Resolution No. 1803
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RESOLUTION NO. 1803
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A RESOLUTION OF THE Crry COUNCIL OF THE CrrY OF VEQON
AUTHORIZING THE EXECUTIQNOF A LICEliSE AGltEEKENT WITH
THE 1UCl::LJ!~LDQIL CORPORATION.
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7 WREItEAS. the Richfield Oil Corporation has requested the
THE CITY COUNCIL QF THE CI't'YOF VERNON RESQLVES. AS FOLLOWS:
8 City of Vernon to execute a License Agreement for the laying, construct..
9 ing. maintaining, USe and operation of single line of steel pipe for the
10 transportation of petroleum.oi1..ga.soline. ga.s. and water. together with
11 all manholes., valves.. and other appurtenances necessa.ry for the operation
12 of such pipeline in certain streets of the City of Vernon; and
13 WHERE.A8,the City Cou~cil of the City of Vernon desires to
14 execute such an agreement with the Richfield Oil Corporation;
15 No.W.. THEREFORE. BE IT RESOLVED.:
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SECTION 1: That the Mayor a.nd the .City Clerk of the City
17 of Vernon be. and they are hereby authorized and instructed to exeeu.te a
18 License Agreement between the City of V ernonand the Richfield Oil
19 Corporation,. in form attached to this Resolution as Exhibit "A".
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SECTION 2:
The City Clerk of the City of Yernonshall
21 certify to the passage .of thi.s Resolution .and thereupon and the.reafter the
22 .same shall be in full force a.nd effect.
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ADOPTED and APPROVED this 18th da.y of January
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City Clerk
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1 $T ATE. OF CALIFOB.Nl.A )
) ss.
2 COUNTY OF LOS ANGELES )
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I" G. A. A!f.DERSOl'{, City Clerk of the City of Vernon"
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do hereby certify that the foregoing Res(}luUon No. 1803
was
6 dulyad.opted by the City Council. of the City of Vernon,. a.nd approved
7 by the'Ma.yorofsaid City at a regular meeting thereof held on
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January 18,
1955.
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City Clerk
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LICENSE AGREEMENT
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3 The City of Vernon, a municipal corporation, as Licensor.
4 hereinafter referred to as First Party. and the Richfield Oil Corporation,
5 its successors and assigns, Licensee, hereinafter referred to as Second
6 Party. do hereby agree as follows:
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1.
First Party hereby grants to Second Party a license for a
8 term of twenty-five (25) years. from and after the date of this license.
g to lay,. construct. maintain. use and operate a single line of steel pipe.
10 not less than four (4) inches nor more than six (6) inches internal diam,eter.
11 for the transportation of petroleum. oil. gasoline, gas, and water. to-
12 gether with all manholes. valves, and other appurtenances necessary for
13 the operation of such pipeline in. along, across and under the streets of
14 the City of Vernon, herein described:
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In
From
Downey Road City Boundary at
14 ft East of Exist- Fruitland Ave.
ing Centerline
Leoms Boulevard
10 It North of
Centerline
14 ft East of Exist-
ing centerline of
Downey Road
10ft North of center-
line of Leonis Blvd.
Soto Street
26th Street
Southwesterly line
of Los Angeles County
Flood Control Dis..
trict Right of Way
15 it South of Center-
line of 26th Street
Harriett Street
To
10 It. north of centerline
of Leonis Blvd.
6 ft west of centerline of
Soto Street
North line of Vernon Ave;
then angle to 25 it west of
centerline of Soto St. to
approximately .10 It north of
Southwesterly line of Los
Angeles County Flood Control
District Right of Way, South
of L. A. River
15 ft southerly of centel' -
line of 26th 5t., thence to
18.5 ft westerly of centerline
of Harriett St.
City Boundary South of 25th
Street. at 18.5 it west of
centerline of Harriett St.
In the event that existing pi.pelines. structures or other conditions
not apparent on the surface of said streets should render it impra.ctica.ble
to construct. lay, maintain, or operate said pipeline at the locations herein-
above set forth, the City Engineer shall designate an alternate location within
EXHIBIT "A" "1-
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said streets as close as 1s practicable to saId locations above set forth
at which to place said pipeline and the Une shall be constructed. laid.
maintained and operated in suchalterute location.
2. This license is granted subject to the terms and conditions
hereinafter contained:
3. The Second Party shall file with the City Clerk of the City of
Vernon within ten (l U) days after the adoption of the Resolution granting
the license a written acceptance ot the License Agreement.
4. The Second Party, its successors and assigns,sball not com-
mence the construction of any pipeline or appurtenances under the pro-
visions of this license until it sball first have obtained a permit from the
City of Vernon so to do. Such permit will be granted upon application of
Second Party, its successors or assigns, which application shall show the
following facts: A plan and profile of the proposed pipeline within the
boundaries of the public streets in the City of Vernon on a scale oiforty
(40) feet per inch hOrizontally and tour (4) feet per inch vertically; and to
show thereon the size. location, and description of the pipes. pipeline,
and appurtenances to be used in the construction of the pipeline. and such
other facts as the City Council of the City of Vernon may require.
5. Second Party . its succe.ssors and assigns. shall have the
privilege. subject to such laws, ordinances, and regulations as are now or
m.ay hereafter be in force, to make all necessary excavations in the
streets designated by this license for the construction. maintenance, opera..
tion, renewal, repair, change in the size of within the limits as to sbes
as set forth in this license, and removal of the pipeline constructed. main-
tained, or reconstructed under tbis license. Said pipeUne and .appurtenance.s
shall be maintained in first-class condition, to the satisfaction of the City
of Vernon, and Second Party. its successors and assigns, shall not
excavate in any street without having received a permit therefor from the
City of Vernon.
6. SeeondParty, its successors and assigns. shall assume full
refJponsibility for any damage whatsoever, either to the City of Vernon.
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to any of its officers or e.mployees. or to others. and shall hold them
free and harmless from any claim or claims for damage or injury flutfered
by any person or persons by reason of any excavation or obstruction in
said streets occasioned by the conat rucUon. maintenance, operation, re...
newal~ repair, chauSing the size of, and/or removal of the p.tpellne
constructed under tbis lieense; and any sueh damage or injury veichmay
be occasioned by reason of breaking or leaking of said pipeUne, and appur-
tenances . and shall at its own eost and expense elean up and remove any
and aU spillage from auch break or leak aa may be directed by the City
of Varnon.
7. Second Party. its succesaors and assigns, shall at its OWn cost
and expense repair, maintain. safeguard. support, and/or relocate said
pipeline. andappurt.enanees. across or along the trench or excavation in
said streets during construction or reconstruction of sub-surface structures
of any kind or description. the installation of which is being done under
authority ot the City of Vernon; and ShaU, at its own cost and expense.
lower Or otherwise relocate said pipeline. and appurtenances. should such
be required by reason ot change in official grade or grades of any street
or streets within the limits of this license.
8. Second Party. its successors and assigns. shall promptly repair
at its own cost and expense any damage caused to any street or other
public property of the City of Vernon by reason of any breaks. leaks. or
failure of the pipeline constructed. maintained. or operated under this
ltceDSe to the eatisfacUon of City Council of the City of Vemon; and if
Second Party shall fail to comply with any instructions of' said City Council
relative thereto within ten (10) days after the service of written notice
upon Second Party requiring compliance therewith. then said City Council
may immediately do wlultever work is necessary to carry out said instruct-
ions at the cost and expense of saId Second Party. which costs by the accept..
ance.of this license.. said Second Party agrees to pay upon demand.
9. The work of constructing and laying said pipeline, and appurtenances.
shaUbe. commenced in good faith within not more than four (4) months from
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1 the granting of the license, and shall be continuously prosecuted thereafter
2 in good faith and without unnecessary or avoidable internlission or delay.
3 It' not so commenced the license may be declared :forfeited.
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10.
No propane or butane ps shall be t':E'ansported in the pipeline
5 laid. constructed, maintained and operated under the license nor shall
6 any component. product or derivative of petroleum be so transported if
7 the flash point. Reed vapor pressure or volatility range exceed the I1mits
8 hereinafter specified, to wit:
9 Flash point: At normal or ambient tem.peratures
Reed vapor pressures: 7 to 11 psi
V olatiUty range: Initial boiting point: 1000 F.
Final boiling point: 4000 F.
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The proposed gasoline pipeline system shall be equipped with
14 flow recording equipm.ent with continuous telem.eterlng transmission of
15 these recordings to the pipeline dispatchers on twenty...four (24) hours duty.
16 This equipment shall. at aU times. be so adjusted that any appreciabl~
1 7 leakage from or rupture of tbe line will be immediately detected by the ells...
18 patcher. Upon occurrence of a leak or rupture~ the dispatcher shall
19 immediately have aU pumping stopped. In case of a serious earthqua.ke
20 or disaster. pUn'lp operations shan be suapended immediately. Only after
21 iii. tborough physical check of the entire pipelin~ within the City of Vernon
22 by :rtla.intenance crew of Second Party shan pumping operations be resumed.
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12.
Seeond Party, its succes.sors and assigns. shall. at aU times.
keep the City of Vernon informed as to where gra.ntee~s dispatcher may be
contacted by telephone and/or otherwise by City of Vernon Fire Depart...
ment and Police Department.
13. The pipes to be laid and maintained under this license shall be
seamless steel. Grade 42-X pipe, manufactured to American Petroleum
Institute Specifieation:! 5LX. or equal. The exterior surface of the tiTle
pipe shall be coated with asphaltmaatic to protect it against eorrosion and
electrolysis. Su:i.table cathodic protection equipment shall also be installed
as an a.dditional precautionary mea.sure in the event of minor defects
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(1. e.. holidaye) in the protective coating.
14. . Second Party, its successora and assigns. shall provide
necessary protection tc prevent backflow through the pipeline and/or from
any tank or tanks connected thereto at or near the northerly boundary of
the City of Vernon by installation ot check valve or check valves u may be
needed.
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15.
In the event Second Party. its successors and assigns, shall
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fail to operate the pipeline covered by this license for a consecutive per.iod
of six (6) months. during any period of Ume after it bas been placed in
operation. the City Council of the City of Vernon shall have the right,at
its discretion. to declare this license forfeited.
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16.
Second Party, its successors and assigns, shall not sell.
transier. assign or lease said license. or any part thereof,. or any of the
rights or privileges granted thereby, except by a duly executed instrument
in writing. filed in the office of the City Council of the City of Vernon. and
nothing in sa.id license contained shan be construed to grant to Second Party,
its au cces.sor$ and tiUisigna. any right to sell. transfer or assign or lease
said license or any of the rlghtsor privileges thereby granted except in
the manner afore.said.. Second Party :may not assign its duties hereunder.
and may not assign its rights hereunder to a public utility.
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Second pa.rty shall. cluring the Ufe of this license. pay to the
Cityo! Vernon. in lawful nloney of the United state$. the sum of Eight
Hundred and no/100 - - Dollars ($800. oo).annuaUy in a.dvance on the
1st. day of. Februa.r;y of each year hereafter during the term of this license
agreement.
18. In the event theSecend Party shall fail to keep. fulfill or per..
form any of the te.rrrJ,s or conditions of this license and shalt fail to remedy
such default within thirty (30) days after notice from the City. the City
Council may. at its option exercised by resolution or ordinance. declare
this license forf'eited.. Upon such a declaration of forfeiture this license
shall be deemedea.ncet1ed and terminated and all of the rights andprivi1eges
of the Second Party under this license shall be deemed surrendered and
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1 terminated and the City may thereafter exclude Second Party from
2 further use of the streets under this license.
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In the event of' the termination of' this license for any cause,
4 Second Party shall, at its own cost and expense, remove the pipeline.
5 manholes. valves. appurtenances and service connections from the streets.
6 unless permission is granted by the City Council to Second Party to abandon
7 the facilities in place. This provision shall not be applicable during such
8 I period as Second Party may be negotiating with the City of VernOn for
9 renewal of this license.
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The grant of this licensets effective only upon the further con...
11 dition that Second Party. upon the acceptance of'this license. shall file
12 with and shall thereafter at aU times during the life of this license keep on
13 file with the City Council of the City of Vernon a faithful performance bond
14 running to said City of Vernon in the penal sum. of Twenty...Five Thousand
15 Dollars ($25,000.00)., with a corporate surety approved by said City
16 Council. and conditioned that said Second Party, its successors and assigns.
1 7 shall well and truly observe, fulfill. and perform each term and condition
18 of the license. and that in case of any breach ofcondltions of the license
19 the whole amount of the penal sum therein named shall be deemed to be
20 liquidated damages j and shall be recoverable from the principal and sureties
21 upon the bond.
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Second Party. its successors and assigns. shall secure and
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keep in full force and effect at all times dUring the term hereof a policy or
poliCies of public liability and property damage insurance, written by a
company or companies authorized by the State of California to do business
within said State and approved by the City Council of the City of Vernon.
in. which policieS the City and its officers and employees shall be named
as beneficiaries. in the following amounts:
General public liability insurance in the limits of
$500,000.00 for injury to or death of one person.
General pUblic liability insurance in the limits of
$1.000,000.00 for injury to or death of persons
occasioned by any one accident or occurrence.
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Property damage insurance including property
of the City of Vernon in the amount of $1.000.000.00.
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Second Party. its successors and assigns. shall. upon demand.
file with the First Party certified copIes or certificates e"lfidencing such
insurance then in force which copies of policies or certificates shall be
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6 subject to the approval of the City Attorney as to form..
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Second Party represents and warrants that it will use the
8 rights herein granted solely for the private transportation of petroleum
9 and related products and not as a public utility.
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Executed in duplicate this
day of January. 1955.
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CITY OF VERNON. a municipal
corporation
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By
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Mayor
ATTEST:
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City Clerk
First Party
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RICHFIELD OIL CORPORATION
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By
(SEAL)
President
By
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Secretary
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