Title
Text Amendments to Phoenix City Code Chapter 5A - Industrial Gas Pipeline License (Ordinance G-7028)
Description
Request for City Council to adopt text amendments to Phoenix City Code Chapter 5A for Industrial Gas Pipeline Licenses to include a definition for public right-of-way, insert a new subsection in section 5A-17 (License Fees), update insurance and bonding requirements, clarify terms related to notices, and adopt other conforming changes.
Report
Summary
Ordinance G-2199 was adopted by City Council on May 19, 1981, to create a new City Code Chapter 5A for the City to issue Industrial Gas Pipeline License to licensees for the construction, operation, maintenance, and reconstruction of an industrial gas pipeline. Certain terms and conditions in this chapter were amended in Ordinance G-3961 that was adopted by City Council on Oct. 9, 1996.
The Ordinance related to this item amends Chapter 5A of the City Code to define public right-of-way, provide a different license fee structure under section 5A-17 provided certain requirements are satisfied, update the standards for insurance coverage and bonding, clarify terms related to notices, and adopt other conforming changes.
Section 5A-17, License Fees, shall be amended to add subsection B. The amendment shall provide a framework for annual license fees that fairly compensate the City when the industrial gas pipelines are crossing only one right-of-way area to provide gas products to an industrial gas user.
Financial Impact
There is no financial impact to the budget. The annual compensation for gas pipelines to cross one right-of-way area will be up to $125,000. If the licensee’s industrial gas pipelines cross more than one right-of-way, the licensee shall remit annual license fees of two percent of gross revenues for the additional crossings.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Street Transportation Department.