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HomeMy WebLinkAboutSCG - So Cal Gas - Southern California Gas Company - 2009-12-21 F/AJ i _ Council/Agency Meeting Held:_ 54 9 0/U Deferred/Continued to: �k Approved ❑ Conditionally Approved ❑ Denied Cle Signat r Council Meeting Date: April 19, 2010 Department ID Number: FN 10-014 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Administrator PREPARED BY: Bob Wingenroth, Director of Finance SUBJECT: Approve a Franchisee Application to Extend Revocable License between the City of Huntington Beach and the Southern California Gas Company (SoCalGas) Statement of Issue: The 1991 Settlement Franchise with SoCalGas expired on December 31, 2009. On December 21, 2009, City Council approved a Revocable License with SoCalGas for a period of 120 days. The approval of this Revocable License allows for continued SoCalGas use of public property while the terms of a new franchise are finalized. We are requesting to extend the current Revocable License between the City and Franchisee for an additional term not to exceed 120 days. Financial Impact: There is not fiscal impact required by this action. Recommended Action: Motion to: Approve and authorize the Mayor and City Clerk to execute the Franchise Application to Extend Revocable License between the City of Huntington Beach and the Southern California Gas Company. Alternative Action(s): Do not approve and direct staff accordingly. Item 15. a Page 1 REQUEST FOR COUNCIL. ACTION MEETING DATE: 4/19/2010 DEPARTMENT ID NUMBER: FN 10-014 Analysis: In anticipation of the expiration of the twenty year franchise agreement with the Southern California Gas Company ("SoCalGas"), parties entered into discussions in an effort to develop a new Franchise Agreement. These discussions have been ongoing since early 2009. It became apparent in December 2009, that the parties could not come to terms before the December 31, 2009, expiration of the franchise agreement. In order to allow negotiations to continue and to permit SoCalGas to continue to locate its existing facilities in or upon public property in the City, the City Council issued a 120 Revocable License. Such Revocable License is set to expire at the end of April 2010. Negotiations with SoCalGas are in the final stages of conclusion. Staff plans to present a franchise agreement to City Council for approval at the May 3, 2010 meeting. If approved, the action is not finalized until the ordinance is presented to the City Council for a second reading. In order to give sufficient time to complete the franchise terms and second reading of the ordinance, staff recommends approval of the 120-day extension requested by SoCalGas. Environmental Status: Not Applicable Strategic Plan Goal: Maintain financial viability and our reserves Attachment(s): es.dripejoh- 'N 1. Franchisee Application to Extend Revocable License between the City of Huntington Beach and Southern California Gas Company Item 15. - Page 2 ATTACHMENT # 1 CITY of HUNTINGTON BEACH t` P.O. Box 190 Huntington Beach, CA 92648-2702 Franchisee Application to Extend Revocable License NAME OF APPLICANT/FRANCHISEE: Southern California Gas Company Address of Applicant/Franchise: 555 west 5th Street I.os Angel ac, CA 90013 Contact Person: Jennifer Gonzalez, Public Affairs Manager Contact's phone#(s) Office:714-634-3Q54 Cell: 714-309-0063 Contact's email: jengonzalez@semprautilities.com Franchise Agreement Expiration Date: December 31, 2009 Pursuant to Huntington Beach Municipal Code Section 3.44.447, Applicant/Franchisee requests that the City of Huntington Beach extend the current Revocable License between the City and Franchisee for an additional term not to exceed 120 days from the expiration date written above permitting the Franchisee to continue to locate its existing facilities in or upon public property in the City during the term of this license. NOTE: The Mayor and City Council may issue such a revocable license, subject to any restrictions, terms, and conditions(including compensation), without limitation, that they deem to be in the best interests of the City. Nothing in this Application requires the Mayor and City Council to grant such a revocable license, nor does the issuance of such a revocable license require that the Mayor and City Council grant the Franchisee a new franchise- Applicant/F ranch isee Signature [THE SIGNOR BELOW REPRESENTS HE/SHE HAS AUTHORITY TO MAKE THIS APPL TION ON ALF OF THE FRANCHISEE.] Print Name Signature: Date: Print nameichard M. Morrqw City Clerk of the City of Huntington Beach Date signed: April 7, 2010 By. Date Received.- COUNTERPART APPROVED AS TO FORM: Fityt mey 3 a 9 p 09-2322.00 1/4 5 63 1 CITY of HUNTINGTON BEACH P.O. Box 190 Huntington Beach, CA 92648-2702 Franchisee Application to Extend Revocable License NAME OF APPLICANT/FRANCHISEE: Southern California Gas Company Address of Applicant/Franchise: 555 west 5th Street Los Angeles, CA 90013 Contact Person: Jennifer Gonzalez, Public Affairs Manager Contact's phone#(s) Office:714-6 3 4-3 0 5 4 Cell: 714-3 0 9-0 0 6 3 Contact's email: j engonzalez@semprautilities .com Franchise Agreement Expiration Date: December 31, 2009 Pursuant to Huntington Beach Municipal Code Section 3.44.447, Applicant/Franchisee requests that the City of Huntington Beach extend the current Revocable License between the City and Franchisee for an additional term not to exceed 120 days from the expiration date written above permitting the Franchisee to continue to locate its existing facilities in or upon public property in the City during the term of this license. NOTE: The Mayor and City Council may issue such a revocable license, subject to any restrictions,terms,and conditions(including compensation),without limitation,that they deem to be in the best interests of the City. Nothing in this Application requires the Mayor and City Council to grant such a revocable license, nor does the issuance of such a revocable license require that the Mayor and City Council grant the Franchisee a new franchise_ ----1 Applicant/Franchisee Signature [THE SIGNOR BELOW REPRESENTS HE/SHE HAS AUTHORITY TO MAKE THIS APPLJCATION ON LF OF THE FRANCHISEE.] Print Name: Cathy Green, Mayor Signature: - Date Signed: Print name Richard M. Morrow City Clerk of the City of Hu�tin ion Beach Date signed: April 7, 2010 B ""- Yi< ;. / Joan, 1. Flynn Date Receiv d: f f COUNTERPART APPROVED AS TO FORM: ity Att rney 09-2 321001/4>63 City ®f Huntington Beach 2000 Main Street • Huntington Beach, CA 92648 ' ® OFFICE OF THE CITY CLERIC e JOAN L. FLYNN CITY CLERIC April 21, 2010 Southern California Gas Company Attn: License Manager 555 West Fifth Street P. O. Box 3249 Los Angeles, CA 90051-1249 To Whom It May Concern: Enclosed for your records is a copy of the Franchisee Application to Extend Revocable License Between the City of Huntington Beach and Southern California Gas Company for 120 days. Sincerely, an L. Flynn City Clerk JF:pe Enclosure G:followup:agrmtltr Sister Cities: Anjo, Japan ® Waitakere, New Zealand (Telephone:7 9 4-536-5227) CITY ®f HU NGTON BEACH ®�� • P.O. Box 190 Huntington Beach, CA 92648-2702 Franchisee Application for Revocable License NAME OF APPLICANT/FRANCHISEE: _ Jou`yhei_n Address of Applicant/Franchise- Co ntact Person: �ZCG2 C /,yP ll5 Contact's phone #(s) Office: Cell: Contact's email: Franchise Agreement Expiration Date: Pursuant to Huntington Beach Municipal Code Section 3.44.447, Applicant/Franchisee requests that the City Council of the City of Huntington Beach grant a Revocable License to extend the Franchise Agreement between the City and Franchisee for a term not to exceed 120 days from the expiration date written above permitting the Franchisee to continue to locate its existing facilities in or upon public property in the City during the term of this license. NOTE: The Mayor and City Council may issue such a revocable license, subject �,o any restrictions, terms, and conditions (including compensation), without limitation, that they deem to b6h them,, best interests of the City. Nothing in this Application requires the Mayor and City Councilftb grant. uch a'k. revocable license, nor does the issuance of such a revocable license require that the Mayor;anti"Gity, Council grant the Franchisee a new franchise. Applicant/Franchisee �. [THE SIGNOR BELOW REPRESENTS HE/SHE HAS AUTHORITY TO MAKE THIS APPLICATION ON BEHALF OF THE FRANCHISEE.] Signature: Print name City Clerk of the City of Hunti ton Beach Date signed- By, Date R c ived:_�a��/D APPROVED AS TO FORM- ty Attorney 09-2322 001,42784 Southern California �FC Gas Company A Sempra Energy utiiity- syG -1.9 APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY To . City Administrator, Huntington Beach, California. 2000 Main St . Huntington Beach, CA 92648 Dear City Administrator: The undersigned applicant hereby makes an application for a license to extend the current franchise by and between the City of Huntington Beach and the Southern California Gas Company to lay and use pipes and appurtenances for transmitting and distributing gas for any and all purposes, under, along, across or upon the public streets, ways, alleys and places, as the same now or may hereafter exist within the City of Huntington Beach. (a) The name of the applicant is Southern California Gas Company. The applicant is a corporation organized and existing under and by virtue of the laws of the State of California and engaged as a public utility corporation in transmitting and distributing gas for all purposes to consumers in various municipalities and communities in the State of California. (b) The term for which the license herein appl is 20 days . ry By Stuart Wells N v d -�y Franchise and Fees Manager - Southern California Gas Co. ,^v 1 r' "4 Council/Agency Meeting Held: D Deferred/Continued to: *App veg ❑ Conditionally Approved ❑ Denied Cit CI 's Sign I re Council Meeting Date: 12/21/2009 Departure ID Number: 09-32 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY CO IL SUBMITTED BY: FRED A. WILSON, CITY ADMINIST R PREPARED BY: PAUL EMERY, DEPUTY CITY AD NISTRATOR SUBJECT: Approve a Revocable License between the City of Huntington Beach and the Southern California Gas Company j[Sta—t,m,,—t,flssue, Funding Source, Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The 1991 Settlement Franchise with SoCalGas is set to expire on December 31, 2009. Despite ongoing negotiations between the City and SoCalGas new franchise terms have not been agreed to. The approval of this Revocable License will allow for continued SoCalGas use of public property while the terms of a new franchise are resolved. Funding Source: There is no funding required by this action Recommended Action: Motion to: Approve and authorize the Mayor and City Clerk to execute the Revocable License between the City of Huntington Beach and the Southern California Gas Company. Alternative Action(s): Do not approve and direct staff accordingly. REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 12/21/2009 DEPARTMENT ID NUMBER: 09-32 Analysis: The City of Huntington Beach and the Southern California Gas Company ("SoCalGas") entered into a franchise agreement in 1991 as part of a settlement and release agreement between the parties. The settlement agreement term is set to expire on December 31, 2009. In early 2009, the parties entered into discussion in an effort to develop a new Franchise Agreement. To date, the parties have been unable to come to terms relative to franchise payments to the City. On November 16, 2009, the City Council adopted an ordinance amending the Municipal Code creating the opportunity to enter into a license agreement. The proposed Revocable License has a term not to exceed one hundred-twenty (120) days and permits SoCalGas to continue to locate its existing facilities in or upon public property in the City. During the term of the Revocable License it is anticipated that the City and SoCalGas will reach agreement on terms of a new franchise. During the term of the license SoCalGas shall pay as compensation the amount calculated using the compensation formula to be established in the new gas franchise agreement. This payment will be made no later than June 2010. Strategic Plan Goal: Maintain our Financial Reserves Environmental Status: N/A Attachment(s): Pa(gp NuMlioro ® . e 1. Revocable License between the Southern California Gas Company and the City of Huntington Beach -2- 12/10/2009 2:22 PM ATTACHMENT # 1 REVOCABLE LICENSE BETWEEN THE SOUTHERN CALIFORNIA GAS COMPANY AND THE CITY OF HUNTINGTON BEACH Whereas, the gas franchise agreement of Southern California Gas Company (Licensee") expires as of December 31, 2009, and Licensee has requested, but has not yet obtained, a new franchise agreement; and Licensee, pursuant to Huntington Beach Municipal Code Chapter 3.44, has made a written application requesting the Mayor and City Council to issue the Licensee a written revocable license, for a term not to exceed one hundred-twenty (120) days from the expiration of the License, permitting the Licensee to continue to locate its existing facilities in or upon public property in the City during the term of the license; and The Mayor and City Council has determined that it is in the public interest to issue a revocable license to Licensee, subject to the following restrictions,terms, and conditions: 1. DEFINITIONS Whenever the words or phrases hereinafter in this section defined are used, they shall have the respective meanings assigned to them in the following definitions (unless, in the given instance, the context wherein they are used shall clearly import a different meaning): (a) The word "Licensee" shall mean Southern California Gas Company, and its lawful successors or assigns; (b) The word "City" shall mean the City of Huntington Beach, a Charter City and a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated or reincorporated form; (c) The word "streets"shall mean the public streets,ways, alleys and places as the same now or may hereafter exist within said City; (d) The word"Engineer"shall mean the City Engineer of the City; (e) The word "License" shall mean and include any authorization granted hereunder in terms of a License, privilege, permit, license or otherwise to lay and use pipes and appurtenances for transmitting and distributing gas for any and all purposes under, along, across or upon the public streets, ways, alleys and places in the City, and shall include and be in lieu of any existing or future City requirement to obtain a license or permit for the privilege of transacting and carrying on a business within the City; (f) The word "gas" shall mean natural or manufactured gas, or a mixture of natural and manufactured gas; (g) The phrase "pipes and appurtenances" shall mean pipe, pipeline, cable, main, service, trap, vent, vault, manhole, meter, gauge, regulator, valve, conduit, appliance, attachment, appurtenance and any other property located or to be located in, upon, along, across, under or over the streets of the City, and used or useful in, or in carrying on the business of, transmitting and distributing gas; II. REVOCABLE LICENSE A. Pursuant to Huntington Beach Municipal Code Chapter 3.44 the City does hereby issue a revocable license to Licensee to lay and use its existing pipes and appurtenances, for transmitting and distributing gas for any and all purposes, under, along, across or upon the streets of City for a period 09-2035.001141820 1 not to exceed one hundred twenty(120)days, commencing January 1, 2010. B. City shall have the right to revoke this License, without cause, and at any time, by giving Licensee thirty(30) days prior written notice of revocation. C. Licensee shall pay the City, as compensation for this License, the amount calculated using the compensation formula to be established in the new gas franchise agreement for the effective period of the License. The estimated payment for this period will be calculated and.paid pursuant to the terms of the new gas franchise with payment to be made no later than the end of June, 2010. D. Except as otherwise provided herein, the terms and conditions of the existing gas franchise agreement dated January 1, 1990, are hereby incorporated in this License. E. Any notices under this License shall be in writing and be delivered by courier service or by certified mail, return receipt requested, or by telecopy with a confirming copy mailed (first class mail) by the next business day, to the other party at the address shown below or at such other address as the party may designate by written notice delivered in the manner provided for herein: City of Huntington Beach Southern California Gas Company Attn: City Clerk, City Administrator Attn: License Manager 2000 Main Street 555 West Fifth Street Huntington Beach, CA 92418 P.O. Box 3249 Los Angeles, CA 90051-1249 Teiecopy number:213-244-8212 Confirmation number: 213-244-5060 IN WITNESS WHEREOF, the parties have caused this Agree ment to be executed by and through their authorized officersC7.B�C SOUTHTR,N, CALIFORNIA GAS COMPANY CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California ee Stewart - SVP Gas OperationsA ZZAA print name ITS: (circle one)ChairmaniPresident/Vice May President ND City lark / / 10 cry_ l._� INITIAT WED AND APPROVED: print name ITS: (circle one)Secretar hief Financial ic`�st. ecretary-Treasurer i P nistrator APPROVED AS TO FORM: 4 Pity Attorney 09-2035.001/41820 2 RCA ROUTING SHEET INITIATING DEPARTMENT: ADMINISTRATION SUBJECT: REVOCABLE LICENSE SOCALGAS COUNCIL MEETING DATE: December21, 2009 RCA TiATTAGH ENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable ❑ Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable ❑ Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable ❑ Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable ❑ Certificates of Insurance (Approved by the City Attorney) Attached Not Applicable ❑ Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable ❑ Bonds (If applicable) Attached ❑ Not Applicable ❑ Staff Report (If applicable) Attached ❑ Not Applicable ❑ Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable ❑ Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable ❑ EXPLANATIONI IATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff ( ) ( ) Deputy City Administrator (Initial) ( ) ( ) City Administrator (Initial) ( ) ) City Clerk ( ) IV EXPLANATION FOR RETURN OF ITEM: RCA Author: EMERY City of Huntington Beach ,ry 2000 Main Street ® Huntington Beach, CA 92648 OFFICE OF THE CITY CLERK JOAN L. FLYNN CITY CLERK December 22, 2009 Southern California Gas Company Attn: License Manager 555 West Fifth Street P. O. Box 3249 Los Angeles, CA 90051-1249 To Whom It May Concern: Enclosed for your records a copy of the Revocable License between the City of Huntington Beach and the Southern California Gas Company. Sincerely, Joan L. Flynn, CMC City Clerk JF:pe Enclosure G:followup:agrmtltr Sister Cities: Anjo, Japan • Waitakere, New Zealand (Telephone:714-536-5227)