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ORDINANCE N0. 133 (1959 Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
LUIS OBISPO GRANTING TO UNION OIL COMPANY OF CALIFORNIA,
A CORPORATION, ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE
AND PRIVILEGE FROM TIME TO TIME TO CONSTRUCT, MAINTAIN
OPERATE, RENEW, REPAIR, CHANGE THE SIZE AND NUMBER OF AND
REMOVE PIPELINES, TOGETHER WITH TELEPHONE, TELEGRAPH AND
ELECTRICAL POWER LINES NECESSARY OR CONVENIENT FOR THE
GRANTEE'S BUSINESS, IN, UNDER, OVER, ALONG OR ACROSS ANY
AND ALL PUBLIC STREETS, HIGHWAYS AND OTHER PUBLIC'WAYS
NOW OR HEREAFTER DEDICATED TO PUBLIC USE IN THE CITY OF
SAN LUIS OBISPO.
The City Council of the City of San Luis Obispo, in the County of San Luis
Obispo, State of California, does ordain as follows:
SECTION 1:' NATURE OF GRANT: That the right, franchise and privilege be and
the same hereby is granted to Union Oil Company of California, a corporation, its
successors and assigns, for a period of twenty -five (25) years from and after the
effective date of this franchise, from time to time to construct, maintain, operate,
renew, repair, change the size and number of and remove or abandon in place pipelines
for the transportation of petroleum, liquid hydrocarbon substances, gas, gasoline,
water, waste water, mud,steam and other substances, together with all manholes, valves,
service connections and appurtenances necessary or convenient to properly maintain
and operate said pipelines, including facilities necessary for cathodic protection
of said pipelines, and together with poles, conduits, wires, cables and other
appurtenances and equipment for telephone, telegraph and electrical power lines
necessary or convenient for the grantee's business, in,under, over, along or across
any and all public streets, roads, alleys, highways, and other public ways now or
hereafter dedicated to public use in the City of San Luis Obispo.
SECTION 2: DEFINITIONS: (a) The word "Grantee" as used herein shall mean
and include the Grantee, its successors and assigns.
(b) The words "said streets" herein shall mean and include all the public
highways, streets, roads, alleys and other public ways within the City of San Luis Obispo.
(c) The words "franchise property" herein shall mean all property constructed,
maintained or operated pursuant to this franchise in any of said streets, including
pipelines, pole lines or conduits, and all appurtenant equipment.
(d) The words "said City" herein shall mean the City of San Luis Obispo in
the County of San Luis Obispo, State of California.
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SECTION 3: TERM: The term of this franchise shall be for a period of twenty-
five (25) years from and after the date on which this ordinance becomes effective.
SECTION 4: ACCEPTANCE: Said franchise and privilege shall be granted upon
the terms and conditions herein contained and those prescribed by law. The Grantee
shall, within ten (10) days from and after the final passage of this ordinance grant-
ing said franchise, file with the City Clerk of said City a written acceptance of
said terms and conditions. Said written acceptance shall contain the Grantee's
agreement to abide and be bound by said terms and conditions.
SECTION 5: EXCAVATIONS: The Grantee shall have the right, subject to all
applicable ordinances and regulations of said City as are now or hereafter may be
in force, to make all necessary excavations or other encroachments in said streets
for the laying, construction, maintenance, operation, renewal and removal of franchise
property.
SECTION 6: PERMITS: The Grantee shall not commence the work of laying,
constructing or removing any franchise property under the provisions of this franchise
until it shall first have obtained an Excavation Permit from the Department of Public
Works of said City. Said Excavation Permit shall show the said streets upon which
it proposes to lay or construct said franchise property, the specifications of the
franchise property and such other facts as said Department of Public Works may require.
The location of said franchise property shall be subject to the approval of the City
Engineer to avoid interference with present or proposed sewers, water lines, other
conduits and the traveling public. Said permits shall be issued upon payment of a
fee of 10(,% per foot and the work shall be done to the satisfaction of the City Engineer
and subject to his inspection. No permit other than those necessary for emergency
repairs shall be issued on any street that has been surfaced within two years prior
to the application. This franchise shall not relieve the Grantee from thelprovisions
of any ordinance or law that may be in force at the time requiring permits to be
obtained for street excavations nor prevent the Council from changing the permit fees.
SECTION 7: OPERATIONS: All franchise property to be laid, constructed and
operated under this franchise shall be built and constructed in a good workmanlike
manner and of first class materials and shall be located or maintained under this
franchise so as not to interfere with the use of said streets by the traveling
public or for public purposes. In constructing, installing and maintaining said
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franchise property, the Grantee shall make and backfill all excavations in such.
a manner as to leave the surface of said streets in as good condition as the same
was in prior to said excavation, and to the satisfaction of said Department of Public
Works.
SECTION 8: RELOCATION: Said City reserves the right to imppove, change the
grade of, widen or reconstruct any of said streets or portions thereof, and there
is further reserved to the said City the right to construct, reconstruct, install,
repair and maintain in any of said streets, any public improvement.
Upon the giving of notice in writing to the Grantee, at least thirty (30)
days in advance of the fact that the work is to be done pursuant to any right reserved
hereinabove in this section, specifying the general nature of the work and the area
in which the same is to be performed, then the Grantee shall do all things necessary
to protect its franchise property during the progress of such work and if ordered
by the City Council of said City, the Grantee shall temporarily disconnect or
temporarily remove, or shall relocate the franchise property within said streets, to
such extent and in such manner, and for such period as shall be necessary to permit
the performance of such work in an economic manner, and in accordance with generally
recognized engineering and construction methods and to permit the maintenance, operation
and use of such public improvement or of said streets or portions thereof as so
improved. All such things to be done and work to be performed by the Grantee shall
be at the sole cost and expense of the Grantee.
In the event that said City shall hereafter construct, install, reconstruct
or repair any bridge or artificial support in or underlying any of said streets in
which the Grantee's franchise property is located, and in the event that the cost
of such work as may be reasonably required is increased in order to provide for the
installation, maintenance or operation of Grantee's franchise property in or on the
area covered by or underlain by said bridge or other artifidal support, then the
Grantee shall pay to said City the full amount of such increase of cost upon completion
of such construction, installation or repair.
SECTION 9: REPAIRS: Any damage done directly or indirectly to any of said
streets or public improvements by the Grantee, in exercising directly or indirectly
any right or privilege under this franchise, or in performing any duty under or
pursuant to the provisions of this franchise, shall be promptly repaired by said
Grantee, at its sole cost and expense and to the satisfaction of said City.
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SECTION 10: COMPLIANCE: If the Grantee shall fail to comply or to commence
and diligently proceed toward compliance with any instructions of the City Council
of said City or Department of Public Works of said City with respect to the location
of any of said franchise property or the repair of any damage to said streets or any
public improvement within thirty (30) days after the service of written notice upon
the Grantee requiring compliance therewith, then the said City Council may immediately
do whatever work is necessary to carry out the instructions at the cost and expense
of the Grantee, which cost by the acceptance of this franchise the Grantee shall pay
upon demand.
SECTION 11: INDEMNIFICATION: The Grantee shall hold said City, its authorized
officers, agents and employees, harmless from and against any and all liability or
loss resulting from claims for damages by any person arising out of acts or omissions
of the Grantee, its agents or employees, in the performance of any work authorized
by this franchise.
SECTION 12: ABANDONMENT: Upon request of the Grantee, the City Council of
said City, upon such terms and conditions as it may see fit to impose, may grant
the Grantee the right to abandon -in -place without removing any pipelines laid or
maintained under this franchise.
SECTION 13: ASSIGNMENT: Except as hereinafter provided in this Section, the
Grantee shall not sell, transfer or assign this franchise or any of the rights and
privileges granted hereby without the consent of the City Council of said City;
provided, however, that no such consent shall be required for any transfer in trust,
mortgage, sale and lease -back, or other hypothecation, to secure an indebtedness.
SECTION 14: PAYMENTS: The Grantee shall, during the life of this franchise,
make annual payments to.said City for the franchise hereby granted, in lawful money
of the United States, at the rate of $125.00 per mile of pipeline and $30.00 per mile
of pole line or conduit heretofore or hereafter installed and maintained and not
abandoned in place in said streets by virtue of the authority granted by this franchise
or any franchise superseded by this franchise. Said annual payments shall be made
on or before the 31st day of August of each year (commencing with August 31, 1959)
for the twelve months' period ending on the preceding June 30th. In the event any
franchise property shall have been subject to the terms of this franchise for only
a fractional part of said twelve months' period, the payment therefor shall be computed
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in the proportion which the number of days in the said fractional part of the twelve
months' period bears to 365.
The annual payment,shall be accompanied by two copies of a statement, verified
by the oath of a duly authorized representative of Grantee, giving the total length
of pipelines, pole lines and /or underground conduits on which the annual payment is
due, the rate per mile and the total amount due.
SECTION 15: PRIOR FRANCHISES: This franchise ordinance shall, upon its
effective date, terminate and supersede Franchise Ordinance No. 158 of said City,
passed by the City Council of said city.on September 7, 1909, granting a franchise to
Producers Transportation Company, Grantee's predecessor in interest, which franchise
is now held by Grantee; and any and all other franchises held by Grantee within the
presently incorporated area of said City. Further, the Grantee's acceptance of this
franchise shall constitute a continuing agreement of Grantee that if and when sild
City shall hereafter annex, or consolidate with, additional territory, any'and all
franchises owned by Grantee therein shall likewise be abandoned within the limits
of such territory, and Grantee's.facilities installed under such abandoned franchises
within such annexed territory shall come under the terms and conditions of this franchise.
SECTION 16: FORFEITURE: Any neglect, failure or refusal to comply with any
of the conditions of this franchise, which neglect, failure, or refusal shall continue
for more than thirty (30) days following notice thereof to the Grantee from said
City, shall be grounds for a forfeiture hereof, and said City by its City Council,
may thereupon declare this franchise forfeited, and may exclude said Grantee from
further use of said streets under this franchise; and said Grantee shall thereupon
surrender all rights in and to the same, and this franchise shall be deemed to be
and shall remain null, void'and of no effect.
SECTION 17: FRANCHISE BOND: The grant of this franchise is,effective only
upon the further condition that Grantee shall at all times during the life of this
franchise keep on file with the City Clerk of said City a bond running to said City
in the penal sum of One Thousand Dollars ($1,000.00) by a corporate surety, don -
ditioned that the Grantee shall well and truly observe, fulfill and perform each
and every term and condition of this franchise, and all ordinances or said City,
and in case of any breach of the conditions of such bond and this franchise, that
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portion of the penal sum - therein named, up to the maximu, equal to the fair amount
of the damages'resulting from such breach, shall be taken and deemed to be liquidated
damages and shall be recoverable from the principal and surety, or sureties, upon
such bond.
SECTION 18: SUCCESSORS AND ASSIGNS: The provisions of this franchise and all
rights, obligations and duties hereunder shall inure to and be binding upon the
Grantee, its successors and assigns.
SECTION 19: EFFECTIVE DATE: This ordinance, together with the ayes and noes,
shall be published once in full, at least three days before its final passage, in the
Telegram- Tribune, a newspaper published and circulated in said City, and the same
shall go into effect at the expiration of thirty days after its final passage.
INTRODUCED AND PASSED TO PRINT this 8th day of September 1959,
by the following roll call vote:
AYES: Kenneth W. Jones, Donald Q. Miller, Gerald W. Shipsey, J. Barry Smith,
Fred M. Waters
NOES: None
ABSENT: None
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ATTEST:
My TWO
Mayor
FINALLY PASSED this 21 day of September , 1959, by the following
vote:
AYES: Donald Q. Miller, Gerald W. Shipsey, J. Barry Smith, Fred M. Waters
NOES: None
ABSENT: Kenneth W. Jones
ATTEST:
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Ci Clerk -
Mayor