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HomeMy WebLinkAbout2002-06-11; City Council; 16790; Proposed Desalination FacilityCITY OF CARLSBAD -AGENDA BILL AB# 16,790 u: ENCINA POWER PLANT PROCESSING REQUIREMENTS - PROPOSED DESALINATION FACILITY DEPT. I DEPT. HD. CITY ATTY. CITY MGR RECOMMENDED ACTION: That the City Council DIRECT staff to continue to require a comprehensive AmendmenffUpdate of Specific Plan 144 in conjunction with the processing of any application on the Encina Power Plant site. If the Council determines that an alternative processing approach is warranted, the City Attorney should be directed to return with a Council resolution formalizing the alternative approach. ITEM EXPLANATION: An application has been submitted for a proposed desalination plant on the Encina Power Plant property. The Encina Power Plant is part of a larger 650-acre Specific Plan, SP 144, which also Cabrillo Power and Sempra Energy (SDG&E). In 1998, the City Council passed a Resolution of includes Agua Hedionda Lagoon and a number of properties surrounding the Lagoon owned by Intention (Resolution No. 98-145 attached) to have staff do a land use study for the Specific Plan area. The Specific Plan is very old. There are many unresolved issues associated with the Specific that do not show existing structures and improvements, Local Coastal Plan requirements that have Plan properties including zoning designations which do not match the General Plan, out-dated plans these issues but also to establish a future vision for the area. Two major objectives which the city not been addressed and numerous other issues. The purpose of the land use study was to address wanted to address in formulating this vision was 1) to secure public ownership of the south shore of the lagoon east of 1-5 in order to enhance public access and use of this open space area and 2) to consider the possibility of demolishing the existing power plant and constructing a smaller one thereby freeing-up some additional beach front property for public use. SDG&E to Cabrillo Power. It was the city’s intent to work with the new owner to update the Specific Initiation of the land use study was subsequently put on hold when the Power Plant was sold by visually pleasing plant. The city attempted to negotiate a M.O.U. with the new owner which would Plan and include consideration of replacing the existing Power Plant with a newer, smaller and more include a process to study the existing and future land use but the M.O.U. never materialized and discussions have ceased. In July of 2000, the City Council approved the Redevelopment Plan for the South Carlsbad Coastal Redevelopment Project. The Encina Power Plant site is located within the boundaries of the Redevelopment Project. Two of the stated goals of the Plan were: Facilitating the redevelopment of the Encina power generating facility to a smaller, Developing new beach and coastal recreational opportunities. more efficient power generating plant Based upon the adoption of the Redevelopment Plan and the Council’s Resolution of Intention in the Encina Power Plant and no application for new facilities will be processed on the site until the 1998, it has been staffs consistent position that no new improvements or facilities will be allowed at entire Specific Plan 144 is amended and the matters described above are addressed. In December 2001, the Planning Department was requested to provide a letter to Poseidon Resources Corporation which, in part, would identify processing requirements for a proposal to the Specific Plan update is included in the letter (top of Page 2). locate a desalination facility at the Encina Power Plant. A copy of the letter is attached. The issue of PAGE 2 OF AGENDA BILL NO. 16f790 A formal application for the desalination plant has now been submitted and the issue of requiring an update of the Specific Plan in conjunction with the processing of the application has been raised. Interested parties associated with the proposed desalination plant have indicated to staff that the project must be processed in a very expedient manner and they are concerned that updating the Specific Plan will not allow them to meet the required timeframes. Therefore, staff is returning to the City Council at this time to secure direction regarding this matter. Staff believes that the most effective way to address the goals and formulate a vision for the Specific Plan area as previously identified by the City Council, is to continue to require the processing of a Specific Plan AmendmentlUpdate with any application which proposes new facilities or which could be considered by the Council. Staff has identified four processing approaches, which improvements on the Encina Power Plant site. However, there are alternative processing schemes are described below. Alternative 1 - ApplicantlProperty owner - initiated Comprehensive Specific Plan Amendmentl Update. This alternative would require the applicant for any proposed project, such as the desalination plant, to prepare an update of the Specific Plan with the authorization of the property owners (Cabrillo Power and Sempra Energy). The city would then be a reviewer of the Plan prepared by the applicant which is normally the process which is followed. This alternative would require the cooperation and resource commitment by the property owners. Alternative 2 - City-initiated Comprehensive Specific Plan AmendmentlUpdate. This alternative was the one originally being pursued by the city in 1998 because of lack of cooperation and effort by the property owner but was not initiated because the power plant was sold to a new owner. This alternative does not require authorization from the property owners. The Specific Plan Amendment would be prepared by staff which would require additional staff time commitment. The property owners could provide some resistance to cooperating with the staff preparation. Alternative 3 - Minor Specific Plan Amendment - Defer Comprehensive Update. This alternative would defer a comprehensive amendmenffupdate of the Specific Plan until a later time. The existing Plan would merely be amended to identify any new improvements or facilities if approved by the city such as the desalination plant. The site, however, would still be retained as part of the larger Specific Plan. The consideration of the previously identified city goals and formulation of a vision for the entire Specific Plan area would also be deferred. Alternative 4 - Delete Specific Plan on Power PlantlDesalination Facility Site and Replace with the applicant for the desalination facility. The zoning of the power plant site (PU) requires a Precise Precise Development Plan. This alternative is the one preferred by the owner of the power plant and Development Plan (PDP) for any new facilities approved on the site. As previously stated, an application for a PDP has already been formally submitted. This alternative would delete the power plant site from the Specific Plan and replace it with the PDP. The city would then just be reviewing the acceptability of the desalination plant on the property. A future update of the Specific Plan including city goals and vision formulation would then just involve the other properties in the Plan primarily owned by Sempra Energy. The best case processing times for Alternatives 1 and 2 are 24 months and for Alternatives 3 and 4 18 months. These are best case processing times in that they assume the project is given a high priority, is adequately resourced and all parties cooperate to a high level. Also, the times do not include Coastal Commission processing. The Coastal Commission has coastal permit authority over the Encina Power Plant site and will eventually have final approval authority. Ill Ill J PAGE 3 OF AGENDA BILL NO. 16.790 Staff is presently operating under the Alternative 1 processing approach described above. If the Attorney should return with a resolution formalizing the alternative approach. Council desires to operate under an alternative approach, staff should be so directed and the City desalination facility, staff has drafled some key principles to be used in reviewing the application and Regardless of the approach that is utilized in processing the application for the proposed negotiating the facility. These principles are based on previous Council actions and discussions regarding these items. A summary of the principles are attached as Exhibit 4. ENVIRONMENTAL: It has been determined that an Environmental Impact Report (EIR) will be prepared to analyze the environmental effects of developing a desalination facility at the Encina Power Plant. Carlsbad will be the lead agency for conducting the environmental review. FISCAL IMPACT: None associated with this action. Processing of the proposed desalination facility and associated Specific Plan Amendment will require staff time and resources. Fees for processing and the preparation of an EIR will be paid by the applicant. EXHIBITS: 1. SP 144 Boundary Map 2. 3. Letter to Poseidon Resources Corporation, dated December 6, 2001 Resolution of Intention No. 98-145 4. Principles for Desalination Negotiations. 3 EXHBlT 2 c 4 lop CITY OF CARLSBAD - AGENUA BILL MTG. 5-1t-98 DEPT. PLN * CITY DEPT.HD* ATTY. B RESOLUTION OF INTENTION REGARDING CITYMGR AB# ITb96 TITLE: SDG&E PROPERTlESlENClNA POWER PLANT I I RECOMMENDED ACTION: That the City Council ADOPT Resolution of Intention No.98 -IY C, declaring its intention to study and consider amendments to the General Plan, Zoning designations and the Zoning Ordinance pertaining to the Encina Power Plant and surrounding properties now under the ownership of the San Diego Gas and Electric Company and directing staff to prepare a work plan and commence a study regarding the amendments. ITEM EXPLANATION: The purpose of this Resolution of Intention is to direct staff to study and make a recommendation to the Planning Commission and City Council regarding consideration of amendments to the General Plan and Zoning designations for the SDG&E properties including the Encina Power Plant site. The reasons for recommending that the City Council adopt the Resolution are contained in the recitations of the attached Resolution. As the City Council is aware, the city has requested SDG&E for many years to do a comprehensive, updated plan for its properties. There are many unresolved issues associated with the properties including zoning designations which do not match the General Plan, outdated plans which do not show existing structures and improvements, Local Coastal Plan requirements which have not been addressed and numerous other issues. Despite verbal commitments from SDG&E, it has never stepped forward to initiate a process to develop an updated plan for its properties. Now, since SDG&E has applied to the California Public Utilities Commission for permission to sell the Power Plant site and the lagoon to a new, private operator, the city is even more concerned that these issues will not be resolved in the near future. If the City Council approves the attached.Resolution of Intention, staff will return with a detailed work plan for doing the referenced study. Attached as Exhibit "2, is an outline of staffs initial thoughts on the study. The study could consist of three components or phases as follows: 1. 2. Initially, a significant amount of staff time will be needed to research and review all the background information and files regarding the Encina Power Plant and surrounding SDG&E properties. There is a substantial amount of history (35+ years) and many documents related to the Power Plant and adjacent SDG&E land. (Estimated time - 2 to 3 months.) The second phase of the study would focus on land use for the properties from a strictly General Plan and Zoning perspective. This phase of the study will be to determine whether existing General Plan and Zoning designations are still appropriate for the properties and what is needed to bring the Zoning and General - L4 PAGE 2 OF AGENDh BILL NO. I Y, 6 7 6 Plan into strict conformance. Staff will be prepared at the end of this second phase to make recommendations on appropriate land uses for the properties and the necessary amendments to the General Plan to effectuate the recommended land uses. This phase will also include environmental review and a recommendation on what should be done with the existing, outdated Specific Plan on the properties to reflect any General Plan and Zoning Amendments and to ensure that all present city ordinances, requirements and programs are addressed including the Local Coastal Program. (Estimated time - 6 to 9 additional months.) 3. A possible third phase would be to prepare a ’conceptual master plan” for the properties including the Power Plant portion particularly if it is determined in the second phase of the study that the Power Plant is not the most appropriate and best long-term use for the property. (Estimated time - 4 to 6 additional months.) Staff is not requesting City Council approval of a work plan at this time nor a decision on whether the study should include doing a “master plan” for the properties. Staff is recommending, however, as part of the Resolution of Intention, that staff be authorized to solicit Qualification Proposals from consulting firms to assist staff in preparing a ”Master Plan” should the Council approve a third phase of the study. ENVIRONMENTAL REVIEW: Adoption of this Resolution of Intention does not require environmental review. Any proposed amendments to the General Plan or Zoning designations or the Zoning Ordinance will require environmental review. Given the nature of possible amendments, it is probable that staff will recommend the preparation of a complete Environmental Impact Report (EIR) for the project. FISCAL IMPACT: A significant amount of staff time will be necessary to complete the study, prepare its recommendations and process this item. Some funds from the Planning Department budget may need to be expended in order to process the item (e.g. supplies, printing and noticing). Some professional consulting seivices may be needed to assist staff, however, a separate agenda bill would be prepared to obtain City Council approval for consultant services and funding for same. EXHIBITS: 1. City Council Resolution of Intention No. 98-(y 5 2.’ Outline of Study. I 5 I( 11 1; 13 14 15 16 17 IS 19 20 21 22 23 24 25 26 27 28 c - CITY COUNCIL RESOLUTION OF INTENTION NO. 98-145 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DECLARING ITS INTENTION TO STUDY AND CONSIDER AMENDMENTS TO THE GENERAL PLAN, ZONING DESIGNATIONS AND THE ZONING ORDINANCES PERTAINING TO THE ENCINA ' ' POWER PLANT AND SURROUNDING PROPERTIES PRESENTLY UNDER THE OWNERSHIP OF THE SAN DS WHEREAS, the San Diego Gas and Electric Company (SDGBE) initialr) constructed the Encina Power Plant in approximately 1952; and WHEREAS, the Public Utility (PU) Zone was established in 1971 and applied to the Encina Power Plant and surrounding properties owned by SDG&E; and WHEREAS, in conformance with the PU Zone, a Specific Plan was adopted for the 680 acre SDGBE ownership including the Power Plant site: and WHEREAS, the General Plan designation establishing a Public Utilities (U) land use classification was created in 1974 and subsequently applied to the Encina Power Plant; and WHEREAS, in 1973 the City Council approved an amendment to the Specific Plan to permit enlargement of the Power Plant including the construction of a 400 foot high stack as a means of dispersing Power Plant air emissions and reducing adverse impacts on surrounding residential neighborhoods: and WHEREAS, the amended Specific Plan required notice and public hearings for any subsequent changes to the Plan; and WHEREAS, there have been a number of changes made at the Power Plant without notice and hearings including a fuel tank installation in 1975, a two-story 5Vx16' control room in 1977, the relocation of a maintenance building, expansion of a 5 .. 7 I( 11 1i 12 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 switching substation and driveway in 1980, the expansion of a distribution substation in 1982, the addition of a 6,168 square foot administration building in 1984, th remodeling of the electric shop in 1985, addition, of a storeroom and repair facility i 1986, the construction of a 24' x 40' pipe storage shed in 1986, the construction of 30' x 30' metal paint shop in 1986, the addition of numerous microwave dishes an radio antenna attached to the stack, and the addition of temporary office trailers; and WHEREAS, SDG8E was informed that any future modfmtions, change2 amendments or additions to its plant would require a complete major amendment to tht specific plan processed in accordance with Chapter 21.36 of the Carlsbad Municipa Code, and at that time, the cumulative impact of all previous changes would bc considered and an analysis would be made as to whether any conditions are necessap to address those cumulative impacts; and WHEREAS, in 1975, the PU Zone was updated to require a Precist Development Plan (PDP) rather that a Specific Plan for public utility uses; and WHEREAS, SDG&E has been informed that a Precise Development Plar is needed for the Power Plant site; and WHEREAS, the Agua Hedionda Local Coastal Plan (LCP) was adopted in 1982 which includes the properties owned by SDG&E including the Encina Power Plani site; and WHEREAS, the LCP contains numerous regulations and restrictions which impact the SDG&E properties and the Power Plant including public access, land use, recreation, agriculture, aquaculture, visual impacts and.uses of the lagoon; and -2- , ! 11 1: 1: 11 If 15 1c 15 la 1s 20 21 22 23 24 25 26 27 28 WHEREAS, the existing Specific Plan for the SDG&E properties does not address the regulations and restrictions of the LCP; and WHEREAS. the City applied to the Coastal Commission to obtain effectiic certification for the Agua Hedionda LCP but was requested by SDG&E to withdraw thc application which the city subsequently did based upon a commitment by SDG&E that i would update its Specific Plan and bring the Power Plant site into conformance with thc Site Development Plan ("Plan") requirements contained in Chapter 21. 36 of tht Carlsbad Municipal Code; and WHEREAS, SDGBE did not follow through on its commitment regarding the LCP; and WHEREAS, the Zoning designations on the SDG&E properties are not ir strict conformance with the General Plan designations on the properties in that portions of the properties are zoned Public Utility (PU) but are designated on the General Plan for Open Space (OS) or TraveURecreational Commercial (TR) use; and WHEREAS, because of the aforementioned occurrences and unresolved issues, the city has requested of SDG&E on numerous occasions that it prepare a comprehensive, updated Plan for the existing and future use and development of its property; and WHEREAS, despite numerous verbal agreements to do an updated Plan, SDG&E has not come forward with a formal proposal, work program or timeline for initiating a process to update its Plan and address outstanding concerns and issues; and -3- II 1 1: 1: Id I! It 1; 18 IS 21 21 22 23 24 25 26 27 28 I WHEREAS, SDG&E has now informed the city that it is mandated by th ~ courts to divest itself from its electric generating operations and facilities and ha applied to the California Public Utilities Commission for permission to sell the Encin Power Plant to a private operator without addressing or agreeing to address th, aforementioned issues regarding outdated plans, land use inconsistencies, coasts concerns and unfulfilled commitments; and WHEREAS, the sale of the Power Plant site to a private operator raise! additional issues and public concerns including future restrictions on public access tc the Agua Hedionda Lagoon, future dredging of the lagoon, restrictions on the use of tht site to only industrial or power generation notwithstanding consideration of the public health, safety or general welfare, the disposition of Cannon Park, proposed future changes of land use, the~continuation of aquaculture and research at the lagoon, beact area improvements, environmental clean-up and mitigation related to oil and fue storage and usage; and WHEREAS, the city believes that it is necessary in order to protect the interests of its citizens for the city staff to initiate a process to. address the aforementioned issues and concerns and to study and consider a comprehensive, updated plan for the SDGBE properties including the Encina Power Plant site; and WHEREAS, the city believes that it is necessary for this process to include consideration of amendments to the existing Zoning and General Plan designations of the SDG&E properties; and WHEREAS, these considerations should include whether the continued use of a portion of the property for a Power Plant is in the best interest of the citizens of 4 1 I 1 ! 1( 11 1: 12 14 1: 16 17 1s 19 20 21 22 23 24 25 26 27 28 Carlsbad and is the best, long-term use of the property given its superior coast; location and its proximity to other existing, surrounding uses that can be advetset impacted by Power Plant use; and WHEREAS, since SDGBE intends to sell the Encina Power Plant to i private operator, Section 21.48.100 of the Carlsbad Municipal Code which exempt: Public Utilities from certain non-conforming use provisions of the Zoning Ordinance mal no longer be appropriate or necessary and this code section should be considered fo amendment or repeal. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council 01 the City of Carlsbad, California as follows: 1. That the above redtations are true and correct. 2. That pursuant to Section 21.52.020 of the Carlsbad Municipal Code and Section 65358 of the State .Government Code, the City Council of the City of Carlsbad declares its intention to consider amendments to the General Plan and the Zoning Ordinance as it pertains to the Encina Power Plant and the surrounding properties now under the ownership of the San Diego Gas and Electric Company (SDGBE) as shown on the attached location map and labeled Exhibit "A". 3. City staff is hereby directed to study . this matter, prepare recommendations and to set public hearings before the Planning Commission and City Council to determine whether the present General Plan and Zoning designations for the SDGBE property including the Power Plant site should be amended. 4. Part of the study may include preparing alternative land uses and a "conceptual Master Plan" for the properties including the Encina Power Plant site and, at this time, staff is authorized to solicit Requests for Qualifications (RFQs) from consulting firms that are interested in contracting with the city to assist staff in preparing said alternative uses for the Power Plant site. ... . .. ... -5- rf I1 1 e 1 ! 4 5 6 7 8 9 la 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5. Staff is also directed to consider the repeal or amendments to Sectior 21.48.100, as appropriate, of the Carlsbad Municipal Code regarding Public Utilit) exemptions from the nonconforming use provisions of the Zoning Ordinance. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 12th day of by' , 1998, by the following vote, to wit: AYES: Council Members Lewis, Finnils. Nygaard and Aall ATTEST: /$24ZA ALETHA L. RAUTENKRANZ, City Ca LOCATION MAP EXHIBIT “A” I SDG&E PROPERTIES ROI EXHIBIT 2 OUTLINE OF SDG&E WORKPLAN 1. RESEARCH 23 MONTHS a) review all existing filedinfo b) review expansion chronologylfiles c) review Specific Plan and AHL LCP d) review PU zone; SP vs. PDP requirements e) list out designation inconsistencies to be addressed by Ila below II. PROPOSE GENERAL PLANZONING DESIGNATIONS 6-9 MONTHS a) zoninglGeneral PlanlLCP inconsistencies; address short term fix b) developlproposed land use designations to address long term vision c) review 21.48.100 re: nonconforming regulations and power utilities d) review all LCP provisions for SDG&E properties.(p. 12/#7, p. 19, bike path, e) if possible, conclude with recommendation on long term status of power plant etc.) 111. DEVELOP “MASTER PLAN”IDEVEL0PMENT PLAN 4-6 MONTHS a) develop ”master plan” based on research and desired vision for the area b) could involve consultant work to develop the ”master plan” TOTAL ESTIMATED TIME 12-18 MONTHS EOWlN h GUILES Pncwmn May 12,1998 Honorable Claude E. Lewis, Mayor Members of the City Council City of Carlsbad I200 Carlsbad Village Drive Carlsbad, California 92008 Dear Mayor and Council Members: The purpose of this letter is to request that you continue your agenda item for this evening which would initiate a program of land use studies for SDG&E property in and around the Encina which have been identified between us as part of the sale by SDG&E of the Encina Power Plant, Power Plant and Agua Hedionda Lagoon. Yout proposed action is of course the result of issues the sale having been ordered by the California Public Utilities Commission. SDG&E wishes that you would not take this action, but acknowledges your ability to do so. SDG&E understands and acknowledges the City’s concerns - first that after 40-plus years, an unknown entity will shortly be the owner of the power plant, and secondly, the City is displeased with the long-standing jurisdictional dispute over the power plant property and believes that certainty of future controls and uses must be achieved prior to the sale. Please let this letter be of assurance to you that while we may continue to disagree on certain manner. We ask your consideration of a one-month continuance of this item in order that we can issues, without question we recognize the importance of responding to you in a productive present your staff with our specific responses to your concerns. As you know the time frames set in place for sale of the power plants is short, and you certainly retain the ability to initiate your action at any time. We hope you would agree that nothing is lost by a moderate delay. Thank you for your consideration of this letter and our request. Sincerely, Edwin A. Guiles / Citv of Carlsbad EXHIBIT 3 December 6,2001 Mr. Walter J. Winrow Executive Vice President 501 West Broadway, Suite 840 Poseidon Resources Corporation San Diego, CA 92101 CARLSBAD DESALINATION PLANT PROPOSAL Dear Mr. Winrow: Reoresentatives from the offices of the Citv Mar laaer and Citv Att Administrative Services, Community Development, Finance, Planning, and Public Works have met to :orney. and departments of discuss the proposal to locate a desalination facility at the Encina Power Plant. As a result of the meeting and to aid in your planning efforts, staff has prepared this letter to provide relevant general information on land use and entitlement processing. Land Use Information General Plan - The Encina Power Plant facility has a general plan designation of Public Utilities. Agua Hedionda Lagoon has a general plan designation of Open Space. Zoning Ordinance - Zoning of the power plant facility is Public Utilities (P-U). For the lagoon, it is Open Space. Local Coastal Program - The property is within the boundaries of the Agua Hedionda Land Use Plan. The Local Coastal Program (LCP) land use and zoning designations are Public Utilities for the power plant facility and Open Space for the lagoon. owned by SDG&E) are within the boundaries of Specific Plan 144, adopted by ordinance in Specific Plan - The power plant and lagoon and other nearby properties (including properties 1971, The Plan covers approximately 680 acres and includes land east of Interstate 5. South Carlsbad Coastal Redevelopment Area - The power plant facility and the adjacent, “outer” portion of the lagoon are within this redevelopment area. While the redevelopment plan contains no provisions that would affect a desalination proposal at this time, the City is considering initiation of a master planning effort for the power plant facility. Desalination Plant Use - Zoning Ordinance Chapter 21.36 contains P-U zone regulations. Section 21.36.020 (4)(c) states the “processing, using, and storage of domestic and agricultural water supplies” may be permitted subject to the requirements of Chapter 21.36 and other Zoning Ordinance provisions. Based on this specified section, a desalination plant may be permitted in the P-U zone upon the approval of a Precise Development Plan (see below). Entitlement Processing Desalination Plant The city representatives listed above have agreed that a desalination plant proposal would be subject to the following processing requirements. 1635 Faraday Avenue - Carlsbad. CA 92008-7314 - (760) 602-4600 - FAX (760) 602-8559 @ ,I Mr. Walter Winrow December 6,2001 Page 2 Precise Development Plan (PDP) - Zoning Ordinance Section 21.36.030 requires a PDP before issuance of entitlement for any use in the P-U Zone. A Precise Development Plan is a document similar to a master or specific plan; it establishes the overall site layout, land use, design, and development standards, circulation and infrastructure requirements, and permit procedures. A PDP has never been done for the power plant. Accordingly, a desalination plant needs to be proposed as part of a PDP submittal. The PDP should be prepared for the entire Encina Power Plant facility and Agua Hedionda Lagoon, not just the desalination plant site. Specific Plan Amendment - An amendment will be required to incorporate and recognize the approved PDP and desalination project. An amendment may also trigger the requirement. among other things, to update the entire specific plan so issues relating to coastal access and use provisions and inconsistent land use designations within the specific plan are addressed. Preparation of the PDP and specific plan amendment will require the authorization of Cabrillo Power and may also require the authorization of San Diego Gas and Electric. Additionally, if the sale or lease of property is necessary to accommodate the proposal, submittal of a subdivision map to the city will also be required. Off-site ImDrovements Project information supplied by your company indicates distribution lines and pump stations would transport desalinated water off-site of the Encina Power Plant facility to other areas inside and outside the city. In Carlsbad, if such off-site improvements are located above ground, they generally will require a conditional use permit. If they are located outside the Agua Hedionda Land Use Plan boundaries but still within the Coastal Zone, they will also require city-issued coastal development permits regardless of whether they are above or below ground. For improvements proposed outside Carlsbad, please check with other cities and agencies as necessary to determine their requirements. Coastal Commission After completion of the city’s entitlement process, which will include City Council review, it will be necessary to also apply for a coastal development permit from the California Coastal Cqmmission. The Encina Power Plant is within the boundaries of the Agua Hedionda Land Use Plan, an area in which Carlsbad does not have coastal permit jurisdiction. During its review of the desalination proposal, however, the city will need to make a finding of compliance with the policies of the land use plan. The project proponent, not the city, makes application to the Coastal Commission. Environmental Review An environmental assessment, addressing both the proposed desalination plant and off-site improvements, needs to be submitted along with the precise development plan and specific plan amendment so staff can determine the appropriate level of environmental review. To facilitate this review, the assessment should be accompanied by all supporting surveys and reports. If this project involves multiple agencies, Carlsbad may serve as the lead agency and have the principle responsibility for preparing California Environmental Quality Act documents. Based on the scope of this project, it would behoove you to take advantage of the City’s preliminary review process. For a small review fee, staff can respond to your specific questions and provide general information on requirements, processing, and issues of concern before the project is formally submitted. ~~~ 1.. .. ‘.. Mr. Walter Winrow December 6,2001 Page 3 Enclosed are the P-U zone standards, a preliminary review application, and a fee schedule for city permits. If you have any questions about the City of Carlsbad's review process, please contact Scott Donnell, Associate Planner, at (760) 602-4618. Questions about the Coastal Commission's procedures may be directed to its San Diego Coast District office at (619) 767-2370. Sincerely, MICHAEL J. HOLZ~ILLER Planning Director Enclosures c: Peter MacLaggan, Poseidon Resources J. Michael McDade, Sullivan Wertz McDade &Wallace Community Development Director Assistant Planning Director City Manager Deputy Public Works Director City Attorney Administrative Services Director Housing & Redevelopment Director Finance Director Public Works Director EXHIBIT 4 PRINCIPLES FOR DESALINATION NEGOTIATIONS JUNE 11,2002 1. 2. 3. 4. 5. 6. Redevelop Encina Power Plant to maximize its best public and private uses. Maximize beach and lagoon access for the public. Maximize open space and recreational opportunities for the public. Improved water reliability and quality in both normal and drought periods at CWA water rates. Desalination facility protected from power market cost fluctuations. Accrue a positive economic benefit from the increased industrial development of the coastal corridor. JUN-11-2002 15:00 SDG%E June 11.2002 The Honorable Mayor Lewis and City Council Members City of Carlsbad Carlsbad. CA 82008 1200 Carlsbad Village Drive RE: June 11, Carlsbad City Council Meeting Agenda Item 12. Encina Power Plant Desalination Facility Dear Mayor Lewis and City Councilmemben: Sbn Dl* Gar C Electric 8330 Century PllrX Court San Dieqo, CA 92l23 San Diego Gas & Electric (SDG&E) respectfully supports Alternative No. 4 as the preferred review process for the proposed desalination facility at Encina Power Plant being considered by the Carlsbad City Council at your June 11 meeting. Alternative No. 4 would allow the Precise Development Plan to replace the Specific Plan regarding new facilities at the power plant. It will not,require a comprehensive update of the existing specific plan that would unnecessarily delay the consideration of the desalination proposal. Furthermore, the City will be able to review the proposed desalination facility without becoming entangled with numerous unrelated issues that would need to be considered on the development of the property east of Interstate 15. The success of the desalination project requires timely review. SDG&E recognizes the questions and issues discussed in Agenda Item 12 regarding long-term use for other property within the specific plan and we agree they must be addresses. However, Alternative No. 4 would enable the City to give priority to the immediate review of the proposed desalination facility without compromising future development of the Encina East property. Thank you for the opportunity to provide our recommendations and your thoughtful Consideration. ,. I Sincerely, Frank Urtasun Regionat Public Affairs Manager TOTQL P.02 ." 7 a a 7 0 7 W - LL 0 a W ai a CI cn a, 12 CI cn .- U S m a, 0 m Q cn L cn m 0 0 - ++ + + + 8 8 U .- L 0 I. 0 0) S v) v) a, 0 0 Q a, c c .I L CI .I CI 3 S 0 0 S S S 0 0 S .I CI =1 .I S m 8 0 Q S 0 S (u L (u S E E U S (u I S c, E E U S m cn' a,Co I n % .- LL m S m a, t) a, Q cn cn cn a, I w w S m 7 .I 0 0 S 0 .- CI 3 0 - cn - . 0 2 S 0 x L 0 0 0 cv I L m - n 0 a, - > a, U a,