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TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Len Gorecki, Assistant City Manager/Director of Public Works Wangsu Lee, Management Analyst
SUBJECT: Consideration and possible action to adopt Resolution No. 24-07 - A Resolution declaring its intention to grant an oil pipeline franchise to SFPP, L.P. (“SFPP”), a Delaware Limited Partnership, and setting a public hearing date for March 11, 2024.
DATE: February 12, 2024
EXECUTIVE SUMMARY
On February 24, 1997, the City Council of the City of Bellflower adopted Ordinance No. 884, granting a 10-year oil pipeline franchise (Agreement File No. 75) to SFPP, L.P. (“SFPP”). SFPP had a 10-year oil pipeline franchise (Agreement File No. 75) which expired on February 23, 2007, but which franchise agreement SFPP maintained in a holdover status by annually submitting payments of franchise fees calculated pursuant to the terms of such franchise agreement and the City’s acceptance thereof. SFPP now seeks to be granted by the City of Bellflower a new franchise agreement for ten (10) years with the option for a ten (10) year renewal to replace the expired franchise agreement for the existing pipeline previously covered under Agreement File No. 75.
The adoption of Resolution No. 24-07 would declare the City’s intention to grant the proposed oil pipeline franchise to SFPP and set a date for the Public Hearing for March 11, 2024.
RECOMMENDATION TO CITY COUNCIL
1) Adopt Resolution No. 24-07, a Resolution declaring its intention to grant an oil pipeline franchise to SFPP, a Delaware Limited Partnership and set a Public Hearing date for March 11, 2024; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
During the term of this franchise, SFPP agrees to pay the City a base annual fee for this franchise as set forth in the California Public Utilities Code Section 6231.5. SFPP’s annual base fees will be adjusted annually based on the change in the Consumer Price Index for the Los Angeles-Long Beach-Anaheim area. The increase is based on the Consumer Price Index, All Urban Consumers, for the Los Angeles-Long Beach-Anaheim area for the month of September immediately preceding the month in which payment is due and payable, divided by the Consumer Price Index, All Urban Consumers, for the Los Angeles-Long Beach-Anaheim area for June 30, 1989. SFPP’s payment for 2023 due in March 2024 is $28,748.68.
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Staff Report - Consideration and Possible Action to Adopt Resolution No. 24-07 February 12, 2024
ENVIRONMENTAL REVIEW
The proposed franchise is exempt from additional environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.) because the granting of the oil pipeline franchises fit within the definition of the Class 1 exemption, “Existing Facilities,” as defined in Section 15301(c) of the CEQA regulations. The proposed grants of franchises involve no or negligible alteration of existing facilities involving no or negligible expansion of use beyond that existing at the time of the determination that the Categorical Exemption applies. Furthermore, the proposed grants of franchises will not adversely impact air quality or any other environmental area, as they will be subject to applicable regulatory requirements.
DISCUSSION
On February 24, 1997, the City Council of the City of Bellflower adopted Ordinance 884, granting a 10-year oil pipeline agreement (Agreement File No. 75) to SFPP. SFPP had a 10-year oil pipeline franchise (Agreement File No. 75) with the City which expired on February 23, 2007, but which franchise agreement SFPP maintained in a holdover status by annually submitting payment of franchise fees calculated pursuant to the terms of such franchise agreement and the City’s acceptance thereof. SFPP now seeks to be granted by the City of Bellflower a new franchise agreement for ten (10) years with the option for a ten (10) year renewal to replace the expired franchise agreement for the existing pipeline previously covered under Agreement File No. 75.
To approve the franchise, the following four steps must be completed:
1. Adopt Resolution of Intention to Grant a Franchise .......................... February 12, 2024
2. Publish Notice of Public Hearing ................................ February 19 and March 4, 2024
3. Conduct Public Hearing and Introduce Ordinance ................................ March 11, 2024
4. Adopt Ordinance................................................................................... March 25, 2024
ATTACHMENT
Resolution No. 24-07....................................................................................................... 3
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CITY OF BELLFLOWER
RESOLUTION NO. 24-07
A RESOLUTION DECLARING ITS INTENTION TO GRANT AN
OIL PIPELINE FRANCHISE TO SFPP, L.P. (“SFPP”), A DELAWARE
LIMITED PARTNERSHIP, AND SETTING A PUBLIC HEARING DATE
FOR MARCH 11, 2024
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. Recitals. The City Council finds and declares as follows:
A. The City Council adopted Ordinance No. 884 on February 24, 1997, granting a 10-year public utility service oil pipeline agreement (Agreement File No. 75) to SFPP, L.P. (“SFPP”);
B. SFPP had a 10-year Agreement (Agreement File No. 75) with the City which expired on February 23, 2007, but which franchise agreement SFPP maintained in a holdover status by annually submitting payment of franchise fees calculated pursuant to the terms of such franchise agreement and the City’s acceptance thereof;
C. The purpose of the pipeline is to transport oil or products thereof;
D. SFPP seeks to be granted by the City a new franchise agreement for ten (10) years, with the option of a ten (10) year renewal, for the same pipelines;
E. It is the intent of the City Council of the City of Bellflower to grant said franchise upon the applicant fulfilling all requirements of the law and additional conditions as may be required by the City;
F. The City Council will hold a public hearing on the proposed granting of the oil pipeline franchise on March 11, 2024, at 7:00 p.m. in the City Council Chambers at Bellflower City Hall, 16600 Civic Center Drive, Bellflower, California 90706. Any persons having any objection to the granting of the oil pipeline franchise may appear before the City Council and be heard at that time.
SECTION 2. Factual Findings.
A. On February 24, 1997, the City of Bellflower (“City”) granted SFPP a 10- year franchise agreement (“Agreement”) to install, operate, maintain, replace, change the size, abandon in place, and/or remove pipe lines for the transportation of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud steam of other substances transportable by pipelines, including cathodic protection facilities for SFPP’s business (‘collectively “Franchise Property”) within the public streets, highways, and other public ways or public property of the City. -3-
City of Bellflower
Resolution No. 24-07
B. SFPP had a 10-year Agreement with the City which expired on February 23, 2007, but which franchise agreement SFPP maintained in a holdover status by annually submitting payment of franchise fees calculated pursuant to the terms of such franchise agreement and the City’s acceptance thereof;
C. SFPP’s Franchise Property within the City’s public right-of-way consists of approximately ten thousand seven hundred and eight (10,708) feet of sixteen-inch (16”) pipes beginning at Downey Avenue and south City boundary; thence north in Downey Avenue to Rose Street; thence east in Rose Street to the east right-of-way line of Woodruff Avenue; thence across private easements to Carpintero Avenue; thence south in Carpintero Avenue for approximately one hundred (100) feet; thence continuing east across private easements to Palo Verde Avenue; thence north in Palo Verde Avenue to the Southern Pacific Transportation Company railroad right-of- way and the east City boundary.
D. SFPP’s Franchise Property within the City’s public right-of-way also consists of approximately fourteen thousand four hundred and twenty-five (14,425) feet of twenty-four-inch (24”) pipes beginning at the intersection of Park Street and Downey Avenue, thence proceeding easterly in Park Street, an approximate four thousand three hundred and ninety (4,390) feet to Lakewood Boulevard; thence northerly in Lakewood Boulevard, an approximate distance of six hundred twenty-five (625) feet to Walnut Street; thence easterly in Walnut Street an approximate distance of eight thousand four hundred and sixty (8,460) feet to interest the Southern Pacific Railroad right-of-way, continuing easterly from the railroad in Flora Vista Street for an approximate distance of one thousand five hundred and seventy five (1,575) feet east to the Los Angeles County Flood Control property to the approximate easterly boundary line of the City of Bellflower.
E. The City Clerk is hereby directed to transmit a certified copy of this Resolution to:
SFPP/Kinder Morgan
Attention: Kurtis Johnson, Senior Right of Way Agent
2319 S. Riverside Ave.
Bloomington, CA 92316
SECTION 3. Approval. By adopting this resolution, City Council declares its intention to grant said franchise agreement to SFPP and its successors. To the extent that any other resolution pertaining to a franchise agreement with SFPP is incorporated into this Resolution, it is superseded or amended in its entirety.
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City of Bellflower
Resolution No. 24-07
SECTION 4. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.
SECTION 5. Limitations. The City Council’s analysis and evaluation of the project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis of the project is the City Council’s lack of knowledge of future events. In all instances, best efforts were made to form accurate assumptions. Somewhat related to this are the limitations on the City's ability to solve what are in effect regional, state, and national problems and issues. The City must work within the political framework within which it exists and with the limitations inherent in that framework.
SECTION 6. Summaries of Information. All summaries of information in the findings, which precede this section, are based on the substantial evidence in the record.
The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact.
SECTION 7. Construction. This Resolution must be broadly construed to achieve the purposes stated in this Resolution. It is the City Council’s intent that the provisions of this Resolution be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Resolution.
SECTION 8. Severability. If any part of this Resolution or its Application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.
SECTION 9. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 10. The Mayor, or presiding officer, is authorized to affix its signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or its duly appointed deputy, is directed to attest.
SECTION 11. Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.
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City of Bellflower
Resolution No. 24-07
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 12TH DAY OF FEBRUARY 2024.
________________________________
Dan Koops, Mayor
ATTEST:
________________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
________________________________
Karl H. Berger, City Attorney
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