REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Bill Krill, Real Estate and Project Manager
Subject:
title
Approve for introduction Ordinance No. 4230 to authorize execution of an Amendment to the Pipeline Franchise Agreement with Cardinal Pipeline, L.P. for the operation and maintenance of a pipeline system for the transportation of oil, gas, and other hydrocarbon substances
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Statement of Issue:
The Franchise Agreement between the City of Huntington Beach and Cardinal Pipeline, L.P. expired on February 13, 2024. The Franchise Agreement is now up for extension and a ten-year Amendment is being proposed for the operation and maintenance of the existing pipeline system for the transportation of oil, gas, and other hydrocarbon substances.
Financial Impact:
The City will continue to receive a Base Annual Fee of $117,024.35 plus any adjustments by an annual rate of change based on the Consumer Price Index (CPI).
Recommended Action:
recommendation
A) Approve for introduction Ordinance No. 4230, "An Ordinance of the City Council of the City of Huntington Beach Amending Ordinance No. 4008 which Granted an Oil Pipeline Franchise"; and,
B) Approve and authorize the Mayor and City Clerk to execute the "Amendment to Franchise Agreement between the City of Huntington Beach and Cardinal Pipeline, L.P."
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Alternative Action(s):
Do not approve the recommended action and direct staff to draft correspondence informing Franchisee that existing pipeline must be abandoned pursuant to HBMC and State code. This action would result in revenue loss for the City.
Analysis:
Staff is requesting approval of an Amendment to the Franchise Agreement between the City of Huntington Beach and Cardinal Pipeline, L.P. for the operation and maintenance of an existing pipeline system used for the transportation of oil, gas, and o...
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