HomeMy WebLinkAbout1998-07-14 - AGENDA REPORTS - RESO 98-76 (2)CITY OF SANTA CLARITA
AGENDA REPORT
City Ma ager Approval
Item to be presented by: Steve Stark
CONSENT CALENDAR
DATE: July 14,1998
SUBJECT: TRANSFER OF FRANCHISE AGREEMENT FROM TEXACO TRADING
AND TRANSPORTATION, INC (TTTI) TO EQUILON CALIFORNIA
PIPELINE COMPANY
RESOLUTION NO. 98-76
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council adopt Resolution No. 98-76, granting the transfer of the pipeline operated under
Ordinance No. 92-10, from Texaco Trading and Transportation, Inc. to Equilon California
Pipeline Company, subject to all terms and conditions of the original agreement
BACKGROUND
On May 26, 1992, the City Council granted a non-exclusive franchise to Texaco Trading and
Transportation, Inc. (TTTI) for the term of ten (10) years from and after December 10, 1991.
This franchise authorized the TTTI to lay and use pipelines, not to exceed twenty-four (24)
inches in internal diameter, for the transportation of oil and products thereof, in, under, along,
and across the public streets in the City.
This change of ownership and operational control is being requested due to a merger between
Texaco and Shell Oil Company. Therefore, due to the merger and in accordance with the
Agreement, Section 17-C, which states that the City shall not unreasonably withhold its
consent to a Franchise transfer, a transfer is being requested.
In order to proceed with the transfer, the Franchise Agreement, Section 17-A, states that a
Grantee shall not transfer the Franchise without the prior consent of the City expressed by
resolution.
FISCAL IMPACT
The City receives an annual franchise fee based on the pipe size multiplied by the base rate per
lineal foot. Based on this formula, the City receives approximately $350 per year. By
transferring this Franchise, the Grantee is responsible for all provisions set forth in the original
agreement, including the annual franchise fee.
Adopted: ;it Me 014
ore.,
RESOLUTION NO, 98-76
July 14, 1998 — Page 2
ATTACHMENT
Resolution No. 98-76 granting the transfer of the pipeline operated under Ordinance No. 92-10
from Texaco Trading and Transportation, Inc. to Equilon California Pipeline Company, subject
to all terms and conditions of the original agreement. '
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mnd\..98-76
RESOLUTION NO. 98-76
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA CLARITA, CALIFORNIA,
APPROVING THE TRANSFER OF FRANCHISE ORDINANCE 92-10
TO EQUILON CALIFORNIA PIPELINE COMPANY
FROM TEXACO TRADING AND TRANSPORTATION, INC.
WHEREAS, The City of Santa Clarita has entered into a non-exclusive Franchise Agreement
with Texaco Trading and Transportation, Inc. to lay and use pipelines, not to exceed twenty-
four (24) inches in internal diameter, for the transportation of oil and products thereof, in,
under, along, and across the public streets in the City of Santa Clarita, and;
WHEREAS, the pipelines operated under Ordinance No. 92-10, the Franchise Agreement, is
in the process of being transferred to Equilon California Pipeline Company LLC., as a result
of a merger between Texaco and Shell Oil Company, and;
WHEREAS, according to Section 17-C of the Franchise Agreement, the City shall not
unreasonably withhold its consent to a Franchise transfer, and:
WHEREAS, according to Section 17-A of the. Franchise Agreement, the grantee shall not
transfer ownership without the prior consent of the City expressed by resolution;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLAIRTA,
CALIFORNIA, does resolve as follows:
SECTION 1. The City Council of the City of Santa Clarita approves the transfer of control of
Franchise Agreement, Ordinance No. 92-10, to Equilon California Pipeline Company, subject
to all the terms and conditions of the original agreement.
PASSED AND APPROVED THIS day of , 19
JAN HEIDT, MAYOR
ATTEST:
mu"s) M D)80:1
RESOLUTION NO. 98-76
Page 2
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do 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 14TH day of July. 1998, by the following vote of the
Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK