1 TO: City Council
FROM: Andrew Vialpando, City Manager
PREPARED BY: Lina Hernandez, Assistant City Manager
MEETING DATE: October 21, 2025
SUBJECT: Resolution of Intent to Renew an Existing Franchise to Construct and Use an Oil Pipeline to Phillips 66 Pipeline, LLC and Phillips 66 Company
RECOMMENDED ACTION
Adopt a resolution of intent to renew a franchise with Phillips 66 Pipeline, LLC and Phillips 66 Company to access and maintain underground oil and fuel lines in Lomita; and set a date for the required public hearing on November 18, 2025.
BACKGROUND
The City of Lomita originally granted a pipeline franchise to ConocoPhillips Pipeline Company (now operating as Phillips 66 Pipeline, LLC and Phillips 66 Company) in 1984 through Ordinance No. 361, authorizing the company to install, operate, and maintain petroleum pipelines within the City’s public rights-of-way. The initial franchise was approved for a 25-year term, expiring in February 2009.
Following the expiration of the original agreement, the City Council approved a renewal franchise on February 1, 2009, through Ordinance No. 726, which extended the franchise for a 15-year term. At its meeting on August 6, 2011, the City Council approved Ordinance No. 745, which amended Ordinance No. 726 to include the non-utility fee schedule.
Although Ordinance No. 745 expired on February 1, 2024, all applicable fees and provisions have remained in effect pending approval of a renewal franchise. The existing pipelines are located within the public rights-of-way along Lomita Boulevard and Walnut Street, as shown on the attached maps (Attachment 2). The pipelines continue to be maintained under the terms of the 2009 ordinance.
Phillips 66 submitted an application to renew its franchise in accordance with the Franchise Act of 1937. The proposed franchise agreement marks the third iteration of this
CITY OF LOMITA
CITY COUNCIL REPORT
Item No. 7l
2 longstanding partnership between the City and Phillips 66 Pipeline, LLC. To grant the requested franchise, the City must complete the following steps:
• Adopt a Resolution of Intent to consider the franchise application. • Publish a notice of the public hearing in a newspaper of general circulation at least once within 15 days following the adoption of the Resolution of Intent. • Hold a public hearing for the formal adoption of the renewal Ordinance no less than 20 days and no more than 60 days following the adoption of the Resolution of Intent.
• Conduct a second reading of the Ordinance which would take effect 30 days after its adoption.
To ensure public safety and environmental protection, Phillips 66 will be required to submit an Emergency Preparedness Plan within 90 days of the ordinance’s effective date.
The plan must be approved by the City Engineer and outline the company’s response procedures in the event of a spill, leak, or natural disaster.
Should the City Council adopt the Resolution of Intent, a public hearing and first reading of the Ordinance will be scheduled for November 18, 2025, followed by the second reading on December 16, 2025, during the regular City Council meeting.
FISCAL IMPACT
The franchise agreement, if approved, will generate a minimum of $7,500 in General Fund revenue annually for a term of 5 years. The amount of each annual payment shall be revised according to the Consumer Price Index (CPI). Additionally, the City will receive $15,000 one-time revenue fee as a condition of renewal.
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No. 5: City Infrastructure & Water Utility – Investing in reliable, sustainable infrastructure.
OPTIONS
1. Approve recommended action.
2. Provide staff alternate direction.
ATTACHMENTS
1. Resolution
2. Pipeline Maps
3 Reviewed by: Approved by:
_______________________ ______________________
Lina Hernandez Andrew Vialpando
Assistant City Manager City Manager