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)