HomeMy WebLinkAboutStaff Report 3.E 11/17/2014DATE: November 17, 2014
Agenda Item #3.3
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan St. — Director, Public Works and Utilities
Leonard Olive — Operations Manager
SUBJECT: Adoption (Second Reading) of an Ordinance Authorizing the City Manager to
Grant Permanent and Temporary Construction Easements to Pacific Gas and
Electric Company for the Purposes of Construction, Re -construction, Operation,
Repair and Maintenance of a Gas Main Pipeline and Related Improvements
Located on the City of Petaluma Airport Property (Assessor's Parcel Numbers:
136-080-004, 136-070-044, 136-060-057, 017-070-009, 017-060-026, and 017-
050-042).
RECOMMENDATION
It is recommended that the City Council Adopt an Ordinance Authorizing the City Manager to
Grant Permanent and Temporary Construction Easements to Pacific Gas and Electric Company
for the Purposes of Construction, Re -construction, Operation, Repair and Maintenance of a Gas
Main Pipeline and Related Improvements Located on the City of Petaluma Airport Property
(Assessor's Parcel Numbers: 136-080-004, 136-070-044, 136-060-057, 017-070-009, 017-060-
026, and 017-050-042).
BACKGROUND
On October 20, 2014, the City Council approved the first reading of an ordinance authorizing the
City Manager to grant permanent and temporary construction easements to Pacific Gas and
Electric Company for the purposes of construction, re -construction, operation, repair and
maintenance of a gas main pipeline and related improvements located on the City of Petaluma
Airport property. The Council approved the ordinance by a vote of 6-0, with Couneilmember
Kearney absent. The recommended action provides for second reading and adoption of the
ordinance. The staff report for the first reading of this item at the October 20, 2014 Council
meeting is provided for further background information.
FINANCIAL IMPACTS
The City will receive $165,000 as consideration for granting these permanent and temporary
easements. Per requirements that apply to sponsors of Federal Aviation Administration Airport
Improvement Program Grants, including the City of Petaluma as a recipient of such finding for
airport improvements, net revenues from real property purchased in part with Federal funds is to
be used for airport planning, development or operating expenses. In addition, as a recipient of
FAA airport improvement funds, the City has provided assurances that revenues generated by the
airport will be used for capital or operating costs of the airport, the local airport system, or other
local facilities which are owned or operated by the owner or operator of the airport and which are
directly and substantially related to the actual airport transportation of passengers or property or
noise mitigation purposes on or off the airport Therefore, due to FAA grant requirements that
limit the use of compensation received for the temporary and permanent easements to airport-
related uses, revenue from this transaction will be directed to the Airport Enterprise Fund.
ATTACHMENTS
1. Ordinance for Permanent and Temporary Construction Easement
2. Staff Report of First Reading from October 20, 2014 City Council Meeting
ORDINANCE NO. N.C.S.
EFFECTIVE DATE
OF ORDINANCE
Attachment 1
Introduced by Seconded by
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO GRANT PERMANENT
AND TEMPORARY CONSTRUCTION EASEMENTS TO PACIFIC GAS AND
ELECTRIC COMPANY (PG&E) FOR THE PURPOSES OF CONSTRUCTION, RE-
CONSTRUCTION, OPERATION, REPAIR AND MAINTENANCE OF A GAS MAIN
PIPELINE AND RELATED IMPROVEMENTS LOCATED ON THE CITY OF
PETALUMA AIRPORT PROPERTY (ASSESSOR'S PARCEL NUMBERS: 136-080-004,
136-070-044,136-060-057, 017-070-009, 017-060-026, AND 017-050-042)
WHEREAS, the City Engineer and City Public Works and Utilities Operations Manager have
reviewed the easement grant deeds and legal descriptions attached to and made a part of this
ordinance as "Exhibit A" and "Exhibit B" and have determined them to be in conformity with
applicable City standards and policies; and
WHEREAS, the granting to the Pacific Gas and Electric Company ("PG&E") of the permanent
and temporary utility easements as described in Exhibits A and B for construction, operations
and maintenance of a gas main pipeline across the City of Petaluma Airport property ("PG&E
Project") has no negative affect on existing or foreseeable land uses or infrastructure on the City
Airport property; and
WHEREAS, in accordance with Section 15301 of the California Environmental Quality Act
("CEQA") Guidelines, CEQA does not apply to any project consisting of the operation, repair,
maintenance, or minor alteration of existing public or private structures, facilities, or mechanical
equipment involving negligible or no expansion of use beyond that existing at the time of the
lead agency's determination, including existing facilities of both investor and publicly -owned
utilities used to provide electric power, natural gas, or other public utility services; and
WHEREAS, in accordance with Section 15302 of the CEQA Guidelines, CEQA does not apply
to any project consisting of the replacement or reconstruction of existing structures and facilities
where the new structure will be located on the same site as the structure replaced and will have
substantially the same purpose and capacity as the structure replaced, including but not limited to
replacement or reconstruction of existing utility systems and/or facilities involving negligible or
no expansion of capacity;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
PETALUMA AS FOLLOWS:
1. The City Council hereby finds that the PG&E Project involving the operation, repair,
maintenance, or minor alteration, replacement or reconstruction of existing public or private
structures, facilities, or mechanical equipment is exempt from CEQA requirements in accordance
with section 15301 and/or 15302 of the CEQA Guidelines.
2. The granting of permanent and temporary utility easements substantially in accordance
with Exhibits A and B which are attached to and made a part of this ordinance is hereby
approved.
3. The City Manager is hereby authorized and directed, upon receipt and clearing of
payment of $165,000 from PG&E as compensation for acquisition of temporary and permanent
gas pipeline easements, and upon approval of authorized representatives of the Federal Aviation
Administration, to sign on behalf of the City utility easement grant deeds substantially in
accordance with Exhibits A and B conveying permanent and temporary utility easements to
Pacific Gas and Electric Company (PG&E) for the construction, operation, access and
maintenance of gas main pipelines within the City Airport property, Assessor's Parcel Numbers:
136-080-004, 136-070-044, 136-060-057, 017-070-009, 017-060-026, AND 017-050-042.
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DATE: October 20, 2014
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan St. John, F.ASCE—Director, Public Works and Utilities
Leonard Olive — Operations Manager
SUBJECT: Introduction (First Reading) of an Ordinance Authorizing the City Manager to
Grant Permanent and Temporary Construction Easements to Pacific Gas and
Electric Company for the Purposes of Construction, Re -construction, Operation,
Repair and Maintenance of a Gas Main Pipeline and Related Improvements
Located on the City of Petaluma Airport Property (Assessor's Parcel Numbers:
136-080-004.136-070-044, 136-060-057, 017-070-0095 017-060-026, and 017-
050-042).
RECOMMENDATION
It is recommended that the City Council Introduce an Ordinance Authorizing the City Manager
to Grant Permanent and Temporary Construction Easements to Pacific Gas and Electric
Company for the Purposes of Construction, Re -construction, Operation, Repair and Maintenance
of a Gas Main Pipeline and Related Improvements Located on the City of Petaluma Airport
Property (Assessor's Parcel Numbers: 136-080-004, 136-070-044, 136-060-057, 017-070-009,
017-060-026, and 017-050-042).
BACKGROUND
As part of the ongoing regional testing and evaluation of their gas main pipelines, Pacific Gas
and Electric Company (PG&E) has identified the existing pipeline traversing along East
Washington Street from N. McDowell Blvd. to and through the Petaluma Airport for priority
replacement. This pipeline will replace one of the two existing gas main pipelines currently
situated on the Airport property.
To arrive at a fair "market value" for the required permanent easements and temporary
construction easements (TCEs), two local MAI certified commercial appraisers were engaged;
one chosen by the City and one chosen by PG&E. PG&E paid the fees incurred by both of the
appraisers. PG&E's appraiser estimated the total value of the required permanent and temporary
easements to be S137,000 based on a 40% toss of &tnetionatity of the underlying land. The City's
appraiser estimated the total value of the required permanent and temporary easements to be
$215.000 based on 100%, or complete loss, of functionality of the underlyi no, land. Subsequent
to receipt of both appraisals, the City Engineer and the Operations Manager met witli PG&E and
negotiated a fair market value of $165,000 based on an 80% loss of functionality of the
underlying land. The negotiated valuation of $165,000 is currently under review by the local
PAA office and is expected to be approved.
The proposed action meets City Council goal: "Create and Implement clear direction on
development and sustainability objectives."
DISCUSSION
Access, construction, and operations easements are required by public utilities for newly
installed and/or relocated equipment and utility infrastructure. By grant of the easements, PG&E
will obtain legal rights from the City to construct, operate and maintain the gas main pipeline. As
required by Section 46 of the City's charter, acquisition, sale or lease of real property valued at
$3,000 or more, including grant of the proposed easements to PG&E, requires adoption of an
ordinance by the City Council. City staff has reviewed the proposed easement locations for
conflicts with existing infrastructure and/or future land use opportunities and does not object to
the location of the easement and the gas main pipeline contained therein. Granting of the
easements and the subsequent installation of a gas main pipeline will not affect existing, nor
foreseeable future land use or infrastructure in the City's property at the Petaluma Airport.
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At the meeting of May 1. 2014. the Aimort Commission took action recommending that the City
of Petalrnra apply to the FAA for permission to convey an easement along the north side of the
runway to PG&E for the purposes of placing a natural gas transmission line..
The grant of the proposed easements qualifies for the exemptions in sections 15301 and 15302 of
the California Environmental Quality Act ("CEQA") Guidelines for operation, repair,
maintenance, minor alteration; replacement or reconstruction of existing structures and facilities,
including existing utility facilities that involve negligible or no expansion of an existing use or
that have substantially the same purpose and capacity of the structure replaced.
FINANCIAL IMPACTS
The City will receive $165,000 as consideration for granting these permanent and temporary
easements. Per requirements that apply to sponsors of Federal Aviation Administration Airport
Improvement Program Grants, including the City of Petaluma as a recipient of such finding for
airport improvements, net revenues from real property purchased in part with Federal funds is to
be used For airport planning, development or operating expenses. In addition, as a recipient of
FAA airport improvement funds, the City has provided assurances that revenues generated by the
airport will be used for capital or operating costs of the airport, the local airport system, or other
local facilities which are owned or operated by the owner or operator of the airport and which are
directly and substantially related to the actual airport transportation of passengers or property or
noise mitigation purposes on or off the airport Therefore, due to FAA grant requirements that
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limit the use of compensation received for the temporary and permanent easements to airport -
related uses, revenue from this transaction will be directed to the Airport Enterprise Fund.
ATTACHMENTS
1. Draft Ordinance
2. Exhibit A— Temporary Construction Easement Deed, Legal Description and Map Exhibit
3. Exhibit B — Permanent Easement Deed, Legal Description, and Survey Documents