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HomeMy WebLinkAbout2024-03-26; City Council; Resolution 2024-056RESOLUTION NO. 2024-056 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, EXTENDING THE DEADLINE FOR TERMINATING NEGOTIATIONS TO RELOCATE SDG&E'S NORTH COAST SERVICE CENTER BEYOND THE CITY COUNCIL ESTABLISHED MARCH 31, 2024 DEADLINE BY FOUR MONTHS, TO JULY 31, 2024, AND DIRECTING STAFF TO CONTINUE NEGOTIATIONS WITH SDG&E AND NRG ON THE SEASIDE OPTION AND TO RETURN TO THE CITY COUNCIL BY JULY 31, 2024, OR SOONER, WITH AN AGREEMENT FOR THE CITY COUNCIL'S CONSIDERATION 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, the Carlsbad Municipal Water District (CMWD), Cabrillo Power I LLC and Carlsbad Energy Center LLC (collectively, 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 relocation and reconstruction of a new service center [5.41, the city would take title to certain properties totaling approximately 24.5 acres [5.7] and the 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)]; and WHEREAS, negotiators for the city, SDG&E and NRG have met regularly to work on a identifying an appropriate relocation site for NSCS; and WHEREAS, staff provided updates and sought direction from the City Council regarding these negotiations at City Council meetings on April 20, 2021, May 23, 2022, July 26, 2022, Oct. 11, 2022, Nov. 15, 2022, March 7, 2023, and Dec. 12, 2023; and WHEREAS, the parties have considered numerous options for relocation of NSCS and transfer of property to the city; and WHEREAS, on Aug. 31, 2023, NRG proposed an option to reconfigure the existing service center site, transfer to the city approximately 5-6 acres of the current site in addition to other anticipated property transfers ("Seaside Option"); and WHEREAS, at the Dec. 12, 2023, City Council meeting, staff presented the current status of the negotiations and City Council directed staff to continue negotiations with SDG&E and NRG on the Seaside Option and to return to the City Council by March 31, 2024, or sooner, with an agreement for the City Council's consideration; and WHEREAS, the parties have met regularly, exchanged multiple drafts of an agreement detailing the terms of the agreement but still have outstanding issues to resolve; and WHEREAS, city staff anticipate that it will take an additional four months to complete a draft agreement for presentation to the City Council. 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. The City Council authorizes staff to continue to work with SDG&E and NRG on the Seaside Option. 3. That the deadline to prepare a draft agreement for presentation to City Council is extended from March 31, 2024, to July 31, 2024. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 26th day of March, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. ~ KEITH BLACKBURN, Mayor SHQ&ISINt City Clerk (SEAL)