HomeMy WebLinkAbout2003-08-05; City Council; 17262; Proposed Carlsbad Desalination PlantCITY OF CARLSBAD - AGENDA BILL
AB# 17,262 TITLE: DEPT. HD. MMPBd/
I I x
MTG. 8riN03J PROPOSED CARLSBAD DESALINATION PLANT -
DEPT.
PROCESSING REQUIREMENTS
CITY ATTY. f6!&
CITY MGR 2
RECOMMENDED ACTION:
That the City Council ADOPT Resolution No. 2003-208 , ALLOWING the Proposed
Carlsbad Desalination Plant to be processed without requiring an update to the entire Specific Plan
144.
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). The application was submitted jointly by Cabrillo
Power and the Poseidon Resources Corporation and, as a private-party application, is subject to all
permitting requirements of the city.
On June 11, 2002, the City Council determined that the processing of the project required a
comprehensive update/amendment of the entire SP 144. A copy of the June 11, 2002, City Council
Agenda Bill and Minutes are attached for reference. At that time, the Council also determined that in
the future if an alternative processing approach is warranted, staff should return with a Council
resolution approving the alternative approach.
At a City Council workshop held on June 18, 2003, staff updated the Council on the status of
discussions with Cabrillo Power, SDG&E and the County Water Authority (CWA) regarding the
desalination plant, land use matters applicable to SP 144, and processing requirements. As a result
of the status of the discussions, the Council determined that it was not necessary at this time to
require a comprehensive update of the entire Specific Plan and that the Power Plant and desalination
facility could be processed independently of the rest of the Specific Plan properties. Instead of the comprehensive update, staff will require just an Amendment of SP 144 for the Encina Power Plant
property be processed in conjunction with the other permits for the project. An application for an
Amendment of SP 144 will allow the city to continue to address all applicable land use matters such
as public access and use of the lagoon and beach.
ENVIRONMENTAL:
An Environmental Impact Report (EIR) will be prepared to analyze the environmental effects of
developing a desalination facility at the Encina Power Plant.
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. City Council Resolution No. 2003-208 2.
3. City Council Minutes, dated June 11,2002
City Council Agenda Bill No. 16,790, dated June 11,2002
DEPARTMENT CONTACT: Michael J. Holzmiiler, (760) 602-4601, mholz@ci.carlsbad.ca.us
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RESOLUTION NO. 2003-208
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA ALLOWING THE PROPOSED
CARLSBAD DESALINATION PLANT AND ENCINA POWER
PLANT TO BE PROCESSED WITHOUT REQUIRING A
COMPREHENSIVE UPDATE OF THE ENTIRE SPECIFIC PLAN
1 44
CASE NAME: PROPOSED CARLSBAD DESALINATION
PLANT - PROCESSING REQUIREMENTS
WHEREAS, an application has been submitted to the City of Carlsbad, California
for a proposed desalination plant located on the Encina Power Plant property; and
WHEREAS, the City Council of the City of Carlsbad, California previously
determined that the application should not be processed until comprehensive update of Specific
Plan 144 is done, of which the Power Plant is a part; and
WHEREAS, discussions with the property owners within the Specific Plan 144
area relating to land use, public access and other similar matters have progressed to the point
where the City Council believes that it is not necessary to update the entire Specific Plan at this
time.
NOW, THEREFORE, the City Council of the City of Carlsbad, California, does
hereby resolve as follows:
1. That the above recitations are true and correct.
2. That an amendment of Specific Plan 144 shall be processed for the
processing of the Carlsbad Desalination Facility and Encina Power Plant rather than a
comprehensive update of the entire Specific Plan.
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PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Carlsbad on the 5th day of AUGUST ' 2003, by the following vote,
to wit:
AYES: Council Members Lewis, Finnila, Kulchin, Hall, Packard
NOES: None
BSENT: None
ATTEST:
(SEAL)
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EXHIBIT 2
June 11,2002
- ..
CARLSBAD CITY COUNCIL MEETING Page 9
Mayor Lewis declared a recess at 8:31 p.m. Council reconvened at 8:40 p.m. with all members
present.
DEPARTMENTAL AND CITY MANAGER REPORT ICONTINUEDI:
12. AB #16.790 - ENCINA POWER PLANT PROCESSING REQUIREMENTS - PROPOSED
DESALINATION FACl LITY.
Council Member Hall cited a potential conflict of interest and left the meeting at 8:40 p.m.
Michael Holzmiller, Planning Director, presented the staff report and made a Power Point
Presentation (on file in the City Clerk’s Office). Council and Mr. Holzmiller discussed the four
processing alternatives included in the Power Point Presentation.
Walter Winrow, 501 West Broadway, #840, San Diego, representing Poseidon Resources, said
they do not want to compromise the City’s long term objectives. He said by commencing the
process now, they acknowledge there is no predetermined outcome and Council retains
discretion if the project advances. Mr. Winrow said that they hope that their application for a
desalination facility can be processed concurrently with the larger parcels and that the project
can continue on track. Mr. Winrow said that Poseidon Resources is committed to working with
staff to accomplish the City’s goals and objectives.
Ken Weinberg, 4677 Overland Avenue, San Diego, Director of Water Resources, representing
the County Water Authority, said he was present to answer any questions. In response to
Mayor Lewis, Mr. Weinberg said that the City of Carlsbad has a competitive advantage in the
desalination program. He said that the EIR and processing time are a requirement of the
Metropolitan Water District Funding Program.
Council Member Finnila noted that the County Water Authority (CWA) has eminent domain over
the City. Therefore, Council Member Finnila said she was hesitant to proceed quickly.
Mr. Weinberg explained that one of the actions of the CWA Board of Directors is to direct the
CWA staff to work with the City of Carlsbad on the environmental process. He said that the
CWA has tried to explain to the Metropolitan Water District that sufficient time has not been
allowed for the environmental process. Mr. Weinberg said he was not sure if the Metropolitan
Water District would extend the timing to address environmental issues.
Mr. Weinberg said that the CWA Board of Directors has demonstrated a commitment to move forward with the process. He said that the CWA would continue working with the City of
Carlsbad staff, Cabrillo Power and Poseidon Resources to develop the desalination project.
In response to Council, Mr. Weinberg said that other companies, besides Poseidon Resources
have expressed interest in developing a desalination project at the Encina Power Plan.
Council concurred that Alternative No. 1 (Applicantlproperty owner-initiated comprehensive
Specific Plan amendmenffupdate) is the most appropriate alternative. Council Member Finnila
asked if this decision should be postponed in order to determine if all partners in the
4
June 1 I, 2002 CARLSBAD CITY COUNCIL MEETING Page 10
desalination project agree with the principles. Mayor Lewis said that it would not be appropriate
to postpone tonight’s decision.
ACTION: On a motion by Council Member Kulchin, Council approved Alternative No. 1
(Applicant/ Property owner - initiated Comprehensive Specific Plan
Amendment/ 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 that is followed. This alternative would
require the cooperation and resource commitment by the property owners.); and,
that the negotiations principles shall be available to the public.
- AYES: - NOES: None.
ABSENT: Hall.
Lewis, Kulchin, Finnila and Nygaard.
Peter MacLaggan, representing Poseidon Resources, said that he was not convinced that all
parties are motivated to proceed. Mayor Lewis said that this is what will be determined.
(Council Member Hall returned at 9:30 p.m.
AB# 16,790
MTG, 6-11-02
DEPT. PLN &
CITY OF CARLSBAD - AGENDA BILL
TITLE:
ENCINA POWER PLANT PROCESSING REQUIREMENTS -
PROPOSED DESALINATION FACILITY
EXHIBIT 3
12-
DEPT. HD.
CITY Am.
CITYMGR
RECOMMENDED ACTION:
That the City Council DIRECT staff to continue to require a comprehensive AmendmentlUpdate 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 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 the 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 was I) 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 tisually 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
jiscussions 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
iiedeveiopment Project. Two of the stated goals of the Plan were:
Facilitating the redevelopment of the Encina power generating facjlity to a smaller, more efficient power generating plant
a Developing new beach and coastal recreational opportunities.
3ased upon the adoption of the Redevelopment Plan and the Council’s Resolution of Intention in
1998, it has been staffs consistent position that no new improvements or facilities will be allowed at
he Encina Power Plant and no application for new facilities will be processed on the site until the ,ntire Specific Plan 144 is amended and the matters described above are addressed.
n December 2001, the Planning Department was requested to provide a letter to Poseidon
?esources Corporation which, in part, would identify processing requirements for a proposal to ocate a desalination facility at the Encina Power Plant. A copy of the letter is attached. The issue of
he Specific Plan update is included in the letter (top of Page 2).
PAGE 2 OF AGENDA BILL NO. 16r790
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 AmendmenVUpdate with any application which proposes new facilities or
improvements on the Encina Power Plant site. However, there are alternative processing schemes
which could be considered by the Council. Staff has identified four processing approaches, which
are described below.
Alternative 1 - ApplicanVProperty owner - initiated Comprehensive Specific Plan Amendmentl
Update. This alternative would require the applicant for any proposed project, such as the
desalination pfant, 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 AmendrnentlUpdate. 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 amendmentlupdate 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 PfanVDesalination Facility Site and Replace with
Precise Development Plan. This alternative is the one preferred by the owner of the power plant and
the applicant for the desalination facility. The zoning of the power plant site (PU) requires a Precise
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.
PAGE 3 OF AGENDA BILL NO. 16.790
Staff is presently operating under the Alternative 1 processing approach described above. If the
Council desires to operate under an alternative approach, staff should be so directed and the City
Attorney should return with a resolution formalizing the alternative approach.
Regardless of the approach that is utilized in processing the application for the proposed
desalination facility, staff has drafted some key principles to be used in reviewing the application and
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.
4. Principles for Desalination Negotiations.
Resolution of Intention No. 98-145
Letter to Poseidon Resources Corporation, dated December 6,2001
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CITY COUNCIL RESOLUTION OF INTENTION NO. 98-145
A RESOLUTION OF THE CITY COUNCIL OF THE CIN 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
DlEGO GAS AND ELECTRIC COMPANY
WHEREAS, the San Diego Gas and Electric Company (SDG&E) initially
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 SDG&E 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
50'x16' control room in 1977, the relocation of a maintenance building, expansion of a
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switching substation and driveway in 1980, the expansion of a distribution substation ir
1982, the addition of a 6,168 square foot administration building in 1984, the
remodeling of the electric shop in 1985, addition of a storeroom and repair facility ir
1986, the construction of a 24' x 40' pipe storage shed in 1986, the construction of a
30' x 30' metal paint shop in 1986, the addition of numerous microwave dishes and
radio antenna attached to the stack, and the addition of temporary ofice trailers; and
WHEREAS, SDG&E was informed that any future modifications, changes,
amendments or additions to its plant would require a complete major amendment to the
specific plan processed in accordance with Chapter 21.36 of the Carlsbad Municipal
Code, and at that time, the cumulative impact of all previous changes would be
considered and an analysis would be made as to whether any conditions are necessary
to address those cumulative impacts; and
WHEREAS, in 1975, the PU Zone was updated to require a Precise
Development Plan (PDP) rather that a Specific Plan for public utility uses; and
WHEREAS, SDG&E has been informed that a Precise Development Plan
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 Plant
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
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WHEREAS, the existing Specific Plan for the SDG&E properties does noi
address the regulations and restrictions of the LCP; and
WHEREAS, the City applied to the Coastal Commission to obtain effective
certification for the Agua Hedionda LCP but was requested by SDG&E to withdraw the
application which the city subsequently did based upon a commitment by SDG&E that it
would update its Specific Plan and bring the Power Plant site into conformance with the
Site Development Plan VPlan") requirements contained in Chapter 21. 36 of the
Carlsbad Municipal Code; and
WHEREAS, SDG&E did not follow through on its commitment regarding
the LCP; and
WHEREAS, the Zoning designations on the SDG&E properties are not in
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 TraveVRecreational 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
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WHEREAS, SDGBE has now informed the city that it is mandated by the
courts to divest itself from its electric generating operations and facilities and has
applied to the California Public Utilities Commission for permission to sell the Encina
Power Plant to a private operator without addressing or agreeing to address the
aforementioned issues regarding outdated plans, land use inconsistencies, coastal
concerns and unfulfilled commitments; and
WHEREAS, the sale of the Power Plant site to a private operator raises
additional issues and public concerns including future restrictions on public access to
the Agua Hedionda Lagoon, future dredging of the lagoon, restrictions on the use of the
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, beach
area improvements, environmental clean-up and mitigation related to oil and fuel
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 SDG&E 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
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Carlsbad and is the best, long-term use of the property given its superior coasta
location and its proximity to other existing, surrounding uses that can be adverse11
impacted by Power Plant use; and
WHEREAS, since SDG&E 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 nonconforming use provisions of the Zoning Ordinance ma)
no longer be appropriate or necessary and this code section should be considered foi
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 recitations 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 (SDG&E) 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
SDG&E 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.
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5. Staff is also directed to consider the repeal or amendments to Sectior
21.48.1 Ow, as appropriate, of the Carlsbad Municipal Code regarding Public UtiliQ
exemptions from the non-conforming 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 %Y , 1998,
by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Nygaard and Hall
ATTEST:
n
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LOCATION MAP
EXHIBIT “A”
SDG&E PROPERTIES
ROI
EXHIBIT 2
1. RESEARCH
OUTLINE OF SDG&E WORKPLAN
23 MONTHS
a) review all existing filedinfo
b) review expansion chronology/files
c) review Specific Plan and AHL LCP
d) review PU zone; SP vs. POP requirements
e) list out designation inconsistencies to be addressed by Ila below
II. PROPOSE GENERAL PLANEONING DESIGNATIONS 6-9 MONTHS
a) zoning/General Plan/LCP inconsistencies; address short term fix
b) develop/proposed land use designations to address long term vision
c) review 21.48.1 00 re: nonconforming regulations and power utilities
d) review all LCP provisions for SDG&E properties (p. 1M7, p. 19, bike path,
etc.)
e) if possible, conclude with recommendation on long term status of power plant
111. DEVELOP “MASTER PLAN”/DEVELOPMENT 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
t
101 ASH STREEl P.O. BOX 1831 SAN DIECiO. CA 92112-4150 8lOmW-4441 FAX61SI606488E
EDWlN A. GUILES
PRESIDW May 12,1998
Honorable Claude E. Lewis, Mayor
Members of the City Council
City of Carlsbad
1200 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
Power Plant and Agua Hedionda Lagoon. Your proposed action is of course the result of issues
which have been identified between us as part of the sale by SDG&E of the Encina Power Plant,
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 fbture 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
issues, without question we recognize the importance of responding ro you in a productive
manner. We ask your consideration of a one-month continuance of this item in order that we can
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
EXHlSlT 3 City of
December 6,2001
Mr. Walter J. Winrow
Executive Vice President Poseidon Resources Corporation 501 West Broadway, Suite 840
$an Diego, CA 92107
CARLSBAD DESALINATION PLANT PROPOSAL
Dear Mr. Winrow:
Representatives from the offices of the City Manager and City Attorney, and departments of
Administrative Services, Community Development, Finance, Planning, and Public Works have met to
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 faality 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. Specific Plan - The power plant and lagoon and other nearby properties (including properties
owned by SDGILE) are within the boundaries of Specific Plan 144, adopted by ordinance in
1971. The Plan covers approximately 680 acres and includes land east of Interstate 5.
South Carlsbad Coastal Redeveioprnent 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 regufations.
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 92008-731 4 - (760) 602-4600 FAX (760) 602-8559 6p .: l9
Mr. Walter Winrow
December 6,2001
Page 2
0 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 POP 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 #e authorization of San Diego Gas and Electric. Additionally, if the sale or
iease of property is necessary to accommodate the proposal, submittal of a subdivision map to the
city will also be required.
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 chy. 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.
--_
-.. 1. \
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 Cqtnmission.
The Encina Power Plant is within the boundaries of the Agua Hodionda 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 pian
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 fur preparing California Environmentaj 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.
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) 602461 8. Questions about the Coastal Commission's
procedures may be directed to its San Diego Coast District office at (61 9) 767-2370.
i
Sincerely,
MICHAEL J. HOLZMILLER
Planning Director
Enclosures
c: Peter Maclaggan, Poseidon Resources Community Development Director
J. Michael McDade, Sullivan Wertz McDade & Wallace City Manager City Attorney Finance Director Administrative Services Oirector Public Works Director
Assistant Planning Director Deputy Public Works Director
Housing & Redevelopment 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 norma! 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-11-2082 15:a SDG8E
The Honorable Mayor Lewis and
City Council Members City of Carlsbad
1200 Carisbad Village Drive Carlsbad, CA 82008
June 11.2002
RE: June 1 I, Carlsbad City Council Meeting
Agenda Item 12, Encina Power Plant Desalination Facility
Dear Mayor Lewis and City Councilmembers:
San Diego Oas & 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
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.
, desalination proposal. I
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. ,.
Sincerely,
Frank Urlasun Regionat ,Public Affairs Manager
TOT& P.82 33