Title
Recommendation to Authorize the Interim City Manager to Execute a Five-Year Gas Service Operations and Maintenance Agreement for Alameda Point with Pacific Gas and Electric Company in an Amount Not-to-Exceed $550,000, with up to Three One-Year Options to Renew, for a Total Not-to-Exceed $880,000 over Eight Years, Substantially in the Form of the Attached Agreement.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301(b) (Existing Facilities) and 15061(b)(3) (Common Sense Exemption). (Base Reuse and Economic Development 29061822, 29161822)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
Pacific Gas & Electric (PG&E) operates and maintains the existing natural gas distribution system at Alameda Point including a legacy system that was built by the Navy and transferred to the City of Alameda (City) and is still in use. PG&E performs work on the legacy system pursuant to an agreement that expires on May 14, 2026 (2017 Agreement). The proposed new agreement (New Agreement) would allow PG&E to continue to operate and maintain the legacy system for the duration of the new agreement, and extension options included therein, through mid-2034 and be compensated based on a schedule of estimated actual costs for time and materials.
BACKGROUND
The existing natural gas lines constructed by the Navy at Alameda Point were not designed or constructed to PG&E standards and specifications (Legacy Gas Lines). The City took ownership of the Legacy Gas Lines from the Navy in 1997 upon the Navy's decommissioning of the former Naval Air Station Alameda. The Alameda Point Master Infrastructure Plan (MIP) includes the phased replacement of all Navy outdated and substandard utility infrastructure, including the Legacy Gas Lines. When new PG&E facilities are installed, they wi...
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