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HomeMy WebLinkAbout2001-01-22 (7)Special Meeting Minutes City Council -Redevelopment Agency City Of Huntington Beach 5:00 P.M. - Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 Monday, January 22, 2001 A videotape of the 5:00 p.m. portion of this meeting is on file in the Office of the City Clerk. Call to Order Mayor Julien Houchen called the special meetings of the City Council and Redevelopment Agency of the City of Huntington Beach to order at 5:00 p.m. in the Council Chambers. Call City Council -Redevelopment Agency Roll Call Present. Green, Boardman, Cook, Julien Houchen, Dettloff, Bauer (Garofalo arrived 5:15 p.m.) Absent: None City Clerk Read Call for Special Meeting Mayor Julien Houchen briefly announced the reason for calling the Special Meeting and provided background information on the proposed re -tooling of Units 3 and 4 of AES Huntington Beach (formerly Southern California Edison) power plant located at Newland Street and Pacific Coast Highway. Public Comments (Restricted to Agenda Item Only) George Mason spoke in opposition to the likelihood of allowing the AES power plant to be put on the "fast track" to expand its facility. He spoke regarding the need for AES Huntington Beach to keep the city apprised of its construction so that the city can retain code inspection, review and oversight of any AES expansion. Mr. Mason stated AES should pay the utility tax to the city that it recently objected to paying, and agree to control noxious emissions from its plant. Bevan Unrau, Pastor for Seabreeze Community Church, requested that the 600 to 700 members of Seabreeze Church continue to be able to meet at the Central Library through this energy crisis if possible. (City Council) Communications Distributed by Staff During Special Meeting Session The staff distributed the following communications which pertain to this special meeting item: (1) Memorandum dated January 19, 2001 to City Council from City Administrator re: AES Legislation (Assembly BIII -- Assemblyman Wright (D)); (2) Press release received from the Office of the Governor titled For Immediate Release — Proclamation by the Governor of the State of California; (2) January 22, 2001 —Council/Agency Minutes - Page 2 (3) Memorandum dated January 22, 2001 from the City Administrator titled Report on City Electrical Energy Emergency, (4) A portion of documentation regarding "interruptible service" approved by Council in May of 1996; (5) Proposed City of Huntington Beach Resolution No. 2001-2; (6) Proposed letter to Assemblyman Tom Harman from Mayor re city's concerns on Item #2; and (7) Huntington Beach Municipal Code Chapter 8.60. (City Council) Received City Response to Statewide Electrical Energy Crisis Re: Assembly Bill XX (Wright - (D)) to Permit Commencement of AES Huntington Beach Power Plant (Located at Newland Street and Pacific Coast Highway) Prior to Completion of California Energy Commission Certification Process -Adopted Resolution No. 2001-2 Declaring Local Emergency - Approved Working in Conjunction with the California League of Cities and State Agencies to Seek Legislative and Regulatory Relief from the Public Utilities Commission - Southern California Edison Terms and Conditions of the "Interruptible" 1-6 Electrical Rates — Approved Communicating to State Assemblyman Tom Harman the City's Opposition to Assembly Bill XX and (Stipulations Re: AES Expansion if AB XX is Approved) (510.20) The City Council considered the city response to the statewide energy crisis including taking actions in response to escalating energy prices such as closing some city buildings or relocating operations. The following reports by city staff were made: City Administrator Silver informed Council of several of the other local businesses in addition to the city who are also subject to and impacted by the "interruptible (stop service) rate" clause in their respective contracts with the electric company. These businesses include the Boeing industry and Golden West College. City Administrator Silver stated that city staff met over the past weekend to develop a plan which includes Council adoption of a resolution declaring an emergency. Assistant City Administrator William Workman reported on the 1996 State legislation on deregulation of the electric industry which he stated is on the wholesale side. Mr. Workman provided background information in relation to the Orange County bankruptcy. He informed Council that the rationale for the city's "interruptible rate incentive" contract is that it allowed for the reduced cost of electricity, but that there are penalties involved in failing to shut down. Mr. Workman stated that the fee would then increase from six cents to greater than $9.00 per kilowatt. Assistant City Administrator Workman referred to a communication dated January 22, 2001 received from the City Administrator and titled Report on City Electrical Energy Emergency. He quoted estimated costs and described the city's installation of energy saving devices. Mr. Workman informed Council that three buildings - the Civic Center, Police Department, and the Central Library are the facilities impacted by the interruptible incentive rate. He stated that during the last three to four months, the City has been interrupted 'I 1 times, and may be interrupted up to 25. Mr. Workman also spoke regarding how the city was able to avert "rolling blackouts." In response to City Administrator Silver's request, he described Stage II and III alerts during which time stoppages are allowed to occur. Mr. Workman stated that the city is looking at purchasing and installing energy generators to provide up to 60-80% of normal functioning capacity. He (3) January 22, 2001 —Council/Agency Minutes - Page 3 stressed that the public safety organizations, the Police and Fire Departments are placed on the highest priority and will not be required to shut down during the announcement of an electrical crisis. Mr. Workman informed Council that he is going to consult with employee associations relative to different work schedules, and alternate work sites, such as telecommuting at home. Councilmember Dettloff referred to numbers 2, 3, and 5 under Recommendations on page two of the communication titled Report on City Electrical Energy Emergency on which Assistant City Administrator Workman reported. Councilmember Dettloff stated that since the proposed recommended actions are interrelated, she inquired as to the city's plan of action in regards to the Public Utilities Commission (PUC) and Southern California Edison (SCE). Assistant City Administrator Workman responded that the city plans to use legislative advocates in Sacramento, and has discussed the legalities of being relieved of the contract with State Assemblyman and former City Councilmember Tom Harman. Mr. Workman outlined the terms of the agreement, including the fact that the city's contract has been extended by the utility company to March 2001. Considerable discussion ensued relative to the possibility of filing a suit, after which it was decided to work with the League of California Cities and other cities and businesses to convey a joint message to the PUC before considering litigation. Councilmember Boardman referred to first recommendation enumerated on page two of the aforementioned communication titled Report on City Electrical Energy Emergency. Councilmember Boardman inquired how the adoption of a city resolution declaring a local emergency empowers the city, since the Governor had already proclaimed a state of emergency since January 16, 2001. Assistant City Attorney Scott Field responded by citing Section 8.60.070(f) of a Chapter of the Huntington Beach Municipal Code, distributed earlier at this meeting. Assistant City Attorney Field informed Council that he spoke to Fire Chief/information Systems Director Michael Dolder regarding the possibility of recovering funds to be used to purchase generators from the Federal Emergency Management Agency (FEMA). In relation to this, Councilmember Bauer fumished a brief history of the League of California Cities regarding the reimbursement process. Public Works Director Robert F. Beardsley responded to Councilmember Bauer's inquiry regarding the cost-effectiveness of installing a generator. Acting Administrative Services Director Clay Martin reported on the estimated charges, rates and total number of interruptible events. Mayor Pro Tem Cook suggested that the city consider the creation of a municipal electrical district. She inquired if the city knew the rate during the interruptible period at the time the contract was signed. Maintenance Operation Manager Donald Noble answered in the affirmative. Mayor Pro Tern Cook requested everyone to conserve every kilowatt. Director of Communications and Special Projects Rich Barnard updated Council on his Public Information Office's programming activities, which include 1) airing an HBTV-3 broadcast with Glorria Morrison of Emergency Services in the Fire Department; 2) recording an Into Line message on 714-374-4800; and 3) issuing several press releases. (4) January 22, 2001—CouncillAgency Minutes - Page 4 Councilmember Dettloff inquired as to operating costs of the generator for the Civic Center building, to which Public Works Director Beardsley responded that they are associated with changeover and maintenance. He described the switch gear process, stating that it should happen immediately. Councilmember Garofalo reiterated Mayor Pro Tern Cook's comments regarding the conservation of energy. A motion was made by Green, second Dettloff to 1. Adopt Resolution No. 2001-2 — `A Resolution of the City Council of the City of Huntington Beach Declaring the Existence of a Local Emergency in the City of Huntington Beach" due to the effects of the State shortage of electrical power; and 2. Direct staff to pursue legislative and regulatory relief from the Public Utilities Commission (PUC) and Southern California Edison (SCE) terms and conditions of the "interruptible" 1-6 electrical rates; and 3. Authorize the City Attorney to pursue legal relief from the PUC and SCE terms and conditions of the "interruptible" 1-6 electrical rates; and 4. Authorize the City Administrator to take necessary operational and facility management actions to minimize the City's electrical costs during this local emergency; and 5. Authorize the City Administrator to work with other cities, businesses and the League of California Cities to pursue legal relief from the PUC and SCE terms and conditions of the "interruptible" 1-6 electrical rates. The motion carried by the following roll call vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None Discussion at length followed relative to the City response to Assembly Bill XX - Wright (D), which would permit commencement of construction of the AES power plant expansion prior to the completion of the California Energy Commission certification process. Assistant City Administrator Workman presented an oral report. Referring to Assembly Bill XX, he described the fast pace at which the Assembly Bill was put forward, stating that it is not yet numbered. Mr. Workman spoke about the bill in relation to the city's water quality issue and the threat of a reoccurence of the Summer of 1999 beach advisories if Assembly Bill XX is enacted. Mr. Workman referred to two communications distributed at this evening's meeting: one, from the City Administrator to the City Council dated January 19, 2001 and titled AES legislation - AB XX Wright (D) proposed by Assemblyman Wright; and two, the press release from Governor Gray Davis proclaiming a State of Emergency to exist within the State of California. Assistant City Administrator Workman clarified that in response to the declared state of emergency, it is the intent of Governor Gray Davis to enter into contracts with public and private entities to purchase electric power. Mr. Workman provided an update that the California Energy Commission has received AES Huntington Beach's application to re -tool Units 3 and 4. Mr. Workman stated the proposed legislation - Assembly Bill XX - will accelerate the construction of the proposed AES expansion of two additional power plants at Newland Street and Pacific Coast Highway. Planning Director Howard Zelefsky informed Council that the Planning Commission approved the addition of Units 3 and 4, and that Councilmember Bauer had filed an appeal to said approval. (5) January 22, 2001 —Council/Agency Minutes - Page 5 Fire Chief Dolder stated that he had posed a question to AES regarding the safety of retooling. The Fire Chief spoke of the city's review, and the need for review by federal and other regulatory agencies as well as the need to obtain a non -toxic type of catalytic converter that converts urea to ammonia, and which is available. Public Works Director Beardsley stated that he required AES to install SCRs (scrubbers used to control air pollution) on Units 3 and 4. Real Estate Division Manager Matthew Lamb responded to questions regarding retrofitting. Mr. Lamb clarified a section of the City Administrator's communication that cites an amendment to Public Resources Code §25500. Mr. Lamb stated that it modifies the Health and Safety Code and enables the construction process to be moved forward from six to two months' time. City Administrator Silver informed Council of having met with AES Huntington Beach's President, Ed Blackford in an effort to communicate the city's concerns. Assistant City Attorney Scott Field reported that the provisions of the Assembly Bill will allow AES to begin construction prior to completion of the California Energy Commission certification process. Councilmember Dettloff expressed concern that if AES is allowed to expand its units, the Building Department will not be able to have a role in the permitting process. Planning Director Zelefsky stated that he was not hopeful that said amendment to the Public Resources Code proposed by the. Assembly Bill will help the city. Councilmember Boardman spoke in opposition to the Assembly Bill for health and safety reasons, and questioned the new language inserted in the Public Resources Code §25500. She expressed doubt that once the additional units are built that they will not go online; that there is no guarantee in place to prevent them from becoming operational. Councilmember Boardman asked if AES can be required to address concerns relative to the California Environmental Quality Act (CEQA). Councilmember Bauer inquired about additional mitigation to reduce the noxious effluence that will be "spewed into the atmosphere." He stated that part of the methodology should include concern with urbanized areas surrounding the AES power plant; making sure safety measures are in place. Fire Chief Dolder responded to Councilmember Bauer's concerns, speaking of the need for the containment of plumes to be included in the methodology. Mayor Pro Tern Cook spoke in reference to AES Huntington Beach's alleged reputation for heavy fines that AES has been forced to pay relative to pollution that the plant has caused. Mayor Pro Tern Cook stated her opposition to the Assembly Bill for the reason that it gives preferential treatment to one power plant by allowing it to be put on the "fast track" to expand its facility. Mayor Julien Houchen invited Ed Blackford, President of AES Huntington Beach to speak. Mr. Blackford stated that his purpose for coming to this Council meeting is to clarify what Assembly Bill XX - Wright (D) is and is not: Mr. Blackford concurred with Mayor Pro Tern Cook that the proposed legislation is solely for the Huntington Beach plant, which he stated will help Huntington Beach and the State of California. He informed Council that the idea behind the (6) January 22, 2001 —Council/Agency Minutes - Page fi Assembly Bill is to have concurrent construction and evaluation of the procedure, remarking that he wants to assure Council that AES will not circumvent the process by turning on one megawatt of power before the city is ready. Mayor Pro Tern Cook pointed out the unique asset of the city beach, and posed questions regarding the figures Mr. Blackford quoted for the projected shortfall during the summer months. Mr. Blackford answered Councilmember Boardman in the affirmative that AES Huntington Beach is jointly involved with the Orange County Sanitation District in plans to conduct further testing this spring relative to last year's beach advisories. He apologized that AES had been remiss in disseminating this information to the public. Councilmember Garofalo, in response to the concern expressed by Councilmember Boardman that the effluence leaving the plant and flowing to the ocean could double due to expansion, suggested that language be included in the Assembly Bill. Councilmember Garofalo proposed that the staff recommend "that any legislation shall not pre-empt local laws or the California Environmental Quality Act (CEQA)." Mr. Blackford stated that AES will be amenable to meeting any mitigation concerns, but that AES needs to see the draft language. Councilmember Dettloff addressed Council's ongoing concerns regarding landscaping and other needed upgrades on Newland Street and the surrounding area. Councilmember Green inquired as to how many gallons of warm water are discharged into the Pacific Ocean and if this could be doubled if Units 3 and 4 were to go online, to which Mr. Blackford responded that the 88,000 gallons per minute discharge during the summer could be doubled. Council discussed the review that could be made by the California Coastal Commission to submit to the Federal Energy Commission. Councilmember Boardman informed Council that because AES has been deficient in so many areas, she cannot support granting permission to AES to commence re -tooling prior to certification by the California Energy Commission. City Administrator Silver was requested to communicate regarding City Council's position that 1) the Assembly Bill comply with environmental laws and 2) that the City Council does not want concurrent construction. . In response to Councilmember Bauer's inquiry relative to Council's motion at the meeting of December 18, 2000 in connection with this item, City Administrator Silver suggested that copies of said approved recommended action be included in any communication sent to State Assemblyman Harman. City Administrator Silver gave an oral presentation, constructing draft language for this evening's recommended action. Council concurred to consider it as the main motion (to follow). Councilmember Boardman stated that Council should send the message to Assemblyman Harlan that this is a bad bill for his constituency, as it targets only one community and only one power plant. (7) January 22, 2001—Council/Agency Minutes - Page 7 Commending staffs professionalism, Councilmember Garofalo contributed that if the intent of City Administrator Silver's recommended action is to maximize the mitigation of environmental issues, and to gain economic benefit and assure the safe generation of electrical power, he would make a motion to approve and forward it to Assemblyman Harman's desk. Councilmember Green informed Council that his was the dissenting vote on the related item of December 18, 2000 as not being feasible; however he will support seconding the motion if placed on the table. (No vote was taken.) Councilmember Bauer inquired as to the status of Council's motion at the meeting of December 18, 2000. He expressed concern with the idea of attaching copies to be sent in the communication to Assemblyman Harman. Mayor Julien Houchen stated that it will be important to communicate the city's position as the Assembly Bill will move forward in any event. Mayor Pro Tern Cook concurred that this is a bad bill and that lobbying ought to be in opposition to its adoption. A motion was made by Garofalo, second Green to: 1. Approve that the City Council communicate with the Governor, State Legislature, Public Utilities Commission (PUC) and the California Energy Commission (CEC) that the City needs to have any expansion of AES power plant in Huntington Beach in compliance with Federal, State, and local environmental standards of law; and 2. Approve that anything in the legislation shall not pre-empt local laws or California Environmental Quality Act (CEQA); and 3. Approve that any power generated from the plant in Huntington Beach be sold only in California; and 4. As amended, to add a cover letter to Assemblyman Tom Harman restating the Council action approved at the December 18, 2000 meeting — "Move that: A) The City oppose the expansion of the AES plan unless AES in working with the city staff will: 1) mitigate the ugliness, 2) mitigate the potential beach contamination, 3) improve safety of ammonia use and 4) no increase in noxious effluent or purchase of credits; and B) The staff should work with all agencies including the Southern California Air Quality Management District, Coastal Commission, and all cities and agencies in developing strategies to deal with the expansion problem — (Approved as follows: 6 Ayes: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff and Bauer; 1 No: Green);" and 5. Approve that the City Council is verbally demonstrating to Assemblyman Tom Harman that the City's first line of action is not to pass the Assembly Bill; but if by normal mechanisms it becomes clear that the bill will pass that the Council position is as stated in the main motion. The motion carried by the following roll call vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None (8) January 22, 2001 —Council/Agency Minutes - Page 8 Adjournment — City Council -Redevelopment Agency Mayor Julien Houchen adjourned the Special Meetings of the City Council -Redevelopment Agency of the City of Huntington Beach. The Regular Meetings of the City Council - Redevelopment Agency of the City of Huntington Beach will be held on Monday, February 5, 2001 at 5:00 p.m., in Room S-8, Civic Center, 2000 Main Street, Huntington Beach, California. ATTEST: City Clerk and Ex-Officio CArk of the City Council of the City of Huntington Beach and Clerk of the Redevelopment Agency of the City of Huntington Beach, California City Clerk -Clerk Mayor -Chairman CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CALL FOR SPECIAL MEETING CITY COUNCILIREDEVELOPMENT AGENCY CITY OF HUNTINGTON BEACH MONDAY, JANUARY 22, 2001 Pam Julien Houchen, Mayor/Chairman Connie Boardman, Council/Agency Member Ralph Bauer, Council/Agency Member Debbie Cook, Council/Agency Member Shirley Dettloff, Council/Agency Member Dave Garofalo, Council/Agency Member Peter Green, Council/Agency Member CALIFORNIA 92648 You are hereby notified that a Special Meeting of the Huntington Beach City Council and Redevelopment Agency of the City of Huntington Beach, California, is called for and will be held at City Hall, 2000 Main Street, Huntington Beach, CA 92648 in the Lower Level, Council Chambers at the hour of 5:00 p.m., Monday, January 22, 2001. The meeting is for the purpose of: 1. City response to statewide energy crisis including taking actions in response to escalating energy prices such as closing of city buildings or relocating operations. 2. City response to Assembly Bill xx which would permit commencement of construction of the AES Power Plant prior to the completion of the California Energy Commission certification process. Dated: January 19, 2001 ATTEST: City Clerk/Clerk MayaW,hairman l hereby certify that I received the above notice, "Call of Special Meeting of the Huntington Beach City Council/Redevelopment Agency," prior to 5:00 p.m. Sunday, January 21, 2001. Mayorl airman (Telephone: 714-536.5227 )