Resolution No. 2024-017RESOLUTION NO. 2024-017
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
EXTENDING THE FRANCHISE AGREEMENT WITH PACIFIC PIPELINE
SYSTEM, INC.
SECTION 1. Recitals.
A. On April 8, 1997, the City Council adopted Resolution No. 6937 declaring its
intention to grant a Franchise to Pacific Pipeline System, Inc. (Franchisee) to install,
maintain and operate a pressurized steel pipeline and appurtenances in and under
Alameda Street in the City of Vernon.
B. On May 20, 1997, the City Council adopted Ordinance No. 1046 granting a
Franchise to Franchisee to install, maintain and operate a pressurized steel pipeline and
appurtenances in and under Alameda Street in the City of Vernon for a term of twenty-
five (25) years.
C. On July 5, 2000, Pacific Pipeline Systems notified the City that 96 feet of 20” crude
oil pipeline and a control cabinet on the median were constructed in the City’s right-of-
way under the Vernon Franchise. The Franchise term expired on May 20, 2022.
D. On November 15, 2021, the Public Works Department received a written request
from the Franchisee to extend the Franchise for an additional term of twenty-five (25)
years.
E. Pursuant to Section 4 of Ordinance No. 1046 and upon written request by
Franchisee, the City Council has the discretion to extend the Franchise by resolution,
without a public hearing, for one additional term of twenty-five (25) years.
F. The City Council wishes to extend the Franchise for an additional twenty-five (25)
years pursuant to Section 4 of Ordinance No. 1046, effective May 21, 2022.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF VERNON AS FOLLOWS:
SECTION 2. The City Council hereby finds and determines that the above
recitals are true and correct.
SECTION 3. The City Council hereby finds that this action is categorically exempt
from the California Environmental Quality Act (CEQA), in accordance with CEQA
Guidelines Section 15301, because it consists of the maintenance, repair or minor
alteration of existing facilities and equipment and involves negligible or no expansion of
an existing use.
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Resolution No. 2024-017
Page 2 of 2 _______________________
SECTION 4. Effective May 21, 2022, the City Council hereby approves the
extension of the Franchise to Pacific Pipeline System, Inc. for an additional twenty-five
25) years.
SECTION 5. The Deputy City Clerk shall certify the passage and adoption of this
resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED August 20, 2024.
JUDITH MERLO, Mayor
ATTEST:
YONNIE PAKER,
Deputy City Clerk
seal)
APPROVED AS TO FORM:
ZAYNAH N. MOUSSA,
City Attorney
I CERTIFY THAT RESOLUTION NO. 2024-017 was passed and adopted by the City
Council of the City of Vernon at the Regular Meeting on August 20, 2024, by the following
vote:
AYES: 3 Council Members: Larios, Rivera, Ybarra
NOES: 0
ABSENT: 2 Council Members: Lopez, Merlo
ABSTAIN: 0
YONNIE PARKER, Deputy City Clerk
seal)
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City Council Agenda Report
Meeting Date:August 20, 2024
From:Daniel S. Wall, P.E., Director of Public Works
Department:Public Works
Submitted by:Lissette Melendez, Project Engineer
Subject
Extension of Franchise Granted to Pacific Pipeline System, Inc.
Recommendation
A. Find that the proposed action is exempt from the California Environmental Quality Act (CEQA),
in accordance with CEQA Guidelines Section 15301, because it consists of the maintenance,
repair or minor alteration of existing facilities and equipment and involves negligible or no
expansion of an existing use; and
B. Adopt Resolution No. 2024-017 finding and determining that the public interest and necessity
require the time extension of Ordinance No. 1046 Granting a Franchise to Pacific Pipeline
System, Inc. to maintain and operate a pressurized steel pipeline and appurtenances in and
under Alameda Street.
Background
On May 20, 1997, the City of Vernon adopted Ordinance No. 1046 granting a franchise to Pacific
Pipeline System, Inc. to install, maintain and operate a pressurized steel pipeline and
appurtenances in and under Alameda Street. This Franchise was granted for a term of twenty-
five years and with the possibility to request a time extension for an additional twenty-five years
at the end of its first term by a resolution of the City Council without a public hearing.
In 1999, Pacific Pipeline System installed approximately 96 feet of twenty-inch diameter,
insulated, pressurized steel petroleum pipeline, and a control cabinet in the median on Alameda
Street to transmit oil and oil products. During the term of this franchise, Pacific Pipeline System
has been making annual payments in accordance with the California Public Utilities Code Section
6231.5 and per Ordinance No. 1046. Pacific Pipeline states that there have not been any oil spills
or leaks in the pipeline during the term of the agreement. According to their records, in 2008, a
protective composite wrap was installed around the line to repair external corrosion. Pacific
Pipeline has provided records of their annual payments from 2007 to 2024.
Ordinance No. 1046 expired in May 2022. Pacific Pipeline requested the extension in 2021 but
the franchise extension was delayed until Pacific Pipeline provided maintenance and fee
information requested by the City. The requested information was provided in July 2024 so the
extension could proceed. The Public Works Department recommends the adoption of Resolution
No. 2024-017 extending the agreement for 25 years.
Fiscal Impact
Approval of the extension of Ordinance No. 1046 will result in the continued annual payment from
the franchisee resulting in additional revenue to the General Fund Franchises and Agreements
Account No. 011-410-000-410300 estimated at $212.05. The franchise fee will be computed and
increased annually by the September Consumer Price Index for the area as cited in the California
Public Code Section 6231.5.
Attachments
1. Resolution No. 2024-017
2. Renewal Request
3. Ordinance No. 1046