For the purpose of this chapter, the following words and phrases
have the meaning set forth below. The city and a franchisee may incorporate
into a franchise agreement definitions that differ from or augment
those set forth in this section.
Director:
director of public works/city engineer.
Facilities:
all property of the franchisee that is erected or maintained
in, upon, over, under, along or across any street pursuant to a pipeline
franchise. "Facilities" includes without limitation appurtenances,
pipelines, pump stations and service connections with the franchisee's
facilities.
Franchisee:
the person to whom a pipeline franchise is awarded, and any
person to whom such franchise is lawfully assigned.
Franchise Payment Period:
(1) the period between the effective date of the ordinance
awarding the pipeline franchise and December 31st of that calendar
year; and (2) each calendar year thereafter during the term of the
pipeline franchise.
Franchise Report Period:
(1) the period between the effective date of the ordinance
awarding the pipeline franchise and December 31st of that calendar
year; and (2) each calendar year thereafter during the term of the
pipeline franchise.
Main:
any pipeline or conduit laid in, along, or approximately
parallel with any street for the collection, transmission or distribution
of any substance or commodity.
Major Street:
any street or portion thereof designated as a major or primary
arterial highway in the circulation element of the Seal Beach General
Plan.
Minor Street:
all streets in the city other that are not a major street.
Pipeline Franchise:
a franchise to lay or construct from time to time, and to
maintain, operate, renew, repair, change the size of, remove or abandon
in place pipes and pipelines for the collection, transportation or
distribution of oil, gas, gasoline, petroleum, wet gas, mud, steam
and other liquid substances not more hazardous than the aforesaid
substances, together with all manholes, valves, appurtenances and
service connections necessary or convenient for the operation of such
pipes or pipelines including conduits, cathodic protection devices,
wires, cables and other appurtenances necessary or convenient for
the exercise of the franchisee's business, in, under, along or across
any and all streets within the city as approved from time to time
by city council resolution.
Service Connection:
the wire, pipes or conduits connecting a main located in
a street to the building or place on private property.
Street:
any street, road, highway, alley, lane or other public easement
in which the city may grant a pipeline franchise.
(Ord. 1515)
Every pipeline franchise awarded by the city shall be subject
to the provisions of this chapter except as expressly provided in
the ordinance awarding the franchise.
(Ord. 1515)
Nothing in this chapter, or in any ordinance awarding a pipeline
franchise, shall be construed to permit the franchisee to construct
new facilities above ground.
(Ord. 1515)
Within 30 days after enactment of the ordinance awarding the
pipeline franchise, the franchisee shall file with the city clerk
and the director a written acceptance of the terms of the franchise.
(Ord. 1515)
The award of a pipeline franchise shall not preclude the city
council from awarding an identical or similar pipeline franchise to
any other person.
(Ord. 1515)
If any non-public utility franchisee should qualify before the
California Public Utilities Commission as a common carrier during
the term of the franchise, then the franchisee shall have no right
to continue to operate under the franchise after the qualification
date except as approved by the city council.
(Ord. 1515)
Within 90 days after any facilities have been laid, removed
or abandoned under a franchise, the franchisee shall file maps with
the director showing the accurate "as built" location, depth and size
of such facilities.
(Ord. 1515)
A. Requirement.
On or before commencement of any franchise operations, the franchisee
shall submit to the city manager certificates confirming the procurement
of liability and workers' compensation insurance in accordance with
this section from companies authorized to transact business in the
state. Franchise operations shall cease during any period that the
franchisee fails to maintain such insurance in full force and effect.
The insurance policies shall be noncancellable without 30 days advance
written notice to the city manager.
B. Liability
Insurance. The policy of liability insurance shall:
1. Be
issued by an insurer with a current rating A.M. Best's rating of A:VII
or better.
2. Name
the city and its officers, agents and employees as additional insureds.
3. Be
primary and provide that any insurance maintained by the city shall
be excess insurance.
4. Indemnify
for all liability for personal and bodily injury, death and damage
to property arising from activities conducted in connection with the
franchise.
5. Provide
coverage for:
a. Negligent acts or omissions of the franchisee and the agents, servants
and employees thereof, committed in the conduct of franchise operations.
b. Provide a combined single limit liability insurance of at least $10,000,000.
C. Workers'
Compensation Insurance. The policy of workers' compensation insurance
shall:
1. Be
approved by the California Insurance Commissioner as to substance
and form.
2. Cover
all franchisee employees who perform work on the franchise operations.
(Ord. 1515)
On or before the effective date of the ordinance awarding the
franchise, the franchisee shall file with the city manager and shall
thereafter maintain a faithful performance bond in the amount of $10,000.
Such bond shall be subject to the city attorney's approval as to form
and shall be with a surety approved by the director.
(Ord. 1515)
Whenever the length of any wire, pipe or conduit is a factor
in calculating any payment due under a franchise, all service connections
shall be excluded in determining such lengths.
(Ord. 1515)
The terms and conditions of franchises shall be strictly construed
against the franchisee. Any neglect, failure or refusal to comply
with such terms and conditions shall constitute grounds for suspension
or forfeiture of the franchise. Prior to suspending or deeming a franchise
forfeited, the city council shall afford the franchisee no less than
30 days written notice of default. If the franchisee does not commence
compliance within such period, or does not prosecute the work to completion
with due diligence, the city council may thereafter suspend the franchise
or deem it forfeited. Prior to taking such action, the city council
shall hold a hearing, written notice of which shall be given to the
franchisee at least 5 days in advance.
(Ord. 1515)
Except for such rights as by law remain with the city, if any
street or portion thereof becomes a state highway during the franchise
term, then the state shall succeed to all rights reserved to the city
by the franchise.
(Ord. 1515)
Franchisees shall reimburse the city for all costs incurred
by the city in processing the franchise including without limitation:
staff costs; attorney's fees; and publication costs. Payment shall
be tendered within 30 days of receipt of an invoice from the city.
(Ord. 1515)
Franchisees shall not sell, transfer, assign or lease their
franchise or any part thereof without the prior approval of the city
council. As a condition of approving a franchise sale, assignment
or lease, the city council may impose such additional terms and conditions
as deemed in the public interest.
(Ord. 1515)
Franchisees shall indemnify, defend and hold harmless the city
and its officers, employees and agents against any and all claims,
demands, losses, costs, expenses, obligations, liabilities, damages,
recoveries and deficiencies that the city shall incur or suffer as
a result of the franchisee's operations. Such obligation shall include
payment of interest, penalties and attorneys fees.
(Ord. 1515)
If the city or any other public entity constructs or maintains
a storm drain, sewer structure or other improvement under or across
any facility of a franchisee, then the franchisee shall at its sole
expense provide such support as is necessary for the preservation
of the franchisee's facility.
(Ord. 1515)
Franchisees shall be responsible for relocating at their sole
expense any franchise facilities that must be moved to accommodate
a public improvement project by the city or another public entity.
If a franchisee fails to perform such relocation after reasonable
notice, then the city or other public entity may cause the work to
be performed and may bill the cost therefor to the franchisee. The
franchisee shall reimburse such cost and shall indemnify the city
or other public entity against any and all claims, demands, losses,
costs, expenses, obligations, liabilities, damages, recoveries and
deficiencies that the city shall incur or suffer as a result of the
relocation.
(Ord. 1515)
If any street or portion thereof shall be damaged by reason
of defective facilities of a franchisee, then the franchisee shall
at its sole expense repair such street or portion thereof to the satisfaction
of the director. If a franchisee fails to commence such work within
10 days of written notice from the city, or fails to prosecute the
work to completion with due diligence, then the city may cause the
work to be performed at the franchisee's expense. In the event defective
facilities of a franchisee result in an immediate danger to the public
health, safety or welfare, the city may immediately repair the damage
at the franchisee's expense.
(Ord. 1515)
Franchisees shall obtain director approval prior to the issuance
of an excavation permit for a pipeline to be used for transmission
of flammable liquids or gases heavier than air. The city manager shall
withhold approval unless a finding can be made that the proposed pipeline
will not create an undue fire hazard. To make such a determination,
the city manager shall consider the following:
A. Type
of commodity to be transmitted.
B. Population
density in the area of the pipeline.
C. Adequacy
of water supplies for fire control.
D. Extent
of available fire protection facilities.
E. Number
and location of shut-off valves in the pipeline.
(Ord. 1515)
A. Public
Utilities. Public utility franchisees shall pay to the city in lawful
United States currency 2% of the franchisee's gross annual receipts
arising from the use, operation or possession of the franchise; provided,
however, that such payment shall in no event be less than 1% of the
gross annual receipts derived by the franchisee from the sale within
the city of the franchisee's utility service.
B. Nonpublic
Utilities. Nonpublic utility franchisees shall pay to the city in
lawful United States currency one of the following fees:
1. 4%
of the franchisee's gross annual receipts arising from the use, operation
or possession of the franchise.
2. 4%
of the annual royalty paid by the franchisee to the state in connection
with the operation of gathering lines used to extract oil, gas or
other minerals from state-owned tidelands or submerged lands. This
fee shall only apply if the following conditions are satisfied: (i)
the franchise involves only gathering lines and (ii) no revenues are
derived from the use, operation or possession of such gathering lines.
3. An
amount based upon the size and length of the pipeline calculated as
follows:
Pipelines With an Internal Diameter of
|
Amount per Linear Foot
|
---|
0-4″
|
12¢
|
6″
|
16¢
|
8″
|
22¢
|
10″
|
25¢
|
12″
|
30¢
|
14″
|
35¢
|
16″
|
40¢
|
18″
|
50¢
|
20″
|
55¢
|
22″
|
60¢
|
24″
|
70¢
|
26″
|
75¢
|
28″
|
80¢
|
30″
|
85¢
|
The rate applicable to pipelines with an internal diameter
falling between incremental size categories shall be determined by
adding the price corresponding to the lower size to a figure computed
by multiplying the difference between the higher and lower prices
times the multiplier. The multiplier shall be determined by dividing
the difference between the categories. In determining the number of
feet of pipeline upon which the annual fee will be computed, the greatest
number of feet of pipeline covered by the franchise during the franchise
payment period shall be used. A penalty at the rate of 10% per month
or fraction thereof shall be charged but in no event shall such penalty
exceed 50%.
C. Base
Construction Charges. At the time of installation, relocation or replacement
of any pipeline or other facility covered by the franchise, the franchisee
shall pay a base construction charge of $2,350 per ½ mile of
pipeline or fractional part thereof on major streets and $1,550 per
½ mile or fractional part thereof on minor streets.
D. Adjustments.
The amount of each base fee shall be revised at the time payment is
due in accordance with the following formula:
1. If
90 days prior to the due date the Consumer Price Index for all Urban
Consumers, Los Angeles-Long Beach-Anaheim area (1967 equals 100.00)
prepared by the United States Bureau of Labor Statistics, Department
of Labor shall stand at a level different than the base level, then
the rate of payment shall vary in direct proportion as such Index
has increased or decreased from the base level. For purpose of this
provision, "base level" means the level of the Index on December 31,
1984.
2. If
the Bureau should discontinue the preparation of the Index using prices
prevailing during the year 1967 as the base 100 and if no transposition
table is available, then the amount of each payment shall be computed
by using the most nearly comparable successor index.
3. In no event shall any fee less than the base fees established by paragraph B.1 and subsection
C be charged.
E. Proration
of Payments. In the event the initial franchise payment period is
less than one year, or in the event of abandonment or removal of facilities
during a franchise payment period, the franchise fee shall be prorated
for that period. Proration shall be based as of the end of the calendar
month in which the franchise is granted or the facilities are abandoned
or removed.
F. Records.
Franchisees shall maintain all records necessary to determine the
franchise fee amount for at least 5 years following the end of the
franchise payment period. At all reasonable times a franchisee shall
permit city representatives to examine all property of the franchisee
utilized in connection with the franchise, and to examine the franchisee's
records related to the franchise. The franchisee shall make the records
available at a location within the county.
(Ord. 1515)
Franchisees shall maintain during the franchise term adequate
emergency equipment, with a properly trained crew, on a 24-hour-per-day
basis. Such equipment and crew shall be located within a 25-mile radius
of the franchisee's facilities in the city and shall be capable of
shutting of the facilities.
(Ord. 1515)
A. Within
30 days of the expiration, revocation or termination of a franchise,
the franchisee shall submit a written application to the director
for authority to either (i) abandon in place all or a portion of the
franchise facilities; or (ii) remove all or a portion of the franchise
facilities. The director may approve, conditionally approve or deny
such application as deemed appropriate for the public interest.
B. In the
event a franchisee shall fail to comply with the terms and conditions
of an abandonment or removal, or shall fail to prosecute such work
to completion with due diligence, the city may cause the work to be
performed at the franchisee's expense.
C. All
facilities abandoned in place by a franchisee shall be removed at
the franchisee's expense at any time the city should determine that
the facilities interfere with a proposed public improvement project.
(Ord. 1515)
A. Materials
Used. All pipelines used or to be used for transportation of oil,
gas, gasoline, petroleum, wet gas, hydrocarbon substances or other
flammable liquid shall be first class and standard material as set
forth by current American Petroleum Institute pipelines specifications.
B. Approvals.
On any pipeline laid pursuant to the franchise, the location and installation
of flush valve connections shall be subject to the approval of the
director. The director shall consider the availability of adequate
water supplies, the commodity transmitted in the line and the location
of control valves when making such determination.
C. Reports.
Within 90 days after the expiration of each franchise payment period,
the franchisee shall:
1. File
with the director of finance 2 copies of a verified report showing
for the immediately preceding franchise payment period the franchisee's
total gross receipts attributable to the franchise. Such report shall
be accompanied by any additional data requested by the director to
enable calculation of the annual payment owed by the franchisee.
2. File
with the director of finance a report in triplicate showing the permit
number for each permit obtained for the installation of new mains
during the immediately preceding franchise payment period. Such report
shall indicate: the length and size of the mains; any change in the
franchise footage since the last franchise payment period; and any
footage of mains in territory annexed or incorporated since the last
franchise payment period. The report shall specify new mains laid,
old mains removed and old mains abandoned in place.
D. Payment
Due. Except as otherwise provided by law, the payments shall accrue
from the respective dates of installation whether before or after
the effective date of the ordinance awarding the franchise. Such payments,
together with the initial construction charge if any, shall be due
and payable annually.
E. Non-applicability. Subsections
B through
D of this section do not apply to public utilities.
(Ord. 1515)
The requirements of this section shall apply only to public
utility franchisees.
A. Within
90 days after the expiration of each franchise payment period, the
franchisee shall file with the director of finance 2 copies of a verified
report showing the franchise's total gross receipts attributable to
the franchise for such period. The report shall include any additional
data deemed necessary by the director of finance for verification
of the franchise payment amount.
B. Within
90 days after the expiration of each franchise report period, the
franchisee shall file with the director of finance a report in triplicate.
Such report shall indicate the (1) permit number for each permit obtained
during the report period to install new mains; and (2) the length
and size of such mains. Such report also shall indicate any change
since the previous report in the franchise footage, which shall be
segregated as to new mains laid, old mains removed, old mains abandoned
in place and existing mains in newly annexed property.
C. Public
utility franchisees agree, by accepting the terms of the franchise,
that in any proceeding for adjusting franchisee's rates no greater
value shall be placed upon the franchise than the actual cash paid
by the franchisee.
(Ord. 1515)
The requirements of this section shall apply only to franchisees
operating gas pipelines.
A. The
franchisee shall have the right, subject to the terms and conditions
of its franchise, to make service connections with all property in
the city adjoining streets and to furnish and distribute gas through
its pipelines to all territory in the city adjacent to the pipelines.
B. On all
pipelines laid pursuant to a franchise and carrying gas heavier than
air, the director shall approve the placement of flush valve connection
in the line. The availability of adequate water supplies, the commodities
transmitted in the line and the location of control valves shall be
considered when making such determination. Flush valve connections
shall be installed in the manner prescribed by the director.
(Ord. 1515)