TITLE
Recommendation to authorize City Manager to execute any and all documents necessary for a License Agreement between the City of Long Beach and Signal Hill Petroleum (SHP), Inc., a California corporation, for use of City-owned land located at the corner of 2nd Street and Shopkeeper Road, to allow access to oil operations at the adjacent property; and increase appropriations in the General Fund (GP) in the Department of Public Works (PW) by $12,000. (District 3)
DISCUSSION
SHP owns property rights immediately adjacent to 33.77 acres of City-owned land located at 2nd Street and Shopkeeper Road, but currently lacks access to any public street. As a result, SHP requires a License Agreement to utilize an access road on the City’s land that will allow access to their property. City staff and authorized oil operators currently use the access road, but funds are not available to maintain the road and adjacent property. Required annual maintenance includes weed abatement, trash removal, non-native plant removal and native plant re-vegetation. The $12,000 will also help fund project management to help write grants. The dirt access road and electronic access gate will also need to be periodically maintained. The revenue from the License Agreement will fund the appropriations increase in its entirety.
In order to accommodate the proposed use, staff recommends a License Agreement with the following major terms and provisions:
· Licensor: City of Long Beach.
· Licensee: Signal Hill Petroleum Inc.
· Access Area: Access Road on 33.77 acres of City-owned land as depicted in the site map (attached).
· Term: The term shall commence on June 7, 2010 and terminate on June 6, 2015.
· Right to Cancel: Both parties shall have the right to terminate the license agreement upon ninety days written notice.
· Permitted Use: Licensee shall, at its own cost, use the Access Area for the purpose of accessing SHP-owned property.
· License Fee: Licensee shall make monthly...
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