HomeMy WebLinkAboutMINUTES - 03012011 - C.43RECOMMENDATION(S):
APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to
execute a contract in an amount of $2,975,000 with Contra Costa Generating Station, LLC,
(a wholly-owned subsidiary of Radback Energy, Inc.) for the period beginning March 1,
2011 and continuing until terminated under the provisions of the contract, to provide design
review, plan check and construction inspection services for the proposed Oakley Generating
Station Power Plant Project.
FISCAL IMPACT:
All County costs incurred related to this contract will be fully recovered through fees
charged to the power plant operator that will oversee construction, Contra Costa Generating
Station, LLC.
BACKGROUND:
The Oakley Generating Station is a proposed thermal electric power plant which is the
subject of an Application for Certification by Radback Energy, Inc., its original proposed
operator, to the California Energy Commission. The site of the proposed power plant is on
21.95
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 03/01/2011 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Jason Crapo,
925-335-1108
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: March 1, 2011
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C.43
To:Board of Supervisors
From:Jason Crapo, County Building Official
Date:March 1, 2011
Contra
Costa
County
Subject:Contract to Provide Building Inspection Services for the Oakley Generating Station
BACKGROUND: (CONT'D)
acres at 6000 Bridgehead Road in northeastern Contra Costa County, within the City of
Oakley. The plant if constructed would be a natural gas- fired, combined-cycle facility with
a nominal generating capacity of 624-megawatts.
The CEC has requested the Department of Conservation and Development (DCD), Building
Inspection Division, to serve as Chief Building Official (CBO) for the Oakley Generating
Station project. The County Building Inspection Division has extensive prior experience
providing building inspection serves for power plant projects, and has served in the capacity
of CBO for previous power plant projects on behalf of the CEC.
The Contra Costa Board of Supervisors on February 8, 2011 authorized DCD to execute a
Memorandum of Understanding (MOU) with the California Energy Commission "For
Design Review, Plan Check, and Construction Inspection of the Oakley Generating Station
Project." The MOU states that, "In the event the California Energy Commission approves
the project," it will issue 'Conditions of Certification' in a formal 'Decision.' The MOU
states, "If the Project is approved, the Decision will require that Radback Energy, Inc.
submit "engineering plans... and other project related information to the CBO for the project
for review and approval, prior to and during construction of the project."
The MOU directs DCD to enter into a contract with the project operator, Radback Energy,
Inc. so that DCD can recover its costs for providing the specified services.
Pursuant to the MOU, DCD is currently proposing to enter into a contract to provide design
review, plan check, and construction inspection services, beginning March 1, 2011, with
Contra Costa Generating Station, LLC. This entity, which DCD now indicates would be the
operator of the proposed generating station if approval is obtained from CEC, is a
wholly-owned subsidiary of Radback Energy, Inc.
A decision by the CEC whether to authorize construction of the proposed power station is
expected approximately May 18, 2011. DCD indicates that the purpose of approving the
proposed contract before action by the CEC, beginning March 1, 2011, for design review,
plan check, and construction inspection services, is to enable Contra Costa Generating
Station, LLC to begin construction of the plant immediately following the CEC decision in
May, if the CEC approves the project. Services under the contract would be provided on an
ongoing basis between March 1, 2011 and through the anticipated date of completion of
construction, at which time commercial operation would begin, after 39 months or
approximately July 1, 2014, according to the CBO.
If the proposed contract between the County Building Official and Contra Costa Generating
Station, LLC, is not approved until after CEC's final decision, construction could not begin
until after July 1, 2011, when new regulations would take effect which could jeopardize the
project, according to the CBO.
CONSEQUENCE OF NEGATIVE ACTION:
If the proposed contract is not approved, DCD will not be able to enter into a contract in the
amount of $2,975,000 with Contra Costa Generating Station, LLC, for design review, plan
check, and construction inspection services for the proposed Oakley Generating Station
Power Plant Project, effective March 1, 2011 for a term not to exceed 39 months.
CHILDREN'S IMPACT STATEMENT:
No impact.