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HomeMy WebLinkAboutCC Res 3693 1987-05-26 RESOLUTION NO. ~9:3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH DECLARING ITS INTENTION TO GRANT A PIPELINE FRANCHISE TO STANDARD GAS COMPANY WHEREAS, Standard Gas Company, an Idaho corporation, has I filed with the city Council of the City of S~al Beach an applica- tion requesting that a franchise be granted to it of the charac- ter and for the purposes mentioned in the form of notice herein- after set forth: and WHEREAS, in the opinion of said City Council the public good requires that said franchise be granted: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Seal Beach that the said City Council intends to grant said franchise: that the character of said franchise, and the terms and conditions upon which it is proposed to be granted, are described in the form of notice hereinafter set forth: that hearing of objections to the granting of said franchise will be I held at the time and place specified in the form of notice here- inafter set forth, which the city Clerk is hereby directed to publish at least once in the Seal Beach Journal, a newspaper of general circulation printed and published nearest to the City of Seal Beach, within 15 days after the passage of this Resolution: and that said notice shall be substantially in the following words and figures: "NOTICE OF INTENTION TO GRANT FRANCHISE "NOTICE IS HEREBY GIVEN that Standard Gas Company, an Idaho corporation, has filed its application with the city Council of the City of Seal Beach requesting that said city Council grant to it a franchise for a period of 25 years from and after the date upon which the franchise shall become effective, I 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 dis- tribution of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud, steam and other liquid sub- stances which are not more hazardous than the aforementioned Resolution Number ~9~ substances, together with all manholes, valves, appurtenances and service connections necessary or convenient for the operation of said pipes or pipelines including conduits, cathodic protection devices, wires, cables and other appurtenances necessary or con- venient for the exercise of the Franchisee's business, in, under, I along or across any and all streets within the city of Seal Beach. "If said franchise shall be granted to it, said Standard Gas Company, and its assigns, hereinafter designated Grantee, will pay to said City the following fees: A. Base Grantina Fee. In the case of an initial grant of franchise, or franchises which extend, renew, or continue pre- viously granted franchises, a base granting fee of seven thousand five hundred dollars ($7,500) for pipeline with a total length of 1/4 mile or more, or seven hundred fifty dollars ($750.00) for pipeline with a total length of less than 1/4 mile, shall be paid within thirty (30) days after the Council adopts the ordinance I granting, extending, renewing or continuing the franchise and prior to signing the written acceptance of the franchise pursuant to Section 16B-6 of the Seal Beach City Code. If at any time during the first five (5) years following the grant of a fran- chise, additional pipeline is added which will result in a total length of pipeline of 1/4 mile or more, the seven thousand five hundred dollars ($7,500.00) granting fee shall be required at the time said footage is added. B. Base Annual Fee. A base annual fee shall be paid within one hundred five (105) days after the end of each calendar year and during the life of the franchise for each and every year, including the year of granting the franchise, according to the "franchise payment period" as defined in Subsection F of I . . Section 16B-4 of Article I, Chapter 16B of the Seal Beach City Code, in either of the following amounts, whichever is greater: (i) Four percent (4%) of the gross annual receipts of the Grantee arising from the use, operation, or possession of the franchise; or Resolution Number ~ (ii) An amount based upon the size and length of the pipeline calculated as follows: Pipelines with an Amount Per Internal Diameter of Lineal Foot 0-4 inches 12 cents 6 inches 16 cents I 8 inches 22 cents 10 inches 25 cents 12 inches 30 cents 14 inches 35 cents 16 inches 40 cents 18 inches 50 cents 20 inches 55 cents 22 inches 60 cents 24 inches 70 cents 26 inches 75 cents 28 inches 80 cents 30 inches 85 cents I The base annual rate applicable to pipelines with an internal diameter falling between two (2) incremental size cateqories shall be determined by adding the price corresponding to the lower size to a figure computed by multiplying the difference between the higher and lower price times the 'multiplier.' The 'multiplier' will be determined by dividinq the difference between the two (2) size cateqories. In determining the number of feet of pipeline upon which the annual fee will be computed, the greatest number of feet of pipeline covered by the franchise during the calendar year for which payment is due will be used. A penalty at the rate of ten percent (10%) per month or fraction thereof beyond the payment date shall be charged, but in no event shall said I penalty exceed fifty percent (50%). C. Base Construction Charaes. The Grantee shall pay at the time of installation, relocation, or replacement of any I I I Resolution Number .3btj:!3 pipeline or other facility covered by the franchise, a base construction charge of $2,350 for each one-half mile of pipeline or fractional part thereof installed, replaced or relocated on major streets, and $1,550 for each one-half mile or fractional part thereof on minor streets. D. Modifications. The city reserves the right to change the base fees established hereunder at any time after the effective date of the ordinance granting a franchise, but the base fees applicable to anyone franchise may only be changed two (2) times during the life of that particular franchise. E. Ad;ustments. The amount of each base fee provided under subsections A and C shall be revised at the time payment is due in accordance with the following formula: (i) If ninety (90) days prior to the date on which payment from the Grantee shall be due the Consumer Price Index, for all Urban Consumers, Los Angeles- Long Beach-Anaheim area, (1967 equals 100.0) prepared by the United states Bureau of Labor statistics, Department of Labor, shall stand at a level different than the 'base level' (as defined herein), then the rate of payment to the City shall vary from the amounts specified in sub- sections A and C in direct proportion as said Index has increased or decreased from the 'base level.' 'Base level' for the purposes of this section shall be the level of the Index on December 31, 1984. (ii) If said Bureau shall discontinue the preparation of said Consumer Price Index using prices . prevailing during the year 1967 as the base of 100, and if no transposition table prepared by said Bureau is available which is applicable to said year, 1967, then the amount of each annual Resolution Number ~~ payment shall be computed by using the most nearly comparable successor index thereto. (iii) In no event shall any fee less than the base fees established by subsections A and C be charged. "The City Council of the City of Seal Beach proposes to II . grant said franchise for a period of 25 years from and after the date upon which the franchise shall become effective, or until it is voluntarily surrendered or abandoned by the Grantee, or until the State or some municipal or public corporation thereunto duly authorized by law shall purchase by voluntary agreement or shall condemn and take under the power of eminent domain all property actually used and useful in the exercise of such franchise and situated within the territorial limits of the State, municipal, or public corporation purchasing or condemning such property, or until such franchise is forfeited for noncompliance with its terms by Grantee. "NOTICE IS FURTHER GIVEN that the Grantee of said fran- I chise shall file a bond, with a corporate surety authorized to conduct a surety business in the State of California, and in a form approved by the City Attorney for the city of Seal Beach, in the penal sum of Ten Thousand Dollars ($10,000.00), conditioned that the Grantee shall well and truly observe, fulfill, and per- form each condition of the franchise and that in case of any breach of condition of the bond, the whole amount of the penal sum therein named shall be deemed to be liquidated damages and shall be recoverable from the principal and surety upon said bond. Said bond shall be filed with the City Engineer on or before the effective date of the ordinance granting said fran- chise; and if said bond is not filed, the award of the franchise may be set aside and the ordinance granting the franchise repealed at any time prior to the filing of said bond, and any money paid in consideration for said award of franchise shall be deemed forfeited. The Grantee will also be required to obtain I Resolution Number .3..693 insurance as provided in Section l6B-10 of the Seal Beach City Code. I "NOTICE IS FURTHER GIVEN, that any and all persons hav- ing any objection to the granting of said franchise may appear before the city Council in the Council Chambers located at the Seal Beach city Hall, 211 Eighth Street, Seal Beach, California, at 7:00 p.m. on Au~ust 17 , 1987 and be heard thereon; and at any time not later than the hour set for hearing objections, any person interested may make written protest stating objections against the granting of said franchise, which protest must be signed by the protestant and be delivered to the city Clerk of said City. The City Council at the time set for hearing said objections shall proceed to hear and pass upon all protests so made. "For further particulars, reference is hereby made to said application which is on file in the Office of said City Clerk, and also to the resolution adopted by said City Council on the 26th day of Mav , 1987, declaring its intention I to grant said franchise. DATED: , 1987 City Clerk" City of PASSED, APPROVED, AND ADOPTED Seal Beach on the~~t:Lday of by ~ City Council of the 1L!1~ ' 1987. ~~'-(~ MAYOR I APPROVED AS TO FOR:M: CITY ATTORNEY Resolution Number ~~ STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF SEAL BEACH ) ) SS. l I, Joanne Yeo, City Clerk of the City of Seal Beach, california, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing I resolution, being Resolution No. ~b~~ , was duly adopted by . . the City Council of said city at a regular meeting 0- Council, duly and regularly held on the~~!lday of 1987, and that the same was so passed and adopted by following roll call vote: ABSENT COUNCILMEMBERS: . ~JI~~t~ €na'jd~~ AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: Beach, California I I 870219 sa. A024.WBR 1