HomeMy WebLinkAboutAuthorize the Appropriation of $160,500 from AES Fund 1284 F (2) �NTiNGj 2000 Main Street,
Huntington Beach,CA
92648
City of Huntington Beach
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File #: 23-1051 MEETING DATE: 12/19/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Ashley Wysocki, Director of Community & Library Services
PREPARED BY: Ashley Wysocki, Director of Community & Library Services
Subject:
Authorize the appropriation of$160,500 from the AES Fund 1284 fund balance for the design
and installation of a new backstop and fencing for the City's north softball field at Edison Park
Statement of Issue:
The Edison Park north softball backstop needs to be replaced due to excessive corrosion and
deterioration of two primary posts holding up the fencing structure.
Financial Impact:
The AES Fund balance currently has contingency funding in the amount of is $355,000. Staff is
requesting that $160,500 of this balance be allocated to the Edison Park north softball field backstop
improvement project.
Recommended Action:
Authorize the appropriation of$160,500 from the AES contingency fund balance 1284 to Account
128485005.82800 to complete the necessary softball field backstop and fencing improvements at
Edison Park.
Alternative Action(s):
Do not authorize the appropriation of$160,500 from the AES contingency fund balance 1248 and
direct staff accordingly.
Analysis:
The north softball field backstop at Edison Park is in need of replacement. Recent inspection of the
structure revealed excessive corrosion of two of the five primary posts that hold up the backstop
fencing. The cost to remove and install only the two new galvanized backstop posts and concrete
footings is $38,475. Under this scenario the old fencing itself would be reused, and the immediate
safety concern would be mitigated.
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File #: 23-1051 MEETING DATE: 12/19/2023
However, since improvements to the softball fields are proposed to be included as part of the final
Edison.Park reconfiguration and improvement project, staff is recommending the complete
rehabilitation of the backstop, which includes the removal and installation of all the five primary
backstop posts, concrete footings, chain link fencing, and privacy screen at a cost of$145,919, plus
10%contingency, totaling $160,500.
A total of$355,000 in contingency funds is available in the AES Fund 1248 fund balance. AES
resources are special funds that were provided to the City as part of a Memorandum of
Understanding (MOU) between the City of Huntington Beach and AES Southland Development, LLC
upon the operation of the new AES Electrical Generating Station(Attachment 1). In total, $4.9 million
was provided by AES to the City for Capital Improvement Projects and Programs that will benefit the
City and its residents. Per.Section.2A of the MOU, the City Council has the ability to allocate these
funds between various CIPs and programs at its sole discretion.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change
in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the
CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for
resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Goal 6 - Infrastructure Investment, Strategy C - Conduct an assessment of all City facilities to
determine priorities for upgrades and repairs, implementation and financial priority.
Attachment(s):
1. Memorandum of Understanding between AES Southland Development, LLC and City of
Huntington Beach and Resolution No 2020-81, A Resolution of the City Council of the City of
Huntington Beach supporting the Mural-Based Architectural Treatment and Capital
Improvement Projects and Programs related to the Newly Constructed Huntington Beach
Energy Project
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RESOLUTION NO 2020-81
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
SUPPORTING THE MURAL-BASED ARCHITECTURAL TREATMENT AND
CAPITAL IMPROVEMENT PROJECTS AND PROGRAMS RELATED TO THE
NEWLY CONSTRUCTED HUNTINGTON BEACH ENERGY PROJECT
WHEREAS,AES Southland Development,LLC ("AES")has begun operation of the
new Huntington Beach Energy Project("HBEP"),a natural gas-fired,combined cycle air-cooled
644-megawatt electrical generation facility,which shall serve as a replacement for the AES
Huntington Beach Generating Station("HBGS"); and
WHEREAS,the City has previously adopted Resolution No.2016-27,"A Resolution of
the City council of the City of Huntington Beach Supporting Proposed Architectural
Improvements as Modified and Approximate 150-Foot-High Structures Related to the
Reconstruction of the Huntington Beach Energy Project,"which in part provided that
construction of the HBEP would include architectural enhancements to soften the view of the
new HBEP structures,including the use of an architectural screen wall design to preserve and
enhance public visual resources as required in the Coastal Zone overlay; and
WHEREAS,following an extensive public outreach effort by AES to the local
community,the local community supported the development of a mural-based surface treatment
by renowned Southern California artist,Kim West as an alternative to the previously approved
architectural screen. The mural highlights imagery depicting the natural environment,local
fauna and flora and regional features,all intended to highlight nature and the unique Huntington
Beach experience;and
WHEREAS, the Kim-West mural based design project will result in the elimination of
one tall structure,the 150-foot tall spherical ball wall,and will have no other changes to the
heights of the structures addressed by Resolution No. 2016-27; and
WHEREAS,on September 14,2020, in support of the mural-based aesthetic design,
AES submitted a Design Review Planning Application to the City seeking an Advisory
Resolution from the City recommending approval by the California Energy Commission
("CEC") for the Kim West mural at the HBEP; and
WHEREAS,the CEC.has permitting authority for the HBEP,and will consider
resolutions issued by the City regarding the Kim West mural based design project's compliance
with local laws, ordinances,regulations, and standards("LORS"); and
WHEREAS,by regulation,the comments and recommendations made by the City
relating to matters within the City's jurisdiction,but for the CEC's exclusive jurisdiction over
power plant siting,"shall be given due deference by Commission staff'(20 CCR §1744(e); and
WHEREAS, on October 8,2020,the Design Review Board recommended support of the
Kim West mural based design project to the City Council; and
•
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88
RESOLUTION 2020-81
WHEREAS,AES and the City of Huntington Beach will enter into that certain
Memorandum of Understanding("MOU")to memorialize the agreement of AES to fund certain
identified Capital Improvement Projects and Programs,as identified in the Memorandum of
Understanding attached as Exhibit A and incorporated herein by reference,which will provide
the City with both the funding and the discretion to proceed with the identified Capital
Improvement Projects and Programs that will benefit the City and its residents;and
WHEREAS,by this Resolution,the City Council is making a recommendation that the
CEC incorporate the Kim West mural based design(received and dated September 14,2020 and
subsequently revised on October 26,2020 to depict painted louvers on the lower part of the Air
Cooled Condenser unit) into the project approvals for the new Huntington Beach Energy Project,
and is making findings that the AES proposal for a painted mural and potentially an additional
approximately 10 foot high wall to fill in.the"gap"to west of the sound wall,is not detrimental
to visual resources and is consistent with applicable LORS.
NOW,THEREFORE,the City Council of Huntington Beach does hereby resolve as
follows:
SECTION 1. The City of Huntington Beach reaffirms its conclusions in Resolution No.
2016-27 that the height variance that could have been granted to Huntington Beach Energy
Project was properly considered and the potential variance findings remain valid with the
proposed Kim West mural based design. Specifically,the City of Huntington Beach affirms in
this Advisory Resolution that the removal of the 150 foot tall spherical ball wall does not change
the City's conclusions with respect to the HBEP,and the City finds the Kim West mural based
design is consistent with Resolution No. 2016-27.
SECTION 2. By this Advisory Resolution,the City of Huntington Beach finds that the
Kim West mural based design will have less than significant potential environmental and esthetic
impacts from Magnolia Avenue (CEC Key Observation Point 4)and all other KOPs identified by
the CEC.
SECTION 3. By this Advisory Resolution,the.City of Huntington Beach further finds
that the Kim West mural based design is consistent with all applicable laws,ordinances,
regulations and standards, including but not limited to all city ordinances,regulations, and
standards.
SECTION 4.By this Advisory Resolution,,the City of Huntington Beach,further finds that
the MOU to be entered into between the City and AES,which memorializes the agreement of AES
to fund certain identified Capital Improvement Projects and Programs,as further defined in Exhibit
A,will provide the City with funding and the discretion to proceed with certain additional Capital
.Improvement Projects and Programs that will further benefit the City and its residents.
SECTION 5. By this Advisory Resolution,the City of Huntington Beach City Council
recommends that the CRC approve the Kim West mural based design project for the Huntington
Beach Energy Project as requested by ABS.
2
89
RESOLUTION 2020-81
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 2"a,day of November,2020.
Mai
RE WED APPROVED APPROVED AS TO FORM
(fiL
City Manager InCity Attorney V.PL,
INITIATED AND APPROVED
tAAJL- ' '. C-\-D---
Director of Community Development •
•
•
•
90 •
Resolution No.2020-81
Exhibit A
MEMORANDUM OF UNDERSTANDING
AES SOUTHLAND DEVELOPMENT, LLC AND
CITY OF HUNTINGTON BEACH
This MEMORANDUM OF UNDERSTANDING ("MOU") is entered into this 3rd day of
November, 2020 by and between the City of Huntington Beach, a municipal corporation ("City")
and AES Southland Development, LLC,A California limited liability company ("AES") pursuant to
Resolution No. 2020-81 of the City Council of the City of Huntington Beach and AES' Design
Review Planning Application dated September 14th, 2020, with reference to the following facts:
RECITALS
WHEREAS, AES has begun operation of the new Huntington Beach Energy Project
("HBEP"), a natural gas-fired, combined cycle air-cooled 644-megawatt electrical generation
facility, which shall serve as a replacement for the AES Huntington Beach Generating Station
("HBGS"); and
WHEREAS,the City has previously adopted Resolution No. 2016-27, "A Resolution of the
City Council of the City of Huntington Beach Supporting Proposed Architectural Improvements as
Modified and Approximate 150-Foot-High Structures Related to the Reconstruction of the
Huntington Beach Energy Project", which in part provided that construction of the HBEP would
include architectural enhancements to soften the view of the new HBEP structures, including the
use of an architectural screen wall design to preserve and enhance public visual resources as
required in the Coastal Zone overlay; and
WHEREAS, following an extensive public outreach effort by AES to the local community,
the local community supported the development of a mural-based surface treatment by renowned
Southern California artist, Kim West as an alternative to the previously approved architectural
screen. The mural highlights imagery depicting the natural environment, local fauna and flora
and regional features, all intended to highlight nature and the unique Huntington Beach
experience; and
WHEREAS, in support of the mural-based aesthetic design, AES submitted a Design
Review Planning Application to the City seeking an Advisory Resolution from the City
recommending approval by the California Energy Commission("CEC")for the mural at the HBEP;
and
WHEREAS, in consideration of the City issuing an Advisory Resolution from the City
recommending approval by the CEC for the mural-based aesthetic design at the HBEP and the
CEC's subsequent approval of such mural-based design at the HBEP,AES agrees to fund certain
Capital Improvement Projects ("CIPs") and Programs for the City as set forth in this MOU.
20-9 1 12123 863 6.docx
91
NOW, THEREFORE,for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Parties hereto agree as follows:
1. Purpose and Implementation
The purpose of this MOU is to memorialize (a) the agreement of AES to fund the CIPs and
Programs as set forth in Section 2 of this MOU; and (b) the City's issuance of an Advisory
Resolution from the City recommending approval by the California Energy Commission ("CEC")
for the mural-based aesthetic design at the HBEP.
2. AES' Performance
A. Funding for CIPs and Programs. Consistent with the requirements of Section 3
below, AES shall submit the payment of Four Million, Nine Hundred Thousand
Dollars ($4,900,000) to the General Fund of the City of Huntington Beach, which
funds shall be allocated by the City for the following CIPs and Programs:
a) Neighborhood Mitigation Program
b) Homeless Response Program
c) Southeast Neighborhood Improvements
d) Downtown Connectivity Project
Economic Development
The City Council shall have the discretion to allocate an amount not to exceed
$4,900,000 between the various CIPs and Programs at it sole discretion.
B. Compliance with the Advisory Resolution. AES shall comply with the provisions
of the Advisory Resolution from the City recommending approval by the
California Energy Corrimission ("CEC")for the mural-based aesthetic design at
the HBEP unless such provisions are in conflict with or preempted by the CEC's
• Certification.
3. The City's Performance
A. Issuance of the Advisory Resolution. AES shall submit payment in the amount of
$4,900,000 for the funding of the CIPs and Programs as set forth in Section 2(A)
above within thirty (30)days of the completion of all the following conditions: (a)
execution of this MOU by the Parties; (b) receipt of the Advisory Resolution from
the City recommending approval by the CEC for the mural-based aesthetic
design at the HBEP; and (c)the CEC's approval of the AES petition to amend the
CEC's Certification being final and no longer subject to administrative appeals or
judicial review.
B. Use of Funds. The City shall use the funding provided by AES as set forth in
Section 2(A) above exclusively for the listed ClPs and Programs; provided,
however that in the event the allocated costs exceed the actual costs of the listed
ClPs and Programs, the City may retain the excess payment exclusively for other
CIPs designated by the City for construction. In no event shall AES be required
to pay more than the Sum Total of$4,900,000.00 as set forth in Section 2(A)
above.
2
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4. Term and Renegotiation
A. Term and Expiration. The term of this MOU shall be for two (2) years commencing
upon execution of the MOU by the Parties. All provisions of this MOU shall expire
on the termination date unless extended by mutual agreement in writing.
B. Renegotiation. In the event either party desires to negotiate the provision of a
successor MOU, that party shall serve upon the other its written request to
commence negotiations. Negotiations shall begin no later than thirty(30)days from
date of receipt of notice unless extended by mutual agreement between the
Parties.
C. No Assignment. Neither AES nor its subsidiaries or affiliates shall assign or
transfer any interest in this MOU or the performance of any obligation hereunder
without the prior written consent of the City, and any attempt to so assign this MOU
or any rights, duties or obligations arising hereunder shall be void and of no effect.
This section shall not apply to assignments between AES and any of its
subsidiaries and affiliates under common control or a successor-in-interest by
merger, consolidation or reorganization.
5. Indemnification
A. No Liability to Third Parties. Nothing in this MOU shall be deemed to create rights
or obligations in third parties not signatories to this MOU except as specifically
stated herein.
B. AES shall defend, indemnify and hold harmless the City, its council, commissions,
officials, agents and employees from or against any and all liability, loss expense
(including reasonable attorneys'fees) or claims for injury or damage arising out of
the performance of this MOU, but only in proportion to and to the extent such
liability, loss, expense, attorneys'fees, or claims for injury or damages are caused
by or the result of the negligent or intentional acts or omissions of AES.
6. Private Undertaking
It is specifically understood and agreed by and between the Parties that the Project is exclusively
undertaken as private development. No partnership,joint venture or other association of any kind
between AES and the City is formed by this MOU.
7. Governing Law
This MOU shall be governed by the laws of the state of California.
8. Modifications
Any modification of or amendment to this MOU will be effective only if in writing signed by the
Parties.
3
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93
IN WITNESS WHEREOF, the Parties have caused this document to be duly executed with all
formalities required by law as of the date first stated above.
AES Southland Development, LLC, A CITY OF HUNTINGTON BEACH, a
California limited liability company municipal corporation of the State of
California
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ITS: (circle one) Chairman/PresidentNice City Clerk
President
INITIATED AND APPROVED:
AND IL � �._...
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ITS: (circle one)Secretary/Chief Financial RE E D D APPROVED:
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City Manager
APPROVED AS TO FORM:
17,. City Attorney
COUNTERPART
4
20-9!121238636.docN
94
IN WITNESS WHEREOF, the Parties have caused this document to be duly executed with all
formalities required by law as of the date first stated above.
AES Southland Development, LLC, A CITY OF HUNTINGTON BEACH, a
California limited liability company municipal corporation of the State of
California
By: &IA
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20•99112/23806.clocX
'95
Res. No. 2020-81
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 2, 2020 by the following vote:
AYES: Posey, Deigleize, Hardy, Semeta, Peterson, Carr, Brenden
NOES: None
ABSENT: None
RECUSE: None •
et/htlUdAttd
City Cler and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
96
Mr. Amory Hanson
8102 Ellis Avenue
Apartment 121
Huntington Beach CA 92646
December 19,2023
The Mayoress of Huntington Beach
2000 Main Street
Huntington Beach CA 92648
My Dear Madam Mayoress,
I would like to express my support for Item XI.
Sincerely Yours,
Mr.Amory Hanson
CC:The Honorable Patrick Burns
CC:The Honorable Rhonda Bolton
CC:The Honorable Daniel Kalmick
CC:The Honorable Casey McKeon
CC:The Honorable Natalie Moser
CC:The Honorable Anthony Strickland