WHEREAS, under the authority of the California Public Utilities Code section 6210 et. seq. a duly noticed public hearing was held before the Board of Supervisors of the County of Riverside on November 2, 1997 on the subject of considering the granting of a franchise to ARCO Pipe Line Company pursuant to its application, which application is dated October 28, 1997; and

WHEREAS, all protests and objections to the granting of the subject franchise were heard and passed upon.

NOW, THEREFORE, the Board of Supervisors of the County of Riverside ordains as follows:

SECTION 1: The right, privilege and franchise is hereby renewed and granted to ARCO Pipe Line Company, its successors and assigns (AGrantee@), from time to time to operate, repair and maintain an existing 16-inch internal diameter pipeline together with all appurtenances and service connections necessary or convenient to properly maintain and operate said 16-inch pipeline, including cathodic protection facilities.

AMaintenance@ shall include, but not be limited to, replacement, changing the size of, abandoning in place and/or removal. The rights herein granted shall be for the transportation of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, and such transportation of water, wastewater, mud, steam and other liquid substances as are incidental to the transportation of the other named substances for the term of twenty-five (25) years from and after January 1, 1998 until December 31, 2022 or until sooner terminated under terms of this franchise. The rights herein granted apply in and across the public highways, streets, alleys and other public places, now or hereafter dedicated to the County of Riverside (ACounty@) for public use in the unincorporated portions of County as more fully set forth on the document, marked Exhibit A, attached hereto and made a part hereof by this reference. Work performed under this franchise shall be with the prior written approval of the County Director of Transportation. The pipe which is in place has an internal diameter of sixteen (16) inches and the current length of said pipeline as is now within the unincorporated territory of the County is 10,301 feet, more or less, or 1.95 miles and the length is not continuous.

 SECTION 2: Grantee shall, during the life of this franchise, pay to County the annual payment which is set and modified annually in accordance with Public Utilities Code Section 6231.5 or as that Code section may hereafter be modified or amended. That section currently provides that the base rate is the number of lineal feet times the base rate for the particular sized pipe as adjusted pursuant to the Consumer Price Index set forth in Public Utilities Code Section 6231.5(b). The base rate for a 16-inch internal diameter pipe is $0.352 per lineal foot as of the effective date of this ordinance.

 Any neglect, omission or refusal of Grantee to pay the required annual payment as required herein, which neglect, omission or refusal shall continue for more than thirty (30) days following written notice thereof to Grantee by County, shall be grounds for the declaration of a forfeiture of this franchise and all rights of the Grantee hereunder.

 SECTION 3. This franchise is granted and shall be held only upon the provisions and conditions prescribed by law and those contained in this ordinance.

 SECTION 4. Grantee shall, within thirty (30) days after the adoption of this ordinance, file with the Clerk of the Board of Supervisors, a written acceptance of the terms and conditions of this ordinance.

 SECTION 5. All franchise property to be constructed, operated and maintained under this franchise shall be built and constructed in a good and professional manner and be of good material, and any and all pipelines laid, located, or maintained under said franchise shall be so placed as not to interfere with the use of said public streets, alleys, highways and other public place by the traveling public or for public purposes. All work performed by Grantee under this ordinance shall be done in accordance with all state and local rules, regulations, ordinances, standards and specifications, and shall require prior written approval by the Director of Transportation. In situations involving installation of parallel pipeline, lateral connections and installation of pipe of increased diameter, County at its sole option, reserves the right to require amendment of the Franchise prior to the commencement of such work. All work shall be subject to the inspection of the Transportation Department. In constructing, installing and maintaining the franchise property and pipeline, Grantee shall make and backfill all excavations in such manner and way as to leave the surface of the public street, alley, highway or public place in as good condition as it was prior to said excavation, as well as to conform to the statutes of the State of California and the ordinances of County, as they now exist or may hereafter be amended with respect to the securing of permits for the excavation, filling and obstruction of County highways and streets.

 SECTION 6. Whenever any portion of the territory covered by this franchise shall be annexed to, or otherwise becomes part of any city or of any other county, or of any other political subdivision of the State of California, the rights reserved under this franchise to County, shall inure to the benefit of such city or county.

 Whenever County annexes or adds additional territory to its boundaries, the rights, responsibilities, obligations and privileges contained herein shall be expanded to include those portions of the pipeline that were subject to a franchise with other political subdivisions prior to said addition.

 SECTION 7. Grantee shall not sell, transfer or assign this franchise or any of the rights or privileges hereby granted without the written consent of County, which consent shall not be unreasonably withheld, nor shall this franchise or rights or privileges be sold, transferred or assigned except by a duly executed instrument in writing, filed in the office of the Clerk of the Board of Supervisors; and provided further, that nothing in this franchise shall be construed to give to Grantee any right to sell, transfer or assign this franchise or any of the rights or privileges hereby granted, except as provided herein.

 SECTION 8. County reserves the right to improve any highway, street, alley or other public place or portion thereof over and within which this franchise is granted, including the widening, change of grade, construction or reconstruction of such highway, street, alley, or other public place or any portion thereof, and there if further reserved to County and any political subdivision or district within County the right to construct, reconstruct, install, repair and maintain in any such highway, street, alley or other public places, or portion thereof, any public improvement.

 If notice in writing is given by County to Grantee at least thirty (30) days in advance of the time work is to be done pursuant to any right reserved above in this section, specifying the general nature of the work and the area in which the same is to be performed, then Grantee shall do all things necessary to protect its franchise property during the progress of such work, and if ordered by the Director of Transportation, Grantee shall temporarily disconnect or temporarily remove or shall relocate its franchise property within the highway, street, alley or other public place to such extent, in such manner, and for such period as shall be necessary to permit the performance of such work in an economical manner, and in accordance with generally recognized engineering and construction methods, and to permit the maintenance, operation and use of such public improvement, highway, street, alley or other public place, as so improved. All such things to be done and work to be performed by Grantee shall be at the sole cost and expense of Grantee.

 In the event County or any political subdivision or district within County shall hereafter construct, install, reconstruct or repair any bridge or artificial support in or underlying any highway, street, alley or other public place in which Grantee=s franchise property is located, and in the event that the cost of such work as may reasonably be 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 artificial support, then Grantee shall pay to County or such political subdivision or district doing such work the full amount of such increase of cost, upon completion of such construction, installation or repair.

 Any damage done directly or indirectly to any public street, highway, alley or other public place or public improvement by Grantee, in exercising directly or indirectly any right, power or privilege under this franchise, or in performing any duty under or pursuant to the provisions of this ordinance, shall be promptly repaired by said Grantee, as its sole cost and expense, to the complete satisfaction of County.

 SECTION 9. If Grantee shall fail to comply or to commence and diligently proceed toward compliance with any instructions of the Board of Supervisors or the Director of Transportation with respect to the location of any of said franchise property or the repair of any damage caused by Grantee to highways, streets, alleys or other public place or any public improvement within thirty (30) days after the service of written notice upon Grantee requiring compliance therewith, then the Board of Supervisors may immediately authorize whatever work is necessary to carry out the instructions at the cost and expense of Grantee, which cost by the acceptance of this franchise, Grantee shall pay upon demand.


SECTION 10. Grantee shall hold County, 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 the acts or omissions of Grantee, its agents or employees in the performance of any work authorized hereunder.


Prior to County=s granting of this franchise, Grantee shall obtain, and shall thereafter maintain during the term of this franchise, such general liability insurance as required to insure Grantee against damages for personal injury, including accidental death, as well as from claims for property damage which may arise from or which may concern operations under this franchise, whether such operations be by Grantee or by anyone directly or indirectly employed by, connected with, or acting for or on behalf of Grantee.


All liability insurance shall be issued by insurance companies authorized to transact liability insurance business in the State of California and shall cover comprehensive general and automobile liability for both bodily injury (including death) and property damage, including but not limited to aggregated protective operations, and aggregate contractual obligations with the following minimum limits:


Bodily injury                     $250,000 each person

(Including death).......           $500,000 each person

$500,000 aggregate products

and completed operations


Property Damage.......          $100,000 each occurrence

$250,000 each aggregate

A combined single limit policy with aggregate limits in the amount of $1,000,000 will be considered equivalent to the required minimum limits.

Insurance policies or certificates and additional insured endorsements evidencing the coverage required by the franchise shall be filed with County and shall include County as an additional insured. Said policies shall be in the usual form of public liability insurance, but shall include the following provisions:

Solely as respects work done by and on behalf of the named

insured for County of Riverside, it is agreed that the County

of Riverside and its officers and employees are added as additional

insured under this policy.

The Policies shall not be canceled unless thirty (30) days prior written notification of intended cancellation has been given to County by certified or registered mail, confirmed facsimile, overnight mail service, or hand delivery.


SECTION 11. 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 Grantee by County, shall work a forfeiture hereof, and County, by its Board of Supervisors, may thereupon declare this franchise forfeited, and may exclude said Grantee from further use of the public streets, alleys, highways and public places of said County under this franchise; and Grantee shall thereupon surrender all rights in and to the same, and this franchise shall be deemed and shall remain null, void and of no effect.

SECTION 12. During Grantee=s performance under this franchise, Grantee shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical handicap, medical conditions including the medical conditions of Acquired Immune Deficiency Syndrome (AIDS) or any conditions related thereto, marital status, sex or sexual orientation in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Pursuant to the Americans with Disabilities Act and specifically 42 USC 12132, Grantee acknowledges and agrees that in the performance of the franchise, no qualified individual shall, by reason of a disability, be excluded from participation in or be denied the benefits of the services, programs or activities of County or Grantee or be subjected to discrimination by County or Grantee.

SECTION 13. The provisions of this franchise and all rights, obligations and duties hereunder shall inure to and be binding upon Grantee, its successors and assigns.

SECTION 14. Grantee shall pay upon invoice, all costs of publication incurred by County in connection with the granting of this franchise.

SECTION 15. All notices required and authorized to be given shall be addressed to the respective parties as set forth below:

City                                                           Grantee

Riverside County Transportation Department  ARCO Pipe Line Company

Transportation Department     Land and Right of Way Service Department

4080 Lemon Street, 7th Floor 5900 Cherry Avenue

Riverside, CA 92501 P. O. Box 1605 

Long Beach CA 90805

SECTION 16. All payments required to be mailed to County hereunder shall be sent with adequate identifying documentation to the Clerk of the Board of Supervisors, 4080 Lemon Street, P.O. Box 1147, Riverside, California 92501.

SECTION 17. This ordinance shall become effective January 1, 1998.







ADOPTED: 12-2-1997 (Eff.: 1-1-1998)