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ORDINANCE NUMBER 1492 (CCS)
AN ORDINANCE OF THE CITY OF SANTA MONICA GRANTING
A FRANCHISE TO SHEll CALIFORNIA PIPELINE COMPANY
TO OPERATE, MAINTAIN, INSPECT, REPAIR, REMOVE, REPLACE
AND ABANDON A PIPELINE AND APPURTENANT FACILITIES
IN t€RTAIN PUBLIC STREETS OF THE CITY OF SANTA MONICA
THE CITY COU~CIL OF THE CITY OF SANTA MONICA ORDAINS AS FOLLOWS:
SECTION 1. Int,rpretation of Franchise.
(a) The word IlGrantee" shall mean the Shell Cal iforn;a Pipel ine
Company, a Callfornia corporation and a pipeline corporation within the
meaning of California Publlc Utilities Code ~ 228, to which the franchise
is granted by this Ordinance as well as its lawful successors or assigns.
(b) The word "City" sha 11 mean the Ci ty of Santa Monica, a
municipal corporation duly organized and validly existing under the
general laws of the State of California with corporate power to carryon
its business as it is now conducted under the statutes of the State of
California and the Charter of the City.
(c) The word "use" shall mean to operate, maintain, inspect, repair,
remove, replace and abandon a pipeline system together with all manholes,
valves, appurtenances and service connections therewith and necessary and
convenient for operation of the pipeline in, under, along and across
certain public streets (hereinafter collectively referred to as "street"
or "streets") located in City, described as follows:
On Twenty-sixth Street from the Northwesterly boundary
of the City of Santa Monica to Colorado Avenue; thence
on Colorado Avenue to Cloverfield Boulevard; thence on
Cloverfield Boulevard to Ocean Park Boulevard; thence
in Ocean Park Boulevard to Twenty-third Street; thence
on Twenty-third Street to Dewey Street; thence on Dewey
Street to the southeast boundary of City.
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(d) The word "franchise" or "franchlse property" shall mean thlS
franchise to use a pipeline system in those streets set forth in
subsection (c) of this Section.
(e) The word "pipeline" shall mean the existing pipeline system
including all manholes, valves and appurtenances.
SECTION 2. Grant of Franchise.
The right, privilege and franchise, subject to each and all terms
and conditions contained in this Ordlnance to continue to use the pipe-
line for the use of transporting petroleum, as defined in Grantee's
California P.U.C. Tariff No.1 effective September 16, 1988, in those
streets contained in Section l(c) is hereby granted to Grantee pursuant
to Section 1600. Article XVI of the Santa Monica Municipal City Charter.
SECTION 3. Term of Franchise.
This franchise shall be for a term of 20 years from the effective
date of this franchise; however, said franchise may be sooner terminated
by voluntary surrender or abandonment by Grantee, or by forfeiture for
noncompllance with the terms and provisions hereof. Grantee shall further
have an option to extend this franchise for an additional 20-year term
for a reasonable fee, to be negotiated by the parties hereto prior to the
end of the initial 20 year term of this franchise. The parties shall
commence negotiations on such fee upon notification from Grantee to
City, which notice shall be given no sooner than eighteen (18) months
nor later than twelve (12) months prior to expiration of the initial
term.
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SECTION 4. Compensation to the City.
(a) Grantee shall pay to the City a fee of $12,000 per year. The
first fee shall be paid upon acceptance of the franchise and annually
thereafter on the annlversary of this franchise.
(b) The compensation provided for in Section 4(a) shall be subject
to an increase after the first year of the franchise on the anniversary
date of the franchise, and each subsequent year thereafter during the
term of this franchise. The amount of increase shall be computed
pursuant to the Producer Price Index for All Commodities in the following
manner:
The base for computing the adjustment is the Producer Price Index
for All Commodities, published by the United States Department of
Labor, Bureau of Labor Statistics ("Index"), which is published for
the month nearest the date of the commencement of the term of this
franchise ("Beginning Index"). If the Index published nearest the
anniversary date ("Extension IndexU) has increased over the
Beginning Index, the franchise fee for the following year (until the
next adjustment) shall be set by multiplying the franchise fee set
forth in Section 4(a) by a fraction, the numerator of which is the
Extension Index and the denominator of which is the Beginning Index.
In no case shall this increased compensation be less than the
franchise fee set forth in Section 4(a). If the Index is
discontinued or revised during the term, such other mutually
agreeable governmental index or computation with which it is
replaced shall be used in order to obtain substantially the same
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result as would be obtained if the Index had not been discontinued
or revised.
(c) The franchise fee set out in this section shall in no way limit
Grantee's obligation to compensate City or any private citizen for any
damage, claim, expense, or loss whatsoever as set forth in this
franchise.
(d) Grantee shall pay to the City, on demand, the cost of all
repairs to public property made necessary by any operation of the Grantee
under this franchise.
(e) Any payment due from Grantee to City under any provision of
this franchise which is not paid when due shall bear interest at the
highest amount allowable by law, but the payment of such interest shall
not excuse or cure any default by Grantee under this franchise. Such
interest is separate and cumulative and is in addition to and shall not
diminish or represent a substitute for any or all of City's rights or
remedies under any other provision of this franchise.
SECTION 5. Abandonment.
Should Grantee elect to abandon all or any part of the pipeline,
Grantee shall water wash the pipeline, fill the pipeline with an inert
environmentally acceptable gas or other material and cap the pipeline.
Grantee shall not owe the City any compensation for the privilege of said
abandonment.
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SECTION 6. Insurance.
Grantee at all times during the term of this franchise shall
maintain liability insurance in an amount not less than $50,000,000 to
cover any claim, expense, or loss arising out of the operation, use,
maintenance or other privilege exercised under this franchise, including
Grantee's contractual liability to indemnify City. The City, its city
council, boards and commissions, officers, agents, servants and employees
shall be named as additional insureds in said policy of insurance for all
operations of Grantee relating to the operation of the pipeline within
the City. Said POllCY of insurance shall contain the following provi-
sions or endorsements:
(a) The naming of an additional insured shall not affect any
recovery to which such additional insured would be entitled under this
policy if not named as such additional insured.
(b) An additional lnsured named herein shall not be held liable for
any premium or expense of any nature on this policy or any extension
thereof.
ec) The provisions of the policy will not be changed, suspended,
cancelled or otherwise terminated as to the interest of an additional
insured named herein without first delivering to City twenty (20) days
notice of such intention.
(d) Grantee shall furnish to City a Certificate of Insurance showing
insurance as herein required.
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SECTION 7. Maintenance and Repair.
{a} Grantee shall maintain the pipeline in a good~ worker1ike manner
and in conformity with all applicable and lawful federa1~ state and local
rules and regulations and shall perform any necessary repairs. City
agrees to process all permlt and excavation applications in a timely
manner and for a reasonable fee not to exceed the time periods and fees
charged to other public utilities serving the citizens of the City.
(b) Grantee shall conduct maintenance and repair of the pipeline
with the least possible hindrance to the use of the streets for purposes
of trave1~ and as soon as such work is completed, all portions of the
streets which have been excavated or otherwise damaged thereby shall be
placed in as good condition as the same were before the commencement of
such work, to the satisfaction of the City, and any damage or injury
suffered by any person by reason of any excavation or obstruction being
improper1y guarded during said work shall be borne by Grantee.
(c) Grantee, upon completing any street opening~ shall restore all
streets~ highways, private and public property to at least as good
condition as the same existed in, immediately prior to said opening, and
does by this franchise~ guarantee that the work of restoration shall be
good against all faulty workmanship and materials and shall~ for a period
of one (I) year thereafter~ maintain all such street surfaces in as good
condition as other portions of said street, not disturbed by said
opening.
Cd) Grantee shall make such deposits of money or shall file such
bonds with the City as may be required to insure satisfaction and
completion of all construction actiYity within public rights of way.
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SECTION 8. Safety Requirements.
Grantee shall comply with all of the requirements of 49 C.F.R. Part
195 and all other applicable federal and state regulations.
SECTION 9. Pipeline Accidents.
If any portion of any street shall be damaged by reason of breaks or
leaks in any plpe or conduit constructed under this franchise, Grantee
shall, at its own expense, repair any such damage and put such street in
as good condition as it was in before such break or leak, to the reason-
able satisfaction of the City.
SECTION 10. Indemnification of City.
(a) Grantee shall indemnify and hold City, its city council, boards
and commissions, officers, agents, servants and employees harmless from
and against any and all loss, damages, liability, claims, suits, costs
and expenses, whatsoever, including reasonable attorneys' fees,
regardless of the merit or outcome of any such claim or suit, arising
from or in any manner connected to the activities or work conducted
pursuant to the franchise.
(b) Grantee shall indemnify, defend and save harmless the City, its
city council, boards and commissions, officers, agents, servants and
employees, from and against any and all claims and losses whatsoever,
including reasonable attorneys' fees, accruing or resulting to any and
all persons, firms or corporations furnishing or supplying work,
services, materials, equipment or supplies in connection with activities
or work conducted or performed pursuant to this franchise and arising out
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of such activities or work, and from any and all claims or losses what-
soever, including reasonable attorneys' fees, accruing or resulting to
any person, f,rm or corporation for damage, injury or death arising out
of Grantee's operations.
SECTION 11. Relocation of Pipeline Upon City's Request.
Grantee shall relocate without expense to the City any facilities
installed. used, or maintained under this franchise if necessary to
accommodate the construction of any public street, highway, alley or
other public improvement.
SECTION 12. City's Reserved Rights.
(a) The granting of this franchise or any of the terms or conditions
contained herein shall not be construed to prevent the City from granting
over the route herein specified or elsewhere any identical, similar, or
other type of franchise to any person, finm or corporation other than
Grantee.
(b) The City reserves the right to improve any highway, street,
alley, or other public place or portion thereof over and within which
this franchise is granted, including the widening, change of grade.
construction or reconstruction of such highway, street, alley or other
public place or portion thereof. and there is further reserved to the
City and any political subdivision or district within the City, the right
to construct, reconstruct, install, repair and maintain in any such
highway, street, alley or other public place or portion thereof, any
public improvement.
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SECTION 15. Forfeiture.
If the Grantee of this franchise shall fail, neglect or refuse to
comply with any of the provisions of this franchise or conditions thereof
unless due to a cause beyond Grantee's control and shall not within
thirty (30) days after written demand for compliance, begin the work of
compliance, or after having such beginning, shall not prosecute the same
with due diligence to completion, then the City may declare this
franchise and all rights and privileges forfeited and upon written notice
to Grantee, this franchise shall 'be void and the rights of the Grantee
sha 11 cease.
SECTION 16. Termination of Franchise.
At the time of the expiration, forfeiture or other termination of
this franchise, or the permanent discontinuance of the use of the
pipeline, or any portion thereof, Grantee shall abandon the pipeline, or
portion thereof, pursuant to Section 5 of this franchise.
SECTION 17. Cumulative Remedies.
No provision herein made for the purpose of securing the performance
of the tenms and conditions of this franchise shall be deemed an exclu-
sive remedy, or to afford the exclusive procedure for the enforcement of
said terms and conditions, but the remedies and procedures herein
provided, in addition to those provided by law, shall be deemed to be
cumulative.
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SECTION 18. Notice.
All notices, demands, requests or approvals to be given under thlS
franchlse shall be given in writing and conclusively shall be deemed
served when delivered personally or when received in the United States
Mail, postage prepaid, registered or certified, addressed as hereinafter
provided.
All notices, demands, requests or approvals from Grantee to City
shall be addressed to City at:
Santa Monica City Hall
1685 Main Street
Santa Monica, California 90401
Attn: City Attorney
All notices, demands, requests or approvals from City to Grantee
shall be addressed to Grantee at:
Shell California Pipeline Company
c/o Shell Pipe Line Corporation
P. O. Box 4848
Anaheim, California 92803
Attn: Division Manager
SECTION 19. Costs of litigation.
If any legal action is necessary to enforce any provision hereof or
for damages by reason of an alleged breach of any provisions of this
franchise, the prevailing party shall be entitled to receive from the
losing party all costs and expenses and such amount as the court may
adjudge to be reasonable attorney.s fees for the costs incurred by the
prevailing party in such action or proceeding.
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SECTION 20. Counterparts.
This franchise may be executed ln several counterparts, each of
which is an original, and all of which together constitute but one and
the same document.
SECTION 21. Captions for Convenience.
The captions herein are for convenience and reference only and are
not a part of this franchise and do not in any way limit, define or
ampllfy the terms and provisions hereof.
SECTION 22. Governing Law.
This franchise has been made and shall be constructed and
interpreted in accordance with the laws of the State of California.
SECTION 23. Acceptance of Franchise.
The acceptance of this franchise by the Grantee must be filed within
10 days after adoption of this franchise. Upon the filing of the
acceptance, and provided this franchise has become effective, all
franchises and privileges heretofore granted to the Grantee or its
predecessors in interest in respect to the pipeline shall terminate.
SECTION 24. Execution.
The Mayor of City shall sign and the City Clerk shall attest to the
passage of this Ordinance. The City Clerk shall cause the same to be
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published once in the official newspaper within 15 days after its
adoption. This Ordinance shall become effective 30 days from its
adoption.
IN WITNESS WHEREOF the parties hereto have executed this Ordinance
on this _ day of
. 1989.
Approved as to form:
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City of Santa Monica
J,~~ J.L:t..
ROBERT M. MYERS
City Attorney
Shell California Pipeline
Company
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Adopted and approved this 12th day of September, 1989.
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I hereby certify that the foregoing Ordinance No. 1492(CCS)
was duly and regularly introduced at a meeting of the ci ty
Council on the 22nd day of August 1989, that the said Ordinance
was thereafter duly adopted at a meeting of the City Council on
the 12th day of September 1989 by the following council vote:
Ayes: Councilmembers: Abdo, Genser, Jennings, Reed,
Mayor Zane
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Finkel, Katz
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Shell California Pipeline Company
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POBox 4848
51' N BrooKhurst Street
Anaheim CA 92803
.89 SE:.- 21 P12 :41
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BY MESSENGER
September 21, 1989
Clty Clerk
City of Santa Monica
1685 Main Street
Santa Monica, CA 90401
Dear Sir or Madam:
Pursuant to Artlcle XVI, Section 1603 of the Santa Monica City Charter
and Section 23 of Ordlnance No. 1492(CCS), enclosed for filing is Shell
California Pipeline Company's formal acceptance of Ordinance No. 1492(CC$).
z:y t~lY'
V. K. Hat0
Vice-President
cc - Ms. Mary H. Strobel
MKS926401
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ACCEPTANCE OF EASEMENT FRANCHISE .89 SF 21 P12 :42
GRANTED TO SHELL CALIFORNIA PIPELINE COMf&~Y~
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Pursuant to Article XVI, Section 1603 of the Santa Monica City
Charter, the undersigned hereby accepts the easement franchise granted
by the City of Santa Monica to Shell California Pipeline Company
pursuant to Ordinance No. 1492{CCS).
:::~~~ PIPELINE COMPANY
. V. K. 1at~y .------
Tltle: Vice President
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DATE
'89
\L'"' 21 P!2 =42
SHELL CALIFORNIA PIPE~INE COMPANY
09"15--89 PAY********12~O D~~~:SO~ ~E~~}Jr ********12'000.00
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TO THE ORDER OF
CHECK NO
r CITY OF SANTA MONICA
1685 MAIN STREET
SANTA MONICA CA,
002336
90i.j.01
TEXAS CO~MeRCE BANK N.A. HOUSTON
HOUSTQ"J, TEXAS
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11100 2 3 ~ bU. _: ~ . :l 000 b 0 c:U: l? L. Ul . ? 0 lll.
SHELL CALIFORNIA PIPELINE COMPANY
PAYMENTS FOR THE ACCOUNT OF
REFERENCE NO i' INVOICE NO : INVOICE DATE DISCOUNT
09-13-PCC-Ol CK REQUEST i
FIRST YEAR! FEE FOR THE 20 YEAR FRANCHISE
BETWEEN CIT OF SANTA ~ONICA AND SHE~L
CALIFORNIA IIPELINE CO~PA~Y.
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AMOUNT
12,000.00
FH
C 48161 03
002336
6722
12'000.00
L
M"IL CODE
8A!,;K ID
A.....OI..)'\IT OF C"':EC-<
VENDOI> NO
CHECK NO
S-~.&5S rOE'''' -; 66~ DlrEctai-'''qu'res~o PO 80x4452 HCLlstcr. Texas 77210