Agenda

Return

C. 60

To:	Board of Supervisors
From:	Julia R. Bueren, Public Works Director/Chief Engineer
Date:	December 13, 2016

Contra

Costa

County

Subject:

Granting of a Pipeline Franchise to Plains Products Terminals LLC

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 12/13/2016

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Carrie Ricci (925) 313-2235

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: December 13, 2016
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2016/670 granting a pipeline franchise to Plains Products 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 Martinez, as recommended by the Public Works Director.

FISCAL IMPACT:

The pipeline franchise will generate approximately $24,500 per year in revenue to the General Fund, commencing with calendar year 2016. 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 will be increased annually by the change in the Consumer Price Index, all Urban Consumers for the San Francisco-Oakland-San Jose 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).

Plains Products Terminals LLC has filed a written application with the County, dated February 3, 2014 wherein it has requested the granting of a pipeline franchise for the transportation of gasoline, natural gas, and petroleum products pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305. Plains Products Terminals LLC also provided a $5,000 deposit to cover all administrative costs associated with the granting of this pipeline franchise as required by Ordinance No. 2013-19 and Resolution No. 2013/305.

Approval of Resolution No. 2016/670 will grant a pipeline franchise to Plains Products Terminals LLC for the pipelines shown in the table below for an initial term of 10 years. The pipelines were previously covered under existing County pipeline franchise agreements which have since expired.

Pipeline Name	Type	Diameter	Length
Line 191	Gasoline	12"	3,351 ft
PG&E Connection to Martinez Terminal	Natural Gas	6"	3,523 ft
Line 929	Petroleum	12"	3,523 ft
Line 930	Petroleum	16"	3,523 ft

CONSEQUENCE OF NEGATIVE ACTION:

Plains Products Terminals LLC will not obtain the required authorization to operate and maintain their pipelines within the County right-of-way.

VOTE OF SUPERVISORS

RECOMMENDATION(S):

FISCAL IMPACT:

BACKGROUND:

CONSEQUENCE OF NEGATIVE ACTION:

CHILDREN'S IMPACT STATEMENT: