Title
Consideration of and action on an ordinance granting a franchise agreement to Marathon Pipe Line LLC. (FIRST READING)
Body
Summary:
Since 1976, the City of Deer Park has granted a refined petroleum products franchise agreement to Marathon Pipe Line Inc and its predecessors. Our most recent agreement is set to expire in November 2026. Marathon came to the city and asked if the ordinance can be extended to the maximum term allowed. City Attorney Jim Fox reviewed the ordinance and provided a new one for 30 years with a change in the annual franchise fee. Marathon approved the ordinance with a slight modification which was approved by City Attorney Fox. Per the City Charter, Marathon will also pay for the publication of the full text of the ordinance after each of the readings by city council.
Per the City Charter:
• Sec. 7.01. - Power to grant franchise.
The council shall have the power by ordinance to grant, renew, and extend all franchises of every character operating within the city and, with consent of the franchise holder, to amend the same. Provided, however, that no franchise shall be granted for a term of more than 30 years.
(Ord. No. 1580, § 1(Amd. No. 25), 12-8-1981/1-16-1982)
• Sec. 7.02. - Ordinance granting franchise.
Every ordinance granting, renewing, extending, amending, transferring or authorizing the transfer or assignment of a franchise shall be read at three regular meetings of the council and shall not be finally acted upon until at least 42 days after the first reading thereof. Within five days following each of the three readings of said ordinance, the full text thereof shall be published one time in the official newspaper of the city, and the expense of such publication shall be borne by the prospective franchise holder or assignee.
(Ord. No. 1580, § 1(Amd. No. 26(1)), 12-8-1981/1-16-1982)
This ordinance will require oral readings at three (3) Council Meetings on the following dates:
First - September 1, 2026
Second - September 15, 2026
Third - October 20, 2026
This agreement will last for thirty (30) years, and includes an updated annual franchise fee.
Fiscal/Budgetary Impact:
Section 3. Grantee agrees to pay an initial fee of One Thousand Dollars ($1,000.00) for this franchise and an annual fee thereafter in the sum of One Thousand Five Hundred Dollars ($1,500.00), payable annually in advance, on or before the anniversary date of the final passage of this Ordinance.
Recommended action
Approve the first reading of this ordinance granting a franchise agreement to Marathon Pipe Line LLC.