April 4, 2023
City Attorney's Office
DATE: April 4, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
David J. Aleshire, City Attorney
James J. Atencio, Senior Assistant City Attorney
Lina Velasco, Director of Community Development
SUBJECT:
Chevron Hydrogen Project Legal Services Agreement
FINANCIAL IMPACT: The total expenditure for the legal services agreement (LSA) is not to exceed $85,000. Deposits from the project applicant will be collected to cover costs related to this contract. A reimbursement agreement will also be
executed with Chevron to ensure all City costs related to this LSA are reimbursed by Chevron.
PREVIOUS COUNCIL
ACTION:
None
STATEMENT OF THE
ISSUE:
To support the City with specialized legal representation relating to the Chevron Hydrogen Fuel project , the City Attorney seeks approval of a legal services agreement
with Aleshire & Wynder for an amount not-to-exceed
$85,000 to be reimbursed by the Project applicant.
RECOMMENDED ACTION:
APPROVE a legal services agreement with Aleshire &
Wynder for legal representation related to a proposed
Chevron Hydrogen Fuel project, with the term expiration date of June 30, 2024, and for a total amount not to
exceed $85,000 to be paid by fees collected from the
project applicant - City Attorney’s Office (James Atencio 620-6509). This item was continued from the February
AGENDA
REPORT
April 4, 2023
21, 2023, February 28, 2023, and March 7, 2023,
meetings.
DISCUSSION:
The Chevron Products Company (Chevron) operates a petroleum refinery located in Richmond. The refinery currently operates a two-train hydrogen plant that produces hydrogen to supply process units including hydrocracking and hydrotreating to manufacture transportation fuels, such as gasoline.
Chevron plans to submit an application to the City’s Planning Department for a Hydrogen Fuel Project (project) in the city. The project proposes to alter the existing facility to produce fuel cell grade hydrogen (H2) as an alternative to motor vehicle fuel. As part of that process, Chevron has submitted an Authority to Construct (ATC) application to the Bay Area Air Quality Management District (BAAQMD) for a new Hydrogen Fuel Project. The project will require an environmental assessment to ensure compliance as required by the California Environmental Quality Act (CEQA), as well as demonstrate compliance with State and City requirements.
Given the complexity of the project, City staff is proposing to use Aleshire & Wynder, LLP to provide legal services and support to the Planning Department for the processing of the project application and associated review. A separate legal services agreement is proposed to help track costs and ensure that Chevron reimburses the City for all legal expenses associated with the consideration of their Project. As part of this effort, City staff would execute a reimbursement agreement with Chevron to ensure that Chevron fully pays for all costs and expenses related to the project.
DOCUMENTS ATTACHED:
Attachment 1 – Legal Services Agreement with Aleshire and Wynder