Item No. 16.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: MATTHEW BAUMGARDNER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE: MAY 26, 2026
SECOND READING AND ADOPTION OF ORDINANCE GRANTING A FRANCHISE SUBJECT: AGREEMENT RENEWAL WITH TESORO SOCAL PIPELINE COMPANY LLC
EXECUTIVE SUMMARY
The City Council will consider adopting an ordinance declaring its intention to grant an oil pipeline franchise agreement to Tesoro SoCal Pipeline Company LLC (Tesoro) which expired on February 10, 2026. The proposed term of this renewal is for 10 years through February 2036. If the franchise agreement is renewed, the estimated first -year franchise fee revenue would be $32,387 which would be adjusted annually in subsequent years by the Consumer Price Index (CPI).
RECOMMENDATION
That the City Council:
Adopt Ordinance No. 26-1542, granting a renewal of an Oil Pipeline Franchise Agreement to Tesoro Socal Pipeline Company LLC.
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On January 10, 2006, the City Council adopted Ordinance No. 06-1184, granting a 10-year franchise to BP West Coast Products, LLC to construct, operate, maintain, inspect, repair, remove, replace, and abandon an eight inch oil pipeline within certain streets of the City. On July 23, 2013, the City Council subsequently adopted Resolution No.13-7430 granting a transfer of the franchise from BP West Coast Products LLC to Tesoro.
On October 12, 2015, Tesoro submitted a letter to the City requesting the renewal of their franchise agreement for another 10 years. On December 8, 2015, the City Council adopted a resolution declaring its intention of renewing an oil pipeline franchise with Tesoro and setting the date of public hearing for January 12, 2016. Subsequently, on January 12, 2016, the City Council introduced an ordinance upon conclusion of a public hearing on the matter. On January 26, 2016, the City Council adopted Ordinance No. 16-1351 (Attachment A), granting a 10-year franchise to Tesoro. In late 2025, Tesoro submitted a letter to the City requesting the renewal of their franchise agreement for an additional 10 years. The existing agreement expired on February 10, 2026. On May 12, 2026, the City Council introduced the attached ordinance at a public hearing to discuss the proposed oil pipeline franchise agreement renewal. The pipeline is part of an underground system through several cities that transports oil. It will continue to be operated and maintained by Tesoro. The attached map shows the location of Tesoro Pipeline within the City (Attachment B).
ANALYSIS
The proposed franchise would be for a 10-year term and contains the rules under which Tesoro would operate the pipeline. Ultimately, the City Council may, at its sole and absolute discretion, approve, deny, or condition the approval of any such request. The term of the new franchise, if granted, will be effective February 10, 2026. Per letter dated October 29, 2025 (Attachment C), the Office of the State Fire Marshal (OSFM) confirms that the subject pipeline, which passes through the City of Downey, is in compliance with applicable federal and state laws and regulations governing pipeline maintenance and operation. On May 12, 2026, a public hearing was held to afford the community an opportunity to provide feedback regarding the proposed oil pipeline franchise agreement renewal.
In accordance with the terms of the franchise agreement, an annual franchise fee shall be paid by Tesoro every year within sixty (60) days after the end of each calendar year, including the year of granting. Within thirty (30) days following the adoption of the ordinance, Tesoro will pay the City a base granting fee in the amount of $10,300.
Additionally, a base annual fee shall be paid every year within sixty (60) days after the end of each calendar year, including the year of granting. The initial base annual fee for the 19,748 feet of eight (8) inch pipeline within the City of Downey right of way will be $32,387. A penalty at the rate of ten percent (10%) per month or fraction there of beyond the sixty (60) day payment date will be charged.
The annual payment for each lineal foot of pipeline will be adjusted at the time payment is due by the percentage change in the CPI, all Urban Consumers for the Los Angeles -Long Beach -Anaheim area. In no event shall any base fee be charged which is less than the base fee amount of $1.64 per lineal foot. This rate is consistent with the base fee per lineal foot that is charged by other public agencies in the region.
CITY COUNCIL PRIORITIES
Fiscal Responsibility
FISCAL IMPACT
Approval of the recommended actions will result in an increase in revenues of $42,687 in Fund 10 (General Fund) in Fiscal Year 2025-26 recorded in Revenue Account No. 10-3-1860. In subsequent fiscal years, the City will budget for and receive ongoing annual franchise revenues of approximately $32,387, subject to annual Consumer Price Index adjustments.
Attachments
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Attachment C - Letter from Fire •.
Attachment M Publi�_Hearing.pdf
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY
GRANTING AN OIL PIPELINE FRANCHISE TO TESORO SOCAL
PIPELINE COMPANY LLC
WHEREAS, under Section 1400 of the Downey City Charter, the City Council, by ordinance, "may grant a franchise to any person, partnership, corporation, or other legal entity capable of exercising the privilege conferred, whether operating under an existing franchise or not, and may prescribe the terms, conditions, and limitations of such grant, including the compensation to be paid in the City therefor"; and WHEREAS, on September 26, 1995, through Ordinance No. 1006, the Downey City Council granted a ten-year franchise to the Atlantic Richfield Company ("Arco") to construct and operate a pipeline system for the transportation of gas, petroleum oil and other hydrocarbon substances and general operations incidental to the oil industry within certain streets of the City of Downey; and
WHEREAS, on January 10, 2006, through Ordinance No. 06-1184, the Downey City Council granted another ten-year franchise for this same purpose to Arco's successor -in - interest, BP West Coast Products LLC; and
WHEREAS, in 2013, this franchise was assigned and transferred to Tesoro SoCal Pipeline Company LLC ("Tesoro"); and
WHEREAS, in 2015, Tesoro requested and was granted another ten-year franchise for its pipeline system within the City, through Ordinance No. 16-1351, as adopted on January 26, 2016; and
WHEREAS, the current franchise expires on February 16, 2026, and Marathon Pipe Line LLC, the operator of the pipeline system, has requested another ten-year franchise for this pipeline system on behalf of Tesoro, which remains the owner of the system; and
WHEREAS, pursuant to Section 1403 of the City Charter, before granting any franchise, the City Council must pass a resolution declaring its intention to do so and fixing the time, date, and place for a public hearing at which the matter will be considered; and
WHEREAS, on April 28 2026, the City Council adopted a Resolution declaring its intention to grant an oil pipeline franchise to Tesoro on terms and conditions similar to the existing franchise and fixing a public hearing for May 12, 2026; and WHEREAS, on May 12, 2026, the City Council held a duly noticed public hearing to consider adopting an ordinance granting the franchise.
ORDINANCE NO. 26-1542
PAGE 2
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Definitions. For the purpose of this ordinance, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number.
a. "Applicable Law" shall mean all present or future federal, state, municipal, or local laws, rules, regulations, ordinances, orders, policies, actions, guidelines, permit requirements, directives, judgments, injunctions, or decrees, or any judgment or order or decree by a court applicable to the Franchisee or any of Franchisee's Facilities or activities that are subject to this Franchise. b. "Claims" shall mean all claims, losses, liabilities, causes of action, demands, damages, suits, judgments, debts, costs, claims for payment, contribution or indemnity, expenses (including but not limited to attorney's fees and costs), fines, penalties, judgments, orders, injunctions and liens of every kind and nature, whether based in tort, equity, contract, strict liability or statute, whether seeking judicial, arbitral, administrative, or equitable relief, and including, but not limited to, claims relating to any Environmental Condition or any Release of any Contaminant, claims for personal or bodily injury, wrongful death, injury to real or personal property, natural resources damages, and including claims based on active or passive negligence, gross negligence, contractual or statutory liability, or otherwise, and any claims seeking judicial or administrative relief, or relating to any formal or informal administrative proceedings by any governmental agency, and whether or not any such claim is ultimately defeated.
c. "Contaminant" shall mean any substance or constituent, chemical or waste, whether solid, liquid, semisolid, or gaseous in nature, including any hazardous substance or waste, hazardous material, chemical compound or element, petroleum (or fraction thereof), or any hydrocarbon substance, pollutant or contaminant, as those terms are defined in their broadest sense by any federal, state or local law, rule, regulation or order.
d. "City" shall mean the City of Downey
e. "Council" shall mean the City Council of the City of Downey. f. "Day" shall mean calendar day unless otherwise provided. g. "Environmental Condition" shall mean the presence or likely presence of any Contaminant originating from any Facility or from Franchisee's activities, in
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surface water, ground water, drinking water supply, soil, land surface, subsurface strata or the air.
h. "Facilities" shall mean all property owned or used by the Franchisee in connection with the franchise, including, but not limited to, pipelines, pump stations, valves, communication equipment to remotely control valves, pipeline monitoring equipment, cathodic protection devices to control electrolytic deterioration, and service connections with the Franchisee's Facilities, whether installed by the Franchisee or not, erected, constructed, laid, operated or maintained in, upon, over, under, along or across any Street pursuant to any right or privilege granted by the franchise.
i. "Franchisee" shall mean Tesoro SoCal Pipeline Company LLC, to whom the franchise is granted, and any person to whom the franchise is subsequently lawfully assigned.
j. "Franchise Payment Period" shall mean the time period between the effective date of this ordinance granting the franchise through and including December 31 of that same year, and each calendar year thereafter, during the life of the franchise.
k. "Franchise Report Period" in all cases shall mean the time period between the effective date of this ordinance granting the franchise through and including December 31 of that same year, and each calendar year thereafter, during the life of the franchise.
"Major street" shall mean any street or portion thereof designated as a major Secondary Highway in the Circulation Element of the Downey General Plan. m. "Minor street" shall mean all streets in the City other than those designated as "Secondary Highways" in the Circulation Element of the Downey General Plan. n. "Person" shall mean any individual, person, firm, partnership or corporation. o. "Release" shall mean any "release" (as that term is defined in Section 101(22) of CERCLA [42 U.S.C. Section 9601(22)]), or "disposal" (as that term is defined in Section 1004(3) of RCRA [42 U.S.C. Section 6903(3)]), or any discharge, active or passive migration, deposit, storage, burial, emplacement, seepage, filtration or disposal of a Contaminant into the environment originating from any Facility or from Franchisee's activities.
p. "Remediation Costs" shall mean all costs and expenses, including overhead costs, incurred by the City in performing and monitoring any Remedial Work. q. "Remedial Work" means all "Remedial Action", as that term is defined in Section 101(24) of CERCLA [42 U.S.C. Section 9601 ], and all other actions as
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are necessary or required to fully remediate a Release or threatened Release of any Contaminant or an Environmental Condition to a condition which would allow unimpaired and unrestricted use and development and would comply with Applicable Law, including but not limited to all actions necessary to "Respond" to, "Remove", or "Remedy", as those terms are defined in Sections 101(23), 101(24) and 101(25) of CERCLA [42 U.S.C. Section 9601], a Release of a Contaminant or Environmental Condition.
r. "Shall" is mandatory, "may" is permissive.
s. "Street" shall mean any street, road, highway, alley, lane or court or other public easement, which now exists or may hereafter exist in the City of Downey and in which the City has the authority to grant a franchise.
SECTION 2. Term. The term of this franchise shall be ten (10) years effective February 17, 2026.
SECTION 3. Acceptance of Franchise. The Franchisee shall, within thirty (30) days after the passage of this ordinance, file with the City Clerk of the City of Downey a written acceptance of the terms and conditions of this ordinance. The franchise shall be null and void if the written acceptance is not filed within the prescribed time.
SECTION 4. Change in Status. If, after granting the franchise, the Franchisee qualifies before the Public Utilities Commission of the State of California as a common carrier, the Franchisee shall then have no right to continue to operate under the franchise after the date of such qualification, except with the consent of the Council, granted upon such additional terms and conditions as the Council may deem proper. Such additional terms and conditions must be expressed by ordinance.
SECTION 5. Forfeiture. This franchise is granted and shall be held and enjoyed upon each and every condition contained in this ordinance, and shall be strictly construed against the franchisee. Nothing shall pass thereby unless it be granted in plain and unambiguous terms. Any neglect, failure or refusal to comply with any of the conditions of the franchise, including the failure to comply with all Applicable Law, shall constitute grounds for the suspension or forfeiture of the franchise. The Council, prior to any suspension or forfeiture of the franchise, shall give to the Franchisee at least thirty (30) days' notice in writing of any default. If the Franchisee does not, within the noticed period, begin the work of compliance therewith or after beginning fails to prosecute the work with due diligence to completion, the Council may hold a hearing, at which the Franchisee shall have the right to appear and be heard, and thereupon the Council may determine, in its sole discretion, whether such conditions are material and essential to the franchise and whether the Franchisee is in default with respect thereto and may declare the franchise suspended or forfeited. Notice of hearing shall be given to the Franchisee by certified mail not less than five (5) days before the hearing.
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SECTION 6. Value of Franchise. The Franchisee, by accepting the terms and conditions of this ordinance, stipulates and agrees that in any proceeding for the purpose of adjusting the rates of the Franchisee, no greater value shall be placed upon the franchise than the actual dollar amount paid by the Franchisee.
SECTION 7. State Highways. If any street or portion thereof becomes a state highway, except for such rights as by law remain with the City, the state shall succeed to all rights reserved to the City by the franchise. This subsection does not apply to any change of location in a state highway for a temporary purpose.
SECTION 8. Eminent Domain. The City's grant of franchise shall not impair or affect the right of the City or any successor in authority to acquire the property rights of the Franchisee by purchase or condemnation, and nothing contained in the franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain in respect to any public utility or other franchise.
SECTION 9. Assignment. The Franchisee shall not directly or indirectly sell, transfer, assign or lease the franchise or any part thereof, or allow another Person or entity to operate any Pipeline or related Facility subject to the franchise, except with the consent of the Council. Such sale, transfer, assignment, lease or agreement shall be made only by filing with the Council a copy of the duly executed instrument of such sale, transfer, assignment, lease or agreement and a written request for the consent of the Council to such sale, transfer, assignment, lease or agreement. If such duly executed instrument and such written request is not filed with the Council before the expiration of sixty (60) days after the effective date of such sale, transfer, assignment, lease or agreement then, upon the expiration of said sixty (60) days, the franchise shall be subject to forfeiture and the Council may, without notice, by this ordinance, repeal the franchise.
As a condition to the granting of consent to such sale, transfer, assignment, lease or agreement, the Council may impose such additional terms and conditions upon the franchise and upon the Franchisee or assignee, which the Council may deem to be in the public interest. Such additional terms and conditions shall be expressed by ordinance.
The Franchisee shall have no right to sell, transfer, assign or lease the franchise, or any part thereof, except in the manner permitted by this ordinance. This ordinance applies to any assignment, whether by operation of law, by a voluntary act of the Franchisee or otherwise, which includes a transfer of more than fifty percent (50%) of the voting stock of any corporate grantee or the change in identity of any general partner of a Franchisee which is a partnership. Notwithstanding any of the foregoing, Franchisee may agree, contract or arrange with any affiliate or third party Person in connection with the operation or maintenance or the performance of any other services or work on behalf of Franchisee with respect to the Pipeline or any related Facility.
SECTION 10. Prior Franchises. All Facilities erected, constructed, laid, operated or maintained by the Franchisee in the streets of the City, whether installed by the Franchisee or not, prior to the effective date of this ordinance, except those maintained under prior right other than franchise, shall become subject to all the terms and conditions of this ordinance.
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SECTION 11. City Officers. Any right or power conferred, or duty imposed upon any officer, employee or Department of the City shall be subject to transfer to any other officer, employee, or Department of the City.
SECTION 12. Severability. If any part of this ordinance or its application thereof to any Person or circumstances is for any reason held invalid by a court of competent jurisdiction, the validity of the remainder of the ordinance shall not be affected and the application of such valid provisions to other Persons or circumstances shall also not be affected.
SECTION 13. Hazardous Substances. Prior to the issuance of any excavation permit for the construction or installation of any Pipelines for the intrastate transmission of hazardous liquid substances in a gaseous state, except natural gas, or prior to the transmission of such a substance, approval shall be obtained from the Downey City Engineer. Such approval will be granted if the Downey City Engineer determines that the Pipeline will create no hazard or potential hazard to life or property. The Franchise shall be exempt from this requirement for all Pipeline maintenance activities including, but not limited to, the use of nitrogen to displace petroleum hydrocarbons.
SECTION 14. Council Approval of Location of Facilities. The Franchisee may not install or operate any Facilities except such Facilities including, but not limited to, valves, valve operators, pressure transmitters, cathodic protection devices and any other equipment deemed necessary by Franchisee to enhance the safety, integrity, and operating efficiency of the existing Pipeline, in any public street, highway, road, alley or other public place without first obtaining the prior approval of the City Council by resolution or ordinance. Such approval must be obtained separately and is not implied by the City Council's approval of this franchise. For such facilities including, but not limited to, valves, valve operators, pressure transmitters, cathodic protection devices and any other equipment deemed necessary by Franchisee to enhance the safety, integrity and operating efficiency of the existing Pipeline, Franchisee shall not install or operate such facilities without first obtaining approval by the City Engineer, which may be granted subject to conditions.
SECTION 15. Release of Contaminants. The Release of a Contaminant from any Facility of Franchisee is a trespass and a public nuisance. Notwithstanding any other provision herein, in the event of Release of a Contaminant by Franchisee or from any Facility of Franchisee, except such Release of a Contaminant or discovery of an Environmental Condition caused by third party infliction of damage to any Facility of Franchisee, or the discovery of an Environmental Condition caused by Franchisee or by any Facility of Franchisee, Franchisee shall immediately conduct such Remedial Work and pay all Remediation Costs, at its sole expense, as is necessary to fully mitigate and remediate the same in accordance with all Applicable Law, administrative order or regulation. Nothing herein shall be construed as waiving Franchisee's rights to seek recovery from a third party for any such release.
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SECTION 16. Compliance with Applicable Laws. Until such time as (i) the franchise terminates; and (ii) the Franchisee removes all of its Facilities; and (iii) completes any necessary Remedial Work, Franchisee will comply with all Applicable Laws.
SECTION 17. Notices and Records. Franchisee will transmit to City copies of all notices, orders or statements, other than those relating to taxes, sent to or received from any governmental agency concerning any Facility or operation conducted by Franchisee in the City pursuant to the franchise. Franchisee shall send to the City copies of any documents it sends to any other governmental agency concurrently with sending them to that other governmental agency and shall send to City documents it receives from such agencies within fifteen days of its receipt.
SECTION 18. Access to Records and Property. At all reasonable times, the Franchisee shall permit the City or its duly authorized representative to examine all of Franchisee's Facilities, together with any appurtenant property of the Franchisee, and to examine and transcribe any and all books, accounts, papers, maps, and other records kept or maintained by the Franchisee or kept under its control which concern the Facilities, operations, affairs, transactions or property of the Franchisee with respect to the franchise granted by this ordinance. All accounting type records are maintained at the Franchise's Office in La Palma, California, and all other records of the type described in this Section are maintained at the Franchise's Office in La Palma, California. All such records shall be made available to the City for inspection at that location or such other locations where Franchisee has designated to City in writing, as long as such other location is within 50 miles of Franchise's current location.
SECTION 19. Removal or Abandonment of Facilities.
a. At the expiration, revocation or termination of this franchise or upon the permanent discontinuance of the use of all or a portion of its Facilities, the Franchisee shall, within thirty (30) days, make written application to the Downey City Engineer for authority, as determined by the Franchisee, either: (1) to abandon all or a portion of such Facilities in place; or (2) to remove all or a portion of such Facilities. Such application shall describe the Facilities desired to be abandoned or removed by reference to the map or maps required by Section 42 of this ordinance and shall also describe with reasonable accuracy the physical condition of such Facilities.
b. The Downey City Engineer shall determine whether the abandonment or removal which is proposed may be effected without detriment to the public interest and the conditions under which such proposed abandonment or removal may be safely effected. The Downey City Engineer shall then notify the Franchisee of his determination. The Franchisee shall pay to the City the cost of all tests, permits, and other fees required to determine whether the Facilities shall be abandoned or removed.
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c. Within thirty (30) days after receipt of such notice, the Franchisee shall apply for a permit from the City to abandon or remove all or a portion of the Facilities and shall pay all fees and costs related thereto. The permit shall contain all such reasonable conditions of abandonment or removal as may be prescribed by the City Engineer. These conditions shall be fully complied with to the satisfaction of the City Engineer before the Facilities shall be considered abandoned or removed. Until so abandoned or removed, fees applicable to the franchise shall continue to accrue. Any abandonment shall be conditioned, in part, upon Franchisee's agreement to comply with all applicable provisions of this ordinance.
d. The Franchisee shall, within ninety (90) days after obtaining such permit, commence and diligently prosecute to completion the work authorized by the permit.
e. If the Franchisee applies for authority to abandon all or a portion of its Facilities in place, and the City Engineer determines that abandonment in place of all or part of the Facilities may be effected without detriment to the public interest, the Franchisee shall pay to the City a fee which shall be computed as follows:
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Pipelines with an Internal
Diameter of
0-12 inches
14-18 inches
20-30 inches
$ Amount Per Lineal Foot
$25.00
$36.00
$45.00
Facilities abandoned "in place" shall be subject to the condition that if, at any time after the effective date of the abandonment, the City Engineer determines that the facility, or a portion thereof, may interfere with any public project, Franchisee or its successor in interest must remove the conflicting portion of the facility at its own expense when requested to do so by the City or pay the City for the cost of such removal. In such event, the City shall refund to the applicant the reasonable cost of removing the facility, not to exceed the total abandonment fee the Franchisee paid pursuant to subsection (e) of this section.
g. If any Facilities to be abandoned "in place" subject to prescribed conditions shall not be abandoned in accordance with all such reasonable conditions, the City Engineer may make additional appropriate orders, including an order that the Franchisee shall remove any or all such Facilities. The Franchisee shall comply with such additional orders and bear the associated costs and expenses.
h. In the event that the Franchisee shall fail to comply with the terms and conditions of abandonment or removal as may be required by this section and within such time as may be prescribed by the City Engineer, then the City may remove or cause to be removed such Facilities at the Franchisee's expense.
The Franchisee shall then pay to the City the cost of such work plus the current rate of overhead being charged by the City for reimbursable work.
If, at the expiration, revocation or termination of this franchise, or of the permanent discontinuance of the use of all or a portion of its Facilities, the Franchisee shall, within thirty (30) days thereafter, fail or refuse to make written application for abandonment in place or removal, the City Council shall make the determination as to whether the Facilities shall be abandoned in place or removed. The City Engineer shall then notify the Franchisee of the City Council's determination. The Franchisee shall thereafter comply with the applicable provisions of this section.
SECTION 20. Appeal. Any decision made by the City Engineer pursuant to the authority delegated in this ordinance may be appealed by any interested person to the City Council.
SECTION 21. Indemnification.
a. Franchisee shall indemnify to the fullest extent permitted by law, and defend and hold the City, and its Council members, employees, contractors, agents, attorneys and representatives free and harmless from and against all Claims
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arising from or in any way related to the franchise or activities conducted by or on behalf of Franchisee.
b. The City and the other parties indemnified herein shall have the right to select attorneys of their own choice to represent them at Franchisee's expense. c. The indemnity provided by the Franchisee shall survive the expiration or other termination of the franchise.
SECTION 22. Insurance. On or before commencement of any franchise operations, Franchisee shall obtain or provide satisfactory evidence of having policies of commercial liability, general contractor's sudden and accidental pollution legal liability and worker's compensation insurance from financially sound stock or mutual insurers of recognized responsibility.
a. The policy of liability insurance shall:
1. Be issued to Franchisee and name the City, and its officers, agents, and employees, as additional insureds.
2. Defend and indemnify the insureds against all liability for personal injury, bodily injury, wrongful death and property damage arising from Franchisee's activities conducted pursuant to the franchise by providing coverage therefore, including but not limited to, coverage for:
(a) Negligent acts or omissions of Franchisee and the agents, servants and employees thereof, committed in the conduct of franchise operations;
3. Provide a combined single limit liability insurance in the amount of twenty million dollars ($20,000,000.00).
4. Be non -cancellable without thirty (30) days' written notice thereof directed to the Downey City Clerk.
b. The contractor's sudden and accidental pollution legal liability policy shall:
1. Be issued to the Franchisee and name the City, and its officers, agents, and employees, as additional insureds.
2. Defend and indemnify the insureds against all liability for personal injury, bodily injury, wrongful death and property damage (including but not limited to damages and costs relating to site remediation) caused by sudden and accidental pollution conditions arising from or related to operations performed by or on behalf of the Franchisee.
3. Provide a combined single limit in the amount of twenty million dollars ($20,000,000.00).
4. Provide coverage on an "occurrence" basis, as opposed to a "Claims made" basis.
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5. Provide coverage for damage to the "owned premises" of any insured.
6. Be non -cancellable without thirty (30) days' written notice thereof directed to the Downey City Clerk.
c. The policy of worker's compensation insurance shall:
1. Have been previously approved as to substance and form by the California Insurance Commissioner.
2. Cover all employees of Franchisee who in the course and scope of their employment are to conduct or do work pursuant to the franchise operations.
3. Provide for every benefit and payment presently or hereinafter conferred by Division 4 of the Labor Code of the State of California upon an injured employee, including vocational rehabilitation and death benefits.
4. Be non -cancellable without thirty (30) days' written notice thereof directed to the Downey City Clerk.
d. Franchisee shall file with the City Clerk prior to commencement of any franchise operations certificates of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force and providing the following information with respect to said policy:
1. The policy number.
2. The date upon which the policy will become effective and the date upon which it will expire.
3. The names of the named insured and any additional insured or a blanket additional insured endorsment.
4. The subject of the insurance.
5. The type of coverage provided by the insurance.
6. The amount of limit of coverage provided by the insurance. e. Franchise operations shall not commence until Franchisee has complied with the aforementioned provisions of this section, and any such operations shall be suspended during any period that Franchisee fails to maintain said policies in full force and effect.
f. Notwithstanding anything to the contrary contained herein, subject to approval by the City's Risk Management Authority, the Franchisee may provide a program of self-insurance for commercial liability and any pollution exposure including sudden and accidental and such approval shall not be unreasonably withheld. Any self-insurance program maintained by the Franchisee shall be
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consistent with the provisions and the specified limits contained herein.
Grantee may effect for its own account any insurance not required by this Ordinance.
SECTION 23. Faithful Performance Bond. On or before the effective date of the ordinance granting the franchise, Franchisee shall file and thereafter at all times during the life of the franchise keep on file with the Downey City Clerk a corporate surety bond approved by the City Attorney running to the City in the penal sum of one hundred thousand dollars ($100,000.00), with a surety licensed to do business in California and approved by the Downey City Clerk. The bond shall provide that Franchisee shall well and truly observe, fulfill and perform each condition of the franchise and that in case of any material breach of any condition of the Franchise, actual damages up to the whole bond amount of the penal sum shall be deemed to be liquidated damages and shall be recoverable from the principal and sureties of the bond. If said bond is not filed prior to the effective date of the ordinance granting the franchise, the award of the franchise may be set aside and the ordinance granting the franchise repealed at any time prior to the filing of said bond and any money paid in consideration for said award of franchise shall be deemed forfeited. In the event that said bond, after it has been so filed, shall at any time during the life of the franchise become insufficient, in the sole opinion of the City Council, Franchisee agrees to renew said bond within ten (10) days after receipt of written notice to do so from the Downey City Clerk.
SECTION 24. Liability. Franchisee shall be fully liable to the City for damage to City property, including but not limited to damage to any Street, or any other cost incurred by the City caused by Franchisee, any of Franchisee's Facilities or by any Person acting on Franchisee's behalf. The Franchisee shall be held to a standard of strict liability to City for any activity conducted pursuant to or in connection with the franchise.
Franchisee's strict liability shall extend to any consequential damages incurred by the City, and to any costs, including Remediation Costs, incurred by the City for control or abatement of any Environmental Condition, Release of Contaminants, Remedial Work or any fire or explosion resulting from any activity conducted by or on behalf of Franchisee pursuant to the franchise.
SECTION 25. Attorney's Fees. Franchisee shall pay all reasonable attorney's fees incurred by City to enforce any term of the franchise, including, but not limited to, any requirements imposed by this ordinance.
SECTION 26. Obligations of Affiliated Entities. All affiliates, parent companies, or subsidiaries of any Franchisee (except for those Persons or entities whose interest is strictly as the holder of stock of a limited partnership interest) shall be jointly and severally liable to the City in the event that the Franchisee cannot fully satisfy any requirement arising out of the franchise.
SECTION 27. Damage to Public Property. Any damage done directly or indirectly to property of any public agency by Franchisee in exercising directly or indirectly any right, power, or privilege under this franchise, or in performing any duty under or pursuant to the provisions of this ordinance, shall be promptly repaired by Franchisee at its sole cost and expense to as good a condition as it was before such damage was incurred, to the satisfaction of the City Engineer. If the Franchisee, within ten (10) days after receipt of written notice from the City, instructing it to repair such damage, shall fail
ORDINANCE NO. 26-1542
PAGE 13
to commence to comply with such instructions, or, thereafter, shall fail diligently to prosecute such work to completion, then the City immediately may do whatever work is necessary to carry out said instructions at the cost and expense of the Franchisee, which cost and expense, by the acceptance of this franchise, the Franchisee agrees to pay upon demand. If such damage constitutes an immediate danger to the public health or safety requiring immediate repair, the City without notice may repair such damage and the Franchisee agrees to pay all costs and expenses incurred.
SECTION 28. Rates. As consideration for the franchise granted, the Franchisee shall pay to the City in lawful money of the United States the following:
a. Non Public Utility Franchise Rates. The Franchisee, as further consideration for such franchise including the extension, renewal, or continuation of a previously granted franchise, shall pay to the City in lawful money of the United States the following fees:
In the case of an initial grant of franchise, or franchises which extend, renew, or continue previously granted franchises, a base granting fee of ten thousand three hundred dollars ($10,300) for Pipelines with a total length of 1/4 mile or more or one thousand thirty dollars ($1,030) for Pipelines with a total length of less than 1/4 mile shall be paid within thirty (30) days after the Council adopts the ordinance granting the franchise and prior to signing the written acceptance of the franchise pursuant to Section 3 of this ordinance. If at any time during the first five (5) years following the grant of a franchise, additional Pipeline is voluntarily added which will result in a total length of pipeline of 1/4 mile or more, the ten thousand three hundred dollars ($10,300) granting fee shall be required at the same time said footage is added.
2. A base annual fee shall be paid within sixty (60) days after the end of each calendar year and during the life of the franchise for each and every year, including the year of granting the franchise, according to the "Franchise Payment Period" as defined in this ordinance, in the following amounts:
Pipelines with a Nominal Amount Per Linear Foot
Internal Diameter of
0-4 inches $0.49
8 inches $1.64
3. The base annual rate applicable to pipelines with an internal diameter falling between two (2) incremental size categories shall pay a rate determined by adding the price corresponding to the lower size to a figure computed by multiplying the difference between the higher and lower price times the "multiplier." The "multiplier" will be determined by dividing the difference between the size of the pipe and the lower size category by the difference between the two (2) size categories. In determining the number of feet of pipeline upon which the annual fee will be computed, the greatest number
ORDINANCE NO. 26-1542
PAGE 14
of feet of pipeline covered by the franchise during the calendar year for which payment is due will be utilized. The base annual fee shall be paid no later than seventy-five (75) days following the end of the calendar year and a penalty at the rate of ten percent (10%) per month or fraction thereof beyond the payment date shall be charged, but in no event shall said penalty exceed fifty percent (50%).
4. The City reserves the right to adjust the base fees established hereunder at any time with 30 days written notice after the effective date of this ordinance, but the base fees applicable to the franchise may only be changed five (5) times during the life of the franchise.
b. Base Construction Charges. The Franchisee shall pay at the time of voluntary installation, relocation, or replacement of any pipeline or other facility covered by the franchise, a base construction charge of four thousand five hundred dollars ($4,500) for each 2 mile of Pipeline or fractional part thereof installed, replaced or relocated on Major Streets and two thousand five hundred and twenty-five dollars ($2,525) per 2 mile or fractional part thereof, on Minor Streets. The City reserves the right to change the base fees established hereunder at any time after the effective date of this ordinance, but the base fees may only be changed five (5) times during the life of the franchise.
C. Adjustments.
The amount of each base fee specified in Subsection (a)(2) above shall be adjusted at the time payment is due by the percentage change in the Consumer Price Index, all Urban Consumers for the Los Angeles -Long Beach area, applicable to the period sixty (60) days prior to the due date of the fee. The Consumers Price Index for the most recent month prior to the effective date of this ordinance shall be the beginning index for purposes of calculating any increase.
2. In no event shall any fee be charged which is less than the base fee amount established by subsections (a) and (b).
3. The Consumer Price Index specified in paragraph 1 above is calculated and published by the United States Department of Labor, Bureau of Labor Statistics. If the Bureau discontinues the calculation or publication of the Consumer Price Index, all Urban Consumers for the Los Angeles -Long Beach - Anaheim area, and no transposition table is available to convert to another index, then the amount of each annual adjustment in base fees shall be computed by using a comparable governmental index.
d. Publication and Administrative Issuance Costs. The Franchisee shall pay to the City within thirty (30) days after receiving a statement therefore, all administrative and other costs in excess of the base granting fee incurred by the City in processing the application for a franchise, including but not limited to the preparation of any reports, statements or studies pursuant to the California Environmental Quality Act (Public Resources Code Sections 21000, et seq.,) and any similar Federal statute, or any successor statute, and for any all advertising
ORDINANCE NO. 26-1542
PAGE 15
and publishing costs, including the cost of publishing the ordinance, if necessary, incurred in connection with the granting of the franchise.
SECTION 29. Permit Fees. The Franchisee shall pay all permit fees and other fees mandated by Applicable Law in connection with constructing, operating, maintaining, repairing, removing or abandoning any franchise Facility.
SECTION 30. Proration of Payments. In the event of abandonment of Facilities with the approval of the City as elsewhere in this ordinance, or in the event of removal of such Facilities by the Franchisee, or in the event of the grant of a franchise with an initial Franchise Payment Period of less than one year, the annual franchise fee required by this ordinance shall be prorated for the calendar year in which such removal or abandonment or grant occurs as of the end of the calendar month in which removed, abandoned or granted.
SECTION 31. Prospective Statutory Rate Changes. In the event that the Applicable Law controlling franchise fees and rates for non-public utilities changes in the future, such changes shall be applied prospectively only and shall not be applied retroactively.
SECTION 32. Records. Franchisee shall keep and preserve for a period of five (5) years subsequent to the date of the most recent franchise fee determination all the records necessary to determine the amount of such franchise fee.
SECTION 33. Construction Requirements. Pipelines and all other Facilities shall be constructed and maintained in a good workmanlike manner in conformity with all Applicable Law. All pipes laid under the franchise shall comply with Applicable Law.
Nothing in this ordinance shall be construed to permit the Franchisee to construct new poles or other above ground Facilities unless specifically provided herein.
SECTION 34. New Installation or Replacement. New installation or replacement of Pipelines and all other Facilities necessary for the installation, operation, maintenance, and safety of Pipelines and conduits shall be laid and maintained only pursuant to any necessary permits issued by the City. All such installations or replacements shall be reviewed by the City Engineer as to the most desirable location in the streets of the City and his or her decision shall be final and binding on the Franchisee.
The City Engineer shall exercise such final and binding decision -making authority in a reasonable and non -arbitrary or non -capricious manner, and in compliance with applicable Federal and State laws, rules and regulations.
SECTION 35. Permits. Where the provisions of any Applicable Law, which shall be in force at the time, requires the issuance of an excavation, encroachment or other type of permit, the Franchisee shall not commence any excavation or encroachment work under the Franchisee until it shall have obtained such permits, except in cases of emergency affecting public health, safety or welfare or the preservation of life or property, in which case the franchise shall apply for such permits not later than the next business day, but the Franchisee may proceed with the emergency -related work. Franchisee's application for a permit to the City shall show the length and proposed location of the
ORDINANCE NO. 26-1542
PAGE 16
pipeline and/or other Facility intended to be installed, and such other facts as the City may require. The Franchisee shall pay any and all permit and inspection fees.
SECTION 36. Work on and Restoration of Streets. The work of constructing, laying, replacing, maintaining, repairing or removing all Pipelines and other Facilities authorized under the provisions of this ordinance in, over, under, along or across any street or sidewalk shall be conducted with the least possible hindrance to the use of the street for purposes of travel, and as soon as such work is completed, all portions of the street which have been excavated or otherwise damaged thereby shall promptly and in a workmanlike manner be repaired, replaced or restored and placed in as good condition as the same was before the commencement of such work. Such restoration, repair or replacement work shall require the resurfacing, slurry sealing or other treatment of the entire width of the Street, unless the City Engineer shall find that the nature of the Franchisee's activities in the Street is such that it will not be necessary to perform such work on the entire width of the Street in order to protect the integrity of the Street, and all such work shall be done to the satisfaction of the City Engineer at the expense of the Franchisee. All work shall comply with the requirements of a City -issued permit.
In the event that the Franchisee shall fail or neglect to make such Street repair, replacement, or restoration work, then ten (10) days after notice therefore has been given Franchisee by the City Engineer, the City may repair, replace or restore said Street at the expense of Franchisee. Franchisee agrees to pay to the City the cost and expense of performing such work. The amount so chargeable shall be the direct cost of such work plus the current rate of overhead being charged by the City for reimbursable work.
SECTION 37. Failure to Timely Comply. In the event that the Franchisee fails to complete the work within the time specified in the permit, the City may require the Franchisee to pay to the City Five Hundred Dollars ($500.00) per day as liquidated damages for each day construction extends beyond the time specified in the permit.
Whenever the Franchisee fails to complete any work required by the terms and conditions of this franchise, and the permits issued there under within the time limits required, the City may complete or cause to be completed any and all such work at the expense of the Franchisee. The Franchisee agrees to pay to the City the cost of performing such work.
The amount so chargeable to Franchisee shall be the direct cost of such work plus the current rate of overhead being charged by the City for reimbursable work.
SECTION 38. Completion Statement. Upon the completion of the construction of any Pipelines or other Facilities constructed pursuant to the franchise, the Franchisee shall submit a statement to the City Engineer, identifying the permit or permits issued by the City, the total length of pipeline, pipeline material, diameter of pipeline, the construction of which was authorized under such permit or permits, the total length of pipeline or other Facility actually laid, and as -built drawings.
SECTION 39. Shoring. If the City or any other public entity constructs or maintains any storm drain, sewer structure, or other facility or improvement under or across any facility of the Franchisee maintained pursuant to the franchise, the Franchise shall provide at no expense to the City or other public entity such shoring or other support as shall be reasonably required to support, maintain and protect Franchisee's facility.
ORDINANCE NO. 26-1542
PAGE 17
SECTION 40. Maps. Within ninety (90) days following the date in which any Facilities have been laid, removed or abandoned under the franchise, the Franchisee shall file a map or maps with the City's Director of Public Works showing the location, depth, and size of the Facilities so laid, removed or abandoned.
SECTION 41. Facilities. The Franchisee shall have the right to construct, maintain and repair such traps, manholes, conduits, valves, appliances, attachments and other Facilities as may be necessary or convenient for the proper maintenance and operation of the pipelines, with exception of communication and cathodic protection facilities, portions of which may need to be installed above ground, under said franchise, and said Facilities shall be kept flush with the surface of the street and so located as to conform to any ordinance, rule or regulation of the City, or of any permit issued by the City in regard thereto and shall not interfere with the use of the street for travel. The Franchisee shall have the right, subject to such ordinances, rules or regulations as are now or may hereafter be in force, to make all necessary excavations in said streets for the construction, maintenance and repair of said Facilities; provided, however, that the Franchisee shall first obtain an excavation permit from the City for doing any such work.
SECTION 42. Ordinary Repair. The Franchisee shall obtain an excavation permit from the City's Public Works Department to perform repair work.
SECTION 43. Relocation. Whenever, during the existence of this Franchise, the City shall lawfully change the grade, alignment, width, or location of any public street, way, alley or place, including the construction of any subway or viaduct owned or operated by the City, the Franchisee shall, at its own cost and expense, remove or relocate its facilities. However, no such change of location shall be required for a temporary purpose, nor shall the City require the Franchisee to remove its pipeline entirely from the street, way, alley or place. The City shall specify in a written demand a reasonable time within which the work of relocation shall be commenced and the Franchisee shall commence the relocation within the time specified in the demand and thereafter diligently prosecute it to completion. In the decision process necessary to determine if the Franchisees Pipeline and/or appurtenances thereto are required to be relocated, the City shall also consider all known future projects that, if done separately, may cause multiple relocation of the pipeline and/or appurtenances. If such known future projects can be identified, full consideration of concurrent projects shall be given by the City. If the City requires the relocation within the public street, way, alley or place more than once within a period of ten (10) years, the City shall pay the cost of the second and all subsequent relocations within such ten (10) year period.
When the City requires a rearrangement of the Franchisees Pipeline and/or appurtenances, and such rearrangement is done for the accommodation of any person, firm, public agency other than the City, or corporation, the cost of such rearrangement shall be borne by the accommodated party. Such accommodated party, in advance of such rearrangement, shall (a) deposit with the Grantee either cash or a corporate surety bond in an amount, as in the reasonable discretion of the Franchisee, to pay the costs of such rearrangement; and (b) execute an instrument agreeing to indemnify and hold harmless the Franchisee from any and all damages or claims caused by such rearrangement. This provision shall not be construed to require the Franchisee to rearrange its pipeline and/or appurtenances. Any accommodation for rearrangement of
ORDINANCE NO. 26-1542
PAGE 18
the Franchisees Pipeline and/or appurtenances shall be made at the discretion of the Franchisee.
Nothing in this Franchise contained herein shall be construed to require the City to move, alter, or relocate any of the facilities upon the City's streets, at the City's own expense, for the convenience, accommodation or necessity of any other public utility, person, firm or corporation now or hereafter owning a public utility system of any type or nature, or to move, alter, or relocate any part of the City's pipelines or infrastructure upon said streets for the convenience, accommodation or necessity of the Franchisee.
SECTION 44. Applicability of Ordinance. This franchise ordinance shall apply to all Pipelines as defined in Subdivision (a) of Section 51010.5 of the California Government Code and including those Pipelines excluded from said definition under paragraphs (1), (3), and (6) of Subdivision (a) of Section 51010.5. This ordinance does not authorize the transportation of a hazardous liquid substance in a gaseous state, or the use of an existing Pipeline for the transmission of such a substance, except when necessary to maintain and/or repair the pipeline. Nothing in this ordinance shall be construed to prevent City from adopting an ordinance imposing impact fees for trench cuts.
SECTION 45. Force Majeure. Notwithstanding any other term or provision of this Franchise or Ordinance, if the performance of any obligation of a party (other than the obligation to make payments) is prevented in whole or in part by causes beyond the reasonable control of such party, including but not limited to wars (declared or undeclared), hostilities, revolution or civil commotion, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, storms, floods, washouts, strikes or labor disputes, fire, explosion, flood, inability to obtain raw materials or fuel, embargo, sinking of vessel or any act, proclamation, regulation or ordinance of any government or governmental agency, having, or claiming to have, jurisdiction of the subject of this Franchise or Ordinance or of the parties to this Agreement, or any Act of God or any other cause whether of a similar or dissimilar nature beyond the reasonable control of the party affected, then such party shall not be held responsible for the non-performance of such obligation during the continuance of the delay, provided prompt notice and full particulars of such delay have been given to the other party. The period of performance of the delayed party shall be extended by the duration of the delay. In addition, notwithstanding any other term or provision of this Franchise or Ordinance, neither party shall be obligated to settle or resolve any strike or labor dispute.
SECTION 46. Severability. If any sections, subsections, sentences, clauses, phrases or portions of this ordinance are for any reason held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this and each section, subsection, phrase or clause of this ordinance whether or not any one or more sections, subsections, phrases or clauses may be declared invalid or unconstitutional on their face or as applied.
SECTION 47. This Ordinance shall become effective thirty (30) days from the date of its adoption.
SECTION 48. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published in the manner prescribed by law.
ORDINANCE NO. 26-1542
PAGE 19
APPROVED AND ADOPTED this 12th day of May, 2026.
CLAUDIA M. FROMETA, Mayor
ATTEST:
MARIA ALICIA DUARTE, CMC
City Clerk
APPROVED AS TO FORM:
�4 9W f4ae�
JCWN M. FUNK
City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss:
CITY OF DOWNEY )
HEREBY CERTIFY that the foregoing Ordinance No. 26-1542, was introduced at a Regular Meeting of the City Council of the City of Downey held on the 12th day of May, 2026, and adopted at a Regular meeting of the City Council of the City of Downey held on the 26th day of May, 2026, by the following vote, to wit:
AYES:
Council Members:
NOES:
Council Members:
ABSENT:
Council Members:
ABSTAIN:
Council Members:
FURTHER CERTIFY that a Summary of the foregoing Ordinance No. 26-1542, was published in the Downey Patriot, a newspaper of general circulation in the City of Downey, on April 30, 2026, (before adoption) and on May 28, 2026 (after adoption). It was also posted in the regular posting places in the City of Downey on the same dates.
MARIA ALICIA DUARTE, CMC
City Clerk
Docusign Envelope ID: 610991718-4117-4ADD-ABBC-F0841 F29BEl 3 CERTIFIED MAIL NO.: 7022-0410-0000-6649-3673
October 29, 2025
Josef Kekula
Superintendent of Maintenance and Facilities
City of Downey
12324 Bellflower Boulevard
Downey, California 90242
SUBJECT: COMPLIANCE CONFIRMATION FOR MARATHON PIPE LINE'S LINE 34 (OSFM #0114)
Dear Josef Kekula:
CAL FIRE — Office of the State Fire Marshal (OSFM) confirms that the subject pipeline, which passes through the City of Downey, is in compliance with applicable federal and state laws and regulations governing pipeline maintenance and operation. This determination is based on the Standard Annual Pipeline Inspection conducted under Inspection Unit 0140B:
• Inspection Unit 0140B: April 7-11, 2025
No violations or deficiencies were identified during this inspection. Additionally, the subject pipeline successfully completed a hydrostatic pressure test on September 11, 2024.
If you have any questions regarding this issue, please contact Andy Chau, Supervising Pipeline Safety Engineer, at (562) 497-0366.
Sincerely,
Docu3igneC by:
930K803AE5
C42F,..
JAMES HOSLER
Assistant Deputy Director
Chief of Pipeline Safety and CUPA Programs
"The Department of Forestry and Fire Protection serves and safeguards the people and protects the property and resources of California."
ATTACHMENT C
Docusign Envelope ID: 61C99F18-4117-4ADD-ABBC-FO841F298E13 Josef Kekula
October 29, 2025
cc: Alin Podoreanu, Supervising Pipeline Safety Engineer, OSFM Andy Chau, Supervising Pipeline Safety Engineer, OSFM
Brendan Feery, Supervising Pipeline Safety Engineer, OSFM Doug Allen, Supervising Pipeline Safety Engineer, OSFM
Huy Nguyen, Supervising Pipeline Safety Engineer, OSFM
'The
FOR REVIEW AND APPROVAL
Dolmnep Patriot
00000000000000
10927 Downey Avenue
It
CITY OF DOWNEY
NOTICE OF PUBLIC HEARING
Downey, CA 90241
AND SUMMARY OF
PROPOSED ORDINANCE
OF THE
CITY COUNCIL OF THE
CITY OF DOWNEY
CITY OF DOWNEY
ITY L
AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF
LI I T
DOWNEY GRANTING AN OIL
PIPELINE FRANCHISE TO
11 I I I
LINE
TESO COMPANY LLC
DOWNEY, CA 90241
Notice is hereby given that a
Public Hearing will be held before
the Downey City Council, on May
COPY OF NOTICE
12, 2026, at 6:30 p.m. in the Council
Chambers of the Downey City Hall,
11111 Brookshire Avenue, Downey,
California, 90241, to consider the
Notice Type: CITY OF DOWNEY - CITY
adoption of an Ordinance granting
an oil pipeline franchise to Tesoro
CLERKCITY OF DOWNEY - NOTICE OF
SoCal Pipeline Company LLC.
The following is a summary of the
PUBLIC I Y OF
proposed Ordinance:
PROPOSED ORDINANCE OF THE CITY
Under Section 1400 of the Downey
City Charter, the City Council by
COUNCIL OF THE CITY OF DOWNEY
Ordinance may grant a franchise to
any person, partnership, corporation,
or other legal entity capable of
exercising the privilege conferred,
whether operating under an
AN ORDINANCE OF THE CITY COUNCIL
existing franchise or not, and may
prescribe the terms, conditions, and
OF THE CITY OF DOWNEY GRANTING
limitations of such grant, including
the compensation to be paid to the
AN IL PIPELINE FRANCHISE TO TESTESORO
City. The City has previously granted
a ten-year franchise to Tesoro SoCal
L PIPELINE Y LLC
Pipeline Company LLC for the
operation of a pipeline system for the
transportation of gas, petroleum oil
To the right is a copy of the notice you sent
and other hydrocarbon substances
and general operations incidental
to us for publication in THE DOWNEY PATRIOT.
p
to the oil industry within certain
streets of the City of Downey. This
Please read this notice carefully and call with
franchise is scheduled to expire on
any corrections. The Proof of Publication will
February 16, 2026. The proposed
Ordinance would grant another ten-
be mailed to you after the last date below.
year franchise to this same entity
for the same purposes on terms and
Publication dates for this notice are:
conditions similar the existing
franchise.
//6
Note: The above is a summary of
the Ordinance. To obtain a full
understanding of the Ordinance,
it should be read in its entirety. A
The charge for this order is as follows. An
copy of the full text of the Ordinance
invoice will be sent to you after the last date
is posted in the City Clerk's Office
at 11111 Brookshire Ave., Downey,
of publication.
CA 90241, or on the City's website at
https://www.downeyca.org/ .
All interested persons may present
oral comments and information at the
Public Hearing or may e-mail public
Publication Fee $352.00 each comments to ccpubliccomment@ downeyca.org or, submit their written
comments to the City Clerk's Office
Total Amount: $352.00 in person at 11111 Brookshire Ave.
Downey, CA 90241, no later than
2:00 p.m. on the day of the Public
CORRECTIONS ARE DUE BACK WEDNESDAY Hearing.
BY 1 1:00 AM PRIOR TO THE FIRST DATE OF Ci Alicia Duarte, cMc Cty Clerk
PUBLICATION.
The Downey Patriot
Approved By: 4/30/26
t 9XIMIRM