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SFPUC lease pipeline right-of-way to Chevron for 20 years at below-market initial rent and robust protections
Summary
The SFPUC seeks committee approval for a 20-year lease of roughly 11.7 acres and 5.4 miles of pipeline right-of-way to Chevron Pipeline Co. at an initial $12,500 annual rent with CPI inflators, five-year fair-market resets and a $1 million security deposit; the BAO said appraisal supports the rate and the SFPUC commission already approved the transaction.
The San Francisco Public Utilities Commission has approved and the Budget and Finance Committee reviewed a proposed 20-year lease of an existing Chevron pipeline right-of-way near the San Antonio Reservoir in Alameda County.
John Opdieck, director of real estate, described the lease as covering approximately 5.4 miles of pipeline and about 11 acres of fee area, with a first-year base rent of $12,500, CPI inflators and a five-year reset to fair-market rental value. Opdieck said the pipeline has been in place since 1967 and the proposed rent is supported by appraisal data; he noted the lease includes a robust $1,000,000 security deposit (cash or letter of credit) and negotiated protections to protect watershed flora, fauna and equipment. Because the site is in Alameda County, that county processed the CEQA review; Opdieck said the SFPUC approved the transaction at its October meeting and the committee moved the item forward with a recommendation.
