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RESOLUTION NO. 2025-36
INTENT TO GRANT FRANCHISE TO PHILLIPS 66 PIPELINE, LLC AND PHILLIPS 66 COMPANY
RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LOMITA, CALIFORNIA
[DATE]
WHEREAS, Section 6202 of the California Public Utilities Code authorizes the City Council of the City of Lomita to grant a nonpublic utility pipeline operator a franchise to lay and use pipes, connections and appurtenances for transmitting and distributing industrial gas or products thereof for any and all purposes under, along, across or upon the public streets and alleys; and
WHEREAS, Public Utilities Code § 6231 requires the applicant to file with the City Council an application stating:
A) The name of applicant;
B) The purpose and term, whether definite or indeterminate, for which the franchise is desired; and
C) If granted the franchise as applied for, applicant, its successors and assigns will pay to the City of Lomita during the life of the franchise an annual franchise fee in an amount agreed to by the applicant and the City of Lomita, per Public Utilities Code § 6231.5(e).
WHEREAS, in 1984 the City passed Ordinance No. 361 granting a pipeline franchise to Conoco Phillips Pipe Line Company (CPPL); this franchise included both public utility and non-public utility pipelines.
WHEREAS Ordinance No. 361 expired in February of 2009 and in September of 2009, City Council passed Ordinance No. 726 renewing the franchise for a term of 15 years.
WHEREAS, Ordinance No. 361 expired in September 2024.
WHEREAS, CPPL has filed an application to renew such franchise, a copy of which is attached hereto as Exhibit A and incorporated herein by reference as if fully set forth herein.
NOW, THEREFORE, BE IT RESOLVED that pursuant to Public Utilities Code § 6232, a Resolution of Intention to grant the franchise applied for by Phillips 66 Pipeline, LLC and Phillips 66 Company (Formerly known as ConocoPhillips Pipe Line Company) to lay and use pipes, connections and appurtenances for transmitting and distributing gas 65265.00001\43389292.1 2
for any and all purposes under, along, across or upon the public streets, ways, alleys and places within that portion of the City of Lomita is passed. This franchise will be granted for a term of five years The grantee of said franchise, and its successors and assigns, will, during the life of said franchise, pay to the City an annual fee computed at those rates set forth in Exhibit “B”, increasing annually in the same manner as set forth in Public Utilities Code § 6231.5, subd. (b). Said fee will be paid annually from the date of the granting of said franchise, and in the event such payment shall not be made, said franchise will be forfeited.
BE IT FURTHER RESOLVED that the Clerk of the City Council is directed to publish a notice once within 15 days after the passage of this Resolution the date, time and place of a hearing, in a newspaper of general circulation within the City. Said hearing shall be held on the 18th day of November 2025, at the hour of 6 p.m., a day not less than twenty (20) nor more than sixty (60) days after the date of the passage of this resolution, at 24300 Narbonne Ave, Lomita CA. All persons having any objection to the granting of the franchise hereinabove described may appear before the City Council and be heard thereon. Said Notice may be in substantially the following form:
NOTICE OF INTENTION TO GRANT OIL PIPELINE
FRANCHISE
Notice is hereby given by the City Council of the City of Lomita that it intends to grant, under and pursuant to Division 3, Chapter 2 of the Public Utilities Code of the State of California, known as the Franchise Act of 1937, to Phillips 66 Pipeline, LLC and Phillips 66 Company, a franchise to lay and use pipes and appurtenances for transmitting and distributing oil as more particularly described in to Phillips 66 Pipeline, LLC and Phillips 66 Company’s application which is
incorporated by reference into City Council Resolution No. 2025-36. November 18, 2025, at 6 p.m., at the place where this City Council usually meets, is hereby fixed as the day, hour and place when and where any and all persons having any objection to the granting of said franchise may appear before this City Council and be heard thereon. At any time not later than the hour so set for the hearing of objections, any person interested may make written protest, stating objections against the granting of such franchise. Such protest must be signed by the protestant and be delivered to the Clerk of this City Council. The term for which said franchise is proposed to be granted is for a period of five years with an option to extend for two (2) additional five (5) years. The grantee of said franchise, and its successors and assigns, will, during the life of said franchise, pay to the City an annual fee computed at an agreed rate of $7,500 per year, increasing annually in the same manner as set forth in Public Utilities Code § 6231.5, 65265.00001\43389292.1 3
subd. (b). Said fee will be paid annually from the date of the granting of said franchise, and in the event such payment shall not be made, said franchise will be forfeited.
Dated October 21, 2025.
__________________________
Mark A. Waronek, Mayor
ATTEST:
________________________________
Kathleen Horn Gregory, MMC, City Clerk
APPROVED AS TO FORM:
_______________________________
Trevor Rusin, City Attorney
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EXHIBIT “A”
PHILLIPS 66 PIPELINE, LLC AND PHILLIPS 66 COMPANY FRANCHISE RENEWAL
APPLICATION
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EXHIBIT “B”
FRANCHISE FEE ANNUAL RATES
1. For the public utility pipelines as shown in Exhibit A the fee is in accordance with California Public Utility Code Section 6231.5, which the parties agree is:
The length of the pipe expressed in feet located within the franchised area, rounded to the nearest foot shall be multiplied by the applicable base rate, as adjusted pursuant to subdivision 3 below, in accordance with the following schedule:
Pipe size (internal
diameter in inches)
Base rate per
lineal foot
0-4 $0.286
6 0.429
8 0.572
10 0.715
12 0.858
14 1.001
16 1.144
18 1.287
20 1.430
22 1.573
24 1.716
26 1.859
28 2.002
30 2.145
For pipelines with an internal diameter not listed above, the Fee shall be in the same proportion to the Fee of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches.
2. For the non-public utility pipelines as shown in Exhibit B the fee is as follows:
The length of the pipe expressed in feet located within the franchised area, rounded to the nearest foot shall be multiplied by the applicable base rate, as adjusted pursuant to subdivision 3 below, in accordance with the following schedule:
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Pipe size (internal
diameter in inches)
Base rate per
lineal foot
0-4 $0.352
6 0.410
8 0.730
10 1.150
12 1.650
14 2.240
16 2.930
18 3.710
20 4.580
22 5.540
24 6.600
26 7.740
28 8.980
30 10.310
For pipelines with an internal diameter not listed above, the Fee shall be in the same proportion to the Fee of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches.
Notwithstanding the above, in no event shall the annual Franchise Fee for the nonpublic utility pipelines be less than seven thousand five hundred dollars ($7,500).