HomeMy WebLinkAboutMINUTES - 07112000 - SD19 TO: BOARD OF SUPERVISORS Contra FROM: Supervisor Donna Gerber—District III •• ; ;, t ' l
Costa
DATE: July 11, 2000 r Cour"qty
CONSIDER Board action in regard to sale of Tosco Avon Re to
susJECT: San Antonio based Ultramar Diamond Shamrock Corporation (UDS)
as recommended by Supervisor G6rber.
SPECIFIC REOUEtT(i)OR REOOMMENDATION(t)A"MOROLM AND JUSTIFICATION
RECOMMENDATION:
1. AUTHORIZE the County Administrator and County Counsel to
analyze the sales contract and other related documents between Tosco
Refining Company and Ultramar Diamond Shamrock Corporation
and report back to the Board.
2. AUTHORIZE the CAO and County Counsel to research and
consult with experts in order to provide the Board with an analysis
and report on the corporate culture of UDS, Corporate structure,
Corporate financial status, Board Members, Safety Record nationally
and in California, environmental record, and the financial goals
driving their purchase of Tosco Avon.
3. ESTABLISH an Ad Hoc Board Committee on Refinery Safety
composed
of Supervisors DeSaulnier and Uilkema to work with the CAO,
County Counsel, Hazardous Materials staff, and the two companies in
order to provide Board oversight to the sale and review the
ramifications for the County financially, environmentally and in
regard to public and worker safety. The Ad Hoc Committee will
report back to the Board once they have completed their review no
later than December 2000.
CON`TIWWD OM AT7AOW&NT: .`....T11 t
RECOMMENDATION Of COUNTY ADMINISTRATOR RECOMMENDATION OF*oARD commrrr&jt'
APPROVE ��OTHER
ACTION Of BOAJtD DM -- July 11. 2000 APROM AS RECOWMEMDED OTHER X
SEE THE ATTACHED AD MXM FOR BOARD VOTE AND AMOK
VOTE Of SUPERIIt!
I NERnY CERTIFY THAT THIS X A TRUE
LRtANIMOUI(ASNN'T AND CORRECT COPT Of AN ACTION TAKEN
AYES: NOE$: AND ENTERED ON TME MINUT"OF TAX BOARD
ABSENT: ABiTAIM Of SUPERVISORS ON TIME DATE IMOWN.
cr ATT1ti7ED July 11, 2000
PHIL BATCHELOR.CLERK Of THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
BY 4✓
M382 (101M) ,DEPUTY
Pg 1
4. REQUEST UDS to appear before the Board as soon as scheduling
permits to describe their intentions regarding safety and
environmental standards at the former Avon facility.
BACKGROUND:
On 7/5/00 the press informed the County that Tosco had completed a
sales agreement to sell the Avon facility. This follows a major public
hearing held just two weeks ago with the three refining companies
regarding several safety issues including unannounced inspections.
Characteristically, Tosca failed to mention a sale they were obviously
processing at that time. They also failed to mention this to the
Regional Water Quality Board as they pleaded to be released from
dioxin regulations.
This is just the latest of a series of incidents that points out that the
County is always in a reactive state with regard to refinery activity.
Our preference would be that industry and individual companies
would be utilizing best business practices and the County could relate
to them cooperatively much as we do with other industries and
businesses. However, the refineries' history of repeated releases,
fatal accidents and soaring gasoline prices require a proactive
approach by the County and the Board. Given the number of
refineries in the County and the past history, it is appropriate that as a
new company comes into the County, the Board acts decisively to
establish a different relationship and proactive oversight.
In order to do that effectively, we should (consistent with our
practice) designate the Supervisors who have refineries in their
district (the unincorporated area) to lead the effort on behalf of the
Board. This will provide an organized focus for both the County and
industry for communication, sharing of information and hopefully a
safer future. The Ad Hoc Committee on Refinery Safety can
specialize and concentrate on the complicated issues and provide the
full Board with further recommendations so that we won't always be
in a reactive position.
Since the committee will provide Tosca and UDS with a clearly
defined communication vehicle, perhaps they can be encouraged to
work with the Board Committee and County staff instead of through
their public relations staff following each crisis or announcement.
Pg 2
ADDENDUM TO ITEM SD.19
July 11, 2000 Agenda
On this date, the Board of Supervisors considered action regarding the sale of Tosco Avon Refinery to
San Antonio based Ultramar Diamond Shamrock Corporation(UDS).
Supervisor Gerber introduced the recommendations. She stated she had met with the President and CEO
of UDS, and wished to take a proactive stance with regard to their purchase of the aged refinery.
Following Board discussion, Supervisor Uilkema stated she wished to begin this new relationship in a
positive manner, and suggested deleting Recommendations 1 and 2, and establishing an ad hoc
committee on which she was willing to serve. Further, she suggested UDS come to a Board meeting for
introductions. She advised the Board that it was her understanding that Tosco and UDS would be willing
to provide the Board with the information requested in Recommendations 1 and 2. Supervisor Uilkema
further moved Recommendations 3 and 4. The motion failed for the lack of a second.
Supervisor DeSaulnier stated that if an ad hoc committee were established, he would be willing to serve
on it. He suggested that the Hazardous Materials Commission be included in any future committee
discussions.
The Board continued to discuss the matter.
Supervisor Gerber moved to establish the ad hoc committee, which would have the opportunity to ask
County Counsel, staff and the Hazardous Materials Commission for the information outlined in the
Board Order; on Recommendation No. 4, the representative from UDS be requested to appear before the
Board in September,make their presentation and at that time the Board could decide whether
additional information was needed.
Supervisor Uilkema seconded the motion.
Supervisor Canciamilla stated he was not in support of the motion, he advised the Board that they might
be sending the wrong message, all that could be done would be to try and establish a positive working
relationship with UDS. Supervisor Canciamilla said that the Board of Supervisors has no authority over
the sale of the refinery,he was not prepared to relinquish oversight or responsibility for refinery safety
to an ad hoc committee. Any discussions regarding UDS should be before the Board as a whole.
Following further discussion, Supervisor DeSaulnier offered a substitute motion,that the Chair send a
letter to the CEO of UDS,requesting that he appear before the Board and answer questions regarding:
their corporate structure;their corporate financial status; their Board members; their safety record,
nationally, in California and their Quebec operation; their environmental record; financial goals; the
transitional policy in terms of operation at the plant; and any other questions or concerns the Board may
have. Gioia seconded the motion.
Supervisor Gerber expressed her concern that the substitute motion was not the most effective way for
the Board to interact on this issue.
Following further discussion, the question was called, and the vote was as follows:
AYES: SUPERVISORS GIOIA, UILKEMA and DeSAULNIER
NOES: SUPERVISORS CANCLWILLA and GERBER
ABSENT: NONE
ABSTAIN: NONE
The Board took the following action:
IT IS BY THE BOARD ORDERED that the Chair is DIRECTED to send a letter to the
CEO of Ultramar Diamond Shamrock Corporation (UDS) REQUESTING he appear before the
Board and answer questions regarding: their corporate structure; their corporate financial status;
their Board members; their safety record,nationally, in California and include their Quebec
operation; their environmental record; their financial goals; to explain the transitional policy in
terms of operations at the plant; and any other questions or concerns that the Board may have.
pg 3
The Board of SupervisorsO�l�C Phil Batchelor
Clerk of the Board
Costa and
County Administration Building COtSnty AdmtniSlrBior
651 Pine Street, Froom 106 (925)335.1900
Martinez, California 54553-1293 County I
...,..
John toia, 1st District t;:..=.
----.'�`,
Gayle U'stkema.2nd District
Gonna Gerber,3rd District
Mark DeSautnier,4th Districts
Joe Canciamii€a,5th District �•
July 24, 2000
Mr. jean Gaulin,
President and Chief Executive Officer
Ultramar Diamond Shamrock Corporation (UDS)
P.O. Box 696000
San Antonio,TX 78269-6000
Dear. Mr. Gaulin:
The Contra Costa County Board of Supervisors is very concerned about the
frequency and severity of accidents at the Tosco Avon Refinery. As you know, we
have had an ongoing dialogue with the Tosco Corporation for some time regarding
these incidents and have conducted numerous investigations, including a safety
audit by an independent consultant that identified weaknesses in safety procedures
and internal communication.
The Board of Supervisors would like to work with you, as President and CEO of
UDS, to make the Tosco Avon Refinery and the surrounding communities safer. To
this end, the Board has established an Ad Hoc Committee on Refinery Safety to
provide a communication link between the County and UDS. Additionally, l would
like to invite you to a meeting of the Board of Supervisors to provide you the
opportunity to discuss UDS's:
➢ Corporate culture, structure
> Financial status and goals
➢ Board structure and membership
> Safety record in California,the U. S. and Quebec
➢ Environmental record
JEAN GAULIN INVITATION TO BOAR[ MEETING
PAGE 2
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➢ Transition plans and policies in terms of plant operations
We can offer the following Board meeting dates for your attendance: Tuesday,
September 26 or Tuesday, October 3.
The Board of Supervisors looks forward to working cooperatively with UDS in our
new relationship. I would appreciate your response to this invitation by August 11,
2000 to allow us ample time to prepare our Board agenda.
ce ly, ,
DONNA GERB
Chair, Board of Supervisors
Cc: Phil Batchelor, County Administrator
William Walker, M.D., Health Services Director