HomeMy WebLinkAboutORD FOR ADOPTION 12-21-87TO:
FROM:
SUBJECT:
WILLIAM HUSTON, CITY MANAGER
PUBLIX'WORKS DEPARTMENT/ENGINEERING DIVISION
PROPOSED FRANCHISE AGREEMENT TO SAN DIEGO PIPELINE COMPANY
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RECOMMENDATION:
That the Tustin City Council at their meeting of December 21, 1987
introduce the attached ordinance granting a non-exclusive franchise to
San Diego Pipeline Company to construct, maintain and operate
pipelines within certain public roads, streets and ways of the City of
Tustin.
BACKGROUND:
In February 1987 the San Diego Pipeline Company (SDPC) requested the
City grant them a franchise to install, operate, and maintain two
pipelines within certain public roadways within the City of Tustin.
SDPC has an existing 10-inch pipeline facility currently located
within an easement which was previously a part of the recently
abandoned Atchison Topeka and Santa Fe Railroad right-of-way.
In April 1987, the City Council reviewed this request and directed
Staff to initiate the franchise agreement process inclusive of the
preparation of an Environmental Impact Report to identify any
potential environmental impacts associated with the pipeline project
as proposed by SDPC.
The Draft EIR has been completed and a public hearing has been held by
the Tustin Planning Commission on October 26, 1987 to receive public
input. The closing date for written comments/input from various
agencies and the general public was November 20, 1987.
On December 7, 1987, The City Council adopted Resolution No. 87--144,
declaring its intention to grant a non-exclusive franchise to San
Diego Pipeline Company to construct, maintain and operate pipelines
within certain public roads, streets and ways of the City of Tustin.
The remaining actions to complete both the environmental certification
process and the franchise agreement process includes the following:
City Council Certification of final
EIR 12/21/87
City Council introduction of Ordinance
granting franchise by first
reading 12/_21/87
Proposed Franchise Agreement to San Diego Pipeline Company
December 15, 1987
P~age 2
City Council holds public hearing for
granting of franchise 1/4/88
If deemed appropriate after said hearing,
City Council adopts the ordinance granting
franchise by second reading 1/4/88
Ordinance becomes effective 30 Days
after adoption 2/03/88
~ISCUSSION:
The attached ordinance has been prepared by the City Attorneys office
and reviewed/approved by the Legal Counsel for the San Diego Pipeline
Company, and provides~ for the granting of a non-exclusive franchise to
San Diego Pipeline Company to construct, maintain and operate
pipelines within certain public roads, streets .and ways of the City of
Tustin.
The public hearing for the granting of said franchise has been set at
7:00 P.M. in the Council Chambers of the City of Tustin, 300
Centennial Way by the adoption of the previously mentioned City
Council Resolution No. 87-144.
Bob Ledendecker
Director of Public Works/City Engineer
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1 ORDINANCE NO. _999
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2 AN ORDINANCe. OF THE CITY COUNCIL OF' T~E CITY
OF TUSTIN, CALIPOKNIA GRANTING A FRANCHIsR TO
3 SAN DIEGO PIPEr. INE COMPANY TO CONSTRUCT,
MAINTAIN AND OPERATE PIPELINES WITHIN CERTAIN
4 PUBLIC ROADS, STREETS AND WAYS OF THE CITY OF
TUSTIN, CALIFORNIA
5
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6 WHEREAS, San Diego Pipeline Company {"SDPC"), a Call~ornia
public utility under Public Utilities Code Section 216(a), has
7 applied to the City of Tustin ("City") for the right to construct,
maintain and operate one 10 inch and one 16 inch pipeline along a
8 route within the City to transmit oil; and
9 WSEREAS, City is authorized to grant a franchise upon the
public streets, ways, alleys and places within the City for, among
10 other purposes, transmitting and distributing oil pursuant to Sec- tions 6201, e__%t s_~_q, of the Public Utilities Code of the State of
11 California (the Franchise Act of 1937); and
12 WHEREAS, the City Council of City adopted a Resolution of
Intent to grant the franchise and held a hearing on
113 _ . , 1988, for the purpose of hearing objections
114 to th~ granting of the franchise; and
WHEREAS, the City Council finds and determines that it is in
15 the best interest and welfare of the City to grant the franchise
upon the terms and conditions .hereinafter set forth in this Ordi-
16 nance.
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NOW, THEREFORE, THE CITY COUNCIL~OP THE CITY OF-TUSTIN DOES
ORDAIN AS POLLOWS:
Section ~: ~ Grant, of Franch!~e
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The City grants to SDPC, hereafter sometimes referred to as
2'0' "Franchisee", the nob-exclusive right, privilege and franchise to
construct, maintain, .inspect, operate, protect, repair and replace
211 a 10 inch pipeline and a 16 inch pipeline, including control fa-
cilities and other appurtenances and any facilities necessary for
22 cathodic protection thereof, for the transportation of refined
petroleum products in, under, along, over and across the public
23 streets, roads, highways, alleys and other public ways described in
Exhibit "A"
, attached hereto and incorporated herein by this
2~ reference.
215 Sec_t_ion ;2.. Term of Prancb!_se
~6 This franchise shall be for a period of thirty (30) years
27 from and after the effective date of this Ordinance.
Section
A. a_e_asonabl e Regulatio_n
City reserves the right to enforce reasonable regulations
concerning the construction and 'maintenance of Franchisee's facili-
4 ties located in, under, along, over and across public streets,
roads: highways, alleys, and other public ways and the placement of
5 such facilities, including the appropriate depth of the pipelines,
subject to valid and applicable federal and state laws and regula-
6 tions. {
7 B. P e r_.f_0_r man c e_Bg.n~d
8 Franchisee shall, concurrent with the filing of its written
acceptance of franchise, file with the City Clerk, and at all times
9 thereafter maintain in full force and effect for the entire term of
the franchise, at its expense, a faithful performance bond executed
10 by a surety company approved by the City Attorney in the amount of
One Hundred Thousand Dollars ($100,000.00), renewable annually, and
11 conditioned on the faithful performance by Franchisee of all the
terms, conditions and covenants contained in the franchise. If
12 Franchisee fails to comply with any one or more of the provisions
of the franchise, there shall be recoverable jointly and severally
13 from the principal and surety of .such bond any damages or losses
suffered by City as a result thereof. Such bond shall provide that
14 thirty (30) days prior written notice of cancellation, 'material
change, or intention not to renew such bond be given by the surety
15 company to City. '
16 Neither the provisions of any bond accepted by City pursuant
hereto nor any damages recovered by City thereunder shall be con-
17 strued to excuse faithful performance by Franchisee or limit the
liability of Franchisee under the franchise or for damages, either
18 to the full amount of the bond or otherwise, or preclude exercise
of any other right or remedy given to City-by law, whether exer-
19 cised concurrently' o7 subsequently.
20 C. Indemnity
21 Franchisee shall indemnify, hold harmless and defend City,
its boards, commissions, officers, and employees, acting pursuant
22 to City authority within the scope of their employment, against any
and all loss, damage, or liability for injury to or death of any
23 person or any damage to any property caused by Franchisee, its of-
ficers, agents, or employees, in the construction, operation, or
24 maintenance of the pipelines, or arising out of the exercise of any
right or privilege under the franchise.
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D. Co_mpr_ehen_sive L_i_a_bility~ Insuranc~
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At all times during the term of the franchise Franchisee
27 will, at its own cost and expense, maintain in full' force and
effect a general comprehensive liability insurance with an insur-
28 ance company approved by the City Attorney. The coverage repre-
'87 12/16 12:02 ~ 714 8~5 7787 ROURKE WOODRUFF
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sented by Such policy or policies shall be for the protection, of
City, members of its boards and commissions, and its officers and
employees acting pursuant to City authority and within the scope of
their employment against liability for loss or damage for bodily
injury, death, and property damage occasioned by the activities of
Franchisee under the franchise. Minimum liability limits under the
policy or policies are to be One Million Dollars ($1,000,000.00)
for personal injury or death of' any one person and One Million
Dollars ($1,000,000.00) for personal injury or death of two or more
persons, in any one occurrence, and Five Hundred Thousand Dollars
($500,000.00) for damage to property resulting from any one occur-
rence.
The policies mentioned in the foregoing paragraph shall each
contain a provision that the City be. named an additional insured
and a written notice of any cancellation or reduction in coverage
of the policies shall be furnished by the insurance company to City
thirty (30) days in advance of the effective date hereof.
E Limitation of F_r.a.nchise '
No privilege or exemption is granted or conferred upon
Franchisee by the franchise except those specifically prescribed
herein. Any privilege claimed under the franch'ise by Franchisee in
any place described in Exhibit ,_A" shall be subordinate to any
occupancy of same by City and to prior lawful occupancy of same by
any other public or private entity or person.
F. Inst.al_l_ation and 'Mainten. anc.~
Any pipeline laid, located or maintained pursuant to this
franchise shall be so placed and maintained as not to interfere
with the use of any such public ways by the traveling public to any
greater extent than is reasonably necessary; and in laying said
pipeline or pipelines the Franchisee shall fill the trench and
leave the surface of said public ways in as good condition as it
was prior to the excavation for said pipelines and in accordance
with City specifications and standards. Franchisee shall comply
with federal, state and City laws and regulations applicable there-
to.
G. City ImD_rovement. or. Repairs in Public. Ways
City reserves the right to improve, widen, vacate, or re-
locate any such public ways or portion thereof, over and within
which this franchise is granted, including the widening, change of
grade, construction or reconstruction of such public ways or por-
tion thereof. Upon reasonable written notice given by City to
Franchisee that work is to be done pursuant to the right reserved
herein, Franchisee shall, at its expense, do all things reasonably
necessary to protect, remove or relocate its property as required
in order to accommodate such work. All such things to be done and
work to be performed by Franchisee shall be at the sole cost and
expense of the Franchisee. Any damage done directly or indirectly
to any public ways or public improvement by the Franchisee, in
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exercising'directly or indirectly any right, power or privilege
under this' franchise, or in performing any duty under or pursuant
to the provisions of this franchise~, shall be promptly repalred by
Franchisee at its sole cost and expensew to the reasonable satis-
faction of City. Franchisee shall pay to City on demand the cost
of all..repairs to public property made necessary by any operations
of Franchisee under the franchise.
H. Other Utilities
Franchisee shall, in the installation, maintenance, repair,
replacement or reconstruction of its facilities authorized here-
under, cooperate and coordinate with all other utilities in
determining the location of and protecting and supporting their
facilities existing at the time of .installation, replacement or
reconstruction of its facilities in the public rights of way
described in Exhibit "A" and shall bear the entire cost of any
necessary relocation, repair or reconstruction made necessary by
reason of damage to such utilties caused by Franchisee.
Franchisee is and expects to continue to be on the basis
currently in existence a member of Underground Service Alert of
Southern California, and otherwise agrees to take advantage of
equivalent available emergency communication arrangements.
I. Plan~ and Specifications
_ ___
Franchisee shall submit detailed plans of the intended in-
stallations, for advance approval by the City Director of Public
Works. Upon completion of construction, Franchisee shall furnish
to the Director of Public Works a complete set of "a~ built" plan~
and specifications, including depictions of shutdown locations and
facilities. Any modifications to the pipelines or facilities
during the term of the franchise shall be subject to all of the
requirements of this subparagraph.
J. _Cpmmencement and Completion of Construction
Franchisee shall commence construction within 120 days from
the effective date of this Ordinance, provided, however, the City
Manager may, upon request of Franchisee, extend the commencement
date for a reasonable period of time. Once commenced, construction
shall be completed within six (6) months, exclusive of any delay
caused by act of God, calamity, labor unrest or any other cause
outside the control of Franchisee.
Section
_Cons ide r,at i_on
Franchisee shall, during the life of this franchise, pay to
City an annual franchise fee computed on the basis of the greater
of (i) two percent (2%) of the gross annual receipts of Franchisee
arising from the use, operation, or possession of this franchise, or
(ii) such other method specified in the Franchise Act of 193/, or
its successor. Franchisee shall file with the Director of Finance,
within three (3) months after the expiration of the calendar year
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for which payment is due, a verified statement specifying in detail
the total gross receipts of Franchisee during the preceding calen--
dar year (or fractional calendar year) of the term hereof, arising
from the use, operation or possession of this franchise within the
City and the other methods specified above and shall pay to City
the franchise fee coincident with the filing of such statement.
Any neglect, omission 'or refusal of the Franchisee to file such
verified statement, or to pay such annual franchise fee, at the
time or in the manner' hereinbefore provided, shall be grounds for
the declaration of a forfeiture of this franchise and of all rights
of Franchisee hereunder, if not corrected within ten (10) days
after written demand therefor by City.
Section ~: Default
If .Franchisee shall fail, negiect or refuse to comply with
any of the provisions or conditions hereof or shall not, within ten
(10) day's after written demand for compliance, begin the work of
compliance, or, after such beginning, shall not prosecute the same
with due diligence t'o completion, t'hen the City may declar, e this
f~anchise forfeited.
In the event of such forfeiture, Franchisee shall forfeit
and surrender to City all equipment and facilities that may be
located along, over, or under any streets, alleys, or other public
places within the corporate limits of the City unless at the option
of 'City (i) such equipment and facilities are is removed within
thirty (30) days from the date of forfeiture or (ii) such equipment
and facilities are abandoned in place with proper cleaning and
filling. In the event of such removal, Franchisee hereby agrees,
as a covenant and condition of this franchise, that the streets,
alleys and public places from which such equipment and facilities
are removed shall be restored and placed in good condition.
Section 6 --
_~Abandorment
In the event that the use and maintenance of Franchisee's
equipment and facilities pursuant to this franchise is permanently
abandoned for any reason, Franchisee shall promptly give written
notice thereof to City and shall thereafter, upon being given ten
(10) days notice by City, either abandon such equipment and facili-
ties in place to City or commence and diligently prosecute the
timely removal from the public ways of all such equipment and
facilities and promptly repair and restore the area from which such
property has been removed to the reasonable satisfaction of City.
Section 7 -'
~_s~.ionment
The provisions of this franchise and all rights, obligations
and duties thereof shall inure to and be binding upon Franchisee,
its successors and assigns. Franchisee shall not sell, transfer or
assign this franchise or any-of the rights or privileges hereby
granted without the prior written consent of City, whxch consent
will not be unreasonably withheld. If consent is given, Franchisee
shall promptly file a copy of the duly executed sale or transfer
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instrument lin writing with the City Clerk.
S_ec t i_o_n !1:
Ni sce_l!apeou_s
A. Applicable Law
''All pertinent provisions of Division 3, Chapter 2 of the
Public Utilities Code, as they now exist or are hereafter amended,
shall be applicable to the franchise granted hereunder. Franchisee
shall comply with all other valid, applicable state, federal and
City laws (including, but not limited to, the mitigation measures
listed in City EIR 87-2 which are incorporated herein by this
reference) concerning the construction, maintenance, repair and
replacement of the equipment and facilities installed pursuant to
this franchise.
:
B. City's Publication E_xpe_n_s~s
Pranchisee shall pay to City a sum of money sufficient to
reimburse City for all publicatioa expenses incurred by it in
connection with the granting of this franchise. Such payment shall
be made within thirty (30) days after City furnishes Pranchisee
with a written statement of such expenses.
_~_ect io_n= 9_:
E~f$_e_ct ire Date
This Ordinance shall become effective thirty (30) days .from
its adoption, or upon filing by SDPC of its acceptance of the
franchise with the' City Clerk, pursuant ot Public Utilities Code
Section 6235, whichever is the later date.
PASSED AND ADOPTED at a regular meeting of the City Council
of the City of Tustin, California, held on ....... day of
, 1988.
ATTEST
11 ,1 _ , ,,,
MaYor
ARW:Cj :D: 07/30/87 (C254)
ARW: cj :R:09/22/87 (C254)
ARW:cj :R: 12/16/87 (C254)