Division II of this title shall be known as and may be cited as "The Pipeline Franchise Ordinance."
(Prior code § 10100)
For the purposes of Division II of this title, the following terms, phrases, words and their derivations shall have the meaning given in this section. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number.
"City"
means the city of Pico Rivera, state of California.
"Council"
means the city council of the city of Pico Rivera.
"Director"
means the director of public works of the city.
"Facilities" or "appurtenances"
means all property of the franchisee, including, but not limited to, pipelines, pump stations and service connections with the franchisee's facilities, whether installed by the franchisee or not, erected, constructed, laid, operated or maintained in, upon, over, under, along or across any highway, pursuant to any right or privilege granted by the franchise.
"Franchisee" or "grantee"
means the person to whom the franchise is granted, and any person to whom it lawfully may be assigned.
"Franchise report period,"
in all cases, means the first year after the effective date of the ordinance granting the franchise, or, at the option of the franchisee, any shorter period of time immediately following the date of such ordinance, and each year thereafter, during the life of the franchise.
"Highway"
means any public highway, freeway (except a state freeway), street, road, alley, lane or court, or other public easement, and above and below the same, which now exists or which may hereafter exist in any unincorporated territory of the city and in which the city has the authority to grant a franchise.
"Main"
means any pipeline or conduit laid in, along or approximately parallel with any highway for the collection, transmission or distribution of any substance or commodity.
"Person"
means any individual, person, firm, partnership or corporation.
"Section"
means a section of the ordinance codified in this title, unless some other ordinance or statute is mentioned.
"Service connection"
means the wire, pipes or conduits connecting the building or place where the service or commodity supplied by the franchisee is used or delivered, or is made available for use or delivery, with the supply line or supply main in the highway, or with such line or supply main on private property.
(Prior code § 10102)
Every franchise hereafter granted by the city to lay or construct from time to time and for the period covered by the franchise 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, petroleum, gas, gasoline, or other hydrocarbon substances, wet gas, chemicals, mud, steam, water, wastewater, or other liquid substances, for any purpose, together with all manholes, valves, appurtenances and service connections necessary or convenient for the operation of such pipes or pipelines, including poles, conduits, wires, cables and other appurtenances and equipment for telegraph or telephone lines, or both, necessary or convenient for the franchisee's business, in, under, along or across any and all highways, except as otherwise provided in the ordinance granting the franchise, shall be granted upon and be subject to the rules, regulations, restrictions and terms and conditions of Chapter 4.04 of this title and, in addition, to those rules, regulations, restrictions, terms and conditions set forth in the ordinance granting the franchise. In the event the terms and conditions hereof conflict with the terms and conditions of Chapter 4.04, the terms and conditions hereof shall control.
(Prior code § 10101)
Unless the ordinance granting the franchise provides otherwise, the term of the franchise shall be twenty-five years.
(Prior code § 10103)
The franchisee shall, within thirty days after the passage of the ordinance granting the franchise, file with the city clerk a written acceptance of the terms and conditions of such ordinance; provided, however, that as to franchises granted to the United States of America, use will constitute acceptance.
(Prior code § 10104)
The granting of the franchise shall not be construed to prevent the city from granting any identical or similar franchise to any person other than the franchisee. Nothing herein contained shall ever be construed so as to exempt the franchisee from compliance with all ordinances, rules or regulations of the city now in effect, or which may be hereafter adopted, which are not inconsistent with the terms of the franchise.
(Prior code § 10105)
A. 
On or before commencement of any franchise operations, the franchisee shall obtain or provide satisfactory evidence of having policies of liability and workers' compensation insurance from companies authorized to transact business in the state, by the State Insurance Commissioner.
B. 
The policy of liability insurance shall:
1. 
Be issued to the franchisee, and name the city, its officers, agents and employees as additional insured;
2. 
Indemnify for all liability for personal and bodily injury, death and damage to property arising from activities conducted pursuant to this franchise by providing coverage therefor, including, but not limited to:
a. 
Negligent acts or omissions of the franchisee and the agents, servants and employees thereof, committed in the conduct of franchise operations,
b. 
Provide combined single limit liability insurance in the amount of one million dollars, subject to self-insured retention as is normal and prudent in the franchisee's similar operations,
c. 
Be noncancellable without forty-five days' written notice thereof directed to the city clerk.
C. 
The policy of workers' compensation insurance shall:
1. 
Have been previously approved as to substance and form by the State Insurance Commissioner;
2. 
Cover all employees of the franchisee who, in the course of their employment, are to conduct or do work pursuant to the franchise operations;
3. 
Provide for every benefit and payment presently or hereinafter conferred by Division 4 of the Labor Code of the state upon an injured employee, including the vocational rehabilitation and death benefits;
4. 
Provide for every benefit and payment under any obligation of the Federal U.S. Long Shoreman and Harbor Worker Compensation Act, paying particular attention to Public Law 92.572;
5. 
Be noncancellable without thirty days' written notice thereof directed to the city clerk.
D. 
In lieu of the policy of workers' compensation insurance required above, the franchisee may substitute and provide a certificate of consent to self-insure, issued by the Director of Industrial Relations of the state.
E. 
The franchisee shall file with the director prior to commencement of any franchise operations, either certified copies of such policies, or a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force.
F. 
Any franchise operations shall not commence until the franchisee has complied with the aforementioned provisions of this section, and any such operations shall be suspended during any period that the franchisee fails to maintain such policies in full force and effect.
(Prior code § 10106)
A. 
Within five days after the effective date of the ordinance granting the franchise, the franchisee shall file and thereafter at all times during the life of the franchise keep on file with the city clerk a corporate surety bond running to the city, in the penal sum of ten thousand dollars, or such other sum as may be specifically provided for in the ordinance granting the franchise, with surety to be approved by the city clerk, conditioned that the franchisee shall well and truly observe, fulfill and perform each condition of the franchise and that in case of any breach of condition of the bond the whole amount of the penal sum shall be deemed to be liquidated damages, and shall be recoverable from the principal and sureties of the bond.
B. 
If the bond is not filed within five days after the effective date of the ordinance granting the franchise, the award of the franchise may be set aside and the ordinance granting the franchise repealed at any time prior to the filing of the bond, and any money paid in consideration for the award of franchise shall be deemed forfeited in the event that the bond, after it has been so filed, shall at any time during the life of the franchise, in the opinion of the city clerk, become insufficient. The franchisee agrees to renew the bond, with sureties to be approved by the city clerk, within ten days after written notice to do so from the city clerk.
(Prior code § 10107)
As an alternate to the filing of a bond, the franchisee may deposit with the city clerk and assign to the city savings and loan certificates or shares, or both, in the same amount as required on such bond.
(Prior code § 10108)
A. 
The franchisee shall indemnify, defend and hold the city harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, including reasonable attorneys' fees, regardless of the merit or outcome of any such claim or suit, claimed or arising from any negligent or intentional act or omission of the franchisee, its officers, employees, agents or subcontractors, arising from activities or work conducted pursuant to the franchise.
B. 
The franchisee shall indemnify, defend and save harmless the city, its officers, agents 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 in connection with activities or work conducted or performed pursuant to the franchise and arising out of such activities or work, and from any and all claims and losses whatsoever, including reasonable attorneys' fees, accruing or resulting to any person, firm or corporation for damage, injury or death arising out of the franchisee's franchise operations.
(Prior code § 10112; Ord. 699 § 1, 1985)
A. 
The franchisee shall not sell, transfer, assign or lease the franchise, or any part thereof, except with the consent of the city clerk. Such sale, transfer, assignment or lease shall be made only by filing with the city clerk a certified copy of the duly executed instrument of such sale, transfer, assignment or lease, and a written request for the consent of the city clerk to such sale, transfer, assignment or lease. If such duly executed instrument and such written request is not filed with the city clerk before the expiration of thirty days after the effective date of such sale, transfer, assignment or lease then, upon the expiration of such thirty days, the franchise shall be subject to forfeiture, and the city council may, without notice, by ordinance, repeal the franchise. As a condition to the granting of consent to such sale, transfer, assignment or lease, the city council may impose such additional terms upon the franchise and upon the grantee or assignee which the city council may deem to be in the public interest. Such additional terms and conditions shall be expressed by ordinance.
B. 
Nothing herein contained shall be construed to grant to the franchisee the right to sell, transfer, assign or lease the franchise, or any part thereof, except in the manner aforesaid. This section applies to any assignment, whether by operation of law, by voluntary act of the franchisee, or otherwise.
C. 
No such consent shall be required to any transfer of the franchise in trust or by way of mortgage or hypothecation with all or a part of the franchisee's other property for the purpose of securing any indebtedness of the franchisee.
(Prior code § 10110)
The franchisee agrees that the franchise shall never be given any value before any court or other public authority in any proceeding of any character in excess of the cost to the franchisee of the necessary publication and any other sum or sums paid by it to the city for the franchise.
(Prior code § 10113)
A. 
The franchise is granted and shall be held and enjoyed upon each and every condition contained in the ordinance granting the franchise, including such conditions contained herein as are incorporated by reference in the franchise ordinance, and shall ever be strictly construed against the franchisee. Nothing shall pass thereby unless it is granted in plain and unambiguous terms. Any neglect, failure or refusal by the franchisee to comply with any of the conditions of the franchise shall constitute grounds for the suspension or forfeiture thereof. The city council, prior to any suspension or forfeiture of the franchise shall give to the franchisee not less than ten days' notice in writing of any default thereunder.
B. 
If the franchisee does not, within the noticed period, begin the work of compliance, or after such beginning does not prosecute the work with due diligence to completion, the city council may hold a hearing, at which the franchisee shall have the right to appear and be heard, and thereupon the city council may determine whether such conditions are material and essential to the franchise and whether the franchisee is in default with respect thereto, and may declare the franchise suspended or forfeited. Notice of the hearing shall be given to the franchisee by certified mail not less than five days before the hearing.
(Prior code § 10109)
Notwithstanding the granting of a franchise, the franchisee shall not be authorized to do any work under the franchise for which the issuance of a permit is required unless such a permit is issued for such work. The franchisee shall not have an absolute right to the issuance of such a permit.
(Prior code § 10111)
If any provision of the franchise or the application of the franchise to any person or circumstances is held invalid by a court of competent jurisdiction or is not in compliance with any requirement of the Public Utilities Commission or any other federal or state agency, the remainder of the franchise, or the application of the franchise to persons or circumstances other than those to which it is held invalid or not in compliance shall not be affected thereby.
(Prior code § 10114)
The franchisee shall:
A. 
File with the city finance director, within three months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of the franchise and within three months after the expiration of each calendar year thereafter, two copies of a report verified by the oath of the franchisee, or by the oath of a duly authorized representative of the franchisee, showing the total gross receipts of the franchisee for the immediately preceding franchise payment period, received or accrued in connection with the furnishing of the commodity or service arising from the use or operation of the franchise, together with such additional data as are necessary, in the opinion of the city finance director, to calculate or verify the calculation of the annual payment required by Section 4.12.040 of this title (or the pro rata amount thereof for the first period if the first period is less than one year). On this report, the franchisee shall also show any change in franchise footage since the last franchise report period, segregating such footage as to new mains laid, old mains abandoned in place, and the footage of mains in territory annexed or incorporated since the last franchise;
B. 
File with the city clerk, within the same franchise report period as provided in subsection A of this section, a report in duplicate, showing the permit number of each permit obtained for the installation of new mains during the immediately preceding franchise report period, together with the length and size of such mains.
(Prior code § 10600)
A. 
The franchisee, during the life of the franchise, shall make annual payments to the city, as provided in Sections 4.12.030 and 4.12.040 of this title, within fifteen days after the filing of the report required by Section 4.08.160.
B. 
In the event the amount paid is incorrect in the judgment of the city council, it may order the payment of such additional sum or sums as it may find thereunder, and if not paid, or if paid under protest, the share may be determined by suit.
(Prior code § 10601)