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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: SEPTEMBER 26, 2023
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: PUBLIC HEARING FOR FRANCHISE TO SFPP, L.P.
ATTACHMENT (Y/N): YES ITEM # 29
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, following a public hearing:
1) By Motion, determine that the proposed Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 15301 (existing facilities) of Title 14 of the California Code of Regulations as this Franchise is being issued on an existing pipeline. 2) By Ordinance, grant a Franchise to SFPP, L.P., a Delaware limited partnership, to maintain and operate a pipeline for the transportation of oil, petroleum, gas, gasoline, or other hydrocarbon substances, excluding natural gas, or water in various streets in the City of Anaheim.
BACKGROUND:
In July of 1962, the City of Anaheim (City) granted a Pipeline Franchise to Southern Pacific Pipelines, Inc. by approving Ordinance No. 1727. Southern Pacific Pipelines, Inc., now SFPP, L.P., has maintained and operated one 10-inch and one 16-inch pipeline in various streets in the City of Anaheim, approximately 21,500 total linear feet.
Ordinance No. 1727 expired, and SFPP, L.P. has been operating the pipeline in a holdover status and paying its annual fee to the City. This Franchise would continue to bring in a yearly fee of approximately $14,800.
At the August 29, 2023 City Council meeting, the City Council determined that the proposed Franchise is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code 15284 (Pipelines) of Title 14 of the California Code of Regulations as the Franchise is being issued on an existing pipeline and adopted Resolution No. 2023-074, declaring its intention to adopt an ordinance granting a non- exclusive franchise and setting the public hearing date to consider said Franchise.
Furthermore, pursuant to Public Resources Code 15301 (existing facilities) of Title 14 of the California Code of Regulations, this Franchise, being issued on an existing pipeline, is exempt from CEQA.
Public Hearing for Franchise to SFPP, L.P.
September 26, 2023
DISCUSSION:
In conformance with City Charter Article 14, Section 1401 and the Anaheim Municipal Code Title 1, Chapter 1.03, Section 1.03.055 SFPP, L.P. submitted an application for a non-exclusive franchise to provide a pipeline for the transportation of oil, petroleum, gas, gasoline, or other hydrocarbon substances, excluding natural gas, or water in various streets in the City of Anaheim. This Franchise is an improved and updated Franchise to replace Ordinance No. 1727. SFPP, L.P. proposes to continue to routinely inspect and maintain this existing pipeline, increasing safety for the citizens of Anaheim.
No construction activities will be approved as part of this Franchise, and a separate application for a right-of-way construction permit is required. This oil pipeline is in various streets of the City of Anaheim, and SFPP, L.P. has agreed to provide the following as conditions for receiving this Franchise:
SFPP, L.P. will mark the location of their pipeline as part of the dig alert process. SFPP, L.P. will perform a complete inspection and repair of the pipeline prior to placing it back in service.
SFPP, L.P. will provide the City with regular reports on the pipeline’s condition. SFPP, L.P. will respond to a pipeline incident, and participate in any required mitigation, and pay for the cost caused by the pipeline. SFPP, L.P. will regularly inspect the pipeline and report the results. SFPP, L.P. will provide the City with a bond and appropriate insurance. SFPP, L.P. will relocate their pipelines if required by the City. This Franchise would bring in an annual fee of approximately $14,800 per year.
Staff supports the proposed Franchise as this will allow the existing pipeline to be repaired and properly maintained. This Franchise is a significant improvement over the older franchise language and gives the City more authority to ensure that the existing oil pipeline will be appropriately maintained.
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. Ordinance (Exhibit A)
2. Pipeline sketch