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Home My WebLink About2013/12/17 Item 15 D:c. 17. 20 i 3 11 : 09AM No. 0265 P. 1 /'rd-�'�`�7Dl�a� -�'h forn-�e.fi nn �� l5 w.�.0 s„��, SDGE�onnected DEC 17 2013 5e°'°��'m�; 8330 Crntury Mrk Cc � Ssn Diego.G 92123-1530 Td:859.650fi1�1 {1,�Sem raErier �ui�i�i � Fsx:619.650.6106 ,�� p �y Y WllSmith@xmpreutil(eiescom December 17,2013 VIA FACSIMILE AND FiECTRONIC MAIL I3onorable Mayor Cox and Councilmembers Ciry of Chula Vista 276 Fourth Avenue Chula Vista,CA 91910 RE: DECEMBER 17,2013 CT1Y COUNCIT.MEETING AGENDA ITEM 15(STANS UPDATE AlVD OPPORTCJNTIY FOR CITY COLTNCTL DIRECTTON ON SOUTH BAY SUBSTATION RELOCATION PROJECT) Dear Mayor Cox and Councilmelnbeis: San Diego Gas 62 Flectric Company(SDGf�E)has learned chat the City of Chula Vista City Council will hold yec another public mee[ing this evening to consider the South Bay Substation _ Project(Project). The published agenda indicates that the purpose of the meeting is to ptovide a "Stams Update on the Sou�h Bay Substation and Opportunity foL City Council to Provide Direerion r.o S�aff on Fvcute Accions Before the Coastal Commission and/or the CPUC" We aze writing to strongy caution the Council a�ptoviding any direccion co sraff that will lead co fuith�undue delays of the Project. Sl�ch delays include futther revie�v by the Ciry,Coastal Commis�ion,and CPUC of any changes to the appioved substation design (including undergrounding the 230kV loop-in)as ordered by che CPUC in Decision 13-10-025 issued on Oetobet 17,2013 grantiag SDG&E a Permi[to Construct. Reconsiderarion of the subs�arion design at this late s�age�vill result in delays that are disecdy advuse to SDGEuE and the City's stated goal of reloearing�he subscation. We urge che Council instead to direet staff to advocate for expedicious review and approval of the Proiect,includine before the Coastal Commission and any other a¢encv with jurisdicrion over the Proiect. As the City is well awate,the Project still requires approval by a number of agencies,including the Coastal Commission. In light of Inland Industries'unrelencing efforts to deraiJ the substar.ion relocacion by crearing delays,the CPUGapproved substation design requires the City's affirmative and Iuncc�uivocal support. 283798v1 D:c. i1. 20i3 i1 :09AM No. 0265 ?. 2 Honorable Mayor and Councilmembers City of Chula Vista December 17,2013 Page 2 As you lmow,on pctobu 17,2013,the CPUC unanimously approved SDG&E's Permit to Consa uct the South Bay Substation. The Pernu��o Construct appmved by the CPUC authorizes SDG6zE[o teloca[e the subscation consistent with the Chula Vista Bayfront Master Plan-e�en after Inland Industties and CPUC staff contested�vherher the substarion should be relocated. Notably, �he Permit to Construct also includes extensive underg�ounding of existing and proposed electric facilities-including facilities which are contemplated under the 2004 MOU to be paid out of the Ci�s 20A funds. The CPUCs decision�o allow SDG6:E�o relocate the subs�aaon did not come easily and should noc be taken for granted. As you and yout staff aie cvell aware, the CPUCs exCensive analysis otiginally supported not relocating the substation,and Projut costs were a s oQnifican�focus duzing the proceedings. To have overcome • these objections and secured CPUC approval of substadon relocazion and appro�nately S23 million of associated unde2grounding is remarkable. Despite having attained these communiry-�vide benefits,members of the Ciry Council appear to be swayed by one properry ownet,Inland Industries,and i[s cepresentatives,who are urging the Ciry to advocace foc"more underYrounding"to be paid for by ratepayers and"morc�imc'to considei additional changes to che substarion design cha�Tnland Indus[ries dauns would locver�he substauon pro5le and/oc accomplish more undergrounding. The alternarives advoca�ed by Inland Industries�vere manufaccured lace in the CPUC proeeedings,are not supporced by any credible evidence oi detailed engineering evaluaaon and�vete previously rejected by�he CPUC. The�e al�ernaaves,which indude an exte�ive redesign of che substation depiaed in a conceptual sunuladon circulated by Inland Tndustries,cannoe be constructed without a detailed eno neering evaluadon and CPUC approval. In considering whether�o appro�-e any change to the design of the Project,�he CPUC�vould likely reexamine ehe coscs to ratepayers,induding the cascs associated.virh�he subsracion reloearion and any undexgrounding included in rhe Project,and compare these costs to the alternarives,including rebuilding the substaaon at rhe exisAna location. Neither SDG£�P nor�he Ciry would be able to control the scope,timing,or outcome of additional proceedings at CPUC. Meanwhile, the land exchange agteements ne�otiated by SDG�E c�vith the State Lands Commission and Port District that enable the substarion to be relocated will expire by their o�vn terms in�015. Fxtension of the land e.xchange agreemenrs requues approval by the California Scate Lands Commission and Port . Disctiet and would almosc ceL�ainly be challenged by Inland Indus�ries,who previously filed a lawsui��o undo the land exchange agreemenrs. Fot all of these reasons,the changes to the Project advocaced by Inland Tndustdes are not feasible from a technological,environmental,soeial,legal,economic or cirning perspeetive. Any acdon by the Ciry in support of Inland's posidon�vill ma�erially delay the Project and is adverse 283798v1 ' Dzc. 11. 2013 11 : 09AM No. 0265 P. 3 Honorable Mayor and Councilmembers Ciry of Chu(a Vista December 17,2013 Page 3 to SDG6zE and the Project,as well as the City's own desire to relocate the substaaon consis[ent with the Chula Vista Bayfron�Master Plan. SDGEttE u conceined[hac the Project has already enduced numerous delays,including delays caused by[he Ciry,which could comptomise SDG6YE's abiliry to successfuAy relocate the � substaaon and deliver.the communiry-wide beneftts contemplated in the MOU. In addition to the drlays requested eacpzessly by rhe Ciry(e.g.,postponement of the CPUCs vote to approve the Petmit to Constn�ct),several delays have accrued due to the City stacing or indicating�ha�it has"concerns"about the project,for example by cvithholding its consen�to the Coastal Commission's consolidated review of[he coastal developmen[permit,or by scheduling public meeeings whece the City Council may"change its miud"abou�the Project. Coastal Commission considera�ion of the Projeec,previously andcipated in January 2014,has been postponec�in part to allow Coastal Cota�*!iccion scaff to unders�and the Ciry's position on the Projecc These acaons have placed a great strain on the"cooperarive relaaonship between the City and SDGE�E"required by the MOU. Coupled tivith the controversy generated by Inland,the City's "concerns"and delays pose a signfficant threat to the Project. SDGSiE has repeatedly recalibrated its expectacions and Project scheclule,but tame is running out. SDGf�E strongly urges the City to consider the implications of its acrions at today's Ciry Council meeting and no� Lo rake any further acdon that tvould be adverse to the Project. _ Fot all of these reasons,SDG�E urges the Ciry to ignore�he false claims of a project opponent, remain focused on the mutual goal of relocaring the subscadon,and preserve the favorahle CPUC approval of[he Projec[. SDG&tiE ur�es the Council to reject anv further chanees to che design of the substation and to direct staff to advocace for expeditious approval of the Project before Coascal Commission and all other a�encies with jurisdiction over che Project. Sincerely, � � W.Davis Smi�h,Genual Counsel San Diego Gas b:Elecaic Company 263796v1 ��G�l�(D!-1<c.Q ,�j}�'Drl7xC�/A� Sheree Kansas .=�yy� /$ From: Donna Norris Sent: Tuesday, December 17, 2013 1:14 PM 70: Sheree Kansas; Kerry Bigelow Subjed: FW: December 17, 2013 agenda item 15 - substation relocation Please print/distribute to each councilmembers & place in binder as additional info. Donna Norris, CMC City Clerk City of Chula Vista 619-691-5041 Connect with us! � Sign up for our monthly Community Connection newsletter! -----Original Message----- From: Allison Rolfe fmailto:allison.rolfeC�me.comt Sent: Tuesday, December 17, 2013 12:56 PM To: Donna Norris; Cheryl Cox; Pamela Bensoussan; pa�uilar@chulavista.ca.�ov; rramirezCdchulavista.ca.�ov; msalas@chulavista.ca.�ov Cc: 6ary Halbert; Carey Algaze; Sergio Sandoval;Ash Israni;John S. Moot;John S. Moot; Laura Hunter Subject: December 17, 2013 agenda item 15 - substation relocation Re: Agenda Item 15 - Substation Relocation Dear Honorable Mayor Cox and members of the City Council, Although we will not be able to attend today's City Council meeting, Ash and I wanted to let you know on behalf of Pacifica Companies that we feel the relocation of the substation is a top priority for the success of our Chula Vista bayfront development. To the extent that it helps inform your discussion, our tentative timeline for construction is: submittal of Design Review/Tentative Map/CDP application in early 2014, groundbreaking on phase 1 of our infrastructure in 2015, and groundbreaking on the first residential increment(at the southwest corner of 1 St. and Marina Parkway) of our project later that same year. Thank you for considering our project timeline and our interests in your decision. We urge you to prioritize the timely relocation of the substation. Thank you for your thoughtful consideration. Please do not hesitate to reach me on my cell phone with questions or concerns. I can be reached at: 619-851-1297. Thank you very much. Allison Rolfe Director of Planning Pacifica Companies Sent from my iPad 1