City Council Agenda Report
Meeting Date: November 18, 2025
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Lissette Melendez, Project Engineer
Subject
Revocable Encroachment License Agreement No. 441 with BP Products North America, Inc.
Recommendation
A. Find that approval of the proposed action is categorically exempt under the California Environmental Quality Act (CEQA), in accordance with CEQA guidelines 15061(b)(3), the general rule that CEQA only applies to projects which have the potential for causing a significant effect on the environment; and
B. Approve and authorize the Mayor to execute the Revocable Encroachment License Agreement No. 441 (Agreement) between the City of Vernon and BP Products North America, Inc. (BPPNA).
Background
BP Products North America, Inc. (BPPNA) has applied for an Encroachment License Agreement to install two (2) monitoring wells in the public right-of-way. These wells will be utilized for sampling groundwater on a quarterly or semi-annual basis for a period of up to five (5) years to determine if the water contains any contaminants.
City staff has prepared Revocable Encroachment License Agreement No. 441 between the City and BPPNA. The term of this license is for five (5) years from the effective date unless sooner terminated by either party. BPPNA has indicated their acceptance of the License Agreement by properly executing the document prior to its submission to the City Council for consideration. The City Attorney’s Office has reviewed and approved the Revocable Encroachment License Agreement as to form.
Fiscal Impact
Approval of the Agreement will result in $10,000 in additional revenue to the General Fund that shall be remitted prior to the issuance of the License. BPPNA will also pay an annual renewal fee of $1,284.00, payable each year during the term of the License resulting in revenue to the General Fund Franchises and Agreements Account No. 011-410-000-410300. The renewal fee shall be increased annually to account for inflation based on the Consumer Price Index for all Urban Consumers (CPI-U), for the Los Angeles-Anaheim-Riverside Metropolitan Area, published by the Bureau of Labor Statistics, U.S. Department of Labor.
Attachments
1. Encroachment License Agreement No. 441