UTILITIESPENDING

City of South Gate AgendaPacket Franchise Agreement Renewal for Torrance Pipeline Company, LLC 2026-05-26

South Gate Plans 10-Year Franchise for Torrance Pipeline

$13,849 granting fee; $38,765/year for years 1–5; adjusted CPI-based annual fee for years 6–10 (estimated $203,520 total for years 6–10; $411,197 total annual fees plus $13,849 granting fee)City of South GateTORRANCE PIPELINE COMPANY LLCMay 26, 2026

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Description

The South Gate City Council will consider adopting an ordinance granting Torrance Pipeline Company, LLC a ten-year franchise to operate its M-145 oil transmission pipeline beneath specified public streets. The agreement provides a $13,849 one-time granting fee and annual franchise fees starting at $38,765, with CPI-based adjustments after year five, in exchange for strict maintenance, safety, insurance, and indemnification obligations. The franchise term will run from September 13, 2026 through September 13, 2036.

Contract Details

Contract Amount

$13,849 granting fee; $38,765/year for years 1–5; adjusted CPI-based annual fee for years 6–10 (estimated $203,520 total for years 6–10; $411,197 total annual fees plus $13,849 granting fee)

Vendor

TORRANCE PIPELINE COMPANY LLC

Agency

City of South Gate, CA

Contract Type

UTILITIES

Document Date

May 26, 2026

Contract Term

September 13, 2026 – September 13, 2036 (10-year franchise)

Renewal Date

2036-09-13

Renewal Info

New ten-year franchise to replace Ordinance No. 2022-09-CC franchise expiring September 13, 2026. Annual franchise fee fixed for first five years and then adjusted based on cumulative CPI-U for the subsequent five years; renewal beyond 2036 would require a written petition at least 90 days before expiration and Council approval.