R 3865
RESOLUTION NO. 3865
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 UNOCAL CALIFORNIA PIPELINE
COMPANY TO CONOCO PHILLIPS PIPE LINE COMPANY
WHEREAS, On November 9, 1999, the City of Arroyo Grande entered into "An
Agreement Granting to Unocal California Pipeline Company, a California Corporation, a,
Franchise to Construct, Operate, and Maintain Pipe Lines for the Transpiration of Oil,
and Other Specified Materials, in the City of Arroyo Grande, State of California "(the
"Pipeline Franchise Agreement"); and
WHEREAS, by letters dated March l' and June 13, 2005 ConocoPhillips Pipe Line
Company ("ConocoPhillips") advised the City that it had acquired 100% of the stock of
Unocal California Pipeline Company ("Unocap") and that the two Companies had
effectively merged; and
WHEREAS, the sale of Unocap's stock constitutes a transfer of control pursuant to
Article 17B of the Pipeline Franchise.Agreement requiring the City's formal consent; and
WHEREAS, upon a comprehensive review of the financial stability and operational
experience of ConocoPhillips, City staff has concluded that ConocoPhillips satisfies the
general transfer requirements and criteria established under the Pipeline Franchise
Agreement and that the change of control of the franchise is in the best interest 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, subject to the following conditions:
1. ConocoPhillips shall agree to be bound by all requirements in the
Agreement and comply with all City rules, regulations and policies related
to the subject matter of the Agreement.
2. Conoco Phillips shall pay all costs and expenses incurred by the City in
reviewing the transaction, and in processing of all necessary paperwork
related to the transfer of and change in control of the franchise.
On motion of Council Member Arnold, seconded by Council Member Guthrie, and on
the following roll call vote, to wit:
AYES: Council Members Arnold, Guthrie, Dickens, Costello, and Mayor Ferrara
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 26th day of July, 2005.
RESOLUTION NO. 38"5
PAGE 2
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TONv"'F , MAYOR
ATTEST:
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KELL Y'WE~f16RE, CITY CLERK
APPROVED AS TO CONTENT:
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. NADAMS, CITY MANAGER
APPROVED TO FORM:
RESOLUTION NO. 3865
OFFICIAL CERTIFICATION
I, KELLY WETMORE, 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. 3865 is a true, full, and correct copy of said Resolution passed
and adopted at a regular meeting of the City Council of the City of Arroyo Grande
on the 26th day of July 2005.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this '28th
day of July 2005.
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KELL WEtMORE, CITY CLERK