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Arroyo Grande sets public hearing on Phillips 66 pipeline franchise after council seeks safety records
Summary
The Arroyo Grande City Council voted Oct. 28 to set a protest/public hearing on a proposed franchise ordinance for Phillips 66 after council members asked staff to produce recent inspection reports, leak-detection and integrity information and to confirm oversight by the Office of the State Fire Marshal.
The Arroyo Grande City Council on Oct. 28 voted to set a public hearing on a proposed franchise ordinance that would renew the city's franchise with Phillips 66, after council members raised safety and inspection concerns about pipelines that run through parts of the city.
Council member Guthrie pressed staff for detailed safety information before the council commits to a renewed franchise. “I have a lot of questions on what they're doing in terms of inspecting these pipelines... What systems are in place to detect leaks or ruptures? ... I'm just not comfortable re upping this contract without knowing any of the safety information involved,” Guthrie said during the discussion.
Assistant City Manager and Public Works Director Bill Robison told the council that Phillips 66 had submitted the company’s annual inspection reports “today” and that the Office of the State Fire Marshal (OSFM) oversees inspection and testing in California and coordinates with Phillips 66 on annual inspections and tests. Robison said staff will coordinate directly with the OSFM and include those documents and third-party compliance feedback in the staff report ahead of the public hearing.
City staff described the franchise agreement as a municipal protection: a written contract that clarifies Phillips 66’s responsibility to maintain pipelines and bear the cost of repairs should leaks or other failures occur. Staff and councilors also discussed the practical limits of city authority: one staff member noted the California Public Utilities Commission (CPUC) has exclusive jurisdiction over certain aspects of pipeline abandonment and removal, which can limit local options for requiring pipe removal if a franchise is not renewed.
Council members emphasized they were not approving a franchise ordinance that night but only initiating the formal steps needed to hold a protest/public hearing and receive supplemental materials. The council’s roll call on the motion to proceed was recorded as unanimous (4–0). Staff said it will return with the OSFM correspondence, Phillips 66 inspection reports, and any additional pipeline integrity information requested by council members.
The council did not adopt the franchise ordinance on Oct. 28; it directed staff to compile inspection reports and related documentation and to report back before or at the public hearing so the council and public have access to independent compliance information.
Details requested by the council included recent inspection dates, pipeline material and age, leak-detection and pressure-monitoring systems, any recorded pressure drops or leaks in the last 10 years, and the city’s liability and maintenance responsibilities under the proposed franchise. Staff confirmed Phillips 66 had provided annual reports and that staff will coordinate with OSFM to corroborate the inspection program.
