HomeMy WebLinkAboutCC Res 883 1955-05-03
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RESOLUTION NO. gg3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEAL BEACH DECLARING THAT IT PROPOSES, ON
THE APPLICATION OF HANCOCK OIL COMPANY, TO
GRANT A FRANCHISE TO CONSTRUCT, MAINTAIN AND
RENEW. UNDER, ALONG AND ACRCSS CERTAIN PUBLIC
STREETS, ALLEYS AND WAYS IN THE CITY OF SEAL
BEACH, FOR A PERIOD OF THIRTY YEARS FROM AND
AFTER THE DATE OF THE GRANTING OF SUCH FRANCHISE,
PIPELINES FOR THE TRANSPORTATION OF OIL, PETROLEUM,
GAS, GASOLINE. WATER AND OTHER SUBSTANCES. AND
DIRECTING THE CITY CLERK TO PUBLISH NOTICE OF
SAID APPLICATION AND OF THE INTENTION OF THE
CITY COUNCIL TO GRANT THE SAME.
WHEREAS, HANCOCK OIL COl4PANY, a corporation. has made
application to the City Council of the City of Seal Beach for a
franch~se granting the right to construct from time to time. and
for a period of thirty years from and after the date of granting
said franchise, to mainta~n. operate, renew. repair, change the
size and number of, remove and abandon pipelines for the trans-
portation of oil, petroleum, gas,gasoline, water and other
substances, together with all manholes, valves, appurtenances and
service connections used ~n connection therewith, necessary or
conven~ent for the operation of such pipelines in, under, along
and across, (1) that certain public street or highway known as
Bay Boulevard from the intersection of Bolsa Avenue with the said
Bay Boulevard to the Northeast boundary line of said City of Seal
Beach, and (2) those certain public streets or highways known as
Bolsa Avenue, U. S. Highway 101, U. S. Highway lOl Alternate, and
Seventh Street, all in the City of Seal Beach.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
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Resolut1on Number
City of Seal Beach, California, that it is the intention of the
City Council,' in furtherance of the pub11c interest, to advertise
and sell sa1d franch1se for the said term and purposes aforesaid
and that the same be sold to the highest cash bidder, said
franchise to be upon the follow1ng terms, provisions and conditions,
to wit:
1. The term of said franchise shall be thirty years from
and after the date upon which the ordinance granting the same
becomes effective.
2. The word "Grantee" when used here1n and in the franchise
shall mean and include the person, firm or corporation named as
the Grantee in the ordinance granting the franchise and the
successors and assigns of such person, firm or corporation.
3. The Grantee shall file with the C1ty Clerk of the City
of Seal Beach, within thirty days after the adoption of the
ordinance granting the franchise, a written acceptance thereof.
4. The Grantee shall have the r1ght, subject to such
regulations, laws and ordinances as are now or may hereafter be
in force, to make all necessary excavations in the public streets,
alleys and ways for the construction, maintenance, operation,
renewal, repair, change in the size and number of and removal of
pipelines constructed, maintained or operated under the franchise.
Before any new pipeline may be constructed, or any pipeline
abandoned, a permit shall be secured from the City Council specify-
ing the best and most desirable routing of sa1d lines, or the
conditions under wh1ch the same may be abandoned, as the case may
be, and the City Council's dec1sion on said routing and conditions
shall be final and binding on the Grantee.
5. The work of constructing, ma1ntaining, operating,
renewing, repairing, changing the size and number of and removing
pipelines shall be conducted with the least possible obstruction
and inconvenience to the public and with the least possible
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Resolution Number
hindrance to the use of the streets, alleys and ways for purposes
of travel. All excavations shall be backfilled, and the surface
placed in as good condition as it was at the beginning of such
work and to the satisfaction of the Street Superintendent.
Grantee shall hold the City of Seal Beach, its Council and other
officers harmless from any claims for damage or injury suffered
by any person, by reason of any excavation or obstruction in said
streets, alleys or ways occasioned by the construction, mainten-
ance, operation, repair, renewal or removal of any pipelines of
the Grantee under said franchise and shall be responsible for any
such damage or injury as may be caused by Grantee's negligence.
6. The City of Seal Beach reserves the right to change
the grade or line of any street, alley or way in wh~ch pipelines
are constructed, maintained or operated under the franchise and
upon rece~ving notice from the City Council of its intention so
to do the Grantee shall promptly and at its own cost and expense,
change the location of its pipelines and their appurtenances
where necessary to conform to such change of grade or line. Any
damage caused to any public improvement by the Grantee in exer-
cising any right or privilege under the franchise, or in performing
any duty under and pursuant to the provisions of the ordinance
granting the franchise, shall promptly be repaired by the Grantee
at ~ts own cost and expense.
7. The Grantee shall repair, at its own expense, any damage
caused to any street, alley, way or other public property of the
C~ty of Seal Beach by reason of any breaks, leaks or failure of
any of the pipelines constructed, maintained or operated under
said franchise. In the event the Grantee shall fail to make any
such repairs within ten days after a notice and demand therefor
from the City, the City may make such repairs at the cost and
expense of the Grantee, which cost by the acceptance of the
franchise, the Grantee shall agree to pay upon demand.
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Resolut1on Number
8. The Grantee shall, during the life of the franchjse,
pay to the City of Seal Beach, in lawful money of the United
States, two per cent of the gross annual receipts of the Grantee
arising from the use, operation and possession of the franchise.
No percentage shall be paid for the f1rst five years succeeding
the date of the franchise, but thereafter such percentage shall
be payable annually on or before the first day of April in each
year, with respect to gross receipts der1ved by the Grantee from
its operation of the pipelines during the year ending December
31st next preceding, provided, however, that a minimum annual
payment shall be made under said franchise, commencing with the
effective date thereof, which shall be equal to $.005 per inch of
inside diameter per lineal foot of pipeline installed and main-
tained under said franchise, payable in advance and calculated
ratably for the number of months in the calendar year during
which any such pipeline 1S maintained, including the month in
which installation is made. Grantee shall at the time of making
such payments with respect to gross receipts, or prior thereto,
file with the City Clerk a statement, verified by an officer or
agent of the Grantee who is authorized by law to make verified
statements on behalf of the Grantee, showing the gross receipts
derived by the Grantee from the use, operation and possession of
the franchise during the year ending December 3l next preced1ng.
9. The Grantee shall not permit any right or priv11ege
granted by the franchise to be exercised by another, nor shall the
franchise or any interest therein or any right or privilege there-
under be in whole or in part sold, transferred, leased, ass1gned,
or disposed of except to a corporation acquiring or owning a
portion of the assets of the Grantee through consolidation, merger,
or reorganization, or to a subsidiary of Grantee, or to any person,
firm or corporation having assets of more than Five Million
Dollars ($5,000,000.00) w1thout the consent of the City expressed
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Resolut~on Number
.
by resolution; provided, however, that the provisions of the
franchise shall not require any such consent and no consent shall
be required for any transfer ~y Grantee in trust or by way of
mortgage or hypothecation covering all or any part of Grantee's
property, wh~ch transfer, mortgage or hypothecation shall be for
the purpose of securing an indebtedness of Grantee or for the
purpose of renewing, extending, refunding, retir~ng, paying or
cancelling ~n whole or in part any such indebtedness at any time
or from time to time. Any such sale, lease, assignment, or other
d~spos~tion of franchise for which consent of the City is required
hereunder shall be evidenced by a duly executed instrument in
writ~ng filed in the office of the C~ty Clerk.
10. On or before the 1st day of May and November of each
year during the life of this franchise, the Grantee shall render
to the C~ty a statement showing in detail the total length many
pipeline constructed, removed or abandoned under the franchise
during the preceding six months period, together with a map or
maps accurately showing the location in the public streets,
alleys or ways of any such pipeline so constructed, removed or
abandoned. Said statements and maps shall be accompanied by the
payment of an amount of money equal to the rate of One Hundred
Dollars ($100.00) per mile for all pipeline constructed, if any
there be, shown on said statement and maps.
ll. In the event the Grantee shall fa~l to keep, fulfill
or perform any of the terms or conditions of this franchise and
shall fail to remedy such default w~thin thirty (30) days after
notice from the C~ty, the City Council may, at its option
exercised by ordinance, declare the franchise forfe~ted. Upon
such declaration of forfe~ture the franchise shall be deemed
cancelled and terminated and all of the rights and privileges of
the Grantee under this franchise shall be deemed surrendered and
terminated and the C~ty may thereafter exclude the Grantee from
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Resolution Number
.
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further use of the public streets, alleys and ways of the City
under this franchise.
12. The franchise shall be granted upon the further
condition that Grantee shall file within five(5) days after the
date upon which this ordinance is adopted, and shall keep on
f~le with the City at all t1mes during the life of this franchise,
a bond running to the City ~n the penal sum of One Thousand
Dollars ($1,000.00), with at least two good and sufficient
sureties, or with a corporate surety competent to act as sole
surety, to be approved by the City Council, conditioned that the
Grantee will well and truly observe, fulfill and perform each and
every term and condition of this franchise, and in case of a
breach of condition of said bond the whole amount of the penal
sum there~n named shall be taken and deemed to be liquidated
damages and shall be recoverable from the principal and surety
or suret~es upon said bond.
13. The work of constructing, maintaining, operating,
renewing, repairing, changing the size or number of, or removing
any pipelines hereafter constructed, maintained or operated under
th~s franchise shall, at all t~mes dur~ng the term hereof, in
all respects comply with all of the rules, regulations, ordinances
and enactments of the City and of such federal, state and county
authorities as may have jurisdiction over said pipelines, pro-
vided, however, that in each instance the paramount authority
shall be binding on the Grantee; and the City hereby reserves all
regulatory power by law allowed to it over and with reference to
this franchise and the exercise of rights, power or privileges
under the same by the Grantee.
14. This franchise is not, and shall not be exclusive.
BE IT FURTHER RESOLVED that the City Clerk of the City of
Seal Beach be, and he is hereby authorized and directed to
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Resolut~on Number
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advertise the fact that sa~d application for said franchise has
been made to said City Council, together with a statement that it
is proposed to grant said franchise upon the aforesaid terms,
prov~sions and conditions, by publishing a notice of sale thereof
in the Seal Beach Post and Wave, a weekly newspaper of general
circulation published and circulated in the City of Seal Beach;
that said notice of sale be published once each week for four
successive weeks; that the full publication thereof be completed
not less than twenty, nor more than thirty days before the 21st
day of June, 1955; that such notice of sale state the character
of the franchise herein proposed to be granted, in conformity with
the foregoing terms, provisions and conditions hereof, and the
term for which it is to be granted, and that sealed bids for said
franchise shall be received up to 7:)0 o'clock P. M. on said
2lst day of June, 1955, at the office of the City Council, and
that said franchise shall be struck off,sold and awarded to the
person, firm, or corporation making the highest cash bid therefor,
provided, that at the time of opening said bids any responsible
person, firm or corporation present or represented may bid for
said franchise a sum not less than ten per cent above the highest
sealed bid therefor, and said bid so made may be raised not less
than ten per cent by any other responsible b~dder, and said
bidding shall so continue until finally said franchise shall be
struck off, sold and awarded by said C1ty Council to the h1ghest
bidder therefor in lawful money of the Un1ted States; that each
sealed bid shall be accompanied by cash or a certified check
payable to the City Treasurer of the City of Seal Beach for the
full amount of said bid, and no sealed bid shall be considered
unless said cash or check 1S enclosed therewith and the successful
bidder shall deposit at least ten per cent of the amount of his
bid with the City Clerk of said City of Seal Beach before the
franchise shall be struck off to him, and if he shall fail to make
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Resolution Number
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sa~d deposit immediately, then and in that event his bid shall
not be received and shall be considered as void, and said franchise
shall then and there again be offered for sale to the bidder who
shall make the highest cash bid therefor, subject to the same
cond~tions as to deposit as above ment~onedj and said procedure
shall be had until said franchise is struck off,sold and awarded
to a bidder who shall make the necessary deposit of at least ten
per cent of the amount of his bid therefor, as herein provided;
that sa~d successful bidder shall deposit with the City Clerk of
the City of Seal Beach within twenty-four hours after the accept-
ance of his bid, the remaining ninety per cent of the amount
thereof, and ~n case he or it shall fail to do so, the said
deposit theretofore made shall be forfeited and the said award of
said franchise shall be void and the sa~d franchise shall then
and there by said City Council be again offered for sale to the
highest bidder therefor in the same manner and under the same
restrictions as hereinbefore provided, and in case said bidder
shall fa~l to deposit with the City Clerk of said City of Seal
Beach the remaining ninety per cent of his bid within twenty-four
hours after its acceptance, the award to him of said franchise
shall be set aside and the deposit theretofore made by him
shall be forfeited and no further proceedings for the sale of said
franchise shall be had unless the same shall be readvertised and
again offered for sale.
IT IS FURTHER ORDERED, STATED AND DECLARED that the
hour of 7:30 o'clock P. M. on the 2lst day of June, 1955,
be and the same is hereby f1Xed as the hour and day for the
meeting of the City Council. in the Council Chamber in the
City Hall of said C~ty of Seal Beach, at which sealed bids
for said franchise will be opened and declared and the
proposed sale of sa~d franchise will be conducted, as
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Resolut1on Number
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1 hereinabove provided.
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PASSED, ADOPTED AND APPROVED, at a regular
meeting of the C1ty Council of the City of Seal Beach, held on
the 3rd day of May, 1955.
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Q~e'. ~
MAYOR OF THE CITY OF SEAL BEACH
STATE OF CALIFORNIA
)
( ss:
)
County of Orange
CITY OF SEAL BEACH
I, F. W. HICKMAN, Clerk of the C1ty of Seal Beach,
California, hereby cert1fy that the foregoing Resolution Number
17.3 was duly adopted by the City Council of said City at a
16 regular meeting thereof, held on the 3rd day of May. 1955. and
17 was passed by the following vote, to wit:
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19 Ayes: Councilmen LAM/NEAl?, LR('JA/4A'4 F,/.A,VAtJAAj f!.AJ..V(J
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Noes: Councilmen
A/ /),.,v.F
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Absent: Councilmen
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