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HomeMy WebLinkAbout2001 - MINUTES - 3/14/2001 CITY OF PALM SPRINGS CITY COUNCIL MINUTES March 14, 2001 ' A Special Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Kleindienst, in the Large Conference Room, 3200 Tahquitz Canyon Way, on Wednesday, March 14, 2001, at 7:00 p.m. ROLL CALL: Present: Councilmembers Jones, Hodges, Oden, Reller-Spurgin, and Mayor Kleindienst Absent: None REPORT OF POSTING OF AGENDA: City'Clerk reported that the agenda was posted in accordance with Government Code Section 54956, 24-hour call. Mayor requested clarification regarding the call for Special Meetings. City Attorney stated that the Mayor, or a majority of the Members of the Council must call for a Special Meeting to be held; that the public comments and discussion is limited to the specifics of the agenda; that the notice must be hand delivered to each Member of the Council; that media must be contacted; and that the meeting is held with 24 hour notice. PUBLIC COMMENTS: None (Note: See Study Session notes this date for Comments related to the Indigo Energy Facility.) ' LEGISLATIVE ACTION: 1. INDIGO ENERGY FACILITY Recommendation: That the City Council discuss an application pending before the California Energy Commission for the Indigo Energy Facility located on 19'h Avenue, west of North Indian Avenue and north of 1-10, Section 15, T3S, R4E. SBBM. Director of Planning & Building stated that this matter is moving on a fast track through the process; that the State will be the permitting authority for the facility, that it is clear that the State is in an energy crisis; that peaking plants are a part of a Governor enacted plan to combat the crisis; that the City is allowed input on the facility; that the plant, if approved by the State will in place by July of this year; that Intergen has proposed to locate the plant north of 1-10; that there will be three gas fired turbines; that the structure will be 32 feet in height; that the wind turbines in the area can be up to 300 feet in height; that there will be some new electrical lines that will be needed; that the consumption of water will be 240 gallons per minute when the facility is running; that the hours of operation will be on an as needed basis; that the range of usage could be approximately 245 to 328 days per year; that the usage is actually based on hours, not days, but that as the State shortages occur, the facility will fire up; that the total hours allowed under the State's plan is for the facility to run somewhere around 1874 hours per year; that the location of the proposed facility is in an industrial area; that the area is zoned for the heaviest type of manufacturing of M-21 that the application is for emergency permitting, which is a 21 day process; that the application process could be complete as early as this week; that there are two hearings required, one locally and one before the CEC; that once the application is Council Minutes 3-14-01, Page 2 complete, the City will have 10 days in which to respond; that some of the issues involved will be the land use, fire department access and concerns for hazardous waste; public works infrastructure and the like; that there will be air quality issues and noise mitigation needs; that a portion of those concerns the State will allow credits to be addressed on a regional basin wide basis; that it is not clear when the local public hearing will be scheduled; that as far as the structure is concerned, it is fairly straight forward and an industrial facility; that desert landscaping and block walls will be utilized; that the site can not be hidden, but will be somewhat softened and screened. Councilmember Oden questioned the size of the site proposed. Director of Planning & Building stated that the area is a 10-acre site, with approximately 3 acres taken for development. Mayor questioned if the development is one building. Director of Planning & Building stated that the facility is housed equipment; that the equipment is brought to the site, then assembled and will be in three towers. Mayor questioned the number of employees, the high usage of water, and what happens to the runoff of the water. Director of Planning & Building stated that the plant is fully automatic; that at the most there will be one employee; that the water is needed to keep the generators cooled off; that the water is recycled in three storage tanks; and that the resulting runoff is minimal, and will most likely be handled through the sewage system. Mayor questioned why a larger site was not being proposed, due to the needs of the State. Mr, Hren, Intergen representative, stated that there is a larger project scheduled in the Valley; that with the short time frame given, at this time the proposed is achievable; that the location of the larger plant is likewise proposed for Palm Springs, but will be located closer to the Divers substation. Councilmember Reller-Spurgin questioned if there is a method in which the energy produced could benefit the residents of Palm Springs or the Coachella Valley. Mr. Hren, stated that the energy produced goes directly to the grid; and that there are no controls that point the usage to a direct area from the facility. Councilmember Reller-Spurgin stated that sympathy for the entire State is valid, but that the residents in the desert have the greatest need in the summer; that there is grave concern for the elderly; that if the air conditioning is shut off during the summer months, it will result in tragedy. Mr. Hren, stated that the concern is shared for the desert residents; that one part of the solution for the need will be the proposed facility supplying power to the Council Minutes 3-14-01, Page 3 ' State grid; that with the peaking plant located in Palm Springs it may assist the area in negotiating for power; that the facility is clean technology; that the plant will reduce the number of generators that will need to be bought up during blackouts; and that hopefully, with the electricity being generated in the Valley, it may assist during the determinations of who is blacked out. Councilmember Hodges questioned how noisy the facility would be. Mr. Hren, stated that the facility must comply with CEC and City standards. Councilmember Hodges stated that the proposal is interesting; that everyone must be willing to put forth the effort to help secure energy; but that it would even be better if the facility could benefit the residents of Palm Springs and the Valley. Councilmember Oden questioned if the facility could be built in three months; and if the permitting process could be completed through the City during that time. Director of Planning & Building stated that the plant will be operational within three months of approval; and that all the permitting and inspections will be conducted on a state level; that the City will not be involved unless requested by the State. ' Councilmember Oden questioned if during rolling blackouts, since the plant is located in Palm Springs, is there any way to prevent the City from the blackout; and if the plant would affect rates. Mr. Hren, stated that wholesale electrical power is regulated by FERC; that the City could enter into agreements with a Municipal Utility provider for assistance; and that the rates are normally on a supply/demand basis. Councilmember Jones questioned if the facility would only be operational during peak periods. Mr. Hren, stated that the plant will be brought on line when requested by the ISO, typically during the day and during high demand periods; that the plant could run around the clock, but that it is not the normal expectation to do so. Mayor stated that the energy crisis has affected the State economically; that some projects and developments in the State have been placed on hold due to the crisis; that the State must have electricity; that if winter months were bad with blackouts; that summer will be critical; that the Governor has allowed the peaker plants to be built; that some balance is needed due to generators being stalled by regulation; that MSRC is addressing the issue; that the facility will produce emission, but that those emissions will be the lowest possible based on today's technology; that the State needs available power; that the Governor, in seeing ' that need, has likewise mandated offsetting credits; that the 135 Megawatt will be a quick fix for energy, but that the City needs 150 megawatts; that the location is appropriate for the use and it is a very good opportunity to get power in our own backyard; and that the plants have to be built somewhere. Council Minutes 3-14-01, Page 4 Director of Planning & Building stated that the Council would need to consider a e change in the zone to allow the facility. Councilmember Reller-Spurgin stated that a motion of support should be made; and that a letter of support generated by the Mayor to the State indicating the support of the City. City Attorney stated that the City staff could work up a letter for the Mayor indicating that the Council is supportive of the concept:. Mayor stated that while not in opposition of the project:, it might be that the Council should wait until more information is generated about the project; that there are meetings upcoming that could affect what the Council desires to express; that the letter should have substance and contain factual information. City Attorney stated that a representative of Desert Hot Springs did call the City of Palm Springs and indicate concern with the facility being located at their gateway. Mayor stated that in representing the City on matters, typically a Resolution of the Council is what is desired by other governmental entities. Councilmember Hodges stated that the City needs to move forward; that the need of support should be shown; that a letter would send a good message to all the entities working on and with the power issue; that a Resolution or a zoning change could be considered at the next regular meeting of the Council; but that at this time, a letter of support should be sent. Councilmember Oden stated that if a letter is desired by the Members of the Council, the letter should be sent immediately so that it would not interfere with an official Resolution of the Council. Councilmember Reller-Spurgin stated it has been expressed that the public hearing dates are not firm at this time; and that the City needs to be certain that when Mr. Hren appears before the State he can show he has the authority and agreement of the City to secure the location of the plant. Motion to prepare a letter indicating the need and the willingness to support a peaking power plant located in the City of Palm Springs was presented; after which, it was moved by Reller-Spurgin, seconded by [lodges and unanimously carried, that the Motion be adopted. ADJOURNMENT: There being no further si=Rl la d th imeeting adjourned. DER ; City Clerk