ORDINANCE NO. 1272

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SIMI VALLEY GRANTING THE RENEWAL OF A PETROLEUM PRODUCTS PIPELINE FRANCHISE TO CRIMSON CALIFORNIA PIPELINE, L.P.

WHEREAS, THE City Council of the City of Simi Valley, California (hereinafter referred to as “City Council”) declared its intent to consider the renewal of a petroleum products pipeline franchise application from Crimson California Pipeline Company, L.P. (hereinafter referred to as “CRIMSON”) for that portion of the 4” petroleum pipeline and a 12” petroleum pipeline which run through the City of Simi Valley and are part of the Los Angeles Basin Gathering System Pipeline through adoption of Resolution No. 2017-18; and

WHEREAS, pursuant to Resolution No. 2017-18 and Section 6201 et. seq. of the California Public Utilities Code, the City Clerk published notice of the passage of Resolution No. 2017-18 which indicated the time and place for the hearing on objections or protests to the granting of the petroleum products pipeline franchise; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES ORDAIN AS FOLLOWS:

SECTION 1. On June 12, 2017, at the date and time fixed for the public hearing and pursuant to the requirements for notification in the California Public Utilities Code Section 6201 et. seq., the City Council held a public hearing to consider objections or protests by any interested person against the granting of the petroleum products pipeline franchise.

SECTION 2. At the time set for hearing protests, the City Council heard and passed upon all protests and determined the protests to be insufficient and/or overruled or denied them.

SECTION 3. The City Council hereby grants a franchise to CRIMSON for the right, franchise and privilege from time to time to maintain, operate, repair, renew, change the size of and remove or abandon in place the petroleum products pipeline as is currently in the City of Simi Valley, the location of which is shown on the attached Exhibit A, incorporated herein by this reference.

SECTION 4. Said franchise shall be for a term of twenty-five (25) years from and after the date upon which such franchise becomes effective.

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SECTION 5. CRIMSON as franchisee agrees to perform all routine and extraordinary maintenance and repair on all above and below ground facilities and shall be liable for any and all damage resulting from the activities and facilities of the franchise and shall be bound by all duties and liabilities of the Grantee as provided by Public Utility Code Section 6291 et. seq. CRIMSON shall cooperatively schedule any operation or maintenance activities under this franchise that require the destruction and replacement of street pavement with the City Engineer.

SECTION 6. The pipelines and appurtenances shall be operated, maintained, replaced or repaired in accordance with all applicable federal and/or state standards for the construction of intrastate pipelines as set forth in federal laws, rules or regulations and shall be used to transport petroleum products only. Whenever there is a conflict in the federal or state standards, the more stringent standard will prevail.

SECTION 7. The pipeline and appurtenances shall be operated, maintained, replaced or repaired in conformity with all ordinances, rules or regulations in effect at the time of granting of this franchise, or as prescribed by the City Council, and in accordance with the terms and conditions of any permit issued by the City Engineer.

SECTION 8. Except in an emergency, CRIMSON shall not excavate in a City street right-of-way without having first applied for and obtained an Encroachment Permit from the City. CRIMSON shall pay any fees (including inspection) required by such permit. As soon as any pipeline work is completed, all portions of the streets excavated or otherwise damaged thereby shall be placed in as good condition as they were before the commencement of such work, to the satisfaction of the City Engineer. All street repair work shall be made by CRIMSON at the expense of CRIMSON in accordance with the ordinances of the City and the conditions of the Encroachment Permit issued therefor.

SECTION 9. CRIMSON acknowledges that, as of the date of adoption of this Ordinance, the Moorpark Pipeline of the Los Angeles Basin Gathering System has been purged and is filled with nitrogen. Furthermore, CRIMSON agrees to notify the City Manager not less than 90 days in advance of its intention to reactivate the pipeline for its approved use.

SECTION 10. Within thirty (30) days after the effective date of this franchise, CRIMSON shall furnish to the City Clerk evidence of insurance applicable to all operations conducted under this franchise and including the liability arising out of the existence of real property, in the following forms and amounts:

(1) General Liability Insurance, including coverage for the explosion, collapse, underground damage hazards, and pollution with a limit of liability of $5,000,000 per occurrence. Such insurance shall name the City of Simi Valley, elected officials, officers, agents, and employees as additional insured with respect to liability arising out of the operation or property of CRIMSON.

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Such insurance and any other Public Liability Insurance to the full limits thereof carried by CRIMSON shall be primary and any insurance available to the City of Simi Valley shall not be called to contribute to any loss(es) arising out of this franchise. The City, in its sole discretion, may accept evidence of self-insurance for all or a portion of the foregoing required insurance.

(2) Worker's Compensation Insurance covering CRIMSON's statutory obligation under California Law for injury to employees. If CRIMSON is self-insured, evidence must be provided of current State Certificate of Self Insurer and that the required self-insurer's bond is in effect.

(3) Each insurer providing insurance as required shall be rated by A.M. Best Credit Rating (or in the event A.M. Best is not in publication, its successor or equivalent). Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

SECTION 11. CRIMSON shall provide to the City of Simi Valley an Oil and Gas Franchise Penal Bond (Blanket Bond) in the amount of $10,000 to guarantee performance of all terms and conditions of the franchise to be awarded without violations.

SECTION 12. CRIMSON shall defend and provide legal defense with attorney(s) acceptable to CITY, indemnify, and hold harmless CITY, its agents, officials, officers, representatives and employees, from and against all claims, lawsuits, liabilities or damages of whatever nature arising out of or in connection with, or relating in any manner to any act or omission of CRIMSON, its agents, employees, and subcontractors, and employees thereof, pursuant to the performance or non- performance of this Ordinance. CRIMSON shall thoroughly investigate any and all such claims and indemnify the CITY and do whatever is necessary to protect the CITY, its agents, officials, officers, representatives and employees as to any such claims, lawsuits, liabilities, expenses, or damages arising out of this Ordinance.

SECTION 13. CRIMSON shall pay to the City of Simi Valley a franchise fee set for a common carrier company under California Public Utilities Code Section 6231.5.

SECTION 14. The City Council finds that the franchise is categorically exempt from the requirements of the California Environmental Quality Act.

SECTION 15. This franchise is granted and shall be held and enjoyed only upon the terms and conditions herein contained, and CRIMSON must, within thirty (30) days after the passage of the ordinance granting said franchise, file with the City Clerk of the City of Simi Valley a written acceptance of such terms and conditions.

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SECTION 16. This ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage.

The City Clerk shall cause this ordinance or a summary hereof to be published in a newspaper of general circulation, published in the County of Ventura and circulated in the City, and if applicable, to be posted, in accordance with Section 36933 of the California Government Code; shall certify to the adoption of this ordinance and shall cause a certified copy of this ordinance, together with proof of publication, to be filed in the Office of the Clerk of this City.

PASSED and ADOPTED this 16th day of October 2017.

Attest:

/s/ /s/ Ky Spangler, Deputy Director/City Clerk Robert O. Huber, Mayor of the City of Simi Valley, California

Approved as to Form: Approved as to Content:

/s/ /s/ Lonnie J. Eldridge, City Attorney Eric J. Levitt, City Manager

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