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Home My WebLink Aboutcc min 2007/01/18 Board of Port Comm/SDUPD MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CONCURRENT WITH A MEETING OF THE BOARD OF PORT COMMISSIONERS OF THE SAN DIEGO UNIFIED PORT DISTRICT January 18, 2007 4:00 p.m. An adjourned regular meeting of the City Council of the City of Chula Vista, concurrent with a meeting of the San Diego Unified Port District Board of Commissioners, was called to order at 4:06 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Castaneda, McCann, Ramirez, and Mayor Cox Port Commissioners: Rios (Chair), Bixler (Vice Chair), Vilaplana, Cushman, Najera, Valderrama ABSENT: Councilmembers: Rindone (excused) Port Commissioners: Spane (excused) ALSO PRESENT: Interim City Manager Tbomson, City Attorney Moore, Deputy City Clerk Bennett, Port President/CEO Hollingsworth, Port Attorney Bennett, and Port Docket Manager Nicholson. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE PUBLIC COMMENTS There were none. WORKSHOP 1. PRESENTATION REGARDING THE SOUTH BAY POWER PLANT REPLACEMENT PROJECT APPLICATION CURRENTLY BEFORE THE CALIFORNIA ENERGY COMMISSION Tbe purpose of the meeting was to allow the City Council, Port Commissioners, and the public to hear from key entities that have jurisdiction and influence over the potential siting and permitting of the proposed facility. Assistant City Manager Madigan presented an outline of the proposed South Bay Power Plant replacement project. WORKSHOP (Continued) Randa Goniglio, Real Estate Manager, San Diego Unified Port District, presented background on the project replacement plan that included the Port District's acquisition of the South Bay Power Plan; existing agreements between the District and LS Power; the Chula Vista Bayfront Master Plan; Port Board and City Council policy direction; and the Port District as Land Owner/Land Use Jurisdiction. Michael Meacham, Chula Vista Director of Conservation and Environmental Services, spoke about activities City staff has taken on past Council direction and policy on related energy issues that included work with all local stakeholders, state energy agencies, and regional agencies; the focus on energy strategy priorities; and the energy strategy that became public in 2000. Kevin Johnson, Vice President of Development for LS Power, presented the South Bay Power Plant replacement project. Bill Pfanner, Project Manager, California Energy Commission, presented an overview of the Energy Commission's role in the proposed project. Councilmember Ramirez stated that a number of questions have been received from staff and the community on the subject of the power plant, and he requested that the questions be addressed by those agencies present at the meeting. Mayor Cox suggested that questions not addressed during the presentations be addressed towards the end of the meeting. Richard Smith, Director, San Diego County Air Pollution Control District, spoke about the District's role in air pollution control. Gary DeShazo, Director of Regional Transmission North and Acting Director of Regional Transmission South, California Independent System Operator (CAISO), spoke about what CAISO does and its relationship with regard to the transmission and generation within its contro I. Mayor Cox asked whether or not the study investigated the siting of a replacement generation plant at an off-bayfront, off-port property site. Mr. Johnson, representing LS Power, responded that a number of alternative sites were evaluated and rejected for the replacement project, and that the location on the LNG site was the preferred site due to existing components that included utilization of existing infrastructure, no disturbance to other previously disturbed sites, and voltage stability. At 5:57 p.m., Mayor Cox declared a 10-minute recess. The meeting reconvened at 6:18 p.m., with Port Commissioner Vilaplana absent from the dais. He did not return for the remainder of the meeting. Councilmember McCann asked whether SDG&E had committed to purchasing power from the LS Power Plant and the likelihood of purchasing power from the plant, if constructed. James Avery, Senior Vice President, San Diego Gas and Electric (SDG&E), responded that SDG&E had not made any commitments and did not foresee contracting with the applicant. Page 2 - Council Minutes http://www.chulavistaca.gov January 18,2007 WORKSHOP (Continued) Commissioners Najera and Cushman requested that LS Power provide information to the Port on the 27 potential sites that were considered for location of a new power plant. Commissioner Cushman stated that he wanted to do what was right for the City and was hopeful that the City Council could meet at the earliest date possible to discuss what Chula Vista wanted. Mayor Cox directed staff to calendar a date to bring the matter back to the Council for further discussion. Port Chair Rios pointed out that no solution had been reached regarding the Reliability Must Run (RMR) status, and what plans SDG&E has to compensate for removal of the existing plant. She suggested that the City Council address such issues prior to making any decisions. Councilmember Castaneda asked the Council to ask the Port District to stave off any decision on the lease option for 100-180 days, whatever is acceptable to the Port; and volunteered to serve on a subcommittee consisting of a member of the City Council to address questions with respect to the agencies of the state that hold the key and to identifY exactly what SDG&E's long-term resource needs, where those needs could be fulfilled, and if there is a possibility that LS Power could build some generation at the site being negotiated. Commissioner Bixler asked if CAISO, upon evidence that SDG&E does not need this plant, would remove the RMR status of the present South Bay Power Plant. Mr. DeShazo replied that if San Diego procured enough generation inside the San Diego load pocket to meet the location capacity needs that have been identified, and the South Bay unit was not included in that procurement, then they would not renew the RMR contract for that unit. Mr. Avery, representing SDG&E, further addressed some of the questions raised by Port Commissioners Rios and Bixler, explaining that the existing power plant is not a base-load power plant, but a very inefficient peaker plant. He spoke about the Otay Metro power loop proposed to be in service in sununer 2007, which would give SDG&E, from a reliability standpoint, the capability to satisfY the needs of the City for about the next 20 years. He stated that the long-term objective of SDG&E is to eliminate the need of having to pay any kind of subsidies to keep older power plants alive. Councilmember McCann questioned whether a power plant was the highest and best use of the bayfront land, requested further information on alternatives for the power plant site, and expressed the need for policy direction by the Council sooner rather than later. Mayor Cox suggested a meeting with Councilmember Castaneda to discuss who on the Council would be interested in participating with him on a power plant subcommittee. The following individuals addressed the Council/Port with varying viewpoints regarding the South Bay Power Plant: Lisa Cohen, Chula Vista Chamber of Commerce Cindy Gompper Graves, South County EDC Laura Hunter, Environmental Health Coalition Melanie McCuthan, Environmental Health Coalition Georgette Gomez, Environmental Health Coalition Mike McCoy, Imperial Beach resident Page 3 - Council Minutes http://www .chulavistaca.gov January 18,2007 WORKSHOP (Continued) Mayor Cox interrupted public comments in order to offer concluding comments by agency representatives who needed to leave to catch flights. Kevin Johnson of LS Power and Gary DeShazo of CAISO gave concluding comments. Public comments were resumed with the following individuals addressing the Council/Port regarding the South Bay Power Plant: Pati Krebs, Industrial Environmental Association Lupita Jimenez, Green Party of South Bay Jerry Scott Commissioner Rios left the dais as 7:39 p.m., and Commissioner Bixler left the dais at 7:42 p.m., during which time no quorum was present for the Port Commission. Commissioners Rios and Bixler returned to the dais at 7:45 p.m. Councilmember McCann thanked both Port and City staff and agencies present for discussing the various issues. Mayor Cox thanked Port Commissioners and staff for their participation. She stated that remaining questions would be incorporated into a future workshop. Port Chair Rios thanked everyone for their hospitality. Councilmember Ramirez thanked the Port Commissioners for their participation. He also thanked LS Power for bringing the project to the area and said he looked forward to working with them. He stated that the Council would be working hard to ensure the best possible decision for the community. ADJOURNMENT At 7:45 p.m., Mayor Cox adjourned the meeting to the regular meeting of January 23, 2007, at 6:00 p.m. in the Council Chambers. > ------ Lorraine Bennett, CMC, Deputy City Clerk Page 4 . Council Minutes http://www.chulavistaca.gov January 18, 2007