City Council Agenda Report
Meeting Date: July 16, 2024
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Gerard Garcia, Assistant Engineer
Subject
Revocable Encroachment License Agreement No. 439 with Torrance Pipeline Company, LLC.
Recommendation
A. Find that approval of the proposed action is categorically exempt under the California Environmental Quality Act (CEQA), in accordance with CEQA guidelines 15301, because the action ensures the maintenance, operation, and repair of existing facilities of both investors and publicly owned utilities; and
B. Approve and authorize the City Administrator to execute Revocable Encroachment License Agreement No. 439 (Agreement) between the City of Vernon and Torrance Pipeline Company, LLC (Torrance Pipeline).
Background
Torrance Pipeline is a limited liability company that currently owns, operates, and maintains one twelve-inch petroleum pipeline on Santa Fe Avenue, one eight-inch petroleum pipeline on Bandini Boulevard, and one eight-inch petroleum pipeline on Pacific Boulevard in the City of Vernon. Torrance Pipeline has requested that maintenance, operations, and repairs continue on approximately 1.36 miles of petroleum pipeline within the City’s public Right-of-Way.
The City has prepared a new Agreement that will replace Revocable Encroachment License Agreement No. 387 between the City of Vernon and Torrance Pipeline. This license is for twentyfive (25) years from the effective date unless terminated by either party sooner. Torrance Pipeline has indicated acceptance of the Agreement by adequately executing the document before its submission to the Council for consideration. The City Attorney's Office has reviewed and approved the Revocable Encroachment License Agreement as to form.
Fiscal Impact
Approval of the Revocable Encroachment License Agreement will result in $75,000 in additional revenue to the General Fund that shall be remitted prior to the issuance of the License. Torrance Pipeline will also pay an annual renewal fee of $9,630, payable each year during the term of the License on or before the anniversary of the effective date resulting in additional revenue to the General Fund Franchises and Agreements Account No. 011-410-000-410300. The renewal shall be increased annually to account for inflation based on the Consumer Price Index for All Urban Consumers, for the Los Angeles-Anaheim-Riverside Metropolitan Area, or similar index, published by the Bureau of Labor Statistics, U.S. Department of Labor for period ending April 30th of each year.
Attachments
1. Revocable Encroachment License Agreement No. 439