Agenda

Return

C. 27

To:	Board of Supervisors
From:	Brian M. Balbas, Public Works Director/Chief Engineer
Date:	March 26, 2019

Contra

Costa

County

Subject:

Assumption and Consent Agreement for Plains Products Terminals LLC to transfer a pipeline franchise to TransMontaigne Operating Company L.P.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 03/26/2019

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

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

ABSENT:

Diane Burgis, District III 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: March 26, 2019
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2019/92 approving the Assumption of Contra Costa County Pipeline Franchise and County Consent to Transfer for Plains Products Terminals LLC to transfer pipeline franchise 2016/670 to TransMontaigne Operating Company L.P.

FISCAL IMPACT:

There will be no fiscal impact from this action.

BACKGROUND:

On December 13, 2016, the County granted a pipeline franchise to Plains Products Terminals LLC to operate one gasoline pipeline, one natural gas pipeline, and two petroleum pipelines within the County for a term of 10 years per County Resolution No. 2016/670 (the “2016/670 Franchise”).

Effective December 15, 2017, Plains Products Terminals LLC transferred certain of its assets to TransMontaigne Operating Company L.P., including its rights in the 2016/670 Franchise, pursuant to an Assignment of Leased Real Property and Rights of Way Interests, dated December 15, 2017, between Plains Products Terminals LLC and TransMontaigne Operating Company L.P.

On December 19, 2017, Plains Products Terminals LLC sent written correspondence to the Public Works Department wherein it requested the consent of County to the transfer and assignment of the 2016/670 Franchise to TransMontaigne Operating Company L.P.

On December 19, 2017, TransMontaigne Operating Company L.P. sent written correspondence to the Public Works Department wherein it requested the consent of the County to the transfer and assignment of the 2016/670 Franchise to Plains Products Terminals LLC.

Approval of Resolution No. 2019/92 will transfer the 2016/670 Franchise to TransMontaigne Operating Company L.P., and authorize the Public Works Director, or his designee, to execute the Assumption and Consent Agreement whereby TransMontaigne Operating Company L.P. agrees to abide by the terms of the County franchise ordinance and post the required bond.

CONSEQUENCE OF NEGATIVE ACTION:

TransMontaigne Operating Company L.P. will not acquire the pipeline franchise.