HomeMy WebLinkAboutReso 2010-029RESOLUTION NO. 2010-029
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA: (A) DIRECTING AND AUTHORIZING THE
CITY MANAGER TO NEGOTIATE AND EXECUTE TWO
OPTION AGREEMENTS: (1) ONE WITH APEX POWER LLC,
TO LEASE CITY PROPERTY TO SITE A STATE OF THE ART
NATURAL GAS FIRED POWER GENERATION FACILITY,
AND (2) ONE WITH APEX POWER GROUP LLC, AND/OR
SDG&E TO LEASE, PURCHASE, OR OBTAIN AN
EASEMENT ON, CITY PROPERTY TO LOCATE A
TRANSMISSION SUBSTATION, TRANSMISSION LINES
AND ASSOCIATED INFRASTRUCTURE TO
INTERCONNECT THE PROPOSED FACILITY; AND (B)
DIRECTING STAFF TO CONDUCT THE NECESSARY
ENVIRONMENTAL REVIEW AND THEN RETURN TO
COUNCIL FOR APPROVAL OF THE FINAL AGREEMENTS
WHEREAS, the City Council has determined that it wants the South Bay Power Plant
removed from the Bay front; and
WHEREAS, pursuant to discussions with the California Independent System Operator,
California Public Utilities Commission, and Energy Commission the City Council directed staff
to identify and pursue commercially feasible site options that would contribute to the final
decommissioning and dismantling of the South Bay Power Plant, and
WHEREAS, Chula Vista is the second largest City in San Diego County by population,
and the fourteenth largest City in the State of California, whose residents and businesses depend
on state of the art natural gas fueled power generation as the cleanest source of commercial
reliable electricity; and
WHEREAS, the City Council further directed staff to focus on locations that are at least
1,000 feet from sensitive receptors and have the potential to complement the City's commitment
to economic and environmental sustainability; and
WHEREAS, staff worked with Chula Vista private property owners, SDG&E and State
energy agencies to identify three private parcels and one City owned parcel that met the basic
conditions identified by the energy regulators and industry; and
WHEREAS, the City Council authorized staff to promote the potential development of
these sites with the California Independent Energy Producers, and directly to more than thirty
energy generation companies that had successfully permitted a facility with the California
Energy Commission (CEC), and built a facility in California within the past four years; and
WHEREAS, in May 2009 the City Council approved draft business terms for a lease of
approximately twenty acres which staff used to solicit interest from the power plant developers
that had successfully permitted a facility with the CEC and begun construction in the past four
years; and
Resolution No. 2010-029
Page 2
WHEREAS, in June 2009, SDG&E extended a Request for Offers to the energy
development industry for 200 megawatts to 400 megawatts of power, and in December 2009
selected Apex Power Group, LLC (Apex), for further negotiations and discussions regazding
their proposal on an energy generation facility of 300Mw to 400Mw on the Chula Vista City
owned pazcel; and
WHEREAS, SDG&E has proposed a project to complement the use of wind and solar
energy resources that complements the City goals and programs to transition to a less fossil fuel
dependent future and the City's Climate Change plan to assist the residential and business
community's implementation of greater energy efficiency, and demand management practices as
well as the adoption of solaz and other forms of distributed renewable energy, over the next
fifteen to twenty yeazs.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it hereby: (A) directs and authorizes the City Manager to negotiate and execute two option
agreements: (1) one with Apex Power LLC, to lease city property to site a state of the art natural
gas fired power generation facility, and (2) one with Apex Power Group LLC, and/or SDG&E to
lease, purchase, or obtain an easement on city property to locate a transmission substation,
transmission lines and associated infrastructure to interconnect the proposed facility; and (B)
directs staff to conduct the necessary environmental review, and then return to the Council for
approval of the final agreements.
Presented by
Director of Conservation & Environrnental
Services
Approved as to form by
Resolution No. 2010-029
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 2nd day of February 2010 by the following vote:
AYES: Councilmembers: Bensoussan, Castaneda, Ramirez, Thompson and
Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
1
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Cheryl Coy May r
ATTEST:
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Donna R. Norris, CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2010-029 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 2nd day of February 2010.
Executed this 2nd day of February 2010.
tip. ~~~~~.:
Donna R. Norris, CMC, City Clerk