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
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,~'~~- 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