TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
Erika King, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Declaring an Intention to Adopt an Ordinance Granting an Extension of an Existing Franchise to Zenith Energy West Coast Terminals LLC and Setting the Public Hearing on the Adoption of the Ordinance for July 16, 2024 (Public Works Director Lee).
ADOPT RESOLUTION NO. 24-0077
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RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 24-0077 declaring an intention to adopt an ordinance granting an extension of an existing franchise to Zenith Energy West Coast Terminals LLC and setting the Public Hearing on the adoption of the Ordinance for July 16, 2024.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the adoption the resolution. Franchise fees for utility pipeline franchises are regulated by the State of California under the Public Utilities Code. In 2023, Zenith Energy West Coast Terminals LLC, as grantee, paid approximately $7,400 in franchise fees under the existing franchise. If the proposed ordinance is adopted extending the franchise for 25 years, Zenith Energy West Coast Terminals LLC, as grantee, shall continue to pay to the City an annual sum of money that shall be equivalent to the base rate per lineal foot as set forth in Public Utilities Code Section 6231.5.
BACKGROUND:
On April 19, 1967, City Council approved a pipeline franchise agreement with Southern California Edison ("SCE") to operate a pipeline carrying petroleum products between SCE facilities.
On July 20, 1999, the City Council adopted Ordinance No. 2002 which granted SCE, as grantee, a new 25-year franchise ("franchise") to operate a pipeline within the City. Ordinance No. 2002 granted a franchise to SCE for a pipeline that runs generally along Hi...
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