Loading...
O1492 f E . . 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. PDT8911703 - 0001.0.0 ~.'-.M<. ( e . 2 (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. PDT8911703 - 0002.0.0 e e 3 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 PDT8911703 - 0003.0.0 e It ~--------------- 4 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. POT8911703 - 0004.0.0 ~ . e 5 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. PDT8911703 - 0005.0.0 -. e e 6 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. PDT8911703 - 0006.0.0 e e 7 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 PDT8911703 - 0007.0.0 e e 8 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. PDT8911703 - 0008.0.0 PDT8911703 - 0009.0.0 e e 10 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. PDT8911703 - 0010.0.0 .~ . e e 11 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. PDT8911703 - 0011.0.0 .' - e e 12 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 POT8911703 - 0012.0.0 ~ .' . e . 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: ~~~ City of Santa Monica J,~~ J.L:t.. ROBERT M. MYERS City Attorney Shell California Pipeline Company PDT8911703 . 0013.0.0 13 " ~. . . Adopted and approved this 12th day of September, 1989. D9L ~yr 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 - ATTES~: _ AL-. ~ C~ty C1QPK t. l :1~ e . Shell California Pipeline Company ~ ~ ~ .~F. - '~ - ~ ~ . . ,~ POBox 4848 51' N BrooKhurst Street Anaheim CA 92803 .89 SE:.- 21 P12 :41 J"'rl j: -<I " .r ,. ~J/"Ljj (3 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 " ~ - :-c . . 'I l .= , . i i-V'- ---.; i I I '\-' ( ; ; ~ I . . ; I ;-di.: ACCEPTANCE OF EASEMENT FRANCHISE .89 SF 21 P12 :42 GRANTED TO SHELL CALIFORNIA PIPELINE COMf&~Y~ o ,0kLfr 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 PDT8926307 - 0002.0.0 J . ~ .. .." ~ e e -- --' r \_, Fi ~ -~p;.: 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 o 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 ~trj~ 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. j I 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