Report to Mayor and City Council
Tuesday, April 19, 2022
Consent
SUBJECT:
Title
CONSIDER RESOLUTION NO. 22-061, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, DECLARING ITS INTENTION TO GRANT A NONPUBLIC UTILITY PIPELINE FRANCHISE TO ULTRAMAR, INC." AND SETTING THE PUBLIC HEARING (CITY COUNCIL)
Body
I. SUMMARY
The City is considering a request from Ultramar Inc. ("Ultramar") to renew its nonpublic utility pipeline franchise for 20 years (10 years plus two 5-year options to extend). Pursuant to Charter Section 1001, the City Council must adopt a Resolution of Intention and conduct a public hearing prior to granting Ultramar a nonpublic utility pipeline franchise. This resolution declares the intent of the City Council and sets the public hearing date at May 17, 2022. 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, based on Ultramar's existing pipeline length of 100 feet within City's right of way, Ultramar will be paying the City a base franchise fee of an additional $88.00 annually over and above the amount being paid to City currently, resulting in a total of $1,760.00 in increased revenues and $5,120.00 in total revenues over the course of the 20 year term of the franchise (10 years plus two 5 year options to extend), plus the base granting fee of $1,600.00 and the retroactive base franchise fees covering the period from expiration of the existing franchise up to the time the renewed franchise goes into effect. This amount does not include the annual CPI adjustment, so the actual revenue received by the City over the renewed term will be greater than this estimate.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
WAIVE further reading and ADOPT RESOLUTION NO. 22-061 "A RESOLUTION OF THE CITY COUNCIL OF TH...
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