HomeMy WebLinkAboutMINUTES - 12192006 - C.95 ContraTO: BOARD OF SUPERVISORS . t���, �'`'
71
Costa
FROM: MAURICE M. SHIU, PUBLIC WORKS DIRECTOR nj �~"'' �'
Count
DATE: December 19, 2006Y
SUBJECT: Approve the extension of the franchise agreement with Calpine Pittsburg Inc. through December
31, 2007 and accept Calpine's replacement surety bond with Westchester Fire Insurance Company
in the amount of$5,000. Oakley Area (District V)
Project No.: 005-9120
SPECIFIC:REQUEST(S)OR RECOMMI-:NDATION(S)&BACKGROUND AND JUSTIFICATION
Recommended Action:
EXTEND the franchise agreement between Contra Costa County(County) and Calpine Pittsburg, Inc (Calpine)
through December 31, 2007, and replace Calpine's surety Bond No. 059100 issued by Lumbermands Mutual
Casualty Co in the amount of$5,000 with Westchester Fire Insurance Company's Bond No. K0499999A.
Financial Impact:
There will be no fiscal impact from this acti
Coy inued on Attachment: t------ SIGNATUR '
ECOMMENDATION OF C:OUNTV ADMINI TR TOR
—RECOMMENDATION OF BOARD COM IIT EE
t,46ROVE OTHER
SIGNATURE(S).
ACTION OF BOA N APPROVED AS RECOMMENDED YOTHER
Unanimous(Absent )
Ayes: Noes:
VC Absent: Abstain:
Vacant: District IV
I hereby certify that this is a true and correct
copy of an action taken and entered on the
r minutes of the Board of Supervisors on the
G:\Real Ili op\2006-I"ilis\BOs&Res 06\130.A CPN BOND.doc date shown.
01-ig.Div: Public Works(R/P)
Contact:D.Kramer (3-2227) ATTESTED:_ IG CQ Mi / ��t//J
cc: County Administrator JOHN CULLEN, Clerk of the Board f
Auditor-Controller(via R/P) Superv' ors and County Administrator
P.W.Accounting
1.Bergeron,Computer SCI-Viees G
Recorder(via R/P) By Deputy
SUBJECT: Approve the extension of the franchise agreement with Calpine Pittsburg Inc. through
December 31, 2007 and accept Calpine's replacement surety bond with Westchester Fire Insurance
Company in the amount of $5,000. Brentwood Area (District III)
DATE: December 19, 2006
PAGE: Page 2 of 2
III. Reasons for Recommendations and Backfround:
"hhe original franchise agreement granted under- Resolution 3352, was for a 40 year term, and expired on
September 14, 2004. County staff has been working on developing a new County Franchise Fee Ordinance,
which should be in place in 2007.
Calpine has requested an extension of the existing franchise agreement under the same terms and conditions of
County Resolution 3352. In addition, Calpine has requested that its surety Bond No. 059100 in the amount of
$5,000 issued by the now defunct Lumberinens Mutual Casualty Company be replaced witli Bond No.
K0499999A in the amount of$5,000 issued by Westchester Fire Insurance Company.
IV. Consequences of Negative Action:
Calpine will not have an effective Bond on file with the County. Also, Calpine's Franchise Agreement will not
be extended and would continue on a month to month basis.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on �,GLMipZ lq , 2006 by the following vote:
AYES: Ta�
nI �
NOES:
ABSENT:uL=
ABSTAIN: :pI�c-- RESOLUTION NO. 2006/12
SUBJECT: Approve the extension of the franchise agreement granted to Calpine
Pittsburg, Inc. pursuant to Resolution 3352 until December 31, 2007 and replacement of
Calpine's surety Bond No. 059100 in the amount of$5,000 issued by Lumbermens
Mutual Casualty Co. with Bond No. K0499999A in the amount of$5,000 issued by
Westchester Fire Insurance Company.
This Board on September 15, 1964 adopted Resolution 3352, which granted a pipeline
franchise to Shell Oil Company to operate and maintain pipelines within certain County
rights-of-way. On October 19, 1999, pursuant to Board Resolution No. 99/536 the Dow
Chemical Company franchise was transferred to Calpine Pittsburg, Inc. ("Calpine").
The original Shell Oil Company franchise agreement granted under Resolution 3352,
was for a 40 year term, and expired on September 14, 2004. County staff has been
working on developing a new County Franchise Fee Ordinance, which should be in
place in 2007. Calpine has requested an extension of the existing franchise agreement
under the same terms and conditions of County Resolution 3352, until such time as the
County adopts a new Franchise Fee Ordinance. In addition, Calpine has requested that
its surety Bond No. 059100 in the amount of$5,000 issued by Lumbermens Mutual
Casualty Company be replaced with Bond No. K0499999A in the amount of $5,000
issued by Westchester Fire Insurance Company.
IT IS BY THE BOARD ORDERED that the franchise agreement transferred to Calpine
pursuant to Resolution 99/536 be extended under the same terms and conditions as set
forth in County Resolution 3352, to December 31, 2007, and that Lumbermens Mutual
Casualty Company Bond No. 059100 in the amount of$5,000 be replaced with
Westchester Fire Insurance Company Bond No. K0499999A in the amount of$5,000.
G:\RealProp\2006-Files\B0s& Res 06\Calpine Resolution_Res_3352.doc
Orig. Dept: Public Works (AD)
Contact person:David Kramer(313-2227)
Cc: County Auditor/Controller
County Counsel
i
12�so(�� �►� eco X06 ��s
'THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on October 19, 1999, by the following vote:
AYES: SUPERVISORS GIOIA, UILKFMA, DESAULNIER AND CANCIAMILLA.
NOES: NONE
ABSENT: GERBER
ABSTAIN: NONE, RESOLUTION NO. 99/536
SUBJECT: Transfer of Pipeline Franchise to Calpine Pittsburg, Inc.
This Board on September 15, 1964, granteda franchise to operate numerous pipelines
on certain County rights of way per Resolution #3352 pursuant to Ordinance #1827 to
Shell Oil Company.
Subsequent to the date the franchise was granted Shell Oil Company sold a half (50%)
interest in three (3) pipelines, for which the franchise,was granted, to The Dow
Chemical Company, who transferred these assets, effective October 27, 19.83, to a
newly formed subsidiary of The Dow Chemical Company named Great Western
Pipeline Company, Inc., an entity charged with the ownership and operation of refinery
assets, including these pipelines. Great Western Pipeline Company, Inc. sold and
transferred this asset to Calpine Pittsburg, Inc., effective July 21, 1998. The Dow
Chemical Company Inc. has requested that the franchise for these three (3) pipelines
be transferred to the proper entity, Calpine Pittsburg, Inc.
IT IS BY THE BOARD ORDERED that the portion of the franchise granted under
Ordinance #1827 to Shell Oil Company that pertains to the assets now owned by
Calpine Pittsburg, Inc., is hereby transferred to Calpine Pittsburg, Inc., and that the
Chair is authorized to sign a duly executed agreement consenting to the transfer of the
aforementioned portion of the pipeline franchise to Calpine Pittsburg, Inca
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.
Contact Person: Cliff Hansen (925).313-2341 ATTESTED:. OCTOBER 1.9, 1999
SCH:ly PHIL BATCHELOR, Clerk of the Board
g:lv\bdord\10-19.doc of Sup isors and County Administrator
Y
Orig. Dept.: Public Works (AD) 8 Deputy
RESOLUTION NO. 99/536
AGREEMENT RELATING TO THE. CONSENT
OFT E COUNTY OF CONTRA COSTA TO THE ASSIGNMENT
AND TRANSFER OF THE FRANCHISE GRANTED T
SHELL OIL COMPANY
This.Agreement (the "Transfer Agreement") is entered into on-
1•e
n_
'... •et , and is between and among the County of Contra Costa
. s
("County"), Shell Oil Company (the "Transferor") and Calpine Pittsburg, Inc. (the
"Transferee").
Whereas, on September 15, 1964, the Board of Supervisors (The "Board")
of the County granted a pipeline franchise (the "franchise"'), per Resolution
rt3352, to Shell Oil Company (the "Transferor") pursuant to the provisions of
County Ordinance Code #1827 (the "Ordinance") for a term of forty (40) years
to operate an oil pipeline within the County; and
WHEREAS, the Transferor sold a half (50%) interest to The Dow Chemical
Company in three (3) pipelines, for which the franchise was granted, specifically
identified as the Dutch Slough Gas Line (8"), the Depco Field Gas Gathering Line
(8"), and the Depco Field Gas Gathering Line (4"); and
WHEREAS, The Dow Chemical Company transferred on October 27, 1983,
these pipelines to Great Western Pipeline Company, Inc., a wholly-owned
subsidiary of The Dow Chemical Company charged with ownership and operation
of the refinery assets, including the aforementioned pipelines; and.
WHEREAS, Great Western Pipeline Company, Inc., sold and transferred these
assets to Calpine Pittsburg, Inc.,. effective July 21, 1998; and
WHEREAS, The Dow Chemical .Company has filed a written application to the
County, dated August 25, 1998 (the Application); -wherein it has requested the
consent of the County to the transfer and assignment of the franchise for the
aforementioned pipelines to Transferee (the "Asset Transfer"); and
WHEREAS, it is the intent of the County to approve the transaction whereby
ownership and control of the franchise shall be held by the Transferee (said
transaction shall be referred to herein as the "Transfer"); and
WHEREAS, the Board of the County has reviewed the Transfer as well as all
relevant documents,.staff reports and recommendation; and
WHEREAS, based upon the evidence presented to the Board, it has
determined that it would be in the public interest to conditionally approve the
Transfer.
[9,9919 7
NOW THEREFORE, it is agreed by and between the parties as follows:
1. The Board of the County hereby gives its consent and approval to the
Transfer whereby the franchise, including all the assets thereof, shall be
directly acquired and held by Transferee.
2. The granting of this consent to the Transfer does not waive the right of
the County to approve any subsequent change in the ownership of the
License or the ownership or control of the Transferee and there shall be no
further material change, amendment or modification of the ownership or
equity composition of the Transferee which requires prior consent of the
County pursuant to the Ordinance without the further written consent of the
Board.
3. By executing this Transfer Agreement, the Transferee hereby accepts all
the terms and conditions of the franchise, the Ordinance and any orders and
directives of any administrative agency relating to the franchise including, but
not limited to this Transfer Agreement and represents and warrants that it
has examined the requirements.of the franchise, the Ordinance, this Transfer
Agreement, as well as applicable federal, state or local laws or regulations
and agrees to abide by all the terms and conditions thereof.
The Transferee agrees and acknowledges that it has found the Ordinance,
the franchise, and the other documents specified herein to be legally
sufficient, enforceable, valid, and binding and accept the same without
condition or reservation. The Transferee accepts the franchise and all
obligations thereof, subject to and assuming liability for all existing disclosed
and undisclosed breaches and defaults. The Transferee agrees to cooperate
and furnish relevant information in relation thereto. The Transferor agrees to
cooperate and furnish relevant information in relation to any audit and/or
investigation relative to breaches and/or defaults accruing prior to the
Transfer.
To the extent that the Transferee, or any related person or entity,:
challenges the validity or interpretation of said above listed documents in the
future in any.administrative proceeding or court of law, such a challenge shall
be subject to all defenses which would have been available to the County had
the Transferor, or any related person or entity, brought said challenge(s)
including, but not limited to, waiver, estoppel, consent, unclean hands and
accord and satisfaction, as well as. any and all defense independently
available to the Transferee.
4. Any violation of this Transfer Agreement shall be deemed to be a violation
of the Ordinance and the franchise.
5. This Transfer Agreement shall be deemed effective upon receipt of it by
the County so long as it has been executed and so long as the:existing bond
has been reissued or has a rider attached which names Transferee as the
new principal,
COUNTY OF CONTRA COSTA SHELL OIL COMPANY
By
V
-Z
PHIL BATCHELOR, Clerk of the THE DOW CHEMICAL COMPANY
Board of Supervisors and County
Administrator
By y 91DC I A4 J B
D puty Clerk
Its
CALPINE PITTSBURG, INC.
J3
its Vice .President
SCH:1v
p:1v\she11-Ca1.d1oc
111i THE MAI3D OF SUPERVISORS
OF
COJURA COSTA COUN'T`Y, STATE OF CALIFOEN IA
in the Matter of Granting
Franchit3o to Install Pipelines Z OLUTION X30- 3352
in Cotmty Roads {Shell Oil.
- Company} .
The Board of Supervisors of Contra Costs County RESOLVES THATi
This Board on July 28, 1964, adopted Resolution No . 3215
declaring its intention to advertise and sell a franchise pur-
suant to Ordinance 2bo. 1827 in the manner prov:.ded by law and
as more particularly referred to in the Notice of Sale of t -
chise attached to and made part of Resolution No . 323.5, and
said Ecard fixed Tuesday, September 8, ,1 64, as the date for
receiving bids for the franaizise .
On September S, 1.9064, the Board received and accepted bids
for thq franchise fronm the Shell Oil Company and the Signal Oil
and Gas Company.
IT IS by the Board ORDERED trxat a franc-1-0-se to install
p1pe2inos in county roads pursuant to Ordinance Ro . 1327 is
T ?p3✓
GRANTED to Shell Oil CompRriy, and t1w Clerk is directed
to deposit- with the Couixty Treasurer the amount of the bid re-
ceived fmm Shell Oil CorrFpaAy, which accompanied said bid as
cash consideration for the franchise particularly referred to
iti said bid .
The Clerk is further directed to deposit vilth the County.
Treasurer the amount of One 1-bandrnd end Sixty-Six Dollars ($166.Co)
which represents the publication costs incurred by the County In
connection with the call for bids on this franchise and the pub-
lishing of the franchlBa ordinance when such amount is paid by
Shell Oil Company pursuant to 3ectign IV of the Notice of Sale of-
Franchise .
f-Franchise .
PASSED MID ADOPTED on September 15, 1964, by the following vote:
AYES; Supervisors James P. Kenny, 11el F. Nielsen, Thomas
J. Coll, Joseph S. Silva, Edmund A. Linscheid .
i.
NOES: Ncne
AMENTa None .
CERTIPIBD capr
a/.n, frm. &oewr vcf eory of IE.
R.ESOLUi 10N NO. 3352 a.i3iwar daQuMl.Mt WMA la .17 /ir. r" .n, affic•. awd
-lea%it .'1l.paread&ajapf.d 4 IA. apt.-
�;,!'" -l.or0/o/ l.Oafra ('oalro �-aNwl� Cel��n.n�t, aw f�i.
date *Aovm. A.TYf.ST. W. 7.PAASCH touwfr.!.rL
Vv+ °MM
b► .�.of/ieia 0104 o/ 844.Boar. of $Upa.V400?4 ly
dpi l.r.i.
ccs Shell Oil Co. Public Works
Auditor (tight of Way Agent SEP 15 1964
..... . ..: .......................
Administrator
fpq..............
Treasurer », M
District Attorney