Torrance Daily Breeze, DB 4-81 Franchise Grant City of Redondo Beach NOTICE OF INTENTION TO CONSIDER GRANTING A FRANCHISE NOTICE IS HEREBY GIVEN that Pacific Pipeline System LLC, hereafter referred to as Grantee, has requested that the City of Redondo Beach enter into an agreement for a non-exclusive pipeline franchise for a period of ten (10) years from and after the date upon which the franchise shall become effective, to lay, construct, maintain, operate, repair, renew, change the size of, remove or abandon in place, a 16 inch crude oil pipeline known as Line 93 for the transportation of industrial gas, gasoline, petroleum oil, gas, other hydrocarbon substances, water, waste water, mud, steam, and other liquid or gas substances incidental to the oil industry, together with all manholes, valves, service connections and appurtenances necessary or convenient for the maintenance and operation of said pipeline in, under, along and across the public streets, ways, alleys and places within the City, in such a manner as not to inconvenience the public's use of the streets. If the franchise is granted to it, Grantee will pay to the City the following common carrier fees: A. Base Granting Fee. A base granting fee of seven thousand five hundred dollars ($7,500). B. Base Annual Fee. A base annual fee shall be paid within ninety (90) 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 in the following amounts: Pipelines With an Internal Amount Per Diameter of Lineal Foot 0-4 inches $0.088 6 inches 0.132 8 inches 0.176 10 inches 0.220 12 inches 0.264 14 inches 0.308 16 inches 0.352 18 inches 0.396 20 inches 0.440 22 inches 0.484 24 inches 0.528 26 inches 0.572 28 inches 0.616 30 inches 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. 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 agreement during the calendar year for which payment is due will be utilized. The number of lineal feet for purposes of this calculation shall be 1558 feet. The base annual fee shall be paid not later than ninety (90) days following the end of the calendar year and a penalty at the rate of two percent (2%) per month or fraction thereof beyond the payment date shall be charged, but in no event shall said penalty exceed fifty percent (50%). C. Adjustments. The annual payment for each lineal foot of pipeline shall be computed and revised each calendar year as follows: (1) The applicable base rate shall be multiplied by the Consumer Price Index for All Urban Consumers in the Los Angeles Riverside Orange County 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, which is declared to be 100.0. Under no circumstances shall the multiplying factor be less than one. (2) If the United States Department of Labor, Office of Information discontinues the preparation or publication of a Consumer Price Index for All Urban Consumers in the Los Angeles Riverside Orange County area, and if no translation table prepared by the Department of Labor is available so as to make those statistics which are then available applicable to the index of June 30, 1989, the City shall prescribe a rate of payment which shall, in its judgment, vary from the rates specified in this section in approximate proportion as commodity consumer prices then current vary from commodity consumer prices current in December 1988. On this point, the determination by the City shall be final and conclusive. D. Publication and Administrative Issuance Costs. The Grantee shall pay to the City $5,000 as the processing fee for such agreement. The City Council of the City of Redondo Beach proposes to consider granting such non-exclusive pipeline franchise for a period of ten (10) years from and after the date upon which the franchise shall become effective, or until it is voluntarily surrendered or abandoned by the Grantee, or until the State or some municipal or public corporation purchase by voluntary agreement or condemns and takes under the power of eminent domain, all property actually used and useful in the exercise of the franchise and situated within the territorial limits of the State, municipal, or public corporation purchasing or condemning such property, or until such franchise is forfeited for noncompliance with its terms by Grantee. NOTICE IS FURTHER GIVEN, that any and all persons having any objection to the granting of said franchise may appear before the City Council in the Council Chambers located at the Redondo Beach City Hall, 415 Diamond Street, Redondo Beach, California, at 6:00 p.m. on May 10, 2016 and be heard thereon; and at any time not later than the hour set for hearing objections, any person interested may make written protest stating objections against the granting of said franchise, which protest must be signed by the protestant and be delivered to the City Clerk of said City. The City Council at the time set for hearing said objections shall proceed to hear and pass upon all protests so made. ELEANOR MANZANO, CITY CLERK Published: April 25, 2016
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