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Home My WebLink About2000-02-22 - AGENDA REPORTS - PACIFIC PIPELINE FRANCHISE (2)CITY OF SANTA CLARITA AGENDA REPORT City Manager Item to be presenteffby: Frank Oviedo PUBLIC HEARING DATE: February 22, 2000 SUBJECT: PACIFIC PIPELINE SYSTEMS FRANCHISE DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council conduct a Public Hearing and introduce and pass to second reading an ordinance granting an oil pipeline franchise to Pacific Pipeline Systems LLC. ARCO Pipeline Company currently has a franchise with the City of Santa Clarita to operate an oil pipeline within the City's right-of-way. As part of the changes occurring, they are asking the City to provide a franchise to a newly formed company for a portion of the existing pipeline that is currently included in the existing franchise. ARCO Pipeline Company (ARCO) has joined with Pacific Pipeline Systems, Inc. (PPSI) to form a new entity for the operation of its Line 63 -pipeline system. The joint venture will necessitate the issuance of a new franchise to the new operating company, Pacific Pipeline Systems LLC, a Delaware Limited Liability Company (PPS LLC), as only a portion of the pipelines under the current franchise granted to ARCO are being transferred. It should be noted that ARCO will be retaining its current franchise (Ordinance No. 83-0013F), as only a portion of its pipeline system will be transferred to PPS LLC. The City Attorney has reviewed the existing franchise in order to update the franchise fees and modify any language in the agreement to reflect changes that have occurred since to the City's incorporation in 1987. Staff is asking the Council to introduce and pass to second reading the ordinance granting a franchise to Pacific Pipeline Systems LLC. Since the pipeline has been in operation for over fifty years this change will not affect the City or its residents in any noticeable way. The pipelines that exist will continue to operate as usual. The change will simply mean that a portion of the pipeline will have a new owner. Apo pn ®�L . �-� a . o S Ge�nr .u.,,µ.t rZCIsDfNG� Agenda 4 .-r PACIFIC PIPELINE SYSTEMS FRANCHISE February 22, 2000 — Page 2 All the rules and regulations that existed under the former company and franchise will still be in place. The action, for the most part, is procedural in nature. However, as mentioned above, the franchise has been updated to reflect increases in franchise fees and changes related to incorporation of former unincorporated areas previously located with the County of Los Angeles. ALTERNATIVE ACTION The City Council may choose not to adopt an ordinance granting an oil pipeline franchise to Pacific Pipeline Systems LLC. Other action as determined by City Council. FISCAL IMPACT Currently the City collects franchise fees from the existing oil pipeline franchise. The fees are deposited in the general fund revenue. Under the new franchise, the rate of franchise fee will be going up 34% in order to reflect the CPI. The City will collect an additional $5,600. This is the maximum that the City is allowed to collect under the Public Utility Code Section 6231.5. In addition, Pacific Pipelines Systems LLC agrees to reimburse the City for its administrative expenses up to $5,000. ATTACHMENT Location Map of Pipeline Ordinance granting an oil pipeline franchise to Pacific Pipeline Systems LLC FO:hds comcffi�egm CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING TO CONSIDER AN ORDINANCE GRANTING A FRANCHISE TO LAY AND USE OIL PIPELINES TO PACIFIC PIPELINE SYSTEMS LLC. PUBLIC NOTICE IS HEREBY GIVEN: A Public Hearing will be held before the City Council of the City of Santa Clarita to consider an ordinance granting a franchise to lay and use oil pipelines to Pacific Pipeline Systems LLC. ARCO Pipeline Company (ARCO) has joined with Pacific Pipeline Systems, Inc. (PPSI) to form a new entity for the operation of its Line 63 -pipeline system. The joint venture will necessitate the issuance of a new franchise to the new operating company, Pacific Pipeline Systems LLC, a Delaware Limited Liability Company (PPS LLC), as only a portion of the pipelines under the current franchise granted to ARCO are being transferred. The City Attorney has reviewed the existing franchise in order to update the franchise fees and modify any language in the agreement to reflect changes that have occurred prior to the City's incorporation in 1987. The hearing will be held by the Santa Clarita City Council in the City Hall Council Chambers, 23920 Valencia Blvd., 1st Floor, on the 22nd day of February, 2000, at or after 6:30 p.m. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting the City Clerk's Office, Santa Clarita City Hall, 23920 Valencia Blvd., Suite #301, Santa Clarita, CA. If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Dated: February 7, 2000 Sharon L. Dawson, CMC City Clerk Publish Date: February 9, 2000 pbhrngs\a V 1 1 SEE LOS ANQELES_CO _ vvaY-rvrtrvl e.q, m� ,•-. .n-„ af7R ?4.�. PiT •f4IT Fes? 9 ......... ............... ............... .............. .............. m `m N .......:. ....... .... ..- }.. .......... . ..... L .. : . 4 ......... .'% ...: .. .�... .......... .. w µ,, g`s fi N l ..... .......... .......... .. 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S �' Z.n 1$t JK ..' �t b �-pRC �4't� �G��G A � t� rl 'fir _. \ )y�� t � i 1 �'n f �1 ,, � � \dy '! Y ,C RtiT q$A'fL�"•igt y � 'f�¢iYPg, 9t �' aT Y i.: �, ''fff � z� Myr£' ..�' rtv�"' �'•.n'+S'yE W y � ��' • 4 y,£+'�°Ji`�§� q ✓>�.' 15M.i .,��•x•:c�n..�,..�.lE$F. •.F�� . 5 3'YF-��S��xd',;x � ? MEN - —uS�L) 'i'. i^'7v�r,trrw i�� "�e�• F,�„ `^�'v. ' � t}•�'�: '� '�-c:, ix ,,�+-i.f`� �x�•Ys'�tY;r•�r°�ai'�� s`t~-tx,;` 4yy�1' e.I � r'i7�,.,r.�� ,� -�t/ a�my�{,�.gb A T �` .� •. >tix� I .—..-._.....�M_r..._.,'. AMV .. LP7P.'�33S J _ ......,. , . X05-S313JN�:'SDl PUBLIC NOTICE NOTICE IS HEREBY GIVEN that on February 22, 2000, the City Council of the City of Santa Clarita introduced Ordinance No. 00-4 entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, GRANTING A FRANCHISE TO CONSTRUCT AND USE AN OIL PIPELINE TO PACIFIC PIPELINE SYSTEM, LLC. A certified copy of the complete text of the ordinance is posted and may be read in the City Clerk's Office, 23920 Valencia Boulevard, Suite 301, Santa Clarita, and/or a copy may be obtained from that office. Dated this 24th day of February, 2000. Sharon L. Dawson, CMC, City Clerk City of Santa Clarita STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF SANTA CLARITA ) Sharon L. Dawson, being first duly sworn, deposes and says that she is the duly appointed and qualified City Clerk of the City of Santa Clarita and that by Thursday, February 24, 2000, she caused a certified copy of the subject ordinance to be posted and made available for public review in the City Clerk's office and a copy of the ordinance summary to be published as required by law. y\ Sharon L. Dawson, CMC, City Clerk City of Santa Clarita