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CITY COUNCIL AGENDA ITEM NO. 31

Meeting Date: November 13, 2007

Subject/Title: Consider a Resolution approving, granting and authorizing the City Manager or designee to execute a Grant of Easement for a private underground gas pipeline to Sunset Exploration, Inc. across a portion of City owned property located on Jennifer Street, north of Sycamore Avenue, south of Sand Creek Road intersecting with Garin Parkway.

Prepared by: Paul Eldredge, Assistant Director of Public Works/Assistant City Engineer

Submitted by: Bailey Grewal, Director of Public Works/City Engineer

RECOMMENDATION
Consider a Resolution approving, granting and authorizing the City Manager or designee to execute a Grant of Easement for a private underground gas pipeline to Sunset Exploration, Inc. across a portion of City owned property located on Jennifer Street, north of Sycamore Avenue, south of Sand Creek Road intersecting with Garin Parkway.

PREVIOUS ACTION
None.

BACKGROUND
Sunset Exploration Company (“Grantee”) has requested an easement from the City within City owned property for the extension of a private underground gas pipeline (“Gas Line”) from an existing gas well to a distribution pipeline east of the gas well location. The existing well is located within Phase II of the approved Subdivision No. 8534, Cedarwood.

The Grant of Easement document that was drafted by the City Attorney’s office requires the Grantee to indemnify the City, provide insurance, install and maintain the Gas Line to industry standards and remove or abandon the improvements and vacate the easement at the request of the City. The Grantee is also required to submit plans to the City for review and obtain a permit prior to any installation, as well as post a cash bond upon execution of this agreement which the City may use for the performance of any of the Grantee’s obligations.

The Grantee will be conditioned and has previously agreed to install under the sidewalk on the north side of Jennifer Street, by means of directionally drilling so none of the existing improvements will be disturbed and to minimize any inconvenience or disruption to the public right-of-way. Additionally the Gas Line will be installed a depth of 25 feet from finished grade to ensure that this private Gas Line does not conflict with any future improvements or maintenance activities.

The City Council is not obligated to approve this Grant of Easement as this action is a discretionary real property transaction.
FISCAL IMPACT
There is no fiscal impact to the City. Sunset Exploration Company, Inc. will be responsible for maintenance of all of the facilities within the easement area. Pursuant to other franchise agreements the City has with public utilities, this Grant of Easement requires the Grantee to compensate the City for the property rights granted in an amount of two percent (2%) of the gross annual receipts which the Grantee currently estimates to be $36,000, which equates to an estimated annual compensation amount to the City of $720, while this Gas Line is in service.

Attachments:
Resolution
Site Map
Grant of Easement

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING, GRANTING AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A GRANT OF EASEMENT FOR A PRIVATE UNDERGROUND GAS PIPELINE TO SUNSET EXPLORATION, INC. ACROSS A PORTION OF CITY OWNED PROPERTY LOCATED ON JENNIFER STREET, NORTH OF SYCAMORE AVENUE, SOUTH OF SAND CREEK ROAD INTERSECTING WITH GARIN PARKWAY.

WHEREAS, Sunset Exploration Company (“Grantee”) has requested an easement from the City within City owned property for the extension of a private underground gas pipeline (“Gas Line”) from an existing gas well to a distribution pipeline east of the gas well location; and

WHEREAS, the existing well is located within Phase II of the approved Subdivision No. 8534, Cedarwood; and

WHEREAS, the Grant of Easement document that was drafted by the City Attorney’s office requires the Grantee to indemnify the City, provide insurance, install and maintain the Gas Line to industry standards and remove or abandon the improvements and vacate the easement at the request of the City; and

WHEREAS, the Grantee is also required to submit plans to the City for review and obtain a permit prior to any installation, as well as post a cash bond upon execution of this agreement which the City may use for the performance of any of the Grantee’s obligations; and

WHEREAS, the Grantee will be conditioned and has previously agreed to install under the sidewalk on the north side of Jennifer Street, by means of directionally drilling so none of the existing improvements will be disturbed and to minimize any inconvenience or disruption to the public right-of-way; and

WHEREAS, the Gas Line will be installed a depth of 25 feet from finished grade to ensure that this private Gas Line does not conflict with any future improvements or maintenance activities.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby approve, grant and authorize the City Manager or designee to execute the Grant of Easement for a private underground gas pipeline to Sunset Exploration, Inc. across a portion of City owned property located on Jennifer Street, north of Sycamore Avenue, south of Sand Creek Road intersecting with Garin Parkway, in the form attached hereto, subject to minor changes approved by the City Manager in consultation with the City Attorney.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 13th day of November 2007 by the following vote:

 
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