R 4470 RESOLUTION NO. 4470
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE CONSENTING TO THE TRANSFER OF A FRANCHISE TO
CONSTRUCT, OPERATE AND MAINTAIN PIPELINES FROM CONOCO
PHILLIPS PIPE LINE COMPANY TO PHILLIPS 66 PIPELINE LLC
WHEREAS, on November 9, 1999, the City of Arroyo Grande ("City") entered into "An
Agreement Granting to Unocal California Pipeline Company, a California Corporation, a
Franchise to Construct, Operate, and Maintain Pipe Lines for the Transportation of Oil,
and Other Specified Materials, in the City of Arroyo Grande, State of California" (the
"Pipeline Franchise Agreement"); and
WHEREAS, on July 26, 2005, the City consented to a transfer of the Pipeline Franchise
Agreement from Unocal California Pipeline Company to ConocoPhillips Pipe Line
Company ("ConocoPhillips"); and
WHEREAS, by letter dated May 1, 2012, ConocoPhillips requested the City's consent to
transfer the Pipeline Franchise Agreement from ConocoPhillips to Phillips 66 Pipeline
LLC ("Phillips 66"); and
WHEREAS, upon a comprehensive review of the financial stability and operational
experience of Phillips 66, the City Council finds that Phillips 66 satisfies the transfer
requirements and criteria set forth in the Pipeline Franchise Agreement and that the
change in control of the franchise is in the best interests of the public.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande does hereby consent to the transfer and change in control of the Pipeline
Franchise Agreement from ConocoPhillips to Philips 66, subject to the following
requirements:
1. Phillips 66 shall agree in writing to be bound by all terms and conditions of the
Pipeline Franchise Agreement and shall comply with all City rules, regulations and
policies.
2. Phillips 66 shall pay to the City a transfer fee in the amount of twenty thousand
dollars ($20,000) to defer all costs and expenses incurred by the City in reviewing
the transaction, and in processing the necessary paperwork related to the transfer
and change in control of the franchise.
On motion of Council Member Guthrie, seconded by Council Member Costello, and on
the following roll call vote, to wit:
AYES: Council Members Guthrie, Costello, Ray, Brown, and Mayor Ferrara
NOES: None
ABSENT: None
The foregoing Resolution was passed and adopted this 10th day of July 2012.
RESOLUTION NO. L4L-170
PAGE 2
TONY FE , MAYOR
ATTEST:
A
KELL / ETMORE, CI CL-,""K /
APPROVED AS TO CONTENT:
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STE N ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIII(OTHY J C MEL, CITY ATTORNEY
OFFICIAL CERTIFICATION
I, KITTY NORTON, Deputy City Clerk of the City of Arroyo Grande, County of
San Luis Obispo, State of California, do hereby certify under penalty of perjury,
that Resolution No. 4470 is a true, full, and correct copy of said Resolution
passed and adopted at a regular meeting of the City Council/Successor Agency
to the Dissolved Arroyo Grande Redevelopment Agency of the City of Arroyo
Grande on the 10th day of July 2012.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 11th
day of July 2012.
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KITTY N r1 TON, DEPUTY CITY CLERK
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