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HomeMy WebLinkAbout05/03/2011, C14 - RESOLUTION OF INTENTION TO APPROVE A FRANCHISE AGREEMENT WITH CONOCO-PHILLIPS PIPELINE COMPANY FOR council MrcnngD.m j AgenbA RCPO12t Imm Numkmr�/ CITY OF SAN LUI S O B I S P O FROM: Katie Lichtig, City Manager Prepared By: Michael Codron, Assistant City Manager SUBJECT: RESOLUTION OF INTENTION TO APPROVE A FRANCHISE AGREEMENT WITH CONOCO-PHILLIPS PIPELINE COMPANY FOR PIPELINES LOCATED WITHIN THE CITY'S RIGHT-OF-WAY. RECOMMENDATION Adopt a resolution of intention to approve a franchise agreement with Conoco-Phillips and schedule a public hearing on June 7, 2011,to allow for public comment on the agreement. DISCUSSION Summary On July 10, 2001, the City Council adopted Ordinance No. 1391 granting a franchise to Union Pipeline Company for a term of ten years (Attachment 1). On March 6, 2007, the Council adopted Resolution No. 9881 transferring the franchise from Union to Conoco-Phillips Pipeline Company (Attachment 2). The agreement will expire on July 9, 2011, if a new franchise agreement is not approved. On February 11, 2011, Conoco-Phillips contacted the City to apply for a new franchise agreement. Adoption of a new agreement would supersede both Ordinance No. 1391 and Resolution No. 9881. The City Council is being asked to adopt a "resolution of intention," authorizing staff to develop the new franchise agreement. If authorized to do so by the City Council, staff will return on June 7, 2011, to hold a public hearing to introduce an ordinance approving the new agreement. Scope of Franchise Agreement The franchise agreement gives Conoco-Phillips a non-exclusive right to "construct, erect, maintain, operate, repair, renew and change the size of and remove pipelines ... for the transportation of oil, products thereof, hydrocarbon gases and other gas. necessary for the operation and maintenance of the pipelines..." The application requests approval of a ten-year term. Currently, Conoco-Phillips has no plans to install new pipelines. All of its existing pipelines are shown in an exhibit attached to the application requesting franchise approval (Attachment 3). This exhibit will be updated to reflect any Conoco-Phillips pipelines located in the recently annexed portions of the Airport Area before a new franchise agreement is recommended to the Council. C14-1 Conoco-Phillips Franchise Agreement Page 2 Franchise Fee Franchise fees for distribution pipelines are set by Public Utilities Code Section 6231.5. The fee ranges from $.088 to $.66 per lineal foot based on pipeline diameter, with CPI adjustments added since 1989 when these rates were first established. The existing franchise agreement limits pipeline diameter to 12 inches, which corresponds to a fee of $.264 (plus CPI) per lineal foot. The majority of the pipeline length installed has an 8-inch internal diameter, resulting in a fee of $.176 (plus CPI) per lineal foot. Based on the pipeline length and diameter currently installed in the City, the annual revenue generated from the existing franchise is approximately $6,700 annually. In addition to the annual franchise fee, the City is proposing a granting fee of$10,000 to cover staff costs associated with preparing the agreement, advertising the request, holding the required public meetings (three total and described below), and managing the franchise agreement after adoption. Adoption Process The process for adoption of a new franchise agreement is prescribed by the Public Utilities Code (Section 6232-6234). The following schedule is proposed. • May 3 —Introduce and pass resolution of intent • June 7—Hold public hearing and introduce ordinance • June 21 — Second reading and final adoption of ordinance • July 23 —Ordinance becomes effective Per the above schedule,the new agreement will be negotiated and presented to the Council on June 7th. The resolution proposed as part of this agenda report simply indicates the Council's intent to renew the franchise. FISCAL IMPACT There is a minor positive fiscal impact associated with granting of the proposed franchise for pipeline services. ALTERNATIVE The City Council may reject the application by Conoco-Phillips for a new franchise agreement. This alternative isnot recommended because it is in the City's best interest to have a qualified company operate and maintain the existing pipeline infrastructure within the City's right-of-way. ATTACHMENTS 1. Ordinance No. 1391 2. Resolution No. 9881 3. Conoco-Phillips franchise application 4. Public Utilities Code Section 6231.5 C14-2 Conoco-Phillips Franchise Agreement Page 3 5. Proposed Resolution of Intention to approve new franchise agreement TACouncil Agenda Reports\Administration CAMconocofranchise.DOC C14-3 ATTACHMENT 1 EXHIBIT/ ORDINANCE.N0.1391 (2001 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO GRANTING TO UNION PIPELINE COMPANY,A CALIFORNIA CORPORATION,A FRANCHISE TO CONSTRUCT,OPERATE,AND MAINTAIN PIPELINES FOR THE TRANSPORTATION OF 011,,,AND.OTHER SPECIFIED MATERIALS IN'THE CITY OF SAN LVIS OBISPO, STATE OF CALIFORNIA WIMREAS,the City-of San:Luis Obispo adopted Ordinance No. 1038 on April 2, IM granting a franchise to Union Oil Company of California for a term of 25 years for the transportation and distribution of oil and other specified materials in the City of San Luis Obispo;-and WHEREAS,Union Oil Company of California sold or transferred a portion of its pipelines subject to Ordinance No. 1038.to TOSCO Corporation and Union Pipeline Company,_a California Corponttion;and WHEREAS,Unica Oil Company of California informed the City of San Luis Obispo that it intends to commence the abandonment process for its remaining interests under Ordinance No. 1038 that have not been sold or transferred to TOSCO Corporation and Union pipeline Company,a California Corporation;and . WHEREAS;Union Oil Company ofCalifornia's remaining pipeline interests in the City of San Luis Obispo are still subject to the existing franchise agreement granted in Ordinance No. 1038 until such time that Union Oil Company of California has abandoned such pipelines pursuant to applicable law,and WHEREAS,TOSCO Corporation and Union Pipeline Company have requested the City of San Luis Obispo to enter into new franchise agreements for the oil transportation and distribution pipelines acquired from Union OR Company of California. NOW,THEREFORE,BE IT ORDAINED by the Council of the City of San Luis Wspo to grant a franchise to construct,operate,and maintain pipelines far the transportation of oil, and other specified materials in the City of San Luis Obispo to Union Pipeline Company {"Uncap',a CaliAxWa corporation as follows: SECTION 1: Terms and Conditions of Franchise(Table of Contents begins on page 2). 01391 C1 -4 ATTACHMENT 1 EXHIBIT I Ordinance NO, 1391(ZMO�eries} Page 2 of28 TABLE OF CONTENT'S page ARTICLE 1 NATURE OF FRANCHISE 4 A.Grant ofFrawAise 4 B.Limitations Upon Grant 5 C.Rights Reservedto the City of San Lis Obispo 6 ARTICLE 2 APPURTENANCES 6. ARTICLE 3 LOCATION OF PIPELINES 7 ARTICLE 4 CONSTRUCTION OF PIPELINES 7. A.Terms of Construction 7 &Restoration of Streets 7 ARTICLE 5 COMMENCEMENT OF CONSTRUCTION 7 ARTICLE 6 MAPS AND REPORTS TO BE FURNISHED 8 ARTICLE 7 COMPENSATION TO TIRE CITY 9 ARTIM 8 EMERGENCY EQUIPMENT AND CREWS I O ARTICLE 9 REPAIR OF DEFECTIVE FACILITIES AND REPAIR OF DAMAGE TO CITY STREETS 11 ARTICLE 10 REARRANGEMENT OF FACILITIES 11 A.Expense of Grantee 11 B.Expense of Others 12 C.Rearrangement of the Facilities of Others 13 D.Notice 13 1tItTICLE*I �'S 1tEMOVftt;OR AB OF FACILITIES 13 ARTICLE 12 COMPLETION OF WORK 16 a 2 Cl -5 ATTACHMENT 1 EXHIBIT anc Ordine Na. 1391 (2001' es) -Page 3 of 28 TABLE OF CONTENTS,CONVD. ARTICLE 13 RECOVERY OF COSTS OF REPAIRS AND UNPAID FEES .16 ARTICLE 14 BOND 18 ARTICLE 15 INSURANCE' 19 ARTICLE 16 INDEMNIFICATION BY GRANTEE 24 ARTICLE 17 CHANGES IN CONTROL OF FRANCHISE 20 ARTICLE 18 WAIVER OF BREACH 23 ARTICLE 19 DEFAULT 23 ARTICLE 20 SCOPE OF RESERVATION 24 ARTICLE 21 NOTICE 24 ARTICLE 22 SUCCESSORS 25 ARTICLE 23 ACCEPTANCE OF FRANCHISE 25 ARTICLE 24 FORCE MAJEURE 25 .AR'T'ICLE 25 LIQUIDATED DAMAGES 26 •ARTICLE 26 ATTORNEYS'FEES 27 ARTICLE 27 CONDEMNATION 27 3 c -6 (" ATTACHMENT 1. EXHIBIT Ordinance No. 1391 (2000eries) Pap 4 of 28 ARTICLE I NATUft OF FRANCHISE A Grant of Franchise. 1. The City of San Luis Obispo(hereinafter referred to as"City"},hereby gtants to Union Pipeline Company,a California Corporation,(hereinafter referred to as"Greatee'J, pursuant to the provisions of Article X of the San Luis Obispo City Charter,Article XL Section 9(b)of the California Constitution,and Section 39732(b)of the California Government Code,the non-exclusive right,privilege and franchise,subject,However,to all the limitations and restrictions herein contained,to construct,erect,maintain,operate,repair,renew,,abandon,and change the size of and remove pipelines,not to exceed twelve(12)inches nominal internal diameter,for the transportation of oil,products thereot hydrocarbon gases and other gas necessary for the operation and maintenance of the pipelines,water and mixtures thereof♦ movable by pipeline,in,under,along,and across the public smx% ways,alfeys'and places within the City of Salt Luis Obispo(hereinafter collectively refected to as"streets"),as descnW in Exhibit No. 1,.2ttwW hereto and made a part hereof. 2. The term of the franchise granted under this Ordinance shall be for a temi of ten(10) years;commencing with the date on which it is accepted by Grantee. 3. Unless otherwise specifically stated,the following provisions shall govern the interpretation and construction of the franchise granted herein: (a) This franchise shall include the right,for the period and subdect to the conditions hereof',to construct,erect,maintain,operate,repair,renew,abandon and change the size and remove the said pipelines, if any,of Grantee,as laid and constructed in said streets. (b) The terrns and conditions of this hanchise shall also apply to any pipe or other facilities of Grantee which are located within the right of way of any existing public road or street at the time such road or street becomes a City street through aunmtation or otherwise, subje'd to any other existing rights enjoyed by Grantee. (c) Grantee shall not be"relieved of its obligation to promptly comply with any provision of this franchise by failure of the City to enforce prompt compliance. "'I44 . u apo department, or other City entity,by the terms of this flancliise,may be legally transferred to any other city officer,employoe, department,or other City entity. (a) Grantee shall have no recourse whatsoever against the City for any loss,cost, expense,or damage suffered by Grantee and arising out of any provision or requirement of this franchise or its lawful.cu%rcement by the City. 4 C1 7 ATTACHMENT-1 EXHIBIT 1 . . Ordinance No. 1391 (20010orles) Page 5 of 28 (0 This frartchise does not relieve Grantee of any applicable requirements,of the San Luis Obispo Mpnicipal Code or of any federal,state,or City law,ordinance,rule,regulation, or speci fication,including,but not limited to,any requirement relating to street work,street excavation permits,or the use,rernoval or relocation of property in streets,except as specifically prescribed herein (g) This firanchise is tion-exclusive. Neither the granting of this fimchise nor any of the provisions.contained here=shall be construed to prevent the City from granting any identical or similar frand3ise-to any other person. ' (ls) The campeiisation provided for in this;franchiseis for(r7 the rights and- pritileges granted by this franchise; and{ii}thc.zight and.privilege granted to the Grantee to construct, erect,maintain,operate„repair,renew,abandon and change the size of and remove the. . said pipelines pursuant to this franchise within the City's streets. The City expressly reserves the right to impose and collect frons Grantee,on a non-discriminatory basis,its normal duly established processing and inspection fees from street cutting and excavation permits to the. extent such fees are imposed generally on all non-governmental applicants for such permits within the City. (i) Any activities involving the use of a pipeline system'for the transmitting of oil,products thercot hydrocarbon gases and other gas neeessaiy for the operation and . maintenance of the pipelines,water and mixtures thereof,which are not specifically authorized under this franchise are prohibited under this franchise. Except as provided in Article 2,any telecommunication or other uses not authorized in this franchise Ordinance mist be approved by. the City under a separate franchise. 6) If any provision of this franchise,.or the application of this franchise to any person or circumstance is held invalid by a court of competent jurisdiction oris not in compliance with any requirement of the public Utilities Commission,the City,or nay other federal or state body or agency having jurisdiction over Grantee's franchise activities,the remainder of this franchise Ordinance,or the application of this franchise to persons or circumstances other than those to which it is held invalid or not in such compliance,shall not be affected thereby. B. Limitations Upon Quant . 1. No privilege or exemption is granted or conferred by this franchise except those specifically prescribed herein. 2. Any privilege claimed under this franchise by Grantee in any street shall be subordinate to any prior lawful occupancy of the street.. 3: The rights and privileges.of this frauuchise.era PAW solely to Grantee except..as provided within this frandhise Ordinance. This franchise -is not be to sold,transferred,leased, assigned,or disposed of as a whole or in part,either by forced sale,merger,consolidation,or 5 C1 -8 ATTACHMENT 1 "141 BIT l Ordinance No.-1391 (2004eries) page 6 9U otherwise,without the Citys prior Consent as described in Article 17,infra,or as otherwise expressly-provided herein. The City agrees that such prior consent shall not be unreasonably withheld or conditioned. C. Rights Reserved to the Citv. L The rights reserved to the City under this franchise Ordinance are in addition to all ether rights of the City,whether authorized by the San Luis Obispo City Charter,.San Luis Obispo City Municipal Code,or any o#rerfbderal,state,or City law,rule,or regulation. No action,proceeding or exercise of a right shall affect any other rightsts that may be held by the City. Grantee,by acceptance of this fianchise,s1W1 be bound thereby and shall comply with any action or requirernent of the City in its exercise of any such right or power. 2. The City shall have the power and right at all times during the term of this franchise to require Grantee to conform to the laws,rules and regulations governing the operation of pipelines now or hereafter adopted by the City Council to the extent penaitted by law. I 'The City may enforce,to the maximum extent permitted by law,the inspection and testing of pipelines,pursuant to state and federal standards and require appropriate remuneration and fees to cover such enforcement activities. A. CLE 2 APPURTENANCES The Grantee shall have the right,subject to the prior approval of the City Public Works Department to construct and maintain such traps,manholes,conduits,valves,appliances, attachments,and appurtenances(hereinafter for convenience collectively referred to as "appurtenances"),as may be necessary or convenient fur the proper maintenance and operation of the pipelines under said franchise. Said appurtenances shall be so located as to conform to any order of the City Public Works Depar ment in regard thereto and not to interfere with the ase of the streets for travel. The Grantee shall have the right,subject to such ordinances,rules,or regulation as are now or may hereafter be in force,to make all necessary excavations in said street for the construction and repair of said pipelines and appurtenances subject to the prior approval of the City Public Works Department. "Appurtenances"shall also include any adjunct communications lines and/or conduits as coaxial cable,optical frber,wire,or other transmission lines or forms of trammission,and associated equipment and devices located in,upon,along, across,under or over the streets of the City,the sole function of which is to monitor or control the operation or safety of the pipeline system.via the distribution of video, audio, voice,or data. signals.-An atliunct communications tine shall_not_inplad0811y ' any means,to subscribers or persons other than Grantee,the signal of one or more broadcast television or radio stations or other sources of video,audio,voice,or data signals. . 6 C -9 ATTACHMENT 1 EXHIBITV Ordinance No. 1391 (200,Mies) Page 7 of 28 ARTICLE 3 LOCATION OF PIPELINES So far as is practicable and within the requirements of the California State Fite Marshall,any pipeline herebuift laid shall be located along the edge or shoulder.ofthe streets or in the pzrking areas adjacent thereto so as not unreasonably to disturb the flow of traffic and where possible shall be laid in the unpaved portion of the street. ARTICLE 4 CONSTRUCTION OF PIPELINES A. Terms of Construction The pipelines and appurtenances laid,constructed or maintained under the provisions of this franchise shall be installed,maintained.and inspected by the Grantee in satisfactory,safe,and workmanlike manner,of good material,and in conformity with all ordinances,rules,or regulations now or hereafter adopted or prescribed by the City Council; State,or Federal authorities. B; Res ion f treets. The work of laying,constrtieft maintaining,operating, renewing,repairing,changing size and moving any of the pipeline system contemplated by this franchise and all other work in exercise of this franchise shall ba`coaduoted according to the provisions of the City's encroachment ordinances from time to time prevailing,and otherwise in accordance with federal and state law and applicable City ordinances,and with the least possible hindrance or interference to the use of City roads by the publiobr by the City of San Luis Obispo,and Grantee shall provide all necessary warning,safety and traffic control devices as are or maybe required by City,State or Federal regulations. All excavations shall be.back filled-and adequately compacted. As part of any work completed under provisions of this franchise agreement;.the surface of City streets shall be repaired and replaced to meet current City standards and specifications. 'Under no.eircumstances shall the surface of City streets be placed in a manner less than as good and serviceable condition as existed-at the beginning of said work, to the.satisfaction of the City Public Warks Department, ARTICLE 5 tomNCEmENT OF CONSTRUCTION The Grwtce,in good faith,shall commonce with work of laying the pipelines and appurtenances within four(4)months from the date ofpassage bfthe approval ofthis franchise, and if env cnnh pipelines ho not an commencedydthin said finm thist franchise shall be declared forfeited;provided,however,that if the Grantee is maintaining and operating an existing pipeline system over the route referred to in Article I herein,it shall be deemed to be in compliance with the foregoing. The Grantee shall not commence the construction of any new pipelines under the provision of this franchise or add to such existing pipeline system,if any there be,until it frrst shall have applied for and obtained a pemtit therefore from the City Public Works Department. 7 C1 10 . ATTACHMENT 1 EXHIBIT Ordini moe`No. 1391 (200,eedca), Face 8 of 28 The application of the Grantee shall show the following facts:the length, approximate depth and proposed location of the pipeline proposed to be laid or constructed,the size and description of the pipeline intended to be used,and such other relevant facts as the City Public Works Department may require. The Grantee shall pay any and all encroacbmint permit fees of the City.. Upon the completion of the construction of any pipelines constructed pursuant to said.franchise,the Grantee shall render a statement to the City of San Luis Obispo showing in detail the permit or permits issued and the total length of pipeline,the contraction of which was authorized under such permit,or permits,and the total length of pipeline actually laid,and the . Grantee shall make payment to the City for the pipelines which have actually been constructed under said franchise as provided in Article 7,Section C. ARTICLE 6 MAPS AND REPORTS TO 13$FMNISAED A. Within six(6)months of the'eMetive date of this franchise for existing pipelines,and within ninoty(90)days following the date in which any additional pipelines have been laid or constructed under this.franchise,the Grantee shall file a map in such form as maybe required by the City Public Works Department showing the accurate location and size of all its facilities then in place,and shall,upon installation of any additional facilities or upon removal,change or abandonment of all or any portion thereof file a revised snap or maps showinc the location and size of all such additional and/or abandoned facilitiesas ofthis date. Cathodic protection.is to be used for all facilities installed or maintained pursuant to this fmnchise. For facilities previously in liquid service and Where the liquids have beenremoved and the facilities inerted,or for facilities previously in gas service that are not pressurized,cathodic protection shall be maintained consistent with State Fire Marshall or other agency requirements. A description of all the protective devices shall be furnished to the City Public Works Department which shall show the location and types of anodes,including a description of methods to be used as a protection against corrosion and electrolytic leakage. a. Grantee shall file with the City Finance Director,within thirty(30)days after the expiration of the calendar year,or.fractional calendar year,following the date of the granting of this franchise and within thirty(30)days atter the expiration of each calendar year thereafter,two copies of a report verified by the oath of Grantee or by the.oath of a duly authorized representative of Grantee,showing,for the immediately preceding franchise period,the length of main lines in streets,the nominal internal diameter of such main lines,.the rate per foot per year (when applicable)and the total amount due to the City. In this report,Grantee shall also show . any change in franchise footage since the last franchise report,segregating such footage as to new main lines and adjunct communications lines laid,old main Hnes and adjunct ^^mrmunicatioss-l�ed,�ld-main. ' 'ear-lines-al�sndan place, aad the footage of main lines and adjunct communications lines in territory annexed by the City since the last fianehise report: C. Grantee shall file with;the City Public Works Department within sixty(60)days after the end of the calendar year a report,in d"uplicate,-showinethe permit number of each permit C14 1 ATTACHMENT 1 EXHIBIT Ordinance No. 1391 (2flQl10edes) Page 9 of 28 obtained,for the installation of new main lines during the mmediatoly preceding franchise report period,together with the length and size of said main lines. ARTICLE 7 ' COMPENSATION TO THE CITY A. During the tern ofthis buthise,Grantee shall pay to the City an annual fee for this franchise,said fee to be those fees prescribed by the California Public Utilities Code secti�a n 6231.5,provided that the to is suWect to increase-to-HiF maximum rushed in suscquent amendments of the California Public Utilities Code. Annual payments to be made pursuant to this francbise shall be.due and payable in arrears April l of each year of tills franchise. The initial payment hereunder shall be prorated for the vemainder of the current calendar year based on a 365-day year. At the time of payment of fees by Grantee,Grantee shall file a verified statement with the Clerk of tho.City of San Luis Obispo,with.a copy to the City Public Works Department showing in detail the number of lineal feet and the diameter thereof expressed in inches.ofpipelines Covered by this franchise during the previous calendar year,or portion thereof 1 The compensation provided form this Article shall be subject to an increase after the first year of the franchise and each subsequent year during the term of this franehiae,based on the provisions of California Public Utilities Code section 623 1.5,as amended. The fees set forth will be adjusted annually each year by the annual percentage change in the U.S.Bureau of Labor Statistics(or successor agency)consum$r price index for all urban consumers(CPI-U)all cities average for the prior calendar year. Notwithstanding the provisions as otherwise stated in this Article and franchise,the Grantee shall be liable to pay the City the annual fee for the period to and including the date of either actual removal of the facilities or the effective date ofthe abandonment"in place," and until.the Grantee shall have fully complied with all of the provisions of or ordinances relative to,such abandonments. In the event of partial abandonment of facilities as provided in the Ordinance,or in the event of partial removal of such facilities by the Grantee, the payments otherwise due the City for occupancy of the streets by such facilities shall be,reduced by the length and diameter of pipelines abandoned or the actual pipeline removed beginning with the first day of the next succeeding franchise year,and for each franchise year thereafter;provided,however,that the `- c-rateshal tthe-adjtistrnent-(pet-tltisle}ep Abandoned or removed pipeline at the beginning of the next sacceeding Eanchiae year following abandonment or.removal. Grantee shall pay to the City,upon demand,the cost of all repairs made by the City to public property arising out of the operations of the Grantee under this franchise. Any fees charged or expenses charged to Grantee by City pursuant to this Article,or any other provision 9 C1 12 ATTACHMENT 1 EXHIBIT . Ordinance No. 1391 (2001tes) Page 10 of 29 of this franchise Ordinance,unless disputed in good faith,shall be paid when due or shall be deemed delinqueat: Any undisputed delinquent amounts shall be charged a 10% penalty and,in addition,shall accrue interest commencing thirty(30)days after the due data,at a rate of one and one-balfpercent(1.5%)per month(based upon a 30-day calendar snpnth)or any.lesser amount if required by law. Any neglect,omission or refusal by said Grantee to.pay any undisputed delinquent franchise fee with any late charges,within thirty(30)days of delinquency,at times or in the manner herein provided,sW be grounds for a declaration of a forfeiture of this. franchise and of all rights hereunder. Payments are to be grade to the City Finance Department,990 Palm Street,Satz Luis Obispo,California 9340I,or at such place as the City shall,from time to time,designate in writing. • 1 ti. Grantee shall pay the City a Vwding fee of$5,000.00 within thirty(30)days after the .sato the City Council adopts flus franchise Ordinance. C. Grantee shall pay the City Public Works Department,within sixty(60)days after the end of each calendar year,for each year during the life ofthis franchise,an initial construction charge calculated at therate of One Dollar($1.00)per foot for all new main lines laid pursuant to this:franchise.Ordbm=dicing the preceding.year. D. Right of in action The City shall have the right to inspect Grantee's pipeline accounting and other records relating to its.annual report and to audit and recompute any and all accounts payable under this franchise. Costs of audit shall be borne by Grantee when an audit results in an increase of more than five percent of.Granteels annual payments to the City. ...Acceptance ofany payment shall not be coashued as.areleas%waiver, acquiescence,or accord and satisfaction of any claim the City may have for further or additional.sums payable under this franchise or for the performance of any other obligation heraunder. ARTIC)C.E.$ EMERGENCY EQUIPMENT AND CREWS At all times during the term of this franchise,the Grantee shall.maintain or arrange for,on. a 24-hour-a-day basis,adequate emergency equipment and a properly trained emergency crew within a reasonable distance from any pipelines,appurtznanoes and facilities installed or maintained pursuant hereto for the purpose of monitoring the leak detection system and the communications systems if applicable,and of shutting off the pressure and the flow of contents of such facilities in.the event of an emergency resulting from an earthquake,act of war,civil . [tiaL+ rhansg,firPtinp��_�yLp 10 C 14 13 ATTACHMENT 1 . EXHIBIT:( .Ordinance No:1391(2o01'�eties) Page 11 of 28 ARTICLE 9 REPAIR OF DEFECTIVE FACILITIES AND REPAIR OF IIAM'AGE TO CITy BTREE'I'S If airy portion.of any street shall be damaged by any reason related to the Grantee's operations pursuant to this franchise including defective'facilities laid or constructed under this franchise,Grantee shall,at its mien expense,repair any defect of its facilities and put such street. in as good condittou as it was before such damage was inourred,to the satisfaction ofthe City Public Works Department. If Grantee,within ten(10)days after receipt of written notice from the City Public Works Departma t instructing it to repair such damage,fails to commence to comply with such instruction,or,thereafter,fails diligently to prosecute such work to completion,then the City Public Works Director immediately may take any actions winch are,in the sole judgment and discretion of the City Public Works Director,necessary to.repair said damage. Any and all costs and expenses so incurred shall be the sole responsibility of Grantee including the cement rate of overhead being charged by the City for reimbursable work,which. cost and expense,by the acceptance of this franchise,Grantee agrees to pay-upon.demand If such damage constitutes an immediate danger to public health or safety requiring the immediate repair thereot the City Public Works Department,without notice,may repair such damage and Grantee agrees to pay the cost thereof upon demand. ARTICLE 10 REARRANGEMENT OF FACILYTI>QS A. Expense of Grantee. 1. If any of the Grantee's facilities,in the opinion of the City Public Works Director, -shall endanger the public or interfere with the use of any street by,the public or,for pablid purposes,the City shall have the right to require the Grantee,and the Grantee shall repair, replace,move,alter or relocate the same(hereinafter called"rearrangement")to avoid such danger,biterferotwe or obstruction,in conformity with the written notice of the City Public Works:Department;at the Grantee's sole.pxperLW' 2. : The City reserves the right to ebange the grade, to construct grade separation facilities)to change the width.or to alter or rbattgo the.location,of any street which is located within the service area for which this franchise is granted. If any,of the facilities heretofore or hereafter constructed,installed or maintained by Grantee pursuant to this franchise on,along, under, over,in,upon or across any street are located in a manner which prevents or interferes with the change of grade,traffic needs,operation,maintenance,improvement,repair, const u .tion,reconstruction,widening. wade separation.-RI or rel any work or improvement upon the street,Grantee shall relocate permanently or temporarily,as directed at the sole discretion of the City Public Works Director,any such facilityat no expense to the City,upon receipt of a written request 6m.the City Public Works Department to do so, and shall commence such work,by beginning engineering,surveying,or other pre-contraction activities,on or before the date specified in such written request,which date shall be not less than sixty(6€.)days from receipt of such written request. Grantee shall thereafter diligently prosecute 11 C14 .14 - ATTACHMENT 1 Ordinance No. 1391 (2001�ds) , Page 12 of 28 such work to completion. Should C=ttee neglect or M to relocate its facilities in itimely maturer after receipt of any such notice,in addition to the litlmdated damages as set forth in Article 25,Grantee shall be responsible for and shell reimburse the City for any and all additional costs or expenses incurred by City due to or resulting from suchdolay in the relocation of the facilities plus,where applicable,the current rate of overhead being charged by the City for reimbursable work. If such street be subsequently constituted a state highway,while it remains a state highway the rights of the State of California shall be as provided in Section 680 of the Streets and Highways Code ofthe State of California. 3. The City reserves the right to lay,construct,repair,alter,relocate and maintain subsurface,surface or other improvements of any type of description in a governmental but not pmprietary capacity-within,over or under the streets over which this fi=chise is granted.. If the City finds that the location or relocation of such subsurface,surface or,other improvements coritlicts with the facilities laid,constructed or maintained under this franchise,whether such facilities were laid before or after the improvements of the City,Grantee shall relocate permanently or temporarily,as directed at the sole discretion of the City Public Works Director, any such facility at no expense to the City upon receipt of awritten request from the City Public Works Department to do so and shall conunciace such work,by beginning engineering,surveying or other pre-construction activities,on or before the date specified in such written reque4 which data shall not be less than sixty(60)days from receipt of such written request. The GrMice shall thereafter diligently prosecute such work to completion. Should Grantee neglect or fart to relocate its facilities in a timely manner after receipt ofany such notice,in addition to the liquidated damages as set forth in Article 25,Grantee shall be responsible for and shall reimburse the City for any and all additional costs or expenses incurred by City due to or resulting from such delay in the relocation of the facilities plus,where applicable,the current rate of overhead being charged by the.City for reimbursable work lfsuch street be subsequently constituted a state highway,while it remains a state highway the rights of the State of California shall be as provided in Section 680 of the Streets and Highways Code of the State of California. 4. If Grantee,after the notice provided for herein from the City, fails or refuses to ' relocate pennanently or temporarily its facilities located in,on,upon,along,under,over,across, or above any street,or to pave,surface,grade,repave,resurface,or regrade as required pursuant to any provision o f this franchise,the City may cause the work to be done,and shall keep an itemized account of the entire costs thereof, and Grantee shall hold harmless the City,its officers and employees from any liability which may arise or be claimed to arise frond themoving, cutting or alteration of any of Grantee's facilities,or any necessary relocation of the facilities of Other utilities. 5. Grantee agrees to,and shall,.reimburse the City for such cost within thirty(30)days atter presentation to=tee-of-antaken i } . e l0A B. EEnemeof Others .. (I) The City shall have the right to require the Grantee to rearrange any part of the Grantees'facilities for tate accommodation of the City-when such rearrangement is Hone for.the 12 C1 15 ATTACHMENT-1 .EXHIBIT, Ordinance No:1391(20011peries) Page 13 of 28 aec ommodation of any water,electric.gas or other utility system now or hereafter owned or operated by the City. Except as otherwise provided in Article lt)A,such arrangement shaU be at the City,&. . expense. (2) The City shall have the n&.to require the Grantee to rearrange any part of the, Grantee's facilities for the accommodation of any person,firm or corporation. When such rearrangement is done for the accommodation of any person,firm or.corpomtion,other than one of said utility systems owned or operated by the City,.the cost of such rearrangement shall be borne by the accommodated party. Such accommodated party,in advance of such rearrangement,shall deposit with tho.Grantee or the Coity CIerk cash or a letter of credit or other cash equivalent in an amount,as in the reasonable discretion of the City Public Works Department, shall be required to pay the costs of such rearrangement,and such accomnwdated party shall execute an instrument agreeing to indemnify and hold harmless the Grantee from any. and all damages or claims caused by such rearransemem .(3) The rearrangement referred to in subsection(1)and(2)of Section B of this Article l0 WWI be accomplished in conformtity with the written notice of the City Public Works Department G Ltearrangeanent of the Facilities of Ot�r. ers. Nothing in this franchise shall be construed to require the City to move,alter or relocate any of its.facilities upon said streets,at its own expense,for the convenience,aocomnio'dation 6r necessity of any other public utility,person;firm or corporation nowor:liereafter owr&&a public. utility system of any type or nature,to move,alter or relocate any part of its system upon said streets for the convenience,accommodation or necessity of the Grantee. D. Notice. The Granwe shall be given not Icss than sixty(60)days writ#en notice of wry rearrangement of facilities which the Grantee is required to-make.hereunder: Such n6dee'shall• specify in reasonable detail the work to be done by the Grantee and shall spec*a reasonable ' time that such work is to be accomplished. In the event that the City shall change the provisions of any such notice given to the Grantee,the Grantee shall be given an additional.period of not less than thirty(30)days to initiate such work. ARTICLE 11 GRANTEE'S REMOVAL ORABANDONMENT OF FACILITIES A. The City reserves the right to require Grantee to remove its facilities from the City streets and City public property in the event of the non-renewal,revocation or termination of this franchise or at any time thereafter with respect to those facilities abandoned in place,or for the facilities affected by the permanent discontinuance of all or a portion of the facilities. Further,so long as any abandoned facilities installed under the authority of this franchise remain in a City street,Grantee shall maintain a perfnt»ance bond,security fund, or other form ofeollateral, 13 0416 ATTACHMENT 1 EXHIBIT j Ordinance No. 1391 (200,0eries) Page 14 of 28 acceptable to the City,sufficient to cover the cost of ft removal ofag such facilities from the Citystmets. B. At the expiration,revocation or termination of this franchise or of the permanent discontinuance of the use*fall or a portion of its facilities,Graritee.shall,within thirty(30)days thereafter,make written application to the City Public Works Department for authority either. 1. To abandon all or a portion of such facilities in place;or 2. To remove all or a portion of such facilities. Such application shall descn. the facilities desired to be abandoned,their location with reference to City streets,and shall describe with reasonable accuracy the physical condition of Such facilities, As part of the application for removal or abandonment of these facilities,Grantee shall submit a soil test,taken within thirty(30)days of the submittal of the application,forthase materials to be tested annually pursuant to federal,state and local.laws. A soil test shall be taken along that portion of the pipeline to be removed or abandoned at such intervals as directed in writing by the City .Public Works Department and reasonably consistent.with established.semplmgpiotoo*.. 7110 City Public Works Department shall determiao whether any abandonment or removal vrhicb-is thereby proposed may be effected without detriment to the public interest and the conditions under which such proposed abandonment or removal maybe effected. The CityPublic Works Department shall then notify Grantee of the City's determi cations, Grantee shall also.obtain. permits to abandon or remove the pipeline from the City Public Works Department for all pipelines prior to the removal,abandonment or discontinuation of use of all or a portion of Grantee's facilities. The City also reserves the right to require removal of Grantee's abandoned facilities in place at any time following the expiration,revocation or termination of this franchise. Grantee shall be required to meet the bonding,insurance,indemnification and annual fianchise fee requirements of this franchise,for facilities abandoned in place. C. Within thirty(30)days after receipt ofNotification firm the City Public Works Department pursuant to Article 1 I.8.2 above,Grantee shall apply for a permit from the City Public Works Department to abandon or remove the facility. D. Grantee shall,within.sixty(60)days after obtaining such permit,commence and diligently prosecute to completion the work authorized by the City's permit. E. In the event Grantee applies to remove its facilities,and the City Public Works . Department determines that any or all of the facilities cannot be removed due to a moratorium preventing work in the City streets, the payment of annual franchise fees shall be deferred during any such moratorium period,provided that Grantee promptly removes its facilities after notice by the City Publie-�For1�-Bepar-tinea Drat . such facilities. In the event Grantee does not promptly remove such faoilities as direoted,any deferred annual.franchise fees skull be due and payable within thirty(30)days of notice to pay. Deferred annual franchise fees shall otherwise be waived. F. Failure to Comply with City's Orders Regarding the Removal or Abandonment of Facilities. 14 CAW - ATTACHMENT 1 EXHIBIT Ordinance No.1391 (200 es) Page 15 of 28 : I. If any orders or prescribed conditions relating to the abandonment of any facilities are not complied with,the City Public Works Department may mi q'ma.such additional orders and ' conditions as the City deems appropriate,including an order that the Grantee remove any or all of such facilities. Grantee shall comply with such additional oilers. 2. In the event that Grantee fails to comply witb the terms and conditions of abandonment or removal as may be required by this franchise Ordinance,and within such time as may be prescribed by the City Public Works Department,then the City.may remove or cause to be removed such facilities at Grantee's expense. Grantee shall pay to the City all of the costs of removing and disposing of these facilities,as well'as returning the rights-of-way occupied pursuant to this franchise,including,but mot limited to; (a)the cost of all environmental testing the City must conduct to deteanino the environmental condition of any rights-of-way occupied pursuant to this franchise and to ascertain what procedures the City must undertake,if any,to return any such rights-of--way to the environmental condition required by applicable Federal, State or local environmental laws;(b)all cleanup costs,disposal costs,and any other costs associated with retaining these rigbts-of-way to such environmental condition;(c)all cosi of removing,storing,and disposing of the Grantee's facilities;(d)all costs of retuming all streets to the structural conditions they were in immediately at the beginning of Grantee's use of these streets pursuant to this franchise agreement;(e)plus the current rate of overhead being charged by the City for reimbursable work. 3. 1f,at the nonrenewal,revocation or termination of this franchise,or of the permanent discontinuance of the use of all or a portion of its facilities, Grantee,within thirty(30)days thereafter,fails or refuses to make written application for the above-mentioned authority to remove or abandon its facilities,the City Public Works Department shall make the determination as to whether the facilities shall be abandoned in place or removed. The City Public Works Department shall then notify Grantee of its determinations. Grantee shall thereafter comply with the applicable provisions of this Article 11. G. For those facilities Grantee abandons in place,Grantee shall be required to maintain an acceptable performance bond,leiter of credit or security fund,as determined by the City Public Works Department,to cover the costs for the removal of any such abandoned facilities from the City streets for any and all periods of time,including those periods following the expiration,revocation or,termination of this franchise,that Grantee's facilities remain in the City streets. Grantee shall be required to maintain insurance and to indemnity the City pursuant to this Article during any periods the abandoned facilities main within the City streets. Provided, however,that any pipelines which cannot be removed due to a moratorium preventing work in the City streets,may be deferred from the payment of the annual ftanchise fee. The payment of ^ugtmcWse-fees may-be dcfcm"ugntawzuch-moratorium.-period,$roI onto promptly removes its facilities after notice by the City Public Works Department of the cessation of the moratorium and direction to remove such Facilities. In the event Grantee does not promptly remove such facilities as directed;any deferred annual franchise fees shall be due and payable within thirty(30)days ofnotice,to pay. 15 C14 18 TT t I-!MFAIT 1 : at.WtBrs:i�; Ordinance No. 1391(20014PLs) Page 16 of28 ARTICLE i2 COMPLETION OF WORT{ 1n the event that the Grantee fails to commence any work or act and diligently proceed .therewith or to completeany such act or work required of the Grantee by the terms ofthis fiwichise within the time limits required hereby(and except as is otherwiseprovided in Articles 10 and 11),the City may cause such'act or work.to be completed by the City.or,at the election of tho City,by a private contractor. The Gmtee agrees to pay the City,within thirty(30)days after &Hveiy of an itemized bi%the cost of performing such act or work plus an amounf equal to fifteen percent(1 S%)thereof for overhead. If the Grantee is dissatisfied with any decision made by the City Public Warks Department hereunder or the determination of the cost of any work performed by the City pursuant to this Agreement,it may petition the City Council to review the same within ten(10)days afar such decision or determination, ARTICLE 13 RECOVERY OF COSTS OF REPAIRS AND UNPAID FEES If the Grantee has not paid the City for such fees and expenses and/or liquidated damages incurred by or payable to the City as hereinabove set forth,the City may institute the following collection procedures(which procedures are in addid6n to any other rights,in law or equity, which the City has to correct amounts due under this franchise and to enforce the teras of this franchise): A. The City Public Works Department shall keep an itemized account of the expenses incurred by the City pursuant hereto,or the fees unpaid by the Grantee, Sixty(60)days after the presentation of the bill to the Grantee therefore,the City Public Works Department shall prepare and file with the City Clerk a report specifying the work done by the City,or the unpaid fees,the itemized and total cost of the work,a description of the work performed,and the name and address of the Grantee entitled to notice pursuant to this Article. B. Upon receipt of said report,the City Clark shall present it to the City Council for consideration. The City Council shall fix a time,date and place for hearing said report,and any protest or objections thereto. The City Clerk shall cause notice of said hearing to be posted in a newspaper of general circulation in the City,and served by certified mail,postage prepaid, addressed to the Grantee as set forth herein. Such notice shall be given at least ten(10)days prior to the date set for hearing and shall specify the day,hour,and place when the City Council will hear and pass upon the City Public works Department's report,together with any objections rn nrotestc whiQlh-nlaya3e fr C. The Grantee may file written protests or objections with the-City Clerk at aiiy titme prior to the time set for the hearing on the report of the City Public Works Department. Any such protest or objection must contain a description of the work or unpaid fee or liquidated damages in which the Grantee is contesting and the grounds of such protest or objection and the date it was received by him. He shall present.such protestor abjection to the City Council at the_ I6 C1 19 ATTACHMENT 1 .EXHIBIT Ordinance No. 1391 (w aeries) Page 17 of 28 time set for the hearing,and no other protest or objection shall be caatsidered,except as determined by the City Council for good cause shown. D. Upon the day and hour fixed for the hearing,the City Council shall hear and.pass upon the report of the City Public Warks Department together with my such objections or protests,make such revision,correction or modification to the charge as it may deem just;and when the City Council is satisfied with the correctness of the charge,the report(as revised, corrected or modified);together with the charge,shall be confirmed or rejected: The decision of the City Council on the report and the charge,and on all protests.or objections,shall be the final and conclusive decision of the City. . R The City Council may thereupon order that such charge shall be made a personal obligation of the Grantee or assess such charge against the property of the Grantee. (1) If the City Council orders that the charge shall be a personal obligation of the Grantee,it shall direct the City Attorney to tolled the same on behalf of the City by use of all appropriate legal remedies. (2) If the City Council order that the charge shall be assessed against the property of the Grantee,it shall confirm the assess eat,cause the same to be recorded on the assessment roll,and thereafter,said assessment shall constitute a special assessment.agaidst a lien upon any property held in the City of San Luis Obispo by the Grantee. P. The validity of any assessment made under the provisions of this fimebise shall not be mlosted in any action or proceeding unless the same is commenced within ninety(90)..days after the assessment is placed upon the assessment roll as provided herein. . G. The City Council,in its discretion,may deterntino that assessments.in amounts of. $500.00 or more shall be.payable in not more than five(5)equal'anmial installments. The City Council's determination to allow payment of such assessments in installments,the number of installments,whether they shall bear interest,and the rate thereof shall be adopted by a resolution prior to the confirmation of the assessment. It Immediately upon its being placed on the assessment roll,the assessment shall be deemed to be complete,the several amounts assessed shall be payable,and the assessments shall be liens against the property of the grantee in the City of San Luis Obispo. The lien shall be subordinate to all existing special assessment liens previously imposed upon the same property, and shall be paramount to all other liens except.fDr state, county,and municipal taxes with which it shall be upon a parity. The lien shall continue until the assessment and all interest due and Mable_thereon.gre._pai (1) All such assessments remaining unpaid after thirty(30)days from the date of recording on the assessment roll shall become delinquent and shall bear interest at the highest rate permitted by law from and aft said date. 17 Cl20 ATTACHMENT 1 EXHIBIT 1 Ordinance No. 1391 (200tes) Page.18 of 28 L After confirmation of the report,certified copies of the assessment s1ta11 be filed with the County Auditor on or before August 10th. The descriptions of the parcels reported shall be those used for the same parcels on the County Assessors map books for the currant year. 1. The amount of the assessment shall be collected at the same time and in the same manner as ordinary county taxes are collected and shall be subject to the same penalties and procedure and sale in case of delinquency as provided for ordinary county taxes. All laws applicable to the levy collection and enforcement of taxes shall be applicable to such assessment. If the City Council has detenmaed that the assessment shall be paid in installments,each installment and any interest thereon shall be collected in the same manner as ordinary City taxes is in successive years. If airy installment is delinquent,the amount thereof is subject to the same penalties and procedure for sale as provided for ordinary eotusty taxes, K. All money recovered by payment of the charge or assessment or from the sale of the property at foreclosure sale shall be paid to the City Finance Director. ARTICLE 14 "BOND A Grantee shall,concurrently,with the filing of and agceptance of award of this franchise, file with the City Clerk,and yearly thereafter,"maintain in 4411 force.aid effect,a bottd guaranteeing to the City of San Luis Obispo the penal sum.of One Million Dollars($1000,0000),With a - surcty to be approved by the City Public Works Director and City Risk Manager,conditioned that Grantee Shall,well and truly observe, fulfill and perform each and every term and condition of this franchise,and in.cL material breach of condition of said franchise,at the discretion of the City Public Works Director, a percentage of the amount of the bond shall be paid to the City according to the fallowing schedule,which cumulative amount for any said breach not cured within the time specified below shall mot exceed the full amount of the bond,in addition to any damages recoverable by the City and shall be recoverable from the principal and sureties of the bond: Following receipt of notice by Certified Mail sent by the City,failure to cure said breach of condition,within. Penal sum paid to City: 10 business days 5%of the amount of the band 30 calendar days 30%cumulative amount of the bond 00 calendar days 100/0 cumulative amount of the bond 90 calendar days 100%cttmulative amount of the bond 18 C14 21 . - - • . ,c,�EHIBIT Ordinance 14o. 1391.(20011m) -Page 19.of 28 The amount of time specMed above shall be tolled while City and Grantee resolve,'.orAmdl,the City.Counciil rules on,any written appeal;protest or objection to the City Public Works 'Dircetofs decision as set forth in Articles 12, 13, 19,and•25,and-elsewhere in this agreement; however,if Grantee's appeal,protest or objection is found by the City Council to be the result of bad-faith actions or tactics that'are frivolous or intended to cause uAnecessary delay;such amount of time.64-11:not be tolled. If 994'bond is not so,Aded;the Award-bf this-frati 'bo'set aside sud ' any#10ney piid,twofarc will:be forfeited VUha►cvez a bond is::taked aticl'deen ed to be 'liquidated dianages for.any breach Qf a fern of cbndifion'of this:franchise,-the Graiitae mu'sf inuriediately file another bond of like amount and character;and if thc.Grantec failstO:da so .within the time set by the City,Publie WarksDirector,the City Coaneil irisy,by'resolutibn, deelare.said franY chise automaticall forfeited. Nothing herein-shall insulate.Grantee from ' . 1labilk ut . ry:.'. excess:of the:amourrt of said:borldorshall(?e:constrize�as:a:yeaiver�by;#ke::City�faQy ,remedy tit lav+:against<31ie, aritee. oxy`laie2c :ofthe teias;siiit oandiitaris oftbfs i�ttahtso:of cif arly damage;.loss orattjuriesiiffeedl-by'.the_City'of San l;udlxiapo:Srl`oase;0 ?3!;:dairiage, loss oi<ibjtity:�uffered ljy. +pe'rson ;fuxri;or corporation by'reasoitOfatrj+woxlt doiie'ar arty activity'cnnduited by the'.Gzatrtee.ineicetcise aftliis:frattohisd. B. The faithful performance bond shall continue,to existfor.nne(1)year-followttig.tlte: City's approval.of any sale,transfer,assignment or other chahgd.of ownership of this franchke, oi.of th4.expirition or termination of this franchise: The'City mayreicase said boftd:prior:to'the end'of th'e one:(f;year period'upoa satisfactiofi by:Ctrgntee ofali ttae:obligaxioris under this: - fFaa'r" se :. ARTI IIYSL'TRAl!tCly A. fhe.Qmritee.shall grocurC.Bildshall kaep in foicg:fox tYie'ietnn:ot tie:francfiise;at:ihe sole cost Arid eitpenseofilie;t rantee,thp' ollawing tnatuahae 'X11 i suraiiors`fiovcrag s.riie$P ?e placed'aiith:iiisttters viwfiich'liave a Best's rating:afriat.lei3s:tlititi;$ vIII�ii'tl :. icts�?ranceaaiP9niesiti.ttie:SttebfGali#orma: rteeaysaffsfy:therequ.'irieriieitsofahis ... 2lricle:l5 byahbw". Y y. ; y U14 hof a#`rel incur rtee reasoiiabl satxsf ct fQ tl c CiC :Ano4t e.:.Piid ' > 'Risk�Maaager. %toj nerci l-Gdnerai Liabilit nsura L •iitantee.'ihall.maintain M full foree'add' effect'Coriunercial.Cretieral'Liabilitylnsivance ri the-followmizoyexages::. l;:l'ersnnal a andBgdilyInjitry,moiudutgeathtsu7R. tingtherefror .. 3° ')'ropertyD;ituagd; -.J.'...,::'. :..:, . l;. '•: T{@TY111t1(tP, ... .; ,:. ,, .z": t,: �--_--_--_;�ca�erage_�vltio}��? ...;�.. �a]]VVi___fcf c,'n9�-wi �t:;�ncllltred��lrt��?s-::-: 'Tine a vto trit':of:tn ae;:$i inotbe-les`'c -fo ' ii ;iurari. at:lh9 Nowt ''1 ;. Ari: ieGnveM e.'.. tobodtl ,oriel>". ' oiiiaiui : clGdin 'feat `feral" ; 'top ,.. � foingliilpooverse:' tile_Total.ainoaintAffeti'TJfill"oiir ' 11 iUO 0' U. :Thd followiti ,'endocseaients must'be -ovS It : }„ g,}p! 1r '000,00, ((y{ . .. . .. .. . .. .. :. .. .:' : .$.: ,.,... . . .. . pz� .dt;d.;titat•e�CCrL.policy - 1. Ii`the insuraiibe.poli cy covers on an aceiclerit"tincts, it•tiiust ba charged to'. t`oCCittl£r108.0 . 19 . :. C14 . 2 ATTACHMENT 1 . • .. • . ' EXHIBIT• � . Ordinance No. 1391 (20011mics) Page 20 of 28 2. The policy must cover personal injury as.tvell as bodily injury. 3. Blanket contractual liability must be afforded and the polipy rustoobtain a'crdss- .. liability ar severability of interest endorsement A. Broad Form Property Damage Liability must be:afforded. S. Products and Completed Operations coverage must be provided.. 6. The City,its officers,employees and agents shall be named as additional insured under-the policy. The policy shall include the appropriate insurance company endorsement; as required under City regulations. The policy shall provide that the insurance M11 operate as: primary insurance. No other insurance:effeeted by the.City;Wh6thet coitperdial or self-, .. . iii trance.wi11 be ealled upon to coritrititite to a.loss. reundei: The fo owina.requirements apply.to.all insurance,to,be proylddd by Grdii#ee 1. A certificate of msuranee shall be furniihed to the City. .Vpon request by the City, . Qragtee shall provide a certified copy of any insurance policy:to the City,'withit forty-five-' w6rkiug.days of the City's request. ;.. 2.: Certif cites acid policies shall.sWe 0 var Chari ed:.inthat tha palioies w�11 iaCbs canseled'or'.radac il'ui:' ' ::: erage , ' . g atty•other.iitaferial respectw#hautfhiiiy;days:.prior.vvtitEen:iiatige:fo;'thd. -:... City: B. Failure on the part of Grantee to procure of maintain-required insurance aud'botidirtg':,- siWl constitute a material breach of this franchise upon which the City may immediately. terminate or suspend this franchise. ARTICLE 16 : . .. . : . - '. . :1iN1jVMMFxCA.'T`w BY G12AN'I'». Tht Grantee;:byAheapoeptance or use of the'fraiuci tse hereby giianted,.sh 11&1e4 ­ 'indemnify-and shall keep.and save free and harmless tho:City,its.r fficers,agents ai or employees.against any and all claims,demands or causes of antiori uthioh maybe asserted; prosecuted or established against them,or any of thomi for.damage'to persons, or:property;of.. whatsoever nature;.arising aut of'the use,by it of the Citystreets heretihdPx or:arisitigui of sny of the opefations or activities oftiie Grantee�yrstiai►t,.to Wis'frau'chise;.�vhether sttchr)aiiige. tre caused by its cwt► ale tiegligeAee shall or rtggli$enoe gotici}i etit;v+it#t t e,Ctty, eXoepttng therefor m,however;asiy claim u ¢efYiatid based on the sole.pepligetce 4K1wiflful3rti&Qnpdudf p€ the'City'; zny'pl dm;4etitau oz:'cause ofactian:vliicl`iiiay:lsp:aiis. coed; o e itefl=Ak ins lieV established:ago_ ttheGi'ty-xinat'the:piroyisionOft : orkei-4C pApensao'i1AVtro -ipj `?tv:.., .:..Or Eiie'death of any of:City's:oftimrsi agents*or a plvyees while.VcUg.within the seopeuf tl err errtploynierit.:.Granteeatiallnot Ile resptinsible.for.= crimitial;fraudulent'or_maliaittus;gaiii}iict r• 'r. .¢: Ill F77 . bn and alter the;Gi'antee's°acre`tan def tlns:fiaiich se is via d: herein,Grantee,its partners;. shareholders;or any�oth'ei peicson or`petsot�s htiliizng'an;iritet.$: 20 ' . C14 3 - - : ATTACHLENT �! . Ordinance No. 1391 (200, eries) Page 21 of 28 ' in Grantee shall not transfer any interest in the franchise where such a transfer would lead to another person achieving a twentyf vo percent(25%)or.greater intorest in this franchise or . change control of this franchise,unless the City approves such a transferor change in control . The City shalt approve a request for transfer or change iii control only if doing so%,errves'the public interest: As used in this f adcliise Ordinance;."contrpl".iticl'udes actual warking corltroT:ia whatever marmer-cxerci ed 1. The City shall deny atiy such re q=t transfer or chuwge in contrdl if to transtbror or transferee fails to camplywith.arry:applicableprovision of this Article oftlus . franchise Ordinance,or if the'City determines they transferor is In'hon-compliancev6 the tetrns and cdnditions of this fraa6hise Ordinance,or if a transferee is WcIdog iri expeaeme andfox, fipancial ability to operate t#ie pipelines:authorized;hy this frouoliisqOrdinance;:or.iflio::; J. . pioposed'transfer will lie detrirnentat xa the.pt bI, interi st:: . . 13. Hoth the Grantee and theigpased`trensfree.smell i�ifaiva tlie�t`.]y�iliJi:',fir. b. Y... e 7 'r:":. epartnient:nf any penQizt chaup.in control of this franoliise" uny: e�iding;ti si'te�;of. hiterestin-the frartchise requiring th'.. Ity�s.cotisent pursuant to t)irs::4rticle,and ea4:shalI provide applications containing all documentsott which ttte.irat>sfe 'or:cJiattge'in`cohtroi Predicated and:all docurnipts. 'hick tiie.'t^ity]?ubIic WorksDepa tmerrt.detennines'ate CM3`"-:- to evaluate the transferor change;ot'control...These applie46a:st3all:bc signed by;duly:. authorized iepresentahves of the'Glrantee_and`nirergpasetl frau sfeti`ee,tvith.si aclmowledged by b nota y., Tfie:appiopriate trapsfer.fee ci scribe'fl:iri Ai isle.l7(C ;•:infra's ll , acpompany these applications:' 1. Grantee's application s1ta11 inolude: a.. Identifioationzi d ownership of die proposed transferee in the sima dataij-d.a f the-proposed transferee were an appEcant,for ari.inift grant;.: b.Current financial stateiiients showing:66. uat Clal.onztd�tion.o rtkie C arit?~e:as '• of the:dote of-the RpHcatiot�.:'In this:app�a.ort;the: atiteo:s�tall. area,ta sttlxtci k 'tristzr al siatements.showirig the'condtion o�'the°franbhise;esttf closing;^Faid:;finatis ialstatersert#s:>.';; :siiall:havo tieeft:sudited and cerci fieri by<ari''i di .stldenx;G' pu ilie adcoinratarit and shall b`e;:': ` .1? salir ntteil with iritiiiiety{90j:days,of#iclosiitg; 2:'The pioposed.transferee's V.pli6dpzt shall eoritain;ci iuht-finartcial statements:bfthioproposed•hmnsferee•aridotliersuchiploanationantY.data;.includingbu notav-: limited;to sou,zce of capitate as will leFi►onstrate rQztelrist�xly t at�f Prop d#azls ee#rag all the f riatic ai'resources tiepessary:'fd:acgiiSi .#f}e.I?i lute(sy; pt'all.of tare V,d f f�naJise;•reingd'y;a�andnll d #`a�►13aarid�viatalioiis oC�c.prp3'ssz� oi'.fkis - a. fretrchrse rri'•the C�rante P'asf" ezif`` a?td'isrestionde ° .t(cHet"itipraventefa.:slid ' :.•..:\:.. � .: - . ..... ::...i.i'.., ..i ..'y SIT: - ':�rl4rtaons as maybe: urred drb'Ase�12o stn tt � -'`♦ - '' 8I! b' t1CY 0 i i untie ahis'f c `is'' etIu..T�.. r ran h e:1'lie:' r"'oseil, ere`e'',vi11:be— OP. `tr�isf fica] nfa atoi' 't2bi Om ftttianearit>sti' tiii !rel♦ .. ,ty:�;- tdti :a ttig�to�uif�tzafton?e►r�AF�-.� '. the -ro'osetl'tiarisferee P:. P. ♦kfeee3, .... .. ...... , a 1fA.. Amu 1 lode• �s� i r Y r ti. ....ter:♦. .. a 21. C1 24 ATTACHMENT 1 Ordinance No. 1391 (2001 aeries) Page 22 of 28 a. A construction schedule;describing type and pWeinenfvf construd#ion;detail phases of cohstructioa,and include rttap(s)corielatedio ft..pbases of constructibn.:'Map(s)shill' . include detail on the location,length,depth, and internal diameter of any planned"pipelines: b. Copies of any agreements with utility companies for the use of any facilities. . including,but not limited to,poles,lines and conduit. c. .A description of plans for emergency equipment and personnel euabling the transferee to meet the.emergency equipment personnel requiremodts id Article$]ierein d. Any:W6imation:uidioatiug.aS.:specifically.as:posgil a.. W.anypriddipal, nzaasger;or associataaf tttc.proposed transferee or.apat�etit entit�..of the proposed traasfcieelras pfeyiously been oris eurrentlj+: i. A partgto a crrminaI ptocaeding'jitivolving fwo};ties.-&inisdemeangx )- in v lhich any of the following offenses have been charged:fraud;etnbeWement,.Wc evasi4li;•. bribery;extortion,jury tampering,obstructionofjustice(or ddw'miseonduct affectiingpublie'oc.: : . ., judicial officers in the performance of their duties), falseJmisleading adyertisirig,:perjury; ai►ti#nutvioladorrs((state orfederal -violation Of enviro ental]aays or;egu]atxor or. ` •MofLl �l i1Y tQ4W1UtMt:an ��r1V�V Q• Y - - ii: ' JL to a.ci . proceedir'- oricerii g,lislii t}�fkr-:suy of'ttte: fallow. ing uirfairoranticairipeitivebusincss: ractice,:autiti%�stviolaticuis(stateorfet78ra1) ,' : including instances in which consent decrees.were"entered,,violations afseg0tylarvs ' federal),falselmisieading advertising,racketeer influences acid corrupt organizations;riolatYon of. . environmental laws or regulations,or contraband forfoitures; Subject to any penalty,crimina]or civil,involy]n9 failure to coimply.: with'the requirements of a pipeline.franchise; iv:. Involved in institutinglegal aotionagarnst:its f ticluSing':authonties; y.:'irivalved'in'revocadbn/non:Tenetya of iii j othgi franchise; e_ :Any oth$r details,'state'rnents,'anfarmation or,references pertioent-,ta the,'subject atter -of.,. : .. rrsof sach application which stiall be required or irquested by,the city or by ady.proyi�zonof.'.: E.An express and unconditional written acceptance of theteri' s and condi.0 of'* this Franchise Ordinance,in its most durrent form,as a condition to the transfer, G. . Afeeslia]l -be spbrhittedwith•the'appEicahorrsfor.tb City's.consent:tatiiansferbr;: ''':- cliange of uonttol. 1:: Whpre the:City's cdhswt tOsa tr' for.oi;a clianj,e:tiP cont ol•of:tl is'd ciiiSe: : does;.riot'resuifii ib'o.mod ficatian of tk%s fraiichise.:by.:adopt AMP ih 'Qtilivanae fee for:each a` Iic tion s1ia11 be a9 set foYtli.in tfietitys:fee ordi frauclus. 2 :Whereahe City's.corisent to:afransfer or:ac]i&gge:r. .... itroY:of results in the moditication;of this.ffisuclusc.by adoption of ari'amentting or3inangc,thi$'fe$'shaIl ::_. be as set foitfi in the.City's fee ordraa'ace: • 4 riiit,t�ihnra%� i• f -:1 ils Qv ali a tri"' t'" o. e;` c' ts' be a; "n''fio loo' ancllrr dli n'. . .. . :. : ..... Ir mu . u%a ,reed. a a _ #s, p.. -y=.fixe Ci .gip.. .3�..�.. �P. .p. �; •Y � �..'.: ..�. .�: Ce5 "0 6 ri ':the` w.(., ts. rC es ` e.o :F.. sr.. .1 caii #s�. e •�.orasezt tb:�.°crams i�au'>.. ��iiritcdi` .g..�. .•�. - thrsfranc se :5 bco is incjud' iec stin`urre3: hi. e,. ' w s. .:�y "'e°ih.. _4 gr:liil iig co}fsilMari#s;#s evaluating tiie applicabotis:°'$tictaosts.;sliali ti :paid'b}+tke app]zeaiits;pritY:#t> a1tiscltioii of rite redustby City Pablic WoikS beparfinent,'or the C14 25 ATTACHMENT 1 EXHIBIT Ordinance No. 1391 (26d eries) Page 23 of 28 D. Within thirty(30)days of the effective date of the City's approval of the transfer or change of control,or within thirty(30)days of the date of the close of the transfer or change of . control,the Grantee shall file with the.City Public Works Department:(1)a.certifed copy of each duly executed instrument of such a transfer or change in control;and(2):the sitbmittal'of 4 Enid accounting and report of all fees due raider this&attcltise: The;propose d transferee sltall be responsible fdr any underpayment,:and shall be entitled to a credit for any dverpayrrient V19,ri- ninety(90)days of the closing of the transfer or change of controt,the Grantee shall submit financial.statements,audited and certified•by an independent certified.public aceouritani,. showing the condition of the franchise as of flee closing. If such duly executed' instmineiits are not.filed with the City Public Works'Department by the deadlines iinposed in this:Ariielii:or..if 'tete-fii ml documents are different'&orn the.prelithinary documents;the City,t?ulioc Works .. Depaz#ment may inform the prpposed tiansferge that the tiapafer,or;cbange 3d;cori T is riot deedied to lie in force and effect: The City.Public Wdrlis•Depfir1melit may.tlieri:adri itiistcatiVe y. ; deteintiine that this.fuchise is forfeited and the.City:Co�r oil':may,,witliaatnotioea by:vr ianpp.. :.:. tepeal.this franchise E. As a conditibii td thegranting of consent.to such A transferor change.iii iiotitroi:the' City Council tray impose such.additional ternis and conditions 4PO this frinchise.arirl ilpoh proposed transferee as are.in the publid interest. Such gdditiistial tetttis and coniltbn5:sfial]`be unppsed by 4rdtnance. Nothing lterein:cbntacrted shall be cptietrued:to gim fG ftee:#heligjitta .,': transfer nr.cl;ange control of this:fxanchise:of any jiart tltslreofi•axdept iii the itiangefi aforesaid This Artiole 17 applies to.anjr transfer of this franchise;gr,af any.chat}SdAri cantrol`of tlris . franchise,whethe:by'operation.of.lavw,by vokunt&ry.aof of Oraritee;of otherwise,, ARTICLE IS - WAIVER O�B1;tEACH .. :No w'aives.of the breach'o.'f ii y,o f tTte coveii lits;agr Intents;•tesfrrctioris;at,cond)ti4as of .`. this franchise byihe.Ctty shrill be construed to be,a waivero fany:sjicee4ngtiead oft ie same orof. s',f ofl►er..covenan agieerrseitts;cestcictions ox ortditiott$; nchUoi-,-No deisyor�iitls$i6h -. _ 'of the'City in exerdtaitig the.righ 'power ortcom6 y:horemprovid0drix:the eveiix-'6f4d be construed as a wa&erihei, o: of acquiesceiice t'ei m-not lidll the acceptapce of ariy:.:;: payments oracle in a.anatmeroi.at a t rrie othor tltatt is Fierein:provided be.consirited as..a wk ivor•)of or variatiori.ip any of fhe tetrns: his:fiatichise:.: .:: :- , DF4FAIIr - A. . .: . ..: .. . i ht..he event xhat.t `a"riaeescriice;..;.:,a f�y oft�te�ertn eov and can t oris here : ai 've enants - dt.t.. m.:(4e gt, vs+nrtteii xRtxce.i4'the i rant e:dfsu air t yc tf<..,ed.ma#i .In.the:weztttl4hc;f�t�rttecdoes:no#,tluueaeytfi �srbilc:neobss. stfcli$ fatiltt*rttturifve uless:da's art :s c lea r> `e ar > ' r .?a.ep . .B>`osetitsiiL '4i:i . ..r:. ' :.4 +..J:. Ii tl .ad ' I io en Coni Vit, eolaretlls 'aiihse ` e`edix a 14 Ab fi $ y... n, va :tib cc.; p. �' fl. : thereofto the G t wliec a ;th frat30bis e.?:": ; 23 C1 6 - ATTACHMENT-1 EXH181T Ordinance No. 1391 (20014Peries) . Page 24 of 28 hereunder shall terminate and the Grantee shall execute an instrument of surrender ,and.deliver, - the same to the City. if the City Council declares this franchise forfeited,it may thereupon and thereafter exclude the Grantee from further occupancy or use of all City roads and streets suthoiizad'under this franchise. A forfeiture of said franchise shall not of itself opetate trelease any bond riled for said franchise, Upon declaring a franchise farfeited;the'Chy Council-'* ay.. elect to take and accept any,bond as liquidated,damages therefore orgursue any oavr.legal 'remedy for-any damage;loss or injurysu &red:by the City as g resiih of such breach or both.:- . ' After forfeiture,any bond shall remain in M.force.And Act'for•a period of one(1)year ni#Iess exonerated by the aty'Cocincil. No bond'diall be eionerafed iudesi aitlease is'oiitaihod£roto' : the City Public Works Department:arid is filed Mth the City Clerk. The.release shall elate', �vhetlier.all excavations have been back filled,all obstructions removed,.and whether the substratum or surface of City streets occupied or used Have beenplaced in good and serviceable.' condition. A release shall not constitute a',�iaiver of any:rlght;or.remedy which the City of Safi Luis:dbispo•may terve againstthe;Cranteb arany person;faiin:or edrpotgtioa:for ariy dsinage; lossorjnjuryspnredbythe.Cifyasazesulfgfsny'pvbrkor;acu ity';pdel, ieii'bx e;Giari{eoxa:. ` :the eRe�C1S�0�i}t1S t�anchi¢e : ,• ' $:.No provision herein iiiade forthb-purpose.of sectirit►$the eiifaicemei>t ofthe.ter3ns.` arld conditions phise shall be.deemed an'exclusive remedy;or.tb afford the eicciiipipe. .. `procedure,for the enfgrcement of said terms and conditions,bui tlie:reinodies and procedure herein provided,inaddition to those provided bylaw shallbe deemed.to Wcumulative: ARTICLE 24. = SCOPE OF RESERS?ATION... .: Nothing.herein contained shall ever be constied so as to exempt the Grantee'from compliance with all ordinances.of the City now in effect or which may be hereafter adopted..... which are not inconsistent with the tertns:6f.-his franchise: The emimeration herein d oioitzo` lights reserved shall not be cunstnied as.exctiis ve.or as timip$-the general reservstion;hereitt iriade:.or asaaiituigsnieh.rights as.thts City may<pow arlterepAor.,have MU'". • CL•3 21: Any notice required:.to'be.:given unde;r:the terins:oftlnis frarichise;.tiie matiser ofs' ;`: `' which is not speci#icaily'prbvided,.for,niay be;served,at folio va:; e' 7� ` �on:th by.{i�_/ t1Fe_•tai'/��)�'Cderk ��:et'�o,�':11•��aiC� 'fT�]�{�{TJceS"iii�:a;:�NHfi' <t_i `c'to'ti e, _ erk of the:Cit of Sari 3, s Oli""""9 Stiei' <S �jf �)� {� riit. ut;;)?:ufss�fbas�Q;:./wA• 4 1'y 1, Y �'Y ^'t`..I. � .t. . •..: LI'•: 'TIL, 7 v :'t. ntn SU' I40' •t c1i lice in thc,go ed`g rtes mai `sfa" .... ,. : . : �. nS:. hPo S@ice Cyo poo-.the Grantee,by addressnnig a vi>iitt,en.nQtice,to.iG.raitae idilresseo-ia• 'niorii� . 'lie.<'::.':..' mpany,.c%Tosco'.Refining Cs iu?X, 3G45: atita:FaSpri:Rba.d—T Q:R 26 Springs;CA'906?t2-0626,.::Attn;Supervisor .RAW Adiri'aisttatiap oraach i5tii'et addtess' ` 24 C14 27 ATTA(`WP(n=AST 1 Ordinance No. 1391 (200, eries) Wage 25 of 28 .from time,to time be furnished in writing by one party to.the other and depositing said notice m' the United States mail,postage prepaid. When service,of any-such notice is made by mail,the time of such notice shall begin with and run from the date of the deposit of same in the United . States snail. ARTICLE 22 SUCCESSORS The terms herein shall inure to the tier' ft ofand shaltbind,.as'the case may. the.: . eticde$sors and assigns of the parties•hereto, subject;however,28.the provisions ofATH ' AitTICi:E 23:. A,CGEIPTA,NCE:OF FRANCAISE A. This franchise is granted and shall be held and enjoyed only upoxt the terms and conditions"herem contained. By accepting this.grant of fiwi rise;Ghintee shall agree to be bound-by each ani all of the requirements of'ktiele X;:Seotions IOUi,through 1007-of 6e-Sih. , Luis Ob'islto City Cater. B:':Graritee shall-within ten(10j days afl %lie'p"ass2ga attltis,ft@nohise OCditi ; :file' with the City Clerk an express and unconditional written lettez oifaodrptance:of,grid:cdnsesrt to;:: the terms and conditions of this frnan anchise'Ordice;in its ct vcht.version;and asids*e'quehty. . amended,pursuant to San Luis Obispo City Charter*,Article X,"Section 1004. . C: 'The parent.entity,'br entities,if any,c Grantee;shall file a'.1etEer with tihe City;. ciinctirrentwith.Csrantee'sletterofacceptance,which'gt tees.the:pezfartriatitreof-cacb:and ev tot,covenant and;coirdition irn osed.on Granted, . pr}'' p hise..Girtliiiattce.: :• 'D. Grantees letter of acceptance,shall be Signe.d by-two(2);duly anthdrized':: ::.; representatives of Grantee;whose signatures shall be achOivledged by'a nbtaiy„ rid shad'be; accompapied by the performance bond and evidence of insurance required`by_this franchise Ordinance.. ARTICLE e'tinre:'�ttiitliiri:w '' h. ee his Grapt, °ohligi fes#tie t r Tier.;p.co striict ct: s 'ta op'tirate'repaii;;reiiew;a vige:tfie s CofM .?etrigve'� 'eTirtlesbi?otli�ritYi 't6tieinent�$hskkilie=- extended.for.a.pefiod oftimo'equal in duiati.oi .to;:and. oiriiitz ce'iii.the' earitir issliall`l'e,'"';.: ex cued on account.of;'and•for;:and:during the peiigii`'of my 049 asuseii strikes;.lookouts;:war,threats of war,irisut,m,tion; nyasioti„adts'_af Galli csla hit es:a!iolerrlt '-,gtidoi of the eleitteitts;: `action or late+n o w Bre, heti 1 any BoxeaurlentaLege>ray:lav�+ot`;orii�iice _Qossi o pmgFnaoo"i= tlieCr►1? .....,oe& � ,t �c -7: f •l 25 ATTACHNEENT I Ordinance-No. 1391 (200Ienes) Page 26 of 28 ARTICLE-25 LIQUIDATED DAMAGES:` ' A.By aceeptu*of this franchise;Grantee understands arid acknowledges that failure to . tirrrely,comply with any performance requiremf w stipulated in this franchise'Qrdina ,C :­ft result in damages to the City,and that it is and willbe impraetW to determine the actual amount of such damage in:the event of delay or nonperformance. Each of the amounts set forth below has been set in recognition of the difficulty of affixing actuai damages arising from broads of these time of performance requirements,..Eich.6f..said,amounts.constitutes"s:ieasonabie sstiir�ate of t#iese daatages: This does mot lirriit'tlle iiglits atkd`�naedies :City fdr damages,ether than tiie tiri?ely ed#1iagce vvittt peFfoistisiioe.requliieri ents as described iiY this section::'The:tig�iid�ted:dariiaiges.set forth:Getovti.s7ialt b :targeable to the'bott1g13�r:of: . . : oredit:ars'ecunyi hind provided for inAcficle 1�1;sapia,stoirltl Gtanfee nq€ aice pyrueht. :. witliir#ttnrty.{30}days"of vcrritten no 6e by certifred mail by.tliB City that the fotIovy�ing anlogiits arp clue fox the fnllodvipg corrcerns: 1:,Failure tb.provide data,documents,:or repoits:withiu teri.(14)biisiixesg tlarys:. . after receiprof vritteii regitest lzY tie.City;l y certified inat.-;or:suC}r,Ioagaolne:as;maylig :specified ur swd.rgquest;-Two�I*Aredrift'y Atillars:($2$'O OUB iii fa�eaa)r clay;:ar: 1?� Y Y'` p , th"ereoftliat.eacfiviolation:contityues. '..: . ' . 2, Failure to provide to the City within ten(10}business.days aAer rem,t of "written request by thg.City,by*ified mail, current evidence bf insurance.and bonciirig:Two Hundred Fifty Dollars($250.09)peer day for each'day;or part.thereot that';each noncotnpliaace .' continues. ::Ndthirig.in--tlris Section shall preclude rnuriediate fermi ration or suspeusiori-Oft frahise as provided for'urtder.Azticle ;supra.. :3;;i;ailtire:by—Qantee t6-imely re toie;pnbtic r YYvat propet`ty afar'. :-,P. Orr iianoe of work,and following'.Grantee's reoeipt`of'vrfitten:regd st 1iX&e`City.to'du:so`.". tit#ii»:ten.(l:Ojbtisintss-d ysthereaf*bycertifiedinailr T" 11iiiidxeilpify olTars;($25i3A0�..:: petlay'orpartiltereof;that each'noii-compliance.continues,..Airyffnes:gaid:puaaiit°zdthtis::' Subsection 3'shall be paid solely to the Street Fund of Op City ri6lic Works Department:!. Dep:ait3ri " eteftbies-fttoirfitee.is`lialii B:". £:ttie Gi Public Woks. eri 'd tY. :I l quzd ted daina ilre P'dbh6 arks D' .. ea :City . 1 �!:. eliaztmen>s:slrallj�,s o'::Grarifee• cfi��riaii tis??rte{rngtice0 #do4tioij;tojc Fgd iq.0 dste :•da3t. est: I.xgtrtd�ed detzi �otrife as of tliz date o#`tf�e wntfetl notiC�aitd�as set:o "l , . � . ;..; � J ," , :i'f}r. p�&td notco::;'The:,i�E,ice:�ihliaet iveirantee': rhe: ib q � ri�lsle�tiirie ir►:vult 8 ,: •fees' l~ _ .Gra` lime t1i, St1at ,t. ,e. i o- alsan":n''tr _ -,�.. 8���."->aPp.. uh�i�s; .. :... ..::..: ttY.lr�rted.riupl,':yrrthlntsvetit 10 �,y'safterrss q . :. .•,:..., ...,'.-::'�y.:�. ---.:.. .� . _....:. _5'(.:�;.�` .,..,.; alio:�it . ,... arhetzt;TheG`iub)icWprk'' erit''s ali do :a .fi, id' cfirr 'v�:� .atter:rec oOki On' rix .). .Y.; caps l�" h "G3t ;P: rd i3zs: r.. 26. . . C14 9 ATTACHMENT 1 •� � Meir r • . , Ordinance No. 1391 (200 tries) Page 27 of 28 D, If Grantee does not appeal the notice within said twenty(20)day period;Grantee shill- pay the amount(;)of liquidated damages as stated in the notice. If payment is-not paid as provided for in this Article,the City may'withdraw against the bond provided for in Article'14 herein. A.RTICI E.26. ATTORNEYS'YEES In the event'the City or Grantee brings legal action,against the.'othex or.agairo Grantee's':, bonding companies,or insurance carriers-to bompcl.perforrnarice oi;onto recover for breach of any covenant;agreement or condition coatained.in this franchise,or far daritages,the'prevailing . party shall be entitled to,.in addition to any'oth x relief obtained,such reasonable attorneys'fees as are.&ed by.-the judge of the cqurt in NA-n0hsnch agtiop:is'brotight:: : . . . AMCLE C0KDt P.A1UOIV . . Notwithstanding anything to the pontrary contained lcerein and in:acooXdance with.'San Luis Obispo City Charter Article X,Seotioiz 1.0051 this Ordinance shall.not in any:way:affecf the light of the City toacquire tits property o f.tlie.Cmentee thereof elther'by.purchase at thrangti exercise of the.right of erdinent domain,and npthIng liereut cgntaa ite�c}Ghali contract av�y.or to;niadify or to abric3g�.either fora fettn:or in:porpetUil3v itis.City's-n of eminent.domainwitlirespecf'toanyptiblic..uti_lity. The-Ci ::. :. . property-of-such titility at an agreed'price. In fixing.the.priae:te;be paid b j+flie:.Citji:fot.;�ny`'.' utiliiy,'no allowance.shall be made Ibr franchise value(other' paid to City at the time of the fraiic#tise.ac(luisitian), goodwill;going conoeiYi,eattiirig power,increased ,cost of reproduction,severance damage,or increased value o f rigbt-of--way: SECTION 2: Ifany section,$6bse6tion,sentence clause,.phra e.or partian.of this 1 tgdinance:is for any ieasgr held tti'be iAvalid of untifinstit+itigual liy tha,ilgcis as c f iy catirt of ccjiripeiept jtriisdicdon,such tleci'sioi# t►211:ri¢t affect thevilffity.Of. ieinainii g=portidiis'.W.1 tis:.. . . Ordinance.- The City:CfluneIl'ofrheCityofSan tutst bispohdares ereby" thattheywould haveadbp dthisardinaaoe.arid.each-sentence,clause,.pf6seor.i5ortigritiieteoftrrespechveof;. .. the fac'tthat-aii�+.orte or snore secfions;•sabscoons,senteueesy clauses,:P es'oi portions be declaie4 iiiv.aGd or unconstiiutlgnat SECTION 3 ::'fiiis oidinaiice;shall.tak `effeot?aid be irii:fnll' r.Ce: d effect fliirt. . 3f1 :' d yo �,.: 3�..ft• its assn 'ar"id�efo e. e�e anon``{ .. ... 154.44 : .,� of diiianoe It' b i a p .;sed.opce`vitti;tttp es of t2ie' erriti of, t4 Ci g rp :agaiiis , e or3'i 'ce.ih a neer.., o etie:. .cfi -' th .. t3'.:?( siiir3cl:a%a-', Lta�s„0'bi¢ q;StaXe.ofGaliforn}s>;, ';';•.: _ :.i..:.,. _ SE. CT ION 4 04 . A s •sts. a of�th'is�rdinatic roved li'"th•'r✓i ”A E�iris' --.... .3!?i,f?.. ..���t?,. •.ty. t.o,: ..y;;coge;#ter; with the;ayes and noes shall I;e:pRlil ghed ortce.an'fiill at.leastWve: ,, .d}{�s` nl'or ft :its;fi' PSA,in aaewspajier:puliiii :anilfatfliesa>rie:trfiii;Tzal�, 27. C14- 0 ATTACHMENT 1 Ordinance No 1391(200�erids,) Page 28 of 28 :erect at the expiration of thlrty(30)days after its said fii►alpassage.' A copy:of the full final text of this ordinance shall be on file in the Office of the qty Clerk an 26 att .&6 daft follow g: '. the introduction and paswage ta:Print and shall be:ayailable W Boy interested member of the. , . public. -INTRODUCED on the 19th day of Juno 2001 AND 1•r ALLY ADOPTED bythm Council of the City of San Luis Obispo on the 10.'day of ha 2001,on the foll*ing'rollcall.- Vote: AYES: councilIVlembers 1CRarx,-Mulhollaxid,Sch rartx,Vice:iv�syi�Y)3war?sttd Mayor Settle z. NOES: None' ABSENT-. Non .. .Non APPROVF,D: . Ah _;. Attotiiey. Y,• • . .. ..:':.,..,: ... '.:•. ' �: .' ... . . .::., is n, ( iw+ : C14. 31 ATTACHMENT 2 RESOLUTION NO. 9881 (2007 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DECLARING THE CITY'S INTENT TO APPROVE THE TRANSFER OF FRANCHISE ORDINANCE 1391 TO OPERATE AND MAINTAIN PIPELINES FOR THE TRANSPORTATION OF OIL AND OTHER SPECIFIED MATERIALS IN THE CITY OF SAN LUIS OBISPO FROM UNION PIPELINE COMPANY ("UNOCAP"),A CALIFORNIA CORPORATION, TO CONOCOPHILLIPS PIPE LINE COMPANY, A DELAWARE CORPORATION,AND SETTING A PUBLIC HEARING FOR APRIL 3,2007 WHEREAS, the City of San Luis Obispo adopted Ordinance No. 1391 on July 10, 2001, granting a franchise to Union Pipeline Company ("Unocap"), a California Corporation for a term of. 10 years for the transportation and distribution of oil and other specified materials in the City of San Luis Obispo; and WHEREAS, effective February 1, 2005, Unocap merged into ConocoPhillips Pipe Line Company ("CPPLC"), a wholly owned subsidiary of ConocoPhillips Company, and is no longer a legal entity; and WHEREAS, CPPLC is currently operating pipelines for the transportation of oil and other specified materials within the City of San Luis Obispo and expressly agrees to assume the rights and obligations of Unocap under Franchise Ordinance 1391; and WHEREAS, the agreement approved by Ordinance 1391 contains the following key provisions: Purpose: To maintain and operate pipelines for the transportation of oil and hydrocarbons within the City of San Luis Obispo. Type: Non-exclusive Term: 10 years Fees: Annual franchise fee to the City in accordance with Public Utilities Code Section 6231.5 (A fee ranging from $0.088.to $0.660 per foot based on. pipeline diameter) Bond: One million dollars faithful performance bond Insurance: Ten million dollars liability insurance Indemnity: CPPLC to indemnify the City for any and all damages to persons or property arising out of operations under the franchise. Includes indemnity for joint acts with the City. In addition, the Franchise covers all other subjects commonly found in such franchise documents such as: the type of maintenance and operation of the pipelines, permitted transfers of the franchise, requirements for moving pipelines to accommodate public R qQ4-32 arracHMENT 2 Resolution No. 9881 (2007 Series) Page 2 works and utilities, encroachment permits, and pipeline abandonment and removal requirements. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Pursuant to Section 1002 of the .Charter of the City of San Luis Obispo and Article 17 of Franchise Ordinance 1391, the City Council hereby declares its intention to consent to the transfer of Franchise Ordinance number 1391 from Unocap to Conoco Phillips Pipe Line Company. SECTION 2. A public hearing will be held on April 3, 2007, at 7:00 p.m. in the Council Chambers of City Hall, located at 990 Palm Street, San Luis Obispo, California. Any persons having an . interest in the franchise transfer or any objection to the approval of the franchise transfer may appear before the Council and be heard thereon. SECTION 3. The City Clerk shall publish this resolution at least once within fifteen (15) days of its passage in a newspaper in the City of San Luis Obispo. Upon motion of Council Member Carter, seconded by Council Member Settle, and on the following roll call vote: AYES: Council Members Brown, Carter and Settle, Vice Mayor Mulholland and Mayor Romero NOES: None ABSENT: None The foregoing resolution was adopted this 6`h day of March 2007. Mayor David F. Romero ATTEST: Audrey Hoo r City Clerk APPROVED AS TO FORM: Jonattlan P. Lowell City Attorney C 14-33 REC;E�VEE ATTACHMENT 3 FEB 17 :2011 SLO CITY ATTORNEY — Mona D.Hebert,SR/WA Property Tax,Real Estate,Right of Way&Claims 3900 Kilroy Airport Way,Suite 210 CoM ocoP-hIIIIps Phone: 562 longee562-2990090806 -1519 Email address: Mona.hebert@conocophillips.com February 11, 2011 Mr. Jonathan Lowell_ City Attorney City of San Luis Obispo 990 Palm Street San Luis Obispo, California 93401-3249 Dear Mr. Lowell: Re: ConocoPhillips Pipe Line Company Franchise CONOCOPHILLIPS PIPE LINE COMPANY, a Delaware corporation, with its principal place of business located at 600 North Dairy Ashford, Houston, Texas 77079, hereby makes application for the non-exclusive right, privilege and franchise from time to time to construct, erect, maintain, operate, repair, renew, abandon, and change the size of and remove pipelines, not to exceed twelve(12) inches nominal internal diameter, for the transportation of oil, products thereof, hydrocarbon gases and other gas necessary for the operation and maintenance of the pipelines, water and.mixtures thereof, together with all manholes, valves, service connections and appurtenances necessary or convenient for the maintenance and operation of said pipelines, including any facilities necessary for cathodic protection of said pipelines, for the term of ten(10) years from and after the date upon which such Franchise shall become effective, in, under, along and across those certain public streets in the City of San Luis Obispo in which applicant now maintains and operates pipelines, and in all those other streets, alleys, and other public places in the City of San Luis Obispo in which applicant from time to time shall make application for permission to place additional pipelines, subject, however, to the requirements of acquiring the necessary excavation permit The existing pipelines are located as shown on the attached map marked Exhibit A, and are presently maintained under City of San Luis Obispo Franchise Ordinance No. 1504 dated April 17, 2007, Resolution No. 9881 adopted March 6, 2007 (Copies enclosed). This Ordinance expires on July 9, 2011. It is respectfully requested that you advertise the fact of this application, together with a statement that it is proposed to grant the desired franchise in the manner and time prescribed by law, and that after the new franchise shall have become effective, the franchise granted by Franchise Ordinance No. 1504 dated April 17, 2007, Resolution No. 9881 adopted March 6, 2007 shall terminate. If we can provide you with additional information concerning this application, please call Ms. Mona Hebert, Senior Right of Way Agent, at(562)290-1519. Thank you for your favorable consideration of our request. Sincerely, Mona D. Hebert, — 11,/WA-Property Tax, Real Estate, Right of Way&Claims Enclosures MDH C14-34 ATTACHMENT 3 y� 'US:pp4 101 0' SHEET 4 09m F°: ' SHEET 3 m 11 r: SHEET 2 SHEET 1 1 � 0 INDEX TO SAN LUIS OBISPO U- FRANCHISE MAPS 'MTALS - QRDIN-ANCE - No_ . 8" 18812' � � 1 IInPS 1' .Lrn�C14 a5 12" 550' RW08&226 IE 1 ATTACHMENT 3 O+ TANK FARM ROAD .PRADERAS DR. /i 0 I� silo C3 CHUPEROSA DR. ` HI-3 - Z N LOS VERDES DR. % z 0 Z3 V OQ SUBURBAN ROAD �y 0 550'— 12" PRODUCTS Jk' j �V ------- - ---- D2A335 :v DATE L DRAWN FG111 L CITY OF:SANLUIS OBISPO FRANCHISE MAP APPE scALE 1'= a0G' ORDINANCE NO. DATE 4LI3198 RWos�22- 14 6 pr1eQs � #-,U n2. C.a1�Po�� 4 SHEETS I I r ACHMENT 3 Il 1 SHEET 3 HIGH ST. �1 MAT LINE ,1 r If I1 1 y r r Jy / v I / BRANCH ST. SOUTH ST r/o SOUTH ST. r ,y y y I p r � tV�1J Cmc. r 1 I 1 a 1 r I c _ I BRIDGE ST. lilt Po°� 3245'— 8' LINE #400 COAST VALLEY TRUNK rr No. 2, rl 11 J r, if r iii r , 1if,it rr 3 3245'— 8' LINE #400 COAST VALLEY TRUNK No. 1 D2A174, D2A340 R EV DRAWN FGIII TY OF 'SAN LUIS OBISPO FRANCHISE MAP APPD. _ SCALE I'= 400' ORDINANCE NO. DATE 4/13/98 o:�1r1 t . Lime, C-ompieN t��`' �� � a SHEETS SHEET 2 ATTACHMENT 3 BROAD ST: (HWY. 227) 2717'— S' UNE #400 COAST VALLEY TRUNK No. 1 � II NIPOMO ST. - 2702'.___ B" UNE #400. COAST VALLEY TRUNK No. 2 BEACH ST CARMEL. ST, F N U N � f � a c N - ARCHER- ST. z 0 U i 4 .WALKER' ST. V ,I s� AcG CIV D2A340, D2A270 E � DATE - � � - _ .. DRAWN FCIII- CITY OF SAN LUIS OBISPO FRANCHISE MAP SCALE -- SCALE i'= 400' u.. - ORDINANCE NO. DATE 4/13/96 - R Rtr�t©Q� co 6 2'2.(0 - C14 38 "\��n 4 SHEETS SHEET 3 0 l� ATTACHMENT 3 SOUTHERN PACIFlC RAILWAY -- �_, JOHNSON ST. T. — -- — -- - TORO 3450'— 8" LINE #400 _ COAST VALLEY TRUNK No. 2 SANTA ROSA ST. cnF OSOS ST. 3453'— 8" LINE #400 — COAST VALLEY TRUNK :10 No. 1 m _1 5 m - --- MORRO ST. N CHORRO ST. 0 E:a GARDEN ST.. - BROAD sr. (HWY. 227> D2A270, D2A339 tEV DATE - DRAWN FGI11 CITY OF SAN LUIS OBISPO FRANCHISE MAP APPD SCALE t'= 400' ORDINANCE NO. DATE 4/13/98 •�WS Fle. Line mp ea 4 SHEETS SHEEP 4 M4 California Public Utilities Code Section 6231.5 (a) An applicant for a franchise to build and operate a pipeline system transmitting oil or products thereof shall file with . the legislative body of the municipality in which the franchise is desired an application stating all of the following: (1) The name of the applicant. (2) The purpose and term, whether definite or indeterminate, for which the franchise is desired. (3) That the applicant, if granted the franchise, permit, license, or other privilege, will pay to the municipality an annual fee computed as follows: The length of pipe expressed in feet located within the franchised area shall be multiplied by the applicable base rate, as adjusted pursuant to subdivision (d) , in accordance with the following schedule: Pipe size (internal Base rate per diameter in inches) lineal foot 0-4. . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.088 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.132 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.176 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0..220 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.264 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.308 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.352 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.396 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.440 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.484 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.528 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0..572. 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.616 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.660 For pipelines with an internal diameter not listed above, the fees shall be in the same proportion to the fees of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches. (b) The annual payment for each lineal foot of pipeline shall be computed and revised each calendar year as follows: (1) The applicable base rate shall be multiplied by the Consumer Price Index for the area, as published by the United States Department of Labor, Office of Information for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index for June 30, 1989, which is declared to be 100.0. Under no circumstances shall the multiplying factor be less than one. (2) If the United States Department of Labor, Office of Information discontinues the preparation or publication of a Consumer Price Index for the area, and if no translation table .prepared by the. Department of Labor .is available so as to make those statistics which are then available applicable to the index of June 30, 1989, the municipality shall prescribe a rate of payment which shall, in its judgment, vary from the rates specified in this section in C14-40 ATTACHMEW4 approximate proportion as commodity consumer prices then current vary from commodity consumer prices current in December 1988. On this point, the determination by the municipality shall be final and conclusive. (c) No fee paid to any municipality pursuant to a franchise, permit, license, or other privilege issued under an ordinance which is in effect on September 1, 1989, which exceeds the fee computed under this section shall be reduced. On or after January 1, 1990, a municipality may collect an additional amount which represents the percentage increase in the Consumer Price Index for the area during the preceding calendar year applied to that fee. The formula used in arriving at that fee shall be applicable to any replacement, modification, or extension of the pipeline. Upon expiration of a franchise, permit, license, or other privilege, the municipality may renew or extend the franchise, permit, license, or other privilege, using the local formula contained in an ordinance which is in effect on September 1, 1989. However, the fee shall not exceed the greater of the fee actually paid on September 1, 1989, or the fee computed pursuant to this section. (d) Notwithstanding any other provision of law, until January 1, 1990, a municipality which is involved in eminent domain proceedings in which a court order for possession has been issued relating to an easement for a pipeline system transmitting oil or products thereof may adopt an ordinance setting its fee without following the provisions of this section. Upon expiration of the ordinance, the municipality may renew or extend the franchise, license, permit, or other privilege, utilizing the local formula in effect on January 1, 1990, or the fee computed pursuant to this section, whichever is greater. (e) Notwithstanding any other provision of this section, if the application is for a franchise for a nonpublic utility pipeline for industrial gas or oil or products thereof, the application shall state that the applicant, if granted the franchise, will pay to the municipality during the life of the franchise either of the following: (1) A specified percentage agreed to by the applicant and the municipality of the gross annual receipts of the applicant arising from the use, operation, or possession of the franchise. (2) An annual franchise fee in an amount agreed to by the applicant and the municipality, or an annual franchise fee computed by multiplying the sum of one-half of the nominal internal diameter of the pipe, expressed in inches, by the number of lineal feet of the pipe within the public streets, ways, alleys, or other public places within the municipality. (f) Any nonpublic utility pipeline system transmitting oil or products thereof covered by subdivision (e) on December 31, 1989, that converts to public utility status shall continue to pay the fee established pursuant to subdivision (e) for the remaining term of its franchise, license, permit, or other privilege. Upon expiration of its franchise, license, permit, or other privilege, a nonpublic utility pipeline system transmitting oil or products thereof that has converted or seeks to convert to public utility status shall establish to the satisfaction of the franchising authority all of the following: (1) Its property is dedicated to the service of the public. (2) Its rates for transportation are established pursuant to tariffs filed with the Public Utilities Commission. C14-41 AITACHMEM°4 (3) Its accounts and records are established pursuant to rules and regulations adopted by the commission. (4) It has filed an appropriate annual report with the commission. (5) Its rates for transportation are just, reasonable, and nondiscriminatory, as evidenced either by an order of the commission approving those rates, or an application for approval of its rates that is pending with the commission. C14-42 ATTACHMENT RESOLUTION NO. (2011 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DECLARING THE CITY'S INTENT TO APPROVE A FRANCHISE ORDINANCE, SUPERSEDING ORDINANCE 1391 (2001 Series),TO OPERATE AND MAINTAIN PIPELINES FOR THE TRANSPORTATION OF OIL AND OTHER SPECIFIED MATERIALS IN THE CITY OF SAN LUIS OBISPO BY CONOCOPHILLIPS PIPE LINE COMPANY (CONOCO-PHILLIPS),A DELAWARE CORPORATION,AND SETTING A PUBLIC HEARING FOR JUNE 79 2011. WHEREAS, the City of San Luis Obispo adopted Ordinance No. 1391 on July 10, 2001, granting a franchise to Union Pipeline Company, a California Corporation, for a term of 10 years for the transportation and distribution of oil and other specified materials in the City of San Luis Obispo; and WHEREAS, on April 17, 2007, the City Council adopted Ordinance No. 1504, transferring the franchise agreement from Union Pipeline Company to Conoco-Phillips; and WHEREAS, on February 11, 2011, Conoco-Phillips applied to the City of San Luis Obispo for a new franchise agreement to replace the existing franchise agreement approved by Ordinance No. 1391, and set to expire on July 9, 2011; and WHEREAS, Conoco-Phillips is currently operating pipelines for the transportation of oil and other specified materials within the City of San Luis Obispo; and WHEREAS, the new franchise agreement will include the following key provisions: Purpose: To maintain and operate pipelines for the transportation of oil and hydrocarbons within the City of San Luis Obispo. Type: Non-exclusive Term: 10 Years Fees: Annual franchise fee to the City in accordance with Public Utilities Code Section 6231.5 (a fee. ranging from $0.088 to $0.660, adjusted per the Consumer Price Index, per lineal foot based on pipeline diameter) Bond: One million dollars faithful performance bond Insurance: Ten million dollars liability insurance Indemnity: Conoco-Phillips to indemnify the City for any and all damages to personas or property arising out of operations under the franchise. Includes indemnity for joint acts with the City. R C14-43 Resolution No. (2011 Series) ATTACHMENTS- Page TTACHMENTSPage 2 In addition, the franchise covers all other subjects commonly found in such franchise documents such as: the type of maintenance and operation of the pipelines, permitted transfers of the franchise, requirement for moving pipelines to accommodate public works and utilities, encroachment permits, and pipeline abandonment and removal requirements. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Pursuant to Section 1002 of the Charter of the City of San Luis Obispo, the City Council hereby declares its intention to consent to the granting of a franchise to maintain and operate pipelines for the transportation of oil and other specified materials within the City of San Luis Obispo to CONOCOPHILLIPS PIPE LINE COMPANY, a Delaware Corporation. SECTION 2. A public hearing will be held on June 7, 2011, at 7:00 PM in the Council Chambers of City Hall, located at 990 Palm Street, San Luis Obispo, California. The City Clerk shall publish this resolution within fifteen (15) days of its passage in a newspaper in the City of San Luis Obispo. Any persons having an interest in the franchise approval or any objection to the approval of the franchise may appear before the Council to be heard thereon. Upon motion of , seconded by and on the following vote: AYES`. NOES: ABSENT: The foregoing resolution was adopted this 3rd day of May 2011. Mayor Jan Marx ATTEST: Elaina Cano City Clerk C14-44 ATTACHMENT S Resolution No. (2011 Series) Page 3 APPROVED AS TO FORM: Christine Dietrick City Attorney C14-45