AgdaPkt 2012-04-23 - Laserfiche WebLink

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6.1.G. - Page 2 The easement agreement requires the city to accept liability for the proposed improvements and to indemnify PG&E from claims arising within the easement area, including actions by the city and the public. The agreement also requires the city to maintain insurance coverage that names PG&E as an additionally insured. Maintenance The proposed easement agreement relieves PG&E from any responsibility to maintain the trail. Although PG&E owns the property and the earth berm which will form the foundation of the trail, the agreement stipulates that PG&E has no obligation to maintain this foundation should significant erosion or breach occur. If PG&E decides not to repair the earth berm, should it fail, the city, although not responsible for such repairs to the earth berm, may opt to make the necessary repairs in order to continue providing a public trail. Staff believes that the risk of failure is low and that the risk is far outweighed by the benefit to the public of providing a trail through the proposed easement. If neither party makes repairs to the earth berm or trail, PG&E would be entitled to close the trail to the public. Next Steps Other approvals are needed in addition to the grant of easement from PG&E for this project to move forward. Staff must obtain a permit from the San Francisco Bay Conservation and Development Commission due to the project site's proximity to the Bay. As a regulated agency PG&E must obtain approval from the California Public Utilities Commission (CPUC) prior to authorizing work on its land. ALTERNATIVES Council may choose to direct staff to renegotiate the terms of the easement agreement. Council may also choose not to accept the trail public access easement and direct staff to discontinue securing property rights on PG&E land for the proposed project. Both alternatives would mean the loss of federal grant funds for the project if property rights are not secured by April 30, 2012. FISCAL IMPACT Staff has proposed payment of $1,000.00 to PG&E in return for the trail public access easement based on an appraisal of the easement. By executing the easement agreement and accepting the trail public access easement the city incurs additional liability for activities associated with the use of this land as a public trail resulting in a potential fiscal impact that is difficult to quantify. ENVIRONMENTAL REVIEW As the lead agency, the City of Redwood City has determined that the construction of the Bair Island Bay Trail Improvement Project meets the categorical exemption criteria pursuant to the California Environmental Quality Act Guidelines 14 CCR 15301 (c) Existing Facilities.