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Home My WebLink About07. Authorize MOU and Real Property Agreement with PG&E re property in Lafayette Page 1 of 6 Item 7. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: AUGUST 15, 2019 SUBJECT: ADOPT RESOLUTION NO. 2019-053 AUTHORIZING THE GENERAL MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING AND A REAL PROPERTYAGREEMENT WITH PACIFIC, GAS & ELECTRIC COMPANY(PG&E) FOR 3244 ANDREASEN DRIVE, LAFAYETTE (APN 238- 060-021-9) SUBMITTED BY: INITIATING DEPARTMENT: RICK HERNANDEZ, SENIOR RIGHT OF WAY ENGINEERING AND TECHNICAL SERVICES - AGENT PDS - DEVELOPMENT SERVICES - RIGHT OF WAY REVIEWED BY: DANA LAWSON, SENIOR ENGINEER DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES lvv�z�Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE Board approval is required for Real Property Agreements. BACKGROUND PG&E operates a natural gas valve station on Olympic Boulevard in Lafayette. PG&E is in the process of acquiring the property next to the station, 3244 Andreasen Drive, Lafayette, to install upgrades to the station, including inspection facilities. Central San owns a 27-inch diameter sewer that crosses 3244 August 15, 2019 Regular Board Meeting Agenda Packet- Page 107 of 153 Page 2 of 6 Andreasen Drive in an area where PG&E is proposing to cross the sewer with a pipeline that will be used on an occasional basis to insert inspection equipment into their transmission line. Central San staff has requested, and PG&E has agreed, to enter into a Real Property Agreement with Central San in exchange for permission to cross the sewer. Additionally, PG&E has agreed to grant Central San a wider easement, from 12 feet to 20 feet, to meet current easement standards and preserve access to Central San's facilities. PG&E requires California Public Utilities Commission's (CPUC) approval to grant the easement to the Central San. The CPUC approval process can take from three to nine months to complete. In orderto meet project scheduling and the acquisition of real estate, PG&E has proposed to enter into a Memorandum of Understanding whereby Central San grants approval to PG&E at this time and PG&E agrees to grant the easement after CPUC approval. The Grant of Easement will be submitted to the Board for acceptance after CPUC approval. CEQA Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under Central San's CEQA Guidelines Section 15305, since it involves a minor alteration in land use limitations. Approval of this project will establish the Board's independent finding that this project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS The Board could elect to decline or postpone PG&E's request. PG&E could then elect to pursue legal action to obtain the necessary access across Central San's easement. However, this is not recommended because upgrades to the natural gas valve station are intended to improve its reliability and safety, and PG&E has agreed to Central San staff's conditions for protecting the sewer line and for inspection requirements. FINANCIAL IMPACTS PG&E has agreed to reimburse Central San for processing the agreements and for plan review and inspection costs per the current Schedule of Environmental and Development-Related Fees and Charges. Central San will compensate PG&E fair market value for the new easement area which is a CPUC requirement. COMMITTEE RECOMMENDATION This item was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION Adopt the proposed resolution authorizing the General Manager to execute a Memorandum of Understanding and a Real Property Agreement with PG&E for 3244 Andreasen Drive in Lafayette. Strategic Plan Tie-In GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Build external customer relationships and awareness GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to achieve 100%permit compliance in air, water, land, and other regulations, Strategy 2- Strive to August 15, 2019 Regular Board Meeting Agenda Packet- Page 108 of 153 Page 3 of 6 minimize the number of sanitary sewer overflows GOAL FIVE: Maintain a Reliable Infrastructure Strategy 1 - Manage assets optimally throughout their lifecycle, Strategy 3- Protect District personnel and assets from threats and emergencies ATTACHMENTS: 1. MOU between Central San and PG&E 2. Proposed Resolution August 15, 2019 Regular Board Meeting Agenda Packet- Page 109 of 153 Page 4 of 6 ATTACHMENT 1 MEMORANDUM OF UNDERSTANDING(MOU)between Pacific Gas and Electric(PG&E) and Central Contra Costa Sanitary District(Central San) I. PURPOSE &SCOPE The purpose of this MOU is to clearly identify the obligations of each party as they relate to PG&E's purchase of real property located at 3244 Andreasen Drive, Lafayette,California,APN: 238-060-021-9(the "Property"), which is encumbered with a certain right of way and easement owned by Central San, dated April 1, 1981 and recorded in Book 10283 Page 687, Official Records of the County of Contra Costa, State of California (the "Easement"). In particular,this MOU is intended to memorialize: • Central San's intent to grant consent, in the form of a recordable Agreement Relating to Real Property(RPA),for PG&E to cross its Easement on the Property with compatible gas transmission facilities upon PG&E's acquisition of the Property. • PG&E's intent to grant an additional easement to Central San for the purposes of widening their existing Easement to 20 feet upon PG&E's acquisition of the Property. II. BACKGROUND PG&E currently operates a natural gas transmission pipeline that runs from Pittsburg into Walnut Creek, Lafayette, and north to Martinez.This gas line is the primary source of natural gas for Walnut Creek, Alamo, Danville, Lafayette, Moraga, Orinda, and Pleasant Hill. PG&E's purchase of the Property is required to enable the on-going In-Line inspection of this pipeline. Close of escrow on the Property is expected to be completed by August 12, 2019. In order to construct these new facilities, PG&E must cross Central San's existing sewer line which lies within said Easement on the Property. Additionally, Central San seeks to acquire an additional easement to meet current operational standards. III. IT IS MUTUALLY UNDERSTOOD AND AGREED BY AND BETWEEN THE PARTIES THAT: 1. Central San agrees to grant consent to PG&E's occupation of its Easement on the Property as outlined in Exhibit A, RPA, in August 2019. 2. PG&E agrees to amend the existing Grant of Easement for additional width that is non-exclusive surface and exclusive subsurface easement to Central San on the Property upon: August 15, 2019 Regular Board Meeting Agenda Packet- Page 110 of 153 Page 5 of 6 a. Central San to provide an independent appraisal conducted by an appraiser licensed by the Office of Real Estate Appraisers. b. PG&E to file and receive CPUC 851 approval to dispose of property within 3 to 9 months of receipt of acceptable appraisal report and offer of compensation. IV. FUNDING Market Value compensation is only required from Central San for the new encumbrance created by the future Grant of Easement by PG&E. PG&E shall pay the standard fees for Real Property Agreement, application and inspections, per the current Central San ordinance for Environmental and Development- Related Fees and Charges. V. EFFECTIVE DATE AND SIGNATURE This MOU shall be effective upon the signature of PG&E and Central San authorized officials. PG&E and Central San indicate agreement with this MOU by their signatures. Signatures and dates Pacific Gas& Electric Central Contra Costa Sanitary District By: By: Name: James Hernandez Name: Roger S. Bailey Its: Land Acquisition Supervisor Its: General Manager Date: Date: Approved as to form: Kenton L. Alm, Esq. Counsel for the District August 15, 2019 Regular Board Meeting Agenda Packet- Page 111 of 153 Page 6 of 6 ATTACHMENT 2 RESOLUTION NO. 2019- A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT EXECUTING AND RECORDING A REAL PROPERTY AGREEMENT 3244 ANDREASEN DRIVE IN LAFAYETTE (APN: 238-060-021-9) BE IT RESOLVED by the Board of Directors of Central Contra Costa Sanitary District (Central San) as follows: THAT Central San is hereby authorized to execute a Real Property Agreement and a Memorandum of Understanding with the following property owner related to the indicated property: Assessors' Parcel No.: 238-060-021-9 Property Owner(s): Pacific Gas and Electric Company Site Address: 3244 Andreasen Drive, Lafayette THAT the General Manager is hereby authorized to execute the Real Property Agreement and the Memorandum of Understanding for, and on behalf, of Central San; and THAT staff is authorized to record the Real Property Agreement with the office of the Recorder of Contra Costa County. PASSED AND ADOPTED this 15th day of August, 2019, by the Board of Directors of Central San by the following vote: AYES: Members: NOES: Members: ABSENT: Members: David R. Williams President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District August 15, 2019 Regular Board Meeting Agenda Packet- Page 112 of 153