HomeMy WebLinkAboutMINUTES - 12192006 - C.96 TO: BOARD OF SUPERVISORSContra
FROM: MAURICE M. SHIU, PUBLIC WORKS DIRECTOR Costa
DATE: December 19 2006
Count
y
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$1,000 Pittsburg and Antioch Area (District V).
Project No.: 005-9120:
SPI'.C'IFIC REQUFS I'(S)OR RECOMME-NDATION(S)&BACKGROUND AND.IUSTIFICATION
Recommended Action:
EXTEND the lianchise agreement between Contra Costa County(County)and Calpine Pittsburg, Inc (Calpine)
througm
h December 31, 2007, and replace Calpine's surety Bond No. 059085 issued by Lumberands Mutual
Casualty Co in the amount of$1,000 with Westchester Fire Insurance Company's Bond No. K04999964.
Financial Impact:
There will be no fiscal impact from this actio .
Continued on Attache ent: ✓ SIGNATURE:
ECOMMENDATION OI+COUNTY ADMINIS XOR
RECOMMENDATION OF BOARD COM1% TTE
DROVE OTHER
SIGNATLIRE(S):
ACTION OF BO D N L-q o APPROVED AS RECOMMENDED OTHER
VOTE OF SUPI-:12V'1SORS
UNANIMOUS(ABSENT) I hereby certify that this is a true and correct
AYES: NOES: copy of an action taken and entered on the
ABSENT: ABSTAIN:-
/( minutes of the Board of Supervisors on the
, 2 �Ll date shown.
G:`.RealProp�2006-Files\BOs&Re: G\I30.A CTN BOND .doe
Orifi.Div: Public Works(R/1')
ContacC D.Kramer (3-2227) ATTESTED:
cc: CoLlmy Administrator JOHN CULLEN, Clerk of the Board o
Auditor-Controller(via R/P) Super v ors and County Administrator
1'.W.Accounting
I.Bcrgcron,Computer Services n
Recorder(via R/P) BY (U _ 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$1,000 Pittsburg and Antioch Area (District V).
DATE: December 19, 2006
PAGE: Page 2 of 2
III. Reasons for Recommendations and Background:
The original franchise agreement granted under Resolution 1735, was for a 40 year term, and expired on June 4,
2003. 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 I:ranchise agreement under the same terms and conditions of
County Resolution 1735. In addition, Calpine has requested that its surety Bond No. 059085 in the amount of
$1,000 issued by the now defunct Lumbennens Mutual Casualty Company be replaced with Bond No.
K04999964 in the amount of$1,000 issued by Westchester Fire Insurance Company.
1V. 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 /Q , 2006 by the following vote:
AYES: T i=/
NOES:
ABSENT:
ABSTAIN: ��Y`� RESOLUTION NO. 2006/
SUBJECT: Approve the extension of the franchise agreement granted to Calpine
Pittsburg, Inc. pursuant to County Ordinance 1735 until December 31, 2007 and
replacement of Calpine's surety Bond No. 059085 in the amount of$1,000 issued by
Lumbermens Mutual Casualty Co. with Bond No. K04999964 in the amount of$1,000
issued by Westchester Fire Insurance Company.
This Board on June 4, 1963 adopted Ordinance 1735, which granted three pipeline
franchises to (1) Shell Oil Company, (2) The Dow Chemical Company, and (3) Shell Oil
Company and The Dow Chemical Company (joint ownership franchise) to operate and
maintain pipelines within certain County rights-of-way. On October 13, 1998, pursuant
to Board Resolution No. 98-546 the Dow Chemical Company franchise was transferred
to Calpine Pittsburg, Inc. ("Calpine").
The original Dow Chemical Company franchise agreement granted under Ordinance
1735, was for a 40 year term, and expired on June 4, 2003. 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 Ordinance No. 1735, until such time as
the County adopts a new Franchise Fee Ordinance. In addition, Calpine has requested
that its surety Bond No. 059085 in the amount of$1,000 issued by Lumbermens Mutual
Casualty Company be replaced with Bond No. K04999964 in the amount of$1,000
issued by Westchester Fire Insurance Company.
IT IS BY THE BOARD ORDERED that the franchise agreement transferred to Calpine
pursuant to Resolution 98-546 be extended under the same terms and conditions as set
forth in County Ordinance 1735, to December 31, 2007, and that Lumbermens Mutual
Casualty Company Bond No. 059085 in the amount of$1,000 be replaced with
Westchester Fire Insurance Company Bond No. K04999964 in the amount of$1,000.
GARea1Prop\2006-Fi1es\B0s&Res 06\Calpine Resolution_Ord_1735.doc
Orig. Dept: Public Works (AD)
Contact person:David Kramer(313-2227)
Cc: County Auditor/Controller
County Counsel
IN THE BOARD OF SUPERVISORS
OF
CONTRA: COSTA COMM, STATE OF CALIFORNIA
June 4, 1963
In the Matter of Ordinance
No . 17353 Granting' Three
..No
to shell'Ol
Company, Dow Chemical. Company
and to Shelly: Oil Company* and
Dow Chemical: Company in Joint
Ownership-
This Board having on May 14, 1063 adapted Resolution
No. 1931, declaring intention to advertise and sell franchise.,,-
in
ranchisein the manger provided by :law. and particularly referred to in
Notice of Sale ,of Franchise attached, to and Made a part of said
Resolution ;No. 1.9.34, and said Board. having f3.xed this date. for
receiving sealed .b.ids;
' NOW, THEREFORE F the Clerk proceeds to open bids re-
ceived frau the fol.lowin
;Shell Oil Company
The Dow .Chemical. Company
_ Shell Oil. Company and The. ..Dow,. Chemical Companyy..
and, the Board...considers said bids;
NOW. ...THEREFORE, on motion of Supervisor Coll, seconded
by Supervisor Linseheid, IT IS 13Y THE BOARD ORDERED. that 'the
bids :be and the same: are hereby ACCEPTED, and 'the Clerk is di-
rected to deposit with the County: Treasurer cashiers checks
.. totaling $300, which accompanied said bids as cash consideration
for franchises for pipe lines along the `gublic' highways partic-
ularly referred to in said bids . .,- 1
T IS BY :THE HOARD..FURT1[ER ORDERED that Qrdinance No.
1735 ,granting three franchises 6' .said bidders, Shell' Oil Company,.:
The Dow Chemical. Company. , and Shell Oil Com any and The Dow
.Chemic.al Cdmpany ..(joint ownership' franchise :;: be and th.e same is
...hereby APPROVED, copy -cif said :Ordinance to be published in 'the
Post Dispatch'.` in the manner and for the. time required by law.
The foregoing: order was passed' by the following vote of
the Board:
AYES: Supervisors Mel F'.'' Nielsen; Thomas John Coll,
Edmund A Linscheid9 Joeephc S.. Siva,
James P Kenny..
NOES .. None .
-ABSENT; None.. Cl'l;ii D c: r:
eorr,l.• r,.cr..j.::, r a fut., .. ,. : r
' ..... .. .. . ..r. Wit, ..
cc: Shell Oil Company ^
The Dow Chemical. Company .;.0,e Of
Right of :Way Agent ?ar..irr.,,, :x:,;:1: i:`.
PulalicWorks Director �
53x_53 eia; tla: na;d 13ca .4.•.`i.up.errr.n.r,'f',.
_ � ii; b ,�
County Administrator J.r,zii% "-,,":
County Treasurer -
Coi:nty Auditor
ORDINANCE NO.. 1735
AN ORDINANCE GRANTING THREE FRANCHISES FOR THE.
RIGHT AND PRIVILEGE TO CONSTRUCTS.. 14AINTA:,'11, OPERATE$
REPAIR,:. RENEW.); AND RELATED PURPOSES IN CONNECTION
WITH PIPE LINES FOR.THE TRANSPORTATION OF PETROLEUM,
LIQUID. HYDROCARBON SUBSTANCES, AND VARIOUS OMER
SUBSTANCES AS HEREIN DESCRIBED TO SHELL 4IL COMPANY,
DOW CHEMICAL COMPANY AND TO S112,'LL OIL COKPANY AND
DOER! CHEMICAL COMPANY IN JOINT OWNERSHIP,
The Board of Supervisors of the County of Contra Costa do
ordain as follows:
SECTION 1. The right, privilege and franchise is hereby
granted from time to time to construct, ntain, operate, repair,
renew and remave or abandon in place, two pipe lines not to ex-
ceed. twenty (20) inches in inside diameter for the transportation
of petroleum, liqui.d, hydrocarbon substances., gas, including hydrogen,
natural gasoline, water, waste water, mud-, steam and oth6r liquid
and gaseous substances, ;together with all. manholes, service< ,con--
nections .and other appurtenances necessary :or .convenient for the
operation of said pipe lines for the term of forty (4 0) years from
and after the: date: when the franchise :.shall become effective, in,-
under, along and across the publ3e highways, streets, and alleys
'in each of the unincorporated portions of the County of Contra .
Costa for separate franchises, as follows z
1. To Shell Oil Company, a Delaware corporation=
a. Loveridge "Road from: :a point 1.050 feet
North. of the AT. $e S,F®R.R. tracks to the
Pittsburg-Antioch Highway.
b. Pittsburg-Antioch Highway from a point:
400 feet eab te:rly .o.f the centerline of.
Loveridge- Road to the East boundary of
the City of Pittsburg.
c. North Parkside Drive from the West
boundary of the City of Pittsburg to
Willow Pass Road.
d. Willow Pass Road from North Parkside
Drive to Che. Shell Chemical .Corporation
plant East of Manor Drive.
2. To Dow Chemical Company, a. corporation:
a. Loveridge Road from a: point I050 feet
North of the A.T. S.F.R.A. tracks to the
Pittsburg-Antioch Highway-..
3. To Shell Oil Company., a corporation and Dow
Chemical. Company, a adiToration. in ,point
ownership.
as Lone Tree Way from a point 25 feet South.
of the East Bay Municipal Utility :District. 100
foot fee strip in Section 36, T. 2 N., R. 2 E.p
M.D.Bd & K. to a point on the. North .line of
said Section 36.
b. Buchanan Road from the East line of
Somersvil.le Rd. to the West line of the..
Standard. Oil Company Las Medanos Tank Farm
Road.
a. Pitt.gburg-Antioch Highway from Loveridge
Road to a .po.int 2,500 feet. East. of the
centerline of. Loveridge Rd®
SECTION 2.
(a) The word Grantee herein means and includes Grantee
and i.ts successors and assigns.
(b) The we "Count ,herein mars thf%
y :county of Contra
Cos,ta.
(C.) Public highway ' herein means and includes. all the area.
within the: right of way :for all public highways, streets and alleys
.in the unincorporated portions of the County,,: hereinabove set forth.
M Tie words "franchise property". herein means. all property
constructed, installed, operated or maintained in any public highway",
'oursuant to a � right or
ny . s franchise.
.privilege granted by this
SECTiON 3. Thid, fr.anchise. and privilege is granted and shall
be held and enjoyed: only upon the provisiona 'and: conditions prescribed
by law and: those contalned .in this Ordinance. The gran.tee(s) must,
within thirty (30) days after -effective date of this Ordinance,
file wi th the Clerk of the Board of Supervisors of Contra Costa County,
a written acceptance of the terms and conditions of this Ordinance.
SECTION 4... All franchise property to be constructed and
operated under,, this franchise shall be built and constructed in a
good and workmanlike manner and of good material, and any pipe. line,
manhole or other appurtenance laid., located, or maintained under.said
franchise shall be so placed as not to interfere with the use of
said public highway by the traveling public. or for public purposes:..
In constructing, installing and maintaining the franchise property,
the Grantee :shall: make and backfill all excavations in such manner and
way as to leave the surface of: the: public. highway in as good condi-
tion as it wasprior to said excavation, and to repair any trench:
subsidence as well as to conform to the statutes of the State of
California and to existing ordinances and specifications of the'
County, with :respect to the securing of permits and the excavation,
filling and -obstruction of County highways. County shall have the
right to designate the location, or approve plans for the location,
of all pipe lines prior to commencement..of construction. The work
to erect or lay said system shall be commended In good faith. within
not more than.. f our: (4) months from: the granting of this franchise
and If not so corjr-enced the franchise shall be forfeited.
SECTION 5. Wberiever: any portion of :the .territory covered by
this franchise shall be annexed to, or otherwise become. 6 part of. any
municipal corporation, or of any other County,, or of any other political
subdivision of the !.,..;ate of. California, the rignts reserved. under
this franchise to the County, or any officer thereof, shall inure
%to the benefit of sucii. municipal :Corporation or County., and its ap-
propriate officers.
SECTION 6. Grantee shall not sell, transfer or assign: this
franchise or any of the rights or privileges granted hereby .without
the consent of the Board of Supervisors, nor shall this franchise
orrights or privileges be sold, transferred or asaigned except by
a d uly executed ..instrument in writing, filed-in the office of the
p,
County Clerk, of, the. :County,� :and: : rovided, further, that nothing in
this franchise. shall be construed to grant to said. Grantee, any right
to sell, transfer: or assigh this franchise, or any of the rights or
privileges hereby granted, except in the manner aforesaid.
SECTION 7. The County reserves the right to improve any high-
street,. alley or other public places, or portion thereof:, over
and within which: this franchise is granted, including the widening.,
.change of grade., construction or reconstruction of such highway,
stre:et, alley:.or other public: places,, :.or any :portion thereof, and
there is further reserved to the County and:<any municipal corpora-
tioA, political subdivision or district within the County the right
to construct., reconstruct, install, repair and maintain in any such
highway, street, alley or other publfc places, or portion thereof..
any public Improvement. %
It notice in writing is given to the Grantee. ten (10.) days in
advance of the fact that work is to be done pursuant to any right
reserved above In this section, specifying the general nature of
the work and the area in which the same is to be performed, then
.the Grantee shall do all thingsnecessary to :protect its franchise
property during the progress of such work, and if ordered by .the
Board of Supe:rvis,ors of the::C:Ounty, the Grantee shall temporaril.y
disconnect or temporarily remove .:or shall relocate. its franchise
property within the public highway to such extent,. in such manner,
and for such period as shall be necessary to permit the performance
of such work in an economical manner, and. iii accordance with the
generally, recognized engineering and construction methods, and to
-4-
pej:.itiit the maintenance, operation and use of such public improvement
or of the highway, street, alley or other public places as so. im-
proved. All of such.. things to be done and work to be performed. by
the Grantee shall be at the sole -cost and expense of the Grantee.
In the event that the County or any municipal corporation,
political subdivision or district within the County shall hereafter
construct, install, reconstruct or repair any bridge., :culvert, storm
drain, sanitary sewer or other facility owned or operated by any of
suchagencies over or underlying any highway, street., alley or other
public places in: which 'the Granteels franchise property is located,
and in the :event that the costof such work: as may reason.ably be. re-
quired. id increased in order: to provide-Tor the installation, main-
tenance or operation of Or.an.tee's franchise property in or on the
area, covered by or underlain by said bridge or other artificial sup.-
port, then the Grantee shall pay to the County, or such municipal
corporation, political subdivision or district doing such work the
full amount of such increase of cost, upon completion of such con-
struction, installation or repair.
Any damage.: done directly .or indirectly- to any public street,
highway, alley or other public -iffiprovement. by the: Grant.ee, in
exercising directly or indirectly any -right, power or privilege un-
der this franchise, or In performing any duty under or pursuant to
the provisions of this Ordinance, shall be promptly repaired by said
Grantee.,, at. Its sole cost:::and expense, .to the complete satisfaction
of the County.
SECT-TON 8. If the Grantee shall fail to comply or to commence
and nd diligently proceed toward compliance with any instructions of
the Board of Supervisors or Public Works Director, With respect. t. 0
the location of any of said f ranchi5e property or the repair of any
damage to streets i alleys, highways, or other public: facility
.within the highway right of way within ten (10) days after the:
service of written notice. upon the Grantee requiring compliance
therewith, 'then the Board of Supervisors may immediatelycause to be
done. .whateyer work is necessary to carry out theeinstruct ions at the
cost and expense of' the Grantee., which cost :the, Grantee agrees t. .o
pay upon demand,
f
SECTION g.. .e Grantee shall-hold. the C-anty, its authorized
officers, agents :and employees, harmless from. and idemnify it.
against any and all liability or loss resultin"-from claims for.
damages 'by any person arising out of tete acts or omissions of the
Grantee, i:tP1. agents. or employees in the per.formaxzce of .any work
authorized hereunder or arising ou.t. of the existence.,. reconstruction
Pr maintenance of Grantee's facilities. within the public highway
or right of way.
SECTION 10.. The Grantee shall, during the use of this
franchise, pay to the County an annual franchise fee in the amount
of one cent: ($O.01): :per .in.ch of nominal internal :diameter per lineal.
foot :for those parts of the pipe lines which lie and remain< within
the. ..County rights of way. The fees. .shall be paid on or before the
31st of January for the preceding calendar year .or any part thereof
as prorated.
SECTION 1.1. Any neglect, failure or refusal to comply with
,any of the conditions of this franchise, which neglect, failure or
refusal shall :continue for more than fifteen (15) days following
notice thereof to .the Grantee from. the. County:,: shall work a for-
feiture hereof,,. and the said .County, by its Board of Supervisors,
may thereupon declare this franchise forfeited, . and may exclude
said Grantee from further use of the public highways of said County
under this franchise; and said Grantee shall thereupon surrender
all. rights in and to the same, and. this franchise shall be deemed
and shall. remain null, void and of no effect.
SECTION 12. The Grantee,. during the life of. this franchise.,
shall keep on file with the Board of Supervisors and maintain 'in
good standing a bond naming Countyas obligee with .a duly .qualified
corporate surety:, in the penal.. :sum, of One Thousand Dollars ($7:000),
and conditioned that such Grantee. shall well and truly observe.,
fulfill, and perform each term and condition of 'the franchise, and
that incase of any breach, of condition of such. bond, the whole
amount of the penal sun therein named shall be deemed to be
liquidated damages and shall be. recoverable from the principal and
-6-
sureties upon said bond. Said bond shall be filed by the Grantee
p (5) day's after this
with the Board of Su erviears ta3.this� five
franchise is awarded.
SECTION i3- 'The provisions ofh�.s franchise and all rights,
obl#: rations and duties Yiere�axider shall inure to and be banding upon
the Grantee, its slccessors and assigns.
SECTION 14. This ordinance: was adopted after notice, of
sale of franchises given pursuaht to an Girder of this Board passed
and adopted on Muy .14, 2963.
SECTION 15. EFFECTIVE DATE. Tus ordinance shall take eZ-
feet. and be in force on and after the 5th day a£` July, 1963; and
before. the expiration of fifteen (15) days after the date of its
passage the. same shall be published once with the names of the
members voting for and- against the same in the Pittsburg Post
.Dispatch, a newspaper printed and 'Published in the County of Contra
Costa, `State of California..
PASSED AND ADOPTED: by the Board of Supervisors of the County
.of Contra Costa on the. 4th day. of June, 1953, by .the following vote:
AYES: Supervisors- Fames. P. Kenny, .Mel F. Nielsen,
Thomas John Coll, Edmund A. Linscheid,.
Joseph S:. Silva
NOES: Supervisor - None.
ABSENT: Sup:ervisor None..
Uh5IFman or B . .Oa. o uper--
visors of the County of Contra
Costa, State of California
A'Tt.ES` :
W. T. PAASCH
County Clerk and ex-officio. Clerk. of
the Board of Supervisors of the County
of Contra Costa, State of California (SEAL)
By S�eputlr'
CT11: j d