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HomeMy WebLinkAbout2002-10-15; City Council; 16924; Encina Power Plant Processing RequirementsCITY OF CARLSBAD, CARLSBAD MUNICIPAL WATER DISTRICT ? AND REDEVELOPMENT AGENCY =AGENDA BILL ~~ ~~ ~~ AB# 16,924 - TITLE: DEPT. HD. ENCINA POWER PLANT MTG. 10/8/02 PROCESSING REQUIREMENTS - PROPOSED 'ITY Am. DEPT. CA DESALINATION FACILITY RECOMMENDED ACTION: That the Board of Directors of the Redevelopment Commission adopt additional principles for desalination negotiations to ensure that the Redevelopment Agency shall be made whole for any possible loss in tax increment and that its projects shall not be prejudiced or compromised as a consequence of a desalination project and direct the Housing and Redevelopment Director to process the necessary implementing amendments. 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 includes Agua Hedionda Lagoon and a number of properties surrounding the Lagoon owned by Cabrillo Power and Sempra Energy (SDG&E). In 1998, the City Council passed a Resolution of 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 ttie Specific Plan properties including zoning designations which do not match the General Plan, out-dated plans that do not show existing structures and improvements, Local Coastal Plan requirements that have not been addressed and numerous other issues. The purpose of the land use study was to address these issues but also to establish a future vision for the area. Two major objectives which the city wanted to address in formulating this vision were 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. Initiation of the land use study was subsequently put on hold when the Power Plant was sold by SDG&E to Cabrillo Power. It was the city's intent to work with the new owner to update the Specific Plan and include consideration of replacing the existing Power Plant with a newer, smaller and more visually pleasing plant. The city attempted to negotiate a M.O.U. with the new owner which would 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 are: 0 Facilitating the redevelopment of the Encina power generating facility to a smaller, 0 Developing new beach and coastal recreational opportunities. more efficient power generating plant. Agenda Bill No. 16,924 Page 2 Recent discussions with the County Water Authority (CWA) have touched upon the possibility that it or some other public agency may own and control a proposed desalination plant within the South Carlsbad Coastal Redevelopment Area. The Plan contemplates that all projects within the Redevelopment Area must be consistent with it. This includes provisions that require all real property within the project area to be consistent with and subject to the controls and requirements of the Redevelopment Plan and further that no real property may be developed after adoption of the Plan unless it is in conformance with the goals and provisions of the Plan and the regulations and requirements of other City planning documents. Development of a proposed desalination plant within the project area, whether it is in public or private ownership would be subject to the Plan. However, if another public entity is exempt from taxation, the agency would not receive tax increment resulting from such development, thereby reducing its income stream without any corresponding offset or benefits. The law provides that redevelopment agencies may cooperate with other public agencies undertaking projects within its boundaries to offset this consequence. Therefore, it is recommended that the Redevelopment Agency include within its negotiating principles the following two additional principles: 0 The Redevelopment Agency shall cooperate with any other public agency proposing a desalination project within its boundary so that any possible loss in anticipated tax increment is reduced or eliminated. 0 The projects of the Redevelopment Agency shall not be prejudiced or compromised as a consequence of a desalination project. 0 A desalination project shall provide water reliability so that the annual base need, not including recycled water, is met which shall be subject to local control and appropriation and remainder amounts shall be subject to drought allocation rules as established by the County Water Authority and applied equally to all other member agencies. ENVIRONMENTAL REVIEW: 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. Feesfor processing and the preparation of an EIR will be paid by the applicant. EXHIBITS: Principles for Desalination Negotiations. PRINCIPLES FOR DESALINATION NEGOTIATIONS JUNE 11,2002 0 Redevelop Encina Power Plant to maximize its best public and private uses. 0 Maximize beach and lagoon access for the public. 0 Maximize open space and recreational opportunities for the public. 0 Improved water reliability and quality in both normal and drought periods at CWA water rates. 0 Desalination facility protected from power market cost fluctuations. 0 Accrue a positive economic benefit from the increased industrial development of the coastal corridor. 0 The Redevelopment Agency shall cooperate with any other public agency proposing a desalination project within its boundary so that any possible loss in anticipated tax increment is reduced or eliminated. 0 The projects of the Redevelopment Agency shall not be prejudiced or compromised as a consequence of a desalination project. 0 A desalination project shall provide water reliability so that the annual base need, not including recycled water, is met which shall be subject to local control and appropriation and remainder amounts shall be subject to drought allocation rules as established by the County Water Authority and applied equally to all other member agencies. AB 16,924 October 8, 2002 3 October 4,2002 Jean Wulk 2457 Levante Street Carlsbad, CA 92009 Re: Request for Information Dear Jean: You had previously requested that the Carlsbad City Clerk’s Office notify you whenever an issue regarding the desalination placed on a Council Agenda. Enctosed is the Carlsbad City Council Agenda for Tuesday, October 8,2002. Please note that Item No. 9, on P3ge 5 of the agenda is requesting the City Council to consider adopting additional principles for the Redevelopment Agency for desalination negotiations. Please note that the Carlsbad City Council Meeting will begin at 6:OO p.m. If you have any questions, please contact the Carlsbad City Clerk’s Office at (760) 434-2808. Sincerely, +’ Manice Breitenfeld Deputy City Clerk Enclosure 1200 Carlsbad Village Drive Carlsbad, CA 92008-1989 0 (760) 434-2808 @ October 11,2002 Jean Wulk 2457 Levante Street Carlsbad, CA 92009 Re: Request for Information Dear Jean: You had previously requested that the Carlsbad City Clerk's Office notify you whenever an issue regarding the desalination placed on a Council Agenda. Enclosed is the Carlsbad City Council Agenda for Tuesday, October 15, 2002. Please note that Item No. 7, on Page 4 of the agenda is requesting the City Council to consider adopting additional principles for the Redevelopment Agency for desalination negotiations. Please note that the Carlsbad City Council Meeting will begin at 6:OO p.m. If you have any questions, please contact the Carlsbad City Clerks Office at (760) 434-2808. Sincerely, +' p Janice Breitenfeld Deputy City Clerk Enclosure 1200 Carlsbad Village Drive * Carlsbad, CA 92008-1989 * (760) 434-2808 @ THE CITY COUNCIL October 7,2002 TO: Mayor and City Council FROM: City Attorney cc: CY ENCINA POWER PLANT PROCESSING REQUIREMENTS - PROPOSED DESALINATION FACILITY It is suggested that the gth bullet point for the principles for desalination negotiations be separated intostwo bullet points as follows: 0 A desalination project shall provide water reliability so that the City’s annual base need, not including recycled water, is met which shall be subject to local control and appropriation. Drought allocation rules established by the County Water Authority as to the remainder amounts from a desalination project shall be applied equally to all other member agencies. I appreciate your prompt attention to this matter. RONALD R. BALL City Attorney $’ rmh c: City Manager PRINCIPLES FOR DESALINATION NEGOTIATIONS JUNE 11,2002 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. N, Improved water reliability and quality in both normal and drought periods at C\ water rates. Desalination facility protected from power market cost fluctuations. Accrue a positive economic benefit from the increased industrial development of the coastal corridor. The Redevelopment Agency shall cooperate with any other public agency proposing a desalination project within its boundary so that any possible loss in anticipated tax increment is reduced or eliminated. The projects of'the Redevelopment Agency shall not be prejudiced or compromised as 5 consequence of a desalination project. A desalination project shall provide water reliability so that the Citv's annual base need, not including recycled water, is met which shall be subject to local control and appropriation $ Drought allocation rules as established by the County Water Authority as to the remainder amounts from a desalination project shall be and applied equally to all other member agencies. A PRINCIPLES FOR DESALINATION NEGOTIATIONS JUNE 11,2002 Redevelop Encina Power Plant to maximize its best public and private uses. 0 Maximize beach and lagoon access for the public. Maximize open space and recreational opportunities for the public. 0 Improved water reliability and quality in both .normal and drought periods at CWA water rates. Desalination facility protected from power market cost fluctuations. 0 Accrue a positive economic benefit from the increased industrial development of the coastal corridor. The Redevelopment Agency shall cooperate with any other public agency proposing a desalination project within its boundary so that any possible loss in anticipated tax increment is reduced or eliminated. 0 The projects of'the Redevelopment Agency shall not be prejudiced or compromised as 5 consequence of a desalination project. A desalination project shall provide water reliability so that the City's annual base need, not including recycled water, is met which shall be subject to local control and appropriation. Drought allocation rules established by the County Water Authority as to the remainder amounts from a desalination project shall be applied equally to all other member agencies.