HomeMy WebLinkAbout19. Paramount Petroluem Franchise
AGENDA MEMO
DATE:
June 22, 2010
TO:
Mayor and Members of the City Council
FROM:
Office of the City Manager
By: Brian A. Ragland, Director of Public Works
SUBJECT:ISSUANCE OF FRANCHISE FOR A PIPELINE SYSTEM TO
PARAMOUNT PETROLEUM CORPORATION
RECOMMENDATION:
That the City Council:
ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
1.
DOWNEY DECLARING ITS INTENTION TO GRANT AN OIL PIPELINE
FRANCHISE TO PARAMOUNT PETROLEUM CORPORATION, AND
SETTING FORTH THE NOTICE OF THE TIME AND DATE FOR HEARING
ANY OBJECTIONS THERETO
; and
2. Set a public hearing for July 27, 2010 to consider any objections and granting
such franchise.
DISCUSSION:
Pursuant to applicable provisions of the California Public Utilities Code, the legislative
body of any municipality may grant a franchise to use, or to lay and use, pipes and
appurtenances for transmitting and distributing gas or industrial gas for all purposes,
under, along, across, or upon the public streets and places within the municipality.
In 1995, the City of Downey granted a ten-year franchise to Golden West Refining
Company (Golden West) to install, operate, maintain, replace, etc., pipelines for the
transportation of oil, gas, petroleum, etc., within the public streets of the City of Downey.
On April 19, 2002, Paramount Petroleum Corporation (Paramount) purchased the
pipeline from Golden West assuming all of the seller’s rights, title and interest in the
pipeline. The City Council never approved or adopted a resolution or ordinance
approving the transfer of the pipeline franchise, and Paramount has never paid any
franchise fees to the City for the operation of the pipeline.
The City and Paramount have been negotiating the terms of a new franchise agreement
since late 2009. Both parties have agreed to the terms of a new agreement that
includes the payment of unpaid fees from 2002 to 2009.
CITY OF DOWNEY, CALIFORNIA
Mayor and Members of the City Council
Issuance of Franchise for Oil Pipeline
June 22, 2010
Page 2
The franchise process must follow certain procedures set forth in the Public Utilities
Code. The next step in the process is the adoption of a Resolution of Intent and the
scheduling of a public hearing. Staff is requesting the adoption of the attached
Resolution and the setting of a public hearing at the July 27, 2010 City Council meeting.
At that time any objections, whether oral or in writing, can be received and considered
by the City Council. At the hearing, staff will submit an Ordinance setting forth the terms
and conditions of the franchise, including the rate to be paid by the franchisee.
Attachment:
Resolution
S:\AgendaMemosCC2010\6-22-10\Issuance of Franchise for Oil Pipeline.doc
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY DECLARING
ITS INTENTION TO GRANT AN OIL PIPELINE FRANCHISE TO PARAMOUNT
PETROLEUM CORPORATION, AND SETTING FORTH THE NOTICE OF THE TIME
AND DATE FOR HEARING ANY OBJECTIONS THERETO.
WHEREAS
, on September 26, 1995, through Ordinance No. 1004, the Downey City
Council granted to Golden West Refining Company (Golden West) a franchise to construct and
operate a pipeline within certain streets of the City of Downey; and
WHEREAS
, such franchise was for a term of ten years, and expired on September 26,
2005; and
WHEREAS
, on April 19, 2002, Paramount Petroleum Corporation (Paramount)
purchased the Golden West pipeline assuming all of the seller’s rights, title and interest in the
pipeline: and
WHEREAS
, the City Council never approved or adopted a resolution or ordinance
approving the transfer of the pipeline franchise: and
WHEREAS
, Paramount has notified the City that it wishes to obtain a franchise for the
former Golden West pipeline system for the transportation of gas, petroleum oil and liquid
hydrocarbon for production, transportation and storage of petroleum oil, gas and other
hydrocarbon substances, and general operations incident to the oil industry; and
WHEREAS,
pursuant to Public Utilities Code Section 6232, the City Council is required
to adopt a resolution of intention to grant such franchise, and direct the City Clerk to publish
within fifteen days after adoption of such resolution of intention and the holding of a public
hearing on adopting an ordinance granting the franchise; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1.
That consistent with the provisions of Public Utilities Code Section 6232,
it is the intention of the City Council of the City of Downey to grant a franchise to Paramount
Petroleum Corporation, a successor to Golden West Refining Company, for a pipeline system
for the transportation of gas, petroleum oil and liquid hydrocarbon for production, transportation
and storage of petroleum oil, gas and other hydrocarbon substances, and general operations
incident to the oil industry.
SECTION 2.
Notice is hereby given that on July 27, 2010, in the Council Chamber of
Downey City Hall located at 11111 Brookshire Avenue, Downey, California, all interested
persons may appear before the City Council and be heard concerning the granting of this
franchise and all other matters relating thereto. Protests stating objections against the granting
of the franchise may be in writing and must be filed with the City Clerk prior to the conclusion of
the hearing.
SECTION 3.
The City Clerk shall cause notice of the hearing to be given by causing
the notice to be published in the manner required by Public Utilities Code Sections 6232 and
6233.
RESOLUTION NO.
PAGE TWO
nd
APPROVED AND ADOPTED
this 22 day of June, 2010.
________________________________
ANNE M. BAYER, Mayor
ATTEST:
KATHLEEN L. MIDSTOKKE, City Clerk
I HEREBY CERTIFY
that the foregoing Resolution was adopted by the City Council of
nd
the City of Downey at a regular meeting thereof held on the 22 day of June, 2010, by the
following vote, to wit:
AYES: Council Members
NOES: Council Members
ABSTAIN: Council Members
ABSENT: Council Members
KATHLEEN L. MIDSTOKKE, City Clerk