Los Angeles County Municipal Code Part 1 General Provisions and Definitions

Chapter 16.52 of this Division 3A shall be known as, and may be cited as, "the pipeline franchise ordinance, Part 1."

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 100, 1978.)

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.

"Board" means board of supervisors of the county of Los Angeles. If any territory covered by the franchise comes within the limits of any incorporated city, then as to such incorporated area, "board" means the legislative body of such city.

B.

"County" means the county of Los Angeles, state of California.

C.

"Director" means the chief administrative officer, county of Los Angeles.

D.

"Facilities" or "appurtenances" means all property of the franchisee, including, but not limited to, pipelines, pump stations, and service connections 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 highway pursuant to any right or privilege granted by the franchise.

E.

"Department" means the chief administrative office, county of Los Angeles.

F.

"Franchisee" or "grantee" means the person to whom the franchise is granted, and any person to whom it lawfully may be assigned.

G.

"Franchise payment period" is:

If the franchise grants to a public utility or to a mutual water company a right not theretofore in existence, and is for a purpose involving the furnishing of any service or commodity to the public or any portion thereof, the sixth year after the effective date of the ordinance granting the franchise, or, at the option of the franchisee, any shorter period of time immediately following the expiration of five years after the effective date of said ordinance, and each year thereafter, during the life of the franchise;

In all other cases, including franchises granted to public utilities or mutual water companies for a purpose not involving the furnishing of any service or commodity to the public or any portion thereof, the first year after the effective date of the ordinance granting the franchise, or, at the option of the franchisee, any shorter period of time immediately following the effective date of the said ordinance, and each year thereafter, during the life of the franchise.

H.

"Franchise report period" in all cases means the first year after the effective date of the ordinance granting the franchise, or, at the option of the franchisee, any shorter period of time immediately following the date of said ordinance, and each year thereafter, during the life of the franchise.

I.

"Highway" means any public highway, freeway (except a state freeway), street, road, alley, lane or court or other public easement, and above and below the same, which now exists or which may hereafter exist in any unincorporated territory of the county and in which the county has the authority to grant a franchise.

J.

"Main" means any pipeline or conduit laid in, along or approximately parallel with any highway for the collection, transmission or distribution of any substance or commodity.

K.

"Person" means any individual, person, firm, partnership or corporation.

L.

"Public entity" means any district or other political subdivision of which the board is ex officio the governing body, or the members of the board are ex officio members of the governing body.

M.

"Road commissioner" means road commissioner of the county of Los Angeles. If any highway becomes a state highway, or if any territory covered by the franchise comes within the limits of any incorporated city, then as to such state highway or such incorporated area, "road commissioner" means the commission, board or officer of the state, or of such city, respectively, having powers and duties analogous or similar in such jurisdiction, respectively, to the powers and duties of the road commissioner in the unincorporated territory of the county.

N.

"Road department" means the road department of the county of Los Angeles.

O.

"Section" means a section of the ordinance codified in this chapter and Chapter 16.54, unless some other ordinance or statute is mentioned.

P.

"Service connection" means 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.

"Ordinance No. 3597" means county of Los Angeles Ordinance No. 3597, entitled "Highway Permit Ordinance," adopted May 28, 1940, and as subsequently amended, codified in Division 1 of this title, or the provisions of whatever superseding or

supplementary ordinance which is in force at that time.

(Ord. 95-0052 § 62, 1995: Ord. 11696 § 1 (part)—Part 1 Art. 1 § 104, 1978.)

The provisions of this Division 3A, insofar as they are substantially the same as existing ordinance provisions relating to the same subject matter, shall be construed as restatements and continuation thereof, and not as new enactments.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 102, 1978.)

In addition to the terms and conditions herein, the franchise is granted under the same terms and conditions contained in Sections 16.36.010, 16.36.130, 16.36.150, 16.38.040, 16.38.050, 16.38.120, 16.38.130, 16.38.150, 16.38.160, 16.38.250 through 16.38.350, 16.38.380 through 16.38.400, 16.38.450, 16.38.460 and Chapter 16.40 of Division 3 of Title 16, as if they were contained in this Division 3A. In the event the terms and conditions conflict with the terms and conditions of Division 3 cited above, the terms and conditions hereof shall control.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 103, 1978.)

Except as hereinafter provided in Chapter 16.54 of this Division 3A, every franchise hereafter granted by the county to lay or construct from time to time and for the period covered by the franchise, 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, petroleum, gas, gasoline or other hydrocarbon substances, wet gas, chemicals, mud, steam, water, wastewater, other liquid substances, for any purpose, together with all manholes, valves, appurtenances and service connections necessary or convenient for the operation of said pipes or pipelines, including poles, conduits, wires, cables and other appurtenances and equipment for telegraph or telephone lines, or both, necessary or convenient for the franchisee's business, in, under, along or across any and all highways, 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 16.52, in addition to such of the terms and conditions of Chapters 16.36, 16.38 and 16.40 of Division 3 of this title as are incorporated by reference in this chapter, and in addition to those rules, regulations, restrictions, terms and conditions set forth in the ordinance granting the franchise.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 101, 1978.)

Unless the ordinance granting the franchise provides otherwise, the term of the franchise shall be 25 years.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 105, 1978.)

The franchisee shall, within 30 days after the passage of the ordinance granting the franchise, file with the executive officer- clerk of the board a written acceptance of the terms and conditions of said ordinance; provided, however, that as to franchises granted to the United States of America, use will constitute acceptance.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 106, 1978.)

The granting of the franchise shall not be construed to prevent the county 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 county now in effect or which may be hereafter adopted which are not inconsistent with the terms of the franchise.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 107, 1978.)

If the franchisee qualifies before the Public Utilities Commission of the state of California as a public utility, the franchisee shall then continue to exercise its franchise rights on the basis of a public utility without the necessity of applying for a new franchise hereunder, and franchisee shall thereafter be subject to all terms and conditions of this ordinance as are applicable to franchisees who are also public utilities.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 108, 1978.)

A.

On or before commencement of any franchise operations, franchisee shall obtain or provide satisfactory evidence of having policies of liability and workers' compensation insurance from companies authorized to transact business in the state of California by the Insurance Commissioner of California.

The policy of liability insurance shall:

a.

Be issued to franchisee and name the county, its officers, agents, and employees, as additional insured;

b.

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 therefore, including but not limited to:

i.

Negligent acts or omissions of franchisee and the agents, servants and employees thereof, committed in the conduct of franchise operations,

ii.

Provide a combined single limit liability insurance in the amount of $1,000,000, subject to self-insured retention as is normal and prudent in the franchisee's similar operations,

iii.

Be noncancellable without 45 days' written notice thereof directed to the director.

The policy of workers' compensation insurance shall:

a.

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

b.

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;

c.

Provide for every benefit and payment presently or after conferred by Division 4 of the Labor Code of the state of California upon an injured employee, including the vocational rehabilitation and death benefits;

d.

Provide for every benefit and payment under any option of the Federal U.S. Long Shoreman and Harbor Worker Compensation Act, paying particular attention to Public Law 92.572;

e.

Be noncancellable without 30 days' written notice thereof directed to the director;

f.

In lieu of the policy of workers' compensation insurance required above, franchisee may substitute and provide a certificate of consent to self-insure, issued by the Director of Industrial Relations of the state of California.

B.

Franchisee shall file with the director, 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.

C.

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. 11696 § 1 (part)—Part 1 Art. 1 § 109, 1978.)

Within five days after 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 director a corporate surety bond running to the county, and also to any incorporated city or public entity which may become entitled to the benefits herein reserved in the franchise by virtue of future incorporations or annexations, in the penal sum of $10,000.00, or such other sum as may be specifically provided for in the ordinance granting the franchise, with surety to be approved by the director, 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 within five days after 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, in the opinion of the director, become insufficient, franchisee agrees to renew said bond, with sureties to be approved by the director, within 10 days after written notice to do so from the director.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 110, 1978.)

As an alternate to the filing of a bond, the franchisee may deposit with the director and assign to the county savings and loan certificates or shares, or both, in the same amount as required on such bond, subject to all of the provisions of county Administrative Code provisions set out at Chapter 4.36 of this code.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 111, 1978.)

A.

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 franchisee. Nothing shall pass thereby unless it be granted in plain and unambiguous terms. Any neglect, failure, or refusal by the franchisee to comply with any of the conditions of the franchise shall constitute grounds for the suspension or forfeiture thereof. The board, prior to any suspension or forfeiture of the franchise, shall give the franchisee not less than 10 days' notice in writing of any default thereunder.

B.

If the franchisee 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 board may hold a hearing, at which the franchisee shall have the right to appear and be heard, and thereupon the board may determine whether such conditions are material and essential to the franchise and whether the franchisee is in default with respect thereto and may declare the franchise suspended or forfeited. Notice of said hearing shall be given to the franchisee by certified mail not less than five days before said hearing.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 112, 1978.)

A.

The franchisee shall not sell, transfer, assign or lease the franchise or any part thereof, except with the consent of the board. Such sale, transfer, assignment or lease shall be made only by filing with the board a certified copy of the duly executed instrument of such sale, transfer, assignment or lease and a written request for the consent of the board to such sale, transfer, assignment or lease. If such duly executed instrument and such written request is not filed with the board before the expiration of 30 days after the effective date of such sale, transfer, assignment or lease then, upon the expiration of said 30 days, the franchise shall be subject to forfeiture and the board may, without notice, by ordinance, repeal the franchise. As a condition to the granting of consent to such sale, transfer, assignment or lease, the board may impose such additional terms upon the franchise and upon the grantee or assignee which the board 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 franchisee 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 voluntary act of the franchisee, or otherwise.

B.

No such consent shall be required to any transfer of the franchise in trust or by way of mortgage or hypothecation with all or a part of franchisee's other property for the purpose of securing any indebtedness of franchisee.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 113, 1978.)

The franchisee during the life of the franchise, within 60 days after the expiration of each franchise payment period shall;

A.

If the franchisee is a public utility or mutual water company subject to the provisions of subsection B of Section 16.52.200, the franchisee shall:

a.

File with the county auditor-controller two copies of a report verified by the oath of the franchisee or by the oath of a duly authorized representative of the franchisee showing the total gross receipts of the franchisee for the immediately preceding

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 reasonably necessary, in the opinion of the county auditor-controller, to calculate or verify the calculation of the annual payment required by subsection B of Section 16.52.200 (or the pro rata amount thereof for the first period if the first period is less than one year);

b.

On this report, the franchisee shall also 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 payment period;

a.

File with the road commissioner a report in duplicate, 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;

b.

In those cases where the annual franchise payment is not required during the first five years, the report shall, nevertheless, be filed annually as stated above, during the first five-year period as well as thereafter.

B.

If the franchisee is subject to the provisions of subsection C of Section 16.52.200, the franchisee shall:

a.

File with the county auditor-controller two 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 highways, the nominal internal diameter of such lines, the rate per foot per year, and the total amount due the county;

b.

On this report, the franchisee shall also 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;

File with the road commissioner a report in duplicate 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.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 114, 1978.)

Notwithstanding the granting of a franchise, the franchisee shall not be authorized to do any work under the franchise for which the issuance of a permit is required unless such a permit is issued for such work. The franchisee shall not have an absolute right to the issuance of such a permit.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 115, 1978.)

Unless the ordinance granting the franchise provides otherwise, the franchise shall authorize the exercise of the rights and privileges granted by the franchise, in, under, along or across any and all highways now or hereafter dedicated to public use in the unincorporated area of the county.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 116, 1978.)

A.

Franchisee shall indemnify and hold county harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, including reasonable attorneys' fees, regardless of the merit or outcome of any such claim or suit, claimed or arising from any negligent or intentional act or omission of franchisee, its officers, employees, agents, or subcontractors, arising from activities or work conducted pursuant to the franchise.

B.

Franchisee shall indemnify, defend and save harmless the county, its officers, agents and employees from and against any and all claims and losses whatsoever, including reasonable attorneys' fees, accruing or resulting to any and all persons, firms or corporations furnishing or supplying work, services, materials, equipment or supplies in connection with activities or work conducted or performed pursuant to the franchise and arising out of such activities or work, and from any and all claims and losses whatsoever, including reasonable attorneys' fees, accruing or resulting to any person, firm or corporation for damage, injury or death arising out of franchisee's franchise operations.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 117, 1978.)

If any provision of the franchise or the application of the franchise to any person or circumstance is held invalid by a court of competent jurisdiction, or is not in compliance with any requirement of the Public Utilities Commission or any other federal or state agency, the remainder of the franchise, or the application of the franchise to persons or circumstances other than those to which it is held invalid or not in such compliance shall not be affected thereby.

(Ord. 11696 § 1 (part)—Part 1 Art. 1 § 118, 1978.)