Contract with Ramboll Americas Engineering Solutions, Inc. to Support Annual Compliance Report Monitoring

Chevron & the RefineryZoning

Official Agenda Text

APPROVE a contract with Ramboll Americas Engineering Solutions, Inc. for an amount not-to-exceed $263,400, to support the Planning Division’s annual review of the Chevron Richmond Refinery Modernization Project conditional use permit compliance monitoring, for a term ending June 30, 2031 – Community Development Department (Lina Velasco/Avery Stark 510-620-6841).

Financial Impact

The proposed $263,400 expenditure will be funded by applicant fees collected by the Planning Division to cover the City’s costs associated with compliance monitoring required by the Conditional Use Permit. There is no impact on the General Fund.

Previous Council Action

July 29, 2014

Statement Of The Issue

A conditional use permit was approved by the City of Richmond for Chevron’s Richmond Refinery Modernization Project. The EIR analyzed a no-net increase (NNI) in criteria air pollutants (CAPs) and health risks from toxic air contaminants (TACs), and no project increase (NPI) in GHG emissions. The City is required to monitor the Project’s compliance annually, including its operational emissions. Community Development staff is requesting approval of a sole source contract with Ramboll Americas Engineering Solutions, Inc. to continue to support Planning staff in its annual review of the Chevron Richmond Refinery’s Modernization Project compliance report

Recommended Action

APPROVE a contract with Ramboll Americas Engineering Solutions, Inc. for an amount not-to-exceed $263,400, to support the Planning Division’s annual review of the Chevron Richmond Refinery Modernization Project conditional use permit compliance monitoring, for

a term ending June 30, 2031 – Community Development (Lina Velasco/Avery Stark 510-620-6841).

Discussion

On July 29, 2014, the City of Richmond approved Conditional Use Permit and Design Review Permit No. PLN11-089 (CUP) authorizing construction and operation of the Modernization Project, which included the construction of a new hydrogen plant, improvements to the sulfur recovery units (SRUs), and related infrastructure and tie-ins. On February 11, 2015, the Bay Area Air Quality Management District (District) reissued Authority to Construct (ATC) No. 12842 authorizing the same.

The City prepared an Environmental Impact Report (EIR) for the project and it was certified by the City on July 29, 2014, and includes the Mitigation Monitoring and Reporting Program, which was adopted by the City to mitigate Project-related impacts to less than significant. The EIR analyzed a no-net increase (NNI) in criteria air pollutants (CAPs) and health risks from toxic air contaminants (TACs), and no project increase (NPI) in GHG emissions. The CUP and ATC require the Project to achieve the NNI and NPI requirements. Chevron commenced construction on the Modernization Project in June 2016, and the Project began operating in 2019. Project construction was largely completed in 2024.

The CUP requires Chevron to submit an Annual Compliance Report each year. The Planning Commission holds annual hearings to review Chevron’s compliance with the CUP. Because Project construction is mostly complete, the City proposed that, in 2025, the Planning Commission hold hearings once every three years instead of every year, unless staff otherwise determines that such a meeting is warranted in an unscheduled year. Chevron will still be required to submit its compliance report to the City for its review annually. The City-reviewed report will also be posted online annually.

City staff is requesting a sole-source contract with Ramboll Americas Engineering Solutions, Inc. for an amount not-to-exceed $263,400, to continue to support the Planning Division in its annual review of their compliance report, for a term ending June 30, 2031. As part of the scope of work, Ramboll will support the City in its annual review of Chevron’s compliance report for the Modernization Project CUP No. PLN11- 089 for the next five years. Each year, Ramboll will review Chevron's Annual Compliance Report, assess construction and operational emissions, and conduct an independent evaluation of Chevron's compliance with the conditions in the Mitigation Monitoring and Reporting Program. Ramboll will prepare a summary report on Chevron's compliance for online publication.

Ramboll is uniquely qualified for this continued work as Ramboll has a deep understanding of CEQA, Bay Area Air District regulations, and the Modernization Project. This knowledge of the project and regulations are necessary to ensure Chevron achieves its NNI in criteria air pollutants (CAPs) and health risks from toxic air contaminants (TACs), and no project increase (NPI) in GHG emissions (Attachment 2).

SYNERGISTIC POLICIES:

CUP monitoring can be tied to General Plan goals related to Public Safety goals — ensuring approved uses operate safely and comply with conditions and Community Health and Wellness goals — particularly where uses may affect surrounding neighborhoods are operating in compliance with conditions. Having qualified consultants to support staff is necessary to ensure the analysis is thorough and completed timely.

Conclusion

City staff recommend the City Council approve the sole-source contract with Ramboll Americas Engineering Solutions Inc. to continue supporting the annual review of the Chevron Richmond Refinery's Modernization Project CUP Compliance Report.

DOCUMENTS ATTACHED:

Attachment 1 – Contract Attachment 2 – Sole-Source Justification

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CITY OF RICHMOND STANDARD CONTRACT Department:

City Project Manager:

City Project Manager E-mail:

City Project Manager Phone No:

Vendor No:

Contract No:

Description of Services: The parties to this STANDARD CONTRACT do mutually agree and promise as follows:

1.

Parties. The parties to this Contract are the City of Richmond, a municipal corporation (“the City”), and the following named Contractor:

Contractor Name:

Street Address:

City, State, Zip Code:

Contact Person:

Telephone: Email:

Business License No:

☐A California corporation, ☐ limited liability corporation ☐ general partnership, ☐limited partnership, ☐ individual, ☐ non-profit corporation, ☐ individual dba as [specify:]

____________________ ☐ other [specify:] _______________________________ 2.

Term. The effective date of this Contract is _______________________ and terminates _________________ unless terminated earlier as set forth herein.

3.

Payment Limit. City’s total payments to Contractor under this Contract shall not exceed $______________ (“Contract Payment Limit”) unless a Contract Amendment has been approved by the City Council or City Manager. If this amount includes a contingency, Contractor acknowledges that any use of such contingency shall be for work beyond the original scope of services and requires prior written authorization by the City. If noted below, Compensation for work done under this Contract, shall not exceed as follows:

FY _________ total compensation shall not exceed $_________________ FY _________ total compensation shall not exceed $_________________ FY _________ total compensation shall not exceed $_________________ 4.

Contractor’s Obligations. Contractor agrees to perform all work at its own cost and expense, to furnish all labor, tools, equipment, materials, except as otherwise specified, in accordance with the Service Plan set forth in Exhibit A, attached hereto and incorporated herein.

5.

City Obligations. City shall make payments to the Contractor in accordance with the Payment Provisions set forth in Exhibit B, attached hereto and incorporated herein.

Community Development Lina Velasco lina_velasco@ci.richmond.ca.us

  • (510) 620-6706 8720 Ramboll Americas Engineering Solutions, Inc. will support the City in its annual review of the Chevron Richmond Refinery's compliance report for the Modernization Project.

Ramboll Americas Engineering Solutions, Inc.

333 Bush Street, Suite 2500 San Francisco, CA 94608 Sarah Manzano

  • (415) 426-5011 smanzano@ramboll.com 4006-9549 Incorporated July 21, 2026 June 30, 2031 263,400.00 PRINT CLEAR FORM

6.

Authorized Representatives and Notices. This Contract is subject to the Authorized Representatives and Notices Provisions (Exhibit C), attached hereto and incorporated herein.

7.

General Conditions. This Contract is subject to the General Conditions (Exhibit D), which are attached hereto and incorporated herein.

8.

Special Conditions. This Contract is subject to the Special Conditions (Exhibit E) (if any), which are attached hereto and incorporated herein.

9.

Insurance Provisions. This Contract is subject to the Insurance Provisions (Exhibit F), which are attached hereto and incorporated herein.

10.

Sanctuary City Compliance Statement. This Contract is subject to the Sanctuary City Compliance Statement (Exhibit G), which is attached hereto and incorporated herein.

11.

Signatures. These signatures attest the parties' agreement hereto:

CITY OF RICHMOND, a municipal corporation [BUSINESS NAME]

(* The Corporation Chairperson of the Board, President, or Vice President should sign below)

By: _________________________ By: ___________________________ Title: ________________________ Title: __________________________ Date Signed: _________________

Date Signed: ___________________

I hereby certify that this Contract (* The Corporation Chief Financial Officer or Assistant has been approved by City Council

Treasurer, or Secretary or Assistant Secretary should or the City Manager. sign below)

By: _________________________

By: ___________________________

City Clerk

Title: __________________________

Date Signed: ____________________ Approved as to form:

(NO