HomeMy WebLinkAboutCC Res 854 1954-10-19
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RESOLUTION NO. t6S1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEAL BEACH, STATE OF CALIFORNIA, IN TRE MATTER
OF THE APPLICATION OF MONTEREY OIL ClM'ANY AND
THE TEXAS COMPANY, JOINTLY, FOR A FRANCHISE FOR
CONDUITS, MAINS, PIPE LINES, AND TELEPHONE LINES.
WHEREAS, Monterey Oil C~any, a corporation, and The Texas C~any,
a corporation, jointly have made application to the City Council of the City
of Seal Beach, State of Cal.ifornia, for the franchise and privilege for a
period of thirty (30) years from and after the effective date of the ordinance
granting such franchise to lay, construct, connect with other pipe lines,
maintain, operate, repair, renew, al.ter, change the size and nUDiber of, remove
and abandon conduits, mains and pipe lines for the transportation of oil,
petrOleum, gas, gasoline, water and other substances, together with all ma,n-
holes, valves, appurtenances and service connections, including telephone
lines on poles or in conduits used in connection therewith, necessary or con-
venient for the operation of such conduits, mains and pipe lines in, under,
along and across all public highways, streets and alleys and public places in
the City of Seal. Beach; and
WHEREAS, it appears and it is hereby determined by said City Council
that said franchise and privilege should be granted upon and subject to cer-
tain terms and conditions;
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
1. That said franchise and privilege for a term of thirty (30)
years and for the purposes hereinafter stated be awarded and sold to the
highest cash bidder according to law,
2. That sealed bids for said franchise and privilege be received
up to 7: bO o'clock LM. on the ~day of l;)p-cet11sPi2-
, 1954,
at the Office of the City Clerk in the City Hall, City of Seal. Beach, at which
time said City Council will, in open session in the Council Chamber in the City
Hall, open and read said bids, and said franchise will be struck off, sold,
awarded, and granted to the person, firm or corporation who shall make the
highest bid therefor, provided that at the time of the opening of said bids
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any responsible person, firm or corporation, present or represented, may bid
for said franchise and privilege a sum 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 (101)) by allY other responsible bidder and said bidding
may so continue until finally said franchise and privilege shall be struck
off, sold and awarded by said City Council to the highest bidder therefor, in
lawful money of the United States. Each sealed bid shall be accompanied by
cash or a certified check payable to the City Treasurer of the City of Seal
Beach 1'or the full amount 01' said bid and no sealed bid shall be considered
unless said cash or check is enclosed therewith, and the successful bidder
shall deposit at least ten per cent (101)) 01' the amount 01' his bid with the
City Clerk of the City 01' Seal Beach, before the 1'ranchise and privilege shall
be struck off to him, and i1' he shall fail to make such deposit immediately,
then in that event, his bid shall not be received and shall be considered as
void and said franchise and privilege shall then and there be again offered
1'or sale to the bidder who shall make the highest cash bid therefor, subject
to the Sllllle conditions of deposit as above-mentioned. Said procedure shall be
had until said franchise and privilege is struck off, sold and awarded to a
bidder who shall make the necessary deposit of at least ten per cent (101)) 01'
the amount 01' his bid therefor, as herein provided. Said success1'ul bidder s
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 the bidder shall fail to deposit with the City
Clerk of the City of Seal Beach the remaining ninety per cent (901)) of his bid
within twenty-four (24) hours after its acceptance, the award to him of said
franchise and privilege shall be set aside, and the deposit theretofore made
by him shall be forfeited, and no further proceedings for a sale of said
1'ranchise and privilege shall be bad unless the same shall be again advertised
and offered for sale.
3. ibe franchise to be sold and awarded hereunder shall be subject
to and upon the following terms and conditions:
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Section 1. That the franchise and privilege be granted for a period
of thirty (30) years from and after the effective date of the ordinance
granting such franchise to lay, construct, connect with other pipe lines,
maintain, operate, repair, renew, alter, change the size and number of,
remove and abandon conduits, mains and pipe lines for the transportation of
011, petroleum, gas, gasoline, water and other substances together with all
manholes, valves, appurtenances and service connections, including telephone
lines on poles or in conduits used in connection therewith, necessary or con-
venient for the operation of such eonduits, mains and pipe lines in, under,
along and across all public highw~, streets and alleys, and public places
now or hereafter dedicated to public use within the City of Seal Beach,
California, hereinafter referred to as "the City".
. Section 2. The franchise shall be granted on the terms and con-
ditions hereinafter contained and the grantee shall file with the City Clerk
of the City of Seal Beach a written acceptance thereof within thirty (30) days
after the passage of the ordinance granting the franchise. The word "grantee"
whenever used herein shall mean and include the grantee or grantees, their
respective successors and assigns.
Section 3. The term of the franchise and privilege shall be thirty
(30) years from and after the date on which the ordinance granting the fran-
chise becomes effective.
Section 4. ibe grantee of the franchise shall have the right,
subject to such regulations as are now or hereafter may be in force, to make
all necessary excavations in said public h1ghw~, streets and alleys and
public places for the laying, construction, connection with other pipe lines,
maintenance, operation, repair, renewal, alteration, change in the size and ,".
number of, removal and abandonment of said conduits, mains, pipe lines, man-
holes, valves, appurtenances and service connections, including telephone lines
on poles or in conduits, used in connection with said pipe lines. Before any
conduit, main, pipe line or telephone line is constructed or abandoned a permit
shall be secured from the City Council speCifying the best and most desirable
routing of said conduits, mains and lines, or the conditions under which they
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1 may be abandoned, as the case may be, and the City Council's decision on said
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routing and conditions shall be final and binding on the grantee.
Section 5. The work of laying, constructing, connecting with other
4 pipe lines, maintaining, operating, repairing, renewing, altering, changing
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5 the size and number of, removing and abandoning conduits, mains, pipe lines
6 and telephone lines shall be conducted with the least possible obstruction
7 and inconvenience to the public and with the least possible hindrance to the
8 use of the highways, streets, alleys and public places for purposes of traveL
9 All excavations shall be backfilled and the surface placed in as good condi-
10 tion as it was in at the beginning of such work and to the satisfaction of the
11 Street SUperintendent of the City. The grantee shall hold the City, its City
12 Council and other officers, harmless from any claims for dama.ge or inJury
13 suffered by any person by reason of any excavation or obstruction in said
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highways, streets, alleys and public places occasioned by the laying, construc
tion, connection with other pipe lines, maintenance, operation, repair, renew ,
16 alteration, removal or abandonment of any conduits, mains, pipe lines or tele-
17 phone lines of the grantee under the franchise and shall be responsible for
18 such damage or inJury.
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Section 6. ibe City reserves the right to change the grade or line
20 of any highway, street, alley or public place in which conduits, mains, pipe
21 lines or telephone lines are laid, constructed, maintained, or operated under
22 the . franchise and, upon receiving notice from the City Council of its inten-
23 tion so to do, grantee shall promptly and at his or its own cost and expense
24 change the location of the conduits, mains, pipe lines and/or telephone
25 lines and their appurtenances where necessary to conform to such change of
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grade or line. Any damage caused to any public improvements by the grantee
in exercising any right or privilege under the franchise, or in performing any
28 duty imposed hereby, shall be promptly repaired by grantee at his or its own
29 cost and expense.
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Section 7. The grantee shall repair at his or its own cost and
expense any damage caus,:d to any highway, street, alley, public place or other
public property of the City by any breaks, leaks or failure of the conduits,
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1 mains, pipe lines or telephone lines laid, constructed, maintained or operated
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under the franchise. In the event the grantee shall fail to make any such
repairs within ten (10) days after a notice and demand therefor from the City,
4 the City may make such repairs, at the cost and expense of the grantee, which
5 cost, by the acceptance of the franchise, the grantee agrees to pay upon demand.
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Section 8. The grantee shall, during the life of the franchise, pay
7 to the City, in lawful money of the United States, a sum equal to two per cent
8 (2~) of the royalties paid by grantee to the state of California with respect
9 to such oil, petroleum, gas and other hydrocarbon substances as are produced
10 by means of offshore wells drilled on and bottomed under tide and submerged
11 lands of the Pacific Ocean and are transported through any conduit, main or
12 pipe line laid, constructed, maintained or operated under the franchise and
13 then subJect thereto. Each time that grantee shall during the life of the
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franchise pay any of the aforesaid royalties to the State of California said
grantee shall pay the City the sum equal to two per cent (2~) thereof to
16 which the City is entitled as aforesaid and shall file with the City Clerk a
17 statement, verified by an officer or agent of such grantee authorized by law
18 to make verified statements on behalf of the grantee of which he is an officer
19 or agent, showing the aforesaid royalties witq respect to whictl t~t payment
20 to the City is being made. Commencing at the beginning of the sixth year
21 after the date of the franchise and continuing during the then remaining life
22 of the franchise, grantee shall pay to the City, in lawful IDOney of the United
23 states, two per cent (2~) of the gross annual receipts of the grantee arising
24 from the use, operation or possession of the franchise, the same to be pay-
25 able annually on or before the first day of April in each year with respect to
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gross receipts derived by the grantee from his or its operation of such con-
,
duits, mains and pipe lines during the year ending December 31, next preceding,
provided, however, that any and all payments made by grantee to the City dur-
ing such year ending December 31, next preceding, based upon royalties paid to
the State shall be credited upon any sums which shall accrue under this
sentence based upon said gross receipts during such year. With respect to the
..first and last calendar years for which the two per cent (2~) of the gross
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It-i~ -'further. pr-o~lded-.that-iii- no event shailthe -amount-Which the
grantees shall be obligated to pay to the City hereunder be less
~ I than a s UII1 equal to two peoroent (2%) or 1?he roy-alti tea paid by
.
, ~antees to the State of C~llrornla as aforesaid.
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annual receipts is payable, such payments and the credits thereon shall be
pro-rated according to the period of time the franchise shall have been in
effect during such respective years. Annually on or before each such first
day of April, grantee shall file with the City Clerk a statement, verified as
aforesaid, showing his or its gross annual receipts from the operation of said
conduits, mains and pipe lines during the year ending December 31, next
preceding, and showing also the aggregate of the aforesaid royalties paid to
':;:r ,. F~,entr,e. PItIJVIIIEII ~r HV /w, '''Mr ~#~
the state during such year. T1t6 ;9,1~"il/r ullflell' ntll! 6KF1/'1 T~p$. :s'//nu. iJ.e. jI/jUlflj 1>
p~ T7' THe C/~/ftGJ261iDP~b!i.e #'f:S l1f11"'A..rlfh I~f!cuq-(~~j',c me ~ =r
,9t ~MNn:&$' 17t1j. 1/L diP- "'~"I!"hj. ~ Pti"t#tl.esl4/D
I~ 'f' Section. Gran ee s 1 not permit any right or privilege granted
by the franchise to be exercised by another, 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 by grantee except to a
corporation acquiring or owning a portion of the assets of such grantee thro
consolidation, merger, or re-orgsnization, 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), without the consent of the City expressed by resolu-
tion; provided, however, that no consent shall be required for any transfer by
grantee in trust or by way of mortgage or hypothecation covering all or any
part of such grantee's property, which transfer, mortgage or hypothecation s
be for the purpose of securing an indebtedness of such grantee or for the
purpose of renewing, extending, refunding, retiring, paying or cancelling in
whole or in part any such indebtedness at any time or from time to time. Arrj
such sale, lease, assignment, or other disposition of franchise for which con-
sent of the City is required hereunder shall be evidenced by a duly executed
instrument in writing filed in the office of the City Clerk.
Section 10. In the event the grantee shall fail to keep, :f'ul:f'ill,
or perform any of the terms or conditions of the franchise and shall fail to
begin to remedy such default within thirty (30) days after notice from the
City, and thereafter to exercise due diligence to correct the same, the City
Council may, at its option exercised by ordinance, declare the franchise for-
feited. Upon such a declaration of forfeiture the franchise shall be deemed
cancelled and terminated and all of the rights and privileges of the grantee
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under the franchise shall be deemed surrendered and terminated and the City
may thereafter exclude the grantee from further use of the public highways,
streets and alleys and public places of the City under the franchise.
SECTION 11. The franchise shall be granted upon the further con-
dition that the ~antee shall file within five (5) days after the date upon
which the ordinance is adopted, and shall keep on file with the City at all
times during the life of the franchise, a bond running to the City in 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 the franchise, and in case of a breach of condition of said bond the whole
amount of the penal sum therein named shall be taken and deemed to be liqui-
dated damages and shall be recoverable from the principals and surety or
sureties upon said bond.
Section 12. The work of laying, constructing, connecting with other
pipe lines, maintaining, operating, repairing, renewing, altering, changing t
size or number of, removing or abandoning any conduits, mains, pipe lines or
telephone lines hereafter laid, constructed, maintained or operated under the
franchise shall at all times during the term thereof, in all respects comply
with all of the rules, regulations, ordinsnces and enactments of the City and
of such federal, state and county authorities as may have Jurisdiction over
said conduits, mains, pipe lines and telephone lines, prOVided, 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 the franchise and the exercise of rignts, power or privilege
under the same by the grantee.
Section 13. The franchise is not and shall not be flXclusive.
Se~tion 14. 'D1e ordinance shall teke effect thirty (30) days after
its adoption and the City Clerk shall certify to the passage and adoption of
the ord1nsnce, and shall cause the same to be published once in "The Seal
Beach Post and Wave", a weekly newspaper of general circulation published and
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1 circulated within the City of Seal Beach, and which is hereby designated for
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that purpose.
4. ibat the City Clerk of the City of Seal Beach be and he is
4 hereby directed to advertise said franchise for sale by publishing notice of
5 sale thereof for four (4) successive weeks in "The Seal Beach Post and Wave",
6 a newspaper of general cirdulation published in said City of Seal Beach so
7 that full publication shall be completed not less than twenty (20) nor more
8 than thirty (30) days before the ~ day of ~t".sqIifCf. , 1954.
9 Said notice shall be given by said Clerk in substantially the following form,
10 to-wit:
11 NOnCE OF SALE OF
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A FRANCHISE TO lAY, CONSTRUCT, CONNECT WITH amER PIPE LINES,
MAIN'nIN, OPERATE, REPAm, RENEW, AIIrER, CHANGE 'mE SIZE AND
NUMBER OF, REMOVE AND ABANDON CONDUITS, MAINS AND PIPE LINES
FOR THE TRANSPORTATION OF OIL, PmROLEUM, GAS, GASOLINE, WATER
AND amER SUBSTANCES, TOGJmIER WITH ALL MAImOLES, VALVES,
APPURTENANCES AND SERVICE CONNECTIONS, INCLUDING TELEPHONE
LINES ON POLES OR IN CONDUITS, USED IN CONNECTION THEREWITH,
IN, UNDER, ALONG AND ACROSS ALL PUBLIC HIGHWAYS, STREl!.'.rS
AND ALLEYS, IN 'mE CITY OF SEAL BEACH, CALIFORNIA, FOR A
PERIOD OF mmTY YEARS.
TO WHCH IT MAY CONCERN:
Notice is hereby given that MONTEREY OIL CCMPANY, a corporation,
and 'mE TEXAS CCMPANY, a corporation, Jointly, have made application to
the City Council of the City of Seal Beach, California, for a franchise
and privilege to construct from time to time and, for a period of thirty
(30) years from and after the date upon which said franchise shall become
effective, to lay, construct, connect with other pipe lines, maintain,
operate, repair, renew, alter, change the size and number of, remove and
abandon conduits, mains and pipe lines for the transportation of oil,
petroleum, gas, gaSOline, water and other substances, together with all
manholes, valves, appurtenances and service connections, including tele-
phone lines on poles or in conduits used in connection therewith, neces-
sary or convenient for the operation of such conduits, mains and pipe
lines in, under, along and across all public highways, streets and
alleys and public places now or hereafter dedicated to public use
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within the City of Seal Beach, California.
That the City Council of the City of Seal Beach proposes to
grant the franchise and privilege applied for in said application in the
manner prescribed by law and under the following terms and conditions:
1. The term of said franchise and privilege shall be thirty (30)
years from and after the date on which the ordinance granting the
same becomes effective.
2. The word "grantee" whenever used herein, shall be held to
include the grantee or grantees, his, her, its or their successors
or assigns.
3. The grantee of said franchise and privilege shall comply with
all of the provisions and conditions prescribed by law and those
contained in the resolution of the City Council of the City of Seal
Beach duly adopted at its meeting on the ~ day of O~
1954.
4.
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Sealed bids for said franchise and privilege will be received
dayOf~Q~
up to 'J.llQ.. 0 I clock M" on the
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1954, at the Office of the eity Clerk in the City Hall, City of Seal
Beach, at which time said City Council will, in open session in the
Council Chamber in the City Hall, open and read said bids, and said
franchise will be struck off, sold, awarded, and granted to the
person, firm or corporation who shall make the highest bid therefor,
provided that at the time of the opening of said bids any responsible
person, firm or corporation, present or represented, may bid for said
franchise and privilege a sum 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 responsible bidder and
said bidding may so continue until finally said franchise and privilege
shall be struck off, sold and awarded by said City Council to the
highest bidder therefor, in lawful money of the United states. 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
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of said bid and no sealed bid shall be considered unless said cash
or check is enclosed therewith, and the successful bidder shall
deposit at least ten per cent (10~) of the amount of his bid with
the City Clerk of the City of Seal Beach, before the franchise and
privilege shall be struck off to him, and if he shall fail to make
such deposit irmnediately, then in that event, his bid shall not be
received and shall be considered as void and said franchise and
privilege shall then and there be again offered for sale to the
bidder who shall make the highest cash bid therefor, subJect to
the same conditions of deposit as above-mentioned. Said procedure
shall be had until said franchise and privilege is struck off, sold
and awarded to a bidder who shall make the necessary deposit of at
least ten per cent (10~) of the amount of his bid therefor, as
herein provided. 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 the bidder shall fail to deposit with the
City Clerk of the City of Seal Beach the remaining ninety per cent
(90~) of his bid within twenty-four (24) hours after its acceptance,
the award to him of said franchise and privilege shall be set aside,
and the deposit theretofore made by him shall be forfeited, and no
further proceedings for a sale of said franchise and privilege shall
be had unless the same shall be again advertised and offered for sale.
5. The successful bidder and his assigns shall, during the life of
the franchise, pay to the City of Seal Beach, in lawful money of the
United States, a sum equal to two percent (2~) of the royalties paid
by the grantee to the state of California with respect to such oil,
petrOleum, gas and other hydrocarbon substances as are produced by
means of offshore wells drilled on and bottomed under tide and sub-
merged lands of the Pacific Ocean and are transported through any
conduit, main or pipe line laid, constructed, maintained or operated
under the franchise and then subJect thereto. COlIIIIIencing at the
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It is further provided tbat in no event shall the amount which the
grantees shall ba obligated to pay to the.Cit~ bereund,r b~ less
than.. sum equa1- to two percent (2j() of the ro~altites paid by
.,
grantees to the State of California as aforesaid.
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beginning of the sixth year after the date of the franchise and
continuing during the then remaining life of the franchise, grantee
shall pay the City of Seal Beach, in lawful money of the United
States, two per cent (2~) of the gross annual receipts of the
grantee arising from the use, operation or possession of the
franchise, the same to be payable annually on or before the first
day of April in each year with respect to gross receipts derived
by the grantee from his or its operation of such conduits, mains
and pipe lines during the year ending December 31, next preceding,
provided, however, that any and all payments made by grantee to tbe
City of Seal Beach during Eluch year ending December 31, next pre-
ceding, based upon royalties paid to the State shall be credited
upon any sums which shall accrue under this sentence based upon
said gross receipts during such year. With respect to the first
and last calendar years for which the two per cent (2~) of the gross
annual receipts is payable, such payments and the credits thereon
shall be pro-rated according to the period of time the franchise
rr IS /'VlMtJt6te
P~I'II1GO' 171Hr
shall have been i~ffect during such re~ective ;:ars.#Q /iIhlNT 61M'1-
$#~ W ~r;;: '::'~1Wfif.tS~~II/~ ",fHI~~~rftrrlr;fle7b.ft~"'~F
6. The successful bidder for said franchise and privilege shall~t
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within five (5) days after said franchise and privilege is awarded
to him or it, file with the City Council, a bond running to said
City of Seal Beach in the penal sum of One Thousand Dollars ($1,000.00)
with at least two good and su:f':f'icient sureties to be approved by the
City Council, conditioned that such bidder shall well and truly
observe, fulfill and perform each and every term and condition of
said franchise, and in case of a breach of condition of said bond,
the whole amount of the penal sum therein named shall be taken and
deemed to be liquidated damages and shall be recoverable from the
principal and sureties upon said bond. If said bond be not so filed,
the award of said franchise and privilege will be set aside and any
money paid therefor will be forfeited.
F. W. HICKMAN, City Clerk of the
City of Seal Beach
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IT IS FURmER RESOLVED, ORDERED AND DECLARED that the hour of
~M. on the ~ day of ~a~ , 1954 be, and the same
3 is hereby fixed, as the hour and day for the meeting of the City Council in
4 the Council Chamber of the City Hall of said City of Seal Beach at which
5 sealed bids for said franchise and privilege will be opened and declared,
6 and the proposed sale of said franchise and privilege will be conducted as
7 hereinabove provided.
8 PASSED, ADOPrED AND APPROVED this /f~ day of tt:b..Y- ,1954
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Mayor of the City of Seal Beach,
California
, '" . "I" .
.ATTmr-; -~.
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~~~~<~
City_Clerlc-~:(Sthe City of Seal Beach,
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STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF SEAL BEACH
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20 I, F. W. HICKMAN, City Clerk of the Clty of Seal
21 Beach do hereby certlfy that the above and foregoing
22 Resolution No. 8S4 WaS passed, approved, and adopted at
23 a regular meetlng thereof, held on the 19th day of October,
24 19S4 by the following votel
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AYES.
Councilmen C4e- V~h"-V~A.,), -f ~<:>AI.,..el:J
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Councilmen - /UDAl G'
Councilmen - /ll'DN/r
NOES I
ABSERTI
PASSED I
Councilmen
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