8N Consent 2011 0207 - Laserfiche WebLink

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Kinder Morgan SFPP L.P. Pipeline Agreement • 2 February 7, 2011 An alvsis The original agreement expired on July 1, 200S. Amendment No. 1 extends the agreement term until December 31, 2040, updates the contact information, and makes the following minor changes to the requirements of the agreement: 1. The amendment eliminates the original 55,000 bond requirement and instead requires that SFPP L.P. provide the City with an insurance certificate in the amount of 51,000,000 listing the City as additional insured on an annual basis. 2. The amendment adds language to the agreement that requires operation of the pipelines in accordance with State and Federal laws and the latest safety, inspection and testing methods required by such laws. 3. The amendment modifies the agreement to reflect current law in California governing compensation for the franchise calculated by the California Public Contract Code 6231.5. The subject 10" pipeline conveys fuel from Richmond to the Oakland International Airport and San Francisco International Airport via San Leandro. The line runs along the Union Pacific railroad right of way the northern City Limit line to Davis Street near Carden Street, then Westward along Davis Street, through the City's Water Pollution Control Plant at 3000 Davis Street, and out through a slough to the Oakland Airport. A map is attached. It is most economical for the pipeline operator to continue using the existing pipes. Failure to come to an agreement would necessitate removal of the pipelines and construction of new pipes elsewhere to supply the airports. Previous CiIv Council Action(s) On July 1, 1965, by Resolution No. 65 -107, the City Council approved the Agreement Granting License for a Pipeline Along, In, Under, Through, and Over Certain Public Streets, Ways, Alleys and Public Places within the city of San Leandro. Applicable General Plan Policy 52.03 Coordination of Infrastructure: Coordinate local infrastructure planning with EBMUD, the Oro Lorna Sanitary District, Alameda County, and other service providers to ensure that • infrastructure remains adequate to serve existing and planned development. Fiscal 1 mpact Continuing this agreement and retaining the existing pipelines will require some minor staff costs due to drafting and tracking papenvork and coordinating construction work with the pipeline operator. These costs are expected to be less than 52,000 per year.