HomeMy WebLinkAbout2022-11-15; City Council; ; Electric Use Agreement with Kiewit-Shea II for consumption of electricity from the panel and meter at Temporary Fire Station 7CA Review __AF___
Meeting Date: Nov. 15, 2022
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: John Maashoff, Public Works Manager
john.maashoff@carlsbadca.gov, 442-339-2980
Subject:
District:
Electric Use Agreement with Kiewit-Shea II for consumption of
electricity from the panel and meter at Temporary Fire Station 7
2
Recommended Action
Adopt a resolution authorizing the City Manager or designee to execute an electricity use
agreement with Kiewit-Shea II, a joint venture, regarding consumption of electricity from the
electrical panel and meter at Temporary Fire Station 7.
Executive Summary
The City of Carlsbad is building a temporary fire station at 4600 Carlsbad Blvd. to better serve
the coastal area. The City Council is being asked to approve an agreement with Kiewit-Shea II, a
contractor doing construction work at the adjacent desalination plant, that will allow the
company to use power from the city’s electric meter while it completes its work.
The agreement provides for the city to be reimbursed for the cost of the power.
Staff request that the City Council authorize the City Manager, or designee, to execute an
Agreement with Kiewit-Shea II for use of the electrical panel and SDG&E meter at Temporary
Fire Station 7.
Discussion
Temporary Fire Station 7 will consist of two modular residential buildings and a movable high-
tensioned fabric structure that will serve as the station’s garage.
The electricity required to serve Temporary Fire Station 7 will come from an existing San Diego
Gas and Electric electric meter. The city will become responsible for paying for the electricity
used from this meter once the meter starts serving the fire station.
Kiewit-Shea is a contractor performing construction activity at the desalination plant site near
Temporary Fire Station 7. Kiewit-Shea sought permission to use power from the city’s electric
meter to serve its temporary construction trailers while its performs work adjacent to the
temporary fire station site.
Staff recommend that the city enter into an electric use agreement that will provide Kiewit-
Shea with the power and allow for the city to be reimbursed for the costs of the electricity it
uses from the meter.
Nov. 15, 2022 Item #3 Page 1 of 16
Timeline
The City Council has taken the following actions in approving the Temporary Fire Station 7
project:
March 11, 2021: Identified as one of its four priority goals for fiscal year 2021-22 to
“bring the Fire Department into conformance with the standards of cover evaluation.”
This refers to the Standards of Coverage, a document that determines the level of
protection that best fits a fire department’s needs.
May 11, 2021: Adopted Resolution No. 2021-111, approving a work plan to implement
its priority goals that identified and detailed the need for Temporary Fire Station 7 west
of the railroad tracks, near Carlsbad Boulevard.
April 5, 2022: Adopted Resolution No. 2022-082, authorizing purchase of the required
second modular residential building and the materials necessary to expand the fabric
structure to 3,200 square feet.
June 21, 2022: Adopted Resolution No. 2022-150, authorizing the city to enter into a
license agreement with Cabrillo Power I LLC, a subsidiary of NRG West Coast LLC, or
NRG, to locate Temporary Fire Station 7 on property owned by NRG at 4600 Carlsbad
Boulevard.
July 26, 2022: Adopted Resolution No. 2022-188, approving the plans and specifications
and authorizing the City Clerk to advertise for bids for construction of a temporary
garage for the Temporary Fire Station 7 construction project.
The project
Temporary Fire Station 7, which is to be built on the former power plant site along Carlsbad
Boulevard near Cannon Road, as shown on the location map in Exhibit 2, will consist of two
modular residential buildings and the high-tensioned fabric structure that will be used as the
garage to store Fire Department vehicles and equipment.
Design of the project is nearing completion, applicable building permits have been applied for,
and, under the terms of the license agreement with NRG Energy, the property owner, the
premises availability date for the property that will serve as Temporary Fire Station 7 was
established as Sept. 1, 2022. The city sent a letter to NRG On Oct. 19, 2022, with a notice of
readiness to commence construction on Nov. 1, 2022.
Electricity use
Power for the temporary fire station will come from an existing electrical panel and SDG&E
meter adjacent to the licensed property. The electrical panel formerly served the NRG
administration and warehouse buildings that were recently demolished and currently serves
the construction trailers managed by Kiewit-Shea, who is performing construction work for
Poseidon Resources LLC on property adjacent to the city’s licensed property. Billing associated
with the panel and electrical meter is anticipated to transition from NRG to the City of Carlsbad
later this year, immediately after the city connects service lines to the meter.
Kiewit-Shea is currently using electricity from the panel and meter and has requested
continuing this use for approximately one year, or until its construction project is complete.
Staff support the company’s request, which will limit the amount of trenching, conduit
Nov. 15, 2022 Item #3 Page 2 of 16
installation and related construction activities needed to provide power to the contractor while
it completes its work.
Staff have prepared the agreement in Exhibit 1, which would allow for Kiewit-Shea’s continued
use of the meter.
In accordance with the terms of the agreement, Kiewit-Shea will install a sub-meter that will
measure the amount of electricity used to power its construction trailers and will reimburse the
city for these costs, in keeping with the terms of the agreement.
Options
Staff provide the following options for the City Council’s consideration:
1. Adopt a resolution authorizing the City Manager, or designee, to execute an electricity
use agreement with Kiewit-Shea regarding consumption of electricity from the electrical
panel and meter at Temporary Fire Station 7
Pros
• This arrangement would limit the construction activities needed on the site
adjacent to Temporary Fire Station 7.
• It also requires Kiewit-Shea to reimburse the city for its use of the electrical
panel and meter at the site.
Cons
• Nominal staff time will be required to collect electric meter data and process
monthly billing during the term of the agreement.
2. Do not adopt the resolution.
Pros
• Staff will not have to collect electric meter data and processing billing
Cons
• The impacts of construction for installation of a new electric meter panel and/or
electric meter may cause interruptions to Temporary Fire Station 7 operations.
Staff recommend Option 1.
Fiscal Analysis
The agreement requires Kiewit-Shea to be reimburse the city for all fees associated with the
cost and delivery of the electricity the contractor uses from the SDG&E electric meter once the
meter charges become the city’s responsibility.
Next Steps
With the City Council’s approval, the City Manager or designee will execute the agreement and
staff will authorize Kiewit-Shea to install a sub-meter in accordance with the terms of the
Agreement.
Staff will read the sub-meter and process monthly reimbursement requests until Kiewit-Shea
completes its construction activity and the Kiewit-Shea service lines are disconnected from the
meter, which staff expect will occur in about a year.
Nov. 15, 2022 Item #3 Page 3 of 16
Environmental Evaluation
The City Planner determined on Dec. 20, 2021, that the project belongs to a class of projects
that the State Secretary for Natural Resources has found do not have a significant impact on the
environment, and it is therefore categorically exempt from the requirement for the preparation
of environmental documents, according to the following sections of California Environmental
Quality Act Guidelines: Section 15301 – Existing Facilities, (b); 15303 – New Construction or
Conversion of Small Structures, (c); and 15304 –Minor Alterations To Land, (f).
In making this determination, the City Planner has found that the exceptions listed in Section
15300.2 of the guidelines do not apply to this project. Specifically:
• The project is consistent with 15301(b) because it is located on a developed site with
existing parking and utilities, such as gas, sewer, water and electrical amenities.
• The project is consistent with Section 15303(c) because the two temporary buildings
that would house a maximum of seven staff members and would contain two offices
are each less than 2,000 square feet and combined are less than 6,000 square feet.
• The project is consistent with Section 15304(f) because there will be minor trenching
conducted to connect to existing underground utilities and the surface would be
restored. Purchasing modular buildings for implementation is consistent with that
determination.
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and it was available for public
viewing and review at least 72 hours prior to the scheduled meeting date.
Exhibits
1. City Council resolution
2. Location map
Nov. 15, 2022 Item #3 Page 4 of 16
RESOLUTION NO. 2022-258
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO
EXECUTE AN ELECTRICITY USE AGREEMENT WITH KIEWIT-SHEA II
REGARDING CONSUMPTION OF ELECTRICITY FROM THE ELECTRICAL PANEL
AND METER AT TEMPORARY FIRE STATION 7
WHEREAS, the City Council identified as one of its four priority goals for fiscal year 2021-22 to
"bring the Fire Department into conformance with the standards of cover evaluation,"; and
WHEREAS, on May 11, 2021, .the City Council adopted Resolution No. 2021-111, approving a
work plan to implement its priority goals that identified and detailed the need for Temporary Fire
Station 7 west of the railroad tracks, near Carlsbad Boulevard; and
WHEREAS, on June 21, 2022, the City Council adopted Resolution No. 2022-150! authorizing the
city to enter into a license agreement with Cabrillo Power I LLC, a subsidiary of NRG West Coast LLC, or
NRG, to locate Temporary Fire Station 7 on property owned by NRG at 4600 Carlsbad Boulevard; and
WHEREAS, the existing electric panel and San Diego Gas and Electric, or SDG&E, meter
immediately adjacent to the Temporary Fire Station 7 project will be used to provide electricity to
Temporary Fire Station 7; and
WHEREAS, Kiewit-Shea 11, a Joint Venture, or Kiewit-Shea, is currently using the panel and meter
to provide electricity for their temporary construction trailers adjacent to the city-licensed Temporary
Fire Station 7 property; and
WHEREAS, electricity charges and billing for the SDG&E meter will become the City of Carlsbad's
responsibility immediately upon connection of any Temporary Fire Station 7 services lines to the meter;
and
WHEREAS, the city wishes to continue to allow Kiewit-Shea to use power from the panel and
meter for the duration of their temporary construction activities to limit the amount of trenching,
conduit installation and other related construction activity that would occur near Temporary Fire
Station 7; and
WHEREAS, the City of Carlsbad and Kiewit-Shea wish to enter into an Electricity Use Agreement
that will allow both parties to equitably share the costs of electricity and all related SDG&E charges for
the meter during the term of the Agreement; and
Exhibit 1
Nov. 15, 2022 Item #3 Page 5 of 16
WHEREAS, the City Planner has determined that the project belongs to a class of projects that
the State Secretary for Natural Resources has found do not have a significant impact on the
environment, and it is therefore categorically exempt from the requirement for the preparation of
environmental documents, according to the following sections of the California Environmental
Quality Act, or CEQA, Guidelines: Section 15301-Existing facilities, (b); 15303 -New construction or
conversion of small structures, (c), 15304 -Minor alterations to land, (f).
In making this determination, the City Planner has found that the exceptions listed in Section
15300.2 of guidelines do not apply to this project. Specifically: {1) The project is consistent with
15301 (b) because it is located on a developed site with existing parking and utilities, such as gas,
sewer, water and electrical amenities; (2) the project is consistent with Section 15303 (c) because the
two temporary buildings that would house a maximum of seven staff members and would contain
two offices are each less than 2,000 square feet and combined are less than 6,000 square feet and {3)
the project is consistent with Section 15304 (f) because there will be minor trenching conducted to
connect to existing underground utilities and the surface would be restored. Purchasing modular
buildings for implementation is consistent with that determination.
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 hereby authorizes the City Manager, or designee, to execute an
Electricity Use Agreement with Kiewit-Shea II, a Joint Venture, regarding consumption
of electricity from the electrical panel and meter at Temporary Fire Station 7, which is
attached hereto as Attachment A.
Nov. 15,2022 Item #3 Page 6 of 16
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 15th day of November, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Acosta, Norby.
None.
None.
MATT HALL, Mayor
_fvFAVIOLA MEDINA, City Clerk Services Manager
(SEAL)
Nov. 15,2022 Item #3 Page 7 of 16
ELECTRICITY USE AGREEMENT BETWEEN THE CITY OF CARSLBAD AND KIEWIT-SHEA II FOR
USE OF THE ELECTRIC PANEL AT FIRE STATION NO. 7
Attachment A
This Electricity Use Agreement ("Agreement") is entered into between the City of Carlsbad, a
municipal corporation (hereinafter referred to as "City") and Kiewit-Shea II, a Joint Venture (hereinafter referred to as "Contractor) regarding consumption of electricity as described below.
City and Contractor are hereinafter referred to individually as "Party" and collectively as the
"Parties".
RECITALS
A.Cabrillo Power I LLC, a Delaware limited liability company, ("Cabrillo Power'')
owns real property located at 4600 Carlsbad Boulevard in Carlsbad, California 92008 (the
"Property"). B.Cabrillo Power currently leases a portion of the property to Poseidon Resources
LLC.
C. Poseidon Resources LLC has retained Contractor to temporarily perform variousconstruction-related services on the Property
D. Contractor estimates their construction-related services on the Property will
conclude in winter 2023.
E.The City recently executed a License Agreement ("License") with Cabrillo Power
whereby the City will locate three temporary structures on a portion of the Property ("Licensed Premises") to serve as a temporary Fire Station ("Fire Station").
F.The City expects construction of the Fire Station to begin sometime in November
2022.
G. The Fire Station will be served by an existing San Diego Gas & Electric Company
("SDG&E") electrical meter service ("Master Meter") adjacent to the Licensed Premises. A
diagram of the Master Meter's location in relation to the proposed Fire Station and Contractor's
trailers is attached as Attachment A.H.Billing for the SDG&E Master Meter is anticipated to transition to the City of
Carlsbad immediately before the City connects any service lines to the Master Meter.
I.Contractor's construction operations require access to the Master Meterbeginning in September 2022. J.This Agreement governs the responsibilities and terms between City and
Contractor since Contractor desires to install a sub-meter off the Master Meter to measure, and
pay for, the amount of electricity Contractor consumes from the Master Meter when City and Contractor's operations coincide on the Licensed Premises.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth
herein, the Parties hereby agree as follows:
I.Project Description (hereinafter referred to as "Project")
All charges for electricity that Contractor consumes from the Master Meter after responsibility for
the Master Meter transitions to the City will be measured by an electronic sub-meter. The submeter shall be read monthly by City staff or a city representative on the same day SOG&E reads
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PLOTTED BY: Andy Chang PLOT DATE: 2/24/2022 PATH: Z:\John_Maashoff\FS7_Temp_Exhibit\FS7_Temp_Exhibit_Revised_01-26-22.mxd
PROJECT NAME EXHIBITPROJECT
NUMBER4091 2TEMPORARY FIRE STATION 7
LOCATION MAP
CARLSBAD
VISTA
ENCINITAS
SAN MARCOS
OCEANSIDE
Legend
PARKING
DRIVE AISLE
LAYDOWN AREA
BUILDINGS
Vicinity
Exhibit 2
Nov. 15, 2022 Item #3 Page 16 of 16