HomeMy WebLinkAbout07/05/1989, C-4 - TRANSFER OF OWNERSHIP OF UNOCAL PIPELINES MEETING DATE:
IIS I� ����I�I�Ii��IlUlll city of SWI .LUIS OBISPO Jul 5 Imo"'NU, 1989
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COUNCIL AGENDA REPORT
FROM: David F. Romero and William T. Hetland Prepared by: Hal Fones
Public Works Director Director of Utilities Utilities Engineer
SUBJECT: Transfer of ownership of Unocal Pipelines
RECOMMENDATION: Adopt resolution authorizing the City Administrative Officer to enter
into agreement to transfer ownership and approve easements.
BACKGROUND:
Union Oil Company is presently operating two petroleum transportation pipelines through
the City of San Luis Obispo. It is their plan to complete the replacement of those two
lines with newer pipe for the purpose of increased reliability and safety. Replacement
began last year at the southern city limit along the freeway, continued up Elks Lane,
Higuera Street and to the comer of Pismo and Carmel. This years replacement will
continue up Pismo along San Luis Drive and cross the freeway into Cuesta Park.
Most of the Union Oil pipelines are within city streets up to the point where they pass
under the SPRR rights-of-way. From that point north the pipelines were laid within
easements obtained by Union Oil from property owners. As the city street system (San Luis
Drive) was constructed in the rights-of-way granted to the city, Union Oil had its
easements transferred to lie within the new street right-of-way. These easement transfers
were carried out slightly before the streets were dedicated, therefore, maintaining Union
Oil's "prior rights" for use of the easements.
In the area in front of the high school, the pipeline is still on private property. As
part of the agreement, the city is allowing Union Oil to continue to have prior rights for
its new pipelines constructed in San Luis Drive. Prior rights identify the hierarchy of
the various entities that use a particular easement. The term prior rights means that the
easement has better rights than easements that followed. This means that if the city
wishes Union Oil to relocate its lines for some city purposes, the city must pay for the
relocation.
It is the desire of the Utilities Department to obtain the abandoned oil lines as a part
of a system to transport reclaimed water from the Wastewater Treatment Plant to various
points of use such as Cuesta Park, Mitchell Park, the freeway landscaping, and the high
school. Unocal would remain liable for any contamination which may have occured during
their ownership. The concept is in accordance with the Wastewater Management Plan -
Beneficial Use Options.
The two 8 inch steel pipelines are approximately 10,000 feet long.
FISCAL IMPACTS:
The steel lines will need some future maintenance at an undetermined amount. Constructing
similar facilities would cost nearly $500,000 in capital costs.
ALTERNATIVES:
1. Adopt resolution accepting improvements and easements and granting new easements.
(Recommendation)
2. Take no action.
G- L4
���� MY Of San tins OBISPO
COUNCIL AGENDA REPORT
page 2
CONSEQUENCE OF NOT TAKING THE RECOMMENDED ACTION:
Union Oil Company will reconstruct the two 8 inch pipelines along the existing easements
and remove the old pipelines. The City would incur approximately $500,000 in future costs
and considerable engineering time for construction of the reclaimed water distribution
system.
ACTION RECOMMENDED:
Adopt resolution authorizing the City Administrative Officer to enter into agreement to
transfer ownership and approve easements, subject to the approval of the City Attorney as
to form and sufficiency of agreement and supporting document.
Attachment - Resolution
Agreement available in City Clerk's Office for inspection
unocal/hal/p
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C - 4
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RE50Ii QN NO. (1989 Series)
A RESOIU QN OF Zig COUNCIL OF THE CITY_ OF
SAN IUIS OBISPO AUTHORIZING THE CITY
OFFICER TO ENTER INTO AGlMMU TO TRANSFER
AND APPROVE EASEMENTS
WHEREAS, Unocal Corporation wishes to abandon two existing
pipelines through the City of San Luis Obispo; and
WHEREAS, the City has previously adopted the concept of
wastewater reclamation; and
WHEREAS, the use of these two existing pipelines would benefit
the City in implementing a wastewater reclamation program;
NOW, THEREFORE, BE IT RESOLVED that the City Administrative
Officer is authorized to enter into an agreement to implement the
transfer of ownership of the pipelines and to authorize additional
easements for their replacement, subject to the approval of the City
Attorney as to form and sufficiency of agreement and supporting
documents.
On motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the following resolution was passed this day of 1989.
Mayor Ron Dunin
ATTEST:
City Clerk Pamela Voges
Resolution No. Series
Approved:
ity A nistrative Officer
City Atto ey
Finance Director
Public Works Director
Director of Utilities