Agenda packet, regular meeting — South Gate City Council, May 28, 2024 (part 1 of 3)

SOUTH GATE CITY COUNCIL

REGULAR MEETING AGENDA
Tuesday, May 28, 2024 at
6:30 p.m.

SOUTH GATE COUNCIL CHAMBERS
8650 CALIFORNIA AVE
SOUTH GATE, CA 90280
VIEW MEETING LIVE ONLINE AT:

HTTPS://YOUTUBE.COM/@SOUTHGATECA90280
City Officials
MAYOR,
Gil Hurtado

CITY CLERK,
Yodit Glaze

VICE MAYOR,
Maria Davila

CITY TREASURER,
Jose De La Paz

COUNCIL MEMBER,
Maria del Pilar Avalos

CITY MANAGER,
Rob Houston

COUNCIL MEMBER,
Joshua Barron

CITY ATTORNEY,
Raul F. Salinas

COUNCIL MEMBER,
Al Rios

If you would like to participate in this meeting, you can participate via the following options:

1. VIEW THE MEETING LIVE ONLINE AT: https://youtube.com/@SouthGateCA90280 Please allow up to 24 hours after the meeting for the archive to be available.

2. PARTICIPATE BEFORE THE MEETING by emailing the City Clerk at:
[email protected] no later than 4:00 p.m. on the day of the meeting. Please write "Public Comment" in the subject line.

3. ATTEND THE MEETING IN PERSON
*The disruption in service of any alternative method does not prelude the City Council or other legislative
body from taking further action and moving forward on the agenda.

Meeting Schedule
The regular meetings of the City Council are held on the second and fourth Tuesday of each month, 1 closed session business will usually commence at 5:30 p.m., when scheduled, and general business session will commence at 6:30 p.m.

Brown Act
Agendas are drafted to accurately state what the legislative body is being asked to consider. The legislative body can take action on "all items" listed on the agenda and be in compliance with the open meeting laws. Under the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The governing body may direct staff to investigate and/or schedule certain matters for consideration at a future meeting.

City's Vision Statement
We envision a thriving, safe and inclusive community where everyone has the opportunity to access exceptional services, education and support to be resilient and live full, vibrant lives.

Public Communications
Public Comments on agenda items are limited to three (3) minutes. All comments are to be addressed directly to the Agency Members not to the members of the public.

Emails for public comment received prior to 12pm on the day of the Council Meeting will be summarized by the City Clerk, not read in its entirety. A copy of the email will be provided to the City Council and will also be available at the City Clerk's Office for public review. A copy of each email will be recorded for public record and noted on the official minutes of tonight's meeting.

Call to Order/Roll Call With Invocation & Pledge

CALL TO ORDER:

Gil Hurtado, Mayor
INVOCATION:

Steve Costley, Director of Parks and Recreation
PLEDGE OF ALLEGIANCE:

Eric Mirzaian, Deputy Director-Field Operations
ROLL CALL:

Yodit Glaze, City Clerk
Meeting Compensation Disclosure

Pursuant to Government Code Section 54952.3: Disclosure of compensation for meeting attendance by City Council Members is $790 monthly regardless of the amount of meetings.

Proclamations, Certificates, Introductions And Ceremonial Actions Public Hearings

1. Introduce an Ordinance granting a 10-Year Franchise Agreement to Pacific Pipelines Systems, LLC

Following the conclusion of the public hearing, the City Council will consider waiving the reading in full and introducing an
Ordinance
granting a ten-year franchise agreement to
Pacific Pipeline System, LLC., to use, maintain, repair, and replace pipelines beneath specified public streets, together with related appurtenances, for transmitting and 2 distributing oil and oil products. (PW)
Documents:

Item 1 Report 05282024.pdf

2. Resolution ordering the levy of annual assessment for FY 2024/25 for Street Landscape and Lighting
Maintenance District

Following the conclusion of the public hearing, the City Council will consider adopting a Resolution
ordering the levy of the Fiscal Year 2024/25 Annual Assessment for the Street Lighting and Landscaping Maintenance District No. 1. (PW) Documents:

Item 2 Report 05282024.pdf

3. Consider Appeal of the Planning Commission’s denial of a zone change request

Following the conclusion of the Public Hearing, the City Council will consider: (CD) a. Upholding the action taken by the Planning Commission at its April 16, 2024, meeting, by adopting a
Resolution
attached hereto;
b. Or, in the alternative, reversing the Planning Commission action by adopting a Resolution attached hereto, which is a Resolution of Intent to adopt an ordinance amending the City's Zoning Code to remove certain restrictions on the size and location of warehouses in the City's Urban Mixed Use and Commercial Industrial zones; or c. Take other such action as the City Council may determine.

Documents:

Item 3 Report 05282024.pdf
Comments From The Audience - Non-Agenda Items
During this time, members of the public may address the City Council regarding any items not listed on the agenda and within the subject matter jurisdiction of the City Council and not on this agenda. Comments from the audience will be limited to three (3) minutes per speaker; unless authorized by the Mayor, the time limit may not be extended by utilizing another member's time. There will be no debate or action on items not listed on the agenda unless authorized by law. The collective initial period of time for comments from the audience shall be limited to 45 minutes. Any speaker that did not get a chance to speak during this segment due to the 45-minute limitations will be able to speak at the end of the meeting prior to adjournment.

Note: The City Council desires to provide all members of the public with the opportunity to address the Council. Nevertheless, obscene language, comments intended to disrupt/interfere, other actions which disrupt the progress of the meeting or slanderous comments will not be tolerated and may result in ejection and/or may constitute a violation of 3 South Gate Municipal Code Section1.04.110.

Reports And Comments From City Officials

During this time, members of the City Council will report on matters pertaining to their service on various intergovernmental boards and commissions as a representative of the City pursuant to Assembly Bill 1234. City Council Members will also have an opportunity to comment on matters not on the agenda.

Consent Calendar Items

Agenda Items
4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
and
14 are Consent Calendar Items. All items
including Ordinances, Resolutions and Contracts, may be approved by adoption of the Consent Calendar, individually and collectively by one (1) motion. There will be no separate discussion of these items unless Members of the City Council, the public, or staff request that specific items be removed from the Consent Calendar for separate discussion and action.

Members of the public are permitted to speak on any item listed but their time period is limited to three (3) minutes in total.

Any motion to introduce or adopt an Ordinance on the Consent Calendar shall be: (1) a motion to waive the reading of the Ordinance and introduce the Ordinance or (2) a motion to waive the reading of the Ordinance and adopt the Ordinance, as appropriate.

4. Ordinance granting a 10-Year Franchise to Tesoro SoCal

The City Council will consider: (PW)
a. Adopting
Ordinance No. 2024-23-CC
granting a ten-year franchise from February 27,
2024, through and including February 26, 2034, to Tesoro SoCal Pipeline Company, LLC., to use, maintain, repair and replace a single pipeline beneath specified public streets, together with related appurtenances, for transmitting and distributing oil and oil products, within the City; and
b. Appropriating $23,208 in additional franchise fees to the General Fund revenue estimates for FY 2024/25 and $10,470 plus consumer price index increase, annually, thereafter.

Documents:

Item 4 Report 05282024.pdf

5. Resolution declaring a continued emergency and authorizing repair, replacement, or maintenance activities of public facilities related to the Urban Orchard, City Project No. 539-PRK without public bidding, pursuant to the
Emergency Contracting Procedures of the South Gate Municipal Code and the California Public Contract Code

The City Council will consider making a finding and adopting a Resolution
declaring an
emergency still exists and authorizing repair, replacement or maintenance activities of public facilities related to the Urban Orchard, City Project No. 539-PRK, without public 4 bidding, pursuant to the emergency contracting procedures of the South Gate Municipal Code and the California Public Contract Code. (PW)
Documents:

Item 5 Report 05282024.pdf

6. Resolution approving Parking Restrictions on Southern Avenue

The City Council will consider: (PW)
a. Adopting a
Resolution
to prohibit overnight parking on portions of Southern Avenue and Southern Place adjacent to South Gate Park between the hours of 11:00 P.M. and 7:00 A.M. of the day following; and
b. Approving finding that the Resolution prohibiting overnight parking is exempt from CEQA.

Documents:

Item 6 Report 05282024.pdf

7. Resolution amending Resolution No. 6454 (Salary Resolution And Position Classification Plan) approving the update to the Job Classification Specification for the Housing Assistant in the Community Development Department

The City Council will consider adopting a
Resolution
amending Resolution No. 6454
(Salary Resolution and Position Classification Plan) to approve the update to the classification specification for the full-time position of Housing Assistant in the Community Development Department. (HR)
Documents:

Item 7 Report 05282024.pdf

8. Resolution Denouncing Digital Discrimination

The City Council will consider adopting a
Resolution
denouncing digital discrimination.
(CM)
Documents:

Item 8 Report 05282024.pdf

9. Amendment No. 1 to Contract No. 2023-99-AC with Engineering Design Analysis, Inc. for Sports Center HVAC Project, City Project No. 712-PRK

The City Council will consider: (PW)
a. Approving
Amendment

No. 1 to Contract No. 2023-99-AC
with Engineering Design
Analysis, Inc., (EDA) to provide design services to modify the design plans of the Sports 5 Center HVAC Project, City Project No. 712-PRK, at a cost not to exceed $30,000; b. Appropriating $1,200,000 in Rendon 2023, State of California Grant Funds to fully fund the design and construction of the Sports Center HVAC Project, City Project No. 712- PRK; and
c. Authorizing the Mayor to execute Amendment No. 1 to Contract No. 2023-99-AC in a form acceptable to the City Attorney.

Documents:

Item 9 Report 05282024.pdf

10. Agreement with Golden Meters Services, Inc. for Professional Services for the Lead and Copper Rule Revisions

The City Council will consider: (PW)
a. Approving a
Professional Services

Agreement
with Golden Meters Service, Inc., to
provide services to complete the Lead and Copper Rule Revisions, City Project No. 724- WTR as necessary to meet new Federal requirements, in an amount not-to-exceed $683,000;
b. Appropriating $683,000 in Water Funds to fully fund the Lead and Copper Rule Revisions, City Project No. 724-WTR; and
c. Authorize the Mayor to execute the Agreement in a form acceptable to the City Attorney.

Documents:

Item 10 Report 05282024.pdf

11. General Service Agreement with Conservation Corps of Long Beach

The City Council will consider: (PARKS)
a. Accept $574,497 in grant funding from the State of California, OPR/California Volunteers program; an
b. Enter into a
General Services

Agreement
with the Conservation Corps of Long Beach
("CCLB") for various Workforce Development projects within the City; and c. Appropriating $568,497 in grant funds from OPR/California Volunteers, Californians for All Youth Workforce Program to account #100-460-61-6646 to pay for the General Services Agreement with the Conservation Corps of Long Beach; and d. Authorize the Mayor to sign the agreement in a form approved by the City Attorney; and
6 e. Delegate authority to the Director of Parks & Recreation, or his designee, to sign and submit any additional documents including, but not limited to, applications, agreements, amendments, and payment requests which may be necessary for the completion of the General Services agreement.

Documents:

Item 11 Report 05282024.pdf

12. Purchase of Edge Network Switches

The City Council will consider: (ADMIN SVCS)
a. Authorizing the issuance of a Purchase Order to VectorUSA for edge data network switches for remote-sites, licensing, three years of maintenance and the necessary network design, implementation, and training services in the amount of $176,262; b. Authorizing the City Manager or his designee, to execute the Purchase Order and all related
contractual documents, in a form approved by the City Attorney.

Documents:

Item 12 Report 05282024.pdf

13. Certain Items as Surplus Property

The City Council will consider declaring various vehicles and equipment listed in Attachment A as surplus property and authorizing the sale of these items at auction. (ADMIN SVCS)
Documents:

Item 13 Report 05282024.pdf

14. Minutes

The City Council will consider: (CLERK)
a. Approving the Special and Regular Meeting minutes of April 9, 2024; and b. Approving the Special and Regular Meeting minutes of April 23, 2024.

Documents:

Item 14 Report 05282024.pdf
Reports, Recommendations And Requests

15. Receive Military Equipment Annual Report and renewing South Gate Municipal Code for Military Equipment Policy

7 The City Council will consider: (PD)
a. Receiving and filing the Annual Military Equipment Report; b. Finding this matter to be exempt under CEQA per Section 15061(b)(3) of CEQA Guidelines; and
c. Renewing South Gate Municipal Code 1.39.010 (Military Equipment Policy).

Documents:

Item 15 Report 05282024.pdf

16. Presentation of the 2023/24 Strategic Plan

The City Council will consider receiving Council Strategic Goal List and review proposed priority project list designed to support the City Council Goal list. Approve Council Goals and priority project list to set 2024 priorities. (CM)
Documents:

Item 16 Report 05282024.pdf

17. Approve warrant register for May 28, 2024

The City Council will consider approving the Warrant Register for May 28, 2024. (ADMIN SVCS)

Total of Checks: $2,900,424.50 Less: Voids $

0.00 Less: Employee Payroll Deductions $
(439,094.16)
Grand Total: $2,461,330.34

Documents:

Item 17 Report 05282024.pdf
Adjournment

I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on May 23, 2024, at 3:30 p.m., as required by law.

Yodit Glaze
City Clerk

8 GENERAL NOTICE TO THE PUBLIC
The City Council adopted new rules relating to the conduct of the public meetings, proceedings, and business in the City of South Gate on July 12, 2022, (Resolution 2022-38-CC) and go into effect on August 1, 2022. Resolution #2022-38-CC is available at the City Clerk’s Office.

MEETING SCHEDULE
Regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session meetings will commence at 5:30 p.m. unless posted otherwise on its agenda. The regular City Council meetings will commence at 6:30 p.m. Agendas are available at the following locations:

City Clerk
Office,
Public Notice Boards at City Hall, and on the
City’s web page at https://www.cityofsouthgate.org
The Public can sign up to receive automatic notices of postings of agendas for the City Council or any other Commission or Board of the City of South Gate. Visit the City webpage and click on the Agenda & Minutes icon. That will take you the page where an individual can enter their email in the “Email Updates” box to register.

PUBLIC COMMENT/PARTICIPATION
Any person may request to address a legislative body during a public meeting. The Presiding Officer will call upon those present in the Council Chambers first. After all speakers in the Chambers have spoken, the Presiding Officer will call upon those participating via zoom or teleconference.

Speakers are limited to three (3) minutes on any item listed on the agenda, including public hearings.

Under Comments from the Audience portion, speakers are also limited to a single three (3) minutes time limit. Comments from the Audience is initially limited to 45 minutes at each meeting. Any speaker still wishing to speak, that did not speak, will have an addition Comments from the Audience opportunity after the last business item is finished. The Presiding Officer may extend the time limit as long as there is no objection from the City Council as a body.

To ensure that the public is able to participate, the City provides the opportunity to submit their comments in person, virtually, email, phone call, mail and any other method which may become available. Methods of participation may be subject to change during other such times when a State of Emergency, Health Order or State Executive Order limits in-person participation.

CURFEW
In absence of a motion duly adopted by majority vote of the City Council, the Presiding Officer may adjourn the City Council meetings at 10:30 p.m. The Presiding Officer may ask the City Council if any agenda items listed should be continued or dealt with during the meeting. For those items to be continued, the City Council can direct the item be placed on the next City Council agenda or the current meeting may be adjourned to a time certain at which time the meeting shall be reconvened as an Adjourned Regular Meeting of the City Council and action upon the published agenda continued.

STAFF REPORTS
As a general rule, staff reports. or other written documentation are prepared/organized with respect to each item of business listed on the agenda. Meeting agendas and staff reports are available at least 72- hours prior to the scheduled regular City Council meeting and a minimum of 24-hours prior to a Special City Council meeting. There are times when the City Council receives written material. revised material after the posting of agendas, these materials are become a public record and will be available for public view within 72-hours after the meeting in which they were received. Those materials and any other public document can be inspected in the City Clerk's Office located at 8650 California Avenue, South Gate. 9 SERVICES TO FACILITATE ACCESS TO PUBLIC MEETINGS
In compliance with the American with Disabilities Act, if you need special assistance to participate in the City Council Meetings, please contact the Office of the City Clerk. Notification 48 hours prior to the City Council Meeting will enable the City to make reasonable arrangements to assure accessibility. For further information, please contact the Office of the City Clerk at (323) 563-9510 or via email at [email protected]
.
10 Office ul i:.o-
SOuth Gate City Clerk Item No. 1
MAY 2 2 2024
FILED
2:35-(;'s
C'Uy of South Gate

CITY COUNCIL

AGENDA JLL
For the Regular Meeting of.' May 28, 2024
Departmerbt Head:

Rob Houston
SUBJECT: ORDINANCE GRANTING A FRANCHISE AGREEMENT TO PACIFIC PIPELINE SYSTEM, LLC., AND SETTING A PUBLIC HEARING FOR MAY 28, 2024 PURPOSE: To introduce an ordinance to grant a franchise renewal to Pacific Pipeline System, LLC., ("PPS") for a 10-year term for an existing oil pipeline known as Pipeline No. 063 ("Pipeline 063"), which were recently covered under Ordinance No. 2321. Introduction of the proposed ordinance is the second of three actions required by the City Council to renew the franchise.

RECOMMENDED ACTIONS: Following the conclusion of the public hearing, the City Council will consider waiving the reading in full and introducing an Ordinance granting a ten-year franchise agreement to Pacific Pipeline System, LLC., to use, maintain, repair, and replace pipelines beneath specified public streets, together with related appurtenances, for transmitting and distributing oil and oil products.

FISCAL IMPACT: If the City Council adopts the Ordinance granting the franchise agreement, PPS will pay the City a one-time granting fee and annual fees, as summarized below.

Annual Fees Granting Fee Total
Year l $1,100 $12,943 $14,043
Year 2 to 10 $10,945 *$10,945
Total $12,045 $12,943 $24,988
* Assumes an annual CPI iricrease of 2%.

There will be an increase in revenue. The annual amount received under the previous franchise agreement was $1,000 average per year for a grand total of $21,717 including the Granting Fee. Negotiations have increased that amount to $1,100 per year plus an annual CPI increase for a total estimated revenue of $24,988 inclusive of a CPI increase and granting fee.

The granting fee is consistent with Section 13. 10.010 (Rates - General), of Chapterl3. 10 (Compensation), Division l (Oil, Gas, and Water Pipelines), of Title 13 (Franchises) of the South Gate Municipal Code.

The annual rate is set in compliance with California Public Utilities Code 6231.5 subsection (e)(2), which applies to utility pipelines that are not publicly owned. It authorizes an annual franchise fee in an amount 1 11
agreed to by the applicant and the municipality, or an aru'iual franchise fee computed by multiplying the sum of one-half of the nominal internal diameter of the pipe, expressed in inches, by the number of lineal feet of the pipe within the public streets, ways, alleys, or other public places within the municipality.

NOTICINGPROCEDURES: Before the City Council can grant a Franchise Agreement, California Public Utility Code Sections 6232 et seq. requires a public hearing. A public hearing notice was duly published in The Los Angeles Wave, a newspaper of general circulation on May 2, 2024.

ANALYSIS: The City regulates utility companies that have facilities that occupy the public right-of-way through franchise agreements. The City's 10-year franchise with PPS expired on April 8, 2024. PPS provided a Letter of Interest to the City on March 11, 2024, stating their interest in renewing the franchise agreement for the pipeline located on Miller Way, between Garfield Avenue and Vinvale Terminal, which was granted under Ordinance No. 2321. Before the City can award a franchise, the California Public Utility Code Section 6232 et seq., requires the City Council to hold a public hearing to introduce an ordinance granting the franchise agreement.

The proposed Franchise Agreement is identical to the current Franchise Agreement except for its effective period, term, and fees. Highlights of the proposed Franchise Agreement include:
* Covers Pipeline No. 063.
* A 10-year term from April 9, 2024 to April 8, 2034. @ TermsandconditionswhichareinaccordancewithCaliforniaPublicUtilitiesCodeSection620l and Ordinance
* Pipeline maintenance in accordance with all city, county, state, and federal ordinances, statutes, rules, regulations, and other laws.
* Establishing liability insurance, bond, and indemnity requirements. * Setting the franchise payment, and the rules and requirements under which the PPS franchise will be required to operate.
@ Providing an emergency response plan meeting the requirements of federal and state law. The plan must be comprehensive and provide a 24-hour notification program and emergency response services, including traffic control, street excavation, pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem. It also requires repairs of public streets, alleys, or parkways within seventy-two (72) hours.

The Pipelines carry gasoline and diesel products, and are the only pipelines owned by PPS within the City. The Pipelines are located within 500 feet of the residential and school zones. The safety standard referenced in the Franchise Agreement requires the operation of the Pipelines in accordance with Government Code Section 51010. Under this code, the State Fire Marshall exercises exclusive safety regulatory and enforcement authority over hazardous liquid pipelines and may implement the federal Hazardous Liquid Pipeline Safety Act (49 U.S.C. Sec. 2001 et seq.) and federal pipeline safety regulations, as necessary to obtain annual federal certification. Thus, the Pipelines must be used, operated, repaired, or modified in accordance with the safety regulations set by the California State Fire Marshal, 'further, and/or Chief of Los Angeles Fire Department in accordance with Chapter 13.14 (Special Provisions for Oil Pipelines), Division l (Oil, Gas and Water Pipelines), of Title 13 2 12
(Franchises) of the South Gate Municipal Code. The State Fire Marshal is further required to annually inspect the Pipelines to ensure compliance with laws and regulations. PPS is required to submit certified test results for the pipelines subject to the provision of the Pipeline Safety Act of 1981.

BACKGROUND: PPS owns and operates two existing pipelines in the City ("Pipelines"). The Pipelines carry gasoline and diesel products and have been in place since at least 1994. They have been operated by several oil and pipeline companies under several City franchises. The Pipelines are covered by separate franchises, as follows:
* Pipeline No. 063 is covered under Ordinance No. 2321. This ten-year ordinance was adopted on April 9, 2014 and expired on April 8, 2024. Pipeline No. 063 is a 14-inch diameter, 1/4-mile-long pipeline located on Miller Way, between Garfield Avenue and Vinvale Terminal. The pipeline services the Vinvale Terminal, which is a 35-acre terminal used to store gasoline and diesel fuel products for delivery by tanker trucks.
@ Pipeline No. 2000 is covered under Ordinance No. 2337. The franchise expires on September 13, 2026. This pipeline is a 20-inch diameter, 1-mile-long pipeline located on Alameda Avenue, between Southern Avenue and the south City limit.

The most recent franchise, Ordinance No. 2321, was adopted by the City Council on April 9, 2014, and expired on April 8, 2024. PPS has requested that the franchise for Pipeline No. 063 be renewed for a 10- year term. South Gate Municipal Code, Section 13.08.010, allows the term of the franchise to be twenty- five years. To better manage pipelines within the City, it is the practice of the City to issue franchises on a ten-year term basis in order to ensure the pipelines are well maintained. The proposed Resolution will extend the term of the franchise for an additional ten years, cornmencing retroactively on April 8, 2024, and expiring on April 8, 2034. Introduction of the proposed ordinance is the second of three actions required by the City Council to renew the franchise. The schedule for issuing the Franchise Agreement is as follows:

Action Description Date
1 Adopt a Resolution declaring the intention to grant a franchise to PPS. 4/23/2024 2 Conduct a public hearing and- introduce an ordinance granting a ten- year franchise to PPS. At the conclusion of the public hearing, the City Council may overnule, deny, or deem insufficient any oral or written protests, and may then grant the franchise. 5/28/2024
3 Adopt the Ordinance (Franchise) 6/11/2024
Renewal of the Franchise Agreement is recommended for the reasons following:
* Granting the Franchise Agreement to PPS will automatically bestow rights upon the City and create obligations that must be performed by PPS for the benefit of the City, pursuant to Article 4 (Public Utilities Code §§ 6291 through 6302) of California's Franchise Act of 1937, including the following:
o The City shall have the right to terminate the franchise and/or sue PPS for any failure to properly perform PPS's obligations under the franchise. 3 13
o Requires PPS to comply with ordinances and policies adopted by the City Council relative to the location and maintenance of the Pipeline and any appurtenances. o Provides compensation to the City for the cost of any repairs to public property made necessary by PPS's operations under the franchise.
o Requires PPS to indemnify and defend the City from and against damages resulting from PPS's operations under the franchise.
o Obligates PPS, at its expense, to remove and relocate the Pipeline where necessary due to changes of grade, alignment, or width of public streets. o Obligates PPS to notify the City upon any sale, transfer, assignment or lease of the franchise or any rights granted thereunder.
o Requires PPS to provide a corporate surety bond, savings and loan certificates or shares which the City can use as liquidated damages should PPS fail to fulfill the Franchise Agreement requirements.
* Asnotedabove,FranchiseAgreement2321requirestofileannualreportswiththeCityconfirming the maintenance and operation of the Pipeline is in compliance with federal and state law. PPS has been conducting inspections and testing of the Pipelines using advanced inspection technologies and other best management practices. Evidence available to the City indicates that the Pipelines have been properly maintained by PPS.
o The California Government Code (Section 51010) authorizes the State Fire Marshall to inspect the pipelines. Staff communicated with the Division Chief of the Office of the State Fire Marshall on April 22, 2024.
o According to the State Fire Marshall, PPS "has been performing maintenance and inspections of the Pipelines pursuant to the California Safety Act and U.S. Code of Federal Regulations (CFR). Pursuant to CFR, a pipeline operator must inspect its pipeline at intervals of not to exceed five years. Pipeline No. 063 was hydrostatically inspected on March 25 and March 28, 2024, and the Pipelines are in compliance with the requirements set forth by the Federal Department of Transportation Requirements." Compliance with CEQA: The Pipelines are determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines. Section 15301 provides for exemption of the proposed pipeline franchise, because the project consists of the operation of existing facilities, involving negligible or no expansion of an existing use.

ATT ACHMENTS: A.

Proposed Ordinance
Notice of Public Hearing
Ordinance No. 2321
Letter from the Office of State Fire Marshall
Location Map
KT:lc
4 14
Attachment A
ORDINANCE NO.

CITY OF SOUTH GATE
LOS ANGELES COUNTY, C.=ULIFORNIA

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, GRANTING A TEN (10) YEAR FRANCHISE RENEWAL TO PACIFIC PIPELINE SYSTEM, LLC., TO LAY AND USE

PIPES, DITCHES, FLUMES, CONDUITS AND APPURTENANCES FOR

TRANSMITTING AND DISTRIBUTING OIL OR PRODUCTS THEREOF,

FOR ANY AND ALL PURPOSES IN, ALONG, ACROSS, UPON AND

UNDER THE PUBLIC STREETS, WAYS, AI,LEYS AND PLACES, AS

THE SAME NOW OR MAY HEREAFTER EXIST, WITHIN THE CITY

OF SOUTH GATE
WHEREAS, Pacific Pipeline System, LLC., a Delaware limited liability company ("PPS"), has requested, in accordance with California Public Utility Code Section 6231, that the City grant PPS a franchise for the use of one existing pipeline: a 1,363 foot long, 14-inch diameter pipeline located beneath part of Miller Way, Garfield Avenue and ending at the Vinvale Terminal located at 8601 Garfield Avenue ("Pipeline No. 063"); WHEREAS, on March 10, 2009, the City Council adopted Ordinance No. 2258 to extend the franchise agreement with the City of South Gate relative to Pipeline No. 063 for an additional five years from April 9, 2009 through and including April 8, 2014; WHEREAS, on September 9, 2014, the City Council adopted Ordinance No. 2258 to extend the franchise agreement with the City of South Gate relative to Pipeline No. 063 for an additional ten years from April 9, 2014 through and including April 8, 2024; WHEREAS, the francliise granted by Ordinance No. 2258 expired on April 8, 2024, and PPS wishes to enter into a new franchise with the City of South Gate relative to Pipeline No. 063, retroactive to April 9, 2024;
WHEREAS, the City Council, pursuant to applicable federal, state and local law, is authorized to grant franchises within the City of South Gate; WHEREAS, on April 23, 2024, the City Council adopted a Resolution declaring the intention granting a ten-year term franchise to PPS; WHEREAS, on May 2, 2024, a Notice of Public Hearing was published in the Los Angeles Wave, a newspaper meeting the statutory qualifications for publishing such notices; WHEREAS, on May 28, 2024, the City Council held a duly noticed Public Hearing to introduce an Ordinance granting a ten-year term franchise to PPS; and 1 AS13772.0860872 4880-5638-4694v2
15 NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: Definitions. Whenever in this Ordinance tlie words or phrases hereinafter in this section defined are used, it is intended that they shall have the respective meanings assigned to them in the following definitions (unless, in the given instance, the context wherein they are used shall clearly import a different meaning):

A) The word "City" shall mean the City of South Gate, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.

B) The word "Franchise" shall mean and include any authorization by the City to transmit and distribute thereof for any and all purposes under, along, across or upon the public street, ways, alleys, and places in the City by means of pipes and appurtenances for conducting, transporting, conveying, and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances for any and all purposes.

C) The word "Grantee" shall mean PPS, a Delaware limited liability company, which is the entity to whom the Franchise contemplated in this Ordinance is granted, and its lawful successors or assigns.

D) The phrase "Lay and Use" shall mean to lay, construct, excavate, erect, install, operate, maintain, use, repair, replace, relocate or remove.

E) The phrase "Pipeline Franchise Ordinance" shall mean that certain pipeline franchise Ordinance adopted by the City Council of the City and codified at Chapters 13.02 through 13.18, inclusive, of the South Gate Municipal Code.

F) The phrase "Pipelines and Appurtenances" shall mean one or more pipes and/or pipelines used for conducting, transporting, conveying and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances, together with any appurtenant or related appliance, attachment, cable, cathodic protective device, conduit, equipment, fitting, gauge, main, manhole, meter, pump, regulator, service, trap, valve, vault, vent or wire, where located under, along, across or upon the public streets, ways, alleys, and places in the City.

G) The phrase "Street" shall mean the public streets, alleys and places within the City of South Gate as the same now or may hereafter exist, and in which the City has the opportunity to grant a franchise.

SECTION 2: Grant of Franchise. The right, privilege and franchise, subject to all terms and conditions contained in this Ordinance, and pursuant to the provisions of the Division 3, Chapter 2 of the California Public Utilities Code, known as the Franchise Act of 1937, is hereby granted to Grantee, to use a system of Pipelines and Appurtenances for the purpose of conducting, transporting, conveying and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances under and across the City's right-of-way upon the terms and conditions set forth in Section 3, below. The City acknowledges that Grantee has already installed two (2) "pipes" known as Line 35 (4" diameter) and Line 63 (14" diameter) within the City of South Gate; the City further acknowledges that Grantee sold Line 35 in 2011 and the City granted a new Franchise to the buyer of Line 35; the City expressly 2 AS13772.0860872 4880-5638-4694v2
16 agrees that the right to install, operate, maintain, use, repair, replace, relocate and remove Line 63, but not Line 35, is included among the rights granted in this Ordinance as part of the Franchise.

SECTION 3: Conditions. The rights granted herein shall be subject to (a) the terms and conditions set forth in this Ordinance, and (b) construction of Pipelines and Appurtenances by the Grantee, at the Grantee's expense and at such time or times as directed by the City.

SECTION 4: Term. The Franchise shall be for a term of ten (10) years cornmencing April 9, 2024 (iinmediately following the expiration of Grantor's prior Franchise for Line 63) and expiring April 8, 2034, or until such earlier time that:

A) The Franchise is voluntarily surrendered or abandoned by the Grantee, or assigned, transferred, sold or leased without the prior express written consent of the City, which assignment shall not be unreasonably withheld; or
B) The State of California, the City, or some other municipal or public entity duly authorized by law shall purchase the Franchise area, as described in Section I(B) by voluntary agreement, or shall condemn and take the Franchise area under the power of eminent domain; or the Franchise is forfeited by the Grantee due to the Grantee's noncompliance with the terms and conditions of the Franchise.

C) The Grantee shall, within thirty (30) days after the passage of this Ordinance granting the Franchise, file with the City Clerk a written acceptance of the terms and conditions of this Ordinance: provided, however, tliat as to franchises granted to the United States of America, use will constitute acceptance.

SECTION 5: Insurance
A) On or before commencement of any franchise operations, the Grantee shall obtain or provide satisfactory evidence of having policies of liability and worker's compensation insurance from companies authorized to transact business in the State of California by the Insurance Commissioner of California as provided by Section 13.08.050 of Chapter

13.08, Division I of Title 13.

C) On or before the effective date of this Ordinance, Grantee shall file and thereafter at all times during the life of the Franchise keep on file with the City Clerk a corporate surety bond running to the City or public entity which may become entitled to the benefits herein reserved in the Franchise by virtue of future incorporations or aru'iexations, in the penal sum of ten thousand dollars ($10,000) or such other sum as may be specifically provided for in this Ordinance granting the Franchise, with surety to be approved by the City Attorney, conditioned that Grantee shall well and truly observe, fiilfill and perform each condition of the Franchise and that in case of any breach of condition of the bond afl:er tliirty (30) day's notice to cure has expired, the whole amount of the penal sum shall 3 AS13772.0860872 4880-5638-4694v2
17 be deemed to be liquidated damages and shall be recoverable from the principal and sureties of the bond. If the bond is not to be filed prior to the effective date of this Ordinance, the award of the Franchise may be set aside and this Ordinance granting the Franchise repealed at any time prior to the filing of the bond and any money paid in consideration for the award of Franchise shall be deemed forfeited. In the event that the bond, after it has been so filed, shall at any time during the life of the Franchise, in the reasonable opinion of the City Attorney, becomes insufficient, the Grantee agrees to renew the bond, with sureties to be approved by the City Attorney, within thirty (30) days after written notice to do so from the City Attorney.

D) As an alternate to the filing of a bond, the Grantee may deposit with the City Clerk and assign to the City savings and loan certificates or shares, or both, in the same amount as required on such bond.

SECTION 6: Fee. The Grantee shall pay to the City the following fees pursuant to the following requirements:

A) An initial franchise fee of Twelve Thousand Nine Hundred Forty-Three dollars ($12,943.00) pursuant to Section 13.10.010 of Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code, prior to the adoption of this Ordinance.

B) A base annual fee for times hereafter specified, in lawful money of the United States, as provided for in the Section 6231.5 of the California Public Utility Code, which annual fee shall be computed as follows;

Pipe size (internal
diameter in inches)
Base rate per
lineal foot
0-4......................... $0.088
6 ......................... 0.132
8 ......................... 0.176
10 ......................... 0.220
12 ......................... 0.264
14 ......................... 0.308
16 ......................... 0.352
18 ......................... 0.396
20 ......................... 0.440
22 ......................... 0.484
24 ......................... 0.528
26 ......................... 0.572
28 ......................... 0.616
30 ......................... 0.660
C) For pipelines with an internal diameter not listed above, the fees shall be in the same Proportion to the fees of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches. The annual fee for the first year, April 9, 2024, to April 8, 2025, sliall be 4 AS13772.0860872 4880-5638-4694v2
18 $1,100 plus a one-time granting fee of $12,943.00, after which the fee will increase annually according to the provisions of Section 6 (D).

D) The annual payment for eacli lineal foot of pipeline shall be computed and revised each calendar year as follows:
(a) The applicable base rate shall be multiplied by the Consumer Price Index for the Los Angeles County, as published by the United States Department of Labor, Office of Information for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index for June 30, 1989, which is declared to be 128.7. Under no circumstances shall the multiplying factor be less than one. (b) If tlie United States Department of Labor, Office of Information, discontinues the preparation or publication of a Consumer Price Index for the Los Angeles County, and if no translation table prepared by the Department of Labor is available so as to make those statistics which are then available applicable to the index of June 30, 1989, the municipality shall prescribe a rate of payment which shall, in its judgment, vary from the rates specified in this section in approximate proportion as commodity consumer prices then current vary from commodity consumer prices current in December 1988. On this point, the determination by the municipality shall be final and conclusive.

E) Initial construction charges relative to any new Pipelines and Appurtenances laid during the term of the Franchise, shall be calculated at a rate of one hundred dollars ($100) per mile, or fraction thereof, as provided at the time and in the amounts specified in Section

13.10.040 of Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code.

F) Fees pursuant to Section 13.10.060 of the Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code and shall be due and payable annually during the term of the Franchise and subject to adjustment in accordance with paragraph B and D of Section 6, within three (3) months after the expiration of the calendar year. A rate of ten percent (10%) per annum, or fraction thereof beyond thirty (30) days after payment due date and following ten (10) days after receipt by Grantee of written notice of such delinquency, may be charged as additional consideration.

G) Any neglect, omission or refiisal by the Grantee to make any such payment as and when due, or to file any related statement, certification or verification as to the required payment reasonably required by the City, at the times or in the manner required herein and in the Pipeline Franchise Ordinance, shall be grounds for the declaration of a forfeiture of the Franchise and of all rights hereunder after thirty (30) days' notice to cure has expires as provided for in Section 12.

SECTION 7: Plans. Within ninety (90) days following the date in which any Pipelines and Appurtenances have been laid or constructed under this Franchise, the Grantee shall file a plan or plans in such forms as may be required by the City's City Engineer showing the accurate location and size of all Pipelines and Appurtenances then in place within the Franchise Area, and shall, upon installation of any Pipelines and Appurtenances, or upon change or removal of all or any portion thereof, file a revised map or maps showing the location and size of all such additional, changed or removed Pipelines and Appurtenances as of that day.

SECTION 8: Additional Conditions. The Grantee of this Franchise shall:

A) Construct, install, test, and maintain all Pipelines and Appurtenances in accordance with and in conformity with all City, County, State and Federal Ordinances, statutes, rules, regulations and other laws (whether now existing or hereafter adopted) applicable to the installation, location, use, maintenance and/or removal of the Pipelines and Appurtenances;
B) Pay to the City, on demand, the cost of all repairs to public property made necessary by any operations of the Grantee under this Franchise, including restoring the Street to its original condition upon the removal of all or any portion of the Pipeline and Appurtenances, or upon the termination or non-renewal of the Franchise; C) h'idemnify and hold harmless the City, its officers and employees from any and all liability for damages proximately resulting from the Grantee's acts or omissions under this Franchise; and be liable to the City for all damages proximately resulting from the failure of said Grantee well and faithfully to observe and perform each and every provision of this Franchise;
D) Install, remove or relocate, at the request of the City and without expense to the City, any Pipelines and Appurtenances installed, used and maintained under this Franchise if and when made necessary by any lawful change of grade, alignment or width of the affected Street;
E) Construct, install, use, operate, repair or modify any pipeline for the transportation of flammable or combustible liquids, in a manner prescribed by the California State Fire Marshall, and/or Chief of Los Angeles Fire Department in accordance with Chapter 13.14 Division 1 of Title 13 (Franchises) of the South Gate Municipal Code; and F) Submit certified test results for the pipeline subject to the provision of the Pipeline Safety Act of 1981, California Government Code Section 51010, et seq. The testing shall be conducted as required by the California State Fire Marshal, and certified test results shall be requested by the City from the Fire Marshal. In the event the State Fire Marshal shall fail to provide sucli certified test results to the City, grantee shall provide such test results to the City upon request; and
G) Submit a written petition of franchise renewal to the City at least ninety (90) days prior to the expiration date.
6 AS13772.0860872 4880-5638-4694v2
20 SECTION 9: Permits. The Grantee shall obtain an excavation permit, and pay the applicable fee therefore, prior to comrnencing any excavation in the right-of-way. The Grantee may obtain an excavation permit by filing a set of excavation plans with the City Engineer, which plans shall be subject to tlie City Engineer's review and approval. The excavation plans shall show the location of the proposed excavation, as well as the location of all la'iown existing pipes, sewers, conduits, improvements and other facilities in or under any Street or public property in which the franchise property is located with an adequate description of the proposed work, including an estimate of tlie duration of the interference with any street traffic. The issuance of any excavation permit for the construction or installation of a pipeline for the transmission of flammable or combustible liquids, gases or hazardous materials, shall be as prescribed by the fire Chief of the Los Angeles County Fire Department in accordance witli Chapter 13.14, Division 1, of Title 13 of the Soutli Gate Municipal Code.

A) Where it is necessary to lay underground pipes through, under or across any portion of a paved or macadamized street, such work, where practicable and economically feasible, shall be done by a tunnel or bore so as not to disturb the foundation of such paved or macadamized street. If the same cannot be done, or if it is necessary to cut the street in order to access existing pipes and appurtenances, such work shall be done pursuant to an excavation permit, as provided in above paragraph, to be issued by the City Engineer upon application, therefore.

B) All work shall be subject to inspection by the City Engineer. All street coverings or openings, valves, vaults and manholes shall at all times be kept flush with the surface of the streets; provided, however, that vents for underground vaults and manholes may, subject to the prior approval of the City Engineer, extend above the surface of the streets when such vents are located in parkways, between the curb and the property line. The Grantee shall provide adequate traffic safety barriers, signs, devices and traffic safety warning equipment in accordance with City ordinances, rules or regulations, and shall comply with such additional safety measures as the City Engineer may direct.

SECTION 10: Emergency Response Plan.

A) The Grantee shall develop and maintain an emergency response plan, satisfactory to the City Engineer, which covers all franchise operations within the City. In general, an emergency response plan meeting the reqriirements of Federal and State law and containing the information contained in this section shall be acceptable. The emergency response plan shall include a 24-hour notification program and proof of arrangements capable of providing emergency response services, including but not limited to traffic control, street excavation, pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem, and such other information as the City Engineer shall reasonably require. Repairs to a public street, alley or parkway shall be completed within seventy-two (72) hours unless otherwise authorized by the City Engineer. The City Engineer shall be notified ten (10) days in advance of any proposed change to such arrangements. Grantee's emergency response plan shall be submitted to the City Engineer within thirty (30) days after the effective date of the Franchise.

B) Whenever any Pipeline or Appurtenance breaks or leaks so as to cause the release of oil or products thereof into the public right-of-way, Grantee, and any other person using or controlling the Pipeline or Appurtenance, shall immediately notify the City's Police 7 AS13772.0860872 4880-5638-4694v2
21 Department and Public Works Department and shall implement precautionary safety measures including traffic control, system shutdown, valve closures, and public notification. In the event of an emergency which threatens life, liealth, safety or property, and where it is not possible to obtain an excavation permit prior to commencement of the work, the Grantee may commence such work; provided, however, that within seventy- two (72) hours thereafter the Grantee shall make application to the City Engineer for an excavation pernnit in accordance with the procedures specified herein. Tlie City Engineer may impose conditions upon the issuance of the excavation permit, and all work shall be subject to inspection. Adequate traffic safety barriers shall be maintained at all times, and any damaged portion of the Street shall be restored to its original condition.

C) If any portion of any Street is damaged by reason of defects in any of the Pipes and Appurtenances maintained or constructed by Grantee, or by reason of any other cause attributable to or arising from the operation of any Pipes and Appurtenances constructed or maintained by Grantee, the Grantee shall, at its sole cost and expense, immediately repair all damage and restore the Street to the condition existing before such damage occurred. All such work shall be done under the direction of the City Engineer, and to the reasonable satisfaction of the City Engineer. Grantee shall repair such damage and restore the Street within three (3) working days after written demand therefore by the City Engineer, or such other period as the City Engineer may authorize when required for the protection of the public health and safety.

D) If the Grantee, after reasonable notice, fails or refuses to pave, surface, grade, repave, resurface or regrade as required by the provisions of this Franchise, the City may cause the work to be done and shall keep an itemized account of all costs, including reasonable administrative overhead expenses, Grantee shall pay such costs to City witMn thirty (30) days after presentation to Grantee of an itemized account of sucli costs.

SECTION 11: Records.

A) Grantee acknowledges that the City's records may not be complete and that Pipes and Appurtenances previously unknown to City are frequently discovered. Consequently, by granting this Franchise or by approving any excavation permit requested by Grantee, the City does not warrant the accuracy of information supplied to the Grantee by the City regarding the location or existence of other facilities. Nothing herein shall be deemed to make the City, or any officer, agent or employee of the City, responsible or liable to the Grantee or to any other person by virtue of the City's approval of excavation permits and/or plans, regardless of whether any information is supplied by the City to the Grantee pertaining to the location of existing pipes, facilities or other improvements on, in or under any Street or other public property.

B) The Grantee shall keep and preserve, within the County of Los Angeles for a period of five (5) years, subsequent to the date of the most recent franchise fee determination as ascertained by an audit made by the City or on its behalf, all the records necessary to determine the amount of such franchise fee.

C) At all reasonable times, the Grantee shall permit the City or its duly authorized representative, to examine all Pipelines and Appurtenances and to examine and transcribe any and all books, accounts, papers, maps, and other records kept or maintained by the 8 AS13772.0860872 4880-5638-4694v2
22 Grantee or under its control and associated with the Pipelines and Appurtenances and/or tlie financial condition of the Grantee with respect thereto.

SECTION 12: Failure to Comply.

A) If the Grantee shall fail, neglect or refuse to comply with any of the provisions or conditions of this Francise, and shall not, within thirty (30) days after written demand for compliance, begin the work of compliance, or after commencing such compliance shall fail to prosecute the same with due diligence to completion, then the City, acting by and through its legislative body, may declare this Franchise forfeited.

B) In the event of noncompliance by the Grantee with any of the conditions hereof, the City may, in addition to all other remedies provided for herein, bring suit for the forfeiture or termination of this Franchise.

SECTION 13: Removal or abandonment of facilities.

A) 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 Grantee shall, witin thirty (30) days thereafter, make written application to the Director of Public Works for authority either to: (1) abandon all or a portion of such facilities in place; or (2) remove all or a portion of such facilities. Such application shall describe the facilities desired to be abandoned, their location with reference to City ighways, and shall describe with reasonable accuracy the physical condition of such facilities. The Director of Public Works shall determine whether any abandonment or removal which is thereby proposed may be affected without detriment to the public interest and under what conditions such proposed abandonment or removal may be affected. He or she shall then notify the Grantee of his or her determinations.

B) Within thirty (30) days after receipt of such notice, the Grantee shall apply for a permit from the Public Works Department to abandon or remove the facility.

C) The Grantee shall, within ninety (90) days after obtaining such permit, commence and diligently prosecute to completion the work authorized by the permit.

SECTION 14: Effective Date. This Ordinance shall take effect and be in force thirty (30) days after its adoption and upon written acceptance thereof is filed by the Grantee with the City Clerk of the City.
[Remainder of page left blank intentionally]
9 /3
AS13772.0860872 4880-5638-4694v2
23 SECTION 15: 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 16: Posting of Ordinance. The City Clerk shall certify to the adoption of this Ordinance and shall cause same to be published as required by law.

PASSED, APPROVED and ADOPTED this 11th day of June, 2024.

CITY OF SOUTH GATE:

B7:

Gil Hurtado, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
APPRO FORM:

F. Salinas, City Attorney
10 AS13772.0860872 4880-5638-4694v2
24 Attachment B
SOUTH GATE PRESS Thls spaca Toi flllng stamp only
3731 WILSHIRE BLVD STE 840, LOS ANGELES, CA 90015
Telephone (323) 556-5720 / Fax (213) 834-0584
Yodit Glaze, City Cterk

CITY OF SOUTH GATE /CITY CLERK
8650 CALIFORNIA AVE
SOUTH GATE, CA - 90280

PROOF OF PUBLICATION
(20i 5.5 c.c.p.)
State or Callfornla
County of LOS ANGELES
NOtlCl3TYPe: GF'N-GOVTPUBLICNOTICE
Ad Descrlptlon:
ntroduclng Ordinance Granting a Franchise Paclfic Pipeline am a citlzen of the Uniked States and a resident of the Slate of Californla; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publlsher of the SOUTH GATE PRESS, a nt.wspaper published in the English language In the clty of SOUTH GATE, county of LOS ANGELES, and adjudged a newspaper of general circulation as deflned by the laws of the State of California by the Superior Court of the County of LO8 ANGELES, State of Callfornia, under date 04/19/1929,CaseNo.2734l5. Thatthenotice,ofwhichtheannexedisa printed copy, has been published in each regular and entire issue or said newspaper and not In any supplement thereof on the following dates, to-wit:

Office ofthe
South Gate City Clerk
MAY - 6 2024
FILED
PRE#: 3809308

CITY OF SOUTH GATE

NOTI(,E OF PUBLIC HEARING
NOTI(,(i IS HER!BY (llVENlFal Ihti Clty COUn(Ill
OF 8aUtF Gtil9, Calltotnla Wlll (!OndLN)i a pUbllO
5earlng to Introduce an Otdlnanoe gisnllng a ten
fO) year (ranchlse to Pacllic Plpellna System,
.L(; to u e. melnls 'i. ioair ai d reo)aci a slnale
wllh teleled eppunenances, fat transmltllnp and
proposeo Omlriance, that the oerceniaae wlll be
pald annually from the date of lhti granllng of the
ffanchlse. and In the event such ouyment Is ntil
made the ftanchlse Will be forlelled. A oopy of Ihe
proposed Omlnan> cgn bti revlewed In the Clty
Clerk's offiw dtmnii normal buslness hours.

DATE: Tuesday, May 28, 2024
(iouncll Chambers
South Gaie Clly Hall
Bfl50 Callfomls Avenue
Souih Gate. CA 9[)280
NOTICE 18 HER!BY GIVEN Ihal any end all
then there lesUfy or present evldtince upoFi sny
maller telallng Ihsnala.

NOTICE IS HEREBY GIVEN by order of the Clly
Clerk Ol said (,lly and Is dalsd Aprn 29, 2024.
/sNodlt Glaze, Clty Clerk
612124
PRE-3809308
80uTH GATE PRESI
05/02/2024
Executed oni 05/03/2024
At Los Angeles, Callfornla
I certify (or declare) under penalty of perJury that the foregolng Is true and correct.

Signature
lIlllllIIIIlllIlllllIIIIIIllllllIlllllllIIIIllIllllIIIllIIIIIIIIIl!111111 Emal(
25 CITY OF SOUTH GATE
8ooySa %€;re,,
APR 2!9 7074
F ff [ ED
NOTICE OF P'[TBII(: HTi',ARTN(';
NOTICE IS HEREBY GIVEN that the City Council of South Gate, California will conduct a public hearing to introduce an Ordinance granting a ten (10) year franchise to Pacific Pipeline System, LLC., to use, maintain, repair and replace a siiigle pipeline beneath specified public streets, together with related appurtenances, for transmitting and distributing petroleim products,
Pacific Pipeline System, LLC., and its successors and assigns will, during the life of the franchise, pay to the City the percentage specified in the proposed Ordinance, that the percentage will be paid annually from the date of the granting of the franchise, and in the event such payment is not made the franchise will be forfeited, A copy of the proposed Ordinance can be reviewed in the City Clerk's office during normal business hours.

DATE:

TIME:

LOCATION:

Tuesday, May 28, 2024
6:30 p,m.

Council Chambers
South Gate City Hall
8650 California Avenue
South Gate, CA 90280
NOTICE IS HEREBY GIVEN that any and all persons interested iix the matter lierein above set forth are privileged to attend said hearing and then there testify or present evidence upon any matter relating thereto.

NOTICE IS HEREBY GIVEN by order of the City Clerk of said City and is dated April 29, 2024.

Y odi laze, City Clerlc
Publication date: Thursday, May 2, 2024
Account Number: 100-701-31-6302
26 Attachment C
gi
ORDINANCE NO. -2321

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SOUTH GATE GRANTING A TEN (10) YEAR FRANCHISE TO

PACIFIC PIPELINE SYSTEM, LLC, A DELAWARE LIMITED
LIABILITY COMPANY ("PPS"), TO LAY AND USE PIPES,

DITCHES, FLUMES, CONDUITS AND APPURTENANCES FOR

TRANSMITTING AND DISTRIBUTING OL OR PRODUCTS

THEREOF, FOR ANY AND ALL PURPOSES IN, ALONG,

ACROSS, UPON AND UNDER THE PUBLIC STREETS, WAYS,

ALLEYS AND PLACES, AS THE SAME NOW OR MAY

HEREAFTER EXIST, WITHIN THE CITY OF SOUTH GATE
a
WHEREAS, Pacific Pipeline System, LLC, a Delaware limited liability company ("PPS"), has requested, in accordance with California Public Utility Code Section 6231, that the City grant PPS a franchise for the use of one existing pipeline (the "Pipeline"):
a 1,363 foot long, 14-inch diameter pipeline located beneath part of Miller Way, Garfield Avenue and ending at the Tesoro Vinvale Terminal located at 8601 Garfield Avenue ("Pipeline No. 063"); and
WHEREAS, the most recent such franchise pertaining to the Pipeline was granted on March 10, 2009, when the City Council adopted Ordinance No. 2258 granting an additional 5 year franchise renewal to PPS, to operate the Pipeline; and WHEREAS, the franchise granted by Ordinance No. 2258 expired on April 8, 2014, and PPS wishes to enter into a new franchise agreement with the City of South Gate relative to Pipeline No, 063; and
WHEREAS, the City of South Gate, pursuant to applicable federal, state and local law, is authorized to grant franchises within the City of South Gate; arid WHEREAS, on September 9, 2014, the City Council adopted Resolution No. 7623 declaring its intention to grant a franchise to PPS; and WHEREAS, on September 18, 2014, a Notice of Public Hearing was published in The Press, a newspaper meeting the statutory qualifications for publishing such notices, for a public hearing held on October 14, 2014; and WHEREAS, on October 14, 2014, a public hearing was held to consider the introduction of an Ordinance but was unanimously continued to the City Council Meeting of November 10, 2014; and
1 27
WHEREAS, on November 10, 2014, the City Council held a public hearing and introduced Ordinance No. 2321.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE DOES HEREBY ORDAIN AS FOLLOWS:

SECTIONI: Definitions. Whenever in this Ordinance the words or phrases hereinafter in this section defined are used, it is intended that they shall have the respective meanings assigned to them in the following definitions (unless, in the given instance, the context wherein they are used shall clearly import a different meaning):

B) The word "Franchise" shall mean and include any authorization by the City to transmit and distribute thereof for any and all purposes under, along, across or upon the public street, ways, alleys, and places in the City by means of pipes and appurtances for conducting, transporting, conveying and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances for any and all purposes.

C) The word "Grantee" shall mean PPS, a Delaware limited liability company, which is the entity to whom the Franchise contemplated in this Ordinance is granted, and its lawful successors or assigns.

D) The phrase "Lay and Use" shall mean to lay, construct, excavate, erect, install, operate, maintain, use, repair, replace, relocate or remove.

SECTION 2: Grant of Franchise. The right, privilege and franchise, subject to all terms and conditions contained in this Ordinance, and pursuant to the provisions of the Division 3, Chapter 2 of the California Public lJtilities Code, known as the Franchise Act of 1937, is hereby granted to Grantee, to use a system of Pipelines and Appurtenances 2 28
a
for the purpose of conducting, transporting, conveying and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances under and across the City's right-of-way upon the terms and conditions set forth in Section 3, below. The City acknowledges that Grantee has already installed two (2) "pipes" known as Line 35 (4" diameter) and Line 63 (14" diameter) within the City of South Gate; the City further acknowledges that Grantee sold Line 35 in 2011 and the City granted a new Franchise to the buyer of Line 35; the City expressly agrees that the right to install, operate, maintain, use, repair, replace, relocate and remove Line 63, but not Line 35, is included among the rights granted in this Ordinance as part of the Franchise.

SECTION 4: Term. The Franchise shall be for a term of ten (10) years commencing April 9, 2014 (immediately following the expiration of Grantor's prior Franchise for Line 63) and expiring April 8, 2€)14, or until such earlier time that:
i
A) The Franchise is voluntarily surrendered or abandoned by the Grantee, or assigned, transferred, sold or leased without the prior express written consent of the City, which assignment shall not be unreasonably withheld; or B) The State of California, the City, or some other municipal or public entity duly authorized by law shall purchase the Franchise area, as described in Section 1(B) by voluntary agreement, or shall condemn and take the Franchise area under the power of eminent domain; or the Franchise is forfeited by the Grantee due to the Grantee's noncompliance with the terms and conditions of the Franchise.

C) The Grantee shall, within thirty (30) days afier the passage of this Ordinance granting the Franchise, file with the City Clerk a written acceptance of the terms and conditions of this Ordinance: provided, however, that as to franchises granted to the United States of America, use will constitute acceptance.

SECTION 5: Insurance
gi
A) On or before commencement of any franchise operations, the Grantee shall obtain or provide satisfactory evidence of having policies of liability and worker's compensation insurance from companies authorized to transact business in the State of California by the Insurance Commissioner of California as provided by Section 13.08.050 of Chapter 4 3.08, Division I of Title 13.

B) The Grantee shall file with the City Clerk prior to commencement of any franchise operations, either certified copies of the policies or a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force and as provided by Section 13.08.050 of Chapter 13.08, Division I of Title "13.
3 29
C) On or before the effective date of this Ordinance, Grantee shall file and thereafter at all times during the life of the Franchise keep on file with the City Clerk a corporate surety bond running to the City or public entity which may become entitled to the benefits herein reserved in the Franchise by virtue of future incorporations or annexations, in the penal sum of ten thousand dollars ($10,000) or such other sum as may be specifically provided for in this Ordinance granting the Franchise, with surety to be approved by the City Attorney, conditioned that Grantee shall well and truly observe, fulfill and perform each condition of the Franchise and that in case of any breach of condition of the bond after thirty (30) days notice to cure has expired, the whole 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 the bond is not to be filed prior to the effective date of this Ordinance, the award of the Franchise may be set aside and this Ordinance granting the Franchise repealed at any time prior to the filing of the bond and any money paid in consideration for the award of Franchise shall be deemed forfeited. In the event that the bond, afier it has been so filed, shall at any time during the life of the Franchise, in the reasonable opinion of the City Attorney, becomes insufficient, the Grantee agrees to renew the bond, with sureties to be approved by the City Attorney, within thirty (30) days after written notice to do so from the City Attorney.

SECTION 6: Fee. The Grantee shall pay to the City the following fees pursuant to the following requirements:
i
i
A) An initial franchise fee of eleven thousand two hundred fifty five dollars ($11,255.00) pursuant to Section 13.10.010 of Chapter 13.10, Division 1, of Title 4 3 of the South Gate Municipal Code, prior to the adoption of this Ordinance.

1. The length of pipe expressed in feet located within the franchised area shall be multiplied by the applicable base rate, as adjusted pursuant to subdivision (d), in accordance with the following schedule:

Pipe size (internal
diameter in inches)
0-4
6 8
10 12
14 Base rate per
lineal foot
$0.088

0.132

0.176

0.220

0.264

0.308
4 2b 30
i

0.352

0.396

0.440

0.484

0.528

0.572

0.616

0.660
C) For pipelines with an internal diameter not listed above, the fees shall be in the same Proportion to the fees of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches,
D) The annual payment for each lineal foot of pipeline shall be computed and revised each calendar year as follows:
(a) The applicable base rate shall be multiplied by the Consumer Price Index for the Los Angeles County, as published by the United States Department of Labor, Office of Information for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index for June 30, 1989, which is declared to be 128.7, Under no circumstances shall the multiplying factor be less than one.
(b) If the United States Department of Labor, Office of Information, discontinues the preparation or publication of a Consumer Price Index for the Los Angeles County, and if no translation table prepared by the Department of Labor is available so as to make those statistics which are then available applicable to the index of June 30, 1989, the municipality shall prescribe a rate of payment which shall, in its judgment, vary from the rates specified in this section in approximate proportion as commodity consumer prices then current vary from commodity consumer prices current in December 1988. On this point, the determination by the municipality shall be final and conclusive.

F) Fees pursuant to Section 13."lO.060 of the Chapter 13.10, Division 'I, of Title 13 of the South Gate Municipal Code and shall be due and payable annually during the term of the Franchise and subject to adjustment in accordance with paragraph B and D of Section 6, within three (3) months after the expiration of the calendar year. A rate of ten percent (10%) per annum, or fraction thereof beyond thirty (30) days after payment due date and following ten (10) days after receipt by Grantee of written notice of such delinquency, may be charged as additional consideration
5 31
G) Any neglect, omission or refusal by the Grantee to make any such payment as and when due, or to file any related statement, certification or verification as to the required payment reasonably required by the City, at the times or in the manner required herein and in the Pipeline Franchise Ordinance, shall be grounds for the declaration of a fofeiture of the Franchise and of all rights hereunder after thirty (30) days' notice to cure has expires as provided for in Section 12.

I) In the event of abandonment of facilities with the approval of the City as elsewhere in this Ordinance provided, or in the event of removal of such facilities by the Grantee, the payments otherwise due the City for occupancy of the roads or highways by such facilities shall be prorated for the calendar year in which such removal or abandonment occurs as of the end of the calendar month in which removed or abandoned.

SECTION 8: Additional Conditions. The Grantee of this Franchise shall:

A) Construct, install, test, and maintain all Pipelines and Appurtenances in accordance with and in conformity with all City, County, State and Federal Ordinances, statutes, rules, regulations and other laws (whether now existing or hereafter adopted) applicable to the installation, location, use, maintenance and/or removal of the Pipelines and Appurtenances;
B) Pay to the City, on demand, the cost of all repairs to public property made necessary by any operations of the Grantee under this Franchise, including restoring the Street to its original condition upon the removal of all or any portion of the Pipeline and Appurtenances, or upon the termination or non-renewal of the Franchise;
C) Indemnify and hold harmless the City, its officers and employees from any and all liability for damages proximately resulting from the Grantee's acts or omissions under this Franchise; and be liable to the City for all damages proximately 6 32
resulting from the failure of said Grantee well and faithfully to observe and perform each and every provision of this Franchise; D) Install, remove or relocate, at the request of the City and without expense to the City, any Pipelines and Appurtenances installed, used and maintained under this Franchise if and when made necessary by any lawful change of grade, alignment or width of the affected Street;
E) Construct, install, use, operate, repair or modify any pipeline for the transportation of flammable or combustible liquids, in a manner prescribed by the California State Fire Marshall, and/or Chief of Los Angeles Fire Department in accordance with Chapter 13.14 Division 4, of the Title 13 of the South Gate Municipal Code; and
F) Submit certified test results for the pipeline subject to the provision of the Pipeline Safety Act of 1981, California Government Code Section 51010, et seq. The testing shall be conducted as required by the California State Fire Marshal, and certified test results shall be requested by the City from the Fire Marshal. In the event the State Fire Marshal shall fail to provide such certified test results to the City, grantee shall provide such test results to the City upon request; and G) Submit a written petition of franchise renewal to the City at least ninety (90) days prior to the expiration date.
i
SECTION 9: Permits. The Grantee shall obtain an excavation permit, and pay the applicable fee therefore, prior to commencing any excavation in the right-of-way.

The Grantee may obtain an excavation permit by filing a set of excavation plans with the City Engineer, which plans shall be subject to the City Engineer's review and approval.

The excavation plans shall show the location of the proposed excavation, as well as the location of all known existing pipes, sewers, conduits, improvements and other facilities in or under any Street or public property in which the franchise property is located with an adequate description of the proposed work, including an estimate of the duration of the interference with any street traffic. The issuance of any excavation permit for the construction or installation of a pipeline for the transmission of flammable or combustible liquids, gases or hazardous materials, shall be as prescribed by the fire Chief of the Los Angeles County Fire Department in accordance with Chapter 13.14, Division '1, of Title 13 of the South Gate Municipal Code.

B) All work shall be subject to inspection by the City Engineer. All street coverings or openings, valves, vaults and manholes shall at all times be kept flush with the surface of the streets; provided, however, that vents for underground vaults and manholes may, subject to the prior approval of the City Engineer, extend above the surface of the streets when such vents are located in parkways, between the 7 33
curb and the property line. The Grantee shall provide adequate traffic safety barriers, signs, devices and traffic safety warning equipment in accordance with City ordinances, rules or regulations, and shall comply with such additional safety measures as the City Engineer may direct.

SECTION 10: Emerqency Equipment.

A) The Grantee shall develop and maintain an emergency response plan, satisfactory to the City Engineer, which covers all franchise operations within the City. In general, an emergency response plan meeting the requirements of Federal and State law and containing the information contained in this section shall be acceptable. The emergency response plan shall include a 24-hour notification program and proof of arrangements capable of providing emergency response services, including but not limited to traffic control, street excavation, pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem, and such other information as the City Engineer shall reasonably require. Repairs to a public street, alley or parkway shall be completed within seventy-two (72) hours unless otherwise authorized by the City Engineer. The City Engineer shall be notified ten (10) days in advance of any proposed change in such arrangements. Grantee's emergency response plan shall be submitted to the City Engineer within thirty (30) days after the effective date of the Franchise.

B) Whenever any Pipeline or Appurtenance breaks or leaks so as to cause the release of oil or products thereof into the public right-of-way, Grantee, and any other person using or controlling the Pipeline or Appurtenance, shall immediately notify the City's Police Department and Public Works Department and shall implement precautionary safety measures including traffic control, system shutdown, valve closures, and public notification. In the event of an emergency which threatens life, health, safety or property, and where it is not possible to obtain an excavation permit prior to commencement of the work, the Grantee may commence such work; provided, however, that within seventy-two (72) hours thereafter the Grantee shall make application to the City Engineer for an excavation permit in accordance with the procedures specified herein. The City Engineer may impose conditions upon the issuance of the excavation permit, and all work shall be subject to inspection. Adequate traffic safety barriers shall be maintained at all times, and any damaged portion of the Street shall be restored to its original condition.

C) If any portion of any Street is damaged by reason of defects in any of the Pipes and Appurtenances maintained or constructed by Grantee, or by reason of any other cause attributable to or arising from the operation of any Pipes and Appurtenances constructed or maintained by Grantee, the Grantee shall, at its sole cost and expense, immediately repair all damage and restore the Street to the condition existing before such damage occurred. All such work shall be done under the direction of the City Engineer, and to the reasonable satisfaction of the City Engineer. Grantee shall repair such damage and restore the Street within three (3) working days after written demand therefore by the City Engineer, or 8 34
i
such other period as the City Engineer may authorize when required for the protection of the public health and safety.

D) If the Grantee, after reasonable notice, fails or refuses to pave, surface, grade, repave, resurface or regrade as required by the provisions of this Franchise, the City may cause the work to be done and shall keep an itemized account of al( costs, including reasonable administrative overhead expenses, Grantee shall pay such costs to City within thirty (30) days after presentation to Grantee of an itemized account of such costs.

SECTION 11: Records.
i
A) Grantee acknowledges that the City's records may not be complete and that Pipes and Appurtenances previously unknown to City are frequently discovered.

Consequently, by granting this Franchise or by approving any excavation permit requested by Grantee, the City does not warrant the accuracy of information supplied to the Grantee by the City regarding the location or existence of other facilities. Nothing herein shall be deemed to make the City, or any officer, agent or employee of the City, responsible or liable to the Grantee or to any other person by virtue of the City's approval of excavation permits and/or plans, regardless of whether any information is supplied by the City to the Grantee pertaining to the location of existing pipes, facilities or other improvements on, in or under any Street or other public property.

C) At all reasonable times, the Grantee shall permit the City or its duly authorized representative, to examine all Pipelines and Appurtenances and to examine and transcribe any and all books, accounts, papers, maps, and other records kept or maintained by the Grantee or under its control and associated with the Pipelines and Appurtenances and/or the financial condition of the Grantee with respect thereto.

SECTION 12: Failure to Comply.
a
A) If the Grantee shall fail, neglect or refuse to comply with any of the provisions or conditions of this Franchise, and shall not, within thirty (30) days after written demand for compliance, begin the work of compliance, or after commencing such compliance shall fail to prosecute the same with due diligence to completion, then the City, acting by and through its legislative body, may declare this Franchise forfeited.

A) 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 Grantee shall, within thirty (30) days thereafter, make written application to the Director of Public Works for authority either to: (1) abandon all or a portion of such fagilities in place; or (2) remove all or a portion of such facilities. Such application shall describe the facilities desired to be abandoned, their location with reference to City highways, and shall describe with reasonable accuracy the physical condition of such facilities. The Director of Public Works shall determine whether any abandonment or removal which is thereby proposed may be effected without detriment to the public interest and under what conditions such proposed abandonment or removal may be effected. He or she shall then notify the Grantee of his or her determinations.

B) Within thirty (30) days after receipt of such notice, the Grantee shall apply for a permit from the Public Works Department to abandon or remove the facility.

C) The Grantee shall, within ninety (90) days after obtaining such permit, commence and diligently prosecute to completion the work authorized by the permit.

SECTION 14: Effective Date. This Ordinance shall take effect and be in force thirty (30) days after its adoption and upon written acceptance thereof is filed by the Grantee with the City Clerk of the City.
[Remainder of page left blank intentionally]
10 36
gi
SECTION 15: 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 16: Posting of Ordinance. The City Clerk shall certify to the adoption of this Ordinance and shall cause same to be published as required by law.

PASSED, APPROVED AND ADOPTED this 25'h day of November 2014.

CITY OF SOUTH GATE:

ATTEST:

Carmen Avalos, City Cler)k
(SEAL)
AP OVED A O FORM:

R I F. Salinas, City Attorney
11 37

ORDINANCE CERTIFICATION PAGE
i

ST ATE OF CALIFOMIA

COUNTY OF LOS ANGELES ) SS

CITY OF SOUTH GATE
I, Carmen Avalos, City Clerk ofthe City of South Gate, California, hereby certify that the whole number of Members of the City Council of said City is five; that Ordinance No. 2321 was adopted by the City Council at their Re@ilar Meeting held on November 25, 2014, by the following vote:

Ayes: Council Members: Gonzalez, Davila and Hurtado Noes: Council Members: None

Absent: Council Members: Morales and De Witt
Abstain: Council Members: None
Witness my hand and the seal of said City on November 1, 2014.

Carmen Avalos, City Clerk
City of South Gate, Califoinia
27 38
Attachment D
Post-Inspection Written Preliminary Findings
This document is for informational purposes only. It does not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.

Date of Transmittal: 04/22/2024
Dates of Inspection: 3/25-28/2024
Operator: PLAINS PIPELINE, L.P.

Operator m: 300 (primary)
Inspection Systems: N/A
Assets (Unit IDs) with results in this report: IUs 0830 C 0830D System Type: HL
Inspection Name: Plain STD Annual Pipeline IUs 0830 C 0830D Lead Inspector: Bita Emami
Operator Representative: Bill Senner, Sr. Health, Safety & Environmental Specialist, Plains Unsatisfactory Results
No Preliminary Findings.

Concerns
No Preliminary Concerns.
7his document is for informational purposes only. It dos not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline Plain STD Annual Pipeline IUs 0830 C
0830D Page 1 of 2
39 safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.

Plain STD Annual Pipeline ILIs 0830 C
0830D Page 2 of 2
30 40

PACIFIC PIPELINE SYSTEM LLC
March 11, 2024

VIA EMAIL
Mr. Ashford Ball, MPA
City of South Gate
Department of Public Works
8650 California Avenue
South Gate, CA 90280
Dear Mr. Ball,
Pacific Pipeline System, LLC currently has a 10-year pipeline Franchise Ordinance #232 l with the City of South Gate for Line 063. This Franchise Ordinance expires on April 8, 2024. Please accept this written notice that Pacific Pipeline System LLC would like to proceed with renewing this Franchise Ordinance with the City of South Gate.

Pacific Pipeline System LLC's Right of Way consultant for this project is Paragon Partners Consultants, Inc. ("Paragon"). Paragon will provide the City of South Gate with any additional information you or your staff may require processing this renewal. If you have any questions or to request information, please contact Melissa Devitt at Paragon. Ms. Devitt can be reached by telephone at (714) 471-9497 or by email at [email protected] Thank you for your time and consideration.

Sincerely,
Senior Director
Land & Contracts
333 CLAY STREET, SUITE 1600, HOUSTON, TEXAS 77002 41 Attachment E

LOCATION MAP
1, l';l l!
I ' 11,.111
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i

PACIFIC PIPELINE SYSTEM LLC,
,!3>42
Office of the
SOuth Gate (Ay Clerk
Item No. 2
MAY22 2024
FILED
2,' 3 S-(=="i
City of South Gate

CITY COUNCIL
AGENJDA IBT[LL
Department Director:

For the R ar Meeting of: May 28, 2024
ent: Public Works
o Cervantes Rob Houston
SUBJECT: RESOLUTION ORDERING THE LEVY OF THE FISCAL YEAR 2024/25

ANNUAL ASSESSMENT FOR THE STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT NO. I
PURPOSE: To adopt a Resolution ordering the levy of the Fiscal Year 2024/25 Annual Assessment within the Street Lighting and Landscaping Maintenance District No. 1.

RECOMMENDED ACTION: Following the conclusion of the public hearing, the City Council will consider adopting a Resolution ordering the levy of the Fiscal Year 2024/25 Annual Assessment for the Street Lighting and Landscaping Maintenance District No. 1.

FISCAL IMPACT: The recommended assessment levy is proposed to remain the same. It will generate $1,994,154 for the FY 2024/25. The assessment levy has not been changed since 1993.

The costs associated with the Street Lighting and Landscaping Maintenance District are approximately $3,041,636. The deficit of $1,047,482 is funded with Measure R, Gas Tax and Proposition A.

NOTICING PROCEDURE: A Public Hearing Notice was duly published in the Los Angeles Wave, a local newspaper of general circulation, on May 9, 2024.

ANALYSIS: The assessment amount is currently set at $2.38 per adjusted front footage. The total in revenue produced from this assessment has remained constant over the years while the total cost of maintaining the District has increased, leaving an operating shortfall. The revenue for FY2024/25 is estimated to be $1,994,154, while the cost of maintaining the District is estimated to be $3,041,636. There is currently an operating budget deficit of $1,047,482. Staff is not recommending increasing the assessment levy at this time. Any adjustments or creation of a new district/overly would be subject to a Proposition 218 ballot process of impacted property owners.

The City Council has been made aware of the deficit between revenue and expenditure. The direction is to return at a later date with an analysis to review what is necessary to eliminate the deficit.
1 43
On April 26, 2016, the City Council authorized a financial analysis to identify alternatives to minimize the funding deficit which would be needed if the City Council wished to conduct Proposition 218 Ballot proceedings for new or increased assessments. A consultant conducted the analysis to determine the feasibility of increasing the assessment within the existing District to cover the revenue shortfall. Feasible altematives recommended included creating new districts to supplement the revenue from the subject District. New districts are created via separate and independent proceedings. As such, as a part of these proceedings, staff is not planning to propose an increase to the assessment rates.

BACKGROUND: The District was formed in 1981 and operates pursuant to the Landscaping and Lighting Act of 1972 (California Streets and Highways Code). The District provides the authority to levy an assessment on parcels of land which have been identified as receiving a direct "special benefit" from a public improvement. The District encompasses the entire City; therefore, the assessment is levied on all parcels citywide.

District revenue can only be utilized to meet the original intent of the District: maintain and operate landscaping and lighting systems citywide and within City streets. Qualifying expenditures include operations and maintenance of: (a) landscaping (trees, shrubs, grass, other ornamental vegetation, irrigation systems and drainage systems) and (b) lighting systems (illuminated signs, decorative light fixtures, street furniture, streetlights and traffic signals), inclusive of labor and materials.

Annually, the District's funds are levied and collected by the Los Angeles County Assessor's Office (LA County) on behalf of the City in the property tax roll. Several actions from the City Council are required to provide LA County with the authority to levy and collect the assessments, according to LA County requirements and applicable state law. The actions before the City Council are a part of the proceedings necessary to provide such authority.

On February 27, 2024, the City Council adopted Resolution No. 2024-09-CC initiating the proceedings for FY 2024/25 and directing the Engineers Report to be prepared. On April 22, 2024, the City Council adopted Resolution No. 2024-27-CC approving the Engineer's Report and Resolution No. 2024-28-CC declaring the City's intention to levy and collect assessments and setting a public hearing on May 28, 2024. The final steps in the proceedings can be achieved by conducting a public hearing and adopting the proposed Resolution ordering the levy of the assessments. The schedule for the assessment proceedings has been/is as follows:

Date Council Action
2/27/2024 City Council adopted Resolution No. 2024-09-CC initiating proceedings to levy assessments and to order the preparation of the Engineer's Report. 4/23/2024 City Council adopted the following Resolutions: -

1. Resolution No. 2024-27-CC approving the Engineer's Report.

2. Resolution No. 2024-28-CC declaring the City's intention to levy and collect assessments and setting a public hearing on May 28, 2024. 5/28/2024 Conduct a public hearing and adopt a Resolution confirming the area boundary and ordering the levy of annual assessments. 8/07/2024 Deadline for filing assessment roll.
2 44
An Assessment District creates an authority to levy a fee to a specific geographic area or parcels of land which have been identified as receiving a direct "special benefit" from a public improvement. The District enables the City to provide enhanced levels of landscape maintenance and street lighting along City streets. These landscape and lighting improvements are considered to be of special benefit to the properties within the City boundaries. The funding for the maintenance and services is provided through annual assessments paid by the benefiting property owners within the District. In order for the City to continue to levy and collect assessments within the District for FY2024/25, an Annual Report must be prepared, and the City Council must conduct a public hearing as required by the Landscaping and Lighting Act of 1972.

ATT ACHMENTS: A.

Proposed Resolution
Notice of Public Hearing
Resolution No. 2024-09-CC
Resolution No. 2024-27-CC
Resolution No. 2024-28-CC
KT:lc
3 45
Attachment A
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH

GATE, CALIFORNIA, ORDERING THE LEVY OF THE FISCAL YEAR 2024/25 ANNUAL ASSESSMENT FOR THE STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT NO. I
WHEREAS, the City Council previously formed a special maintenance district pursuant to the terms of the "Landscaping and Lighting Act of 1972," being Division 15, Part 2 of the Streets and Highways Code of the State of California, such special maintenance district known and designated as Street Lighting and Landscape Maintenance District No. 1 (hereina'fter referred to as the "Maintenance District");
WHEREAS, on February 27, 2024, the City Council adopted Resolution No. 2023-09-CC initiating proceedings for the annual levy of the Fiscal Year 2024/2025 assessments and ordering preparation of an Engineer's Report for the District; WHEREAS, on April 23, 2024, the City Council adopted Resolution No. 2023-27-CC preliminarily approving the Engineer's Report dated April 22, 2024 ("Engineer's Report") which is necessary to set the assessments for Fiscal Year 2024/25 within the Maintenance District; and WHEREAS, on April 23, 2024, the City Council adopted Resolution No. 2023-28-CC to declare its intention to levy and collect the assessments for Fiscal Year 2024/25 in the Maintenance District, as well as to set a public hearing for May 28, 2024 as a part of the proceedings, and did in fact conduct a public hearing on May 28, 2024;
WHEREAS, based upon the Engineer's Report, the following is hereby determined:

1. No new improvements and no substantial changes to existing improvements or zones are proposed for the next fiscal year;

2. Facilities to be maintained are those lighting and landscaping maintenance activities that take place within existing public streets and sidewalk rights-of-ways of the City,,

3. The assessments shall remain the same as those levied in FY 2024/25; and WHEREAS, at this time all notice andpublic hearing requirements have beenmetrelatingto the subject proceedings, and the City Council is now satisfied with the assessment and all other matters as contained in the Engineer's Report;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council does hereby declare that the above recitals are all true and correct and incorporated herein by reference.
4403991.2-L235.53 1 46
SECTION 2. The City Council does hereby declare that all protests and objections of every kind and nature be, and the same hereby are, overruled and denied.

SECTION3. TheCityCouncildoesherebyapprovetheEngineer'sReportandordersittobefiled in the Office of the City Clerk as a permanent record which is to remain open for public inspection.

SECTION4. TheCityCouncildoesherebyconfirmthatthediagramreferencedatAppendixAto the Engineer's Report, and the assessment roll referenced at Appendix B to the Engineer's Report, are as set forth in the Engineer's Report.

SECTION 5. The City Council does hereby acknowledge that the adoption of this Resolution constitutes the Fiscal Year 2024/25 annual assessment for the Maintenance District.

SECTION 6. The City Council does hereby order that the assessments authorized by this Resolution be used to fund the City's expenditures for the operation, maintenance and servicing of the landscaping, including trees, shrubs, grass and other ornamental vegetation and appurtenant facilities, including irrigation systems and drainage devices, and public lighting facilities, including street lighting improvements, traffic signals and appurtenant facilities, located in public places withinthe boundaries of the City of South Gate, and for other incidental expenses authorized by the Act.

SECTION7. TheCityClerkshallcerti'fytotheadoptionofthisResolutionwhichshallbeeffective upon its adoption.

PASSED, APPROVED and ADOPTED this 28'h day of May 2024.

CITY OF SOUTH GATE:

By:

ATTEST: Gil Hurtado, Mayor
By:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS FORM:

F. Salinas, City Attorney
4403991.2-L235.53 2 47
Attachment B

SOUTH GATE PRESS
This space Toi (111ng stamp only
3731 WILSHIRE BLVD 8TE B40, LOS ANGELES, CA 90015
Telephone (323) 556-5720 / Fax (213) 834-0584
Yodit Glaze, City Clerk

CITY OF SOUTH GATE /CITY CLERK
8650 CALIFORNIA AVE
SOUTH GATE, CA - 90280

PROOF OF PUBLICATION
(2015.5 c.c.p.)
Stats of Californla
County of LOS ANGELES
Notice TYP8: GF'N - GOVT PUBLIC NOTICE
Ad Descrlptlon:

Resolution No. 2024-28-CC
am a (,ltlZen Of the united States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the SOUTH GATE PRESS, a newspaper publlshed in the English larlg5BgB jll the aily of SOUTH GATE, county of LOS ANGELES, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the 8uperior Court of the County of LOS ANGELES, State of California, under date 04/1 9/'1929, Case No. 2734"l5. That the notice, of whitji the annexed is a printsd copy, has been published In each regular and entire issue of said newspaper and not In any supplement thereafon the following dates, to-wit:
05/02/2024
Executed on: 05/03/2024
At Los Angelas, Callfornla
I cemry (or declare) under penalty or pedury that the foregoing Is true and correct.

Illllllllllllllllllllllllllllllllllllllllllili'ii:iiii:1111111111111 Sout?'Gac:oAAhysCl0i'k
MAY -6 2a24
FfL50
PRE#: 3809259
2024
ixvsuant
"Landscaplng and Llghllng Aal di 1972,' belng
Mslon 15, Payk 2 of Ihe Sfteeta end Hl(lhways
Code di the Stale of Cellfomla, such spsclal
melntenetwt dlsYcl known and deslanaled as
Stisremecli LNlgohlln,g and Lands7eafpee,,edMallOnlean:nThcee gries(inacttallon o{ ati EnglneeThs Report for the
WHEREiA8, at tels 11me the Clly Coundl desltes
:n'%al"l:"ofpa'os::m!nais'forp't'hF:e: 'lls'E
year to llnance Ihe costs end expenses
nlmeooerosVseamiyento. rnasyaldloMt BtjinetenrneanlOnete,na8ni:[email protected] WHEREA9 the Clly Councll has approved the
annual levy.

NOW, TH)R)POR. THE CITY COUNCIL OF
THE CITY OF SOUTH GAT!, CALIFORNIA,
DO!8 HEREBY RE80LVE A8 FOLLOW!I:

Clly hereby
deolare Iliat the publlc Intereat and convenlence
It Is the Inlenllan
:mhop':soya:er":ssdaw:clt'sd at!'e':w"'!mbal'l':"lebfo'ov:
refetencsd Malnleiiance Dlslilm. and ssld
Improvements are generally desiirltx.d esfollows
The opttrallon. malntenance snd senAdng of the
Tollomng Improvements, all wlfhln exlsllng publlc
streets or publlc sldewalks oT khe Clly:
'1. Landsceplng, omamental vaOelailon,
Includlng trees, shnibs. Imgallon systams and
tkalnage Tadlllles, logglhei wllh
eppuilenanoes.

2. FU5110 llghUng, 81Teel 11ghllng Improvemenis
and lraftlc slgnals, logelhet with
soouilsnances.

W!aFS:olj" vffi%t;aS'::':'v:4dn?::"ea'aoPyspae'W;
benellt lo the ptopertles wllhln Ihe boundeiles of
said Motnterianz Dlshicl. which Melntenaiice
Improvemenls, and for patllculars, is{etarica Is
made to the boundary map as prevlously
epprCNed b/ this JlslallVa body, a COO'l oTwhich
Is on file In ffie Onice o{ Ihe Clty C:leik and open
for publk. ktspecllon, and Is damgnaletl by Ihe
name oT lhls Malntenance Dlsklct.

S(: €iTION 4. The ally €ioundl does hereby dlred
lhal the annual Englneefs Repo+l, as
piellmlnailly appmved by lhe Clty C.oundl, shell
(pursuant to e separale Resolullon adopted by
the onfllewllh
the g::v € 'rg,:)r!soWpl:'L'iJae"art's eccesslble
far publk. Inspecllan. ReTenence ts made to
RESOLUTION N0. 2024-2!1-(:(:

CITY OF 8011TH GATE
LO8 ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE (:ITY CClUNalL OF TH!
(,ITY OF SOUTH GATE, CALIFORNIA,
DE(:LARING THE C1TY'8 INTENTION TO LEVY
AND COLLECT A88E8SMENT8 UNDER THE
FISCAL YEAR 20242028 ANNUAL LEVY AND
COLLECTION OF AE+SE8!1MENT8 WITHIN
THE STREET LIGHTING AND LAND8aAPE
M/UNTENANC € DISTRICT N0. 1, AND
8 € TTING A PUBLIC HEARING FOR MAY 28,
Emall
48 Reporl for a full tind delalled description of the
olmi pilohveemMeanllns(etnoabnecemaDTslladl@nled,nlhde abnoyun,daOinleess Ihereln, and the pmposed assessments upon
asgessable lols and paicels oT lend wllhln Ihe
Malnlenance Dls(rk.i.
8ECTION 5. The aty Councll doea hereby affirm
that all costs and expensas of Iha malnlenence
wom and Inddenlal expenses have bsen
apporllonsd and dlslrlbuled to the bebneen:11nnipsparcels In ticcamance with Ihe speclal recelved 1mm the proposed work. No
niilloe Ihal a publlc liearln( Is hereby scheduled
In the regular meellng place oT lhle Is(11slallve
body, belng the Councll Chenibers oT City Hall,
Al that 11me, the leglslallve body wlll consldet and
finally delermlne whether to levy lhti proposed
annual assessment, and to hear all protests
reesliamllna!lootseithdeprcoopsoiseadn !to:xepeednlsnegss, Oolr ilhhee proposed malnlenenm, or lhe proposed annual
piolest. A wlllen protest must stale all grounds oT properly owned by such person.

My Inmrested person may mall s protest to the
followlng addreas:

Yodlt Glaze. a!y Clerk
Clly of South Gale
85flO Calilomla Menue
8oulh Gate. CA 90280
8E(:TION 7. The Clly Cleik Is hereby aiithodzed
In the Los XVigeles Wave newspaper, a
newspaper o( Haneral diculatlon wlthln the Clty of
South Gate sald oubllcaUan to be compleled not
less than ten (10) days pilot to Ihe dale set for
the publk. hearlng.
8t'.CTION B. For any and all InTormallon rela(fng
to Ihase pmcesdlngs, Inaludlng InTamrsllon
relatlng to pralesl pmcedute, your altenllon Is
dlrected lo the person designated below:

ATILITO Carvanles. P.E.

Agslslanl Cilly ManagsrlDlreclor oT Publlii Woes
aly oT Saulh Gate
8650 CallTomla Avanue
South Gate. CA 90280
;E,'po/rt4ataAe&%"'and A[)OPTE[) thls
z:TS&o5A%a'TEi
ATTEST:
atYodlt Glaze, Clty CleA
WRAVED AEI TO FORM;
s/Raul F. 8allnas. Clly Allomey
PRE-3Ba92!i9#
SOUTH (i ATE PRE8S
49 CITY OF SOUTH GATE

NOTICE OF PUBLIC HEARIING
NOTICE IS HEREBY GIVEN that the City Council of South Gate, Californiawill conduct a public hearing for the purpose of adopting a Resolution confirming the diagram and assessment and ordering the levy for Fiscal Year 2024-2025 Street Lighting and Landscape Maintenance District No. 1. A copy of the Engineer's Repoit may be requested at the City Clerk's office during normal business hours. The Public Hearing is scheduled for:

DATE:

TIME:

LOCATION:

May 28, 2024
6:30 p.m.

COUNCIL CHAMBERS

SOUTH GATE CITY HALL
8650 CALIFORNIA AVENUF,
SOUTH GATE, CA 90280
ThePublicHearingmeetingwillbeconductedinpersonortbroughvideoconferencing. Any comments may be made in person at the hearing or in writing to the City Clerk or the City Council prior to the hearing.

NOTICE IS HEREBY GIVEN that any and all persons interested in the matter hereinabove set forth are privileged to attend said hearing and then and there testify or present evidence upon any matter relating thereto.

THIS NOTICE IS GIVEN by the order of the City Clerk of said City and is dated this May 6, 2024.

Yodit Glaze, City Clerk
Publication date: Thursday, May 9, 2024
Account No.: 251-714-25-6302
50 Attachment C
RESOLUTION N0. 2024-09-CC
C:ITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OFSOUTHGATE, CALIFORNIA, INITIATING THE ANNUAL PROCF,EDINGS FOR 'Hl, LEVY OF THE FISCAL YH,AR 2024/25 ASSESSMENTS AND ORDERING

THE PREPARATION OF AN ENGINEER'S REPORT FOR THE STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT N0. 1 WHEREAS, in 1981,the City Council formed a special maintenance distt'ctpursuantto the terms of the "Landscaping and Lighting Act of 1972," Division 15, Part 2 of the Streets and Higliways Code of the State of California, such special maintenance districtktiown anddesignated as Maintenance District No, I ("District");
WHEREAS, the District provides the authority to levy an assessment on parcels of land which have beei'i identified as receiving a direct "special benefit" firom a public improvement; WHEREAS, annually, the District's funds are levied and collected by the Los Angeles County Assessor's Office, on behalf of the City, in tlie property tax roll; and WHEREAS, at this time the City Council desires to initiate proceedings to provide for tlie annual levy of assessments for Fiscal Year 2024/25 to finance the annual costs of maintenance and/or servicing of improvements within the District.

NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RF,SOLVE AS FOLLOWS:

SECTION 1. The City Council does hereby declare that tlie recitals set forth above are true and correct and are incorporated herein by reference.

SECTION 2. The City Council does hereby declare its intention, as required by tlie public interest, to initiate proceedings for the annual levy and collection of special assessments for the payment of amual maintenance and/or servicing costs within the District for new improvements or any substaiitial changes in existing improvements or zones as proposed as a part of these proceedings, SECTION3. TheCityCouncildoesherebydelegatetheAssistantCityManager/DirectorofPublic Works to conduct the annual maintenance and/or servicing of the itnprovements and is directed to make and file a report essentially containing the following:
a, Plans aiid specifications describing the general nature, location, and extent of the existing improvements to be maintained and/or serviced; b, Anestimateofthecostofthemaintenanceand/orservicingoftheimprovementsfor the District for the referenced fiscal year;

Page 1 of 2 ends

51 C. A diagrain of the District showing the lots and/or parcels to be assessed; and rl
d, An assessment that covers the estimated cost of the maintenance and/or servicing, assessingthe net amountupon all assessable lots and/orparceJs withintheDislrict in proportionto the special benefits received by eaclilot or parcel. Assessmentsmay or may not be increased from those levied for the prior or c'urrent fiscal year, Upon completionofthe preparation ofthe assessmentEngineer's Repoit, the original shall be filed withthe City Clerk, who shall thensubmitthe sameto the City Council forits immediatereviewand consideration.

SECTION 4, The City Council does hereby direct that the above assessinent Engineer's Report include all costs and expenses of such maintenance andlor servicing relating to the fiscal year cornmencing July 1, 2024 and ending June 30, 2025.

SECTION5. TheCityClerkshallcertifytotheadoptionofthisResolutionwhichshallbeeffective upon its adoption.

PASSE,D, APPROVED and ADOPTED this 27k" day of February 2024.

CITY OF SOUTH GATE:

B:S7:

Gil Hurtado, Mayor
ATTEST:

B)/:

Yodit City Clerk
APPROVED AS TO FORM:

Raul F. Salinas, City Attorney
L J

Page 2 of 2 ends

52 STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES )

CITY OF SOUTH GATE )
SS
I, Yodit Glaze, City Clerk of the City of South Gate, California, hereby certify that the whole number of Members of the City Coincil of said City is five; that Resolution No. 2024-09-CC was adopted by the City Council at theit Regular Meeting held on February 27, 2024, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Recused:

Council Members: Avalos, Barron, Rios, and Hurtado Council Members: None
Council Members: None
Council Members: None
Council Member: Davila
Witness my hand and the seal of said City on March 5, 2024.

Yodit City Clerk
City of S Gate, California
53 Attachment D
RESOLU'nON N0. 2024-27-CC

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, PRELIMINARILY APPROVnNG THE

ENGINEER'S REPORTREQUIRED FORTHE PROCEEDINGS OF
THE FISCAL YH,AR 2023/24 ANNUAL LEVY OF ASSESSMENTS WITHm THE STREET LIGHTING AND LANDSCAPE
MAINTENANCE DISTRICT NO. l
WHEREAS, the City Council of the City of South Gate (City Council), pursuant to the terms of the "Landscaping and Lighting Act of 1972," being Division 15, Pait 2 of the Streets aiid Highways Code of the State of California, adopted Resolution No. 2023-10-CC, initiating proceedings for the annual levy of assessments within a special maintenance district, said special maintenance districtknown and designated as Street Lighting andLandscape Maintenance District No, 1 (hereinafter referred to as the "Maintenance District"); WHEREAS, the City Council was presented with an Engineer's Report, dated April 10, 2024, attached hereto as Exliibit "A" (hereinafter referred to as ttie "Repoit"), as required by said Divisionl5 ofthe Califoiia Streets and Highways Code and as previously directed by Resolution No, 2023-10-CC approved on February 28, 2023;
WHEREAS, the City Council examined and reviewed the Report as presented and is satisfied with each and all of the items and documents as set forth therein, and is satisfied that the assessments, on a preliminary basis, have been spread in accordance with the special benefits received from the improvements to be maintained, as set forth in said Report.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTIONI. TheCityCouncildoesherebydeclarethattheaboverecitalsaretrueandcorrectand incorporated l"ierein by reference.

SECTION 2. The City Couricil does hereby acknowledge Repoit as presented consists of the following:

A, Plans and specifications describing the generalnature, location and extentofthe existing improvements to be maintained are on file in the City Engineer's office. No new improvements or any substantial changes in existing improvements are proposedforthe next fiscal year; all improvements to be maintained are in existing public streets or sidewalks of the City;
B. Estimate of cost, including the amount of the annuaI installment for the forthcoming fiscal year;

Page 1 of 2 ends

54 C. Diagran"i of the Maintenance District; aiid rl D. Assessment of the estiinated costs of the improvements, including the amount of individual annual installments for tlie next fiscal year. No assessments on any parcels within the Maintenance District are to be increased from those levied for the last fiscal 'jeF!E,
SECTION 3. The City Council does hereby declare that the Maintenance District and the associated assessments as outlined intheEngineer's Report are incompliance withtheprovisions of the Califorriia Constitution Article XIIID.

SF,CTION4. TheCityCouncildoesherebyapprovetheEngineer"sReportonapreliminarybasis, and orders it to be filed iii the Office of the City Clerk as a permanent record and to remain accessibIe to public inspection.

SECTION5. TheCityClerkshallcertifytotheadoptionofthisResolutionwhicb'shallbeeffective uponits adoption, andtheminutes ofthis meeting shall so reflectthe presentation oftheAssessment Engineer's Repoit.

PASSF,D, APPROVED aiid ADOPTED this 23" day of April 2024.

CITY OF SOUTH GATE:

Gil Hurtado, Mayor
ATTEST:

B:!:

Yodit City Clerk
APPROVED AS TO FORM:

B7:

F. Salinas, City Attorney
L. J
Page2of2
55 I S u I h

EXHIBIT A
City of South Gate
Maintenance District No. 1
2024/2025 ENGINEER'SANNUAL LEVY REPORT
Intent Meeting: April 23, 2024
Public Hearing: May 28, 2024
56 ENGINEER'S REPORT AFFIDAVIT
Maintenance District No. 1
City of South Gate
Los Angeles County, State of California
This Report describes the District and services therein including the improvements, budgets, parcels and assessments to be levied for Fiscal Year 2024/2025, as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Los Angeles County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council.

Dated this day of 2024
Willdan Financial Services
Assessment Engineer
On Behalf of the City of South Gate
BY:

Chonney Gano
Project Manager, District Administration Services
By:

Tyrone Peter
P.E # C 81888
57 TABLE OF CONTENTS

OVERVIEW

INTRODUCTION

COMPLIANCE WITH CURRENT LEGISLATION
IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
//, DESCRIPTION OF THE DISTRICT
A. BOUNDARIES OF THE DISTRICT
B. DESCRIPTION OF THE DISTRICT IMPROVEMENTS
///, METHOD OF APPORTIONMENT
A. GENERAL
B. BENEFIT ANALYSIS
C. ASSESSMENT METHODOLOGY
D. MAXIMUM ASSESSMENT
IV. DISTRICTBUDGET
A. DESCRIPTION OF BUDGET ITEMS
B. DISTRICT BUDGET FISCAL YEAR 2024/2025

APPENDIX A - DISTRICT ASSESSMENT DIAGRAM
3 3
3 4
4 5
6 8
8 8
II
13 APPENDIX B - 2024/2025 ASSESSMENT ROLL
58 dWILLDAN

OVERVIEW
A. INTRODUCTION
The City of South Gate (the "City") annually levies and collects special assessments in order to maintain the improvements within Maintenance District No. 1 (the "District"). On June 22, 1981, the City Council of the City adopted Resolution 3838 which ordered the formation of Maintenance District No.1. The District is levied pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the "1972 Act") and in compliance with California Constitution Article XIIID ("Article XIIID").

This Engineer's Annual Levy Report (the "Report") describes the District, any annexations, or changes to the District including substantial changes to the District improvements, and the proposed assessments for Fiscal Year 2024/2025. The proposed assessments are based on the estimated cost to maintain the improvements that provide special benefits to properties within the District. The costs of improvements and the annual levy include all expenditures, deficits, surpluses, revenues, and reserves.

Each parcel is assessed proportionately for only those improvements provided and for which the parcel receives benefit based on an established method of apportionment.

The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor's Parcel Number by the County of Los Angeles (the "County") Assessor's Office. The County Auditor/Controller uses Assessor's Parcel Numbers and specific Fund Numbers, to identify on the tax roll, properties assessed for special district benefit assessments.

Following consideration of public comments and written protests at a noticed public hearing, and review of the Report, the City Council may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report, and confirmation of the assessments, the Council may order the levy and collection of assessments for Fiscal Year 2024/2025 pursuant to the 1972 Act. In such case, the assessment information will be submitted to the County Auditor/Controller and included on the property tax roll for each benefiting parcel for Fiscal Year 2024/2025.

B. COMPLIANCE WITH CURRENT LEGISLATION
Pursuant to the 1972 Act, the City Council annually conducts a public hearing to accept public comments and testimony, and to approve the annual assessments to be levied on the County tax roll for the Fiscal Year. All assessments contained in this Report and to be approved by the City Council have been prepared in accordance with the 1972 Act and are in compliance with the provisions of Article XIIID of the constitution of the State of California ("Proposition 21 8").

The City has reviewed the provisions of Article XIIID and has made the following Findings and determinations:

Pursuant to Article XlllDi Section 5, certain existing assessments are exempt from the substantive and procedural requirements of Article XlllDi Section 4 and property owner balloting for the assessments is not required until such time that the assessments are City of South Gate Maintenance District No. 1 Page 12024/2025 59 dwiuoxx
increased. Specifically, the improvements and the annual assessment for maintaining the District improvements were part of the original conditions of development and approved by the original property owner (the "Developer"). As such, pursuant to Article XlllDi Section 5, the existing assessments were approved by all the property owners at the time the assessment was created (originally imposed pursuant to a 1 00% landowner petition). Therefore, the pre-existing assessment amounts (Assessment Rates including the Annual Maximum Assessment Cap Formula so approved) are identified as exempt from the procedural requirements of Article XlllDi Section 4.

The provisions of Article XIIID do not alter the non-conflicting provisions of the 1972 Act.

As such, the method of apportionment described in this Report utilizes commonly accepted assessment engineering practices consistent with the 1972 Act and the provisions of Article XIIID. The proposed assessments for the current Fiscal Year are less than or equal to the adjusted maximum assessment rate previously approved and adopted for the District. The application of this adjusted maximum assessment rate for the various land uses within the District is described in more detail in Section Ill D of this report. Any proposed assessment that exceeds the adjusted maximum assessment rate is considered an increased assessment. Pursuant to the provisions of Article XIIID, all new or increased assessments (the incremental increase) are subject to both the substantive and procedural requirements of Article XlllDi Section 4.

C. IMPROVEMENTSAUTHORIZEDBYTHE1972ACT
As applicable or may be applicable to this proposed District, the 1972 Act defines improvements to mean one or any combination of the following:
* The installation or planting of landscaping.
* The installation or construction of statuary, fountains, and other ornamental structures and facilities.
* The installation or construction of public lighting facilities. * The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. * The maintenance or servicing, or both, of any of the foregoing. * The acquisition of any existing improvement otherwise authorized pursuant to this section.

Incidental expenses associated with the improvements including, but not limited to:
* The cost of preparation of the Report, including plans, specifications estimates, diagram, and assessment;
* The costs of printing, advertising, and the publishing, posting and mailing of notices;
@ Compensation payable to the County for collection of assessments; * Compensation of any engineer or attorney employed to render services; * Anyotherexpensesincidentaltotheconstruction,installation,ormaintenance and servicing of the improvements;
* AnyexpensesincidentaltotheissuanceofbondsornotespursuanttoSection 22662.5.

City of South Gate Maintenance District No. I Page 2 ty
2024/2025
60 dwiuopx
* Costs associated with any elections held for the approval of a new or increased assessment.

The 1972 Act defines "Maintain" or "Maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:
* Repair, removal, or replacement of all or any part of any improvement. * Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or in3ury.
* The removal of trimmings, rubbish, debris, and other solid waste. * The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
//, DESCRIPTION OF THE DISTRICT
A. BOUNDARIES OF THE DISTRICT
The boundaries of the District are coterminous with the boundaries of the City. The diagram of the District boundaries showing the exterior boundaries of the District, the boundaries of any zones within the District and the lines and dimensions of each lot or parcel of land within the District is on file in the office of the City Engineer and incorporated herein by reference. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles for the Fiscal Year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report.

B. DESCRIPTION OF THE DISTRICT IMPROVEMENTS
The District improvements generally provide for the continued operation of streets and sidewalks within the District, including the maintenance and servicing of the street lighting system, street trees, landscaped street medians, street hardscapes and landscapes, traffic signal system and appurtenant facilities that are located in and along such streets and sidewalks, including but not limited to, personnel, electrical energy, utilities such as water, materials, contracting services, and other items necessary for the satisfactory operation of these facilities.

Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, public lighting facilities or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti.

Servicing means the furnishing of water for the irrigation of the landscaping and the maintenance of any of the public lighting facilities or appurtenant facilities and the furnishing of electric current or energy, gas or other illuminating agent for the public lighting facilities, or for the lighting or operation of landscaping or appurtenant facilities.

City of South Gate Maintenance District No. 1 Page 32024/2025 61 'W"WILLDAN
The improvements funded entirely or partially through the District assessments generally include the following:

Landscaping and Appurtenant Facilities
Landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, street furniture, illuminated signs, special decorative fixtures, sidewalk maintenance and appurtenant facilities, in public street and sidewalk rights-of-way, including parkways, medians and dedicated easements within the boundary of the District.

Public Lighting and Appurtenant Facilities
Poles, fixtures, bulbs, conduits, equipment, including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide safety lighting and traffic signals in public street and sidewalk rights-of-way, including parkways, medians and dedicated easements within the boundary of the District. A diagram showing the size and location of all street lights and traffic signals is on file in the office of the City Engineer and is incorporated herein by reference.

The public lighting system shall be maintained to provide adequate illumination. The Southern California Edison Company shall furnish power for street lights and traffic signals, and it shall be adequate for the intended purpose. The traffic signal system shall be maintained based on the City specifications and current industry standards. Rates for power shall be those authorized by the California Utilities Commission.

The plans and specifications for the existing improvements are on file in the office of the City Engineer and are made part of this report by reference. No new improvements or any substantial changes in existing improvements are proposed for the next Fiscal Year.

Ill METHOD OF APPORTIONMENT
A. GENERAL
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements that include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:

The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which faidy distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.

The formula used for calculating assessments in this District therefore reflects the composition of the parcels, and the improvements and services provided, to fairly apportion the costs based on benefit to each parcel.

In addition, Article XIIID requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Article XIIID provides that only special benefits are assessable and the City must separate the City of South Gate Maintenance District No. 1 Page 4 20 2024/2025
62 'W'WILLDAN
general benefits from the special benefits. A special benefit is a particular and distinct benefit over and above general benefits conferred on the public at large, including real property within the district. The general enhancement of property value does not constitute a special benefit.

B. BENEFIT ANALYSIS
Each of the improvements, the associated costs and assessments within the District has been reviewed, identified and allocated based on the special benefit parcels receive from such improvements pursuant to the provisions of Article XIIID and the 1972 Act. All improvements associated with this District have been identified as necessary, required and/or desired for the orderly development of the properties within the District to their full potential, consistent with the proposed development plans. As such, these improvements would be necessary and required of individual property owners for the development of such properties, and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and the annual costs of maintenance and operation of the improvements are of special benefit to the properties.

All the lots or parcels are established at the same time once the conditions regarding the improvements and the continued maintenance are met. As a result, each lot or parcel within the District receives a special and distinct benefit from the improvements and to the same degree.

Over time, the improvements continue to confer a particular and distinct special benefit upon the lots or parcels within the District because of the nature of the improvements.

The proper maintenance of the improvements and appurtenant facilities reduces property related crimes, especially vandalism, against properties in the District. All of the above-mentioned factors also contribute to a specific benefit to each of the parcels within the District.

The method of apportionment (method of assessment) is based on the premise that each assessed parcel within the District receives benefit from the improvements.

However, each individual improvement element has its own distinct benefits both specific and general. The special benefits associated with the improvements within the District are as follows:

Special Benefit
The special benefits associated with the landscaping improvements in the District are specifically:

Enhanced desirability of properties through association with the improvements;
Improved aesthetic appeal of properties providing a positive representation of the area;
Enhanced adaptation of the urban environment within the natural environment from adequate green space, open space areas and landscaping; Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention;
City of South Gate Maintenance District No. 1 Page 5 27 2024/2025
63 W'WILLDAN
Increased sense of pride in ownership of property within the District resulting from well-maintained improvements associated with the properties; Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities including abatement of graffiti; and,
Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise.

The special benefits of the street lighting and traffic signal (public lighting) improvements within the District are the convenience, safety, and security of property, improvements, and goods, specifically:

Enhanced deterrence of crime and the aid to police protection; Increased nighttime safety on roads and streets;
Improved ability of pedestrians and motorists to see; Improved ingress and egress to property;
Reduced vandalism and other criminal acts and damage to improvements or property;
Improved traffic circulation and reduced nighttime accidents and personal property loss; and,
Increased promotion of business during nighttime hours in the case of commercial properties.

General Benefit
In addition to the special benefits received by the parcels within the District, there are incidental general benefits conferred by the improvements to the public at large (e.g. flow through traffic). These general benefits are primarily relating to the traffic safety provided by the public lighting improvements as described above. The total benefits provided by the District improvements are a combination of the special benefits to the parcels within the District and the general benefit to the public at large.

Any portion of the total costs, which are associated with general benefits, will not be assessed to the parcels in the District, but will be paid from other City funds.

C, ASSESSMENT METHODOLOGY
The street lighting, trees, landscaping, hardscapes, traffic signals and appurtenant facilities are for the benefit and enjoyment of all properties within the District and parcels benefit from the operation, maintenance and servicing thereof. The assessment of maintenance and servicing costs upon each parcel is apportioned in accordance with the methodology, which has been established by the City Council upon formation of the District.

The adjusted front footage of each parcel was determined, at District formation to be the most equitable method for spreading the estimated benefit received by each parcel.

Lighting, medians, street trees and parkway improvements are considered "frontage" improvements. The frontage of a parcel is adjusted to take into consideration configuration, such as irregular or corner parcels, and whether a parcel has condominiums on it.

City of South Gate Maintenance District No. 1 Page 6

2.L
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64 fflwiuohx
The adjusted front footage for an irregular, corner or a parcel with condominiums on it, is determined by measuring the front of the parcel that receives the greatest special benefit within its respective zone.

Furthermore, the District established several special benefit Zones to distinguish differing levels of benefit provided by certain District improvements. The Tweedy and Hollydale Commercial District landscaping and hardscape improvements, and the landscaped medians, are located on the major thoroughfares, which are the main travel- ways of the City. These improvements are a special benefit to the adjacent properties, as well as a citywide benefit to all other parcels in the District. The City has not levied an assessment for the local benefit portion of the assessment since the passage of Proposition 218 and the costs attributable to the local benefit portion will continue to be paid from other City funds for Fiscal Year 2024/2025. The City's costs to administer the improvements are also considered a benefit to all properties.

The benefit Zones established by the District are described below:

ZONE 1- This is a City-wide Zone with boundaries contiguous to the boundaries of the City limits. All parcels within the District are included in this Zone and are assessed for the operation, maintenance, and servicing of street lights, traffic signals, street trees and appurtenant facilities, as well as the City-wide landscaping and hardscape benefits of the Tweedy and Hollydale Commercial Districts and landscaped medians.

ZONE 2 - Tweedy Commercial District is comprised of the Tweedy Boulevard business district from Hunt Avenue to State Street.

ZONE 3 - Hollydale Commercial District is comprised of the Garrield Avenue business district from Century Boulevard to one-half block north of Roosevelt Avenue.

ZONE 4 - Landscape Median Area is in the immediate vicinity of the Firestone Boulevard / Garfield Avenue intersection.

The preliminary distribution of Adjusted Front Footage (AFF) per Zone is as follows:

Parcel Count
Adjusted Front Footage'
15,507
821,271.08
118
7,493.65
29 i ,884.00
"ig
7,566.32
The Adjusted Front Footage amount for Zone '1 includes AFF in Zones 2, 3, and 4. Amount might be slightly different from actual data due to rounding.

Exempt Parcels - Exempt parcels may include, but are not limited to, publicly owned lots or parcels used for a public function including public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, right-of- ways including greenbelts and parkways; utility right-of-ways; common areas, public schools, park properties and other publicly owned properties that are part of the District improvements or that have little or no improvement value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from the assessment.

City of South Gate Maintenance District No. 1 Page 7 23 2024/2025
65 'W""WILLDAN
D. MAXIMUM ASSESSMENT
In November 1996, voters of the State of California passed Proposition 218 that added Articles XIIIC and XIIID to the California Constitution. Article XIIID requires certain noticing, balloting and meeting procedures For any new or increased assessment.

Legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation).

The Maximum Assessment rate for the District was established and has remained at $2.3789 per adjusted front footage since 1993 and there is no escalation factor approved for increasing the Maximum Assessment rate. The Maximum Assessment establishes a limit on the assessment; however it does not restrict assessments to the maximum amount. If the budget and assessment for the Fiscal Year is less than or equal to the Maximum Assessment, then the required budget and assessment may be applied without additional property owner balloting procedures as required by Article XIIID. If the budget and assessments calculated require an increase greater than the Maximum Assessment, then the assessment is considered an increased assessment and would be subject to such balloting procedures.
/K DISTRICT BUDGET
A. DESCRIPTION OF BUDGET ITEMS
The 1972 Act provides that the estimated costs of the improvements shall include the total cost of the maintenance and servicing of the improvements for the entire Fiscal Year 2024/2025, commencing July 1, 2024 and ending June 30, 2025, including incidentals, which may include reserves to operate the District.

The 1972 Act also provides that the amount of any surplus, deficit, or contribution be included in the estimated cost of improvements. The net amount to be assessed on the lots or parcels within the District is the total cost of maintenance and servicing with adjustments either positive or negative for reserves, surpluses, deficits, and/or contributions.

For the purpose of estimating costs for the maintenance and servicing, actual costs are used where possible. But where the improvements are new, or where actual maintenance experience is lacking, cost estimates will be used to determine costs, as follows:

Direct Costs:

Maintenance Costs/Labor - Includes all contracted labor, material and equipment required to properly maintain the landscaping, irrigation and drainage systems within the District. All improvements within the District are maintained and serviced on a regular basis. The frequency and specific maintenance operations City of South Gate Maintenance District No. 1 Page 8 24 2024/2025
66 W'WILLDAN
required within the District are determined by City Staff and is based on the proposed service level of the District.

Utilities - Includes utility costs for water required to irrigate landscaped areas and the utility costs for electricity required to run irrigation systems and lighting for the areas according to the proposed service level of the District.

Repairs/Miscellaneous - Includes the replacement of any materials and equipment needed to maintain the District. Also includes repairs that are generally unforeseen and not normally included in the yearly maintenance contract costs.

This may include repair of damaged amenities due to vandalism, storms, frost, etc.

Also included may be planned upgrades that provide a direct benefit to the District.

These upgrades could include replacing plant materials and/or renovation of irrigation or lighting systems.

Administration Costs:

City Administration - The cost which is allocated for the City Administration staff and departments for labor, hours and support in order to maintain the districts well- being.

District Administration - The cost to all particular departments and staff of the City, for providing the coordination of District services and operations, response to public concerns and education, as well as procedures associated with the levy and collection of assessments. This item also includes the costs of contracting with professionals to provide any additional administrative, legal or engineering services specific to the District including any required notices, mailings or property owner protest ballot proceedings.

County Administration Fee - The cost to the District for the County to collect District assessments on the property tax bills. This charge is based on a fixed amount per parcel.

Levy Breakdown;
Reserve Collection (Transfer) - The 1972 Act pursuant to Chapter 1, Article 4 Section 22569 (a), provides for a District Reserve Fund. The Reserve Fund provides for the collection of funds to operate the District from the time period of July 1 (beginning of the Fiscal Year) through January when the County provides the City with the first installment of assessments collected from the property tax bills.

Negative amounts shown for these budget items are transfers from the reserve fund that are used to reduce the Balance to Levy. The Reserve Fund eliminates the need for the City to transfer funds from non-District accounts.

Revenue from OtherSources - This is the amount of additional funds designated for use by the District that are not from District assessments. These funds are added to the District account to reduce assessments, and may be from either non-District or District sources including City General Fund Contributions, interest earnings and contributions from the Gas Tax. Any funds indicated on this line will be shown as a negative number indicating a reduction in the amount to be levied and represent funds that do not have to be repaid.

City of South Gate Maintenance District No. 1 Page 9 25=
2024/2025
67 iWILLDAN
Ba/ance to Levy - This is the total amount to be levied and collected through assessments for the current Fiscal Year (for special benefits) or from other revenue sources (for general benefit). The Balance to Levy represents the sum of Total Direct and Administration Costs, the Reserve AccounUOther Revenue Source adjustments. Only those costs related to the improvements identified as special benefits are levied and collected on the tax roll.

District Statistics:

Total /Viimber of Parcels
boundary.

The total number of parcels within the District
Total Parcels Levied - The total number of parcels within the District that are assessed. Non-assessable lots or parcels may include parcels of land principally encumbered by public right-of-ways, easements, common areas, and/or parcels within the boundaries of the District that currently do not benefit from the improvements due possibly to development restrictions.

Total Adjusted Front Footage (AFF) - Adjusted Front Footage (AFF) is the frontage of a parcel, adjusted to take into consideration configuration, such as irregular or corner parcels, and condominium parcels. The Total AFF shown in the District Budget, (Section IV B), represents the sum of all parcels' AFF that receive special benefits from the improvements.

Levy per AFF - This amount represents the rate being applied to each parcel's Adjusted Front Footage. The Levy per Adjusted Front Footage is the result of multiplying the Total Adjusted Front Footage times the Rate for the Fiscal Year.

Reserve Information:

Reserve Balance - The Reserve Balance eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of the Fiscal Year. The Reserve Balance allows the District to retain sufficient funds to operate the District from the time period of July 1 (beginning of the Fiscal Year) through January or February (when the County provides the City with the first installment of assessments collected from the property tax bills). Additional funds may be collected each year to ensure adequate operating funds are available or the funds may be used to reduce the Balance to Levy. Using reserve amounts in this way allows the Levy rate to remain fairly constant, although District costs may fluctuate. The Estimated Beginning Reserve Balance reflects the projected funds available at the beginning of the current Fiscal Year (based on the projected revenues and expenses from the prior Fiscal Year). The Estimated Ending Reserve Balance reflects the projected funds that are anticipated at the end of the current Fiscal Year (assuming all revenues and expenditures occur as budgeted).

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68 Jwiuoxx
B. DISTRICT BUDGET FISCAL YEAR 2024/2025

DIRECT COSTS
Employee Services
Supplies and Services
Capital Outlay
Direct Cosfs (Subtota0

ADMINISTRATION COSTS
City Administration Fee
District Administration
County Administration Fee
Administration Costs (Subtotal)

LEVY BREAKDOWN
Total Direct and Admin. Costs
Reserve Collection (Transfer)
Revenue from Other Sources (Gas Tax)
Other Revenue/General Fund (Contribution)
Amount to Levy"
DISTRICT ST AT18TICS
Total Number of Parcels
Total Parcels Levied
Total Adjusted Front Footage
Rate per AFF (Adjusted Front Foot)
Maximum Rate per AFF

RESERVE INFORMATION
Beginning Reserve Balance
Reserve Fund Activity
$723,293
2,058,133
83,548
$2,864,974
$164,744
8,000
3,918
$176,662
$3,041 ,636
(1 ,047,575)
$1,994,061
15,728
15,673
838,215
$2.3789
$2.3789
Estimated Ending Reserve Balance
" Amount to Levy is slightly off from the sum of the Levy Breakdown amounts due to rounding. "The proposed assessment per Adjusted Front Footage ("AFF") for Fiscal Year 2024/2025 is $2.3789 per AFF, which has been rounded to the nearest ten thousandths City of South Gate Maintenance District No. 1 Page 11 2";'
2024/2025
69 mwiuohx
REPORT UPDATES:

Fiscal Year 2024/2025, updates were made to the District Budget. These updates do not affect the amount to levy or the per parcel assessment rates.

RECOMMENDED ACTIONS:

A. Adopt a Resolution approving the Engineer's Report for Maintenance District No.1 for Fiscal Year 2024/2025 which is necessary as a part of the subject proceedings; and
B. Adopt a Resolution Initiating Annual Proceedings for the levy of the Fiscal Year 2024/2025 within Maintenance District No. 1
2024/2025 City of South Gate Maintenance District No. 1 Page 12 2?' 70
dwiuohx

APPENDIX A DISTRICT ASSESSMENTDIAGRAM
A District Diagram has been prepared for the District in the format required by the 1972 Act, and is on file with the City Clerk, and by reference is made part of this Report. The Assessment Diagram is available for inspection at the Office of the City Clerk, during normal business hours.
2024/2025 City of South Gate Maintenance District No. 1 Page 13 27 71
"W"WILLDAN
APPENDIXB 2024/2025 ASSESSMENTROLL
Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the County Assessor's Map for the year in which this Report is prepared.

Non-assessable lots or parcels include land principally encumbered by public or utility rights- of-way and common areas. These parcels will not be assessed.

A listing of parcels assessed within the District along with the proposed assessment amounts has been identified as "Fiscal Year 2024/2025 Assessment Roll", is on file with the City Clerk and is by reference made a part of this Report.

For Fiscal Year 2024/2025, estimated assessment amount for the District is $1,994,061 This amount does not take into consideration parcel changes and delinquency rate of approximately 1.58% (based on Fiscal Year 2023/2024 first installment delinquency rate). 2024/2025 City of South Gate Maintenance District No. 1 Page 14 3o 72

STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES )

CITY OF SOUTH GATE )
SS
1, Yodit Glaze, City Clerk of the City of South Gate, California, hereby certify that the whole number of Members of the City Council of said City is five; that ResolutionNo. 2024-27-CC was adopted by the City Council at their Regular Meeting held on April 23, 2024, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Recused:

Council Members: Avalos, Barron, Rios, Davila, and Hurtado Council Members: None
Council Members: None
Council Members: None
Council Member: None
Witness my hand and the seal of said City on May 1, 2024.

Yodit
City of
City Clerk
Gate, California
73 Attachment E
RESOLUTION N0. 2024-28-CC

CITY OF SOUTH GATE

LOS ANGELF,S COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOU'n'I GATE, CALIFORNIA, DECLARING THE CITY'S

INTENTION TO LEVY AND COLLECT ASSESSMENTS
UNDER THE FISCAL YEAR 2024/2025 ANNUAL LEVY AND

COLLECTION OF ASSESSMF,NTS WITHIN THE STREET

LIGHTING AND LANDSCAPE MAINTENANCE DISTRICT
N0. 1,ANDSETTING APUBLICHEARINGFORMAY28,2024
WHEREAS, the City Council ofthe City of South Gate, ("City Council") previously fori'ned aspecialrnaintenancedistrictpursuanttothetermsofthe"LandscapingandLightingActof 1972," being Division 15, Part 2 ofthe Streets and Highways Code of the State of California, such special maintenance districtknown and designated as StreetLighting and Landscape Maintenance District No. 1 (hereinatter referred to as the "Maintenance District"); WHEREAS, on February 28, 2023, the City Council adopted ResolutionNo. 2023-10-CC initiating proceedings for the annual levy of the Fiscal Year 2023/2024 assessments and ordering preparation of an Engineer's Repoit forthe District; WHEREAS,atthistimetheCity Councildesirestoundertakeproceedingstoprovideforthe annual levy ofassessments forthenext fiscal yearto financethe costs and expenses necessaryto pay for the maintenance of the improvements in said Maintenance District; and WHEREAS, the City Council has approvedthe Engineer's Report, as required by law, and desires to continue with the proceedings for said annual levy.

NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATF,, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SF,CTIONI. TheCityCouncildoesherebydeclarethattheaboverecitalsaretrueaiidcorrectand incorporated herein by reference.

S:ECTION 2. The City Council does hereby declare that the public interest and convenience requires, and it is the intention of this legislative body, to levy and collect assessments to pay the annual costs and expenses for the maintenance and/or servicing of such improvements, from those parcels which specially benefit from improvements described below from the above-referenced Maintenance District, and said improvements are generally described as follows:

The operation, maintenance and servicing ofthe following improvements,allwithinexisting public streets or public sidewalks of the City:

A. Landscaping,ornamentalvegetation,includingtrees,shrubs,irrigationsystemsand

Page 1 of 3 ends

32- 74
drainage facilities, together with appiutenances.

B. Public lighting, street lighting improvements and traf'fic signals, together with appurtenances.

SECTION3. TheCityCouncildoesherebyaffirmthatsaidworksofimprovementsareofspecial benefit to the properties within the boundaries of said Maintenance District, which Maintenance District the legislative body previously declared to be the area benefited by said works of improvements, and forparticulars, reference is madetothe boundarymapaspreviously approved by this legislative body, a copy of which is on file in the Office of the City Clerk and open for public inspection, and is designated by the name of this Maintenance District, SECTION4. The City Council does hereby direct that the annual Engineer's Report, as preliminarily approved by the City Council, shall (pursuantto aseparate Resolution adopted by the City Council) promptly be placed on file with the City Clerk, and shall thereafter be accessible for public inspection. Reference is made to Report for a full and detailed description of the improvements to bemaintained, the boundariesoftheMaintenanceDistrict and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the Maintenance District,
SECTIONS. TheCityCouncildoesherebyaffirmthatallcostsandexpensesofthemaintenance work and incidental expenses have been apportioned and distributed to the benefiting parcels in accordance with the special benefits received from the proposed work. No assessments on any parcels within the Maintenance District are to be increased from those as levied for the last fiscal Yeara
SECTION6. TheCityCouncildoesherebygivenoticethatapublicheatingisherebyscheduledin theregularmeeting place ofthis legislative body, beingthe Council Channbets ofCity Hall, located at 8650 California Avenue, South Gate, CA 90280, on the 28'h day of May 2024 ai6:30 p.rn.

At that time, the legislative body will consider and finally determine whether to levy the proposed annual assessment, and to hear all protests relating to said proposedproceedings, ot the estimate of the cost and expenses ofthe proposed maintenance, orthe proposedannual assessment. Any andall persons interested may 'file awritten protestpriorto the conclusionof thehearing referredto herein or, having filed such aprotest, may file a written withdrawal ofthatprotest. A writtenprotestmust state all grounds of objection, Aprotest by aproperty ownermust containadescriptionsufficientto identify the property owned by such person,
Any interested person may mail a protest to the following address:

Yodit Glaze, City Clerk
City of South Gate
8560 California Avenue
South Gate, CA 90280
To be consideredby the legislative body, all protests must be received prior to the conclusionofthe public hearing. A postmark prior to such date and time will not be sufficient, lJ

Page 2 of 3 ends

33 75
SECTION7. TheCityClerkisherebyauthorizedanddirectedtogivenoticeasrequiredbylawby causing acopy ofthis Resolution to be published inthe Los Angeles Wavenewspaper, anewspaper of general circulation withinthe City of South Gate; said publicationto be cotnpleted not less than ten (10) days prior to the date set for the public hearing.

SECTION 8. For any and all information relating to these proceedings, including information relating to protest procedure, your attention is directed to the person designated below:

Arturo Cervantes, P,E,
ASSiStant City Manager/Director of Public Works
City of South Gate
8650 California Avenue
South Gate, CA 90280
SR,CTION9. TheCityClerkshallcertifytotheadoptionofthisResolutionwhichshallbeeffective upon its adoption.

PASSED, APPROVED and ADOPTED this 23rd day of April 2024.

CITY OF SOUTH GATF,:

BY:

Gil Htutado, Mayor
ATTEST:

B9:

Yodit City Clerlc
SEAL)
APPROVED AS TO FORM:

B7:

Raul F. Salinas, City Attorney
Page3of3
76 ST ATE OF CALIFORNIA

COUNTY OF LOS ANGELES ) SS

CITY OF SOUTH GATE
I, Yodit Glaze, City Clerk of the City of South Gate, California, hereby certify that the whole number of Members of the City Council of said City is five; that Resolution No, 2024-28-CC was adopted by the City Council at their Regular Meeting held on April 23, 2024, by the following vote:

Ayes: Council Members: Avalos, Barron, Rios, Davila, and Hurtado Noes: Council Members: None

Absent: Council Metnbers: None
Abstain: Council Members: None
Recused: Council Member: None
Witness my hand and the seal of said City on May 1, 2024.

Yodit
City of
City Clerk
Gate, California
35' 77
Item No. 3
(I)tlice oi . -
3Quth Gate Cil', Clei l Cil of South Gate
MAY23 202't CITY COUNCIL
FILED
lO'aOaq
Department Head.

SUBJECT: APPEAL OF PLANNING COMMISSION ACTION REGARDING ZONING CODE

AMENDMENTS
PURPOSE: To take testimony and review evidence at the appeal hearing, and decide whether to uphold the Planning Commission action, whether instead to reverse that action by resolving to modify the Zoning Code; or take other such action as may be determined by the City Council.

RECOMMENDED ACTIONS: Following the conclusion of the Public Hearing, the City Council will consider:
a. Upholding the action taken by the Planning Cornrnission at its April 16, 2024, meeting, by adopting a Resolution attached hereto;
b. Or, in the alternative, reversing the Plaru"iing Commission action by adopting a Resolution attached hereto, which is a Resolution of Intent to adopt an ordinance amending the City's Zoning Code to remove certain restrictions on the size and location of warehouses in the City's Urban Mixed Use and Commercial Industrial zones; or
c. Take other such action as the City Council may determine.

FISCAL IMPACT: None
PUBLIC NOTIFICATION: Advertising and notification of the public hearing for the appeal was conducted in compliance with Chapter 11.50.020, Title 11 of the South Gate Municipal Code. Notice of the hearing was originally posted and published in the "Los Angeles Wave" newspaper and was mailed to surrounding properties on May 16, 2024.

ENVIRONMENTALEVALUATION: UpholdingtheactiontakenbythePlanningCornmissionwould not affect CEQA compliance Requirements. Adoption of a Resolution Categorically Exempt from CEQA for two reasons. First, amendment of a zoning code ordinance only constitutes a "project" under CEQA if it has the potential for resulting in direct or indirect physical changes to the environment, per 14 CCR Fg 15378. This proposed amendment will not cause physical changes to the environment, because it does not exempt future warehorise projects from Conditional Use Permit and CEQA compliance requirements.

The proposed amendment is therefore exempt from CEQA because it does not meet the definition of a CEQA project. Second, even if it were to be deemed a project, it has no potential for causing a significant effect on the environment and is therefore exempt from CEQA pursuant to 14 CCR § 15061.

AS13772.0860893 4873-9506-5022vl 78
BACKGROUND: At its regular meeting of April 16, 2024, the City Planning Commission ("Commission") held a public hearing to consider a Zone Change Amendment. The Commission considered two resolutions regarding proposed changes to Chapter 11.21 of the South Gate Zoning Code (which is set forth in Title 11 of the South Gate Municipal Code). The first resolution, Resolution No. 2024-02A, if approved by the Commission, recommended to the City Council ("Council') that the City's Zoning Code be revised to eliminate size limitations on warehouses in the City's' Urban Mixed-Use Zones and Commercial Industrial Zones. The second resolution, Resolution No. 2024-02B, if approved by the Commission, would direct the City's Community Development Department staff ("Staff') to study the matter further and return to the Commission later with recommendations. The Commission voted to deny both resolutions.

ANALYSIS: The Zoning Code, together with the City's General Plan, Specific Plans and Zoning Map, divides the City into various geographical use zones. Land use permission tables in Section 11.21.030 of the Zoning Code establish the uses to which land in each zone may be put. Table 11.21-3 specifies uses allowed in the Urban Mixed-Use Zones, and Table 11.21-4 specifies uses allowed in the Commercial Industrial zones. Under those tables, warehousing is permitted (subject to issuance by the City of a Conditional Use Permit) in the Industrial Flex (IF), Light Industrial (LF), Light Manufacturing (M2) and Heavy Manufacturing (M3) zones. However, footnote 18 in Table 11.21-3 and Footnote 11 in Table

11.21-4, each limits the size and placement of warehouses within those zones as follows:
"Limited to maximum building area of fifteen thousand square feet and is not permitted along street frontage (would have to be a rear use)." These footnotes were incorporated into the South Gate Municipal Code in 2015 when the Commission prepared, and the Council enacted, a comprehensive update to the Zoning Code. The Plaru'iing Commission and City Council at that time determined the inclusion of these footnotes was necessary to prevent a proliferation of large warehorises in the City which would cause detrimental impacts to the community.

Recently, landowners and developers have expressed to the City's Community Development Department staff members (and in some cases to Plaru"iing Commissioners and to City Corincil Members) the landowners' and developers' opinions that the limitations imposed by these footnotes are outdated, are unduly restrictive, and create limitations inconsistent with the current business practices of the warehousing industry.

One such developer, South Gate Owner, LP, and its partners South Gate GP, LLC and OMP South Gate GP LLC (collectively, "Appellant"), whicli owns property in one of the affected zones, asked the Commission to recommend to this City Council that it amend the Zoning Code by eliminating those footnotes entirely. The Cornrnission conducted a duly-noticed public hearing to consider the matter on April 16, 2024. After considering presentations by the Community Development Department and by the Appellant, and after listening to public comments from South Gate residents and business owners both supporting and opposing the requested change, the Commission determined not to adopt a resolution recommending that this City Council amend the Zoning Code to remove those footnotes and the corresponding restrictions on the size and location of warehouses in the City ("April 16 Action").

The Appellant is appealing the Commission's April 16 Action and is asking the City Council to reverse it AS13772.0860893 4873-9506-5022vl 79
by adopting a resolution of intent to pass an ordinance amending the Zoning Code to remove those footnotes and corresponding restrictions.

CONCLUSION AND RECOMMENDATIONS: The two resolutions attached as exhibits to this Agenda Bill are mutually exclusive, such that only one, and not both, should be adopted by this City Council.

If, after considering the presentations and testimony presented at the hearing, the City Council has not been persuaded that there is a need to modify the City's Zoning Code to remove the current restrictions on the size and location of warehouses within the City, then the Council should uphold the Commission's April 16 Action by adopting a Resolution.

But if, after considering the presentations and testimony presented at the hearing, the City Council has been persuaded that there is a need to modify the City's Zoning Code to remove the current restrictions on the size and location of warehouses within the City, then the Council should reverse the Planning Commission's April 16 Action by adopting a Resolution, which is a Resolution of Intent to adopt Ordinance, modifying the City's Zoning Code to remove footnote No. 18 from Table 11.21-3 and to remove footnote No. 11 from Table 11.21-4. Alternatively, the City Council can take such other action as it may determine, to provide guidance to City Staff.

ATT ACHMENTS: A.

Proposed Resolution upholding the Plaru'iing Commission action Proposed Resolution reversing the Planning Commission action and declaring an intent to adopt an ordinance modifying the City's Zoning Code to remove certain restrictions on warehouses.

Proposed Draft Ordinance
Plaru'iing Commission Agenda Bill, April 16, 2024
Correspondence Received for 04-16-24 PC
Appellants Notice of Appeal Letter dated April 23, 2024 AS13772.0860893 4873-9506-5022vl 80
Attachment A
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH

GATE, CALIFORNIA, UPHOLDING THE ACTION OF THE PLANNING

COMMISSION TO REJECT PROPOSED ZONING CHANGES

AFFECTING THE SIZE AND LOCATION OF WAREHOUSES
WHEREAS, the City's Zoning Code, together with the City's General Plan, Specific Plans and Zoning Map, divides the City into various geographical use zones; and WHEREAS, land use permission tables in Section 11.21.030 of the Zoning Code establish the uses to which land in each zone may be put; and WHEREAS, Table 11.21-3 specifies uses allowed in the Urban Mixed-Use zones, and Table 11.21-4 specifies uses allowed in the Commercial Industrial zones; and WHEREAS, under those tables, warehousing is permitted (subject to issuance by the City of a Conditional Use Permit) in the Industrial Flex (IF), Light Industrial (LF), Light Manufacturing (M2) and Heavy Manufacturing (M3) zones; and WHEREAS, footnote 18 in Table 11.21-3 and Footnote 11 in Table 11.21-4 each limits the size and placement of warehouses within those zones as follows:
"Limited to maximum building area of fifteen thousand square feet and is not permitted along street frontage (would have to be a rear use)." ; and WHEREAS, these footnotes were incorporated into the South Gate Municipal Code in 2015 when the Planning Cornrnission prepared, and the Council enacted, a comprehensive update to the Zoning Code, because the Planning Commissioners and City Council Members who were in office at that time felt the inclusion of these footnotes was necessary to prevent a proliferation of large warehouses in the City which would cause detrimental impacts to the community; and
WHEREAS, landowners and developers have recently expressed their opinion that the limitations imposed by these footnotes are outdated, are unduly restrictive, and create limitations inconsistent with the current business practices of the warehousing industry; and WHEREAS, one such developer, South Gate Owner, LP, and its partners South Gate GP, LLC and OMP South Gate GP LLC (collectively, "Appellant"), which owns property in one of the affected zones, asked the Planning Commission to recommend to this City Council that it amend the Zoning Code by eliminating those footnotes entirely; and 1 AS13772.0860893 4860-7602-2462vl
81 WHEREAS, the Planning Commission conducted a duly-noticed public hearing to consider the matter on April 16, 2024 and, after considering presentations by the Community Development Department and by the Applicant, and after listening to public comments from South Gate residents and business owners both supporting and opposing tlie requested change, the Planning Commission determined not to adopt a resolution recommending that this City Council amend the Zoning Code to remove tliose footnotes and the corresponding restrictions on the size and location of warehouses in the City; and WHEREAS, the Applicant has appealed tliat Planning Commission action and has asked the City Council to reverse it by adopting a resolution of intent to pass an ordinance amending the Zoning Code to remove those footnotes and corresponding restrictions; and WHEREAS, the City Council does hereby find and determine that CEQA Guidelines, do not apply to the Project. Therefore, the proposed project is exempt from CEQA; WHEREAS, on May 28, 2024, this City Council conducted a duly-noticed public hearing to consider the matter, at which this Council considered information presented by the Community Development Department and by the Applicant, and listened to public comments from South Gate residents and business owners about the issue. Notice of the hearing was originally posted and published in the "Los Angeles Wave" newspaper and was mailed to surrounding properties on May 16, 2024;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council does hereby declare that the above recitals are true and correct and incorporated herein by this reference.

SECTION 2. After considering the information and comments presented at the May 28, 2024 City Council hearing on this matter, this City Council is not persuaded that there is a need to modify the City's zoning code to eliminate restrictions on the size and placement of warehouses in the City's Urban Mixed Use and Commercial Industrial Zones by modifying Table 11.21-3 to remove footnote 18 from that table and by modifying Table 11.21-4 to remove footnote 11 from that table.

SECTION3. The City Council hereby upholds the action taken by the Planning Commission on April 16, 2024 relative to this matter.

SECTION 4. The City Council hereby resolves NOT to make any changes to the Zoning Code to remove those footnotes from those tables or to otherwise limit or modify the restrictions on warehouse size and placement created by those footnotes.

SECTION 5. The City Council does hereby declare that if any section, subsection, sentence, clause, phrase or portion of this Resolution or its application thereof is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Resolution. The City Council hereby 2 AS13772.0860893 4860-7602-2462vl
82 declares tliat it would have adopted this Resolution, and each and every section, subsection, sentence, clause, phrase, or portion thereof not declared invalid or unconstitutional without regard to whetlier any portion of the Resolution would be declared invalid or unconstitutional.

SECTION 6. The City Clerk shall certify the adoption of this Resolution which shall be effective upon its adoption.

PASSED, APPROVED, and ADOPTED on tis 28th day of May 2024.

CITY OF SOUTH GATE:

BY:

Gil Hurtado, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
APPROVE 0
By:

Raul F. Salinas, City Attorney
3 AS13772.0860893 4860-7602-2462vl
83 Attachment B
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF INTENT OF THE CITY COUNCIL OF THE CITY OF

SOUTH GATE, CALIFORNIA, TO ADOPT AN ORDINANCE

MODIFYING THE CITY'S ZONING CODE TO REMOVE SIZE AND

LOCATION RESTRICTIONS ON WAREHOUSES IN THE CITY'S

URBAN MIXED USE AND COMMERCIAL INDUSTRIAL ZONES
WHEREAS, the City's Zoning Code, together with the City's General Plan, Specific Plans and Zoning Map, divides the City into various geographical use zones; and WHEREAS, land use permission tables in Section 11.21.030 of the Zoning Code establish the uses to which land in each zone may be put; and WHEREAS, Table 11.21-3 specifies uses allowed in the Urban Mixed-Use zones, and Table 11.21-4 specifies uses allowed in the Commercial Industrial zones; and WHEREAS, under those tables, warehousing is permitted (subject to issuance by the City of a Conditional Use Permit) in the Industrial Flex (IF), Light Industrial (LF), Light Manufacturing (M2) and Heavy Manufacturing (M3) zones; and WHEREAS, footnote 18 in Table 11.21-3 and Footnote 11 in Table 11.21-4 each limits the size and placement of warehouses within those zones as follows:
"Limited to maximum building area of fifteen thousand square feet and is not permitted along street frontage (would have to be a rear rise)." ; and WHEREAS, these footnotes were incorporated into the South Gate Municipal Code in 2015 when the Planning Commission prepared, and the Council enacted, a comprehensive update to the Zoning Code, becarise the Planning Commissioners and City Council Members who were in office at that time felt the inclusion of these footnotes was necessary to prevent a proliferation of large warehouses in the City which would cause detrimental impacts to the community; and
WHEREAS, landowners and developers have recently expressed their opinion that the limitations imposed by these footnotes are outdated, are unduly restrictive, and create limitations inconsistent with the current business practices of the warehousing industry; and WHEREAS, one sucli developer, South Gate Owner, LP, and its partners South Gate GP, LLC and OMP South Gate GP LLC (collectively, "Appellant"), which owns property in one of the affected zones, asked tlie Planning Commission to recommend to this City Council that it amend the Zoning Code by eliminating those footnotes entirely; and I
AS13772.0860893 4878-9628-5118vl
84 WHEREAS, the Planniiig Commission conducted a duly-noticed public hearing to consider the matter on April 16, 2024 and, after considering presentations by the Community Development Department and by the Applicant, and after listening to public comments from South Gate residents and business owners both supporting and opposing the requested change, the Planning Commission determined not to adopt a resolution recommending that this City Council amend the Zoning Code to remove those footnotes and the corresponding restrictions on the size and location of warehouses in the City; and
WHEREAS, the Applicant has appealed that Planning Commission action and has asked the City Council to reverse it by adopting a resolution of intent to pass an ordinance amending the Zoning Code to remove those footnotes and corresponding restrictions; and WHEREAS, the City Council does hereby find and determine that this project Categorically Exempt from CEQA. First, amendment of a zoning code ordinance only constitutes a "project" under CEQA if it has the potential for resulting in direct or indirect physical changes to the environment, per 14 CCR § 15378. This proposed amendment will not cause physical changes to the environment, because it does not exempt future warehouse projects from Conditional Use Permit and CEQA compliance requirements. The proposed amendment is therefore exempt from CEQA because it does not meet the definition of a CEQA project.

WHEREAS, on May 28, 2024, this City Council conducted a duly-noticed public hearing to consider the matter, at which this Council considered information presented by the Community Development Department and by the Applicant, and listened to public cornrnents from South Gate residents and business owners about the issue. Notice of the hearing was originally posted and published in the "Los Angeles Wave" newspaper and was mailed to surrounding properties on May 16, 2024;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council does hereby declare that the above recitals are true and correct and incorporated herein by this reference.

SECTION 2. After considering the infortnation and comments presented at the May 28, 2024 City Council hearing on this matter, this City Council has determined that there is a need to modify the City's Zoning Code to eliminate restrictions on the size and placement of warehouses in the City's Urban Mixed Use and Commercial Industrial Zones by modifying Table 11.21-3 to remove footnote 18 from that table and by modifying Table 11.21-4 to remove footnote 11 from that table.

SECTION 3. The City Council hereby declares its intent to introduce, at a future regularly scheduled City Council meeting the attached ordinance removing footnote 18 from Table 11.21-3 and by removing footnote 11 from Table 11.21-4.

SECTION 4. The City Clerk is hereby authorized and directed to give notice as required by law by causing a copy of this Resolution to be published in a newspaper of general circulation 2 AS13772.0860893 4878-9628-5]18vl
85 within the City of South Gate and said publication to be completed not less than fifteen (15) days after the adoption of this Resolution.

SECTION 5. The City Council does hereby declare that if any section, subsection, sentence, clause, phrase or portion of this Resolution or its application thereof is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Resolution. The City Council hereby declares that it would have adopted this Resolution, and each and every section, subsection, sentence, clause, phrase, or portion thereof not declared invalid or unconstitutional without regard to whether any portion of the Resolution would be declared invalid or unconstitutional.

SECTION 6. The City Clerk shall certify the adoption of this Resolution which shall be effective upon its adoption.

PASSED, APPROVED, and ADOPTED on this 28th day of May 2024.

CITY OF SOUTH GATE:

By:

Gil Hurtado, Mayor
ATTEST:

BY:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: DRAFT
Raul F. Salinas, City Attorney
3 AS13772.0860893 4878-9628-5118vl
86 Attachment C
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SOUTH GATE, CALIFORNIA, AMENDING TABLES 11.21-3
AND 11.21-4 0F THE SOUTH GATE MUNICIPAL CODE TO

REMOVE FOOTNOTES LIMITING SIZE OF WAREHOUSES
WHEREAS, the City's Zoning Code, togetherwiththe City's General Plan, Specific Plans and Zoning Map, divides the city into various geographical use zones; and WHEREAS, land use permission tables in Section 11.21.030 of the Zoning Code establish the uses to which land in each zone may be put; and
WHEREAS, Table 11.21-3 specifies uses @llowed in the Qrban Mixed-Use zones, and Table 11.21-4 specifies uses allowed in the Comtriercial Industrial zoffias; and WHEREAS, under those tables, wareh6usipg is permitted (subject t§,:ssuance by the city of a Conditional Use Permit) in the Industrial Flex (IF), Light Industrial (LF), Light Manufacturing (M2) and Heavy Manufacturing (M3) 12oHes; and
WHEREAS, footnote 18 in Table 1V'2.1-3 and Footnote 11 in Table 11.21-4 each limits the size and placement of warehouses w'!!!p th€'ffi!"'i3pqs as foll6ws.

Limited to itaffliiffl""'Nyi0ding art'a,,l,",,j q.'66pTh tH<'464Hd square feet and is not permitted al6ffJ"',:tyeet fro4'::e (would 1;"<76 €6 be a renr iise). ; and WHERE4S, the City Cp0q6jl,h4,q determ'44ed it to be in the best interest of the City to remove the restrictions created b9 those f6$$ojes, ir> order to give the City greater flexibility in considering and eval'aating ware:house projectslhap may hereafter be proposed in the City; NOW, THE4FOR, THE CITY , COUNCIL OF THE CITY OF SOUTH GATE, t':" 'l"':

CALIFORNIA DOES ORDAIN AS FOLLOWS:

SECTION 1. Table 11.21-3 of the City's Zoning Code is hereby amended to remove footnote 18.

SECTION 2. Table 11.21-4 of the City's Zoning Code is hereby amended to remove footnote 11.

SECTION3. IfanySection,sentence,clause,orphraseofthisOrdinanceisforanyreason heldto be invalid or unconstitutional by a decision of any court of any competent jurisdiction, 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 Ordinance, and each and every Section, subsection, sentence, clause and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

AS13772.0860893 4883-9599-7886vl
87 SECTION 4. This Ordinance shall be in full force and effect tliirty (30) days after its final passage and adoption.

SECTION 5. The City Clerk shall certify to the adoption of this Ordinance and shall cause a copy of the same to be published in a manner prescribed by law.

PASSED, APPROVED, and ADOPTED this day of , 2022 CITY OF SOUTH GATE:

ATTEST:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

Gil Hurtado, Mayor
Raul F. Salinas, City Att6ffiey
AS13772.0860893 4883-9599-7886vl
88 Attachment D
Ciffl of South Gate

PLANNING COMMISSION
A(,-E'HIDA IBfflLT[,
FortheRegularMeetingof: Aprill6,2024
Coittract Platmer: Communi@ DevelopmentDirector:
aula Ke Mer
SUBJECT: AMENDINGTHECITY5SZONINGCODEBYMODIFYINGTITLE11,Cl-IAPTERII,21

OF THF, SOUTH GATE MUNICIPAL CODE TO RELAX OR REMOVE RESTRICTTONS ON THE SIZE OF WAREHOUSES AUTHORIZED m THE CITY'S URBAN MIXED USE ZONF,S AND

COMMERCIAL INDUSTRIAL ZONES
PURPOSE: To consider two alternate resotutions regarding proposed changes to Chapter 11.21 of the South Gate Zoning Code (which is set forth in Title 11 of the South Gate Municipal Code). The first resolution, if approved by the Planning Commission ("Commission"), would be to recommend to the City Council ("Council') that the City's Zoning Code be revised to eliminate size limitations on warehouses in the City's' Urban Mixed Use Zones and Commercial Itidustrial Zones. The second resolution, if approved by the Commission, would direct the City's Community Development Departnnent staff ("Staff') to study the matter further and return to the Commission at a later date with recommendations. The resolutions are intended to be alternative approaches to the issue and have been written with the intention that the Commission can approve either resolution but should not approve both. The Commission also has the option of not approving either of the two resolutions, wich would effectively signify the Commission's desire that the Zoning Code not be amended.

At the request of the Applicant, this item was continued from the Planning Commission meeting on March 5, 2024,
RECOMMENDED ACTIONS: Staff recomtnends that the Commission talce the following actions:
a. CONDUCT apublic hearing;
b. ACCEI)T the determination that the adoption of Resolution No. 2024-02A is exempt from the California Enviroruriental Quality Act ("CEQA"), codified at Public Resources Code §§ 21000 et seq.:), pursuant to Public Resources Code § 21080,17, and that the adoption of Resolution No. 2024-02B is "categorically exempt" from CEQA under the regulatory guidelines established under CEQA ("CEQA Guidelines"), codified at Chapter 3 of Division 6 of Title 14 of the Califoinia Code of Regulations ("CCR"), as a Class 6 exemption (Information Collection) under 14 CCR e) 15306 and is also "statutorily exempt" from CEQA under tlie Feasibility and Planning Studies exemption establislied by the CEQA Guidelines at 14 CCR § 15262;
c, DISAPPROVE,ANDDONOTADOPT,ResolutionNo,2024-02A,whichresolutionrecotnrnendsthe immediate removal of size restrictions for warehouses in the City's Urban Mixed Use Zones and Commercial Industrial Zones,
d, TAKE ACTION ON Resolution No. 2024-02B by either approving and adopting or disapproving and choosing not to adopt that resolution. Staff has no preference or recommendation as to the approval or t
AS13772.0860893 4880-7902-6343v)
89 disapproval of Resolution No. 2024-02B, except that if the Coini'nission approves and adopts Resolution No. 2024-02A, then Staff recommends disapproving and not adopting Resolution No, 2024-02B.

PUBIIC NOTIFICATION: Advertising and notification of the public hearing for this item was conducted in compliance with South Gate Municipal Code Sections 11.50.020 and 11,50,030, Notice of the liearing was originally posted and publislied irx the "South Gate Press" on February 24, 2024, The original public hearing was scheduled for March 5, 2024, Siiice, at tlie request of the Applicant, the public hearing was continued at the March 5'h meeting to a "date certain" (April 16'h), no additional public notice is required, aside from that described in the above paragrapli.

ENVIRONMENTAL EVALUATION: Adoption of Resolution No. 2024-02A is exempt from CEQA for two reasons, First, amendment of a zoning code ordinance only constitutes a "project" under CEQA if it has the potential for resulting in direct or indirect pliysical changes to the environment, per 14 CCR § 15378. This proposed amendtnent will not cause physical changes to the environment, because it does not exempt future warehouseprojectsfromConditionalUsePertnitandCEQAcompliancerequirements, Theproposedamendment is therefore exempt ffom CEQA because it does not meet the definition of a CEQA project. Second, even if it were to be deemed a project, it has no potentiaf for causing a significant effect on the environment and is therefore exempt from CEQA pursuant to 14 CCR § 15061.

Adoption of Resolution No. 2024-02B is also exempt from CBQA for two reasons. First, it is categorically exempt from CEQA as a Class 6 exemption under 14 CCR 8) 15306. Class 6 exempts activities consisting of "basic data colJection, research, experimental management, aiid resource evaluation activities which do not result in a serious or major disturbance to an environmental resource. These may be strictly for infortnation gathering purposes, or as part of a study leading to an action which a public agency has not yet approved, adopted, or fiinded." Second, it is also statutorily exempt from CEQA as Feasibility and Planning Studies under the CEQA Guidelines at 14 CCR e) 15262. That exemption exeinpts projects "involving only feasibility or plai'ming studies for possible futitre actions wliich tlie agency, board, or cossion has not approved, adopted, or funded does not require the preparation of an EIR or negative declaration but does require consideratioxi of environniental factors."
BACKGROUND: The Zoning Code, together with the City's General Plan, Specific Plans and Zoning Map, divides the City into various geographical use zones. Land use permission tables in Section 11,21,030 of the Zoning Code establish the uses to which laiid in each zone inay be put. Table 11,21-3 specifies uses allowed in the Urban Mixed-Use zones, and Table II,2I-4 specifies uses allowed inthe Commercial Industrial zones. Under those tables, warehousing is permitted (subject to issuance by the City of a Conditional Use Permit) in the IndllStrial FleX (IF), Light [nduStrial (LF), Light Manufacturing (M2) ad Hea'V'y ManufaCturing (M3) ZOlleS, I-Iowever, footnote 18 in Table 11.21-3 and Footnote 11 in Table 11,21-4 each limits the size and placement of warehouses within those zones as follows:
"Limited to maximuin building area of fifteen thousand square feet and is not permitted along street frontage (would have to be a rear use)."
Tliese footnotes were incorporated into the South Gate Municipal Cmle in 2015 when the Coinmission and Council coliesively adopted a comprehensive update to the Zoning Code, The Planning Commissioners and City Council Members who were in office at that time felt the inclusion of these footnotes was necessaiy to prevent a 2 AS13772.0860893 4880-7902-6343vl
90 proliferation of large warehouses in the City which would cause detrimental impacts to tlie community, Recently, landowners and developers have expressed to Staff (and in some cases to Planning Commissioners and to City Couticil Members) the landowners' and developers' opinions tliat tlie Iimitations imposed by these footnotes are outdated, are unduly restrictive, and create limitations inconsistent with the current business practices of the wareliousing industty. They have asked the City to consider elirninating the footnotes entirely, or at least modifying them to loosen the restrictions and allowthe construction axid operatioi'i of larger warehouses in the City,
ANALYSIS:

In response to those requests, Staff is presenting to the Commission two separate resolutions. Resolution No. 2024-02A, if adopted by the Commission, would recommend to the City Council that the Zoning Code be aniended to delete those footnotes from tlie land use permission tables. Resolution No, 2024-02B, if adopted by tlie Comnnission, would direct Staff to evalt'iate the effects of modifying or entirely eliminating the footiiotes, Staff does not recointneiid the adoption of Resolution No, 2024-02A, Deletion of the subject footnotes from the Zorffng Code would eliminate the 15,000 square foot size restriction applicable to warehouses in the City, Absent that restriction, the only limitations on warehouse size would be those generally applicable to other buildings in the respective zones imposed by things such as setback requirements, height limitations, and floor-area-ratio requirements. This will undoubtedly lead to the constuction of warehouses in tlie City wMclt are much larger tlian tliose currently found in tlie City. Without further study or other limitations, Staff is unable to predict - or advise the Commission as to - the effects such larger wareliouses might have on traffic, infrastiiictire, noise and other matters important to residents of the City.

ResolutionNo,2024-02BispresentedasanalternativetoResolutionNo.2024-02A. RathertlianResolutionNo, 2024-02A's "all or nothing" approach of elimnating or retaining the curretxt restrictions on warehouse size and location restrictions, Resolution No, 2024-02B provides an opportunity for Staff to evaluate wliether and to what extent tliose restrictions should be eliminated, modified or retained, Resolution No. 2024-02B would allow Staff to return to tlie Commission at a later date with an analysis of benefits and detrirnents of modifying or eliminating tliose restrictions, as well as whether additional development standards or operating practices should be imposed in connection with the construction and operation of larger warel'ioxises, In this way, the Commission can rnalce a more informed decision,
CONCLUSION: If the Coinmission believes the current restrictions on warehouse size and location are unreasonable and should be changed, Staff recommends adopting Resolution No, 2024-02B but not Resolution No. 2024-02A. If tl'ie Conssion believes the current restrictions are reasonable, Staff recommends that both resolutions be disapproved and neither be adopted.

ATTACHMENTS: A. Resolution No. 2024-02A
B. Resolution No. 2024-02B
C. SGMC, Section 11,21.030, Tables 11.21-3 and 11,21-4 3 AS13772.0860893 4880-7902-6343vl
91 RESOLUTION N0. 2024-02A

A RESOLUTION OF PLANNING COMMISSION

RECOMMENJ)ING THAT THE SOUTH GATE CITY

COUNCIL ADOPT AN ORDINANCE MODIFYING
SECTION 11.21.030 0F THF, SOUTH GATE MUNICIPAL

CODE TO REMOVE CERTAIN SIZE AND LOCATION

RESTRICTIONS ON WARF,HOUSE USES
WHF,REAS, Land Use Pern'ffssion Tables 11.21-3 and 11,21-4, whicli are located in Section I 1.21,030 of the South Gate Municipal Code, allow warehouse uses in the City's Industrial Flex (IF), Light Industrial (LI), Light Manufacturing (M2) and Heavy Manufacturing (M3) zones; and,
WHF,REAS, footnote 18 of Table 11.21-3 and footnote 11 of Table 11,21-4 eacli limit the size of warehouses to 1 5>000 square feet and limit the location of warehouses to the rear of the lot rather than on the street front; and,
WHEREAS,the owners ofcertainparcels ofpropetty in those zones, as well as developers wishing to develop warehouses in those zones, have contended that the restrictions established by those footnotes are inreasonable and should be eliminated in order to allow the construction and use within the City of warehouses larger than 15,000 square feet; and, WHEREAS, pursuant to California Government Code Section 65854, the Plai'ining Commission duly noticed a public hearing and conducted the public hearing on April 16, 2024, to determine whether the Planning Commission should adopt a resolution recommending tliat the City Council amend Section I1.21.030 of the South Gate Municipal Code to remove footnote 18 from Table 11.21-3 and to remove footnote l l from Table 1 1.21-4; and, WHEREAS, after listening to testiniony of persons attending the hearing, and receiving other information from members of the City's Comtunity Development Department, a majority of the Planning Cointnissioners have determined that the Municipal Code shoild be amended to remove those footnotes from those tables;

NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF SOUTH GATE, CALIFORNIA, HEREBY RESOLVES AS FOLLOWS:

SECTION 1. The Planning Commission finds that all of the facts set forth in the Recitals of this Resolution are true and correct.

SECTION 2. The Planiiing Commission hereby finds and determines that the City Council's adoption ofan ordinance amending Sectionll.21,030 of the South GateMunicipal Code to remove the footnotes fromthe tables as discussed above would be exempt from the requirements of the Califortiia Environment Quality Act ("CEQA") for two reasons, First, amendment of a zoning code ordinarice only constitutes a "project" under CEQA if it lias the potential for resulting in direct or indirect physical chaitges to the environment, per 14 CCR § 15378. This proposed l
AS13772.0860893 4862-27]1-7480vl
92 amendment will not cause physical changes to the enviroi'irnent, because it does not exempt future warehouse projects fronq Conditional Use Permit and CEQA compliance requirements. The proposed amendment is tlierefore exempt from CEQA because it does not meet the definition of a CEQA pro'3ect. Second, even if it were to be deemed a project, it has no potential for causing a significant effect on the envirorunent and is therefore exempt from CEQA pursuaixt to 14 CCR § 15061.

SECTION 3. Such an ordinance would be consistent with and support the General Plan.

SECTION 4. Such an ordinance would not adversely affect the public health, safety, or welfare of the City aiid would protect public healtli, safety, and welfare in tlie City.

SE,CTION 5. The Planning Commission hereby recommends that the City Council adopt aii ordinaxice revising Section 11.2I.030 of the South Gate Municipal Code to remove footnote 18 fiaom Table 11.21-3 and to remove footnote 11 from Table 11.21-4, SECTION 6. Tlie Secretary of the Planning Commission shall ceitify to the adoption of this Resolution.

SECTION 7. The Secretary of this Commission be directed to transmit to the City Council a copy of this resolution as the report of the fuidings and recommendations of the Planiiing Commission with reference to this matter.
[continues to next page]
2 hsi:iy';ix.ostsos9.a 4862-27(}-7480V1
93 This recommendation was adopted by the following vote at the Planning Commission meetiixg of April 16, 2024.

AYES:

NOES:

ABSENT:

NOT VOTING:

APPROVE,D and ADOPTED this 16" day of April, 2024.

M'idiJ/ /
Secretary
City Planning Commission
APPROVED:

Jimmy Ozaeta
Chairperson
City Planning Comnnission
AS13772.0860893 4862-2711-7480vl
94 RISOLUTION N0. 2024-02B

A RESOLUTION OF PLANNING COMMISSION
DIRECTING STAFF TO STUDY THE ADVISAJ3ILITY OF
AMENDING SECTION 11.21.030 0F THE SOUTH GATF,

MUNICIPAL CODE TO MODIFY OR REMOVE CERTAIN

SIZE AND LOCATION RF,STRICTIONS ON WAREHOUSE
USES
WHEREAS, Land Use Permission Tables 11,21-3 and 11.21-4, whicli are Iocated in Section 11.21.030 of the South Gate Municipal Code, allow warehouse uses in tl'ie City's Industrial Flex (IF), Liglit Industrial (LF), LightManufacturing (M2) and Heavy Maiiufacturing (M3) zones; and,
WHEREAS, footnote 18 of Tabie 11.21-3 and footnote 11 of Tablell.21-4 each limit the size of warehouses to 15,000 square feet and limit the location of warehouses to the rear of the lot rather than on tlie street front; and,
WHEREAS, the owners of certainparcels ofproperty iii those zones, as well as developers wishing to deveJop wareliouses in those zones, have contended that the restrictions established by those footnotes are 11nreasonabfe aiid should be eliminated in order to allow the construction and use within tlie City of warehouses larger than 15,000 square feet; aiid, WHF,REAS, pursuant to California Government Code Section 65854, the Plannii'ig Commission duly noticed a public hearing on March 5, 2024, to deterinine wliether the Planning Commission should adopt a resolution recommending that the City Council amend Section 11,21,030 of the South Gate Municipal Code to remove footnote 18 from Table H.21-3 and to remove footnote 11 from Table 11.21-4. At the request of the Applicant, the public hearing was not opened on March 5, 2024 and the item was moved to the Planning Commission hearing of April 16, 2024; and,
WHEREAS, at the April 16, 2024 public hearing, after listening to testimony of persons attending the hearii'xg, and receiving other inforniation from members of the City's Commuiffty Development Department, a majority of the Planning Commissioners have determined that they need more information as to the possible impacts of such an amenent to the Mrinicipal Code before the Plaruffng Commission can make such a recommendation;

NOW, THEREFORE, THE PLANNING COMMISSION OF THF, CITY OF SOUTH GATE, CALIFORNIA, HEREBY RESOLVF,S AS FOLLOWS:

SECTION 1. The Planning Commission finds that all of the facts set forth in the Recitals of this Resolution are true and correct.

SECTION 2. The Planning Commission hereby finds and determines that a request by tlie Planning Commission for the members of the City's Cominunity Development Department to obtain and provide additional information to the Planning Commission as to the possible effects 1 AS13772.0860893 4874-0041-]304vl
95 of revising Section l 1.21.030 of the South Gate Municipal Code to reniove the footnotes from the tables as discussed above would be exempt from tlie requirements of the California Environment Quality Act ("CEQA"), under the Class 6 categorical exemption provided by 14 CCR ell5306, and would also be exempt from CEQA under the statutory exemption for Feasibility and Planning Studies provided by 14 CCR e) 15262.

SECTION 3. Tlie Planning Commission hereby instructs the staff of the Community Development Department to return to the Commission at a date in the near future with an analysis of (i) the benefits and detriments of modifying or eliminating the restrictions on warehouse size and location imposed by footnote 18 of Table 11.21-3 and footnote 11 from Table 11.21-4 of Section 11.21.030 of the South Gate Municipal Code, aiid (ii) whether additionaI development standards or operating ptactices should be imposed in comiection with the construction aiid operation of larger warehouses,
SECTION 4. Tlie Secretary of the Planning Comission shall certify to the adoption of this Resolution.

This recommendation was adopted by the foliowing vote at the Planning Commission meeting of April 16, 2024.

AYES:

NOES:

ABSENT:

NOT VOTING:

APPROVF,D and ADOPTED this 16"l day of April, 2024.

Secretaty
City Planning Commission
APPROVED:

Jirnrny Ozaeta
Chairperson
City Planiiing Cottnission
2 AS13772.0860893 4874-0041-1304vl
96 Attachment E
CUDAHY.e-
OI[N MINDS, 01)EN DOO9S
Incorporated November I0, 1960
5220 Santa Ana Street
Cudahy, CA 90201
Phone: (323) 773-5143
Fax: (323) 771-2072
www.cityofcudahy.com
Mayor
lots It GonitTgz
Vlis IVIQor
Fllubalh Altanfar
Counillmeniber
Daliy komell
Couhillnnambai
Mgrlln ti, Fuentas
€ ounillmembei
(.nthle Gonialaz, Ed.0
aty ManaBsl
Affonia Nsvela, IcMA.cM
April 16, 2024
City of South Gate
Community Development Depattment
8650 California Ayenue
South Gate, CA 90280
RE: PLANNING COMMISSION APRIL 16, 2024 MEETING - ITEM #2 To Whom it May Concern:

This letter is submitted by the City of Cudahy (Cudaliy) in response to Item #2 of the April 16, 2024 Plaiming Commission agenda which contains two resolutions that propose to either (I) remove a size restriction for warehouses in Chapter l 1.21 of the South Gate Municipal Code ("SGMC") through the adoption of an ordinance (Resotution No. 2024- 02A); or (2) direct staff to study the issue further (Resolution No. 2024-02B). The adoption of Resolution No, 2024-02A would recommend to the City Council the adoption of a proposed ordinance that would eliminate the size limitations in the City's Urban Mixed Use Zones and Commercial Industrial Zones. This would include:
* Light Manufacturing (M2) Zone
* Heavy Manufacturing (M3) Zone
* Industrial Flex (IF) Zone
The proposed ordinance is inconsistent with the City's General Plan which aims to reduce, limit, and even phase out industrial uses withiii the City in order to provide more diverse job opportunities azid create more vibrant comtnunities that present opportunities for more open space, recreation, and pedestrian activity. Additionally, the proposed ordinance would increase the reasonably foreseeable environmental impacts (noise, vibration, air pollutioii, high levels of truck traffic) associated with warehousing and distribution uses, which have not been analyzed pursuant to CEQA.

I. Inconsistency with the General Plan
Page ) 1
97 The proposed ordinance is inconsistent witli the General Plan, inclusive of the Community Design Element which recognizes that "the City has a large number of industrial uses [and] there is a lack of a diversity of other job-producing uses, namely office and research and development uses [that] could help diversify the economy and advance the economic position of city residerits,'
In order to provide a higher diversity of employment opportunities, the General Plan also seeks to transfortn the City's "wide variety of industrial, warehouse and distribution areas,..to alIow for higher intensity, job producing uses. Desired new uses include an expansion of the light industrial/flex condomiiiium-style development that builds on and supports the boutique fabrication industry cuirently present in the City, office uses and research and development uses[]"2 but does not support the proliferation of warehousing uses.

A. General Plan Neigliborhood Designation
Several of the City's Commercial Industrial and Urban Mixed Use Zones, as shown in Figurel, below are also designated in the General Plan as Neighborhood Overlay Corridors. "The General PLan seeks to transfottn Corridors from the features that divide tlie community into areas that bring people together, Corridors should be attractive, contain a diverse inix of uses - including residential uses than currently exist - provide safe travel for pedest'rians, bicycles, transit veMcles and automobiles, and enable people and goods to circulate with relative ease."' Figure 1. Neighborhood Overlay Corridors3
' City OfSOutll Gate, General Pltin 2035 - Community Design Element ("Comttumity Design Element), p. 48. 2 Community Design Element, p. 52.
3 Community Design Element, p. 59.

Page2
98 By allowing warehouses to enjoy an unlimited size, the negative impacts associated with warehousing uses would proliferate, intensify, and would discourage a diversity of uses citywide, B. General Plan Place/Type Intensity Limitations for Manufacturtng/Distriliutxon The General Plan's Manufacturirig/Distribution Place/Type designation permits large- scale warehouse, distribution and logistics facilities, but limits the intensity of such uses up to 2,0 FAR, and up to four stories. Allowing an unliinited size for warehouses would be contrary to the City's own General Plan.

C. A1:iplicable General Plan Policies
The proposed ordinance would also be inconsistent with the following General Plan objectives, goals, and policies:
* ObjectiveCD2.4:Providelandforadiversityofjobproducingusesthroughoutthe City.
o P,3 : The City should not greatly expand the amount of land for Manufacturing/Distribufion uses. Existiiig manufacturing and distribution uses may remain in their current locations and configurations, and may expand their current operations.
* Objective CD 8.4: Reduce the impact of Manufacturing/Distribution and Light Industrial/Flex businesses on adjoining land uses,
o P.I : Neighborhoods should be protected from incompatible non-residential uses and disruptive traffic and other noise generating uses to the greatest extent feasible.
o P,2: The consideration and mitigation of noise, light, vehicular and other impact on residential properties will be considered when Manufacturing/Distribution or Light Industrial/Flex are proposed.
o P.3:Existing)non-conformingindustrialusesshouldbephasedoutduringthe course of the General Plan.
o P,4: The City will not permit existing, non-conforming industrial uses to significantly expand their facilities except to rectify building code violations and maintain the appearance of the building.
o P.5: Industrial uses should be regulated to minimize smoke, pollution, glare, excessive noise and other adverse impact on employees and on adjoining uses and areas.
o P.9: The City will limit the development of iridustrial and other uses that use, store, produce or transport toxic substances, generate unacceptable levels of noise or air pollution, or produce other pollutants. The City will require adequate mitigation measures, confirmed by environmental review and monitoring, for all such uses that are developed.
n. Failure to Comply wit}i CEQA's Requirements
Page l 3
99 CEQA requires an analysis of a project's reasonably foreseeabIe direct and indirect environmental impacts, Staff's analysis and conclusions regarding the determination that Resolution No, 2024-02A does not constitute a "project" pursuant to CEQA is incorrect as a matter of.law and as a matter of fact, Staff conctudes that an "amendment of a zoning code ordiiiance only constitutes a 'project' under CBQA if it has tl'ie potential for resulting in direct and indirect physical changes to the environment, per 14 CCR § 15378," In fact, zoning ordinances are within CBQA's purview when they have a reasonably foreseeable direct or indirect physical change to the environment." As discussed in further detail below, the proposed ordinance constitutes a "project" for the purposes of CEQA.

Zoning ordiriances are subject to the tlireshold question of whether the City's proposed action would have a reasonably foreseeable indirect physical change in the environment." While Resolutiorx No. 2024-02A concludes that "even if [the proposed ordinance] were deemed a project, it has no potential for causing a significant effect[,]" the statement is not supported by any evidence in the record, By staffs owri analysis, tlie removal of the size requirement for warehouses would "undoubtedly lead to the construction of warehouses in the City which are much larger than those currently found in the City. Without further study or other limitations, Staff is unable to predict or advise the Commission as to - the effects sucl'i larger warehouses might have on traffic, infrastructure, noise and other matters important to residents of the City."6 This statement directly contradicts its own conclusion. The City must analyze these reasonably foreseeable impacts which are also well documented.

The City's own General Plan recognizes the negative impacts associated with industria} uses, including:
* close proximity of industrial uses to some residential areas; 7 a locations where industrial uses are located on parcels designated for residential uses;8 * buildings that are ii disrepair;9
* highlevelsoftrucktrafflconCitystreets;lo
* heavy truck traffic;"
* noise; "
* air pollution;13
4 Pub. Res. Code §0 21065, 21080; see also CEQA Guidelines e) 15378(a%l) Pub. Res. Code § 21065; Union of Medicai Marfiuana Patients, Inc. v City ofSan Diego (2019) 7 Cal.5th 1171, )198 ("UMMP 6 City of South Gate, Planning Cornrnission StaffReport ("Staff Repoit"), p. 3 (Aprill6, 2024) A.vailable at: a9f33bcO-4d60- 47aC5ol [-ndn9u4n-.16:2DfeasfclgOnf2E61ee-m4be9n0,2pe.7408-9bac-4ebO-a842-ccbdf6are394-1712679909.pdf (d3n9y02taazwpg.cloudfront.net 'o Community Design Element, p. 48.

Community Design Element, p. 76.
'2 Corninunity Design Element, p. 76.

Community Design Elemen% p. 76.

Pa@el4
100
o iridirect impacts from high leveIs of traffic, including air pollution, roadway congestion, damage to infrastructure, and negative healtli impacts!4 Such impacts would be felt throughout the City arid by residents who live directly north of a Iarge warehousing project proposed at 5037 Patata Street, The fact that any subsequent pro'jects would be subject to a conditional use permit is irreievant, In UM)a v. Ban Die@, the court held it is eriough for the activity to be "capable of causi'ng a direct or reasonably foreseeable indirectphysical change in the environment [without regard to] the specific circiunstances in which tlie proposed activity will be qatried out."15 Similar to the facts before you today, in UMMP v. Sari Diego, staff concluded that a zog ordinance that reguLated caiuiabis activities was exempt from CEQA because subsequent site- specific projects would be subject to a conditional use permit and irppacts would be eval:uated on a case-by-case basis,16 Similarly, staff's analysis for Resolution 2024-02A states that it is riot subject to CEQA because "it does not exempt future warehouse projects from Conditiorial Use Permits and CEQA compliance requirements-"17 The court has rejected such conclusory statemettts when they are not supported by substantial evidence, ruling ffiat "a local agency 'catmot argue' that approval a regulation is not a project 'merely because further decisions must be made= before the activities directly causing en*onmentat change will oceur...[mxd the proposeid regulationl requires the City to treat it as a project and proceed with the next steps of the CEQA analysis."18 The City has not conducted any environmental analysis pursuaiit to CEQA, and such analysis must be completed prior to adopting any such ordinance. nI. Conclusion
We urge the Planning Commission to reject both resolutions on the premise that both proposals are inconsistent with the City! General Plan. Fuither, the proposed ordinance that would eliminate size restrictions for warehouses would violate CEQA's requirements without any further review.

Sincetely,

CITY OF CUDAHY
unity Development Director
'4 City of SouthGate, General Plan 2035 - Economic DevelopmentElement ("Economic Development Element"), p. 223. '5 Id. at p. 1197.
16 Jd. at p. 1200.
'7 Staff Report, p. 2.
18 1,1,
Pagel5
101
cc: Alfonso Noyola, City Manager, City of Cudahy HonoraL+le Daisy Lomeli, Council Member, City of Cudahy Honorable Jose R. Gonzalez, Mayor, City of Cudal'iy Honorable Elizabeth Alcantar, Vice Mayor, City of Cudahy Honorable Martin U. Fuentes, Council Member, City of Cudahy Honorable Ed. Cynthia Gonzalez, Council Member, City of Cudaliy Stephanie Arechiga, City Atl:orney, City of Cudahy Cecilia Madrigal-Gonzalez, SeniorPlanner, City of Cudahy Honorable Maria del Pilar Avalos, Mayor, City of Soutli Gate Honorable Gil Hurtado, Vice Mayor, City of South Gate
Honorable Maria Davila, CounciI Member, City of South Gate Honorable Al Rios, Council Member, City of South Gate I-Ionorable Joshua Baron, Council Member, City of South Gate Jimmy Ozaeta, Cl'iairperson, South Gate Planning Commission Jovanna laborin, Vice Chairperson, South Gate Planning Commission Ivy Duaite, Coirunissioner, South Gate Planning Commission Jose Delgado, Commissioner, South Gate Planning Commission Daisy Prieto, Commissioner, South Gate Planning Cominissioii Rob Houston, City Manager, City of South Gate
Raul Salinas, City Attorney, City of South Gate
Meredith Elguira, Community Development Director, City of South Gate Pa @e l 6
102
Esther Washinpton
From:

Sent:

To:

Subject:

Mario Dominguez, Jr. <majorblood80@gmailcom>
Monday, April '] 5, 2024 5:49 AM
Meredith Eiguira; Esther Washington
Fwd: Public Comment For April 1 6th 2024 P(anning Commission Meeting This message is from an EXTERNAL SENDER - be CAUTIOUS, particularly with links and attachments I made the mistake OT typing up an emait With my pub[iC comment far item 2 0f Tuesday's Ptanning Commission meeting. with my captaincaveman emaiL. So ['m now sending it to you with my majorbtood email. Please read the message below. ---------- Forwarded message -=------
From: Mario Dominguez, jr. <capl'aincavemanl [email protected]> Date: Mon, Apr 15, 2024 at 5:35 AM
subjeCt: FWd: Pub[iC Comment FOr April i 6th 2024 Planning Commission Meeting To: <majorblood80(a)gmaiL.com>
It RObert "Mr. MuSSOlini" MOntalVO ShOWS up at the Planning Commission meeting, I askthatyou please read thiS emait duringthe pubtiC comment portion for item 2. 'Mr. Mussolini" put a restraining order against me. So if he's present forthe meeting. That means I'l[ have to (eave. Yeah, I don't want to risk getting arrested or being caught forvioLating the restraining orde2udgement against me. Nowl'm paranoid that the bastard will ratfuck me again. Thankyou. -------- Forwarded message ---------
From: Mario Dominguez, Jr. <captaincavemanl [email protected]> Date: Mon, Apr3 5, 2024 at 5:29 AM
Subject: Public Comment ForApriL 1 6th 2024 PLanning Commission Meeting TO: Meredith Elguirs <melguira(a)sogate.org>, <ewashington(a)sogate.org> ltem2: laskthattheCommissionersvotenoonthetworesolutionsbeingpresentedforitem2.There'sareasonwhycitieshaveaZoning Code and a General Plan. Theyserve as a safeguard to keep certain areas of a cityFrom being overdeveloped. Nowyou are being asked by theme developers tO Jiff theSe restrictions SO they Can 5ui[d whatever theywant at ttiiS particular 10catiOn. Never mind the impact that their facilitywi[L have on us the residents who Live here- Your decision on this item wilt have a direct impact on everyone who Lives in this city. 1 103
Think of the future of our town. What sort of future do you want us to have? Do you want us to have more traffic and longer travel timesgetting in and Out Of Our City? DO 70u Want US tO haVe more WaVeS Of cargo truCkS coming On and Off Of the 710 Freeway? The reason Wh'yth € Se developers Want thiS particular location i8 because Of the CtOSe proXim?ty tO the 710 Freeway. It's a StOne'S thrOW awaYfrom Wheretheir operation WOu(d be built. ThiS location WOutd giVe them immediate aCCeSS tO a major freeway. Unless these developers are Willing tOmodify their designs and adhere to our city's Zoning Codes, I see no reason for you aLL to move forward with this item. You all need to askyourseLves, what sort of city do you want to Live in? Again, what sort of future do you want your cityto have? I think our city's future can WithStand net haVingthiS faCilit7 0r buSineSS in it. But that'S juSt me. Rememberi OLlr tOWn iS 100 S]earS Odd. And We're doing Oka'd. I urge 70uaLL to reject this item and vote no. Thanks for listening. 2 104
Attachment F
AllenMatkins
Via Hand Delivery
April 23, 2024
City of South Gate
Attn: Yodit Glaze, City Clerk
8650 California Avenue
South Gate, CA 90280
Allen Matkins Leck Gamble Mallory & Natsis LLP
Attomeys at Iaw
2010 Main Street, 8" FlooriInine, CA 92614-7214
Telephone: 949.553.l313i Facsimile: 949.553.8354
www.allenmatkins.com
Paige H. Gosney
E-mail: [email protected]
DirectDial: 949.851.5444 FileNumber: 390939.00003/4868-8653-1767.1 Re: Notice of Appeal of Planning Commission Denial of Resolution No. 2024-02A (Mun. Code, § 11.50.040)
Ms. Glaze:

This firm represents South Gate Owner, L.P. ("Owner") in connection with its ownership and development of the approximate 27.1 acre property ("Property") located at 5037 Patata Street in the City of South Gate ("City"). The Property was formerly occupied by Armstrong World Industries and utilized the 240,000 square-foot ("SF") building for the manufacture and production of residential and commercial linoleum floor tiles and resilient flooring which involved the use of asbestos and other chemicals that led to significant contamination on the Property. In coordination with the Department of Toxic Substances and Controls ("DTSC"), Owner has spent significant time and resources remediating the polluted and abandoned Property to eliminate the prior hazardous conditions and enable its redevelopment for the proposed Project.

Owner is in the process of entitling the Property for development of a proposed 435,420 SF regional headquarters and distribution facility and an approximately 12,777 square foot truck maintenance building ("Project") to be leased to Anheuser-Busch. The Project, which will be constnicted to LEED-Gold standards with roof-top solar panels and extensive EV-charging infrastnicture and operational capacity, is anticipated to introduce over 250-300 high-paying jobs and will generate significant revenue for the City among other substantial public benefits set forth in the Project's Development Agreement, such as $250,000.00 for off-site roadway improvements.

The City's Zoning Code authorizes the Project's uses, subject to issuance of a conditional use permit ("CUP") and compliance with other applicable City development standards and regulations. (Tables I 1.21-3; 11.21-4.) However one development standard which caru'iot be met is a 15,000 square-foot ("SF") size limitation on new industrial warehouse uses located in the City's Urban Mixed-Use and Commercial Industrial Zones, including the M3 (Heavy Industrial) zone governing the Property. (Id., at footnotes 18, and 11, respectively.) The 15,000 SF cap would Los Arigeles i Orange County i Sun Diego i Century City San Francisco New York 105
Allen Matkins Leck Gamble Mallory & Natsis LLP
Attorneys at Law
City of South Gate
April 23, 2024

Page 2 ends

effectively prohibit the Project (and all of the revenue and community benefits that it would bring to the City) as well as preclude all other warehouse facilities capable of meeting the needs of the current industrial market. Owner's brokers have stated that there is limited demand for facilities under 15,000 SF and these facilities generate very few jobs, community and economic benefits.

On April 16, 2024, the City Planning Commission considered the adoption of Resolution No. 2024-02A (the "Resolution") which would amend the City's Zoning Code to remove the 15,000 SF limitation on new warehouse uses in the City. The Agenda Bill prepared by City Staff recommended denial of the Resolution based upon, among other things, the unfounded and inaccurate statement that elimination of the 15,000 SF cap "will undoubtedly lead to the constniction of warehouses in the City which are much larger than those currently found in the City." (April 16, 2024, Agenda Bill, p. 3.) After considering public testimony from Owner and other local business owners in support of the Resolution, the Planning Comtnission voted 3-2 to adopt Staff's recommendation and deny the Resolution.

In accordance with Section 11.50.040 of the City's Zoning Code, the purpose of this letter is to formally appeal the Planning Commission's action denying the Resolution to the City Council.l The Planning Cornrnission's denial of the Resolution should be vacated and overturned by the City Council for the following reasons, which Owner reserves the right to supplement and/or amend prior to or during the subsequent public hearing on the matter.

1. The Adoption of the Resolution and Removal of the 15,000 SF Cap Will Increase The City's Flexibility to Consider New and Renovated Logistics and Warehouse Projects.

Contrary to the statements and commentary provided by City Staff and members of the Planning Commission at the April 16, 2024, meeting, the adoption of the Resolution and elimination of the 15,000 SF cap on new warehouse uses would increase the City's flexibility and discretion to consider potential new warehouse developments. The scope of new warehouse developments would include proposals to renovate and modernize existing, outdated warehouse facilities that are no longer capable of meeting the needs of the modern industrial sector and thereby enable the City to "keep up" with the evolving commercial and industrial market. This increased flexibility will ensure that the City retains a vibrant and robust, revenue-generating commercial and industrial market that is anchored by facilities, such as the Project, that incorporate the most up-to- date EV-charging and solar energy infrastnicture and are constnicted pursuant to the most-stringent environmental building standards, such as LEED Gold certification.

Under the current Zoning Code, the City does not even have the ability to consider new industrial projects involving a warehouse use that exceeds 15,000 SF. As a result, the City is deprived of the opportunity to weigh all of the significant monetary and community benefits (increased propcrty tax revenue, off-site public infrastnicture and improvements, Development Enclosed please fu'id a check for $2,364.00 as payment for the appeal fee. 106
Allen Matkins Leck Gamble Mallory & Natsis LLP
Attorneys at Law
City of South Gate
April 23, 2024

Page 3 ends

Agreement public benefits, point-of-sale revenue, trickle-down benefits to local restaurants and retail businesses that would be patronized by employees and customers of the projects, etc.) that would flow from the approval of such projects against the potential and/or perceived adverse impacts. In doing so, the Planning Commission and/or City Council would be able to make an informed decision regarding whether the proposed project is in the best interests of the City.

Thus, the adoption of the Resolution and amendment of the Zoning Code to remove the 15,000 SF cap for new industrial warehouses would actually empower City legislators and Planning Staff to be more actively involved in determining - and implementing - the preferred long-term vision for the City. As of now, the City is handcuffed in its ability to decide the types of development that will ultimately be of greatest use and benefit to City residents and the local business cornrnunity.

2. The City Will Retain Discretion to Evaluate the Benefits and Potential Impacts of New Warehouse Uses on a Project-By-Project Basis Pursuant to the Current CUP Approval and Appeal and CEQA Environmental Review Processes.

As noted above, the Agenda Bill and verbal presentation by City Staff at the April 16, 2024, meeting included the false declaration that removal of the 15,000 SF size limitation on new warehouse facilities would "tmdoubtedly" lead to the proliferation of new, significantly larger industrial warehouse facilities in the City. The implication of this patently incorrect and unfounded statement is that adoption of the Resolution would somehow "open the floodgates" to new industrial warehouses that would proliferate throughout the City and that City Staff and legislators, including the Planning Commission and City Council, would have no ability to regulate, condition or deny such projects. This implication is completely false and incorrect.

First, all new proposed warehouse uses would require the approval and issuance of a CUP.

A CUP is a discretionary permit that "may only be approved by the planning comtnission or city council in accordance with applicable zone requirements and in compliarice with [the Zoning Coded." (Mun. Code, § 11.52.020.) In order to grant a CUP, the Planning Commission and/or City Council is required to make certain mandatory findings, including that: (i) approval of the C{JP is consistent with and will not adversely affect the City's Zoning Code and General Plan; (ii) the design of the proposed development and permit conditions are "compatible with the existing and future land uses of the applicable zone"; and (iii) approval of the C{JP "would not result in detrimental impacts to adjacent properties or to the character or function of the neighborhood." (Mun. Code, § 11.52.030.) Subject to these findings, the City Planning Commission and/or City Council have the sole and exclusive discretion to approve, approve subject to certain conditions and requirements, or deny a proposed warehouse project. While having the discretion to deny uses which could be considered to be detrimental to adjacent properties, the City also is empowered, through the CUP process, to impose conditions of approval on the Project to address the impacts of warehouse projects.
107
Allen Matkins Leck Gamble Mallory & Natsis LLP
Attomeys at Law
City of South Gate
April 23, 2024

Page 4 ends

In addition, all discretionary projects, such as those requiring C{JPs, are subject to environmental review under the California Environmental Quality Act (Pub. Resources Code, §§ 21000, et seq.) ("CEQA") except for those that qualify for a categorical exemption. (Pub.

Resources Code, § 21080(a).) The level of environmental review under CEQA generally depends on, among other things, the exact nature of the project being proposed, whether the Site will be developed in phases or as a single project, and whether the lead agency detertnines that an Environmental Impact Report ("EIR") is required rather than a mitigated negative declaration ("MND") or exemption. Ultimately, the lead agency - which in this case would be the City - makes the final determination about whether an MND, EIR, or exemption will be required for a project.

The CEQA environmental review process - via an A4ND or EIR - is rigorous, thorough and involves a comprehensive analysis of all of a project's potential environmental impacts, including traffic, air quality, greenhouse gas, noise, aesthetics, land use, water and other impact areas, as well as suggesting mitigation measures that can be imposed to help reduce or eliminate any impacts that are found to be significant. As with the C{JP process, and as a second level of review and "check" on future warehouse development, the City Planning Commission and/or City Council retain absolute discretion to approve or deny a proposed warehouse project based upon its potential adverse environmental impacts.

Finally, in the event that a warehouse project is approved by the Planning Commission and involves some level of public controversy or concern, there is a third level of discretion and review in that the Planning Cornrnission's action approving the subject project can be appealed by any interested party or "opponent" to the City Council. (Mun. Code, § 11.50.040.) The appeal will be heard by the City Council at a noticed public hearing during which the City Council has exclusive discretion to affirm the Plaru'iing Commission's decision, reject or overrule the decision, or impose fiuther conditions on the pro'3ect beyond those imposed by the Planning Commission in granting the original CUP approval. (Mun. Code, §§ 11.50.040; 11.52.040(C)-(E).) Thus, contrary to the statements and representations by City Staff and in the April 16, 2024, Agenda Bill, the approval of the Resolution and removal of the 15,000 SF cap would result in no loss or reduction in the City's discretion to consider and approve or deny future warehouse projects or otherwise cause an unchecked or unregulated proliferation of massive new warehouse projects in the City. The City - and the City alone - retains the discretion to determine what industrial projects over 15,000 SF get approved (if any) and under what conditions or restrictions. As noted above, the adoption of the Resolution and removal of the 15,000 SF size limitation would have the effect of increasing the Planning Commission's and City Council's flexibility and opportunity to determine the scope of new warehouse development in the City. 108
Allen Matkins Leck Gamble Mallory & Natsis LLP
Attomeys at Law
City of South Gate
April 23, 2024

Page 5 ends

3. Conclusion.

Based upon the foregoing, and any additional documents, information and evidence that may be further presented at or before the scheduled public hearing on this appeal, Owner respectfully requests that the City Council vacate and overturn the Planning Commission's April 16, 2024, denial and approve the Resolution in its entirety.

Please contact us if you have any questions or wish to discuss this matter in further detail. truly y urs,
PHG
Enclosure
cc: Craig Hardwick, City Attorney (via e-mail only w/o Encl.) Rob Houston, City Manager (via e-mail only w/o Encl.) Client (via e-mail only w/o Encl.)
109
Office of the
South Gate City Clerk
Item No. 4
MAY 2 0 2024
FILED

51.'Tht't'-
City of South Gate

CITY COUNCIL
AGENJDA aT[LL
Department Head:

For the Regular Meeting of: May 28, 2024
Ori a Department: Public Works
Cervantes Rob Houston
SUBJECT: ORDINANCE GRANTING A FRANCHISE AGREEMENT TO TESORO

SOCAL PIPELINE COMPANY, LLC
PURPOSE: The City regulates utility companies that have facilities that occupy the City's public right-of-way through franchise agreements. Tesoro SoCal Pipeline Company, LLC., ("Tesoro SoCal") is seeking renewal of a 10-year franchise for two existing pipelines known as Pipeline No. 034 and 080 ("Pipelines"), which was previously covered under Ordinance No. 2020-01-CC. Ordinance No. 2024-23-CC was introduced during the City Council Meeting of May 14, 2023. Adoption of Ordinance No. 2024-23-CC is the last action needed for the City Council to renew the franchise agreement.

RECOMMENDED ACTIONS: The City Council will consider:
a. Adopting Ordinance No. 2024-23-CC granting a ten-year franchise from February 27, 2024, through and including February 26, 2034, to Tesoro SoCal Pipeline Company, LLC., to use, maintain, repair and replace a single pipeline beneath specified public streets, together with related appurtenances, for transmitting and distributing oil and oil products, within the City; and
b. Appropriating $23,208 in additional franchise fees to the General Fund revenue estimates for FY 2024/25 and $10,470 plus consumer price index increase, aru'iually, thereafter.

FISCAL IMPACT: If the City Council adopts the Ordinance granting the franchise agreement, Tesoro SoCal will pay the City a one-time granting fee and annual fees, as summarized below.

Fees Granting Fee Total
Year l $10,265 $12,943 $23,208
Year 2 to 10 $10,470 *$102,134
Total $112,399 $12,943 $125,342
* Assumes an annual CPI increase of 2'/o.

There will be an increase in revenue. The annual amount received under the previous franchise agreement was $4,000 average per year for a grand total of $31,659 including the Granting Fee. 1 110
Negotiations have increased that amount to $10,265 per year plus an annual CPI increase for a total estimated revenue of $125,342 inclusive of a CPI increase and granting fee.

The granting fee is consistent with Section 13.10.010 (Rates - General), of Chapter 13.10 (Compensation), Division 1(Oil, Gas, and Water Pipelines), of Title 13 (Franchises) of the South Gate Municipal Code. The annual rate is set in compliance with California Public Utilities Code 6231.5 subsection (e)(2), which applies to utility pipelines that are not publicly owned. It authorizes an annual franchise fee in an amount agreed to by the applicant and the municipality, or an aru'iual franchise fee computed by multiplying the sum of one-half of the nominal internal diameter of the pipe, expressed in inches, by the number of lineal feet of the pipe within the public streets, ways, alleys, or other public places within the municipality.

NOTICING PROCEDURES: Before the City Council can grant a Franchise Agreement, California Public Utility Code Sections 6232 et seq. requires a public hearing. A public hearing notice was duly published in The Los Angeles Wave, a newspaper of general circulation on April 25, 2024.

ANALYSIS: The City regulates utility companies that have facilities that occupy the public right-of-way through franchise agreements. The City's 5-year franchise with Tesoro SoCal for the Pipelines expired on February 26, 2024. Tesoro SoCal is requesting renewal of the franchise for the Pipelines which was granted under Ordinance No. 2020-01-CC. Before the City can award a franchise, the California Public Utility Code Section 6232 et seq., requires the City Council to adopt an ordinance granting the franchise agreement.

The proposed Franchise Agreement is identical to the current Franchise Agreement with the exception of its effective period, term, and fees. Highlights of the proposed Franchise Agreement include:
* Covers Pipeline Nos. 034 and 080.
* A 10-year term from February 27, 2024, to February 26, 2034. * Terms and conditions which are in accordance with California Public Utilities Code Section 6201 and Ordinance.
* Pipeline maintenance in accordance with all city, county, state, and federal ordinances, statutes, rules, regulations, and other laws.
* Establishing liability insurance, bond, and indemnity requirements. * Setting the franchise payment, and the rules and requirements under which the TPC franchise will be required to operate.
* Providing an emergency response plan meeting the requirements of federal and state law.

The plan must be comprehensive and provide a 24-hour notification program and emergency response services, including traffic control, street excavation, pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem. It also requires repairs of public streets, alleys, or parkways within seventy-two (72) hours.
2 111
The Pipelines carry gasoline and diesel products, and are the only pipelines owned by Tesoro SoCal within the City. The Pipelines are located within 500 feet of the residential and school zones. The safety standard referenced in the Franchise Agreement requires the operation of the Pipelines in accordance with Government Code Section 51010. Under this code, the State Fire Marshall exercises exclusive safety regulatory and enforcement authority over hazardous liquid pipelines and may implement the federal Hazardous Liquid Pipeline Safety Act (49 U.S.C. Sec. 2001 et seq.) and federal pipeline safety regulations, as necessary to obtain annual federal certification. Thus, the Pipelines must be used, operated, repaired, or modified in accordance with the safety regulations set by the California State Fire Marshal, further, and/or Chief of Los Angeles Fire Department in accordance with Chapter 13.14 (Special Provisions for Oil Pipelines), Division 1 (Oil, Gas and Water Pipelines), of Title 13 (Franchises) of the South Gate Municipal Code. The State Fire Marshal is further required to aru'iually inspect the Pipelines to ensure compliance with laws and regulations. Tesoro SoCal is required to submit certified test results for the pipelines subject to the provision of the Pipeline Safety Act of 1981.

BACKGROUND: Tesoro SoCal currently operates two underground pipelines to transport petroleum products beneath Southern Avenue and Garfield Avenue which have been in place since 1999 under ownership by several different oil and pipeline companies: one is a 2,624 foot long, 8-inch diameter pipeline located beneath Southern Avenue and Garfield Avenue ("Pipeline No. 034"); and the other is a 12,952 foot long, 12-inch diameter pipeline located beneath Garfield Avenue and Miller Way ending at the Vinvale Terminal located at 8601 Garfield Avenue ("Pipeline No. 080"). The Pipelines carry gasoline and diesel products.

The most recent franchise, Ordinance No. 2020-01-CC, was adopted by the City Council on August 26, 2019, and expired on February 26, 2024. Tesoro SoCal has requested that the franchise for the Pipelines be renewed however for a 10-year term. South Gate Municipal Code, Section 13.08.010, allows the term of the franchise to be twenty-five years. To better manage pipelines within the City, it is the practice of the City to issue franchises on a ten-year term basis in order to ensure the pipelines are well maintained. The proposed Resolution will extend the term of the franchise for an additional ten years, commencing retroactively on February 27, 2024, and expiring on February 26, 2034. Adaption of the proposed ordinance is the last of three actions required by the City Council to renew the franchise.

The schedule for issuing the Franchise Agreement is as follows:

Action Description Date
l Adopted a Resolution declaring the intention to grant a franchise to Tesoro SoCal.
4/9/2024
2 Conducted a public hearing and introduce an ordinance granting a ten- year franchise to Tesoro SoCal. At the conclusion of the public hearing, the City Council may overrule, deny, or deem insufficient any oral or written protests, and may then grant the franchise. 5/1 4/2024
3 Adopt the Ordinance (franchise) 5/28/2024
3 112
Renewal of the Franchise Agreement is recommended for the reasons following:
* Granting the Franchise Agreement to Tesoro SoCal will automatically bestow rights upon the City and create obligations that must be performed by Tesoro SoCal for the benefit of the City, pursuant to Article 4 (Public Utilities Code §§ 6291 through 6302) of California's Franchise Act of 1937, including the following:
o The City shall have the right to terminate the franchise and/or sue TPC for any failure to properly perform Tesoro SoCal's obligations under the franchise. o Requires Tesoro SoCal to comply with ordinances and policies adopted by the City Council relative to the location and maintenance of the Pipeline and any appurtenances.
o Provides compensation to the City for the cost of any repairs to public property made necessary by Tesoro SoCal's operations under the franchise. o Requires Tesoro SoCal to indemnify and defend the City from and against damages resulting from TCP's operations under the franchise. o Obligates Tesoro SoCal, at its expense, to remove and relocate the Pipeline where necessary due to changes of grade, alignment, or width of public streets. o Obligates Tesoro SoCal to notify the City upon any sale, transfer, assignment or lease of the franchise or any rights granted thereunder o Requires Tesoro SoCal to provide a corporate surety bond, savings and loan certificates or shares which the City can use as liquidated damages should TPC fail to fulfill the Franchise Agreement requirements. * As noted above, the Franchise Agreement requires 2020-01-CC to file annual reports with the City confirming the maintenance and operation of the Pipeline is in compliance with federal and state law. Tesoro SoCal has been conducting inspections and testing of the Pipelines using advanced inspection technologies and other best management practices. Evidence available to the City indicates that the Pipelines have been properly maintained by Tesoro SoCal.
o The California Government Code (Section 51010) authorizes the State Fire Marshall to inspect the pipelines. Staff communicated with the Division Chief of the Office of the State Fire Marshall on February 12, 2024. o According to the State Fire Marshall, Tesoro SoCal "has been performing maintenance and inspections of the Pipelines pursuant to the California Safety Act and U.S. Code of Federal Regulations (CFR). Pursuant to CFR, a pipeline operator must inspect its pipeline at intervals of not to exceed five years. Line 034 was hydrostatically inspected on October 19 and 21, 2022, Line 080 was internally inspected on May 16, 2022, to May 20, 2022, and the Pipelines are in compliance with the requirements set forth by the Federal Department of Transportation Requirements."
o Tesoro SoCal received a warning letter from Cal Fire on February 9, 2024, regarding incompliance of control and alarm room management. Cal Fire, along with the Pipeline and Hazardous Materials Safety Administration (PHMSA) 4 113
performed the inspection. City staff have determined that this is a minor issue as 4/9/20 Tesoro is aware and has already begun taking the necessary action to resolve the issue.
o Most recently on March 11, 2024, Tesoro SoCal received a Notice of Violation from the Los Angeles Regional Water Quality Control Board for failure to develop a complete storm water pollution prevention plan. City staff has discussed this notice with Tesoro SoCal and has received assurances that Tesoro SoCal began taking the necessary action to resolve this violation. @ The granting fee and annual fees will be paid to the City if the proposed franchise agreement is approved.

Compliance with CEQA: The Pipelines are determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines. Section 15301 provides for exemption of the proposed pipeline franchise, because the project consists of the operation of existing facilities, involving negligible or no expansion of an existing use.

ATT ACHMENTS:

KT:lc
Proposed Ordinance
Notice of Public Hearing
Ordinance No. 2020-01-CC
Letter :trom the Office of State Fire Marshall
Location Map
5 114
Attachment A
ORDINANCE NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE,

CALIFORNIA, GRANTING A TEN-YEAR FRANCHISE RENEWAL TO

TESORO SOCAL PIPELINE COMPANY LLC, TO LAY AND USE PIPES,

DITCHES, FLUMES, CONDUITS AND APPURTENANCES FOR

TRANSMITTING AND DISTRIBUTING OIL OR PRODUCTS THEREOF,

FOR ANY AND ALL PURPOSES IN, ALONG, ACROSS, UPON AND

UNDER THE PUBLIC STREETS, WAYS, ALLEYS AND PLACES, AS THE

SAME NOW OR MAY HEREAFTER EXIST, WITHIN THE CITY OF

SOUTH GATE
WHEREAS, Tesoro SoCal Pipeline Company LLC, a Delaware limited liability company ("Tesoro SoCal") requested, in accordance with California Public Utility Code Section 6231, that the City grant Tesoro SoCal a franchise renewal for the use of two existing pipelines (the "Pipelines"): one is a 2,624 foot long, 8-inch diameter pipeline located beneath Southern Avenue and Garfield Avenue ("Pipeline No. 034"); the other is a 12,952 foot long, 12-inch diameter pipeline located beneath Garfield Avenue and Miller Way and ending at the Vinvale Terminal located at 8601 Garfield Avenue ("Pipeline No. 080"); WHEREAS, the Pipelines have been in place since at least 1999 and have been operated over the years by several different oil and pipeline companies under several franchises granted by the City; and
WHEREAS, on August 11, 2009, the City Council adopted Ordinance No. 2264 granting an additional five-year franchise renewal to BP West Coast Products, LLC ("BP"), to operate the Pipelines tbrough and including February 26, 2014; WHEREAS, on May 14, 2013, the City executed a Letter of Consent authorizing the transfer by BP to Tesoro Refining & Marketing Company LLC, a Delaware limited liability company ("Tesoro Refining"), or its affiliates, of the franchise granted by Ordinance No. 2264; WHEREAS, as a result of that Letter of Consent, that franchise was transferred to Tesoro SoCal, an affiliate of Tesoro Refining, and Tesoro SoCal has owned and operated (through its affiliate, Marathon Pipe Line LLC, a Delaware limited liability company) the Pipelines since that time;
WHEREAS, On August 26, 2014, the City Council adopted Ordinance No. 2315 to extend the franchise for an additional five years from February 27, 2014 through and including February 26, 2019;
1 AS13772.0860872 4887-9478-1366v2
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WHEREAS, On August 26, 2019, the City Council adopted Ordinance No. 2020-01-CC to extend the franchise for an additional five years from Febniary 27, 2019, through and including February 26, 2024;
WHEREAS, the franchise granted by Ordinance No. 2020-01-CC expired on February 26, 2024, and Tesoro SoCal wishes to enter into a new franchise with the City of South Gate relative to the Pipelines;
WHEREAS, the City Council, pursuant to applicable federal, state and local law, is authorized to grant franchises within the City of South Gate; WHEREAS, on April 23, 2024, the City Council adopted a Resolution declaring the intention granting a ten-year term franchise to Tesoro SoCal; WHEREAS, on April 25, 2024, a Notice of Public Hearing was published in the South Gate Press, a newspaper meeting the statutory qualifications for publishing such notices; WHEREAS, on May 14, 2024, the City Council held a duly noticed Public Hearing to introduce an Ordinance granting a ten-year term franchise to Tesoro SoCal; and WHEREAS, on May 28, 2024, the City Council adopted Ordinance No. , granting a ten-year term franchise to Tesoro SoCal;

NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: Definitions. Whenever in this Ordinance the words or phrases hereinafter in this section defined are used, it is intended that they shall have the respective meanings assigned to them in the following definitions (unless, in the given instance, the context wherein they are used shall clearly import a different meaning):

B) The word "Franchise" shall mean and include any authorization by the City to transmit and distribute thereof for any and all purposes under, along, across orupon the public street, ways, alleys, and places in the City by means of pipes and appurtenances for conducting, transporting, conveying, and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances for any and all purposes.

C) The word "Grantee" shall mean Tesoro SoCal Pipeline Company LLC, a Delaware limited liability company, which is the entity to wliom the Franchise contemplated in this Ordinance is granted, and its lawful successors or assigns.

D) The phrase "Lay and Use" shall mean to lay, construct, excavate, erect, install, operate, maintain, use, repair, replace, relocate or remove. 2 I
AS13772.0860872 4887-9478-1366v2
116
E) The phrase "Pipeline Franchise Ordinance" shall mean that certain pipeline franchise Ordinance adopted by the City Council of the City and codified at Chapters 13.02 through

13.18, inclusive, of the South Gate Municipal Code.

F) The phrase "Pipelines and Appurtenances" shall mean one or more pipes and/or pipelines used for conducting, transporting, conveying and carging oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances, together with any appurtenant or related appliance, attachment, cable, cathodic protective device, conduit, equipment, fitting, gauge, main, manhole, meter, pump, regulator, service, trap, valve, vault, vent or wire.

SECTION 2: Grant of Franchise. The right, privilege and franchise, subject to all terms and conditions contained in this Ordinance, and pursuant to the provisions of the Division 3, Chapter 2 of the California Public Utilities Code, la'iown as the Franchise Act of 1937, is hereby granted to Grantee, to use a system of Pipelines and Appurtenances for the purpose of conducting, transporting, conveying and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances under and across the City's right- of-way upon the terms and conditions set forth in Section 3, below. The City acknowledges that the two Pipelines identified above have already been installed within the City of South Gate; the City expressly agrees that the right to install, operate, maintain, use, repair, replace, relocate and remove those Pipelines is included among the rights granted in this Ordinance as part of the Franchise.

SECTION 4: Term. The Franchise shall be for a term of ten (10) years commencing retroactively on February 27, 2024 and expiring on February 26, 2034, or until such earlier time that:

A) The Franchise is voluntarily surrendered or abandoned by the Grantee, or assigned, transferred, sold or leased without the prior express written consent of the City, which assignment shall not be unreasonably withheld; or
B) The State of California, the City, or some other municipal or public entity duly authorized by law shall purchase the Franchise area, as described in Section 1(B) by voluntary agreement, or shall condemn and take the Franchise area under the power of eminent domain; or the Franchise is forfeited by the Grantee due to the Grantee's noncompliance with the terms and conditions of the Franchise.

C) The Grantee shall, within thirty (30) days after the passage of this Ordinance granting the Franchise, file with the City Clerk a written acceptance of the terms and conditions of this Ordinance: provided, liowever, that as to franchises granted to the United States of America, use will constitute acceptance.
3 AS13772.0860872 4887-9478-1366v2
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SECTION 5: Insurance.

A) On or before commencement of any franchise operations, the Grantee shall obtain or provide satisfactory evidence of having policies of liability and worker's compensation insurance from companies authorized to transact business in the State of California by the Insurance Commissioner of California as provided by Section 13.08.050 of Chapter 13.08, Division I of Title 13.

C) On or before the effective date of this Ordinance, Grantee shall file and thereafter at all times during the life of the Franchise keep on file with the City Clerk a corporate surety bond running to the City or public entity which may become entitled to the benefits herein reserved in the Franchise by virtue of future incorporations or annexations, in the penal sum of ten thousand dollars ($10,000) or such other sum as may be specifically provided for in this Ordinance granting the Franchise, with surety to be approved by the City Attorney, conditioned that Grantee shall well and truly observe, fulfill and perform each condition of the Franchise and that in case of any breach of condition of the bond after thirty (30) days' notice to cure has expired, the whole 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 the bond is not to be filed prior to the effective date of this Ordinance, the award of the Franchise may be set aside and this Ordinance granting the Franchise repealed at any time prior to the filing of the bond and any money paid in consideration for the award of Franchise shall be deemed forfeited. In the event that the bond, after it has been so filed, shall at any time during the life of the Franchise, in the reasonable opinion of the City Attorney, becomes insufficient, the Grantee agrees to renew the bond, with sureties to be approved by the City Attorney, within thirty (30) days after written notice to do so from the City Attorney.

SECTION 6: Fee. The Grantee shall pay to the City the following fees pursuant to the following requirements:

A) An initial franchise fee of twelve thousand nine hundred forty-three dollars ($12,943.00) pursuant to Section 13.10.010 of Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code, prior to the adoption of this Ordinance.

B) A base annual fee for times hereafter specified, in lawful money of the United States, as provided for in the Section 6231.5 of the California Public Utility Code, which aru'iual fee shall be computed as follows;

1. The length of pipe expressed in feet located within the franchised area shall be multiplied by the applicable base rate, as adjusted pursuant to subdivision (D), in accordance with the following schedule:
4 AS13772.0860872 4887-9478-1366v2
118
Pipe size (internal
diameter in inches)
0-4
6 8
Base rate per
lineal foot
$0.088

0.132

0.176
10 12
14 16
18 20
22 24
26 28
30 0.220

0.264

0.308

0.352

0.396

0.440

0.484

0.528

0.572

0.616

0.660
C) For pipelines with an internal diameter not listed above, the fees shall be in the same Proportion to the fees of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches. The annual fee for the first year, February 27, 2024 to February 26, 2025, shall be $23,208, after which the fee will increase annually according to the provisions of Section 6 (D).

D) The annual payment for each lineal foot of pipeline shall be computed and revised each calendar year as follows:
(a) The applicable base rate shall be multiplied by the Consumer Price Index for the Los Angeles County, as published by the United States Department of Labor, Office of Information for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index for June 30, 1989, which is declared to be 128.7. Under no circumstances shall the multiplying factor be less than one. (b) If the United States Department of Labor, Office of Information, discontinues the preparation or publication of a Consumer Price Index for the Los Angeles County, and if no translation table prepared by the Department of Labor is available so as to make those statistics which are then available applicable to the index of June 30, 1989, the municipality shall prescribe a rate of payment which shall, in its judgment, vary from the rates specified in this section in approximate proportion as commodity consumer prices then current vary from commodity consumer prices current in December 1988. On this point, the determination by the municipality shall be final and conclusive.

13.10.040 of Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code. 5 $0
AS13772.0860872 4887-9478-1366v2
119
F) Fees pursuant to Section 13.10.060 of the Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code and shall be due and payable annually during the term of the Franchise and subject to adjustment in accordance witli paragraph B and D of Section 6, within three (3) months afterthe expiration ofthe calendar year. A rate of ten percent (10%) per annum, or fraction thereof beyond thirty (30) days afterpayment due date and following ten (10) days afterreceipt by Grantee of writtennotice of such delinquency, may be charged as additional consideration.

G) Any neglect, omission or refusal by the Grantee to make any such payment as and when due, or to file any related statement, certification or verification as to the required payment reasonably required by the City, at the times or in the manner required herein and in the Pipeline Franchise Ordinance, shall be grounds for the declaration of a forfeiture of the Franchise and of all rights hereunder after thirty (30) days' notice to cure has expires as provided for in Section 12.

SECTION 8: Additional Conditions. The Grantee of tis Franchise shall:

SECTION 9: Permits. The Grantee shall obtain an excavation permit, and pay the applicable fee therefore, prior to commencing any excavation in the right of way. The Grantee may obtain an excavation permit by filing a set of excavation plans with the City Engineer, which plansshallbesubjecttotheCityEngineer'sreviewandapproval. Theexcavationplansshallshow the location of the proposed excavation, as well as the location of all known existing pipes, sewers, conduits, improvements and other facilities in or under any Street or public property in which the franchise property is adequate description of the proposed work, including an estimate of the duration of the interference with any street traffic. The issuance of any excavation permit for the construction or installation of a pipeline for the transmission of flammable or combustible liquids, gases or hazardous materials, shall be as prescribed by the fire Chief of the Los Angeles County Fire Department in accordance with Chapter 13.14, Division 1, of Title 13 of the South Gate Municipal Code.

SECTION 10: Emergency Equipment.

A) The Grantee shall develop and maintain an emergency response plan, satisfactory to the City Engineer, which covers all franchise operations within the City. In general, an 7 IA
AS13772.0860872 4887-9478-1366v2
121
emergency response plan meeting the requirements of Federal and State law and containing the information contained in this section shall be acceptable. The emergency response plan shall include a 24-hour notification program and proof of arrangements capable of providing emergency response services, including but not limited to traffic control, street excavation, pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem, and such other information as the City Engineer shall reasonably require. Repairs to a public street, alley or parkway shall be completed within seventy-two (72) hours rinless otherwise authorized by the City Engineer. The City Engineer shall be notified ten (10) days in advance of any proposed change in such arrangements. Grantee's emergency response plan shall be submitted to the City Engineer within thirty (30) days after the effective date of the Franchise.

B) Whenever any Pipeline or Appurtenance breaks or leaks so as to cause the release of oil or products thereof into the public right-of-way, Grantee, and any other person using or controlling the Pipeline or Appurtenance, shall irnrnediately notify the City's Police Department and Public Works Department and shall implement precautionary safety measures including traffic control, system shutdown, valve closures, and public notification. In the event of an emergency which threatens life, health, safety or property, and where it is not possible to obtain an excavation permit prior to commencement of the work, the Grantee may commence such work; provided, however, that within seventy-two (72) hours thereafter the Grantee shall make application to the City Engineer for an excavation permit in accordance with the procedures specified herein. The City Engineer may impose conditions upon the issuance of the excavation permit, and all work shall be subject to inspection. Adequate traffic safety barriers shall be maintained at all times, and any damaged portion of the Street shall be restored to its original condition.

All such work shall be done under the direction of the City Engineer, and to the reasonable satisfaction of the City Engineer. Grantee shall repair such damage and restore the Street within three (3) working days after written demand therefore by the City Engineer, or such other period as the City Engineer may authorize when required for the protection of the public health and safety.

D) If the Grantee, after reasonable notice, fails or refuses to pave, surface, grade, repave, resurface or regrade as required by the provisions of this Franchise, the City may carise the work to be done and shall keep an itemized account of all costs, including reasonable administrative overhead expenses, within thirty (30) days after presentation to Grantee of an itemized account of such costs.

SECTION 11: Records.

A) Grantee acknowledges that the City's records may not be complete and that Pipes and Appurtenances previously unknown to City are frequently discovered. Consequently, by granting this Franchise or by approving any excavation permit requested by Grantee, the City does not warrant the accuracy of information supplied to the Grantee by the City 8 13
AS13772.0860872 4887-9478-1366v2
122
regarding the location or existence of other facilities. Nothing herein shall be deemed to make tlie City, or any officer, agent or employee of the City, responsible or liable to the Grantee or to any otherperson by virtue of the City's approval of excavation permits and/or plans, regardless of whether any information is supplied by the City to the Grantee pertaining to the location of existing pipes, facilities or other improvements on, in or under any Street or other public property.

B) The Grantee shall keep and preserve, within the County of Los Angeles for a period of five (5) years, subseqrient to the date of the most recent franchise fee determination as ascertained by an audit made by the City or on its behalf, all the records necessary to determine the amount of such franchise fee.

C) At all reasonable times, the Grantee shall permit the City or its duly authorized representative, to examine all Pipelines and Appurtenances and to examine and transcribe any and all books, accounts, papers, maps, and other records kept or maintained by the Grantee or under its control and associated with the Pipelines and Appurtenances and/or the financial condition of the Grantee with respect thereto.

SECTION 12: Failure to Comply.

A) IftheGranteeshallfail,neglectorrefusetocomplywithanyoftheprovisionsorconditions ofthis Franchise, and shall not, within tirty (30) days after written demand for compliance, begin the work of compliance, or after cornmencing such compliance shall fail to prosecute the same with due diligence to completion, then the City, acting by and through its legislative body, may declare this Franchise forfeited.

SECTION 13: Removal or abandonment of facilities.

A) 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 Grantee shall, within thirty (30) days thereafter, make written application to the Director of Public Works for authority either to: (1) abandon all or a portion of such facilities in place; or (2) remove all or a portion of such facilities. Such application shall describe the facilities desired to be abandoned, their location with reference to City highways, and shall describe with reasonable accuracy the physical condition of such facilities. The Director of Public Works shall determine whether any abandonment or removal which is thereby proposed may be effected without detriment to the public interest and under what conditions such proposed abandonment or removal may be effected. He or she shall then notify the Grantee of his or her determinations.

B) Within thirty (30) days after receipt of such notice, the Grantee shall apply for a permit from the Public Works Department to abandon or remove the facility.

C) The Grantee shall, within ninety (90) days after obtaining such permit, commence and diligently prosecute to completion the work authorized by the peimit. 9 l\-l
AS13772.0860872 4887-9478-1366v2
123
SECTION 14: Effective Date. This Ordinance shall take effect on the thirty first (318') day after its adoption.

SECTION 15: Publication Expenses. The Grantee of this Franchise shall pay to tlie 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 16: Posting of Ordinance. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published as required by law.

PASSED, APPROVED and ADOPTED this 14th day of May 2024.

CITY OF SOUTH GATE:

B7:

Gil Hurtado, Mayor
ATTEST:

BY:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

B7:

Rail F. Salinas, City Attorn'ey
10 AS13772.0860872 4887-9478-1366v2
i<
124
Attachment B

CITY OF SOUTH GATE

NOTICE OF PUBLIC HEARING
Soul!PI;la'te !ltry"eOterk
APR 1 8 2024
FILED
NOTICE IS HEREBY GIVEN that the City Council of South Gate, California will conduct a public hearing to introduce an Ordinance granting a ten (10) year franchise to Tesoro SoCal Pipeline Company, LLC, to use, maintain, repair and replace a single pipeline beneath specified public streets, together with reIated appurtenances, for transmitting and distributing petroletun products.

Tesoro SoCal Pipeline Company, LLC, and its successors and assigns will, during the life of the franchise, pay to the City the percentage specified in the proposed Ordinance, that the percentage will be paid annualIy from the date of the granting of the franchise, and in the event such pa3mient is not made the franchise will be forfeited. A copy of the proposed Ordinance can be reviewed in the City Clerk's office during nornnal business hours.

DATB:

TIME:

LOCATION:

Tuesday, May 14, 2024
6:30 p.m,
Council Chambers
South Gate City Hall
8650 California Avenue
South Gate, CA 90280
NOTICE IS HEREBY GIVEN that any and all persons interested in the matter herein above set forth are privileged to attend said hearing and then there testify or present evidence upon any matter relating thereto.

NOTICE IS HEREBY GIVEN by order of the City Clerlc of said City and is dated April 18, 2024.

Y odi Iaze, City Clerk
Publication date: Thursday, April 25, 2024
Account Number: 100-701-31-6302
125
Attachment C
ORDINANCE N0. 2020-01 -CC
Cl"lY OF SOUTH GATE
LO8 ANGELES COUNTY, CALIFORNIA

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, r /lLFOn?lU!, CrtANTING A FIVE-YEAR FRANCHiSE TO TE80R0

SOCAL PIPELINE COMPANY, LLC, A DELAWARE LWIITED LIABILITY COMPANY, COMMENCING RETROACTIVELY ON FEBRUARY 27,
2019, TO LAY AND USE PIPES, DITCHES, FLUMES, CONDUITS AND APPuRTENANCES FOR TRAN8M1"TTING AND DISTRIBUTING OIL OR PRODUCTS THEREOF, FOR ANY AND ALL PuRPO8ES IN, ALONG, ACROSS, UPON AND UNDER THE PUBLIC 8TREETS, WAY8, ALLEY8 AND PLACER, AS THE SAME NOW OR MAY HEREAFTER

EXIST, WITHIN THE CITY OF SOUTH GATE
WHEREAS, Tesoro SoCal Pipeline Company, LLC, a Delaware limited liability company ("Tesoro SoCal") requested, in accordanoe with California Public Utility Code Section 6231, that the City grant Tesoro SoCal a franchise for the use of two existing pipelines (the "Pipelines"): one is a 2,624 foot long, 8-inch diameter pipeline located beneath Southern Avenue and Garfleld Avenue ("Pipeline No. 034'); the other is a 12,952 foot long, 12-inch diameter pipeline located beneath Garfield Avenue and Miller Way and ending at the Arco Vinvale Terminal located at 8601 Garfield Avenue ("Pipeline No. 080"); and
WHEREAS, the Pipelines have been in plaoe sinoe at least 1999 and have been operated between over the years by several different oil and pipeline companies under several franchises granted by the City of South Gme ('City"); and WHEREAS, on August 11, 2009, the City Council adopted Ordinance No. 2264 granting an additional five year franchise renewal to BP West Coast Products, LLC ("BP"), to operate the Pipelines through and including February 26, 2€)14; and WHEREAS, on May 14, 2013, the City executed a Letter of Consent authorizing the transfer by BP to Tesoro Refining and Marketing Company, LLC, a Colorado limited liability company ("Tesoro Refining"), or its affiliates, of the franchise granted by Ordinance No. 2264; and
WHEREAS, as a result of that Letter of Consent that franchise was transferred to Tesoro SoCal, a wholly-owned subsidiary of Tesoro Refining, and Tesoro SoCal has owned and operated the Pipelines since that time; and WHEREAS, on August 26, 2014, the City Council adopted Ordinance No. 2315 to extend the franchise for an additional five years, from February 27, 2014 through and including February 26, 2019; and
l
126
WHEREAS, the franchise granted by Ordinance No. 2315 expired on February 26, 2019, and Tesoro SoCal wishes to enter into a new franchise with the City of South Gate relative to the Pipelines; and aa
WHEREAS, the City Council, pursuant to applicable federal, state and local law, is authorized to grant franchises within the City; and WHEREAS, on February 6, 2020, a Notice of Public Hearing was published in the Los Angeles Wave, a newspaper meeting the statutory qualifications for publishing such notices; and
WHEREAS, on February 25, 2020, the City Council held a duly noticed Public Hearing to introduce an Ordinance granting a five-year term franchise to Tesoro SoCal; and
WHEREAS, on March 10, 2020, the City Council adopted Ordinance No. 2020- 01-CC, granting a five-year term franchise to Tesoro SoCal, commencing retroactively on February 27, 2019;

NOW, THEREFORE, THE CI'FY COUNCIL OF THE CITY OF SOUTH GATE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: Definitions. Whenever in this Ordinance the words or phrases hereinafter in this sedion defined are used, it is intended that they shall have the respective meanings assigned to them in the following definitions (unless, in the given instance, the context wherein they are used shall clearly import a different meaning):

B) The word "Franchise" shall mean and include any authorization by the City to transmit and distribute thereof for any and all purposes under, along, across or upon the public street, ways, alleys, and plaoes in the City by means of pipes and appurtances for conducting, transporting, conveying, and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances for any and all purposes.

C) The word "Grantee" shall mean Tesoro SoCal Pipeline Company LLC, a Delaware limited liability company, which is the entity to whom the Franchise contemplated in this Ordinance is granted, and its lawful successors or assigns.

D) The phrase "Lay and Use" shall mean to lay, construct, excavate, erect, install, operate, maintain, use, repair, replace, relocate or remove.

E) The phrase 'Pipeline Franchise Ordinance" shall mean that certain pipeline franchise Ordinance adopted by the City Council of the City and codified at Chapters 13.02 through 13,18, inclusive, ofthe South Gate Municipal Code. 2 127
F) The phrase "Pipelines and Appurtenances" shall mean one or more pipes and/or pipelines used for conducting, transporting, conveying and carding oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances, together with any appurtenant or related appliance attachment, cable, cathodic protective device, conduit, equipment, fitting, gauge, main, manhole, meter, pump, regulator, service, trap, valve, vault, vent or wire.

G) The phrase "Street" shalf mean the public streets, alleys and places within the City of South Gate as the same now or may hereafter exist, and in which the City has the opportunity to grant a franchise.

SECTION 2: Grant of Franchise. The right, privilege and franchise, subject to all terms and conditions contained in this Ordinance, and pursuant to the provisions of the Division 3, Chapter 2 of the California Public Utilities Code, known as the Franchise Ad of 1937, is hereby granted to Grantee, to use a system of Pipelines and Appurtenances for the purpose of conducting, transporting, conveying and carrying oil, gas, gasoline, petroleum, wet gas, liyJiubeid>on bubstances, water, waste water, mud and other liquid substances under and across the City's right-of-way upon the terms and conditions set forth in Section 3, below. The City acknowledges that the two Pipelines identified above have already been installed within the City of South Gate; the City expressly agrees that the right to install, operate, maintain, use, repair, replace, relocate and remove those Pipelines is included among the rights granted in this Ordinance as part of the Franchise,
SECTION 3: CondiUona. The rights granted herein shall be subject to (a) the terms and conditions set forth in this Ordinanoe, and (b) construction of Pipelines and Appurtenances by the Grantee, at the Grantee's expense and at such time or times as directed by the City.

SECTION 4: Term. The Franchise shall be for a term of five (5) years commencing retroadively on February 27, 2019 and expiring on February 26, 2024, or until such earlier time that:

A) The Franchise is voluntarily surrendered or abandoned by the Grantee, or assigned, transferred, sold or leased without the prior express written consent of the City, which assignment shall not be unreasonably withheld; or B) The State of California, the City, or some other municipal or public entity duly authorized by law shall purchase the Franchise area, as described in Section 1(B) by voluntary agreement, or shall condemn and take the Franchise area under the power of eminent domain; or the Franchise is forfeited by the Grantee due to the Grantee'b iiuiibunipliailC6 with the terms and conditions of the Franchise.

A) On Or befOrb buinitivuta,utvnl t.f and franCh!se opera!tons, the Gran!ee Shall obtain or provide satisfactory evidence of having policies of liability and worker's compensation insurance from oompanies authorized to transact business in the State of California by the Insurance Commissioner of California as provided by Section 13.08.050 of Chapter 13.08, Division I of Title 13.

B) The Grantee shall file with the City Clerk prior to commencement of any franchise operations, either certified copies of the policies or a oertificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force and as provided by Sedion 13.08.050 of Chapter 13.08, Division I ofTitle 13.

C) On or before the effective date of this Ordinance, Grantee shall file and thereafter at all times during the life of the Franchise keep on file with the City Clerk a corporate surety bond running to the City or public entity which may become entitled to the benefits herein reserved in the Franchise by virtue of future incorporations or annexations, in the penal sum of ten thousand dollars ($10,000) or such other sum as may be specifically provided for in this Ordinance granting the Franchise, with surety to be approved by the City Attorney, conditioned that Grantee shall well and truly observe, fulfill and perform each condition of the Franchise and that in use of any breach of condition of the bond after thirty (30) days notice to cure has expired, the whole 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 the bond is not to be filed prior to the effective date of this Ordinance, the award of the Franchise may be set aside and this Ordinance granting the Franchise repealed at any time prior to the filing of the bond and any money paid in consideration for the award of Franchise shall be deemed forfeited. In the event that the bond, after it has been so filed, shall at any time during the life of the Franchise, in the reasonable opinion of the City Attorney, becomes insufficient, the Grantee agrees to renew the bond, with sureties to be approved by the City Attorney, within thirty (30) days affer written notice to do so from the City Attomey.

D) As an alternate to the filing of a bond, the Grantee may deposit mth the City Clerk and assign to the City savings and loan certificates or shares, or both, in the same amount as required on such bond.
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SECTION 6: Fee. The Grantee shall pay to the City the following fees pursuant to the following requirements:

A) An initial franchise fee of eleven thousand two hundred fifty five dollars ($11255.00) pursuant to Section 13.10.010 of Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code, priorto the adoption of this Ordinance.

B) A base annual fee for times hereafter specified, in lawful money of the United States, as provided for in the Sedion 8231.5 of the California Public utility Code, which annual fee shall be computed as follows;
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1. The length of pipe expressed in feet located within the franchised area shalf be multiplied by the applicable base rate, as adjusted pursuant to subdivision (d), iii abbuitjaiibti wilh the following schedule:

Pipe size (internal
diameter in inches)
0-4
e
8 10
12 14
'ie
18 20
22 24
26 28
30 Base rate per
lineal foot
$0.088

0.132

0.178

0.220

0.284

0.308

0.352

0.398

0.440

0.484

0.528

0.572

0.616

0.660
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C) For pipelines with an internal diameter not listed above, the fees shall be in the same Proportion to the fees of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches.

D) The annual payment for each lineal foot of pipeline shall be computed and revised each calendar year as follows:

1. 2.

The applicable base rate shall be multiplied by the Consumer Price Index for the Los Angeles County, as published by the United States Department of Labor, Offioe of Information for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index for June 30, 1989, which is declared to be 128.7. Under no circumstances shall the multiplying fador be less than one.

If the United States Department of Labor, Office of Information, discontinues the piapzialiuii ui publication of a Consumer Price Index for the Log Angeles County, and if no translation table prepared by the Department of Labor is available so as to make those statistim which are then available applicable to the index of June 30, 1989, the municipality shall prescribe a rate of payment which shall, in its judgment, vary from ttR3 rates specified in !hie sedion iii appiuxinialt, proportion as commodity consumer prioes then current vary from commodity consumer prices current in December 1988. On this point, thc dctcrminatiun Liy the municipality shall be final and conclusive. 5 130
E) Initial construction charges relative to any new Pipelines and Appurtenances laid during the term of the Franchise, shall be calculated at a rate of one hundred dollars ($100) per mile, or fraction thereof, as provided at the time and in the amounts specffied in Section 13.10.040 of Chapter 13.10, Division 1 of Title 13 of the South Gate Municipal Code.

F) Fees pursuant to Section 13.10.060 of the Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code and shall be due and payable annually during the term of the Franchise and subject to adjustment in accordance with paragraph B and D of Sedion 6, within three (3) months after the expiration of the calendar year. A rate of ten percent (10%) per annum, or fraction thereof beyond thir§ (30) days afier payment due date and following ten (10) days after receipt by Grantee of written notice of such delinquency, may be charged as additional consideration.

G) Any negled, omission or refusal by the Grantee to make any such payment as and when due, or to file any related statement, certification or verification as to the required payment reasonably required by the City, at the times or in the manner required herein and in the Pipeline Franchise Ordinance, shall be grounds for the declaration of a fofeiture of the Franchise and of all rights hereunder after thirty (30) days' notice to cure has expires as provided for in Section 12.

H) The Grantee shall file with the City Clerk, within three (3) months after the expiration of the calendar year following the effective date of its Franchise, a verified statement setting forth in details the Grantee's computation of the annual fee which is payable for the preceding franchise payment period of the annual fee. Any neglect, omission or refusal by the Grantee to file the verified statement, or to pay the annual fee, at the times or in the manner herein provided, shall constitute grounds for the declaration of a forfeiture of this Franchise and of all rights of the Grantee hereunder
I) In the event of abandonment of facilities with the approval of the City as elsewhere in this Ordinance provided, or in the event of removal of such facilities by the Grantee, the payments otherwise due the City for occupancy of the roads or highways by such facilities shall be prorated for the calendar year in which such removal or abandonment occurs as of the end of the calendar month in which removed or abandoned
SECTION 7: Plans. Within ninety (90) days following the date in which any Pipelines and Appurtenances have been laid or constructed under this Franchise, the Grantee shall file a plan or plans in such forms as may be required by the City's City Engineer showing the accurate location and size of all Pipelines and Appurtenances then in place within the Franchise Area, and shall, upon installation of any Pipelines and Appurtenan>s, or upon change or removal of all or any portion thereof, file a revised map or maps showing the location and size of all such addnional, changed or removed Pipelines and Appurtenances as of that day.
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SECTION 8: Additional Conditions. The Grantee of this Franchise shall:

A) Construct, install, test, and maintain all Pipelines and Appurtenances in eibbuidaiiy wi(h and in conformity with all City, County, State and Federal Ordinances, statutes, rules, regulations and other laws (whether now existaing or hereafter adopted) applizble to the installation, location, use, maintenance and/or removal of the Pipelines and Appurtenanoes,
B) Pay to the City, on demand, the cost of aIl repairs to public property made neoessary by any operations of the Grantee under this Franchise, including restoring the Street to its original condition upon the removal of all or any portion of the Pipeline and Appurtenances, or upon the termination or non-renewal of the Franchise;
C) Indemnify and hold harmless the City, its officers and employees from any and all liability for damages proximately resulting from the Grantee's ads or omissions under this Franchise; and be liable to the City for all damages proximately resulting from the failure of said Grantee well and faithfully to observe and peform each and every provision of this Franchise;
D) Install, remove or relocate, at the request of the City and without expense to the City, any Pipelines and Appurtenances installed, used and maintained under this Franchise if and when made neoessary by any lawful change of grade, alignment or width of the affeded Street;
E) Construct, install, use, operate, repair or mod$ any pipeline for thetransportation of flammable or combustible liquids, in a manner prescribed by the California State Fire Marshall and/or Chief of Los Angeles Fire Department inaccordance with Chapter 13.14 Division 1, of the Title "13 of the South Gate Municipal Code; and
F) Submit a written petition of franchise renewal to the City at least ninety (90) days prior to the expiration date.

SECTION 9: Permits. The Grantee shall obtain an excavation permit, and pay the appl!cabJe fee thereforei pnor u buiiiiiitii'i<iiiiH uii/ exCava!ton !n the r!ght Of Wag. TheGrantee may obtain an excavation permit by filing a set of excavation plans with the City Engineer, which plans shall be subject to the C% Engineer's review and approval. Theexcavation plans shall show the location of the proposed excavation, as wefl as the location of all known existing pipes, sewers, conduites, iiiipiuVCmCnt; and other facilities in or under any Street or public property in which the franchise property is adequate description of the proposed work, including an estimate of the duration of the iiiltsircrciica wilh any street traffic. The issuanoe of any excavation permffl for the construction or installation of a pipeline for the transmission of flammable or combustible liquids, gases or hazardous materials, shall be as prescribed by the fire Chief of the Los Angeles County Fire Department in acmrdance wTh Chapter 13.14, Division 4, of Title 13 of the South Gate Municipal Code.

A) Where it is necessary to lay underground pipes through, under or across any portion of a paved or macadamized street, such work, where practicable and economically feasible, shall be done by a tunnel or bore so as not to disturb the foundation of such paved or macadamized street. If the same cannot be done, or 7 132
B)
if h is necessary to cut the street in order to access existing pipes and appurtenances, such work shall be done pursuant to an excavation permit, as provided in above paragraph, to be issued by the City Engineer upon application therefore.

All work shall be subjed to inspedion by the City Engineer. All street coverings or openings, valves, vaults and manholes shall at all times be kept flush with the surface of the streets; provided, however, that vents for underground vaults and manholes may, subjed to the prior approval of the City Engineer, extend above the surface of the streets when such vents are located in parkways, between the curb and the property line. The Grantee shall provide adequate traffic safety barriers, signs, devices and traffic safety warning equipment in accordance with City ordinances, rules or regulations, and shall comply with such additional safety measures as the City Engineer may dired.

SECTION 10: Emergency Equipment.

A) The Grantee shall develop and maintain an emergency response plan, satisfactory to the City Engineer, which covers all franchise operations within the City. In general, an emergency response plan meeting the requirements of Federal and State law and containing the information contained in this section shall be acceptable. The emergency response plan shall include a 24-hour nOtFrcatiOn program and prOOf Or eiiieiiiHviiieiilb wpable Of providing emergency response services, including but not limited to traffic control, street excavation, pipeline repair, and supplies and services as neoessary, within two (2) hours of notification of any problem, and such other information as the City Engineer shall reasonably require. Repairs to a public street, alley or parkway shall be completed within seventy-two (72) hours unless otherwise authorized by the City Engineer. The City Engineer shall be notified ten (10) days in advance of any proposed change in such arrangements. Grantee's emergency response plan shall be submitted to the City Engineer within thirty (30) days afier the effective date of the Franchise.

B) Whenever any Pipeline or Appurtenance breaks or leaks so as to cause the release of oil or produds thereof into the public right-of-way, Grantee, and any other person using or controlling the Pipeline or Appurtenance, shall immediately notify the City's Police Department and Public Works Department and shall implement precautionary safety measures including traffic control, system shutdown, valve closures, and public notification. In the event of an emergency which threatens life, health, safety or property, and where it is not possible to obtain an excavation permit prior to Thniinttiiyiiioiil ur the Mark, the Grantee may commence such work; provided, however, that withiri bavvnty-tWQ (72) hours thereaffer the Grantee shall make application to the City Engineer for an excavation permit in accordanoe wuh the procedures specified herein. The City Engineer may impose conditions upon the issuanoe of the excavation permit, and all work shall be subject to inspection. Adequate traffic safety barriers shall be maintained at all times, and any damaged portion of the Street shall be restored to its original condition.
8 24
133
C) If any portion of any Street is damaged by reason of defects in any of the Pipes and Appurtenances maintained or construded by Grantee, or by reason of any other cause attributable to or arising from the operation of any Pipes and Appurtenances constructed or maintained by Grantee, the Grantee shall, at b Sale COG! and expense, iiiiiiibJialtily ivpa!r all damage and restore the Street O the condition existing before such damage occurred. All such work shall be done under the direction of the City Engineer, and to the reasonable satisfaction of the City Engineer. Grantee shall repair such damage and restore the Street within three (3) working days after written demand therefore by the City Engineer, or such other period as the City Engineer may authorize when required for theprotection of the public health and safety.

D) If the Grantee, affer reasonable notice, fails or refuses to pave, surface, grade, repave, resurface or regrade as required by the provisions of this Franchise, the City may cause the work to be done and shall keep an itemized account of all costs, including reasonable administrative overhead expenses, within thirty (30) days after presentation to Grantee of an itemized acmunt of such costs.

SECTION '11: Records.

A) Grantee acknowledges that the City's records may not be complete and that Pipes and Appurtenances previously unknown to City are frequently discovered.

B) The Grantee shall keep and preserve, within the County of Los Angeles for a period of five (5) years, subsequent to the date of the most reoent franchise fee determination as ascertained by an audit made by the City or on its behalf, all the records necessary to determine the amount of such franchise fee.

C) At all reasonable times, the Grantee shall permit the City or its duly authorized it:pivbCiaitalivoi lu examine all Pipelines and Appurtenanoes and to examine andtranscribe any and all books, accounts, papers, maps, and other records kept or maintained by the Grantee or under its control and associated with the Pipelines and Appurtenances and/or the financial condition of the Grantee with respect thereto.

SECTION 12: Failure to Comply.

A) If the Grantee shall fail, neglect or refuse to comply with any of the provisions or conditions of this Franchise, and shall not, within thirty (30) days after written demand for complianoe, begin the work of compliance, or after commencing such 9 2G134
B)
compliance shall fail to prosecute the same wnh due diligence to completion, then the C$, acting by and through its legislative body, may declare this Franchise forfeited.

In the event of noncompliance by the Grantee with any of the conditions hereof, the City may, in addition to all other remedies provided for herein, bring suit for the forfeiture or termination of this Franchise.

SECTION 13: Removal or abandonment of facilities.

A) At the expiration, revocation or termination of this Franchise or of the permanent diswntinuance of the use of all or a portion of its facilities, the Grantee shall, within thirty (30) days thereafter, make written application to the Director of Public Works for authority either to: (1) abandon all or a portion of such facilities in place; or (2) remove all or a portion of such facilities. Such application shall describe the facilities desired to be abandoned, their location with reference to City highways, and shall describe with reasonable accuracy the physical condition of such facilities, The Director of Public Works shall determine whether any abandonment or remova which is thereby proposed may be effeded without detriment to the public interest and under what conditions such proposed abandonment or removal may be effeded. He or she shall then notify the Grantee of his or her determinations.

B) Within thirty (30) days after receipt of such notice, the Grantee shall apply for a permit from the Public Works Department to abandon or remove the facility.

C) The Grantee shall, within ninety (90) days afier obtaining such permit, commence and diligently prosecute to completion the work authorized by the permit. a SECTION 14: Effective Date. This Ordinance shall take effect on the thirty first (31at) day after its adoption.
[Remainder of page left blank intentionally.]
10 2(r135
aar
SECTION 15: 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 16: Posting of Ordinam:e. The City Clerk shall certify to the adoption of this Ordinanoe and shall cause the same to be published as required by law.

PAS8ED, APPROVED and ADOPTED this j0th day of March, 2020.

CITY OF SOUTH GATE:

BY: %,
M. Bel6n Bernal, Mayor
a
ATTEST:

Carmen Avalos, City
(SEAL)
FORM:

F. Salinas, City Attorney
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11 136
URDn'SiANCk (J:RTIFiCATION PAGE
ai

ST ATE OF CALIFORNIA

COUNTY OF LOS ANGEIJS ) SS

CITY OF SOUTH GAIE
I, Carmen Avalos, City Clerk of the City of South Gate, Califomia, hereby certify that the whole number of Members of the City Council of said City is five; that Ordinance No. 2020-01-CC was adopted by the City Council at their Regular Meeting held on March 10, 2020, by the following vote:

Ayes: Council Members: Diaz, DeWitt, and Rios
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Noes: Council Members: None

Absent: Council Members: Davila
Abstain: Council Members: Bernal
Witness my hand and the seal of said City on March 11, 2020.

Carmen Avalos, City Clerk
City of South Gate, Califomia
ax
ff 137
Attachment D
DocuSign Envelope ID: 1A84F 1DE816
ST ATE OF CALIFORNIA -NATURAL RESOURCES AGENCY Gavin Newsom, Govemor

DEPARTMENT OF FORESTRY AND FIRE PROTECTION

OFFICE OF THE STATE FIRE MARSHAL
3780 Kilroy Airport Way, Suite 500
Long Beach, California 90806
(562) 497-0350
CERTIFIED MAIL No: 7022-2410-0000-0522-4362
February 9, 2024
Rich St. Amour
President
Marathon Pipe Line LLC
539 South Main Street
Findlay, Ohio 45840
SUBJECT: WARNING LETTER
DOCKET: CA-2024004 (MARATHON PIPE LINE LLC)
Dear Mr. St. Amour:

From April 17, 20-23 to November 20, 2023, representatives of CAL FIRE - Office of the State Fire Marshal (OSFM) along with Pipeline and Hazardous Materials Safety Administration (PHMSA) completed a Headquarter Control Room Management (CRM) Inspection of Marathon Pipe Line LLC (MPL). This inspection was conducted pursuant to Chapter 5.5 of the California Government Code to determine compliance with the provisions of Title 49, Code of Federal Regulations (49 C.F.R.) Part 195.

As a result of the inspection, it appears that MPL is not in compliance with the following provisions of 49 C.F.R. Part 195.

EN 24-005
49 C.F.R. § 195.446 Control Room Management.
(a) ...
(e) Alaim management. Each operator using a SCADA system must have a written alarm management plan to provide for effective controller response to alarms. An operator's plan must include provisions to:
('1) ...
(6) Address deficiencies identified through the implementation of paragraphs (e)(l) through (e)(5) of this section.
=The Departryient of Foresliy and Frre Protection serves and safeguards tlie people and protects tlie property and resources of California." 138
DocuSign Envelope ID: 1A84F 1DE816
Rich St. Amour
February 9, 2024

Page 2 ends

South Gate City CouncilMay 28, 2024

South Gate City Council
May 28, 2024