Report to Mayor and City Council
Tuesday, November 21, 2023
Special Orders of the Day
SUBJECT:
Title
PUBLIC HEARING TO CONSIDER ADOPTING ORDINANCE NO. 23-2310, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, GRANTING A PUBLIC UTILITY PIPELINE FRANCHISE TO ZENITH ENERGY WEST COAST TERMINALS, LLC (CITY COUNCIL)
Body
I. SUMMARY
Zenith Energy West Coast Terminals, LLC ("Zenith") has requested that the City grant it a renewed public utility pipeline franchise. On November 7, 2023, the City Council adopted a resolution declaring its intention granting a public utility pipeline franchise to Zenith and to hold a public hearing for all persons having interest in or any objection to the matter.
Zenith will be required to pay City annual fees established under Public Utilities Code Section 6231.5 that apply equally to all public utilities such as Zenith. As a result, based on Zenith's existing pipeline length of approximately 25,442 feet within City's right of way, Zenith will be paying the City a minimum of $30,553.46 per year with $30,553.46 representing the amount for the year 2023, resulting in a total of at least $611,069.20 (this does not include CPI adjustments) in continued revenues over the course of the 20-year term of the franchise (10 years plus two 5-year options to extend), plus the retroactive base annual fees covering the period from expiration of the existing franchise as of August 14, 2023 up to the time the renewed franchise goes into effect. This amount does not include the annual CPI adjustment, so the actual nominal revenue received by the City over the renewed term will be greater than this estimate. Zenith will also be responsible for paying all publication costs incurred in connection with the granting of the proposed franchise as provided under CMC Section 6817.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. OPEN the public hearing, TAKE public testimony, and CLOSE the public hearing; AND
2....
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