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Home My WebLink AboutAdopt Resolution No 2022-77 Approving the Decertification of APPROVE-0 (POSE/Wo; ('A-4i SCAn �ZanNGr ' 2000 Main Street, Huntington Beach,CA City of Huntington Beach 92648 -oe ?cF��UNTY CP�� File #: 22-961 MEETING DATE: 11/15/2022 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Al Zelinka, City Manager VIA: Ursula Luna-Reynosa, Director of Community Development PREPARED BY: Ricky Ramos, Principal Planner Subject: Adopt Resolution No. 2022-77 approving the decertification of Subsequent Environmental Impact Report(SEIR) No. 10-001; rescission of Conditional Use Permit(CUP) No. 02-004, Entitlement Plan Amendment(EPA) No. 10-001, Coastal Development Permit(CDP) No. 10-014, and Tentative Parcel Map (TPM) No. 10-130; and termination of related agreements (Poseidon) Statement of Issue: In May 2022, the California Coastal Commission denied a Coastal Development Permit for the Poseidon Desalination Plant proposed at 21730 Newland Street. This denial effectively prevents the plan's construction and operation in Huntington Beach. As such, City Council is requested to adopt Resolution No. 2022-77,which would rescind local project approvals: decertify SEIR No. 10-001; rescind CUP No. 02-004, EPA No. 10-001, CDP No. 10-014, and TPM No. 10-130; and terminate related agreements for the Poseidon seawater desalination project. Financial Impact: Not applicable. Recommended Action: Approve decertification of SEIR No. 10-001; rescission of CUP No. 02-004, EPA No. 10-001, CDP No. 10-014, and TPM No. 10-130; and termination of related agreements by adopting Resolution No. 2022-77 "A Resolution of the City Council of the City of Huntington Beach Decertifying Final Subsequent Environmental Impact Report No. 10-001 and Repealing Resolution No. 2010-63 and Rescinding all City Entitlement Approvals and Terminating All Agreements (Attachment No. 1)." Alternative Action(s): The City Council may make the following alternative motion(s): Do not approve the recommended action, and direct staff accordingly. This may include not accepting any or all of the recommendations listed above. City of Huntington Beach Page 1 of 2 Printed on 11/9/2022 poweredeolj LegistarT" File #: 22-961 MEETING DATE: 11/15/2022 Analysis: In May 2022, the California Coastal Commission denied a CDP for the Poseidon Desalination Plant, ending its bid to construct and operate in Huntington Beach. On November 1, 2022, the City Council directed staff to prepare an agenda item to decertify the EIR and withdraw all local approvals issued by the City for the Poseidon project. On November 7, 2022 Poseidon Water submitted a letter requesting termination of all City agreements and permits (see Attachment 2), which include: • SEIR No. 10-001 • Conditional Use Permit No. 02-004 • Entitlement Plan Amendment No. 10-001 • Coastal Development Permit No. 10-014 • Tentative Parcel Map No. 10-130 • Franchise agreement • Owner participation agreement • Exchange agreement and escrow instructions and lease agreement for water storage purposes As such, staff has prepared Resolution No. 2022-77, which will withdraw local approvals for each of the items above, since the subject project is no longer viable on the proposed project site. Environmental Status: The recommended action is not subject to further environmental review because there is no project being approved. Strategic Plan Goal: Financial Sustainability, Public Safety or Other Attachment(s): 1. Resolution No. 2022-77 2. November 7, 2022 Poseidon Water Letter City of Huntington Beach Page 2 of 2 Printed on 11/9/2022 powered ,LegistarTr' RESOLUTION NO. 2022-77 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECERTIFYING FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT NO. 10-001 AND REPEALING RESOLUTION NO. 2010-63 AND RESCINDING ALL CITY ENTITLEMENT APPROVALS AND TERMINATING ALL AGREEMENTS WHEREAS, the City of Huntington Beach ("City"), as lead agency, has completed and certified that certain Final Subsequent Environmental Impact Report(SEIR)No. 10-001 for the Poseidon Seawater Desalination project("Project"),which project is more fully described in Final SEIR No. 10-001 which has been assigned State Clearinghouse#2001051092; and WHEREAS, on September 7, 2010, the City Council adopted Resolution No. 2010-63, which certified Final SEIR No. 10-001 for the Project; and WHEREAS, on September 7 and September 20, 2010, the City Council approved the Project, pursuant to Entitlement Plan Amendment No. 10-001 to Conditional Use Permit No. 02-004, Coastal Development Permit No. 10-014, and Tentative Parcel Map No. 10-013 to permit a 50 million gallons per day seawater desalination project on a 13-acre site and to subdivide three parcels totaling 19.5 acres info four parcels conditioned upon California Coastal Commission approval; and WHEREAS, on September 7, 2010, the City Council approved an Amended and Restated Owner Participation Agreement, an Exchange Agreement and Escrow Instructions, and a Pipeline Franchise Agreement with Poseidon Resources (Surfside) LLC; and WHEREAS, in May 2022,the California Coastal Commission denied a Coastal Development Permit for the Project; and WHEREAS, on November 7, 2022;Poseidon Water submitted a letter requesting termination of all approvals, permits and agreements with the City of Huntington Beach(Attached hereto and incorporated herein by this reference). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach as follows: 1. The Above recitals are incorporated herein. 2. The final SEIR No. 10-001 for the Project is decertified. 3. Resolution No. 2010-63,which certified Final SEIR No. 10-001 for the Project, is repealed. RESOLUTION NO. 2022-77 4. Conditional Use Permit No. 02-004, Entitlement Plan Amendment No. 10-001, Coastal Development Permit No. 10-014, and Tentative Parcel Map No. 10-130 are rescinded. 5. The Amended and Restated Owner Participation Agreement, Exchange Agreement and Escrow Instructions, and Pipeline Franchise Agreement with Poseidon Resources (Surfside) LLC are hereby terminated. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 15th day of---November , 2022. Mayor �. REVIE ' 0 AND API)! • ED: INITIATED AND APPROVED: ager Director of Community Development APPROVED AS FORM: City Attorney &1.� ATTACHMENTS Exhibit A: November 7, 2022 Poseidon Water Letter of Termination 2 22-12038/95384 EXHIBIT A ei POSEIDON WATER November 7, 2022 VIA EMAIL ONLY City of Huntington Beach Public Works Department 2000 Main Street Huntington Beach, CA Dear City of Huntington Beach: On May 12, 2022,the California Coastal Commission voted to deny Poseidon Resources (Surfside) LLC ("Poseidon") the Huntington Beach Desalination Facility's ("Facility") Coastal Development Permit application following a public hearing on the issue. As a result, the Facility will not be constructed, and Poseidon has terminated its interest in the Facility. Poseidon therefore requests termination of the agreements/permits listed below, between Poseidon and the City of Huntington Beach. • SEIR No. 10-001 • Conditional Use Permit No. 02-004 • Entitlement Plan Amendment No. 10-001 • Coastal Development Permit No. 10-014 • Tentative Parcel Map No. 10-130 • Franchise agreement • Owner participation agreement • Exchange agreement and escrow instructions and lease agreement for water storage purposes Poseidon waives the right to any noticing and opportunity to be heard before City Council on the termination of the Franchise Agreement, dated September 7, 2010. Thank you for your attention to this matter. Keith A. Bukowski Poseidon Water Corporate Controller cc: [Via email only] Ricky Ramos, City of Huntington Beach (rramosasurfcity-hb.orq) Poseidon Water LLC 5780 Fleet Street,Ste 140,Carlsbad,CA 92008 Phone:(760)655-3900 www.poseidonwater.com Res. No. 2022-77 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on November 15, 2022 by the following vote: AYES: Peterson, Bolton, Delgleize, Moser, Kalmick NOES: Posey ABSENT: Carr RECUSE: None 6Wr6-01, 9A6iniUdA4) City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California