HomeMy WebLinkAbout1992-04-21 - AGENDA REPORTS - GRANT FRANCHISE TEXACO (2)AGENDA REPORT -
City Manager Approval
Item to be presented
NEW BUSINESS
DATE: April 21, 1992
SUBJECT: A Resolution of Intentiod.0 Grant a Franchise to the Texaco
Trading and Transportation Company
Resolution Number:92-71
DEPARTMENT: FINANCE
Within the incorporated boundaries of Santa Clarita, Texaco Trading and
Transportation Inc. owns, maintains, and operates a 1,247.5 foot, 8 -inch crude
oil pipeline under Los Angeles County Franchise Ordinance No. 9213. On December
8, 1991 the franchise expired with the County, thus requiring the City to draft
its own franchise ordinance agreement.
Staff has recently completed negotiations with Texaco Transportation and
Trading, Inc. ("Texaco") for an oil pipeline franchise with the City. The
Franchise Act of 1937 and Section 6201 of the Public Utilities Code gives the
City the authority to impose certain minimum duties and liabilities upon a
franchisee.
The proposed Texaco franchise ordinance covers a ten year term. The franchise
grants Texaco permission to lay and use pipelines for the transportation of oil
and the products thereof. These pipelines may cross public streets, highways,
and alleys as shown in Exhibit A. The ordinance also specifies that the grantee
will submit an Emergency Preparedness Plan to the City, assuring the .citizens of
Santa Clarita that adequate safety precautions are being .taken. The City will
also receive a $10,000 granting fee for consideration.
In order to begin consideration of the proposed, Texaco franchise, the City
Council must adopt a Resolution of Intention to grant a franchise. The purpose
of Resolution No. 92-71 is to give notice of the City's intention to grant a
franchise to Texaco Trading Co. and set the matter for public hearing to May
12,1992, pursuant to section 6232 of the State Public Utilities Code.
The public. hearing must be held between twenty (20).. and sixty (60) days after
adoption of the Resolution of Intention.' After the public hearing, the City
Council may grant Texaco a franchise by the adoption .of an ordinance.
To review and adopt Resolution No. 92-71 and set the matter for public hearing
to May 12, 1992.
ATTACHMENTS
Resolution No. 92-71 Adaptec: L/ �� -7d2.
dn/ ~--- Agenda Item:
RESOLUTION NO.. 92-7/1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA CLARITA DECLARING THE CITY COUNCIL'S
INTENTION TO GRANT AN OIL PIPELINE FRANCHISE
TO TEXACO TRANSPORTATION AND TRADING, INC.
WHEREAS, Texaco Transportation and Trading, Inc.
("Texaco") has filed with the City Council of the City of Santa
Clarita an application requesting that a franchise be granted to
it of the character and for the purposes mentioned in the notice
hereinafter set forth; and
WHEREAS, in the opinion of the City Council the public
good requires that said franchise be granted;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
CLARITA DOES.RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The City Council hereby declares its
intention to grant said franchise to Texaco, and that a public
hearing to consider any objections to the granting thereof will
be held at the time and place specified in the notice hereinafter
set forth, which the City Clerk is hereby directed to publish at
least once within fifteen (15) days after the passage of this
resolution in The Signa] , a newspaper of general circulation
within the City of Santa Clarita, and that said notice shall be
in the following words and figures:
"NOTICE OF INTENTION TO GRANT FRANCHISE//
NOTICE IS HEREBY GIVEN that Texaco Transportation
and Trading, Inc. ("Texaco") has filed its application
with the City Council of the City of Santa Clarita
requesting that the City Council grant to it a
franchise.for a ten year period, pursuant to the
Franchise Act of 1937, to lay and use pipes and
appurtenances for transmitting and distributing oil and
products thereof,.under, along, across and upon the
public highways and streets within the City, as
described in Exhibit A, attached.
If said franchise shall be granted to it, Texaco, it
successors and assigns shall, during the life thereof, pay
to the City an annual Franchise Fee, computed as follows:
A. The length of the pipe expressed in feet located
within the franchised area shall be multiplied by the
applicable base rate, as adjusted pursuant to subdivision
(B), in accordance with the following schedule:
Pipe Size
(internal diameter in inches)
Base rate per lineal foot
0 - 4
$0.088
6
0.132
8
0.176
10
0.220
12
0.264
14
0.308
16
0.352•
18
0.396
20
0.440
22
0.484
24
0.528 —:
26
0.572
28
0.616
30
0.660
For pipelines with an internal diameter not listed
above, the Fee shall be in the same proportion to the Fee of
an 12 -inch -diameter pipe as the diameter of the unlisted
pipe is to 12 inches.
B. Computation of Payments
Such payments shall be computed from the effective date
of the.Franchise, to and including the date of either actual
removal of the facilities or the effective date of a
properly approved abandonment "in place" authorized by the
City, and until Texaco shall have fully complied with all
the provisions of the Franchise and of all other applicable
provisions of law or ordinance relative to such
abandonments. All such payments shall be made payable to
the City, and shall be supported by Texaco!s verified
statement concerning the computation thereof. In the event
of installation or abandonment of facilities with the
SC/507449.RS4 -2-
approval of the City, or in the event of removal of such
facilities by Texaco, the payments otherwise due to the City
for occupancy of the streets by such facilities shall be
prorated for the calendar year in which such installation,
removal or abandonment occurs as of the end of the calendar
month in which installed, removed or abandoned.
Provided, however, that the amount of each annual
payment shall be computed and revised each calendar year as
follows:
(1) The applicable base rate shall be multiplied
by the Consumer Price Index for the area,..as published
by the United States Department of Labor, Office of
Information for the month of September immediately
preceding the month in which payment is due and
payable, and divided by the Consumer Price Index for
June 30, 1989, which is declared to be 100.0. Under no
circumstances shall the multiplying factor be less than
one.
(2) If the United States Department of Labor,
Office of Information discontinues the preparation or
publication of a Consumer Price Index for the area, and
if no translation table prepared by the Department of
Labor is availablesoas to make those statistics which
are then available applicable to the index of June 30,
1989, the City shall prescribe a rate of payment which
shall, in its judgment, vary from the rates specified
in this section in approximate proportion as commodity
consumer prices then current -vary from commodity
consumer prices current in December.1988. On this
point, the determination by the City shall be final and
conclusive.
NOTICE IS HEREBY FURTHER GIVEN that any and all persons
having any objections to the granting of said franchise may
appear before the City Council at the City offices, located
at 23920 Valencia Blvd., Suite 300; Santa Clarita,
California, at the hour of 6.30 p.m., on
Tuesd , the 12th day of May , 1992, and
be heard thereon; and
NOTICE IS HEREBY FURTHER GIVEN that at any time not
later than the hour so set for hearing objections, any
person interested may make written protest stating
objections against the granting of said franchise, which
protest must be signed by the protestant and delivered to
the City Clerk, and the City Council will, at the time.set
for hearing said objections, proceed to hear and pass upon
all protests so made.
8G807449MES -3-
For further particulars, reference is hereby made to
said application on file in the Office of the City Clerk,
and also to Resolution No. 92-71, adopted on the day
of , 1992, declaring the City Council's intention to
grant said franchise.
PASSED, APPROVED AND ADOPTED this day of , 1992
Mayor
ATTEST:
CITY CLERK
I, Donna M. Grindey, HEREBY CERTIFY that the foregoing
Resolution was duly adopted by the City Council of the City Of Santa Clarita
at a regular meeting thereof, held on the day of 1992 by the
following vote of Council:
AYES:
NOES COONCILMEMBERS:
ABSENT COONCILMEMBERS:
CITY CLERK
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