CITY OF SIGNAL HILL
STAFF REPORT
2175 Cherry Avenue • Signal
Hill, California 90755-3799
3/22/2022
AGENDA ITEM
TO:
HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM:
THOMAS BEKELE
PUBLIC WORKS DIRECTOR
SUBJECT:
PUBLIC HEARING - INTRODUCTION OF AN ORDINANCE GRANTING A FRANCHISE TO SIGNAL HILL PETROLEUM, INC.
Summary:
Form of Notice: Notice was published in the Signal Tribune newspaper per Government Code Section 65091 (a)(4) on March 4, 2022; and notice was posted in accordance with Signal Hill Municipal Code Section 1.08.010 on March 4, 2022.
Signal Hill Petroleum, Inc. (SHP) is requesting the renewal of its pipeline franchise to continue operating its pipelines, appurtenances, and other facilities within the City’s right-of-way. At the Council meeting of February 22, 2022, the City Council adopted a resolution declaring its intent to grant a 15- year franchise to SHP and set a public hearing for March 22, 2022. Staff has prepared an ordinance for Council consideration.
Recommendation:
Introduce an ordinance, entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA,
GRANTING TO SIGNAL HILL PETROLEUM, INCORPORATED THE INTERESTS, RIGHTS,
PRIVILEGES, AND DUTIES TO LAY AND USE PIPES AND APPURTENANCES FOR
TRANSMITTING AND DISTRIBUTING OIL AND PETROLEUM PRODUCTS FOR ANY AND ALL
LAWFUL PURPOSES UNDER AND ALONG THE PUBLIC STREETS, WAYS, ALLEYS, AND
PLACES, AS THE SAME NOW OR MAY HEREAFTER EXIST, WITHIN THIS CITY Fiscal Impact:
In 2020, the City received $206,094.75 in franchise fees for the franchise under Ordinance No. 2007- 04-1373, currently owned by SHP. The total pipeline footage for the franchise is 167,596 feet - 98,957 CITY OF SIGNAL HILL Page 1 of 4 Printed on 3/17/2022
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feet classified as “active” pipeline and 68,639 feet as “inactive”.
The proposed franchise includes a new total of 168,931 feet - with 100,292 feet classified as “active” pipeline and 68,639 feet as “inactive”. Based on the updated classifications and the current fee schedule, the shift in pipeline footage will increase the annual franchise fees from $206,094.75 to $209,925.24.
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TABLE A + TABLE B 2020 2021
TOTAL FEES $206,094.75 $209,925.24
The franchise fees are updated annually based on inflation.
Strategic Plan Objectives:
Goal No. 1: Ensure long-term fiscal stability.
Goal No. 6: Promote a transparent and open government.
Background and Analysis:
SHP is the owner of the pipeline franchise under Ordinance No. 2007-04-1373. The 15-year term for this pipeline franchise is expiring in 2022 and a new franchise is required for SHP to continue operating and maintaining their facilities in the City’s right-of-way.
At the Council meeting of February 22, 2022, the City Council adopted a resolution declaring its intent to grant a franchise to SHP and set a public hearing for March 22, 2022.
Staff reviewed the following documents in developing the proposed ordinance:
a. Emergency Response Plan;
b. A complete inventory of the facilities, including descriptions and maps, showing pipeline location and depth (when available), the size (internal diameter) and lineal footage of each pipeline segment, and the date of each pipeline addition or deletion. Active and inactive lines were identified;
c. A certificate under penalty of perjury that Grantee has complied with all requirements of Part 195 (Transportation of Hazardous Liquids by pipeline) of Title 49 of the United States Code of Federal Regulations;
d. Insurance;
e. Organizational structure; and
f. Financial statement showing the financial condition of the Grantee as of a date not more than one (1) year prior to Grantee’s application for the franchise.
Upon Council approval, the City Clerk’s office will cause to be posted a summary of the Ordinance pursuant to Signa Hill Municipal Code Section 1.08.019 at City Hall, Discovery Well Park, Reservoir Park, and the Signal Hill Library on or before March 25, 2022. A summary of the Ordinance will also be published in the Signal Hill Tribune newspaper per Government Code §65091(a)(4) on March 25, 2022. Second reading of the Ordinance will be agendized for the April 12, 2022, City Council meeting.
Waive the Reading of All Ordinances
Wherein the titles appear on the public agenda, said titles shall be determined to have been read by title, and further reading is waived. The purpose of waiving the reading of ordinances in full and authorizing reading by title only is to help streamline the Council meeting process, to avoid CITY OF SIGNAL HILL Page 3 of 4 Printed on 3/17/2022
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unnecessary delay and to allow more time for substantive discussion of items on the agenda.
Reviewed:
_________________________
Sharon del Rosario
Approved:
_________________________
Hannah Shin-Heydorn
Attachments
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