Loading...
HomeMy WebLinkAbout2022-05-23; City Council; ; Update on Status of Negotiations to Relocate SDG&E’s North Coast Service Center to the City-Owned Parking Lot Properties at the Shopping Center Known as The Shoppes at CaCA Review _CB___ Meeting Date: May 23, 2022 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Gary Barberio, Deputy City Manager, Community Services Gary.barberio@carlsbadca.gov Celia Brewer, City Attorney Celia.brewer@carlsbadca.gov Subject: Update on Status of Negotiations to Relocate SDG&E’s North Coast Service Center to the City-Owned Parking Lot Properties at the Shopping Center Known as The Shoppes at Carlsbad District: 1 and 2 Recommended Action Receive status update and provide direction on negotiations to relocate SDG&E’s North Coast Service Center to the city-owned parking lot properties at the shopping center known as The Shoppes at Carlsbad. Executive Summary On April 20, 2021, the City Council authorized staff (Exhibit 1) to work with Brookfield Properties, NRG Energy (NRG), and San Diego Gas and Electric (SDG&E) to relocate the SDG&E North Coast Service Center (Service Center) from its current location near the northeast corner of Carlsbad Boulevard and Cannon Road to a portion of the city-owned parking lot properties at The Shoppes at Carlsbad to facilitate the transfer of the 16.37 acre Service Center site, as well as two other properties, to the City of Carlsbad as anticipated in the “Settlement Agreement dated as of January 14, 2014 Between and Among The City of Carlsbad, Carlsbad Municipal Water District, Cabrillo Power I LLC, Carlsbad Energy Center LLC, and San Diego Gas and Electric Company” (Settlement Agreement). Brookfield, NRG, and SDG&E attended the April 20, 2021, City Council meeting and supported the effort to explore relocating the Service Center somewhere on The Shoppes site. Staff will provide a verbal update of the status of these negotiations and the actions taken to date to secure a mutually acceptable site. SDGE, Brookfield, and NRG will also be provided five minutes to address the City Council as part of the presentation should they so choose. May 23, 2022 Item #1 Page 1 of 10 Discussion Background As you may recall, SDG&E approached the city with the proposal that was eventually captured in the Settlement Agreement. Due to the early closure of the San Onofre Nuclear Generating System (SONGS), the Governor of California was concerned about energy reliability. NRG, against the city’s strong opposition, had secured a permit approval from the California Energy Commission for the construction of a new combined-cycle plant, but had not entered into a power purchase agreement (PPA) with SDG&E. The Governor pressured SDG&E to enter into a PPA with NRG or else Southern California Edison would be urged to do so. SDG&E desired to purchase power from a plant generating energy through a different technology than NRG’s approved combined-cycle plant, but due to years of opposition and litigation between the city, SDG&E, and NRG over the permitted power plant, recognized the City of Carlsbad would not agree to support a permit amendment request at the California Energy Commission for the change in technology to a peaker-plant without receiving substantial community benefit. NRG committed to demolition of the then existing Encina Powers Station. SDG&E offered to relocate its Service Center so that the city could take title to the existing Service Center property along with two other SDG&E properties, essentially allowing the return of the property from industrial to coastal uses. In the Settlement Agreement, the transfer was made possible by having NRG pay the costs of the relocation, with the signed Settlement Agreement committing NRG to paying $22.5 million for the relocation, thereby saving ratepayers money. The history of the Settlement Agreement is important because SDG&E has successfully secured on the front end its preferred energy-generating technology in the now complete NRG-built 500 mega-watt peaker-plant, entered into a PPA with NRG to buy the power supplied by the new plant, kept Southern California Edison out of its service area, and has a commitment from NRG of $22.5 million in funding to relocate the service center, thereby saving ratepayers millions of dollars. The City now seeks to realize its benefits from the service center relocation under the Settlement Agreement. Time is of the essence in this negotiation because Brookfield and NRG need to start their respective projects. Conditional Use Permit CUP 11-07 Associated with the Settlement Agreement and SDG&E’s current Service Center operation is the issue of Conditional Use Permit CUP 11-07. The City Council originally approved CUP 11-07 on May 8, 2012, to allow the operation of a 2,850 square foot mobile building on the 16.27-acre SDG&E Service Center site. Typically, Carlsbad discourages temporary buildings, limiting them to five years absent an extraordinary circumstance. Here, to enable SDG&E to continue to work with the city towards a relocation of the Service Center, on Sept. 26, 2017, staff recommended and City Council approved a five-year extension of CUP 11-07. SDG&E is currently seeking approval of a second five-year extension to the CUP to allow the continued operation of the mobile building on the Service Center site. Staff cannot recall another occasion where the city allowed a temporary building for a 15-year term. Finality on relocation of the Service Center would enable staff to make an appropriate recommendation consistent with the City’s codes. May 23, 2022 Item #1 Page 2 of 10 Summary While the parties have met multiple times throughout the year and have been able to resolve numerous challenges and issues, we have yet to secure SDG&E’s commitment to move forward with relocation of the Service Center to The Shoppes site. We remain hopeful SDG&E will commit to relocate to the Shoppes site soon. If the parties are unable to reach agreement on relocation of the Service Center, the city will not take title to the properties identified in the Settlement Agreement. As noted in the attached April 2021 staff report, the City would receive a $10 million from NRG and SDG&E would forego the $22.5 million towards the service center. Staff continues to believe in and support the benefits to all parties in this negotiation as identified in the attached City Council Staff Report of April 20, 2022. We believe it is essential to secure SDG&E’s cooperation to realize the benefits represented to the community in the Settlement Agreement. The Settlement Agreement requires the parties to agree on a relocation site. Working in good faith, we believe the parties have solved or are close to solving all issues associated with the new site. Fiscal Analysis No additional funding is being requested at this time. Next Steps Following any City Council direction, staff will continue negotiations with the other parties and may return to City Council in open or closed session for further direction as the negotiations proceed. Environmental Evaluation (CEQA) Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of the California Environmental Quality Act in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Public Notification and Outreach This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date. Exhibits 1. April 20, 2021, City Council Staff Report and Resolution No. 2021-090 May 23, 2022 Item #1 Page 3 of 10 Meeting Date: April 20, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Gary T. Barberio, Deputy City Manager gary.barberio@carlsbadca.gov, 760-434-2822 Celia A. Brewer, City Attorney celia.brewer@carlsbadca.gov, 760-434-2891 Subject: Authorize Negotiations to Relocate SDG&E’s North Coast Service Center to the City-Owned Parking Lot Properties at the Shopping Center Known as The Shoppes at Carlsbad and Appropriate Funds for Professional Services District: 1 and 2 Recommended Action Adopt a resolution: •Authorizing staff to work with Brookfield Properties, NRG Energy and San Diego Gas & Electric to relocate the SDG&E North Coast Service Center from its current location near the northeast corner of Carlsbad Boulevard and Cannon Road, to a portion of the city owned parking lot properties at The Shoppes at Carlsbad to facilitate the transfer of the service center’s current site, as well as other properties, to the City of Carlsbad as anticipated in the “Settlement Agreement dated as of January 14, 2014 Between and Among The City of Carlsbad, Carlsbad Municipal Water District, Cabrillo Power I LLC, Carlsbad Energy Center LLC, and San Diego Gas & Electric Company” •Appropriating funds in an amount not to exceed $100,000 to retain the professional services of Kosmont Companies Executive Summary On Jan. 14, 2014, the City Council (with Resolution No. 2014-010) and the Carlsbad Municipal Water District Board (Resolution No. 1487) approved a settlement agreement that resolved longstanding disagreements between several parties related to the decommissioning and demolition of the existing power plant known as Encina Power Station and construction of a new plant known as Carlsbad Energy Center. Among other things, the settlement agreement anticipated the relocation of SDG&E’s North Coast Service Center, which is located near the northeast corner of Carlsbad Boulevard and Cannon Road [Settlement Agreement Section 5.1]. If the center is relocated in accordance with April 20, 2021 Item #6 Page 1 of 7 Exhibit 1 May 23, 2022 Item #1 Page 4 of 10 the terms of the settlement agreement, NRG would contribute up to $22.5 million to SDG&E for the relocation and reconstruction of a new service center [5.4], the City of Carlsbad would take ownership of certain properties totaling 24.5 acres, including the current SDG&E North Coast Service Center site [5.7], and the city and NRG would work in good faith to consider a joint development strategy for the power plant site and the service center site [6.2(b)]. The city has worked tirelessly with SDG&E to identify a mutually acceptable relocation site but has not yet been successful. Any selected service center relocation site must be approved by the California Public Utilities Commission, and SDG&E’s obligations under the settlement agreement are contingent on such approval [2.3(c)]. At the time the city entered into the settlement agreement, the parties anticipated the SDG&E- owned Parcel 11, located east of I-5 and north of Cannon Road, would fulfill the terms of the settlement agreement if a more acceptable alternative could not be found. Unfortunately, the parties have determined it would be too expensive and time-consuming to develop Lot 11 based on its challenging topography and sensitive resources and that the cost of constructing the service center on the site would greatly exceed NRG’s allotted financial contribution and violate the revenue neutrality requirement of the relocation terms [5.1(c)]. The demolition of the Encina Power Station is proceeding, and the settlement agreement commits NRG to move forward with redevelopment plans for the site. NRG’s ability to do so would be greatly enhanced if the NCSC relocation issue is resolved. The settlement agreement ties all below ground demolition and remediation obligations to the redevelopment of the site. In recent discussions with NRG, SDG&E and Brookfield Properties, staff have identified a possible solution to the issue of relocating the service center and are bringing the matter before the City Council for its consideration and direction. Discussion Background The settlement agreement requires the service center’s relocation to be revenue-neutral for SDG&E ratepayers, so the city has been reviewing city-owned properties to see if any could meet the criteria for a new site for the service center. The city owns approximately 67 acres surrounding the Shoppes, a regional shopping center owned by Brookfield. The city’s properties are burdened by certain deed restrictions limiting their use to parking lot purposes only. However, Brookfield is interested in expanding uses at the Shoppes site to include housing and other potential uses on the city’s properties, which present a number of opportunities. Based on preliminary discussions with SDG&E, NRG and Brookfield, there is a willingness to enter exploratory negotiations regarding the potential relocation of the North Coast Service Center to the city properties at the Shoppes in exchange for, among other possibilities, a transfer of the remaining portions of the city properties to Brookfield on mutually acceptable terms. Potential benefits City staff believe this transaction has the potential to provide benefits to the public and to the other parties if the parties work together to relocate the service center to the Shoppes site. The following is a partial list of these benefits April 20, 2021 Item #6 Page 2 of 7 May 23, 2022 Item #1 Page 5 of 10 Benefits to the City of Carlsbad •The city could receive the benefits it bargained for in the City Council-approved settlement agreement, including taking title to approximately 19 acres at the northeast intersection of Carlsbad Boulevard and Cannon Road as well as additional property identified in the settlement agreement [5.7]. •City could realize its long-term desire to move the service center off a prime coastal property. •Among other potential uses, the city could use this site to increase public safety by building a much-needed fire station and lifeguard headquarters west of the railroad tracks. The city has no fire stations west of the tracks and the lifeguards are currently based at Fire Station 1. •Housing on the city properties would help meet the allocation of housing that state law requires the city to provide for over the next eight years in its Housing Element, a component of its General Plan, and may provide increased flexibility for housing decisions throughout the city. •If the city takes ownership of the SDG&E property, NRG would be committed to a joint development strategy with the city, giving the city greater influence over what happens on both redevelopment sites. Benefits to NRG •Moving the service center off its current site would help optimize the adjacent powerplant site for its redevelopment by NRG. •Resolving this final item in the settlement agreement allows NRG to move forward in completing its obligations under the settlement agreement. Benefits to SDG&E •Would get a new service center, replacing one decades old. •Cost of building a new, modern service center would be subsidized by NRG, saving the utility’s ratepayers $22.5 million. Benefits to Brookfield •Could get use of city property surrounding the existing mall buildings for housing and other uses. •Could potentially secure greater finality in future land use decisions related to the Shoppes. •May be able to realize the “smart growth” potential of the site, allowing for new transportation alternatives. •City’s access to infrastructure financing and other governmental funding programs could benefit redevelopment of the site. This potential relocation would involve a complex, multi-party transaction. Yet staff believes if the city works in alignment with all parties it can maximize public benefits to the city and potentially create increased housing, transportation and revenue potential for all parties. April 20, 2021 Item #6 Page 3 of 7 May 23, 2022 Item #1 Page 6 of 10 Recommendations Staff recommend the City Council appropriate funds in an amount not to exceed $100,000 to retain the services of Kosmont Companies to assist the city in these negotiations. Kosmont Companies specializes in public-private partnerships, redevelopment and creative use of city tools to create value and revenue streams. The cost of the agreement with Kosmont Companies would not exceed $100,000, so the city manager would be the awarding authority for the agreement under Carlsbad Municipal Code Section 3.28.040(C)(2). City Council authorization of this item would allow staff to begin conversations and pursue preliminary concurrence on key transaction points related to the transfer, development and/or reuse of properties, including the city-owned properties. These conversations may include consideration of delivery of infrastructure and community amenities associated with the various properties and the potential disposition, exchange and/or leasing of properties, including consideration of private and public funding, financing mechanisms and/or districts and other governmental funding programs. Approval of this item is not a commitment to transact or change any zoning or generate a project under the terms of the California Environmental Quality Act. This item may be brought back to the City Council in closed session for direction on price and terms of the real estate transaction and to open session for direction on non-privileged matters. Both Brookfield and NRG are committed to seeking extensive public input prior to planning ultimate use of the sites. Fiscal Analysis Staff recommend the City Council appropriate funds in an amount not to exceed $100,000 from the City Council Contingency fund to the Community Services Branch Administration operating budget to retain the professional services of Kosmont Companies. Next Steps Staff will enter into a professional services agreement with Kosmont Companies and begin negotiations with the other parties and may return to City Council in open or closed session for further direction as the negotiations proceed. Environmental Evaluation The recommended action does not constitute a "project" within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 because it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Therefore, the action does not require environmental review. Public Notification and Outreach Public notice of this item was posted in keeping with the state's Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1.City Council resolution April 20, 2021 Item #6 Page 4 of 7 May 23, 2022 Item #1 Page 7 of 10 April 20, 2021 Item #6 Page 5 of 7 May 23, 2022 Item #1 Page 8 of 10 RESOLUTION NO. 2021-090 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING STAFF TO WORK WITH BROOKFIELD PROPERTIES (BROOKFIELD), NRG ENERGY (NRG), AND SAN DIEGO GAS & ELECTRIC (SDG&E) TO RELOCATE THE SDG&E NORTH COAST SERVICE CENTER (NCSC) FROM ITS CURRENT LOCATION NEAR THE NORTHEAST CORNER OF CARLSBAD BOULEVARD AND CANNON ROAD, TO A PORTION OF THE CITY OWNED PARKING LOT PROPERTIES AT THE SHOPPES AT CARLSBAD (SHOPPES), AND APPROPRIATE FUNDS IN AN AMOUNT NOT TO EXCEED $100,000 TO RETAIN THE PROFESSIONAL SERVICES OF KOSMONT COMPANIES WHEREAS, on Jan. 14, 2014, the City Council of the City of Carlsbad adopted Resolution 2014- 010 approving a Settlement Agreement between and among the City of Carlsbad (City), the Carlsbad Municipal Water District (CMWD), Cabrillo Power I UC and Carlsbad Energy Center LLC (collect ively, NRG), and San Diego Gas & Electric (SDG&E), related to the decommissioning and demolition of the existing power plant known as Encina Power Station (EPS) and construction of a new plant known as Carlsbad Energy Center (Settlement Agreement); and WHEREAS, among other things, the Settlement Agreement anticipated the relocation of SDG&E's North Coast Service Center (NCSC), which is currently located near the northeast corner of Carlsbad Boulevard and Cannon Road [5.1]; and WHEREAS, if relocated in accordance with the terms of the Settlement Agreement, NRG would contribute $22.5 million to SDG&E for the relocat ion and reconstruction of a new service center [5.4], City would take title to certain properties totaling approximately 24.5 acres [S.7J, and City and NRG would work in good faith to consider a joint development strategy for the Encina Redevelopment Site and the NCSC site [6.2(b)J; and WHEREAS, despite considerable, good-faith efforts, City and SDG&E have not been able to identify a mutually acceptable relocation site; and WHEREAS, the demolition of EPS is proceeding according to the commitments contained in the Settlement Agreement, however, NRG's ability to move forward with redevelopment plans for the site would be greatly enhanced if the NCSC relocation issue is resolved; and WHEREAS, the Settlement Agreement requires relocation of NCSC to be revenue neutral for SDG&E ratepayers; and April 20, 2021 Item #6 Page 6 of 7 May 23, 2022 Item #1 Page 9 of 10 WHEREAS, City has identified approximately 67 acres of City owned properties surrounding the Shoppes, a regional shopping center currently owned by Brookfield, that could meet the NCSC relocation criteria; and WHEREAS, City has engaged in preliminary discussions with SDG&E, NRG and Brookfield regarding possibilities for relocating NCSC to a portion of the City owned properties surrounding the Shoppes, and all parties have been receptive to the idea of engaging in negotiations; and WHEREAS, these potential relocation negotiations would involve a complex, multi-party transaction that could hel.p the parties to fulfill·the terms of the Settlement Agreement in a manner which will provide significant public benefit; and WHEREAS, an Indemnification and Hold Harmless Agreement between Brookfield and the City, indemnifying the City against any potential claims arising out of the City's participation in such negotiations, including any alleged violations of the existing Deed Restrictions will be executed; and WHEREAS, Kosmont Companies specializes in public-private partnerships, redevelopment and creative use of city tools to create value and revenue streams; and WHEREAS, the specialized expertise and experience of Kosmont Companies will be beneficial to the City in the negotiation process and will help optimize the potential public benefits associated with the relocation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Council authorizes city staff to work with Brookfield, NRG and SDG&E on a plan to relocate NCSC from its current location near the northeast corner of Carlsbad Boulevard and Cannon Road, to a portion of the city owned parking lot properties at the Shoppes in order to facilitate the transfer of the current NCSC site, as well other properties, to the City of Carlsbad as anticipated in the Settlement Agreement. 3. That the Deputy City Manager, Administrative Services is authorized to appropriate funds in an amount not to exceed $100,000 from the City Council Contingency fund to the Community Services Branch Administration operating budget to retain the professional services of Kosmont Companies. April 20, 2021 Item #6 Page 7 of 7 May 23, 2022 Item #1 Page 10 of 10 4. That staff will return to the City Council in closed session as necessary for direction on price and terms of the real estate transaction and to open session for direction on non- privileged matters as the negotiations proceed. 5. That this resolution does not commit the City to transact or rezone or generate a project under the California Environmental Quality Act. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 20th day of April, 2021, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher. None. None. MATT HALL, Mayor ~~~~ fvv BARBARA ENGLESON, City Clerk (SEAL) Tammy Cloud-McMinn From: Sent: To: Cc: Subject: Attachments: Good Morning, Mavis K Anguiano <Mavis@enactpartners.com> Monday, May 23, 2022 10:39 AM City Clerk; Council Internet Email Enact Partners All Receive -Agenda Item# 2 For the Information of the: CITY COUNCIL Date$3/J;k,A .,.,-cc ,,,,,.-- CM .L_ACM _ CM (3) :;,------ Letter to City of Carlsbad City Council regarding relocation of SDG&E North Coast Service Center Letter -MSchumacher to CC 5-23-22 -signed.pdf On behalf of Michael Schumacher, please find the attached letter regarding Relocation of SDG&E North Coast Service Center being addressed today at 4pm at the Special City Council Meeting. If you have any questions don't hesitate to contact Michael Schumacher directly. Thank you. Sincerely, Mavis K. Anguiano Office Administrator Main Office: (760) 516-7776 Direct: (760) 338-2575 mavis@enactpartners.com www.EnactPartners.com 5927 Priestly Drive, Suite 206 Carlsbad, California 92008 Linkedln Profile ~en act partners 'p guardian fund **Be aware! Online banking fraud is on the rise. If you receive an email containing WIRE TRANSFER INSTRUCTIONS, call your point of contact at Enact Partners immediately to verify the information prior to sending funds** CAUTION: Do not open attachments or click on links unless 1 May 23, 2022 City Council, City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Via: clerk@carlsbadca.gov; council@carlsbadca.gov Re: Relocation of SDG&E North Coast Service Center Dear Honorable Mayor and City Council Members: Relocating industrial uses along the coast was a priority during my service as a Carlsbad City Councilmember, and well before. The removal of the Encina Power Station was a significant step in that direction. Likewise, relocating SDG&E's North Coast Service Center opens up the opportunity to reposition scarce coastal land in a way that will better serve our county and the region. As Carlsbad grows, so too does the need for City emergency services west of the railroad tracks. Plus, relocating the SDG&E site presents countless opportunities for our community. This includes, in part, affording Carlsbad residents the opportunity to participate in creating a plan for this rare coastal property. I urge you to continue pursuing all of the City benefits in the settlement agreement. This includes urging SDG&E to agree to the Brookfield site or to be responsible for locating an alternate site. I also urge all parties to establish reasonable time frames to complete the relocation. Thank you for your service. Michael Schumacher (May 23, 202210:08 PDT) Michael Schumacher Tammy Cloud-McMinn From: Sent: To: DeAnn Weimer <dweimer318@yahoo.com> Monday, May 23, 2022 11 :01 AM City Clerk Subject: Comments on Power Plant May 23 Special Council Meeting May 23, 2202 Carlsbad City Council 1200 Carlsbad Village Dr. Carlsbad, CA 92008 Re: Power Plant Settlement Dear Mayor Hall and Council Members: All Receive -Agenda Item # l_ For the Information of the: CITY COUNCIL Date-;Jf /?J£.A VCC / CM_ACM V DCM(3)~ Tonight, as you consider efforts to further the settlement of the 2014 power plant agreement, the city's options seem limited largely to a bad faith claim against San Diego Gas & Electric. Apparently, the only number SDG&E was actually committed to was the $10 million it would pay to walk away from the agreement. Carlsbad did a deal and has no way to secure the proposed "benefits" to the city without further litigation. As residents, we really have no way to assess this situation, because we have been kept in the dark. Should we not have learned by now that public work should be done in the sunshine as much as possible? This process has been too opaque to maintain trust among the parties themselves, and certainly between the city and its residents. After all of this time, Carlsbad residents deserve full disclosure, i.e. the unredacted agreements and proposals among all parties to the lawsuit and land owners and interests impacted by the power plant site itself, the relocation sites, the land surrounding the entire Agua Hedionda Lagoon and the various land swaps, zone changes, etc., proposed. This information should include the unredacted contracts between Rick Caruso's representatives ahd others with an interest in these parcels or land touching these parcels and SDG&E or other government entities. 1 Of course, litigation and settlements require confidentiality, but there is a point when the public needs to know. Citizens are in the dark. That is not acceptable. Carlsbad residents deserve respect and transparency is the foundation of respect. Thank you. Regards, De'Ann Weimer 6606 Fiona Place Carlsbad, CA 92011 2 Tammy Cloud-McMinn From: Sent: To: Cc: Subject: Dear Carlsbad City Council, Lela Panagides <lela@panagides.com > Monday, May 23, 2022 12:14 PM Council Internet Email City Clerk Comments on Power Plant May 23 Special Council Meeting Imagine if you will that Carlsbad is named one of the must-stop destinations for enjoying the beautiful Pacific coastline with views, parks, trails, and outdoor recreation. If you have been to Point Lobos State Natural Reserve in the Carmel area, you know just how rare and remarkable it is to have places to stop along the Pacific Coast Highway to reenergize and be inspired by the beauty of our natural environment. As you continue your work as our elected leaders, keep in mind that every decision you make can have long- lasting impact on generations to come. Your decisions today can change the look and use of our precious coastline. Our natural world is disappearing at an alarming rate and leaders at all levels can work proactively together with citizens, private businesses, and government to help protect, preserve, and enhance our natural spaces. And, remember that although there is no price tag we can place on these priceless spaces, we can quantify the number of visitors we can attract who seek out places of natural beauty and respite which are increasingly rare. These visitors also patron our existing hotels, restaurants, and shops. Open spaces, parks, and accessible coastline are critical drivers of economic prosperity and protecting them is an investment not only in the health and vitality of our city's finances but also the health and well-being of our visitors and residents. Please help put Carlsbad on the map as a Pacific Coast Highway Stop. Commit to using land to increase park space, especially along our coast. Best regards, Lela Panagides 1 POINT NATUR _.Pa ifi OBOS S A E RESERVE oa t H . hw top 2 Tammy Cloud-McMinn From: Sent: To: Cc: Subject: Sam Ward <sam@wardforcarlsbad.com> Monday, May 23, 2022 1 :00 PM Council Internet Email City Clerk Comment re: May 23 Special Council Meeting Dear Mayor Hall and Councilmembers - I encourage you to hold SDG&E to the spirit of the 2014 agreement. The City of Carlsbad was a good partner with SDG&E in entering into the 2014 agreement and pacing the way for the construction of the peaker plant. We must demand that SDG&E be a good partner now in working with the City on a land swap that protects the vital coastal space at the power plant site for future use by and for the citizens of Carlsbad. The Council will be making decisions in the very near term that will dictate public access to, and use of, the last remaining undeveloped coastal space in Carlsbad. I hope the Council will remain laser-focused on preserving, protecting, and enhancing open space for the benefit of our community. Gaining control of the Encina site and reaching an agreement regarding the relocation of the SDG&E service yard to property adjacent to Plaza Camino Real is a critical step in that effort. Sam Ward 2438 Jefferson Street Carlsbad, CA 92008 1 Tammy Cloud-McMinn From: Sent: To: Cc: Subject: May 23, 2202 Carlsbad City Council 1200 Carlsbad Village Dr. Carlsbad, CA 92008 hopen51@att.net Monday, May 23, 2022 1:19 PM Council Internet Email City Clerk Special Council Meeting May 23, 2022 re Power Plant Settlement Re: Power Plant Settlement Dear Mayor Hall and Council Members: What is important to our community? Isn't that what guides us to make important decisions? Time and time again, when our City initiates surveys, what you hear is "Open Space" as a number one priority. Please take a hard look at our treasured coastline and our coastal zone properties. They are beautiful and irreplaceable. It is time for our City Council to respect them and to respect the wishes of the vast majority of your constituents. The City of Carlsbad must take sole possession of these properties and ensure zoning to keep them from development. Unfortunately, regarding the Power Plant, our Council has made another bad deal with SDG&E. It is up to you to fix it. This property must be retained and must be zoned for community use. That means not a firehouse, and not a lifeguard center. Both would have negative impact on Cannon Park. 1 Last, it is time to act with more transparency. We talk about transparency but see little of it when it comes to protection of our open spaces, and when it comes to dealings with developers. I still remember seeing Mayor Hall at a Coastal Commission Meeting in May of 2016, asking for an update to the General Plan that would allow for the Caruso Mall, defeated by a vote of the community just a few brief months prior. Somehow, I need to know that something like that will never happen again. Trying to be optimistic, Hope Nelson Carlsbad resident CAUTION: Do not open attachments or click on links unless 2 Update on Status of Negotiations to Relocate SDG&E’s North Coast Service Center to the City-Owned Parking Lot Properties at The Shoppes at Carlsbad Gary T. Barberio, Deputy City Manager Celia A. Brewer, City Attorney May 23, 2022 Background •Settlement Agreement approved by City Council on Jan. 14, 2014 •Between and among: City of Carlsbad, NRG and SDG&E Desal'im,tfan P= 1 Prop=-.-.d Gatrl's:,.d .En~y Cenfer Prujecf. NRG Prope-riy Endn" Po w.?r Statfan =G&E Sl.!b-SB!JCll"I & Swir::,J.i .:ar-ds r---, SD G&E N=ih ODa:;1 .____. SeNJCe Cea i"e.r C3'RB!>lil Pa J'k SDG&E North Coast Service Center •City & SDG&E work together to find a “mutually acceptable” relocation site; subject to SDG&E specs & cost neutrality •NRG to fund up to $22.5 million •If successful, City takes ownership of SDG&E parcels; City & NRG work on joint development strategy •If not successful, NRG pays City $10 million NRG c:::::J SDG&E 1 -A qua No, Shore Parcel 2-Fishing Beach 3 -Hubbs Sit e 4 -Bluff A re a 5-South Pow er Pl ant 6 -SDG&E Service Center 7 -Cannon P'ark SDG&E Locational Criteria •Within Carlsbad, west of ECR •Good access (freeway’s, major arterials, service area) •Relatively flat, rectangular in shape •10-12 acres •30-32K sq ft of building Carlsbad Desalination Pfant Proposed Carlstx:id Energy Center Project NRG Properly Encina Power Station SDG&E Subsi<Jion & s..,.,;tch Yards Terminate Relocation Efforts •NRG pays $10 million to the City •Staff resources limited to monitoring & enforcing remaining provisions •Readily accomplished -NRG saves $12.5 million; SDG&E, loses $22.5 million towards a new Center Terminate Efforts •City would not take ownership of SDG&E parcels •NRG & City would not have opportunity to pursue joint development strategy •NRG will have a more constrained redevelopment site •SDG&E forfeits $22.5 million for new Service Center; costs transferred ratepayers Pursue Relocation of SDG&E’s NCSC to a City Owned Site April 20, 2021, Carlsbad City Council directed staff to pursue relocation to: The City-Owned Parking Lot Properties at The Shoppes @ Carlsbad -Brookfield Properties Pursue Relocation at The Shoppes Benefits: •City gets Settlement Agreement benefits; SDG&E parcel(s), joint development strategy with NRG; possible public safety site •Housing on The Shoppes site advances City RHNA needs, provides flexibility throughout City •Brookfield could get use of city properties surrounding the existing mall buildings •NRG is keenly interested in better redevelopment site •SDG&E would benefit from a new service center Desal'im,tfan P= 1 Prop=-.-.d Gatrl's:,.d .En~y Cenfer Prujecf. NRG Prope-riy Endn" Po w.?r Statfan =G&E Sl.!b-SB!JCll"I & Swir::,J.i .:ar-ds r---, SD G&E N=ih ODa:;1 .____. SeNJCe Cea i"e.r C3'RB!>lil Pa J'k Conditional Use Permit CUP 11-07 •CC approved CUP on May 8, 2012 –5-year limit –2,850 sq ft mobile building for training needs •1st 5-year CUP extension approved by the CC on Sept. 26, 2017 •SDG&E is requesting 2nd 5-year CUP extension 1 North County Service Center Relocation Update Presentation to the Carlsbad City Council May 23, 2022 2 North Coast Service Center Supporting our mission to provide safe and reliable service Site facts: •Serves 250,000 customers •Communities served include Carlsbad, Encinitas, Del Mar, Rancho Santa Fe,Vista, Fallbrook, Camp Pendleton and Oceanside •Critical emergency services hub •219 employees •Serves 3,516 miles of distribution and transmission gas lines •Serves 2,934 miles of OH and UG electrical distribution lines •19 Substations •148 Circuits sos/' 1111///a/11/1/EM 3 Joe Gabaldon Public Affairs Manager jgabaldon@sdge.com