9D
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 Replacing Pipeline Franchise Ordinance No. 3800 with Torrance Basin Pipeline Company, LLC. Expenditure: None.
RECOMMENDATION
Recommendation of the City Manager that City Council:
1. Conduct a public hearing to consider replacing Pipeline Franchise Ordinance No. 3800 with Torrance Basin Pipeline Company, LLC.; 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 Torrance Basin Pipeline Company, LLC. for a ten-year term; and
4. Adopt an Ordinance Summary for publication.
FUNDING
None required.
EXECUTIVE SUMMARY
The City of Torrance regulates the placement, operation, and maintenance of private and common carrier pipeline systems within public rights-of-way through the issuance of municipal franchise ordinances. Franchise Ordinance No. 3800 was originally granted on May 24, 2016 to Mobil Pacific Pipeline Company, with an effective date of June 24, 2016, establishing a 10-year initial term with a 10-year option period to extend. Shortly thereafter on July 19, 2016, the City Council consented to the assignment of this franchise from Mobil Pacific Pipeline Company to Torrance Basin Pipeline Company, LLC. With the current term scheduled to expire on June 24, 2026, Torrance Basin submitted a formal notice on April 1, 2026, exercising its option to extend the agreement. While Torrance Basin Pipeline Company, LLC has the right to extend the term, a new Franchise Ordinance is required to be approved and adopted by the City Council to formalize the option period (Attachment 1).
1 City Council
June 9, 2026
DISCUSSION
Section 1110 of the Torrance City Charter authorizes the City to grant franchises by ordinance.
On May 24, 2016, the City Council adopted Franchise Ordinance No. 3800, granting Mobil Pacific Pipeline Company an initial 10-year term with a 10-year option to operate a 2,592-linear-foot petroleum products pipeline along Van Ness Avenue (Attachment 2). On July 19, 2016, the City Council subsequently approved a Resolution assigning this franchise to Torrance Basin Pipeline Company, LLC (“Torrance Basin”) (Attachment 3). The initial 10-year term is scheduled to expire on June 24, 2026.
On April 1, 2026, Torrance Basin submitted a Letter of Intent to exercise the 10-year option period (Attachment 4). While the original agreement allows for an extension, staff recommends the adoption of a new Ordinance to formalize the utilization of the 10-year option period. This ensures that the City’s regulatory framework remains current and clearly defines the sunset date for the renewed period.
On May 19, 2026, the City Council adopted a RESOLUTION OF INTENT to consider a petroleum products pipeline franchise application from Torrance Basin to renew a 10-inch pipeline currently held under Franchise Ordinance 3800 (Attachment 5 and 6). The pipeline expires June 24, 2026 which is 10 years after the last effective date of the prior renewal.
The proposed Ordinance contains pipelines that are common carrier which allows other carriers to utilize the pipelines to carry products. The rates for common carrier pipelines are set by the Public Utilities Commission and re non-negotiable. Per Section 6231.5 of the Public Utilities Code (PUC), franchise fees are calculated based on length (2,592 feet) and size of the pipeline (10- inch pipe @ $0.22 per foot ($570.24) plus the Consumer Price Index (CPI) from 1989 as escalation factor. In 2025, the City received $4,999.85 from Torrance Basin.
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 (Attachment 7). 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, adopting the proposed Pipeline Franchise Ordinance ensures the seamless, lawful continuation of Torrance Basin Pipeline Company, LLC’s operations while maintaining the City’s regulatory oversight within the public right-of-way. By formalizing this 10-year option period, the City secures ongoing compliance with the Torrance City Charter and Public Utilities Code, maintains a steady source of franchise fee revenue, and confirms that all necessary environmental and public notification requirements have been strictly met. Therefore, staff recommends that the City Council conduct the public hearing, adopt the CEQA Categorical Exemption, approve the new Ordinance to replace Franchise Ordinance No. 3800, and adopt an Ordinance Summary (Attachment 8) for publication.
2 City Council
June 9, 2026
ENVIRONMENTAL FINDINGS
The City’s action to grant a franchise for the existing petroleum products 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 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. 3800
3. Resolution No. 2016-07
4. Formal Notice from Torrance Basin Pipeline Company, LLC.
5. Resolution of Intent
6. May 19, 2026 - Agenda Item 8J (also available online at https://torranceca.primegov.com/viewer/preview?id=0&type=8&uid=8740d243-821d- 4086-b0f5-66b62450978d )
7. Proof of Publication/Notice of Public Hearing
8. Ordinance Summary
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ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TORRANCE, CALIFORNIA, AMENDING, SUPERSIDING, AND
EXTENDING THE TERM OF FRANCHISE ORDINANCE
NUMBER 3800 AND CONTINUING TO GRANT TO TORRANCE
BASIN PIPELINE COMPANY, LLC 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 CARRYING GAS, OIL, PETROLEUM PRODUCTS AND
WATER, ON, ALONG, IN, UNDER AND ACROSS PUBLIC
STREETS, WAYS, ALLEYS AND PLACES WITHIN THE CITY OF
TORRANCE.
WHEREAS, Franchise Ordinance No. 3800 was granted to Mobil Pacific Pipeline Company on May 24, 2016 and became effective on June 24, 2016 for a 10-year initial term with a 10-year option period to extend; and
WHEREAS, Mobil Pacific Pipeline Company operated a 10-inch petroleum products pipeline along the west side of Van Ness Avenue approximately 2,592 feet in length; and WHEREAS, on July 19, 2016, the City Council adopted a Resolution to consent to Assignment of Pipeline Franchise Ordinance 3800 from Mobil Pacific Pipeline Company to the Assumption by Torrance Basin Pipeline Company, LLC; and
WHEREAS, the current Franchise Ordinance No. 3800 is set to expire on June 24, 2026; and WHEREAS, on April 1, 2026, the City received a notice from Torrance Basin Pipeline Company LLC with intent to utilize the 10-year option period; and
WHEREAS, although Torrance Basin Pipeline Company has the right to extend term, a new Franchise Ordinance is required to formalize the renewed period; and WHEREAS, the City Council desires to extend and supersede the expiring agreement to ensure seamless continuity of operations while updating operational conditions and compliance requirements; and
WHEREAS, the adoption of this Ordinance is categorially 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 SUPERSEDES PRIOR ORDINANCE AND DEFINITIONS: This Ordinance explicitly amends, extends, and supersedes Franchise Ordinance No. 3800 in its entirety, effective June 24, 2026. All rights accrued, obligations incurred, and operational history established under Franchise 4 ATTACHMENT 1
2 Ordinance No. 3800 are seamlessly preserved and transitioned into this extended term, and the expiration clock set forth in the initial ordinance is hereby reset in accordance with Section 6.
Section 2 - 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 clearly 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 or over the streets of the City, and used or useful in, or in carrying on the business of, conducting, transporting, conveying and carrying gas, oil, petroleum products, and water.
(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 3 - NATURE OF FRANCHISE: A Franchise is granted to TORRANCE BASIN PIPELINE COMPANY, LLC, 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 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 gas, oil, petroleum products and water, on, along, in, under, 5 3
over and across the public streets, ways, alleys and places within the City of Torrance, as 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 Community Development Director.
Section 4 — 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. If the Grantee fails or neglects to make the repairs, then 30 days after notice is given to the Grantee by the City, the City may 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 actual 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 (the "City Manager").
Section 5 — 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 such 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 6 — TERM: The term of the Franchise is ten (10) Years, commencing immediately upon the expiration of the original term on June 24, 2026, and concluding on June 24, 2036, unless the Franchise is forfeited prior to the end of the term.
Section 7 — COMPENSATION: The Grantee will pay to the City a sum equivalent to the base rate revised annually, as provided in section 6231.5 of the Public Utilities Code, arising from the use, operation or possession of the Franchise. If the Grantee sells, transfers, assigns, or leases this Franchise, in compliance with Section 18, to an entity or individual that will not operate pi pes and appurtenances as a public utility pipeline, then the City may change the annual payment to an amount otherwise authorized by applicable state or local law.
Payment is due annually in arrears, on or before the first day of January. Grantee will provide City with a statement setting forth the computation of the annual fee as provided for by this Section 6 of this ordinance and section 6231.5 of the Public Utilities Code. Grantee's failure to file a statement, or to pay the compensation due, at the time prescribed by this Section 6, will be grounds for the declaration of a forfeiture of this Franchise and of all rights under this Franchise.
Section 8 — MAPS AND CAPITAL IMPROVEMENT PLAN: Within 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 6 4
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 1, the Grantee will submit a projected five-year capital improvement plan for its facilities subject to this ordinance. 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 Franchisee.
Section 9 - CONSTRUCTION OF PIPES AND APPURTENANCES:
A. Terms of Construction. The pipes and appurtenances constructed or maintained pursuant to Section 4 of this ordinance 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. All pipes laid under this Franchise will meet State Fire Marshal standards, and no pipe laid under this Franchise may exceed sixteen inches in internal diameter.
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 Community Development Director. Such application may include a traffic control plan and other information as required by the Community Development Director. The Grantee will pay any fees (including inspection) required by such permit.
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 Community Development Director. 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 Community Development Director.
C. Certified Test Results: Conformance Requirements.
(1) Certified Test Results: For those pipes and appurtenances subject to the provisions of the Pipeline Safety Act of 1981 (Government Code §51010, et seq.) 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.
For those pipes and appurtenances that are not subject to the Pipeline Safety Act of 1981, the 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 will not be unreasonably withheld). The tests will be of the same kind and extent as tests performed by the State Fire Marshal.
(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 B31.4-1979;" the 7 5
American Petroleum Institute Standard 1104; the Code of 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.
Section 10 — 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 the event of an emergency resulting from an earthquake, act of war, civil disturbance, flood, computer malfunction or other cause.
Section 11 - 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 or leak, to the satisfaction of the City Manager.
Section 12 - 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 Grantee'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 pedestrian 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; provided, however, that the City will not require the Grantee to remove its conduits or pipes entirely from the street.
(3) In case the Grantee fails to commence work in compliance with written notice provided in work referenced in subsection A(1), within 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 the reasonable costs within 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 10 days after the City Manager's decision.
During the pendency of such petition, the work required to be done will be suspended.
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B. 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 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 the costs of such rearrangement and such accommodated party will execute an instrument agreeing to indemnify and hold harmless the Grantee 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 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 private contractor. The Grantee agrees to pay to the City within 60 days after delivery of an itemized bill covering the cost of performing the work, an amount equal to the amount provided by the accommodated party. 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 10 days after the determination.
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, accommodation or necessity of the Grantee.
D. Notice: Grantee will be given not less than 120 days written notice 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 will be given an additional period not less than 30 days to accomplish the work.
Section 13 - 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 30 days thereafter, make a written application to the City Manager for authority to engage in one 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 ordinance and will also describe with reasonable accuracy the relative physical condition of the pipes and appurtenances. Thereupon, the City Manager will determine whether 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 9 7
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, for any reason, Grantee suspends operations of any of the pipelines contained in this franchise for a period in excess of 90 days, Grantee will notify the City Manager. During this period of suspended operations, the Grantee will maintain its normal pipeline surveillance and all cathodic protection systems to insure pipeline integrity. This will continue until such a time as the line is returned to service or abandoned pursuant to this Section.
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, including, if he deems desirable, 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 within 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 the actual reasonable cost of removal.
Should any pipes and appurtenances under this Franchise be abandoned in accordance with directives of the State Fire Marshal and without City approval, whether or not payments have terminated, and the pipes and appurtenances interfere at a future time with any public works project, Grantee will, upon request of the City Manager, remove the pipes and appurtenances at Grantee's expense.
This Section 12 will survive the termination or expiration of this ordinance.
Section 14 — 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 60 days after delivery of an itemized bill covering the cost of performing the work, the reasonable cost of the work. If the Grantee is dissatisfied with the determination of the amount, it may petition the City Manager to review the amount within 10 days after such determination.
Section 15 - 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 deliver to City a performance bond in the sum of $50,000, which secures the faithful performance of the Grantee's obligations under this ordinance. The bond will contain the original notarized 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 ordinance and will be null and void at the conclusion of the term of this ordinance only if Grantee promptly and faithfully performs all terms and conditions of this ordinance.
Forfeiture. In the event Grantee for any reason becomes unable to, or fails in any way to, perform as required by this ordinance, 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.
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Section 16 - 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 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, clean-up costs, remediations expenses, and defense 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 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 16.A.(3) does not apply. If pipelines permitted only transport natural gas (gaseous methane and methane-containing gaseous mixtures), Section
16.A.(3) does not apply, and the Section 16.A.(2) limits are increased to at least $15,000,000 per occurrence.
(4) 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. 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 necessary 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.
B. . 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 insureds under the General Liability and Automotive Liability policies.
C. Except as permitted in subsection "F" of this Section 16, 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 Section must contain a provision that no termination, cancellation or change of coverage can be made without 30 days' notice to City.
E. 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 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 11 9
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 written 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 rejection 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 17 — 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 limited 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 acts or 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 18 - ASSIGNMENT: The Grantee will file with the legislative body of the municipality within 30 days after any sale, transfer, assignment, or lease of the Franchise or any part thereof, or any of the rights or privileges granted thereby, written evidence of the transaction certified to by the Grantee or its duly authorized officers. Grantee may assign or transfer all or any part of this Franchise to any public utility, purchaser, transferee, or assignee, approved by the California Public Utilities Commission, of all or any part of the oil pipeline system assets covered by this franchise. If any transfer, assignment, lease, or sale of the Franchise is to a person or entity that is not a public utility pipeline, then City approval is required, which approval will not be unreasonably withheld. If the City approves that sale, transfer, assignment, or lease of this Franchise, then the City may change the annual Franchise payment to an amount otherwise authorized by applicable state law. Upon approval, the new Grantee will pay to the City a sum of money sufficient to reimburse it for all expenses incurred by it in connection with the approval of the sale, transfer, assignment, or lease of this Franchise; said payment to be made within 30 days after the City will have furnished said Grantee with a written statement of such expenses.
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Section 19 — 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 to 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.
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 does not commence the work necessary to cure the default within 120 days after notice is sent or fails to prosecute 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.
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 procedure provided in this Franchise, in addition to those provided by law, will be deemed to be cumulative.
Section 20 - 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 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 90 days after this ordinance becomes effective. Payment of such amounts will be made with the filing of such statement.
Section 21 — 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.
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Section 22 — 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
Torrance Basin Pipeline Company LLC
12851 E. 166th Street
Cerritos, CA 90703
Attn: Manager, Right of Way
(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).
Section 23 — 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 Section 18.
Section 24 — ACCEPTANCE 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 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 25 — 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 is granted in plain and unambiguous terms. Each of the conditions is a material and essential condition to the granting of this Franchise.
Section 26 — 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 in duration 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, 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.
Section 27 — 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 28 — 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 14 12
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 7, 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 29 - 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 ordinance, 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 pipeline which is constructed, erected, maintained, operated, repaired, renewed, changed in size, or removed by Grantee within the City of Torrance is inadvertently omitted from this Franchise.
Section 30 — 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 31 — EFFECTIVE DATE: This ordinance will take effect 30 days after the date of its adoption. Within fifteen 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 32 - 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 ordinance (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this ordinance, 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.
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INTRODUCED and APPROVED this 9th day of June, 2026.
ADOPTED and PASSED 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
16 14
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 by the City Council of the City of Torrance at a regular meeting held on the 9th day of June 2026 and adopted and passed by said Council at a regular meeting 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
17 15
Exhibit A
TORRANCE BASIN PIPELINE COMPANY, LLC
LINE NO SIZE FOOTAGE STATUS PRODUCT
M-131 10-inch 12 Active Petroleum
Product M-131 10-inch 2,580 Slurry-Filled N/A
18 16
19 ORDINANCE NO. 3800
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TORRANCE, CALIFORNIA, REPEALING ORDINANCE
NUMBER 3331 AND GRANTING TO MOBIL PACIFIC
PIPELINE COMPANY 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 CARRYING GAS, OIL, PETROLEUM
PRODUCTS AND WATER, ON, ALONG, IN, UNDER AND
ACROSS PUBLIC STREETS, WAYS, ALLEYS AND
PLACES WITHIN THE CITY OF TORRANCE.
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 clearly 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 or over the streets of the City, and used or useful in, or in carrying on the business of, conducting, transporting, conveying and carrying gas, oil, petroleum products, and water. 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 20 ATTACHMENT 2
permit required for the privilege of transacting and carrying on the Grantee' s pipeline business within the City.
Section 2 — NATURE OF FRANCHISE: A Franchise is granted to MOBIL PACIFIC PIPELINE COMPANY 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 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 gas, oil, petroleum products and water, on, along, in, under, over and across the public streets, ways, alleys and places within the City of Torrance, as 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 Community Development Director,
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. If the Grantee fails or neglects to make the repairs, then 30 days after notice is given to the Grantee by the City, the City may 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 actual reasonable cost of the repair.
All pipes and appurtenances will be located in conformity with the orders of the Community Development Director of the City of Torrance ( the " Community Development Director").
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 such 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 10 Years, commencing on the Effective Date, as provided by Section 30, unless the Franchise is forfeited prior to the end of the term. The Grantee shall have the right to renew the Franchise for an additional 10 year period with at least 60 days prior notice to City Manager.
Section 6 — COMPENSATION: The Grantee will pay to the City a sum equivalent to the base rate revised annually, as provided in section 6231. 5 of the Public Utilities Code, arising from the use, operation or possession of the Franchise. If the Grantee sells, transfers, assigns, or leases this Franchise, in compliance with Section 17, to an entity or individual that will not operate the 21 pipes and appurtenances as a public utility pipeline, then the City may change the annual payment to an amount otherwise authorized by applicable state or local law.
Payment is due annually in arrears, on or before the first day of January. Grantee will provide City with a statement setting forth the computation of the annual fee as provided for by this Section 6 of this ordinance and section 6231. 5 of the Public Utilities Code. Grantee' s failure to file a statement, or to pay the compensation due, at the time prescribed by this Section 6, will be grounds for the declaration of a forfeiture of this Franchise and of all rights under this Franchise.
Section 7 — MAPS AND CAPITAL IMPROVEMENT PLAN: Within 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 Community Development Director 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 ordinance. 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 Franchisee.
Section 8 — CONSTRUCTION OF PIPES AND APPURTENANCES:
A. Terms of Construction. The pipes and appurtenances constructed or maintained pursuant to Section 4 of this ordinance 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. All pipes laid under this Franchise will meet State Fire Marshal standards, and no pipe laid under this Franchise may exceed sixteen inches in internal diameter.
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 Community Development Director. Such application may include a traffic control plan and other information as required by the Community Development Director. The Grantee will pay any fees ( including inspection) required by such permit.
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 Community Development Director. 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 Community Development Director.
22 C. Certified Test Results: Conformance Requirements. 1) Certified Test Results: For those pipes and appurtenances subject to the provisions of the Pipeline Safety Act of 1981 (Government Code §51010, et seq.) 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.
For those pipes and appurtenances that are not subject to the Pipeline Safety Act of 1981, the 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 Community Development Director (which approval will not be unreasonably withheld). The tests will be of the same kind and extent as tests performed by the State Fire Marshal. 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- 1979;" the American Petroleum Institute Standard 1104; the Code of 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.
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 the event of an emergency resulting from an earthquake, act of war, civil disturbance, flood, computer malfunction or other cause.
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 or leak, to the satisfaction of the Community Development Director.
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 Grantee' 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 Community Development Director.
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 pedestrian 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 Community Development Director, render necessary any change 23 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 Community Development Director if the work is for City purposes; provided, however, that the City will not require the Grantee to remove its conduits or pipes entirely from the street. 3) In case the Grantee fails to commence work in compliance with written notice provided in work referenced in subsection A( 1), within 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 Community Development Director 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 the reasonable costs within 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 Community Development Director permitted by this Section, it may petition the City Manager to review the Community Development Director's decision within 10 days after the Community Development Director' s decision. During the pendency of such petition, the work required to be done will be suspended.
B. 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 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 the costs of such rearrangement and such accommodated party will execute an instrument agreeing to indemnify and hold harmless the Grantee 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 Community Development Director. 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 public enemies), the Community Development Director 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 60 days after delivery of an itemized bill covering the cost of performing the work, an amount equal to the amount provided by the accommodated party. If the Grantee is dissatisfied with any determination of the Community Development Director permitted by this Section, it may petition the City Manager to review the decision within 10 days after the determination.
24 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, accommodation or necessity of the Grantee.
D. Notice: Grantee will be given not less than 120 days written notice 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 will be given an additional period not less than 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 30 days thereafter, make a written application to the Community Development Director for authority to engage in one 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 ordinance and will also describe with reasonable accuracy the relative physical condition of the pipes and appurtenances. Thereupon, the Community Development Director will determine whether 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, for any reason, Grantee suspends operations of any of the pipelines contained in this franchise for a period in excess of 90 days, Grantee will notify the Community Development Director. During this period of suspended operations, the Grantee will maintain its normal pipeline surveillance and all cathodic protection systems to insure pipeline integrity. This will continue until such a time as the line is returned to service or abandoned pursuant to this Section.
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 Community Development Director may make additional appropriate orders, including, if he deems desirable, 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 within such time as may be prescribed by the Community Development Director, then the City may remove such pipes and appurtenances at the Grantee' s expense and the Grantee will pay to the City the actual reasonable cost of removal.
Should any pipes and appurtenances under this Franchise be abandoned in accordance with directives of the State Fire Marshal and without City approval, whether or not payments have terminated, and the pipes and appurtenances interfere at a future time with any public works project, Grantee will, upon request of the Community Development Director, remove the pipes and appurtenances at Grantee' s expense.
25 This Section 12 will survive the termination or expiration of this ordinance.
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 60 days after delivery of an itemized bill covering the cost of performing the work, the reasonable cost of the work. If the Grantee is dissatisfied with the determination of the amount, it may petition the City Manager to review the amount within 10 days after such determination.
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 deliver to City a performance bond in the sum of 50, 000, which secures the faithful performance of the Grantee' s obligations under this ordinance.
The bond will contain the original notarized 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 ordinance and will be null and void at the conclusion of the term of this ordinance only if Grantee promptly and faithfully performs all terms and conditions of this ordinance.
B. Forfeiture. In the event Grantee for any reason becomes unable to, or fails in any way to, perform as required by this ordinance, 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 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 atmosphere, 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. 26 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. 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.
D. Each insurance policy required by this Section must contain a provision that no termination, cancellation or change of coverage can be made without 30 days' notice to City.
E. Insurance required by this Franchise 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 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.
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 limited 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 acts or 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: The Grantee will file with the legislative body of the municipality within 30 days after any sale, transfer, assignment, or lease of the Franchise or any part thereof, or any of the rights or privileges granted thereby, written evidence of the transaction certified to by the Grantee or its duly authorized officers. Grantee may assign or transfer all or any part of this Franchise to any public utility, purchaser, transferee, or assignee, approved by the California Public Utilities Commission, of all or any part of the oil pipeline system assets covered by this franchise.
If any transfer, assignment, lease, or sale of the Franchise is to a person or entity that is not a public 27 utility pipeline, then City approval is required, which approval will not be unreasonably withheld. If the City approves that sale, transfer, assignment, or lease of this Franchise, then the City may change the annual Franchise payment to an amount otherwise authorized by applicable state law.
Upon approval, the new Grantee will pay to the City a sum of money sufficient to reimburse it for all expenses incurred by it in connection with the approval of the sale, transfer, assignment, or lease of this Franchise; said payment to be made within 30 days after the City will have furnished said Grantee with a written statement of such expenses.
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 to 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.
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 does not commence the work necessary to cure the default within 120 days after notice is sent or fails to prosecute 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.
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 procedure 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 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 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.
28 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 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 to Attn: Right of Way and Claims Department, 12851 166thStreet, Cerritos, CA 90703 (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.
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 Section 17.
Section 23 — ACCEPTANCE 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 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 is 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 in duration 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, 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.
s
Section 26 — DAMAGE TO PUBLIC PROPERTY: Any damage done directly or indirectly to any public property by Grantee, n exercising djrectly 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 Community Development Director, 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. 29 Annually during the life of this Franchise, and concurrently with provision of the annual payment pursuant to Section 6, Grantee will file with the Community Development Director, 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 ordinance, 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 pipeline which is constructed, erected, maintained, operated, repaired, renewed, changed in size, or removed by Grantee within 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 30 days after the date of its adoption. Within fifteen 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 ordinance ( whether in contract, tort or both) or seeks a declaration of any rights or obligations under this ordinance, 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 and APPROVED this 171hday of May, 2016.
ADOPTED and PASSED this 24' day of May, 2016.
APPROVED AS TO FORM-
JOHN L. FELLOWS III, City Attorney
by vim_ 2
Patrick Q. Sullivan, Assistant City Attorney
ATTEST:
City Clerk Rebecca Poirier, MMC
30 TORRANCE CITY COUNCIL ORDINANCE NO. 3800
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 by the City Council of the City of Torrance at a regular meeting held on the 17thday of May and adopted and passed by said Council at a regular meeting held on the 24thday of May by the following roll call vote:
AYES: COUNCILMEMBERS: Ashcraft, Barnett, Goodrich, Griffiths, Rizzo, and Mayor Furey.
NOES: COUNCILMEMBERS: Weideman.
ABSTAIN: COUNCILMEMBERS: None.
ABSENT: COUNCILMEMBERS: None.
This ordinance was duly published in accordance with State law ( GC 40806).
Date: 6117111 gv"' 4 -
Reb cca Poirier, MMC
City Clerk of the City of Torrance
Attachment: Exhibit A Length and Location of Pipeline
31 Exhibit A
Mobil Pacific Pipeline Company
LINE NO SIZE FOOTAGE STATUS PRODUCT
M- 131 10- inch 12 Active IPetroleumProduct
M- 131 10- inch 2, 580 Slurry -Filled I N/ A
32 33
RESOLUTION NO. 2016- 73
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TORRANCE, CALIFORNIA, APPROVING THE ASSIGNMENT
AND TRANSFER OF ONE PIPELINE FRANCHISE ORDINANCE
NUMBER 3800 ( PIPELINE M- 131) FROM MOBIL PACIFIC
PIPELINE COMPANY TO TORRANCE BASIN PIPELINE
COMPANY LLC OPERATED BY TORRANCE LOGISTICS
COMPANY LLC.
WHEREAS, Mobil Pacific Pipeline Company currently operates a 10- inch pipeline along the west side of Van Ness Avenue under Franchise Ordinance Number 3800; and WHEREAS, this pipeline runs approximately 2, 592 feet under this franchise; and WHEREAS, this Franchise was recently renewed for a 10- year term with one 10- year option and became effective June 24, 2016; and
WHEREAS, Mobil Pacific Pipeline Company wishes to assign Franchise Ordinance Number 3800 to Torrance Basin Pipeline Company LLC, and Torrance Basin Pipeline Company LLC wishes to assume Franchise Ordinance Number 3800.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF TORRANCE DOES HEREBY ORDAIN:
SECTION 1
That the City of Torrance does hereby consent to the transfer and assignment of Franchise Ordinance 3800 concerning the M- 131 pipeline from Mobil Pacific Pipeline Company to Torrance Basin Pipeline Company LLC.
SECTION 2
That the City of Torrance agrees that the pipeline will be owned by Torrance Basin Pipeline Company LLC and will be operated by Torrance Logistics Company LLC.
SECTION 3
That such consent to assignment will become effective if and when the City receives written confirmation from Torrance Basin Pipeline Company LLC that it accepts the terms and conditions of the said pipeline franchise and will be bound by all terms and conditions thereof.
INTRODUCED, APPROVED, and ADOPTED this 19th day of July , APPROVED AS TO FORM:
JOHN L. FELLOWS Ill, City Attorney
by ??~ .... z~
Patrick Q. Sullivan, Assistant City Attorney
May
ATTEST:
34 ATTACHMENT 3
TORRANCE CITY COUNCIL RESOLUTION NO. 2016- 73
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF TORRANCE
ss
I, Rebecca Poirier, City Clerk of the City of Torrance, California, do hereby certify that the foregoing resolution was duly introduced, approved, and adopted by the City Council of the City of Torrance at a regular meeting of said Council held on the 19th day of July, 2016 by the following roll call vote:
AYES: COUNCILMEMBERS Ashcraft, Goodrich, Griffiths, Herring, Rizzo, Weideman, and Mayor Furey.
NOES: COUNCILMEMBERS None.
ABSTAIN: COUNCILMEMBERS None. --·
ABSENT: COUNCILMEMBERS None.
Date:
1/ 2ulllf
Re ~
City Clerk of the City of Torrance
35 36
ATTACHMENT 4
37 RESOLUTTON NO. 202641
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TORRANCE, CALIFORNIA, DECLARING ¡TS
INTENTION TO CONSIDER A RENEWAL OF A
PETROLEUM PRODUCTS PIPELINE FRANCHISE FROM
TORRANCE BASIN PIPELINE COMPANY, LLC AND
SETTING THE DATE FOR A PUBLIC HEARING AT
WHICH PROTESTS OR OBJECTIONS MAY BE
RECEIVED
WHEREAS, Franchise Ordinance No. 3800 was granted to Mobil Pacific Pipeline Company on May 24,2016 and became effective on June 24,2016 for a 1O-year initial term with a 10-year option period to extend; and
WHEREAS, Mobil Pacific Pipeline Company operated a 10-inch petroleum products pipeline along the west side of Van Ness Avenue approximately 2,592 feet in length; and WHEREAS, on July 19,2016, the City Council adopted a Resolution to consent to Assignment of Pipeline Franchise Ordinance 3800 from Mobil Pacific Pipeline Company to the Assumption by Torrance Basin Pipeline Company, LLC.
WHEREAS, the current Franchise Ordinance No. 3800 is set to expire on June 24,2026; and WHEREAS, on April 1, 2026, the City received a notice from Torrance Basin Pipeline Company LLC with intent to utilize the 10-year option period.
WHEREAS, although Torrance Basin Pipeline Company has the right to extend terms, a new Franchise Ordinance is required to formalize the renewed period.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF TORRANGE:
Section 1. The City of Torrance hereby expresses its intent to consider franchise application from Torrance Basin Pipeline Company, LLC to operate and maintain existing 10-inch diameter petroleum products pipeline as described in Exhibit A, attached hereto and incorporated herein by reference.
Section 2. That pipeline franchise application is for a franchise period of 10 years.
Section 3. Franchise fees under the franchise will be paid annually to the City of Torrance pursuant to Section 6231.5(b) of the California Public Utilities Code.
Section 4. A public hearing to consider this application will be held on June 9,2026 at 6:30 pm. in the City of Torrance, LeRoy J. Jackson Council Chamber, 3031 Torrance Boulevard. All persons having any objection to the granting of the franchise may appear before the City Council and be heard at that time.
Section 5. A notice of the intention to consider the application for petroleum products pipeline franchise from Torrance Basin Pipeline Company, LLC will be published in a newspaper of 38 ATTACHMENT 5
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.
Section 6. The City Clerk will certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.
INTRODUCED, APPROVED, and ADOPTED this 19th day of May 2026. t
e K. Chen
APPROVED AS TO FORM:
PATRICK Q. SULLIVAN, City Attorney ATTEST:
Y. Strader, Assistant City Attorney Poirier, MMC, City Clerk Attachments:
Exhibit A - Description of Torrance Basin Pipeline Company, LLC Pipeline TORRANCE C¡TY COUNCI RESOLUTION NO. 202641
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,
Mayor Chen.
None.
None.
None.
Kalani Lewis, Mattucci, Sheikh, and
NOES:
ABSTAIN:
ABSENT:
COUNCILMEMBERS
COUNCILMEMBERS
COUNCILMEMBERS
Poirier,
Date: City Clerk of the City of Torrance
39 EXH¡BIT A
DESCRIPTION OF TORRANCE BASIN PIPELINE COMPANY, LLC PIPELINE 1 0-inch Petroleum Products Pipeline
Pipeline commences along on the west side of Van Ness Avenue between DelAmo Boulevard and 195th Street.
TOTAL FOOTAGE 2,592 Feet
40 41
ATTACHMENT 6
Daily Breeze
2615 Pacific Coast Highway #329
Hermosa Beach, California 90254
(310) 543-6635
0011795569
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,
Rancho Palos Verdes, Rancho Palos Verdes
Estates, Redondo Beach, San Pedro, Santa
Monica, Torrance and Wilmington
FRANCHISE ORDINANCE - TORRANCE BASIN - Page 1 of 1
42 ATTACHMENT 7
ORDINANCE NO. ____________
SUMMARY
On June 23, 2026, the City Council of the City of Torrance adopted Ordinance No. ___________, granting a ten-year franchise to Torrance Basin Pipeline Company, LLC. (“Torrance Basin”) for the operation and maintenance of petroleum products pipeline located in the public right-of-way.
The existing ten-inch diameter pipeline extends a total of 2,592 linear feet along the west side of Van Ness Avenue, between Del Amo Boulevard and 195th Street.
Under the terms of the franchise, Torrance Basin will pay an annual franchise fee pursuant to Public Utilities Code Section 6231.5. Failure to pay these fees as prescribed will result in the forfeiture of the franchise.
43 ATTACHMENT 8