Torrance council adopts budget, lighting assessments and multiple pipeline and development ordinances

The Torrance City Council approved a slate of fiscal and permitting measures Tuesday, adopting budget and capital appropriations, confirming the city’s lighting‑district assessments and granting franchise renewals to two pipeline operators.

At a public hearing on the FY 2026–27 operating budget and capital improvement plan, Finance Director Ian Dailyaly said staff were seeking council direction on whether to further explore a fourth digital sign. The council adopted three budget‑related resolutions to establish annual appropriations and a capital budget (resolutions 2026‑55, 2026‑56 and 2026‑57) and asked staff to return with additional details on the proposed sign’s location and funding.

In a separate hearing, Public Works staff presented the proposed levy for Lighting District 99‑1. The assessment formula will keep the single‑family property assessment at $20.50 for FY 2026–27 (about $1.71 per month). Staff estimated the district’s total cost at $1,968,915, with projected assessment revenue of $1,400,320 and the remainder funded from gas‑tax funds. Council adopted resolution 2026‑54 confirming the assessment.

Two franchise ordinances governing pipelines in the public right‑of‑way were introduced and adopted after staff presentations. The city replaced an expiring hydrogen‑pipeline franchise with Ordinance 3967, granting Air Products and Chemicals, Inc. a 20‑year franchise for a 10‑inch hydrogen pipeline. Staff described the negotiated compensation package as including a one‑time base grant fee and annual fees tied to occupied volume and product flow, subject to annual CPI adjustments.

The council also adopted Ordinance 3968 to continue a 10‑inch petroleum products pipeline operated by Torrance Basin Pipeline Company LLC for a 10‑year term. Staff noted that the pipeline operates as a common carrier and that franchise fee rates for common‑carrier pipelines are set under state law; the city reported $4,999.85 in franchise receipts from the system for 2025.

Council also approved an amendment to a development agreement with Gablehouse Development (Ordinance 3969) for the mixed‑use project at 22501 Hawthorne Boulevard that defers certain development‑impact fee payments for 120 days after specified inspection/occupancy triggers and requires withdrawal of pending public‑records requests and claim waivers as part of the amendment.

All motions described above carried; most were reported as passing with Mayor Chen absent. Several items were routine consent calendar actions or carried unanimously when roll call was taken.

Votes at a glance:
- Resolution 2026‑54, Lighting District 99‑1 (confirm assessments): approved (motion carried; Mayor Chen absent).
- Resolutions 2026‑55/2026‑56/2026‑57, FY 2026–27 operating and capital appropriations: approved (motion carried; Mayor Chen absent).
- Ordinance 3967, franchise to Air Products and Chemicals, Inc. (hydrogen pipeline, 20‑year term): adopted (motion carried; Councilmember Kaji recused on initial vote then ordinance adopted with recusal noted).
- Ordinance 3968, franchise to Torrance Basin Pipeline Company LLC (petroleum products pipeline, 10‑year term): adopted (motion carried; Mayor Chen absent).
- Ordinance 3969, first amendment to development agreement (Gablehouse, 22501 Hawthorne Blvd): adopted unanimously (Mayor Chen absent).
- Ordinance 3902 renewal (military equipment policy authorization): concurrence with police recommendation; motion carried (Mayor Chen absent).

What happens next: Adopted ordinances will be published in summary form per city practice; staff said environmental exemptions for the pipeline renewals were found to be categorical (CEQA section 15301) because they involve continued use of existing infrastructure.