Chapter 8 PIPELINE FRANCHISES

Every franchise hereafter granted by the City 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, hydrocarbon substances, water, waste water, mud, steam and other liquid substances which are not more hazardous than the aforementioned substances, together with all manholes, valves, appurtenances and service connections necessary or convenient for the operation of said 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 of Carson, 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 this Chapter, in addition to those rules, regulations, restrictions, terms and conditions set forth in the ordinance granting the franchise. (Ord. 78-428, § 1; Ord. 79-495, § 1)

6802 Pole Lines.

Nothing in this Chapter or in any ordinance granting such a franchise shall be construed to permit the grantee to construct new poles or other facilities aboveground. (Ord. 78-428, § 1)

6803 Definitions.

For the purpose of this Chapter, the following terms, phrases, words and their derivations shall have the meaning given herein. 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.

a. “Council” shall mean City Council of the City of Carson.

b. “Code” shall mean the Municipal Code of the City of Carson.

c. “Chief Engineer” shall mean the Chief Engineer of the Los Angeles County Consolidated and Dominquez Fire Protection Districts.

d. “Department” shall mean the Public Works Department of the City of Carson.

e. “Director” shall mean Public Works Director of the City of Carson.

f. “Franchisee” or “Grantee” shall mean the person to whom the franchise is granted, and any person to whom it is lawfully assigned.

g. “Facilities” or “Appurtenances” shall mean all property of the Franchisee, including, but not limited to, pipelines, pump stations, and service connection 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 street pursuant to any right or privilege granted by the franchise.

h. “Franchise payment period” shall mean the time period between the effective date of the ordinance granting the franchise and June 30th or December 31st of the same calendar year, whichever is sooner; and the period between January 1st and June 30th, and July 1st and December 31st of each calendar year thereafter during the life of the franchise.

i. “Franchise report period” shall mean the time period between the effective date of the ordinance granting the franchise through and including June 30th or December 31st of that calendar year, whichever is sooner; and the period between January 1st and June 30th, and July 1st and December 31st of each calendar year thereafter during the life of the franchise.

j. “Highway Permit Ordinance” shall mean County of Los Angeles Ordinance No. 3597, as adopted by reference in the City pursuant to CMC 7100.

k. “Main” shall mean any pipeline or conduit laid in, along, or approximately parallel with any street for the collection, transmission or distribution of any substance or commodity.

l. “Major street” shall mean any street or portion thereof designated as a major Secondary Highway in the Circulation Element of the General Plan.

m. “Minor street” shall mean all streets in the City other than those designated as “Major” or “Secondary Highways” in the Circulation Element of the Carson General Plan.

n. “Person” shall mean any individual, person, firm, partnership or corporation.

o. “Section” shall mean a section of the Carson Municipal Code, unless some other Code or statute is mentioned.

p. “Service connection” shall mean 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 supply line or supply main on private property.

q. “Shall” is mandatory; “May” is permissive.

r. “Street” shall mean any street, road, highway, alley, land or court or other public easement or public place, and above and below the same, which now or may hereafter exist in the City of Carson and in which the City has the authority to grant a franchise.

s. “Supervisor” shall mean the Business License Supervisor of the City of Carson. (Ord. 78-428, § 1; Ord. 91-955, § 1)

6804 Term.

Unless the ordinance granting the franchise provides otherwise, the term of the franchise shall be twenty-five (25) years. (Ord. 78-428, § 1)

6805 Acceptance of Franchise.

The Franchisee shall, within thirty (30) days after the passage of the ordinance granting the franchise, file with the City Clerk of the City of Carson and with the Supervisor a written acceptance of the terms and conditions of said ordinance. (Ord. 78-428, § 1)

6806 Nonexclusive Franchise.

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. (Ord. 78-428, § 1)

6807 Change in Status.

If, after the granting of a franchise to other than a public utility, the Franchisee qualifies before the Public Utilities Commission of the State of California as a common carrier, the Franchisee shall then have no right to continue to operate hereunder after the date of such qualification, except with the consent of the Council, granted upon such additional terms and conditions as the Council may deem proper. Such additional terms and conditions shall be expressed by ordinance. (Ord. 78-428, § 1)

6808 Maps.

Within ninety (90) days following the date in which any facilities or appurtenances have been laid, removed or abandoned under the franchise, the Franchisee shall file a map or maps with the Department showing the accurate “as built” location, depth, and size of the facilities or appurtenances so laid, removed or abandoned. (Ord. 78-428, § 1)

6809 Insurance.

On or before commencement of any franchise operations, Franchisee shall obtain or provide satisfactory evidence of having policies of liability and worker’s compensation insurance from companies authorized to transact business in the State of California by the Insurance Commissioner of California.

A. The policy of liability insurance shall:

1. Be issued to Franchisee and name the City, and 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 coverage for:

a. Negligent acts or omissions of Franchisee and the agents, servants and employees thereof, committed in the conduct of franchise operations;

b. Provide a combined single limit liability insurance in the amount of $10,000,000.

3. Be noncancellable without thirty (30) days’ written notice thereof directed to the Supervisor.

B. The policy of worker’s compensation insurance shall:

1. Have been previously approved as to substance and form by the California Insurance Commissioner.

2. Cover all employees of Franchisee who in the course and scope 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 of California upon an injured employee, including the vocational rehabilitation and death benefits.

4. Be noncancellable without thirty (30) days’ written notice thereof directed to the Supervisor. Franchisee shall file with the Supervisor prior to commencement of any franchise operations either certified copies of said 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 and providing the following information with respect to said policy:

a. The policy number.

b. The date upon which the policy will become effective and the date upon which it will expire.

c. The names of the named insured and any additional insured.

d. Subject of the insurance.

e. The type of coverage provided by the insurance.

f. Amount of limit of coverage provided by the insurance.

g. A description of all endorsements that form a part of the policy.

Any franchise operations shall not commence until Franchisee has complied with the aforementioned provisions of this Section, and any such operations shall be suspended during any period that Franchisee fails to maintain said policies in full force and effect. (Ord. 78-428, § 1; Ord. 86-739, § 1)

6810 Faithful Performance Bond.

On or before the effective date of the ordinance granting the franchise, Franchisee shall file and thereafter at all times during the life of the franchise keep on file with the Supervisor a corporate surety bond approved by the City Attorney running to the City in the penal sum of $100,000, with a surety to be approved by the Supervisor, conditioned that 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. If said bond is not filed prior to 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 said bond and any money paid in consideration for said award of franchise shall be deemed forfeited. In the event that said bond, after it has been so filed, shall at any time during the life of the franchise become insufficient, Franchisee agrees to renew said bond, subject to the approval of the City Attorney, within ten (10) days after written notice to do so from the Supervisor. (Ord. 78-428, § 1; Ord. 86-739, § 2)

6811 Alternate Security.

In lieu of the bond required pursuant to CMC 6810, the Franchise may file alternate security provided in CMC 1400. (Ord. 78-428, § 1)

6813 Forfeiture.

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 said franchise ordinance, and shall ever be strictly construed against the grantee. Nothing shall pass thereby unless it be granted in plain and unambiguous terms. Any neglect, failure or refusal to comply with any of the conditions of the franchise shall constitute grounds for the suspension or forfeiture thereof. The Council, prior to any suspension or forfeiture of the franchise, shall give to the grantee not less than thirty (30) days’ notice in writing of any default thereunder. If the grantee 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 Council may hold a hearing, at which the grantee shall have the right to appear and be heard, and thereupon the Council may determine whether such conditions are material and essential to the franchise and whether the grantee is in default with respect thereto and may declare the franchise suspended or forfeited. Notice of said hearing shall be given to the grantee by certified mail not less than five (5) days before said hearing. (Ord. 78-428, § 1)

6814 Value of Franchise.

The grantee of any franchise awarded to a public utility, by accepting the terms and conditions thereof, stipulates and agrees that in any proceeding for the purpose of adjusting the rates of the grantee, no greater value shall be placed upon the franchise than the actual cash paid therefor by the grantee. (Ord. 78-428, § 1)

6815 State Highways.

If any street or portion thereof becomes a state highway, except for the right to continue to collect franchise payments in such other rights as by law remain with the City, the state shall succeed to all rights reserved to the City by the franchise; but this provision shall not preclude the grantee from receiving reimbursement for the relocation of its facilities if and to the extent otherwise lawfully entitled to.

This Section applies to any street or portion thereof which becomes a state highway in which the grantee maintains its facilities under the authorization of the franchise at the time such street or such portion thereof becomes a state highway, whether at such time it is under the jurisdiction of the City, or any other public entity.

This Section does not require any change of location in a state highway for a temporary purpose. (Ord. 78-428, § 1)

6816 Eminent Domain.

No franchise granted by the City shall in any way impair or affect the right of the City or any successor in authority to acquire the property of the grantee by purchase or condemnation, and nothing contained in such a franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City’s right of eminent domain in respect to any public utility. (Ord. 78-428, § 1)

6817 Publication Costs.

The grantee shall pay to the City within thirty (30) days after receiving a statement therefor, all advertising and publishing costs, including the cost of publishing the ordinance, if necessary, incurred in connection with the granting of the franchise. (Ord. 78-428, § 1)

6818 Assignment.

The grantee shall not sell, transfer, assign or lease the franchise or any part thereof, except with the consent of the Council. Such sale, transfer, assignment or lease shall be made only by filing with the Council a copy of the duly executed instrument of such sale, transfer, assignment or lease and a written request for the consent of the Council to such sale, transfer, assignment or lease. If such duly executed instrument and such written request, is not filed with the Council before the expiration of sixty (60) days after the effective date of such sale, transfer, assignment or lease, then, upon the expiration of said sixty (60) days, the franchise shall be subject to forfeiture and the 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 Council may impose such additional terms and conditions upon the franchise and upon the grantee or assignee, which the Council may deem to be in the public interest. Such additional terms and conditions shall be expressed by ordinance. Nothing herein contained shall be construed to grant to the grantee 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 a voluntary act of the grantee or otherwise. (Ord. 78-428, § 1)

6819 Prior Franchises.

All facilities erected, constructed, laid, operated or maintained by the grantee in the streets, including services connected with the grantee’s facilities, whether installed by the grantee or not, in the area described in and by virtue of the authority provided by the ordinance granting the franchise, prior to the effective date of said ordinance, except those maintained under prior right other than franchise, shall become subject to all the terms and conditions of such ordinance upon such effective date. (Ord. 78-428, § 1)

6820 City Officers.

Any right or power conferred, or duty imposed upon any officer, employee or department of the City shall be subject to transfer to any other officer, employee, or department of the City. (Ord. 78-428, § 1)

6821 Hold Harmless.

The grantee shall be responsible to the City and save the City and its officers and employees free and harmless from all damages or liability arising from the use, operation or possession of the franchise, and from the use, operation or maintenance of the facilities erected, constructed, laid, operated or maintained thereunder. (Ord. 78-428, § 1)

6822 Standards.

All facilities erected, constructed, laid, operated or maintained under the provisions of the franchise shall be erected, constructed, laid, operated or maintained in accordance with and conforming to all the ordinances, codes, rules and regulations now and hereafter adopted or prescribed by the Council. (Ord. 78-428, § 1)

6823 Conflicting Improvements.

If the City or any other public entity constructs or maintains any storm drain, sewer structure, or other facility or improvement under or across any facility of the grantee maintained pursuant to the ordinance, the grantee shall provide at no expense to the City or other public entity such support as shall be reasonably required to support, maintain and protect grantee’s facility. (Ord. 78-428, § 1)

6824 Relocation.

If the grantee after reasonable notice, fails or refuses to relocate permanently or temporarily its facilities located in, on, upon, along, under, over, across or above any highway or to pave, surface, grade, repave, resurface or regrade as required, pursuant to any provision of the franchise, the City or other public entity may cause the work to be done and shall keep an itemized account of the entire cost thereof, and the grantee shall hold harmless the City, its officers and employees from any liability which may arise or be claimed to arise from the moving, cutting, or alteration of any of the grantee’s facilities, or the turning on or off of water, oil, or other liquid, gas, or electricity.

The grantee agrees to, and shall, reimburse the City or other public entity for such cost within thirty (30) days after presentation to said grantee of an itemized account of such costs. (Ord. 78-428, § 1)

6825 Defective Facilities.

If any portion of any street shall be damaged by reason of defective facilities laid or constructed under the franchise, the grantee shall, at its own expense, repair any such defect and put such street in as good condition as it was before such damage was incurred, to the satisfaction of the City. If the grantee, within ten (10) days after receipt of written notice from the City, instructing it to repair such damage, shall fail to commence to comply with such instructions, or, thereafter, shall fail diligently to prosecute such work to completion, then the City immediately may do whatever work is necessary to carry out said instructions at the cost and expense of the grantee, which cost and expense, by the acceptance of the franchise, the grantee agrees to pay upon demand. If such damage constitutes an immediate danger to the public health or safety requiring the immediate repair thereof, the City without notice may repair such damage and the grantee agrees to pay the reasonable cost thereof upon demand. (Ord. 78-428, § 1)

6826 Hazardous Substances.

Prior to the issuance of any excavation permit for the construction or installation of any pipelines for the transmission of flammable liquids or gases, which are heavier than air, approval shall be obtained from the chief engineer. Such approval should be based on the determination that no undue fire hazard will be created to life or property in the areas through which the proposed pipeline will be located. To make such determination, consideration shall be given to:

(A) Type of commodity to be transmitted.

(B) Density of population or structural development in the area through which the pipeline will be located.

(D) Extent of available public fire protection facilities.

(E) Number and location of shut-off valves in line. (Ord. 78-428, § 1)

6827 Council Approval of Location of Facilities.

A franchise may not install or operate any facilities in any public street, highway, road, alley or other public place without first obtaining the prior approval of the City Council by Resolution. (Ord. 89-887, § 2)

6828 Damage to Public Property Generally.

Any damage done directly or indirectly to any public property by grantee, in exercising directly or indirectly any right, power, or privilege under this franchise, or in performing any duty under or pursuant to the provisions of this Section, shall be promptly repaired by grantee at its sole cost and expense. (Ord. 89-887, § 3)

Part 2. Compensation*

* Editor’s Note: Prior ordinance history: Ordinance Nos. 78-428, 83-639, 89-887, 91-955, 95-1054.

6830 Public Utilities Transmitting Oil or Products of Oil.

As consideration for the franchise granted, the Franchisee of any franchise awarded to a public utility for a pipeline system transmitting oil or products of oil, including the extension, renewal, or continuation of a previously granted franchise, shall pay to the City the following fees:

A. Base Annual Fee. A base annual fee shall be paid within sixty (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 defined in this Chapter, 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 twelve (12) inch diameter pipe as the diameter of the unlisted pipe is to twelve (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 (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) of this Section 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 (June 30, 1989 = 100), 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. Conversion on Nonpublic Utility to Public Utility. Upon expiration of a nonpublic utility pipeline transmitting oil or products of oil which franchise was effective on December 30, 1989, if the operator of such franchise has converted or seeks to convert to public utility status, all of the following must be established to the satisfaction of the City Council in accordance with Public Utilities Code Section 6231.5(f):

1. Its property is dedicated to the service of the public;

2. Its rates for transportation are established pursuant to tariffs filed with the Public Utilities Commission;

3. Its accounts and records are established pursuant to rules and regulations adopted by the Public Utilities Commission;

4. It has filed an appropriate annual report with the Public Utilities Commission; and

5. Its rates for transportation are just, reasonable, and nondiscriminatory, as evidenced either by an order of the Commission approving those rates, or an application for approval of its rates that is pending with the Commission. (Ord. 95-1054, § 1)

6831 Public Utilities Transmitting Substances Other than Oil or Products of Oil.

As consideration for the award of any franchise to a public utility for a pipeline system transmitting substances other than oil or products of oil, including the extension, renewal, or continuation of a previously granted franchise, the Franchisee must pay to the City the following fees:

A. Base Annual Fee. As provided in California Public Utilities Code Section 6231(c), the Franchisee shall pay to the City during the term of the franchise two (2) percent of the gross annual receipts of the Franchisee arising from the use, operation or possession of the franchise; but this annual payment may not be less than one (1) percent of the gross annual receipts of the franchise derived from the sale within the boundaries of the City of the utility service for which the franchise is awarded.

B. Adjustments. The City reserves the right to change the fees imposed by this Section at five (5) year intervals from the effective date of the ordinance granting the franchise, if, following a public hearing, that action is not in conflict with the laws of the State of California. (Ord. 95-1054, § 1)

6832 Nonpublic Utility.

The Franchisee of any franchise awarded to any entity other than a public utility, as further consideration for such franchise including the extension, renewal, or continuation of a previously granted franchise, shall pay to the City the following fees:

A. Base Granting Fee. In the case of an initial grant of franchise, or franchises which extend, renew, or continue previously granted franchises, a base granting fee of $7,500 for pipelines with a total length of one-quarter (1/4) mile or more or $1,600 for pipelines with a total length of less than one-quarter (1/4) mile shall be paid within thirty (30) days after the Council adopts the ordinance granting the franchise and prior to signing the written acceptance of the franchise pursuant to CMC 6805. If at any time during the first five (5) years following the grant of a franchise additional pipeline is added which will result in a total length of pipeline of one-quarter (1/4) mile or more, the $7,500 granting fee shall be required at the same time said footage is added.

B. Base Franchise Fee.

1. A base franchise fee shall be paid by the holder of the franchise to the City for the pipeline area occupied by the pipelines at an annual rate of $1.68 per cubic foot. The franchise fee shall be due and payable semi-annually, at the end of each franchise payment period, as defined in CMC 6803(h), during the life of the franchise, including the year of granting the franchise. Said franchise fee shall accrue at the end of each semi-annual period for the pipeline area occupied by the greatest number of feet of pipeline covered by the franchise during the franchise payment period. For purposes of this subsection the pipeline area occupied by a pipeline or conduit including protective covering, pipe connections, cathodic protection facilities, pipe casings and other minor appurtenances shall be taken as equivalent to the volume occupied by a cylinder of equal length having a diameter of one (1) inch (for metal pipe) or two (2) inches (for plastic pipe) greater than the nominal internal diameter of the pipe or conduit but in no case with an equivalent cylinder diameter less than four (4) inches, and the payment rate therefor shall be computed to the nearest tenth of a cent per lineal foot of pipe. Pipeline area occupied by any appurtenances such as manholes or vaults shall be computed from the outside dimensions of the structure. The semi-annual fee shall be paid no later than January 1st and July 1st of each calendar year. A penalty at the rate of ten (10) percent per month or fraction thereof beyond thirty (30) days after the payment due date shall be charged, but in no event shall said penalty exceed fifty (50) percent.

2. The City reserves the right to adjust the base fees established hereunder at any time after the effective date of the ordinance granting a franchise, but the base fees applicable to any one (1) franchise may only be changed five (5) times during the life of that particular franchise, and may only be changed in accordance with the provisions of California Public Utilities Code Section 6231.5(e).

C. Base Construction Charges. The holder of the franchise shall pay at the time of commencement of installation, relocation, or replacement of any pipeline or other facility covered by the franchise, a base construction charge of $3,384 for each one-half (1/2) mile of trench or fractional part thereof installed, replaced or relocated on major streets and $2,232 per one-half (1/2) mile of trench or fractional part thereof, on minor streets or actual cost of inspection, whichever is greater. The City reserves the right to change the base fees established hereunder at any time after the effective date of the ordinance granting a franchise, but the base fees applicable to any one (1) franchise may only be changed five (5) times during the life of that particular franchise.

D. Adjustments.

1. The amount of each base fee specified in subsections A, B and C of this Section shall be adjusted at the time payment is due by the percentage change in the Consumer Price Index, all Urban Consumers for the Los Angeles-Anaheim-Riverside area (1982-84 = 100), for the period July 1, 1991 to the date which is sixty (60) days prior to the due date of the fee.

2. In no event shall any base fee be charged which is less than the base fee amount established by subsections B and C of this Section.

3. The indices specified in paragraph 1 of this subsection D 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 (1982-84 = 100), 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. (Ord. 95-1054, § 1)

6833 Proration of Payments.

In the event of abandonment of facilities with the approval of the City as elsewhere in this Chapter provided, or in the event of removal of such facilities by the Franchisee, or in the event of the grant of a franchise with an initial franchise payment period of less than one (1) year, the annual franchise fee required under CMC 6830(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. (Ord. 95-1054, § 1)

6834 Records.

Franchisee shall keep and preserve for a period of five (5) years subsequent to the date of the most recent franchise fee determination all the records necessary to determine the amount of such franchise fee.

At all reasonable times, the Franchisee shall permit the City or its duly authorized representative to examine all property of the Franchisee erected, constructed, laid, operated or maintained pursuant to the franchise, together with any appurtenant property of the Franchisee, and to examine and transcribe any and all books, accounts, papers, maps, and other records kept or maintained by the Franchisee or under its control which concern the operations, affairs, transactions, property or financial condition of the Franchisee with respect thereto. Said records shall be made available to the City at a location in the County of Los Angeles. (Ord. 95-1054, § 1)

Part 3. Construction

6840 Construction Requirements.

Pipelines and appurtenances shall be constructed and maintained in good workmanlike manner in conformity with the terms and conditions of the Highway Permit Ordinance, or any other ordinance, rule or regulation, now, or as hereafter amended, adopted or prescribed by the City. All pipes laid under the franchise shall be of first class material. All pipelines and appurtenances will be installed in accordance with the latest revision of the “American Standard Code of Pressure Piping ASA B31.4” and the Highway Permit Ordinance. (Ord. 78-428, § 1)

6841 New Installation or Replacement.

New installation or replacements of pipelines and appurtenances and all other facilities necessary for the installation, operation, maintenance, and safety of pipelines and conduits shall be laid and maintained only pursuant to permit issued by the Department. All such installations or replacements shall be reviewed by the Director as to the most desirable location in the streets of the City and his decision shall be final and binding on the Franchisee. (Ord. 78-428, § 1)

6842 Permits.

Where the provisions of the Highway Permit Ordinance, or the provisions of any other ordinance, rule or regulation, which shall be in force at the time, require the issuance of an excavation, encroachment or other type of permit, the Franchisee shall not commence any excavation or encroachment work under the franchise until it shall have obtained such permit from the Department except in cases of emergency affecting public health, safety or welfare or the preservation of life or property, in which case the Franchisee shall apply for such permit not later than the next business day.

The application of the Franchisee for such permit shall show the following facts: the length and proposed location of the pipeline and/or appurtenance intended to be used, and such other facts as the Department may require. The Franchisee shall pay any and all permit inspection fees to the Department. (Ord. 78-428, § 1)

6843 Work on and Restoration of Streets.

The work of constructing, laying, replacing, maintaining, repairing or removing all pipelines and appurtenances authorized under the provisions of this Chapter in, over, under, along or across any street shall be conducted with the least possible hindrance to the use of the street for purposes of travel, and as soon as such work is completed, all portions of the street which have been excavated or otherwise damaged thereby shall promptly and in a workmanlike manner be repaired, replaced or restored and placed in as good condition as the same was before the commencement of such work. Such restoration, repair or replacement work may, as determined by the Director, require the resurfacing, slurry scaling or other treatment of the street or streets to a minimum of one (1) driving lane, and all such work shall be done to the satisfaction of the Director at the expense of the Franchisee, in accordance with the terms and conditions of the Highway Permit Ordinance.

In the event that the Franchisee shall fail or neglect to make such highway repair, replacement, or restoration work, then ten (10) days after notice therefor has been given Franchisee by the Director, the City may repair, replace or restore said highway at the expense of Franchisee. Franchisee agrees to pay to the City the cost of performing such work. The amount so chargeable shall be the direct cost of such work plus the current rate of overhead being charged by the City for reimbursement work. (Ord. 78-428, § 1; Ord. 86-739, § 3)

6844 Failure to Timely Comply.

In the event that the Franchisee fails to complete the work within the time specified in the permit, the City may require the Franchisee to pay to the City not more than $200.00 per day as liquidated damages for each day construction extends beyond the time specified in the permit.

Whenever the Franchisee fails to complete any work required by the terms and conditions of the Franchise, and the permits issued thereunder, within the time limits required thereby, the City may complete or cause to be completed any and all such work at the expense of the Franchisee. The Franchisee agrees to pay to the City the cost of performing such work. The amount so chargeable to Franchisee shall be the direct cost of such work plus the current rate of overhead being charged by the City for reimbursable work. (Ord. 78-428, § 1)

6845 Completion Statement.

Upon the completion of the construction of any pipelines or appurtenances constructed pursuant to said franchise, the Franchisee shall submit a statement of the Supervisor, identifying the permit or permits issued by the Department, the total length of pipeline, the construction of which was authorized under such permit or permits, and the total length of pipeline or appurtenance actually laid. (Ord. 78-428, § 1)

6846 Responsibility.

The Franchisee shall be responsible to the City and shall save the City, its officers, agents, and employees, free and harmless from all damages or liability arising from any damage or injury suffered by any person by reason of any excavation or obstruction being improperly guarded during any work authorized pursuant to the franchise or the failure or neglect of the Franchisee to properly perform, maintain, or protect any phase of such work. (Ord. 78-428, § 1)

6847 Appurtenances.

The Franchisee shall have the right to construct, maintain and repair such traps, manholes, conduits, valves, appliances, attachments and appurtenances (hereinafter collectively referred to as “appurtenances”) as may be necessary or convenient for the proper maintenance and operation of the pipelines under said franchise, and said appurtenances shall be kept flush with the surface of the street and so located as to conform to any ordinance, rule or regulation of the City, or of any permit issued by the Department in regard thereto and shall not interfere with the use of the street for travel. The Franchisee shall have the right subject to such ordinances, rules or regulations as are now or may hereafter be in force, to make all necessary excavations in said streets for the construction, maintenance and repair of said appurtenances; provided, however, that the Franchisee shall first obtain an excavation permit from the Department for doing of any such work. (Ord. 78-428, § 1)

6848 Ordinary Repair.

The Franchisee shall be privileged to excavate in the road or street for line repair for the number of days agreed upon by the Franchisee and the Department; provided, however, that the Franchisee shall first obtain an excavation permit from the Department for the doing of any such work. (Ord. 78-428, § 1)

6849 Relocation of Pipelines and Appurtenances.

A. The City reserves the right to change the grade, to change the width or to alter or change the location of any street over which the franchise is granted. If any of the pipelines, facilities or appurtenances heretofore or hereafter constructed, installed or maintained by the Franchisee pursuant to the franchise on, along, under, over, in, upon or across any street are located in a manner which prevents or interferes with the change of grade, traffic needs, operation, maintenance, improvements, repair, construction, reconstruction, widening, alteration or relocation of the street, the Franchisee shall relocate permanently or temporarily any such facility at no expense to the City upon receipt of a written request from the Director to do so, and shall commence such work on or before the day specified in such written request which date shall be not less than thirty (30) days from receipt of such written request. Franchisee shall thereafter diligently prosecute such work to completion.

B. The City reserves the right for itself, and all other public entities which are now or may later be established, to lay, construct, repair, alter, relocate and maintain subsurface or other facilities or improvements of any type or description in a governmental but not proprietary capacity within the streets over which the franchise is granted. If the City or any other public entity finds that the location or relocation of such facilities or improvements conflicts with the facilities laid, constructed or maintained under the franchise, whether such facilities were laid before or after the facilities of the City or such other public entity were laid, the Franchisee of such franchise shall at no expense to the City or public entity, on or before the date specified in a written request from the Director, which date shall be not less than thirty (30) days after the receipt of such notice and request to do so, commence work to change the location either permanently or temporarily of all facilities so conflicting with such improvements to a permanent or temporary location in said streets to be approved by the Director and thereafter diligently prosecute such work to completion. If such street be subsequently constituted a state highway, while it remains a state highway the rights of the State of California shall be as provided in Section 680 of the Streets and Highways Code of the State of California. (Ord. 78-428, § 1)

6850 Breaks or Leaks.

If any portion of the street shall be damaged by reason of breaks or leaks in any pipe, conduit, or appurtenance constructed or maintained under the franchise, the Franchisee thereof shall, at its own expense, immediately following written or oral notification thereof, promptly repair any such damage and put such street in as good condition as it was in before such damage or leak, all to the satisfaction of the Department. The Franchisee shall obtain an excavation permit from the Department for the doing of any such work. (Ord. 78-428, § 1)

6851 Emergency Equipment.

At all times during the term of this franchise, the Franchisee shall maintain or arrange for, on a twenty-four (24) hour a day basis, adequate emergency equipment and a properly trained emergency crew within a radius of twenty-five (25) miles from any facilities installed or maintained pursuant hereto for the purpose of shutting off the pressure and the flow of contents of such facilities in the event of an emergency resulting from an earthquake, act of war, civil disturbance, fire, flood, or any other cause or nature whatsoever. (Ord. 78-428, § 1)

6852 Removal or Abandonment of Facilities.

A. At the expiration, revocation or termination of this franchise or upon the permanent discontinuance of the use of all or a portion of its facilities, the Franchisee shall, within thirty (30) days thereafter, make written application to the Director for authority, as determined by the Franchisee, either: (1) to abandon all or a portion of such facilities in place; or (2) to remove all or a portion of such facilities. Such application shall describe the facilities desired to be abandoned or removed by reference to the map or maps required by CMC 6808 and shall also describe with reasonable accuracy the physical condition of such facilities.

B. The Director shall determine whether the abandonment or removal which is thereby proposed may be effected without detriment to the public interest and under what conditions such proposed abandonment or removal may be safely effected. The Director shall then notify the Franchisee of his determination. The Franchisee shall pay to the City the cost of all tests required to determine the disposition of the application for abandonment or removal.

C. Within thirty (30) days after receipt of such notice, the Franchisee shall apply for a permit from the Department to abandon or remove all or a portion of the facilities and shall pay all fees and costs related thereto. Said permit shall contain such conditions of abandonment or removal as may be prescribed by the Director. Any abandonment shall be conditioned, in part, upon Franchisee’s compliance with the provisions of CMC 6849(A) and (B).

D. The Franchisee shall, within ninety (90) days after obtaining such permit, commence and diligently prosecute to completion the work authorized by the permit.

E. If the Franchisee applies for authority to abandon all or a portion of its facilities in place, and the Director determines that abandonment in place of all or part of the facilities may be effected without detriment to the public interest, the Franchisee shall pay to the City a fee which shall be computed as follows:


Pipelines with an Internal Diameter of	Amount Per Lineal Foot
0 – 12 inches	$15.00
14 – 18 inches	22.00
20 – 30 inches	28.00

(Ord. 78-428, § 1; Ord. 87-777, § 1)

6853 Failure to Comply.

A. If any facilities to be abandoned “in place” subject to prescribed conditions shall not be abandoned in accordance with all such conditions the Director may make additional appropriate orders, including an order that the Franchisee shall remove any or all such facilities. The Franchisee shall comply with such additional orders.

B. In the event that the Franchisee shall fail to comply with the terms and conditions of abandonment or removal as may be required by this Chapter and within such time as may be prescribed by the Director, then the City may remove or cause to be removed such facilities at the Franchisee’s expense. The Franchisee shall pay to the City the cost of such work plus the current rate of overhead being charged by the City for reimbursable work.

C. If, at the expiration, revocation or termination of this franchise, or of the permanent discontinuance of the use of all or a portion of its facilities, the Franchisee shall, within thirty (30) days thereafter, fail or refuse to make written application for the abovementioned authority, the Director shall make the determination as to whether the facilities shall be abandoned in place or removed. The Director shall then notify the Franchisee of his determination. The Franchisee shall thereafter comply with the provisions of CMC 6852(C) and (D). (Ord. 78-428, § 1; Ord. 87-777, § 2)

6854 Abandonment “In Place” Conditions.

Facilities abandoned “in place” shall be subject to the condition that if, at any time after the effective date of the abandonment, the Director determines that the facility may interfere with any public project, Franchisee or its successor in interest must remove the facility at its expense when requested to do so by the City or to pay City for the cost of such removal. (Ord. 78-428, § 1)

Part 4. Special Provisions for Oil Pipelines

6860 Rights Granted.

The Franchisee granted an oil pipeline franchise shall have the right during the life thereof to transport oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances through the pipelines maintained under the franchise. If the Franchisee or assignee later qualifies before the Public Utilities Commission of the State of California as a common carrier, the Franchisee or assignee shall then have no right to continue to operate hereunder after the date of such qualification except with the consent of the Council, granted upon such additional terms and conditions as the Council may deem proper. Such additional terms and conditions shall be expressed by ordinance. (Ord. 78-428, § 1)

6861 Materials Used.

All pipelines used or to be used for the 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 pipeline specifications. (Ord. 78-428, § 1)

6862 Approvals.

On all pipelines laid pursuant to the franchise, the Chief Engineer shall approve where flush-valve connections shall be placed in the line. The availability of adequate water supplies, the commodity transmitted in the line, and the location of control valves shall be considered when making such determination. Such flush-valve connections shall be installed in the manner prescribed by the Chief Engineer. (Ord. 78-428, § 1)

6863 Reports.

The Franchisee during the life of the franchise, within ninety (90) days after the expiration of each franchise payment period, shall:

A. File with the Supervisor two (2) copies of a report verified by the oath of the Franchisee or by the oath of a duly authorized representative of the Franchisee showing for the immediately preceding franchise period, the length of lines in streets, the internal diameter of such lines, the rate per foot per year and the total amount due the City.

B. File with the Supervisor a report in triplicate, showing the permit number of each permit obtained for the installation of new mains during the immediately preceding franchise payment period, together with the length and size of said mains. On this report the Franchisee shall show any change in franchise footage since the last franchise payment period segregating such footage as to new mains laid, old mains removed, old mains abandoned in place, and the footage of mains in territory annexed or incorporated since the last franchise payment period. (Ord. 78-428, § 1)

6864 Payments Due.

Except for pipelines lawfully maintained other than by the authority granted by the franchise, the semi-annual payments shall accrue from the respective dates of installation, whether before or after the effective date of the ordinance granting the franchise, and such payments shall be due and payable semi-annually. (Ord. 78-428, § 1; Ord. 91-955, § 5)

6865 Nonapplicability.

CMC 6860, 6863, and 6864 do not apply to public utilities. (Ord. 78-428, § 1)

Part 5. Special Provisions for Water and Other Public Utility Pipelines

6870 Rights Granted.

The Franchisee granted a franchise for domestic water service shall have the right, during the term of period covered by the franchise and subject to the terms thereof, to make service connections with all property adjoining streets and to furnish and distribute water through said pipes and pipelines to all the City territory in the City adjacent to said pipes and pipelines for any purpose. (Ord. 79-495, § 1)

6871 Plan Approval.

All new pipelines, replacements, and extensions for domestic water service shall be constructed, laid, and designed according to plans approved by the Chief Engineer. (Ord. 79-495, § 1)

6872 Condition of Approval.

The Chief Engineer shall approve such plans if the pipelines to be laid, extended or replaced are so designed in conjunction with related facilities, and the location of fire hydrants comply with required domestic demand and fire flows indicated by the Board of Fire Underwriters. (Ord. 79-495, § 1)

6873 Exception.

The Chief Engineer may grant an exception to the requirements of CMC 6872 where there are practical difficulties or unnecessary hardships in the way of carrying out the strict letter of said section, and in the granting of such exception the spirit of said section will be observed, public safety secured, and substantial justice done. (Ord. 79-495, § 1)

6874 Fire Hydrants.

As further consideration for the granting of the franchise, the Franchisee shall, at the request of the Chief Engineer, install at no cost to the City (except a reasonable monthly rental), or to any County fire protection district, fire hydrants at such places along the Franchisee’s water mains covered by the Franchise as may be designated by the Chief Engineer. (Ord. 79-495, § 1)

6875 Supervisor.

The Franchisee of any franchise awarded to a public utility or a mutual water company shall file with the Supervisor for each franchise payment period, within ninety (90) days after such period, two (2) copies of a report verified by the oath of the manager, or any responsible officer of the Franchisee (except where the Franchisee is an individual, in which case the report shall be verified the oath of the Franchisee) showing the total gross receipts of the Franchisee for the 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 is necessary in the opinion of the Supervisor to calculate or verify the calculation of the annual payment required by CMC 6830(A) (or the pro rata portion thereof for the first period if less than one (1) year) and which payment shall be paid concurrently with the filing of the statement. In the event the amount paid is incorrect in the judgment of the City, it may order the payment of such additional sum as it may find thereunder; and if not paid, or if paid under protest the same may be determined by suit. (Ord. 79-495, § 1)

6876 Report to Supervisor.

Within ninety (90) days after the expiration of each franchise report period, the Franchisee shall file with the Director a report in triplicate, 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 said mains. On this report the Franchisee shall show any change in franchise footage since the last franchise report period, segregating such footage as to new mains laid, old mains removed, old mains abandoned in place, and the footage of mains in territory annexed or incorporated since the last franchise. (Ord. 79-495, § 1)

6877 Payments.

The Franchisee, during the life of the franchise, shall make annual payments to the City as provided in CMC 6830(A), (C), and (D). (Ord. 79-495, § 1)

Part 6. Special Provisions
for Gas Pipelines

6880 Rights Granted.

The Franchisee shall have the right, during the period covered by the franchise and subject to the terms and conditions thereof, to make service connections with all property in the City adjoining streets and to furnish and distribute gas through said pipes and pipelines to all territory in the City adjacent to said pipelines for any purpose. (Ord. 78-428, § 1)

6881 Approval.

On all pipelines carrying gas heavier than air laid pursuant to the franchise, the Chief Engineer shall approve where flush-valve connections shall be placed 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. Such flush-valve connections shall be installed in the manner prescribed by the Chief Engineer. (Ord. 78-428, § 1)