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CC RES 2005-120RESOLUTION NO. 2005 -120 A RESOLUTION OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, STATING THE CITY COUNCIL'S INTENTION TO GRANT A FRACHISE TO SOUTHERN CALIFORNIA GAS COMPANY, A CORPORATION, THE RIGHT, PRIVILEGE AND FRANCHISE TO LAY AND USE PIPES AND APPURTENANCES FOR TRANSMITTING AND DISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER, ALONG, ACROSS OR UPON THE PUBLIC STREETS, WAYS, AND ALLEYS, AS THE SAME NOW OR MAY HEREAFTER EXIST, WITHIN THE CITY OF RANCHO PALOS VERDES AND SETTING THE DATE FOR A PUBLIC HEARING THEREON. THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, RESOLVE AND ORDER AS FOLLOWS: SECTION 1. The City has received an application for a franchise from the Southern California Gas Company, a Corporation (the "Grantee "), for the right, privilege and franchise to lay and use pipes and appurtenances for transmitting and distributing gas for any and all purposes under, along, across or upon the public streets, ways, and alleys as the same may now or may hereafter exist within the City of Rancho Palos Verdes. SECTION 2. The term of the franchise is proposed to be twenty-five (25) years. SECTION 3. If the franchise is granted, the Grantee shall pay to the City in lawful money of the United States a sum annually which shall be equivalent to two percent (2 %6) of the gross annual receipts of Grantee arising from the use, operation or possessior. of said franchise; provided, however, that such payment shall in no event be less than one percent (1 %) of the gross annual receipts of the Grantee derived from the sale of -gas within the limits of the City of Rancho Palos Verdes and further, that in the event the Legislature shall amend the Franchise Act of 1937 (Public Utilities Code Section 6201, et seq.) to permit a franchise payment greater than the percentage formula specified herein, the franchise fee agreed upon shall be adjusted to the level permitted by the legislature in amending such act in accordance with the provisions set forth in Section Three of the proposed franchise agreement. SECTION 4. The City Council hereby sets a hearing to be held at 7:00 p.m. on December 6, 2005, at Hesse Park located at 29301 Hawthorne Boulevard, Rancho Palos Verdes, California, at which time persons having any objection to the granting of the franchise may appear before the City Council to be heard. SECTION 5. The City Clerk shall publish a notice of this public hearing in the form attached hereto as Exhibit A at least once within fifteen (15) days after the passage of this resolution in the Palos Verdes Peninsula News. The notice shall provide that at any time not later than the hour set for the hearing, any person interested may make written protests stating objections against the granting of the franchise. The protest shall be signed by the protestant and shall be delivered to the Clerk of the City Council not later than the time set for the public hearing. PASSED, APPROVED and ADOPTED this 15th day of November 2005. Attest: State of California ) County of Los Angeles )ss City of Rancho Palos Verdes ) I, Carolynn Petru, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2005 -120, was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on November 15, 2005. C y Clerk Resolution No. 2005 -120 Page 2 of 2 RESOLUTION NO. 2005-120 - EXHIBIT A FORM OF NOTICE NOTICE OF INTENTION TO CONSIDER GRANTING A FRANCHISE NOTICE IS HEREBY GIVEN that Southern California Gas Company, hereafter referred to as Grantee, has filed an application with the City of Rancho Palos Verdes requesting that the City Council grant to it a franchise for a period of 25 years from and after the date upon which the franchise shall become effective, the right, privilege and franchise to lay and use pipes and appurtenances for transmitting and distributing gas for any and all purposes under, along, across or upon the public streets, ways, and alleys as the same may now or may hereafter exist within the City of Rancho Palos Verdes. If said franchise shall be granted to it, Grantee and its approved assigns will pay to said City in lawful money of the United States a sum annually which shall be equivalent to two percent (2 %) of the gross annual receipts of Grantee arising from the use, operation or possession of said franchise; provided, however, that such payment shall in no event be less than one percent (1 %) of the gross annual receipts of the Grantee derived from the sale of gas within the limits of the City of Rancho Palos Verdes and further, that in the event the Legislature shall amend the Franchise Act of 1937 (Public Utilities Code Section 6201, et seq.) to permit a franchise payment greater than the percentage formula specified herein, the franchise fee agreed upon shall be adjusted to the level permitted by the legislature in amending such act in accordance with the provisions set forth in Section Three of the proposed franchise agreement. The Grantee shall also pay to the City within thirty (30) days after receiving a statement therefore, all administrative and other costs incurred by the City in processing the application for a franchise, including but not limited to the preparation of any reports, statements or studies pursuant to the California Environmental Quality Act (Public Resources Code § 21000, et seq.) and any similar Federal statute, or any successor statute, and for any and all advertising and publishing costs, including the cost of publishing the ordinance, if necessary, incurred in connection with the granting of the franchise, up to a maximum total of $7,500. The City Council of the City of Rancho Palos Verdes proposes to consider granting said franchise for a period of 25 years from and after the date upon which the franchise shall become effective, or until it is voluntarily surrendered or abandoned by the Grantee, or until the State or some municipal or public corporation thereunto duly authorized by law shall purchase by voluntary agreement or shall condemn of such franchise and situated within the territorial limits of the State, municipal, or public corporation purchasing or condemning such property, or until such franchise is forfeited for noncompliance with its terms by Grantee. Resolution No. 2005 -120 Exhibit A Page 1 of 2 NOTICE IS FURTHER GIVEN that any and all persons having any objection to the granting of said franchise may appear before the City Council at Hesse Park located at 29301 Hawthorne Boulevard, Rancho Palos Verdes, California, at 7:00 p.m. on December 6, 2005 and be heard thereon; and at any time not later than the hour set for hearing objections, any person interested may make written protest stating objections against the granting of said franchise, which protest must be signed by the protestant and be delivered to the City Clerk. The City Council at the time set for hearing said objections shall proceed to hear and pass upon all written protests so made. For further particulars, reference is hereby made to said application which is on file in the office of said City Clerk and also to the resolution adopted by said City Council on the 15th f November, 2005, declaring its intention to consider granting said Y g franchise. Dated: , 2005 Carolynn Petru, City Clerk Resolution No. 2005 -120 Exhibit A Page 2of2