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Agenda Item
ASR
Control 19-001158 |
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MEETING DATE: |
02/11/20 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
4 |
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SUBMITTING
Agency/Department: |
OC Public Works
(Approved) |
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Department contact
person(s): |
Julie Lyons (714) 667-9701 |
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Larry Stansifer (714) 667-3286 |
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Subject: First Reading of Proposed
Ordinance for Torrance Pipeline Company LLC Franchise
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Ordinance to Form |
Public Hearing |
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3 Votes Board Majority |
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Budgeted: Yes |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: $4,000
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Prior Board Action: 1/14/2020
#28, 7/9/1996 #67 |
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RECOMMENDED ACTION(S):
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1. |
Read title of ordinance, "An Ordinance of the Board of Supervisors of the County of Orange Granting to Torrance Pipeline Company LLC a Franchise for the Transportation and Distribution of Refined Petroleum Products in the County of Orange for Ten (10) years." |
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2. |
Order further reading of the Ordinance be waived. |
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3. |
Conduct Public Hearing pursuant to California Public Utilities Code Section 6234. |
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4. |
Direct Ordinance to be placed on the agenda of the next regularly scheduled Board meeting for adoption. |
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5. |
Consider the matter and adopt the Ordinance at the next regularly scheduled meeting. |
SUMMARY:
Adoption of an Ordinance to grant a utility franchise to Torrance Pipeline Company LLC adheres to the requirements of the California Public Utilities Code and sets forth the statutory annual fee to be paid by the holder of the franchise.
BACKGROUND INFORMATION:
The Franchise Act of 1937 authorizes the Board of Supervisors (Board) to grant a franchise to gas, oil, electric and water companies to lay and use pipes, connections and appurtenances for the transmission and distribution of the utility service under, along, across and upon public streets and alleys.
On July 9, 1996, the County of Orange (County) granted ExxonMobil a franchise to construct, operate and maintain pipelines for the transportation of hydrocarbon substances. In 2016, ExxonMobil sold their North Orange County assets to PBF Holding Company LLC. Shortly thereafter, ExxonMobil Pipeline assets were transferred from PBF Holding Company LLC to Torrance Pipeline Company LLC (Company), a designated affiliate. The Company then filed an application for a franchise and OC Public Works negotiated the proposed franchise for a 10-year term.
The Public Utilities Code Sections 6201-6302 set forth the statutory annual fees to be paid by the holder of franchise transporting oil or products thereof. OC Public Works completed an audit of associated fees for this franchise and recommends that the Company pay the County a one-time administration fee of $4,000 to process the franchise. The most recent fees paid by the Company were $979 for FY 2017-18 and $931 for FY 2018-19. The annual franchise fee, based upon the length and diameter of the pipe located within the franchised area, will be adjusted per the Consumer Price Index (CPI) as published by the United States Department of Labor (USDL) for future calendar years. Upon execution of the franchise renewal, future relocation efforts by the Company will be governed by the franchise.
On January 14, 2020, the Board adopted the Resolution of Intention to grant the franchise and directed the Clerk of the Board to publish a Notice of Public Hearing for adoption of the franchise. OC Public Works has now returned to the Board for the public hearing on the proposed franchise and, if appropriate after the public hearing, requests the Clerk of the Board to place this agenda item on the next regularly scheduled Board meeting on February 25, 2020, for the adoption of the franchise.
Compliance with CEQA: The proposed project was previously determined to be Categorically Exempt (Class 1) from the provisions of CEQA pursuant to Section 15301 on January 14, 2020, because it renews an original existing Franchise Agreement (Ordinance No. 3962) granting a new 10-year refined petroleum, non-exclusive franchise right to the Company.
FINANCIAL IMPACT:
There will be a revenue deposit of a one-time administrative fee of $4,000 to General Fund Budget Control 001. The annual franchise fee is estimated to be approximately $1,000 and will be adjusted annually based on the CPI published by the USDL for future years. The annual franchise fee will continue to be recorded to General Fund Budget Control 001.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Resolution of Intention
Attachment B - Location Map
Attachment C - Proposed Ordinance
Attachment D - CA Public Utilities Code Sections 6201- 6302
Attachment E - Prior Ordinance No. 3962
Attachment F - Public Notice