California American Water Company Pipeline Easements

1. ADOPT a Resolution determining that the approval of an Easement Purchase Agreement and an Operations Plan and Agreement with California American Water Company for the installation and operation of a water pipeline as part of the Monterey Peninsula Water Supply Program is contained within the scope of the Final EIR/EIS for the Monterey Peninsula Water Supply Project (SCH# 2006101004), and TAMC has reviewed and understood the conditions of that document and has determined that no new environmental analysis is required;
2. APPROVE the Easement Purchase Agreement and Operations Plan and Agreement with California American Water Company regarding a permanent easement and a series of temporary construction easements to install a water pipeline in the TAMC Monterey Branch Line rail right-of-way;
3. AUTHORIZE the Executive Director to execute deeds granting a permanent easement and temporary construction easements in favor of California American Water Company to install a water pipeline in the TAMC Monterey Branch Line rail right-of-way;
4. APPROVE design exceptions to American Railway Engineering and Maintenance-of-Way Association standards requested by California American Water Company; and
5. AUTHORIZE the Executive Director to take such other further actions as may be necessary to fulfill the intent of the of the easements including approvals of future modifications or amendments that do not significantly alter the scope of work, or change the approved easement terms or amounts of compensation, subject to approval by Agency Counsel.

California American Water Company's Monterey Peninsula Water Supply Project was approved by the California Public Utilities Commission (CPUC) on September 13, 2018 (CPUC Decision 18-09-017). As part of the project's implementation, new water pipelines are planned to be installed within Transportation Agency's Monterey Branch Line rail right-of-way from Seaside to Castroville.   This action approves Cal Am's purchase from TAMC of a 20'-25' wide permanent easement in the amount of $693,000, and temporary construction easements to install approximately 50,000' of water pipelines within the Monterey Branch Line rail right-of-way, as detailed below.

TAMC hired the team of Overland, Pacific & Cutler and Smith & Associates to prepare an independent appraisal to estimate the fair market value of the proposed 9.1 mile long Cal Am water pipeline permanent easement and temporary construction easements to facilitate the pipeline installation.  Appraisers inspected the rail right-of-way property and adjacent land uses on October 17, 2018 and prepared an opinion of the market value using contemporary appraisal methodology, which was also reviewed by legal counsel.  The December 18, 2018 appraisal (available upon request) valued the permanent water pipeline easement at $693,000. 

On September 13, 2018, the California Public Utilities Commission certified the Environmental Impact Report/Environmental Impact Statement and issued California American Water Company (Cal Am) a Certificate of Public Convenience and Necessity for the Monterey Peninsula Water Supply project.  The Monterey Peninsula Water Supply Project includes constructing a new desalination plant in Marina and new transmission mains to deliver water to storage facilities in Marina, Seaside, Pacific Grove, and Castroville. 

As part of the water project's implementation, Cal Am water pipelines are planned to be installed within TAMC's Monterey Branch Line rail right-of-way, from Lightfighter Drive in the City of Seaside to Merritt Street in Castroville.  Cal Am requested an easement for the planned water pipelines within the TAMC rail right-of-way (web attachment 4).  TAMC Board approval of the Easement Purchase Agreement (web attachment 1) and the Operations Plan and Agreement (web attachment 2) would authorize the grant to Cal Am of a 20'-25' wide permanent easement and the grant temporary construction easements to install approximately 50,000 feet of water pipelines within the 100' wide Monterey Branch Line rail right-of-way in exchange for annual payments as noted above.  

Prior Environmental Analysis

The entirety of the water supply project was the subject of an extensive environmental analysis, culminating in an EIR/EIS in excess of 2,000 pages.  The installation of a pipeline along portions of the Monterey Branch Line was expressly identified in the EIR/EIS, and impacts of the construction and operation of the pipeline were identified, analyzed, and mitigation measures developed.  The EIR/EIS was certified as prepared in compliance with CEQA by the CPUC in September, 2018. 

The Monterey Branch Line area, which is the subject of the Easement Purchase Agreement and Operations Plan and Agreement, is generally undeveloped open space.  No new activity in the Monterey Branch Line has occurred since the certification of the EIS/EIR.  Pursuant to CEQA, once an EIR has been certified and approved, no further analysis is required unless significant changes to the approved project or to the circumstances under which the approved project will be undertaken, are shown.  No such significant changes have occurred since Project approval.

Exceptions to Design Standards

The pipeline is designed to generally run through the outer 25' of the rail right-of-way with various crossings to optimize both Cal Am operations and preserve TAMC's right-of-way for future rail service.   Cal Am will install the pipeline to meet the American Railway Engineering and Maintenance-of-Way Association design standards with specific spot exceptions to avoid obstructions, which are included in this approval (web attachment 3).  Agency staff reviewed the request for exceptions and concurs with all of the exceptions. Cal Am also requested approval of three underground vaults to accommodate a flow meter, pressure reducing station, and actuated valve, plus one above ground backflow device within the TAMC rail right-of-way near Nashua Road.  Staff also concurs with the locations of the vaults and backflow device. 

None of the proposed exceptions affect the environmental conditions of the Project or preclude TAMC from implementing rail or transit service along the Monterey Branch Line in the future.  Upon completion of the pipeline construction, Cal Am operations staff will assume responsibility for all operations, maintenance and monitoring of the new water pipelines.

1. Easement Purchase Agreement
2. Operations Plan and Agreement 
3.  Request for Design Exceptions
4.  Cal Am Water Pipeline Easement Request