corporation by reason of any work done or any activity conducted by the Grantee in the exercise of this Franchise.
SECTION 15. INSURANCE.
Prior to the beginning of and throughout the duration of the Franchise Agreement, Grantee shall maintain insurance in conformance with the requirements set forth below. Grantee will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth herein, Grantee agrees to amend, supplement or endorse the existing coverage to do so or to procure insurance coverage to satisfy the requirements.
Grantee acknowledges that the insurance coverage and policy limits set forth in this section constitute the coverage required.
Without limiting Grantee’s indemnification of the City and/or the Indemnified Parties and prior to commencement of the Franchise Agreement, Grantee shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to the City.
General liability insurance. Grantee shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount of $10,000,000 per occurrence, $10,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $10,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
Grantee will also carry coverage for Sudden and Accidental pollution coverage in the amount of $10,000,000 per occurrence and in the aggregate.
Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount of $10,000,000 combined single limit for each accident.
Umbrella or excess liability insurance. Contractor shall obtain and maintain an umbrella liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason, other than bankruptcy or insolvency of said primary insurer;
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• Should Grantee obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.
Workers’ compensation insurance. Grantee shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of 1,000,000) for Grantee’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code In addition, Grantee shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.
Grantee shall submit to the City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, and volunteers to the extent of the risks, liabilities, and indemnification obligations assumed by Grantee in the Agreement.
Other provisions or requirements.
Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies to the extent of the risks, liabilities and indemnification obligations assumed by Grantee in the Agreement.
Proof of insurance. Grantee shall provide certificates of insurance and required endorsements to the City as evidence of the insurance coverage required herein.
Insurance certificates and endorsements must be approved by the City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with the City for the contract period and any additional length of time required thereafter.
Duration of coverage. Grantee shall procure and maintain for the contract period, and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the work hereunder by Grantee, its agents, representatives, employees, subcontractors or subconsultants. The City and its officers, officials, employees, and agents shall continue as additional insureds under such policies to the extent of the risks, liabilities, and indemnification obligations assumed by Grantee in the Agreement.
Primary/noncontributing. Coverage provided by Grantee shall be primary to the extent of the risks, liabilities and indemnification obligations assumed by Grantee in the Agreement and any insurance or self-insurance procured or maintained by the City shall not be Tuesday, November 18, 2025 Reg CC MTG, Page *126
required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City’s own insurance or self- insurance shall be called upon to protect it as a named insured.
Products/completed operations coverage. If applicable, Products liability coverage shall extend for a minimum of three years (3) after project completion and completed operations coverage for construction agreements shall extend for 3 years from the date of substantial completion of the project or the statute of repose, whichever is longer.
Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The Agency, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall to the extent of the risks, liabilities, and indemnification obligations assumed by Grantee in the Agreement, waive subrogation against the City, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow Grantee or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Grantee hereby waives its own right of recovery against the City.
Enforcement of contract provisions (non estoppel). Grantee acknowledges and agrees that any actual or alleged failure on the part of the City to inform Grantee of noncompliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
Notice of cancellation. Grantee agrees to provide the City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the Grantee’s insurers are unwilling to provide such notice, then Grantee shall have the responsibility of notifying the City promptly in the event of Grantee’s failure to renew any of the required insurance coverages, or insurer’s cancellation or non-renewal.
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Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Grantee’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability.
The policy(ies) shall not contain any cross-liability exclusions.
The Grantee may satisfy any or all of the insurance requirements under this Section through self-insurance, provided the Grantee is a qualified self-insurer as approved by the State of California or the Grantee submits evidence, reasonably satisfactory to the City's Risk Manager, of sufficient assets to support a self-insurance program. Grantee retains the right to determine what levels of deductibles or self-insured retentions to maintain provided, however, that such deductibles or self-insured retentions are declared to and approved by City's Risk Manager prior to the commencement of this Franchise.
SECTION 16. INDEMNIFICATION BY GRANTEE.
The Grantee shall indemnify, defend with counsel approved by City, protect and hold harmless City, its officers, employees, agents, assigns, and any successor or successors to City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), penalties, attorneys' fees, consultants' and experts' fees, and costs arising directly or indirectly as a result of the Grantee's exercise of the Franchise or operation of the pipeline system, regardless whether any act or omission complained of is authorized, allowed, or prohibited by the Franchise. This indemnity includes, but is not limited to any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other, plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous wastes including petroleum and its fractions as defined in the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"; 42 U.S.C. § 9601, et seq.] the Resource Conservation and Recovery Act ["RCRA"; 42 U.S.C. § 6901 et seq.] and California Health & Safety Code § 25280 et seq. at any place where Grantee maintains a pipeline for the transportation of substances and liquids pursuant to this Franchise. The foregoing indemnity is intended to (1) supplement and not replace any other indemnity from any source, and (2) operate as an agreement pursuant to Section 107(e) of CERCLA and California Health & Safety Code Section 25364, to assure, protect, hold harmless and indemnify City from liability. This indemnity shall not include those claims, actual damages (including, but not limited to, special and consequential damages), penalties, attorneys' fees, consultant's and expert's fees and costs arising directly or indirectly from the active negligence or willful misconduct of the City, its officers, employees, agents, assigns, or successors-in-interest.
SECTION 17. ASSIGNMENT.
A. Grantee shall not transfer, sell, hypothecate, sublet, or assign the Franchise, nor shall any of the rights or privileges therein be hypothecated, leased, assigned, sold or transferred, either in whole or in part, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person, except the Grantee, either by act of the Grantee or by operation of law, without the prior consent of the City Tuesday, November 18, 2025 Reg CC MTG, Page *128
Council expressed by resolution. Nothing in this Section shall prohibit the Grantee from using its pipelines for the purpose of transporting for other persons oil, petroleum, gas, gasoline, or other hydrocarbon substances, but in such event the Grantee shall be responsible to the City for the full performance and observance of the terms and conditions of this Franchise.
B. Any sale, lease, assignment or transfer of this Franchise or the rights or privileges granted hereby, or any of them, without first obtaining the prior written consent of the City Council, expressed by resolution, whether by operation of law or otherwise, shall be null and void.
C. The City shall not unreasonably withhold its consent to a Franchise transfer. For the purpose of determining whether it shall consent to such transfer, City may inquire into the qualifications of the prospective transferee or controlling party, and Grantee shall assist City in any such inquiry. In seeking City's consent to any change of ownership or control, Grantee shall have the responsibility of insuring that transferee completes an application in form and substance reasonably satisfactory to City. An application shall be submitted to City not less than ninety (90) days prior to the date of transfer. The Grantee shall be required to establish that it is in material compliance with its Franchise.
The transferee shall be required to establish that it possesses the qualifications and financial and technical capability to operate and maintain the pipeline and comply with all Franchise requirements for the remainder of the term of the Franchise. If the City finds that the legal, financial, character, technical, and other public interest qualities of the application satisfactory, and that the proposed transferee has the capability to operate and maintain the system and comply with all Franchise requirements for the then remaining term thereof, the City shall consent to the transfer and assignment of the rights and obligations of such Franchise. The City may condition the transfer to insure the transferee is in material compliance, and remains in material compliance with the Franchise. The City may also condition such transfer upon the payment of a transfer fee of Fifteen Thousand Dollars ($15,000.00) to be paid by the transferee to the City.
D. Grantee shall file with the City, within thirty (30) days after the effective date of any sale, lease, assignment, or transfer, certified copies of the duly executed instrument(s) that officially evidence(s) such sale, lease, assignment, or transfer. If any such duly executed instrument is not filed with the City within thirty (30) days after the effective date of such proposed sale, lease, assignment, or transfer, or if any condition to consent by the City has not been met, the City may determine, and then notify Grantee and the proposed transferee, that the sale, lease, assignment, or transfer has no force or effect and/or that the Franchise is forfeited.
E. The provision of this section shall also apply to any change in control of Grantee. "Change of control" shall mean any sale, transfer, merger, or acquisition of more than ten percent (10%) of Grantee's voting stock, or of Grantee's parent corporation(s), by a person or group of persons acting in concert, who own less than 50% of the voting stock.
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F. Notwithstanding any other provision of this Section, Grantee shall have the right to assign and transfer the Franchise in its entirety, without consent of City, to a corporation acquiring or owning a portion of the assets of Grantee through consolidation, merger, or reorganization, or to a subsidiary of Grantee, or to any person, firm, or corporation having assets of a value in excess of Five Million Dollars ($5,000,000.00). The provisions of this Franchise do not require any such consent and no consent shall be required for any transaction by Grantee by way of mortgage or hypothecation covering all or any part of Grantee's property, which mortgage or hypothecation is for the purpose of securing an indebtedness of Grantee or for the purpose of renewing, extending, refunding, retiring, paying or cancelling, in whole or in part, any such indebtedness.
SECTION 18. RECEIVERSHIP AND FORECLOSURE.
A. Subject to applicable provisions of the Bankruptcy Code, the Franchise shall, at the option of the City, cease and terminate one hundred twenty (120) days after the appointment of a receiver or trustee to take over and conduct the business of the Grantee whether in a receivership, reorganization, bankruptcy or other action or proceeding unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred twenty (120) days, or unless:
1. Such receiver or trustee shall have, within one hundred twenty (120) days after his election or appointment, fully complied with all terms of the Franchise and remedied all breaches of • the Franchise or provided a plan for the remedy of such breaches which is satisfactory to the City; and
2. Such receiver or trustee shall, within said one hundred twenty (120) days, execute an agreement duly approved by the court having jurisdiction, whereby such receiver or trustee assumes and agrees to be bound by each and every term, provision, and limitation of the Franchise.
B. Upon the foreclosure or other judicial sale of all or a substantial part of a pipeline system, the Grantee shall notify the City Clerk of such fact, and such notification shall be treated as a notification that a change in ownership of the Grantee has taken place and the provisions of this Chapter governing such changes shall apply.
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SECTION 19. WAIVER OF BREACH.
No waiver of the breach of any of the covenants, agreements, restrictions, or conditions of this Franchise by the City shall be construed to be a waiver of any such succeeding breach of the same or other covenants, agreements, restrictions, or conditions of this Franchise. No delay or omission of the City in exercising the right, power, or remedy herein provided in the event of default shall be construed as a waiver thereof, or acquiescence therein, nor shall the acceptance of any payments made in a manner or at a time other than is herein provided be construed as a waiver of or variation in any of the terms of this Franchise.
SECTION 20. DEFAULT.
A. In any event that the Grantee shall default in the performance of any of the terms, covenants, and conditions herein, the City Manager may give written notice to the Grantee of such default. In the event that the Grantee does not commence the work necessary to cure such default within five (5) days after such notice is received or prosecute such work diligently to completion, the City Council may declare this Franchise forfeited by giving written notice thereof to the Grantee, whereupon this Franchise shall be void and the rights of the Grantee hereunder shall terminate and the Grantee shall execute an instrument of surrender and deliver the same to the City.
If the City Council declares this Franchise forfeited, it may thereupon and thereafter exclude the Grantee from further occupancy or use of all City roads authorized under this Franchise.
A forfeiture of said Franchise shall not of itself operate to release the bond filed for said Franchise.
Upon declaring a Franchise forfeited, the City Council may elect to take and accept the bond as liquidated damages therefore and pursue any other legal remedy for any damage, loss, or injury suffered by the City as a result of such breach. After forfeiture, the bond shall remain in full force and effect for a period of one (1) year unless exonerated by the City Council. No bond shall be exonerated unless a release is obtained from the City Engineer and is filed with the City Clerk. The release shall state whether all excavations have been back filled, all obstructions removed, and whether the substratum or surface of City roads occupied or used have been placed in good and serviceable condition. Release shall not constitute a waiver of any right or remedy which the City of Lomita may have against the Grantee or any person, firm, or corporation for any damage, loss, or injury suffered by the City as a result of any work or activity performed by the Grantee in the exercise of this Franchise.
B. Cumulative Remedies. No provision herein made for the purpose of securing the enforcement of the terms and conditions of this Franchise shall be deemed an exclusive remedy or to afford the exclusive procedure, for the enforcement of said terms and conditions, but the remedy and procedure herein provided, in addition to those provided by law, shall be deemed to be cumulative.
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SECTION 21. SCOPE OF RESERVATION.
Nothing herein contained shall ever be construed so as to exempt the Grantee from compliance with all ordinances of the City now in effect or which may be hereafter adopted which are not inconsistent with the terms of this Franchise. The enumeration herein of specific rights reserved shall not be construed as exclusive, or as limiting the general reservation herein made or as limiting such rights as the City may now or hereafter have in law.
SECTION 22. EMINENT DOMAIN.
The franchise granted hereunder shall not in any way or to any extent impair or affect the right of the City to acquire the property of the Grantee hereof either by purchase or through the exercise of the right of eminent domain, and nothing herein contained shall be construed to contract away or to modify or to abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to the Grantee; nor shall this franchise ever be given any value before any court or other public authority in any proceeding of any character in excess of the cost to the Grantee of the necessary publication and any other sum paid by it to the City therefore at the time of the acquisition thereof.
SECTION 23. AMENDMENT OF FRANCHISE ACT.
In the event the Franchise Act of 1937 ("Franchise Act") is amended by the Legislature or interpreted by a final decision of the Supreme Court of the State of California in a manner that materially affects or materially changes the rights or obligations of the parties, City and Grantee shall meet to negotiate changes to this franchise which may be appropriate in view of such change in law. The parties agree to meet and to negotiate in good faith in a commercially reasonable manner.
SECTION 24. NOTICE.
Any notice required to be given under the terms of this Franchise, the manner of service of which is not specifically provided for, may be served personally or by United States First Class Mail as follows:
A. Upon the City, by addressing a written notice to the City Clerk of the City of Lomita, 24300 Narbonne Avenue, Lomita. California 90717; B. Upon the Grantee, by addressing a written notice to Phillips 66 Company, P.O.
Box 421959, Houston, TX 77242-1959; Attention: Real Estate Services Manager C. For such other address as may from time to time be furnished in writing by one party to the other and depositing said notice in the United States Mail, first class, postage prepaid.
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When service of any such notice is made by mail, the time of such notice shall begin upon deposit of same in the United States Mail, first class, postage prepaid.
SECTION 25. SUCCESSORS.
The terms herein shall inure to the benefit of and shall bind, as the case may be, the successors and assigns of the parties hereto, subject, however, to the provisions of Section 17.
SECTION 26. INTERPRETATION.
This Franchise is granted upon each and every condition herein contained and shall be strictly construed against Grantee. Nothing shall pass by the Franchise granted hereby to Grantee unless it be granted in plain and unambiguous terms. Each of said conditions is a material and essential condition to the granting of the Franchise.
SECTION 27. FORCE MAJEURE.
The time within which Grantee is obligated hereunder to construct, erect, maintain, operate, repair, renew, change the size of, and remove pipelines or other improvements shall be extended for a period of time equal in duration to, and performance in the meantime shall be excused on account of and for and during the period of any delay caused by strikes, threats of strikes, lockouts, war, threats of war, insurrection, invasion, acts of God, calamities, violent action of the elements, fire, impossibility of obtaining materials, or other things beyond the reasonable control of Grantee.
SECTION 28. ATTORNEYS' FEES.
In the event of legal action between the City and Grantee (or Grantee's bonding companies or insurance carriers) to compel performance of or to recover for breach of any covenant, agreement, or condition contained in this Franchise, or for damages, each party shall pay its own attorneys' fees and costs.
SECTION 29. PUBLICATION EXPENSES
The Grantee of this Franchise shall pay to the City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting of this Franchise; said payment to be made within thirty (30) days after the City shall have furnished said Grantee with a written statement of such expenses.
SECTION 30. ACCEPTANCE.
The Franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by the Grantee with the City Clerk of the City within thirty (30) days of the effective date of this Ordinance
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SECTION 31 SEVERABILITY.
The City Council hereby declares that the provisions of this Ordinance are severable and if for any reason a court of competent jurisdiction shall hold any sentence, paragraph, or Section of this Ordinance to be invalid, such decision shall not affect the validity of the remaining parts of this Ordinance.
SECTION 32. CERTIFICATION.
The City Clerk shall certify to the adoption of this ordinance and shall cause the same to be posted as required by law.
SECTION 33. EFFECTIVE DATE.
This ordinance shall take effect thirty (30) days after the date of its passage and adoption; and within fifteen (15) days after its passage and adoption, the City Clerk shall cause a copy of this ordinance to be published in accordance with the provisions of the law. The City Clerk shall certify the adoption of this ordinance.
PASSED, APPROVED AND ADOPTED this _______ day of
____________20___.
____________________________
(Mayor’s name)
Mayor
ATTEST:
Kathleen Horn Gregory, MMC, City Clerk
APPROVED AS TO FORM:
Trevor Rusin, City Attorney
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EXHIBIT A
PHILLIPS 66 COMMON CARRIER UTILITY FACILITIES
Pipeline
Size Name
Length
(Feet) Description Product Type Plat Map
Franchise
Number D4A Number Status
10" "A"Line 289
Walnut Street from Torrance City
Boundary south to Nordman Street Oil CC0024 361 D4A159 Idle 10" "A"Line 1407
Walnut Street from Torrance City
Boundary South to 247th Street East to
Los Angeles County Oil CC0025 361 D4A159 Idle
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EXHIBIT B
PHILLIPS 66 PROPRIETARY FACILITIES
Pipeline
Size Name
Length
(Feet) Description Product Type Plat Map
Franchise
Number D4A Number Status
6" 175
Lomita Blvd. from east Boundary
Westerly 175 feet Gasoline PP0020 361 D4A159 Idle
_
8 "
"F" Line 2142
Lomita Blvd. from east Boundary to
Walnut Street then North to 246th Street Gasoline PP0020 361 D4A159 Idle 10"
No. 1
TGL 4280
Lomita Blvd. from east Boundary to
Walnut Street then North to 246th Street Gasoline PP0020 361 D4A159 Active 12"
No. 2
TGL 4290
Lomita Blvd. from east Boundary to
Walnut Street then North to 246th Street Gasoline PP0020 361 D4A159 Active 6" 1407
WaInut Street from Torrance City
Boundary South to 247th Street East to
Los Angeles County Gasoline PP0020 361 D4A159 Idle
6" 265
WaInut Street from Torrance City
Boundary South to Nordman Street Gasoline PP0021 362 D4A160 Idle 8" "F" Line 289
Walnut Street from Torrance City
Boundary South to Nordman Street Gasoline PP0022 363 D4A161 Idle Tuesday, November 18, 2025 Reg CC MTG, Page *140
Linh C. Huynh
Transaction Support Analyst
Real Estate Services
PHILLIPS 66
1660 W. Anaheim Street
Wilmington, CA 90744
O: 310-952-6264
[email protected]
September 15, 2025
City Of Lomita
Public Works Department
24300 Narbonne Ave.
Lomita, CA U.S.A. 90717
To Whom It May Concern:
Phillips 66 Company and Phillips 66 Pipeline, LLC, as Applicants, hereby applies for a franchise with the City of Lomita pursuant to Division 3, Chapter 2 of the Public Utilities Code of the State of California (the “Franchise Act of 1937”).
1. Applicant’s name and address is:
Phillips 66 Company and Phillips 66 Pipeline, LLC
P.O. Box 421959
Houston, TX 77242-1959
Attention: Real Estate Services Manager
2. Purpose. The purpose of the franchise is to lay and use pipelines, not to exceed twentyfour (24) inches in internal diameter, for the transportation of liquid petroleum hydrocarbons, industrial gases, biofuels, and products thereof, in, under, along and across the public streets, highways, alleys within the City of Lomita.
3. Term. The term of this Franchise shall be for a period of five (5) years from the effective date in December 18,2025, and as may be extended by the City’s consent to Applicant’s option to extend for two (2) additional five (5) year terms thereafter. This Franchise shall endure in full force and effect during that term (i) until the same shall, with the consent of the California Public Utilities Commission, be voluntarily surrendered or abandoned by its possessor, (ii) until the State of California or some municipal or public corporation thereunto duly authorized by law shall purchase by voluntary agreement or shall condemn and take under the power of eminent domain, all property actually used and useful in the exercise of the franchise, and situated within the territorial limits of the State, municipal or public corporation purchasing or condemning such property, or (iii) until the franchise shall be forfeited for an uncured default of its terms by the Applicant.
4. Franchise Fee. If the franchise is granted to Applicant and accepted by Applicant, Applicant will pay to the City for each full or fractional calendar year, in lawful money of Tuesday, November 18, 2025 Reg CC MTG, Page *141
the United States, a sum annually that shall be equivalent to 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 for CPI pursuant to Section 3 of the franchise agreement, in accordance with the following schedule in Section 7 of the franchise agreement.
Linh Huynh
Transaction Support Analyst
By,
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Attachment 3 – Map 1
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Attachment 3 – Map 2
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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).
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2615 Pacific Coast Highway #329
Hermosa Beach, California 90254
(310) 543-6635
[email protected]
City of Lomita
24300 Narbonne Avenue
Lomita, California 90717
Account Number: 5007771
Ad Order Number: 0011761693
Customer's Reference/PO Number:
Publication: Daily Breeze
Publication Dates: 10/27/2025
Total Amount: $360.03
Payment Amount: $0.00
Amount Due: $360.03
Notice ID: 9sBdprRcrX7GL9dUYVUZ
Invoice Text: 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 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, 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. Kathleen Horn Gregory, MMC, City Clerk
Notice of Intent Phillips 66 - Page 1 of 1
Tuesday, November 18, 2025 Reg CC MTG, Page *147
Daily Breeze
2615 Pacific Coast Highway #329
Hermosa Beach, California 90254
(310) 543-6635
0011761693
City of Lomita
24300 Narbonne Avenue
Lomita, California 90717
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Los Angeles
I am a citizen of the United States and
a resident of the County aforesaid; I
am over the age of eighteen years,
and not party to or interested in the
above-entitled matter. I am the
principal clerk of the printer of Daily
Breeze, a newspaper of general
circulation, printed and published in
the City of Torrance*, County of Los
Angeles, and which newspaper has
been adjudged a newspaper of
general circulation by the Superior
Court of County of Los Angeles, State
of California, under the date of June
15, 1945, Decree No. Pomo C-606.
The notice, of which the annexed is a
printed copy (set in type not smaller
than nonpareil), has been published in
each regular and entire issue of said
newspaper and not in any supplement
thereof on the following dates, to wit:
10/27/2025
I certify (or declare) under the penalty
of perjury that the foregoing is true and
correct.
Dated at Hermosa Beach, California
On this 27th day of October, 2025.
______________________________
Signature
*Daily Breeze circulation includes the following
cities: Carson, Compton, Culver City, El
Segundo, Gardena, Harbor City, Hawthorne,
Hermosa Beach, Inglewood, Lawndale,
Lomita, Los Angeles, Long Beach, Manhattan
Beach, Palos Verdes Peninsula, Palos Verdes,
Rancho Palos Verdes, Rancho Palos Verdes
Estates, Redondo Beach, San Pedro, Santa
Monica, Torrance and Wilmington
Notice of Intent Phillips 66 - Page 1 of 1
Tuesday, November 18, 2025 Reg CC MTG, Page *148