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HomeMy WebLinkAboutBolsa Chica Planned Community - Authorize Filing a Statement Council/Agency Meeting Held: Deferred/Continued to: 10 Approved ❑Conditionally Approved ❑ Denied City Clerk's Signat e i Council Meeting Date: March 29, 1999 Department.ID Number. PL99-25 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS , SUBMITTED BY: RAY SILVER, City Administrator O-e-2 LL,r PREPARED BY: GAIL HUTTON, City Attorney OV15 MELANIE S. FALLON, Assistant City Administrator SUBJECT: AUTHORIZE FILING A STATEMENT WITH PUC ADDRE,�`jNC( PROCEDURAL MATTERS AND REPORTING ON THE PROGRESS OF PRE-ANNEXATION AGREEMENT NEGOTIATIONS WITH HEARTHSIDE HOMES Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The City has recently received a Scoping Memo and Ruling of Assigned Commissioner (Attachment 1) from the Public Utilities Commission (PUC) which contains a series of rulings pertaining to the City's protest of the applications by the Southern California Water Company (SCWC) to provide water and sewer service to the Bolsa Chica Planned Community. Transmitted for your review is a summary report regarding the PUC's rulings and a schedule of proceedings. Funding Source: Not applicable. Recommended Action: Motion to: 1. "Authorize staff to file a statement with the PUC at the prehearing conference, scheduled for April 22, 1999, addressing procedural matters and reporting on the progress of pre-annexation agreement negotiations with Hearthside Homes." • • REQUEST FOR ACTION MEETING DATE: March 29, 1999 DEPARTMENT ID NUMBER: PL99-25 Alternative Action(s): The City Council may make the following alternative motion: "Do not pursue the recommended actions and direct staff accordingly." Analysis: A. BACKGROUND At the February 22, 1999 City Council meeting, the City Council approved responses to questions asked by the PUC in the February 2, 1999 Assigned Commissioner's Ruling Noticing Prehearing Conference. On February 25, 1999, staff attended a prehearing conference held by representatives of the PUC to consider the applications filed by SCWC. The February 25, 1999 prehearing conference was called by Commissioner Henry M. Duque to determine the parties, positions of the parties, issues and other procedural matters relating to the SCWC applications. At the prehearing conference, the City requested a 60- day continuance and an additional prehearing conference to provide the opportunity for pre- annexation negotiations to proceed with Hearthside Homes. The Scoping Memo and Ruling of Assigned Commissioner contains a series of rulings that were made after the prehearing conference. Several of those rulings are summarized below. Summary of Scoping Memo and Ruling of Assigned Commissioner First, based on issues raised by the City, the Bolsa Chica Land Trust and the Ratepayer Representation Branch of the PUC's Water Division, Commissioner Duque determined that a consolidated evidentiary hearing was needed. Because the SCWC water service application and the SCWC sewer service application have been consolidated, only one evidentiary hearing will be held. Commissioner Duque designated Administrative Law Judge John B. Weiss as the principal hearing officer. Second, Commissioner Duque outlined the scope of the evidentiary hearing. Among other items, he specifically indicated that he would, " . . . consider finalized, firm proposals from the City of Huntington Beach that would not impose delay for completion of the Planned Community." The term "finalized proposal" refers to technical engineering plans indicating how, not if, the City could provide water and sewer service to the proposed project. Finally, Commissioner Duque set a schedule for completion of the PUC proceedings. The second prehearing conference (requested by the City) was set for April 22, 1999. The PL99-25 -2- 03/26/99 10:06 AM 0 0 REQUEST FOR ACTION MEETING DATE: March 29, 1999 DEPARTMENT ID NUMBER: PL99-25 evidentiary hearing before ALJ Weiss was set for July 26, 1999, and a proposed decision by was slated for February 18, 2000. The matter is scheduled for presentation to the full Commission on April 14, 2000. B. STAFF RECOMMENDATION Authorize Statement for the April 22, 1999 Prehearing Conference Because it is uncertain whether the City and Hearthside Homes will reach agreement regarding pre-annexation, staff recommends that the City continue with its protest of the SCWC applications. Specifically, it is recommended that the City Council file a statement with the PUC at the prehearing conference scheduled for April 22, 1999 addressing procedural matters and reporting on the progress of pre-annexation agreement negotiations with Hearthside Homes. As part of proceeding with the City's protest, staff must investigate and be prepared to provide written testimony to the PUC on July 9, 1999 defining how the City could physically provide water and sewer services to the Bolsa Chica area and how the timing of any City proposal would compare to the PUC schedule. The issue before the PUC, provision of water and wastewater service to the proposed Bolsa Chica Planned Community, is also one of the subjects of the City's pre-annexation agreement negotiations with Hearthside Homes. Should the City complete a pre-annexation agreement with Hearthside Homes, the PUC protest would likely be resolved because the City is obligated to provide water and wastewater service to development within its limits. Environmental Status: Not applicable. This action is for the purpose of filing a report and a request for authorization to negotiate and does not constitute a project under the California Environmental Quality Act. Attachmentfs): City Clerk's Page NuMber No. Description 1 Sco in Memo and Rulingof Assigned Commissioner RCA Author: Hz:sH:WN:kjl i PL99-25 -2- 03126/9910:06 AM HMD/JBW/eaP 3/1609 • BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application of Southern California Water Company (U 133 W) for a Certificate of Public Convenience and Necessity Application 98-11-003 pursuant to California Public Utilities Code (Filed November 5, 1998) Section 1001 to Extend its West Orange County System to the Bolsa Chica Planned Community. In the Matter of the Application of Southern California Water Company (U 133 W) for a Certificate of Public Convenience and Necessity pursuant to California Public Utilities Code Application 98-11-015 Section 1001 to Operate and Maintain a (Filed November 10, 1998) Wastewater System to Provide Service to the Bolsa Chica Planned Community. SCOPING MEMO AND RULING OF ASSIGNED COMMISSIONER 1. Summary This ruling issued pursuant to Rule 6.3 of the Commission's Rules of Practice and Procedure, following a prehearing conference held on February 25, 1999,in San Francisco, affirms the category determination, determines that a consolidated hearing for both applications is necessary, designates the principal hearing officer, adopts the timetable schedule for the proceeding, and addresses the scope of the proceeding. 2. Category This ruling affirms that these proceedings are ratesetting proceedings as preliminarily designated by Resolution ALJ 176-3003 issued November 19, 1998 (A.98-11-003), and Resolution ALJ 176-3004 issued December 3, 1998 40749 - 1 - A.98-11-003 A.98-11-0 HMD W ea /JB / P (A.98-11-015). This designation of category is appealable under the procedures in Rule 6.4. 3. Need for Hearing The issues raised in both applications as set forth in the protests filed by the City of Huntington Beach, the Bolsa Chica Land Trust, and the Ratepayer Representation Branch of the Commission's Water Division indicate that a consolidated evidentiary hearing is needed, as well as an additional prehearing conference. These hearings,which the Assigned Commissioner plans to attend, are scheduled as set forth in the timetable schedule in Section 5 of this Scoping Memo. 4. Designation of Presiding officer Administrative Law Judge John B. Weiss is designated as the principal hearing officer in this consolidated proceeding (Rules 5(1) and 6(a)(3)). 5. Timetable The schedule for the proceeding is as follows: April 22, 1999; 1:30 pm; S.F. Zd Prehearing Conference for report from City of Huntington Beach and Developer as to possible pre- annexation agreement. July 9, 1999 All parties file and distribute prepared testimony. If City decides it is willing to supply water and sewer services, its submission must include source supply, storage/pump facilities, transmission lines, up-front costs, connection fees,rates and charges. July 26, 1999; 10:00 am; S.F. (and Evidentiary hearing starts. successive days as needed) August 16, 1999 Closing Briefs filed August 30, 1999 Reply Briefs filed September 3, 1999 Final date for parties to request oral -2- A.98-11-003 A.98-11 4 HMD BW ea • /T / p argument before Quorum of Commission February 4, 2000 ALJ Draft Decision to Chief ALJ February 18, 2000 ALJ Proposed Decision filed March 19,2000 Comments due on Proposed Decision March 24, 2000 Reply comments due on Proposed Decision April 14,2000 Commission Agenda Meeting Note: The goal of the Assigned Commissioner is that this proceeding be completed by April, 2000. In no event will resolution exceed 18 months from the November 5, 1998 filing of Application 98-11-003 (Senate Bill 960, Section 13). 6. Scope of the Proceeding Whether or not the proposed systems meet with general Commission requirements for certification under Pub. Util.:Code Section 1001; the appropriateness and reasonableness of the proposed rates and charges proposed; compliance with General Order 103 requirements;whether,under California Environmental Quality Act (CEQA) the projects would impose significant environmental impacts such as to require changes,mitigations or disapproval of the applications; and possible.consideration of finalized firm proposals from the City of Huntington Beach which would not impose delay for completion of the Planned Community. Note: While the Program EIR for the Bolsa Chica development analyzed the on-site domestic water facilities and found no significant impacts,CEQA requires the Commission as the Lead Agency for the proposed Southern California Water Company extension project to review the proposed off-site transmission pipeline system not addressed in the Program EIR, and as part of that review, analyze the upstream and downstream components of the pipeline, including a reassessment of the on-site facilities that would tie -3 - A.98-11-003,A.98-11-00 F MD/ BW/ea • J P into the pipeline. Similarly, as Lead Agency for the wastewater project,we are responsible for verification that the Program EIR adequately addressed the on-site facilities and for examination of the cumulative impacts of the waste water and domestic water systems as a single project. Ex parte communication rules apply to this proceeding (Rules 7(c) and 7.1). IT IS RULED that: 1. The applications are ratesetting proceedings. 2. There is need for an evidentiary hearing as set forth in Section 3 and as scheduled in Section 5 herein. 3. The principal hearing officer in this proceeding is Administrative Law Judge Weiss. 4. The schedule for the proceeding is set forth in Section 5 herein. 5. The scope of the proceeding is set forth in Section 6 herein. 6. Requests for a final oral argument before a quorum of the Commission shall be filed and served no later than September 3, 1999. Dated March 16, 1999, at San Francisco, California. e. M. Duque Assigned Commissioner i -4 - A.98-11-003, A.98-11-0f HMD/JBW/ea P CERTIFICATE OF SERVICE I certify that I have by mail this day served a true copy of the original attached Scoping Memo and Ruling of Assigned Commissioner on all parties of record in this proceeding or their attorneys of record. Dated March 16, 1999, at San Francisco, California. Erlinda A. Pulmano N O T I C E Parties should notify the Process Office,Public Utilities Commission,505 Van Ness Avenue,Room 2000, San Francisco, CA 94102, of any change of address to insure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears. The Commission's policy is to schedule hearings (meetings, workshops, etc.) in locations that are accessible to people with disabilities. To verify that a particular location is accessible, call: Calendar Clerk (415) 703-1203. If specialized accommodations for the disabled are needed, e.g., sign language interpreters, those making the arrangements must call the Public Advisor at (415) 703-2074 or TDD# (415) 703-2032 five working days in advance of the event. RCA ROUTING SHEET INITIATING DEPARTMENT: Planning SUBJECT: PUC PROCEDURAL MATTERS AND REPORTING ON THE PRE-ANNEXATION AGREEMENT NEGOTIATIONS COUNCIL MEETING DATE: March 29, 1999 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Attached Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attome Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over$5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS- REVIEWED RETURNED FO RDED Administrative Staff Assistant City Administrator Initial City Administrator Initial G'crr� City Clerk EXPLANATION FOR RETURN OFITEM: (Below • For Only) RCA Author: HZ:SH:WN:kjl