HomeMy WebLinkAboutRES 14-6921 (OIL AND GAS PIPELINES FRANCHISE)2
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RESOLUTION NO. 14-6921
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, DECLARING ITS INTENTION TO
SUBMIT A PROPOSED FRANCHISE FOR OIL AND GAS PIPELINES
TO THE ELECTORATE RELATING TO A PROPOSED OIL AND GAS
DRILLING AND PRODUCTION PROJECT PROPOSED BY E&B
NATURAL RESOURCES MANAGEMENT CORPORATION FOR THE
CITY MAINTENANCE YARD AT 555 6TH AND SETTING A TIME TO
RECEIVE ANY OBJECTIONS TO PLACING THE FRANCHISE
BEFORE THE VOTERS FOR APPROVAL
SECTION 1. Recitals:
1. The Settlement Agreement between the City and E&B Natural Resources Management
Corporation ("E&B") calls for the City Council to submit to the voters at a special election the
question whether to amend the Hermosa Beach Municipal Code to allow E&B's oil and gas
drilling and production project to proceed at the City maintenance yard located 555 6th Street and
to approve a development agreement that would afford E&B a vested right to proceed with its
project ("Project"). If approved by the voters, the ballot measure will allow the Project to be
developed by E&B in accordance with Oil and Gas Lease No. 2 (the "Lease") entered into in
January, 1992 between the City and Macpherson Oil Company ("Macpherson"), E&B's
predecessor -in -interest.
2. The proposed Project also involves the grant of a pipeline franchise to E&B,
authorizing the construction and use of oil/gas pipelines under the City's public streets.
Specifically, the project proposes placement of oil and gas pipelines constructed underground in
the right of way of Southbound Valley Drive to the City of Hermosa Beach border with Redondo
Beach at Herondo Street, as described in the map attached hereto as Attachment A and
incorporated herein by reference (limited to the portion of the pipeline shown within the territorial
boundaries of the City of Hermosa Beach) ("Franchise").
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH, CALIFORNIA, DOES HEREBY RESOLVE:
SECTION 2. It is the intention of the City Council of the City of Hermosa Beach to
submit the proposed Franchise for oil and gas pipelines (as described above) to the electorate as
part of a proposed ordinance relating to the Project.
SECTION 3. On October 14, 2014 at 7:00 p.m., in the Hermosa Beach City Council
chambers at 1315 Valley Drive in Hermosa Beach, California, the Hermosa Beach City Council
will consider calling a special municipal election on Tuesday, March 3, 2015, to ask the voters
whether the Project should be approved with: 1) amendments to the General Plan and Municipal
Code, 2) a pipeline franchise to transport oil/gas underground, 3) a development agreement, and 4)
a determination that project benefits outweigh its unavoidable environmental impacts.
SECTION 4. At the October 14, 2014 meeting, the City Council will also conduct a
hearing to receive any objections to placing the franchise before the voters for approval. All
persons having objections to placing the franchise before the voters for approval on March 3, 2015
may appear before the City Council and be heard.
SECTION 5. The City Clerk is hereby directed to publish notice of the date, hour and
place of this hearing at least once within fifteen (15) days after the passage of this resolution in a
newspaper of general circulation within the City of Hermosa Beach. As required under California
Public Utilities Code Sections 6232 and 6233, the notice of the time and place of hearing
objections shall also state that E&B and its successors and assigns will, during the life of its
franchise, pay to the City the royalties as set out in the Lease and these royalties shall subsume
any franchise fees. The notice shall declare that in the event such payment is not made, the
franchise will be forfeited. The notice shall also state that the term of this Franchise will be co -
terminus with the term of the Lease.
SECTION 6. The City Clerk shall certify to the passage and adoption of this Resolution,
shall enter the same in the book of original Resolutions of said City; and shall make a minute of
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14-6921
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the passage and adoption thereof in the records of the proceedings of the City Council at which the
same is passed and adopted.
PASSED, APPROVED AND A3TED this 23rd day of September, 2014.
PRESIDENT of the City
ATTEST:
City Clerk
MAYOR of the/City of Hermosa Beach, California
APPROVED AS TO, FORM:
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ATTACHMENT A
DIAGRAM OF OIL AND GAS PIPELINES
FOR PIPELINE FRANCHISE
i .......i u. Conceptual Locations of Gas and
,� Oil Pipeline Scenarios
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF HERMOSA BEACH
I, Elaine Doerfling, City Clerk of the City of Hermosa Beach, California, do
hereby certify that the foregoing Resolution No. 14-6921 was duly and regularly passed,
approved and adopted by the City Council of the City of Hermosa Beach at a Regular
Meeting of said Council at the regular place thereof on September 23, 2014.
The vote was as follows:
AYES: DiVirgilio, Fangary, Petty, Mayor Tucker
NOES: Barragan
ABSTAIN: None
ABSENT: None
Dated September 23, 2014
Elaine Doerfling, City