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HomeMy WebLinkAbout1993-10-12 - AGENDA REPORTS - SC OIL PIPELINE FRANCHISE (2)AGENDA REPORT City Manager Approval Item to be presented by Steve Stark UNFINISHED BUSINESS DATE: October 12, 1993 SUBJECT: Santa Clarita Oil Pipeline Franchise - Transfer of Franchise from Texaco Trading and Transportation, Inc., to Texaco California Pipelines, Inc. DEPARTMENT: Finance and City Attorney BACKGROUND Presented to Council for second reading is Ordinance No. 93-17 which was introduced to Council on September 28, 1993. Such Ordinance approves the transfer of an oil pipeline franchise granted under Ordinance No. 92-10, from Texaco Trading and Transportation, Inc. to Texaco California Pipelines, Inc. To effectuate the proposed transfer, Ordinance No. 93.17 Is attached. RECOMMENDED ACTION Waive further reading and adopt Ordinance No. 93-17 ATTACHMENTS • Ordinance No. 93-17 approving a franchise transfer. • Ordinance No. 92-10 granting a franchise to construct and use an oil pipeline to Texaco. Trading and Transportation, Inc. -In reading file_. KBGHAV93fui&enAb Adopted: Agenda itram: ORDINANCE NO. 93-17 A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING A TRANSFER AND ASSIGNMENT TO TEXACO CALIFORNIA PIPELINES, INC. OF THAT CERTAIN OIL PIPELINE FRANCHISE GRANTED TO TEXACO TRADING AND TRANSPORTATION, INC. PURSUANT TO ORDINANCE NO. 92-10 THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council does hereby find, determine and declare as follows: A. On May 26, 1992, the City Council adopted Ordinance No. 92-10 granting a non-exclusive franchise to Texaco Trading and Transportation, Inc. ("TTTI") for the transportation of oil products in, under, along and across certain public streets in the City of Santa Clarita. B. On or about November 9, 1992, TTTI made a written application to the City to assign and transfer the oil pipeline franchise to TTTI's common carrier subsidiary, Texaco California Pipelines, Inc. ("TCPI'). C. On or about February 4, 1993, by letter from Burke, Williams & Sorensen to TTTI, the City requested certain information relative to the proposed transfer. D. On or about July 19, 1993, by letter from Texaco, Inc., to Burke, Williams & Sorensen, MI and TCPI responded to the City's request. E. TCPI acknowledges that it shall accept the transfer and assignment subject to all of the provisions of Ordinance No. 92-10, including without limitation Section 7 concerning the amount of the franchise fee payable to the City. The transfer and assignment will not affect any of the terms of said Ordinance. SECTION 2. Based upon the application of TTTI to transfer and assign the oil pipeline franchise granted under Ordinance No. 92-10 to TCPI and the testimony and other evidence received, and upon the investigations made by the City, the City finds that the legal, financial, character, technical and other public interest qualities of TCPI are satisfactory and that TCPI has the capability to operate and maintain the. system and comply with all requirements for the remaining term of the Franchise under Ordinance No. 92-10. SECTION 3. The City Council of the City of Santa Clarita hereby approves the transfer and assignment of that certain oil pipeline franchise granted pursuant to Ordinance No. 92-10 to Texaco California Pipelines, Inc., subject to the following conditions: 16070905 A. The transfer shall not become effective until and unless TCPI files with the City Clerk within 30 days from the effective date of this Resolution, the bond required under Section 14 of Ordinance No. 92-10 and the Certificate of Insurance required under Section 15 of Ordinance No. 92-10. B. Notwithstanding any provisions of Ordinance 92-10, TCPI shall construct, install, test, and maintain all pipes and appurtenances in conformity with the Elder Pipeline Safety Act of 1981 (Government Code § 51010, et. seg.) as amended. After installation, and for the duration of the Franchise, the franchised pipelines shall be tested in accordance with the provisions of the Elder Pipeline Safety Act and as required by the State Fire Marshal under the Elder Pipeline Safety Act. Copies of all pressure tests and accident reports concerning franchised pipelines, which are required to be submitted to the State Fire Marshal, shall simultaneously be.sent to the City Fire Chief. C. Within 30 days of the effective date of this Ordinance, TCPI shall establish all of the following to the satisfaction of the City Attorney: (1) That its property is dedicated to the service of the public; (2) That its rates for transportation are established pursuant to tariffs filed with the Public Utilities Commission; (3) That its accounts and records are established pursuant to rules and regulations adopted by the Commission; (4) That it has filed an appropriate annual report with the Commission; and (5) That its rates for transportation are just, reasonable and non- discriminatory, as evidenced either by an order of the Commission approving those rates, or an application for approval of its rates that is pending with the Commission. (Public Utilities Code § 6231.5(f)). D. Within 30 days of the effective date of this Ordinance, TCPI shall establish to the satisfaction of the City Attorney that it has filed with the City Fire Department a map or suitable diagram showing the location of the pipeline, a description of all products transported within the pipeline, and a contingency plan for pipeline emergencies which shall include, but not be limited to, any reasonable information which the State Fire Marshal may require; and further, that, within the past calendar year, it has met with the City Fire Department to discuss and review contingency plans for pipeline emergencies. E. Within 30 days of the effective date of this Ordinance, TCPI shall provide the City Clerk with the $100,000 bond required under Section 14 of the Ordinance 92-10. 16070905 -2- F. Within 30 days of the effective date of this Ordinance, TCPI shall provide the City Clerk with the insurance certificate as required under Section 15 of the Ordinance 92-10. SECTION 4 The City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published in the manner required by law. PASSED AND APPROVED this day of 1993. MAYOR ATTEST: 16070905 —3— STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) ss. CITY OF SANTA CLARITA ) I, DONNA M. GRINDEY, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the day of . 1993. That thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the day of , 1993, by the following vote, to wit: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS CITY CLERK 16070905 -4- IT IS SO ACCEPTED: TEXACO CALIFORNIA PIPELINES, INC. By: Print Name: Position/Title: 16070905 -5- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) On 1993, before me, the undersigned, a Notary Public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) who executed the within instrument as (title or position in corporation) on behalf of TEXACO CALIFORNIA PIPELINES, INC., the corporation therein named, and acknowledged to me that such corporation authorized him/her to execute the within instrument on its behalf pursuant to its bylaws or resolution of its board of directors. WITNESS my hand and official seal. (SEAL) Notary Public in and for said State ATTENTION NOTARY: Although the information requested.below is OPTIONAL, it could prevent fraudulent attachment of this certificate to another document. THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT. Title or Type of Document Number of Pages _ Date of Document _ Signer(s) Other Than 16070905 -6- Named Above