HomeMy WebLinkAboutr10412citysintentapprovetransferoffranchiseord1569operate&maintainpipelinestransportationoil&materialsinslofrmconocophillipspipelinecotophillips66&settingphforjan2213RESOLUTION NO . 10412 (2012 Series )
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING THE CITY'S
INTENT TO APPROVE THE TRANSFER OF FRANCHISE ORDINANCE 1569 TO
OPERATE AND MAINTAIN PIPELINES FOR THE TRANSPORTATION OF OIL AN D
OTHER SPECIFIED MATERIALS IN THE CITY OF SAN LUIS OBISPO FRO M
CONOCOPHILLIPS PIPELINE COMPANY TO PHILLIPS 66 AND SETTING A
PUBLIC HEARING FOR JANUARY 22, 201 3
WHEREAS,the City of San Luis Obispo adopted Ordinance No . 1569 on October
18,2011 granting a franchise to ConocoPhillips Pipeline Company, a Delaware Corporation, fo r
a term of 10 years for the transportation and distribution of oil and other specified materials i n
the City of San Luis Obispo ; an d
WHEREAS,as a result of a company reorganization, Phillips 66 Company has assume d
some of ConocoPhillips Pipeline Company's properties, rights and obligations, including it s
pipeline operations in the City of San Luis Obispo and expressly agreed to assume the rights an d
obligations of ConocoPhillips Pipeline Company under Franchise Ordinance 1569 .
WHEREAS,the agreement approved by Ordinance 1569 contains the following ke y
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 (expiring October 17, 2021 )
Fees :Annual franchise fee to the City in accordance with Public Utilities Cod e
Section 6231 .5 (A fee ranging from $0 .088 to $0 .66 per foot based o n
pipeline diameter )
Bond :
One million dollars faithful performance bon d
Insurance :
Ten million dollars liability insuranc e
Indemnity :Franchisee to indemnify the City for any and all damages to persons o r
property arising out of operations under the franchise . Includes indemnit y
for joint acts with the City .
In addition, the Franchise covers all other subjects commonly found in such franchise document s
such as : the type of maintenance and operation of the pipelines, permitted transfers of th e
franchise, requirements for moving pipelines to accommodate public works and utilities ,
encroachment permits, and pipeline abandonment and removal requirements .
WHEREAS,in lieu of providing audited financial statements certified by an independen t
certified public accountant, which are unavailable due to Phillips 66 Company being a ne w
company, Phillips 66 Company has agreed to increase the amount of the faithful performanc e
bond from one million dollars to five million dollars .
R 10412
Resolution No . 10412 (2012 Series )
Page 2
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s
Obispo as follows :
SECTION 1 .Pursuant to Section 1002 of the Charter of the City of San Luis Obisp o
and Article 17 of Franchise Ordinance 1569,the City Council hereby declares its intention to
consent to the transfer of Franchise Ordinance number 1569 from ConocoPhillips Pipelin e
Company to Phillips 66 .
SECTION 2 . A public hearing will be held on January 22, 2013 at 6 :00 p .m . in th e
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 th e
franchise transfer may appear before the Council and be heard thereon . This date is not less than
twenty (20) or more than sixty (60)days after the passage of this resolution, in compliance wit h
Section 1002 of the City Charter .
SECTION 3. The City Clerk shall publish tnis resolution at least once within fiftee n
(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 Ashbaugh, an d
on the following roll call vote :
AYES :
Council Members Ashbaugh, Carpenter and Carter, Vice Mayor Smit h
and Mayor Marx
NOES :
Non e
ABSENT : Non e
The foregoing resolution was adopted this 4th day of December 2012 .
ATTEST :
Maeve Gri :s
kgcitirs City Clerk
tstine Dietric k
City Attorney