HomeMy WebLinkAboutr10295conocophillipsfranchiseRESOLUTION NO . 10295 (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, TO OPERATE AND MAINTAIN PIPELINES FOR THE TRANSPORTATION O F
OIL AND OTHER SPECIFIED MATERIALS IN THE CITY OF SAN LUIS OBISPO B Y
CONOCOPHILLIPS PIPE LINE COMPANY (CONOCOPHILLIPS), A DELAWAR E
CORPORATION, AND SETTING A PUBLIC HEARING FOR OCTOBER 4, 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 that expired on July 9, 2011 ; and
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 Years
Fees : Annual franchise free to the City in accordance with Publi c
Utilities Code Section 6231 .5 (a fee ranging from $0 .088 to
$0 .660, adjusted per the Consumer Price Index, per lineal foo t
based on 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 .
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 .
R 10295
Resolution No . 10295 (2011 Series )
Page 2
NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s
Obispo that it approves an Amended Agreement 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 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 Delaware Corporation .
SECTION 2. A public hearing will be held on October 4, 2011, at 7 :00 PM in the
Council Chambers of City Hall, located at 990 Palm Street, San Luis Obispo, CA . 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 an y
objection to the approval of the franchise may appear before the Council to be heard thereon .
Upon motion of Vice Mayor Ashbaugh, seconded by Council Member Smith, and on th e
following vote :
AYES :
Council Members Carpenter, Carter and Smith, Vice Mayor Ashbaug h
and Mayor Marx
NOES :
None
ABSENT : None
The foregoing resolution was adopted this 6th day of September 2011 .
ATTEST :
Elaina Can o
City Cler k
J
"istine Dietric k
City Attorney