Report to Mayor and City Council
Tuesday, May 07, 2019
Consent
SUBJECT:
Title
CONSIDER RESOLUTION NO. 19-143 SETTING THE PUBLIC HEARING TO DECLARE THE INTENTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, TO GRANT A NONPUBLIC UTILITY PIPELINE FRANCHISE TO PRAXAIR, INC. (CITY COUNCIL)
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I. SUMMARY
The City is considering a request from Praxair to renew its nonpublic utility pipeline franchise. Pursuant to Charter Section 1001, the City Council must adopt a Resolution of Intention and conduct a public hearing prior to granting Praxair a nonpublic utility pipeline franchise. This resolution declares the intent of the City Council and sets the Public Hearing Date at August 6, 2019. Praxair will adhere to the same franchise agreement fees as Tesoro Refining & Marketing Company, LLC and Torrance Pipeline Company, LLC, a subsidiary of PBF Holding Company, LLC. As a result, Praxair will be paying the City an additional $24,875.94 on an annual basis, which results in a total of $373,139.10 over the course of the 15 year term of this agreement.
II. RECOMMENDATION
Recommendation
WAIVE further reading and ADOPT Resolution No. 19-143 "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, DECLARING ITS INTENTION TO GRANT A NONPUBLIC UTILITY PIPELINE FRANCHISE TO PRAXAIR, INC."
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate, consistent with the requirements of the law.
IV. BACKGROUND
On October 3, 1989, the City Council adopted Ordinance No. 89-884 granting a 25 year term nonpublic utility franchise to Union Carbide Industrial Gases, Inc., which was later renamed Praxair, Inc On August 7, 1990, the City Council adopted Ordinance No. 90-912, amending Ordinance No. 89-884, and renewing the twenty-five year nonpublic utility pipeline franchise. On September 6, 2015, Ordinance No. 90-912 expired; however, Praxair submitted a timely application for renewal and continued to make payments as invoice...
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