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CC - Adoption of an Ordinance Granting a Franchise to Crimson California Pipeline, L.P. for the Operation of Existing Pipelines Located in the Public Rights-of-Way for the Transportation of Oil or Products Thereof Pursuant to Certain Terms and Conditions Contained in the Proposed Ordinance.
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Contact Person/Dept: Martin R. Cole/CMO
Phone Number: 310-253-6000
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (09/10/15); (Publication) Culver City News (06/25/15, 07/15/15, and 07/23/15)
Department Approval: Martin R. Cole, Assistant City Manager/City Clerk
(09/10/15)
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RECOMMENDATION
Staff recommends the City Council adopt an ordinance granting a Franchise to Crimson California Pipeline, L.P. (Proposed Crimson Franchise) for the operation of existing pipelines located in the public rights-of-way for the transportation of oil or products thereof pursuant to certain terms and conditions contained in the proposed ordinance.
BACKGROUND
Section 1700 of the City Charter provides, in pertinent part, the following:
“The City Council may, by ordinance, grant a franchise to furnish the City and its inhabitants with any public utility or service and to use the public streets for that purpose. The exercise by any person, firm or corporation of any privilege for which a franchise is required without procuring such franchise from the City is prohibited.”
Additionally, Section 6205.1 of the California Public Utilities Code (PUC) provides, in pertinent part, the following:
“…facilities which are part of a pipeline system transmitting oil or products thereof, shall be granted upon the terms and conditions provided in, and in accordance with...this chapter”
On June 8, 2015, the City Council adopted Resolution 2015-R045: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA (1) DECLARING THE CITY COUNCIL'S INTENTION TO GRANT A FRANCHISE TO CRIMSON CALIFORNIA PIPELINE, L.P. FOR THE OPERATION OF EXISTING PIPELINES LOCATED IN THE PUBLIC RIGHTS-OF-WAY FOR THE TRANSPORTATION OF OIL OR PRODUCTS THEREOF PURSUANT TO CERTAIN TERMS AND CONDITIONS UPON WHICH SUCH FRANCHISE IS PROPOSED TO BE GRANTED; AND, (2) SETTING THE DATE, TIME, AND PLACE FOR THE PUBLIC HEARING AT WHICH ANY PERSON MAY APPEAR BEFORE THE CITY COUNCIL AND BE HEARD TO BE JULY 27, 2015 AT 7:00PM IN THE MIKE BALKMAN COUNCIL CHAMBERS.
The Public Hearing was noticed for the Regular Meeting of the City Council held on July 27, 2015. At that time, the City Council opened and continued the Public Hearing to August 10, 2015 at 7:00 PM. At that time, the City Council opened and continued the Public Hearing to August 24, 2015 at 7:00 PM. At that time, the City Council held the public hearing and, upon its conclusion, introduced the proposed ordinance.
The ordinance is presented tonight for adoption.
FISCAL IMPACT
Should the City Council ultimately adopt the proposed ordinance, the City’s General Fund will receive a one-time payment of $10,000 as a Franchise Renewal and Extension Fee and will receive approximately $1,200 each year as the maximum allowable franchise fee set under the PUC (the franchise fee is subject to increase each year as allowed by the PUC).
ATTACHMENTS
Proposed Ordinance
RECOMMENDED MOTION:
That the City Council:
Adopt an ordinance granting a franchise to Crimson California Pipeline, L.P. for the operation of existing pipelines located in the public rights-of-way for the transportation of oil or products thereof pursuant to certain terms and conditions contained in the proposed ordinance.