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EXHIBIT D-2 <br />ENCROACHMENT PERMIT <br />THIS ENCROACHMENT PERMIT (this "Permit"), dated as of , 2009 <br />for reference purposes, is made by and between the CITY AND COUNTY OF <br />SAN FRANCISCO, a municipal corporation ("Permittee"), acting by and through its Public <br />Utilities Commission ("SFPUC"), and the CITY OF REDWOOD CITY, a municipal corporation <br />("City"). <br />RECITALS <br />A. Permittee, acting by and through the SFPUC owns and operates a regional water <br />system that serves San Francisco and twenty-seven (27) wholesale water customers , including <br />City, located in San Mateo, Santa Clara, and Alameda counties in the Bay Area. <br />B. SFPUC has developed a Water System Improvement Program ("WSIP") with the <br />goals of increasing the system's ability to withstand major seismic events and prolonged <br />droughts and to reliably meet future water demands. As part of WSIP, Permittee proposed the <br />Bay Division Pipeline No. 5 Project (the "Project"), which includes, among other <br />improvements, the installation of an additional pipeline within Permittee's right of way, for the <br />purpose of improving the seismic reliability, water delivery, and drought -management goals <br />outlined in WSIP, for the benefit of City and its residents and businesses. <br />C. Construction of the Project is anticipated to involve installation of Permittee's <br />pipelines and related appurtenances in parcels owned by City in which Permittee seeks rights to <br />construct and maintain its pipeline and related appurtenances in connection with the Project. <br />D. Permittee desires City's license to install, operate, and maintain its pipeline and <br />related appurtenances in parcels where Permittee has no current real estate rights to do. <br />NOW, THEREFORE, in consideration of their mutual covenants in this Permit, the <br />parties agree as follows: <br />1. License. City confers to Permittee a nontransferable, nonexclusive, and <br />nonpossessory privilege to enter upon and use those parcels of real property owned by City <br />situated in the County of San Mateo, State of California, each more particularly described in the <br />attached Exhibit A and generally depicted on the attached Exhibit A-1 (such parcels shall be <br />collectively referred to as the "City Owned Parcels"), for the purpose of installing, constructing, <br />operating, inspecting, maintaining, repairing, and replacing water pipelines and related <br />appurtenances owned and operated by Permittee as part of its water enterprise (the "Permitted <br />Improvements"), subject to the terms, conditions, and restrictions stated in this Permit and its <br />incorporated exhibits. This Permit gives Permittee a license only and, notwithstanding anything <br />to the contrary in this Permit, does not constitute a grant by City of any ownership, leasehold, <br />easement, or other property interest or estate whatsoever in any portion of the City Owned <br />Parcels. Permittee's execution of this Permit shall not be deemed a waiver by Permittee of any <br />preexisting real property or other rights Permittee may have to use or occupy the land that is the <br />subject of this Permit. <br />D-2-1 <br />City of Redwood City MOA ver 030910 <br />