SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a Master License Agreement with Pedernales Electric Cooperative, Inc. (PEC) to establish the terms under which CapMetro will approve licenses for PEC to cross CapMetro’s railroad right-of-way.
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FISCAL IMPACT:
This action reimburses Capital Metro for expenses incurred.
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Customer ☒ 2. Community
☐ 3. Workforce ☐ 4. Organizational Effectiveness
Strategic Objectives:
☐ 1.1 Safe & Reliable Service ☐1.2 High Quality Customer Experience ☐ 1.3 Accessible System
☒ 2.1 Support Sustainable Regional Growth ☐ 2.2 Become a Carbon Neutral Agency
☒ 2.3 Responsive to Community and Customer Needs ☐ 2.4 Regional Leader in Transit Planning
☐ 3.1 Diversity of Staff ☐ 3.2 Employer of Choice ☐ 3.3 Expand Highly Skilled Workforce
☐ 4.1 Fiscally Responsible and Transparent ☐ 4.2 Culture of Safety ☐ 4.3 State of Good Repair
EXPLANATION OF STRATEGIC ALIGNMENT: The Master License Agreement will establish a cooperative relationship with PEC, a key provider of electrical service in our community, to support sustainable regional growth and provide CapMetro with critical information to benefit its operations.
BUSINESS CASE: CapMetro has granted PEC licenses to cross rail right-of-way on terms similar to this agreement in the past, and the Master License Agreement will solidify these terms and establish a cooperative relationship under which CapMetro will benefit by obtaining important information and expertise from PEC.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval at the Operations, Planning and Safety Committee meeting on December 9, 2024.
EXECUTIVE SUMMARY: The Master License Agreement establishes the terms under which CapMetro will approve licenses for PEC to cross the Giddings-Llano Line right-of-way to install, operate, and maintain electrical distribution facilities at various locations. Under CapMetro’s current procedure, an applicant for a such a license generally must pay annual license fees of $2,500, with a 3.5% annual increase, for a 10-year license. Under the terms of this Master License Agreement, PEC would pay a one-time fee of $5,000 for each license, rather than annual license fees, and the license would be perpetual, subject to certain termination and modification provisions. A permit would also be required for any work performed in the right-of-way. CapMetro has granted PEC licenses under these more favorable terms in limited situations for particular crossings that were critical to PEC’s operations. The Master License Agreement would codify these terms for all future licenses granted to PEC. As consideration for these more favorable terms, PEC would agree to provide important technical information and documentation regarding its operations over CapMetro rail right-of-way. In addition, PEC will consult with and provide expertise to CapMetro regarding electrification and related matters. As with other license agreements, CapMetro’s transit purposes would have priority over PEC’s use in the event of any future conflict.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: Does not apply.
RESPONSIBLE DEPARTMENT: Real Estate
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2024-1158
WHEREAS, Pedernales Electric Cooperative, Inc. (PEC) is a public entity and a key electric service provider in the region;
WHEREAS, CapMetro is the owner of approximately 162 miles of railroad right-of-way, including the track, track support structures, and the real property, in the counties of Bastrop, Burnet, Lee, Llano, Travis, and Williamson, Texas, as more particularly described in a Deed dated May 20, 1998 and recorded in Volume 13187, Page 3118 of the Real Property Records of Travis County, Texas, known as the Giddings-Llano Line;
WHEREAS, to fulfill its mission to provide electric service to the community, PEC has a need to cross the Giddings-Llano Line to install, operate, and maintain electrical distribution facilities at various locations; and
WHEREAS, in exchange for granting PEC licenses to cross the Giddings-Llano Line on particular terms, PEC is willing to provide important technical information, documentation, and expertise to CapMetro that would be beneficial to CapMetro’s operations;
NOW, THEREFORE, BE IT RESOLVED by the CapMetro Board of Directors that the President & CEO, or her designee, is authorized to finalize and execute a Master License Agreement with PEC to establish the terms under which CapMetro will approve licenses for PEC to cross CapMetro’s railroad right-of-way.
____________________ Date: ____________________
Secretary of the Board
Becki Ross