CITY OF BOISE. Intermountain Gas (Knife River) Underground License Agreement; Boise

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1 CITY OF BOISE To: FROM: Mayor and Council Amy Snyder, Boise Airport RESOLUTION NUMBER: RES DATE: April 16, 2013 SUBJECT: Airport Intermountain Gas (Knife River) Underground License Agreement; Boise ACTION REQUIRED: Approval of License Agreement with Intermountain Gas for construction and maintenance of an underground natural gas pipeline and appurtenances across Boise Airport property to service privately owned property (Knife River). RECOMMENDATION: Staff recommends approval of License Agreement with Intermountain Gas for construction and maintenance of an underground natural gas pipeline and appurtenances across Boise Airport property to service privately owned property (Knife River). FISCAL IMPACT/BUDGET IMPLICATIONS: One-time fee of $230 based upon appraised value for use as a temporary utility easement. BACKGROUND: Intermountain Gas and Knife River approached the Airport to see if they could cross our property with an underground gas line which would be a shorter and less expensive route than following the public right of way. FAA requires the Airport receive payment for such use since it is not servicing the Airport or our tenants. The use is not permanent. The Airport retains the right to require, with 180 days notice, the licensee abandon the pipeline in place in case we ever need to use the property for other purposes. ATTACHMENTS: One original License Agreement Please Record with Ada County and return electronic copy to Airport

2 RESOLUTION NO. BY THE COUNCIL: CLEGG, EBERLE, JORDAN, MCLEAN, QUINTANA AND THOMSON A RESOLUTION APPROVING AN UNDERGROUND PIPELINE LICENSE AGREEMENT BETWEEN BOISE CITY (DEPARTMENT OF AVIATION) AND INTERMOUNTAIN GAS COMPANY FOR THE USE OF CERTAIN PROPERTY UPON BOISE AIR TERMINAL (GOWEN FIELD); AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AND ATTEST SAID LICENSE AGREEMENT ON BEHALF OF BOISE CITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Intermountain Gas wishes to install an underground pipeline and appurtenances along, upon and under the lands of the Boise Airport; and, WHEREAS, the Director of Aviation recommends approval of said License Agreement granting rights to install said pipeline and appurtenances along, upon and under the lands of the Boise Airport. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF BOISE CITY, IDAHO: Section 1. That the License Agreement, a copy of which is attached hereto marked Exhibit A and made a part hereof by attachment be, and the same hereby is, approved both as to form and content. Section 2. That the Mayor and City Clerk be, and they hereby are, authorized to respectively execute and attest said Agreement for and on behalf of Boise City. Section 3. That this Resolution shall be in full force and effect immediately upon its adoption and approval. APPROVED: ADOPTED by the Council of the City of Boise, Idaho, this day of April, APPROVED by the Mayor of the City of Boise, Idaho this day of April, ATTEST: David H. Bieter MAYOR Debbie Broughton EX-OFFICIO CITY CLERK RES

3 UNDERGROUND PIPELINE LICENSE AGREEMENT THIS UNDERGROUND NATURAL GAS PIPELINE LICENSE is granted this day of, 2013, by City of Boise through its Department of Aviation, hereinafter called Licensor, to Intermountain Gas Company, an Idaho corporation, hereinafter called Licensee. Section 1. In consideration of the mutual covenants hereinafter set forth and for and in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Licensor hereby grants, conveys, and provides to the Licensee, a non-exclusive and revocable license and privilege within and upon the License Area described in Exhibit A, attached hereto and made a part hereof, to construct and maintain an underground natural gas pipeline and appurtenances ( Pipeline ), along, upon and under the lands of the Licensor. Licensor represents and warrants to Licensee that Licensor is the sole and lawful owner of Property. Section 2. Licensee, in accordance with Licensor approval, may, at its sole cost and expense, construct, reconstruct, own, use, operate, maintain, inspect, protect, repair, replace, upgrade, relocate, remove and replace the Pipeline, along, upon and under the License Area, including the disturbance of the surface of the ground and excavation within the License Area, provided that the Licensee shall restore all areas that are altered or damaged as a result of construction or maintenance to their pre-existing condition immediately prior to such construction or maintenance after said construction or maintenance is completed. This License is granted upon the express condition that Licensee will restore and/or cause to be restored the surface of the land above the License Area, including paving, curbs, landscaping and other improvements, to substantially its original condition after each act of installation, construction or maintenance authorized hereunder. Section 3. Licensee may, after coordinating with Licensor s Operations personnel, have entry and access over and across any adjacent real property owned or controlled by Licensor and the License Area for the purpose of carrying out the terms of this License Agreement, provided that such ingress and egress does not interfere with Licensor s improvements or uses. Access is subject to and must comply with Airport Rules and Regulations with regard to access onto the airfield. Boise Airport Rules and Regulations may be found at Furthermore, Licensee shall comply with all reasonable directives and requirements of Licensor during the course of installation and subsequent operation of the Pipeline. Licensee shall install all pipelines at a depth of four feet below the surface of the License Area unless otherwise mandated by federal or other law or unless otherwise agreed upon by the parties. In any case, Licensee shall install the Pipeline with a minimum cover of 24 inches under the existing ground level. Pipeline and feeder lines shall be designed and constructed to withstand maximum anticipated external loading under all existing and subsequently constructed roads, pavements, railroad crossings, runways and taxiways. 1

4 Licensee expressly agrees for itself, its successors and assigns to restrict the height of structures, objects of natural growth and other obstructions to be located as authorized herein on the described land and facilities to such a height so as to comply with Federal Aviation Regulations, Part 77, and with the Boise City Code, whichever is more restrictive, as same may be amended from time to time. Licensee expressly agrees for itself, its successors and assigns, to prevent any use of the described land and facilities which would interfere with or adversely affect the operation or maintenance of the Boise Airport, or otherwise constitute an Airport hazard. Section 4. Licensor reserves the right to cultivate, develop or otherwise use the Property in any way not inconsistent with the License Agreement. However, no building, structure, sidewalk, light pole, deep well, or other obstruction shall be erected or placed by the Licensor within the License Area herein described. Section 5. In the event Licensor, its employees, agents or contractors perform any construction, excavation or other improvements on the Property ( Licensor s Work ), the Licensor will perform due diligence in protecting the License Area and the improvements within the License Area, including but not limited to the Pipeline. Licensor shall be liable to Licensee and shall indemnify and hold harmless Licensee for any damage to the Pipeline or other personal property of Licensee or any bodily injury (including death) caused by or resulting from Licensor s Work, including but not limited to reasonable attorneys fees and costs. The Licensee agrees to repair or pay the Licensor for damage to the Property caused by the Licensee in the exercise of the rights herein granted. Section 6. There is hereby reserved to the Licensor, its successors and assigns, for the use and benefit of the City of Boise and the public, a right of flight for the passage of aircraft in the air space above the surface of the land and facilities herein described, together with the right to cause in said air space such noise, vibrations, and effects as may be inherent in the operation of aircraft, now known or hereafter used for navigation or flight in the air using said air space or landing at, taking off from or operating on the land and/or facilities at the Airport subject to this License or in the vicinity of the License Area. Section 7. Licensee, at its sole cost and expense, agrees to abandon the Pipeline in place at no cost to the Licensor upon written notice from Licensor within one-hundred eighty (180) days prior to the date the abandonment is required. Section 8. This License shall vest in the Licensee no right, title or interest in or to Boise Airport lands and the property of the City, under, along, and across which the Licensee has installed and maintains its pipelines, other than the right to use the same for pipeline purposes as stated herein and subject to the regulations and conditions herein set forth. It is expressly understood that the fee to such lands shall remain in the City of Boise for any and such uses as the City of Boise may deem proper; provided, however, should any proposed use of such lands by the City present a hazard to the pipelines or feeder lines of the Licensee installed under this License, the Licensee shall receive due notice of such proposed use, and shall have a reasonable time to adequately protect its Pipeline or feeder line facilities, or to move its Pipeline or feeder lines subject to Boise Airport approval, at Licensee s sole cost and expense. 2

5 Section 9. BOI shall have the absolute right, without limitation, to make any repairs, alterations and additions to any structures and facilities at the Airport. BOI and the County shall, in the exercise of such right, be free from any and all liability to the Licensee for business damages occasioned during the making of such repairs, alterations and additions, except those occasioned by the sole active negligence of the County, its employees, or agents. The Department shall endeavor to notify the Licensee a minimum of three working days prior to making such repairs, alterations and additions to any structures and facilities which might endanger or otherwise affect the Licensee s pipeline or feeder lines installed pursuant to this License. Section 10. This instrument contains all agreements expressed or implied between the parties herein and shall inure to the benefit of and be binding upon their respective heirs, executors, administrators, lessees, tenants, successors, and assigns. Section 11. Any notice sent hereunder must be in writing and is deemed to have been duly given if personally delivered, sent by nationally recognized overnight courier, or mailed by certified or registered U.S. mail, return receipt requested, to the party s address set forth below. Notice is effective upon receipt or refusal as indicated by the return receipt or other written confirmation by the carrier. Either party may change its address for the purpose of notice hereunder by providing the other party with notice of the new address. To Licensor: To Licensee: City of Boise Boise Airport Property & Contract Administrator 3201 Airport Way, Ste 1000 Boise, ID Telephone: (208) ext. 0 Intermountain Gas Company 555 S. Cole Rd. Boise, ID Telephone: Section 12. Licensor agrees that neither it nor anyone acting by or under the authority of Licensor shall tamper with, make alterations to, or remove, or knowingly permit anyone not authorized by Licensee to tamper with, make alterations to, or remove, any equipment used in connection with the Pipeline except with the prior written consent of Licensee. Section 13. Licensee shall have the right to assign its rights and obligations under this Agreement, to any affiliate, parent or subsidiary, or to a successor utility company that expressly assumes the obligations of Licensee hereunder. This Agreement shall be binding upon and inure to the benefit of Licensor and its successors and assigns, including any future transferees of the Property. Licensee shall notify the Licensor in writing, pursuant to Section 6, of any such assignment. 3

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