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HomeMy WebLinkAboutAgenda Statement 1987/08/04 Item 17COUNCIL AGENDA STATEMENT • Item 17 Meeting Date 8/4/87 ITEM TITLE: Public Hearing: Considering Coastal Development Permit No. 18 for dismantling of SDG&E's LNG plant and storage tanks RESOLUTION ~,L,~~~,~ Authorizing the issuance of Coastal Development Permit No. 18 SUBMITTED BY: Community Development Directo REVIEWED BY: City Manager ~(~ ~ ~ii (4/5ths Vote: Yes No X ) San Diego Gas and Electric Company has submitted a coastal development permit application for dismantling their currently non-operating South Bay Liquified Natural Gas Plant located South of "L" Street west of Bay Boulevard. Environmental review of the project was conducted and Negative Declaration IS-87-60 was issued. A demolition permit and approval from the Fire Department will be required in addition to coastal development permit approval. RECOMMENDATION: That the City Council conduct a public hearing and consider and adopt the attached resolution and findings therein: • 1. Adopting Negative Declaration IS-87-60; 2. Finding that the proposed project is consistent with the policies of the certified LCP; and 3. Issuing Coastal Development Permit No. 18 as conditioned. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The project involves approximately 6 acres of property currently developed with a San Diego Gas & Electric Company Liquified Natural Gas facility located just south of the South Bay Power Plant. The applicant proposes to dismantle and remove the entire LNG facility which will be accomplished in two phases. The first phase will entail removal of the existing plant which consists of control buildings, gas turbines, various heaters and tanks, compressors etc. (a full listing is on attachment A). SDG&E has a buyer for these facilities. Phase II will consist of the removal of the (2) large LNG storage tanks which are currently empty of substance. This coastal permit will encompass both Phase I and Phase II. • Page 2, Item 17 • Meeting Date 8/4/~ The site is totally developed with LNG plant equipment and storage tanks, foundations, walkways and gravel. There is no vegetation or wildlife present. It is recommended as a condition of approval that the site be cleared of all above and below ground structures including foundations, tanks, etc. The property within the project boundaries is privately owned and is adjacent to San Diego Bay. However, the Bayside portion of the site borders along water evaporation ponds utilized in conjunction with the South Bay Power Plant located to the north and does not provide recreational opportunities. Also, public access to the site has been restricted due to the need for security of the public utility functions. Due to the past storage of potentially flammable and/or toxic liquids and materials, removal of facilities will require Fire Department review and approval. The Fire Department will require a plan for the method of removal of all tanks and removal of residue and/or pockets of product, transport of tanks, and safety precautions to be implemented to accomplish these tasks. Fire Department approval will be required as a condition of this coastal development permit. Review of the dismantling by APCD and EPA will also be required. This permit is conditioned upon approval by those two agencies and submittal of their • findings and or permits to the Fire Department for review. In addition, to avoid delay of sale and removal of the plant facility described in Phase I of this project, as a condition of approval, the applicant is required to submit a plan and schedule for Phase II and enter into an agreement with the City to dismantle the LNG storage tanks. SDG&E does not propose any replacement use for the property at this time. Therefore, review is limited to removal of existing facilities. Conditions of Approval The following conditions of approval are recommended to ensure consistency with the certified LCP. 1. A plan for removing remaining residue and/or small pockets of products from all tanks to be removed must be reviewed and approved by the Fire Dept. Also, the method of dismantling tanks, safety precautions to be taken, and method of transporting the tanks or portions of tanks must be approved by the City Fire Department. 2. A demolition permit from the Building & Housing Department will be required for removal of all tanks, facilities, and foundations. 3. If after dismantling of plant elements the loads to be transported • across/ upon City streets exceed the limits in size or weight allowed, the movers must obtain transportation permits from the Engineering Department. ___ `'~ Page 3, Item 17 • Meeting Date~47$~ 4. A plan for the removal and disposal of hazardous waste found to be present on the project site must be submitted to the City Fire Department for approval. All information submitted to and received from EPA regarding on-site hazardous waste must be submitted to the Fire Department for review. 5. The site shall be cleared, not only of plant and tank facilities, but shall be cleared of all foundations and related appurtenances. A plan to fillin pits, excavations and depressions created by removal of facilities shall be submitted to the City. 6. The applicant is required to submit for City Council approval a plan and schedule for the disrnantling of the LNG storage tanks. In addition, the applicant is required to enter into an agreement with the City of Chula Vista for the implementation of said plan and schedule. 7. The above stated requirements Nos. 1-6 shall be completed in full prior to approval and issuance of this Coastal Development Permit. For the purposes of this coastal development permit, final approval of this permit will be considered the date that the last City permit is signed by the approving authority. • Findings Based on the following findings, the proposed project has been found to be consistent with the policies of the certified Local Coastal Program. 1. The project site is currently devoid of wildlife or vegetation, therefore the proposed activity will not impact any sensitive habitat. A plan for the removal of any potentially flammable and/or toxic materials and their transport will be reviewed and approved by the City Fire Department, APCD, and EPA. This process will ensure that no impact on adjacent bay waters will occur. 2. The proposal entails removal only of existing facilities and no replacement development is anticipated at this time. Therefore, no increase in traffic or demand on water related recreational uses will result from the project. 3. The applicant proposes to dismantle a currently non-operating facility which is devoid of any landscaping or natural vegetation. Removal of this bay side industrial activity will reduce visual impacts due to the existing industrial facility. 4. The project site is privately owned and adjacent to a major public utility operation, both of which have the need for restricted • access. Bay waters adjacent to the property are currently in use as evaporation ponds for the power plant located to the north and do not afford the opportunity for public access or recreational use of bay waters. 1--~ \ ~' • Page 4, Item 17 Meeting Date-$7~/'$T FISCAL IMPACT: Currently, the applicant a s a annually in taxes for the subject 6 acres of pim rovedproximately $212,000 realizes approximately $38,160 (18~), p property. The City 1986-87 Tax on Land = $ 31,933 1986-87 Improvements = ~211~47.14 ($76,029 tanks & $135,442 other) 1986-87 Total Tax City Portion = 18% approx. $ 4-~2 If the existing facility is removed, property tax would be about $31,000 per year (land tax only). The City then would realize about .5,580 annually, versus $43,812 from the improved property value. (These figures are based on 1986-87 assessment. Utilities are reassessed annually, however, by the State Board of Equalization.) WPC 3013H • ~~si N~ ~j. the Cite Co:~~,,ci, of C,~uia Visia CNiifornia Dat~ci •