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
Conduct a Public Hearing to Consider:
a) Adoption of Urgency Ordinance No. 24-0007-U and Introduction of Ordinance No. 24-0007 to Extend an Existing Franchise Agreement with Zenith Energy West Coast Terminals LLC for a 25-Year Term; and
b) Determination of Exemption from Environmental Review Pursuant to the California Environmental Quality Act (CEQA) (Public Works Director Lee).
(Estimated Time: 15 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT URGENCY ORDINANCE NO. 24-0007-U
C) INTRODUCE ORDINANCE NO. 24-0007
in
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RECOMMENDATION:
Staff recommends that the City Council:
1) Conduct a Public Hearing.
2) Find the proposed action categorically exempt from environmental review pursuant to the California Environmental Quality Act (CEQA).
3) Adopt Urgency Ordinance No. 24-0007-U granting an extension of an existing franchise agreement to Zenith Energy West Coast Terminals LLC for a 25-year term.
4) Introduce Ordinance No. 24-0007 granting an extension of an existing franchise agreement to Zenith Energy West Coast Terminals LLC for a 25-year term.
FISCAL IMPLICATIONS:
The State of California regulates franchise fees for utility pipeline franchises under the Public Utilities Code. As a grantee in 2023, Zenith Energy West Coast Terminals LLC paid approximately $7,400 in franchise fees under the existing franchise. If the proposed Urgency Ordinance No. 24-0007-U and the regular Ordinance No. 24-0007 are 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 outlined in Public Utilities Code Section 6231.5. In addition, Zenith will pay for all costs ...
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