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)
Okay. Thank you very much. We do have a hearing tonight, so I'm going to turn this over first to staff so we can begin the hearing process. Madam Clerk. You want to read the hearing. Report from Energy Resources recommendation or receive supporting documentation into the record and conclude the public hearing regarding the natural gas franchise with SoCal Gas. Declare an ordinance granting a limited natural gas franchise to SoCal Gas to transmit and distribute natural gas within the city red for the first time and laid over to the next regular meeting of the City Council for Final Reading Citywide. There's no oath required. Mr. MODICA. Thank you, Mr. Mayor. Members of the City Council, we will have a staff report by Bob Dow, our director of Energy Resources. Not even one of my own council members. In June of 1993. The City of Long Beach entered into a 25 year franchise agreement with a Southern California gas company or SoCal Gas, to allow natural gas pipelines owned and operated by SoCal Gas, which run through the city of Long Beach to provide natural gas delivery services to certain residential and commercial customers within the city of Long Beach. That agreement expired on June 7th, 2018. For the past several months, Long Beach Energy Resources staff have been in negotiations with SoCal Gas to enter into a new franchise agreement, and a tentative agreement has been reached. Under this new agreement, the City of Long Beach will continue to receive fees based on the gross annual receipts and imputed . Value of Nonproprietary Gas. Delivered to SoCal Gas customers residing and operating within the city of Long Beach. The anticipated revenue generated from the franchise agreement is approximately 2.6 million annually. Staff hereby recommends council to adopt the first reading of the ordinance granting the renewed natural gas franchise. Staff will return before Council on October 9th, 2018 to request adoption of the second ordinance. Reading. During the time. Period between the first and second readings, SoCal Gas has agreed to seek approval from the California Public Utilities Commission, or CPC, for the collection of an additional 1% surcharge to the current CPC approved municipal surcharge. This additional surcharge has. Routinely. Been granted by the CPC and other municipal jurisdictions where SoCal Gas and other utilities maintain franchise operations and provides for future revenues to remain in line with those of the expiring franchise agreement. This concludes my report and I'm happy to answer any questions. So, Mr. Mayor, members of the Council, that recommendation is slightly different than what you have in front of you. So we are recommending that instead of laying it over to the next regular meeting, you lay it over until October 9th to give us that ability to go and speak to the PUC. Thank you. Okay. Thank you. We have a motion and a second public comments on the hearing, seeing no public comments on the hearing. Well, move over to Vice Mayor Richardson. Councilman Austin. Okay. Now, then, we're going to close this hearing and please cast your votes. Motion carries. Okay. Thank you. Motion is carried. Next up is we are doing we've had a couple. We've had a couple of requests to move some items up. So let me start with item 25.