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HomeMy WebLinkAboutCC Res 3568 1986-02-24 I I I RESOLUTION NO. ..J~8 b A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH DECLARING ITS INTENTION TO GRANT A PIPELINE FRANCHISE TO EXXON AND TEXACO, INC. JOINTLY WHEREAS, Exxon, a New Jersey corporation, and Texaco, Inc., a Delaware corporation, have jointly filed with the City Council of the City of Seal Beach an application requesting that a franchise be granted to them jointly of the character and for the purposes mentioned in the form of notice hereinafter set forth1 and WHEREAS, in the opinion of said City Council the public good requires that said franchise be granted1 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Seal Beach that the said City Council intends to grant said franchise1 that the character of said franchise, and the terms and conditions upon which it is proposed to be grant- ed, are described in the form of notice hereinafter set forth1 that hearing of objections to the granting of said franchise will be held at the time and place specified in the form of notice hereinafter 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 Resolution1 and that said notice shall be substantially in the following words and figures: "NOTICE OF INTENTION TO GRANT FRANCHISE" "NOTICE IS HEREBY GIVEN that Exxon, a New Jersey corporation, and Texaco, Inc., a Delaware corporation, have jointly filed an application with the City Council of the City of Seal Beach requesting that said City Council grant to them jointly a franchise for a period of 25 years from and after the date upon which the franchise shall become effective, to lay or construct from time to time and to operate, maintain, 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, waste water, mud, steam and other liquid substances which are not more dangerous than the aforementioned 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 and other appurtenances, devices, wires, cables necessary or convenient for the Grantee's business under, along or any and all streets within the City of Seal Beach. "If said franchise shall be granted to them jointly, said Exxon and Texaco, Inc., and their joint .ssigns, hereinafter designated Grantee, will pay to said City the following fees: "A. In the case of an initial grant of franchise, or franchises which extend, renew, or continue previously granted franchises, a base granting fee of seven thousand five hundred dollars ($7,500) for pipeline with a total length of 1 mile or more or seven hundred fifty dollars 1$750.00) for pipeline with a total length of less than 1 mile shall be paid within thirty (30) Resolution Number~~ days after the council adopts the ordinance 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 15) years following the grant of a franchise, additional pipeline is added which will result in a total length of pipeline of 1 mile or more, the seven thousand five hundred dollars ($7,500.00) granting fee shall be required at the time said footage is added. I "B. A base annual fee shall be paid within one hundred five 1105) days after the end of each calendar year and during the life of the fran- chise for each and every year, including the year of granting the franchise, according to the "franchise payment period" as defined in this ordinance, in either of the following amounts, whichever is greater: (a) Four percent 14%) of the gross annual receipts of the franchisee arising from the use, operation, or possession of the franchise, or (b) An amount based upon the size and length of the pipeline calculated as follows: Pipelines with an Amount per Internal Diameter of Linear Foot 0-4 inches 12 cents 6 inches 16 cents 8 inches 22 cents 10 inches 25 cents I 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 The rate applicable to pipelines with an internal diameter falling between two 12) incremental size categories shall pay a fee 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" shall be determined by dividing the difference between the two 12) size categories. 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 durinng 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 penalty exceed fifty percent 150%). I, "C. The holder of the franchise shall pay at the time of installation, relocation, or replacement of any pipeline or other facility covered by the franchise, a base construction charge of two thousand three hundred fifty dollars ($2,350.00) for each one-half (I) mile of Resolution Number 3.fl8 pipeline or fractional part thereof installed, replaced or relocated on major streets and one thousand five hundred fifty dollars 1$1,550.00) per one-half It) mile or fractional part thereof, on minor streets. I "D. The City reserves the right to change the base fees established hereunder at any time after the effective date of the ordinance grant- ing 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. The amount of each base fee provided under A and C shall be revised at the time payment is due hereunder in accordance with the following formula: "1. If ninety 190) days prior to the date on which payment from the franchise holder 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 hereinafter) then the rate of payment to the City shall vary from the hereinabove amounts 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. I "2. 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 payment shall be computed by using the most nearly comparable successor index thereto. I, "3. 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 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 there- unto duly authorized by law shall purchase by volun- tary 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 franchise 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 851106 bm 0020SAB 3 Resolution Number~~~ the Grantee shall well and truly observe, fulfill, and perform each term and condition of said franchise and that in case of any breach of condition of said bond, the amount of the penal sum therein named shall be recoverable from the principal and surety upon said bond. Said bond shall be filed with the City Clerk within five (5) days after the effective date of the ordinance granting said franchise; and if said bond is not filed, or if it does not receive the approval of the City Attorney, said franchise may be refused or forfeited and any money paid to the City in connection therewith shall be retained by the city. The Grantee will also be required to obtain insurance as provided in Section 16B-IO of the Seal Beach City Code. "NOTICE IS FURTHER GIVEN, that any and all persons having 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 St., Seal Beach, California, at 7:00 p.m. on March 24 , 1986 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. I "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 day of , 1986, declaring its-Intention to grant said franchise. "DATED: I City Clerk" PASSED, APPROVED, AND ~TED by th the Ci ty of Seal Beach on the ~ _ day of 1986. Council of ~ ~ ( "C&YO~'"", ...., I, 851106 btn 00. Resolution Number.:f~~ STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF SEAL BEACH ) ) ss. ) I 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.tive; that the foregoing resolution, being Resolution No. "~B , was duly adopted by the City Council of said City at a re~ meeti~91of said Council, duly and regularly held on the..,j7.i - day Of~",u~r 1986, and that the same was so passed and adopted by the . ) :::~'n.C:::i::::te' @~ +.€,~ NOES: Councilmembers C1ty Cali nia ABSENT: Councilmembers I " I