Administrative
Report
H.24., File # 23-6512 Meeting Date: 8/15/2023
To: MAYOR AND CITY COUNCIL
From: CAMERON HARDING, COMMUNITY SERVICES DIRECTOR
TITLE
APPROVAL OF THE THIRD AMENDMENT TO THE EASEMENT WITH SOUTHERN CALIFORNIA
GAS COMPANY FOR USE OF A PORTION OF DOMINGUEZ PARK TO PROVIDE FOR FEDERALLY MANDATED PIPELINE INTEGRITY TESTING THROUGH THE COMPANY’S
EXISTING PIPELINE MAINTENANCE FACILITY FOR AN INITIAL FEE PAID TO THE CITY OF $211,500 FOR THE TERM AUGUST 16, 2023 TO MAY 15, 2024 AND AN OPTION TO EXTEND THE
EASEMENT MONTHLY FOR A MAXIMUM OF SIX MONTHS FOR AN ADDITIONAL FEE OF $47,000 PER MONTH FOR THE FIRST THREE EXTENSIONS AND $70,500 PER MONTH FOR
THE FINAL THREE EXTENSIONS
EXECUTIVE SUMMARY
Southern California Gas Company (SCG) holds a 99-year easement that allows SCG to construct and operate a gas pipeline maintenance facility (“Facility”) at the Dominguez Park Dog Park. A First amendment was approved on June 9, 2020, and a second amendment was approved on December 14, 2020, both providing SCG additional time and a temporary easement to complete construction of the maintenance Facility.
The Facility is located in the northeast corner of the large dog section of the Dominguez Park Dog Park. Its location is critical as it allows SCG to conduct federally mandated inspection of its underground pipelines, which is required on at least a seven-year cycle. Prior to the installation of the maintenance facility, the inspections were performed in and along 190th Street and forced significant road closures and street repairs. SCG has requested the Third Amendment to permit for a temporary easement to conduct these inspections.
The terms of the proposed Third Amendment include project commencement on August 16, 2023 with an expiration on May 15, 2024. If necessary, the term could be extended monthly for a maximum of six months, through November 16, 2023. A one-time payment of $211,500 would be made to the City for the initial easement period. If the month-to-month extension is exercised, SCG will pay the City a monthly fee of $47,000 from June 5, 2024 to September 4, 2024, and a monthly fee of $70,500 from September 5, 2024 to December 4, 2024. Additional site preparation work would take place including the installation of temporary fencing; informational signage; swing gates into the dog park area; a dual-entry gate into the Dog Training Area; and a robust public notification plan.
On August 8, 2023, the City Council received a report in its Closed Session Meeting outlining the terms of SCG’s proposed easement amendment. The City Council provided direction on the negotiation of amendment terms. SCG has agreed to the City’s terms. The Third Amendment is
H.24., File # 23-6512 Meeting Date: 8/15/2023
negotiation of amendment terms. SCG has agreed to the City’s terms. The Third Amendment is being drafted accordingly and will be submitted to the City Council as a Blue Folder Item prior to the August 15, 2023 City Council Open Session Meeting for consideration of approval.
BACKGROUND
The City Council approved a 99-year easement to Southern California Gas Company (SCG) at its August 14, 2018 meeting to allow SCG to construct and operate a gas pipeline maintenance facility (“Facility”) at the Dominguez Park Dog Park. A First amendment was approved on June 9, 2020, which extended the term of SCG’s temporary easement related to the construction of the Facility to December 31, 2020. A second amendment was approved on December 14, 2020, further extending the temporary easement to May 31, 2021, at which time construction of the Facility was completed.
The Facility is located in the northeast corner of the large dog section of the Dominguez Park Dog Park. The Facility and enclosures encompass approximately 5,279 square feet, have been properly maintained and have functioned within the park without any concern. The facility’s location is critical, as it allows SCG to conduct federally mandated inspection of its underground pipelines, which is required on at least a seven-year cycle. Previously, these inspections were required to take place on 190th Street, which resulted in significant impacts to the community on a major arterial road. The transition to utilize the Facility for these inspections eliminates this road closure. The scheduled inspection would be the first one completed using the Facility.
The terms of the proposed Third Amendment include the following:
· Commencement on August 16, 2023 and expiration on May 15, 2024. If necessary, the term could be extended monthly for a maximum of six months, through November 16, 2023. · A one-time payment to the City of $211,500. If month-to-month extensions are exercised, SCG will pay the City a monthly fee of $47,000 from June 5, 2024 to September 4, 2024; and a monthly fee of $70,500 from September 5, 2024 to December 4, 2024. · Site preparation, provided by SCG, will include:
o Installation of secured construction fencing to block unauthorized access to project areas.
o Installation of two (2) informational signs on the temporary construction fencing to include detailed project information, SCG’s contact information, and a webpage containing comprehensive information regarding the project. o Installation of two (2) 20’ swing gates on the existing dog park fence to allow SCG’s access into the restricted area.
o Installation of a dual-entry gate into the Dog Training Area. o Provide public notification to all affected properties within a 500-foot radius of the project location at least 14-days prior to commencement of the project. o Provide project information to area emergency personnel including the Redondo Beach Police and Fire Departments.
SCG has agreed to return the site to its current condition, with slight modifications, upon completion of the project. The dual-entry gate into the Dog Training Area as well as the two (2) swing gates on the existing dog park fence will remain, to the benefit of the City to provide enhanced access to both areas.
COORDINATION
Community Services coordinated with Public Works and the City Attorney’s Office to prepare the
H.24., File # 23-6512 Meeting Date: 8/15/2023
Community Services coordinated with Public Works and the City Attorney’s Office to prepare the easement amendment. Stakeholders of the dog park have been informed of the project and have not expressed concern with the temporary impacts to the area.
FISCAL IMPACT
SCG will pay the City a guaranteed one-time fee of $211,500 for the easement amendment. In addition, if month-to-month extensions are exercised, SCG will pay the City a monthly fee of $47,000 for the period June 5, 2024 to September 4, 2024, and a monthly fee of $70,500 for the period September 5, 2024 to December 4, 2024. There are no City expenses associated with SCG’s project.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· SCG Easement, approved August 14, 2018
· First Amendment of SCG Easement, approved June 9, 2020 · Second Amendment of SCG Easement, approved December 14, 2020 · Proposed Third Amendment (forthcoming in Blue Folder) · SCG - Insurance