9C
Date: June 9, 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 – Conduct Public Hearing, Adopt Categorical Exemption Under California Environmental Quality Act (CEQA), and Adopt Pipeline Franchise ORDINANCE . Expenditure: None.
RECOMMENDATION
Recommendation of the City Manager that City Council:
1. Conduct a public hearing to consider replacing Pipeline Franchise Ordinance No. 3499 with Air Products and Chemicals, Inc.; and
2. Adopt a Categorical Exemption under California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities); and
3. Adopt a Pipeline Franchise ORDINANCE with Air Products and Chemicals, Inc. for a twenty-year term; and
4. Adopt an Ordinance Summary for Publication.
FUNDING
None required.
DISCUSSION
Section 1110 of the Torrance City Charter authorizes the City to grant franchises by ordinance.
The City Council previously adopted Pipeline Franchise Ordinance No. 3499 on May 15, 2001, granting Air Products and Chemicals, Inc., a Delaware corporation, the franchise rights to operate a 10-inch internal diameter hydrogen pipeline. This pipeline is 2,790 feet in length and is located along 190th Street between Western Avenue and a point 100 feet west of Van Ness Avenue. The current franchise agreement operates under a 25-year term that is set to expire on July 1, 2026.
Air Products and Chemicals, Inc. has formally applied for a new 20-year term to renew its franchise rights within this existing geographic footprint. The pipeline serves as a critical component of local industrial infrastructure, enabling the continuous and safe transport of hydrogen. City staff has prepared the pipeline Franchise Ordinance for Council’s consideration.
On May 19, 2026, the City Council adopted a Resolution of Intent to consider the application and hold tonight’s public hearing on the matter.
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June 9, 2026
The California Public Utilities Commission (PUC) only regulates fees on common carrier pipelines capable of moving product for multiple users, this single-user pipeline remains non-PUC fee regulated. As a single-user pipeline, the City has successfully negotiated a comprehensive fee structure to capture fair compensation for the use of the public right-of-way.
The negotiated compensation structure includes a one-time Base Granting Fee of $25,000.00, which must be paid to the City on or before the effective date of the Ordinance. In addition, should any pipeline or covered facility require installation, relocation, or replacement during the term, the Grantee must pay a Base Construction Charge. This construction charge is set at $3,384.00 for each one-half mile of trench or fractional part thereof on major streets, and $2,232.00 per one- half mile of trench or fractional part thereof on minor streets, or the actual cost of inspection, whichever is greater.
For the pipeline area occupied within the right-of-way, a Base Franchise Fee will be collected annually at a rate of $4.19 per cubic foot. The agreement also establishes an annual Product Flow Fee based on the actual hydrogen volume moving through the pipeline. Volume is measured in Standard Cubic Feet, which is defined as a quantity of gas contained in one cubic foot of volume, dry, at a temperature of 70 degrees Fahrenheit and a pressure of 14.7 psia. The annual flow fee is calculated by dividing the total annual volume by 365 days, dividing that result by 1,000,000, and multiplying the final figure by $450.00. For example, if the pipeline moves 10,000,000,000 standard cubic feet in a year, the product flow fee would equal $12,228.77. This flow fee will commence accruing on July 1, 2026, and becomes due and payable annually starting July 1, 2027. All fees specified in the agreement will be adjusted annually relative to the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles-Long Beach-Anaheim area, ensuring that subsequent payments never fall below the established base thresholds.
In accordance with legal and municipal notification requirements, a Notice of Public Hearing was published for general circulation in the Daily Breeze on May 29, 2026. Additionally, official public notices were mailed directly to all property owners located within a 500-foot radius of the subject pipeline right-of-way, ensuring ample opportunity for public review and community input prior to the City Council's consideration of the ordinance.
In conclusion, approving the proposed agreement ensures the continued safe and reliable operation of critical local industrial infrastructure while securing updated, market-rate compensation for the public right-of-way over the next twenty years. It is therefore recommended that the City Council conduct the required public hearing to consider replacing Pipeline Franchise Ordinance No. 3499 with Air Products and Chemicals, Inc. Furthermore, the City Council should formally adopt the Categorical Exemption under the California Environmental Quality Act (CEQA) pursuant to Section 15301 for existing facilities, enact the final Pipeline Franchise Ordinance authorizing the twenty-year term, and approve the associated ordinance summary for publication.
ENVIRONMENTAL FINDINGS
The City’s action to grant a franchise for the existing hydrogen product pipeline is categorically exempt from the California Environmental Quality Act (CEQA) in accordance with Section 15301 (Existing Facilities) of the State CEQA Guidelines. This exemption applies directly to projects involving the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of 2 City Council
June 9, 2026
existing public or private structures, facilities, or mechanical equipment involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The proposed project represents a renewal of a Pipeline Franchise ordinance with no expansion of use. No special circumstances exist that would create a reasonable possibility that the project will have a significant adverse impact on the environment, confirming that the project is exempt under CEQA.
ATTACHMENTS
1. Proposed Pipeline Franchise Ordinance
2. Pipeline Franchise Ordinance No. 3499
3. Resolution of Intent
4. May 19, 2026 – Agenda Item 8K (also available online at https://torranceca.primegov.com/viewer/preview?id=0&type=8&uid=ddc83eff-37d4-4c24- b1b3-de802c847a49 )
5. Proof of Publication/Notice of Public Hearing
6. Ordinance Summary
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ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TORRANCE, CALIFORNIA, REPEALING ORDINANCE NUMBER
3499 AND GRANTING TO AIR PRODUCTS AND CHEMICALS,
INC., A FRANCHISE TO CONSTRUCT, LAY, OPERATE, TEST,
MAINTAIN, USE, RENEW, REPAIR, REPLACE, MOVE, CHANGE
THE SIZE AND NUMBER OF, AND REMOVE OR ABANDON IN
PLACE A SYSTEM OF PIPELINES AND APPURTENANCES,
FOR THE PURPOSE OF CONDUCTING, TRANSPORTING,
CONVEYING AND CARRY ING HYDROGEN ON, ALONG, IN,
UNDER AND ACROSS PUBLIC STREETS, WAYS, ALLEYS AND
PLACES WITHIN THE CITY OF TORRANCE .
WHEREAS, Franchise Ordinance No. 3499 was granted to Air Products and Chemicals, Inc , a Delaware Corporation, on May 15, 2001 and became effective June 14, 2001 for a 25-year term; and WHEREAS, Franchise Ordinance No. 3499 operates a 10-inch hydrogen pipeline at 2,790 feet in length along 190th Street between Western Avenue and 100 west of Van Ness Avenue; and WHEREAS, the current Franchise Ordinance No. 3499 is set to expire on July 1, 2026; and WHEREAS, Air Products and Chemicals, Inc. has applied for a new 20-year term; and
WHEREAS , the adoption of this Ordinance is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the State CEQA Guidelines, and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TORRANCE DOES ORDAIN AS FOLLOWS:
Section 1 DEFINITIONS: Whenever in this Ordinance the words or phrases defined in this Section are used, it is intended that they will have the respective meanings assigned to them in the following definitions (unless, in the given instance, the context in which they are used cl early imports a different meaning):
(a) The word "Grantee" means legal person, corporation or entity to which the Franchise contemplated in this Ordinance is granted and its lawful successors and assigns. (b) The word "City" means the City of Torrance, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.
(c) The word "streets" means the public streets, ways, alleys and places as the same now or may hereafter exist within the City.
(d) The phrase "pipes and appurtenances" means pipe, pipeline, cable, main, service, trap, vent, vault, manhole, meter, gauge, regulator, valve, conduit, appliance, attachment, appurtenance and any other property located or to be located in, upon, along, across, under 4 ATTACHMENT 1
2 or over the streets of the City, and used or useful in, or in carrying on the business of, conducting, transporting, conveying and carrying hydrogen. (e) The phrase "lay and use" means to lay, construct, excavate, erect, install, encroach, operate, maintain, use, repair, replace, relocate, or remove. (f) The word "Franchise" means and includes any authorization granted by this Ordinance in terms of a franchise, privilege, permit, license or otherwise to lay and use a system of pipes and appurtenances for conducting, transporting, conveying, and carrying gas, oil, petroleum products and water for any and all purposes in, along, across, upon, over, and under streets within the City. Any authorization, in whatever terms granted, means and includes any license or permit required for the privilege of transacting and carrying on the Grantee’s pipeline business within the City.
(g) The phrase “Pipeline Safety Act” means the Elder California Pipeline Safety Act of 1981 (Government Code §51010, et seq.).
(h) The phrase “City Manager” is the City Manager of the City of Torrance or designee.
Section 2 - NATURE OF FRANCHISE : A Franchise is granted to Air Products and Chemicals, Inc., its successors and assigns, to construct, lay, operate, test, maintain, use, renew, repair, replace, move, change the size and number of and remove or abandon in place a system of pipes and appurtenances, not to exceed ten (10) inches in internal diameter, including any pipes and appurtenances already laid and constructed, together with such valves, fittings, manholes, vaults, pumps and other appliances, appurtenances, attachments or equipment as the Grantee, its successors and assigns may deem necessary or convenient for the purpose of conducting, transporting, conveying and carrying hydrogen, on, along, in, under, over and across the public streets, ways, alleys and places within the City of Torrance, County of Los Angeles, State of California, described on the attached Exhibit A, which is incorporated into this Ordinance by this reference, upon the terms and conditions set forth in the Franchise Act of 1937.
The pipelines and appurtenances will be operated, maintained, replaced or repaired in conformity with all ordinances, rules or regulations in effect at the time of granting of this Franchise, or as prescribed by the City Council and in accordance with the terms and conditions of any permit issued by the City.
Section 3 LOCATION OF PIPES AND APPURTENANCES: So far as is practicable, any pipes and appurtenances laid pursuant to this Franchise will be located along the edge or shoulder of the streets or in the parking areas adjacent to the streets so as not to unreasonably disturb the flow of traffic and where possible will be laid in the unpaved portion of the street.
If the pipes and appurtenances are laid across or along the paved portion of a street, the repair of the street, after the pipes and appurtenances have been laid, will be made by the Grantee at the expense of the Grantee. In the event of an emergency or if the Grantee fails or neglects to make the repairs within, thirty (30) days after notice is given to the Grantee by the City, the City may repair the street at the expense of the Grantee, including, but not limited to, reasonable overhead expenses in the sum no greater than an additional 30% of the actual cost of such work and upon 5 3
presentation of a bill for the expense, the Grantee will pay the bill within thirty (30) days. The amount chargeable to the Grantee will be the actual and reasonable cost of the repair.
All pipes and appurtenances will be located in conformity with the orders of the City Manager of the City of Torrance.
Section 4 RIGHT TO CONSTRUCT AND MAINTAIN PIPES AND APPURTENANCES:
The Grantee will have the right to construct and maintain pipes and appurtenances as may be necessary or convenient for the proper maintenance and operation of the pipes and appurtenances under the Franchise. The Grantee has the right, subject to the terms of the Franchise and such applicable ordinances, rules, or regulations as are now or may hereafter be in force, to make all necessary excavations in the streets, for the construction, testing, and repair of new or existing pipes and appurtenances.
Section 5 TERM : The term of the Franchise is twenty (20) years, commencing on the Effective Date, as provided by Section 30, unless the Franchise is forfeited prior to the end of the term.
Section 6 COMPENSATION:
A. Base Granting Fee As consideration for the Franchise herewith granted, the Grantee shall pay to the City on or before the effective date of this Ordinance a granting fee in the amount of Twenty-Five Thousand Dollars ($25,000.00).
B. Base Construction Charges The Grantee shall pay at the time of the commencement of installation, relocation , or replacement of any pipeline or other facility covered by this franchise, a base construction charge of three thousand three hundred eighty-four ($3,384.00) dollars for each one -half (1/2) mile of trench or fractional part thereof installed, replaced, or relocated on major streets and two thousand two hundred thirty two ($2,232.00) dollars per one-half (1/2) mile of trench or fractional part there of, on minor streets or actual cost of inspection, whichever is greater. The City of Torrance reserves the right to change such base fees at any time after the effective date of this Ordinance, but the base fees applicable to the franchise may only be changed five (5) times during the life of the franchise.
C. Product Flow Fee The Grantee shall pay to the City of Torrance a product flow fee based on the actual hydrogen volume flow through the pipeline measured in Standard Cubic Feet (SCF shall mean a quantity of gas contained in one (1) cubic foot of volume, dry, at a temperatur e of 70 degrees F and at a pressure of 14.7 psia) in the following amount. Total annual volume divided by 365 (days) divided by 1,000,000 multiplied by $450.
EXAMPLE:
If the pipeline flowed 10,000,000 ,000 standard cubic fee in a year, the total flow would be divided by 365 then divided by 365 then divided by 1,000,000 and finally multiplied by $450.00 to determine the annual flow fee for that year:
10,000,000,000 ÷ 365 ÷ 1,000,000 x $450.00 = $12,228.77
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The product flow fee shall commence accruing July 1, 2026, and be due and payable annually commencing July 1, 2027.
D. Base Franchise Fee A base franchise fee shall be paid by the Grantee to the City of Torrance for the pipeline volume occupied by the pipeline at an annual rate of four dollars and nineteen ($4.19) centers per cubic foot. The franchise fee shall be due and payable annually, commencing July 1, 2026. Such franchise fee shall accrue at the end of each annual period for the pipeline area occupied by the greatest number of feet of pipeline covered by the franchise during the franchise payment period. For purposes of this paragraph, the pipeline area occupied by a pipeline or conduit including protective covering, pipe connectors, cathodic protection facilities, pipe castings and other minor appurtenances shall be taken as equivalent to the volume occupied by a cylinder of equal leng th having a diameter of one (1) inch (for metal pipe) or two (2) inches (for plastic pipe) greater than the nominal internal diameter of the pipe or conduit but in no case with an equivalent cylinder diameter less than four (4) inches, and the payment rate therefore shall be computed to the nearest tenth of a cent per lineal foot of pipe. Pipeline volume occupied by an appurtenances such as manholes or vaults shall be computed from the outside dimensions of the structure. The calculation of pipeline volume shall be provided to the Finance Director no later than 30 days after completion of construction of the pipeline by Grantee. The annual fee shall be paid no later than July 1 st of each calendar year. A penalty at the rate of ten (10) percent per month of fraction thereof beyond thirty (30) days after the payment due date shall be charged, but in no event shall such penalty exceed fifty (50) percent.
E. Adjustments
(1) The amount of each fee specified above shall be adjusted at the time payment is due by the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles -Long Beach -Anaheim, CA area (1982 -84 = 100). The adjustment shall be calculated based on the change in the index from July 1, 2026, to the date which is sixty (60) days prior to the due date of the fee.
(2) In no event shall any fee be charged which is less than the base fee amount established above.
(3) The indices specified in paragraph (1) above are calculated and published by the United States Department of Labor, Bureau of Labor Statistics. If the Bureau discontinues the calculation or publication of the Consumer Price Index for All Urban Consumers for the Los Angeles- Long Beach-Anaheim, CA area, and no transposition table is available to convert to another index, the amount of each adjustment shall be computed using the most comparable governmental index then available.
F. Proration of Payments: In the event of abandonment or removal of pipes and appurtenances with the approval of the City as stated elsewhere in this Franchise, construction of new pipes and appurtenances as provided for elsewhere in this Franchise, or in the event that Grantee has paid franchise fees for any of the pipes and appurtenances under a previous franchise agreement with the City, the annual franchise fee required by this Franchise for impacted pipes and appurtenances for the calendar year of such occurrence shall be prorated based on the date of completion for removal or abandonment work, date of commencement of any new construction, 7 5
or the date payments for pipeline and appurtenances ceased under a previous franchise agreement.
Section 7 MAPS AND CAPITAL IMPROVEMENT PLAN : Within ninety (90) days following the date in which any pipes and appurtenances or additional pipes and appurtenances have been laid or constructed under this Franchise, the Grantee will file a map or maps in such forms as may be required by the City Manager showing the accurate location and size of all its pipes and appurtenances then in place, and will, upon installation of any additional pipes and appurtenances, or upon removal, change, or abandonment of all or any portion of the pipes and appurtenances, file a revised map or maps showing the location and size of all such additional, removed, or abandoned pipes and appurtenances as of that day.
Annually, prior to January 1st, the Grantee will submit a projected five-year capital improvement plan for its facilities subject to this Franchise. Scheduling for repair, replacement or modifications will be described by year and location in order to provide information to the City for coordination with its public works capital improvement program. Projects not on such a schedule may be denied a permit unless the work is an emergency or the need was unforeseen. Justification may be required from the Grantee.
Section 8 CONSTRUCTION OF PIPES AND APPURTENANCES:
A. Terms of Construction. The pipes and appurtenances constructe d or maintained pursuant to Section 4 of this Franchise will be constructed and maintained in a good, workmanlike manner and in conformity with all applicable ordinances, rules or regulations now or subsequently adopted or prescribed by the City Council. Grantee will only construct pipelines laid under this Franchise that are subject to the jurisdiction of the State Fire Marshal pursuant to the Pipeline Safety Act and will meet State Fire Marshal standards, and no pipe laid under this Franchise may exceed ten (10) inches in internal diameter. All new pipes and appurtenances laid under this Franchise shall only be constructed in approved locations and under the terms and conditions of a Construction – Excavation Permit granted by the City, in its sole discretion.
Except in an emergency, the Grantee may not excavate in a City street right -of-way without having first applied for and obtained a Construction - Excavation Permit from the City. Such application may include a traffic control plan and other information as required by the City Manager.
The Grantee will pay any fees (including inspection) required by such permit. In event of an emergency, the Grantee will apply for a Construction - Excavation Permit from the City no later than the business day following commencement of such emergency work.
B. Restoration of Streets. The work of constructing, maintaining or repairing all pipes and appurtenances will be conducted with the least practicable hindrance to the use of the streets for purposes of travel, and as soon as such work is completed, all portions of the street that have been excavated or otherwise damaged will be placed in as good condition as they were before the commencement of such work, to the satisfaction of the City Manager. All street repair work will be made by the Grantee at the expense of the Grantee in accordance with the ordinances of the City and the conditions of the Construction – Excavation Permit issued by the City.
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If the pipelines and appurtenances are laid across or along the paved portion of a street, the repair of the street, after the pipelines and appurtenances have been laid, will be made by the Grantee at the expense of the Grantee. If the Grantee fails or ne glects to make the repairs, then 30 days after notice is given to the Grantee by the City or if an emergency necessitates immediate repair of the damage, the City may, in its sole discretion, repair the street at the expense of the Grantee, and upon presentation of a bill for the expense, the Grantee will pay the bill at once. The amount chargeable to the Grantee will be the cost of the repair including reasonable overhead expenses attributed to such repairs in the sum no greater than an additional 30% of t he actual cost of such repairs.
C. Certified Test Results: Conformance Requirements.
(1) Certified Test Results: For those pipes and appurtenances subject to the provisions of the Pipeline Safety Act the testing will be performed in accordance with State Fire Marshal requirements, and certified test results will be requested by the City from the Fire Marshal. In the event the State Fire Marshal fails to provide certified test results to the City, Grantee will provide the test results to the City upon request.
In the event that any pipes and appurtenances cease to be subject to the jurisdiction of the State Fire Marshal pursuant to the Pipeline Safety Act, Grantee will immediately notify the City by written notice. The City reserves the right to require Grantee, at its expense, to abandon or remove any pipes and appurtenances not subject to the jurisdiction of the State Fire Marshal pursuant to the Pipeline Safety Act in a manner as prescribed in Section 12. In lieu of abandonment or removal provided for in this paragraph, the City, in its sole discretion and where not in conflict with Federal or State law, may accept Grantee’s written response plan for such pipes and appurtenances that will include monitoring of pipeline location in compliance with Federal 49CFR1 95.442 and State law 1CCR4216. Grantee acknowledges that all pipelines abandoned under this franchise shall be subject to Section 11 and 12 of this Ordinance and shall remain the property of Grantee until such time as the pipes or appurtenance have been removed from their existing location or transfer of ownership has occurred.
(2) Conformance Requirements:The pipes and appurtenances will be operated, maintained, replaced or repaired in accordance with the latest applicable revision of the “American National Standard Code for Pressure Piping ANSI/ASME B31.4 -2006;” the American Petroleum Institute Standard 1104; the Code o f Federal Regulations, Part 195, Title 49 U.S.C. or other applicable standards and codes, whichever is the most stringent. The pipes and appurtenances will further be operated, maintained, replaced or repaired in accordance with all applicable Federal and/or State standards for the construction of intrastate pipelines as set forth in Federal laws, rules and regulations. Whenever there is a conflict in Federal or State standards, the more stringent standard will prevail. Grantee will provide the City a complete copy of the most current contingency plan required by California Government Code Section 51015, upon request of the City.
Section 9 EMERGENCY EQUIPMENT AND CREWS: At all times during the term of this Franchise, the Grantee will maintain on a twenty -four hour a day basis adequate equipment and a properly trained crew, or qualified contractors, with the ability to quickly shut off the pressure and the flow of contents of the pipes and appurtenances in th e event of an emergency resulting from an earthquake, act of war, civil disturbance, flood, computer malfunction or other cause. 9 7
Section 10 BREAKS OR LEAKS: If any portion of any street is damaged by reason of breaks or leaks in any pipe or appurtenance constructed under this Franchise, the Grantee will, at its own expense, immediately following written or oral notification, repair any such damage and put the street in as good condition as it was in before the break o r leak, to the satisfaction of the City Manager. In the event of an emergency or if the Grantee fails or neglects to make the repairs within thirty (30) days after notice is given to the Grantee by the City, the City may repair the street at the expense of the Grantee including, but not limited to, reasonable overhead expenses in the sum no greater than an additional 30% of the actual cost of such work, and upon presentation of a bill for the expense, the Grantee will pay the bill within thirty (30) days.
Section 11 REARRANGEMENT OF PIPES AND APPURTENANCES:
A. Expense of Grantee.
(1) If any of the Grantee’s pipes and appurtenances endanger the public in the use of the public streets or interfere with or obstruct the use of any street by the public or for the public purposes, the City will have the right to require the Grantee, at the G rantee’s expense, to move, alter or relocate the pipes and appurtenances (the “rearrangement”) to avoid such danger, interference or obstruction, in conformity with the written notice of the City Manager.
(2) Whenever, during the existence of this Franchise, the City changes the grade, width or location of any street or improves any street in any manner, including the laying of any city sewer, storm drain, conduits, gas, water or other pipes, or construct any p edestrian tunnels, or other work of the City, (the right to do all of which is specifically reserved to the City without any admission on its part that it would not otherwise have such rights) and such work will, in the opinion of the City Manager, render necessary any change in the position or location of any pipes and appurtenances of the Grantee in the street, while such work is being done or performed, the Grantee will, at its own cost and expense, do any and all things reasonable to effect such change in position, in conformity with the written notice of the City Manager if the work is for City purposes, including relocation to alternative streets; provided, however, that the City will not require the Grantee to remove its conduits or lines entirely from the streets.
(3) In case the Grantee fails to commence work in compliance with written notice provided in work referenced in subsection A(1), within thirty (30) days after service of the notice upon Grantee, (unless Grantee is unable to comply with such notice by reason of strikes, riots, acts of God, or acts of public enemies), the City Manager may cause the work required in the notice to be done to be performed by the City or, at the election of the City, by a qualified private contractor.
City will pay for, or cause the entity who performs the work to pay for, the cost to effect such change in position. The Grantee agrees to pay all costs attributed to the work including, but not limited to, reasonable overhead expenses in the sum no greater than an additional 30% of the actual cost of such work, within sixty (60) days after delivery of an itemized bill. The cost of doing the work will be considered the actual cost. If the Grantee is dissatisfied with any determination of the City Manager permitted by this Section, it may petition the City Manager to review the City Manager’s decision within ten (10) days after the City Manager ’s decision. During the pendency of such petition, the work required to be done will be suspended.
C. City Utility Systems; Rearrangement at Expense of Others.
(1) The City will have the right to require the Grantee to rearrange any part of the Grantee’s pipes and appurtenances for the accommodation of the City when such 10 8
rearrangement is done for the accommodation of any water, electric, gas or other utility system now or hereafter owned or operated by the City. Except as otherwise provided in subsection B(2) of this Section 11, such rearrangement will be at the Grantee’s expense.
(2) When such rearrangement is done for the accommodation of any person, firm or corporation other than one of the utility systems owned or operated by the City, the cost of such rearrangement will be borne by the accommodated party. The accommodated party, in advance of any rearrangement, will deposit with the Grantee or the City Clerk cash or a corporate surety bond in an amount based upon an itemized statement of costs for the rearrangement, as prepared by Grantee, required to pay t he costs of such rearrange ment and such accommodated party will execute an instrument agreeing to indemnify and hold harmless the Grantee and the City from any and all damages or claims caused by the rearrangement.
(3) The rearrangement referred to in subsection (1) of this subsection B of this Section 11 will be accomplished in conformity with the written notice of the City Manager. In case the Grantee fails to commence work in compliance with the written notice within 120 days after service of the notice upon the Grantee (unless the Grantee is unable to comply with the notice by reason of strikes, riots, acts of God, or acts of pub lic enemies), the City Manager may cause the work required in the notice to be done to be performed by the City or, at the election of the City, by private contractor. The Grantee agrees to pay to the City within sixty (60) days after delivery of an itemized bill covering the cost attributed to the work including, but not limited to, reasonable overhead expenses in the sum no greater than an additional 30% of the actual cost of such work.
If the Grantee is dissatisfied with any determination of the City Manager permitted by this Section, it may petition the City Manager to review the decision within ten (10) days after the determination.
The decision of the City Manager will be final and conclusive City action.
C. Rearrangements of the Pipes and Appurtenances of Others: Nothing in this Franchise will be construed to require the City, or any person, firm or corporation now or hereafter owning a public utility system of any type or nature, to move, alter or relocate any part of its system upon the streets for the convenience, accommod ation or necessity of the Grantee.
D. Notice: Grantee will be given not less than 120 days written notice of any rearrangement of pipes and appurtenances, which Grantee is required to make under this Franchise. The notice will specify in reasonable detail the work to be done by the Grantee and will specify the time that the work is to be accomplished. In the event that the City changes the provisions of any such notice given to Grantee, the Grantee wil l be given an additional period not less than thirty (30) days to accomplish the work.
Section 12 REMOVAL OR ABANDONMENT OF PIPES AND APPURTENANCES:
At the time of expiration, revocation, or termination of this Franchise or of the permanent discontinuance of the use of its pipes and appurtenances, the Grantee will, within thirty (30) days thereafter, make a written application to the City Manager for authority to engage in one, or a combination, of the following: (1) abandon all, or a portion, of such pipes and appurtenances in place; (2) remove all, or a portion, of such pipes and appurtenances; or (3) to transfer ownership of the pipes and appurtenances to the City to use as a conduit. Such application will describe the pipes and appurtenances desired to be abandoned by reference to the map or maps required by Section 7 of this Franchise and will also describe with reasonable accuracy the relative physical condition of the pipes and appurtenances. Thereupon, the City Manager will determine whether 11 9
any abandonment, removal or transfer that is proposed may be effected without detriment to the public interest or under what conditions the proposed abandonment, removal or transfer may be safely effected and will then notify the Grantee of any such requirements and to either remove all, or a portion of such pipes and appurtenances, abandon in place all, or a portion, of such pipes and appurtenances, or transfer ownership of the pipes and appurtenances to the City to use as a conduit. If abandonment in plac e is approved, Grantee will pay the City an abandonment fee of Thirty-Two Dollars ($32.00) per linear foot of pipe so abandoned.
If, for any reason, Grantee suspends operations of any of the pipes and appurtenances contained in this Franchise for a period in excess of ninety (90) days, Grantee will notify the City Manager. During this period of suspended operations, the Grantee will maintain said pipes and appurtenances in accordance with all applicable Federal and/or State standards as directed by the California State Fire Marshal.
If any pipes and appurtenances to be abandoned in place subject to prescribed conditions are not abandoned in accordance with all such conditions, then the City Manager may make additional appropriate orders at his or her sole discretion, including, an order that the Grantee remove all such pipes and appurtenances in accordance with applicable requirements. In the event the Grantee fails to remove any pipes and appurtenances which it is obligated to remove in accordance with such applicable requirements wit hin such time as may be prescribed by the City Manager, then the City may remove such pipes and appurtenances at the Grantee's expense and the Grantee will pay to the City within 60 days after delivery of an itemized bill the cost of removal including, but not limited to, reasonable overhead expenses in the s um no greater than an additional 30% of the actual cost of such work.
Should any pipes and appurtenances abandoned under this Franchise interfere at a future time with any public works project, Grantee will, upon request of the City Manager, remove the pipes and appurtenances and restore the streets and other public property at Grantee's expense.
Following completion of the removal of the pipelines and appurtenances and restoration of the streets to the satisfaction of the City Manager , the City will reimburse to the Grantee any abandonment fees paid to the City attributed to the facilities removed. In the event the Grantee fails to remove any pipelines and appurtenances as prescribed by the City Manager, then the City may remove such pipes and appurtenances at the Grantee's expense and the Grantee will pay to the City within 60 days after delivery of an itemized bill the cost of removal including, but not limited to, reasonable overhead expenses in the sum no greater than an additional 30% of the actual cost of such work, less any abandonment fees paid to the City attributed to the facilities removed.
This Section 12 will survive the termination or expiration of this Franchise.
Section 13 COMPLETION OF WORK: Whenever the Grantee fails to complete any work required of the Grantee by the terms of this Franchise within the time limits required under this Franchise, the City may cause the work to be completed by the City or, at the election of the City, by a qualified private contractor. The Grantee agrees to pay to the City within sixty (60) days after delivery of an itemized bill covering the costs attributed to the work including, but not limited to, reasonable overhead expenses in the sum no greater than an additional 30% of the actual cost of such work.
If the Grantee is dissatisfied with the determination of the amount, it may petition the City Manager to review the amount within ten (10) days after such determination. The decisi on of the City Manager will be final and conclusive City action.
12 10
Section 14 FAITHFUL PERFORMANCE BOND:
A. Delivery of Performance Bond.Prior to the effective date of any sale, transfer, assignment, or lease of this Franchise, or any part thereof, to a person or entity that is not either an affiliate of Grantee or a public utility pipeline, the buyer, transferee, assignee, or lessee (hereinafter referred to as the Grantee) will d eliver to City a performance bond in the sum of $100,000, which secures the faithful performance of the Grantee’s obligations under this Franchise.
The bond will contain the original n otarized signature of an authorized officer of the surety. The bond will be unconditional and remain in full force and effect during the remaining term of this Franchise and will be null and void at the conclusion of the term of this Franchise only if Gran tee promptly and faithfully performs all terms and conditions of this Franchise.
B. Forfeiture.In the event Grantee for any reason becomes unable to, or fails in any way to, perform as required by this Franchise, City may declare the portion of the performance bond that is necessary to recompense and make whole the City, forfeited to the City. Upon partial or full forfeiture of the performance bond, Grantee will promptly take all steps necessary to restore the performance bond to its face amount.
Section 15 INSURANCE:
A. Grantee must maintain at its sole expense the following insurance, subject to self- insurance provisions:
(1) Automobile Liability, including owned, non-owned and hired vehicles with at least the following limits of liability:
(a) Primary Bodily Injury with limits of at least $250,000 per person, $500,000 per occurrence; and
(b) Primary Property Damage of at least $100,000 per occurrence, or combined single limits of at least $1,000,000.
(2) General Liability (GL) including coverage for premises, products and completed operations, independent contractors/vendors, sudden and accidental pollution liability equivalent in scope to the ISO 1971 version of the contamination and pollution exclusion endorsement with a sudden and accidental pollution exception in the then current GL policy, explosion, collapse, and underground (XCU) perils coverage, and personal injury and contractual obligations with combined single limits of coverage of at least $10,000,000 per occurrence. (3) Pollution Liability including coverage for bodily injury or property damage , clean-up costs, remediations expenses, and defense arising out of the sudden and accidental or gradual pollution, discharge, release, or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals or gases, waste materials or other irritants, contaminants or pollutants into or upon land, the atmosphere, or any watercourse or bodies of water with combined single limits of coverage of at least $5,000,000. If pipelines permitted only transport water, Section 15.A.(3) does not apply. If pipelines permitted only transport natural gas (gaseous methane and methane-containing gaseous mixtures), Section 15.A.(3) does not apply, and the Section 15.A.(2) limits are increased to at least $15,000,000 per occurrence.
B. Workers’ Compensation with limits as required by the State of California with statutory limits, and Employers Liability with limits of at least $1,000,000 per accident for bodily injury or disease . 13 11
Contractor hereby grants to Entity a waiver of any right to subrogation which any insurer of said Contractor may acquire against the Entity by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be n ecessary to affect this waiver of subrogation and provide a copy to the Entity, but this provision applies regardless of whether or not an endorsement has been issued.
C. C. City of Torrance, a municipal corporation of the State of California , the City Council, and each member thereof, members of boards and commissions, every officer, agent, official, employee and volunteer must be named as additional insured s under the General Liability and Automobile Liability policies.
D. Except as permitted in subsection "F" of this Section 15, Grantee must provide certificates of insurance and/or endorsements to the City Clerk of the City of Torrance at the request of the City Clerk.
E. Each insurance policy required by this Section must contain a provision that no termination, cancellation or charge of coverage can be made without 20 days’ notice to City.
F. Insurance required by this Franchise will be satisfactory only if issued by companies admitted to do business in California, and/or surplus lines approved carriers, rated "A-" or better in the most recent edition of Best's Key Rating Guide, and/or the equi valent with other established rating agencies, and only if they are of a financial category Class VII or better, unless these requirements are waived by the Risk Manager of City ("Risk Manager") due to unique circumstances. In the event the Risk Manager determines that an increased or decreased risk of loss is posed to City, Grantee agrees that the minimum limits of any insurance policies or performance bonds required by this Agreement may be changed accordingly upon receipt of written notice from the Risk Manager; provided that Grantee will have the right to appeal a determination of increased coverage by the Risk Manager to the City Council of City within 10 days of receipt of notice from the Risk Manager.
F. Grantee will have the option to self -assume such risks and insurance obligations, for which Grantee will, at the request of the City, provide its standard letter of self -assumption, in a form acceptable to City, for risks and insurance obligations agreed to under this Franchise. If, in the sole discretion of the Risk Manager, the Grantee does not have sufficient assets to guarantee self-assumption of such risks and insurance obligations, the Risk Manager may reject or rescind any previous approval by wri tten notice to the Grantee and the Grantee shall obtain the required insurance and provide the City proof of insurance within ten (10) days of receiving notice of such determination from the City. Grantee will have the right to appeal a determination of re jection or rescinding a self-assumption approval from the Risk Manager to the City Council of the City within 10 days of receipt of notice from the Risk Manager.
Section 16 INDEMNIFICATION BY GRANTEE:Grantee will indemnify, defend , and hold harmless City, the City Council, each member thereof, present and future, its officers, agents and employees from and against any and all liability, expenses, including defense costs and legal fees, and claims for damages whatsoever, including, but not li mited to, those arising from breach of contract, bodily injury, death, personal injury, property damage, loss of use, or property loss arising out of Grantee’s exercise of its rights under this Franchise, unless caused by the negligence of the City. The obligation to indemnify, defend and hold harmless includes, but is not limited to, any liability or expense, including defense costs and legal fees, arising from the negligent act s or 14 12
omissions, or willful misconduct of Grantee, its officers, employees, agents, subcontractors or vendors in the exercise of its rights under this Franchise. It is further agreed, Grantee’s obligations to indemnify, defend and hold harmless will apply except to the extent of concurrent negligence, sole negligence, or willful misconduct, on the part of City, the City Council, each member thereof, present and future, or its officers, agents and employees. In the event of any dispute between Grantee and City, as to whether liability arises from the negligence of the City or its officers, employees, agents, subcontractors or vendors, Grantee will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating the City as negligent.
Section 17 ASSIGNMENT:
A. Grantee will not sell, transfer, assign or lease the Franchise, or any part thereof, except with the consent of the City Council. Such sale, transfer, assignment or lease will be made only by filing with the City Council a copy of the duly executed instrum ent of such sale, transfer, assignment or lease, and a written request for the consent of the Council to such sale, transfer, assignment or lease. If such duly executed instrument and such written request are not filed with the City Council before the expi ration of 30 days after the effective date of such sale, transfer, assignment or lease then, upon the expiration of said 30 days, the Franchise will be subject to forfeiture and the City Council may, without notice, by ordinance, repeal the Franchise.
B. As a condition to the granting of consent to such sale, transfer, assignment or lease, the Council may impose such additional terms and conditions upon the Franchise and upon the Grantee or assignee which the City Council may deem to be in the public interest. The City may also condition transfer upon payment of a transfer fee of $ 25,000 to be paid by the transferee to the City. Such additional terms and conditions will be expressed by ordinance.
C. Nothing herein contained will be construed to grant to the Grantee the right to sell, transfer, assign or lease the Franchise, or any part thereof except in the manner aforesaid.
This Section applies to any assignment, whether by operation of law, by volu ntary act of the Grantee or otherwise. No such consent will be required to any transfer of the Franchise in trust or by way of mortgage or hypothecation with all or a part of grantee’s other property for the purpose of securing any indebtedness of Grantee. A merger will not be deemed a sale, transfer, assignment or lease of the Franchise under this Section.
Section 18 DEFAULT:
A. Noncurable Default.
In the event that the Grantee defaults in the performance of any of the terms, covenants or conditions contained in this Franchise and the default is not curable, the City may declare this Franchise forfeited. Upon giving written notice of the forfeiture t o the Grantee, this Franchise will be void and the rights of the Grantee under this Franchise will cease and terminate and the Grantee will execute an instrument of surrender and deliver the surrender to the City. Upon termination, Grantee will begin the p rocess of abandonment or removal of pipelines and appurtenances as provided for in Section 12.
B. Curable Default.
In the event that the Grantee defaults in the performance of any of the terms, covenants and conditions contained in this Franchise and the default is curable, the City will give written notice to the Grantee of the default. In the event that the Grantee d oes not commence the work necessary to cure the default within thirty (30) days after notice is sent or fails to prosecute 15 13
the work diligently to completion, the City may declare this Franchise forfeited. Upon giving written notice of the forfeiture to the Grantee, this Franchise will be void and the rights of the Grantee under this Franchise will cease and terminate and Grantee will execute an instrument of surrender and deliver the surrender to the City. Upon termination, Grantee will begin the process of abandonment or removal of pipelines and appurtenances as provided for in Section 12.
C. Cumulative Remedies.
No provision made for the purpose of securing the enforcement of the terms and conditions of this Franchise will be deemed an exclusive remedy, or to afford the exclusive procedure, for the enforcement of the terms and conditions, but the remedies and proc edure provided in this Franchise, in addition to those provided by law, will be deemed to be cumulative.
Section 19 SUPERSEDURE: This Franchise will be in lieu of any like franchise, if any has been previously granted by the City to the Grantee and any such other franchise, if any, will be deemed to be and will be repealed as of the date upon which the grant of this Franchise is effective, and the rights, liabilities and obligations of the Grantee under such other franchise will thereupon cease and terminate. Should the foregoing be applicable to the grant of this Franchise, the Grantee will pay to the City a ny and all amounts accrued up to the effective date of this Franchise under such other franchise so repealed as shown by statement of such amounts in the form required by such other franchise filed not later than ninety (90) days after this Ordinance becomes effective. Payment of such amounts will be made with the filing of such statement.
Section 20 SCOPE OF RESERVATION: Nothing contained in this Franchise will ever be construed so as to exempt the Grantee from compliance with all applicable ordinances of the City now in effect or which may be subsequently adopted which are not inconsistent with the terms of this Franchise. The enumeration in this Franchise of specific rights reserved will not be construed as exclusive, or as limiting the general reservation in the Franchise made or as limiting such rights as the City may now or hereafter have in law.
Section 21 NOTICE: Any notice required to be given under the terms of this Franchise, the manner of service of which is not specifically provided for, may be served as follows:
Upon the City, by serving the City Manager, or the City Clerk personally, or by addressing a written notice to the City Clerk of the City of Torrance, City Hall, 3031 Torrance Boulevard, Torrance, California, 90503 and depositing such notice in the United States mail, postage prepaid.
Upon the Grantee by addressing a written notice to Grantee, addressed
Real Estate Manager Pipeline and Rights of Way
Air Products and Chemicals, Inc.
7201 Hamilton Boulevard
Allentown, PA 18195-1501
(or such other address as may from time to time be furnished in writing by one party to the other and depositing the notice in the United States mail, postage prepaid).
When the service of any such notice is made by mail, the time of such notice will begin with and run from the date of the deposit of the notice in the United States mail. 16 14
Section 22 SUCCESSORS:The terms and conditions of this Franchise will inure to the benefit of or will bind, as the case may be, the successors and assigns of the parties to this Franchise, subject, however, to the provisions of Section17.
Section 23 ACCPTANCE OF FRANCHISE: This Franchise is granted and will be held and enjoyed only upon the terms and conditions contained within this Franchise, and the Grantee must, within thirty (30) days after the passage of the Ordinance granting this Franchise, file with the City Clerk of the City of Torrance a written acceptance of the terms and conditions.
Section 24 FRANCHISE TO BE STRICTLY CONSTRUED AGAINST GRANTEE: This Franchise is granted upon each and every condition contained within this Franchise and will be strictly construed against Grantee. Nothing will pass hereby unless it be granted in plain and unambiguous terms. Each of the conditions is a material and essential condition to the granting of this Franchise.
Section 25 FORCE MAJEURE: The time within which Grantee is obligated under this Franchise to construct, erect, maintain, operate, repair, renew, change the size of and remove pipes and appurtenances or other improvements will be extended for a period of time equal induration to, and performance in the meantime will be excused on account of and for and during the period of, any delay caused by strikes, threats of strikes, lockouts, war, threats of war, insurrection, invasion, acts of God, calamities, viole nt action of the elements, fire, action or regulation of any governmental agency, law or ordinance, impossibility of obtaining materials, or other things beyond the reasonable control of Grantee.
Section 26 DAMAGE TO PUBLIC PROPERTY: Any damage done directly or indirectly to any public property by Grantee, in exercising directly or indirectly any right, power, or privilege under this Franchise, or in performing any duty under or pursuant to the provisions of this Franchise, will be promptly repaired by Grantee at its sole cost and expense.
Section 27 RECORDS AND PERIODIC REPORTS : At all reasonable times and after prior written notice, Grantee will permit the City, at the request of the City Manager, to examine all property of Grantee erected, constructed, laid, operated or maintained pursuant to this Franchise, together with any appurtenant property of Grantee, and to examine and transcribe any and all books, accounts, papers, maps, and other records kept or maintained by Grantee or under its control, with regard to safety issues associated with this Franchise.
Annually during the life of this Franchise, and concurrently with provision of the annual payment pursuant to Section 6, Grantee will file with the City Manager , for the immediately preceding Franchise period the length of lines in streets, the internal diameter of such lines, the rate per foot per year, and the total amount due to the City.
Section 28 PRIOR FRANCHISES: All pipes and appurtenances erected, constructed, laid, operated or maintained by Grantee in the streets, whether installed by Grantee or not, in the area described in and by virtue of the authority provided by the Ordinance granting this Franchise, prior to the effective date of this Ordinan ce, except those maintained under prior right other than franchise, will become subject to all the terms and conditions of this Ordinance upon its effective date. The parties intend by this provision to ensure that no lineal footage of pipes and appurtenances which is constructed, erected, maintained, operated, repaired, renewed, changed 17 15
in size, or removed by Grantee within the streets of the City of Torrance is inadvertently omitted from this Franchise.
Section 29 SEVERABILITY: If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, the decision will not affect the validity of the remaining portions of the Ordinance. The City Council declares that it would have passed this Ordinance and each section, subsection, sentence, clause and phrase, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases are declared invalid or unconstitutional.
Section 30 EFFECTIVE DATE: This Ordinance will take effect thirty (30) days after the date of its adoption, provided Grantee files an acceptance of the Franchise as required by Section
23. Within fifteen (15) days following adoption, this Ordinance or a summary of this Ordinance , if authorized by the City Council, will be published at least once in the Daily Breeze, a newspaper of general circulation, published and circulated in the City of Torrance.
Section 31 ATTORNEY’S FEES: Except as provided for in Paragraph 16, in any dispute, litigation, arbitration, or other proceeding by which one party either seeks to enforce its rights under this Franchise (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Franchise, the prevailing party will be awarded reasonable attorney’s fees, together with any costs and expenses, to resolve the dispute and to enforce any judgment.
INTRODUCED this 9th Day of June, 2026.
ADOPTED this 23rd day of June, 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 of the City of Torrance
18 16
TORRANCE CITY COUNCIL ORDINANCE NO. ____
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 Ordinance was duly introduced and approved at a regular meeting of the City Council held on the 9th day of June 2026, and was duly adopted at an adjourned regular meeting of said Council held on the 23rd day of June 2026 by the following
roll call vote:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
This ordinance was duly published in accordance with State law (GC 40806).
Date:
Rebecca Poirier, MMC
City Clerk of the City of Torrance
Attachment: Exhibit A - Length and Location of Pipeline
19 ORDINANCE NO. 3499
AN ORDINANCE OF THE GITY COUNCIL OF THE CITY OF
TORRANCE GRANTING TO AIR PRODUCTS & CHEMICALS, INC. A
DELAWARE CORPORATION, A FRANCHISE TO CONSTRUCT,
OPERATE AND MAINTAIN A PIPELINE FOR THE TRANSPORTATION
OF HYDROGEN IN THE CITY OF TORRANCE IN 19oth STREET
BETWEEN WESTERN AVENUE AND WEST OF VAN NESS AVENUE
WHEREAS, Air Products & Chemicals, lnc., a Delaware Corporation, has made application to the City Council for a franchise for pipeline to transport hydrogen in the City of Torrance,
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TORRANCE DOES ORDAIN AS FOLLOWS:
SECTION 1. Terms and conditions of Franchise:
ARTICLE 1
NATURE OF FRAN CHISE
There is hereby granted to Air Products & chemicals, lnc., a Delaware corporation, hereinafter referred to as " Grantee" for the term expiring July 1, 2026 subject, however, to all the limitations and restrictions herein contained, the right, privilege and franchise to construct, erect, maintain, operate, repair, renew, change the size of and remove pipelines, not to exceed 10 inches in internal diameter, for the transportation of hydrogen across the public streets, hiohwavs and allevs ( hereinafter for convenience collectively referred to as " streets") in the City ofiorrince 1.' C| TV") in 190' n Street between Western Avenue and terminating 100 feet west of Van Ness Avenue.
ARTICLE 2
The Grantee shall have the right to construct and maintain such traps, manholes, conduits, valves, appliances, attachments and appurtenances ( hereinafter for convenience collectively referred to as " appurtenances") as may be necessary or convenient for the proper maintenance and operation of the pipelines under said franchise, and said appurtenances shall be kept flush with the surface of the streets and so located as to conform to any order of the Engineering Director of the City of Torrance ( hereinafter referred to as the " Engineering Director'') in regard thereto and not to interfere with the use of the street for travel. The Grantee shall have the right, subject to such ordinances, rules or regulations as are now or may hereafter be in force, to make all necessary excavations in said highways, for the construction and repair of said pipelines and appurtenances.
ARTICLE 3
APPURTENAN CES
LOCATION OF PIPELINES
lf the pipelines shall be lald across or along the paved portion of a street, the repair of the street, after the pipelines have been laid, shall be made by the Grantee at the expense of the Grantee in accordance with the street excavation ordinance of the CITY. ln the event that the Grantee shall fail or neglect to make such repairs, then thirty ( 30) days after notice therefore has been given Grantee by the CITY the CITY may repair said street at the expense
ORICINAL
20 ATTACHMENT 2
of the Grantee, and upon the presentation of a bill therefor, the Grantee shall pay the same at once. The amount so chargeable to the Grantee in such case shall be the actual cost of such repair plus twenty- six percent ( 26%) thereof for overhead.
ARTICLE 4
co NSTRUCTION OF PIPELINES
A. Terms of Con struction
The pipelines and appurtenances constructed or maintained under the provisions franchise shall be constructed and maintained in a good, workmanlike manner of this
and in
conformity with all ordinances, rules or regulations now or hereafter adopted or prescribed by the City iouncil. All pipes laid under said franchise shall be of first class material, and no pipe laid unier this franchise shall exceed 10 inches in internal diameter. Grantee shall pay any and all permit and inspection fees of the CITY.
lnstallation of the pipeline and street pavement repairs within the intersection of l90th Street and Van Ness Avenue, and all of the portion in 190' h Street west of Van Ness Avenue and 600 feet east of Van NeSs Avenue, and all of the portion in Van Ness Avenue south of 190th Street shall be completed by August 31, 2001. Otherwise, no excavation will be allowed within this area until August 31 , 2006.
B. Street Exc avation
Restoration of Streets
1) Permit Required
Eicept in an ernergency, the Grantee shall not exclvate in a CITY street right- of- way without having first applied for and obtained a Construction - Excavation Permit from the Engineeriig Director. Such application may include a traffic control plan and other informition as required by the Engineering Director. For the purpose of this Article' CITY Street" shail mean any public street, alley, way, or any property owned by the clTY. The Grantee shall pay any fees ( including inspection) required by permit. 21 Dutv to RePair Streets
Ai sooi as a- nvoipenne * rasany pipenne * o* is completed, all portions of the streets excavated or otherwise damaged thereby shall be placed in as good condition as they were before the commencement- of such work, to the satisfaction of the Engineering Director. All street repair work shall be made by the Grantee at the expense of the Grantee in accordance with the ordinances of the CITY and the conditions of the Construction - Excavation Permit issued therefore by the Engineering Director.
13) CaDital lmDrovement Plan
iinuaffy]? iorft-. laru, aryTlne crantee shall submit a projected five- year capital improvement plan for its facilities subject to this ordinance. scheduling for repair, replacement or modlfications shall be described by year and location in order to provide information to the ClTy for coordination with its public woiks capital improvement program. Projects not on such a schedule may be denied a permit unless the work is an emergency or the need was unforeseen. Justification may be required from the Grantee. c.
The
appurtenan
purposes o
have been
they were
Director.
work of constructing, maintaini
ces shall be conducted with the least
f travel, and as soon as such work
excavated or otherwise damaged th
before the commencement of such
ng or repairing all pipes, pipelines and
possible hindrance to the use of the streets for
is completed, all portions of the streets which
ereby shall be placed in as good condition as
work, to the satisfaction of the Engineering
21 D. Certified Test Results: Confo rmance Requirements 1) Certified Test Results
For those pipelines subject to the provisions of the Pipeline Safety Act of 1981 Government Code S 51010, et seq.) the testing shall be performed by the State Fire Marshal, and certified test results shall be provided by Grantee to the City of Torrance Fire Marshal. ln 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.
For those pipelines which are not subject to the Pipeline Safety Act of 198' l ' CITY reserves the right to require Grantee, at its expense, to have tests perfOrmed once every three years by an independent testing agency or company approved by the City Manager ( which approval shall not be unreasonably withheld). The said tests shall be of the same kind, and to the same extent as tests performed by the State Fire Marshal. 2) ConformanceRequirements
The pipelhis and appurtenances shall be operated, maintained, replaced or repaired in accordance with the latest revision of the " American Society of Mechanical Engineers ASME 831. 8 - 1999"; " Code of Federal Regulations, Part 192, Title 49 U. S. C." and other applicable standards and codes, whichever is the most stringent. The pipelines and appurtenances shall further be operated, maintained, replaced or repaired in accordance with all applicable Federal and/ or State standards for the construction of intrastate pipelines as set forth in Federal laws, rules or regulations. Whenever there is a conflict in the Federal or State standards, the more stringent standard will prevail.
ARTICLE 5
coM MENCEMENT OF CONSTRUCTION
MAPS AND DATA TO BE FURNISHED
The Grantee, in good faith, shall commence the work of laying the pipelines and appurtenances within foui months from the date of the passage of the ordinance granting this franchise. lf such pipelines be not so commenced or constructed within said time, this franchise may be declared forfeited. The Grantee shall not commence the construction of any pipelines und- er the provision of this franchise or add to such existing pipeline system, if any ihere be, until it first shall have obtained a permit therefor from the Engineering Director- The application of the Grantee shall show the following facts; the length, approximate depth and proposed location of the pipeline proposed to be laid or constructed, the size and description of ine pipe intended to be used, the location of all valves and excess flow valves, and such other facts as the Engineering Director may require. The Grantee shall pay any and all inspection fees of the CliY. Upon the completion of the construction of any pipelines constructed pursuant to said franchise, the Grantee shall render a statement to the Director of Finance of in" City of Torrance ( hereafter referred to as the " Director of Finance"), showing in detail the permit or permits issued and the total length of pipeline within the City of Torrance' ARTICLE 6
Within ninety ( 90) days following the date in which any pipelines or additional pipelines have been laid or constructed under this franchise, the Grantee shall file a map or maps in such form as may be required by the Engineering Director showing the accurate location and size of all its facilities then in place, and shall, upon installation of any additional facilities, or upon removal, change, or abandonment of all or any portion thereof, file a revised map or maps showing the location and size of all such additional, removed or abandoned facilities as of that date. dathodic protection shall be used for facilities installed or maintained pursuant to this franchise. A description of the protective devices shall be furnished to the Engineering Director which shall show the location and type of anodes, including a description of methods to be used 22 as a protection against corrosion and electrolytic leakage. Results of the annual cathodic protection testing shall be submitted annually to the City of Torrance Fire Marshal.
ARTICLE 7
COMPENSATION TO THE CITY
A. Base Grantinq Fee
A base granting fee of twenty- five ($ 25, 000. 00) thousand dollars for pipelines with a total length of one- quarter ( 1/ 4) mile or more or one thousand six hundred ($ 1, 600. 00) dollars for pipelines with a total length of less than one- quarter ( 1/ 4) mile shall be paid within thirty ( 30) days after the City Council acceptance of the franchise.
B. Base Construction Charqes
The Gri all pay at the time of the commencement of installation, relocation, or replacement of any pipeline or other facility covered by the franchise, a base construction charge of three thousand three hundred eighty- four ($ 3, 384. 00) dollars for each one- half ( 1/ 2) mile if trench or fractional part thereof installed, replaced or relocated on major streets and two thousand two hundred thirty two ($ 2, 232. 00) dollars per one- half ( 1/ 2) mile of trench or fractional part thereof, on minor streets or actuat cost of inspection, whichever is greater. The City of Torrance reserves the right to change such base fees at any time after the effective dat, e of this Ordinance, but the base fees applicable to the franchise may only be changed five 5) times during the life of the franchise.
C. Base Franchise Fee
The Grantee snatt pay to the CITY of Torrance the larger of either the Product Flow Fee or the Base Franchise Fee as described herein.
1) Product Flow Fee
The Grantee shall pay to the city of Torrance a product flow fee based on the actual hydrogen volume flow through the pipeline measured in Standard Cubic Feet ( SCF shall ean a quaitity of gas contained in one ( 1) cubic foot of volume, dry, at a temperature of 70 degrees F and it a pressure of 14. 7 psia) in the following amount: Total annual volume divided by 365 ( days) divided by 1, 000, 000 multiplied by $ 450.
EXAMPLE:
lf the pipeline flowed 10, 000, 000, 000 standard cubic feet in a year, the total flow would be divided by 365 then divided by i, OOO, Ooo and finally multiplied by $ 450. 00 to determine the annual flow fee for that Year:
l O, OOO, OOO, OOO + 365 + ' l , 000, 000 x $ 450. 00 = $ 12' 228. 77 The product flow fee shall commence accruing July 1' 2001, and be due and payable annually commencing July 1, 2002.
2. Base Franchise Fee
A base francnise fee shall be paid by the Grantee to the City of Torrance for the pipeline volume occupied by the pipeline at an annual rate of one dollar and sixty- eight ($ 1. 68) cents per cubic foot. The franchise fee shall be due and payable annually, commencing July 1, 2002. Such franchise fee shall accrue at the end of each annual period for the pipeline area occupied by the greatest number of feet of pipeline covered by the franchise during the franihise paymeniperiod. For purposes of this paragraph, the pipeline area occupied by a pipeline oi conduit including protective covering, pipe connectors, cathodic protection facilities' pipe castings and other minor appurtenances shall be taken as equivalent to the volume occupred by a cylinder of equal length having a diameter of one (' 1) inch ( for metal pipe) or two 23 2) inches ( for plastic pipe) greater than the nominal internal diameter of the pipe or conduit but in no case with an equivalent cylinder diameter less than four ( 4) inches, and the payment rate therefore shall be computed to the nearest tenth of a cent per lineal foot of pipe. Pipeline volume occupied by an appurtenances such as manholes or vaults shall be computed from the outside dimensions of the structure. The calculation of pipeline volume shall be provided to the Finance Director no later than 30 days after completion of construction of the pipeline by Grantee. The annual fee shall be paid no later than July ' l' r of each calendar year. A penalty at the rate of ten ( 10) percent per month of fraction thereof beyond thirty ( 30) days after the payment due date shall be charged, but in no event shall such penalty exceed fifty ( 50) percent.
D. Adiustmcnls(
1) The amount of each fee specified above shall be adjusted at the time payment is due by the percentage change in the Consumer Price lndex, all Urban Consumers ioitne Los Angeles- Anaheim- Riverside area ( 1982- 84 = 100), for the period July 1, 1991 to the date which is sixty ( 60) days prior to the due date of the fee. 21 ln no event shall any fee be charged which is less than the base fee amount established above.(
3) The indices specified in paragraph ' l above are calculated and published by the United States Department of Labor, Bureau of Labor statistics. lf the Bureau discontinues the calculation or publication of the Consumer Price lndex, all Urban Consumers for the Los Angeles- Anaheim- Riverside area ( 1982- 84 = 100), and no transposition table is available to con- vert to another index, then the amount of each annual adjustment in base fees shall be computed by using a comparable governmental index.
ARTICLE 8
EMERGENCY E QU IPMENT AND CREWS
At all times during the term of this franchise, the Grantee shall maintain on a hventy- four 24) hour a day basis personnel to operate the pipeline system, including monitoring- the leak detection system and the communications cable. ln addition, during the term of this franchise, the Grantee shall maintain on a twenty- four ( 24) hour basis adequate standby equipment and properly trained emergency standby crews, for the purpose of implementing emergency r." rpon"" such as repa- irs, oil spill cleanup, preventing or minimizing damage or the threat of damage to people or the environment in the event of an emergency resulting from an earthquake, act of war, civil disturbance, flood, leakage or other cause. The emergency standby crews and equipment shall be capable of being at the site requiring the emergency call- out within two ( 2) hours.
ARTICLE 9
BREAKS OR LEAKS
lf any portion of any street shall be damaged by reason of breaks or leaks in any pipe or conduit constructed under this franchise, the Grantee thereof shall, at its own expense, immediately following written or oral notification thereof, repair any such damage - and
put such
street in ai good coldition as it was in before such break or leak, to the satisfaction of the Engineering Director. Grantee shall pay all applicable permits and inspection fees.- ThJapplicant shall be responsible to reimburse the CITY for all costs associated with ClTy services provided during such break or leak. The reimbursement shall include the current rate of overhead being charged by the CITY for the reimbursable work. Reimbursable work shall include, but not 5e limited to, inspection, traffic control, police, fire, street, environmental and other CITY response forces.
24 ARTICLE 1O
REARRANGEMENT OF FACILITIES
A. Expense of Glanlee(
1) lf any of the Grantee' s facilities shall endanger the public in the use of the public streets or interfere with or obstruct the use of any street by the public or for public purposes, the CITY shall have the right to require the Grantee, at the Grantee' s expense, to move, alter or relocate the Same ( hereinafter called " rearrangement") to avoid such danger, interference or obstruction, in conformity with the written notice of the Engineering Director. 2) Whenever, during the existence of this franchise, the CITY shall change the grade, width or location of any street or improve any street in any manner, including the laying of any sewer, storm drain, conduits, gas, water or other pipes, or construct any pedestrian tunneis, or other work of the CITY, ( the right to do all of which is specifically reserved to the ClTy without any admission on its part that it would not otherwise have such rights) and such work shall, in the opinion of the Engineering Director, render necessary any change in the position or location of any facilities of the Grantee in the street, including the support thereof, while such work is being done or performed, the Grantee shall, at its own cost and expense, do any and all things to effect such change in position, or location, in conformity with the written noiice of the Engineering Director; provided, however, that the CITY shall not require the Grantee to remove its conduits or lines entirely from such street. 3) ln case the Grantee shall fail to commence work in compliance with such written notice within thirty ( 30) days after service of same upon the Grantee, ( unless the Grantee shall be unable to compiy with such notice by reason of strikes, riots, acts of God, or acts of public enemies, the Enginiering Director may cause the work required in said notice to be done by the ClTy or, at the election bt tne CITY, by a private contractor. The Grantee agrees to pay the costs thereof within ten ( 10) days after delivery of an itemized bill therefor to it, or its local agent, or manager. The cost of doing said work shall be considered the actual cost, plus trienty- six percJnt ( 26%) thereof for overhead. lf the Grantee is dissatisfied with any determination of the Engineering Director permitted by this section, it may petition the City Manager to review the same within ten ( 10) days after such determination. During the pendency of suc- h petition, the work so required to be done shall be suspended. The decision of the City I\,, lanager thereon shall be final and conclusive.
B. CITY Utilitv Svstems; Arranqe ment at ExDense of Others art of the
done for
1) The CITY shall have the right to require the Grantee to rearrange any p Grantee, s facilities for the accommodation of the clTY when such rearrangement is the accommodation of any water, electric, gas or other utility system now or hereafter owned or operated by the CITY. Eicept as otherwise provided in subsection B( 2) of this Article 10, such arrangement shall be at the Grantee' s expense.
21 when such rearrangement is done for the accommodation of any person, firm or corporaiion other than one of said utility systems owned or operated by the CITY the cost of such arrangement shall be borne by the accommodated party. 3) The rearrangement referred to in subsections ( 1) and ( 2) of sectior B of this Article i O shall be accomplished in conformity with the written notice of the Engineering Director. ln case the Grantee shall fail to commence work in compliance with such written notice within thirty ( 30) days after service of same upon the Grantee ( unless the Grantee shall be unable to compiy with iuch notice by reason of strikes, riots, acts of God, or acts of public enemies), the Engineering Director may cause the work required in said notice to be done by the CITY or, at the election of the CITY, by a private contractor. The Grantee agrees to pay to the CtTy within ten ( 10) days after delivery of an itemized bill covering the cost of performing such work, an amount equai to twenty- six percent ( 26%) thereof for overhead. lf the Grantee is 25 dissatisfied with any determination of the Engineering Director permitted by this section, it may petition the City Manager to review the same within ten ( 10) days after such determination. The decision of the City Manager thereon shall be final and conclusive.
C. Rearranq ements of the Facilities of Others
REMO L OR ABANDON MENT OF FAC ILITIES
Nothing in this franchise contained shall be construed to require the CITY to move, a Iter or relocate any of its facilities upon said streets, at its own expense, for the convenience, accommodation or necessity of any other public utility, person, firm or corporation, or to require the clTY, or any person, firm or corporation now or hereafter owning a public utility system of any type or nature, to move, alter or relocate any part of its system upon said streets for the convenience, accommodation or necessity of the Grantee.
D. Notice
Tne Grantee shall be given not less than thirty ( 30) days written notice of any rearrangement of facilities which the Grantee is required to make hereunder. Such notice shall specify in reasonable detail the work to be done by the Grantee and shall specify the time that such work is to be accomplished. ln the event that the CITY shall change the provisions of any such notice given to the Grantee, the Grantee shall be given an additional period not less than thirty ( 30) days to accomplish such work.
ARTICLE 11
At the time of expiration, revocation, or termination of this franchise or of the permanent discontinuance of the use of its facilities, or any portion thereof, the Grantee shall, within thirty 30) days thereafter, make a written application to the Engineering Director for authority either:
it; to a' UanOon all, or a portion, of such facilities in place, or ( 2) to remove all, or a portion, of iuch facilities. Such application shall describe the facilities desired to be abandoned by reference to the map or maps required by Article 6 of this ordinance and shall also describe with reasonable accuracy the relative physical condition of such facilities' Thereupon, the Engineering Director shail determine whether any abandonment or removal which is thereby pro- poseO riay be effected without detriment to the public interest or under what conditions such proposed abindonment or removal may be safely effected and shall then notify the Grantee, according to such requirements as shall be specified in the Engineerrng Directofs order' and within ninety ( 90) days thereafter, to either:(
a) Remove all, or a portion of such facilities, or
b) Abandon in place all, or a portion, of such facilities.
During ihe period of any suspended operations, normal pipeline surveillance and all cathodic protiction systems to insure pipeline integrity. This shall continue until such time as the line is returned to service or abandoned in accordance with this Article. lf any facilities to be abandoned in place subject to prescribed conditions shall not be abandoned in accordance with all such conditions, then the Engineering Director may make additional appropriate orders, including, if he deems desirable, an order that the Grantee shall remove all such facilities in accordance with applicable requirements. ln the event the Grantee shall fail to remove any facilities which it is obligated to remove in accordance with such applicable requirements within such time as may be prescribed by the Engineering Director. then the CITY may remove such facilities at the Grantee' s expense and the Grantee shall pay to the CITY the aciual cost thereof to the CITY plus tvventy- six ( 26%) for overhead' should any pipeline or portions thereof under this franchise be abandoned in accordance with directives of the State Fire Marshal, whether or not payments therefor have terminated, and said pipeline or portions thereof interfere at a future time with any public works 26 project, Grantee shall, upon request of Engineering Director, remove said pipeline or portions thereof at Grantee' s expense.
ARTICLE 12
COMPLETIO N OF WORK
Whenever the Grantee fails to complete any work required of the Grantee by the terms of this franchise within the time limits required hereby, the CITY may cause such work to be completed by the CITY or, at the election of the City, by a private contractor. The Grantee agrees to pay to the CITY within ten ( 10) days after delivery of an itemized bill covering the cost of performing such work, an amount equal to twenty- six percent ( 26%) thereof for overhead. lf the Grantee is dissatisfied with the determination of said amount, it may petition the City Manager to review the same within ten ( 10) days afler such determination. The decision of the City Manager shall be final and conclusive.
ARTICLE 13
The franchise is granted on the condition that the Grantee has now and shall at all times during the life of this franchise keep on file with the CITY a bond running to the CITY in the sum of one Hundred Thousand Dollars ($ 100, 000. 00) executed by a reputable indemnity company entitled to do business in the State of California. The said bond shall contain the conditions that the Grantee shall well and truly observe, fulfill and perform each and every term and condition of this franchise, and that in case of any breach of condition of said bond the whole amount of the sum therein named shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and from the sureties upon said bond. The provisions of this Article i3 shall not exempt the Grantee from compliance with any of the laws of the CITY in force during the term hereof which require the Grantee to post a bond other than the bond required by this Article 13.
ARTICLE 14
BOND
INSURANCE
A. Grantee must maintain at its sole expense the following insurance, subject to self insurance provisions:(
1) Automobile Liability, including owned, non- owned and hired vehicles, with at Ieast the following limits of liability:(
a) Primary Bodily lnjury with limits of at least $ 250, 000 per person, 500, 000 per occurrence; and(
b) Primary Property Damage of at least $ 100' 000 per occurrence. 2) General Liability including coverage for premises, products and completed operations, independent contractors/ vendors, personal injury and contractual obligations with combined single limits of coverage of at least $ 5, 000' 000 per occurrence. 3) Pollution Liability including coverage for bodily injury or property damage arising out of the sudden and accidental discharge, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals or gases, waste materials or other irritants, contaminants or pollutants into or upon land, the itmosphere, or any watercourse or bodies of water with combined single limits of coverage of at least $ 5, 000, 000.( 4) Workers' Compensation with limits as required by the State of California and Employers Liability with limits of at least $ 500, 000. 27 B. CITY, the City Council, and each member thereof, members of boards and commissions, every officer, agent, official, employee and volunteer must be named as additional insured under the general liability policy.
C. Grantee must provide certificates of insurance and/ or endorsements to the City Clerk of the City of Torrance at the request of the City Clerk.
D. Each insurance policy required by this Paragraph must contain a provision that no termination, cancellation or change of coverage can be made without thirty days notice to CITY,
E. lnsurance required by this Agreement will be satisfactory only if issued by companies admitted to do business in California, rated " B+" or better in the most recent edition of Best' s Key Rating Guide, and only if they are of a financial category Class Vll or better, unless thess requirements are waived by the Risk Manager of clTY (" Risk Manager") due to unique circumstances. ln the event the Risk Manager determines that an increased or decieased risk of loss is posed to CITY, Grantee agrees that the minimum limits of any insurance policies or performance bonds required by this Agreement may b_ e changed accordingly upon receipt of written notice from the Risk Manager; providgd that Grantee will nave tne- rigni to appeai a determination of increased coverage by the Risk Manager to the City Council of CITY within 10 days of receipt of notice from the Risk Manager.
ARTICLE 15
INDEMN IFICATION BY GRANTEE
The Grantee, by the acceptance or use of the franchise hereby granted, agrees to keep and save free and harmless the clTY, the city council, present and future, and each member thereof, its officers, agents, and/ or employees against any and all claims, demands, or causes of action, Iosses, costs, expenses, liabitities, litigation, damages, settlements, recoveries and deficiencies of any nature whatsoever, including interest, penalties and reasonable attorneys' fees and costs which may be asserted, prosecuted or established against them, or any of them, for damage to persons, or property, of whatsoever nature, arising out of the use. by it of the clTY streets hereunder or arising out of any of the operations or activities of the Grantee pursuant to this franchise, whethei such damage shall be caused by negligence or otherwise, excepting therefrom, however, any claim, demand or cause of action, which may be asserted, pror". rtid or established against the CITY under the provision of the Workmen' s bompensation Act for injury to, or the death of any of CITY' s officers, agents, or employees while acting within the siope ot their employment; and further excepting therefrom any claim, demand oicarse of action arising out of the negligence of the CITY, its officers, agents and/ or employees.
ARTICLE 16
ASSIGNMENT
The Grantee shall not sell, lease, or assign this franchise or the rights or privileges granted hereby, or any of them, without the consent of the CITY Council nor shall this franchise 5e sold, leased or asiigned except by a duly executed instrument in writing filed in the office of the city clerk; and nothing in this franchise contained shall be construed to grant to the Grantee any right to sell, leale, or assign this franchise, or any of the rights or privileges hereby granted, e* ce[ t in the manner aforesiid; provided, however, that the aforesaid provisions of t- his Article 16 shall not prohibit the Grantee from using its pipelines for the purpose of transporting hydrogen for other persons, but in such event the Grantee shall be responsible to 28 the CITY for the full performance and observance of the terms and conditions of this franchise by itself and such other persons.
ARTICLE 1Z
DEFAULT
A. Noncurable Default
ln the event that the Grantee shall default in the performance of any of the terms, covenants or conditions herein and such default is not curable, the CITY may declare this franchise forfeited. Upon giving written notice thereof to the Grantee, this franchise shall be void and the rights of ihe Giantee hereunder shall cease and determine and the Grantee shall execute an instrument of surrender and deliver the same to the CITY.
B. rable Defau
ln the event that the Grantee shall default in the pe rformance of any of the terms, covenants and conditions herein and such default is curable, the CITY may give written notice to the Grantee of such default. ln the event that the Grantee does not commence the work necessary to cure such default within thirty ( 30) days after such notice is sent or prosecute such work diliglnfly to completion, the CITY may declare this franchise forfeited. Upon giving written notice liereof to the Grantee, this franchise shall be void and the rights of the Grantee hereunder shall cease and determine and the Grantee shall execute an instrument of surrender and deliver the same to the CITY.
c. c umulative Remedies
No provision herein made for the purpose
conditions of this franchise shall be deemed an
procedure, for the enforcement of said terms an
herein provided, in addition to those provided by I
of securing the enforcement of the terms and
exclusive remedy, or to afford the exclusive
d conditions, but the remedies and procedure
aw, shall be deemed to be cumulative.
ARTIC LE 18
SU PERSEDURE
This franchise shall be in lieu of any like franchise, if any heretofore granted by the CITY to the Grantee and such other franchise, ii any, shall be deemed to be and shall be repealed as of the date upon which the grant of this franchise is effective as to a Grantee under such other franchise, and the rights, lia- bilities and obligations of such Grantee under such other franchise in" ti tn" r" rpon cea; e and terminate. Should the foregoing be applicable. to the grant of this franchise, the Grantee shall pay to the clTY any and all amounts accrued up to the effective date of this franchise under such other franchise so repealed as shown by statement of such amounts in the form required by such other franchise filed not later than ninety ( 90) days after this ordinance becomes effective. Payment of such amounts shall be made with the filing of such statement.
ARTICLE 19
SCOPE O F RESERVAT toN
Nothing herein contained shall ever be construed so as to exempt the Grantee from compliance wiih all ordinances of the CITY now in effect or which may be hereafter adopted which are not inconsistent with the terms of this franchise. The enumeration herein of specific rights reserved shall not be construed as exclusive, or as limiting the general reservation herein ude or. as limiting such rights as the CITY may now or hereafter have in law' 29 ARTICLE 20
NOTICE
Any notice required to be given under the terms of this franchise, the manner of service of which is not specifically provided for, may be served as follows:
Upon the City, by serving the City Manager, or the City Clerk personally, or by addressing a wiitten notice to the City Clerk of the City of Torrance, City Hall, 3031 Torrance Boulevard, Torrance, California, and depositing such notice in the United States mail, postage prepaid.
Upon the Grantee by addressing a written notice to Grantee, addressed to:
Real Estate Manager Pipelines and Rights of Way
Air Products and Chemicals, lnc.
7201 Hamilton Boulevard
Allentown, PA. 18195- 1501
When the service of any such notice is made by mail, the time of such notice shall begin with and run from the date of the deposit of same in the United States mail.
ARTICLE 2
SUCC ESSORS
The terms herein shall inure to the benefit of or shall bind, as the case may be, the successors and assigns of the parties hereto, subject, however, to the provisions of Article 16.
ARTICLE 22
RESTRICTIO N ON SERVICE
The Grantee shall not use any of the lines laid pursuant to the provisions of this franchise for the purpose of acting as a public utility. ln the event that the Grantee shall violate the provisions of ihis Article 22 th; CITY may give written notice to the Grantee of such default. ln the event that such default is not cured within thirty ( 30) days after said notice is sent, the Ctrf . ry declare this franchise void in accordance with the provisions in the last sentence of Section B of Article 17.
ARTICIE2s
ACCEPTANC E OF FRANCHISE
This franchise is granted and shall be held and enjoyed only up_ on the terms and conditions herein containei, and the Grantee must, within thirty ( 30) days after the passage of tre ordinance granting said franchise, file with the city clerk of the city of Torrance a written acceptance of such terms and conditions.
ARTICLE 24
FRAN HISE TO BE STRICTLY C ONSTRUED AGAINST GRANTEE
This franchise is granted upon each and every condition herein contained and shall forever be stricly construJd againsiGrantee. Nothing shall pass hereby unless it be granted in plain and unambiguous terms. Each of said conditions is a material and essential condition to the granting of this franchise.
ARTIC LE 25
FORCE MAJE URE
Except as provided in Article 4. A, the time within which Grantee is obligated hereunder to construct, erect, maintain, operate, repair, renew, change the size of and remove pipelines or other improvements shall be extended for a period of time equal in duration to, and 30 performance in the meantime Shall be excused on account of and for and during the period of, any delay caused by strikes, threats of strikes, lockouts, war, threats of war, insurrection, inyasion, acts of God, calamities, violent action of the elements, fire, action or regulation of any governmental agency, law or ordinance, impossibility of obtaining materials, or other things beyond the reasonable control of Grantee.
ARTICLE 26
D AMAGE TO PUBLIC PROPERTY
At all reasonable times and after prior written notice, Grantee shall permit the CITY' at the request of the Engineering Director, to examine all property of Grantee erected, constructed, laid, operaled or maintained pursuant to the Franchise, together with any appurtenani property of Grantee, and to examine and transcribe any and all books, accounts, papers, maps, and other records kept or maintained by Grantee or under its control, with regard to safety issues associated with the Franchise.
brantee during the life of the Franchise, concurrent with provision of the annual payment pursuant to Article 7, shall file with the Engineering Director two - copies.
of a report
iiii" O Uy the oath of a duly authorized representative of Grantee showing for the immediately precedinj franchise period ihe length of lines in streets, the internal diameter of such lines, the iate per" foot per year, and the total amount due to the CITY and any other information necessary to calculate the compensation due to the CITY under Article 7' ARTICLE 28
RECORDS AND PERIODIC RE PORTS
PRIOR F RANCHISES
All facilities erected, constructed, laid, operated or maintained by Grantee in the streets, whether installed by Grantee or not, in the area described in and by virtue of the authority provided by the ordinance granting the franchise, prior to the effective date of said ordinance, lxcept tnoie maintained ,, ider prior right other than franchise, shall become subject to all the terms and conditions of such oidinanc! , pon such effective date. The parties intend by this piovislon to ensure that no lineal footage of pipetine which is constructed, erected, maintained, bperated, repaired, renewed, changed in size, or removed by Grantee within the City of Tonance, foi the purposes stated in Article 1, be inadvertently omitted from this Amended and Restated Franchise Agreement.
ARTICLE 29
SEVE RABILITY
Any damage done directly or indirectly to any public property by Grantee, in exercising directly orindirectly any right, power, or privilege under this franchise, or in performing any duty under or pursuant to the provisions of this franchise, shall be promptly repaired by Grantee at its sole cost and expense.
ARTICLE 27
lf any section, subsection, sentence, clause or phrase of this ordinance 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 ordinance. in" city Council hereby declares that it would have passed this ordinance and each section. subsection, sentence, ilause and phrase thereof, irrespective of the fact that any one or more sections, Subsections, Sentences, clauses or phrases are declared invalid or unconstitutional' 31 sEcTtoN 2.
This ordinance shall take effect thirty days after the date of its adoption, and prior to the expiration of fifteen days from the passage thereof, a Summary shall be published at least once in ihe Daily Breeze, a daily newspaper of general circulation, published and circulated in the City of Torrance.
INTRODUCED AND APPROVED this 8th dav of May, 2001.
ADOPTED AND PASSEO this 15th day of May, 2001 .
Dee Hardison, Mayor
APPROVED AS TO FORM:
JOHN L. FELLOWS III, CITY ATTORNEY
ATTEST:
By
Ronald T. Pohl
Assistant City AttorneY
Sue
City Clerk of the City of Torrance
32 STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF TORRANCE
SS
Cribbs, Messerlian, Nowatka, Scotto,
Walker, Witkowsky, and Hardison.
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS: None.
ABSTAIN: COUNCILMEMBERS: None.
ABSENT: COUNCILMEMBERS: None.
City erk of the City of Torrance
TORRANCE CITY COUNCIL ORDINANCE NO. 3499
l, Sue Herbers, City Clerk of the City of Torrance, California, do hereby certify that the foregoing Ordinance was duly introduced and approved. by the City Council of the City of Torrance at a regular meeting held on the 8'" day of May 2001 and adopted and passed by said Council at a regular meeting held on the 15th day of May 2001 by the following roll call vote:
S-^\*)
33 RESOLUTION NO. 2026.42
A RESOLUTION OF THE C¡TY COUNCIL OF THE CITY
OF TORRANCE, CALIFORNIA, DECLARING ITS
INTENT¡ON TO GONSIDER A RENEWAL OF A
HYDROGEN PIPELINE FRANCHISE ORDINANCE FROM
AIR PRODUCTS AND CHEMICALS, INC. AND SETTING
THE DATE FOR A PUBLIC HEARING AT WHICH
PROTESTS OR OBJECTIONS MAY BE RECEIVED
WHEREAS, Franchise Ordinance No. 3499 was granted to Air Products and Chemicals, lnc, a Delaware corporation, on May 15, 2001 and became effective on June 15, 2001 for a 25-year term; and
WHEREAS, Franchise Ordinance No. 3499 operate a 1O-inch diameter hydrogen pipeline at 2,790 feet in length along 190th Street between Western Avenue and terminating 100 feet west of Van Ness Avenue; and
WHEREAS, the current Franchise Ordinance No. 3499 is set to expire on July 1,2026; and WHEREAS, on March 25, 2026, the City received an application from Air Products and Chemicals, lnc. to renew the pipeline franchise.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF TORRANGE:
Section 1. The City of Torrance hereby expresses its intent to consider franchise application from Air Products and Chemicals, lnc. to operate and maintain existing 1O-inch diameter hydrogen 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 twenty (20) years.
Section 3. Franchise fees under the franchise will be calculated by a cubic footage and product flow rate schedule agreed to by the City and Air Products and Chemicals, lnc. through adoption and acceptance of this franchise and 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 tlaving 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 hydrogen pipeline franchise from Air Products and Chemicals, lnc. 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 franchisee will pay franchise fees, and failure to pay such fees as prescribed will result in the forfeiture of the franchise.
34 ATTACHMENT 3
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. f NTRODUCED, APPROVED, and ADOPTED this 19th day of May 2026 I
George K. Chen
APPROVED AS TO FORM:
PATRICK Q. SULLIVAN, City Attorney ATTEST
Strader, Assistant City Attorney , MMC, City Clerk
Attachments:
Exhibit A - Description of Air Products and Chemicals, lnc. Hydrogen Pipeline TORRANCE CITY COUNCIL RESOLUTION NO. 202642
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF TORRANCE
)
)
)
SS
l, 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 roll call vote:
AYES COUNCILMEMBERS Gerson, Kaji, Kalani,
Mayor Chen.
None.
None.
None.
Lewis, Mattucci, Sheikh, and
NOES:
ABSTAIN
ABSENT:
COUNCILMEMBERS
COUNCILMEMBERS
COUNCILMEMBERS
Date íleul+ç
Poirier,
City Clerk of the City of Torrance
35 EXHIBIT A
DESCRIPTION OF AIR PRODUCTS AND CHEMICALS, INC HYDROGEN PIPELINE 1 0-inch Hvdrooen Pipeline
Commencing at City boundary line at the intersection of 190th Street and Western Avenue, pipeline proceeds west along the north side of 190th Street terminating approximately 100 feetofVan NessAvenue.
TOTAL FOOTAGE 2,790feet
36 37
ATTACHMENT 4
Daily Breeze
2615 Pacific Coast Highway #329
Hermosa Beach, California 90254
(310) 543-6635
0011795568
Carlos Huizar
3031 Torrance Boulevard
Torrance, CA 90503
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Los Angeles
I am a citizen of the United States and
a resident of the County aforesaid; I
am over the age of eighteen years,
and not party to or interested in the
above-entitled matter. I am the
principal clerk of the printer of Daily
Breeze, a newspaper of general
circulation, printed and published in
the City of Torrance*, County of Los
Angeles, and which newspaper has
been adjudged a newspaper of
general circulation by the Superior
Court of County of Los Angeles, State
of California, under the date of June
15, 1945, Decree No. Pomo C-606.
The notice, of which the annexed is a
printed copy (set in type not smaller
than nonpareil), has been published in
each regular and entire issue of said
newspaper and not in any supplement
thereof on the following dates, to wit:
05/29/2026
I certify (or declare) under the penalty
of perjury that the foregoing is true and
correct.
Dated at Hermosa Beach, California
On this 29th day of May, 2026.
______________________________
Signature
*Daily Breeze circulation includes the following
cities: Carson, Compton, Culver City, El
Segundo, Gardena, Harbor City, Hawthorne,
Hermosa Beach, Inglewood, Lawndale,
Lomita, Los Angeles, Long Beach, Manhattan
Beach, Palos Verdes Peninsula, Palos Verdes,
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AIR PRODUCTS FRANCHISE ORDINANCE NOTICE - Page 1 of 1
38 ATTACHMENT 5
ORDINANCE NO. ____________
SUMMARY
On June 23, 2026, the City Council of the City of Torrance adopted Ordinance No. ___________, granting a twenty-year franchise to Air Products and Chemicals, Inc. (“Air Products”) for the operation and maintain of hydrogen pipeline located in the public right-of-way.
The existing ten-inch diameter pipeline enters the City at Westen Avenue and 190th Street. Pipeline proceeds west on 190th Street and terminates 100 feet west of Van Ness Avenue. The pipeline is a total of 2,790 linear feet.
Air Products will pay a $25,000 one-time franchise granting fee within 30 days after the Council adopts the Ordinance granting the Franchise. Furthermore, Air Products will pay annual franchise fees calculated by cubic footage and product flow rate schedule agreed to by the City and Air Products pursuant to Section 6231.5(b) of the California Public Utilities Code. Failure to pay such fees as prescribed will result in forfeiture of the franchise.
39 ATTACHMENT 6