STAFF REPORT TO THE CITY COUNCIL
DATE: Special Meeting of November 9, 2022
TO: The Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer SUBJECT: Pipeline Agreement with Union Pacific including a $174,600 License Fee for the Sycamore Avenue Sewer Trunk Replacement Project RECOMMENDED ACTION:
Approve a Crossing and Longitudinal Pipeline Agreement with Union Pacific (UP) including a $174,600 license fee for the Sycamore Avenue Sewer Replacement Project and authorize the City Manager to sign the Agreement on behalf of the City Council.
FISCAL IMPACT OF RECOMMENDATION:
There are sufficient Sewer Funds in the Adopted FY 22/23 Budget to cover the cost of the license fee.
DISCUSSION:
The Sycamore Avenue Sewer Trunk Replacement Project will replace 5,500 feet of the City’s primary 24-inch trunk sewer with a new 30-inch trunk sewer beginning at Duck Pond Park and ending at the influent intake to the Wastewater Treatment Plant in Pinole. The trunk sewer was constructed in 1972 and has exceeded its useful service life, is deteriorating, and needs to be increased in size to convey the increased flows from future development. The construction cost for the project is estimated to be approximately $14M.
The alignment includes installation of the 30-inch pipeline in UP right of way parallel to and under their railroad tracks prior to entering the Wastewater Treatment Plant in Pinole (Att #1 Location Map). UP is requiring the City enter into a Crossing and Longitudinal Pipeline Agreement to ensure the work is completed in accordance with their requirements, and they be compensated for the permanent use of their property (i.e. the new pipeline) in the amount of $174,600.
The City’s right of way consultant for the project, ARWS, has completed a cursory review of the license fee amount and indicated that it is qualitatively high, but is fairly typical of what they see from UP. ARWS further advises that entering into negotiations with UP in an attempt to reduce the fee amount would be complex and time consuming (up to to 18 months if condemnation is required), especially given their reduced staff; and would be costly given the professional support needed. Given the need to advance the project without delay, staff is therefor recommending the Pipeline Agreement for approval.
ATTACHMENTS:
Location Map
Pipeline Agreement
Financial Impact
Description: Expenditure amount not to exceed $174,600.
Funding Source: Sewer Fund. Fund No. 420-5475-611.90-00 Budget Recap:
Total Estimated cost: $174,600 New Revenue: $
Amount Budgeted: $174,600 Lost Revenue: $
New funding required: $ New Personnel: $
Council Policy Change: Yes No
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