TO: Committee of the Whole - Planning and Public Works
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
Public Works
Aaron Bert
425-556-2786
DEPARTMENT STAFF:
Public Works
Brandon Buehler
Acting Deputy Director
Public Works
Paul Cho
TOSE Manager and Traffic Eng.
Public Works
Patty S. Criddle
Transp. Engineering Supervisor
TITLE:
title
Approval of an Ordinance Executing the Olympic Pipeline Franchise Agreement
OVERVIEW STATEMENT:
recommendation
Public Works recommends Council approve the subject Ordinance to execute a new 10-year franchise with Olympic Pipe Line Company (OPL). The City of Redmond has an existing franchise with OPL that authorizes operation of petroleum pipeline facilities within the City's rights-of-way. The franchise was originally adopted under Ordinance No. 2289 (2006) and has continued on a year-to-year basis since its expiration in 2016.
The proposed ordinance establishes a new ten-year franchise, effective January 1, 2026, with provisions for renewal for an additional ten-years. Continuing under the expired agreement exposes to the City to outdated insurance, environmental, and cost recovery provisions.
Differences between the 2006 agreement and the new agreement include that the updated franchise:
* Increases the fee the franchisee pays to the City. The fee originally started out at $12,000 plus annual CPI increases since 2006 and increases to a $23,000 annual fee in 2026 plus annual CIP increases starting in 2027.
* Strengthens environmental indemnification and increases insurance amounts incurred by franchisee.
o Franchisee is required to have $50M in pollution liability and a $5M umbrella insurance.
Attachment B highlights differences between the 2006 and 2026 Franchise Agreements.
Council is being asked to approve updated terms governing an existing pipeline in City right of way-not to approve new infrastructure.
Similar to the updated Puget Sound Energy franchise agreement, the ordinance itself serves as both t...
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