COUNCIL COMMUNICATION

 

DATE:

 

5-19-2003

 

SUBJECT: FINAL READING OF ORDINANCE 2003-O-134

ADDING NEW ARTICLE VIII OF CHAPTER 28 TO THE CODE OF ORDINANCES,  CONSISTING  OF SECTIONS 28.151 TO 28.157; PROVIDING FOR DEFINITIONS; REQUIRING A LICENSE AGREEMENT IN ORDER TO INSTALL AN OIL OR GAS PIPELINE ON PUBLIC PROPERTY; PROVIDING FOR AN ANNUAL  PUBLIC PROPERTY USE FEE FOR LOCATION OF SAME AND THE MODE OF COMPUTING SAID FEE;  PROVIDING FOR A ONE TIME CROSSING FEE FOR EXCAVATION AND INSTALLATION OF A PIPELINE ON A CITY STREET AND THE MODE OF  COMPUTATION OF SAME; PROVIDING FOR APPLICATION OF A CROSSING FEE FOR ANY ALTERATION OR REMOVAL OF A PIPELINE; PROVIDING FOR PUBLICATION; AND PROVIDING FOR EFFECTIVE DATE

 

 

INITIATED BY:

 

Larry Dovalina

City Manager

 

 

STAFF SOURCE:

 

 Jaime L. Flores

City Attorney

 

 

 

 

PREVIOUS ACTION:

 

None.

 

 

 

BACKGROUND:

There are three pending license agreements to be entered into with three oil or gas transmission companies.  Hitherto on the subject of use charges there has been no ordinance setting forth a regulatory fee to be charged for the location of such pipelines in, on or under city streets and other city property.  This ordinance will provide an enacted basis for calculating the user fee, which fee will be made a part of each license agreement with a transmission company, prior to that license agreement being hereafter submitted to the City Council for approval.

 

 

 

FINANCIAL:

 

None.

 

 

RECOMMENDATION:

 

 

 

 

 

STAFF RECOMMENDATION:

 

That ordinance be introduced.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ORDINANCE  NO. 2003-O-134

 

ADDING NEW ARTICLE VIII OF CHAPTER 28 TO THE CODE OF ORDINANCES,  CONSISTING  OF SECTIONS 28.151 TO 28.157; PROVIDING FOR DEFINITIONS; REQUIRING A LICENSE AGREEMENT IN ORDER TO INSTALL AN OIL OR GAS PIPELINE ON PUBLIC PROPERTY; PROVIDING FOR AN ANNUAL  PUBLIC PROPERTY USE FEE FOR LOCATION OF SAME AND THE MODE OF COMPUTING SAID FEE;  PROVIDING FOR A ONE TIME CROSSING FEE FOR EXCAVATION AND INSTALLATION OF A PIPELINE ON A CITY STREET AND THE MODE OF  COMPUTATION OF SAME; PROVIDING FOR APPLICATION OF A CROSSING FEE FOR ANY

ALTERATION OR REMOVAL OF A PIPELINE; PROVIDING FOR PUBLICATION; AND PROVIDING FOR EFFECTIVE DATE

 

  WHEREAS, there has not been a set fee for oil or gas companies use of streets, rights of way and any city owned property for location of underground gas or oil pipelines, but rather licenses have been  granted by the City on a negotiated ad hoc basis, rather than under a legislated fee formula; and

 

  WHEREAS, staff recommend that a formula for such fees be set up by ordinance of the

City to be utilized in the preparation of any license agreement with an oil or gas company,

each of which agreements is submitted for approval of the City Council;

 

 WHEREAS, staff proposes the enactment of the following Article VIII for addition to Chapter 28 of the Code of Ordinances.

 

  WHEREAS, under this proposed ordinance,  the supervisory director will be the City Engineer.

 

NOW, THEREFORE, BE IT ORDAINED  BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

 

                             PART 1: Article VIII of Chapter 28 the Code of Ordinances

 

There is hereby adopted a new Article VIII of Chapter 28 of the Code of Ordinances consisting of the following Sections 151-158:

 

                                               Section 28-151.  Statement of purpose

 

This Article sets forth  the established policy to be used by the City from the date of its  adoption,  (1) to  establish and fix the annual fee to be charged users of  public property of the City for the privilege of locating and maintaining  pipelines,  to carry any substance, solid, liquid or gaseous material within the public property of the City, and (2) to establish and fix a crossing fee to be charged a pipeline owner  for the crossing of any public way, whether it be a street, road or alley, and, in the former case the minimum rate is established under Section 28.154 and in the latter case, the minimum rate is established under Section 28.155

 

                                                        Section 28.152. Definitions

 

In this Article  the following definitions shall apply:

 

Public way: means any street, alley or lane of the City of Laredo, other than interstate or

state highways within the city limits of the City.

 

Public way crossing: any crossing of any street, alley or lane of the City of Laredo, by a pipeline placed by either the open-cut method or by boring or by  jacking or other means under a public way.

 

Public property: means any real estate owned by the City of Laredo, including its streets and easements.

 

License Agreement: is contract negotiated  between the City and an oil and/or gas production or transmission company or operator, in which, in lieu of a franchise, the latter  is granted  a license  the City  for use of a specified public property  for location of an  underground or overground pipeline or pipelines, and, among its other provision, the agreement must specify  an annual  fee calculated under the formula provided in Section 28.154, and, if applicable, the one-time fee

calculated under the formula provided in Section 28.155.

 

Public property use fee: means the fee calculated under the formula provided in Section 28.154.

 

Street Crossing fee: means the fee calculated under the formula provided in Section 28.155.

 

                                                Section 28.153.   License Agreement

 

No person shall make an excavation on any public property or in any public utility reserve or easement for the purpose of laying, removing, installing or maintaining an oil or gas pipeline without first having entered into a license agreement with the City of Laredo, and authorized by the City Council, which will license agreement will include the fees set forth below, as applicable,  in addition to such other provisions  as the city deems appropriate. The applicant

for a license agreement shall file a plan with the City Engineer showing in detail the size of

the pipeline, the depth and width of the pipeline, and the exact location of the excavation or pipeline with particular reference to all structures or lines of the City or any public utility company, sidewalk, pavement or other public improvements.

 

 

 

 

                                   Section 28.154.  Computing  public property use fees

 

The annual fee for use of the street, right-of-way or other public property of the City for the locating or maintaining of any pipeline shall be computed as follows:

 

1.  The basic rate for the laying locating or  maintaining of any pipeline for the transporting of any substance, solids, liquids, gases, within the public right of way or easement of the City shall be $1.00 per lineal foot of pipe up to and including six (6) inches in diameter, plus ten cents ($0.10) per inch of nominal diameter per lineal foot over and above six(6) inches in diameter.

 

2. This basic rate shall also apply to road and street crossings.

 

3. The rate for multiple lines is to be calculated at the basic rate times the number of lines.

 

4. The basic rate  shall not apply to vaults, manholes, valve boxes or similar appurtenances as such, provided, however, that lineal foot charges as prescribed in 1, above, shall be computed

continuously through any such structure along a straight center line projected between the connection orifice(s) of a pipe in such structure.

 

                                        Section 28.155. Computing street crossing fee

 

In addition to the annual basic rate specified in Section 28.154, there shall be the following

street crossing fee, in the event of any excavation for removal or installation of a pipeline

which crosses a City road or street:

 

1. The fee for the first road or street crossing as defined above shall be one hundred and fifty

($150.00) dollars for pipe sizes up to six(6) inches in diameter, then fifteen dollars ($15.00) per additional inch nominal diameter for sizes in excess of six (6) inches.

 

2.   The fee for the second road or street crossing and all other than the first road or street

crossing, except as provided in paragraph 3, infra, if applicable, , shall be one hundred fifty dollars ($150.00) per crossing up to six (6) inches in diameter, then fifteen dollars ($15.00) per additional inch nominal diameter for sizes in excess of six (6) inches

 

3. Multiple lines may be placed under the roadway with a one-fee crossing charge of two hundred and fifty  ($250.00) minimum, for all lines plus fifteen dollars ($15.00) per additional inch nominal diameter for sizes in excess of six inches (6), provided all said multiple line are within ten (10) lineal feet of each other measured from the outside of any such line to the outside of any other such line. If lines are placed where the distance exceeds ten (10) feet from outside to outside of line, then the pipe situated in excess of this distance will be treated as a separate and

 additional street crossing, and the fee computed accordingly..

 

 

                                           Section 28.156.  Determination of diameter

 

Where casings are used for road crossings or other construction, the basic rate or fee shall be

computed on the basis of the diameter of the line to be cased and not the casing.

 

               Section 28.157. Applicability of street crossing fee in other circumstances

 

The street crossing fee of Section 28.155 shall also apply to any pipe lineal footage which is already licensed under an existing license agreement,  if application is made to rework, revamp, wrap or otherwise lower or replace an existing line or existing lines when such work is performed on twelve (12%) percent or more of the total pipe lineal footage which is already licensed under an existing license agreement or will require four (4) or more days to

complete.  A half-day (four hours) or more of work shall constitute a whole working day

for purposes of this calculation.                              

 

                                                            PART 2:   Publication   

 

This ordinance shall be published in the manner provided by Section 2.09(D) of the Charter of the City of Laredo, except that in lieu of publication of the full text, it shall be sufficient to publish the descriptive caption of title of the ordinance, stating in summary the purpose of the ordinance and the penalty for violation thereof.

 

                                                         PART 3:   Effective Date: 

 

This ordinance shall become effective as and from the date of publication as required by Part 2.

             

 

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS

 

______DAY OF ____________________, 2003

 

 

 

 

 

__________________________

ELIZABETH G. FLORES

MAYOR

 

 

ATTESTED:                                                        

__________________

GUSTAVO GUEVARA, JR.                                

CITY SECRETARY

 

 

APPROVED AS TO FORM:

________________________ 

JAIME L. FLORES

CITY ATTORNEY