TITLE
Recommendation to adopt Resolution of Intention declaring its intent to grant a limited Natural Gas Franchise with the Southern California Gas Company for the purpose of transmitting and distributing natural gas within the City of Long Beach; and, setting a public hearing for Tuesday, June 12, 2018, at 5:00 p.m., on the proposed extension. (Citywide)
DISCUSSION
On May 4, 1993, the City Council adopted Ordinance No. C-7106 (Ordinance) granting franchise rights to the Southern California Gas Company (SoCalGas) to transmit and distribute natural gas within the City of Long Beach (City). The Ordinance is for a 25-year term, which is due to expire on June 7, 2018. The franchise grants SoCalGas a limited right to lay, construct, operate, maintain, repair and replace, or remove pipelines and other facilities for transmitting, conducting, and distributing natural gas within the City.
City staff and SoCalGas are in the process of franchise negotiations for a new Franchise Ordinance. SoCalGas is the sole owner and operator of the gas service utility adjacent to, and surrounding the City, and is the only corporation, firm, or individual that could or would bid for the furnishing of this franchise.
For the franchise to be granted, a public hearing must be held. Therefore, the Energy Resources Department is requesting the City Council to set a public hearing for June 12, 2018, at 5:00 p.m.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on May 3, 2018 and by Revenue Management Officer Geraldine Alejo on May 1, 2018.
TIMING CONSIDERATIONS
City Council action is requested on May 15, 2018, to set a public hearing date on this matter for June 12, 2018.
FISCAL IMPACT
Franchise fee revenue accrue in the General Fund. The fiscal impact resulting from the new Franchise Ordinance is currently pending negotiations with SoCalGas. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
...
Click here for full text