Report to Mayor and City Council
Tuesday, May 17, 2022
Special Orders of the Day
SUBJECT:
Title
PUBLIC HEARING TO CONSIDER ADOPTING ORDINANCE NO. 22-2212, AN ORDINANCE OF THE CITY OF CARSON, CALIFORNIA, TO GRANT A NONPUBLIC UTILITY PIPELINE FRANCHISE TO ULTRAMAR INC.
Body
I. SUMMARY
Ultramar Inc. ("Ultramar") is requesting that the City grant it a nonpublic utility pipeline franchise. On April 19, 2022, the City Council adopted a resolution declaring its intention to grant a nonpublic utility pipeline franchise to Ultramar and to hold a public hearing for all persons having interest in or any objection to the matter. Ultramar will adhere to the same franchise agreement fees as other pipeline companies approved by City Council in recent years, such as Tesoro Refining & Marketing Company, LLC, Torrance Pipeline Company, LLC, Shore Terminals, LLC, and Praxair, Inc. As a result, Ultramar will be paying the City an additional $88.00 for the first year and $93.13 for each year thereafter, which results in a total of $1,857.28 in increased revenues and $5,217.28 in total revenues over the course of the 20-year term of the franchise (10 years plus two 5 year options to extend).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. OPEN the public hearing, TAKE public testimony, and CLOSE the public hearing; AND
2. INTRODUCE for first reading "ORDINANCE NO. 22-2212, AN ORDINANCE OF THE CITY OF CARSON, CALIFORNIA, TO GRANT A NONPUBLIC UTILITY PIPELINE FRANCHISE TO ULTRAMAR INC."
Body
III. ALTERNATIVES
1. If the City Council determines that the terms and conditions of the attached Ordinance require further changes, then pursuant to Charter Section 1001.B, the City shall restart the franchise award process with a Resolution of Intention reflecting the revised terms and conditions.
2. TAKE another action the City Council deems appropriate that is consistent with the requirements of the law.
IV. BACKGROUND
On April 1, 1997, the City Council ...
Click here for full text