Loading...
R-0 e e .. ORDINANCE NUMBER 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 CERTAIN PUBLIC STREETS OF THE CITY OF SANTA MONICA THE CITY COUNCIL OF THE CITY OF SANTA MONICA ORDAINS AS FOLLOWS: SECTION 1. Interpretation of Franchise. (a) The word "Grantee" shall mean the Shell California Pipeline Company, a California corporation and a pipeline corporation within the meaning of California Publ1C Utilities Code ~ 228, to Wh1Ch the franchise is granted by this Ordinance as well as its lawful successors or ass1gns. (b) The word IICityll 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 1S now conducted under the statutes of the State af 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 therew1th and necessary and convenient for operation of the pipeline 1n, under~ along and across certain publ1C streets (here1nafter collectively referred to as "street" or "streets") located 1n C1ty, 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-th1rd Street; thence on Twenty-th1rd Street to Dewey Street; thence on Dewey Street to the southeast boundary of City. PDT8911703 - 0001.0.0 e e 2 (d) The word IIfranchlse" or "franchise property" shall mean this franchise to use a plpe1ine system ln those streets set forth in subsection (c) of this Sectlon. (e) The word "plpellne" shall mean the existing pipeline system lncluding 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 Ordinance to continue to use the pipe- line for the use of transporting petroleum~ as defined in Grantee's Callfornia P.U.C. Tariff No.1 effective September 16, 1988~ in those streets contalned in Section 1(c} is hereby granted to Grantee pursuant to Section 1600, Article XVI of the Santa Monica Municipal City Charter. SECTION 3. Term of Franchise. ThlS franchise shall be for a term of 20 years from the effectlve date of thlS franchise, however, said franchise may be sooner terminated by voluntary surrender or abandonment by Grantee, or by forfeiture for noncompliance 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 prlor to the end of the inltial 20 year term of this franchise. The parties shall commence negotiations on such fee upon notification from Grantee to City, WhlCh notice shall be given no sooner than eighteen (18) months nor later than twelve (12) months prior to expiratlon of the inltial term. PDT8911703 - 0002.0.0 e e 3 SECTION 4. Compensatlon to the Clty. (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 anniversary of this franchise. (b) The compensatlon 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 franch'se~ and each subsequent year thereafter during the term of this franchlse. The amount of increase shall be computed pursuant to the Producer Prlce 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 Statlstics (1Index"), 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 Index") has increased over the Beginnlng Index~ the franchlse fee for the followlng year (until the next adjustment) shall be set by multiplying the franchise fee set forth in Sectlon 4(a) by a fractlon, the numerator of which lS the Extension Index and the denominator of which is the Beginning Index. In no case shall thlS increased compensation be less than the franchise fee set forth in Section 4(a). If the Index is dlscontinued 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 e 4 result as would be obtalned lf the Index had not been discontinued or revised. (c) The franchlse fee set out in this sectlon shall in no way limit Grantee's obllgatlon to compensate City or any private cltizen for any damage, clalm, expense, or loss whatsoever as set forth in this franchlse. (d) Grantee shall pay to the Clty, on demand, the cost of all repairs to public property made necessary by any operatlon of the Grantee under this franchise. (e) Any payment due from Grantee to City under any provision of thlS franchlse 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 cumulatlve and is in addition to and shall not diminlsh or represent a Substltute for any or all of City's rights or remedles under any other provislon 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 envlronmentally acceptable gas or other material and cap the plpeline. Grantee shall not owe the Clty any compensation for the privilege of said abandonment. PDT8911703 - 0004.0.0 e e 5 SECTION 6. Insurance. Grantee at all tlmes during the term of this franchise shall malntain liabi1lty insurance in an amount not less than $50,000,000 to cover any claim, expense, or loss arising out of the operation, use, malntenance or other privilege exercised under this franchise, lnc1uding Grantee's contractual liability to indemnify Clty. The City, its Clty 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 policy of insurance shall contain the following prOVl- 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 POllCY if not named as such additlona1 lnsured. (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. (c) The provislons of the policy will not be changed, suspended, cancelled or otherwise terminated as to the interest of an additional insured named her~in without first delivering to City twenty (20) days notice of such intentlon. (d) Grantee shall furnish to City a Certlficate of Insurance showlng insurance as herein required. PDT8911703 - 0005.0.0 e e 6 SECTION 7. Maintenance and Repalr. (a) Grantee shall mainta1n the p1peline 1n a good, workerlike manner and in conformity wlth all applicable and lawful federal, state and local rules and regulatlons 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 cltizens 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 travel, and as soon as such work is completed, all portions of the streets WhlCh 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 Clty, and any damage or injury suffered by any person by reason of any excavation or obstruction being lmproperly 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, lmmediate1y prior to said opening, and does by thlS franchise, guarantee that the work of restoration shall be good against all faulty workmanship and materials and shall, for a period of one (1) year thereafter, maintain all such street surfaces in as good condltion as other portions of said street, not disturbed by said opening. (d) Grantee shall make such deposlts of money or shall file such bonds wlth the City as may be requlred to insure satlsfaction and completion of all constructlon activity 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 regulatlons. SECTION 9. Pipeline Accidents. If any portion of any street shall be damaged by reason of breaks or leaks in any pipe or conduit constructed under this franchise, Grantee shall, at ltS own expense, repair any such damage and put such street in as good conditlon as it was in before such break or leak, to the reason- able satlsfaction of the City. SECTION 10. Indemnification of City. (a) Grantee shall indemnlfy 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, lncluding reasonable attorneys I fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner connected to the actlvities or work conducted pursuant to the franchise. (b) Grantee ~hall 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 ln 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 clalms or losses what- soever, includlng reasonable attorneys' fees, accrulng or resulting to any person, flrm or corporation for damage, lnJury or death arislng out of Grantee's operations. SECTION 11. Relocatlon 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, hlghway, alley or other publlC improvement. SECTION 12. City.s Reserved Rlghts. {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 herel" specifled or elsewhere any identical, slmilar, or other type of franchlse to any person, flrm or corporatlon other than Grantee. (b) The City reserves the right to lmprove any highway, street, alley, or other public place or portion thereof over and within which thlS 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 Clty and any political subdivision or district within the City, the rlght to construct, reconstruct, lnstall, repair and maintain in any such highway, street, alley or other publlC place or portion thereof, any public improvement. PDT8911703 - 0008.0.0 e e 9 (c) The Clty reserves the rlght to give the Grantee any d1rections for the maintenance, construction, and repair of the pipeline as may be reasonably necessary to avoid sewers, water pipes, and conduits in other structures lawfully placed 1n or under the streets; and before the work of maintenance, construction or repairs of the pipellne is commenced, the Grantee shall f,le with the City Engineer plans showing the location thereof, which shall be subJect to the approval of the City Engineer. (d) Nothing herein shall be deemed to make the City or any offlcer or employee of the Clty responsible or liable to said Grantee by reason of the approval of plans for the maintenance, construction and repair of the pipeline. The City, by grant1ng this franchise, does not warrant the accuracy of such approval or information as suppl1ed or given to the Grantee. SECTION 13. Prohibltion Agalnst Transfer. Grantee shall not assign, hypothecate or transfer this franchise or any lnterest therein directly or indirectly, by operation of law or otherwise without the prior written consent of the City, said consent to not be unreasonably withheld. Grantee may however assign this franchise to any subsidiary~ parent or affillate company without obtaining the consent of City. SECTION 14. Condemnation. Notwithstanding anything to the contrary contained herein, this Ordinance shall not in any way affect the right, under law, of either party to commence eminent domain proceedings at any time. 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 thlS franchlse or conditlons thereof unless due to a cause beyond Grantee1s control and shall not withl" thlrty (30) days after written demand for compllance, begin the work of compliance, or after havlng such beginning, shall not prosecute the same wlth due dlligence to completion, then the City may declare this franchlse and all rights and privileges forfeited and upon written notice to Grantee, this franchise shall be void and the rights of the Grantee shall 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 terms 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 conditlons, but the remedies and procedures herein provided, ln 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 glven under this franchlse shall be glven in writing and conclusively shall be deemed served when dellvered personally or when received in the United States Mall, postage prepaid, registered or certified, addressed as herelnafter provlded. All notlces, demands, requests or approvals from Grantee to City shall be addressed to City at: Santa Monica Clty Hall 1685 Main Street Santa Monlca, 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 thlS franchise, the pr~vailing party shall be entltled 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 1n several counterparts, each of which 1S an original, and all of which together constitute but one and the same document. SECTION 21. Captions for Convenience. The captlons herein are for convenience and reference only and are not a part of thlS franchise and do not ln any way limit, define or amplify the terms and provisions hereof. SECTION 22. Governlng Law. This franchlse has been made and shall be constructed and interpreted in accordance with the laws of the State of California. SECTION 23. Acceptance of Franchlse. 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 franchlse 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 Clty shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be PDT8911703 - 0012.0.0 - e ~ published once in the official newspaper wlthin 15 days after its adoptlon. This Ordlnance shall become effectlve 30 days from its adoption. IN WITNESS WHEREOF the parties hereto have executed this Ordlnance on this day of , 1989. Approved as to form: City of Santa Monlca ROBERT M. MYERS Clty Attorney Shell California Pipellne Company PDT8911703 - 0013.0.0 13