HomeMy WebLinkAboutMINUTES - 12042001 - C.96 '`-
TO: BOARD OF SUPERVISORS "� ' ��''� Contra
,:. Costa
FROM: CARLOS BALTODANO .. °
DIRECTOR, BUILDING INSPECTION "Jy County
DATE: December 4, 2001
SUBJECT: Agreement with Mirant Delta, LLC, for Fees, Compliance
Verification and Building Code Enforcement at Contra Costa Unit
8 Power Project
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)& BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
APPROVE and AUTHORIZE the Director of the Building Inspection to execute an
agreement with the Mirant Delta, LLC, for fees compliance verification and building
code enforcement at Contra Costa Unit 8 Power Project.
FISCAL IMPACT
None. All costs will be reimbursed through fees.
BACKGROUND/REASONS FOR RECOMMENDATIONS
The California Energy commission (CEC) has requested that the-Contra Costa
County Building Inspection Department provide, on behalf of the CEC, design
review, plan check, and construction inspection services at the Contra Costa Unit 8
Power Project. The Unit 8 Power Plant Project was approved by the CEC on May
30, 2001. The project will be a nominal 530-megawatt (MW), natural gas-fire,
combined cycle, combustion turbine power plant located within the existing Contra
Costa Power Plant site complex in Contra Costa County, just north of the city of
Antioch in the unincorporated area of the County.
The Antioch site is on Wilbur Avenue, one mile northeast of Antioch, on the southern
shore of the San Joaquin River at the former Pacific Gas and Electric(PG&E) power
CONTINUED ON ATTACHMENT: X SIGNATURE
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
--,.APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD N ar b APPROVED AS RECOMMENDED __L OTHER
VOTE OF SUPERVISORS
. I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENTI-Vyq. ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE
ABSENT: ABSTAIN: BOARD OF SUPERVISORS ON THE DATE
SHOWN.
Contact: Anil Comelo(925)335-1155 �.LI.P/II,,",, (�
ATTESTED: �VI{�1ti I 1 , Ul
cc: County Administrator JohnSweeten,Clerk of the Board of Supervisors
County Counsel and County Administrator
BY ( i PUTY
CB:AC:nr
mirant.antioch.12-401
Agreement with Mirant Delta, LLC, for Fees, Compliance Verification...
December 4, 2001
Page Two
plant site. Highway 4 and the Antioch Bridge are just east of the site. The site
complex measures about 200 acres. Unit 8 will occupy 20 acres of the northeast
corner of the complex. PG & E originally constructed the complex in 1951. Units 4
and 5 were added in 1953, while units 6 and 7 were placed in operation in 1964.
The original Units 1, 2, and 3, were retired in 1994, while Units 4, 5, 6, and 7
continue to be operational. The existing units are conventional natural gas-fired
boilers that use once-through cooling. Existing power capacity is 680 MW. The
proposed construction project is estimated to take 22 months to complete at a cost
estimated at $312 million.
On July 10, 2001, the Board authorized the Director of the Building Inspection
Department to execute a Memorandum of Understanding (MOU) with the CEC to
provide these services at power plant. This MOU was executed on July 31, 2001
(see Attachment "A").
On July 10, 2001 the Board also authorized the Director of the Building Inspection
Department to enter into contract negotiations with the owner of the Contra Costa
Unit 8 Power Plant to fully reimburse all costs associated with design review, plan
check and construction inspection and further authorized the Director of the Building
Inspection Department to bring the proposed agreement to the Board for approval.
Attachment "B" is the agreement negotiated with Mirant for Board approval.
The project owner Mirant has agreed to the terms of the attached agreement
including fees. Fees currently estimated to be $1,394,000 would be charged to
reimburse the County for costs associated with the project. The fee amount will be
paid in 22 successive monthly installments. The agreement also provides for the
collection of additional fees to offset construction cost increases. The fee estimate
includes 6% ($83,000) for the County overhead, which will be deposited into the
County General Fund.
The County will provide a consolidated package of services.
The various services to be provided are:
• Chief Building Official duties.
• Plan review of structural, plumbing, mechanical, electrical and
seismic components. The Department's highly experienced and
credentialed plan review staff (including state certified structural
engineers) will provide these services.
• Inspection services for structural, electrical, mechanical and
plumbing aspects of the project.
• Report production, accounting, vehicles, training, and other
administrative services associated with the project.
The Contra Costa County Building Inspection Department has recent experience in
reviewing and inspecting power plants. The Department is currently operating
through a joint powers agreement with the City of Pittsburg and the CEC to provide
Building Official services to the Los Medanos Energy Center(LMEC) and to provide
building official, design review, plan check, and construction inspection for the Delta
Energy Center (DEC). The LMEC Power Plant went into operation in July. The
Department is currently assisting Calpine and Bechtel on the DEC, which is $450
million natural gas-fired facility that will generate 880 MG of reliable electricity by the
middle of 2002. This plant is 75% complete. The Unit 8 project will be able to be
completed with existing staff and not require the addition of any full time employees.
This is because staff previously assigned to the LMEC and DEC projects will
assume responsibility for the Unit 8 project.
AGREEMENT BETWEEN CONTRA COSTA COUNTY AND MIRANT DELTA, LLC,
FOR FEES, COMPLIANCE VERIFICATION AND ENFORCEMENT
AT THE CONTRA COSTA UNIT 8 POWER PROJECT
Effective September 1, 2001 ("Effective Date"), Contra Costa County, a political subdivision of
the State of California("County"), and Mirant Delta, LLC, a Delaware limited liability corporation
authorized to do business in California("Mirant"), mutually agree and promise as follows:
RECITALS
A. Mirant owns the Contra Costa Power Plant and its site complex, located on Wilbur Avenue,
one mile northeast of the City of Antioch, on the southern shore of the San Joaquin River, in the
unincorporated area of Contra Costa County. Mirant intends to construct, at the Power Plant
site complex, the Contra Costa Unit 8 Power Project ("Project"), a proposed 530-megawatt,
natural gas-fired, combined cycle, combustion turbine power plant.
B. The California Energy Resources Conservation and Development Commission("CEC") has the
exclusive power to certify all power plants in the State of California and all sites on which
power plants are located. The issuance of a certificate by the CEC is in lieu of any permit,
certificate, or similar document required by any state, local or regional agency, or federal
agency to the extent permitted by federal law, for the use of a power plant and its site, and the
certificate supersedes any applicable statute, ordinance, or regulation of any state, local, or
regional agency, or federal agency to the extent permitted by law.
C. The CEC has delegated its authority for compliance verification and its authority as Chief
Building Official to the County, through its Director of Building Inspection, pursuant to the
following: Title 20, California Code of Regulations, section 1770; and the Memorandum of
Understanding Between the California Energy Commission and Contra Costa County for
Design Review, Plan Check, and Construction Inspection of the Contra Costa Power Plant
Unit 8 Project 00-AFC-1 (effective August 6, 2001).
D. The purpose of this Agreement is to confirm the County's authority as the CEC's delegate for
compliance verification and enforcement and as the Chief Building Official of the Project, to
establish the fees to be paid by Mirant to the County as the CEC's delegate for compliance
verification and enforcement and as the Chief Building Official of the Project, and to otherwise
specify the rights and obligations of the parties as they pertain to the Project.
E. The CEC adopted its decision on the Contra Costa Unit 8 Power Project, CEC Docket No.
00-AFC-01 ("Decision"), on May 30, 2001. In the Decision, the CEC approved Mirant's
application for certification for the Project, subject to the timely performance of the conditions
December 4, 2001 1 HABuilding InspactionWirantTinal agreement.wpd
i
of certification and compliance verifications enumerated in the text of the Decision. As part of
the Decision, the CEC adopted a compliance plan, which includes the following: a set of
general compliance conditions setting forth and explaining the duties and responsibilities of the
staff, the licensee, delegate agencies, and others; the procedures for setting disputes; the
requirements for handling confidential records and maintaining the compliance record; and the
requirements for verification, including periodic reports and any other administrative procedures
that are necessary to verify that all the conditions will be satisfied.
F. Pursuant to the Decision, Mirant is responsible for ensuring that the general compliance
conditions and the conditions of certification are satisfied. Failure to comply with any of the
conditions of certification or the general compliance conditions may result in the CEC's
revocation of certification, imposition of an administrative fine, or other action as deemed
appropriate by the CEC. The ultimate responsibility for facility design, construction, and
operation compliance is with Mirant.
G. As the CEC's delegate, the County, through its Director of Building Inspection, is authorized to
enforce local building codes as adopted by the County,the California Building Code, conditions
of certification in the technical areas of facility design, geology; and transmission system
engineering, and other engineering laws, ordinances, regulations, and standards of the County
applicable to the project to ensure health and life safety. As the CEC's delegate, the County,
through its Director of Building Inspection, is authorized to perform the following tasks: design
review,plan checking, and construction inspection of the foundation, anchorage, and
connections for those building and non-building structures,process-related systems and
equipment required for power and steam generation, and equipment located either inside or
outside of buildings that are designated in Facility Design condition of certification GEN-2. As
the Chief Building Official, the County, through its Director of Building Inspection, is authorized
by the CEC to take any action allowed by law to ensure compliance with the terms and
conditions of the decision relating to local building codes,the California Building Code, the
conditions of certification for facility design, geology and transmission system engineering, and
applicable engineering laws, ordinances, regulations, and standards of the County.
H. The CEC has final authority and responsibility to enforce the terms and conditions of its
Decision.
I. Mirant has represented to the County that the Project will cost an estimated $312 million and
that the planned Project construction period will be twenty-two (22) months, commencing
September 1, 2001, and ending June 30, 2003.
NOW, THEREFORE, the parties agree as follows:
December 4, 2001 2 HABuilding Inspection\Mimnt\f-inal*agreement.wpd
/ 7
AGREEMENT
1. Definitions. As used in this Agreement, the following terms shall have the following meanings:
A. "CBO"—Chief Building Official. The powers and duties of the CBO include those set
forth in the 1998 California Building Code, Section 104.2. The CEC has delegated its
authority as CBO for the Project to the County, through its Director of Building
Inspection.
B. "CEC"—California Energy Resources Conservation and Development Commission.
C. "Decision"—The CEC Final Decision on the Contra Costa Unit 8 Power Project, CEC
Docket No. 00-AFC-01.
D. "Director of Building Inspection"—The Director of the Contra Costa County Building
Inspection Department, or his or her designee.
E. "MOU"—The Memorandum of Understanding Between the California Energy
Commission and Contra Costa County for Design Review, Plan Check, and
Construction Inspection of the Contra Costa Power Plant Unit 8 Project 00-AFC-1
(effective August 6, 2001). The MOU is attached to this Agreement.
F. "Power Plant Site Complex"—The location of the existing Contra Costa Power Plant.
The Power Plant Site Complex is located on approximately two hundred (200) acres
on Wilbur Avenue, one mile northeast of the City of Antioch, on the southern shore of
the San Joaquin River, in the unincorporated area of the County.
G. "Premises"—The Project, Power Plant Site Complex, and related facilities.
H. "Project"—The Contra Costa Power Plant Unit 8 project. The Project is a proposed
530-megawatt, natural gas-fired, combined cycle, combustion turbine power plant
located within the existing Power Plant site complex. The Project is located on
approximately 20 acres on the eastern side of the Power Plant Site Complex.
2. Term. Unless sooner terminated as provided in this Agreement, the term of this Agreement
shall be from its Effective Date until both of the following occur: the County's obligations to the
CEC under the MOU have been completed and Mirant has paid the entire Fee as described in
section 4, below.
3. County Authority. Mirant acknowledges and agrees that the County, through its Director of
December 4, 2001 3 HABuilding InspectionWiranttfinal agreement.wpd
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Building Inspection, is the CEC's delegate for purposes of compliance verification and is the
CBO for the Project. Mirant acknowledges and agrees that the CEC has authorized the
County to take the actions described below pertaining to the Project. Mirant agrees to
cooperate with the County and follow all County orders and directives reg:I-dilig the Project.
A. The County has the right to enforce all local building codes, the California Building
Code,conditions of certification in the technical areas of facility design, geology, and
transmission system engineering, and other engineering laws, ordinances, regulations,
and standards of the County applicable to the project as necessary to ensure health and
life safety.
B. The County has the right to perform design review, plan checking, and construction
inspection of the foundation, anchorage, and connections for building and non-building
structures, process-related systems and equipl;:lent required for po,,.,� r and steam
generation, and equipment located either inside or outside of buildEngs that are
designated in Facility Design condition of certification GEN-2.
C. The County will provide CBO services for the Project.
D. The County also has the right to undertake other CEC duties and au?hority as may be
delegated to the County by the CEC.
4. Fees. Mirant acknowledges and agrees that the County is entitled to recei.v c- fees for the
services provided to the Project by the County as the CEC's delegate. Mirant agrees to pay
these fees directly to the County. The parties have agreed that the amount of the required fees
is as follows and shall be paid as described herein:
A. Mirant shall pay the County a fee of$1,394,000 ("Fee") for the services provided to
the Project by the County as the CEC's delegate. Mirant and the County agree that
the Fee is reasonable, and is based upon an estimated Project construction cost of
$312 million and a planned Project construction period of twenty-two (22) months,
commencing September 1, 2001, and ending June 30, 2003.
B. The Fee is payable in twenty-two (22) successive monthly instalh: ants, with each
installment in the amount of$63,364, unless the Fee is increased provided herein.
Mirant shall make each payment within thirty 130) days of receipt an invoice from the
County.
C. Mirant's obligation to make installment paytcats is not subject i;; :::;:Iditions precedent.
December 4, 2001 4 H.'•.,,iuilding Inspection\MirantUw.,i:;_r cment.wpd
D. Mirant agrees to pay the Fee in consideration of the County's services as dfelegate of
the CEC so long as the terms of the MOU are in effect.
E. The Fee may be increased if in the discretion of the Director of Building Inspection the
actual Project construction scope or activities increase. Any Fee increase shall be in
proportion to increases in the Project construction costs resulting from the increase in
the actual Project construction scope or activities.
F. If Project construction ends before June 30, 2003, Mirant shall not be required to pay
monthly installment payments for the time between the end of construction and June 30,
2003. For purposes of this paragraph, "end of construction"occurs when commercial
operation of the Project begins.
G. If Project construction continues after June 30, 2003, Mirant shall pay the County fees
at a rate of$95 per hour for the services provided to the Project by the County as the
CEC's delegate. Fees paid pursuant to this paragraph shall be paid between June 30,
2003, and the end of construction. For purposes of this paragraph, "end of
construction"occurs when commercial operation of the Project begins. Mirant shall
pay fees pursuant to this paragraph within thirty(30) days of receipt of a monthly
invoice from the County.
5. Right of Entry. The County is hereby guaranteed and granted unrestricted access to the
Premises, including the Project, the Power Plant Site Complex, related facilities,project-related
staff, and the records maintained by Mirant, for the purpose of conducting audits, surveys,
inspections, or general site visits, or otherwise acting as the CEC's delegate. Although the
County will normally schedule site visits on dates and times agreeable to Mirant, the County
reserves the right to make unannounced visits at any time. The County shall not be liable in any
manner for any inconvenience, disturbance, loss of business, nuisance, or other damage arising
out of the County's entry on the Premises, except as otherwise provided in Section 11 of this
Agreement.
6. Documents. Mirant shall give the County unrestricted access to all Project files upon the
County's request. The Project files shall include, but are not limited to, copies of all "as-built'
drawings, all documents submitted as verification for conditions, plans, specifications,
engineering calculations, diagrams, soil investigation reports, special inspection and structurri
observation programs, and all other related documents. Mirant shall maintain all Projec, i.le
on-site during the period of construction, operation and maintenance of the Project unti: !:ie
Project permanently ceases operation.
7. Subcontracts and Assignments. The County may subcontract any portion of the services
December 4, 2001 5 HABuilding InspectiorAMirantVinal agrecment.wpd
provided by the County under this Agreement. This Agreement is not assignable by Mirant in
whole or in part without the prior written consent of the County.
8. No Third Party Beneficiaries. Nothing in this Agreement is intended, nor shall it be ct::nsi -ued,
to create rights inuring to the benefit of third parties.
9. Termination. This Agreement may be terminated by the County, at its sole discretion., u-po,n
thirty(30) days written notice to Mirant. If the County terminates this Agreement, Mirant shall
pay to the County all installment payments due, or previously due, at the time of tern3.41a:'ion.
10. Insurance.
A. Mirant.shall, at no cost to County, obtain and maintain during the term of this
Agreement, Comprehensive Liability Insurance, including Automobile L6abi1.6t\, Broad
Form Property Damage and Blanket Contractual Liability,with a minimu-7 corgi,r t.tid
single-limit coverage of$5,000,000.00, naming County, its officers andas
additional insureds.
B. Mirant shall, at no cost to County, obtain and maintain during the term of this
Agreement,workers' compensation insurance, as required by state law.
C. Mirant shall promptly furnish to County certificates of coverage evidencing such
coverage and requiring 30 days' written notice to County of policy lapse, camcf,:Ilari.on
or material change in coverage.
11. Indemnification. Mirant shall indemnify, defend, save,protect and hold harmless County, its
governing body, elective and appointed boards, and commissioners, officers, employees,
representatives and agents("Indemnitees"), to the fullest extent not prohibited by applicable
law, from any and all demands, losses, claims, costs, suits, penalties, fines, liabilities and/or
expenses for any damage, injury or death (collectively"Liability") arising directly or indirectly
from or connected with the matters covered by this Agreement, including but not limited to the
design, construction, maintenance, repair, reconstruction, alteration, replacement, removal or
use of any or all of the Project by Mirant or by any other person or entity, or Mirant's breach
or violation of any term or condition of this Agreement, save and except claims or111-6:a-ion
which a court determines arose through the sole gross negligence or willful miscondu i of the
Indemnitees. Mirant shall make good to and reimburse Indemnitees for any
including reasonable attorneys' fees, any of the Indemnitees may make by reLso
aforementioned matters.
Under no circumstance shall the Indemnitees have any liability to Mirant or to
or entity, for consequential or special damages, or for any damages based on los;: of';t::e,
December 4, 2001 6 H:\f3uilding lnspectioii\Mirant•iinal a
revenue,profits or business opportunities, arising from or in any way relating to any action
taken or failure to act by the Indemnitees or any of them. Mirant hereby forever waives and
releases Indemnitees, from any and all claims to consequential or special damages, and for any
damages based on loss of use, revenue,profits or business opportunities arising from or in any
way related to this Agreement.
This indemnification clause shall survive the termination or expiration of this Agreement but shall
only apply to acts or omissions that occurred when the contract was in effect. Mirant's
obligations under this section shall exist regardless of whether any Indemnitee has inspected the
Project or has approved any plan(s) or specification(s) in connection with the Project, or has
insurance or other indemnification covering any of these matters.
12. Immunities. Mirant acknowledges and agrees that the County retains the right to assert any and
all applicable governmental immunities, including,but not limited to, the immunity granted under
California Government Code section 818.6.
13. Enforcement. Any failure by Mirant to pay all or any portion of the Fee within thirty(30) days
of the date such amount is due pursuant to the provisions of Section 4 shall constitute a material
breach of this Agreement. Any failure by Mirant to comply with any other term or condition of
this Agreement shall constitute a material breach of this Agreement. In the event of such a
breach, at its sole option, County may: (a)declare this Agreement null and void and file suit to
collect any amount due and owing; and/or(b) file suit to enforce this Agreement in which case
interest on any delinquent payment shall accrue from the date of delinquency at the rate
provided by law; and/or(c) to the extent permitted by law, exercise any other remedy available
to the CEC or allowed at law or in equity. This section shall not infringe upon the CEC's legal
authority to enforce the terms and conditions of the Decision nor preclude the CEC from
exercising all.remedies available to it to the extent permitted by law.
14. Applicable Law; Venue. This Agreement shall be governed by and construed in accordance
with the substantive laws of the State of California without regard to its conflict.of laws rules.
The venue for any legal action pertaining to this Agreement shall be Contra Costa County,
California.
15. Notice. All correspondence regarding this Agreement, including invoices,payments, and
notices, shall.be directed to the following persons at the following addresses and telephone
numbers:
COUNTY: Carlos Baltodano, Director
Building Inspection Department
Contra Costa County
651 Pine Street, 3`d Floor, North Wing
December 4, 2001 7 H:Tuilding InspectionWirantVinal agreement.wpd
Martinez, CA 94553
(925) 335-1108
MIRANT: Chuck R. Hicklin, Project Director
Mirant Delta, LLC
3201 Wilbur Avenue
P.O. Box 1687
Antioch, CA 94509
(925) 779-6512
16. Construction. The section headings and captions of this Agreement are, and the arrangement of
this instrument is, for the sole convenience of the parties to this Agreement. The section
headings, captions and arrangement of this instrument do not in any way affect, limit, amplify or
modify the terms and provisions of this Agreement. This Agreement shall not be construed as if
it had been prepared by one of the parties, but rather as if both parties have prepared it. The
parties to this Agreement and their counsel have read and reviewed this Agreement and agree
that any rule of construction to the effect that ambiguities are to be resolved against the drafting
party shall not apply to the interpretation of this Agreement. The Recitals are, and shall be
enforceable as, a part of this Agreement.
17. Severability. If any term or provision of this Agreement is, to any extent, held invalid or
unenforceable, the remainder of this Agreement shall not be affected.
18. Authorizations Obtained. The person executing this Agreement on behalf of Mirant represents
that he or she has the requisite legal authority to enter into this Agreement on behalf of Mirant
and to bind Mirant to the terms of this Agreement. The person executing this Agreement on
behalf of the County represents that he or she has the requisite legal authority to enter into this
Agreement on behalf of the County and to bind the County to the terms of this Agreement.
19. Entire Agreement. This Agreement contains the entire agreement between the parties and all
prior understandings or agreements, oral or written, regarding this matter are superseded. This
Agreement shall not be modified except by written mutual agreement signed by the parties.
CONTRA COSTA COUNTY MIRANT DELTA, LLC.
By: By:
Carlos Baltodano Alan W. Harrelson
Director, Building Inspection Department Vice President
December 4, 2001 8 HABuilding InspectionWirantUnal agreement.wpd
r ATTACHMENT A
MEMORANDUM OF UNDERSTANDING (MOU)
BETWEEN THE
CALIFORNIA ENERGY COMMISSION AND
CONTRA COSTA COUNTY
FOR
DESIGN REVIEW, PLAN CHECK, AND CONSTRUCTION
INSPECTION OF THE
CONTRA COSTA POWER PLANT UNIT 8 PROJECT
00-AFC-1
RECITALS:
On January 31, 2000, Mirant Corporation (Mirant) filed an Application for Certification
(AFC) with the California Energy Commission (Commission) for approval to construct
and operate the Contra Costa Power Plant Unit 8 Project (The Project). The Project is
located in the County east of the City of Antioch. Mirant proposes to start construction
in July of 2001 and commence commercial operation in 2003.
The Commission must ensure that the Project is designed, constructed, and operated in
conformity with the Commission's Decision (Decision), the California Building Code
(CBC) the local building codes adopted by the Contra Costa County, and applicable
laws, ordinances, regulations, and standards (LORS) of the County of Contra Costa to
ensure health and life safety. The Decision contains the Conditions of Certification for
construction and operation of the Project.
The Decision requires that Mirant submit engineering plans, calculations, specifications,
and other project-related information to the person designated by the County as the
Chief Building Official (CBO) for the Project for review and approval prior to and during
construction of the Project. The intent of this requirement is to provide an independent
review of the Project's final design, and inspection of the project's construction, to
ensure compliance with applicable engineering LORS, the local building codes, the
CBC, and the Facility Design, Geology, and Transmission System Engineering
Conditions of Certification.
CONTRA COSTA COUNTY AND THE COMMISSION AGREE AS FOLLOWS:
1. The above recitals are incorporated into this agreement.
2. The County shall act as the Commission's delegate for enforcement of: local building
codes; the CBC; the Facility Design, Geology and Transmission System Engineering
Conditions of Certification; and other engineering LORS applicable to the Project to
ensure health and life safety. The County will also be responsible for the design review,
plan check, and construction inspection of the foundation, anchorage, and connections
for those building and non-building structures, process-related systems and equipment
required for power and steam generation, and equipment located either inside or
July 30, 2001 1 CBO MOU LOCAL
. r
outside of buildings that are designated in Facility Design Condition of Certification
GEN-2. Additions and deletions to GEN-2 will be made only with the CPM's approval.
These duties shall be carried out by the County's Director Building Inspection as the
Chief Building Official (CBO) for the Project. The ultimate responsibility for facility
design, construction, and operational compliance remains with Mirant.
3. Although the County will function as the Commission's delegate, the Commission
has the final authority and responsibility to ensure that the Project is built in accordance
with the applicable engineering LORS and the Decision. The Commission's legal
authority to enforce the terms and conditions of its Decision is specified in California
Public Resources Code sections 25534 and 25900. The Commission may amend or
revoke the certification for any facility and may impose a civil penalty upon the project
owner for any significant failure to comply with the terms or conditions of the Decision.
4. To ensure compliance with the terms, the Facility Design, Geology and Transmission
System Engineering Conditions of Certification, and the applicable engineering LORS,
the CBO as the Commission's delegate is authorized to take any action allowed by law
to ensure that the Commission's interests are properly addressed and protected. If the
CBO has issued, or is considering issuing, a stop-work order to ensure compliance, or
to ensure that the Energy Commission's interests are protected, or for any other reason,
the CBO shall seek the cooperation and assistance of the Compliance Project Manager
(CPM) appointed by the Commission. The CBO shall notify the CPM in a timely
manner, preferably prior to taking the action, so that the CPM is fully aware of the action
taken or under consideration and its implication to the project. For any action taken
under emergency conditions the CPM shall be notified within 24 hours of the action.
5. In the performance of this agreement, the CBO, its employees and subcontractors
shall act in an independent capacity and not as officers or employees of the State of
California.
6. The CPM appointed by the Commission shall have the right to approve the
qualifications of the CBO engineering and technical personnel and the scope of work
the CBO will perform. The CBO shall notify the CPM if there is any change in personnel
assigned to the Project team. Replacement personnel shall not work on the Project
until they are approved by the CPM.
7. The CBO shall, in cooperation with the Commission, ensure compliance with the
terms and conditions of the Decision relating to local building codes, the CBC, and the
Facility Design, Geology and Transmission System Engineering Conditions of
Certification.
8. The Commission shall ensure that the fees charged to Mirant for the review and
inspection services provided by the CBO and any subcontractors are reasonable.
These fees may be consistent with the fee schedule of the 1998 CBC, adjusted for
inflation and other appropriate adjustments; may be based on the value of the facilities
reviewed; may be based on hourly rates; or may be as otherwise agreed by the CBO
and Mirant. Payments to the CBO for work satisfactorily completed may be paid in
advance, in arrears or from a credit account established with the CBO by Mirant. The
July 30, 2001 2 CBO MOU LOCAL
. y
CBO shall provide the CPM with a description of the specific fee schedule to be
employed within ten days of execution of the contract between the CBO and Mirant.
9. The CBO may retain the services of one or more independent qualified
subcontractor(s) to supplement the CBO employees in the design review, plan check,
and construction inspection of the Project. The subcontractor(s) will answer directly to,
and be responsible to, the CBO. The CBO shall provide the qualifications and scope of
work of the subcontractor(s) to the CPM for approval at least ten days prior to the
subcontractor's expected start of work. The CBO will retain responsibility for the
construction inspections required by sections 106.3.5 and 108 of the CBC and for
monitoring special inspections required by sections 1701, 1702 and 1703 of the CBC.
10. The CPM shall have the right to approve he qualifications of the subcontractor(s)�
and the scope of work for the subcontractor63The CBO shall notify the CPM if there is
any change in subcontractor(s) or personnel. Replacement subcontractor(s) or
personnel shall not work on the Project until they are approved by the CPM. At the
request of the CPM, the subcontractor(s) shall assist the CPM in any audits or
inspections of the Project.
11. The CBO shall require that its subcontractors have not previously been employed
directly by the project owner or its agents at any time during the 12 months prior to the
start of this agreement. The CBO shall also require that, during the course of this
agreement, neither its subcontractors nor its agents will be employed, directly or
indirectly, by the project owner or any entity of which it is a holding, subdivision, or
subsidiary.
12. The CBO shall take all reasonable measures to accommodate Mirant's schedule for
design and construction, including but not limited to adding staff to its workforce and/or
retaining the services of additional independent qualified subcontractor(s).
13. The CBO shall review and approve the selection of dynamic analysis and/or
alternative methods of analysis for the design of those major structures designated in
Facility Design Condition of Certification GEN-2 to comply with section 1629.10.1 of the
1998 CBC.
14. The CBO shall review and approve any of Mirant's proposed special and
continuous inspection reporting programs required by sections 1701, 1702, and 1703 of
the 1998 CBC, and shall approve the qualifications and experience of the proposed
special inspectors. Where the CBO deems it appropriate, subject to CPM approval, the
CBO shall accept the results of inspections performed by Mirant's special inspectors. At
the request of the CPM, the CBO shall assist the CPM in any audits or inspections of
the Project.
15. The CPM shall have the right to audit the CEO's and its subcontractors'
performance to ensure that they are properly carrying out their duties and
responsibilities and that Mirant is implementing the Decision requirements for the design
and construction of the Project.
July 30, 2001 3 CBO MOU LOCAL
16. The CBO and subcontractor(s) may discuss all aspects of the Project with each
other, the CPM, and Mirant's construction contractors and engineers. The CBO and
CPM shall have access to all associated construction records, construction and
inspection procedures, test equipment, and test results related to the requirements of
the Commission Decision. It is the CPM's intention to provide reasonable notice of site
visits and audits and to conduct such activities at reasonable times. Circumstances
may dictate that site access may be required with little or no notice.
17. The CBO shall submit the results of all plan checks and construction inspections,
including recommendations, to Mirant and send a copy of all transmittal letters to the
CPM. The CPM shall conduct any technical audits and reviews, and present any
recommendations, as expeditiously as possible. The CBO should proceed with reviews
and approvals of all components designated in Facility Design Condition of Certification
GEN-2 unless instructed otherwise by the CPM. Approved plans, specifications,
calculations and marked-up as-builts shall be retained by the CBO for 90 days, after
which the CBO shall deliver them to the project owner for long-term retention at the
project site or other accessible location.
18. One set of approved plans, specifications and computations shall be retained by
the CBO for a period of not less than 90 days from date of completion of the work
covered therein; and one set of approved plans and specifications shall be returned to
the applicant, and said set shall be kept on the site of the building or work at all times
during which the work authorized is in progress [1998 California Building Code,
section 106.4.2].
19. The Commission, through the CPM, retains the final authority over all matters
relating to interpretation of the Conditions of Certification.
20. The term of the agreement is indefinite but shall terminate when all of the mutual
obligations have been performed and satisfied. It shall also terminate at such time
as Mirant fails to pay fees as required or renders the CBO's performance under this
agreement impossible. Notwithstanding the foregoing, either party may terminate
this agreement upon five (5) days advance written notice complying with the
provisions of section 23 below.
21. Commission acknowledges and agrees that the County and its employees retain
the right to assert any and all applicable governmental immunities including, but not
limited to the immunity granted under the California Government Code section
818.6.
22. This MOU shall be effective upon execution by all parties.
23. All correspondence regarding this agreement, including invoices, payments, and
notices, shall be directed to the following persons at the following addresses and
telephone numbers:
July 30, 2001 4 CBO MOU LOCAL
COUNTY: Carlos Baltodano, Director
Building Inspection Department
Contra Costa County
651 Pine Street, 3`d Floor, N. Wing
Martinez, CA 94553
(925) 335-1108, cbalt@bi.co.contra-costa.ca.us
COMMISSION: Ila Lewis, Compliance Project Manager
California Energy Commission
1516 9th Street, MS 2000
Sacramento, CA 95814
(916) 654-4678, ilewis@energy.state.ca.us
Written correspondence shall be sent either by personal delivery (including overnight
delivery service), by U. S. Mail, postage prepaid, by fax, or by e-mail; it shall be
considered delivered when actually received.
24. In the event of a conflict between this MOU and an Energy Commission Decision
granting an application for certification, the Decision shall take precedence.
25. This agreement shall be interpreted and applied in accordance with California law.
Any litigation concerning it shall be brought in the Sacramento County Superior Court.
26. This agreement sets forth the parties' entire understanding and supersedes all prior
agreements and representations, written and oral, and may be modified only by a
written document signed by the CBO and the Commission.
The County has reviewed this MOU and understands its duties and responsibilities. The
persons signing below are authorized by their respective agencies to execute this MOU.
Signed by:
Contra Costa County:
DATED
BY Carlos Baltodano.Director of Building Inspection
CALIFORNIA ENERGY COMMISSION
DATED
BY kobert L. Therkelsen, Deputy Director for
Systems Assessment and Facilities Siting
July 30, 2001 5 CBO MOU LOCAL