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HomeMy WebLinkAboutMINUTES - 10142008 - C.68 TO: BOARD OF SUPERVISORS . = Contra FROM: Catherine Kutsuris, Director Costa Department of Conservation & Development F County DATE: October 14, 2008 SUBJECT: SERVICES TO THE CALIFORNIA ENERGY COMMISSION SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION L RECOMMENDATIONS APPROVE and AUTHORIZE the Director Department of Conservation & Development, or designee, to enter into a Memorandum of Understanding with the California Energy Commission (CEC) to provide design review, plan check, construction inspection, of the Los Medanos Energy Center Transmission Line Addition Project (LMEC). II. FISCAL IMPACT None. All costs will be reimbursed through fees. CONTINUED ON ATTACHMENT: X YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE (S): ACTION OF BOARD ON t�t� �� APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND K_UNANIMOUS(ABSENT CORRECT COPY OF AN ACTION TAKEN AND ENTERED AYES: NOES: ON THE MINUTES OF THE BOARD OF SUPERVISORS ABSENT: ABSTAIN: ON THE DATE SHOWN Contact: Thom Huggett(9251335-1108) ATTESTED D"` N ( � cc: Building Inspection DAVID TWA, CLERK OF THE BOARD OF SUPERVISORS County Administrator AND COUNTY ADMINISTRATOR County Counsel TH:bm BY l_�� V l/��'-S , DEPUTY \bdord October 14, 2008 Board of Supervisors Page 2 III. BACKROUND & REASON FOR RECOMMENDING APPROVAL The California Energy Commission has requested the assistance of the Contra Costa County Building Inspection Division, Department of Conservation & Development, to provide design review, plan check, and construction inspection of the Los Medanos Energy Center(LMEC) Transmission Line Addition Project. On March 17, 2008, the LMEC, LLC, filed a petition with the California Energy Commission requesting to modify the LMEC Project. This petition was approved on September 10, 2008. The 555 megawatt LMEC was certified by the Energy Commission on September 17, 1999, and began commercial operation on July 9, 2001. The facility, formerly known as Pittsburg District Energy Facility, is located in the City of Pittsburg, in eastern Contra Costa County. The LMEC Transmission Line addition project would add a new 4,950-foot-long (0.93- mile-long) Double-circuit 115-kilovolt transmission line that would extend from LMEC to the Dow Pittsburg Facility (DOW), owned by Dow Chemical Company, located east of LMEC. This transmission line will be a dedicated line allowing Los Medanos Energy _ Center LLC's parent company (Calpine Corporation) and Dow Chemical Company, to decommission an older; less efficient power plant at the DOW facility. The DOW power plant would be removed and the chemical facility's electricity needs would be met by newer, cleaner, and more efficient power from the LMEC facility. Because of the close proximity of LMEC to DOW, there will be little transmission loss of electricity. The line will be built in partnership between LMEC and DOW. DOW will own the completed line. The Contra Costa County Building Inspection Division, Department of Conservation & Development, has recent experience in reviewing and inspecting power plants and performed those services on the LMEC when it was constructed in 1999-2001. The project will be able to be completed with existing staff and not require the addition of any FTEs. EXHIBITS 1. Memorandum of Understanding (MOU) between the California Energy Commission and Contra Costa County MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CALIFORNIA ENERGY COMMISSION AND CONTRA COSTA COUNTY FOR DESIGN REVIEW, PLAN CHECK AND INSPECTION OF THE LOS MEDANOS ENERGY CENTER TRANSMISSION LINE ADDITION 98-AFC-IC 0 RECITALS: A. On March 17, 2008, Calpine Corporation filed a petition with the Energy Commission to modify the Los Medanos Energy Center(LMEC) to include a new 'transmission line. The petition proposed to add a new transmission line extending from LMEC to the Pittsburg facility of The Dow Chemical Company. The LMEC is located in the city of Pittsburg in Contra Costa County. For purposes of this MOU, "Project" means the LMEC and "Project Changes" means the new transmission line extending from LMEC to the Pittsburg facility of The Dow Chemical Company. B. The Energy Commission approved the petition to amend on September.10, 2008. The Energy Commission must ensure that the Project and any approved modifications to the Project are designed, constructed, and operated in conformity -with the Energy Commission's Decision (the LMEC certification, No. 98-AFC-1 C), the California Building Standards Code (CBSC), the local building codes (Codes) adopted by the County of Contra Costa, and applicable laws, ordinances, regulations, and standards (LORS) to ensure health and safety. C. The Energy Commission Decision requires that Calpine Corporation submit engineering plans, calculations, specifications, and other related information to the Delegate Chief Building Official (Delegate CBO) for review and approval, prior to and during construction of the transmission line. The intent of this requirement is to provide an independent review of the final design and inspections to ensure compliance with applicable LORS. D. The design review, construction inspections and necessary approvals prior to and during construction of the transmission line will be provided by Contra Costa County, a fully qualified third party contractor experienced in providing industrial building official services, acting as the Energy Commission's Delegate CBO to ensure independent review of the Project Changes. LOS MEDANOS TO DOW DELEGATE CBO MOU TRANSMISSION LINE CONTRA COSTA COUNTY AND THE ENERGY COMMISSION AGREE AS FOLLOWS: 1. .The above recitals are incorporated into this agreement. 2. Contra Costa County shall act as the Energy Commission's Delegate CBO for enforcement of local building codes, the CBSC and other engineering LORS applicable to the Project Changes to ensure health and safety. Contra Costa County will also be responsible for the design review, plan check, and construction inspection of the foundation, anchorage, and connections for structures and equipment required for installation of the transmission line. Contra Costa County acting as the Delegate CBO for the Project Changes shall carry out these duties with all the rights and immunities afforded the Delegate CBO by)the Codes including but not limited to the immunity granted under California Government Code section 818.6. The ultimate responsibility for facility design, construction,-and operational compliance remains with Calpine Corporation. 3. Although Contra Costa County will function as the Energy Commission's Delegate CBO, the Energy Commission has the final authority and responsibility to ensure that the transmission line is"built in accordance with the applicable engineering LORS and the Energy Commission Decision. The Energy Commission's legal authority to enforce the terms and conditions of its Decision is specified in California Public Resources Code section 25500 et seq. The Energy Commission may amend or revoke the certificationfor 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 Energy Commission Decision. 4. To ensure compliance with the Facility Design and the applicable engineering LORS, the Delegate CBO is authorized to take any action allowed by the California Code of Regulations and law to ensure that the Energy Commission's interests are properly addressed and protected. If the Delegate 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 Delegate CBO shall seek the cooperation and assistance of the compliance project manager(CPM) appointed by the Energy Commission. The Delegate 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 Changes. For any action taken under emergencyconditions, the CPM shall be notified within 24 hours of the action. 5. In the performance of this agreement, Contra Costa County, 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 Energy Commission shall have the right to approve the qualifications of Contra Costa County engineering and technical personnel and the scope of work they will perform. Contra Costa County shall notify the CPM if there is any change in personnel assigned to the Project Changes team. Replacement LOS MEDANOS TO DOW 2 DELEGATE CBO MOU TRANSMISSION LINE personnel shall not work on the Project Changes until they are approved by the CPM. J ' 7. Contra Costa County may retain the services of one or more independent qualified subcontractor(s) to supplement Contra Costa County employees in the design review, plan check, and construction inspection. The subcontractor(s) will answer directly to, and be responsible to, the Delegate.CBO. The Delegate 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 Delegate CBO will retain responsibility for the construction inspections required by section 108.4.4 of the CBSC and for monitoring special inspections required by chapter 17 of the CBSC. 8. Contra Costa County 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. Contra Costa County shall also require that during the course of this agreement its subcontractors or its agents will not be directly, or indirectly, employed by the Project owner or any entity of which itis a holding, subdivision, or subsidiary. 9. At the request of the CPM, the Delegate CBO, its subcontractor(s), and any special inspectors shall assist the CPM in any audits or inspections of the Project Changes. 10. Contra Costa County shall enter into a contract with Calpine Corporation, on terms and conditions acceptable to the Contra Costa County and Calpine, for the payment of fees by Calpine to Contra Costa County for the County's provision of Delegate CBO services provided. Contra Costa County will not provide any Delegate CBO services without a contract between the County and Calpine. The Energy Commission through the CPM shall ensure that the fees charged to Calpine Corporation for the review and inspection services provided by the Delegate CBO and any subcontractors are reasonable. These fees may be based on the County fee schedule, may be based on the value of the facilities reviewed, may be based on hourly rates, or as otherwise agreed to by the Contra Costa County and Calpine. Payments to Contra Costa County for work satisfactorily completed may be paid directly to Contra Costa County in advance, in arrears, or from a credit account established with Contra Costa County by Calpine Corporation. The contract between the Project owner and Contra Costa County shall include a provision that Calpine Corporation may not terminate the contract with, or payments to, Contra Costa County without prior authorization of the CPM. At least ten days prior to execution of the contract between Calpine Corporation and Contra Costa County, the proposed contract must be submitted to the CPM for review and.approval. 11. The Delegate CBO shall take all reasonable measures to accommodate Calpine Corporation's design-and construction schedule, including, but not limited to, adding staff to its workforce and/or retaining the services of additional independent qualified subcontractor(s). LOS MEDANOS TO DOW 3 DELEGATE CBO MOU TRANSMISSION LINE 12. The Delegate 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 all Transmission System Engineering Conditions of Certification to comply with the 2007 CBSC. 13. The Delegate CBO shall review and approve any of Calpine Corporation's proposed special and continuous inspection reporting programs required by chapter 17 of the 2007 CBSC, California Mechanical Code and other related codes, and shall approve the qualifications and experience of the proposed special inspectors. Where.appropriate, subject to CPM approval, Contra Costa County may accept the results of inspections performed by Calpine Corporation's special inspectors. 14. The CPM shall have the right to audit Contra Costa County and its subcontractors' performance to ensure that they are. properly carrying out their duties and responsibilities and that Calpine Corporation is implementing the Energy Commission Decision requirements for the design and construction of the Project Changes. 15. Contra Costa County, Incorporated and subcontractor(s) may discuss all aspects of the Project Changes with each other, the CPM, and Calpine Corporation's construction contractors and engineers. The Delegate 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 Energy 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. 16. The Delegate CBO shall provide weekly reports on the status of construction of the Project Changes to be posted to a website or via email to the CPM. The reports shall include: executive summary of current issues; general activities occurring at the Project Changes site; the completion percentage of overall construction; compliance issues with applicable LORS and applicable Conditions of Certification; issues of concern with or by Calpine Corporation; status of interconnections; scheduled activities for the following week; and potential delays to the on-line date of the Project Changes. 17. The Delegate CBO shall submit the results of all plan checks and construction inspections, including recommendations, to Calpine Corporation 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 Delegate CBO should proceed with reviews and approvals of all components designated in all Transmission System Engineering Conditions of Certification in accordance with any additions and deletions approved by,the CPM, unless instructed otherwise by the CPM. Approved plans, specifications, calculations and marked-up as-builts shall be retained by the Delegate CBO for 90 days from the date of completion of construction of the Project Changes, after which the Delegate CBO shall deliver them to the Project owner for long-term retention at the Project site or other accessible location [2007 CBSC, section 108.4.3.1]. Electronic copies of the approved plans, specifications, calculations and marked-up as-builts and LOS MEDANOS TO DOW 4 DELEGATE CBO MOU TRANSMISSION LINE other relevant submittals shall be provided to the CPM, in the form of compact discs, within 90 days of completion of construction on the Project Changes. 18. The Energy Commission, through the CPM, retains the final authority over all matters relating to interpretation of the Conditions of Certification. 19. The term of this agreement (MOU) is indefinite but shall terminate when all of the mutual obligations have been performed and satisfied. It shall also terminate at such time as Calpine Corporation fails to pay fees as required or renders Contra Costa County's performance under this agreement impossible. Notwithstanding the foregoing, Contra Costa County or the Energy Commission may terminate this agreement upon five (5) days advance written notice complying with the provisions of section 22 below: 20. All correspondence regarding this agreement, including invoices, payments, and notices, shall be directed to the following persons at the following addresses and telephone numbers: DELEGATE CBO: Thom Huggett, SE Interim Deputy Director Department of Conservation and Development Contra Costa County Building Inspection Division 651 Pine Street, 3rd Floor, NW Martinez, CA 94553 (925) 335-1108 (925) 646-1219 fax t h u gg 6j0.ccco u nty.u s ENERGY COMMISSION: Ron Yasny, Compliance Project Manager California Energy Commission 1516 9th Street, MS 2000 Sacramento, CA 95814 Phone (916) 651-1227 Fax (916) 654-3882 ryasny energy.state.ca.us Written correspondence shall be sent either by personal delivery (including. overnight delivery service), by U.S. Mail, postage prepaid, fax, or e-mail; it shall be considered delivered when actually received. 21. This memorandum of understanding shall be effective upon.execution by all parties. 22. In the event of a conflict between this MOU and an Energy Commission Decision granting an application for certification, the Energy Commission Decision shall take precedence. LOS MEDANOS TO DOW 5 DELEGATE CBO MOU TRANSMISSION LINE 23. 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. 24. 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 Contra Costa County and the Energy Commission. Contra Costa County has reviewed this MOU and understands its duties and responsibilities. Signed by: CONTRA COSTA COUNTY DATED: BY: THOM HUGGETT, SE Delegate CBO Interim Deputy Director Dept. of Conservation and Development Building Inspection Division CALIFORNIA ENERGY COMMISSION 0 DATED: BY: TERRENCE O'BRIEN, Deputy Director for Systems Assessment and Facilities Siting 1 LOS MEDANOS TO DOW 6 DELEGATE CBO MOU TRANSMISSION LINE