TO: Members of the City Council
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
Adoption of an Ordinance Executing the Olympic Pipeline Franchise Agreement
a. Ordinance No. XXXX: An Ordinance of the City of Redmond, Washington, Granting Olympic Pipe Line Company LLC, a Delaware Limited Liability Company, its Successors and Assigns a Nonexclusive Franchise to Construct, Operate, Maintain, Remove, Replace, and Repair Pipeline Facilities, Together with Equipment and Appurtenances Thereto, for the Transportation of Petroleum Products within and Through the Franchise Area of the City of Redmond, Providing for Severability and Establishing an Effective Date
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 Continuing under the expired agreement exposes to the City to outdated insurance, environmental, and cost recovery provisions.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 inde...
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