UTILITIESPENDING

South Gate City Council Agenda Packet 2026-05-12

City Moves to Renew Oil Pipeline Franchise

Total estimated $411,197 over 10-year term (including $13,849 one-time granting fee and annual/flat fees totaling $397,348)City of South GateTORRANCE PIPELINE COMPANY LLCMay 12, 2026

Trusted by teams at

Description

South Gate is considering an ordinance to grant a 10-year franchise agreement to Torrance Pipeline Company, LLC to continue operating an existing oil transmission pipeline under city streets. The arrangement includes a $13,849 one-time granting fee and projected annual franchise fees totaling about $397,348 over the term, with CPI-based adjustments after year five. The franchise imposes safety, insurance, and emergency response requirements consistent with state law.

Contract Details

Contract Amount

Total estimated $411,197 over 10-year term (including $13,849 one-time granting fee and annual/flat fees totaling $397,348)

Vendor

TORRANCE PIPELINE COMPANY LLC

Agency

City of South Gate, CA

Contract Type

UTILITIES

Document Date

May 12, 2026

Contract Term

Ten-year franchise term from September 13, 2026 through September 13, 2036

Renewal Date

2036-09-13

Renewal Info

Renews and replaces the existing franchise granted by Ordinance No. 2022-09-CC, which expires September 13, 2026. New franchise term runs from September 13, 2026 to September 13, 2036, with fees recalculated every five years based on CPI-U. City may terminate for noncompliance, nonpayment after 30 days' notice, unauthorized transfer, or eminent domain acquisition of the streets, and may require removal or abandonment procedures at term end.