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HomeMy WebLinkAboutMINUTES - 12092003 - SD5 t! Contra Costa TO: BOARD OF SUPERVISORS rq °U County FROM: TRANSPORTATION, WATER & INFRASTRUCTURE COMMITTEE Supervisor John Gioia, Chair Supervisor Millie Greenberg DATE: December 9, 2003 SUBJECT: Report on Avon Turning Basin Project SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION ACCEPT Report on final disposition of the Avon Turning Basin Project, which substitutes operational and navigational aids, rather than infrastructure improvement via dredging. FISCAL IMPACT There is no direct fiscal impact to the County from the abovementioned action. However, $2.3 million in federal funding the County secured (through its legislators) for this project could not be used, and was reprogrammed by the Army Corps of Engineers to other projects (to have utilized funding, industry would have needed to remain committed to the project, sign a contract with the County, and provide its 25% local share of costs). CONTINUED ON ATTACHMENT: YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR x RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): e isor John Gioia, Chair Supervisor Millie Greenberg ACTION OF BOARD December 9, 2003 APPROVED AS RECOMMENDED x OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE xUNANIMOUS (ABSENTNow ) 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: Roberta Goulart (925) 335-1226) ATTESTED December 9, 2003 cc: Community Development Department (CDD) JOHN SWEETEN, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR '74�10, B , DEPUTY BACKGROUND/REASONS FOR RECOMMENDATIONS A Turning Basin at Avon is no longer being contemplated by the industries involved in the project, (the same industries responsible for the local share of project costs). In place of infrastructure improvement via dredging, the industries, the Bar Pilots and the US Coast Guard have agreed to operational parameters, additional surveys and lighted navigational aids to ensure safe turning operations in this section of the channel. Where the Bar Pilots clearly prefer a Turning Basin proper, the recent reluctance of industry to sign a contract and fund the 25% local share of this project renders the project infeasible at this time. HISTORY OF THE PROJECT As early as 1991, the San Francisco Bar Pilots lobbied for a Turning Basin as part of the final phase of the San Francisco-to-Stockton (John F. Baldwin) ship channel deepening project. The Turning Basin was included in the project in the early 1990's, although the Baldwin project was never built. After the larger project was dropped from active consideration by the Corps in 1999, the Bar Pilots approached the Corps and Contra Costa County (as local sponsor for the Baldwin Project), requesting that a Turning Basin be constructed. Beginning in calendar year 2000, Contra Costa County requested funds for the project, and through the work of Congressman Miller (and later Congresswoman Tauscher), was successful in obtaining $250,00 in federal Fiscal Year 2001, and the same amount in FY 2002 for project study, engineering and design. For the Corps to utilize this funding, an agreement had to have been signed with the local sponsor (the County). In this case, the cost-share is 25% local 75% federal, the local share to be borne by the project beneficiaries, through the County as local sponsor. This amounted to approximately $125,000 (with $500,000 federal share) for the PED portion of the project, (all costs prior to construction). The County would not sign the agreement with the Corps until a contract was signed and funding was received from the industries benefiting from the project; in this case, Shore (ST) Terminals, Valero and the Avon Refinery. The Avon Refinery was owned by Tosco Refining Corp. when the Project was reinstated in its revised form in 1999, and Was purchased by Ultramar shortly thereafter. The County and the Bar Pilots approached Shore Terminals and Ultramar in early 2001, and held several meetings, informing them of the project and received support in response.' The County engaged an attorney to draft a supplemental agreement for use with industry, received approval from County Counsel on the supplemental agreement and approval from the Corps on revisions to the PED Agreement. By this time (fall 2001), due to impending refinery sales and mergers, neither Ultramar nor Valero (owner of Avon for a short time) was comfortable committing funds for this project. Tesoro Refining purchased the Avon facility in late 2002, and the County obtained written confirmation of support and funding commitments from the three industries. The County advocated for construction funding for federal FY 2003, receiving $1.8 million. In early 2003, Industry elected not to sign the supplemental agreement with the County, because of indemnity provisions in the agreement, and by mid 2003 had decided not to invest in the Turning Basin Project after all. Industry chose instead to look at other options. Because the Corps could not work on this project until local funds were committed and an agreement signed, all of the federal funding we appropriated for this project was reprogrammed to other projects throughout the Corps South Pacific Region. Ah TESORO Tesoro Refining and Marketing Company August 1, 2003 Golden Eagle Refinery 150 Soiano Way Martinez,CA 94553 925 228 1220 Phone Captain Grant Stewart Chairman San Francisco Harbor Safety Committee c/o Marine Exchange of San Francisco Ft. Mason Ctr., Bldg. B, Ste. 325 San Francisco, CA 94123 Dear Captain Stewart: I am writing to report on the guidelines that have been agreed to and are being acted on for turning tankers in the Avon Turning Basin. Over the past several months Tesoro, Shore and Valero have been .meeting with representatives of the Captain of the Port and the San Francisco Bar Pilots. As a result of these meetings,we have agreed to the following action items: 1. . Industry is now providing the funding for quarterly surveys of the area known as the Avon Turning Basin. The surveys will be provided to the San Francisco Bar Pilots, Inland pilot Captain Wally . Slough, and Chevron pilots. 2. Tesoro and Shore with the concurrence of the San Francisco Bar Pilots have published assist tug requirements for turning, docking and undocking at the Shore Martinez and Avon wharves. The San Francisco Bar Pilots have incorporated these requirements into their Port Operations Guidelines for the Movement of Vessels on San Francisco Bay and Tributaries. 3. Tesoro, Shore and Valero have agreed to fund up to two lighted private aids to navigation in the Avon Turning Basin. These aids will be designed, constructed and located with the concurrence of the San Francisco Bar Pilots, U. S. Coast Guard and appropriate authorities. I would like to thank Lt. Doug Ebbers and Lt. CMDR Ross Sargent for their help in facilitating these improvements to our operations. Additionally, I would like to thank and acknowledge Captains Eric Dohm and Larry Teague for their help and guidance to develop the Avon Turning Basin Guidelines. Respectfully, Captain Marc Bayer Manager Marine Assurance Ecc: Shore Terminals Valero Refining and Marketing Captain Swanson, COTP US Army Corp of Engineers Contra Costa County Water Agency Al Storm, OSPR U.S.department of Commanding Officer Bldg 14,Coast Guard Island Homeland Security United States Coast Guard Alameda,CA 94501 Marine Safety Office Phone:(510)437-3073 United States San Francisco Bay Fax:(510)437-3072 Coast Guard 16700 Tesoro Maritime Company Golden Eagle Refinery Attn: Captain Marc Bayer 150 Solano Way Martinez,CA 945'q*1-1487 Dear C ayer: Your efforts to establish guidelines for the turning of tankers in the area known as the Avon Turning Basin is greatly appreciated. The coordination required between representatives from the San Francisco Bar Pilots,Tesoro Maritime Company, Shore Terminals LLC,Valero Marketing and Supply Company, and this office to create these guidelines reflects most highly on the participating stakeholders. Working together as a team,we developed a schedule of surveys to keep mariners informed of the changing bottom contours,established assist.tug requirements and an agreement to fund two lighted navigation aids. These steps leave significantly enhanced the safety of the turning area for all users. I want to personally thank you for your dedication and contribution to this important waterway management initiative. Sincerely, D M. S:IN aptain,U. S. Coast Guard Captain of the Port