CC 2015-04-14_11a SoCalGas Pipeline Safety Project Presentation�pRROyO
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INCORPORATED 9
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MEMORANDUM
1k JULY 10, 1911
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ItIFORN\
TO: CITY COUNCIL
FROM: GEOFF ENGLISH, PUBLIC WORKS DIRECTORe�;r�
SUBJECT: PRESENTATION ON SOUTHERN CALIFORNIA GAS COMPANY
PIPELINE SAFETY ENHANCEMENT PROJECT LINE REPLACEMENT
ROUTING
DATE: APRIL 14, 2015
RECOMMENDATION:
It is recommended the City Council receive and comment on a presentation from
Southern California Gas Company staff about the proposed Pipeline Safety
Enhancement project and replacement line routing.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There are no financial impacts of the proposed recommendations. All project expenses
will be paid by Southern California Gas Company (SoCalGas). In addition, SoCalGas
will pay for City Inspection services for this project.
BACKGROUND:
Following the 2010 natural gas pipeline rupture in San Bruno, the California Public
Utilities Commission (CPUC) ordered the State's four natural gas transmission pipeline
operators — Pacific Gas & Electric, Southwest Gas and San Diego Gas & Electric, as
well as Southern California Gas Company -- to develop plans to replace or pressure test
all natural gas transmission pipelines that have not been tested to modern standards.
The intent was to adopt new safety and reliability regulations for natural gas pipelines,
based upon lessons learned from the 2010 San Bruno incident.
In response, SoCalGas submitted a Pipeline Safety Enhancement Plan (PSEP) to
implement the directives of the Commission to the CPUC. The SoCalGas plan was
approved by the CPUC in June 2014. The approved plan is intended to enhance
SoCalGas' pipeline system safety. This work is part of a system -wide effort to further
enhance the safety of pipelines throughout the State. The CPUC approved plan
identifies various SoCalGas pipeline sections throughout the statewide system that
have not been pressure- tested, or for which there is no record of a pressure test, and
requires that they be pressure- tested or replaced.
On February 10, 2015, SoCalGas made a presentation to the City Council at which time
information was presented about the hyrdo- testing portion of the PSEP within the
Item 11.a. - Page 1
CITY COUNCIL
SOUTHERN CALIFORNIA GAS PI NE SAFETY PROJECT LINE REPLACEMENT
ROUTING
APRIL 14, 2015
PAGE 2
ANALYSIS OF ISSUES:
SoCalGas will make a presentation to the City Council on the proposed routing for t
line replacement portion of the PSEP and has provided the following information. I
Item 11.a. - Page 2
CITY COUNCIL
SOUTHERN CALIFORNIA GAS PIPELNE SAFETY PROJECT LINE REPLACEMENT
ROUTING
APRIL 14, 2015
PAGE 3
A full description of the project provided by SoCalGas and the project routing is
attached (Attachment #1) and will be discussed by representatives during the
presentation.
SoCalGas currently has a Franchise Agreement with the City (Attachment #2), which
grants SoCalGas the right to lay and use pipes and appurtenances for transmitting and
distributing gas under, along, across or upon public streets. In exchange, SoCalGas
pays the City a statutorily proscribed fee set by the Franchise Act of 1937, of two
percent of SoCalGas' gross annual receipts arising from the use of the franchise but no
less than one percent of gross annual receipts derived from the sale of gas within City
limits.
The Franchise Agreement requires SoCalGas to construct all pipe lines in accordance
with all rules and regulations of the City. SoCalGas will be required to obtain
Encroachment Permits from the City. The Franchise Agreement also contains language
giving the City Engineer authority to approve plans showing the location of pipes.
Further, the Franchise Agreement requires SoCalGas to pay the costs of all repairs to
public property made necessary by any operation of SoCalGas.
City staff had previously recommended the following conditions and mitigations for the
impacts of the hydro- testing portion of the SoCalGas project and recommends that the
same conditions apply to the line replacement portion:
1. Secure a separate encroachment permit from the City of Arroyo Grande, with all
necessary attachments, including construction plans, traffic control plans, public
outreach efforts and emergency contact information. Per the Franchise
Agreement between the City and SoCalGas, the City Engineer has authority to
approve the construction plans.
2. Reimburse the City of Arroyo Grande $1,394 for the cost to purchase a Caltrans
encroachment permit for the Brisco Undercrossing paving project. (This actual
financial impact resulted when So Cal Gas informed the City previously about the
routing of the project under the Brisco underpass. Paving work scheduled for
the summer of 2014 was canceled in anticipation of the trenching work to be
performed by SoCalGas. A new Caltrans encroachment permit will be required
at an additional cost.)
3. Meet all City standards for construction in the public right of way, including trench
repair requirements along with full -lane width paving for any disturbed area road
sections.
4. Confirmation of environmental impact determination through a California
Environmental Quality Act (CEQA) review process, or arrangement of an
Item 11.a. - Page 3
CITY COUNCIL
SOUTHERN CALIFORNIA GAS PIPELNE SAFETY PROJECT LINE REPLACEMENT
ROUTING
APRIL 14, 2015
PAGE 4
environmental review process with the City of Arroyo Grande serving as the lead
agency, funded by SoCalGas. (According to SoCalGas, environmental review
has been completed, however, CEQA does not apply to the project because the
proposed activity is either statutorily exempt pursuant to Public Resources Code
§21080.21 or categorically exempt pursuant to either /or §15301 (Class 1),
§15302 (Class 2) and §15304 (Class 4) of the State CEQA Guidelines.)
5. Fund the cost of Y2 day inspection services for a City hired Inspector on all active
days of work within the City boundaries.
SoCalGas has agreed to the above stated conditions. Staff also explored the potential
opportunity to install "purple pipe" for reclaimed water in the same or adjacent trench. In
accordance with the agreement between SoCalGas and the CPUC for the
administration of the PSEP program, project enhancements are not allowed with this
project. According to SoCalGas, only testing and remediation of the lines to assure the
public safety are permitted expenses.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
• Provide additional conditions to SoCalGas for the proposed Pipeline Safety
Enhancement Plan project;
• Direct SoCalGas to provide additional options for routing of the line replacement
portion of the project;
• Provide direction to staff.
ADVANTAGES:
This project will improve the safety and reliability of the natural gas pipelines routed
through the City of Arroyo Grande.
DISADVANTAGES:
This project will cause temporary traffic disruptions for Arroyo Grande motorists.
ENVIRONMENTAL REVIEW:
SoCalGas will be responsible for confirmation of compliance with California
Environmental Quality Act (CEQA) and must pay for the preparation of the appropriate
environmental compliance documentation prior to issuance of the City of Arroyo Grande
Encroachment permit.
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted at City Hall on Thursday, April 9, 2015. The agenda and staff
report was posted on the City's website on Friday, April 10, 2015. No public comments
were received as of the time of preparation of this report.
Item 11.a. - Page 4
CITY COUNCIL
SOUTHERN CALIFORNIA GAS PIPELNE SAFETY PROJECT LINE REPLACEMENT
ROUTING
APRIL 14, 2015
PAGE 5
Attachments:
1. ROUTING AND PROJECT DESCRIPTION (Provided by SoCalGas)
2. Ordinance No. 59- Franchise Agreement
Item 1 1.a. - Page 5
ATTACHMENT 1
SoCalGas pipeline replacement in Arroyo Grande, 2016
Southern California Gas Company has identified a natural gas transmission pipeline in the City of Arroyo Grande
that needs to be replaced by the directive of the California Public Utility Commission (CPUC). The Pipeline Safety
Enhancement Plan (PSEP) instituted by the CPUC is intended to ensure the public safety concerning all natural gas
transmission pipelines, regardless of the operating history of the line. This pipeline in Arroyo Grande, which has an
excellent operating history, will need to be replaced because of its age.
The new 10 inch pipeline will begin near the intersection of Rodeo Dr. and Branch St. and end near the intersection
of Valley Rd. and Los Berros Rd. The selected route for this new line has been chosen to minimize the impact to the
community (see attached image). Underground boring techniques are being used to minimize the traffic congestion
at major intersections (N. Halcyon Rd and El Camino Real as well as N. Halcyon Rd. and E. Grand Ave.). Other
routes for the new pipeline were considered (e.g. along Branch St., Traffic Way and El Camino Real), but were
ultimately discarded in favor of the route shown.
Construction may begin in the less populated areas of the route early in 2016, where work along N. Halcyon Rd will
not begin before July 2016. A limited, moving, construction zone will ensure that the construction duration in each
block will be as short as possible. SoCalGas will be working closely with Arroyo Grande City Inspectors to ensure
the safety of the public during construction.
SoCalGas will be notifying nearby residents/businesses of the construction work via an early public outreach
campaign to raise awareness. The safety of our customers, our employees, and the communities we serve is our
highest priority.
For more information regarding SoCalGas' Pipeline Safety Enhancement Plan, please visit
http:// www .socalgas.com /safet�/12ii2eline- safety- enhancement -plan/
Item 11.a. - Page 6
,OM- .
: ATTACHMENT 2
ORDINANCE NO. - -- - -- f� .....................
AN ORDINANCE OF THE CITY OF ............. ARAOYO „_GRANDE
GRANTING TO ............... SANQ_.tlAkA ...GAS
... CAM FAiy�........-__
A CORPORATION, THE RIGHT, PRIVILEGE AND FRANCHISE TO LAY AND USE PIPES
AND APPURTENANCES FOR TRANSMITTING AND DISTRIBUTING GAS FOR ANY AND
ALL PURPOSES UNDER, ALONG, ACROSS OR UPON THE PUBLIC' STREETS, WAYS,
ALLEYS AND PLACES, AS THE SAME NOW OR MAY HEREAFTER
EXIST, WITHIN SAID MUNICIPALITY.
Council
The - CULL- YL.. ........ of the City of ....... Arroyo-Grande ................................... does ordain Be follows :.
SECTION ONE
Whenever in this ordinance the words or phrases hereinafter in thla section defined are used,
they shall have the respective meanings assigned to them in the following definitions (unless, in the
given instance, the context wherein they are used shail, clearly import a different meaning)
(a) The word "Grantee” shall mean the corporation to which the franchise contemplated in
this ordinance is granted and its lawful successors or assigns;
(b) The word "City„ shall mean the City. of ......... Ar. roY. a... Qraw1e. ........... _ ........................... _....
a municipal corporation of the State of California, in its present incorporated .form or in any
later reorganized, consolidated or reincorporated form;
(c) The word "streets" shall mean the public streets, ways, alleys and places as the same now
or may hereafter exist within said City;
(d) The word "Engineer" shall mean the..S1.1R9T1rLtEIIdent ... DS ... * ree.ts....Of the City;
(e) The word "Gas" shall mean natural or manufactured gas, or a mixture of natural and
manufactured gas;
(f) The phrase "Pipes and Appurtenances" shall mean pipe, pipeline, main, service, trap,'
vent, vault, manhole, meter, gauge, regulator, valve, conduit, appliance, attachment, appurte-
nance and any other property located or to be'located in, upon, along, across, under or over the
streets of the City, and used or useful in the transmitting and /or distribution of gas.
(g) The phrase "lay and use" ahall mean to lay, construct, erect, install, operate, maintain,
use, repair, replace, or remove.
SECTION TWO
That the right, privilege.and franchise, subject to each and all of the terms and conditions con-
tamed in this ordinance, and pursuant to the Provisions of the "Franchise Act of 1937," be and the
same is hereby granted to........ ............................ ...... ... _...........................
...... ,........ ............. ........................._....._...............,..............._ _............................., a corporation
organized and existing under and by virtue of the laws of the State of California, herein referred to
as the "Grantee' -', to- lay.and use pipes and, appurtenances. for. ,tranarritting. and.diatributing gas for
any and all purposea, under, along, across or upon the streets) of the City, for an indeterminate term
or period from and after the effective date hereof, that is to say, this franchise shall endure in full
force and effect until the same shall, with the consent of the Railroad Commission of the State of
California, be voluntarily surrendered or abandoned by its possessor, or until the State of California
or some municipal or public corporation thereunto duly authorized by law shall purchase by volun-
tary agreement or shall condemn and take under the power of eminent domain, all property actually
used and useful in the exercise of this franchise, and - situate within the territorial limits of the
State, municipal or public corporation purchasing or condemning such property, or until this fran=
chile shall be forfeited for non - compliance with its terms by the posaeaaor thereof.
SECTION THREE
The Grantee shall pay to the City at the times hereinafter specified, in lawful money of the
United States, a sum annually which shall be equivalent to two per cent (27) of the gross annual
receipts of grantee arising from the use, operation or possession of. said franchise; provided, how-
ever, that such payment shall in no event be less than one per cent (1 6) of the gross annual-receipts
of the grantee derived from the sale of gas within the limits of the City under this franchise.
___ Item 11.a. - Page 7
The grantee of this franchise shall file with the Clerk of the City within three (3) months after
the expiration of the calendar year, or fractional calendar year, following the date of the grant of
this franchise, and within three (3) months after the expiration of each and every calendar. year
thereafter, a duly verified statement showing in detail the total gross receipts of the grantee, its.
successors or assigns, during the preceding calendar -year, or such fractional calendar year, from.
the sale of the utility service within the City for 'which this franchise is granted. It shall be the duty
of the grantee to pay to the City within. flfteen (16) days after the time for filing such statement,
in lawful money of the United States, the specified percentage of its groea receipts for the calendar
year, or such fractional calendar year, covered by such statement. Any neglect, omisslon or refusal'
by said grantee to file ouch verified statement, or to pay said percentage, at the times or in the
manner hereinbefore provided, shall be grounds for the declaration of a fo :eit:;re of this franchise-
and of all rights thereunder,
SECTION FOUR
This grant is made in lieu of all other franchises, rights, or.privilegcs owned by the grantee,
or by any successor of the grantee to any rights under this franchise, for transmitting and distrib-
uting gas within the limits of the City, as said limits now or may hereafter exist, and the acceptance
of the franchise hereby granted shall operate as an abandonment of all such franchises, rights and--
privileges within the limits of this City, as ouch limits now or may hereafter exist, in lieu of which:
this franchiso is granted.
SECTION FIVE
The franchise granted hereunder shall not become'effective until written acceptance thereof
shall have been filed by the grantee thereof with the Clerk of the City. When so filed, such accept-
once shall constitute a continuing agreement of the grantee that if and when the City shall there-
after annex or consolidate with, additional territory, any and all franchise rights and privileges
owned by the grantee therein, except the franchise• derived under the aforesaid Constitutional pro-
vision, shall likewise be deemed to be abandoned within the limits of such territory.
SECTION SIX
The franchise granted hereunder shall not in any way or to any extent impair or affect the right
of the City to acquire the property of the grantee hereof either by purchase or through the exercise'
of the right of eminent domain, and nothing herein contained shall be'construed to contract away
or to modify or abridge, either for a term or in perpetuity, the City's right of eminent domain in
respect to the grantee or any public utility. Nor shall this franchise ever be given any value before
any court or other public authority in any proceeding of any character In excess of the coat to the '
grantee of the necessary publication and any other sum paid by it to the City therefor at the time-
of the acquisition thereof.
SECTION SEVEN
The grantee of this franchise shall file a bond, running to the City, with at leasJ6 o g and.,
sufficient sureties, to be approved by the legislative body thereof, in a penal sum of $.. �. +.!!.�!._.....,
conditioned that the grantee shall well and truly observe, fulfill and perform each and every term
and condition of this franchise, and that in case of nny breach of condition of said bond, the whole
amount of the penal sum therein named shall be taken and deemed to be liquidated 'damages and
shall be recoverable from the principal and sureties upon said bond. Said bond shall be filed with- -
the legislative body of the City within five (6) days after the date of the granting of this franchise;',
and in case said bond shall not be so filed, or shall not receive the approval of the legislative body,
this franchise shall be forfeited and any money paid to the City in connection therewith shall like-
wise be forfeited.
SECTION EIGHT
The grantee of this franchise shall
(a) construct, install and maintain..all pipes, and, appurtenances in -accordance - with..and- in-.
conformity with ell of the ordinances, rules and regulations heretofore or hereafter adopted by the
legislative body of this City in the exercise of its police powers and not in conflict with the para-
mount authority of the State of California, and, m to State highways, subject to the provisiona of
general laws relating to the location and maintenance of ouch facilities;
(b) pay to the City, on demand, the cost of all repairs to public property made necessary by
any operations of the grantee under this franchise;
(c) indemnify and hold harmless the City and its officers from any and all liability for dam-
ages proximately resulting from any operations under this franchise;
(d) remove or relocate, without expense to the City, any facilities installed, used and main-
tained under this franchise if and when made necessary by nny lawful change of grade. alignment
or %vidth of any public atrcet, way, alley or place, including the construction of any subway or via-
duct by the City; and
(e) file with the legislative body, of the City, within thirty (30) days after any Bale, transfer,
assignment or lease of this franchise, or any part thereof, or of any of the rights or privileges
granted thereby, written evidence of the same, certified thereto by the grantee or its duly author-
ized officers.
� Warm A l , - Page 8
p
SECTION NINE
. The Engineer shall have power to give the grantee such directions for the location of any pipes
and appurtenances as may be reasonably necessary to avoid sewers, water pipes, conduits or other
structures lawfully in or under the streets; and before the work of constructing any pipes and
appurtenances is commenced, the grantee shall file with said Engineer plans.showing the location
thereof, which shall be subject to the approval of said Engineer (such approval not to be unreason-
ably withheld) ; and all such construction shall be subject to the inspection of amid Engineer and
done to his reasonable satisfaction. All street coverings or openings of traps, vaults, and manholes
shall at all times be kept flush with the surface of 'the streets; provided, however, that vents for
underground-traps, vaults and manholes may extend above the surface of the streets when said vents
are located in parkways, between the curb and the property line.
Where it is necessary to lay any underground pipes through; under or across any portion of
a paved or macadamized street, the same, where practicable and economically reasonable shall be •,
done by a tunnel or bore, so as not to disturb the foundation of such paved or macadam(zod street;
and in the event that the same cannot be so done, such work shall be done under a permit to be
granted by the Engineer upon application therefor.
SECTION TEN
If any portion of any street shall be damaged' by reason of defects in any of the pipes and
appurtenances maintained.or constructed under this grant, or by reason of any other cause arising
from the operation or existence of any pipes and appurtenances constructed or maintained under
this grant, said grantee shall, at its own cost-and expense, immediately repair any such damage and
restore such street, or portion of street, to as good a condition as existed before such defect or other
cause of damage occurred, such work to be done under the direction of the Engineer, and to his
reasonable satisfaction.
SECTION ELEVEN
(a) If the grantee of this franchise shall fall, neglect or refuse to comply with any of the
provisions or conditions hereof, and shall not, within ten (10) days after written demand for com-
pliance, begin the work of compliance, or after such beginning shall not prosecute the same with
due diligence to completion, then the City, by its legislative body, may declare this franchise forfeited.
(b) The City may sue in its own name for the forfeiture of this franchise, in the event of
non - compliance by the grantee, its successors or assigns, with,any of-the conditions thereof.
SECTION TWELVE
The grantee of this franchise shall pay to the City a sum of money sufficient to reimburse it
for all publication expenses incurred by it in connection with the granting of this franchise; such
payment to be made within thirty (30) days after the City shall furnish such grantee with a written
statement of such expenses.
SECTION THIRTEEN
Within ten (10) days after the passage and publication of this ordinance, the grantee shall file
with the City Clerk a written acceptance of the franchise hereby granted, and an agreement to
comply with the terms and conditions hereof.
SECTION FOURTEEN
The City fy 'he adoption this ordinance 1 L 11
T ,. ity Clerk shall certify to e adop. r, ., ,,. „ce ani, slla„ cause the same to be
published once in the.__.. ArroY. Q_. Gr. anc1e ...HErdild..Ke.cQLdeT....:.....
I hereby certify that the foregoing ordinance was adopted by the ........ Q.)..tiY.... _Q.1 191.1._...,_,..._..._.
of the City of ._..._Arroy-o•- _Grande.. on he ... �h._dny of......flCember
...................... . _...,
by the following votes:
Ayes: r.•
� ................... -
Noes:
....... ..i✓` .... .. . . ................ ...............................
. t `
- ....... :_......_ - - . . ........................
City Clerk
Item 11.a. - Page 9
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Item 1 1.a. - Page 10