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Date: May 19, 2026
To: Honorable Mayor and Members of the City Council
From Aram Chaparyan, City Manager
By: Carlos Huizar, Management Associate | [email protected] Subject: City Manager – Determine California Environmental Quality Act (CEQA) Exemption, Adopt RESOLUTION of Intent to Consider a Petroleum Products Pipeline Franchise Application from Torrance Basin Pipeline Company, LLC, and Set Date for Public Hearing. Expenditure: None.
RECOMMENDATION
Recommendation of the City Manager that City Council:
1. Determine that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines; and
2. Adopt a RESOLUTION of Intent to consider an petroleum products pipeline franchise application from Torrance Basin Pipeline Company, LLC (Torrance Basin) for the transportation of petroleum products along the public right of way within the City of Torrance, in Van Ness Avenue between Del Amo Boulevard and 195th Street; and
3. Set the date of June 9, 2026 for a public hearing at 6:30 p.m. during the regular Council meeting to be held in the LeRoy J. Jackson Council Chamber at 3031 Torrance Boulevard, Torrance, CA 90503.
FUNDING
None required.
DISCUSSION
Pursuant to Section 1460 of the Torrance City Charter, the City is authorized to grant franchises by ordinance. On May 24, 2016, the City Council adopted Franchise Ordinance No. 3800, granting Mobil Pacific Pipeline Company an initial 10-year term with a 10-year option to operate a 2,592- linear-foot petroleum products pipeline along Van Ness Avenue. On July 19, 2016, the City Council subsequently approved a Resolution assigning this franchise to Torrance Basin Pipeline Company, LLC.
The initial 10-year term is scheduled to expire on June 24, 2026. On April 1, 2026, Torrance Basin submitted a Letter of Intent to exercise the 10-year option period. While the original agreement allows for an extension, staff recommends the adoption of a new Ordinance to formalize the second 10-year term. This ensures that the City’s regulatory framework remains current and clearly defines the sunset date for the renewed period. 1 City Council
May 19, 2026
The franchise renewal process requires a two-step legislative action. The adoption of the attached Resolution of Intent achieves the following:
• Formal Acknowledgment: Recognizes the City Council’s receipt and consideration of the renewal application;
• Public Notification: Establishes the required public hearing date for June 9, 2026; and • Legislative Initiation: Commences the legal introduction of the proposed franchise ordinance.
Approval of the Resolution of Intent ensures the City avoids a lapse in the franchise agreement.
During the June 9, 2026, public hearing, the proposed ordinance will be presented for consideration, and Torrance Basin representatives will be available to provide a technical presentation and respond to Council inquiries.
ENVIRONMENTAL FINDINGS
Staff has evaluated the application and determined that the action is exempt from CEQA pursuant to Section 15301 (Existing Facilities). This exemption applies to the operation, repair, or maintenance of existing structures or facilities involving negligible or no expansion of use beyond existing conditions at the time of the City’s determination.
ATTACHMENTS
1. Resolution of Intent
2. Torrance Basin Letter of Intent to Extend
2 ATTACHMENT 1
RESOLUTION NO. 2026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TORRANCE, CALIFORNIA, DECLARING ITS INTENTION
TO CONSIDER A RENEWAL OF A PETROLEUM
PRODUCTS PIPELINE FRANCHISE FROM TORRANCE
BASIN PIPELINE COMPANY, LLC AND SETTING THE
DATE FOR A PUBLIC HEARING AT WHICH PROTESTS
OR OBJECTIONS MAY BE RECEIVED
WHEREAS, Franchise Ordinance No. 3800 was granted to Mobil Pacific Pipeline Company on May 24, 2016 and became effective on June 24, 2016 for a 10-year initial term with a 10-year option period to extend; and
WHEREAS, Mobil Pacific Pipeline Company operated a 10-inch petroleum products pipeline along the west side of Van Ness Avenue approximately 2,592 feet in length; and WHEREAS, on July 19, 2016, the City Council adopted a Resolution to consent to Assignment of Pipeline Franchise Ordinance 3800 from Mobil Pacific Pipeline Company to the Assumption by Torrance Basin Pipeline Company, LLC.
WHEREAS, the current Franchise Ordinance No. 3499 is set to expire on June 24, 2026; and WHEREAS, on April 1, 2026, the City received a notice from Torrance Basin Pipeline Company LLC with intent to utilize the 10-year option period.
WHEREAS, although Torrance Basin Pipeline Company has the right to extend terms, a new Franchise Ordinance is required to formalize the renewed period.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF TORRANCE:
Section 1. The City of Torrance hereby expresses its intent to consider franchise application from Torrance Basin Pipeline Company, LLC to operate and maintain existing 10-inch diameter petroleum products pipeline as described in Exhibit A, attached hereto and incorporated herein by reference.
Section 2. That pipeline franchise application is for a franchise period of 10 years.
Section 3. Franchise fees under the franchise will be paid annually to the City of Torrance pursuant to Section 6231.5(b) of the California Public Utilities Code.
Section 4. A public hearing to consider this application will be held on June 9, 2026 at 6:30 pm. in the City of Torrance, LeRoy J. Jackson Council Chamber, 3031 Torrance Boulevard.
All persons having any objection to the granting of the franchise may appear before the City Council and be heard at that time.
Section 5. A notice of the intention to consider the application for petroleum products pipeline franchise from Torrance Basin Pipeline Company, LLC will be published in a newspaper of general circulation within 15 calendar days following the adoption of this Resolution. The notice will include: date, time, and place of the scheduled public hearing; a statement that the 3 franchisee will pay franchise fees, and failure to pay such fees as prescribed will result in the forfeiture of the franchise.
Section 6. The City Clerk will certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.
INTRODUCED, APPROVED, and ADOPTED this 19th day of May 2026.
George K. Chen
Mayor
APPROVED AS TO FORM: ATTEST:
PATRICK Q. SULLIVAN, City Attorney
By: ________________________________
Tatia Y. Strader Rebecca Poirier, MMC
Assistant City Attorney City Clerk
Attachment: Exhibit A - Description of Torrance Basin Pipeline Company, LLC Pipeline 4 TORRANCE CITY COUNCIL RESOLUTION NO. 2026
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF TORRANCE )
I, Rebecca Poirier, City Clerk of the City of Torrance, California, do hereby certify that the foregoing resolution was duly introduced, approved, and adopted by the City Council of the City of Torrance at a regular meeting of said Council held on the 19th day of May 2026 by the following vote:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
Rebecca Poirier, MMC
Date: ________________________________________ City Clerk of the City of Torrance 5 EXHIBIT A
DESCRIPTION OF TORRANCE BASIN PIPELINE COMPANY, LLC PIPELINE 10-inch Petroleum Products Pipeline
Pipeline commences along on the west side of Van Ness Avenue between Del Amo Boulevard and 195th Street.
TOTAL FOOTAGE 2,592 Feet
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ATTACHMENT 2
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