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HomeMy WebLinkAbout2014-01-14; City Council; MinutesMINUTES MEETING OF: THE CITY OF CARLSBAD CITY COUNCIL AND CARLSBAD MUNICIPAL WATER DISTRICT BOARD OF DIRECTORS (Joint Special Meeting) DATE OF MEETING: January 14,2014 TIME OF MEETING: 6:00 P.M. PLACE OF MEETING: City Council Chamber, 1200 Carlsbad Village Drive, Carlsbad CALL TO ORDER: Mayor/President Hall called the Meeting to order at 6:19 p.m. ROLL CALL was taken by City Clerk/Secretary, as follows: Present: Council/Board Members Hall, Packard, Wood and Blackburn. Absent: Council/Board Member Douglas. APPROVAL OF MINUTES: On a motion by Mayor Pro Tem/Vice President Packard, the minutes ofthe following meeting were approved as presented. Minutes ofthe Joint Special Meetings held December 3, 2013. (Board only) DEPARTMENTAL AND EXECUTIVE MANAGER REPORT: 12. AB #21.482 - APPROVE AN AGREEMENT BETWEEN AND AMONG THE CiTY OF CARLSBAD AND THE CARLSBAD MUNICIPAL WATER DISTRICT. CABRILLO POWER I LLC. CARLSBAD ENERGY CENTER LLC. AND SAN DIEGO GAS & ELECTRIC. Mayor/President Hall recused himself from the meeting citing a potential conflict of interest and left the dais at 6:20 p.m. City Attorney/General Counsel Celia Brewer gave a brief explanation ofthis item and thanked staff members and the negotiating teams who were involved in this process. Assistant City Manager Gary Barberio gave the staff report and PowerPoint presentation (on file in the office ofthe City Clerk). January 14, 2014 City of Carlsbad City Council and Municipal Water District Board of Directors Joint Special Meeting Page 2 Attorney Steve Hall gave a PowerPoint presentation outlining remedies for non-performance (on file in the office ofthe City Clerk). Mr. Barberio responded to questions from Council/Board regarding Lot 11, the Caruso property, and the number of acres occupied by the SDG&E switch station, NRG and the desalination plant. Mayor Pro Tem/Vice President Packard introduced Jim Avery, Senior Vice President Power Supply, SDG&E, and John Chillemi, Regional President, NRG West Region, who gave PowerPoint presentations (on file in the office ofthe City Clerk). Discussion ensued regarding the unexpected early retirement ofthe San Onofre Nuclear Generating Station, above ground demolition of the existing plant, below ground remediation, soil mitigation, upgrade ofthe sewer lift station, elimination ofthe use of ocean water, agreements with Poseidon for dredging Agua Hedionda Lagoon, possible availability of the SDG&E switch yard property, estimated regional energy requirements for the future, eventual retirement of all coastal power plants, and next generation power plants. RECESS: Mayor Pro Tem/Vice President Packard called a recess at 7:25 p.m. RECONVENE CITY COUNCIL MEETING: Mayor Pro Tem/Vice President Packard reconvened the Council/Board meeting at 7:30 p.m. with three Council/Board members present. The following people came forward in support ofthis item - Ted Owen, President and CEO, Carlsbad Chamber of Commerce Mike Hadland, representing State Assembly Member Rocky Chavez Norm Abell, Co-owner, Aqua Farm Nicholas Segura, representing the Electrical Workers' Union Tom Lemmon, representing the Building Trades Union Don Kent, Hubbs Hatchery Lisa Rodman, representing Agua Hedionda Lagoon Foundation Peter MacLaggan, Poseidon Resources The following person came forward in opposition to this item - Peter Hasopopoulos, Sierra Club Arnie Roe, Carlsbad, came forward to address Council/Board stating that there was no rush to commit to a complex agreement. January 14, 2014 City of Carlsbad City Council and Municipal Water District Board of Directors Joint Special Meeting Page 3 Kerry Siekman, Carlsbad, came forward in support ofthe amendment but opposed to a power plant on the coastline. Council/Board Member Wood asked Mr. Avery to expand on SDG&E's energy portfolio, with regard to sustainable and renewable energy. ACTION: On a motion by Mayor Pro Tem Packard, Council adopted RESOLUTION NO. 2014-010. approving an agreement between and among the City of Carlsbad (City) and the Carlsbad Municipal Water District (CMWD), Cabrillo Power I LLC and Carlsbad Energy Center LLC (collectively, NRG), and San Diego Gas and Electric (SDG&E), addressing City and CMWD support for a change in the proposed technology ofthe approved Carlsbad Energy Center Project (CECP) plant and the submittal of a Petition To Amend (PTA) application to the California Energy Commission (CEC) for approval of this technology change, conditioned upon the decommissioning, demolition, removal and remediation ofthe current Encina Power Station (EPS) site, as well as other changes in CECP plant design, energy infrastructure and property considerations beneficial to the residents of Carlsbad. AYES: Packard, Wood and Blackburn. NOES: None. ABSENT: Hall and Douglas. ACTION: On a motion by Vice President Packard, Board adopted RESOLUTION NO. 1487. approving an agreement between and among the City of Carlsbad (City) and the Carlsbad Municipal Water District (CMWD), Cabrillo Power I LLC and Carlsbad Energy Center LLC (collectively, NRG), and San Diego Gas & Electric (SDG&E), addressing City and CMWD support for a change in the proposed technology of the approved Carlsbad Energy Center Project (CECP) plant and the submittal of a Petition To Amend (PTA) application to the California Energy Commission (CEC) for approval of this technology change, conditioned upon the decommissioning, demolition, removal and remediation ofthe current Encina Power Station (EPS) site, as well as other changes in CECP plant design, energy infrastructure and property considerations beneficial to the residents of Carlsbad. AYES: Packard, Wood and Blackburn. NOES: None. ABSENT: Hall and Douglas. January 14, 2014 City of Carlsbad City Council and Municipal Water District Board of Directors Joint Special Meeting Page 4 Mayor/President Hall returned to the dais at 8:14 p.m. ADJOURNMENT: Council/Board adjourned the Joint Special Meeting of January 14, 2014 at 8:15 p.m. BARBARA ENGLESON City Clerk/Secretary DONNA HERATY Deputy City Clerk/Deputy Secretary