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RESOLUTION NO. 26-11
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK
DECLARING ITS INTENTION TO CONSIDER GRANTING A NON-PUBLIC
UTILITY PIPELINE FRANCHISE TO HERAEUS METAL PROCESSING,
INCORPORATED
WHEREAS, On November 21, 2006, the City Council adopted Ordinance No. 06- 1581, which granted Heraeus Metal Processing, Incorporated (Franchisee) a fifteen (15) year pipeline franchise (“Franchise”); and WHEREAS, the Franchise expired on November 2021, and Franchisee has filed a request to extend the pipeline Franchise; and
WHEREAS, pursuant to California Public Utilities Code Section 6232, the City Council desires to adopt a resolution declaring its intent to establish a non-public utility pipeline franchise with a term of fifteen (15) years.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NORWALK HEREBY DETERMINES, FINDS, AND RESOLVES AS FOLLOWS:
Section 1.The City Council hereby expresses its intent to grant Franchisee a pipeline franchise for a fifteen (15) year period.
Section 2.That the character of said Franchise and terms and conditions upon which it is proposed to be granted are described in the form of notice hereinafter set forth.
Section 3.That it is the opinion of the City Council that the public good requires said franchise be granted; and
Section 4.That the City Council will hear objections to the granting of said Franchise at the time and place specified in the form of notice hereinafter set forth, which the City Clerk is hereby directed to publish at least once in a newspaper of general circulation printed published nearest to the City of Norwalk, within 15 days after the passage of this resolution.
Section 5.That said notice shall be substantially in the follow words and figures:
NOTICE OF INTENTION TO CONSIDER GRANTING A FRANCHISE
NOTICE IS HEREBY GIVEN that Heraeus Metal Processing, Inc. (“hereafter referred to as Grantee”), has filed an application with the City of Norwalk requesting that the City Council grant to it a franchise for a period of 15 years from and after the date upon which the franchise shall become effective, to 4 4
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lay or construct from time to time, and 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, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud, steam and other liquid substances not more hazardous than the aforesaid substances together with all manholes, valves, appurtenances, and service connections necessary or convenient for the operation of said pipes or pipelines including conduits, cathodic protection devices, wires, cables and other appurtenances necessary or convenient for the exercise of the Grantee’s business, in, under, along or across any and all streets within the City of Norwalk, as approved from time to time by resolution of the City Council. If said franchise shall be granted to it, Grantee and its approved assigns will pay the City the following fees:
A. Base Granting Fee. A base granting fee of Seven thousand five hundred dollars ($7,500) shall be paid within thirty (30) days after the Council adopts the ordinance granting the franchise and prior to signing the written acceptance of the franchise.
B. Base Annual Fee. A base annual fee shall be paid within sixty (60) days after the end of each calendar year and during the life of the franchise for each and every year including the year of granting the franchise in the following amounts:
Pipelines with an Internal
Diameter of
0-4inches
6inches
8inches
10inches
12inches
14inches
16inches
18inches
20inches
22inches
24inches
26inches
28inches
30 inches
Amount per
Linear Foot
$0.232
0.352
0.471
0.584
0.703
0.823
0.935
1.055
1.174
1.287
1.406
1.526
1.638
1.758
The base annual rate applicable to pipelines with an internal diameter falling between two (2) incremental size categories shall pay a rate determined by adding the price corresponding to the lower size to a figure computed by multiplying the difference between the higher and lower price times the "multiplier." The "multiplier" will be determined by dividing the difference between the size of the 4 4
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pipe and the lower size category by the difference between the two (2) size categories. In determining the number of feet of pipeline upon which the annual fee will be computed, the greatest number of feet of pipeline covered by the franchise during the calendar year for which payment is due will be utilized. The base annual fee shall be paid no later than seventy-five (75) days following the end of the calendar year and a penalty at the rate of ten percent (10%) per month or fraction thereof beyond the payment date shall be charged, but in no event shall said penalty exceed fifty percent (50%). The City will reserve the right to adjust the base granting the franchise established under the franchise at any time after the effective date of the ordinance granting the franchise, but the base fees applicable to the franchise may only be changed five (5) times during the life of the franchise.
C. Base Construction Charges. The Grantee shall pay at the time of installation, relocation, or replacement of any pipeline or other facility covered by the franchise, a base construction charge of two thousand three hundred and fifty dollars ($2,350) for each 1/2 mile of pipeline or fractional part thereof installed, replaced or relocated on Major Streets and one thousand five hundred and fifty dollars ($1,550) per 1/2 mile or fractional part thereof, on minor streets. The City reserves the right to change the base fees established hereunder at any time after the effective date of the ordinance granting the franchise, but the base fees applicable to the franchise may only be changed five (5) times during the life of the franchise.
D. Adjustments.
(1) The amount of each base fee specified in Subsections A, B and C shall be adjusted at the time payment is due by the percentage change in the Consumer Price Index, all Urban Consumers for the Los Angeles-Anaheim-Riverside area (1982-84 = 100), for the period January 1, 1997 to the date which is sixty (60) days prior to the due date of the fee.
(2) In no event shall any fee be charged which is less than the base fee amount established by Subsections A, B, and C.
(3) The index specified in Subsection D-1, above, is calculated and published by the United States Department of Labor, Bureau of Labor Statistics. If the Bureau discontinues the calculation or publication of the Consumer Price Index, all Urban Consumers for the Los Angeles-Anaheim-Riverside area (1982-84 = 100), and no transposition table is available to convert to another index, then the amount of each annual adjustment in base fees shall be computed by using a comparable governmental index.
E. Publication and Administrative Issuance Costs. The Grantee shall 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 4 4
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§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.
The City Council of the City of Norwalk proposes to consider granting said franchise for a period of 15 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 non-compliance with its terms by Grantee.
NOTICE IS FURTHER GIVEN that the Grantee shall file a bond, with a corporate surety authorized to conduct a surety business in the State of California, and in a form approved by the City Attorney for the City of Norwalk, in the penal sum of One Hundred Thousand Dollars ($100,000.00), conditioned that the Grantee 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 therein named shall be recoverable from the principal and surety upon said bond.
Said bond shall be filed with the Director of Finance of the City on or before the effective date of the ordinance granting said franchise; and if said bond is not filed, or if it does not receive the approval of the City Attorney, said franchise may be refused or forfeited and any money paid to the City in connection therewith shall be retained by the City. The Grantee will also be required to obtain insurance as will be provided in the franchise ordinance.
NOTICE IS FURTHER GIVEN, that any and all persons having any objection to the granting of said franchise may appear before the City Council in the Council Chambers located at the Norwalk City Hall, 12700 Norwalk Blvd., Norwalk.
California, at 6:00 p.m. on February 17, 2026 and be heard thereon; and at any time not later than the hour set for hearing objections, any person interested may make a 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 of said City. The City Council at the time set for hearing said objections shall proceed to hear and pass upon all protests so made. For further particulars, reference is hereby made to the resolution adopted by said City Council on the 20th day of January 2026, declaring its intention to consider granting said franchise."
Section 6. The Mayor, or presiding officer, is hereby authorized to affix her signature to this Resolution signifying its adoption by the City Council of the City of Norwalk and the City Clerk, or her duly appointed assistant, is directed to attest thereto.
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APPROVED AND ADOPTED on this 20th day of January 2026.
JENNIFER PEREZ
MAYOR
ATTEST:
THERESA DEVOY, CMC
CITY CLERK