HomeMy WebLinkAboutcc min 2001/04/17 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL
OF THE CITY OF CHULA VISTA
April 17, 2001 4:00 P.M.
Mayor Horton called to order an Adjourned Regular Meeting of the City Council of the City of
Chula Vista at 4:09 p.m. in the Council Chambers, located in the Public Services Building, 276
Fourth Avenue, Chula Vista, California.
ROLL CALL:
PRESENT: Councilmembers: Davis, Padilla, Rindone, Salas, and Mayor Horton
(Councilmember Rindone arrived at 5:25 p.m.)
ABSENT: Councilmembers: None
ALSO PRESENT: City Manager Rowlands, City Attorney Kaheny, and Deputy City
Clerk Norris
1. REPORT ON ASSESSMENT OF ENERGY MANAGEMENT OPTIONS FOR THE
CITY OF CHULA VISTA
In light of the state energy crisis, the City secured the services of MRW & Associates to
provide an assessment of energy management options that may allow the City to gain a
measure of control over its demand and supply of energy, as well as the financial costs of
the City's energy use. The report contained a portfolio of near- and long-term options
and staffs recommended actions. It was recommended that the Council accept the report
and direct staff to bring back energy strategy implementing resolutions for Council
consideration.
Assistant Director of Community Development Haynes provided an introduction on the present
energy crisis, explaining that the City's efforts to execute direct purchase agreements with
energy service providers was thwarted by unaffordable and unacceptable market prices and then
eliminated by the passage of AB1X, which prevented direct purchases from occurring. He then
made the following recommendations for Council consideration:
1. Authorize staff to negotiate energy purchases from an energy service provider or
power generator if the law changes.
2. Authorize staff to pursue the idea of the City becoming a municipal utility.
3. Present alternative energy projects and an emergency summer action plan for City
facilities, aggressively pursue distributed generation projects, and pursue
negotiations with Duke Energy.
ENERGY MANAGEMENT OPTIONS (Continued) -'
Steve McClary, representing MRW and Associates, presented an overview of the energy crisis
and discussed the following recommended options:
Pursue energy conservation projects for City facilities.
Continue, expand and promote conservation and renewable energy programs.
Continue/expand efforts to implement the Carbon Dioxide (Co2) Reduction Plan
and Greenstar Building Incentive Program.
Monitor energy market and legal restrictions, and be prepared to enter into an
electrical services contract with an energy services provider (an unregulated entity
that sells electricity/other services) or power generator (bilaterial contract).
Mark Cedall, representing Duke Energy, spoke regarding the proposed modernization of the
South Bay power plant and the intent to move the plant from roughly 700 megawatts to 1,000
megawatts, which would utilize less fuel and water at the site.
Buzz Schott, representing San Diego Gas and Electric, spoke in support of municipalization and
efforts by SDG&E to obtain the cheapest power possible, whether through aggregation or federal
power. Mr. Schott stated that SDG&E would be looking at options to eliminate or minimize
rolling blackouts during the upcoming summer months.
Councilmember Rindone questioned the frequency of rolling blackouts and asked whether public
schools would be exempted. Mr. Schott responded that schools had not been considered for '
exemption. Mr. Rindone requested that schools be included for exemption as part of the public
safety considerations and that Council be updated on the progress.
Special Operations Manager Meacham illustrated how the City had reduced its energy
consumption by approximately 24 percent in City facilities. He discussed the following energy-
saving components:
Changing traffic signals from green standard energy to LED light sources.
Savings by design; design changes of approximately $141,000 in kilowatt hours
reduction and $8,400 in incentives; cool roof program for the new Corporation Yard with
the intention of yielding lower energy requirements for cooling systems.
Implementation of the City's first solar panel at the Corporation Yard.
Suggestions for a 9/80 work schedule and strengthening City policies regarding turning
off computers and related hardware to address summer energy concerns.
Promoting citizen awareness and participation.
Councilmember Salas suggested collaboration with the San Diego Regional Energy Office to
provide resources to citizens for energy conservation and incentives, and partnering with the
City's Planning and Building Department for simple permitting processes for residents.
Planning and Building Director Leiter spoke regarding the City's continued efforts to implement
the Carbon Dioxide Reduction Plan (CO2), and Greenstar Building Incentive Program to
minimize energy impacts on new developments and promote energy efficient building practices
in all new developments.
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ENERGY MANAGEMENT OPTIONS (Continued)
Assistant City Attorney Googins spoke regarding electricity procurement options and stated that
the City should prepare to enter into an electrical services contract with an energy services
provider or power generator. He discussed the benefits of locking into long-term agreements to
help eliminate volatile price fluctuations, and also discussed the option of electrical service
provider contracts. He stated that the City's attempts to obtain a beneficial long-term contract
from an energy service provider have been very challenging due to the market's volatility and
the recent passage of AB 1X.
City staff requested that Council approve an expenditure of up to $50,000 for consultant fees to
evaluate the feasibility of forming a municipal utility district.
Buzz Schott, representing SDG&E, stated that he did not support the City taking over the
distribution system. Staff responded that a partnership with SDG&E, rather than a takeover, was
being suggested.
Councilmember Padilla cautioned against the temptation to feel pressured to do something just
for the sake of doing something and suggested a further exploration of options. He also
cautioned against expending funds frivolously or too prematurely.
Deputy Mayor Davis spoke in support of staff recommendations to explore the possibility of
forming a municipal utility district.
Mayor Horton requested more time to review and absorb the information presented.
ACTION: Mayor Horton moved to place the item on the agenda for the Council Meeting of
April 24, 2001, for further study and evaluation. Councilmember Padilla
seconded the motion, and it carried 5-0.
COUNCIL COMMENTS
Councilmember Salas addressed the proposal brought forward by Virgil Pina, Human Relations
Commissioner, for a community rights enhancement plan. Ms. Salas believed that the concerns
addressed by Mr. Pina had already been implemented by the City and stated that records would
show that the City has done a good job in recruiting and hiring a work force that includes
minorities.
ACTION: Councilmember Salas asked staff to report back to Council in approximately four
weeks on what is being done to address Mr. Pina's requests and to provide an
explanation of the legal constraints that may impact these areas.
ORAL COMMUNICATIONS
There were none.
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ADJOURNMENT
At 7:16 p.m., Mayor Horton adjottmed the meeting to the Regular Meeting of April 24, 2001 at
6:00 p.m. in the Council Chambers.
Respectfully submitted
~~tt~ City Clerk
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