Item - 2021.IE22.14

The Infrastructure and Environment Committee recommends that:  

1. City Council delegate authority to the General Manager, Transportation Services, to negotiate, enter into and execute, in consultation with the local Councillor, on behalf of the City a Pipeline Crossing Agreement with Imperial Oil Limited  to authorize the construction, installation, maintenance and operation of an oil pipeline within City of Toronto public highways, and incorporating the terms as set out in this report from the General Manager, Transportation Services, and such other terms and conditions as may be satisfactory to the General Manager, Transportation services and in a form satisfactory to the City Solicitor.

2. City Council delegate standing authority to the General Manager, Transportation Services to negotiate, enter into and execute on behalf on the City any Pipeline Crossing Agreement, based on the standard form agreement currently used by staff, to construct, install, maintain and operate oil pipelines and ancillary plants by pipeline companies in the City of Toronto public highways, including, without limitation, any renewals, extensions or subsequent amendments to a Pipeline Crossing Agreement, on terms and conditions satisfactory to the General Manager, Transportation Services, in consultation with the local Councillor, and in a form satisfactory to the City Solicitor subject to the following condition:

a. any variation from the City's standard form Pipeline Crossing Agreement, or any subsequent amendment, shall not materially impact the potential liability of the City.

3. City Council authorize and direct the appropriate City officials to take the necessary action to implement Council's decision, including the introduction in Council of any Bills that may be required.

4. City Council delegate authority to the General Manager, Transportation Services, in consultation with the local Councillor, to consent to any transfer of assignment under any Pipeline Crossing Agreement where, after consulting with the Chief Financial Officer and Treasurer, it is determined that there is no financial impact of the proposed change to the City, and all provisions of the Pipeline Crossing Agreement continue to be in force and effect, such delegation to include authority to negotiate and execute an assignment agreement where deemed necessary by the City Solicitor on terms and conditions substantially similar to those described in the report (May 25, 2021) from the General Manager, Transportation Services and on such other terms and conditions satisfactory to the General Manager, Transportation Services and in a form satisfactory to the City Solicitor.

5. City Council request the General Manager, Transportation Services to inform Imperial Oil Limited of the City's commitment to its TransformTO strategy and becoming net zero by 2050 or sooner.

This report requests authorization of a Pipeline Crossing Agreement between Imperial Oil Limited ("Imperial Oil") and the City of Toronto to replace and maintain their pipeline within the City of Toronto public right-of-way in Etobicoke Centre (Ward 2), Etobicoke North (Ward 1), Humber River Black Creek (Ward 7), and York Centre (Ward 6).

In addition, this report requests standing delegated authority for the General Manager of Transportation Services to negotiate, enter into, and sign Municipal Pipeline Crossing Agreements which will be based on an approved form.

Transportation Services has reviewed an application from Imperial Oil for the replacement, operation, and maintenance of its services within the public highways situated within the City of Toronto and have no objections to the replacement of portions of the pipeline.