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File #: 2019-120    Version: 1 Name:
Type: Discussion Status: Agenda Ready
File created: 1/31/2019 In control: City Council
On agenda: 2/5/2019 Final action:
Title: CONSIDER DIRECTING STAFF TO ORDER COMPLIANCE BY MARATHON OIL (FORMERLY TESORO REFINING & MARKETING COMPANY LLC) AND SHIPPERS TRANSPORT EXPRESS ("SHIPPERS") UNDER RESOLUTION NO. 17-088 REGARDING NON-COMPLIANT TRUCKING OPERATION ON THE SITE LOCATED AT 1150 EAST SEPULVEDA BOULEVARD, CITY OF CARSON AND/OR REQUIRE MARATHON OIL TO PAY COMPLIANCE PAYMENTS AND/OR PAY THE DELINQUENT DEPARTURE PENALTY PAYMENTS DUE (CITY COUNCIL)
Attachments: 1. Ex. 1 - Compliance Resolution, 2. Ex. 2 - Shippers Transport Express Letter Dated January 4, 2019
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Report to Mayor and City Council
Tuesday, February 05, 2019
Discussion


SUBJECT:
Title
CONSIDER DIRECTING STAFF TO ORDER COMPLIANCE BY MARATHON OIL (FORMERLY TESORO REFINING & MARKETING COMPANY LLC) AND SHIPPERS TRANSPORT EXPRESS ("SHIPPERS") UNDER RESOLUTION NO. 17-088 REGARDING NON-COMPLIANT TRUCKING OPERATION ON THE SITE LOCATED AT 1150 EAST SEPULVEDA BOULEVARD, CITY OF CARSON AND/OR REQUIRE MARATHON OIL TO PAY COMPLIANCE PAYMENTS AND/OR PAY THE DELINQUENT DEPARTURE PENALTY PAYMENTS DUE (CITY COUNCIL)

Body
I. SUMMARY

Shippers operates the largest truck parking and cargo container storage facility in the City of Carson at 1150 East Sepulveda Boulevard (59+/- acre site with approximately 2,600 spaces for trucks and containers) ("Site") in violation of the City's zoning code and City approvals and without any mitigation measures for the environmental impacts of its operations, including impacts caused by the several hundred heavy truck trips traveling to the Site daily (24/7), disturbing adjacent residential communities, causing substantial damage to the City's streets, and creating health impacts due to diesel emissions.
Marathon Oil (herein known as "Marathon," but formerly known and referred to in the agreements as Tesoro Refining & Marketing Company, LLC), the current property owner, has always known about the unpermitted violations and is responsible for correcting them. In 2017, to avoid litigation over such violations, Marathon and Shippers negotiated a Compliance Resolution with the City wherein, the parties agreed: (1) Marathon would pay an initial retroactive impact fee of $900,000; (2) Shippers would vacate the Site by December 31, 2018 ("Compliance Deadline"); (3) City would allow for an extension of the Compliance Deadline of up to two years if necessary, subject to Marathon/Shippers paying the City extension payments of $250,000 for each 3 month period of any extension; and (4) if Marathon or Shippers failed to deposit the required extensio...

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