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HomeMy WebLinkAboutMinutes - 09-26-00 - Special Meeting®1,~5~3 MINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY SPECIAL CALLED MEETING SEPTEMBER 26, 2000 The City Council of the City of Downey held a Special Called meeting at 5:07 p.m., September 26, 2000, in the Council Chamber of the Downey City Hall, Mayor Keith McCarthy presiding. PRESENT: Council Members: Keith McCarthy Mayor Robert C. Winningham Mayor Pro Tem Meredith H. Perkins Gary P. McCaughan, M.D. (arrived at 5:13 p.m.) Barbara J. Riley ALSO PRESENT: Gerald Caton, City Manager Charles Vose, City Attorney Lee Powell, Assistant City Manager Joyce Doyle, Deputy City Clerk Desi Alvarez, Director of Public Works John Finch, Police Chief James Jarrett, Director of Community Services Mark Sauter, Fire Chief Ron Yoshiki, Asst. Director of Community Dev./City Planner John Michicoff, Assistant Finance Director June Yotsuya, Assistant to the City Manager Shirley Conte, Executive Secretary ORAL COMMUNICATIONS: None PRESENTATION PRESENTATION AND DISCUSSION CONCERNING SUNLAW ENERGY CORPORATION'S PROPOSED NUEVA AZALEA NATURAL GAS-FIRED POWER PLANT LOCATED IN THE CITY OF SOUTH GATE -CALIFORNIA ENERGY COMMISSION STAFF Mr. Yoshiki welcomed representatives from the California Energy Commission, James Reede, Energy Commission's Project Manager and Jeffery Ogata, Senior Staff Counsel, and also introduced Kevin Thomas of Robert Bein, William Frost and Associates (RBF), the City's consultant for review of documents relating to the power plant facility proposed for the City of South Gate. He narrated a visual presentation of the site on Southern Avenue, noting the proposal is fora 550 megawatt natural gas burning facility, which staff became aware of on March 17, 2000, when correspondence and materials were received from the California Energy Commission after receiving an Application For Certification (AFC). The site is in close proximity to Downey schools, residences, and a hospital. The Energy Commission refers to these land uses as "sensitive receptors." The City's consultant is looking at major concerns, as they would affect the citizens and sensitive receptors of Downey, and initial review disclosed a number of deficient areas. Correspondence regarding these deficiencies was forwarded to the Energy Commission, who determined the application to be incomplete on April 26, 2000. On July 12th, the applicants resubmitted their application. The City again found deficiencies and corresponded with the Energy Commission, however, the Energy Commission felt the resubmitted application was complete and adequate. Tonight's meeting is considered a data discovery process, and he introduced James Reede, of the Energy Commission, to explain this process. Council Minutes 9/26/00 (Spec.) -1- ®~.3~8~ James Reede, Energy Facility Siting Project Manager for the Nueva Azalea Power Plant project proposed by the Sunlaw Corporation, explained the purpose of the siting process; reviewed the various people and agencies involved in the application for certification; and pointed out the Energy Commission is an independent, neutral, unbiased party. He noted there are also interveners, public advisors, as well as the public. The siting process is conducted on any thermal power plant 50 megawatts or greater, with the Energy Commission responsible for coordinating with local, Federal and State agencies to perform a full review of the environmental impact. He mentioned an informational hearing and site visit to be held on Monday, October 2, 2000, from 3:00 to 8:00 p.m. and noted the timeline for the siting process is typically 365 days. In this case, since it was August 9th before the information submitted by the applicant was deemed sufficient to meet the requirements of the rules and regulations siting process, the twelve month process commenced on that date. He stated a number of workshops have and will beheld, with preliminary staff assessments to be issued in January of 2001. The final staff assessment will incorporate all comments and suggestions and will become testimony for the evidentiary hearings. He explained the evidentiary hearing process; the decision stage, after the evidentiary heazings are closed, where the committee issues the presiding member's proposed decision; and the 30-day public comment period. The commission has tentatively scheduled a meeting for August 14, 2001, where it will debate and decide the fate of the application. He advised that all workshops and hearings will be held in the City of South Gate; notices will be mailed 10 to 15 days in advance; and documents will be on view at the South Gate and Downey Public Libraries and other locations, as well as the web site and docket unit at the Energy Commission. He reviewed the contacts, such as himself; the Commission's new Hearing Officer, Susan Gefter; and Roberta Mendonca, the Public Advisor. He submitted an Issues Identification Report to the Council, which identifies issues to be discussed at the informational hearing and site visit that are considered potential major issues. He responded to comments from the Council on concerns, such as location of the site near residential, school and hospital property; the fact the South Gate City Council would not make a decision on the project; a background of Sunlaw Corporation's experience with this scale of project; health concerns from the emission of nitrous oxides; routing and danger from the gas pipeline required to supply the plant; notification of residents and sensitive receptors; water requirements; mitigation of noise; and noted all issues will be addressed in staff's analysis. Council Member Winningham inquired whether the 500 and 600-megawatt facilities mentioned aze in residential areas and was advised they are not. Kevin Thomas of Robert Bein, William Frost and Associates, the City's consultant, stated he has been assisting the City in digesting the materials submitted, along with approximately 50 docketed items on the web- site; has attended the public meetings held to-date; has retained asub-consultant who is well respected in air and noise analysis; and is working with the California Energy Commission to identify the concerns of Downey. He noted the air emission plumes that go over Do«mey are very close to the Air Quality Management District's thresholds and the concern that the applicant is proposing to mitigate these impacts through regional offset credits. He also mentioned health hazards associated with natural gas pipelines and natural gas facilities, stating there has not been much information on flammability and explosion type hazards. Bill DeWitt, Vice-Mayor, City Council of South Gate, noted South Gate shares many of the concerns mentioned and has not taken a position because they do not have all the facts. They have hired their own independent consultant and have attended the meetings held to date. He noted he o«ms property downwind from the site, his wife teaches at West Middle School, and expressed his concern from an environmental point of view. He advised South Gate has scheduled an advisory vote at its Municipal Election in March 2001 to ask voters whether they are for or against the project. He referred to the use of the South Gate City Flower (Azalea) being incorporated in the name of the proposed facility and stated South Gate was not involved in naming this project. Council Member Perkins asked if this was a redevelopment area and noted the City of South Gate would be in a position to receive $2.5 million. Council Minutes 9/26/00 (Spec.) -2- ®1.~~~5 Mr. DeWitt indicated the cost of the plant would be between $200 and $300 million and the tax increment would be a windfall to the South Gate Redevelopment Agency. Mayor McCarthy asked if anyone from Sunlaw Energy Corporation wished to comment and there was no one present. Council Member Riley suggested staff review the issue of the City of Downey becoming an intervener. Mayor McCarthy inquired if there are other power plants in urban areas in this type of proximity. ~.. Mr. Reede responded there are a number of power plants in urban areas but a number have been shut down because they don't currently meet various environmental protection agency laws. As far as density of population surrounding a plant, review leads the Energy Commission to believe this is in the highest density area, but noted this is not a firm appraisal as yet. CLOSED SESSION Mayor McCarthy announced the Council is recessing to Closed Session (6:17 p.m.) to discuss the following Sections of the Government Code: A. SECTION 54957 -Public Employee Evaluations: City Manager, City Attorney, City Clerk, and Secretary to the City Council. B. SECTION 54956.9 -Subdivision (a) -Conference with legal counsel -existing litigation: City of Downey, et al, vs. Water Replenishment District. ADJOURNMENT: 6:17 p.m. ^i~ "'~ Joy E. Doyle ,Deputy City Clerk Keith ,Mayor h:\cclerii\sconte\spec1926 Council Minutes 9/26/00 (Spec.) -3-