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)