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HomeMy WebLinkAbout2001 - MINUTES - 8/16/2001 CITY OF PALM SPRINGS CITY COUNCIL MINUTES AUGUST 16, 2001 ' An Adjourned Regular Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor pro tem Oden, in the Council Chamber, 3200 Tahquitz Canyon Way, on Thursday, August 16, 2001, at 5:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ROLL CALL: Present: Councilmembers Hodges, Reller-Spurgin, and Mayor pro tem Oden Absent: Councilmember Jones and Mayor Kleindienst The meeting was opened with the Salute to the Flag. REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on August 10, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 3 of agenda this date. PRESENTATIONS: None HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: FINANCING AUTHORITY: COMMUNITY REDEVELOPMENT AGENCY- No Business ' PUBLIC COMMENTS: Philip Tedesco stated the abatement procedure needs to move ahead on the Biltmore Hotel. Harold Stone 2980 Plaimor, voiced opposition to the Ocotillo Energy Plant; and added that the AQMD reports indicate an off-set of mitigating credits; that the credits can go anywhere; that the result will be emissions in our air; that credits will not reduce the air pollution put out by the plant; and that it is wrong to allow the plant to be developed. CONSENT AGENDA: None PUBLIC HEARINGS: 1. CASE 5.0874B - OCOTILLO ENERGY PROJECT Recommendation: That the Council amend the Zoning Ordinance to allow natural gas fueled electrical generation in the "E-I" Energy Industrial Zone; and review of the California Energy Commission application for certification of a proposed facility located within a 75 acre site north of Dillon Road, east of Diablo Road, Zone E-1 and W, Section 9, R4E, SBBM. City Manager read a prepared statement, and added that the purpose of the meeting tonight is to generate comments regarding the placement of the project; that there is a State crisis regarding energy; that tonight will not finalize any action by the City; that there is not a full compliment of Members of the City Council Minutes 08-16-01, Page 2 Council present; that the meeting will allow for additional comment regarding the e proposed project; that there are many questions yet to be answered; that an independent consultant will be hired to interpret the environmental documents generated regarding the proposed plant; that the hearing will be continued to September 5 to a regular meeting; that the full Council will be present at that meeting; that the final information needed for Council consideration should be available; and that another opportunity for the public to express its opinion will be given. Director of Planning & Building stated that the matter for action tonight is consideration of first reading of a possible zoning amendment and a Resolution designating findings regarding the proposed plant; that a number of additional plants could be placed in the area; that there are no other applications pending at this time; that the first reading of the Ordinance is recommended with additional information to be forthcoming for Council review; that the information requested by the Council should be provided before the proposed second reading of the Ordinance; that there are some issues that are State level; that the City of Desert Hot Springs has expressed concerns with the CEQA process; that the California Energy Commission should address those concerns; and that the permitting process does fall under State jurisdiction. Mayor pro tem stated that the meeting was called in response to a request by InterGen. City Manager stated that InterGen did request a meeting to outline the process and to allow further public comment; that tonight the Council is being requested to consider first reading of a Zoning Amendment; that the hearing is requested to be continued to September 5, 2001 and that no further action is being requested. Director of Planning & Building stated that the Ordinance Amendment being considered is to amend the zone to allow natural gas fueled electrical generation in the "E-1" Zone; that the "e-1" zone already exists, but the proposed amendment would allow natural gas fueled electrical generation to be added to the existing allowances. Mayor pro tem questioned what is the process of approval of the project. Director of Planning & Building stated that the Planning Commission will make recommendations to the Council for consideration regarding the site development and that the rest of the permitting process is through the State. Mayor pro tem clarified that the action before the Council is an amendment to the Zoning Ordinance and not approval of the project. City Manager stated that much more information is needed before the Council will be asked to consider the item; that the action tonight is merely a first reading of the Zoning Ordinance amendment; that the State does have the project on a "fast Track; and because of the intricacies of the project, the City will hire an independent consultant to interpret the environmental impact reports for the City. Council Minutes 08-16-01, Page 3 ' Councilmember Reller-Spurgin stated that one of the reasons for requesting the meeting was that at the last meeting the item did not come up for discussion by the Council until 1"30 a.m.; that it is not fair to the Council, nor to the people it represents to try to discuss an item of this magnitude at that hour; that InterGen did also request the meeting for tonight; that the reputation of the City is not being business friendly;' that when someone wants the City to listen the Council does need to make itself available to hear the information; that if this project moves a mere 60 feet into County land, the process will begin again and no longer be in a fast track process; that the action before the Council is for land use related only; that personally she is not an air quality expert; that the AQMD is; that the AQMD representatives are in the audience; that the project is not about money for the City, but about is it appropriate at this location and if there are any long term effects; that the Members of the Council need to listen and let the experts tell the City what the results of the studies are. Mayor pro tem questioned the lead for the project. Director of Planning & Building stated the State of California Energy Commission would be the lead agency to authorize the permits; that the City is being requested to amend the Zoning Ordinance; that the first reading tonight will assist in moving the project along; that there will be additional information given to the Council as it becomes available; and that the plan is for the plant to be operational by the upcoming summer. ' Mayor pro tem declared the hearing open. Tom Mulhall, Terra Cotta Inn, read a prepared statement on behalf Sherry Johnson, of the Indio Chamber of Commerce that did request that the matter be continued for further study; and added that careful consideration should be given to the air quality impacts the project would produce. Mayor Matt Weyuker, Desert Hot Springs, stated that the City of Desert Hot Springs will be the City that will be most impacted by pollution; that studies have indicated that the wind will carry the pollution directly to the three schools located in the City; and added that the matter needs additional study before any action is taVen. Arthur Lyons, Palm Springs, stated that the project is an opportunity for the City; that in fact a lot of opportunities have escaped the City over the years; that if the City does not approve the zoning amendment, the project will merely move about 3,000 yards and locate in the County; that the City will still have the impacts, but lose any possible revenue related to the project; and added that it may be that the City of Desert Hot Springs is awaiting the opportunity to move the plant to its City. William Vasta, 5301 Waverly, stated that this is an opportunity for the City to explore its options; that any decision should not be made in haste; that the State is no longer under the threat of blackouts; that the power plants that have been closing are due to maintenance, not lack of power; that there is plenty of land available that is not close to residential areas available to locate the plant; and that it is an illogical impulse for the City to buy a power plant. Council Minutes 08-16-01, Page 4 William Thomas, Desert Hot Springs, stated that there are alternatives to this type of plant, such as solar powered plants that produce no pollution; that the State is spending millions on renewable energy programs and would assist a solar plant with its funding; and that a plant of this size could cause major pollution problems in the Valley. Tom Suitt, Palm Springs, stated that balance is needed to make a decision; that there is a lot of confusion and unanswered questions regarding the plant; that more information is needed to help educate the public; that the City does need to hire experts to interpret the information gathered regarding the plant and report the findings back to the Council. David Hoopes, Desert Hot Springs, stated that the new motto for the City of Desert Hot Springs is "Clearly above the rest; that due to the higher elevations of the City and the wind of the area, it is clear that this City will be the most impacted by pollution; that the airborne pollution will be in excess of AQMD regulations; that the plant will not only impact the air quality but add to humidity and deplete the water tables; and that the City of Palm Springs should reject the issue. Betty Wallin, Desert Hot Springs, stated that the City, of Palm Springs should deny the zoning request due to the impact to Desert Hot Springs. Harold Stone, 2900 Plaimor, presented information to the Council containing information from the CEC and SCAQMD, copy on file in Office of the City Clerk, and added that the people have not endorsed the proJect; that the people would be willing to pay more in taxes, rather than have the plant built; that the State is not in a power crisis; that the State is selling power it bought for $236/megawatt for $1/megawatt; that if there were a shortage, the State would not be selling surplus; that the applicant requests a special meeting with the Council and one is called; that being business friendly does not mean approving everything that a business proposes; that the independent consultant should be able to answer many questions regarding the environmental impacts for the City and urged the City Council to wait until all information is received. Steven Bayrd, Whitewater, stated that the bigger picture needs to be examined and that the bigger picture is that most of the pollution the valley will receive will be coming from the west, not generated by this plant. Shari Joseph, 401 S. El Cielo, stated that there are questions that are unanswered, such as will the heat add an adverse impact on the generated pollution; that this type of pollution will reduce the visual beauty of the Valley and the agricultural yields; that the so called energy crises is now questionable; that the profits will go to Shell Oil Company, InterGen and the City of Palm Springs; that this plant is premature; that if the plant were so good, there would be no need to promote community benefits; that the City Council should be the guardians for the health and welfare of the citizens; and that should the Council approve the zoning amendment, every breath of every citizen will be affected. Council Minutes 08-16-01, Page 5 ' Nancy Stuart, 1037 Tamarisk, stated that it was wise for the Council to call the meeting; that the decision must be careful and made with information; that options need to be left open and approve the first reading of the zone change. Joan Heredia, Santa Barbara, URS Corporation, stated that the company was the agent to prepare the EIR regarding the plant; that the company does consulting work for both private companies and public partnerships; that the full EIR has been submitted to the CEC; that it does address all environmental, health, visual and noise issues; that the comments regarding the long term effects are appreciated; that URS does stand ready to assist the City and its consultants in the interpretation of any documents; that there will be some visual impact from 1-10; that the plant will have motion detection lighting; that there will be an increase of humidity of .06 percent; that the amount of increase should not be perceptible; and that the plant is state of the art technology. Victor Cohen, 1011 E. Sierra Way, stated that there is strong opposition from those who oppose everything; that the State is in a power crisis; that everyone wants power, but most do not want the plant located in their backyard; that the proposed plant will help the City in its growth; that it will assist the City financially; and requested the action be approved. Theresa Covey, North Palm Springs, stated that the location of the plant is questionable and added that the plant would be located in a flood plain. Barbara Grumbine, North Palm Springs, stated that the air impact on Joshua Tree Monument is not mitigatable and that the Council should deny the action. Wendie Busig-Kohn, 591 N. Belardo, presented a Los Angeles newspaper article and requested that Member Hodges review it. Tomas Covey, North Palm Springs, stated that the citizens have stepped up to the plate and conserved energy; that there have been no blackouts thus far this summer; that there are procedural questions such as will this hearing be continued, will testimony tonight preclude any further testimony at a future hearing, has the City Attorney reviewed the recommendation, how many times can the Council vote on this matter; and added the reason there are no plants in Baldwin Hills, or South Gate is that the people sent the Governor back to Sacramento. Philip Losey, Cathedral City, stated that the moral high ground is if we want others to adopt new technology to assist in clean air emissions, then we must do so; and that this plant does promote clean technology. Joyce Manley, Whitewater, stated that the homeowners are concerned over the lack of care for the Whitewater area; that this is the area that will bear the brunt of the pollution; that there are not enough credits to offset this type of pollution; ' and that based on newspaper articles, there is no need for additional plants at this time. John Cotton, North Palm Springs, stated that Palm Springs may become an Industrial City rather than a resort with the approval of this matter; that there is Council Minutes 08-16-01, Page 6 no reason to hurry the decision regarding the plant; that: the plant will be located 330 feet from his residence; that no one that close to the plant would be supportive of the issue; that there are many questions that need to be answered; that it is still up in the air whether the State can supersede the Council's decision regarding the zoning; and requested denial of the issue. Marian Harvey, Latham & Watkins, representing InterGen, stated that this process is somewhat different than most; that typically the City would be the lead agency for the development of a plant in its City boundaries; that in this case the CEC will be the CEQA and permit lead agency; that Phase I of the CEQA has been completed; that the Phase does include environmental issues that are under review by the CEC; that the staff assessment of the CEQA should be at hand by the end of the month; that the review will be objective; and following the review there will be a number of hearings for detailed analysis to be given. Sharon Lock, 1517 Sagebrush, stated that there are concerns with the matter being fastracked; that there is time for the information to be examined and to request an independent analysis of the data; that there is a question of air quality impact; and that the decision made should not compromise the current or future residents of the City. Jim Stuart, 1037 Tamarisk, stated that the bottom line is that the plant is coming; that the plant will be located in Palm Springs or in the County of Riverside; that the action before the Council at this meeting is a first step; that each citizen has his own view on the matter and the need for the City to bring an independent consultant is paramount; that there will be benefits from the plant; that there may be legislature passed regarding those Cities that have plants will not suffer future blackouts; that South Gate and Baldwin Hills would have required power lines to run over residential homes; that in this case that would riot happen; that the location is perfect for the power plant; that it has been said that the plant will produce less pollution than is currently being generated on the streets at this time; that with the approval the standards of the industry may change to place tighter regulation on the western located plants; and that should the City endorse the project, there should also be some type of guarantee with the approval, such as a reduction of kilowatt hours for the citizens. Bob Hren, InterGen Vice President, thanked the Council for the meeting to allow additional input; that it is difficult to address all the concerns in the time permitted; but that all concerns have been noted and will be addressed; that the CEC has held on public hearing in Palm Springs; that the findings and documents are available at the City's library; that there does seem to be a lot of confusion on the issue; that before the Council tonight is just the zoning amendment; that the actual fate of the plant will be decided by another process; that experts are reviewing all the data connected with the proposal; that the data is complex; that there were many comments made by Desert Hot Springs citizens; that there have been studies performed regarding the wind path and intensity; that it has been found that the impact will be less than 4% of the time; that there are concerns with the present amount of PM10 in the Valley; that InterGen is looking for ways to reduce the PM10 impact in the valley; that the offset of the PM10 will help reduce the impact of the pollution; that all Agencies are being worked with; that this plant is state of the art; and that the findings do Council Minutes 08-16-01, Page 7 ' show that the bottom line will be with the approval of the plant and employing mitigating measures there will be reduced emissions in the valley. Martha Gilbreath, 2040 E, Calle Lileta, resident for 45 years; stated that it is wrong for this issue to be held in the month of August; that there are many that are on vacation during this time; that the only barrier between InterGen and the Coachella Valley is the zone change; that it is questionable why a plant would be located in an area where the air pours through the pass; that it would be better to build the plant in the lower end of the valley; that there are not as many people to be impacted; that the Torres Martinez Tribe is already building a power plant; that the 2% increase to the City's budget from the revenue of the plant will not compensate for 50 years of pollution; and that the final point is that a smog producing plant should not be allowed at the wind entrance of the City. Tony Hoetker, Palm Springs, stated opposition to the plant; that the air quality at this time is poor; that this type of decision should not be rushed; that all citizens should be involved in this decision; and that the Coachella Valley is known as a recreational destination and not as an energy-producing destination. Joy Meredith, no address given, stated that the accelerated process for this project is uncomfortable; that there are a number of questions that are unanswered such as how much money is our air worth; that the benefits to the City have not been given, other than monetary; and requested that Council not ' fast track the issue. Frank Tysen, no address given, stated that 30 years ago two oil refineries wanted to locate in the Banning/Beaumont area; that fortunately the Regional Air Pollution Authority was formed and that the refineries did not happen; that there is a question of the City's priority, whether the City should be a major industrial center or a quaint resort community with tourism based on clean air; that the question of being business friendly is based on who, the power plant representatives or the hotels in town, and that the Council does need to remember who it represents. Daryl Gilbreath, 2040 Calle Lileta, stated that the State is under pressure for energy; that the plant could be located in Mecca or Thermal; that InterGen is playing hard ball with the City; that if the threat is that the City approves the zoning change or it will locate elsewhere, the sentiment is good riddance; that all the facts have not been given; that there will be a visual plume constantly in view of the City; and that the Council should do the sensible thing and turn the amendment down. Fred Noble, no address given, stated that truth is often the casualty of passion; that there have been several hours of opposition testimony given and the applicant allowed about 10 minutes; that the applicant has not been allowed the opportunity to refute any of the testimony; that all need to understand that to ' deny the zoning change will kill the power plant; that at the best, most plants operate with 50-60 parts of NOX; that this plant has a 30 — 40% improvement over those numbers; that with the mitigating measures the air quality will be improved; that currently tourism is down based on the threat of blackouts; that rates will not come down until supply comes up; that if the State reverses itself Council Minutes 08-16-01, Page 8 on direct access, the City will have the salvation for tourism that is beyond any tax benefit InterGen will give; and added that if the matter is placed on a slow process, the project will be over. Ralph Thornton, no address given, stated that one of the themes tonight is that business, money and growth is evil; that not all in the City think so; that all are in this City because of the ability to make money; that safeguards do need to be set in place, but that it does need to be realized that the biggest polluter is people; and that the bottom line is that if you want to get rid of pollution, then get rid of people. Carrie Allen, no address given, stated as a previous Planning Commissioner she was vigoursly opposed to wind mills; and that the opposition was wrong; that over the years the City has been accused of being unfriendly to business; and that in this case the first step should be taken tonight and the debate allowed to be continued. Joan Sanca, no address given, stated that the zoning change should not be granted; that the City does have power now; that as time goes by, more solar energy will be used; and that the citizens should be listened to. There being no further appearances, testimony was concluded and the hearing continued to September 5, 2001. Mayor pro tem requested the Director of Planning & Building to explain the CEQA process. Director of Planning & Building stated that the process is controlled on the State level; that the CEQA will contain all the information that a local CEQA would contain; and that when the final document becomes available, a copy will be provided to the library for public review. Councilmember Hodges stated that there has been a lot of information given at the meeting; that it is important to allow as much public testimony as possible regarding the project; that there has not been pressure; on her to approve the project; that the only request has been to consider the project; that time must be allowed for the Members to process the information that has been given; that while everyone wants power, we must also think of the future; that it has been said that if the City denies the project it will move just a few feet to the County of Riverside property; that the statement does need to be verified; that the process tonight is to allow the public to speak and to continue to consider the project while additional information and clarification is sought. Councilmember Reller-Spurgin stated that overall the topic; tonight is that the Council should do the right thing; that the Members of the Council always do what they think is the right thing for the City; that none feel that their decision is wrong or not in the best interest of the Community; that the voting by the Council is pure; that with this issue, doing the right thing for one member, may not be the same right thing for another member; that at this time the: City Attorney, InterGen and CVAG are working to see if direct access is possible; that the issue is of great importance to the residents; that the cumulative effect of the various Council Minutes 08-16-01, Page 9 ' powers being proposed in the Valley is also being evaluated; and that right now the right thing to do is allow time for questions to be answered. Mayor pro tern stated that there have been no threats given regarding the project; that the City does have a responsibility to assist the State through the energy crisis; that the entire State has been affected through its tourism due to the power crisis; that the AQMD will do the job that it should; that the bottom line is that there is no amount of money available to sacrifice the quality of life for our Community; that there have been several plants proposed in the Valley; that the impacts do need to be considered with this project; that there are a lot of unanswered questions; that the Governor has stated that consideration would be given to direct access to those Cities with power plants, and that is a significant statement; and that over the next few weeks the information and interpretations should become available to enable the Council to make a decision. Councilmember Reller-Spurgin requested the Resolution be revised to include language that approval is contingent on pending information forthcoming from the CEC and AQMD. City Clerk read Title of Ordinance as follows: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE ZONING ORDINANCE IN REGARD TO ALLOWING NATURAL GAS FUELED ELECTRIC GENERATION FACILITIES SUBJECT TO A CONDITIONAL USE PERMIT I THE "E-1" ENERGY INDUSTRIAL ZONE after which, it was moved by Reller-Spurgin, seconded by Hodges, and unanimously carried, Jones and Kleindienst absent, that further reading be waived and the Ordinance be introduced for first reading. Resolution 20159 as revised was presented; after which, it was moved by Reller- Spurgin, seconded by Hodges and unanimously carried, Jones and Kleindienst absent, that R20159 be adopted. COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPORTS: Councilmembers reported on various civic and community organizational meetings and events which they attended, subsequent to the last regular meeting, and announced upcoming events of community interest. LEGISLATIVE ACTION: None ADDITIONAL LEGISLATIVE ITEMS: None. ADDED STARTERS: None. REPORTS & REQUESTS: CITY COUNCIL reports or requests Council Minutes 08-16-01, Page 10 PUBLIC reports or requests STAFF reports or requests ADJOURNMENT: There being no further busi yor prored the meeting adjourned. PATRICIA A. SANDERS City Clerk