HomeMy WebLinkAboutR 2025-075
RESOLUTION NO. 2025-075
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE DECLARING THE CITY COUNCIL’S
INTENTION TO ADOPT AN ORDINANCE TO GRANT TO PHILLIPS
66 PIPELINE, LLC, A PIPELINE FRANCHISE AGREEMENT TO
CONSTRUCT, OPERATE, AND MAINTAIN PIPELINES FOR THE
TRANSPORTATION OF OIL, AND OTHER SPECIFIED
MATERIALS, IN THE CITY OF ARROYO GRANDE
WHEREAS, Public Utilities Code section 6201 et seq. authorizes the City Council to
grant a utility a franchise to use, or to lay and use, pipes and appurtenances for
transmitting and distributing oil or products thereof in, along, across, upon, over, and
under the public streets, ways, and alleys within a city; and
WHEREAS, on November 9, 1999, the City Council granted a franchise to Unocal
California Pipeline Company, a California corporation (“Unocal”), for a term of 10 years
to construct, operate, and maintain pipelines for the transportation of oil and other
specified products in the City of Arroyo Grande (“City”); and
WHEREAS, on August 25, 2009, the City Council adopted Ordinance No. 613 re-
issuing the franchise to ConocoPhillips Pipeline Company, a Delaware corporation and
successor-in-interest to Unocal (“ConocoPhillips”), for a term of 15 years; and
WHEREAS, on July 18, 2024, Phillips 66 Pipeline, LLC, a Delaware limited liability
company, California common carrier, and successor-in-interest to ConocoPhillips
(“Phillips 66”), requested an extension and renewal of the franchise; and
WHEREAS, Phillips 66 has indicated its interest in renewing its franchise, and if granted
the franchise, will pay to the City during the life of such franchise, a sum equivalent to
the compensation provided in Public Utilities Code section 6231.5, which provides for
the applicable base rate, as defined therein, multiplied by the Consumer Price Index for
the area; and further that in the event the California Legislature amends the Franchise
Act of 1937 to permit a franchise payment greater than the percentage formula specified
herein, the franchise fee paid by Phillips 66 shall be automatically changed to the level
expressed by the Legislature; and
WHEREAS, the City desires to extend and renew the franchise on the same or similar
terms and conditions of the existing franchise; and
WHEREAS, the City and Phillips 66 are amenable to the proposed franchise agreement
described and depicted in Exhibit “A”, a copy of which is attached hereto and
incorporated herein by this reference; and
WHEREAS, pursuant to Public Utilities Code section 6232, prior to considering approval
of a pipeline franchise, the City Council is required to adopt a resolution of intention
to
RESOLUTION NO. 2025-075
PAGE 2
grant a pipeline franchise, and direct the City Clerk to publish notice of a public hearing
on the franchise application and
WHEREAS, all prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo
Grande, California, as follows:
Section 1. Pursuant to Public Utilities Code section 6232, the City Council of the City of
Arroyo Grande does hereby declare its intention to grant to Phillips 66 a franchise of
fifteen (15) years to construct, operate, and maintain pipelines for the transportation of
oil, and other specified products, in the City of Arroyo Grande, California.
Section 2. The City Council will consider granting the franchise to Phillips 66 at a
public hearing during the City Council’s regularly scheduled meeting to be held on
November 25, 2025, at the hour of 6:00 p.m. at the Arroyo Grande City Council
Chambers located at 215 East Branch Street, Arroyo Grande, CA 93420, whereby all
persons having any objection to the granting of the franchise hereinabove described
may appear before the City Council and be heard thereon.
Section 3. The City Council hereby directs the City Clerk to publish a notice at least
once within fifteen (15) days after the adoption of this Resolution, in a newspaper of
general circulation within the City of Arroyo Grande, in the words and figures as follows:
"NOTICE OF INTENTION TO GRANT PIPELINE FRANCHISE"
TO WHOM IT MAY CONCERN:
Notice is hereby given by the City Council of the City of Arroyo Grande that it intends to
grant, under and pursuant to Division 3, Chapter 2 of the Public Utilities Code of the
State of California, known as the Franchise Act of 1937, to Phillips 66 Pipeline, LLC, a
Delaware limited liability company and California common carrier, a franchise to
construct, operate, and maintain pipelines for the transportation of oil, and other
specified products under the public streets, ways, and alleys within the City, as the
same now or may hereafter exist within the City of Arroyo Grande. The City Council will
consider granting the franchise at a public hearing during the City Council’s regularly
scheduled meeting to be held on November 25, 2025, at the hour of 6:00 p.m. at the
Arroyo Grande City Council Chambers located at 215 East Branch Street, Arroyo
Grande, CA 93420, where any and all persons having any objection to the granting of
said franchise may appear before this City Council and be heard thereon. At any time
not later than the hour so set for the hearing of objections, any person interested may
make written protest, stating objections against the granting of said franchise. Such
protest must be signed by the protestant and be delivered to the Clerk of this City
Council.
The term for which said franchise is proposed to be granted is 15 years.
RESOLUTION NO. 2025-075
PAGE 3
The grantee of said franchise, and its successors and assigns, will, during the life of
said franchise, pay to the City of Arroyo Grande those fees prescribed by California
Public Utilities Code section 6231.5, provided that the rate shall be increased each
calendar year to the maximum rate established in subsequent amendments of the
California Public Utilities Code or as allowed by law. Said fees will be paid annually
from the date of the granting of said franchise, and in the event such payment shall not
be made, said franchise will be forfeited.
On motion of Council Member Loe, seconded by Council Member Guthrie, and on the
following roll call vote, to wit:
AYES: Council Members Loe, Guthrie, Maraviglia, and Mayor Ray Russom
NOES: None
ABSENT: Council Member Secrest
The foregoing Resolution was passed and adopted this 28th day of October, 2025.
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
RESOLUTION NO. 2025-075
PAGE 4
RESOLUTION NO. 2025-075
PAGE 5
EXHIBIT A
FRANCHISE AGREEMENT
EXHIBIT A
TABLE OF CONTENTS
Page
ARTICLE 1 NATURE OF FRANCHISE ............................................................................ 3
ARTICLE 2 APPURTENANCES....................................................................................... 6
ARTICLE 3 LOCATION OF PIPELINES ........................................................................... 6
ARTICLE 4 CONSTRUCTION OF NEW PIPELINES ....................................................... 7
ARTICLE 5 COMMENCEMENT OF CONSTRUCTION ................................................... 7
ARTICLE 6 MAPS AND REPORTS TO BE FURNISHED ................................................ 8
ARTICLE 7 COMPENSATION TO THE CITY .................................................................. 8
ARTICLE 8 EMERGENCY EQUIPMENT AND CREWS ................................................ 10
ARTICLE 9 REPAIR OF DEFECTIVE FACILITIES AND REPAIR OF DAMAGE
TO CITY STREETS ........................................................................................................ 11
ARTICLE 10 REARRANGEMENT OF FACILITIES ........................................................ 11
ARTICLE 11 GRANTEE’S REMOVAL OR ABANDONMENT OF FACILITIES ............... 13
ARTICLE 12 COMPLETION OF WORK ......................................................................... 16
ARTICLE 13 RECOVERY OF COSTS OF REPAIRS AND UNPAID FEES.................... 16
ARTICLE 14 BOND .........................................................................................................17
ARTICLE 15 INSURANCE ............................................................................................. 18
ARTICLE 16 INDEMNIFICATION BY GRANTEE ........................................................... 19
ARTICLE 17 CHANGES IN CONTROL OF FRANCHISE .............................................. 18
ARTICLE 18 WAIVER OF BREACH ...............................................................................22
ARTICLE 19 DEFAULT .................................................................................................. 23
ARTICLE 20 SCOPE OF RESERVATION ..................................................................... 23
ARTICLE 21 NOTICE ......................................................................................................24
ARTICLE 22 SUCCESSORS ......................................................................................... 24
ARTICLE 23 ACCEPTANCE OF FRANCHISE .............................................................. 24
ARTICLE 24 FORCE MAJEURE .....................................................................................25
ARTICLE 25 LIQUIDATED DAMAGES .......................................................................... 25
ARTICLE 26 ATTORNEY’S FEES ................................................................................. 26
ARTICLE 27 FAILURE TO COMPLY WITH ORDINANCE ............................................ 27
ARTICLE 28 COMPLIANCE WITH APPLICABLE LAW ................................................ 27
ARTICLE 29 SEVERABILITY .........................................................................................27
ARTICLE 30 EFFECTIVE DATE .................................................................................... 27
EXHIBIT A
1
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
GRANTING TO PHILLIPS 66 PIPELINE LLC, A FRANCHISE TO CONSTRUCT,
OPERATE, AND MAINTAIN PIPELINES FOR THE TRANSPORTATION OF OIL, AND
OTHER SPECIFIED MATERIALS, IN THE PUBLIC STREETS OF THE CITY OF
ARROYO GRANDE, STATE OF CALIFORNIA
RECITALS
WHEREAS, the Franchise Act of 1937 (the “Act”) codified at California Public Utilities
Code section 6201 et seq. authorizes cities to grant franchises to public utilities to use, or
to construct or lay and use, under, along, across, or upon the public streets, ways and alleys
and places within the city, facilities that are part of a pipeline system transmitting oil or
products thereof;
WHEREAS, on December 1, 2009, the City Council of the City of Arroyo Grande
(“City”) approved a franchise agreement with ConocoPhillips Pipe Line Company, a
Delaware corporation and California public utility and common carrier, for a term of fifteen
(15) years, granting the pipeline company a franchise to use, or to construct or lay and use,
pipeline facilities and appurtenances under, along, across, or upon the City’s streets for the
purposes of transmitting oil or products thereof;
WHEREAS, on July 10, 2012, the City adopted Resolution No. 4470 consenting to
the transfer of the franchise from ConocoPhillips Pipe Line Company to Phillips 66 Pipeline
LLC, a Delaware limited liability company (“Phillips 66”), pursuant to Article 17 of the
franchise, which continues to operate oil pipelines within the City’s streets and otherwise
controls and holds the franchise;
WHEREAS, the franchise with Phillips 66 expired on December 1, 2024 and Phillips
66 has applied to the City for the re-issuance of the franchise on similar terms and
conditions; and
WHEREAS, Phillips 66 desires to continue to use City streets for the purposes of
transmitting oil and products thereof and the City and Phillips 66 have agreed to enter into
a new franchise for such purpose.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
DOES HEREBY ORDAIN AS FOLLOWS:
ARTICLE 1
NATURE OF FRANCHISE
A. Grant of Franchise and Terms.
1. The City hereby grants to Phillips 66 (“Grantee”), for the term which
EXHIBIT A
2
shall begin on the effective date of this franchise and which term shall be for fifteen (15)
years ending at 5:00 p.m. Pacific Prevailing Time on January , 2024, subject, however,
to all the limitations and restrictions herein contained, the non-exclusive right, privilege and
franchise to, within the City, construct, erect, maintain, operate, repair, renew, abandon, and
change the size of and remove pipelines, not to exceed twelve (12) inches nominal internal
diameter, for the transportation of oil, oil products, hydrocarbon gases and other gases
necessary for the operation and maintenance of the pipelines, water and mixtures thereof,
movable by pipeline, in, under, along, and across the public streets, ways, alleys and places
(hereinafter, “streets”), more fully described and shown on the site maps in Exhibit A,
attached hereto and made a part hereof.
2. Unless otherwise specifically stated, the following provisions shall
govern the interpretation and construction of the franchise granted herein:
(a) This franchise shall supersede any and all prior franchise
agreements between the parties and/or their predecessors in interest, including, but not
limited to, that Franchise Agreement granted to Unocal California Pipeline Company, dated
November 9, 1999, and that Franchise Agreement granted to ConocoPhillips Pipe Line
Company, dated December 1, 2009, and shall include the right, for the period and subject
to the conditions hereof, to construct, erect, maintain, operate, repair, renew, abandon and
change the size and remove said pipelines, if any, of Grantee, as laid and constructed in
said streets.
(b) The terms and conditions of this franchise shall also apply to any
pipeline or other facilities of Grantee which are located within the right of way of any public
road or street at the time such road or street becomes a City street, except in cases where
Grantee maintains easement rights that are prior to or pre-date the establishment of such
public road or street.
(c) Grantee shall not be relieved of its obligation to promptly comply
with any provision of this franchise by failure of the City to enforce prompt compliance.
(d) Any right or power conferred, or duly imposed upon any officer,
employee, department, or other City entity, by the terms of this franchise, may be legally
transferred to any other City officer, employee, department, or other City entity.
(e) Grantee shall have no recourse whatsoever against the City for
any loss, cost, expense, or damage suffered by Grantee and arising out of any provision or
requirement of this franchise or its lawful enforcement by the City.
(f) This franchise does not relieve Grantee of any applicable
requirements of the Arroyo Grande Municipal Code or of any applicable federal, state, or
county law, ordinance, rule, regulation, or specification, including, but not limited to, any
requirement relating to street work, street excavation permits, or the use, removal or
relocation of property in streets, or the payment of applicable permit fees, except as
specifically prescribed herein. This franchise is non-exclusive. Neither the granting of this
franchise nor any of the provisions contained herein shall be construed to prevent the City
EXHIBIT A
3
from granting any identical or similar franchise to any other person or entity.
(g) The compensation provided for in this franchise is for (i) the
rights and privileges granted by this franchise; and (ii) the right and privilege granted to the
Grantee to construct, erect, maintain, operate, repair, renew, abandon and change the size
of and remove said pipelines pursuant to this franchise within the City’s streets. The City
expressly reserves the right to impose and collect from Grantee, on a non- discriminatory
basis, processing and inspection fees from street cutting and excavation permits to the
extent such fees are imposed generally on all nongovernmental applicants for such permits
within the City and the amount of such fees does not exceed the reasonable costs to the
City of processing such permits and inspecting the work done thereunder.
(h) Any activities involving the use of a pipeline system for the
transmitting of oil, products thereof, hydrocarbon gases and other gas necessary for the
operation and maintenance of the pipelines, water and mixtures thereof, which are not
specifically authorized under this franchise are prohibited under this franchise. Any
telecommunication or other uses not authorized in this franchise must be approved by the
City, in its sole discretion, under a separate franchise.
(i) If any provision of this franchise, or the application of this
franchise to any person or circumstance is held invalid by a court of competent jurisdiction or
is not in compliance with any requirement of the California Public Utilities Commission, the
City, or any other federal or state body or agency having jurisdiction over Grantee’s
franchise activities, the remainder of this franchise, or the application of this franchise to
persons or circumstances other than those to which it is held invalid or not in such
compliance, shall not be affected thereby.
B. Limitations Upon Grant.
1. No privilege or exemption is granted or conferred by this franchise,
except those specifically prescribed herein.
2. Any privilege claimed under this franchise by Grantee in any street
shall be subordinate to any prior lawful occupancy of the street.
3. The rights and privileges of this franchise are granted solely to
Grantee, except as provided within this franchise. This franchise is not be to sold,
transferred, leased, assigned, or disposed of as a whole or in part either by forced sale,
merger, consolidation, or otherwise, without the City’s prior written consent as described in
Article 17, infra, or as otherwise expressly provided herein.
C. Rights Reserved to the City.
1. The rights reserved to the City under this franchise are in addition to
all other rights of the City, whether authorized by the Arroyo Grande Municipal Code, or any
other federal, state, or county law, rule, or regulation. No action, proceeding or exercise of
a right shall affect any other rights which may be held by the City. Grantee, by acceptance
EXHIBIT A
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of this franchise, shall be bound thereby and to comply with any action or requirement of the
City in its exercise of any such right power.
2. The City shall have the power and right at all times during the term of
this franchise to require Grantee to conform to the laws, rules and regulations governing the
operation of pipelines now or hereafter adopted by the City Council to the extent permitted
by law.
3. The City may enforce, when not preempted by other state or federal
authority and to the maximum extent permitted by law, the inspection and testing of
pipelines, pursuant to state and federal standards. Failure to meet state and/or federal
standards shall result in liquidated damages to the City for each day of noncompliance after
the initial ten (10) days of non-compliance, unless the oil pipeline is shutdown.
ARTICLE 2
APPURTENANCES
The Grantee shall have the right, subject to the prior written approval of the City
Engineer, to construct and maintain such traps, manholes, conduits, valves, appliances,
attachments, and appurtenances (hereinafter, “appurtenances”), as may be necessary for
the proper maintenance and operation of the pipelines under said franchise. Said
appurtenances shall be so located as to conform to any order of the City Engineer in regard
thereto and not to interfere with the use of the streets for travel. The Grantee shall have the
right, subject to such ordinances, rules, or regulations as are now or may hereafter be in
force, to make all necessary excavations in said streets for the construction and repair of said
pipelines and appurtenances subject, to the prior written approval of the City Engineer.
“Appurtenances” shall also include any adjunct communications lines and/or
conduits as coaxial cable, optical fiber, wire, or other transmission lines or forms of
transmission, and associated equipment and devices located in, upon, along, across, under
or over the streets of the City, the sole function of which is to monitor or control the operation
or safety of the pipeline system via the distribution of video, audio, voice, or data signals. An
adjunct communications line shall not include any facility which distributes, through any
means, to subscribers or persons other than Grantee, the signal of one or more broadcast
television or radio stations or other sources of video, audio, voice, or data signals.
ARTICLE 3
LOCATION OF PIPELINES
Any pipeline hereinafter laid shall be located as directed in writing by the City
Engineer. Repairs to the streets shall be pursuant to the City’s laws, regulations and policies
then in effect.
EXHIBIT A
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ARTICLE 4
ARTICLE4 CONSTRUCTION OF NEW PIPELINES
A. Terms of Construction. The pipelines and appurtenances laid, constructed or
maintained under the provisions of this franchise shall be installed, maintained, and
inspected by the Grantee in a satisfactory, safe, and workmanlike manner, of good material,
and in conformity with all applicable ordinances, rules, or regulations now or hereafter
adopted or prescribed by the City Council, state, or federal authorities.
B. Restoration of Streets. The work of laying, constructing, maintaining,
operating, renewing, repairing, changing and moving any of the pipeline system
contemplated by this franchise and all other work in exercise of this franchise shall be
conducted according to the provisions of the City’s encroachment ordinances and other
rules from time to time prevailing, and otherwise in accordance with applicable federal and
state law and City ordinances, and with the least possible hindrance or interference to the
use of City streets by the public, and Grantee shall provide all necessary warning, safety
and traffic control devices as are or may be required by City, state or federal regulations. All
excavations shall be pursuant to the City’s laws, regulations and policies then in effect. The
City streets shall be placed in as good and serviceable condition as existed at the beginning
of this work, to the satisfaction of the City Engineer and pursuant to the City’s laws,
regulations and policies then in effect.
ARTICLE 5
COMMENCEMENT OF CONSTRUCTION
The Grantee, in good faith, shall commence with the work of laying any new pipelines
and appurtenances within four (4) months from the date of the written approval of the work
by the City, and if any such pipelines be not so commenced within said time, this franchise
shall be declared forfeited; provided, however, that if the Grantee is maintaining and
operating an existing pipeline system consistent with this Franchise Agreement over the
route referred to in Article 1 herein, it shall be deemed to be in compliance with the foregoing.
The Grantee shall not commence the construction of any new pipelines under the provision
of this franchise or add to such existing pipeline system, if any there be, until it first shall have
applied for and obtained a permit therefor from the City Engineer and the Director of
Community Development, where appropriate.
The application of the Grantee for the construction of new pipelines shall show the
following facts: the length, approximate depth and proposed location of the pipeline
proposed to be laid or constructed, the size and description of the pipeline intended to be
used, and such other facts as the City Engineer may require. The Grantee shall pay any
and all processing and inspection fees of the City. Upon the completion of the construction of
any pipelines constructed pursuant to said franchise, the Grantee shall render a statement
to the City showing in detail the permit or permits issued and the total length of pipeline, the
construction of which was authorized under such permit, or permits, and the total length of
pipeline actually laid, and the Grantee shall accompany said report with payment to the City
EXHIBIT A
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for the pipelines which have actually been constructed under said franchise at the rate of
$100 per mile.
ARTICLE 6
MAPS AND REPORTS TO BE FURNISHED
A. Within six (6) months of the effective date of this Franchise Agreement for
existing pipelines, and within ninety (90) days following the date in which any additional
pipelines have been laid or constructed under this franchise, the Grantee shall file a map in
such form as may be required by the City Engineer showing the approximate location and
size of all its facilities then in place, and shall, upon installation of any additional facilities or
upon removal, change or abandonment of all or any portion thereof, file a revised map or
maps showing the location and size of all such additional and/or abandoned facilities as of
said date. Cathodic protection is to be used for all facilities installed or maintained pursuant
to this franchise. For facilities previously in liquid service and where the liquids have been
removed and the facilities inerted, or for facilities previously in gas service that are not
pressurized, cathodic protection shall be maintained consistent with City or other legal
requirements. A description of all the protective devices shall be furnished to the City
Engineer which shall show the location and types of anodes, including a description of
methods to be used as a protection against corrosion and electrolytic leakage.
B. Grantee shall file with the City’s Director of Administrative Services, within
sixty (60) days after the expiration of the calendar year, or fractional calendar year, following
the date of the granting of this franchise and within sixty (60) days after the expiration of
each calendar year thereafter, two copies of a report verified by the oath of Grantee or by
the oath of a duly authorized representative of Grantee, showing, for the immediately
preceding franchise period, the length of pipelines in streets, the nominal internal diameter
of such pipelines, the rate per foot per year (when applicable) and the total amount due to
the City. In this report, Grantee shall also show any change in franchise footage since the
last franchise report, segregating such footage as to new pipelines and adjunct
communications lines laid, old pipelines and adjunct communications lines removed, and
old pipelines and adjunct communications lines abandoned in place.
C. Grantee shall file with the City Engineer within sixty (60) days after the end of
the calendar year a report, in duplicate, showing the permit number of each permit obtained
for the installation of new pipelines during the immediately preceding franchise report
period, together with the length and size of said pipelines.
ARTICLE 7
COMPENSATION TO THE CITY
A. During the term of this franchise, Grantee shall pay to the City annual fees for
this franchise, said fees to be those fees prescribed by the California Public Utilities Code
section 6231.5, provided that the rate shall be increased each calendar year to the maximum
rate established in subsequent amendments of the California Public Utilities Code or as
EXHIBIT A
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allowed by law. Annual payments to be made pursuant to this franchise shall be due and
payable in arrears April 1 of each year of this franchise. The first annual fees payment
hereunder shall be prorated for the remainder of the current calendar year based on a 365-
day year.
At the time of payment of fees by Grantee, Grantee shall file a verified statement with
the Director of Administrative Services, with a copy to the City Engineer, showing in detail
the number of lineal feet and the diameter thereof, expressed in inches, of pipelines covered
by this franchise during the previous calendar year, or portion thereof.
The compensation provided for in this Article shall be increased after the first year of
the franchise and each subsequent year during the term of this franchise, to the maximum
rate established in subsequent amendments of the California Public Utilities Code or as
allowed by law.
In addition to the increase in fees above described, the compensation provided for in
this Article shall be increased annually as provided in Section 6231.5 which provides that
the applicable base rate, as defined therein, shall be multiplied by the Consumer Price Index
for the area, as published by the United States Department of Labor, Office of Information
for the month of September immediately preceding the month in which payment is due and
payable, and divided by the Consumer Price Index for June 30, 1989, which is declared to be
100.0. Under no circumstances shall the multiplying factor be less than one.
Nothing regarding the re-issuance of this franchise to Grantee shall re-set the current
fees paid for by Grantee or otherwise modify the formula or base rate and applicable
Consumer Price Index adjustments applicable to past or current franchises, and such fees
and adjustments shall continue for the life of this franchise.
Notwithstanding the provisions as otherwise stated in this Article and franchise, the
Grantee shall be liable to pay the City the annual fee for the period to and including the date
of either actual removal of the facilities or the effective date of the abandonment “in place,”
and until the Grantee shall have fully complied with all of the provisions of law relative to
such abandonments.
In the event of partial abandonment of facilities as provided in this Franchise
Agreement, or in the event of partial removal of such facilities by the Grantee, the payments
otherwise due the City for occupancy of the streets by such facilities shall be reduced by
the length and diameter of pipelines abandoned or the actual pipeline removed
beginning with the first day of the next succeeding franchise year, and for each franchise
year thereafter; provided, however, that the base rate shall be modified to reflect the
adjustment (per this Article) applicable to such abandoned or removed pipeline at the
beginning of the next succeeding franchise year following abandonment or removal.
Grantee shall pay to the City, upon demand, the cost of all repairs made by the City
to public property arising out of the operations of the Grantee under this franchise.
Any fees charged or expenses charged to Grantee by City pursuant to this Article, or
EXHIBIT A
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any other provision of this Franchise Agreement, unless disputed in good faith, shall be paid
when due or shall be deemed delinquent. Any undisputed delinquent amounts shall be
charged a ten percent (10%) penalty and, in addition, shall accrue interest commencing
thirty (30) days after the due date, at a rate of one and one-half percent (1.5%) per month
(based upon a 30-day calendar month) or any lesser amount if required by law. Any neglect,
omission or refusal by said Grantee to pay any undisputed delinquent franchise fee with any
late charges, within thirty (30) days of delinquency, at the times or in the manner herein
provided, shall be grounds for a declaration of a forfeiture of this franchise and of all rights
hereunder.
Payments are to be made to the City of Arroyo Grande, Director of Administrative
Services, 300 E. Branch Street, Arroyo Grande, CA 93420, or at such place as the City
shall, from time to time, designate in writing.
B. In addition to any other fee specified herein, Grantee shall pay the City a
granting fee of Fifteen Thousand Dollars ($15,000.00) and an additional Five Thousand
Dollars ($5,000.00) for City transactional costs associated with this franchise within thirty
(30) days after the date the City approves this franchise.
C. Grantee shall pay the City, within sixty (60) days after the end of each
calendar year, for each year during the life of this franchise, an initial construction charge
calculated at the rate of One Hundred Dollars ($100.00) per mile or fraction thereof for all
new pipelines laid pursuant to this Franchise Agreement during the preceding year.
D. The City shall have the right to inspect Grantee’s pipeline accounting and
other records relating to its annual report and to audit and re-compute any and all accounts
payable under this franchise. Costs of audit shall be borne by Grantee when an audit results
in an increase of more than five percent of Grantee’s annual payments to the City.
Acceptance of any payment shall not be construed as a release, waiver, acquiescence, or
accord and satisfaction of any claim the City may have for further or additional sums payable
under this franchise or for the performance of any other obligation hereunder.
ARTICLE 8
EMERGENCY EQUIPMENT AND CREWS
At all times during the term of this franchise, the Grantee shall maintain or arrange for,
on a 24-hour-a-day basis, adequate emergency equipment and a properly trained
emergency crew within a reasonable distance so as to provide a response time of no more
than ten (10) minutes from any pipelines, appurtenances and facilities installed or
maintained pursuant hereto for the purpose of monitoring the leak detection system and the
communications systems if applicable, and of shutting off the pressure and the flow of
contents of such facilities in the event of an emergency resulting from an earthquake, act of
war, civil disturbance, fire, flood, or any other cause or nature whatsoever. At all times during
the term of this franchise, Grantee shall provide City Engineer with the name, address and
telephone numbers of Grantee’s emergency crew supervisors.
EXHIBIT A
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ARTICLE 9
REPAIR OF DEFECTIVE FACILITIES AND REPAIR OF DAMAGE TO CITY STREETS
If any portion of any street shall be damaged by any reason related to the Grantee’s
operations pursuant to this franchise including defective facilities laid or constructed under
this franchise, Grantee shall, at its own expense, repair any defect of its facilities and put
such street in as good condition as it was before such damage was incurred, to the
satisfaction of the City Engineer. Repairs to streets shall be pursuant to the City laws,
regulations and policies then in effect shall require repairing the asphalt for at least one- half
(1/2) the width of the street in order to assure uniformity of the street section. If Grantee,
within ten (10) days after receipt of written notice from the City Engineer instructing it to
repair such damage, fails to commence to comply with such instruction, or, thereafter, fails
diligently to prosecute such work to completion, then the City Engineer immediately may take
any actions which are, in the sole judgment and discretion of the City Engineer, necessary
to repair said damage. Any and all costs and expenses so incurred shall be the sole
responsibility of Grantee including the current rate of overhead being charged by the City
for reimbursable work, which cost and expense, by the acceptance of this franchise,
Grantee agrees to pay upon demand. If such damage constitutes an immediate danger to
public health or safety requiring the immediate repair thereof, the City Engineer, without
notice, may repair such damage and Grantee agrees to pay the cost thereof upon demand.
ARTICLE 10
REARRANGEMENT OF FACILITIES
A. Expense of Grantee.
1. If any of the Grantee’s facilities, in the opinion of the City Engineer,
shall endanger the public or interfere with the use of any street by the public or, for public
purposes, the City shall have the right to require the Grantee, and the Grantee shall repair,
replace, move, alter or relocate the same (hereinafter, “rearrangement”) to avoid such
danger, interference or obstruction, in conformity with the written notice of the City Engineer,
at the Grantee’s sole expense.
2. The City reserves the rights for itself and for all other public entities
which are now or may later be established, to change the grade, to change the width or to
alter or change the location, of any street which is located within the service area for which
this franchise is granted. If any of the facilities heretofore or hereafter constructed, installed
or maintained by Grantee pursuant to this franchise on, along, under, over, in, upon or
across any street are located in a manner which prevents or interferes with the change of
grade, traffic needs, operation, maintenance, improvement, repair, construction,
reconstruction, widening, alteration or relocation of the street, or any work or improvement
upon the street, Grantee shall relocate permanently or temporarily, as directed at the sole
discretion of the City Engineer, any such facility at no expense to the City or other public
entity upon receipt of a written request from the City Engineer to do so, and shall commence
such work, by beginning engineering, surveying, or other pre- construction activities, on or
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before the date specified in such written request, which date shall be not less than ninety
(90) days from receipt of (a) final plans of the public works improvement project approved
by the City, and (b) all requisite governmental permits and authorizations necessary to
undertake the pipeline facility location. Grantee shall thereafter diligently prosecute such
work to completion. Should Grantee neglect or fail to relocate its facilities in a timely manner
after receipt of any such notice, Grantee shall be responsible for and shall reimburse the
City for any and all additional and properly incurred costs or expenses incurred by City due
to or resulting from such delay in the relocation of the facilities plus the current rate of
overhead being charged by the City for reimbursable work. Grantee’s obligation for such
damages and/or costs will not apply if its failure to relocate arises from the sole proven
negligence of the City or a third party. If such street is subsequently constituted a state
highway, while it remains a state highway the rights of the State of California shall be as
provided in Streets and Highways Code section 680.
3. The City reserves the right, to lay, construct, repair, alter, relocate and
maintain subsurface, surface or other improvements of any type or description in a
governmental but not proprietary capacity within, over or under the streets over which this
franchise is granted. If the City, or other public entity finds that the location or relocation of
such subsurface, surface or other improvements conflicts with the facilities laid, constructed
or maintained under this franchise, whether such facilities were laid before or after the
improvements of the City, or such public entity, Grantee shall relocate permanently or
temporarily, as directed at the sole discretion of the City Engineer, any such facility at no
expense to the City, or other public entity, upon receipt of a written request from the City
Engineer to do so and shall commence such work, by beginning engineering, surveying or
other pre- construction activities, on or before the date specified in such written request,
which date shall not be less than ninety (90) days from receipt of (a) final plans of the public
works improvement project approved by the City, and (b) all requisite governmental permits
and authorizations necessary to undertake the pipeline facility location. Repairs to the street
shall be pursuant to the City’s laws, regulations and policies then in effect. The Grantee shall
thereafter diligently prosecute such work to completion. Should Grantee neglect or fail to
relocate its facilities in a timely manner after receipt of any such notice, in addition to the
liquidated damages as set forth in Article 25, Grantee shall be responsible for and shall
reimburse the City for any and all additional costs or expenses incurred by City due to or
resulting from such delay in the relocation of the facilities plus the current rate of overhead
being charged by the City for reimbursable work. Grantee’s obligation for such damages
and/or costs will not apply if its failure to relocate arises from the sole proven negligence of
the City or its agents or contractors. If such street is subsequently constituted a state
highway, while it remains a state highway the rights of the State of California shall be as
provided in Streets and Highways Code Section 680.
4. If Grantee, after the notice provided for herein from the City, or other
public entity, fails or refuses to relocate permanently or temporarily its facilities located in, on,
upon, along, under, over, across, or above any street, or to pave, surface, grade, repave,
resurface, or regrade as required pursuant to any provision of this Franchise Agreement,
the City or public entity may cause the work to be done, and shall keep an itemized account
of the entire costs thereof, and Grantee shall defend, indemnify and hold harmless the City,
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its officers and employees from any liability which may arise or be claimed to arise from the
moving, cutting or alteration of any of Grantee’s facilities, or any necessary relocation of the
facilities of other utilities.
5. Grantee agrees to, and shall, reimburse the City, or other public entity
for such cost within thirty (30) days after presentation to Grantee of an itemized account
documenting properly incurred costs arising out of the actions taken in this Section A of
Article 10.
B. Expense of Others.
1. The City shall have the right to require the Grantee to rearrange any
part of the Grantee’s facilities for the accommodation of any person, firm, or corporation.
When such rearrangement is done for the accommodation of any person, firm or
corporation, other than one of said utility systems owned or operated by the City, the cost of
such rearrangement shall be borne by the accommodated party. Such accommodated party,
in advance of such rearrangement, shall deposit with the Grantee or the City Clerk cash or
a corporate surety bond in an amount, as in the reasonable discretion of the City Engineer,
shall be required to pay the costs of such rearrangement, and such accommodated party
shall execute an instrument agreeing to defend, indemnify and hold harmless the Grantee
and the City from any and all damages or claims caused by such rearrangement.
2. The rearrangement referred to in this Article 10, Section B.1 shall be
accomplished in conformity with the written notice of the City Engineer.
C. Rearrangement of the Facilities of Others.
Nothing in this franchise shall be construed to require the City to move, alter or
relocate any of its facilities upon said streets, at its own expense, for the convenience,
accommodation or necessity of any other public utility, person, firm or corporation now or
hereafter owning a public utility system of any type or nature, to move, alter or relocate any
part of its system upon said streets for the convenience, accommodation or necessity of the
Grantee.
D. Notice.
The Grantee shall be given not less than ninety (90) days written notice of any
rearrangement of facilities which the Grantee is required to make hereunder. Such notice
shall specify in reasonable detail the work to be done by the Grantee and shall specify the
time that such work is to be accomplished. In the event that the City shall change the
provisions of any such notice given to the Grantee, the Grantee shall be given an additional
period of not less than thirty (30) days to initiate such work.
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ARTICLE 11
GRANTEE’S REMOVAL OR ABANDONMENT OF FACILITIES
A. The City reserves the right to require Grantee to remove its facilities from the
City streets in the event of the expiration, revocation or termination of this Franchise
Agreement or at any time thereafter with respect to those facilities abandoned in place, or
for the facilities affected by the permanent discontinuance of all or a portion of the facilities.
Further, so long as any facilities installed under the authority of this franchise remain in a
City street, Grantee shall maintain a performance bond, security fund, or other form of
collateral, acceptable to the City, sufficient to cover the cost of the removal of all such
facilities from the City streets.
B. At the expiration, revocation or termination of this Franchise Agreement or of
the permanent discontinuance of the use of all or a portion of its facilities, Grantee shall,
within thirty (30) days thereafter, make written application to the City Engineer for authority
either:
1. To abandon all or a portion of such facilities in place; or
2. To remove all or a portion of such facilities. Such an application shall
describe the facilities desired to be abandoned, their location with reference to City streets,
and shall describe with reasonable accuracy the physical condition of such facilities. As part
of the application for removal or abandonment of these facilities, Grantee shall submit a soil
test, taken within thirty (30) days of the submittal of the application, for those materials to be
tested annually pursuant to federal, state and local laws. A soil test shall be taken along that
portion of the pipeline to be removed or abandoned at such intervals as directed in writing
by the City Engineer and reasonably consistent with established sampling protocols. The
City Engineer shall determine whether any abandonment or removal which is thereby
proposed may be effected without detriment to the public interest and the conditions under
which such proposed abandonment or removal may be effected. The City Engineer shall
then notify Grantee of the City Engineer’s determinations. Grantee shall also obtain permits
to abandon or remove the pipeline from the City for all pipelines prior to the removal,
abandonment or discontinuation of use of all or a portion of Grantee’s facilities. The City also
reserves the right to require removal of Grantee’s facilities abandoned in place at any time
following the expiration, revocation or termination of this franchise. Grantee shall be
required to meet the bonding, insurance, indemnification and annual franchise fee
requirements of this franchise, for facilities abandoned in place.
C. Within thirty (30) days after receipt of Notification from the City Engineer
pursuant to Article 11.B.2 above, Grantee shall apply for a permit from the City to abandon or
remove the facility.
D. Grantee shall, within sixty (60) days after obtaining such a permit, commence
and diligently prosecute to completion the work authorized by the City permit.
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E. In the event Grantee applies to remove its facilities, and the City Engineer
determines that any or all of the facilities cannot be removed due to a moratorium preventing
work in the City streets, the payment of annual franchise fees may be deferred during any
such moratorium period, provided that Grantee promptly removes its facilities after notice
by the City of the cessation of the moratorium and direction to remove such facilities. In the
event Grantee does not promptly remove such facilities as directed, any deferred annual
franchise fees shall be due and payable within thirty (30) days of notice to pay.
F. Failure to Comply with City’s Orders Regarding the Removal or Abandonment
of Facilities.
1. If any orders or prescribed conditions relating to the abandonment of
any facilities are not complied with, the City may impose such additional orders and
conditions as the City Engineer deems appropriate, including an order that the Grantee
remove any or all of such facilities. Grantee shall comply with such additional orders.
2. In the event that Grantee fails to comply with the terms and conditions
of abandonment or removal as may be required by this Franchise Agreement, and within
such time as may be prescribed by the City Engineer, then the City may remove or cause
such facilities to be removed at Grantee’s expense. Grantee shall pay to the City all of the
costs of removing and disposing of these facilities, as well as returning the rights-of-way
occupied pursuant to this franchise to a good and safe condition, including, but not limited
to: (a) the cost of all environmental testing the City must conduct to determine the
environmental condition of any rights-of-way occupied pursuant to this franchise; (b) all
cleanup costs, disposal costs, and any other costs associated with returning these rights-
of-way to a safe condition; (c) all costs of removing, storing, and disposing of the Grantee’s
facilities; (d) all costs of returning all streets to a safe structural condition; (e) plus the current
rate of overhead being charged by the City for reimbursable work.
3. If, at the expiration, revocation or termination of this franchise, or of the
permanent discontinuance of the use of all or a portion of its facilities, Grantee, within thirty
(30) days thereafter, fails or refuses to make written application for the above- mentioned
authority to remove or abandon its facilities, the City Engineer shall make the determination
as to whether the facilities shall be abandoned in place or removed. The City Engineer shall
then notify Grantee of his determinations. Grantee shall thereafter comply with the
applicable provisions of this Article 11.
G. For those facilities Grantee abandons in place, Grantee shall be required to
maintain an acceptable performance bond, letter of credit or security fund, as determined by
the City, to cover the costs for the removal of any such abandoned facilities from the City
streets for any and all periods of time, including those periods following the expiration,
revocation or termination of this franchise, that Grantee’s facilities remain in the City streets.
Grantee shall be required to maintain insurance and to indemnify the City pursuant to this
Article during any periods the abandoned facilities remain within the City streets. Provided,
however, that any pipelines which cannot be removed due to a moratorium preventing work
in the City streets may be deferred from the payment of annual franchise fee. The payment
of annual franchise fees may be deferred during any such moratorium period, provided that
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Grantee promptly removes its facilities after notice by the City of the cessation of the
moratorium and direction to remove such facilities. In the event Grantee does not promptly
remove such facilities as directed, any deferred annual franchise fees shall be due and
payable within thirty (30) days of notice to pay.
H. Notwithstanding anything herein to the contrary, City shall have the right take
possession of and use Grantees pipeline facilities that are abandoned in place. City shall
provide Grantee with written notice of the specific pipeline facility it will take possession of
and use. When City takes possession of a pipeline facility abandoned in place, Grantee shall
be relieved of its obligation to bond, insure, indemnify and pay annual franchise fees for said
facility.
ARTICLE 12
COMPLETION OF WORK
In the event that the Grantee fails to commence any work or act and diligently
proceed therewith or to complete any such act or work required of the Grantee by the terms
of this franchise within the time limits required hereby (and except as is otherwise provided
in Articles 1O and 11), the City may cause such act or work to be completed by the City or,
at the election of the City, by a private contractor. The Grantee agrees to pay the City, within
thirty (30) days after delivery of an itemized bill, the cost of performing such an act or work
plus an amount equal to fifteen percent (15%) thereof for City administrative costs, including
but not limited to, staff and overhead costs. If the Grantee is dissatisfied with any decision
made by the City Engineer hereunder or the determination of the cost of any work performed
by the City pursuant to this Agreement, it may petition the City Council to review the same
within sixty (60) days after such decision or determination.
ARTICLE 13
RECOVERY OF COSTS OF REPAIRS AND UNPAID FEES
If the Grantee has not paid the City for such fees and expenses and/or liquidated
damages incurred by or payable to the City as hereinabove set forth, the City may institute the
following collection procedures (which procedures are in addition to any other rights, in law
or equity, which the City has to collect amounts due under this franchise and to enforce the
terms of this franchise):
A. The City Engineer shall keep an itemized account of the expenses incurred by
the City pursuant hereto, or the fees unpaid by the Grantee. Sixty (60) days after the
presentation of the bill to the Grantee therefore, the City Engineer shall prepare and file with
the City Clerk a report specifying the work done by the City, or the unpaid fees, the itemized
and total cost of the work, a description of the work performed, and the name and address
of the Grantee entitled to notice pursuant to this Article.
B. Upon receipt of said report, the City Clerk shall present it to the City Council for
consideration. The City Council shall fix a time, date and place for hearing said report, and
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any protest or objections thereto. The City Clerk shall cause notice of said hearing to be
posted in a newspaper of general circulation in the City, and served by certified mail,
postage prepaid, addressed to the Grantee as set forth herein. Such notice shall be given at
least ten (10) days prior to the date set for hearing and shall specify the day, hour, and place
when the City Council will hear and pass upon the City Engineer’s report, together with any
objections or protests which may be filed as hereinafter provided.
C. The Grantee may file written protests or objections with the City Clerk at any
time prior to the time set for the hearing on the report of the City Engineer. Any such protest
or objection must contain a description of the work or unpaid fee or liquidated damages in
which the Grantee is interested and the grounds of such protest or objection and the date it
was received by him. He or she shall present such a protest or objection to the City Council
at the time set for the hearing, and no other protest or objection shall be considered.
D. Upon the day and hour fixed for the hearing, the City Council shall hear and
pass upon the report of the City Engineer, together with any such objections or protests,
make such revision, correction or modification to the charge as it may deem just; and when
the City Council is satisfied with the correctness of the charge, the report (as revised,
corrected or modified), together with the charge, shall be confirmed or rejected. The
decision of the City Council on the report and the charge, and on all protests or objections,
shall be the final and conclusive decision of the City.
E. The City Council may thereupon order that such charge shall be made a
personal obligation of the Grantee or assess such charge against the property of the
Grantee.
1. If the City Council orders that the charge shall be a personal obligation
of the Grantee, it shall direct the City Attorney to collect the same on behalf of the City by
use of all appropriate legal remedies.
2. If the City Council orders that the charge shall be assessed against the
property of the Grantee, it shall confirm the assessment, cause the same to be recorded
on the assessment roll, and thereafter, said assessment shall constitute a special
assessment secured by a lien against the property.
F. The validity of any assessment made under the provisions of this franchise
shall not be contested in any action or proceeding unless the same is commenced within
ninety (90) days after the assessment is placed upon the assessment roll as provided
herein.
ARTICLE 14
BOND
A. Grantee shall, concurrently with the filing of and acceptance of award of this
franchise, file with the City Clerk, and yearly thereafter, maintain in full force and effect, a
bond in favor of the City in the penal sum of Two Million and 00/100 Dollars
($2,000,000.00), with a surety to be approved by the City, conditioned that Grantee shall,
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well and truly observe, fulfill and perform each and every term and condition of this franchise,
and in case of a breach of condition of said franchise, at the discretion of the City, a
percentage of the amount of the bond shall be paid to the City according to the following
schedule, which cumulative amount for any said breach not cured within the time specified
below shall not exceed the full amount of the bond, in addition to any damages recoverable
by the City and shall be recoverable from the principal and sureties of the bond:
Following receipt of notice by Certified
Mail sent by the City, failure to cure said
breach of condition, within:
10 business days
30 calendar days
60 calendar days
90 calendar days
Penal sum paid to City:
5% of the amount of the bond
30% cumulative amount of the bond
70% cumulative amount of the bond
100% cumulative amount of the bond
B. The faithful performance bond shall continue to exist for one (1) year following
the City’s approval of any sale, transfer, assignment or other change of ownership of this
franchise, or of the expiration or termination of this franchise. The City may release said
bond prior to the end of the one (1) year period upon satisfaction by Grantee of all the
obligations under this franchise, as determined in City’s sole discretion.
ARTICLE 15
INSURANCE
A. The Grantee shall procure and shall keep in force for the term of the franchise,
at the sole cost and expense of the Grantee, the following insurance. All insurance
coverages are to be placed either with insurers which have A.M. Best’s rating of not less
than B + VIIIW, or with financially sound stock or mutual insurers of recognized responsibility
at the sole discretion and approval of the City. Grantee may satisfy the requirements of this
Article 15 by showing proof of self-insurance satisfactory to City, in City’s sole discretion.
Commercial General Liability Insurance {CGL}: Grantee shall maintain in
full force and effect Commercial General Liability Insurance with the following coverages:
1. Personal Injury and Bodily Injury, including death resulting therefrom.
2. Property Damage.
The amount of insurance shall be: Single limit on the coverage applying to
bodily and personal injury, including death resulting therefrom, property damage, and
automobile coverage in the total amount of $5,000,000.00.
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The following endorsements must be provided in the CGL policy:
1. If the insurance policy covers on an “accident” basis, it must be
changed to “occurrence.”
2. The policy must cover personal injury as well as bodily injury.
3. Blanket contractual liability must be afforded, and the policy must
contain a cross-liability or severability of interest endorsement.
4. Broad Form Property Damage Liability must be afforded.
5. Products and Completed Operations coverage must be provided.
6. Sudden and Accidental Pollution Liability Insurance must be provided.
7. The City, its officers, employees and agents shall be named as
additional insured under the policy to the extent of the risks, liabilities and indemnification
obligations assumed by Grantee in the Agreement. The policy shall provide that the
insurance will operate as primary insurance to the extent of the risks, liabilities and
indemnification obligations assumed by Grantee in the Agreement. No other insurance
affected by the City, whether commercial or self- insurance, will be called upon to contribute
to a loss hereunder.
Auto Liability Insurance: Grantee shall maintain in full force and effect Auto
Liability Insurance with a combined bodily injury and property damage limit of
US $5,000,000 per accident, or per statutory requirements, whichever amount
is greater, covering all owned, non-owned, and/or leased vehicles.
The following requirements apply to all insurance to be provided by
Grantee:
1. A certificate of insurance or letter of self-insurance shall be
furnished to the City upon request.
2. Certificates shall state that the City shall be notified, as soon as is
reasonably practicable, but no later than thirty (30) days thereafter, of any cancellation,
reduction in coverage or change in any other material matter.
B. Failure on the part of Grantee to procure or maintain required insurance and
bonding shall constitute a material breach of this franchise upon which the City may
immediately terminate or suspend this franchise however only upon reasonable notice to
the Grantee and ability of Grantee to remedy.
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ARTICLE 16
INDEMNIFICATION BY GRANTEE
The Grantee, by the acceptance or use of the franchise hereby granted, shall defend
and indemnify and shall keep and save free and harmless the City, its officers, agents and/or
employees against any and all liability, claims, demands or causes of action which may be
asserted, prosecuted or established against them, or any of them, for damage to persons,
or property, of whatsoever nature, arising out of the use by it of the City streets hereunder
or arising out of any of the operations or activities of the Grantee pursuant to this franchise,
whether such damage shall be caused by its own sole negligence or negligence concurrent
with the City. Grantee shall not be responsible for any liability, claim, demand, or cause of
action which may be asserted, prosecuted or established against the City under the
provision of the Worker’s Compensation Act for injury to or the death of any of City’s officers,
agents or employees while acting within the scope of their employment.
ARTICLE 17
CHANGES IN CONTROL OF FRANCHISE
A. On and after the Grantee’s acceptance of this franchise as provided in Article
23 herein, Grantee, its partners, its shareholders, or any other person or persons holding
an interest in Grantee shall not transfer any interest in the franchise - where such a transfer
would lead to another person achieving a twenty-five percent (25%) or greater interest in
this franchise - or change control of this franchise, unless the City approves such a transfer
or change in control. The City shall approve a request for transfer or change in control only
if doing so serves the public interest. As used in this Franchise Agreement, “control”
includes actual working control in whatever manner exercised.
1. The City shall deny any such request for transfer or change in control if
the transferor or transferee fails to comply with any applicable provision of this Article of this
franchise or if the City determines the transferor is in non-compliance with the terms and
conditions of this franchise or if a transferee is lacking in experience and/or financial ability
to operate the pipelines authorized by this franchise, or if the proposed transfer will be
detrimental to the public interest.
B. Both the Grantee and the proposed transferee shall inform the City of any
pending change in control of this franchise or of any pending transfer of an interest in the
franchise requiring the City’s consent pursuant to this Article, and each shall provide
applications containing all documents on which the transfer or change in control is
predicated and all documents which the City determines are necessary to evaluate the
transfer or change of control. These applications shall be signed by duly authorized
representatives of the Grantee and the proposed transferee, with signatures acknowledged
by a notary. The appropriate transfer fee described in Article 17.C, infra, shall accompany
these applications.
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1. Grantee’s application shall include:
(a) Identification and ownership of the proposed transferee in the
same detail as if the proposed transferee were an applicant for an initial grant;
(b) Current financial statements showing the financial condition of
the Grantee as of the date of the application. In this application, the Grantee shall also agree
to submit financial statements showing the condition of the franchise as of the closing. Said
financial statements shall have been audited and certified by an independent certified public
accountant, and shall be submitted within ninety (90) days of the closing.
2. The proposed transferee’s application shall contain current financial
statements of the proposed transferee and other such information and data, including but not
limited to sources of capital, as will demonstrate conclusively that the proposed transferee
has all the financial resources necessary to acquire the pipeline(s), carry out all of the terms
and conditions of the franchise, remedy any and all defaults and violations of the provisions
of this franchise in the Grantee’s past and present operations, make such other
improvements and additions as may be required or proposed to maintain and conduct the
services and facilities required under this franchise. The proposed transferee will be required
to authorize the release of financial information to the City from financial institutions relating
to information supplied by the proposed transferee in support of the application. The
proposed transferee’s application shall also include:
(a) A construction schedule, describing type and placement of
construction, detail phases of construction, and include map(s) correlated to the phases of
construction. Map(s) shall include detail on the location, length, depth, and internal diameter
of any planned pipelines.
(b) Copies of any agreements with utility companies for the use of
any facilities including, but not limited to, poles, lines and conduit.
(c) A description of plans for emergency equipment and personnel
enabling the transferee to meet the emergency equipment personnel requirements in Article
8 herein.
(d) Any information indicating as specifically as possible that any
principal, manager, or associate of the proposed transferee or a parent entity of the
proposed transferee has previously been or is currently:
i. A party to a criminal proceeding (involving felonies or
misdemeanors) in which any of the following offenses have been charged: fraud,
embezzlement, tax evasion, bribery, extortion, jury tampering, obstruction of justice (or other
misconduct affecting public or judicial officers in the performance of their duties),
false/misleading advertising, perjury, antitrust violations (state or federal), violation of
environmental laws or regulations, or conspiracy to commit any of the foregoing;
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ii. A party to a civil proceeding concerning liability for any of
the following: unfair or anticompetitive business practice, antitrust violations (state or
federal) including instances in which consent decrees were entered, violations of security
laws (state or federal), false/misleading advertising, racketeer influences and corrupt
organizations, violation of environmental laws or regulations, or contraband forfeitures;
iii. Subject to any penalty, criminal or civil, involving failure to
comply with the requirements of a pipeline franchise;
iv. Involved in instituting legal action against its franchising
authorities;
v. Involved in revocation/non-renewal of any other franchise;
(e) Any other details, statements, information or references
pertinent to the subject matter of such application which shall be required or requested by
the City or by any provision of law.
(f) An express and unconditional written acceptance of the terms
and conditions of this franchise Agreement, in its most current form, as a condition to the
transfer.
C. A fee shall be submitted with the application(s) for the City’s consent to
transfer or change of control.
1. Where the City’s consent to a transfer or a change of control of this
franchise does not result in the modification of this franchise the fee for each application
shall be as set forth in the City’s fee schedule, or if not set forth in said schedule said fee
shall be established by the City Council in its sole discretion.
2. Where the City’s consent to a transfer or a change of control of this
franchise results in the modification of this franchise this fee shall be as set forth in the City’s
fee schedule, or if not set forth in said schedule said fee shall be established by the City
Council, in its sole discretion.
3. In the event the costs to process the applications exceed the fees
detailed above, the applicants may be required to pay any additional costs incurred by the
City in processing the applicants’ requests for the City’s consent to the transfer of change
of control of this franchise. Such costs may include the cost incurred for hiring consultants
to assist in evaluating the applications. Such costs shall be paid by the applicants prior to
final consideration of the request by the City.
D. Within thirty (30) days of the effective date of the City’s approval of the transfer
or change of control, or within thirty (30) days of the date of the close of the transfer or
change of control, the Grantee shall file with the City (1) a certified copy of each duly
executed instrument of such a transfer or change in control; and (2) the submittal of a final
accounting and report of all fees due under this franchise. The proposed transferee shall be
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responsible for any underpayment, and shall be entitled to a credit for any overpayment.
Within ninety (90) days of the closing of the transfer or change of control, the Grantee shall
submit financial statements, audited and certified by an independent certified public
accountant, showing the condition of the franchise as of the closing. If such duly executed
instruments are not filed with the City by the deadlines imposed in this Article, or if the
final documents are different from the preliminary documents, the City may inform the
proposed transferee that the transfer or change in control is not deemed to be in force and
effect. The City may then administratively determine that this franchise is forfeited and the
City Council may, without notice, repeal this franchise.
E. As a condition to the granting of consent to such a transfer or change in
control, the City Council may impose such additional terms and conditions upon this
franchise and upon the proposed transferee as are in the public interest. Such additional
terms and conditions shall be imposed by ordinance. Nothing herein contained shall be
construed to grant the Grantee the right to transfer or change control of this franchise or any
part thereof, except in the manner aforesaid. This Article 17 applies to any transfer of this
franchise, or of any change in control of this franchise, whether by operation of law, by
voluntary act of Grantee, or otherwise.
ARTICLE 18
WAIVER OF BREACH
No waiver of the breach of any of the covenants, agreements, restrictions, or
conditions of this franchise by the City shall be construed to be a waiver of any succeeding
breach of the same or other covenant, agreements, restrictions or conditions of this
franchise. No delay or omission of the City in exercising the right, power or remedy herein
provided in the event of default shall be construed as a waiver thereof, or acquiescence
therein, nor shall the acceptance of any payments made in a manner or at a time other than
is herein provided be construed as a waiver of or variation in any of the terms of this franchise.
ARTICLE 19
DEFAULT
A. In the event that the Grantee shall default in the performance of any of the
terms, covenants and conditions herein, the City shall give written notice to the Grantee of
such default by certified mail. In the event that the Grantee does not commence the work
necessary to cure such default within fifteen (15) business days after such notice is received
or prosecute such work diligently to completion, the City may declare this franchise forfeited
by giving written notice thereof to the Grantee by certified mail, whereupon this franchise
shall be void and the rights of the Grantee hereunder shall terminate and the Grantee shall
execute an instrument of surrender and deliver the same to the City. If the City Council
declares this franchise forfeited, it may thereupon and thereafter exclude the Grantee from
further occupancy or use of all City roads authorized under this franchise. A forfeiture of
said franchise shall not of itself operate to release any bond filed for said franchise. Upon
declaring a franchise forfeited, the City Council may elect to draw against the bond as
EXHIBIT A
22
liquidated damages or pursue any other legal remedy for any damage, loss or injury suffered
by the City as a result of such breach or both. After forfeiture, any bond shall remain in full
force and effect for a period of one (1) year unless exonerated by the City Council. No bond
shall be exonerated unless a release is obtained from the City Engineer and is filed with
the City Clerk. The release shall state whether all excavations have been back filled, all
obstructions removed, and whether the substratum or surface of City streets occupied or
used have been placed in good and serviceable condition.
Release shall not constitute a waiver of any right or remedy which the City may have
against the Grantee or any person, firm or corporation for any damage, loss or injury suffered
by the City as a result of any work or activity performed by the Grantee in the exercise of
this franchise.
B. No provision herein made for the purpose of securing the enforcement of the
terms and conditions of this franchise shall be deemed an exclusive remedy, or to afford the
exclusive procedure, for the enforcement of said terms and conditions, but the remedies and
procedure herein provided, in addition to those provided by law shall be deemed to be
cumulative.
ARTICLE 20
SCOPE OF RESERVATION
Nothing herein contained shall ever be construed so as to exempt the Grantee from
compliance with all applicable ordinances of the City now in effect or which may be hereafter
adopted which are not inconsistent with the terms of this franchise. The enumeration herein
of specific rights reserved shall not be construed as exclusive; or as limiting the general
reservation herein made or as limiting such rights as the City may now or hereafter have in
law.
ARTICLE 21
NOTICE
Any notice required to be given under the terms of this franchise, the manner of
service of which is not specifically provided for, may be served as follows:
Upon the City, by serving the City Clerk, personally or by addressing a written notice
to the Director of Administrative Services of the City of Arroyo Grande, and depositing such
notice in the United States mail, postage prepaid.
Upon the Grantee, by addressing a written notice to Grantee addressed to Phillips 66
Pipeline LLC, 2331 CityWest Blvd., Houston, TX 77042, Attn: Real Estate Manager, Real
Estate Services, or such other address as may from time to time be furnished in writing by
one party to the other and depositing said notice in the United States mail, postage prepaid.
When service of any such notice is made by mail, the time of such notice shall begin with
and run from the date of the deposit of same in the United States mail.
EXHIBIT A
23
ARTICLE 22
SUCCESSORS
The terms herein shall inure to the benefit of and shall bind, as the case may be, the
permitted successors and assigns of the parties hereto, subject, however, to the provisions
of Article 17.
ARTICLE 23
ACCEPTANCE OF FRANCHISE
A. This franchise is granted and shall be held and enjoyed only upon the terms
and conditions herein contained.
1. Grantee shall, within thirty (30) days after the passage of this approval
of this Franchise Agreement, file with the City Clerk an express and unconditional written
letter of acceptance of, and consent to, the terms and conditions of this Franchise
Agreement, in its current version, and as subsequently amended.
B. Grantee’s letter of acceptance shall be signed by one (1) duly authorized
representative of Grantee, whose signature shall be acknowledged by a notary and shall be
accompanied by the performance bond and evidence of insurance required by this
Franchise Agreement.
ARTICLE 24
FORCE MAJEURE
The time within which Grantee is obligated hereunder to construct, erect, maintain,
operate, repair, renew, change the size of and remove pipelines or other improvements
shall be extended for a period of time equal in duration to, and performance in the meantime
shall be excused on account of, and for, and during the period of any delay caused by
strikes, threats of strikes, lockouts, war, threats of war, insurrection, invasion, acts of God,
calamities, violent action of the elements, fire, action or regulation of any governmental
agency law or ordinance, impossibility of obtaining materials, or other things beyond the
reasonable control of Grantee.
ARTICLE 25
LIQUIDATED DAMAGES
A. By acceptance of this franchise, Grantee understands and acknowledges
that failure to timely comply with any performance requirements stipulated in this Franchise
Agreement will result in damages to the City, and that it is and will be impractical to
determine the actual amount of such damage in the event of delay or nonperformance. Each
of the amounts set forth below has been set in recognition of the difficulty of affixing actual
EXHIBIT A
24
damages arising from breach of these times of performance requirements. Each of said
amounts constitute a reasonable estimate of these damages. This section does not limit the
rights and remedies available to the City for damages other than the timely compliance with
performance requirements as described in this section. The liquidated damages set forth
below shall be chargeable to the bond, letter of credit or security fund provided for herein,
supra, should Grantee not make payment within thirty (30) days of written notice by certified
mail by the City that the following amounts are due for the following concerns:
1. Failure to provide data, documents, or reports within ten (10) business
days after written request by the City, by certified mail, or such longer time as may be
specified in said request: Two Hundred Fifty Dollars ($250.00) per day for each day, or part
thereof that each violation continues.
2. Failure to provide to the City within ten (10) business days after written
request by the City, by certified mail, current evidence of insurance and bonding: Two
Hundred Fifty Dollars ($250.00) per day for each day, or part thereof, that each
noncompliance continues. Nothing in this Section shall preclude immediate termination or
suspension of this franchise as provided for herein.
3. After ten (10) business days written request by the City, by certified
mail, to do so, the failure by Grantee to timely restore public or private property after
performance of work: Two Hundred Fifty Dollars ($250.00) per day or part thereof, that each
non-compliance continues.
4. Failure to timely comply with any performance requirements stipulated
in this Franchise Agreement within ten (10) business days after written request or notice by
the City, by certified mail: Two Hundred Fifty Dollars ($250.00) per day or part thereof, that
each non-compliance continues.
B. If the City Engineer determines that Grantee is liable for liquidated damages,
the City Engineer shall issue to Grantee by certified mail written notice of intention to charge
liquidated damages. Liquidated damages shall begin to accrue as of the date of the written
notice and as set forth in said notice. The notice shall set forth the basis for the liquidated
damages and give Grantee a reasonable time in which to remedy the violation.
C. Grantee shall have the right to appeal any notice to the City by certified mail
within fifteen (15) days after issuance of the notice by the City Engineer. The City shall make
a determination within sixty (60) days after receipt of an appeal. The City Council’s decision
shall be the final decision of the City.
D. If Grantee does not appeal to the notice within said fifteen (15) day period,
Grantee shall pay the amount(s) of liquidated damages as stated in the notice. If payment is
not made as provided for in this Article, the City may withdraw against the bond provided
for in Article 14 herein.
EXHIBIT A
25
ARTICLE 26
ATTORNEY’S FEES
In the event the City or Grantee brings legal action against the other, or against
Grantee’s bonding companies or insurance carriers to compel performance of, or to recover
for breach of any covenant, agreement or condition contained in this franchise, or for
damages, the prevailing party shall be entitled to, in addition to any other relief obtained,
such reasonable attorney’s fees as are fixed by the judge of the court in which such action
is brought.
ARTICLE 27
FAILURE TO COMPLY WITH ORDINANCE
If Grantee shall fail, neglect or refuse to comply with any of the provisions or
conditions hereof, or of the Act, as amended, in accordance with the provisions of which this
Franchise is granted, and shall not within fifteen (15) business days, or within such other
time period provided herein otherwise, after the written demand for compliance, begin the
work of compliance, or after such beginning, shall not prosecute the same with due diligence
to completion, then the City may declare this franchise forfeited. The City may sue in its
own name for the forfeiture of this franchise in the event of non-compliance by Grantee, its
successors or assigns, with any of the condition hereof.
ARTICLE 28
COMPLIANCE WITH APPLICABLE LAW
Until such time as (a) this franchise terminates, (b) the Grantee removes all of its
facilities, and (c) the Grantee completes any necessary remedial work, the Grantee will
comply with all applicable law.
ARTICLE 29
SEVERABILITY
This ordinance and the various parts, sections and clauses thereof are hereby
declared to be severable. If any part, sentence, paragraph, section or clause is adjudged
unconstitutional or invalid, the remainder of this ordinance shall not be affected thereby. If
any part, sentence, paragraph, section or clause of this ordinance, or its application to any
person or entity is adjudged unconstitutional or invalid, such unconstitutionality or invalidity
shall affect only such part, sentence, paragraph, section or clause of this ordinance, or
person or entity; and shall not affect or impair any of the remaining provisions, parts,
sentences, paragraphs, sections or clauses of this ordinance, or its application to other
persons or entities. The City Council hereby declares that this ordinance would have been
adopted had such unconstitutional or invalid part, sentence, paragraph, section or clause of
this ordinance not been included herein; or had such person or entity been expressly
EXHIBIT A
26
exempted from the application of this ordinance.
ARTICLE 30
EFFECTIVE DATE
This ordinance shall take effect thirty (30) days after its adoption by the Arroyo
Grande City Council.
EXHIBIT A
27
On motion by Council Member , seconded by Council Member ,
and by the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing ordinance was adopted on , 2025.
Caren Ray Russom, Mayor
ATTEST:
Jessica Matson, City Clerk
APPROVED AS TO CONTENT:
Matthew Downing, City Manager
APPROVED AS TO FORM:
Isaac Rosen, City Attorney
EXHIBIT A
EXHIBIT A
FRANCHISE MAPS OF ACTIVE PIPELINES AND OTHER APPURTENANCES AND
FACILITIES
P66_6000_cpConoco.mxt
29
0
+
0
0
30
0
+
0
0
PIPE SPE CI FIC AETXIOHINBSIT A
COATING DETAIL
BEGIN END COATING
277+66 280+43 OTHER
280+43 280+63 EPOXY
280+63 313+03 OTHER
313+03 313+18 EPOXY
313+18 324+46 OTHER
PIPE DETAIL
BEGIN END OD x WT SPEC SMYS LS INSTAL MANUF
277+66 324+46 8.625 x 0.277 UNKNOWN 35000 ERW 1/1/1954 UNKNOWN
ANC
277+66 NC-40-10 - Santa Maria Refinery to Miossi
324+46
PLS
Dower
T32S R13E Sec 028
Beech
Quan Alder
Wood
000
000 032S
013E
032S
012E
Las Casitas
Halcyon
PRICE CANYON TO SUMMIT STATION
LINE 400 SUMMIT TO AVILA 8 INCH IDLE
Focus Pipe Line
Legend
1000' Station Increment
De Los Desca
San Luis Obispo, CA
Rena
Alpine
Reference Pipe Line
AIP or Sold Pipe Lines
Township/Range Line
Section/Abstract Line
County Line
State Line
Sheet Note
Waterway
Road or Highway
Railroad
Fence
Telephone Line
OH Power Line
Buried Power Line
Television Cable /
Fiber Optic Cable
Water Line
Pipeline
Sewer Line, Field Tile
Property Line
Casing
River Weight
Station Equation
Test Lead
AGM / AGR
Bypass Valve
Block Valve (MOV, Manual)
Blowoff or Relief Valve
Check Valve
Sleeve
Reducer
Pig Signal
Cathodic Protection System
Meter
Regulator Setting
Tap, Tee, Branch Connect
Aerial Marker
Launcher, Receiver,
or Scraper Trap Vent
The information contained on this drawing is for the private use of Phillips 66 Pipeline LLC and is
not to be disclosed, used, or duplicated except as authorized in writing by Phillips 66 Pipeline LLC.
350
300
250
200
8.625" x 0.277"
35000
350
300
250
200
ENGINEERING ALIGNMENT SHEET
NC40_SANTA MARIA REFINERY TO SANTA MARGARITA
SANTA MARIA/MIOSSI
150
100
150
100
0 SCALE:
GENERATION DATE
500
DRAWING NAME
1,000
Feet
MAP NUMBER
50 277+66
280+00 290+00 300+00 310+00 320+00
50 324+46 01/26/23 NC40_400 07 of 17
37
Gaynfair
Mulberry
PR
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Se
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27
7
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6
6
Ma
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NC
4
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4
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0
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6
27
7
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27
9
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28
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28
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29
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29
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8 IN
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29
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30
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31
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DO
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31
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32
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32
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NC
4
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8
P66_6000_cpConoco.mxt
PIPE SPE CI FIC AETXIOHINBSIT A
COATING DETAIL
BEGIN END COATING
324+46 339+77 OTHER
339+77 340+08 EPOXY
340+08 342+84 OTHER
342+84 343+28 EPOXY
343+28 370+03 OTHER
370+03 370+75 EPOXY
370+75 376+86 OTHER
PIPE DETAIL
BEGIN END OD x WT SPEC SMYS LS INSTAL MANUF
324+46 376+86 8.625 x 0.277 UNKNOWN 35000 ERW 1/1/1954 UNKNOWN
ANC
324+46 NC-40-10 - Santa Maria Refinery to Miossi
376+86
PLS T32S R13E Sec 028 T32S R13E Sec 029 T32S R13E Sec 020
000
000 032S
013E
032S
012E
Focus Pipe Line
Legend
1000' Station Increment
San Luis Obispo, CA
Reference Pipe Line
AIP or Sold Pipe Lines
Township/Range Line
Section/Abstract Line
County Line
State Line
Sheet Note
Waterway
Road or Highway
Railroad
Fence
Telephone Line
OH Power Line
Buried Power Line
Television Cable /
Fiber Optic Cable
Water Line
Pipeline
Sewer Line, Field Tile
Property Line
Casing
River Weight
Station Equation
Test Lead
AGM / AGR
Bypass Valve
Block Valve (MOV, Manual)
Blowoff or Relief Valve
Check Valve
Sleeve
Reducer
Pig Signal
Cathodic Protection System
Meter
Regulator Setting
Tap, Tee, Branch Connect
Aerial Marker
Launcher, Receiver,
or Scraper Trap Vent
The information contained on this drawing is for the private use of Phillips 66 Pipeline LLC and is
not to be disclosed, used, or duplicated except as authorized in writing by Phillips 66 Pipeline LLC.
350
300
250
200
8.625" x 0.277"
35000
350
300
250
200
ENGINEERING ALIGNMENT SHEET
NC40_SANTA MARIA REFINERY TO SANTA MARGARITA
SANTA MARIA/MIOSSI
150
100
150
100
0 SCALE:
GENERATION DATE
500
DRAWING NAME
1,000
Feet
MAP NUMBER
50 324+46
330+00 340+00 350+00 360+00 370+00
50 376+86 01/26/23 NC40_400 08 of 17
37
PR
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10
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: St
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32
4
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4
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Ma
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NC
4
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4
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32
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32
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32
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32
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12
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30
0
32
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8 IN
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30
0
32
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33
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32
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33
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34
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34
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34
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36
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36
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36
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36
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CL
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37
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37
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72
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37
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37
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37
6
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4
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4
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0
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9
P66_6000_cpConoco.mxt
37
PIPE SPE CI FIC AETXIOHINBSIT A
CASING DETAIL
BEGIN END NOM DIA CROSSING
411+64 414+25 12 ROAD
BEGIN END COATING
376+86 414+28 OTHER
414+28 417+65 LAYERED_FBE
417+65 417+66 EPOXY
417+66 422+72 LAYERED_FBE
422+72 430+06 OTHER
COATING DETAIL
PIPE DETAIL
BEGIN END OD x WT SPEC SMYS LS INSTAL MANUF
376+86 411+57 8.625 x 0.277 UNKNOWN 35000 ERW 1/1/1954 UNKNOWN
411+57 414+28 8.625 x 0.322 API-5L 42000 ERW 1/1/2000 UNKNOWN
414+28 422+72 8.625 x 0.322 API-5L 42000 ERW 6/1/2015 UNKNOWN
422+72 430+06 8.625 x 0.277 UNKNOWN 35000 ERW 1/1/1954 UNKNOWN
ANC
376+86 NC-40-10 - Santa Maria Refinery to Miossi
430+06
PLS T32S R13E Sec 020
032S
013E
000
032S
012E
000
Focus Pipe Line
Legend
1000' Station Increment
San Luis Obispo, CA
Reference Pipe Line
AIP or Sold Pipe Lines
Township/Range Line
Section/Abstract Line
County Line
State Line
Sheet Note
Waterway
Road or Highway
Railroad
Fence
Telephone Line
OH Power Line
Buried Power Line
Television Cable /
Fiber Optic Cable
Water Line
Pipeline
Sewer Line, Field Tile
Property Line
Casing
River Weight
Station Equation
Test Lead
AGM / AGR
Bypass Valve
Block Valve (MOV, Manual)
Blowoff or Relief Valve
Check Valve
Sleeve
Reducer
Pig Signal
Cathodic Protection System
Meter
Regulator Setting
Tap, Tee, Branch Connect
Aerial Marker
Launcher, Receiver,
or Scraper Trap Vent
The information contained on this drawing is for the private use of Phillips 66 Pipeline LLC and is
not to be disclosed, used, or duplicated except as authorized in writing by Phillips 66 Pipeline LLC.
300
250
200
150
8.625" x 0.277"
35000
8.625" x 0.322"
42000
8.625" x 0.277"
35000
300
250
200
150
ENGINEERING ALIGNMENT SHEET
NC40_SANTA MARIA REFINERY TO SANTA MARGARITA
SANTA MARIA/MIOSSI
100
50
100
50
0 SCALE:
GENERATION DATE
500
DRAWING NAME
1,000
Feet
MAP NUMBER
0 0 01/26/23 NC40_400 09 of 17
376+86 390+00 400+00 410+00 420+00 430+06
PR
O
F
I
L
E
PI
P
E
DE
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A
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L
PL
A
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VI
E
W
PI
P
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L
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ST
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T
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10
5
0
Se
r
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s
: St
a
37
6
+
8
6
Ma
t
c
h
Sh
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t
NC
4
0
_
4
0
0
_
0
0
8
37
8
+
5
5
CL
OA
K
PA
R
K
BO
U
L
E
V
A
R
D
37
9
+
2
5
CL
14
.
5
'
X 15
'
CO
N
C
VL
V
VA
U
L
T
37
6
+
8
6
37
9
+
2
2
CL
8"
X 8"
TE
E
37
9
+
2
3
CL
FL
A
N
G
E
37
9
+
2
5
8"
GA
T
E
SL
5
5
MA
N
U
A
L
VA
L
V
E
38
0
+
0
0
38
0
+
5
5
CL
SE
R
V
I
C
E
38
1
+
0
8
CL
SE
R
V
I
C
E
37
9
+
2
6
37
9
+
2
6
37
9
+
3
2
CL
FL
A
N
G
E
CL
8"
X 8"
TE
E
TE
S
T
LE
A
D
38
2
+
0
8
CL
RA
M
O
N
A
AV
E
N
U
E
38
6
+
8
7
CL
4 IN
GE
N
E
R
I
C
PO
W
E
R
LI
N
E
38
6
+
9
1
CL
BR
I
G
H
T
O
N
AV
E
N
U
E
39
0
+
0
0
39
0
+
8
8
CL
2 IN
GE
N
E
R
I
C
TE
L
E
V
I
S
I
O
N
CA
B
L
E
39
2
+
2
8
CL
NE
W
P
O
R
T
AV
E
N
U
E
39
2
+
7
9
CL
2 IN
GE
N
E
R
I
C
TE
L
E
V
I
S
I
O
N
CA
B
L
E
39
2
+
8
0
CL
6 IN
GE
N
E
R
I
C
PO
W
E
R
LI
N
E
39
5
+
2
5
AG
R
| AG
M
14
39
5
+
8
6
CL
SA
R
A
T
O
G
A
AV
E
N
U
E
39
6
+
9
5
CL
3 IN
GE
N
E
R
I
C
PO
W
E
R
LI
N
E
39
9
+
2
8
CL
6 IN
GA
S
PI
P
E
L
I
N
E
39
9
+
4
7
CL
AT
L
A
N
T
I
C
CI
T
Y
AV
E
N
U
E
40
0
+
0
0
40
4
+
3
6
40
4
+
3
8
TE
S
T
LE
A
D
TE
S
T
LE
A
D
40
4
+
3
9
PL
MA
R
K
E
R
| TY
P
E
:
C
A
R
S
O
N
I
T
E
40
5
+
3
9
SA
N
T
A
MA
R
I
A
/
M
I
O
S
S
I
40
7
+
1
0
PL
MA
R
K
E
R
| TY
P
E
:
S
T
E
E
L
PO
S
T
40
8
+
5
5
PL
MA
R
K
E
R
| TY
P
E
:
40
9
+
4
0
PL
MA
R
K
E
R
| TY
P
E
:
41
0
+
0
0
41
0
+
8
3
PL
MA
R
K
E
R
| TY
P
E
:
41
1
+
3
6
ST
R
E
A
M
41
1
+
6
5
FE
N
C
E
41
1
+
7
0
PL
MA
R
K
E
R
|
T
Y
P
E
:
S
T
E
E
L
PO
S
T
41
1
+
6
4
BE
G
I
N
12
"
CA
S
I
N
G
41
1
+
5
7
41
4
+
2
5
EN
D
CA
S
I
N
G
41
4
+
3
0
TE
S
T
LE
A
D
41
7
+
5
8
8"
VA
L
V
E
41
7
+
6
5
SP
L
I
T
TE
E
41
5
+
6
8
PL
MA
R
K
E
R
| TY
P
E
:
S
T
E
E
L
PO
S
T
41
7
+
0
4
FE
N
C
E
41
7
+
7
1
FE
N
C
E
41
8
+
6
1
PL
MA
R
K
E
R
| TY
P
E
:
S
T
E
E
L
PO
S
T
42
0
+
0
0
42
2
+
7
2
ST
Q
BK
=
4
2
2
7
1
.
5
4
AH
=
4
2
2
7
8
.
0
0
42
2
+
7
2
CS
S
CH
A
N
G
E
ST
A
T
I
O
N
SE
R
I
E
S
42
2
+
7
2
42
4
+
4
6
CL
OA
K
PA
R
K
BO
U
L
E
V
A
R
D
Gr
i
e
b
29
0
0
SJe
rai
ems :eSsta
43
0
+
0
6
43
0
+
0
0
43
0
+
0
6
Ma
t
c
h
Sh
e
e
t
NC
4
0
_
4
0
0
_
0
1
0
P66_6000_cpConoco.mxt
29
0
0
Se
r
i
e
s
: St
a
48
4
+
9
6
PIPE SPE CI FIC AETXIOHINBSIT A
COATING DETAIL
BEGIN END COATING
430+06 463+50 OTHER
463+50 463+53 GEOTEX
463+53 484+96 OTHER
PIPE DETAIL
BEGIN END OD x WT SPEC SMYS LS INSTAL MANUF
430+06 484+96 8.625 x 0.277 UNKNOWN 35000 ERW 1/1/1954 UNKNOWN
ANC
430+06 NC-40-10 - Santa Maria Refinery to Miossi
484+96
PLS T32S R13E Sec 020
032S
013E
032S
012E
000 000
000
Focus Pipe Line
Legend
1000' Station Increment
000
000
031S
014E
031S
012E
030S
013E
000
Reference Pipe Line
AIP or Sold Pipe Lines
Township/Range Line
Section/Abstract Line
County Line
State Line
Station Equation
Test Lead
AGM / AGR
Bypass Valve
Block Valve (MOV, Manual)
San Luis Obispo, CA
031S
013E
032S
013E
Sheet Note
Waterway
Road or Highway
Railroad
Fence
Telephone Line
OH Power Line
Buried Power Line
Television Cable /
Fiber Optic Cable
Water Line
Pipeline
Sewer Line, Field Tile
Property Line
Casing
River Weight
Blowoff or Relief Valve
Check Valve
Sleeve
Reducer
Pig Signal
Cathodic Protection System
Meter
Regulator Setting
Tap, Tee, Branch Connect
Aerial Marker
Launcher, Receiver,
or Scraper Trap Vent
The information contained on this drawing is for the private use of Phillips 66 Pipeline LLC and is
not to be disclosed, used, or duplicated except as authorized in writing by Phillips 66 Pipeline LLC.
400
350
300
250
8.625" x 0.277"
35000
400
350
300
250
ENGINEERING ALIGNMENT SHEET
NC40_SANTA MARIA REFINERY TO SANTA MARGARITA
SANTA MARIA/MIOSSI
200
150
200
150
0 SCALE:
GENERATION DATE
500
DRAWING NAME
1,000
Feet
MAP NUMBER
100 430+06
440+00 450+00 460+00 470+00 480+00
100 484+96 01/26/23 NC40_400 10 of 17
37
PR
O
F
I
L
E
PI
P
E
DE
T
A
I
L
PL
A
N
VI
E
W
PI
P
E
L
I
N
E
ST
A
T
I
O
N
I
N
G
29
0
0
Se
r
i
e
s
: St
a
43
0
+
0
6
Ma
t
c
h
Sh
e
e
t
NC
4
0
_
4
0
0
_
0
0
9
43
0
+
0
6
43
0
+
9
1
SA
N
T
A
MA
R
I
A
/
M
I
O
S
S
I
43
2
+
2
7
CL
JA
M
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S
WA
Y
43
3
+
2
7
SA
N
T
A
MA
R
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A
/
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S
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43
3
+
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8
SA
N
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A
MA
R
I
A
/
M
I
O
S
S
I
43
8
+
3
6
SA
N
T
A
MA
R
I
A
/
M
I
O
S
S
I
43
9
+
3
7
CL
OA
K
PA
R
K
BO
U
L
E
V
A
R
D
43
9
+
3
8
CL
SE
R
V
I
C
E
44
0
+
0
0
44
1
+
3
0
CL
OA
K
PA
R
K
BO
U
L
E
V
A
R
D
44
3
+
9
7
CL
OA
K
PA
R
K
BO
U
L
E
V
A
R
D
44
8
+
0
4
1'
SL
E
E
V
E
44
9
+
5
2
ST
R
E
A
M
45
0
+
6
0
CL
ME
A
D
O
W
L
A
R
K
DR
I
V
E
45
0
+
0
0
45
1
+
9
4
CL
OA
K
PA
R
K
BO
U
L
E
V
A
R
D
45
7
+
8
8
TE
S
T
LE
A
D
46
0
+
0
0
46
2
+
8
5
PL
MA
R
K
E
R
| TY
P
E
:
S
T
E
E
L
PO
S
T
46
3
+
3
3
FE
N
C
E
46
3
+
4
0
PL
MA
R
K
E
R
| TY
P
E
:
S
T
E
E
L
PO
S
T
46
3
+
4
0
46
3
+
7
0
TE
S
T
LE
A
D
4'
SL
E
E
V
E
46
4
+
7
2
PL
MA
R
K
E
R
| TY
P
E
:
S
T
E
E
L
PO
S
T
46
6
+
4
2
FE
N
C
E
46
8
+
5
8
PL
MA
R
K
E
R
| TY
P
E
:
C
A
R
S
O
N
I
T
E
47
0
+
0
0
47
0
+
6
9
PL
MA
R
K
E
R
| TY
P
E
:
P
L
A
S
T
I
C
(P
V
C
)
47
2
+
6
7
PL
MA
R
K
E
R
| TY
P
E
:
S
T
E
E
L
PO
S
T
47
4
+
2
2
ST
R
E
A
M
47
6
+
0
0
AM
10
.
0
0
47
7
+
1
1
TE
S
T
LE
A
D
47
7
+
3
0
FE
N
C
E
48
0
+
0
0
48
0
+
0
7
PL
MA
R
K
E
R
| TY
P
E
:
C
A
R
S
O
N
I
T
E
48
2
+
1
3
PL
MA
R
K
E
R
| TY
P
E
:
C
A
R
S
O
N
I
T
E
48
4
+
9
6
Ma
t
c
h
Sh
e
e
t
NC
4
0
_
4
0
0
_
0
1
1
De
n
n
i
s
OFFICIAL CERTIFICATION
I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the
attached Resolution No. 2025-075 was passed and adopted at a regular meeting
of the City Council of the City of Arroyo Grande on the 28th day of October, 2025.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 30th day
of October, 2025.
JESSICA MATSON, CITY CLERK