To: Honorable Mayor and Members of City Council
From: Phil Brun, Utilities Director
Prepared By: Michael J. Hether, Senior Civil Engineer
TITLE:
Title
Water Transmission Main Improvements near Stanly Lane
LABEL
RECOMMENDED ACTION:
Recommendation
Authorize the Utilities Director to execute a Reimbursement Agreement with Pacific Gas and Electric (“PG&E”), for PG&E to reimburse a portion of the City’s costs of rehabilitating a water transmission pipeline at 1100 Stanly Lane, and determine that the project is exempt from CEQA.
Body
DISCUSSION:
In April 2017, Pacific Gas and Electric (PG&E) informed the City of their intent to complete a project involving installation of a new natural gas regulator station located adjacent to the City’s thirty-six inch water transmission main at 1100 Stanly Lane, both of which are mutually acknowledged as critical facilities. PG&E’s project included installation of a new gas regulator station, decommissioning of an antiquated regulator station, as well as installation of new gas pipeline crossings of the City’s existing thirty-six inch water transmission main.
As part of the interagency coordination, City staff informed PG&E of the significance of the City’s water transmission main and worked with PG&E to identify short and long-term measures to preserve City assets. The short-term measures identified and executed to facilitate their construction schedule included ensuring adequate spacing between gas and water facilities (several feet between gas-water pipeline crossings), and underground placement which involved installation of the new gas pipeline crossing beneath the City’s transmission water main. The long-term measure included negotiation of an interagency reimbursement agreement which would assist the City in making water transmission main improvements, thereby reducing the likelihood of catastrophic failure of the City’s transmission water main.
In August 2017, PG&E completed their project and City staff began negotiation of the reimbursement agreement with PG&E, with each agency acknowledging the mutual benefit of transmission water main improvements in the immediate vicinity of the newly installed regulator station. Accordingly, the agreement is structured to ensure PG&E pays a fair share proportionate cost of the transmission water main improvements.
In August 2018, the City and PG&E reached an agreement whereby PG&E would reimburse the City for its fair share proportionate cost (not to exceed $180,000) of transmission water main improvements in the immediate vicinity of the newly installed regulator station.
Upon execution of the agreement, City staff intends to design and install a new thirty-six inch water main extending several hundred feet north and south of PG&E’s newly installed regulator station, thereby reducing the likelihood of a transmission water main failure in the vicinity of the newly installed regulator station. The estimated cost of the project is $500,000.
City staff intends to complete a design and return for City Council approval at the time of award for a construction contract.
FINANCIAL IMPACTS:
There are no direct financial impacts associated with this action. City staff intends to complete design and return to City Council to obtain approval for award of the construction contract for which financial impacts will be described. In addition to the $180,000 in PG&E reimbursement, there is currently $320,000 of Water Enterprise Funds budgeted in the Capital Improvement Program for this Project.
CEQA:
City staff recommends that the City Council determine that the Recommended Action is exempt from CEQA pursuant to CEQA Guidelines Section 15301(b), which exempts the repair and maintenance of existing publicly-owned utilities.
DOCUMENTS ATTACHED:
ATCH 1: Reimbursement Agreement with Pacific Gas and Electric
NOTIFICATION:
None