The City hereby grants to Tesoro SoCal Pipeline Company, LLC, its successors and assigns, hereinafter referred to as "grantee" subject to the terms and conditions herein contained, the right, franchise and privilege from time to time, for a period of 20 years from and after the effective date of Ordinance No. 1144, to install, operate, maintain, replace, change the size of, abandon in place and/or remove pipelines for transportation of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud stream or other substances transportable by pipeline together with all appurtenances and service connections necessary or convenient to properly maintain and operate said pipelines, including cathodic protection facilities for the grantee's business, hereinafter collectively called "franchise property," within the public streets, highways, alleys and other public ways or public property, hereinafter collectively called "streets," of the City, as enumerated and described as follows: All that portion under Garfield Avenue, from about Petterson Lane to the southern City border. The total length of this pipeline is 9,091 linear feet.
(Prior code § 21-41; Ord. 1144 § 2, 2020)
This franchise shall expire 20 years from and after the effective date hereof unless sooner terminated, by ordinance, as herein provided. The City reserves the right to terminate this franchise prior to its expiration date in the event:
A. 
The grantee fails to comply with any provisions hereof; provided, however, that if such failure of compliance shall be due to a cause beyond the reasonable control of grantee, the franchise shall not be so terminated. In the event grantee shall default in the performance of any of the terms, covenants or conditions herein and such default is curable, the City shall give written notice to grantee to commence within 10 days the work necessary to cure such default, and if grantee fails to comply with such notice, the City may terminate this franchise.
B. 
The time within which grantee is obligated to commence, perform or complete any obligation hereunder shall be extended for a period of time equal in duration to, and the commencement, performance or completion in the meantime shall be excused on account of and for and during the period of, any delay caused by strikes, threats of strikes, lockouts, war, threats of war, insurrection, invasion, acts of God, calamities, violent action of the elements, fire, action or regulation or any governmental agency, law or ordinance, impossibility of obtaining materials, or other things beyond the reasonable control of grantee.
The City shall give the grantee 30 days' notice of any termination proceedings.
(Prior code § 21-42; Ord. 1144 § 2, 2020)
As consideration for the franchise granted herein, the grantee shall pay to the City the following fees:
A. 
Base Annual Fee. A base annual fee shall be paid within 60 days after the end of each calendar year and during the life of the franchise for each and every year, including the year of granting the franchise, according to the "franchise payment period" as set forth in California Public Utilities Code Section 6231.5(3), by multiplying the pipe length expressed in feet by the applicable base rate as follows:
Pipe Size (Internal) Diameter in inches
Base Rate Per Lineal Foot
0—4
$0.088
6
0.132
8
0.176
10
0.220
12
0.264
14
0.308
16
0.352
18
0.396
20
0.440
22
0.484
24
0.528
26
0.572
28
0.616
30
0.660
For pipelines with an internal diameter not listed above, the fees shall be in the same proportion to the fees of a 12-inch diameter pipe as the diameter of the unlisted pipe is to 12 inches. The formula used in arriving at the annual fee shall apply to any existing, replacement, modification or extension of the pipeline.
B. 
Adjustments.
1. 
The amount of the fee provided for in subsection A of this section, shall be adjusted at the time payment is due by multiplying the base fee by the "Consumer Price Index, All Urban Consumers for the Los Angeles-Anaheim-Riverside" area as published by the United States Department of Labor, Office of Information for the month of September immediately preceding the month in which payment is due and payable, and divided by the "Consumer Price Index for June 30, 1989 = 100.0."
2. 
In no event shall an annual fee be charged which is less than the base annual fee amount established by subsection A of this section.
3. 
The indices specified in subsection (B)(1) are calculated and published by the United States Department of Labor, Bureau of Labor Statistics. If the Bureau discontinues the calculation or publication of the "Consumer Price Index, All Urban Consumers for the Los Angeles-Anaheim-Riverside area for June 30, 1989 = 100.0," and no transposition table is available to convert to another index, then the amount of each annual adjustment in base fees shall be computed by using a comparable governmental index.
C. 
Proration of Payments. In the event of abandonment of facilities, or in the event of removal of such facilities by the Grantee, or in the event of the grant of a franchise with an initial franchise payment period of less than one year, the annual franchise fee required under subsections A and B shall be prorated for the calendar year in which such removal or abandonment or grant occurs as of the end of the calendar month in which removed, abandoned or granted.
(Prior code § 21-43; Ord. 1144 § 2, 2020)
A. 
Location of Franchise Property. The location of any franchise property installed hereunder shall be first approved by the Public Works Director.
B. 
Quality Control. All franchise property installed and maintained hereunder shall be constructed in a good work-manlike manner and in conformity with all ordinances, rules or regulations now or hereafter adopted or prescribed by the City. All pipelines installed shall conform to applicable U.S.A. Standard Code for Pressure Piping, in its latest revision.
C. 
Street Excavations. The grantee shall have the right to make all necessary excavations in the streets for the purposes granted in this franchise, but nothing herein contained shall relieve the grantee from the provisions of any ordinance or law that may be in force at the time, requiring permits to be obtained for street excavations before such work is commenced.
All excavation shall be made and refilled in strict compliance with all City ordinances that may be in effect at the time of the performance of the work and shall be so made as not to interfere unreasonably with the free use of the streets by the public.
Upon completion of the work for which street excavations are made, all portions of the street which have been excavated or otherwise damaged by such excavation work shall be restored to as good condition as they were in before the commencement of such work, to the satisfaction of the Public Works Director.
D. 
Emergency Work. The grantee shall promptly repair any leaks or breaks in pipelines and conduits. If any portion of any street shall be damaged by reason of breaks or leaks in any pipe or conduit constructed under this franchise, the grantee shall at its own expense take immediate steps to repair any such damage and restore such street to as good condition as it was before such a break or leak. The repair must be done to the satisfaction of the Public Works Director. Such emergency repair of franchise property may be commenced without prior permit provided that grantee shall notify the Public Works Director and the Los Angeles County Fire Department's Hazardous Materials Division as soon as a break or leak occurs. The grantee must still apply to the Public Works Director for a permit for emergency repair work no later than the next business day from the day the emergency occurred. The grantee shall promptly remove any contamination from streets and underground soil due to breaks and leaks of grantee's pipelines or conduits. The removal of contamination must be performed to the satisfaction of the Los Angeles County Fire Department's Hazardous Materials Division. Nothing in the franchise shall be deemed to waive or release any claim the grantee may have against any third-party arising by reason of breaks or leaks in any pipe or conduit constructed under this franchise.
E. 
Changes Required by Public Improvements. If the Public Works Director shall determine that it is reasonable and necessary that franchise property be temporarily disconnected, abandoned, temporarily or permanently removed, temporarily or permanently relocated or substitute facilities installed, in order that the City, when acting in a governmental capacity, may relocate, change grade, construct, use, maintain, change or modify any street improvement or City-owned utility facilities, said Public Works Director shall give notice, in writing, to the grantee. Within 30 days after the service of such notice upon the grantee, the grantee shall at its sole cost and expense begin and diligently prosecute the necessary work to completion. Upon failure to do so, the Public Works Director may cause said work to be completed and the grantee shall immediately pay for the same upon presentation of an itemized account of the cost thereof.
In the event that any franchise property is required to be abandoned in or permanently removed from any street or portion thereof affected, the Public Works Director shall approve such additional street location or locations as may be necessary to permit the installation of substitute facilities.
F. 
Abandonment of Franchise Property. The Public Works Director, upon such terms and conditions as he may determine, may give the grantee permission to abandon, without removing, franchise property installed under the franchise. The length of any pipe line, abandoned with such permission, shall not be considered in calculating payments due under the franchise following the date the Public Works Director or designated representative has inspected and approved in writing the abandonment work. The ownership of all franchise property so abandoned shall there-after vest in the City.
(Prior code § 21-44; Ord. 1144 § 2, 2020)
A. 
Bond. This franchise is granted on the condition that the grantee shall at all times during the life of this franchise keep on file with the City a faithful performance bond running to the City in the sum of $5,000.00 executed by a reputable surety entitled to do business in the State of California. The said bond shall contain the conditions that the grantee shall well and truly observe, fulfill and perform each and every term and condition of this franchise, and that in case of any breach of any condition of said bond, the whole amount of the sum therein named shall be taken and deemed to be liquidated damages and shall be recoverable form the principal and from the sureties upon said bond. The provisions of this section shall not exempt the grantee from compliance with any of the laws of the City in force during the term thereof which required the grantee to post a bond other than the bond required by this section.
However, where the grantee desires to show other evidence of financial responsibility for faithful performance, acceptable to the Public Works Director, the above bond requirements may be waived by said Public Works Director.
B. 
Indemnification. The grantee, by the acceptances or use of the franchise hereby granted, agrees to keep and save free and harmless the City, its officers, agents, or employees against any and all claims, demands or causes of action which may be asserted, prosecuted or established against them, or any of them, for damage to persons, or property, of whatsoever nature, arising out of the use by it of the City streets hereunder or arising out of any of the operations or activities of the grantee pursuant to this franchise, whether such damages shall be caused by negligence, excepting therefrom, however, any claim, demand or cause of action, which may be asserted, prosecuted or established against the City under the provisions of the Workmen's Compensation Act for injury to, or the death of any of the City's officers, agents, or employees while acting within the scope of their employment and further excepting there-from any claim, demand, or cause of action arising out of the negligence of the City, its officers, agents, and/or employees.
C. 
Avoidance of Liability of City. The grantee shall further deposit with the City Clerk a certificate of insurance naming the City as additionally insured in connection with this franchise, in the principal amount of at least $10,000,000.00.
(Prior code § 21-45; Ord. 1144 § 2, 2020)
The grantee shall not permit any right or privilege granted by the franchise to be exercised by another, nor shall the franchise or any interest therein or any right or privilege thereunder by in whole or in part sold, transferred, leased, assigned, or disposed of except to a corporation, merger, or reorganization, or to a subsidiary of grantee, or to any person, firm or corporation without the consent of the City expressed by resolution; provided, however, that the provisions of the franchise shall not require any such consent and no consent shall be required for any transfer by the grantee in trust or by way of mortgage or hypothecation covering all or part of the grantee's property, which transfer, mortgage or hypothecation shall be for the purpose of securing an indebtedness of the grantee or for the purpose of renewing, extending, refunding, retiring, paying or canceling in whole or in part any such indebtedness at any time of from time to time. Any such sale, lease, assignment, or other disposition of this franchise, whether requiring the consent of the City or otherwise, shall be evidenced by a duly executed instrument in writing filed in the office of the City Clerk within 30 days after such sale, lease, assignment, or other disposition. In addition, if the requested assignment is to an affiliate or to a joint venture in which grantee is a partner, the City shall not unreasonably withhold its consent to such assignment.
(Prior code § 21-50; Ord. 1144 § 2, 2020)
Within 90 days following the date in which any franchise property has been installed, relocated, removed or abandoned under this franchise, the grantee shall file a map or maps in such form as may be required by the Public Works Director showing the location, length, and size of all such facilities so installed, relocated, removed, or abandoned.
(Prior code § 21-51; Ord. 1144 § 2, 2020)
This franchise is granted and shall be held and enjoyed only upon the terms and conditions herein contained, and the grantee shall, within 30 days after the adoption of ordinance codified in this article granting said franchise, file with the City Clerk of the City of Paramount a written acceptance of such terms and condition.
(Prior code § 21-52; Ord. 1144 § 2, 2020)