The URL can be used to link to this page

Home My WebLink About2022-11-15; City Council; ; Consideration of a Staff Recommendation to Discontinue Efforts to Include Lot 11 as a Potential Service Center Location in the Negotiations with SDG&E and NRG EnergyCA Review CKM Meeting Date: Nov. 15, 2022 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Gary Barberio, Deputy City Manager, Community Services gary.barberio@carlsbadca.gov, 442-339-2822 Cindie K. McMahon, City Attorney attorney@carlsbadca.gov, 442-339-2891 Subject: Consideration of a Staff Recommendation to Discontinue Efforts to Include Lot 11 as a Potential Service Center Location in the Negotiations with SDG&E and NRG Energy District: 2 Recommended Action Direct staff to discontinue efforts to include the site known as Lot 11 in the city’s negotiations with the San Diego Gas & Electric Company and NRG Energy based on its infeasibility as a suitable site for relocation of the SDG&E North Coast Service Center. Executive Summary/Discussion The City of Carlsbad has been negotiating with NRG Energy and San Diego Gas & Electric Company to relocate SDG&E’s North Coast Service Center from its current location near the northeast corner of Carlsbad Boulevard and Cannon Road 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.” The City Council received a status update on the negotiations on Oct. 11, 2022. The Mayor was absent at that meeting, and Council Member Norby had recused himself from participating in the agenda item. The City Council voted at that meeting to direct staff to continue efforts to negotiate to find an appropriate relocation site or reconfiguration of the current site and to return to the City Council for further direction on Dec. 13, 2022. Staff also sought direction from the City Council on whether to discontinue efforts to include the site known as Lot 11, on the north side of Cannon Road at Armada Drive, in the negotiations based on its infeasibility as a suitable site for relocation of the service center. Nov. 15, 2022 Item #13 Page 1 of 3 The City Council voted to delay providing direction to staff regarding Lot 11 until a future meeting at which all City Council members participating in this item would be present and available to engage in the City Council discussion on the issue. As noted at the October meeting, all three of the parties involved in the current negotiations have concluded that the Lot 11 site is not a feasible relocation site, primarily because of environmental concerns involving biological resources, cultural resources, and land use compatibility issues, the expected difficulty in obtaining necessary permits, as well as timing and cost concerns. Representatives from SDG&E will present information regarding Lot 11 as part of this report to the City Council. Staff are continuing their negotiation efforts with an emphasis on the options for reconfiguring the current site and are recommending the City Council direct staff to discontinue efforts to include Lot 11 in the negotiations with SDG&E and NRG based on its infeasibility as a suitable site for relocation of the SDG&E service center. Fiscal Analysis No additional funding is being requested. Next Steps Upon receiving City Council direction, staff will discontinue negotiations regarding Lot 11 and continue negotiations with the other parties regarding other alternatives and return to City Council with a status update and for further direction on Dec. 13, 2022. Environmental Evaluation This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment. Public Notification 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. Oct. 11, 2022, City Council staff report, with exhibits (on file in the Office of the City Clerk) Nov. 15, 2022 Item #13 Page 2 of 3 Exhibit 1 Oct. 11, 2022, City Council staff report, with exhibits (on file in the Office of the City Clerk) Nov. 15, 2022 Item #13 Page 3 of 3 Gary Barberio, Deputy City Manager, Community Services Cindie K. McMahon, City Attorney November 15, 2022 Negotiations to Relocate SDG&E Service Center PAST ACTION •City Council received status update on Oct. 11, 2022 •Directed staff to continue discussions regarding reconfiguration of current site and to return on Dec. 13, 2022 with progress report ITEM 13: NORTH COAST SERVICE CENTER NEGOTIATIONS PAST ACTION -LOT 11 •On July 26, 2022, City Council directed staff to emphasize Lot 11 as a possible relocation site •On Oct. 11, 2022, staff provided information regarding infeasibility of using Lot 11 as a relocation site •Staff recommended that the City Council provide direction to discontinue efforts to include Lot 11 in the negotiations ITEM 13: NORTH COAST SERVICE CENTER NEGOTIATIONS PAST ACTION -LOT 11 •City Council voted to delay providing direction regarding Lot 11 until a meeting at which all City Council members participating in this item would be present and available to engage in the City Council discussion on this issue ITEM 13: NORTH COAST SERVICE CENTER NEGOTIATIONS LOT 11 FEASABILITY •All three parties have concluded that Lot 11 is not a feasible relocation site due to: •environmental concerns •Biological resources, •cultural resources, •land use compatibility •difficulty in obtaining necessary permits •timing issues •cost concerns ITEM 13: NORTH COAST SERVICE CENTER NEGOTIATIONS RECONFIGURATION OF CURRENT SITE •Parties continue to discuss various options to reconfigure current site –Relocate North Coast Service Center on SDG&E & NRG property –Free up western portion of SDG&E property that would be transferred to city ITEM 13: NORTH COAST SERVICE CENTER NEGOTIATIONS RECOMMENDATION •Provide direction to discontinue efforts to include Lot 11 in the negotiations •Staff will continue negotiations regarding other alternatives and return to City Council with a status update and for further direction on Dec. 13, 2022 ITEM 13: NORTH COAST SERVICE CENTER NEGOTIATIONS North Coast Construction & Operations Center Lot 11 Update City of Carlsbad City Council Meeting November 15, 2022 Lot 11 2