HomeMy WebLinkAboutR-11297 declaring the City’s intent to approve an Ordinance, superseding Ordinance 1564 (2011 Series), to grant a Franchise Agreement to Phillips 66 Pipeline LLCR 11297
RESOLUTION NO. 11297 (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, DECLARING THE CITY’S INTENT TO
APPROVE A FRANCHISE ORDINANCE, SUPERSEDING ORDINANCE
1564 (2011 SERIES), TO OPERATE AND MAINTAIN PIPELINES FOR
THE TRANSPORTATION OF OIL AND OTHER SPECIFIED MATERIALS
IN THE CITY OF SAN LUIS OBISPO BY PHILLIPS 66 PIPELINE LLC
AND SETTING A PUBLIC HEARING FOR FEBRUARY 15, 2022
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 June 21, 2011, the City of San Luis Obispo adopted Ordinance
No. 1564 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, On February 5, 2013 the City Council adopted Ordinance No. 1587
transferring the franchise from ConocoPhillips to Phillips 66 Pipeline LLC; and
WHEREAS, On June 24, 2021 Phillips 66 Pipeline LLC applied to the City of San
Luis Obispo for a new franchise agreement to replace the existing franchise agreement
approved by Ordinance No. 1564; and
WHEREAS, Phillips 66 Pipeline LLC 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: 3-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)
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Bond: One-million dollars faithful performance bond.
Insurance: Ten million dollars liability insurance
Indemnity: Phillips 66 Pipeline LLC to indemnify the City of any and all damages
to personas or property arising out of operations under the franchise.
Includes indemnity for joint acts with the City.
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 City 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 Phillips 66 Pipeline LLC.
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Resolution No. 11297 (2022 Series) Page 3
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SECTION 2. A public hearing will be held on February 15, 2022 at 6:00 p.m. 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 Vice Mayor Christianson, seconded by Council Member Marx, and
on the following roll call vote:
AYES: Council Member Marx, Pease, Shoresman, Vice Mayor
Christianson, and Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 11th day of January 2022.
___________________________
Mayor Erica A. Stewart
ATTEST:
__________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
___________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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1/13/2022 | 11:48 AM PST