STAFF REPORT TO THE CITY COUNCIL. The Mayor and Members of the City Council. Jeff Brown, Interim Public Works Director

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2 STAFF REPORT TO THE CITY COUNCIL DATE: Regular Meeting of September 9, 2014 TO: SUBMITTED BY: SUBJECT: The Mayor and Members of the City Council David Biggs, City Manager Jeff Brown, Interim Public Works Director Pipeline ROW and Inspection by Santa Fe Pacific Pipeline, LP RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager increase funds as part of an Agreement with Santa Fe Pacific Pipeline, LP, for an amount not to exceed an additional $108,000 to provide pipeline ROW protection and inspection services during the construction of a segment of the San Francisco Bay Trail. FISCAL IMPACT OF RECOMMENDATION: The cost of this contract will be funded from STIP-RIP funds as reflected in the Hercules Intermodal Transit Center, Project Funding Plan. DISCUSSION: The City of Hercules is engaged in planning, design, and eventual construction of the Intermodal Transit Center (ITC) Project, a facility that when completed, is to include a train station, regional bus service, and possible ferry service. As an element of the ITC, the City is currently constructing a segment of the San Francisco Bay Trail (Bay Trail Project). Additionally, the Bay Trail Project includes grading and retaining walls necessary for the realignment of fuel oil lines necessary to install additional track in support of the future train station. Santa Fe Pacific Pipeline, LP (SFPP) owns, operates, and maintains one 12 petroleum product pipeline and related appurtenances located in the Union Pacific Railroad ROW that passes through the City. This pipeline is sometimes referred to as the Kinder Morgan pipeline. As the pipeline is in proximity to the work area for the Bay Trail Project and certain temporary and permanent work must occur both prior to and subsequent to the relocation of the pipeline, Kinder Morgan advised the City of additional safety measures that must be undertaken when working within twenty five feet of the pipeline. These measures include; notification when work is within 25 feet of the September 9, 2014

3 pipeline, having a Kinder Morgan representative present during all excavation work within 10 feet of its pipeline, and all excavation within 2 feet of the pipeline must be done by hand. At the February 11, 2014, City Council meeting the Council adopted a resolution authorizing the City Manager to execute an Agreement with SFPP to provide pipeline ROW protection and inspection services during the construction of the San Francisco Bay Trail. The resolution approving the agreement provided for a not-to-exceed amount of $54,000, though the contract did not. As work continues on the Bay Trail Project additional funding is needed to continue with the required inspection services. The subject resolution authorizes the City Manager to increase funds, in an amount not to exceed an additional $108,000 as part of the Agreement with SFPP to continue with the required pipeline ROW protection and inspection services. Total funding authorized upon approval of the attached resolution is $162,000. This level of funding is anticipated to allow for the San Francisco Bay Trail work to be completed. ATTACHMENTS: Attachment 1 Resolution Attachment 2 Contract Financial Impact Description: Increase the amount of funds in the Agreement with SFPP, LP by $108, from STIP-RIP funds account number. Funding Source: STIP-RIP Account Number: Budget Recap: Total Estimated cost: $ 162,000 New Revenue: $ Amount Budgeted: $ 162,000 Lost Revenue: $ New funding required: New Personnel: $ Council Policy Change: Yes No September 9, 2014

4 Attachment 1 RESOLUTION NO. 14- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES AUTHORIZING THE CITY MANAGER TO INCREASE EXPENDATURES IN THE AMOUNT OF $108,000 TO PROVIDE PIPELINE ROW PROTECTION AND INSPECTION SERVICES DURING THE CONSTRUCTION OF THE SAN FRANCISCO BAY TRAIL PROJECT WITH SFPP, LP WHEREAS, the City of Hercules is engaged in planning, design, and eventual construction of the Intermodal Transit Center (ITC) Project, a $76 million facility with train station, regional bus service, and possible ferry service; and WHEREAS, as an element of the ITC, the City is constructing a segment of the San Francisco Bay Trail, Project; and WHEREAS, SFPP owns, operates, and maintains one 12 petroleum product pipeline and related appurtenances located in the Union Pacific Railroad that passes through Hercules, California; and WHEREAS, the pipeline is in proximity to the work area for San Francisco Bay Trail Project and certain temporary and permanent work must occur both prior to and subsequent to the relocation of the pipeline as part of the ITC project, the pipeline operator has advised the City of additional safety measures that must be undertaken; and WHEREAS, at the February 11, 2014 City Council meeting the City Council authorized the Interim City Manager to execute an agreement with SFPP, LP for an amount not to exceed $54,000; and WHEREAS, in the interest of public safety and for pipeline protection, the City desires to increase the expenditures as outlined in the agreement with SFPP in the amount of $108,000 to continue to provide pipeline ROW protection and inspection services during the construction of the San Francisco Bay Trail Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the Council hereby authorizes the City Manager to increase expenditures in the amount of $108,000 to provide pipeline ROW protection and inspection services during the construction of the San Francisco Bay Trail Project for a total amount not to exceed $162,000. The foregoing Resolution was duly and regularly adopted at a meeting of the City Council of the City of Hercules held on the ninth day of September, 2014 by the following vote of the Council: AYES: NOES:

5 ABSTAIN: ABSENT: Myrna L. de Vera, Mayor ATTEST: Margaret S. Roberts, MMC Administrative Services Director/City Clerk

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