-39. 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. 17-40. Indemnity. The franchisee is obligated to indemnify, defend, and hold harmless the City, its officers, agents, and employees, from and against all damages and liability arising from any damage or injury suffered by any person by reason of any excavation or obstruction being improperly guarded during the course of any work authorized pursuant to the franchise, or the failure or neglect of the franchisee to properly perform, maintain, or protect any phase of that work. 17-41. 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 a franchise. Those appurtenances must be kept flush with the surface of the street and be located so as to conform to all ordinances, rules and regulations of the City, 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 the City's ordinances, 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. 17-42. 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 vbo~3i ios~z-oaooi sy~ os9zaoo ~> - 2 3 - must first obtain an excavation permit from the Department to undertake that work. 17-43. Relocation of Pipelines and Appurtenances. a. The City reserves the right to change the grade, the width, or the location of any street over which the franchise is granted. If any pipelines, facilities or appurtenances constructed, installed or maintained by the fran- chisee 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 thirty (30) 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 improve- ments, 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 thirty (30) days after receipt of the notice and request to do ~oi3~ iosiz-Doom syo os9zooo ~> - 2 q - 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. 17-44. 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. 17-45. 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, 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 a 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. 17-46. Removal or Abandonment of Facilities. a. Upon the expiration, revocation or termination of the franchise, or upon the permanent discon- tinuance of the use of all or a portion of its facilities, the 960131 10512-00001 eyc 0592000 (3) - 2 5 - franchisee must, within the following thirty (30) days, make written application to the Director for authority, as determined by the franchisee, either: (i) to abandon all or a portion of those facilities in place; or (ii) 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 17-9 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 effected without detriment to the public interest and under what conditions the proposed abandonment or removal may be safely effected. 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 17-43. 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 that such abandonment in place may be effected without detriment to the public interest, the franchisee must pay to the City a fee to be computed as follows: z 960131 10512-00001 syc 0592000 (3) - 2 Pipelines with an Internal Diameter of 0-12 inches 14-18 inches 20-30 inches Amount Per Lineal Foot $15.00 22.00 28.00 17-47. 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. b. If the franchisee fails to comply with the terms and conditions of abandonment or removal as required by this chapter and within the time prescribed by the Director, then the City may remove or cause to be removed those facilities at the franchisees 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. 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 paragraphs c and d of Section 17-46. 9eoi3> >os~z-ooooi syo osvzooo ~) - 2 7 - 17-48. 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 IV. Special Provisions-for Oil Pipeline Franchises 17-49. Riahts Granted. A franchisee which is granted an oil pipeline franchise has the right, during the term of that franchise, to transport oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances through the pipelines maintained under the franchise. 17-50. Materials Used. All pipelines used for the transportation of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, or other flammable liquids, must be of standard material and in conformity with current American Petroleum Institute pipeline specifications. 17-51. Approvals. on all pipelines laid pursuant to the franchise, the Fire Chief must approve the location of flush-valve connections to be placed in the pipeline. The availability of adequate water supplies, the commodity transmit- ted in the line, and the location of control valves will be considered when making this determination. The flush-valve connections will be installed in the manner prescribed by the Fire Chief. 17-52. Reports. During the term of the franchise, and within thirty (30) days after the expiration of each franchise payment period, the franchisee must: 960131 10512-00001 ayc 0592000(3) - 2 $ - k a. File with the Director two copies of a report, verified under penalty of perjury by a duly authorized representative of the franchise, showing for the immediately preceding franchise payment period (i) the length of all lines in streets; (ii) the internal diameter of those lines; (iii) the rate per foot per year; and (iv) 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. 17-53. Payments Due. Except for pipelines lawfully constructed and maintained other than by the authority granted by a City franchise, the franchisee's semi-annual payments accrue from the date of installation, whether before or after the effective date of the ordinance granting the franchise, and those payments are due semi-annually. 17-54. Nonapplicability. Sections 17-52 and 17-53 do not apply to public utility pipelines which transmit oil or products of oil. Part V. Special Provisions for Water, Gas and Other Public Utility Pipeline Franchises 17-55. Rights Granted. The franchisee of a franchise for water service or gas service has the right, during the term covered by the franchise and subject to its provisions, to make service connections with all property which adjoins public 960131 10512-00001 eyc 0592000 (3) - 2 9 - streets and to distribute water or gas for any purpose through its pipelines to all territory in the City adjacent to those pipelines. 17-56. Plan Approval. All new pipelines, replace- ments, and extensions for the transmission of water or gas must be constructed, laid, and designed according to plans approved by the Director. 17-57. Condition of Approval. The Fire Chief must also approve the plans if pipelines for the transmission of water to be laid, extended or replaced are designed to operate in con- junction with related facilities, such as fire hydrants. The location of fire hydrants must take into consideration required domestic demand and meet water pressure standards specified by the Board of Fire Underwriters. 17-58. Fire Hydrants. As further consideration for the granting of a water pipeline franchise, the franchisee must, at the request of the Fire Chief, install fire hydrants at no cost to the City (except a reasonable monthly rental), and at no cost to any County fire protection district. These fire hydrants must be installed at those locations along the franchisee's water mains that are designated by the Fire Chief. 17-59. Gas Pipelines. On all pipelines carrying gas heavier than air which are laid in accordance with the franchise, the Director must approve the placement of flush-valve connections in the pipeline. The availability of adequate water supplies, the commodities transmitted in the line, and the location of control valves will be considered when making that determination. The flush-valve connections must be installed in the manner prescribed by the Director. 17-60. Report of Gross Receipts. The franchisee of any franchise awarded to a public utility, or to a mutual water 960131 10512-00001 syc 0592000(3) - 3 Q - company, must file a report with the Director for each franchise payment period. Within (30) days after each franchise payment period, the franchisee must file two copies of a report, verified by a responsible officer, showing the total gross receipts of the franchisee received or accrued during the franchise payment period in connection with the furnishing of the commodity or service and arising from the use or operation of the franchise. Franchisee must also submit such additional data as may be required by the Director to calculate or verify the calculation of the base annual fee required by Section 17-30(a) (or the pro rata portion of that fee for the first franchise payment period if less than six months). Payment of the base annual fee is to be made concurrently with the filing of the statement. If the amount paid is incorrect, in the judgment of the City, it may order the payment of any additional sum that it may find due; and if not paid, or if paid under protest, the same may be determined by suit. 17-61. Report of Pipeline Footage. Within thirty (30) days after the expiration of each franchise repor-t period, the franchisee must 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 report period, together with the length and size of those mains. The franchisee must also report any change in pipeline footage since the last franchise report period, segregating that footage as to new mains laid, old mains removed, old mains abandoned in place, and the footage of mains in territory annexed or incorporated since the last franchise payment period." 96013F 10512-00001 eyc 0592000 (3) - 3 1 - Section 2. 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. PASSED, APPROVED AND ADOPTED this ~~~ ,y of '~/~~ , 199b. ~~ ,-..- CCC_ rz ~ __ PAUL H. RICHARDS, II, MA ATTEST: ~j~~, z~- 0~9 ~~~i ANDREA L. HOOPER, CITY CLERK FAUSTI GO LE i pager APPROVED AS TO FORM: ~:~.~,:. 3. -?...,4u CITY ATTORNEY 960131 10512-00001 sye 0592000 (3) - 3 2 - STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the Lynwood City Council do hereby certify that the above and foregoing is a full, true and correct copy of Ordinance No. 1431 on file in my office and that said ordinance was adopted on the 20th day of February 1994, and passed by the following vote: AYES: COUNCILMEMBER HENNING, REA, HEINE NOES: NONE ABSENT: COUNCILMEMBER BYRD, RICHARDS City Clerk, City of L nwood