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HomeMy WebLinkAboutMINUTES - 11031992 - 2.4 IN THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, STATE OF CALIFORNIA In the Matter of Board of Supervisors Endorsement of Project and Approval of RESOLUTION NO- 92/757 Community Benefits Program for Crockett THE CONTRA COSTA COUNTY BOARD OF SUPERVISORS RESOLVES THAT: Having been notified that an application for certification to the California Energy Commission (CEC) had been made by Energy National, Inc. (ENI ) for a cogeneration project and that a request had been made by members of the Crockett community to provide a mechanism for community input, the Board created the Crockett Advisory Committee (CAC) to involve the community in determining an acceptable community benefit and enhancement program. Since that time there have been many meetings and continuous discussion leading to recommendations from the CAC to the Board on November 3 , 1992. After heating testimony from CAC representatives, representatives of the Applicant ENI and the public, and engaging in additional discussion and negotiation with all members present, a consensus was reached regarding a proposed community benefit and enhancement program for the Crockett area to be incorporated into the CEC approval, conditioning and certification of the project. The Board having received the Committee' s report,.,and all people present, including ENI. and C&H Sugar, providing their input, hereby determines and resolves as follows: A. The Board of Supervisors, based upon the representations. made by representatives of ENI and CAC, endorses the proposed project subject to the certification for operation of the project including all the conditions set forth below in this part A which were agreed to by representatives of ENI before the Board on this date and would be done with CEC project certification: 1. Pay $300,000 per fiscal year to the Crockett Community Foundation, a tax-exempt charity to be formed to receive and disburse funds for the benefit of the Crockett community; payments shall commence in the fiscal year ending June 30, 1996, and shall continue for 30 years escalating at 3% per year; payments shall be made semi- annually on November 10 and May 10, beginning November 10, 1995. 2 . During construction of the project, ingress and egress of construction truck traffic to the project construction site shall be restricted to Pomona and Port Streets or such other routes as may be designated by the County. 3 . Within.six ( 6) months after the commercial operation date of the project, ENI shall complete resurfacing and repair of Pomona and Port Streets, and such other streets designated for use during construction to the extent that such roadways have been affected by use during construction, as finally determined by County. Such resurfacing and repair shall be performed to the standards mandated by the County for roadways similarly impacted. 4. ENI agrees to advance to the Foundation up to $100,000 per year, beginning in 1993 , for any purpose including payment of attorneys' fees in excess of the $15,000 to be paid by Applicant; such advances to be credited against the first annual payment to be made by Applicant to the Foundation. 5 . ENI agrees to pay for and complete an alternative roadway study including feasibility studies as may be required to the County' s satisfaction. The study shall be conducted in cooperation with the Crockett community and the County. 6. ENI agrees to pay attorneys ' fees incurred by the Advisory Committee and in the formation of the Foundation, not to. exceed $15,000. B. Having appeared before the Board on this date, representatives of the Crockett Advisory Committee agreed that they would support the proposed conditions specified in part A and further that the Crockett Chamber of Commerce will support and approve the specified aforementioned ENI commitments regarding community benefits and enhancements as satisfactory. This support will be provided to the CEC by appearance of Ms. Salli Spoon and Ms. Pam Pagni in this regard. C. The CEC should be advised that in connection with the foregoing, the Board, on it own, indicates its commitment and intention to a community benefits program for Crockett and other commitmentsas follows: 1 . To annually dedicate during the project' s operation $200, 000 of project property tax increment subject to any discounted amounts that may result from tax losses due to adoptions of the State budget and related public funding. 2. To commit up to $250,000 of new project property tax increment to enhance law enforcement in the greater Crockett area subject to any discounted amount resulting from any tax losses due to adoptions of the State budget and related public funding. 3 . Establish a community advisory council which shall meet with designated County representatives to obtain input on priorities prior to developing an annual budget proposal and advise the Board of Supervisors on the expenditures from a Board controlled designated fund to serve the said Crockett area separate from any Community Foundation established by ENI and C&H Sugar. If local elections take place for Trustees to oversee a Community Fund, the Trustees could also serve a dual role as the advisory council to the Board of Supervisors. 4. Agree to explore the feasibility of creating a road fee Area of Benefit with C&H Sugar and ENI to acquire funds to construct an alternate access road. 5. The Board is the governing body of the Crockett-Valona Fire Protection District and will enter into an appropriate agreement with ENI for payment to provide adequate fire protection for the portion of the ENI project not in the district. 6 . The Board hereby waives any . annual fees that may be project otherwise required for any ENI franchise facilities located in Crockett public streets exclusive of any fees required for permits and plan checks (which are to be paid) . 7. The Board direcFts its Growth Management and Economic Development Agency and component departments to give urgent priority to review, comment and approval of all aspects of the ENI project subject to County review. D. C&H Sugar appeared before the Board of Supervisors and indicated its commitment of $30, 000 annually for a period of 15 years to be deposited with the Community Foundation for its . use, and C&H Sugar ' s commitment to relocate its corporate offices from Concord to Crockett within its existing buildings or pay $650,000 by December 31, 1997. E. The County will cooperate with the CEC to assure that the conditions referred to above are implemented to assure their achievement. Passed by unanimous vote of the Board members present on this 3rd day of November, 1992 . I hereby certify that the foregoing is a true and correct copy of a resolution entered on the minutes of said Board of Supervisors on the date aforesaid. Witness my hand and the Seal of the Board of Supervisors affixed this 3rd day of November, 1992. h PHIL BATCHELOR, County Administrator and Clerk of the Board of Supervisors By Deputy rk TO: BOARD OF SUPERVISORS .. Contra FROM: Phil Batchelor, County Administrator Costa November 3 19 9 2 County DATE: (GTTq'couvr �r SUBJECT: Community Benefits Program for Proposed Crockett Cogeneration Project SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1. Accept this report and acknowledge the extensive discussions and meetings that have taken place between the Crockett Cogeneration Advisory Committee and the Applicant Energy National, Inc. (ENI ) , the Advisory Committee and the County, and the County and the Applicant regarding a proposed community benefits program. 2 . Consider any recommendations of the Crockett Cogeneration , Advisory Committee. 3 . Consider any proposals by the Applicant, Energy National, Inc. 4. Consider actions to be taken. BACKGROUND On June 16 , 1992 the Board established the Crockett Cogeneration Advisory Committee recognizing the importance of involving the Crockett community in a needs setting and mitigation process concerning the proposed Cogeneration Plant and requested the Committee to provide recommendations back to the Board of Supervisors. Since that time there have been many meetings and continuous discussion involving the Advisory Committee and ENI , the Advisory Committee and the County, and the . County and the ENI regarding a proposed community benefits program for Crockett if the Cogeneration Plant were approved. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON__Noyt-mhar 1, 1992, APPROVED AS RECOMMENDED X— OTHER The Board discussed -all of the above recommendations, took public testimony and adopted Resolution 92/757. See Addendum attached for speakers and Board discussion. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. cc: County Administrator ATTESTED—Novemhe;r 3,—IgA2 PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) BY DEPUTY ` -2- The intention of these discussions has been that if the plant were to be approved by the California Energy Commission, it could produce a "win-win" situation for. the community and the County. The community could benefit from a stream of revenue earmarked for essential public services and public improvements in Crockett not otherwise available. The County could benefit from new property tax increment produced from the plant during a severe recessionary period when essential public protection, health and social services are being threatened throughout the County. Negotiations Between Advisory Committee and ENI We are aware of continuing discussion and negotiation taking place between the Advisory Committee being represented by Morrison Foerster and ENI. A proposed agreement reflecting the results of those negotiations is being prepared and your Advisory Committee is now formulating its recommendations. We understand the major point of disagreement centers around the amount of money from ENI that would go into a Community Foundation with an elected local board and be restricted for expenditure in Crockett. County Commitments for Community Benefits The County Administrator has indicated to the Advisory Committee and ENI our intention to recommend the following regarding the County' s commitment to a community benefits program for Crockett: a. Agree to dedicate $200,000 of county property tax per year subject to the discounted amount resulting from the tax loss due to adoption of the State budget. b. Agree to commit of up to $250,000 of new tax increment to enhance law enforcement in the Crockett area. C. Establish a community advisory council to develop an annual budget proposal and advise the Board of Supervisors on the expenditures from a Board controlled designated fund to serve the Crockett area separate from any Community Foundation established by ENI and C&H Sugar. If a local election took place for Trustees to oversee a Community Fund, that Board could also serve a dual role as the advisory council to the Board of Supervisors. d. Agree to explore the feasibility of creating an Area of Benefit with C&H Sugar and ENI to acquire funds to construct an alternate access road. We believe that due to the extensive amount of effort, discussion and negotiation on this issue, it would be appropriate to consider recommendations from the Advisory Committee; consider any statement from ENI and other testimony prior to considering any actions to be taken. Contact: Scott Tandy 646-4087 cc: County Administrator County Counsel GMEDA ADDENDUM TO BOARD ORDER NOVEMBER 3 , 1992 AGENDA ITEM 2.4 The Board had before it this day a report from the County Administrator recommending certain actions for a community benefits program as a part of the Crockett Cogeneration project. Scott Tandy, Chief Assistant County Administrator, reviewed the activity on this project to date, and noted that the Board is being asked to make recommendations to the State with respect to conditions of approval of the project. Supervisor Schroder inquired if there was any requirement by the Energy Commission or the State to return some benefits of the development of this type to the Community, stating that he had a very strong opposition to the theory of "return to source, " and that he did not wish to set any precedents. County Counsel advised that previously this application had been considered by the California Energy Commission and it had not been approved, and one of reasons was beyond the mitigation that would be required by CEQA to address environmental factors in the area, there was an expression by the Commission staff that there be some sort of additional community, not mitigation, but benefit to the community, such as some additional contribution or something being done by Energy National that would benefit the community beyond that which would otherwise be required to address CEQA mitigations, somewhat like approval of landfill sites, addressing areawide mitigation. The Chair invited public testimony and the following persons appeared to testify: Salli Spoon, P. O. Box 348 Crockett, representing the Crockett Advisory Committee. Jay Gunkelman, 422 Jackson Street, Crockett, member of the Crockett Advisory Committee and President of the Crockett Improvement Association, Ruth Blakeney, 549 Loring Avenue, No. 3 , Crockett, Kathy Kearns, 1644 Lillian, Crockett, Secretary of the Advisory Committee, Steve Roberti, 525 Green Street, Martinez , representing the Central Labor Council, Kent Peterson, 615 First Avenue, Crockett, Frances Dahl, 191 Baldwin Avenue, Crockett, member of the Advisory Committee, John Miller, 881 Loring Avenue, Crockett, representing Energy National, Craig Crossley, 222 Scofield Drive, Moraga, Harold Somerset, 1390 Willow Pass Road, Concord, Chief Executive Officer of C & H Sugar Company, Rod Butler, 23 Baldwin Avenue, Crockett, Director of Crockett Valona Sanitary District, Alicia Anderson, 291 Virginia, Crockett, member of the Board of Directors of the Crockett Improvement Association, Pam Pagni, 138 Bishop Road, Crockett, member of the Crockett Advisory Committee, Cheryl Carroll, 373 Duperu Drive, Crockett, representing the Vista Carquinez Homeowners Association. Board members discussed the matter in some detail, addressing the issues brought forward by those who testified, as well as recommendations by staff. The County Administrator commented that the amount on the table for improvements through mitigation through CEQA and the offer on the table for other benefits is going to be substantial, a multi-million dollar effort that the County will not be in a position to match for that community, that the County' s ability to service the Crockett community in the future becomes more dismal week by week because the County will be losing substantial amounts of taxes that are used to fund the services the County provides, and he therefore recommended that the Board seriously consider the economic conditions facing this County that grow ever more ominous as each day passes. He also suggested that the undergrounding of the utilities and the CEQA improvements are going to help make Crockett more attractive, that the money for the roads will be of great assistance, the money they have offered to put into the community up front is going to be an assist. He suggested that the County must indicate to the Energy Commission the conditions of approval it would like to see in the agreement. Supervisor Powers suggested that a lot of the provisions in the draft agreement are provisions that he felt ought to be recommended to the Energy Commission, such as the structure of the handling of the revenue, and that most of the provisions were agreed upon by the Committee and ENI. The County Administrator suggested that the Board express its intent and let him work with County Counsel and his office to construct an agreement that would be acceptable and follow the intent that the Board is expressing at this time. Supervisor Fanden discussed the differences between what the community wants and what is presently being offered. She urged everybody to work together. Chair McPeak noted the positive benefit of the County facilitating from time to time the dialogue and debate between the Advisory Committee and ENI. Supervisor Powers advised that he wished to defer to community concerns and moved to approve the parameters of the recommendation of the Advisory Committee and directed staff to prepare a letter consistent with the provision in an agreement which could be drafted by County Counsel and the County Administrator. The motion was seconded by Supervisor Fanden. The Board discussed what might happen if the Energy Commission felt that the requests were too high, and what might happen to the project. Supervisor Torlakson advised that he felt this could jeopardize the economics of the project and jobs and the whole tax base. He advised that he was not going to support the motion for the amount suggested by the committee, but would support parts of the motion in terms of background .recommendations. Supervisor Powers suggested taking the elements one by one. Supervisor McPeak moved to amend the motion to $220,000 plus $30,000 from C & H, and 3 per cent CPI. Supervisor Torlakson seconded the amendment. Supervisor Fanden declared that she could not support anything outside of the Committee' s recommendation because they feel that they have already compromised. She suggested the Energy Commission review the figures and make the decision. Supervisor Fanden asked the Chair to recognize Ruth James, a native of Crockett, who discussed that the C & H $30,000 is only for 15 years, and the other is for 30 years. John Miller declared that the $220, 000 would be acceptable, but there are three or four other items to be discussed, including the road, and that his concern is that there be an agreement on each one of them, and that the $220,000 would be agreeable if the rest of the issues are as they have proposed. Pam Pagni advised that the CEC is looking to the Board of Supervisors for recommendation on this. She urged the Board not to sell the community short, declared that she did not feel that ENI would go away if they have to pay more money. Supervisor Powers advised that he agreed with Pam Pagni, and suggested voting down the motion and then going with what the committee requested. The Chair called for a vote on the Amendment. The amendment passed with Supervisors Schroder, Torlakson and McPeak voting for and Supervisor Powers and Fanden voting against. The Board further discussed the amended motion. Supervisor Fanden noted that she would not be supporting the motion because she felt that the Board should go with the recommendations of the Committee. John Miller urged an agreement by all parties before going to the Energy Commission. Supervisor Torlakson commented that this item is very complicated and there are many people present for other items on the agenda, and he suggested that action on the motion on the floor be deferred until after a recess. He suggested that the County Administrator talk to ENI and members of the Advisory Committee and work out a compromise. Sally Spoon commented about the history of the tax guarantee and the fact that the Board' s recommendation is needed by the California Energy Commission. The Chair declared that action on the motion is deferred to later in the day pending a report from the County Administrator that the parties had met and reached an agreement. Later in the day, the County Administrator advised that the parties had met and negotiated as the Board had requested, and had reached an understanding. Following the report of the County Administrator outlining the understanding, and the report of Sandy Skaggs on behalf of ENI with respect to certain aspects of the understanding, the Board adopted Resolution No. 92/757, attached, encompassing the agreements between the Crockett Advisory Committee, the County and ENI, with the understanding that the Advisory Committee agrees to support the agreement, not the project. The Board expressed its appreciation to members of the Advisory Committee for the extended time and effort they have given to this project.