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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: AUGUST 29, 2023
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: INTENTION TO GRANT A FRANCHISE TO SFPP, L.P.
ATTACHMENT (Y/N): YES ITEM # 16
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Resolution, declare the City of Anaheim’s intention to grant a franchise to SFPP, L.P., a Delaware limited liability company (SFPP), and setting a time and place from the public hearing thereon.
That the City Council, by Motion, approve a Memorandum of Understanding (MOU) with SFPP, L.P., to establish mutual promises and obligations to realign an existing pipeline located at Lincoln Avenue and Manchester Court at SFPP’s sole cost, and authorize the City Manager to execute the MOU on behalf of the City of Anaheim (City).
DISCUSSION:
In conformance with the City of Anaheim Charter Article 14, Section 1401 and the Anaheim Municipal Code Title 1, Chapter 1.03, Section 1.03.055, SFPP applied for a non-exclusive franchise for an existing pipeline for the transportation of petroleum, gas, and other substances in and across portions of public right-of-way through the City of Anaheim. This Franchise is an improved and updated Franchise to replace the Southern Pacific Pipe Lines Franchise granted by Ordinance No. 1727. SFPP proposes to operate, inspect, repair, and maintain this existing pipeline adhering to federal and state pipeline laws and regulations to ensure the integrity of the pipeline for the safety of the City of Anaheim and its residents. No construction activities are being approved as part of this Franchise. A separate application for a right-of-way construction permit would be required for any future improvements.
This Franchise would bring in an annual fee of approximately $14,900. Adopting this Resolution will set the public hearing for the September 26, 2023, City Council meeting.
In addition to the Franchise, is an MOU between SFPP and the City. The City identified a portion of an existing pipeline generally located at Lincoln Avenue and Manchester Court that conflicts with future development plans for adjacent sites. SFPP has agreed to resolve this conflict by realigning the conflicting segment pipeline at its sole cost. The MOU, if approved, establishes mutual promises and obligations.
Intention to Grant a Franchise to SFPP, L.P.
August 29, 2023
IMPACT ON BUDGET:
The revenue from the franchise agreement would be deposited in the General Fund.
Respectfully submitted,
Rudy Emami
Director of Public Works
Attachments:
1. Resolution
2. Memorandum of Understanding