To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Granting of a Pipeline Franchise to Shore Terminals LLC
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT a Resolution granting a ten-year pipeline franchise renewal to Shore Terminals LLC pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305 for pipelines located in the unincorporated area of the County near Crockett as recommended by the Public Works Director.
FISCAL IMPACT:
The pipeline franchise will generate approximately $2,700 per year commencing with calendar year 2024. The annual franchise payment will be calculated at the rate of $1.77 per cubic foot of pipeline within the County right-of-way. The number of cubic feet of pipeline subject to the franchise fee rate will be calculated by taking the area of the inside diameter of the pipeline plus 1” and multiplying it by the length of the pipeline within the County right-of-way. The annual franchise fee rate of $1.77 per cubic foot is increased annually by the change in the Consumer Price Index, all Urban Consumers for the San Francisco-Oakland-Hayward Area (1982-84 = 100), with December 2012 (239.53) as the base CPI month.
BACKGROUND:
On August 13, 2013, this Board adopted Ordinance No. 2013-19 (establishing regulations for granting pipeline franchises in County rights-of-way) and Resolution No. 2013/305 (establishing pipeline franchise fee amounts).
On July 29, 2014, this Board approved Resolution No. 2014/253 granting a pipeline franchise to Shore Terminals LLC pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
Shore Terminals LLC has filed a written application with the County, dated January 17, 2024, wherein it has requested the granting of a pipeline franchise ten-year renewal pursuant to the terms and conditions of County Ordinance No. 2013-19. Shore Terminals LLC provided the deposit to cover all administrative costs associated with the granting of this pipeline franchise renewal, as required by Ordinance No. 2013-19 and Resolution No. 2013/305.
Approval of Resolution No. 24- will grant a pipeline franchise renewal to Shore Terminals, LLC for the following pipelines for a term of ten years:
1. Selby Crockett Richmond Pipeline - 12 inch diameter, 470 feet gasoline, diesel fuel and jet fuel pipeline.
2. Selby Crockett Concord Pipeline - 8 inch diameter, 470 feet gasoline, diesel fuel and jet fuel pipeline.
3. Selby P1 Pipeline - 12 inch diameter, 80 feet gasoline, diesel fuel and ethanol pipeline.
4. Selby P2 Pipeline - 12 inch diameter, 80 feet gasoline, diesel fuel and ethanol pipeline.
5. Selby P4 Pipeline - 12 inch diameter, 80 feet jet fuel pipeline.
6. Selby P5 Pipeline - 12 inch diameter, 80 feet jet fuel pipeline.
7. Selby P7 Pipeline - 6 inch diameter, 80 feet ethanol pipeline.
8. Selby Vapor Pipeline - 12 inch diameter, 80 feet vapor pipeline.
All eight pipelines were included in the approval of Resolution No. 2014/253. Shore Terminals LLC determined that there have been no changes to the pipelines.
CONSEQUENCE OF NEGATIVE ACTION:
Shore Terminals LLC will not obtain the required authorization to continue to operate and maintain their pipelines within the County right-of-way under the Pipeline Franchise Ordinance. The Pipeline Franchise Ordinance includes provisions to protect the County from risks associated with pipelines.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
IN THE MATTER OF a resolution of the Board of Supervisors of the County of Contra Costa authorizing the granting of a ten year pipeline franchise renewal to Shore Terminals LLC. The Board of Supervisors of the County of Contra Costa finds and declares:
WHEREAS, on August 13, 2013, this Board adopted Ordinance No. 2013-19 (establishing regulations for granting pipeline franchises in County rights-of-way), which became effective September 12, 2013; and Resolution No. 2013/305 (establishing pipeline franchise fee amounts).
WHREAS, on July 29, 2014, this Board approved Resolution No. 2014/253 granting a pipeline franchise to Shore Terminals LLC pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
WHEREAS, Shore Terminals LLC has filed a written application with the County, wherein it has requested the granting of a ten year pipeline franchise renewal pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
WHEREAS, Shore Terminals LLC has identified the following eight pipelines, which it owns and will be covered under the proposed pipeline franchise renewal as:
1. Selby Crockett Richmond Pipeline - 12 inch diameter, 470 feet gasoline, diesel fuel and jet fuel pipeline.
2. Selby Crockett Concord Pipeline - 8 inch diameter, 470 feet gasoline, diesel fuel and jet fuel pipeline.
3. Selby P1 Pipeline - 12 inch diameter, 80 feet gasoline, diesel fuel and ethanol pipeline.
4. Selby P2 Pipeline - 12 inch diameter, 80 feet gasoline, diesel fuel and ethanol pipeline.
5. Selby P4 Pipeline - 12 inch diameter, 80 feet jet fuel pipeline.
6. Selby P5 Pipeline - 12 inch diameter, 80 feet jet fuel pipeline.
7. Selby P7 Pipeline - 6 inch diameter, 80 feet ethanol pipeline.
8. Selby Vapor Pipeline - 12 inch diameter, 80 feet vapor pipeline.
WHEREAS, the County has reviewed the application as well as relevant documents, staff reports, and recommendation and it is the intent of the Board to grant a pipeline franchise to Shore Terminals, LLC pursuant to Ordinance 2013-19 and Resolution 2013/305.
NOW, THEREFORE, BE IT RESOLVED:
1. The Board of Supervisors of Contra Costa County finds and declares that the foregoing recitals are true and correct.
2. Pursuant to Ordinance No. 2013-19, a franchise renewal to operate pipelines on certain County rights of way as described below is hereby granted to Shore Terminals LLC, for a term of ten years.
a. A 12-inch diameter gasoline, diesel fuel, and jet fuel pipeline bisecting the County from East to West and crossing various County rights of way for a lineal distance of approximately 470 feet (Selby Crockett Richmond Pipeline).
b. An 8-inch diameter gasoline, diesel fuel, and jet fuel pipeline bisecting the County from East to West and crossing various County rights of way for a lineal distance of approximately 470 feet (Selby Crockett Concord Pipeline).
c. A 12-inch diameter gasoline, diesel fuel, and ethanol pipeline bisecting the County from South to North and crossing various County rights of way for a lineal distance of approximately 80 feet (Selby P1 Pipeline).
d. A 12-inch diameter gasoline, diesel fuel and ethanol pipeline bisecting the County from South to North and crossing various County rights of way for a lineal distance of approximately 80 feet (Selby P2 Pipeline).
e. A 12 inch diameter, jet fuel pipeline bisecting the County from South to North and crossing various County rights of way for a lineal distance of approximately 80 feet (Selby P4 Pipeline).
f. A 12-inch diameter, jet fuel pipeline bisecting the County from South to North and crossing various County rights of way for a lineal distance of approximately 80 feet (Selby P5 Pipeline).
g. A 6-inch diameter, ethanol pipeline bisecting the County from South to North and crossing various County rights of way for a lineal distance of approximately 80 feet (Selby P7 Pipeline).
h. A 12-inch diameter, vapor pipeline bisecting the County from South to North and crossing various County rights of way for a lineal distance of approximately 80 feet (Selby Vapor Pipeline).
3. The general location of the pipelines is depicted on the maps attached hereto as Exhibit 1.
4. The annual franchise payment to be paid pursuant to County Resolution 2013/305 shall be calculated at the rate of $1.77 per cubic foot of pipeline within the County right-of-way. The number of cubic feet of pipeline subject to the franchise fee rate will be calculated by taking the area of the inside diameter of the pipeline plus 1” and multiplying it by the length of the pipeline within the County right-of-way. The annual franchise fee rate of $1.77 per cubic foot is increased annually by the change in the Consumer Price Index, all Urban Consumers for the San Francisco-Oakland-Hayward Area (1982-84 = 100), with December 2012 (239.53) as the base CPI month.
5. The Director of Public Works, or his designee, is authorized to administer the pipeline franchise granted pursuant to this resolution.
6. The Resolution shall take effect upon the following:
Within 30 days of the date of this Resolution, Shore Terminals LLC must file with the Public Works Department the following: (1) a written acceptance of the terms and conditions of the franchise granted pursuant to this Resolution, Ordinance No. 2013-19, and Resolution No. 2013/305; (2) a performance bond in the form approved by the Board; and, (3) insurance coverage as required by Ordinance 2013-19.