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2854FOLLOWS: ORDINANCE NO. 2854 AN ORDINANCE OF THE CITY OF ANAHEIM GRANTING A FRANCHISE TO TEXACO INC. TO INSTALL, OPERATE AND MAINTAIN PIPE LINES FOR THE TRANSPORTATION OF OIL, GAS, GASOLINE, PETROLEUM, WET GAS, HYDRO- CARBON SUBSTANCES, WATER AND WASTE WATER IN, UNDER AND ACROSS ALL PUBLIC STREETS AND HIGHWAYS NOW OR HEREAFTER DEDICATED TO PUBLIC USE IN THE CITY OF ANAHEIM. THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES ORDAIN AS SECTION 1: NATURE OF GRANT: A. EXTENT OF GRANT: The City of Anaheim hereinafter also referred to as "City", hereby grants to Texaco Inc., 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 forty (40) years from and after the effective date of this ordinance, to install, operate, maintain, replace, change the size of, abandon in place and/or remove pipe lines for the transportation of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water and waste water, together with all appurtenances and service connections necessary or con- venient to properly maintain and operate said pipe lines, including cathodic protection facilities, and also including appurtenances and equipment for power and communication lines necessary or convenient for the Grantee's business, herein- after collectively called "franchise property", within the public streets, highways, alleys and other public ways or public property, hereinafter collectively called "streets", of the City of Anaheim, as enumerated and described in Exhibit "A", on file in the Office of the City Clerk and which is made a part of this franchise, and such other "streets" as may be authorized in accordance with the pro- visions of Subsection B of Section 1 hereof. B. AUTHORIZATION TO USE ADDITIONAL STREETS: Grantee is hereby authorized to use other streets within the City for the purposes for which this franchise is granted, provided (a) that all facilities constructed and maintained in such other streets shall be subject to all of the provisions of this franchise, and (b) that this specific location of such facilities be approved by the Director of Public Works. SECTION 2: DURATION OF FRANCHISE: This franchise shall expire forty (40) years from and after the effective date hereof unless sooner terminated, by ordinance, as herein provided. City reserves the right to terminate this franchise prior to its expiration date in the event: (a) Grantee fails to comply with any provision hereof; provided, however, that if such failure of compli- ance shall be due to a cause beyond the reasonable control of Grantee, the franchise shall not be so -1- terminated. In the event Grantee shall default in the performance of any of the terms, covenants or conditions herein and such default is curable, 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, City may terminate this franchise. (b) The time within which Grantee is obligated to com- mence, 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, lock- outs, war, threats of war, insurrection, invasion, acts of God, calamities, violent action of the elements, fire, action or regulation of any govern- mental agency, law or ordinance, impossibility of obtaining materials, or other things beyond the reasonable control of Grantee. The City shall give the Grantee 10 days' notice of an_y termination proceedings. SECTION 3: CONSTRUCTION A. LOCATION OF FRANCHISE PROPERTY: The location of any franchise property installed hereunder shall be first approved by the Director of Public Works. B. QUALITY CONTROL: All franchise property installed and maintained hereunder shall be constructed in a good workmanlike manner and in conformity with all ordinances, rules or regula- tions now or hereafter adopted or prescribed by the City. All pipe lines installed shall conform to applicable U.S.A. Standard Code for Pressure Piping, in its latest revision. C. STREET EXCAVATIONS: 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 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 excavations 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 excava- tions are made, all portions of the streets 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 wort-:, to the satisfaction of the Director of Public Works. -2- D. EMERGENCY WORK: The Grantee shall promptly repair any leaks or breaks in pipelines and conduits and, 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 break or leak, to the satisfaction of the Director of Public Works. Such emergency repair of franchise property may be commenced without prior permit; provided, however, that Grantee shall, by not later than the next normal working day, apply to the. Director of Public Works for a permit authorizing such emergency work. E. CHANGES REQUIRED BY PUBLIC IMPROVEMENTS: If the Director of Public Works shall determine that it reasonable and necessary that franchise property be temporarily disconnected, abandoned, temporarily or perman- ently 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 Director of Public Works shall give notice, in writing, to the Grantee. With 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 Director of Public Works 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 Director of Public Works shall approve such additional street location or relocations as may be necessary to permit the installation of substitute facilities. F. ABANDONMENT OF FRANCHISE PROPERTY: The Director of Public Works, upon such terms and conditions as he may determine, may give Grantee permission to abandon, without removing, franchise property installed under the franchise. The length of any pipe line or pole line, abandoned with such permission, shall not be considered in calculating payments due under the franchise following the date the Director of Public Works or his designated representative has inspected and approved in writing the abandonment work. The ownership of all franchise property so abandoned shall thereafter vest in the City. SECTION 4: MAPS AND RECORDS: Within six months 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 Director of Public Works showing the location, length and size of all such facilities so installed, relocated, removed or abandoned. -3- SECTION 5: COMPENSATION TO THE CITY; As consideration for the franchise hereby granted, Grantee shall make annual payment to the City, in lawful money of the United States, at the rate of one-half cent (1/24) per inch of nominal internal diameter per foot of pipe line, and Twenty-five dollars ($25.00) per mile of pole line or conduit, installed and maintained in streets pursuant to this franchise. The annual payments shall be made on or before the lst day of February (commencing with February 1, 1971) for the year ending the preceding December 31, 1970. In the event any facility shall have been subject to the terms of this franchise for only a fractional part of the preceding year ending December 31, 1970, the payment therefor shall be computed in the proportion which the number of days in the fractional part bears to 365. The annual payment shall be accompanied by a report, showing the lengths of pipe lines, pole lines and/or conduits maintained under the franchise, the nominal internal diameter of the pipe lines, the applicable payment rates, and the total amount due. The above annual payment rates shall be adjusted at the end of each five year period following December 31, 1970, for the next succeeding 5 -year period, upward or downward as the case may be, to the nearest 1/100 of a cent, in the same ratio as the Wholesale Price Index -All Commodities (1.957-1959=100) published by the United States Department of Labor, Bureau of Labor Statistics, for the month of December in the preceding calendar year, shall have varied upward or downward from the same for the month of December, 1970. If the Bureau shall discontinue the preparation of an index of wholesale prices (all commodities) using prices prevailing in the years 1957-1959, inclusive, as a base of 100, and if no transposition table prepared by the Bureau is available so as to make those statistics which are then available applicable to the years 1957-1959, inclusive, then the City shall prescribe rates of payment which shall, in the judgment of the City, vary from the hereinabove specified amounts in approximate proportion as wholesale prices (all commodities) then current vary from the wholesale prices (all commodities) in the aforesaid month of December, 1970. Upon this point, the judgment of the City shall be final and conclusive. SECTION 6: GUARANTEE AND RESPONSIBILITY: 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 run- ning to the City in the sum of $1,000.00 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 from -4 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 Director of Public Works, the above bond requirements may be waived by said Public Works Director. B. INDEMNIFICATION: The Grantee, by the acceptance 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 here- under or arising out of any of the operations or activities of the Grantee pursuant to this franchise, whether such damage 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 Workman'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 therefrom any claim, demand or cause of action arising out of the negligence of the City, its officers, agents and/or employees. SECTION 7: ASSIGNMENT: 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 be in whole or in part sold, transferred, leased, assigned, or disposed of except to a corporation acquiring or owning a portion of the assets of the grantee, through consolidation, merger, or reorganization, or to a subsidiary of grantee, or to any person, firm or corporation having assets of more than Five Million Dollars ($5,000.000.00), without the consent of the City expressed by resolution; pro- vided, however, that the provisions of the franchise shall not require any such consent and no consent shall be required for any transfer by Grantee in trust or by way of mortgage or hypothecation covering all or any part of Grantee's property, which transfer, mortgage or hypothecation shall be for the purpose of securing an indebtedness of Grantee or for the purpose of renewing, extending, refunding, retiring, paying or cancelling in whole or in part any such indebtedness at any time or from time to time. Any such sale, lease, assign- ment, or other disposition of this franchise, whether requir- ing 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 thirty (30) days after such sale, lease, assignment or other disposition. SECTION 8: ACCEPTANCE: This franchise is granted and shall be held and enjoyed only upon the terms and conditions herein contained, -5- and the Grantee shall, within 30 days after the adoption of this ordinance granting said franchise, file with the City Clerk of the City of Anaheim, a written acceptance of such terms and conditions. SECTION 9: The City Clerk shall certify to the passage of this ordinance and shall cause the same to be printed once within fifteen (15) days after its adoption, in the Anaheim Bulletin, a newspaper of general circulation, printed, published and cir- culated in said City, and thirty (30) days from and after its final passage it shall take effect and be in full force. THE FOREGOING ORDINANCE is approved and signed by me this 1st day of September , 19 70 d U;2 MAYPR OF THE CITY OF ANAHEIM ATTEST: 4 " CITY CLERK OF THE CITY OF ANAHEIM -6- FAL/ms=8-31-70 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, DENE M. WILLIAMS, City Clerk of the City of Anaheim, do hereby certify that the foregoing Ordinance No. 2854 was introduced at a regular meeting of the City Council of the City of Anahelm, held on the 25th day of August, 1970, and that the same was duly passed and adopted at a regular meeting of said City Council held on the 1st day of September, 1970, by the following vote of the members thereof: AYES: COUNCILMEN: Clark, Stephenson, Pebley, Thom and Dutton NOES: COUNCILMEN: None ABSENT: COUNCILMEN: None AND I FURTHER CERTIFY that the Mayor of the City of Anaheim approved and signed said Ordinance No. 2854 on the 1st day of September, 1970. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim this 1st day of September, 1970. ITY CLERK OF THE CITY OF ANAHEIM (SEAL) I, DENE M. WILLIAMS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original Ordinance No. 2854 and was published once in the Anaheim Bulletin on the 11th day of September, 1970. City Clerk