R10801City Council Meeting 02 -25 -2014
Santa Monica, California
RESOLUTION NUMBER 10801 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DECLARING ITS INTENT TO GRANT A FRANCHISE TO CRIMSON
CALIFORNIA PIPELINE, L.P.
TO OPERATE AND MAINTAIN AN EXISTING CRUDE PETROLEUM PIPELINE
THROUGH THE CITY OF SANTA MONICA
WHEREAS, on August 22, 1989 the City of Santa Monica ( "City ") adopted
Ordinance No. 1492 (CCS) and awarded a franchise agreement ( "Franchise ") to Shell
California Pipeline Company ( "Shell Pipeline ") for it to operate and maintain a crude
petroleum transmission pipeline within the City of Santa Monica; and
WHEREAS, the pipeline originates in Ventura County and terminates in the
County of Los Angeles and transmits crude petroleum to refineries in the County of Los
Angeles; and
WHEREAS, the pipeline within the City of Santa Monica is 10 inches in diameter
and travels through the City of Santa Monica north to south; and
WHEREAS, on April 7, 2005 the California Public Utilities Commission ( "CPUC ")
authorized Shell Pipeline to sell certain of its pipeline assets to Crimson California
Pipeline L.P., ( "Crimson Pipeline "), a public utility regulated by the CPUC; and
WHEREAS, Crimson Pipeline has operated the pipeline as a common carrier in
accordance with its CPUC approved rules and regulations tariff and in compliance with
the terms of the Franchise; and
WHEREAS, the Franchise has expired and Crimson Pipeline wishes to enter into
a new franchise agreement with the City of Santa Monica; and
WHEREAS, before the City of Santa Monica can award a franchise, City Charter
Section 1601 requires the City Council of the City of Santa Monica to pass a resolution
declaring its intent to grant a franchise and to set a public hearing at which anyone may
appear and set forth any interest or objection,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. In accordance with City Charter Section 1601, the City Council of
the City of Santa Monica declares its intent to grant a franchise to Crimson California
Pipeline, L.P. for it to operate and maintain a 10 inch crude petroleum pipeline through
the City of Santa Monica for a period of 20 years.
SECTION 2. The terms and conditions of the franchise will be in accordance
with California Public Utilities Code Section 6201 et seq. and will be substantially similar
to Ordinance No. 1492 (CCS) and will set the franchise payment, the term, and the
rules and requirements under which the Crimson Pipeline franchise will be required to
operate. A copy of the draft proposed franchise is attached as Exhibit 1 to this
Resolution.
SECTION 3. The public hearing at which the City Council of the City of Santa
Monica shall consider the proposed franchise with Crimson Pipeline for first reading and
at which the City Council shall hear all interests and objections will take place on March
18, 2014 at 5:30 PM, or as shortly thereafter as the schedule permits, in the City
Council Chambers at 1685 Main Street, Santa Monica, California 90403.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth the same shall be in full force and effect. The City Clerk shall cause this
Resolution to be published once in the official newspaper with 15 days after its
adoption.
APPROVED AS TO FORM:
MARIA JONES MOUrJTRl
City Attorneyy j
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EXHIBIT 1
A FRANCHISE AGREEMENT BETWEEN THE CITY OF SANTA MONICA AND
CRIMSON CALIFORNIA PIPELINE, L.P. TO OPERATE, MAINTAIN, INSPECT,
REPAIR, REMOVE, REPLACE AND ABANDON AN EXISTING TEN (10) INCH
DIAMETER CRUDE PETROLEUM PIPELINE AND APPURTENANT FACILITIES IN
CERTAIN PUBLIC STREETS OF THE CITY OF SANTA MONICA
TABLE OF CONTENTS
Page
SECTION1. Definitions .................................................................................... ..............................1
SECTION 2. Grant of Franchise ........................................................................ ..............................2
SECTION 3. Surrender of Other Franchises ..................................................... ..............................4
SECTION 4. Rights Reserved to City ............................................................... ..............................4
SECTION 5. Term of Franchise ........................................................................ ..............................4
SECTION 6. Franchise Fee and Compensation to the City .............................. ..............................5
SECTION 7. Construction, Operation and Maintenance of Pipeline and Pipeline System . ...........
9
SECTION 8. Testing and Emergency Preparedness .......................................... ..............................8
SECTION9. Reporting ...................................................................................... ..............................9
SECTION 10. Inspection of Facilities and Records ......................................... .............................10
SECTION11. Repairs ...................................................................................... .............................10
SECTION 12. Changes Required by Public Improvements ............................. .............................12
SECTION 13. Restoration of Streets ................................................................ .............................13
SECTION14. Maps and Data .......................................................................... .............................13
SECTION15. Abandonment ............................................................................ .............................13
SECTION 16. Completion of Work ................................................................. .............................14
SECTION17. Insurance ................................................................................... .............................15
SECTION 18. Indemnification of City ............................................................. .............................15
SECTION19. Assignment ................................................................................ .............................16
SECTION 20. Receivership or Foreclosure ...................................................... .............................18
SECTION21. Waiver ....................................................................................... .............................19
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SECTION 22. Default . ...............................
SECTION 23. Cumulative Remedies........
SECTION 24. Faithful Performance Bond
SECTION 25. Notice .. ...............................
SECTION 26. Costs of Litigation ..............
SECTION 27. Counterparts .......................
SECTION 28. Captions for Convenience..
SECTION 29. Governing Law ..................
SECTION 30. Acceptance of Franchise....
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SECTION 1. Definitions.
(a) The word "Grantee" shall mean Crimson California Pipeline, L.P. ( "Crimson"), a
California limited partnership and a pipeline corporation within the meaning of California Public
Utilities Code § 228, to which the franchise is granted by this Ordinance as well as its lawful
successors or assigns.
(b) The word "City" shall mean the City 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, renew, repair, remove,
replace and abandon, as provided for in this Franchise Agreement, a ten (10) inch diameter
pipeline for collection, transportation or distribution of crude petroleum and its constituent
products, including ancillary water, wastewater, mud, steam and other liquid substances
normally and customarily used in the operation and maintenance of a crude petroleum pipeline,
together with all traps, manholes, conduits, valves, appliances, attachments, equipment, cathodic
protection devices, wires, cables and other appurtenances and service connections (collectively
"Pipeline System ") necessary and appropriate for operation of the Pipeline and Pipeline System
in, under, along and across certain public streets and public rights of way as described in Section
1(e) of this Franchise agreement;
(d) The word "franchise" shall mean those rights, privileges and obligations arising
from the Ordinance and grant of this Franchise to use a Pipeline and Pipeline System in those
streets and public rights of way set forth in Section 1(e) of this Franchise Agreement.
(e) The word "Pipeline" shall mean the ten (10) inch diameter crude petroleum
pipeline existing on the effective date of this Franchise, as more fully described in Exhibit "A",
located in City, 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.
SECTION 2. Grant of Franchise.
2.1. The City of Santa Monica grants a non - exclusive franchise to Crimson for the
term set forth in Section 5.1 below to use the Pipeline and Pipeline System for the transportation
of crude petroleum and its ancillary normal and customary constituent products, such as water,
wastewater, mud, as described in Grantee's tariff filed and as approved by the California Public
Utilities Commission, in, under, along and across the public streets, highways, and alleys, as
described in Section 1(e) above and in Exhibit "A" ( "Franchise "). Grantee may not increase the
length or the internal size of the Pipeline, in whole or in part, without applying for and being
granted permission to do so by amendment to this Franchise.
2.2. This Franchise is granted to Grantee, under and in accordance with the provisions
of the Franchise Act of 1937, California Public Utilities Code Section 6201 et seq. and the City's
City Charter and Municipal Code.
2.3. During the term of this Franchise, Grantee has the right to maintain, operate,
repair or replace the Pipeline, including the right, subject to the prior approval of the Director of
Public Works, to construct and maintain such elements of the Pipeline System as may be
necessary for the proper maintenance and operation of the Pipeline under the Franchise. The
Pipeline and the Pipeline System shall conform to any order of the Director of Public Works and
shall not interfere with the use of the City streets and public rights of way for travel. Grantee
shall have the right, subject to generally applicable ordinances, rules, regulations or fees, as are
now or may subsequently be in force, to make all necessary excavations for the construction and
repair of the Pipeline and the Pipeline System subject to the prior approval of the Director of
Public Works. Any approval may be conditioned by the Director of Public Works, including,
without limitation, the issuance to Grantee of applicable permits. The City expressly reserves the
right to impose and collect from Grantee, on a non - discriminatory basis, applicable fees for street
or sidewalk cutting and excavation permits or for any other activity to the extent those fees are
imposed generally on all applicants for similar permits within the City.
2.4. Grantee is neither granted nor conferred any privilege or exemption from any City
law, rule, regulation, custom or practice by this Franchise except those specifically prescribed in
this Franchise.
2.5. Any privilege granted Grantee under this Franchise is subordinate to any lawful
occupancy of the street or other public rights of way by City.
2.6. If any provision of this Franchise or any application of the Franchise to any
person or circumstance is held invalid in whole or in part by a court of competent jurisdiction,
the Franchise shall terminate immediately and Grantee shall remove the Pipeline and any
Pipeline System within ninety (90) days of the entry of judgment. No provision of this Franchise
is severable from any other provision.
2.7. The granting of this Franchise is expressly conditioned upon payment of all
Franchise and other fees due and owing the City from Grantee as of the effective date of this
Ordinance, including all fees due and owing under the terms of the 1989 Franchise, Ordinance
No. 1492 (CCS).
2.8. So far as is practicable, any pipes and appurtenances laid pursuant to this
Franchise will be located along the edge or shoulder of the streets or in the parking areas
adjacent to the streets so as not to unreasonably disturb the flow of traffic and where possible
will be laid in the unpaved portion of the street. All pipes, Pipelines and Pipeline Systems will
be located in conformity with the orders of the Director of Public Works.
SECTION 3. Surrender of Other Franchises
3.1. By accepting this Franchise, Grantee agrees that all other of its pipeline
franchises, including the 1989 Franchise, within the City are immediately surrendered and
terminated and that Grantee made all payments and satisfied all terms and obligations arising
under the 1989 Franchise and that those payments, terms and obligations were at all times lawful
and properly imposed by the City.
SECTION 4. Rights Reserved to City
4.1. The City reserves every right and power, which is not expressly relinquished by
the terms of this Franchise.
4.2. Neither in granting this Franchise nor in agreeing to any of its terms does the City
waive right or in any way relinquish any of its governmental rights, powers or prerogatives.
4.3. Nothing contained in this Franchise shall be construed so as to exempt the
Grantee from compliance with all ordinances of the City now in effect or which may be hereafter
adopted which are not inconsistent with the terms of this Franchise. The enumeration of any
specific rights reserved shall not be construed as exclusive, or as limiting the general reservation
or as limiting such rights as the City may now or hereafter have.
SECTION 5. Term of Franchise.
5.1. This Franchise shall be for a term of twenty (20) years from the adoption of this
Ordinance ( "effective date "). However, the Franchise may be terminated sooner by voluntary
surrender or abandonment by Grantee, or by breach or forfeiture for noncompliance with the
terms of this Franchise.
SECTION 6. Franchise Fee and Compensation to the City.
6.1. In consideration for the granting of this Franchise and to reimburse the City for its
administrative expenses in preparing and approving this Franchise, Grantee shall pay the City
Twenty Thousand Dollars ($20,000.00) within thirty (30) days of the effective date of this
Franchise.
6.2. As consideration for the Franchise hereby granted, the Grantee shall pay a
Franchise Fee to the City. Subject to the provisions of Section 6.8 below, the Franchise Fee shall
be calculated in accordance with the provisions of Exhibit "C" attached hereto and shall be paid
annually to the City in lawful money of the United States within sixty (60) days after the end of
each calendar year and a penalty at the rate of two percent (2 %) per month or fraction thereof
beyond the payment date shall be charged, but in no event shall said penalty exceed fifty percent
(50 %).
6.2.1. The applicable base rate shall be multiplied by the Consumer Price Index
(CPI -U), All Items for the Los Angeles- Riverside -Orange County areas, as published by the
United States Department of Labor, Bureau of Labor Statistics for the month of September
immediately preceding the month in which payment is due and payable, and divided by the
Consumer Price Index for June 30, 1989, which is declared to be 100.0. Under no circumstances
shall the multiplying factor be less than one.
6.2.2. If the United States Department of Labor, Bureau of Labor Statistics
discontinues the preparation or publication of a Consumer Price Index for the area, and if no
translation table prepared by the Department of Labor is available so as to make those statistics
which are then available applicable to the index of June 30, 1989, the City shall prescribe a rate
of payment which shall, in its judgment, vary from the rates specified in this Section in
approximate proportion as commodity consumer prices then current vary from commodity
consumer prices current in December 1988. On this point, the determination by the City shall be
final and conclusive.
6.2.3. If said Bureau revises the said Index, the parties hereto shall accept the
method of revision or conversion recommended by the said Bureau.
63. Franchise Fee payments shall be computed from the effective date of this
Franchise, to and including the date of either actual removal of the facilities or the effective date
of a properly approved abandonment "in place" authorized by the City, and until the Grantee
shall have fully complied with all the provisions of this Franchise and of all other applicable
provisions of law or ordinance relative to such abandonments. All such payments shall be made
payable to the City, and shall be supported by the Grantee's verified statement concerning the
computation thereof. In the event of installation or abandonment of facilities with the approval
of the City as elsewhere in this Franchise provided, or in the event of removal of such facilities
by the Grantee, the payments otherwise due to the City or occupancy of the streets by such
facilities shall be prorated for the calendar year in which such installation, removal or
abandonment occurs as of the end of the calendar month in which installed, removed or
abandoned.
6.4. The City shall have the right to inspect Grantee's pipeline records relating to its
annual report and to audit and recompute any and all amounts payable under this Franchise.
Costs of audit shall be borne by Grantee when audits result in an increase of more than five
percent of Grantee's annual payments due the City. Acceptance of any payment shall not be
construed as a release, waiver, acquiescence, or accord and satisfaction of any claim the City
may have for further or additional sums payable under this Ordinance or for the performance of
any other obligation hereunder.
6.5. The Franchise Fee provided for under the terms of this Franchise is solely for the
privilege granted by the Franchise and the Franchise Fee shall in no way limit any obligation of
Grantee to compensate City or any other person for any damage, claim, expense, or other loss
whatsoever.
6.6. Grantee shall pay to the City, on demand and no later than thirty (30) days
following receipt of any invoice or bill, the cost of all repairs to any street, public rights of way
or public property arising from or related to by any operation or omission of the Grantee under
this Franchise, as well as all permit or other fees.
6.7. Except as set forth in Section 6.2 above, any payment due from Grantee to City
under any provision of this Franchise which is not paid when due shall bear interest at the rate of
ten (10) percent, but the payment of such interest shall not excuse or cure any default by Grantee
under this Franchise. The payment of 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 or any other applicable law.
6.8. Notwithstanding the provisions of Section 6.2 above, the City has requested and
the Grantee has agreed to prepay the Franchise Fee for the entire twenty (20) year term of this
Franchise. Based on the net present value calculation set forth in Exhibit "D" attached hereto,
the net present value of the prepayment of the Franchise Fee would be One Hundred Forty -Eight
Thousand Seven Hundred Four Dollars and Seventy -One Cents ($148,704.71). City and Grantee
have agreed to round that net present value figure up to One Hundred Fifty Thousand Dollars
($150,000.00). Therefore, the prepaid amount of the Franchise Fee shall be One Hundred Fifty
Thousand Dollars ($150,000.00). The prepayment of the Franchise Fee shall be made within
thirty (30) days of the effective date of this Franchise.
6.9. The City and the Grantee each reserve the right to alter the Franchise Fee in the
event that California Public Utilities Code Section 6231.5 or other law permits a revised (higher
or lower) franchise fee to be charged or imposed, including if Section 6231.5 ceases to be
applicable to the Franchise. Any revised franchise fee so altered shall be due and payable within
thirty (30) days of one party's written notification to the other party of the change; provided,
however, in determining the revised franchise fee, the City and the Grantee shall take into
account and credit the Grantee's pre - payment of the Franchise Fee.
SECTION 7. Construction, Operation and Maintenance of Pipeline and Pipeline System.
7.1. The Pipeline and any Pipeline System laid, constructed or maintained under the
terms of this Franchise shall be installed, maintained, and inspected by the Grantee in a
satisfactory, safe, and workmanlike manner. The Pipeline and Pipeline System shall be of good
material, and in conformity with all ordinances, rules, or regulations now or hereafter adopted or
prescribed by any State or Federal law. All Pipeline and Pipeline Systems shall be designed,
manufactured, installed, constructed and inspected in accordance with applicable law.
7.2. Adequate protective facilities shall be provided for the Pipeline and Pipeline
Systems in accordance with applicable law so as to immediately locate any operating difficulty
or irregularity so as to minimize the risk to public health, safety and welfare. If, at any time
during the term of this Franchise, protective facilities on any Pipeline or Pipeline System are
found or determined to be inadequate by any State or Federal regulatory authority, Grantee shall
at its own expense promptly make all corrections required.
SECTION 8. Testing and Emergency Preparedness
8.1. During the term of the Franchise, the Pipeline and Pipeline Systems shall be
tested in accordance with the provisions of any State or Federal law and regulations, including as
may be required by the State Fire Marshal or any other State or Federal official. The City
reserves the right to require testing for any facility over which the City has lawful authority.
8.2. At all times during the term of this Franchise, the Grantee shall maintain on a
twenty -four (24) hour -a -day basis a fully - operational emergency response system, such as a
Supervisory Control and Data Acquisition (SCADA) or a similar System, designed for the
purpose of controlling and monitoring rates of flow, pressures and fluid characteristics. Grantee
shall provide adequate emergency equipment and properly trained emergency personnel so as to
immediately respond to any emergency, including being capable of stopping the flow of contents
of the Pipeline or Pipeline System.
8.3. Within ninety (90) days of the effective date, Grantee shall provide the City with
an emergency preparedness plan. Grantee shall obtain approval of the plan from the City's
Office of Emergency Management, and Grantee shall update its plan to the satisfaction of the
City.
SECTION 9. Reporting
9.1. The Grantee shall provide to the Director of Public Works annually on July 1 st of
each year a report verified under oath or penalty of perjury by a duly authorized officer of the
Grantee, which describes in full for the immediately preceding Franchise year the following
information:
(i) The length of lines prescribed in this Franchise;
(ii) The nominal internal diameter of such lines;
(iii) The method used to calculate the Franchise Fee, including the total
amount due to the City; and
(iv) Maps or suitable diagrams indicating the accurate "as- built" location,
depth, and size of the Pipeline and/or Pipeline System and contingency plans for any pipeline
emergencies.
The City reserves the right to revise and to amend the safety and reporting requirements
prescribed in this Franchise in conformity with all rules, or regulations now or hereafter adopted
or prescribed by any State or Federal law.
SECTION 10. Inspection of Facilities and Records
10.1. At all reasonable times, Grantee shall permit any duly authorized representative of
the City to examine all Pipeline or Pipeline System facilities and to examine and copy any and
all maps, books, accounts, papers and other records kept or maintained by Grantee or under its
control, which pertain to the Franchise or to its operations, affairs, transactions and facilities. If
any of the maps, books, accounts, papers or other records are not kept in the City, and if the City
determines that an examination of these is necessary or appropriate to the performance of any of
its duties, then all travel and any other related expenses necessarily incurred in making the
examination shall be paid by Grantee.
10.2. Grantee shall prepare and furnish to the City, in the form prescribed by the
Director of Public Works, such data and reports, with respect to its operations, affairs,
transactions, finances or facilities, as may be reasonably necessary or appropriate to the
performance of any of the duties of the City in connection with this Franchise.
10.3. Grantee shall maintain and make reasonably available to the City all records as
may be required by any regulatory authority, including the California Public Utilities
Commission, the California State Fire Marshal or any other Federal or State body or official.
SECTION 11. Repairs
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11. 1. Grantee shall promptly repair any damage to or leaks or breaks in the Pipeline or
Pipeline System from whatever cause. If any street or other public rights of way or property
shall be damaged by any accident, spill, discharge, release, escape, leak or break in the Pipeline
or Pipeline System or by reason of any cause arising from or related to in whole or in part the
acts or omissions of Grantee or to the operation or existence of the Pipeline or Pipeline System,
Grantee shall promptly repair, remediate and restore any damage arising from or related to the
accident, spill, discharge, release, escape, leak or break to the satisfaction of the Director of
Public Works.
11.2. In addition to any other notifications required bylaw, the City of Santa Monica
Fire Department shall immediately be notified in the event of any break in or accident to any
portion of the Pipeline or Pipeline System, as well as any spill, discharge, release, leak, or escape
of any petroleum, oil, gas, hydrocarbon, chemical, water, wastewater, mud or other product or
substance of any kind from the Pipeline or Pipeline System within the boundaries of the City or
if the discharge, release or escape occurs outside the boundaries of the City, it can reasonably be
expected to impact the City.
11.3. If any private property is damaged by any accident, spill, discharge, release,
escape, accident, leaks or breaks in the Pipeline or Pipeline System or from any cause arising in
whole or in part from the operation or existence of the Pipeline or Pipeline System or from any
act or omission of Grantee, Grantee shall pay all damages or compensation to which the owners
are entitled and Grantee shall repair its facilities to protect the damaged private property from
further damage to the extent permitted and in conformity with Federal, State or local law, rule,
regulation or order.
11.4. If Grantee, within ten (10) days after receipt of notice from the City, instructing it
to repair any damage, fails to commence work or to comply with the instructions, or otherwise
fails to diligently prosecute the work to completion, or to the satisfaction of the Director of
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Public Works, then the City may immediately do whatever work is necessary to carry out the
work at the cost and expense of Grantee, which cost and expense, by the acceptance of the
Franchise, Grantee agrees to pay upon demand. If the damage constitutes an immediate danger
to public health or safety, requiring the immediate repair, the City, without notice, may repair the
damage, and Grantee, by the acceptance of this Franchise, agrees to pay all cost and expense
upon demand.
11.5. Grantee shall reimburse the City for all direct and indirect expenses incurred by
the City in responding to any spill, discharge, release, escape or accident arising from the
operation or existence of the Pipeline or Pipeline System.
SECTION 12. Changes Required by Public Improvements
12.1. Grantee shall, at its sole expense, disconnect, relocate or remove the Pipeline or
Pipeline System, in whole or in part, when required by the Director of Public Works by reason of
any public improvement.
12.2. If the City in its reasonable discretion determines that the Pipeline or Pipeline
System endangers or threatens the public health, welfare or safety or interferes with or obstructs
the use of any street or other public rights of way, including any utility, the Grantee, at the
Grantee's sole expense, shall move, alter or relocate the Pipeline or Pipeline System in
conformity with the written notice of the Director of Public Works.
12.3. Nothing in this Franchise shall be construed to require the City to move, alter or
relocate any of its facilities for the convenience, accommodation or necessity of Grantee.
12.4. Except when not practicable, where notice shall be provided as the circumstances
require, Grantee shall be given not less than ninety (90) days written notice of any requirement
that the Grantee move, alter or relocate the Pipeline or Pipeline System. The notice shall specify
in reasonable detail the work to be done by the Grantee and shall specify the time that such work
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is to be accomplished. Upon failure of Grantee to promptly comply with such a request, the City
may perform the work after providing written notice to Grantee. Grantee shall reimburse the
City for the work within ten days after receipt of a statement of the City's expense. Grantee shall
hold harmless the City, its City Council, boards, commissions, officers, agents, employees,
assigns, and successors in interest from any liability that may arise or be related to any action of
the City under this Section.
SECTION 13. Restoration of Streets.
13.1. Grantee shall maintain, operate, replace or repair the Pipeline or Pipeline System
in compliance with the applicable provisions of the City's Municipal Code pertaining to street
and public right -of -way excavations and restoration, including any current or future generally
applicable policies, and other applicable laws (including Federal and State laws) pertaining to
street and public right of way excavations and restoration. All such work shall be conducted
with the least possible hindrance or interference to the use of streets and other public rights of
way. Grantee shall provide all necessary warning, safety and traffic control devices and plans as
are or may be required by the City or other authorities. Grantee shall restore the surface of City
streets and public rights of way to a condition that is as good and as serviceable as existed prior
to any work to the satisfaction of the Director of Public Works.
SECTION 14. Maps and Data
14.1. Within ninety (90) days following the date in which any Pipeline or Pipeline
System has been installed, removed or abandoned under the Franchise, the Grantee shall file a
map or maps with the Director of Public Works showing the accurate "as- built" location, depth,
and size of the Pipeline and/or Pipeline System so installed, removed or abandoned.
SECTION 15. Abandonment
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15.1. In the event the use of any Pipeline or Pipeline System is discontinued for a
continuous period of one year, Grantee shall promptly remove from the streets all facilities
involved, unless the Director of Public Works otherwise provides or permits in writing. If any
Pipeline or Pipeline System is maintained in a condition defined as Out -of- Service by the
California State Fire Marshall, for any amount of time, such time does not constitute permanent
discontinuance of the use of the facilities or a revocation, termination or abandonment of the
Franchise.
15.2. During the term of this Franchise, Grantee shall obtain permission from the
Director of Public Works to abandon any facilities. No Pipeline or Pipeline System shall be
abandoned in -place without the express written permission of the Director of Public Works, who
in his or her reasonable discretion may set the terms and conditions of the abandonment,
including the amount of payment to the City for the privilege of such an abandonment.
15.3. At least one hundred eighty (180) days prior to the expiration, revocation or
termination of this Franchise, the Grantee shall make a written application to the Director of
Public Works to remove or abandon the Pipeline or Pipeline Systems. The application shall
describe in detail how the removal or abandonment will occur. The Director of Public Works
shall approve, disapprove, modify or condition the removal or abandonment so as to best protect
the public health, welfare and safety.
SECTION 16. Completion of Work
16.1. If Grantee fails to complete any act or work as required, the City may take any
steps as are appropriate to complete the act or work. Grantee will be charged for all associated
costs and expenses. Within thirty (30) days of receipt of the City's invoice, Grantee shall either
pay the bill or detail in writing to the Director of Public Works why such bill is inappropriate. If
Grantee timely provides this statement to the City, the Director of Public Works shall consider
Grantee's statement, and shall notify Grantee in writing of the City's determination. If Grantee
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disagrees with the City's determination, Grantee may bring an action in court challenging that
decision no later than six (6) months from the date of the City's determination. No action may be
maintained concerning the City's determination unless Grantee first pays all amounts determined
by the City within ten (10) days of receipt of City's determination.
16.2. If the Grantee has not paid the City for such fees and expenses incurred by or
payable to the City, the City may take any and all reasonable enforcement actions, including, but
not limited to, ordering that the charge(s) be assessed against the property of the Grantee in the
City, that liens be imposed on said property, instituting collection proceedings, and instituting
franchise default proceedings.
16.3. For any removal, relocation or modification of the Pipeline or Pipeline System by
the City as provided for herein, the City shall, to the extent required by law, only conduct such
work with the prior approval of, and in coordination with, the California State Fire Marshal and
comply with Chapter 5.5 of Title 5, Division 1, Part 1, of the California Government Code (Elder
California Pipeline Safety Act of 1981), if applicable, and all other local, State and Federal laws.
SECTION 17. Insurance
17.1. Grantee at all times during the term of this Franchise shall maintain insurance for
all operations of Grantee relating to the operation of the Pipeline and the Pipeline System within
the City in the amounts and coverages specified and described in Exhibit `B."
SECTION 18. Indemnification of City
18.1. Grantee shall indemnify, defend 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, fees and expenses of any kind whatsoever, including
reasonable attorneys' fees ( "Claims "), directly or indirectly arising from or in any manner
connected or related to any act or omission arising from or connected or related to the Franchise,
15
the Pipeline or Pipeline System, or the transport of any hazardous substance or hazardous waste,
including but not limited to petroleum and crude oil, any of their fractions or constituent products
or by- products, regardless whether any act or omission complained of is authorized, allowed, or
prohibited by the Franchise; provided, however, the provisions of this indemnity shall not apply
to Claims arising as a result of the negligence or willful misconduct of the City. This indemnity
includes, but is not limited to any repair, cleanup or detoxification, or the preparation and
implementation of any removal, remediation, response, closure or other plan (regardless of
whether undertaken due to governmental action) concerning any facilities or equipment or the
effects of such facilities or equipment authorized by this Franchise, and any hazardous substance
or hazardous wastes, including petroleum and any of its fractions or constituent products as
defined in the Comprehensive Environmental Response, Compensation and Liability Act
[ "CERCLA "; 42 U.S.C. § 9601, et seq.] the Resource Conservation and Recovery Act [ "RCRA';
42 U.S.C. § 6901 et seq.] and California Health & Safety Code § 25280 et seq. This indemnity is
intended to supplement and not replace any other indemnity from any source. This indemnity is
also intended to operate as an agreement pursuant to Section 107(e) of CERCLA and California
Health & Safety Code Section 25364, to assure, protect, hold harmless and indemnify City from
liability.
18.2. Grantee shall indemnify, protect, defend, and hold harmless the City, its City
Council, officers, officials, employees, servants and agents against any and all claims, demands,
losses, costs, expenses, fees, penalties, damages, or liability of any kind or nature resulting from,
or arising with respect to, the award of the Franchise.
18.3. The indemnity provided for in 18.1 and 18.2 shall survive the termination of this
Franchise.
SECTION 19. Assignment
K.
19.1. Grantee shall not transfer, sell, hypothecate, sublet or assign the Franchise, nor
shall any of the rights or privileges therein be hypothecated, leased, assigned, sold or transferred,
either in whole or in part, nor shall title thereto, either legal or equitable, or any right, interest or
property therein, pass to or vest in any person, except the Grantee, either by act of the Grantee or
by operation of law, nor shall there be any change in control, as defined below, without the prior
consent of the City Council adopted by resolution.
19.2. Any sale, lease, assignment or transfer of this Franchise or the rights or privileges
granted by it, or any change in control of Grantee without the prior written consent of the City
Council first having been obtained, whether by operation of law or- otherwise, shall be null and
void.
19.3. The City shall not unreasonably withhold its consent to a Franchise transfer or a
change in control of Grantee. For the purpose of determining whether it shall consent to such
transfer, City may inquire into the qualifications of the prospective transferee or controlling
party, and Grantee shall assist City in any such inquiry. In seeking City's consent to any change
of ownership or change in control, Grantee shall have the responsibility of ensuring that
transferee completes an application in a form and substance reasonably satisfactory to City. An
application shall be submitted to City not less than ninety (90) days prior to the date of transfer.
The Grantee shall be required to establish that it is in material compliance with its Franchise.
The transferee shall be required to establish that it possesses the qualifications and financial and
technical capability to operate and maintain the Pipeline and Pipeline System and comply with
all Franchise requirements for the remainder of the term of the Franchise. If the City finds that
the legal, financial, character, technical and other public interest qualities of the applicant are
satisfactory, and that the proposed transferee has the capability to operate and maintain the
Pipeline and Pipeline System and comply with all Franchise requirements for the then remaining
term, the City shall consent to the transfer and assignment of the rights and obligations of such
Franchise. The City may condition the transfer to ensure the transferee is in material
17
compliance, and remains in material compliance with the Franchise. For purposes of this Section
19, a change in control of Grantee shall be deemed to be a transfer requiring the City's consent.
Nothing in this provision is intended to waive or contract away the City's police power.
19.4. Change in control means (i) any merger, consolidation or other reorganization of
Grantee in which Grantee, or an affiliate of Grantee, is not the surviving entity, (ii) any transfer
or change in ownership of fifty percent (50 %) or more of the capital stock, capital accounts,
equity interests or memberships, as the case may be, of Grantee, (iii) the acquisition of
management control by any owner or new owner of interests in Grantee that previously did not
control the management of Grantee, or (iv) the sale of fifty percent (50 %) or more of the market
value of the assets of Grantee.
19.5. The provisions of this Section shall not apply to Grantee's assignment of rights,
duties and obligations under the Franchise to any affiliate or subsidiary of Grantee. As used in
this Franchise, the term "affiliate" or "subsidiary" shall mean an entity controlling, controlled by
or under common control with the entity to which the term applies, whether by ownership,
contract or voting control. Franchisee and the entity to whom the rights are to be assigned shall
sign an assignment and assumption agreement whereby the transferee agrees to be bound by and
comply with the terms of this Franchise.
SECTION 20. Receivership or Foreclosure
20.1. Subject to applicable provisions of the Bankruptcy Code, the Franchise shall, at
the option of the City, cease and terminate one hundred twenty (120) days after the appointment
of a receiver or trustee to take over and conduct the business of the Grantee whether in a
receivership, reorganization, bankruptcy or other action or proceeding unless such receivership
or trusteeship shall have been vacated prior to the expiration of said one hundred twenty (120)
days, or unless:
18
(1) Such receiver or trustee shall have, within one hundred twenty (120) days
after his or her election or appointment, fully complied with all terms of the Franchise and
remedied all breaches of the Franchise or provided a plan for the remedy of such breaches which
is satisfactory to the City; and
(2) Such receiver or trustee shall, within said one hundred twenty (120) days,
execute an agreement duly approved by the court having jurisdiction, whereby such receiver or
trustee assumes and agrees to be bound by each and every term, provision and limitation of the
Franchise.
20.2. Upon the foreclosure or other judicial sale of all or a substantial part of a Pipeline
System, the Grantee shall notify the City Clerk of such fact, and such notification shall be treated
as a notification that a change in ownership of the Grantee has taken place and the provisions of
Section 19 above governing such changes shall apply.
SECTION 21. Waiver
No waiver of the breach of any of the covenants, agreements, restrictions, or conditions
of this Franchise by the City shall be construed to be a waiver of any such succeeding breach of
the same or other covenants, agreements, restrictions or conditions of this Franchise. No delay
or omission of the City in exercising the right, power or remedy herein provided in the event of
default shall be construed as a waiver thereof, or acquiescence therein, nor shall the acceptance
of any payments made in a manner or at a time other than is herein provided be construed as a
waiver of or variation in any of the terms of this Franchise.
SECTION 22. Default
22.1. In any event that the Grantee shall default in the performance of any of the terms,
covenants and conditions herein, the City shall give written notice to the Grantee of such default.
In the event that the Grantee does not cure such default within thirty (30)days after such notice is
19
sent or begin to work diligently to cure the default, Grantee agrees and acknowledges that the
City Council may hold a hearing, at which the Grantee shall have the right to appear and be
heard, and thereupon the City Council may determine, in its reasonable discretion, whether such
conditions are material and essential to the Franchise and whether the Grantee is in default with
respects thereto and may declare this Franchise suspended or forfeited through Grantee's default.
Notice of said hearing shall be given to the Grantee by certified written notice to the Grantee not
less than ten (10) days before said hearing.
22.2. If the City Council declares this Franchise forfeited, it may exclude the Grantee
from further occupancy or use of all City streets and other public rights of way authorized under
this Franchise. A forfeiture of the Franchise shall not of itself operate to release any bond filed
for the Franchise. Upon declaring a Franchise forfeited, the City Council may elect to take and
accept the bond as liquidated damages therefor and pursue any other legal remedy for any
damage, loss or injury suffered by the City as a result of such breach. After forfeiture, the bond
shall remain in full force and effect for a period of one (1) year unless exonerated by the City
Council. No bond shall be exonerated unless a release is obtained from the Director of Public
Works and is filed with the Clerk of the City. The release shall state whether all excavations
have been back filled, all obstructions removed, and whether the substratum or surface of City
streets or public rights of way occupied or used by Grantee have been placed in good and
serviceable condition. Any release shall not constitute a waiver of any right or remedy which the
City may have against the Grantee or any person, firm or corporation for any damage, loss or
injury suffered by the City as a result of any work or activity performed by the Grantee in the
exercise of this Franchise.
SECTION 23. Cumulative Remedies.
No provision made for the purpose of securing the enforcement of the terms and
conditions of this Franchise shall be deemed an exclusive remedy or to afford the exclusive
20
procedure, for the enforcement of the Franchise's terms and conditions. Any remedy or
procedure provided for in the Franchise, in addition to those provided by law or equity, shall be
deemed to be cumulative.
SECTION 24. Faithful Performance Bond
On or before the effective date of the Ordinance, the Grantee shall file and at all times
during the term of the Franchise keep on file with the City Clerk a corporate surety bond
approved by the City Attorney running to the City in the penal sum of seventy -five thousand
dollars ($75,000.00), with a surety licensed to do business in California and approved by the
Director of Public Works. The bond shall provide that Grantee shall well and truly observe,
fulfill and perform each condition of the Franchise and that in case of any breach of condition of
the bond the whole amount of the penal sum shall be deemed to be liquidated damages and shall
be recoverable from the principal and sureties of the bond. If the bond is not filed prior to the
effective date of the Ordinance, the award of the Franchise may be set aside and the Ordinance
may be repealed at any time prior to the filing of the bond and any money paid in consideration
for the award of Franchise shall be deemed forfeited. In the event that the bond, after it has been
so filed, shall at any time during the life of the Franchise become insufficient, in the reasonable
opinion of the City Council, the Grantee shall renew said bond within twenty (20) days after
written notice to do so is provided by the City.
SECTION 25. Notice.
All notices, demands, requests or approvals to be given under this Franchise 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:
21
City of Santa Monica
1685 Main Street
Santa Monica, California 90401
Attn: City Manager
with a copy to:
City of Santa Monica
1685 Main Street
Santa Monica, California 90401
Attn: Director of Public Works
and with a copy to:
City of Santa Monica
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:
Crimson California Pipeline, L.P.,
ATTN: April Harvey, Land Department
3780 Kilroy Airport Way, Suite 400
Long Beach, CA 90806
with a copy to:
Cox, Castle & Nicholson LLP
2049 Century Park East, Suite 2800
Los Angeles, CA 90067
Attn: Ronald I. Silverman, Esq.
(or such other address as may from time to time be furnished in writing by one party to the other
and depositing the notice in the United States mail, postage prepaid.)
When the service of any such notice is made by mail, the time of such notice will begin
with and run from the date of the deposit of the notice in the United States mail.
SECTION 26. 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
22
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.
SECTION 27. Counterparts.
This Franchise may be executed in several counterparts, each of which is an original, and
all of which together constitute but one and the same document.
SECTION 28. 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 amplify the terms and provisions hereof.
SECTION 29. Governing Law.
This Franchise has been made and shall be constructed and interpreted in accordance
with the laws of the State of California.
SECTION 30. 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 or Pipeline System, including the Shell
Pipeline, shall immediately terminate. By accepting this Franchise, Grantee expressly
acknowledges that it complied with each of the terms of the 1989 Franchise through the date of
acceptance of this Franchise and that all provisions of the 1989 Franchise and this Franchise
comply with applicable law.
23
Exhibit A
I J 1:
i7 i I I h
Exhibit A- I
Legend:
/VIO' CrInmn Pip U110
Exhibit B
Insurance Requirements
Grantee shall procure and maintain for the duration of the Franchise insurance against claims for
injuries to persons or damages to property that may arise from or in connection with the
operation, use, maintenance or any other privilege exercised under the Franchise:
Minimum Scope/Limits of Insurance
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01
covering GCL on an "occurrence" basis, including products - completed operations and
personal and advertising injury, with limits of no less than $1,000,000 per occurrence.
2. Excess or Umbrella Liability Insurance at least as broad as specified above for the CGL
coverage. Such policy or policies shall include as insureds those covered by the
underlying CGL policy, including additional insureds. The insurance shall be maintained
in an amount not less than $9,000,000 per occurrence.
3. Pollution Legal Liability and/or Asbestos Pollution Legal Liability and /or Errors &
Omissions: Insurance appropriate to the work being performed, with limits of no less than
$35,000,000 per claim or occurrence.
If the Grantee maintains higher limits than the minimums shown above, the City of Santa
Monica requires and shall be entitled to coverage for the higher limits maintained by the Grantee.
Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:
a. Additional Insured Status (all policies): The City of Santa Monica, its officers,
officials, employees and volunteers are to be covered as additional insureds on the
CGL, Umbrella and Pollution policies.
b. Primary Coverage (all policies): For any claims related to this contract, the
Grantee's insurance shall be primary as respects the City of Santa Monica, its
officers, officials, employees and volunteers. Any insurance or self - insurance
maintained by the City of Santa Monica, its officers, officials, employees or
volunteers shall be in excess of the Grantee's insurance and shall not contribute
with it.
C. Notice of Cancellation (all policies): Each insurance policy required herein shall
state that coverage shall not be cancelled, except after 30 days prior written notice
(10 days for non - payment) has been given to the City of Santa Monica.
Exhibit B -1
d. Waiver of Subrogation (all policies): Grantee hereby grants to the City of Santa
Monica a waiver of any right of subrogation which any insurer of said Grantee
may acquire against the City of Santa Monica by virtue of payment of any loss.
Grantee agrees to obtain any endorsement that may be necessary to effect this
waiver of subrogation, but this provision applies regardless of whether or not the
City of Santa Monica has received the a waiver of subrogation endorsement from
the insurer.
Deductibles and Self- Insured Retentions
Any deductibles or self - insured retentions must be declared to and approved by the City of Santa
Monica. The City of Santa Monica may require the Grantee to reduce or eliminate the
deductible or retention applicable to the contracted work or provide satisfactory proof of ability
to pay losses and related investigations, claim administration, and defense expenses within the
retention.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best rating of no less than A:VII,
unless otherwise acceptable to the City of Santa Monica.
Claims Made Policies
1. If the Pollution Legal Liability and /or Asbestos Legal Liability and/or Errors &
Omissions policy provides "claims made" coverage:
a. The Retroactive Date must be shown, and must be before the date of this contract
or the start of work.
b. The insurance must be maintained and evidence of insurance must be provided for
at least 5 years after completion of contract work.
C. If the policy is cancelled or not renewed, and not replaced with another "claims
made" policy form with a Retroactive Date prior to the effective contract date, the
Grantee must purchase "extended reporting" coverage for a minimum of 5 years
after completion of contract work.
d. A copy of the claims reporting requirements must be submitted to the City of
Santa Monica for review.
Verification of Coverage
Grantee shall furnish the City of Santa Monica with original certificates and amendatory
endorsements or copies of the applicable policy language providing the insurance coverage
required herein. All certificates and endorsements are to be received and approved by the City of
Santa Monica before work commences. However, failure to obtain required documents prior to
the work beginning shall not waive the Grantee's obligation to provide them. The City of Santa
Exhibit B -2
Monica reserves the right to require complete, certified copies of all required insurance policies,
including the endorsements required herein, at any time.
Exhibit B -3
Exhibit C
Franchise Fee Calculations
The length of pipe expressed in feet located within She city, (rounded to the nearest foot, shall be
multiplied by the applicable CPUC (California Public Utilities Code) base rate (see table 2
below). Under the CPUC the base rate is adjusted based on CPI (Consumer Price Index) series
ID CL URA421 SAO (see table 1 below):
user Price Index - All Urban Consumers
at Data Value
',. CUURA421SAO,CUUSA421 SAO
asonally Adjusted
'',Los Angeles- Riverside - Orange County, CA
All hems .
!1982 -84 =100
lo,
j 1989 to 2012
1989 1 124.61 125.5 126.21 127.2 128.3' 128.7', 129.01 128.9; 130.11 130.0,
! 1990 1! 132.11 133.6: 134.5 134.2 134.6 135.0 135.6': 136.3 137.7. 138.71
11991 '', 140.0 139.9', 1397 140.7; 1408 140.8 141.5 141.7, 142.6, 142.9"
11992 144.3 144.9'., 1455; 145.8' 1460 1461 . 146.7 146.9 147.4; 1484!
1993 149.2 150.0 - 149.8. 149.9 150.1 1493: 149.8'' 149.9 150.21 150.9:
11994 152.2 152.2': 152.5 152.0: 151.4 151.3 1513, 1520 152.71 153.4',
:,1995 154.3. 154.5 154.6 154.7 155.1; 154.8' 154.5 154.6'. 155.2,:
!.1996 155.7 156.2 157.3 157.7 157.5 156.7 157.6 157.3 158.2: 158.8
1.1997 159.1, 159.21 159.8 159.9,; 159.5 159.4 159.5' 159.7 160.5 161.11 ,
1998 161.0 1611; 161.4 161.8 162.3, 162.2. 162.61 163.2
'.. 1999 164.2 164 61 165.0 166.6'. 166 2 165.4'. 165.8 166.3 167.21 167.2:.
'.2000 167.9 169.3; 170.7 170.61 171.1 171.0 171.7; 172.2 '173.3,
2001 174.2 1754'. 1762 176.6! 177.5 178.9' 178.3 : 178.4 178.8! 178.3
;2002 1 178.9 180.1! 181.1 182.2: 182.6 181.9 182.2 183.0., 183.4 183.71
-2003 185.2 1865'. 1882 187.6' 1864, 186.3., 186.3 186.9 188.2, 187.8'1
12004 188.5 190.1 191.5 191.9'. 193.3 193.7; 193.4; 193.1 194.5, 196.3'
2005 1 195.4 197.4 r 199.2 201.1 201.5 200.7; 201.4 203.1'; 205.81, 206.9
;2006 206.0 207.5 208.5 210.5 212.4 211.11 211.4. 211.9. 212.9, 211 A,,
:2007 1 212.584 214.760., 216.500 217.845 218.596 217.273, 217.454: 217.330,. 217.697', 218.696, 21
2008 220.918 221.431; 223.606 224 6251 226.651, 229. 033, 229 8861 228.484. 227.449, 226.159,
2009 '., 220.719 221.439 221.376 221.693 222.522 223.906, 224.0101 224.507.: 225.226 225.264', 22
2010 ', 224.610, 224.620 225.483 225.916, 226.438 225.877; 225. 9911 226.373, 226.048, 22
1, 2011 228.652 229.729 232.241 233. 319. 233.367 232.328 : 231.303', 231.833 233.022'1, 233.0491 2E
12012 233. 441 234. 537!236.941 236.866'237032 236.025 235.776 237.222 23B.1041
Exhibit C -1
151.E
152.E
154.4
158.4
160.7
163.4
167.1
173.;
178.1
184.0
187.1
196.:
205.E
211.1
Dec ',Annual, HALF, HALF2
139.2''. 135.9, 134.0: 137.7!
143.1'', 141.4' 140.3 142.61,
148 2 146.5 145.5'. 147.6
151.9 150.3 149.8 150.7,
153.4, 152.3 151.9: 152.7:
154.6', 154.6 154.7 154.6
158.3', 157.5 156.9 158.1;
161.21 160.0 159.5 160.5
163.5 162.3 1616 1629;
167.3'. 166.1 165.3 166.8 i
173.51 171.6. 170.1 173.0 ,
73 0i
177.1 177.3 176.5'. 178.2
183.7; 182.2 181.1 183.3
187.0, 187.0 186.7, 187.2'.
195.2; 193.2, 191.5. 194.9'.
203.91 201.8 199.2; 204.5',
210.6. 209.3! 211.6.
9.373 217.338 216.260.! 218.416:
9.620: 225.008 224.377'225.638,
!3.643'', 223.219, 221.943: 224.495'
!6.639 225.894..225.491 226.298'
CPUC 1989 Table
Pipe size (internal
Base rate
diameter in inches)
per lineal foot
0 -4
$0.088
6
0.132
8
0.176
10
0.220
12
0.264
14
0.308
16
0.352
18
0.396
20
0.440
22
0.484
24
0.528
26
0.572
28
0.616
30
0.660
Table 2
Formula for Fee Calculation:
CPI Adjustment = Current Year CPI / Original Year (June 30, 1989) CPI (from table 1).
Payment Amount = Linear Feet of Pipe x CPUC Base Rate (from table 2) x CPT
Adjustment
Calculation for 2012 for 20,612 feet of 10" pipe:
CPI Adjustment= 238.104 / 128.7 = 1.85
Payment Amount = 20,6121f x $0.220 x 1.85 = $8,389.08
Calculation for 2013 for 20,612 feet of 10" pipe:
CPT Adjustment = 239.742 / 128.7 = 1.86
Payment Amount = 20,612 x $0.220 x 1.86 = $8,434.43
Exhibit C -2
Adopted and approved this 25th day of February, 2014.
gb
O'Connor, Mayor
I, Sarah P. Gorman, City Clerk of the Cify of Santa Monica, do hereby certify that
the foregoing Resolution No. 10801 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 25th day of February, 2014, by the following vote:
AYES: Councilmembers: Davis, Holbrook, McKeown, Vazquez, Winterer
Mayor Pro Tern O'Day, Mayor O'Connor
NOES: Councilmember: None
ABSENT: Councilmember: None
ATTEST:
n,
cy v a
Sarah P. Gorman, City Clerk