Report to Mayor and City Council
Tuesday, January 08, 2019
Consent
SUBJECT:
Title
CONSIDER ADOPTING ORDINANCE NO. 19-1901 FOR THE RENEWAL OF A NONPUBLIC UTILITY PIPELINE FRANCHISE TO SHORE TERMINALS LLC, AMENDING ORDINANCE NO. 99-1159 (CITY COUNCIL)
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I. SUMMARY
Shore Terminals, LLC is requesting the renewal of their nonpublic utility pipeline franchise to keep their nonpublic utility pipeline in service, while the pipeline is not in use. Shore Terminals, LLC will be paying the higher franchise agreement fees granted to Tesoro Refining & Marketing Company, LLC and Torrance Pipeline Company, LLC, a subsidiary of PBF Holding Company, LLC, which was adopted October 2, 2018. As a result, Shore Terminals, LLC will be paying the City an additional $13,961.97 annually and a total of $209,429.55 during the 15-year term of this agreement.
II. RECOMMENDATION
Recommendation
TAKE the following action:
INTRODUCE FOR FIRST READING, "ORDINANCE NO. 19-1901, AN ORDINANCE OF THE CITY OF CARSON, CALIFORNIA, GRANTING THE RENEWAL OF A NONPUBLIC UTILITY PIPELINE FRANCHISE TO SHORE TERMINALS LLC, AMENDING ORDINANCE NO. 99-1159"
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate, that is consistent with the requirements of the law.
IV. BACKGROUND
On April 20, 1999, the City Council adopted Ordinance No. 99-1159 approving the assignment of a nonpublic utility franchise with Wickland Oil Company to Shore Terminals LLC ("Shore") for the remainder of Wickland's twenty-five (25) year term, originally approved in 1991 by Ordinance No. 91-948.
On September 1, 2016, Shore submitted an application for renewal before the term was set to expire on October 1, 2016. Shortly thereafter, Shore submitted a request for the City to allow for abandonment in place. On December 8, 2016, after the City provided the associated criteria for the consideration of abandonment, Shore confirmed in writing that they elected to continue with the renewal as opp...
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