HomeMy WebLinkAboutr10261conocophillipsfranchiseRESOLUTION NO . 10261 (2011 Series)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING THE CITY'S
INTENT TO APPROVE A FRANCHISE ORDINANCE, SUPERSEDING ORDINANC E
1391 (2001 Series), TO OPERATE AND MAINTAIN PIPELINES FOR TH E
TRANSPORTATION OF OIL AND OTHER SPECIFIED MATERIALS IN THE CIT Y
OF SAN LUIS OBISPO BY CONOCOPHILLIPS PIPE LINE COMPANY,A
DELAWARE CORPORATION, (CONOCOPHILLIPS) AND SETTING A PUBLI C
HEARING FOR JUNE 7,201 1
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 year s
for the transportation and distribution of oil and other specified materials in the City of San Lui s
Obispo ; and
WHEREAS,on April 17, 2007, the City Council adopted Ordinance No . 1504 ,
transferring the franchise agreement from Union Pipeline Company to ConocoPhillips ; and
WHEREAS,on February 11, 2011, ConocoPhillips applied to the City of San Lui s
Obispo for a new franchise agreement to replace the existing franchise agreement approved b y
Ordinance No . 1391, and set to expire on July 9, 2011 ; an d
WHEREAS,ConocoPhillips is currently operating pipelines for the transportation of oi l
and other specified materials within the City of San Luis Obispo ; an d
WHEREAS,the new franchise agreement will include the following key provisions :
Purpose :
To maintain and operate pipelines for the transportation of oil an d
hydrocarbons within the City of San Luis Obispo .
Type :
Non-exclusiv e
Term :
10 Year s
Fees : Annual franchise fee to the City in accordance with Public Utilitie s
Code Section 6231 .5 (a fee ranging from $0 .088 to $0 .660 ,
adjusted per the Consumer Price Index, per lineal foot based o n
pipeline diameter )
Bond :
One million dollars faithful performance bon d
Insurance :
Ten million dollars liability insuranc e
Indemnity : ConocoPhillips to indemnify the City for any and all damages t o
personas or property arising out of operations under the franchise .
Includes indemnity for joint acts with the City .
R 10261
Resolution No . 10261 (2011 Series )
Page 2
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, 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 Lui s
Obispo as follows :
SECTION 1 .Pursuant to Section 1002 of the Charter of the City of San Luis Obispo, th e
City Council hereby declares its intention to consent to the granting of a franchise to maintai n
and operate pipelines for the transportation of oil and other specified materials within the City o f
San Luis Obispo to CONOCOPHILLIPS PIPE LINE COMPANY, A DELAWAR E
CORPORATION .
SECTION 2 .A public hearing will be held on June 7, 2011, at 7 :00 PM in the Counci l
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 o f
San Luis Obispo . Any persons having an interest in the franchise approval or any objection to th e
approval of the franchise may appear before the Council to be heard thereon .
Upon motion of Vice Mayor Ashbaugh, seconded by Council Member Carpenter, and o n
the following vote :
AYES :
Council Members Carpenter, Carter and Smith, Vice Mayor Ashbaugh an d
Mayor Marx
NOES :
None
ABSENT : Non e
The foregoing resolution was adopted this 3rd day of May 2011 .
ATTEST :
Elaina Can o
City Clerk
. Christine Dietrick
City Attorney