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
Second Reading of Ordinance No. 24-0007, An Ordinance of the City of Manhattan Beach Extending the Term of an Existing Franchise Previously Granted to Zenith Energy West Coast Terminals LLC for an Additional Term of 25 years and Adopt a Finding of Exemption from CEQA under CEQA Guidelines Section 15301 (Public Works Director Lee).
ADOPT ORDINANCE NO. 24-0007
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RECOMMENDATION:
Staff recommends that the City Council waive further reading and adopt Ordinance No. 24-0007, an ordinance of the City of Manhattan Beach extending the term of an existing franchise previously granted to Zenith Energy West Coast Terminals LLC for an additional term of 25 years and adopt a finding of exemption from CEQA under CEQA Guidelines Section 15301.
FISCAL IMPLICATIONS:
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 Ordinance No. 24-0007 is adopted, it will extend the current franchise agreement 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. 2...
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