Title
Industrial Gas Pipeline License Agreement with Linde Incorporated (Ordinance S-47994)
Description
Request to authorize the City Manager, or his designee, to execute a non-exclusive, revocable license with Linde Incorporated to construct, install, operate, maintain and use the Public Highways in the City of Phoenix in order to provide industrial gas services in, under, over, and across public rights-of-way in the City, subject to the terms and conditions contained in the license and Phoenix City Code. Also request that the licensee sign the license within 60 days of Council action, or this authorization will expire.
Report
Summary
The license will be for a period of ten years, contain appropriate insurance and indemnification provisions, require a performance bond and a security fund, provide for terms of transfer and revocation, and provide for compensation for the commercial use of public rights-of-way while permitting the City to manage the rights-of-way.
Contract Term
The request is for a ten-year Industrial Gas Services License with an option for two additional five-year renewals.
Financial Impact
There is no financial impact to the City. Per Phoenix City Code Chapter 5A, Licensee will pay to the City an annual fee of 2 percent of the licensee’s gross annual revenues for the network within City limits.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Street Transportation Department.