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HomeMy WebLinkAboutCC Res 693 1950-03-06 " i"--~ I I 1 '. . . '- ... _. ... / " RESOLUTION NO. h if 3. A RESOLUTION OF THE CITY COUNCIL OF THE cm OF SEAL BF.A.CH, CALIFORNIA, AUTHORIZ- DIG THE PUBLICATION OF NOTICE OF SALE OF FRANCHISE. The C1ty Council of the City of Seal Beach, California, does resolve as follows t WHEREAS, Richf1eld Oil CorporaUon, a corporation, having hereto- tore by writing filed herein on the k!! day of /kin H c: 1-1 19Jt?, applied to the City Council of the City of Seal Beach, Call1'- ornia, for a franchise to construct frOJl1 time to time, and for a period , of thirty (30) years from and after the effective date of the ordinance granting the franchise, to maintain, operate, repair, renew, change the size and number of, remove and abandon plpe lines for the transportation of oil, petrolemn, gas, gasol1ne, water and other substances, together with all manholes, valves, appurtenances and service connections in- cluding telephone lines on poles or in colldui ts used in comecUon therewith, necessar,y or convenient for the operation of such pipe lines in, under, along and across :lI>-Io..V-i'~EIlBsxalOlElp~~ that certain street or highway known as Highway lOl, and Old tidlrx,.;hA..ri......IIl,~y/State Highway, from the East boundary line at said C1ty to the West boundary line thereot, along said route, aforesaid. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ot Seal Beach, California, that it is the intention of said City Council in furtherance of the public interest to advertise and sell said franchise for the said ten! and purposes aforesaid, alld that the same be sold to the highest cash bidder, said franchise to be upon the following terms, proviSiOns and colld1tions, to-w1tt (l) The ten! of said franchise shall be thirty (30) years from and after the date on which the ordinance granting the franchise becOJl1es effective. (2) The word "grantee" when used herein and in the :t'ranchise shall .. Resolution Number, I, , mean and include the person, firm or corporation named as 'the grantee in 'the ordinance granting the franchise and 'the successors and assigD8 of such person, firm or corporation. (3) TIle grantee shall fUe with the City Clerk of the City of Seal Beach wi'thin thirty (30) dBys after the adoption of 'the ordinance granting the franchise a wr1 tten acceptance thereof. (4) The grantee shall have the r1ght, subject to such rsgulations, lall'S and ordinances as are now or ma;y hersafter be in force, to make all necessary' excavations in the publ1c streets, alleys and wa;ys for the construction, maintenance, operation, rel1e1l'al, repair, change in 'the size and l1WIIber of, and removal of pipe lines and telephone lines constructed, maintained or operated under 'the franchise. Before 81JY' new pipe ~e or telephone line may be constructed or all,}" pipe line or telephone line is abandoned a permit shall be secured from the City Council specifying 'the best and most desirable routing of said lines, or the conditions under which the same ma;y be abandoned, as the case ma;y be, and the City Council's decision on said routing and conditions shall be final and bind- ing on the grantee. (5) The work of constructing, maintaining, operating. renewing, re- pairing, changing the size and number of and removing pipe lines and telephone lines shall be conducted with the least possible obstruction and inconvenience to the public and with the least possiblelindrance to the use of the streets, alleys and 'llBys for purposes of travel. All excavations shall be backfUled and the surface placed in as good condi- tion as it was at the beginning of such llOrk and to the satisfaction of the Street Superintendent. The grantee shall hold the City of Seal Beach, its City Council am other officers, harmless from 81JY' claims for damage or injury suffered by 81JY' person by rsason of all,}" excavation or obstruction in said streets, alleys or ~s occasioned by the construction, maintenance, operation, rspair or removal of 81JY' pipe lines or telephone lines of the grantee lUlder said franchise BIld shall be responsible for 81JY' such damage or injury. I 1 ...2- .. , , Resolution" Number I (6) The City of Seal Beach reserves the right to change the grade or line of any street, alley- or ~ in which pipe lines or telephone lines are constructed, maintained or operated under the franchise and upon receiving notice f'rom the City Council of' its intention so to do, the grantee shall promptly, and at its own cost and expense, change the location of' all pipe lines and telephone lines 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 exerci8ing any right or privilege under the franchise or in performing any duty under or pursuant to the provisione of' the ordinance granting the f'ranchise shall be promptly repaired by the grantee at its sole cost and expense. (7) The grantee shall repair at its cnm expense any damage caused to any street, alley, wtq or other public property of the City of' Seal Beach by reason of alV breaks, leaks or tailure of' any of' the pipe lines or telephone lines constructed, maintained or operated under sa1d franchise. In the event the grantee shall f'ail to make BIV such repairs within ten (10) 1- days after receipt of' a notice and demand therefor f'rom the City, the City ~ make such repairs at the cost and expenee of' the grantee, which cost, by the acceptance of' the franchise, the grantee shall agree to pay upon demand. 1 (8) The grantee shall, during the lif'e of' the franchise, ptq to the City of' Seal Beach, in lawf'uJ. IIIOney of' the United States, two per cent (2%) of' the gross annual receipts of' the grantee arising f'rom the use, operation and possession of' the franchise. No percentage shall be paid f'or the f'irst five (5) years succeeding the date of' the franchise, but there- atter such percentage shall be payable annual:Qr on or before the f'irst dq of' April in each year with respect to gross receipts derived by the grantee from its operation of' the pipe lines during the year ending December 31 next preceding. Grantee shall, at the time of' making such payments, or prior thereto, file with the City Clerll: a statement, verified by an of'f'icer or agent of' the grantee who is authorized by law to make ver:l.1'ied I' -3- Ie I I 1 . Resolution" Numner statements on behalf of the grantee, showing the gross reoeipts derived by the grantee from the use, operation and possession of the tranchise during the year ending December 31 next preceding. (9) Grantee shall not permit any right or privilege granted by the franchise to be exercised by ap.other, nor shall the franchise or any interest therein or any right or privilege thereunder be in whole or in part sold, transferred, leased, assigned, or disposed of except to a ,corporation acquiring or owning a portion of the assete of the Grantee through consolidation, merger, or reorganization, or to a subsidiary of Grantee, or to an,y person, fim or corporation having assets of more than Five Jli1l10n Dollars ($5,000,000.00), without the consent of the City expressjd by resolution; provided, however, that the provisions of the franchise shall not require any such consent and no consent shall be re- quired for any transfer by Grantee in trust or by wtq of mortgage or l\Ypothecation covering all or any part of Grantee's property, which trans- fer, mortgage or l\Ypothecation shall be for the purpose of secur:l.ng an indebtedness of Grantee or for the purpose of renewing, extending, refund- ing, retiring, paying or cancelling in whole or in part any such indebted- ness at any time or from time to time. MiT such sale, lease, assigmnent, or other disposition of franal1ise for which consent of the City 1s re- quired hereunder shall be evidenced by a d~ executed instrument in writing filed in the o.f'tice of the City Clerk. (10) On or before the first day of May and November of each year during the life of the franchise, the grantee shall render to the City a statement showing in detail the total length of aIV pipe line or tele- phone line constructed, removed or abandoned under the franchise during the preced1ng six months period, together with a map or maps accurately showing the location in the public streets, alleys or ways of any such pipe line or telephone line so constructed, removed or abandoned. Said statements and maps shall be accompanied by the ps;vment of en anount of money equal to the rate of One Hundred Dollars ($100.00) per mile for all -4- .. I I 1 . Resolution'Number pipe line constructed, if any there be. shown on said statements and maps. (ll) In the event the grantee shall fail to keep, f'ultill or per- form any of' the terms or conditions of the franchise and shall fail to remedy such default within thirty (0) dqs after notice from the city, the City Council may, at its option exercised by resolution or ordinance, declere the franchise forfeited. Upon such a declaration of forfeiture the franchise shall be deemed cancelled and terminated and all of the rights and privileges of the grantee under the franchise shall be deemed surrendered and tenuinated and the City may thereafter exclude the grantee from further use of the public streets. alleys and ways under the franchise. (l2) The franchise shall be granted upon the further condition that the grantee shall file wi thin five (5) dqs after the adoption of the ordinance granting the franchise, and shalllceep on file with the City at all times during the life of the franchise, a bond running to the City of Seal Beach in the penal sum of One Thousand Dollars (l,OOO.OO) , 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, f'uJ.- fill and perform each and every term and condition of the franChise, and in case of a breach of condition of said bond the whole amount of the penal sum 1herein named shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and surety or sureties upon said bond. (l3) The work of constructing, maintaining, operating, renewing, repa1ring, changing the size or number of or removing arw pipe lines or telephone lines under the tranchise shall, at all tiJnes during the term of the franchise, in all respects comply with all of the rules, regula- tions. ordinances and enactments of the City of Seal Beach and of such federal. state and county authorities as may have jurisdiction over said -1)- ... Resolution" Numoer I pipe lines and telephone lines; provided, however, that in each instance the paramount authority shall be binding on the grantee; and the City of Seal Beach hereby reserves all regulator,r power by law allowed to it over and with reference to the franchise and the exercise of righte, powers or privileges under the same by the grantee. (14) Said franchise is not and shall not be exclusive. BE IT FlJR'mER ~OLVEll that the City Clerk of the City- of Seal Beach be and he is hereby authorized and directed to advertise the fact that said application for said franchise has been made to said City- Council. together with a statement that it is proposed to grant said franchise upon terms, provisions and conditions, set forth in this Resolution, by publishing a Notics of Sale thereof in SEAL BEACH POST AND WAVE , a weekly newspaper of geruirai circula- tion 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- (20) nor more than thirty (30) dqs before the final day- fixed for receipt of bids; that such Notice of Sale state the character of the fran- chise herein proposed to be granted in conformity- with the foregoing tsrms. provisions and conditions hereof and the term for which it is to be granted, and that sealed bids for said franchise will be received up tol:~ , -L.M. on said lst day of May , 1950 , at the office ot the City Council, and that said franchise will 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 pereon. firm or corporation, present or represented, may bid for said franchise a swn not less than ten per cent (10%) above the highest sealed bid therefor. and said bid so made may be raised not less than ten per cent (10%) by any other responaible bidder, and said bidding shall so continue until finalJ.y' said franchise shall be struck off, sold and awarded by said C1ty Council to the highsst bidder therefor in lawful mons,y of the United States; that each sealed bid shall be accompan1ed with I 1 -6- I I I . Resolution" Numoer . .. 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 is enclosed therewith,. end the successful bidder shall deposit at least ten per cent (lO%) of the amount of his b1d 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 such deposit :l.mmediate:Qr 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 saie to the bidder who shall make the highest cash bid therefor, subject to the same conditions as to deposit as above mentioned; and. that 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 (lO%) of the amount of his bid therefor, as herein provided; that said successful bidder shall deposit with the City Clerk of the City of Seal Beach within twenty-four (24) hours after the acceptance of his bid, the remaining ninety per cent (90%) of the amount thereof, and in case he or it shall fail to do so, then said deposit theretofore made shall be forfeited, and ,the said award of said franchise shall be void, and the said 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 her.einbefore provided, and in case said bidder shall fail to deposit with the City Clerk of the said City of Seal Beach the remaining ninety per cent (90%) of his bid within twenty-four (24) hours after 1ts acceptance, the award to him of sa1d franchise shall be set aside, and the deposit theretofore made by him shall be forfeited and no further proceedings for a sale of eaid franchiee ehall be had unless the same shall be readvertised and again offered for sale. (15) Said published Notice of Sale shall further state that the successful bidder for said franchise shall file a bond. running to the City of Seal Beach with at least two (2) good and sufficient sureties -7- .' '. Resolution "Number , ,. or a corporate surety competent to act as sale surety. to be approved I by the Council, in the penal SUIII of One Thousand Dollars ($l,OOO.OO), conditioned that such bidder shall well and truly observe, fulfill and perform each and every term and condition 01' such franchise. and that in case of any breach of condition of such bond, the whole amount of the penal SUIII therein named shall be taken and deemed to be liquidated damages and shall be recoverable trom the principal and sureties upon I said bond and that said bond shall be fUed with the City Council within five (!)) da;ys after such franchise is awarded. IT IS FURTHER ORDERED. STATED AND DECLARED that the hour of -I;~, L-.M. on the 1 At da;y of MAY . 19....Qil., be and the same is hereby fixed as the hour and da;y for the meeting of the City Council in the Council Chamber in the City Hall of said City of Seal Beach, at which sealed bids for said franchise will be opened and de- clared and the proposed sale of said franchise will be conducted as hereinabove provided. PASSED. ADOPTED AND APPROVED at a re9:UJ.ar meeting of thlt City Council of the City of Seal Beach, held on the 6th da,y' of Ue:ro'h . 19 --!2Q. . ~~;:~ Mayor of the City of Seal Beach, California STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) CITY OF SEAL BEACH ) ss. I, JOHN W. MULCAHY . Clerk of the City of 1 Seal Beach, California, hereby certi1'y that the foregoing Resolution No. _ was duly adopted by the City Council of said City at a 'l"A~J' IU' meeting thereof held on the 6th day of Ua,.n"k , 19 50. and was passed by the following vote, to-witt -8- .' ' . .... I I I .. AYES I NOES t , .. - ,..,., .-. --.. .., , -~ _ ,:,-. }.....,...r " ..,~ ;: .~ ...... .... ... .,~ -.. '":... ABSENTt -' :....-:, -'- .,. - -- ":""....... ~ _..~ /~ ~, "- :::" r _ '\ _. . ...:......-,...~"'.., :.:~"\. .. - ~..-.... .... -,- Resolution - Number. COUNCIWEN ::t n <:019 S IZ rI ~ r; oAlfl If D n.ll'''Sr'''''I./~"we?r:; 'S.4v;=:: EI-T n /volV"c - n /1/ t:lNE