HomeMy WebLinkAbout1998-12-08; City Council; 14975; Energy Related Consulting ServicesCITY OF CARLSBAD - AGENDA BILL
AB# /y 9 75 TITLE: .
MTG. 12/8/98
DEPT. CM & H/RED
Amending GRA contract for energy related consulting
services; Designating a Redevelopment Survey Area; and CITY ATTY.
authorizing staff to retain Rosenow Spevacek Group Inc. for
consultant services to study the feasibility of establishing a CITY
Redevelopment Project Area II.
RECOMMENDED ACTION:
Adopt Resolution No. 9 8 w 4 (3 9 Atmrovinq the following actions: 1) amendment to
contract with Grueneich Resource Advocates (GRA) authorizing additional funding for energy
related consultant services; (2) designation of a Redevelopment Survey Area for study
purposes; 3) authorization of funding for consultant services required to study the feasibility of
establishing a second redevelopment area; and 4) authorization to City Manager to prepare
the appropriate documents to retain the services of Rosenow Spevacek Group, Inc. for the
purposes of studying the feasibility of establishing a second redevelopment project area.
ITEM EXPLANATION:
The pending sale of the Encina Power Plant presents a possible opportunity for the City to
mitigate the negative impacts of the plant and to influence the future uses of the associated
coastal property. As a result, over the past year the City has undertaken several courses of
action to reduce the environmental impacts of this plant and eliminate or minimize this
incompatible land use in the community. Since January, the City has been an active
participant in the California Public Utilities Commission review of the proposed sale to try to
ensure that the City’s land use and environmental concerns related to the plant are considered
in the divestiture. Last May, Council authorized a land use study to consider amendments to
the General Plan, zoning designations and the zoning ordinances pertaining to the plant and
surrounding properties presently under the ownership of SDG&E to evaluate potential uses for
this land that may better serve the community. Finally, in September, to ensure that all means
possible to protect the community’s interests are identified and thoroughly evaluated, Council
retained the energy related technical, environmental and public policy consulting services of
Grueneich Resource Advocates (GRA).
GRA has performed work in the areas of environmental studies, finance, regulatory review,
legal research and strategic planning to help the City identify and explore additional options for
actions to eliminate or reduce the environmental impacts of the plant and to achieve more
compatible land uses on this property.
One such option the City is exploring is the possibility of acquiring the plant with the ultimate
goal of shutting it down as soon as is feasible. The City is seeking acquisition through
negotiations with SDG&E; however, the City may need to invoke its right of eminent domain
and acquire the plant independent of the scheduled auction, or after the plant has been
transferred to a new owner through the auction process. Staff has been and continues to
work closely with GRA on these alternatives.
Page 2 of Agenda Bill No. Iy 9 75
Another possible option is the establishment of a second redevelopment project area which
would include the power plant and other surrounding properties. To initiate this action, the first
planning step is to have the City Council designate by resolution a redevelopment survey
area. This area can then be studied to determine whether a redevelopment project within the
subject area is feasible. The designation of the survey area is important because the final
project area for the redevelopment plan, if ultimately adopted, must be within the boundaries
of the survey area.
Designation of the survey area allows the City of Carlsbad the opportunity to study the
feasibility of creating a second redevelopment project area. The focus of the study would be
1) to make a preliminary determination of the blighting conditions within the area, 2) determine
the feasible land uses, 3) identify the market demand for such land uses, and 4) analyze the
financial feasibility of establishing a second redevelopment project area. The study will
determine if there are physical and blighting conditions existing within the area which
demonstrate a need to implement redevelopment activities. If a determination is made that
redevelopment activities would be beneficial, the City may continue the process to establish a
Redevelopmenf Project Area II and adopt a Redevelopment Plan.
At this time, the City Council is being asked to designate the redevelopment survey area. The
proposed survey area is described as being generally bounded by Chinquapin Avenue on the
North, the Pacific Ocean on the West, eastern edge of the Agua Hedionda Lagoon on the
East, and Cannon Road on the South. The attached map identifies the survey area to be
studied.
In addition to designating the redevelopment survey area, the City Council is being asked to
authorize a maximum of $20,000 in funding (from the Contingency Fund) for consultant
services to complete the redevelopment feasibility study. Staff is recommending that Rosenow
Spevacek Group Inc. (RSG) be retained to complete the feasibility study. RSG completed a
study of a separate survey area for the City in January of 1993, which included the subject
area. At that time, the City decided not to pursue establishment of a second project area. Staff
is now proposing to narrow the study and focus specifically on the survey area noted in the
attached exhibit. Because RSG has completed a similar study for the City in past years, staff
believes that it would be most appropriate to initiate a new contract with this consultant to save
time and money. RSG is familiar with the area to be studied, the City organization, and is well
known for its expertise in the area of redevelopment.
It is estimated that the study of the survey area will take approximately 60-90 days to
complete. If the City then decides to pursue establishment of a second project area, it would
take approximately 6 months to one (1) year to establish the second redevelopment project
area through adoption of a Redevelopment Plan.
To continue the study of other actions that will further the City’s efforts to strike a balance
between the region’s energy needs and the need to protect and enhance this environmentally
sensitive area of the coastline, staff is also recommending that the Council authorize an
additional $100,000 in funding (from the Contingency Fund) for continuing consultant services
from GRA.
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Page 3 of Agenda Bill NO. /“r, ‘? 7 5
Requested Actions:
Staff is recommending that the City Council approve the attached resolution which will
designate the redevelopment survey area and authorize the City Manager to obtain the
consultant services of RSG with a maximum funding of $20,000. If the City Council ultimately
takes action to establish a second redevelopment project area, the cost of the consultant
services may be considered a loan to the redevelopment agency and subsequently repaid
through future tax increment. The attached resolution also authorizes a maximum of $20,000
for related legal counsel costs which may be incurred as a result of the survey area study and
recommended actions. The City will continue to use Kane, Ballmer & Berkman, specifically
Glen Wasserman, for its redevelopment legal counsel.
In order to continue studies of other potential actions related to the plant and subject
property(ies), the attached resolution also authorizes the Mayor to sign an amendment to the
contract with GRA, increasing the limit by $100,000 (from $250,000 to $350,000) to fund
additional consultant services.
FISCAL IMPACT:
Approval of the attached resolution will authorize the expenditure of a maximum of $40,000 for
consultant and legal counsel services related to a study of the designated redevelopment
survey area. The approval will also authorize an additional $100,000 in funding for continuing
consultant services to be provided by GRA. Staff has recommended that this funding,
$140,000, be II a ocated from the Contingency Fund.
EXHIBITS:
1. City Council Resolution No. 9 8 - 4oq .
2. Boundary Map for Redevelopment Survey Area.
File: Library: GRA Amendment & Rosenow
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CITY COUNCIL RESOLUTION NO. 98-409
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, DESIGNATING A REDEVELOPMENT SURVEY AREA, AUTHORIZING FUNDING
FOR CONSULTANT SERVICES TO COMPLETE A STUDY OF
THE REDEVELOPMENT SURVEY AREA AND OTHER
RELATED STUDIES, AND AUTHORIZING STAFF TO RETAIN
SERVICES OF ROSENOW SPEVACEK GROUP TO COMPLETE A
FEASIBILITY STUDY OF THE REDEVELOPMENT SURVEY
AREA.
WHEREAS, the City Council of the City of Carlsbad, California has been considering
options for actions to eliminate or reduce the blighting influences of the San Diego Gas and
Electric Power Plant on the community, and to achieve more compatible land uses in the
designated area of the coastline within the City of Carlsbad; and,
WHERAS, the City Council finds that there is a need to establish a Redevelopment
Survey Area and to complete an initial feasibility study to determine if it would be appropriate
to establish a redevelopment project within the designated area; and,
WHEREAS, the Redevelopment Survey Area to be designated for study is generally
described as being bordered by Chinquapin Avenue on the North, Cannon Road on the South,
the Pacific Ocean on the West, and the eastern edge of the Agua Hedionda Lagoon on the East,
and more specifically detailed on Exhibit “A” to this resolution which is herein incorporated by
reference; and,
WHEREAS, the City Council finds it necessary to retain consultant and legal counsel
services and authorize the funding , in an amount not to exceed $40,000, for these consultant
and legal counsel services to complete the initial feasibility study of the designated
Redevelopment Survey Area; and,
WHEREAS, the City Council also finds it necessary to amend its contract with
Grueneich Resource Advocates to provide additional funding in the amount of $100,000 for
continuing consultant services as related to further exploration of additional options for
addressing the impacts on the community created by the San Diego Gas and Electric power
plant.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad
as follows:
1. That the above recitations are true and correct.
2. That the attached “Exhibit A” accurately represents the boundaries of the Redevelopment Survey Area, and that this area requires study to determine if a Redevelopment Project
Area is feasible.
3. That the City Council authorizes the City Manager to prepare and execute the appropriate
documents to retain the consultant services of Rosenow Spevacek Group, Inc. to complete
an initial feasibility study of the designated Redevelopment Survey Area.
4. That the City Council authorizes the Finance Director to appropriate $40,000 from the
Contingency Fund to finance the costs of the consultant services and related legal counsel
for the initial feasibility study and to establish a new account for the survey area.
5. That the $40,000 in funding for the initial feasibility study and related legal services shall
become a loan to the Redevelopment Agency, which shall be repaid in full with interest
from future tax increment, if a second Redevelopment Project Area is established in the
future for the designated area.
6. That the City Council author&es the Mayor to sign an amendment to the agreement with
Grueneich Resource Advocates to provide additional funding in the amount of $100,000
for continuing consultant services related to the exploration and study of other actions to
address the impacts of the San Diego Gas & Electric power plant on the community.
7. That the City Council authorizes the Finance Director to appropriate an additional
$100,000 from the Contingency Fund to the City Manager Professional Services Account
(001-101 l-7490) for continuing consultant services to be provided by Grueneich Resource
Advocates.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of
the City of Carlsbad held on the 8”’ day of December, 1998, by the following vote to wit:
AYES: Council Members Lewi
NOES: None
ABSENT: Council Member Ha
(SEAU
CC ResoNo. 98-409
PACIFIC OCEAN
EXHIBIT “A”
CITY OF CARLSBAD REDEMLOPMENT SURVEY AREA DECEMBER, 1996 EXHIBIT “A”
P’ZHIBIT 2
.
PACIFIC OCEAN
CITY OF CARLSBAD REDEVELOPMENT SURYEY AREA DECEMBER, 1998 EXHIEIT “A”
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Terramar Association
December 8, 1998
City Council Members
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Dear Council Members:
I read about the public hearing in today’s North County Times regarding the
proposed acquisition of the Encina Power Plant and the possible creation of a
redevelopment district to cover that land and additional land in the vicinity.
Unfortunately, because of the short notice, a representative of the Terramar
Association is unable to attend the hearings tonight. However, please let this
letter serve notice that our community of 271 homeowners is very interested in
any discussion regarding our neighboring properties.
As you are aware, our community is a virtual island of homes between Cannon
Road and Palomar Airport Road and is especially vulnerable to development.
We recognize the need to plan for sensible growth around our homes and
support any effort to do so. As our community stands to be impacted the most
by any development in the immediate area, we expect to consulted through out
the process. Therefore, we are formally requesting that a liaison from the
planning department be assigned to our community during this process. Thank
you for your consideration of this matter.
Please feel free to call me with any questions at 760-438-8530.
Jemoolson
President
fc:ltr59622.doc
P.O. Box 860, Carlsbad, California 92018-0860