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HomeMy WebLinkAboutResolution No. 3570 RESOLUTION NO. 3570 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY DECLARING ITS INTENTION TO GRANT A FRANCHISE TO SOHIO TRANSPORTATION COMPANY OF CALIFORNIA THE CITY COUNCIL OF THE CITY OF DOWNEY DOES RESOLVE, FIND AND DETERMINE AS FOLLOWS: SECTION 1: SOHIO Transportation Company of California (grantee) proposes to construct a common carrier West -to -East crude oil delivery system known as the West Coast to Mid Continent Pipeline Project ( "Project ") which will consist of the following: (a) A deepwater terminal at Pier J in the Port of Long Beach, including three storage /surge tanks at the southeastern edge of Pier J. (b) A temporary storage point consisting of five additional storage /surge tanks located at the Caltrans Terminal in Dominguez Hills, Los Angeles County, approximately nine miles inland. The Caltrans Terminal will be connected to the Pier J Terminal by a 48 -inch pipeline. (c) A pipeline from the Caltrans Terminal to West Texas. This pipeline will consist of new sections of 42 -inch pipeline and abandoned 30 -inch natural gas lines. SECTION 2: As part of its Project grantee has submitted an application for a franchise to lay, use, operate and maintain its pipeline within the streets of the City of Downey. SECTION 3: The City of Downey has considered the Final Environmental Impact Report and the Supplement to the Final Environmental Impact Report (collectively "EIR ") prepared for the project and there has been supplied for review by the City Council of the City of Downey copies of said EIR and the Downey City Council has reviewed and considered the information contained in the EIR. SECTION 4. The EIR identifies a number of significant environmental effects of the Project. Changes in or alterations to the Project to mitigate or avoid the significant environmental effects identified are within the responsibility and jurisdiction of other public agencies and not the City of Downey. Such changes have been adopted by such other agencies or can and should be adopted by such other agencies. SECTION 5. The installation and operation by SOHIO of its pipeline within the streets of the City of Downey pursuant to the proposed franchise will involve no significant environmental effects. SECTION 6. The City Council of the City of Downey hereby declares its intention to grant a franchise to grantee and proposes to adopt the following as an ordinance of the City of Downey: SECTION 1: NATURE AND EXTENT OF GRANT: The City of Downey, hereinafter also referred to as "City ", hereby grants to SOHIO Transportation Company of California, its successors and assigns, hereinafter referred to as "Grantee ", subject to the terms and conditions herein contained, the right, franchise and privilege from time to time, for a period of twenty -five (25) years from and after the effective date of this agreement to install, operate, maintain, replace, change the size of, abandon in place and /or remove pipelines for the transportation of oil, petroleum, hydrocarbon substances, together with all appurtenances and service connections necessary or convenient to properly maintain and operate said pipelines, including cathodic protection facilities, necessary or convenient for the Grantee's business, hereinafter collectively called "franchise property ", within the public streets, highways or public property now existing or hereinafter dedicated, hereinafter collectively called "streets ", of the City of Downey. All power and control lines shall be underground. SECTION 2: DURATION OF FRANCHISE: This Franchise shall be for a period of twenty -five (25) years. The City reserves the right to terminate this Franchise prior to its expiration in the event: (a) Grantee fails to comply with any of the provisions hereof; provided, however, that if such failure of compliance shall be due to a cause beyond the control of the Grantee, the franchise shall not be so terminated. The City shall give written notice to the Grantee to commence necessary action to correct the non - compliance within 90 days from the date of notice unless the condition required to be corrected is of such kind or nature as to cause a hazard to the public or endanger the public peace, health, safety or general welfare, and in such event, the corrective action shall be commenced within such time as designated in the notice. In the event the grantee fails to commence the corrective action with the time specified, the City may do so at the Grantee's cost. (b) Any provisions hereof become invalid or unenforceable and the City expressly finds that such provisions constitute a consideration material to the granting of this Franchise: then this franchise may be terminated by the City on 10 days written notice to the Grantee. SECTION 3: CONSTRUCTION A. LOCATION OF FRANCHISE PROPERTY: The location of any franchise property installed hereunder shall be first approved by the Director of Community Development. B. APPLICABLE CODES: American National Standard Code for Pressure Piping ANSI B -31.4, and Part 195, Title 49, Code of Federal Regulation, in its latest revision, relating to Transportation of Liquids by Pipeline. C. STREET EXCAVATIONS: Grantee shall have the right to make all necessary excavations in the streets for the purposes granted in this franchise, but nothing herein contained shall relieve Grantee from the provisions of any ordinance or law that may be in force at the time, requiring permits to be obtained for street excavations before such work is commenced. All excavations shall be made and refilled in strict compliance with all City ordinances that may be in effect at the time of the performance of the work and shall be so made as not to interfere unreasonably with the free use of the streets by the public. Upon completion of the work for which street excavations are made, all portions of the streets which have been excavated or otherwise damaged by such excavation work shall be restored to as good a condition as they were before the commencement of such work, to the satisfaction of the Director of Community Development. D. EMERGENCY WORK: The Grantee shall promptly repair any leaks or breaks in pipelines and conduits and, if any portion of any street shall be damaged by reason of breaks or leaks in any pipe or conduit constructed under this franchise, or by reason of the exercise by grantee of its rights hereunder the Grantee shall, at its own expense, take immediate steps to repair any such damage and restore such street to as good a condition as it was before such break or leak, to the satisfaction of the Director of Community Development. Such emergency repair of franchise property may be commenced without prior permit; provided, however, that the Grantee no later than the next normal working day shall notify by telephone the Director of Community Development of such work and shall within the following seven calendar (7) days apply for an excavation permit, authorizing such emergency work. E. CHANGES REQUIRED BY PUBLIC IMPROVEMENTS: If the Director of Community Development shall determine that it is reasonable and necessary that Grantee's pipeline be temporarily or permanently relocated or substitute facilities installed in order that the City, may repair, replace, relocate, change grade of or otherwise change or modify any street improvement or city -owned utility facilities, said Director of Community Development shall give notice thereof, in writing to the Grantee. Within 90 days after the service of such notice upon the Grantee, the Grantee shall at its sole cost and expense begin and shall thereafter diligently prosecute the necessary work to completion. 2 - In the event the City proposes to improve its facilities, which improvements, would require the relocation or modification of Grantee's pipeline, the Director of Community Development may, with the consent of the Grantee, modify the proposed City's improvement to the extent that construction thereof has a lesser effect on Grantee's pipeline, and Grantee shall reimburse the City for the cost and expense of making such modification. In the event that any franchise property is required to be abandoned in or removed from any street, or portion thereof affected, the Director of Community Development shall approve such additional street location or locations as may be necessary to permit the installation of substitute facilities. The City will not require any relocation or modification which will have the effect of depriving the Grantee of a continuous and contiguous pipeline right of way. F. ABANDONMENT OF FRANCHISE PROPERTY: The Director of Community Development, upon such terms and conditions agreeable to both the City and Grantee, may give Grantee permission to abandon, without removing, franchise property installed under the franchise. The length of any pipeline abandoned with such permission, shall not be considered in calculating payments due under the franchise following the date the Director of Community Development or his designated representative has inspected and approved in writing the abandonment work. The ownership of all franchise property so abandoned shall thereafter vest in the City. SECTION 4: MAPS AND RECORDS: Within six months following the date in which any franchise property has been installed, relocated, removed or abandoned under this franchise, the Grantee shall file a map or maps in such form as may be required by the Director of Community Development showing the location, length and size of all such facilities so installed, relocated, removed or abandoned. SECTION 5: COMPENSATION TO THE CITY: As consideration for the franchise hereby granted, Grantee shall make annual payment to the City, in lawful money of the United States, at the rate of $0.01 per nominal internal diameter inch per lineal foot of pipeline maintained in the City's public streets pursuant to this franchise. The annual payments shall be made on or before the day of • In the event any facility shall have been subject to the terms of this franchise for only a fractional part of the proceeding year ending the payment therefore shall be computed in the proportion which the number of days in the fractional part bears to 360. The annual payment shall be accompanied by a report, showing the lengths of pipelines, polelines and /or conduits maintained under the franchise, the nominal internal diameter of the pipelines, the applicable payment rates, and the total amount due. The rate of compensation shall be adjusted every five years in accordance with U.S. Department of Labor Consumer Price Index for the Los Angeles - Long Beach area or its replacement index. In no event, however, shall the increase or decrease be greater than 25% in any 5 -year period. The index in effect at the time of granting this franchise shall be used for comparison. SECTION 6: RESPONSIBILITY: A. INDEMNIFICATION: The Grantee, by the acceptance or use of the franchise hereby granted, agrees to keep and save free and harmless the City, its officers, agents or employees against any and all claims, demands or causes of action which may be asserted, prosecuted or established against them, or any of them, for damage to persons, or property, of whatsoever nature, arising out of the use by it of the City streets hereunder or arising out of any of the operations or activities of the Grantee pursuant to this franchise, whether such damage shall be caused by negligence or otherwise, excepting therefrom, however, any claim, demand or cause of action, which may be asserted, prosecuted or established against the City under the provisions - 3 - of the Workers' Compensation Act for injury to, or the death of any of the City's officers, agents, or employees while acting within the scope of their employment and further excepting therefrom any claim, demand or cause of action arising out of the negligence of the City, its officers, agents and /or employees. SECTION 7: ASSIGNMENT: Grantee shall 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 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, without the consent of the City expressed 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 by Grantee in trust or by way of mortgage or hypothecation covering all or any part of Grantee's property, which transfer, mortgage or hypothecation shall be for the purpose of securing an indebtedness of 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. Any such sale, lease, assignment, or other disposition of this franchise, whether requiring the consent of the City or otherwise, shall be evidenced by a duly executed instrument in writing filed in the office of the City Clerk within thirty (30) days after such sale, lease, assignment or other disposition. SECTION 8: ACCEPTANCE: This franchise is granted and shall be held and enjoyed only upon the terms and conditions herein contained, and the Grantee shall, within thirty (30) days after the adoption of the ordinance granting said franchise, file with the City Clerk of the City of Downey a written acceptance of such terms and conditions. SECTION 9: ADMINISTRATIVE COSTS: The grantee of this franchise shall pay to the City a sum of money sufficient to reimburse it for all administrative expenses incurred by it in connection with the granting of this franchise; such payment shall be made within thirty (30) days after the City shall furnish such Grantee with a written statement requesting payment. The amount is mutually agreed to be $500.00. SECTION 7: An action or proceeding is pending before the California courts challenging the adequacy of the EIR prepared with respect to the grantee's project. Pursuant to Public Resources Code, Section 21167.3, the grant of this franchise is therefore conditional and grantee is authorized hereby to proceed with its Project at such time as the action or proceeding results in a final determination that the EIR complies with the provisions of the California Environmental Quality Act, Public Resources Code Section 21000 et seq. SECTION 8: The hour of 7:30 p.m. on the 25th day of July 1978, is hereby fixed as the time, and the Council Chambers in the City Hall at 8425 Second Street, Downey, California, is hereby fixed as the place for hearing all persons interested in objecting to the said franchise. - 4 - SECTION 9. The City Clerk shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 27th day of June , 1978. / William L. Greene, Mayor ATTEST: '''-' I ' v." ), (/ / 'I/2Z /// R L. Shand, City Clerk I HEREBY CERTIFY that the foregoing Resolution No.3570 was approved and adopted at a regular meeting of the City Council held on the 27th day of June , 1978, by the following vote, to wit: AYES: 5 Council Members: Jackman, Miller, Mackaig, Swearingen, Greene NOES: 0 Council Members: None ABSENT: 0 Council Members: None r .s,•9 J / am :` f r` ..`.- -- , ` i i'> 447,-" ti i� Robert L. Shand, City Clerk - 5 -