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HomeMy WebLinkAboutPH 1 SD PIPELINE FRAN 01-04-88PUBLIC HEARINGS NO. I FROM: - SUBJECT: WILLIAM HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION PROPOSED FRANCHISE AGREEMENT TO SAN DIEGO PIPELINE RECOMMENDED ACTIONS That the Tustin City Council at their meeting of January 4, 1988: ® Open the Public Hearing and receive testimony on the granting of a non-exclusive franchise to San Diego Pipeline Company to install, construct, operate and maintain pipelines within certain public roads, streets and ways of the City of Tustin; 2. Take action on the attached ordinance granting said franchise; 3' In the event said ordinance is adopted, approve said request for an early start of construction. 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. On December 21, 1987, the City Council certified the Final EIR for the project and introduced said 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 by first reading. Proposed Franchise, San Diego Pipeline December 29, 1987 Page 2 DISCUSSION A public hearing has been set for Monday, January 4, 1988 at 7:00 p.m. in the City Council Chambers of the City of Tustin, 300 Centennial Way. After public testimony has been taken at said hearing and if deemed appropriate by City Council, said ordinance can be adopted by second hearing. Said ordinance will become effective thirty (30) days after adoption. In the event the said ordinance is adopted on January 4, 1988, the San Diego Pipeline Company has requested that they be permitted to commence work at the earliest practical date after adoption and prior to the effective date of said ordinance. The City Attorney's office has reviewed this request and has no objections to the commencement of work by the San Diego Pipeline Company after the adoption of the ordinance, but prior to the expiration of thirty (30) days thereafter. Subject to the City providing the following notice by letter to the San Diego Pipeline Company: The referendum period for said ordinance is thirty (30) days and any interruption in their schedule as a result of activities relating to a referendum of the ordinance would be the responsibility of San Diego Pipeline Company. Bob Ledendecker / - Director of Public Works/City Engineer BL/mv ER~lndeeEr in~°S1 ~rv~ces Manager 6 7 8 10 11 ].2 13 14 ~5 16 17 18 19 20 21 22 23 2~, 25 26 27 28 ORDINANCE NO. _999 AN ORDINANCE OF THE CIT!f COUNCIL OF T[~E CITY 0P TUSTIN, CALIFORNIA GRANTING A PRANCHISB SAN DIEGO PIPEr. INE COMPANY TO CONSTRUCT, MAINTAIN AND OPERATE PIPF~LINES WITHIN CERTAIN PUBLIC ROADS, STREETS AND WAYS OP THE CITY OF TUSTIN, CALIPORNIA WHEREAS, San Diego Pipeline Company ("SDPC"), a Calllornia public utility under Public Utilities Code Section 216(a), has 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 route within the City to transmit oil; and W~EREAS, City is authorized to grant a franchise upon the public streets, ways, alleys and places within the City for, among other purposes, transmitting and distributing oil pursuant to Sec- tions 6201, e._%t s.~_~q, of the Public Utilities Code of the State of California (the Franchise Act of 1937); and WHEREAS, the City Council of City adopted a Resolution of Intent to grant the franchise and held a hearing on .January 4 , 1988, for the purpose of hearing objections to the granting of the franchise; and WHEREAS, the City Council finds and determines that it is in the best interest and welfare of the City to grant the franchise upon the terms and conditions hereinafter set forth in this Ordi- nance. NOW, TBEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN DOES ORDAIN AS FOLLOWS: section 1: ,Grant, of Franchise The City grants to SDPC, hereafter sometimes referred to as "Franchisee", the non-exclusive right, privilege and franchise to construct, maintain, inspect, operate, protect, repair and replace a 10 inch pipeline and a 16 inch pipeline, including control fa- cilities and other appurtenances and any facilities necessary for cathodic protection thereof, for the transportation of refined petroleum products in, under, along, over and across the public streets, roads, highways, alleys and other public ways described in Exhibit "A", attached hereto and incorporated herein by this reference. SeC_t_~on 2: Term of Pranch!_se This franchise shall be for a period of thirty (30) years from and after the effective date of this Ordinance. 5 6 ? 8 9 10 11 14 15 16 17 18 19 20 21 22 23 25 26 27 28 Sect;ion :~: A. _R_e_asonable Re_gu~atio_n City reserves the right to enforce reasonable regulations concerning the construction and maintenance of Franchisee's facili- ties located in, under, along, over and across public streets, roads, highways, alleys, and other public ways and the placement of such facilities, including the appropriate depth of the pipeIines, subject to valid and applicable federal and state laws and regula- tions. B. Per_f_0.rmance B_ond Franchisee shall, concurrent with the filing of its written acceptance of franchise, file with the City Clerk, and at all times thereafter maintain in full force and effect for the entire term of the franchise, at its expense, a faithful performance bond executed by a surety company approved by the City Attorney in the amount of One Hundred Thousand Dollars ($100,000.00), renewable annually, and conditioned on the faithful performance by Franchisee of all the terms, conditions and covenants contained in the franchise. If Franchisee fails to comply with any one or more of the provisions of the franchise, there shall be recoverable jointly and severally from the principal and surety of such bond any damages or losses suffered by City as a result thereof. Such bond shall provide that thirty (30) days prior written notice of cancellation, material change, or intention not to renew such bond be given by the surety company to City. Neither the provisions of any bond accepted by City pursuant hereto nor any damages recovered by City thereunder shall be con- strued to excuse faithful performance by Franchisee or limit the liability of Franchisee under the franchise or for damages, either to the full amount of the bond or otherwzse, or preclude exercise of any other right or remedy given to City by law, whether exer- cised concurrently or subsequently. C. Indemnity Franchisee shall indemnify, hold harmless and defend City, its'boards, commissions, officers, and employees, acting pursuant to City authority within the scope of their employment, against any and all loss, damage or liability for injury to or death of any person or any damage 'to any property caused by Franchisee, its of- ficers, agents,, or employees, in the construction, operation, or maintenance of the pipelines, or arising out of the exercise of any right or privilege under the franchise. D. Co_mpr_ehen_sive L_i_a_bility. Insuranc.e. At all times during the term of the franchise Franchisee will, at its own cost and expense, maintain in full force and effect a general comprehensive liability insurance with an insur- ance company approved by the City Attorney. The coverage repre- 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 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. L..i,m.itation of Franch_ise 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. Instal!_ati0n and Maintenance 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 Imp_ro.vement. 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 1 2 5 6 7 8 9 10 11 12 13 14 15 ~6 17 18 19 20 21 22 23 2~ 25 26 28 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 repaired by Pranch~see at its sole cost and expense, 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. Plan_s 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 "as built" plans 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 reguirements of this subparagraph. J. Commencement 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. sect ion 4 '- Cons id. ra, tio__n 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 1 4 5 6 7 8 9 10 tl 12 14 15 16 17 18 19 20 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 _5: Default If Franchisee shall fail, neglect or refuse to comply with any of the provisions or conditions hereof or shall not, within ten (10) days after written demand for compliance, begin the work of compliance, or, after such beginning, shall not prosecute the same with due diligence to completion, then the City may declare this franchise forfeited. In the event of such forfeiture, Franchisee shall forfeit and surrender to City all equipment and fac.ilities 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 agree~, 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 $: Abandonment 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 21 (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. 22 23 24 25 26 27 28 Section 7: Assianment 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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 instrument in writing with the City clerk. .S_e_c t_t_o_n. 8: Mi sce_l !_a_neop S, A. applicabl_e 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 F. IR 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_ses Franchisee shall pay to City a sum of money sufficient to reimburse City for all publication expenses incurred by it in connection with the granting of this franchise. Such payment shall be made within thirty (30) days after City furnishes Franchisee with a written statement of such expenses. Section_ 9_: zf$_e_ct iye D~te 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. _ _ Mayor ATTEST: City Clerk ARW: cj .'D: 07/30/87 (C254) ARW:cj :R.. 0 9/22/87 (C254) ARW.. cj .. R: 12/16/87 (C254)