City of Long Beach - File #: 18-0460

• File #: 18-0460
• Version: 4
• Name: ER - Franchise Ordinance
• Type: Ordinance
• Status: Adopted
• File created: 5/22/2018
• In control: City Council
• On agenda: 2/5/2019
• Final action: 2/12/2019
• Title: Recommendation to declare ordinance granting to Southern California Gas Company, a corporation, the right, privilege and franchise upon terms and conditions herein set forth to lay and use pipes and appurtenances for transmitting and distributing gas for the purposes as specified hereinafter under, along, across or upon certain public streets, ways, alleys and places, as the same now or may hereafter exist, within the City of Long Beach, read and adopted as read. (Citywide)
• Sponsors: Energy Resources

Date	Ver.	Action By	Action	Result
2/12/2019	4	City Council	approve recommendation and adopt	Pass
2/5/2019	1	City Council	declare ordinance read the first time and laid over to the next regular meeting of the City Council for final reading	Pass
10/9/2018	1	City Council	laid over	Pass
6/19/2018	2	City Council	withdrawn
6/12/2018	1	City Council	laid over	Pass

TITLE
Recommendation to declare ordinance granting to Southern California Gas Company, a corporation, the right, privilege and franchise upon terms and conditions herein set forth to lay and use pipes and appurtenances for transmitting and distributing gas for the purposes as specified hereinafter under, along, across or upon certain public streets, ways, alleys and places, as the same now or may hereafter exist, within the City of Long Beach, read and adopted as read. (Citywide)

DISCUSSION
On May 15, 2018, the City Council adopted a Resolution of Intention declaring its intent to grant a limited Natural Gas Franchise with the Southern California Gas Company (SoCalGas) for the purpose of transmitting and distributing natural gas within the City of Long Beach (City) and set the public hearing for June 12, 2018.

California Code, Public Utilities Code - PUC § 6233 requires a public hearing to be held before the City Council and a publication of hearing in a newspaper of general circulation within the municipality before granting of a gas franchise. A public hearing notice was published in the Long Beach Press-Telegram on May 16, 2018, and no responses were received as of the date of preparation of this report. Any responses and comments received will be conveyed to the City Council prior to the public hearing.

The attached Ordinance (Franchise Ordinance) 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 for a 50-year term and replaces Ordinance C-7106, which expired on June 7, 2018. Under the new Franchise Ordinance, the annual permit fee paid to the City by SoCalGas will be eliminated. The franchise fee component will remain unchanged and continue at 2 percent of the gross annual receipts arising from the use, operation, or possession of said franchise, plus an “in-lieu” fee, which is that certain fee de...