To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Phillips 66 Community Benefit Fund Allocations FY 2024/25
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
1. APPROVE the allocation of $392,700 from the Rodeo Renewed Community Benefit Fund to provide expanded services and benefits to the Rodeo and Crockett areas, as recommended by Supervisor Glover.
2. AUTHORIZE the Conservation and Development Director, or designee, to execute contracts with identified public and private organizations to carry out the services and benefit activities, as specified in Attachment A, for the period July 1, 2024 through June 30, 2025, subject to approval by the County Administrator and approval as to form by County Counsel.
FISCAL IMPACT:
No impact to the General Fund. 100% Rodeo Renewed Community Benefit Fund.
BACKGROUND:
In 2022, the Board of Supervisors (Board) approved the Phillips 66 Company land use permit (LUP) for the Phillips 66 Rodeo Renewed Project (Project). The Project is a unique land use with unique impacts on the Rodeo and Crockett communities. The LUP contained a condition of approval (Condition #10), which provides that Contra Costa County and Phillips 66 enter into a Community Benefits Agreement providing for certain payments to Contra Costa County upon certain conditions being satisfied relating to the Project. The subject agreement, the Community Benefits Agreement between contra Costa County and Phillips 66 Company (CBA), was entered into as of May 3, 2022.
The CBA requires Phillips 66 to pay a total of $10,000,000 to the County according to milestones and time intervals set forth in the CBA over the course of approximately 13 years.
Currently, $2 million has been paid pursuant to the agreement and no expenditures have been made.
The CBA provides the County will use the funds at its discretion for projects and programs that benefit the Rodeo and/or Crockett communities near the Phillps 66 Refinery. These initiatives will focus on improving residents' health, well-being, and quality of life, and supporting a robust local economy and workforce. This includes developing and implementing workforce development and training programs to prepare residents for careers in renewable and clean energy.
Proposals Received
Earlier this year, the County’s District 5 Supervisorial Office received and reviewed proposals from various public and private organizations to provide expanded services or community benefit activities within the Rodeo or Crockett communities. The recommended proposals with recommended amounts of funds are listed in Attachment A. This will be the first award of funds to organizations from the Phillips 66 Community Benefit Fund to carryout services or community benefit activities. The District 5 Supervisor is working with the County’s Department of Conservation and Development to launch a community engagement effort to seek public input on future expenditures. DCD will report back to the Board on the results of this public engagement and seek authorization to initiate a solicitation process for future awards in coordination with the District 5 Supervisorial Office.
CONSEQUENCE OF NEGATIVE ACTION:
Not approving the recommended allocations will result in delays in implementing important projects/programs that directly benefit the residents of communities near the Rodeo Renewed Project.