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.
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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
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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.
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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:
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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
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Robert L. Shand, City Clerk
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