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HomeMy WebLinkAbout9/5/2001 - STAFF REPORTS (13) 9 DATE: September 05, 2001 TO: City Council FROM: Director of Planning and Building A. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PALM SPRINGS AND OCOTILLO ENERGY, LP/INTERGEN NORTH AMERICA REGARDING COMMUNITY BENEFITS. B. CASE5.087413: OCOTILLO ENERGY FACILITY-REVIEW OFA CALIFORNIA ENERGY COMMISSION APPLICATION FOR CERTIFICATION OF A PROPOSED NATURAL GAS FUELED ELECTRICAL GENERATION FACILITY, WITHIN A 75 ACRE SITE LOCATED NORTH OF DILLON ROAD, EAST OF DIABLO ROAD, ZONE: E-1 (ENERGY/ INDUSTRIAL) AND W (WATERCOURSE), SECTION 9, T3S, R4E, SBBM. C. CASE 5.0874A: AN AMENDMENT TO SECTIONS 92.17.2.00 AND 92.17.2.D.7.D OF THE ZONING ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, TO ALLOW NATURAL GAS FUELED ELECTRICAL GENERATION IN THE "E-I" ENERGY INDUSTRIAL ZONE. RECOMMENDATION: A. That the City Council consider adopting the attached Minute Order approving a Memorandum of Understanding(MOU)between the City and Ocotillo Energy, LP/InterGen North America. B. That the City Council consider adopting the attached Resolution which transmits the specific recommendations to be incorporated into the certification and license issued by the California Energy Commission (CEC). C. That the City Council consider the second reading of the attached Ordinance amending the Energy-Industrial Zone (E-I Zone). BACKGROUND: At its August 16, 2001 meeting, the City Council approved the first reading of the amendment to the E-1 Zoning Ordinance text. In its action, the City Council directed staff to provide additional information regarding air quality, community benefits, and the CEC process. The action items described above include approval of a MOU regarding community benefits, recommendations to the CEC, and second reading of the proposed change of zone. Each of these items will be discussed in this report. CALIFORNIA ENERGY COMMISSION LICENSING PROCESS: The California Energy Commission (CEC) four-month licensing process has a number of steps which must be followed. The CEC staff is currently completing its Staff Assessment (SA). If 1441 Page 2 of 5 September 05, 2001 City Council Staff Report Ocotillo Energy Facility available prior to September 05, 2001, a copy will be provided to the City Council. Subsequently, CEC staff will prepare an Addendum Staff Assessment. State guidelines encourage local governments to provide written comments on the proposed power plant within 65 days of the CEC determination that the application is data adequate. CEC determined that the application was data adequate on June 22, 2001. Hence, the desire to provide timely City comments so that CEC staff can incorporate the City's position on land use (zoning consistency) and recommended requirements for construction and operation of the proposed facility. The SA will sum�izity o— actions to date but will, likely, conclude that the proposal is not consistent with local land use plans at this time. The SA Addendum will be prepared on, or about, September 17, 2001. The CEC will schedule evidentiary hearings in mid-September at which time the City and public can address the CEC directly. Upon conclusion of the CEC hearing process, the CEC could make a decision on the subject application. A decision is tentatively scheduled for October. The CEC staff has issued its Ocotillo Energy Project, Phase I-Status Report. This report indicates that the CEC SA will be available August 31, 2001. This report will address potential impacts, information from local, state,federal agencies, and CEC staff's independent research. In its status report, CEC staff expressed some concern about whether or not this project will be ready for approval. Issues addressed in this report include City zoning, air quality, biological resources, and water resources. A copy of the report is attached. AIR QUALITY: The Planning Commission and City Council have asked for additional information regarding air quality impacts. This issue has also been of concern to the public. In response to these concerns, the City has hired two independent consulting firms to reviewthe project's airquality reports, South Coast Air Quality Management District (SCAQMD) reports, and provide a summary of air quality issues in a format which is understandable to the public. The two firms, McDaniel/Lambert, Inc. and The Keith Companies/Giroux and Associates,will provide separate reports regarding airquality impacts caused by the project. The firms retained by the City have extensive experience in meteorology,air quality, airborne toxins,and health and ecological risk assessment. These reports will be provided prior to the City Council meeting. As part of the staff presentation, the City Council will receive testimony from the applicant's air quality consultant, SCAQMD (if available) and the two City consultants. Topics to be addressed will include overall air emissions,toxic material, health risks, PM-10 attainment, visibility, and other issues. MEMORANDUM OF UNDERSTANDING (MOU): A draft MOU is being prepared to reduce potential physical and economic impacts on the community. The community benefits in the proposed agreement include property tax, sales tax, air pollution credits, reclaimed water treatment facility, public arts fee, TUMF fees, job creation, competitive long-term energy contracts (as allowed by state law), monetary compensation to the City and surrounding area,fire protection and use of ammonia training, low income assistance,and cooperation with City regarding favorable legislation. Page 3 of 5 September 05, 2001 City Council Staff Report Ocotillo Energy Facility The full agreement includes more detail on each benefit. As noted in the Planning Commission recommendation, there-was a concern that some of the community benefits should go toward surrounding areas, including Desert Hot Springs. This agreement provides funding to residential areas surrounding the project site with the goal of providing an education-focused youth center and an annual contribution toward operation and maintenance of this facility. A final agreement will be presented at the public hearing. CITY RECOMMENDATIONS TO THE CEC: The attached resolution includes the Planning Commission's recommendations regarding the proposed project. These recommendations should be endorsed by the City Council and provided to the CEC for incorporation into the CEC certification/license for this project. These recommendations include exterior lighting, landscape screening, air quality credits, street improvements, fire protection, erosion control, drainage, on-site sewers, parking improvements, and fees. One issue which the City Council may want to consider is whether or not improvement to Dillon Road to its full General Plan width, including street widening, curbs, gutters, and sidewalks is necessary at this time. Currently, there are no sections of Dillon Road, between Highway 62 and Indian Avenue,with full street improvements. Currently this roadway section consists of a two-lane roadway with an unimproved shoulder. Widening and improving this section of roadway appears out of context and it is unlikely that additional roadway improvements will be completed in the near future. Properties to the south and east have existing WECS permits and property to the west is located in Riverside County. The City Engineer has recommended that Dillon Road be fully improved along the entire property frontage. The City Council could, if so desired, defer these improvements by covenant. (See Engineering Conditions, Dillon Road, Nos.4, 6, and 8.) ENERGY- INDUSTRIAL ZONING TEXT AMENDMENT—SECOND READING: The amendment will allow for the development of the proposed Ocotillo Energy Facility in the E-I Zone, located north of Dillon Road, east of Diablo Road. The City's E-1 Zone is located north and south of Interstate 10. The City Council adopted, by first reading, the zoning text amendment to allow natural gas-fueled power plants at its August 16, 2001 meeting. The action before the City Council is adoption of the second reading. If the second reading is approved, the ordinance amendment will go into effect 30 days thereafter. The E-I Zone currently provides for alternative energy, co-generation, and limited industrial uses. The intent of the ordinance amendment is to expand the type of energy related uses to include natural gas-fueled power generation facilities. The proposed amendment will not substantially change the stated purpose of the zone which is to provide for energy uses. Page 4 of 5 September 05, 2001 City Council Staff Report Ocotillo Energy Facility PLANNING COMMISSION ACTION: At its August 22, 2001 meeting, by a vote of 3-2-2 (Klatchko and Caffery dissenting; Jurasky and Raya absent), the Planning Commission recommended approval of the proposed Ocotillo Power Plant subject to conditions. In making its recommendation, the Planning Commission recommended that the City Council evaluate the following information: A. Air Quality—that the City Council obtain and review additional information and retain an independent expert to evaluate air quality impacts (Phase 1 and II)— (The City has hired two air quality consultants); B. Emission Offsets/Credits—that the applicant, SCAQMD, and the CEC make every effort to ensure that emission offsets/credits are obtained in the Salton Sea Air Basin — (see Condition of Approval No.14, Planning Division); C. Ground Water Quality — that additional information be reviewed regarding water consumption and impacts to the aquifer — (The applicant will provide information from DWA at the meeting); D. Desert Hot Springs — that a method be considered whereby Desert Hot Springs receives community benefits — (Noted in staff report); E. Street Paving —that paving of local roadways in the immediate project vicinity be considered as partof the airquality mitigation program—(See MOU and"B"above); F. Construction Hours — that hours of construction, operation, and maintenance be limited (including the use of temporary and permanent lighting and generators) to mitigate impacts to nearby residents—(See Condition of Approval No.16, Planning Division); G. Community Benefits — that the City Council enter into a binding agreement regarding community benefits prior to City Council approval of the project. A key provision should be designating the City, its designee,and surrounding communities as "Most Favored Customer"with regards to direct power purchases as allowed by law in the future—(See proposed MOU). Page 5 of 5 September 05, 2001 City Council Staff Report Ocotillo Energy Facility With these concerns and recommended conditions, the Planning Commission supported the project. A copy of the draft Planning Commission minutes is attached. P �} e-! 2 �, w Director cr0lanning and Building City Manager ATTACHMENTS: 1. Draft Planning Commission Minutes, August 22, 2001 2. CEC Ocotillo Energy Project, Phase I: Status Report No.1 3. MOU (to be provided under separate cover) 4. Air Quality Reports (to be provided under separate cover) 5. Minute Order 6. Resolution 7. Ordinance '9457 CITY OF PALM SPRINGS PLANNING COMMISSION MEETING " August 22, 2001 1:30 p.m. Council Chambers, City Hall 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 FY 00-01 ROLL CALL Present Present Excused Absences This Meeting To Date To Date Philip Klatchko, Chr. X 3 1 Jeffrey Jurasky, V,Chr. 3 1 Ralph Raya 3 1 Jon Shoenberger X 4 0 Stephen Payne 3 1 Jon Caffery X 4 0 Mark Matthews X 4 0 STAFF PRESENT Douglas R. Evans, Director of Planning & Building Hope Sullivan, Planning Manager Alex Meyerhoff, Principal Planner Michele Boyd, Administrative Coordinator **WW* Chairman Klatchko called the meeting to order at 1:40 p.m. * ** W W The August 22, 2001 agenda was available for public access at the City Hall exterior bulletin board and the Department of Planning & Building counter by 4:00 p.m., Friday, August 17, 2001. ** W* * APPROVAL OF MINUTES: M/S/C (Shoenberger/Payne 5-0, 2 absent) to approve the minutes of July 25, 2001 as presented. * # W * W r� Page 2 of 12 Planning Commission Minutes August 22, 2001 PUBLIC COMMENTS: Chairman Klatchko opened Public Comments. Mr. Arthur Lyons addressed the Planning Commission regarding the application by Ocotillo/InterGen (agenda item #7) to state that this opportunity for the City of Palm Springs to regain its position as a leader in state-of-the-art energy technology will also bring economic benefits to the community, as well. He also stated that, with the opening of new energy facilities, older and less efficient facilities can be demolished which will improve the air quality due to the newer gas-fired facilities'improved emission standards. He stated that, in comparison to the wind turbines, the proposed facility will not be a significant visual impact. There being no further appearances, Public Comments was closed at 1:45 p.m. /az*4 7 Page 5 of 12 Planning Commission Minutes August 22, 2001 Case No. 5.0874B — Review of an Application for Certification by the California Energy Commission for a proposed 456 Megawatt(MW) natural gas fueled electrical generation facility on 160 acres, on APNs 668-270-010 and 668-270-011, located at the north east corner of Dillon Road and Diablo Road, Zone E-I, Section 9, T3S, R4E, SBBM. Continued from the July 25, 2001 Planning Commission meeting. Director reported that at its special meeting of August 16, 2001, the City Council approved the first reading of the proposed text amendment of the Zoning Ordinance to allow natural gas fueled electrical generation in the Energy Industrial (E-1)zone as documented in City Council Resolution 20159. He stated that, at today's meeting, the Planning Commission must consider the project I -► #1 �► Page 6 of 12 Planning Commission Minutes August 22, 2001 itself and possible recommended Conditions of Approval, which will then be reviewed by the City Council, and,finally, the lead agency—the California Energy Commission (CEC). He clarified that the Planning Commission is not obligated to give its support to the project (i.e. that the facility is in the City of Palm Springs and, therefore, it is appropriate for the Planning Commission to consider taking a position regardless of ultimate approval authority). He stated that the CEC imposed all of the Planning Commission and City Council recommendations as Conditions of Approval for the recently on-line 135-megawatt Indigo Peaker Plant — that the City has been successful in communicating its requirements to the CEC. He reported that the CEC is preparing the functional equivalent to a CEQA document and stated that the City Council wants to review this document and the Air Quality report prior to possible action at its meeting of September 05, 2001. He stated that the City is in process of contracting with an Air Quality specialist to advise the City Council on interpreting the air quality methodology and data from South Coast Air Quality Managment District (SCAQMD) and applicant. He reported that staff has worked to refine the proposed Community Benefits in preparation of crafting a binding agreement with InterGen. He stated that the benefits include focusing emission offsets and credits in the immediate community and in the Salton Sea Air Basin. He stated that staff is working to determine whether the City could buy power at favorable rates at some time in the future, as well. Commissioner Shoenberger asked whether or not the reports(e.g. Water and Air Quality) reflect the simple-cycle (Phase 1) or the combined-cycle (Phase II) operation. Director reported that the single-cycle operation is the worst case scenario for emissions and productivity— that when the plant transitions to the combined cycle, emissions drop and better technology is available for the exhaust system. He confirmed that it is the City Council's desire and staff's objective to retain specialist(s) to review and advise regarding potential air quality impacts. Commissioner Caffery asked what the impact would be to the City if the applicant moved the proposed project to the east into the Sphere of Influence, but out of the actual City Limits. Director reported that the City would then lose any benefit to the City. Director reiterated the statement made by the applicant at the July 25, 2001 Planning Commission meeting which indicated thatthe proposed site is the onlyviable site forthe facility underthe Expedited Permitting Cycle and that moving it to an alternate location is not feasible without starting over. He also stated that the CEC, under certain regulatory criteria and with certain findings, can override local regulation. Chairman Klatchko opened the Public Hearing at 4:37 p.m. Mr. Harold Stone addressed the Planning Commission to state that, during the 2:00 p.m. public hearing telephone conference with the applicant, the City, and the CEC, a CEC representative stated that the City of Palm Springs does not have to rush. He stated that he felt the fact that the air quality consultant would not be available until after the Planning Commission makes its recommendation is unfortunate. He submitted an e-mail from Mr. Knut Beruldsen regarding the Indigo Energy project emissions which is on file in the Planning Division. He also submitted a copy of the August 17, 2001 Order Granting Petition to Intervene finding him a legal Intervener / 2A9 Page 7 of 12 Planning Commission Minutes August 22, 2001 to the proposed facility. He referenced the closure of the Norton Air Force Base and the $3.5 million in credits which were sold for similar mitigation purposes. He stated that whatever community benefits the City is provided, the applicant will have to financially recoup those costs from its customers. He urged the Planning Commission to wait to make its recommendation until after an independent air quality specialist can be consulted. Mr. Henry Hohenstein, AICP, Community Development Director for the City of Desert Hot Springs, addressed the Planning Commission to state that the City of Desert Hot Springs (DHS) requests that the City Council defer action on recommending Conditions of Approval to the CEC until the zoning text amendment has been reviewed pursuant to CEQA and also that the City demand that the CEC analyze potential environmental impacts to DHS (including visual, noise, night sky, and water). He stated that the prevailing wind from the subject site blows directly toward DHS and three schools in that city. He stated that the City of DHS requests that this matter be continued to allow that city's staff time to determine whether or not the recommended Conditions of Approval will be both adequate and feasible with respect to mitigating the environmental impacts that the residents of DHS will have to endure for the life of the project. In addition to environmental impacts, he asked that an analysis of potential impacts to the resort spa tourism and resort residential economies be done. He stated that, although DHS will suffer from the negative impacts, it will not benefit from the economic benefits proposed for the City of Palm Springs. He further asked that the Planning Commission define "Community" for use with the proposed "Community Benefits." He stated that some DHS schools and senior citizen homes are closer to the proposed project than most residential areas of Palm Springs. He stated that the Coachella Valley Association of Governments is working diligently to improve PM-10 levels as the valley is at non-attainment levels and at risk of losing Federal transportation and housing money; therefore, he urged, the Planning Commission should recommend that roadway paving be done around the plant to minimize PM-10 impacts. He also asked that fire fighting resources are reviewed and stated that it would be possible that the City of DHS Fire Services would arrive at the subject site more quickly than the City of Palm Springs units and that, therefore, proposed training should include the City of DHS firefighters. He stated that, page 8 of the July 25, 2001 Planning Commission staff report ("Proposed Mitigation Measures) has a typo and that the first sentence of that paragraph should say, "... through the City of DHS and County of Riverside..." He stated that he would like to understand the benefit of having the proposed plant in the area when the power goes directly into the grid. He clarified that the City of DHS is not against the project but is looking for information and Conditions of Approval which would mitigate impacts to that city. He asked that the Planning Commission defer action until the City Council action regarding the zoning text amendment be properly reviewed according to CEQA. Ms. Theresa Covey, resident of North Palm Springs,addressed the Planning Commission to state that if the plant is moved to Riverside County, the applicant would have to begin the entire application process again for the new site which would allow more time for review. She stated that every city and agency in the Coachella Valley should have the opportunity to intervene. She stated that mitigation does not assure clean air. She stated that in 1995 an Environmental Impact Report stated that this area is not recommended for fossil fuel production—that it be an alternative energy area. She stated that the General Plan does not allow for mitigation. She described the blowsand at Interstate 10 and Gene Autry Trail as PM-10 and stated that the proposed project would exchange the blowsand for sooty burnt carbon. She stated that the General Plan states /:k4/O Page 8 of 12 - Planning Commission Minutes August 22, 2001 that energy facilities in this area may not create smog, gas odor, dust, sound vibrations, or light which may be obnoxious or offensive. Mr. Daryl Gilbreathe addressed the Planning Commission to state that the stacks of the proposed facility are too high and that the plant will generate enough energy for 2.5 million people which is far more than needed in the Coachella Valley. He stated that the phasing is misleading — that although Phase I may be relatively acceptable, Phase II will be unacceptable. He stated that the wind that sweeps through the area will be full of smog and that the hours of operation for Phase 11 will be longer than proposed for Phase I. He stated that the location of the Torres-Martinez plant at the bottom of the valley is preferable to this site. He asked that the Planning Commission direct staff to annex the property immediately adjacent to the City Limits to be in position of authority if the site is proposed to be moved out of City Limits. He stated that estimated revenue to the City from this project is$1 million per year and that represents only 2-3% of the City budget. He asked if 2-3% of the budget is worth sacrificing the valley's air quality. He stated that the National Park Service of the Federal Government has many questions regarding the proposed project and its potential impacts to animals and plants and that the Planning Commission should be as concerned about the citizens. He urged the Planning Commission to delay action until more information is received and the City has retained an air quality expert. Mr. Tom Covey, resident of North Palm Springs, addressed the Planning Commission to state that he attended the special City Council meeting on August 16,2001 and that his impression from that meeting is that the project will go through. He therefore asked that the Planning Commission review proposed hours of operation and construction in order to reduce nighttime noise and disturbances to his family who live very close to the subject site. He referenced the successful Kings County Farm Bureau's suit against the City of Hanford. Mr. Bob Hren, applicant, addressed the Planning Commission to state the InterGen is not actively looking at moving the site for the proposed facility;that the company had looked at other sites but none were appropriate for the use. He explained that a normal construction schedule is two years and permitting is one year and that would mean the facility would not be open in time to help with the current energy crisis which has been the Governor's mandate for executing the expedited review system. He stated that the people of California have done an admirable job in conserving energy this summer and that the proposed project will attempt to help the state meet the shortage expected in the summer of 2002. He stated that it is natural for people to think of this project as the stereotypical, smoke-belching factory but that the proposed facility is not like that stereotype at all—that it will have the lowest achievable emissions and will reduce air pollution by 1.2 times through mitigation. He stated that, before being licensed by the SCAQMD, the application must prove that even the most sensitive population (the very young and the very old)is not affected by the project. He stated that SCAQMD has the most stringent requirements of anywhere in the world and that many of the concerns stated at the public hearings are not based in reality. He requested that the Planning Commission approve the recommended Conditions of Approval as crafted by staff and move the application on to the City Council for review. Mr. Bob McDonald addressed the Planning Commission to state that neighboring communities take sales tax revenue to the east valley and referenced Plaza Motors and Wal-Mart as examples. He stated that, in order to keep a public service that the community needs and wants,the Planning /d4 11 Page 9 of 12 Planning Commission Minutes August 22, 2001 Commission should recommend approval of this revenue-producing project. He stated that direct access to power purchasing should also be possible. He asked that the Conditions of Approval should include a demand of direct access and the expanding valley should also be able to take advantage of direct access to power purchasing. He suggested that the applicant could consider purchasing the homes of property owners within a certain radius, such as 1/4 mile, if they find the addition of the proposed facility too great an impact. He suggested that having a full spectrum of energy technology could be an attraction for the City. Mr. John Cotton, North Palm Springs resident, addressed the Planning Commission to state that he lived 350 feet from the proposed project and asked that the Planning Commission impose Conditions of Approval which include limiting lighting and noise and the use of generators to allow his family the ability to sleep at night and suggested that 8:00 p.m. or 9:00 p.m. may be a reasonable cut off time. He asked that motion detectors be set at a reasonable sensitivity in order to prevent an animal from triggering the light which would then stay on for hours. He asked that the property boundary on Diablo Road be landscaped to screen the facility as much as possible. Mr. Fred Noble, Wintec Energy, addressed the Planning Commission to state that, on the recent field trip to the site, it was apparent that the windmills which are 275' at the blade arc will prevent the 180 ft. stacks of the proposed facility from standing out as a monolith. He stated that the Southern California Edison power line towers are taller than the windmills. He stated that the General Plan has been amended to allow co-generation (the burning of natural gas and the subsequent use of the waste heat) facilities in the E-1 zone and it was always intended to allow natural gas. He stated that he felt the people of DHS are honest and sincere and that there will be an impact visually; however, the wind blows at 275' true (just north of west) for 92% of the year, missing DHS. He clarified that the nearest house to the subject facility is 1,875 feet from the center line of Diablo Road plus the distance from that point to the residence. He stated that tactics to delay in order to kill a project are disingenuous. He stated that the project will bring more than$35 million in property tax alone to the City over the life of the project. He reported that emissions are well below the standards set for health by the SCAQMD and that there is no discernable impact to the people of the Coachella Valley. There being no further appearances, the Public Hearing was closed at 5:28 p.m. Director stated that any proposed community benefits package will more appropriately be addressed by the City Manager and the City Council and that staff is working to refine the benefit package to include a reasonable estimate of revenues. He stated that staff wants the City Council to know precisely what the benefits will be before any possible action recommending the project to the CEC. Commissioner Shoenberger expressed concern thatthe air quality information from the SCAQMD is not comprehensible without being an air quality specialist and suggested that an independent expert be engaged to advise the City Council prior to any action. He also stated that the applicant has repeatedly told the Planning Commission that there will be a net reduction in air pollution because of offsets; however, those offsets/credits may be purchased anywhere in Southern California. He stated that air quality is one of the foremost concerns regarding this project and he suggested that the City, because of this potential contribution to solving the energy crisis, / ;L4 Page 10 of 12 . Planning Commission Minutes August 22, 2001 should make an effort to get the CEC to require that those offsets/credits be within the Salton Sea Air Basin. He also stated that the environmental issue of the aquifer is concerning in that there is insufficient information for review at this time. He stated that a water shortage is eminent for the Coachella Valley and could be much more significant that the energy crisis. He suggested that the Desert Water Agency advise the City Council on the proposed facility's impact on water resources and interpret information so that it is understandable to the general public. He further stated that much care should be taken to distinguish between Phase I information and Phase II as the Phase I information is not reflective of what will soon be the actual plant. He asked that the City Council be given complete and accurate information. He asked for information on a possible energy glut and who is overseeing the amount of energy being produced in order to avoid an overabundance of energy facilities. He stated that accelerated permitting is a fractured and disorganized process in which mistakes will likely be made. Commissioner Caffery stated that he does not believe that a four-month permitting process allows sufficient time to thoroughly review all critical information. Commissioner Payne stated that he appreciates Commissioner Shoenberger's comments; however,feels that, because no new energy plants have been built in the past 13 years and given the rate of growth in the state, that new plants are necessary and that, in a conversation with Senator Battin, he has been told that all energy plants of every type receive a public outcry. At the same time, he said,these same people complain if there are energy blackouts. He stated that if ever there is a surplus of energy,that would not necessarily be a bad thing, and could help rates. He stated that he feels power plants will never be aesthetically pleasing —that their purpose is to provide energy in order to allow for growth and provide the services that all communities desire. He stated that, as the Coachella Valley has asked to be exempted from rolling blackouts, we should not then also say that we will not allow a new energy facility to be in our City. He encouraged the Planning Commission to move along as expeditiously as prudence will allow. Commissioner Matthews stated that, due to the location of the Devers substation and the high power gas line, the proposed site is probably the best. He reported that, during a site visit to the Indigo Power Plant, the noise from the facility was indistinguishable. He reported that he called the Chairman of the Desert Water Agency to get an informal opinion regarding possible impacts of the proposed facility on the aquifer and that he felt, from that conversation, that the agency is comfortable with the proposed use of water. He stated that, regarding impacts to air quality, the proposed plant is the most efficient possible and that the amount of Nox emissions is substantially lower than that of, for example, the power plant in Redondo Beach. He stated that any conceivable health impacts of the emissions could not be as significant as those that would be caused by a power outage. He suggested that the City should be treated as a Most Favored Customer and be automatically given the most favorable rates available by law. He stated that the hospitality industry is the core of the City's economy and that hotels are taking considerable measures to remain open despite outages and high energy costs. He also stated that he felt staff and City Council is diligently obtaining knowledge in order to make the best possible recommendation. He stated that the City of DHS should share in certain community benefits as that city will experience some impact from the proposed facility. Page 11 of 12 Planning Commission Minutes August 22, 2001 Commissioner Caffery agreed with Commissioner Matthews; however,cautioned that negotiations for possible community benefits are not complete and,therefore,that it maybe premature to make a recommendation. Commissioner Matthews asserted that time is of the essence for this project and to prevent outages. He did agree that the proposed community benefits should be captured in writing prior to possible City Council recommendation of the proposed facility. He stated that it is the City's responsibility to make the best recommendations as possible for the citizens of the Coachella Valley and pass them on to the permitting authority (the CEC). Chairman Klatchko stated that he had reservations about making a recommendation without having all the information available for review. In addition, he stated that information that had been submitted was, at times, not accurate, in that it was misleading or confusing or both. He referenced the photo simulations submitted to the Planning Commission at its meeting of July 25, 2001forexample. He reminded the Commissioners that it took Commissioner Caffery's repeating his question regarding the clouds/smoke plumes depicted five times before it was admitted by the applicant's representative that it was indeed a vapor plume and not clouds. He suggested that the applicant was not immediately forthcoming or candid in this instance. He stated that, although he does not wish to obstruct the process, his concerns include having a formal agreement in writing prior to City Council action; direct access to power purchasing if legally feasible and that the applicant should strive to allow that; that the City and area of influence be treated with Most Favored Nation status and given preferential rates; and that the City and area of influence should not be subject to rolling blackouts by virtue of having a power plant which far exceeds the energy used locally. He further stated that he is uncomfortable with the air and water quality information supplied to date and hopes that the City Council will satisfy itself in these matters. He stated that the proposed facility is ugly, but that it is an ugly area now due to the wind mills so he felt the proposed facility would not be a significant visual impact. Commissioner Caffery stated that, during a recent site visit, a representative from Ocotillo/InterGen stated that the vapor plumes would only be visible during one percent of the year (four days) and that this seems acceptable but should be captured in writing. M/S/C (Shoenberger/Matthews 3-2, 2 absent, Klatchko and Caffery dissenting) to recommend approval of the project and Conditions of Approval as presented with the following concerns sent to the City Council for consideration: A. Air Quality — that the City Council obtain and review additional information and retain an independent expert to evaluate air quality impacts (Phase 1 and II); B. Emission Offsets/Credits—that the applicant, SCAQMD, and the CEC make every effort to ensure that emission offsets/credits are obtained in the Salton Sea Air Basin; C. Ground Water Quality— that additional information be reviewed regarding water consumption and impacts to the aquifer; /:1Aiy Page 12 of 12 Planning Commission Minutes August 22, 2001 D. Desert Hot Springs — that a method be considered whereby Desert Hot Springs receives community benefits; E. Street Paving —that paving of local roadways in the immediate project vicinity be considered as part of the air quality mitigation program; F. Construction Hours —that hours of construction, operation, and maintenance be limited (including the use of temporary and permanent lighting and generators) to mitigate impacts to nearby residents. G. Community Benefits — that the City Council enter into a binding agreement regarding community benefits prior to City Council approval of the project. A key provision should be designating the City, its designee, and surrounding communities as "Most Favored Customer"with regards to direct power purchases as allowed by law in the future. There being no further business, the meeting was adjourned at 6:20 p.m. a State Of California RECEIVED The Resources Agency of California Memorandum AUG 2 ] 2001 Date : August 20, 2001 Telephone; (916) 653-0159 �� rfil IG qtIVOON _. To Robert Pernell, Comm i t o rC01 Ing emibci File: 004io C K,ET William J. Keese, Chariman and Associate Member -0-8 DATER 2 0 Zan From California Energy Commission - Marc Pryor J, , , 1516 Ninth Street Project Manager RECD 469 t 0 2091 Sacramento, CA 95814-5512 Subject OCOTILLO ENERGY PROJECT, PHASE I (01-AFC-8): STATUS REPORT NO. 1 On June 22, 2001, the Ocotillo Energy Project was accepted as data adequate for the 4-month,licensing process of the California Energy Commission. This process was recently established by the state legislature to expedite the review of simple cycle facilities that can be online by December 31, 2002, and would not cause a significant impact to the transmission system, environmental resources, public health and safety, and comply with local, state, and federal laws and regulations. To maintain the integrity of the 4-month process and in accordance with the Committee Scheduling Order, we expect to issue the Staff Assessment (SA) for the Ocotillo project on August 31, 2001. In the SA, the issues and potential impacts will be addressed and mitigation to impacts will be proposed. The analysis and recommendations will be based on the AFC and filings of the applicant; information from local, state and federal agencies; and staff's independent research. However, due to the array of issues and potential for unmitigated environmental impacts, staff may not be able to recommend approval of the project at this time. Potential issues include nonconformance with current zoning requirements, air quality, biological resources, and water resources. In addition the project has received recent attention and concern of the public. These matters are discussed below. ZONING AMENDMENT The City Council of Palms Springs continued its August 1 consideration of an amendment to its zoning code to a later date. The amendment would add, "natural gas fueled electrical generation facilities" as an allowable use within Energy-Industrial (E-1) zones, such as at the proposed project site. The Planning and Building Director's August 1 report to the City Council contains two public comment submittals, both in opposition to the project. The City Council held a special session on August 16 in order to conduct the first reading and vote. The matter passed 3 to 0, with 2 Councilmembers absent. The Council plans to conduct the second hearing and final vote on September 5 when all 5 Councilmembers are expected to attend. 1;z4 o PROOF OF SERVICE(REVISED ')P ' OWNAL MAILED FROM-SACRAMEWO ON � 20 49< ___ Robert Pernell, Committee Presiding Member William J. Keese August 20, 2001 Page 2 COUNTY HEIGHT LIMITATIONS The project's proposed transmission towers range from 73 to 115 feet in height and crosses land that is under the jurisdiction of Riverside County. Riverside County code requires a variance for structures, including transmission line towers, that are in excess of 105 feet in height. According to County Planning staff, the applicant has not applied for a height variance from Riverside County for the transmission line towers (Flores 8/20/01). AIR QUALITY--PRELIMINARY DETERMINATION OF COMPLIANCE South Coast Air Quality Management District (District) provided what we understand to be a "status update" or "draft" Preliminary Determination of Compliance (PDOC) on August 10. District staff had committed to provide the PDOC on, or about, July 31. However, outstanding issues have prevented the completion of the PDOC. The timely receipt of a complete PDOC was a major factor in staff's recommendation that the project remain in the 4-month process rather than be shifted to the 12-month process. We understand the District does not intend to circulate the current "draft" PDOC for public comment. The normal District procedure for a PDOC is to publicly notice availability of the PDOC with the provision for a 30-day public comment period. This process must still occur. The unresolved issues listed below makes the "draft" PDOC insufficient for our purposes. The current "draft" PDOC cannot be relied upon in the Staff Analysis.to provide a basis for a recommendation to the Committee. In its "draft" PDOC, District staff notes the following issues that must be resolved prior to the District determining that the project would comply with all applicable District Rules and Regulations (quotations are from the PDOC cover letter of August 10, signed by Carol Coy, Deputy Executive Officer and addressed to Bob Therkelsen): 1. Best Available Control Technology (BACT) for Carbon Monoxide (CO). "Since the project site is in the Salton Sea Air Basin, which is CO attainment, BACT for CO is required to PSD [Prevention of Significant Deterioration] regulations. For gas turbines, operating in simple cycle mode, Lowest Achievable Emission Rate (LAER) for CO in a CO non-attainment area is 6 ppmv [parts per million, volume]. The applicant has proposed 7.2 ppmv. The applicant has been made aware of this and is expected to provide additional information to resolve this issue in a near future." �� 417 Robert Pernell, Committee Presiding Member William J. Keese August 20, 2001 Page 3 2. Offsets: "Since the project site is in [the] Salton Sea Air Basin, which is CO attainment, CO offsets are not required. The applicant has been reminded that [a] complete offset package for the other four criteria pollutants (VOC, NOx, SOx, and PM10) is necessary before permits can be issued. Recently, the applicant has informed AQMD that they intend to join the NOx RECLAIM program, which will allow them to seek NOx offsets through the RECLIAM program. The applicant has been asked to send an official letter for this election. Although a final offset package has yet to be submitted to the AQMD, the applicant informed us during a teleconference on August 2, 2001, that they have acquired partial offsets for NOx, VOC, and PM10." 3. Modeling: "AQMD staff has analyzed the emission data and corresponding modeling analysis to verify compliance with AQMD Rule[s] 1303 (New Source Review), 1401 (health risk), and Regulation XVII (PSD). Staff has determined that the modeling analysis for the Ocotillo project meets our rule requirements. However, the regional haze impacts at three Class I area locations will be evaluated by the Federal Land Managers to verify compliance with National Park Service (NPS) and U. S. Forest Service (USFS) standards. During a teleconference on August 2, 2001, the NPS has [sic] indicated that they wanted the applicant to run a cumulative impact analysis of all sources within a 100-km radius." In addition, the applicant has not submitted the cumulative air dispersion analysis and the regional visual impact assessment requested by the National Park Service. Also, in discussions with the US EPA, there still may be concerns about the appropriate NOx lowest achievable emission rate (LAER) levels that are currently proposed for the project. (LAER is a federal requirement and is similar to BACT.) BIOLOGICAL RESOURCES--BIRD FLYWAY MITIGATION PLAN FOR EVAPORATION POND The applicant provided a draft bird flyway mitigation plan as part of its August 10 response to the Scheduling Order. This draft summarizes the applicant's approach and design options for eliminating bird attraction that may result from the proposed evaporation pond system. The applicant noted that this plan.would be docketed separately as an appendix to its Preliminary Engineering Package for Wastewater Evaporation Pond. No timeframe was given for when the package will be docketed. Specifics about evaporation pond and bird flyway mitigation may not be finalized in the SA filed on August 31 , 2001 , and would be included in the SA addendum issued after the SA workshop that will be held in early September. Robert Pernell, Committee Presiding Member William J. Keese August 20, 2001 Page 4 DESERT TORTOISE MITIGATION PLAN A draft desert tortoise habitat compensation plan was included in the applicant's August 10 filing. Staff is evaluating the information and is continuing its discussions with US Fish and Wildlife Service regarding mitigation. Specifics about offsite acreage may not be finalized in the SA and therefore would be included in the SA addendum issued after the SA workshop that will be held in early September. ALTERNATIVE PROPOSALS FOR WASTEWATER DISPOSAL In its August 10 submittal, the applicant addressed wastewater disposal options by referencing its data responses. Staff will provide an analysis of options in the water resources section of the SA. PUBLIC CONCERNS To date, more than 15 written public comments have been submitted to the Energy Commission. Many more verbal comments were provided at the Informational Hearing. Most of the comments expressed opposition to the project, many citing concerns about air quality impacts and the 4-month process. In addition, the City of Palm Springs has received written comments in its preparation of an amendment to the zoning code. Many residents leave the area during the summer and may not be aware of the proposed project and the newly constructed Indigo Power Plant nearby. MSP:msp cc: Ocotillo POS list Docket OCOTILLO ENERGY FACILITY— CASE NO. 5.0874B PROJECT LOCATED NORTH OF DILLON ROAD, EAST OF DIABLO ROAD, ZONE: E-1 (ENERGY/ INDUSTRIAL) AND W (WATERCOURSE), SECTION 9, T3S, R4E, SBBM. RECOMMENDATIONS TO CALIFORNIA ENERGY COMMISSION Any agreements, easements or covenants required to be entered into shall be in a form approved by the City Attorney. 1. Ocotillo Energy LP, an affiliate of InterGen North America, the project applicant, shall defend, indemnify, and hold harmless the City of Palm Springs, its agents, officers, and employees from any claim, action, or proceeding against the City of Palm Springs or its agents, officers or employees to attach, set aside, void or annul, an approval of the City of Palm Springs, its legislative body, advisory agencies, or administrative officers concerning the Ocotillo Energy Project (Case No. 5.0874B). The City of Palm Springs will promptly notify the Ocotillo Energy LP of any such claim, action, or proceeding against the City of Palm Springs and the applicant will either undertake defense of the matter and pay the City's associated legal costs or will advance funds to pay for defense of the matter by the City Attorney. If the City of Palm Springs fails to promptly notify the applicant of any such claim, action or proceeding or fails to cooperate fully in the defense,the applicant shall not, thereafter, be responsible to defend, indemnify, or hold harmless the City of Palm Springs. Notwithstanding the foregoing, the City retains the right to settle or abandon the matter without the applicant's consent but should it do so, the City shall waive the indemnification herein, except,the City's decision to settle or abandon a matterfollowing an adverse(final) judgement or failure to appeal,shall not cause a waiver of the indemnification rights herein. 2. Final landscaping, irrigation, entry statement, kiosk and adequate entry, exterior lighting, and fencing plans shall be submitted for approval by the Department of Planning and Building prior to issuance of an operations permit.Additional plant material, including trees, shrubs, vines and groundcover, shall be required to buffer the visual impact of the project from nearby residential areas and Dillon Road. Landscape plans shall be approved by the Riverside County Agricultural Commissioner's Office prior to submittal. The purpose of the Agricultural Commissioner's review is for quarantined plant material. 3. The project is subject to the City of Palm Springs Water Efficient Landscape Ordinance. Refer to Chapter 8,60 of the Municipal Code for specific requirements. 4. Prior to issuance of a grading permit, a Fugitive Dust and Erosion Control Plan shall be submitted and approved by the CEC. Refer to Chapter 8.50 of the Municipal Code for specific requirements. A copy shall be provided to the Building Official and City Engineer for review and comment. 5. All proposed trees within the public right-of-way and within 10 feet of the public sidewalk and/or curb shall have City approved deep root barriers installed per City of Palm Springs Engineering specifications. /Zq N!pe Page 2 of 11 r- t Ocotillo Project m a dationsto the CaliforniaCalifo n a Energy Recommendations Commission 6. All proposed signs shall comply with Section 93.20 of the Palm Springs Zoning Ordinance. A copy of the exterior lighting plan shall be submitted to the Planning Manager for review and comment. 7. An exterior lighting plan, in accordance with the Palm Springs Zoning Ordinance Section 93.21.00, Outdoor Lighting Standards, shall be implemented in order to reduce glare. If lights are proposed to be mounted on buildings,down-lights shall be utilized to reduce glare except for lighting necessary to respond to emergency situations. Emergency lighting shall be utilized to respond to emergency situations only and shall be off at all other times. A copy of the exterior lighting plan shall be submitted to the Planning Manager for review and comment. 8. This project shall be subject to Chapters 2.24 and 3.37 of the Municipal Code regarding public art. The project shall either provide public art or payment of an in-lieu fee. In the case of the in-lieu fee, the fee shall be based upon the total building permit valuation as calculated pursuant to the valuation table in the Uniform Building Code,the fee being 112% for commercial projects or 1/4% for residential projects with first$100,000 of total building permit valuation for individual single-family units exempt. Should the public art be located on the project site, said location shall be reviewed and approved by the Director of Planning and Building and the Public Arts Commission, and the property owner shall enter into a recorded agreement to maintain the art work and protect the public rights of access and viewing. 9. No outside storage of any kind shall be permitted except as approved as a part of the proposed plan. All storage shall be fully screened per Section 92.17 of the Palm Springs Zoning Ordinance. 10. Parking areas shall be constructed in accordance with Section 93.06 of the Palm Springs Zoning Ordinance. 11. Pursuant to Section 11.74 of the Municipal Code, the proposed project shall operate in accordance with City noise standards. Information provided in the noise study indicates that the project has the potential to exceed allowable noise levels during evening and night time hours. The CEC will be responsible for ensuring that the applicant mitigates project- generated noise impacts to a level of less than significant. 12. Project shall comply with terms and conditions of any separate Community Benefits/Memorandum of Understanding program approved by the City Council. A copy is attached. 13. The main project entry shall be upgraded to create a project statement which identifies the Ocotillo Energy Facility. The upgraded entry shall include decorative fencing and/or walls, landscape, identification sign with project information, and a limited short-term pullout or parking area adjacent to the project information sign. Page 3 of 11 Ocotillo Energy Project— Case No. 5.08746 ' ° Recommendations to the California Energy Commission 14. That InterGen, SCAQMD,ARB, and CEC shall,to the greatest extent allowable by law,and where feasible , direct air quality credits and mitigation toward projects which will directly benefit the Salton Sea Air Basin. Specific air quality credits and mitigation shall be focused on reducing PM-10 to a level which will not hinder bringing the Salton Sea Air Basin into attainment for PM-10. Mitigation may include roadway improvements, purchase of additional street sweepers, conversion of fleet vehicles to alternative fuels, and other mitigation measures which reduce PM-10 emissions. 15. That a permit to relocate existing Wind Energy Commission Systems (WECS) shall be submitted to the City and approved by the City prior to relocation. 16. That the CEC shall ensure that construction activity, including but not limited to grading, temporary generators,temporary lighting,and use of equipment,does not impact residents who live in the project vicinity. The City's Ordinance(copy attached)regarding construction activities shall be considered by the CEC. A complaint system shall be implemented to deal with construction activity complaints by surrounding residents. WASTE DISPOSAL SERVICES: 1. A trash enclosure(s), subject to approved City construction details, is required. See attached specifications. BUILDING DEPARTMENT: 1. The site is located less than 5 kilometers from the Southern San Andreas Fault, a type A fault as noted on the map of "Active Fault Near-Source Zones." This map is used in conjunction with the 1998 California Building Codes tables 16-S and 160T in the structural design of the facility. 2. The facility should be categorized in Occupancy Category 3 entitled "Special Occupancy Structures" as defined in the California Building Codes table 16-K provided that the aqueous ammonium hydroxide storage tanks are not housed within a building or structure. The occupancy category will define the seismic and wind design importance factors to be used in the structural design of the facility. 3. Since the facility is defined in Table 16-K as a category 3 structure, the site should require "structural observation" as defined in 1998 California Building Codes section 1702. 4. The site is located in seismic zone 4 and should conform to all California Building Codes design criteria for that seismic zone. 5. The City of Palm Springs is located in an 80 mph exposure C minimum wind design area. Due to the site location and height of the exhaust stack, it would be highly advisable to employ the more stringent wind design criteria used for the wind turbine support columns on nearby sites. Page 4 of 11 Ocotillo Energy Project— Case No. 5.0874B Recommendations to the California Energy Commission t Y :r'4G� ,FI 6. The applicant shall make the appropriate construction tax payment to the City. FIRE: 1. Provide a "Knox" key box or gate switch for emergency, after hours, access. 2. Provide address numbers that are large enough to be visible from the frontage road . 3. Priorto operation of the facility,training shall be provided to emergency response personnel regarding the appropriate fire suppression methods and other emergency procedures specific to this type of project. ENGINEERING: Before final acceptance of the project, all conditions listed below shall be completed to the satisfaction of the City Engineer. STREETS 1. The Engineering Department recommends deferral of off-site improvement ITEMS 9 THRU-18 at this time due to lack of full improvements in the immediate area. The developer shall enter into a covenant agreeing to construct all mentioned improvements along the entire frontage upon the request of the City of Palm Springs City Engineer at such time as deemed necessary. The covenant shall be submitted with the Grading Plan. The Grading Permit will not be issued until completion of the covenant. 2. Any improvements within the street right-of-way require a City of Palm Springs Encroachment Permit. Work shall be allowed according to Resolution 17950 - Restricting Street Work on Major and Secondary Thoroughfares. 3. Submit street improvement plans prepared by a Registered Civil Engineer to the Engineering Department. The plan(s)shall be approved by the City Engineer prior to issuance of any grading or building permits. Minimum submittal shall include the following, IF applicable: A. Copy of signed Conditions of Approval from Planning Department. B. All agreements and improvement plans approved by City Engineer, IF applicable. DILLON ROAD 4. Construct an 8 inch curb and gutter, 38 feet NORTH of centerline along the entire Page 5 of 11 � Ocotillo Energy Project—Case No. 5.0874B Recommendations to the California Energy Commission frontage of the subject property per City of Palm Springs Standard Drawing No. 200. 5. The driveway approach shall be constructed in accordance with City of Palm Springs Standard Drawing No. 201 and have minimum width of 24 feet. 6. Construct a minimum 8 foot wide sidewalk behind the curb along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 210. 7. Construct a curb ramp meeting current California State Accessibility standards at the NORTHWEST AND NORTHEAST corners of the MAIN DRIVEWAY subject property per City of Palm Springs Std. Dwg. Nos. 212 and 212A. 8. Construct pavement with a minimum pavement section of 5 inch asphalt concrete pavement over 4 inch aggregate base with a minimum subgrade of 24 inches at 95% relative compaction, OR equal, from edge of proposed gutter to centerline along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 110 and 340. The pavement section shall be designed, using "R" values, by a licensed Soils Engineer and submitted to the City Engineer for approval. MELISSA LANE * 9. Construct an 6 inch curb and gutter, 20 feet WEST of centerline along the entire frontage of the subject property per City of Palm Springs Standard Drawing No. 200. * 10. Construct the WEST half of an 8 foot cross gutter and spandrel at the intersection of DILLON ROAD and MELISSA LANE with a flow line parallel to the centerline of DILLON ROAD in accordance with City of Palm Springs Standard Drawing No. 200 and 206. * 11. Construct a minimum 5 foot wide sidewalk behind the curb along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 210. * 12. Construct a curb ramp meeting current California State Accessibility standards at the SOUTHEAST corner of the subject property per City of Palm Springs Std. Dwg. Nos. 212 and 212A. * 13, Construct pavement with a minimum pavement section of 3 inch asphalt concrete pavement over 6 inch aggregate base with a minimum subgrade of 24 inches at 95% relative compaction, OR equal, from edge of proposed gutter to centerline along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 110 and 340. The pavement section shall be designed, using "R" values, by a licensed Soils Engineer and submitted to the City Engineer for approval. /Q4O� V Page 6 of 11 Ocotillo Energy Project— Case No. 5.08746 Recommendations to the California Energy Commission ' -' � • 16T" AVENUE * 14. Construct an 8 inch curb and gutter, 32 feet SOUTH of centerline along the entire frontage of the subject property per City of Palm Springs Standard Drawing No. 200. * 15. Construct the WEST half of an 8 foot cross gutter and spandrel at the intersection of 16T" AVENUE and MELISSA LANE with a flow line parallel to the centerline of 16'AVENUE in accordance with City of Palm Springs Standard Drawing No. 200 and 206. * 16. Construct a minimum 8 footwide sidewalk behind the curb along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 210. * 17. Construct a curb ramp meeting current California State Accessibility standards at the NORTHEAST corner of the subject property per City of Palm Springs Std. Dwg. Nos. 212 and 212A. * 18. Construct pavement with a minimum pavement section of 3 inch asphalt concrete pavement over 6 inch aggregate base with a minimum subgrade of 24 inches at 95% relative compaction, OR equal, from edge of proposed gutter to centerline along the entire frontage in accordance with Cityof Palm Springs Standard Drawing No. 110 and 340. The pavement section shall be designed, using "R"values, by a licensed Soils Engineer and submitted to the City Engineer for approval. SANITARY SEWER 19. Construct private sanitary sewer system in accordance with City of Palm Springs Ordinance No. 1084. Construct laterals from the building to the property line for future connection to the Mission Springs Water District's sewer system. 19A. Developer shall comply with Mission Springs Water District requirements for construction of sanitary sewer mains. 20. Developer shall complete and install all necessary sewer connections to the Mission Springs Water District's sewer system within six (6) months after notice of sewer availability. GRADING 21, A copy of a Title Report prepared/updated within the past 3 months and copies of record documents shall be submitted to the City Engineer with the first submittal of the Grading Plan. 22 The developer shall provide, to the City Engineer, a letter of authorization from all /"') ,q-a �- Page 7 of 11 Ocotillo Energy Project— Case No. 5.0874B Recommendations to the California Energy Commission �`' adjacent property owners whose property will be disturbed during the grading process. 23. Submit a Grading Plan prepared by a Registered Professional to the Engineering Department for plan check. Grading plan shall be submitted to the Planning Departmentfor comments priorto submittal to the Engineering Department.The PM 10 (dust control) Plan shall be submitted to and approved by the Building Division prior to approval of the grading plan. The Grading Plan shall be approved by the City Engineer prior to issuance of any grading or building permits. Minimum submittal includes the following: A. Copy of Planning Department comments regarding the grading plan. B. Copy of signed Conditions of Approval from Planning Department. C. Copy of Site Plan stamped approved and signed by the Planning Department. D. Copy of Title Report prepared/updated within past 3 months. E. Copy of Soils Report, IF required by these conditions. F. Copy of the General Construction Activity Storm Water Permit from the State Water Resources Control Board(Phone No. 916 657-0687)to the City Engineer prior to issuance of the grading permit. 24. Drainage swales shall be provided adjacent to all curbs and sidewalks-3'wide and 6" deep - to keep nuisance water from entering the public streets, roadways, or gutters. 25. Developer shall obtain a General Construction Activity Storm Water Permit from the State Water Resources Control Board (Phone No. (916)-657-0687) and provide a copy of same,when executed, to the City Engineer prior to issuance of the grading permit. 26. In accordance with City of Palm Springs Municipal Code, Section 8.50.00, the developer shall post with the City a cash bond of two thousand dollars($2,000.00) per acre for mitigation measures of erosion/blowsand relating to his property and development. 27. A soils report prepared by a licensed Soils Engineer shall be required for and incorporated as an integral part of the grading plan for the proposed site. A copy of the soils report shall be submitted to the Building Department and to the Engineering Department along with plans,calculations and other information subject 014 Page 8 of 11 Ocotillo Energy Project— Case No. 5.0874B Recommendations to the California Energy Commission to approval by the City Engineer prior to the issuance of the grading permit. 28. Contact the Building Department to get information regarding the preparation of the PM10 (dust control) Plan requirements. 29. In cooperation with the Riverside County Agricultural Commissioner and the California Department of Food and Agriculture Red Imported Fire Ant Project, applicants for grading permits involving a grading plan and involving the import or export of soil will be required to present a clearance document from a Department of Food and Agriculture representative in the form of an approved "Notification of Intent To Move Soil From or Within Quarantined Areas of Orange, Riverside, and Los Angeles Counties"(RIFA Form CA-1)or a verbal release from that office prior to the issuance of the City grading permit. The California Department of Food and Agriculture office is located at 73-710 Fred Waring Drive, Palm Desert. (Phone: 760-776-8208) DRAINAGE 30. The developer shall accept all flows impinging upon his land and conduct these flows to an approved drainage structure. On-site retention/detention or other measures approved by the City Engineer shall be required if off-site facilities are determined to be unable to handle the increased flows generated by the development of the site. Provide calculations to determine if the developed Q exceeds the capacity of the approved drainage carriers. ON-SITE 31. The minimum pavement section for the MAIN ACCESS ROAD and on-site parking areas shall be 2-1/2 inch asphalt concrete pavement over 4-inch aggregate base with a minimum subgrade of 24 inches at 95% relative compaction, OR equal. The pavement section shall be designed, using "R" values, determined by a licensed Soils Engineer and submitted with the Fine Grading Plan to the City Engineer for approval. The construction heavy haul access roads shall be temporarily paved with 3 inch asphalt concrete pavement over 24 inches native soil at 95% relative compaction, OR equal. The remaining on-site roads shall be surfaced with gravel or crushed stone. 32. The on-site parking lot shall be constructed in accordance with City of Palm Springs Zoning Ordinance, Section 9306.00, P4 27 Page 9 of 11 Ocotillo Energy Project— Case No. 5.0874B $ : Recommendations to the California Energy Commission _ 'C= GENERAL 33. Any utility cuts in the existing off-site pavement made by this development shall receive trench replacement pavement to match existing pavement plus one additional inch. See City of Palm Springs Standard Drawing No. 115. Pavement shall be restored to a smooth rideable surface. 34. All existing and proposed utility lines that are less than 35 kV on/or adjacent to this project shall be undergrounded. The location and size of the existing overhead facilities shall be provided to the Engineering Department along with written confirmation from the involved utility company(s) that the required deposit to underground the facility(s) has been paid, prior to issuance of a grading permit. All undergrounding of utilities shall be completed prior to issuance of a Certificate of Occupancy. 35. All proposed utility lines on/or adjacent to this project shall be undergrounded prior to issuance of a Certificate of Occupancy. 36. All existing utilities shall be shown on the grading/street plans. The existing and proposed service laterals shall be shown from the main line to the property line. The approved original grading/street plans shall be as-built and returned to the City of Palm Springs Engineering Department prior to issuance of the certificate of occupancy. 37. The developer is advised to contact all utility purveyors for detailed requirements for this project at the earliest possible date. 38. Nothing shall be constructed or planted in the corner cut-off area of any driveway which does or will exceed the height required to maintain an appropriate sight distance per City of Palm Springs Standard Drawing No. 203. 39. All proposed trees within the public right-of-way and within 10 feet of the public sidewalk and/or curb shall have City approved deep root barriers installed per City of Palm Springs Engineering specifications. MAP 40, The Title Report prepared for subdivision guarantee for the subject property, the traverse closures for the existing parcel and all lots created therefrom, and copies of record documents shall be submitted with the Parcel Map to the Engineering Department. 41. The Parcel Map, to create a separate parcel for the electric generating facility, shall be prepared by a licensed Land Surveyor or qualified Civil Engineer and submitted /2 A;w Page 10 of 11 Ocotillo Energy Project— Case No. 5.087413 Recommendations to the California Energy Commission � ' to the Engineering Department for review.Submittal shall be made prior to issuance of grading or building permits. 41A. An improvement certificate listing the street improvements for the other parcel created by said map shall be made part of the parcel map. See items listed below: List all street improvements for Dillon Road, 16'^ Avenue and Melissa Lane as needed based on streets fronting on the other parcel created. DIABLO ROAD A. Construct an 8 inch curb and gutter, 38 feet EAST of centerline along the entire frontage, with a 35 foot radius curb return at the SOUTHWEST AND NORTHWEST corners of the subject property per City of Palm Springs Standard Drawing No. 200. B. The driveway approach(s) shall be constructed in accordance with City of Palm Springs Standard Drawing No. 201 and have minimum width(s)of 24 feet. C. Construct the EAST half of an 8 foot cross gutter and spandrel at the intersection of DILLON ROAD and DIABLO ROAD with a flow line parallel to the centerline of DILLON ROAD in accordance with City of Palm Springs Standard Drawing No. 200 and 206. D. Construct the EAST half of an 8 foot cross gutter and spandrel at the intersection of 16'h AVENUE and DIABLO ROAD with a flow line parallel to the centerline of 16T" AVENUE in accordance with City of Palm Springs Standard Drawing No. 200 and 206. E. Construct a minimum 8 foot wide sidewalk behind the curb along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 210. F. Construct a curb ramp meeting current California State Accessibility standards at the NORTHWEST AND SOUTHWEST corners of the subject property per City of Palm Springs Std. Dwg. Nos. 212 and 212A. G. Remove and replace existing pavement with a minimum pavement section of 5 inch asphalt concrete pavement over 4 inch aggregate base with a minimum subgrade of24 inches at 95%relative compaction, OR equal,from edge of proposed gutter to centerline along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 110 AND 340. The pavement section shall be designed, using "R" values, by a licensed Soils Engineer and submitted to the City Engineer for approval. /? 4 Page 11 of 11 Ocotillo Energy Project— Case No. 5.0874133 Recommendations to the California Energy Commission TRAFFIC 42. The developer shall provide a minimum of 48 inches of sidewalk clearance around all street furniture, fire hydrants and other above-ground facilities for handicap accessibility. The developer shall provide same through dedication of additional right-of-way and widening of the sidewalk or shall be responsible for the relocation of all existing traffic signal/safety light poles, conduit, pull boxes and all appurtenances located on the DILLON ROAD, 16''AVENUE AND MELISSA LANE frontages of the subject property. 43. Construction signing, lighting and barricading shall be provided for on all projects as required by City Standards or as directed by the City Engineer. As a minimum, all construction signing, lighting and barricading shall be in accordance with State of California, Department of Transportation, "MANUAL OF TRAFFIC CONTROLS FOR CONSTRUCTION AND MAINTENANCE WORK ZONES" dated 1996, or subsequent additions in force at the time of construction. 44. This property is subject to the Transportation Uniform Mitigation Fee based on the INDUSTRIAL ITE Code D land use. A iCC)AC IAEL.L.A VAL.L.EY A SUi..MVVION of G€-`11P'ERNR1/LENTS 01g012 '* Cathedral City * Coachella . Desert Hot Springs * Indian Wells *' Indio * La Quinta * Palm Desert Palm Springs * Rancho Mirage , County of Riverside * Aqua Caliente Banc]of Dahullla Indians Gahazan Band of Mission Indians " Torres Martinez Desert Dahuilla Indians August 23, 2001 Mayor Will Kleindienst and Palm Springs City Council 3200 Tahquitz Canyon Way Palm Springs, CA 92262 Dear Mayor Kleindienst and Council Members: On Sept. 5,2001, you are scheduled to hold a second reading of a zoning change that would allow the proposed Ocotillo electricity-generating plant to move forward. We are writing to ask you to postpone that second reading for one month to allow sufficient time for your city and the South Coast Air Quality Management District to issue reports about the environmental impacts of the proposed plant. The fast-track approval process of the Ocotillo plant, combined with the traditional suspension of CVAG meetings during the month of August, means CVAG's Energy and Environmental (E & E) and Executive Committees would not be able to take a look at Ocotillo's environnmental impacts before your scheduled meeting. Once the zoning change is approved, we are advised that local control over the Ocotillo proposal ends. Please consider a month's postponement of the zoning reading so the cormnuri ty can examine and have input about the regional impacts of this proposal. U truly y rs, ) Jo lu ena Bufo Crites Executive Committee Chair E &E Committee Chair Mayor, City of La Quinta Councilmember, City of Palm Desert 101 h 3, '� B-e ;�0 a et B4 fariercy rdrive, 'ai¢e fPi� * Palm 0esebt G.A 2226E 1 * faAnnno j7rnj­.111 7 v rr-v 4 ffn¶ -vb __,,Ll '''`'� - Olythe Cathedral City " Coachella * Desert Hot Springs " Indian Wells { India * La Ovinte " Palm D=rt Palm Springs * Rancho Mirage *' County of Riverside * Aqua Caliente Band of Cnhuik Indians ��ffC Cahazan hand of Mission Indians k Torres Nlartlnaz t3eses•t Cahuilla Indian, August 24, 2001 Mayor Will Kleindienst and Palm Springs City Council 3200 Tahquitz Canyon Way Palm Springs, CA 92262 Dear Mayor Kleindienst and Council Members: Due to summer schedules and time constraints, in our letter dated August 23, 2001 requesting a postponement of the zoning hearing on the proposed Ocotillo plant, we were writing as individual committee chairs and not as a result of committee direction. Very truly yours e6al �io�-r xz � JohnVena 0` ord Crites Executive Committee Chair E & E Committee Chair Mayor, City of La Quinta Councilmember, City of Pahn Desert Q A 3 z 73.710 Fred Waring Greve,Suite 20LI * Pnlni Dzeert,C—A 0220D * Phons J730) z4&1 123 ° FAL'J7001 40-G40 ` cvaag®cv- arro 1 RICHARDS, WATSON & GERSHON ATTORNEYS AT LAW GLENN R WATSON CRAIG A.STEELE A PROFESSIONAL CORPORATION RICHARD RICHARDS ERWIN E ADLER T PETER PIERCE DAROLDD PIEPER AMY GREYSON I CIVIC CENTER CIRCLE (19161988) STEVENL DORSEY TERESA BUCHHEIT P.O. BOX 1059 WILLIAM L 5TRAUSZ DEBORAH R HAKMAN MITCHELLE ABBOTT WILLIAMP CBRLEY III BREA, CALIFORNIA 92822-1059 SAN FRANCISCO OFFICE GREGORY W STEPANI CICH O CRAIG FOX SUITE 960 ROCHELLE SROWNE LYNN I.IBARA (714) 990-0901 FORTY-FOUR MONTGOMERY STREET WILLIAM 9.RUDE ILL JANET E COLESON SAN FRANCISCO,CALIFORNIA 94104 QUINNM BARROW TEKENCE R.COCA FACSIMILE (714) 990-6230 CAROL W LYNCH -BAB4 LISA BOND _ (g151 FACSIMILE q21 421 421 04B6 GREGORY M KON ERT RO%ANNE M DIAZ -- THOMAS M JIMBO ELANA A LUBER ROBERT C CECCON CHANORA GEHRI SPENCER ` SAYRE WEAVER ROBERT H.PITTMAN LOS ANGELES OFFICE STEVEN H.KAUFMANN RO August J 1, 2001 YA CLARKE A THIRTY-EIGHTH FLOOR GARY E GAMS ANN M.MAURER 333 SOUTH HOPE STREET JOHN J HARRIS JAY F GOLIOA KEVIN G.ENNIS ERIC M ALOERETE LOS ANGELES,CALIFORNIA 900T-14fi9 ROBIN D HARRIS PAULA GUTIERREZ BAEZA ;: Lj+ ;: (213)626-6484 MI BHA EL ESTRADA PETER K KIM - FACSIMILE(213)626 0070 LAU PENCE WIENER ALEXANDER ABBE STEVEN R.ORR AMY B ALDERFER B TILDE N I(IM TOM K.ARA -I� OF COUNSEL SASKIA T ASAMURA ROBERT W.WATSON p l KAYSER O SUME PATRICK K.B06KO HARRY L GERSHON PETER M TFORSON MAR E.MANOELL y(. 174i pp�5^ MARK L LAMKEN I(JAME3 L.MARMAN MATTHEW A.PORTNOFF )PPP WILLIAM K KRAMER V L Q JIM G.GRAYSON {'y SCOTT L BARER MARTHAM ESCUTIA MAILED AND FAXED —(760) 323-8207 Members of the City Council of the City of Palm Springs and David H. Ready, City Manager City of Patin Springs 3200 Tahquitz Carryon Way Palm Springs, California 92262 Re: Case 5.087413 - Proposed text amendment which would enable construction of the Ocotillo Energy Facility Dear Council Members and Mr. Ready: This office represents interested community members who generally refer to themselves as Businesses and Residents For Palm Springs and who continue to concern themselves with local decision-making in the City of Palm Springs. My clients adamantly oppose the suggested zoning ordinance amendment and accompanying action which would enable the placement of a structure in Palm Springs which will be an unprecedented and illegal source of visual blight and air pollution contrary to the basic values expressed in the City's General Plan and without any structural environmental review whatsoever. The City of Palm Springs has been asked to abandon its basic land use principles and ignore state law to provide legislative zoning legitimacy to a project to allegedly aid in solving an energy crisis manufactured by officials at other levels of government. hi order to buy into the premise, Palm Springs officials must conclude that no other location exists to site the project which already is zoned for such a use. Even the applicants have stated (by way of threats to move the project)that such a site or sites exist in an unincorporated area or areas of Riverside County. j, b RICHARDS, WATSON a GERSHON Members of the City Council of the City of Palm Springs and David H. Ready, City Manager August 31, 2001 Page 2 As you know, "the Project" is the contemplated construction of a natural gas energy generation facility of relatively mammoth proportions north of Dillon Road and east of Diablo Road. This is the way in which the City's planning staff described the Project (with emphasis added): "The proposed energy plant will be located within an existing wind energy facility. The placement of the proposed facilities will require the removal of existing wind turbine generators. The project will be visible from the surrounding area including I-10, Hwy 62m Dillon Road and Indian Avenue, due in part to the three (3) combustion turbine generator stacks and six (6) wet surface, air-cooled (WSAC) stacks that are 80 and 100 feet high, respectively. The WSAC stacks for the combustion turbine generators will be removed when the facility is converted from a simple-cycle system to a combined-cycle system during Phase II of the project construction and replaced with cooling towers. The adjacent wind turbines range in height between 103 and 180 feet. The proposed connecting transmission line from the power plant to the Devers substation will utilize towers ranging from 73 to 106 feet high. The plant will be clearly visible. The application information states that the visual impacts will not be significant. Due to the size of the site area, equipment and height of the stacks, the project will alter the landscape and, depending upon the view location, visual impacts could be considered a significant change to the visual environment...." Compare that project description with the description of the business/industrial land uses allowed in Palm Springs in the subject area on page I-72 of your General Plan: "The community's policy that nothing must be allowed to detract from the resort attractiveness of Palm Springs is a cardinal principle of the General Plan. At the same time, industrial development is to some extent an essential companion of population growth. As the cormruirity grows, there will be need for ;ndustr al developmeni as a source of steady employment and to broaden the tax base and lend stability to the City economy. Already, considerable interest has been expressed in Palm Springs as a potential site for certain light, clean, no-nuisance industries and corporate centers. Indeed, there is potential for industries which are not dependent on a central metropolitan location, but which do value a warm, dry climate and fine community advantages for their employees. "This area lends itself well to the development of planned business/industrial districts, a tract of land subdivided and developed according to an overall site plan for the use of a group of small-to medium-sized industries, as well as corporate centers. Important features of the plan for an industrial park include control of the area, buildings, RICHARDS, WATSON & GERSHON Members of the City Council of the City of Palm Springs and David H. Ready, City Manager August 31, 2001 Page 3 and operations through zoning regulations. The zoning regulations pertain to setback, building height, landscaping, maintenance, and a full set of performance standards. The intent is to protect the investment of the developers, the industries, and the community. The comprehensive,planned approach basic to the industrial park makes it possible for industry and residences to be good neighbors." More specifically, Policy 3.30.3 stated on page I-73 of the Palm Springs General Phni describes the contemplated land uses for the proposed site as follows: "Wind Energy Conversion Systems (WECS) may be permitted in areas designated as Business/Industrial where such areas are also located in the Wind Energy Overlay. Provide for industrial areas which combine alternative energy development and industrial uses in those areas which are suitable for both. Alternative energy development shall be the principal land use, and the allowed industrial uses shall be serviced directly, and primarily,by alternative energy for electrical needs. Industrial uses shall not occupy more than 15% of the area of any property; multiple properties may be combined as a single entity for such purposes under a Planned Development District. Such accessory industrial usage may be allowed only upon the provision of adequate infrastructure." Police 3.30.1 stated at page I-73 of the General Plan even more clearly prohibits approval of the zoning ordinance amendment and project by precluding the construction of a structure more than 30 feet in height with justified exceptions up to 60 feet in height. Again, the proposed structure includes 9 stacks which would illegally range from 80 to 100 feet in height. The above-cited provisions of the Pahn Springs General Plan contemplate and allow a combination of alternative energy facilities and low-level, small-to medium-sized uidus-uial facllttles and parks and businesses served by those energy fac titles ..the subject area. Conversely, it does not allow or support a zoning ordinance amendment which facilitates the construction of a very large industrial facility which covers far more than 15% of the parcel upon which it is located and which includes 9 smokestacks thrust 80 to 100 feet in the air belching pollutants. In summary, the Project is not consistent with, but, rather, would violate the Pahn Springs General Plan provisions dealing with visual blight. The proposed actions must be denied on that basis alone. The Palm Springs General Plan also quite clearly precludes approval of projects which further pollute the air in an area which already fails to attain federal air quality standards. (See General Plan section on air quality commencing at page I11-8.) The applicant's own RICRARDS, WATSON & GERSHON Members of the City Council of the City of Palm Springs and David H. Ready, City Manager August 31, 2001 Page 4 estimates of daily emissions as stated in the staff report to the Planning Commission are as follows: Pollutant Daily Annual SCAQMD Exceeds (lb/day2) (tpd3) Threshold Threshold NOx 4,350.24 lbs 416 tons 25 Yes SO2 90.20 lbs 9 tons 100 No CO 2,687.57lbs 2281cans 100 Yes VOC 260.741bs 22 tons 25 No PM, 824.57 lbs 78 tons 70 Yes Source: Ocotillo Application for Certification and CEC Staff Comments. The projected daily emissions for the project exceed SCAQMD tluesholds in three categories. Further, annually, the project will spew 753 tons of pollutants into the atmosphere. One could not imagine a project which more clearly violates your air quality policy stated in your General Plan. It also is difficult to believe that the Palm Springs City Council would approve this zoning ordinance amendment and project without either conducting its own environmental process or considering the detailed results of such a process conducted by the California Energy Commission. Does the Council not wish to understand the health hazards and other environmental damage which could result from the annual dumping of 753 tons of pollutants into Palm Springs' atmosphere before enabling this project? Approval of the zoning amendment and Project also would be defective legally for lack of the Council's consideration of an environmental document. The zoning amendment and Project have proceeded to this juncture on the assumption that the California Energy Commission is the lead agency for the Project pursuant to the California Environmental Quality Act (California Public Resources Code Sections 21000, et seq.). The lead agency has the obligation to produce, circulate; and consider the contents of an--�roiroruaenial impact report or its equivalent pursuant to laws governing the California Energy Commission. The City of Palm Springs then must be considered a Responsible Agency under the California Environmental Quality Act with defined responsibility to consider environmental materials before taking legislative action to change zoning provisions and before approving the Project. The California Energy Commission staff apparently is telling City staff that it cannot move forward with the Project until the City legislates the amendment to the zoning ordinance allowing the use in the area in question. But, as made clear by the regulatory provisions cited below, the City cannot act before reviewing the environmental materials to be produced by the California Energy Commission. The California Energy Commission cannot legitimately ask Palm Springs to proceed to enable a project which will produce at least 753 tons per year of air pollutants without taking environmental impacts into consideration. Evidently, the California Energy Commission RICHARDS, WATSON & GERSHON Members of the City Council of the City of Palm Springs and David H. Ready, City Manager August 31, 2001 Page 5 has created a chicken-and-egg situation and cannot expect that the City of Palm Springs will illegally change its zoning ordinance without the benefit of environmental data. Controlling California Environmental Quality Act regulations (Title 14 of the California Code of Regulations) unequivocally require the Council to consider enviromnental documentation before legislating the suggested change in permitted land uses. Section 15050(b) of the regulations provides in pertinent part that: "...the decisionmaking body of each responsible agency shall consider the lead agency's FIR or n gadve declaration prior to acting upon or approving the project. Each responsible agency shall certify that its decisiommaking body reviewed and considered the information contained in the FIR or negative declaration on the project." Following its review of the California Energy Cormnission's environmental document, the Council could require project changes to reduce negative impacts [Section 15041(b) of the Regulations] or refuse to approve a project in order to avoid environmental impacts (Section 15042 of the Regulations). Clearly,the California Environmental Quality Act regulations contemplate and require this Council's review of sufficient environmental materials which disclose all impacts of the Project before supplying zoning which will enable the plant to be constructed. "A responsible agency complies with CEQA by considering the EIR or negative declaration prepared by the lead agency and by reaching its own conclusions on whether and how to approve the project involved...." (Regulations, Section 15096.) [Emphasis added.] All of the rantings and ravings of the Project proponents to the effect that the City Cotuicil would be insensitive to energy needs in denying the Project are fallaciously based on the assertion that the subject site is particularly suitable for this use. Actually, the site clearly is unsuitable for the use for all of the following reasons: 1. The Project placed on the site would violate the Palm Springs General Plan's vision for the area as an ul-a containing clean, alternative energy ,acuities which provide power to small to medium businesses and low-key industrial parks. 2. The Project placed on the site specifically would violate lot coverage and building height criteria specified in the Palm Springs General Plan. 3. The Project placed on the site will create visual blight due to its disregard of the General Plan vision and criteria mentioned in 1 and 2, above. 4. The Project placed on the site will violate the Palm Springs General Plan's proscription against exacerbating the area's air quality which presently fails to meet federal standards. RICHARDS, WATSON & GERSHON Members of the City Council of the City of Palm Springs and David H. Ready, City Manager August 31, 2001 Page 6 5. The Project cannot be placed on the site without a modification to the City's zoning ordinance which will create a permitted use which is precluded by the overriding provisions of the General Plan. 6. The Project cannot be placed on the site without City legislation which cannot occur unless and until the City reviews adequate environmental documentation which presently does not exist. We urge the Council to reject the Project and not enact the requested legislation. By doing so,the Council will adhere to the City's General Plan and the community values reflected therein, will recognize its moral and legal obligation to tuiderstand the health and other environmental outcomes which could result from the Project before enabling it, and will avoid the wasteful public and private expenditure of time and money inherent in the litigation which will ensue should the zoning legislation be approved. Palm Springs' residents absolutely expect that the Council will act prudently and legally and not enact the ordinance or otherwise enable the construction of the Project. Very holy yours, RICHARDS, WATSON & GERSHON James L. 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KIL3* U ltwday, offim With J06 W&M14yof Ekc�i (11.2A ;,4mcit Wio) frolo itws rUic-twink (CaAl atiaitow:nt), ROGN ortl.!450!1i,- r Ibshb)r,�kcmlpf trom Edwl" (ropiow 4 two,"Yeal GO-x Omi�j,5ioris:, :l lbvdayz 6Yetirif)l frorri o(V&N (L*11"4 tonr-fyeai itii A 6,) -Titrbloo!*3 fAp1% NO, No V [:,,M,j rli cif tt� 8 8 1 q,i (is,0 i wi t b i 0 7 11 is Ad a y t f V.R c F, 2:-I o t f�, r rant)io) I f 0 Or c�A o I ii lank. gCiiif NO3 ye I� pmio I piflls5ilims -60" jbgitlklyi nflspm with'67 IW(iay of ERCS loan the 1)10460V�' priority emin�siail", j3d lbswd ly; (iik-rqk fcoin isilso'ts (co 7,lwd4v,tixeMpL fruill offskts (bt+m 41 ton"),vokif ftifustluid) Gox PXM A firbririi olihutf, (0010W 4 tV1--YPAii lUestk0d), If Vol have ally wis ooiail, plemso c.,dl mo at (904)3%-fitMI, -71 Juno e-[nail printed Wed, 15 Aug 2001 f 5;04:56 page 1 from: rntollstr�mtallstr�,arb.oa.gov> Ta:Harold Stone<hstone1 (Juno.com-- �. �� ,( Date:Wed, 15 Aug 2001 10:39:56.0700 Subject: Fie;Approval of Ocofi fo"peaker plant Harold,with respect to air quality the South Coast Air quality Management �..„P,r� j ""9,< rc+ <„r^ District has authority over Ore Ocotillo project. The Energy Commission r" is responsible for licensing the project provided they can show all requirements, are met. All California districts have New Source Review Programs that p allow new pollution sources to be,built providers they meet a number of requirements, The first is the new project must be equipped with Best Available Control Technology. Installation of state-of-the-art.controls en.Suras that emission.from a new source are minimized to the greatest extent feasible. After installation of controls the remaining emissions need to be offset. Offset provisions in district rutes require a new source to find emission reductions from existing sources in an amount greater than the maximum pntentiaJ emissions from the new facility. In this way,the overall emissions from the air basin are reduced to provide an overall air i I quality 'i 'benefit In addition,the.district performs an air qualityirnpact `rr�... analysis to ensure that emissions from the new facility will not negatively impact anhblerrt standards. Information on the project,including the o0set package, can be obtained directly from the district. A good contact is Ms. Pang Mueller,Senior Manager, at(909) 396-2633. It you have additional questlons feel tree to contact me via a-mail or telephone(9 f 6) 322-6025. Mike Harold Stone wrote: >I live in the City of Pain Springs and request information on the > approval process of the peaker plant which is in permit processing. As •you inay or may not know the Coachella Valley has been notified that we are In gross violation of air pollution maximums. (I am attempting to obtain a copy of the citation, but it has been orally verified by the > South Coast AQMt7), When I question why the AQMD is approving peaker > plants for an area that they have under citation 1 am told that tite >applicant will be required to obtain mitigating credits. One plant is •already in operation and I have yet to discover where they obtained their >mitigating credits. 1 am also informed that the new application lists >the pollutant discharges as over 400 tons of PM10 and over 400 tons of >NOX3. As you inay also know our area is rapidly development and sources >of pollutants are on a rapid increase, not decrease. Where do these. > credits come from and who determines that the mitigation has indeed r occurred. But the biggest puzzle is low we can be under an order to y cease and desist(my title) >and yet have the same agency approve more pollution. >The applicant also informed the CAy that if they did first track their >application the equipment would go to another site. what difforcrice will it make the power all goes on the grid so what will FROM LATHAM & WATKINS 1 o Watkins(WED) 9, 5' 01 12:10T, 12:000, 4861487139 P 2 9 9atham« NEW YORk G,IIGAo LA00 NORTHERN VIR O NIA FRANKFURT ATTORNEYS AT LAW ORANGE OOUNTY HAMMURO 633 WEST FIFIN 5TREEr, SUITE 4000 SAN DIEGO HONG KONG Lot ANOELES, CALIFORNIA 90071'2007 SAN FRANCISCO LONDON TELE,+MONC+ (ZI3)4e61234 SILICON VALLEY FA%I (213) 691-8763 Los ANGELES sIN OAPORE W W W.LW.COM MOSOOW TORYO NEW JERSEY WASHINGTON, O.c, September 5, 2001 Honorable Mayor and Members of the City Council City of Palm Springs 3200 Tahquitz Canyon Way Palm Springs,California 92262 1,� o o•s Re: Zone Text Amendment for the E-I Zone(Case No. 5.087413) Dear Mayor and Honorable Members of the City Council: On behalf of Ocotillo Energy LP ("Ocotillo"),we have reviewed a letter submitted to the City of Paint Springs on August 31, 2001 by Richards,Watson&Gershon(the "Richards,Watson&Gershon letter'). The letter expresses concerns regarding the proposed text amendment to the City's Energy-Industrial("E-l")Zone,which will include"Natural Gas Fueled Electrical Generation Facilities"in the list of permitted Energy Uses in the E-I Zone(the"proposed Zone Amendment"). The letter also provides comments regarding the proposed Ocotillo Energy Project("OEP"),which is currently under review by the California Energy Commission(the "CEC"). All of the questions and issues discussed in the Richards,Watson& Gershon letter have been previously considered by the City of Palm Springs and have been addressed by City staff in previous public hearings. However,we have prepared this letter to provide our analysis of the comments stated in the Richards,Watson& Gershon letter and to correct the erroneous statements contained therein. First and foremost, Ocotillo would like to express its continued willingness to meet with community members who may have concerns regarding the proposed OEP. Unfortunately,the Richards,Watson&Gershon letter does not identify the interested parties, Rather,the letter vaguely refers to unspecified community members"who generally refer to themselves as Businesses and Residents for Palm Springs"in the introduction and to"Interested Palm Springs Residents" in the signature block. Ocotillo would welcome the opportunity to consult with any interested parties and would like to invite Richards,Watson&Gershon to contact us to facilitate such discussions. I FROM LATHAM & WATKINS (WED) 9. 5' 01 12:12/ST. 12:09/N0. 4861487139 P 3 LAT MFWILTONS Mayor William G.Kleindienst Members of the City Council of the City of Pahn Springs September 5,2001 Page 2 A. Overview of the Proposed Zone Amendment for the Eneru- Industrial Zone and the Ocotillo Energy Project The Richards,Watson&Gershon letter comments upon two separate actions: (1) the proposed OEP,which is undergoing review by the CEC, and(2)the proposed Zone Amendment,which is pending before the City Council. Unfortunately,the Richards, Watson& Gerson letter jumbles together its comments on the proposed Zone Amendment and the OEP, thereby creating some confusion regarding the legal fiamework for the City's action on the proposed Zone Amendment. Therefore,to clarify the issues,it is important to clarify the procedural and substantive distinctions between the two pending actions and to examine the whole of the record on the action pending before the City Council. 1. Proposed Text Amendment to E-I Zone The City's E-I Zone permits a wide range of industrial and energy uses. Uses permitted"as of right"include,but are not limited to the following: (a) storage facilities for trucks and other vehicles, machinery and materials; (b)fabrication of metal buildings,ordinance and firearms,vehicles, aircraft,boats,RVs and motorcycles;(c)manufacturing of electronics, chemicals,machinery, equipment, engines, drugs, food,and mineral products; and (d)services such as newspaper publishing plants,printing,public utility service yards,broadcasting facilities, and warehousing. City Zoning Code,Section 92.17.2.01. Conditionally permitted uses include a wide spectrum of industrial uses, including,but not limited to,the following: meteorological towers in excess of two hundred (200)feet in height;recycling collection centers and salvage centers; vehicle impound yards; acids and abrasives manufacturing;chemical plating shops;above ground storage facilities for natural gas, petroleum and bulk fuel;planing mills;processing centers for poultry and eggs; and meat packing plants. City Zoning Code Section 92.17.2.01.D. The E-1 Zone also conditionally permits Energy Uses,including cc-generation facilities, solar collectors,and wind energy conversion systems("WECS"). The proposed Zone Amendment would amend the text of Section 92.17.2.01.D of the E-I Zone to add"Natural Gas Fueled Electrical Generation Facilities"to the list of conditionally permitted Energy Uses. As discussed in more detail below,the proposed Zone Amendment is in conformance with the City's General Plan. The City staff has reviewed the proposed Zone Amendment and has recommended its adoption. The City Planning Commission has recommended approval of the proposed Zone Amendment,having found it to be in conformance with the General Plan. The City Council has introduced the ordinance approving the proposed Zone Amendment,having found that it is in conformance with the General Plan. The proposed Zone Amendment would not permit natural gas fueled electrical generation facilities"as of right." Rather, further environmental and planning review would be FROM LATHAM & WATKINS (WED) 9, 5' 01 12:12/ST. 12:09/NO. 4861487139 P 4 ureueawllmrs Mayor William G.Meindienst Members of the City Council of the City of Palm Springs September 5,2001 Page 3 required prior to the development of any proposed facility. Generally,the City would have jurisdiction to review any facility with a generation capacity of less than 50 megawatts, and would consider any such proposal pursuant to CEQA and the City Code requirements for a Conditional Use Permit("CUP"). Palm Springs Zoning Code Section 94.02,00, However, as discussed below,the CEC has the exclusive autbority for the environmental review and certification of the OER Cal.Public Resources Code Section 25500. 2, Proposed OEP Ocotillo has proposed development of the OEP in order to provide much-needed energy to the State. The OEP is currently under review by the CEC. The OEP was originally conceived as a 900-megawatt("MW")combined cycle facility,to be operational by the summer of 2004. In response to the California energy crisis and Governor Davis's resulting Executive Order D-26-01 and Senate Bill 28X, Ocotillo has accelerated the permitting and now proposes to complete the project in two phases. Phase I will consist of partial completion of the facility and operation in a simple-cycle mode, generating approximately 460 MW starting in the summer of 2002 to meet the state'&energy shortage. The facility will continue to operate to provide energy needed by the state while the construction continues on Phase II,which will result in combined cycle operation to generate 900 MW,anticipated by mid-2004. The ORP is being permitted in full compliance with the California Environmental Quality Act("CEQA"),with the CEC as the lead CEQA agency. The OEP qualified for an expedited 4-month permitting process after submitting the detailed Application for Certification ("AFC),including a detailed environmental analysis of all aspects of the project,which is currently under review by the CEC. Multiple workshops and hearings have been,and will be conducted in the Pahn Springs area to address questions and gather comments from the public. It is critical that Phase I of the project,including completion of all relevant agency and jurisdiction actions,be completed on a strict timeline consistent with the 4-month permitting track in order to assure operation by the summer of 2002. By way of background, in 1975,the State of California("State")legislature enacted the Warren-Alquist State Resources Conservation and Development Act("Warren- Alquist Act"), California Public Resources Code Section 25000,et seq. That statute,as amended,states in part: In accordance with the provisions of this division,the commission [the CEq shall have the exclusive power to certify all sites and related facilities in the state,whether a new site and related facility or a change or addition to an existing facility. The issuance of a certificate by the commission shall be in lieu of any permit, certificate,or similar document required by any state, local or regional agency, or federal agency to the extent permitted by federal law,for such use of the site and related facilities,and shall FROM LATEV & WATKINS (WED) 9. 5' 01 12:13/ST, 12:09/NO. 4861487139 P 5 1anwl WltYNE Mayor William G, Kleindienst Members of the City Council of the City of Palm Springs September 5,2001 Page 4 supersede any applicable statute,ordinance, or regulation of any state, local, or regional agency,or federal agency to the extent permitted by federal law. Cal.Public Resources Code Section 25500, In adopting the Warren-Alquist Act,the State granted exclusive authority to the CEC for the review and certification of powerplants and related facilities within California, Furthermore, as stated in Section 25500 of the California Public Resources Code,the CEC's site certification process supersedes any other applicable state or local statutes or ordinances. Thus,the CEC is the lead agency for the certification process, including environmental review,of powerplant projects. The CEC conducts its environmental review pursuant to a certified regulatory program, established by the Warren-Alquist Act, as amended, and the Energy Facilities Siting Regulations,Title 20, California Code of Regulations, section 1704,Appendix B. The CEC's environmental review program has been approved as a regulatory plan in lieu of an environmental impact report,pursuant to CEQA. See Cal, Public Resources Code Section 21090.5 and Cal. Code of Regulations,Title 14, Section 15251(k). The Richards,Watson&Gershon letter errs in asserting that the City should conduct environmental review and impose mitigation measures on the proposed OEP, Because of the CEC's exclusive authority over the permitting and review of powerplants,the City is not authorized to impose conditions upon the OEP. CEQA does not endow independent authority on the City and does not override the Warren-Alquist Act, In fact, CEQA states that, in imposing mitigation measures, a public agency may exercise only those express or implied powers provided by law other than CEQA. Cal,Public Resources Code Section 21004. Because the State has granted to exclusive jurisdiction over the environmental review and permitting of powerplant facilities to the CEC,the City has no authority to impose mitigation measures or other conditions of approval on the OEP. Nevertheless,the City will play an important role in the CEC's review process of the OEP. The City is encouraged to provide its comments and recommendations for mitigation measures to the CEC as part of the certification process. Indeed, the CEC is required to consult with all"interested agencies regarding all applicable laws,ordinances, and standards," and to "consult with the responsible local,regional,state,or federal agency to try to eliminate any non- compliancc issues," Cal.Public Resources Code § 25533(d)(1). Although the CEC retains exclusive authority for the review and certification of powerplant projects, the CEC is directed "to give great weight to the comments,opinions,ordinances and standards of local governments," 58 Ops. Atty.Gen.729,746(1975). The CEC is currently conducting its environmental review and its consideration of the proposed OEP. Pursuant to the Governor's Executive Order D-26-01 and Senate Bill 28X, which address the CEC's permitting process in light of the energy crises in California,the CEC FROM LATHAM & WATKINS (WED) 9, 5' 01 12,14/ST, 12;09/N0, 4861487139 P 6 unwtawITEn Mayor William G.Kleindicnst Members of the City Council of the City of Palm Springs September 5,2001 Page 5 is reviewing the proposed OEP under an expedited, four-month schedule. The City's comments regarding the OEP should be presented to the CEC as soon as possible, so that the CEC may give them due consideration. B. ,Analysis and Clarification Regardins Ouestions Raised in the Richards, Watson & Gershon Fetter ' 1. The Proposed Zone Amendment is in Conformance with the General Plan A careful examination of the City's General Plan demonstrates that the proposed Zone Amendment is in substantial conformance with the General Plan and would not violate General Plan policies. The City's General Plan provides for the development of energy uses and industrial land uses. The General Plan states that`industrial development is to some extent an essential companion of population growth." City General Plan,page 1-72. Furthermore,the General Plan states that the City should"provide for industrial areas which combine alternative energy development and industrial uses in those areas which are suitable for both." City General Plan,Policy 3.30.2,page I-73. The City's E-I Zone implements the General Plan policies by permitting a range of industrial uses as well as Energy Uses. The proposed Zone Amendment would allow another Energy Use(i.e.,natural gas faeled electrical generation facilities)within the E-1 Zone,which already permits and conditionally permits an extensive list of large-scale industrial,manufacturing acid energy uses. Regarding future electricity demands,the General Plan acknowledges that "[eJxistiug generating facilities are adequate for existing needs,but as growth continues,new generating facilities will be required." General Plan,page 11-58. The General Plan encourages the development of other potential energy sources,such as municipal sewage and solid waste, hydroelectricity, and co-generation. General Plan Policies 5.29.4-6,page II-66. Furthermore, the General Plan states that the City shall"[ajllow for the use of alternative energy systems for private development provided that they meet all public safety,health,and welfare requirements and are proven to be reliable" General Plan Implementation Program 5e/A.2.page 11-67. There is no dispute that the General Plan encourages the development of alternative energy uses within the City boundaries. However,the General Plan does not define "alternative energy uses," so the term is left to firture interpretation. Modem natural gas fueled electrical generation facilities are subject to the air quality and other environmental protection controls imposed by current laws and regulations. Such facilities will provide a more efficient electrical output with a much greater level of environmental protection that would have been commercially feasible when the General Plan was adopted in 1993. Thus, a modern,natural gas fueled electrical generation facility should be considered an alternative source of energy,one that FROM LATHAM & WATKINS (WED) 9, 5' 01 12; 14/ST, 12:09/NO, 4861487139 P 7 uTUR&WATltttts Mayor William G.Kleindienst Members of the City Council of the City of Palm Springs September 5, 2001 Page 6 may serve as an alternative to the older electrical generation facilities online elsewhere in the region, However,even if the City Council declines to determine that a modern natural gas fueled electrical generation facilities is an"alternative"energy use,the City Council may and should approve the amendment. It is important to note that,despite the explicit encouragement for"alternative" energy in the General Plan policies,there is nothing in the General Plan that precludes the development of other energy uses,provided that environmental protections are implemented. The proposed Zone Amendment would further implement the General Plan and modify the list of conditionally permitted uses within the E-1 zone to include natural gas fueled electrical generation facilities. Implicit in the text of the proposed Zone Amendment and explicit in the City's Resolution regarding the proposed Zone Amendment, dated August 16, 2001, is the requirement that such facilities be designed and built to meet the current environmental standards imposed by federal and slate law as well as the rules and regulations of the South Coast Air Quality Management District("SCAQMD'�. The regulatory authority for electrical generation facilities,whether that be the City under its CUP requirements or the CEC under the Warren- Alquist Act,will have the responsibility to ensure that such facilities achieve compliance with current applicable statutes,rules and regulations. 2. The Proposed Zone Amendment Would Not Violate the General Plan Policies Related to Visual Quality The proposed Zone Amendment is in substantial conformance with the General Plan policies regarding heights and visual quality. Specifically,the Richards,Watson&Gershon letter cites General Plan Policy 3.301,which generally limits the height of industrial facilities to 30 feet in height. The height limit policy dots not preclude the proposed Zone Amendment. The policy must be read in the context of the relevant General Plan provisions related to the development of industrial and energy uses and in light of the City's implementation policies. The General Plan itself provides certain exceptions to the height limit policy. Besides the explicit exception for buildings up to 60 feet in height,the General Plan and Zoning Code specifically permit other uses which would have heights in excess of 60 feet, such as WECS,co-generation facilities,meteorological towers,and manufacturing plants. The height of structures for a natural gas fueled electrical generation facility would be very similar to or lower than the heights of those other permitted uses. Additionally,the Zoning Code,which the City has adopted to implement the General Plan,clarifies that structures such as chimneys and roof top mechanical equipment are exempt from the height limit policy,subject to planning approval. City Zoning Code, Section FROM LATHAM & WATKINS (WED) 9, 5' 01 12; 15/ST, 12:0910. 4861487139 P 8 urwrLNATIUMS Mayor William G.Klcindienst Members of the City Council of the City of Palm Springs September 5,2001 Page 7 92.17.2.03.A.2. This exception would apply to the emission stacks and cooling towers of a natural gas fueled electrical generation facility.` Therefore,the height limit policy would not apply to the type of structures that would be expected as part of a natural gas fueled electrical generation facility. Furthermore,the proposed Zone Amendment would not permit structures as of right; fiuther environmental review would be required. In the case of the proposed OEP,which is currently being reviewed by the CEC,the highest structures would be anticipated to be consistent lower in height than many of the WECS structures that have been built throughout the E-1 Zone. 3. The Proposed Zone Text Amendment is Exempt from CEQA Review As a general rule, CEQA applies to"discretionary projects proposed to be carried out or approved by public agencies,including,but not limited to,the enactment and amendment of zoning ordinances, the issuance of zoning variances,the issuance of conditional use permits ... unless the project is exempt from this division." Cal.Public Resources Code,Section 21080(a) (emphasis added). Therefore,the enactment or amendment of zoning ordinances would be an action subject to the environmental review requirements of CEQA, unless the action is exempt from CEQA pursuant to a statutory or categorical exemption. There are two kinds of exemptions from CEQA: (a)statutory exemptions,which have been enacted by the legislature,and(b)categorical exemptions,which have been incorporated into the State CEQA Guidelines as well as the implementing guidelines and regulations of state and local public agencies. If there is a statutory exemption to the applicability of CEQA,the sole question before the City is whether the action fits within the language of the exemption. In reviewing a statutory exemption,the City should not base its determination on the nature and extent of the project's environmental impacts. The proposed Zone Amendment is exempt from CEQA. Section 21080(b) of the California Public Resources Code states that CEQA does not apply to certain activities, including: Actions undertaken by a public agency relating to any thermal powerplant site or facility,including the expenditure, obligation, or encumbrance of funds by a public agency for planning, The City Zoning Code does not define"chimneys". However, in common usage,"chimney" means"a structural passage through which smoke and gases escape"or a"smokestack". Webster's 11,New Riverside University Dictionary(1994),page 256. FROM LATHAM & WATKINS (WED) 9. 5' 01 12:15/ST. 12:09/N0. 4861487139 P 9 UTMaw►mn Mayor William G.Kleindienst Members of the City Council of the City of Palm Springs September 5,2001 Page 8 engineering,or design purposes,or for the conditional sale or purchase of equipment,fuel,water(except groundwater),steam, or power for a thermal powerplant, if the powerplant site and related facility will be the subject of an environmental impact report, negative declaration, or other document,prepared pursuant to a regulatory program certified pursuant to Section 21080.5, which will be prepared by the State Energy Resources Conservation and Development Conmiission(the CF-C],by the Public Utilities Commission,or by the city or county in which the powerplant and related facility would be located in the environmental impact report,negative declaration, or document includes the environmental impact,if any,of the action described in this paragraph. Cal, Public Resources Code,Section 21080(b)(6). See, also,Cal. Code of Regulations,Title 14,Section 15271. The proposed Zone Amendment fits squarely within the language of this exemption. First,the proposed zoning amendment is an action related to a proposed powerplant, The proposed Zone Amendment would accommodate the proposed OEP,which is currently being reviewed by the CEC pursuant to its site certification process. (CEC Docket No. 01-AFC- 8.) Second,the OEP will be the subject of an environmental review document prepared pursuant to a regulatory program certified pursuant to Section 21080.5 of the California Public Resources Code. The environmental review process for the OEP commenced with the submittal of the AFC in May 2001. The environmental review process includes extensive opportunities for input and comment by public agencies, such as the City, and members of the public. The CEC site certification process has been approved as a certified"CEQA equivalent" program,thereby satisfying the requirements of the statutory exemption for the Zone Amendment. See Cal.Public Resources Code Sections 21080(b)(6)and 21080.5 and Cal. Code of Regulations,Title 14, Section 15251(k). Third,the GEC's environmental review will include the environmental impacts of the proposed OEP as well as the reasonably foreseeable impacts that may be directly or indirectly caused by the City's approval of the proposed Zone Amendment. No potential impacts related to any other powerplants within the E-I Zone have been identified for the simple reason that there is no evidence that any other such powerplants have been or will be proposed within the E-I Zone. Therefore,a discussion of the potential impacts of other facilities would be speculative and is not required by CEQA. Cal. Code of Regulations, Title 14, Section 15145. Because the Zone Amendment is related to and will accommodate the proposed OEP and the CEC's environmental review will include the environmental impacts of the OEP, FROM LATHAM & WATKINS (WED) 9. 5' 01 12: 15/ST. 12:09/N0. 4861487139 P 10 Mayor William G.Kleindienst Members of the City Council of the City of Pahn Springs September 5,2001 Page 9 including the reasonably foreseeable cumulative impacts,the proposed Zone Amendment is exempt from CBQA,pursuant to Section 21080(b)(6)of the California Public Resources Code, Since the proposed Zone Amendment is exempt from CEQA,the City should not delay its decision regarding the proposed Zone Amendment, 4. The Proposed OEP Will Not Result In Any Significant Unmitigated Impacts to Air Quality The Richards,Watson&Gershon letter cites"SCAQMD Thresholds." Although the letter does not provide any unit of measurement,it appears that the cited thresholds are those used by the SCAQMD to determine if the additional analytical requirements in SCAQMD Rule 1303 are triggered,such as CEQA review. The proposed OEP will comply with all relevant SCAQMD rules and regulations. The analysis provided to the SCAQMD and CEC demonstrates that no significant unmitigated impacts to air quality will occur. It should be noted that the projected daily and annual emissions described in the AFC and cited in the Richards,Watson&Gershon letter were based upon preliminary information regarding the proposed OEP. However,the projected emissions have been updated using more specific operational data and will be lower than those levels described in the AFC. The current operational data and emissions information has been submitted and accepted by the SCAQMD,and is reflected in the SCAQMD Preliminary Determination of Compliance for the OEP. S. OEP Site Suitability The Richards,Watson&Gershon letter argues that the proposed OEP site is not suitable for a natural gas fueled electrical generation facility. We recommend that these comments be directed to the CEC,which is currently preparing the environmental review of the proposed OEP_ Nevertbeless,to avoid any confusion,as previously described by Mr. Hren and others during testimony before the City Council,the proposed OEP site was identified as the preferred site for a number of reasons,including the following: — Adequacy and availability of site; Proximity to Devers Substation and access to electrical transmission lines with adequate capacity to serve the facility; Access to natural gas and water supplies; and Separation from residential areas. In addition, the attached table provides a brief response to the concluding remarks contained in the Richards,Watson&Gershon letter. FROM LATHAM & WATKINS (WED) 9. 5' 01 12:16/ST, 12:09/N0. 4861487139 P 11 Mayor William G. Kleindienst Members of the City Council of the City of Pahn Springs September 5, 2001 Page 10 The City's approval of the proposed Zone Amendment is an important step in ensuring that clean and efficient energy production can be developed,thereby helping to establish a reliable supply of energy. Based upon the full record before the City Council,we respectfully request that the City approve the proposed Zone Amendment on September 5,2001. Truly yours, l Marian A.Harvey of LATHAM &WATKINS cc: David H.Ready David Aleshire,Esq. Doug Evans Bob Wen Michael J. Carroll,Esq. FROM LATHAM & WATKINS (WED) 9. 5' 01 12: 16/ST. 12:09/N0, 4861487139 P 12 1t MN&VIATENO Mayor William G.Kleindienst Members of the City Council of the City of Palm Springs September 5,2001 Page 11 Summary of Richards,Watson&Gershon Comments Related to the Proposed OEP and Analysis of These Comments Richards, Watson and Gershon Analysis of Arguments and General Plan Conformity Arguments Regarding Suitability of Proposed Site for OEP 1. "The Project placed on the site As described previously in this letter, the proposed Zone would violate the Palm Springs Amendment is in conformance with the General Plan. General Plan's vision for the area The General Plan describes the implementation of as an area containing clean, industrial and energy uses commensurate with growth. alternative energy facilities which The proposed OEP will serve to bring efficient energy provide power to small to medium generation online using modern,best available control businesses and low-key industrial technology(13ACT). The proposed OEP is an example of parks. " an alternative energy source that was not known and did not exist when the General Plan was adopted in 1993. The OBP,when completed,would be permitted within the City's definition of co-generation uses within the E-I Zone. In addition to the fact that the OEP would satisfy the City's objectives to encourage the development of alternative energy sources, it is important to note that while the General Plan and Zoning Code encourage the development of alternative energy uses as a primary use, nothing in the General Plan or Zoning Code precludes the development of more traditional energy sources,provided that appropriate environmental controls are implemented. Furthermore,the assertion in the letter that energy development should be constrained to serve only"small to medium businesses and low key industrial parks"ignores the fact that the General Plan and Zoning Code accommodate a full range of industrial and commercial uses,many of which are permitted in the E-1 Zone. 2. "The PeoJect placed on the site The proposed Zone Amendment is in conformance with specifically would violate lot the General Plan. There is no evidence that the proposed coverage and building height OEP,which is currently under review by the CEC,will criteria specified in the Palm violate any General Plan policies or criteria. The CEC Springs General Plan, " will review the proposed OEP in comparison to the local laws,ordinances,rules and standards, including the lot coverage and height limit policies provided in the General Plan_ There is no evidence to support the assertion that the proposed Zone Amendment would permit any buildings in excess of City requirements. The City has FROM 1ATHAM & WATKINS (WED) 9. 5' 01 12:16/ST. 12:09/NO. 4861487139 P 13 tATURLwllrnMa Mayor William G.Kleindienst Members of the City Council of the City of palm Springs September 5,2001 Page 12 recognized exceptions to the General Plan height limit policy in the General Plan,the Zoning Code, and in implementation,including exceptions for chimneys and rooftop equipment(such as the structures anticipated as part of an electrical generation facility), wind energy conversion systems,and meteorological towers,and has implemented the height limit policy in a reasonable and practical manner. The proposed OBP will be consistent with or lower than the height of other structures in the Er1 zone. Furthermore,the lot coverage policies of the General Plan do not appear to apply to the proposed OPP and,even if they apply,there is no evidence that they will be exceeded. 3. "The Project placed on the site The proposed Zone Amendment will not accommodate will create visual blight due to its visual blight. The proposed OEP, currently under review disregard of the General Plan by the CEC,will implement the mitigation measures vision and criteria mentioned in 1 identified in the Application for Certification and will not and 2 above." result in any significant visual impacts. The proposed site is set off at a distance from any sensitive receptors and will be consistent with the types and heights of other uses in the E-1 zone, such as the adjacent substation and WECS. 4. "The Project placed on the site The proposed Zone Amendment will not alter the City's will violate the Palm Springs commitment to protecting air quality. The proposed OEP, General Plan's proscription against currently under review by the CEC.will be developed in exacerbating the area's air quality conformance with applicable rules and regulations related which presently failed to meet to air quality. Offsets will be required and will mitigate federal standards." potential impacts to below a level of significance. S. "The Project cannot be placed The proposed Zone Amendment is in conformance with on the site without a modification to the City's General Plan and will add Natural Gas Fueled the City's zoning ordinance which Electrical Generation Facilities to the list of Energy Uses will create a permitted use which is already permitted in the Energy-Industrial Zone. The City precluded by the overriding staff and Planning Commission have recommended provisions of the General Plan." approval of the proposed Zone Amendment and the City Council has introduced the ordinance,having found that the action would be in conformance with the General Plan. FROM LATHAM & WATKINS (WED) 9, 5' 01 12:17/ST, 12:09/NO. 4861487139 P 14 unAMaWNTMNS Mayor William G.Kleindicnst Members of the City Council of the City of Palm Springs September 5, 2001 Page 13 6. "77te Project cannot be placed The proposed Zone Amendment is statutorily exempt on the site without City legislation from the California Environmental Quality Act,pursuant which cannot occur unless and until to Section 21080(b)(6) of the Cal. Public Resources Code. the City reviews adequate The proposed OEP is the subject of a thorough environmental docutnentation environmental review in compliance with CEQA; the which presently does not exist." environmental review is being conducted by the lead agency,which in this case is the CEC. The City and interested parties can and should submit comments to the CEC for its consideration. MINUTE ORDER NO. ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PALM SPRINGS, CALIFORNIA AND OCOTILLO ENERGY, LP/INTERGEN NORTH AMERICA. I HEREBY CERTIFY that this Minute Order, adopting the attached Memorandum of Understanding between the City of Palm Springs, California and Ocotillo Energy, LP/InterGen North America, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 05' of September, 2001. PATRICIA A. SANDERS City Clerk RESOLUTION NO. CASE NO.5.0874B OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,CALIFORNIA,RECOMMENDING THAT CALIFORNIA ENERGY COMMISSION APPROVE THE OCOTILLO ENERGY FACILITY AND INCORPORATE THE RECOMMENDATIONS CONTAINED HEREIN INTO THE CERTIFICATION AND LICENSE FOR THE PROPOSED OCOTILLO ENERGY PROJECT. WHEREAS,On January 17,2001 Governor Davis proclaimed a State of Emergency to exist due to the energy shortage in the State of California; and WHEREAS, On March 07, 2001 Governor Davis signed Executive Order D-26-1 which directed the California Energy Commission(CEC)to modify procedural requirements and timelines and implement a four-month permitting process for new power plants; and WHEREAS,Executive Order D-26-1 ordered all agencies to follow substantive requirements designed to achieve environmental protection and the protection of public health and safety to the maximum extent consistent with the prompt execution of the executive orders; and WHEREAS,the State of California,in orderto augment existing generation and develop new generation, has implemented an Emergency Power Plant Permitting program to allow for expedited review and approval of energy generating plants; and WHEREAS,Ocotillo Energy LP,an affiliate of InterGen North America,seeks to construct a 456 megawatt simple cycle, gas-fueled electric power plant on property located north of Dillion Road,west of North Indian Avenue in the City of Palm Springs,Section 9,T3S, R4E, SBBM; and WHEREAS, the Palm Springs General Plan broadly outlines the City's commitment to promoting and encouraging the use of energy technologies so as to meet the energy needs of the community; and WHEREAS, a stated goal of the Palm Springs General Plan (Goal 8.A) is to provide adequate and safe utility systems to support existing and proposed land uses; and WHEREAS, an objective of the Palm Springs General Plan (Objective 8.1) is to ensure adequate electrical systems to meet the demands of new and existing development; and WHEREAS,a policy of the Palm Springs General Plan (Policy 8.1.1)requires public utility improvements where existing systems are deficient, as feasible; and WHEREAS, a policy of the Palm Springs General Plan (Policy 8.1.6) requires that new development be contingent upon the ability to be served by adequate electrical and supporting infrastructure; and WHEREAS, the Palm Springs General Plan outlines the City's commitment to promoting and encouraging the use of energy technologies so as to meet the energy needs of the community; and WHEREAS,the City of Palm Springs recognizes the potential threat to the health,welfare and safety of the residents and businesses of Palm Springs and the Coachella Valley if there is insufficient electrical power available in the desert during the summer months; and Page 2 of 3 Case 5.0874B Ocotillo Energy Project Resolution No. WHEREAS, the proposed location of the electric power plant is zoned Energy Industrial Zone (E-1); and WHEREAS, the E-1 Zone is intended to provide for the development of energy related facilities; and WHEREAS, the purpose of the Ocotillo Energy Project is to generate much needed electricity to serve the State of California; and WHEREAS, the City of Palm Springs is supportive of encouraging the development of energy generation plants that will address the energy needs for the State of California;and WHEREAS,the City of Palm Springs recognizes the positive fiscal impacts and community benefits of an electrical power plant establishing within the corporate limits of the City of Palm Springs; and WHEREAS, the project applicant, Ocotillo Energy LP, seeks an expedited permitting decision from the Energy Commission under the terms of the California Energy Security and Reliability Act (SB 28X); and WHEREAS, pursuant to the California Energy Commission Power Plant Site Certification Regulations(August 2000),the California Energy Commission is serving as the lead agency and is therefore responsible for conducting the environmental analysis on the proposed project; and WHEREAS,the City Council finds that Section 21080(B)(6)of the California Environmental Quality Act(CEQA)allows actions taken by public agencies relating to thermal powerplants to utilize the documents prepared by regulatory programs certified pursuant to 21080.5 of CEQA which will be prepared by the CEC for purposes of compliance with CEQA. WHEREAS, notice of public hearings of the Planning Commission of the City of Palm Springs to consider Applicant's application for certification was given in accordance with applicable law; and WHEREAS,on July 25,2001 and August 22,2001,public hearings on the application were held by the Planning Commission in accordance with applicable law; and WHEREAS, on August 22, 2001, the Planning Commission recommended that specific recommendations and improvement by required by the California Energy Commission;and WHEREAS,the City Council held duly noticed public hearings on August 02,2001,August 16, 2001, and September 05, 2001; and WHEREAS, the City Council is in agreement with the recommendation of the Planning Commission; and Case 5.0874B Ocotillo Energy Project Resolution No. NOW,THEREFORE,BE IT RESOLVED by the City of Palm Springs,California that the City Council recommends that the California Energy Commission approve the Ocotillo Energy Facilityand impose the recommendations and improvements contained in AttachmentA as Conditions of Approval for the certification and licensing of the Ocotillo Energy Facility; ADOPTED this day of 2001. AYES: NOES: ABSTAIN: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA City Clerk City Manager Reviewed and Approved as to Form: OCOTILLO ENERGY FACILITY— CASE NO. 5.0874B t PROJECT LOCATED NORTH OF DILLON ROAD, EAST OF DIABLO ROAD, ZONE:E-1(ENERGY/INDUSTRIAL)AND W(WATERCOURSE),SECTION 9,T3S, R4E, SBBM. RECOMMENDATIONS TO CALIFORNIA ENERGY COMMISSION Any agreements,easements or covenants required to be entered into shall be in a form approved by the City Attorney. 1. Ocotillo Energy LP,an affiliate of InterGen North America,the project applicant,shall defend, indemnify,and hold harmless the City of Palm Springs,its agents,officers,and employees from any claim,action,or proceeding against the City of Palm Springs or its agents,officers or employees to attach,set aside,void or annul,an approval of the City of Palm Springs, its legislative body,advisory agencies,or administrative officers concerning the Ocotillo Energy Project (Case No. 5.0874B). The City of Palm Springs will promptly notify the Ocotillo Energy LP of any such claim,action,or proceeding against the City of Palm Springs and the applicant will either undertake defense of the matter and pay the City's associated legal costs or will advance funds to pay for defense of the matter by the City Attorney. If the City of Palm Springs fails to promptly notify the applicant of any such claim,action or proceeding or fails to cooperate fully in the defense,the applicant shall not,thereafter, be responsible to defend, indemnify, or hold harmless the City of Palm Springs. Notwithstanding the foregoing,the City retains the right to settle or abandon the matter without the applicant's consent but should itdo so,the City shall waive the indemnification herein,except,the City's decision to settle or abandon a matter following an adverse(final)judgement or failure to appeal, shall not cause a waiver of the indemnification rights herein. 2. Final landscaping,irrigation,entry statement,kiosk and adequate entry,exterior lighting,and fencing plans shall be submitted for approval by the Department of Planning and Building prior to issuance of an operations permit.Additional plant material,including trees,shrubs, vines and groundcover, shall be required to buffer the visual impact of the project from nearby residential areas and Dillon Road. Landscape plans shall be approved by the Riverside County Agricultural Commissioner's Office priorto submittal. The purpose of the Agricultural Commissioner's review is for quarantined plant material. 3. The project is subject to the City of Palm Springs Water Efficient Landscape Ordinance. Refer to Chapter 8.60 of the Municipal Code for specific requirements. 4. Prior to issuance of a grading permit, a Fugitive Dust and Erosion Control Plan shall be submitted and approved by the CEC. Refer to Chapter 8.50 of the Municipal Code for specific requirements. A copy shall be provided to the Building Official and City Engineer for review and comment. 5. All proposed trees within the public right-of-way and within 10 feet of the public sidewalk and/or curb shall have City approved deep root barriers installed per City of Palm Springs Engineering specifications. Page 2 of 11 Ocotillo Energy Project—Case No. 5.0874E ' Recommendations to the California Energy Commission 6. All proposed signs shall comply with Section 93.20 of the Palm Springs Zoning Ordinance. A copy ofthe exterior lighting plan shall be submitted to the Planning Manager for review and comment. 7. An exterior lighting plan, in accordance with the Palm Springs Zoning Ordinance Section 93.21.00, Outdoor Lighting Standards, shall be implemented in order to reduce glare. If lights are proposed to be mounted on buildings,down-lights shall be utilized to reduce glare except for lighting necessary to respond to emergency situations. Emergency lighting shall be utilized to respond to emergency situations only and shall be off at all other times. A copy of the exterior lighting plan shall be submitted to the Planning Manager for review and comment. 8. This project shall be subject to Chapters 2.24 and 3.37 of the Municipal Code regarding public art.The project shall either provide public art or payment of an in-lieu fee. In the case of the in-lieu fee,the fee shall be based upon the total building permit valuation as calculated pursuant to the valuation table in the Uniform Building Code, the fee being 1/2% for commercial projects or 1/4% for residential projects with first $100,000 of total building permit valuation for individual single-family units exempt. Should the public art be located on the project site,said location shall be reviewed and approved by the Director of Planning and Building and the Public Arts Commission, and the property owner shall enter into a recorded agreement to maintain the art work and protect the public rights of access and viewing. 9. No outside storage of any kind shall be permitted except as approved as a part of the proposed plan. All storage shall be fully screened per Section 92.17 of the Palm Springs Zoning Ordinance. 10. Parking areas shall be constructed in accordance with Section 93.06 of the Palm Springs Zoning Ordinance. 11. Pursuant to Section 11.74 of the Municipal Code, the proposed project shall operate in accordance with City noise standards.Information provided in the noise study indicates that the project has the potential to exceed allowable noise levels during evening and nighttime hours. The CEC will be responsible for ensuring that the applicant mitigates project- generated noise impacts to a level of less than significant. 12. Project shall comply with terms and conditions of any separate Community Benefits/Memorandum of Understanding program approved by the City Council. A copy is attached. 13. The main project entry shall be upgraded to create a project statement which identifies the Ocotillo Energy Facility. The upgraded entry shall include decorative fencing and/or walls, landscape, identification sign with project information, and a limited short-term pullout or parking area adjacent to the project information sign. Page 3 of 11 Ocotillo Energy Project— Case No. 5.087413 Recommendations to the California Energy Commission 14. That InterGen,SCAQMD,ARB,and CEC shall,to the greatest extent allowable by law,and where feasible , direct air quality credits and mitigation toward projects which will directly benefit the Salton Sea Air Basin. Specific air quality credits and mitigation shall be focused on reducing PM-10 to a level which will not hinder bringing the Salton Sea Air Basin into attainmentforPM-10. Mitigation may include roadway improvements,purchase of additional street sweepers, conversion of fleet vehicles to alternative fuels, and other mitigation measures which reduce PM-10 emissions. 15. That a permit to relocate existing Wind Energy Commission Systems (WECS) shall be submitted to the City and approved by the City prior to relocation. 16. That the CEC shall ensure that construction activity, including but not limited to grading, temporary generators,temporary lighting,and use of equipment,does not impact residents who live in the project vicinity. The City's Ordinance(copy attached)regarding construction activities shall be considered by the CEC. A complaint system shall be implemented to deal with construction activity complaints by surrounding residents. WASTE DISPOSAL SERVICES: 1. Atrash enclosure(s),subjectto approved City construction details,is required.See attached specifications. BUILDING DEPARTMENT: 1. The site is located less than 5 kilometers from the Southern San Andreas Fault, a type A fault as noted on the map of "Active Fault Near-Source Zones." This map is used in conjunction with the 1998 California Building Codes tables 16-S and 160T in the structural design of the facility. 2. The facility should be categorized in Occupancy Category 3 entitled"Special Occupancy Structures"as defined in the California Building Codes table 16-K provided that the aqueous ammonium hydroxide storage tanks are not housed within a building or structure. The occupancy category will define the seismic and wind design importance factors to be used in the structural design of the facility. 3. Since the facility is defined in Table 16-K as a category 3 structure,the site should require "structural observation" as defined in 1998 California Building Codes section 1702. 4. The site is located in seismic zone 4 and should conform to all California Building Codes design criteria for that seismic zone. 5. The City of Palm Springs is located in an 80 mph exposure C minimum wind design area. Due to the site location and height of the exhaust stack, it would be highly advisable to employ the more stringent wind design criteria used for the wind turbine support columns on nearby sites. Page 4 of 11 Ocotillo Energy Project— Case No. 5.0874E Recommendations to the California Energy Commission 6. The applicant shall make the appropriate construction tax payment to the City. FIRE: 1. Provide a "Knox" key box or gate switch for emergency, after hours, access. 2. Provide address numbers that are large enough to be visible from the frontage road . 3. Prior to operation of the facility,training shall be provided to emergency response personnel regarding the appropriate fire suppression methods and other emergency procedures specific to this type of project. ENGINEERING: Before final acceptance of the project, all conditions listed below shall be completed to the satisfaction of the City Engineer. STREETS 1. The Engineering Department recommends deferral of off-site improvement ITEMS 9 THRU 18 at this time due to lack of full improvements in the immediate area.The developer shall enter into a covenant agreeing to construct all mentioned improvements along the entire frontage upon the request of the City of Palm Springs City Engineer at such time as deemed necessary.The covenant shall be submitted with the Grading Plan.The Grading Permit will not be issued until completion of the covenant. 2. Any improvements within the street right-of-way require a City of Palm Springs Encroachment Permit. Work shall be allowed according to Resolution 17950 - Restricting Street Work on Major and Secondary Thoroughfares. 3. Submit street improvement plans prepared by a Registered Civil Engineer to the Engineering Department.The plan(s)shall be approved by the City Engineer prior to issuance of any grading or building permits. Minimum submittal shall include the following, IF applicable: A. Copy of signed Conditions of Approval from Planning Department. B. All agreements and improvement plans approved by City Engineer, IF applicable. DILLON ROAD 4. Construct an 8 inch curb and gutter, 38 feet NORTH of centerline along the entire Page 5 of 11 h, 6 , Ocotillo Energy Project—Case No. 5.0874B Recommendations to the California Energy Commission frontage of the subject property per City of Palm Springs Standard Drawing No.200. 5. The driveway approach shall be constructed in accordance with City of Palm Springs Standard Drawing No. 201 and have minimum width of 24 feet. 6. Constructa minimum 8 foot wide sidewalk behind the curb along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 210. 7. Construct a curb ramp meeting current California State Accessibility standards at the NORTHWEST AND NORTHEAST corners of the MAIN DRIVEWAY subject property per City of Palm Springs Std. Dwg. Nos. 212 and 212A. 8. Construct pavement with a minimum pavement section of 5 inch asphalt concrete pavement over 4 inch aggregate base with a minimum subgrade of 24 inches at 95%relative compaction,OR equal,from edge of proposed gutterto centerline along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 110 and 340. The pavement section shall be designed, using "R" values, by a licensed Soils Engineer and submitted to the City Engineer for approval. MELISSA LANE * 9. Construct an 6 inch curb and gutter, 20 feet WEST of centerline along the entire frontage of the subject property per City of Palm Springs Standard Drawing No.200. * 10. Construct the WEST half of an 8 foot cross gutter and spandrel at the intersection of DILLON ROAD and MELISSA LANE with a flow line parallel to the centerline of DILLON ROAD in accordancewith Cityof Palm Springs Standard Drawing No.200 and 206. * 11. Construct a minimum 5 foot wide sidewalk behind the curb along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 210. * 12. Construct a curb ramp meeting current California State Accessibility standards at the SOUTHEAST cornerof the subject property per City of Palm Springs Std.Dwg. Nos. 212 and 212A. * 13. Construct pavement with a minimum pavement section of 3 inch asphalt concrete pavement over 6 inch aggregate base with a minimum subgrade of 24 inches at 95%relative compaction,OR equal,from edge of proposed gutterto centerline along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 110 and 340. The pavement section shall be designed, using "R" values, by a licensed Soils Engineer and submitted to the City Engineer for approval. 16TH AVENUE Page 6 of 11 Ocotillo Energy Project—Case No. 5.0874B Recommendations to the California Energy Commission * 14. Construct an 8 inch curb and gutter, 32 feet SOUTH of centerline along the entire frontage of the subject property per City of Palm Springs Standard Drawing No.200. * 15. Construct the WEST half of an 8 foot cross gutter and spandrel at the intersection of 16T"AVENUE and MELISSA LANE with a flow line parallel to the centerline of 16T" AVENUE in accordance with City of Palm Springs Standard Drawing No.200 and 206. * 16. Construct a minimum 8 footwide sidewalk behind the curb along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 210. * 17. Construct a curb ramp meeting current California State Accessibility standards at the NORTHEAST cornerofthe subject property per City of Palm Springs Std. Dwg. Nos. 212 and 212A. * 18. Construct pavementwith a minimum pavement section of 3 inch asphalt concrete pavement over 6 inch aggregate base with a minimum subgrade of 24 inches at 95%relative compaction,OR equal,from edge of proposed gutterto centerline along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 110 and 340, The pavement section shall be designed, using "R" values, by a licensed Soils Engineer and submitted to the City Engineer for approval. SANITARY SEWER 19. Construct private sanitary sewer system in accordance with City of Palm Springs Ordinance No. 1084. Construct laterals from the building to the property line for future connection to the Mission Springs Water District's sewer system. 19A. Developer shall comply with Mission Springs Water District requirements for construction of sanitary sewer mains. 20. Developershall complete and install all necessary sewer connections to the Mission Springs Water District's sewer system within six (6) months after notice of sewer availability. GRADING 21. A copy of a Title Report prepared/updated within the past 3 months and copies of record documents shall be submitted to the City Engineerwith the first submittal of the Grading Plan. 22 The developer shall provide, to the City Engineer, a letter of authorization from all adjacent property owners whose property will be disturbed during the grading process. Page 7 of 11 Ocotillo Energy Project— Case No. 5.0874B Recommendations to the California Energy Commission 23. Submit a Grading Plan prepared by a Registered Professional to the Engineering Department for plan check. Grading plan shall be submitted to the Planning Department for comments priorto submittal to the Engineering Department.The PM 10 (dust control)Plan shall be submitted to and approved by the Building Division priorto approval of the grading plan.The Grading Plan shall be approved bythe City Engineer prior to issuance of any grading or building permits. Minimum submittal includes the following: A. Copy of Planning Department comments regarding the grading plan. B. Copy of signed Conditions of Approval from Planning Department. C. Copy of Site Plan stamped approved and signed by the Planning Department. D. Copy of Title Report prepared/updated within past 3 months. E. Copy of Soils Report, IF required by these conditions. F. Copyof the General Construction Activity Storm Water Permitfrom the State Water Resources Control Board (Phone No. 916 657-0687) to the City Engineer prior to issuance of the grading permit. 24. Drainage swales shall be provided adjacentto all curbs and sidewalks-3'wide and 6" deep - to keep nuisance water from entering the public streets, roadways, or gutters. 25. Developershall obtain a General Construction Activity Storm Water Permitfrom the State Water Resources Control Board (Phone No. (916)-657-0687)and provide a copy of same,when executed,to the City Engineer priorto issuance of the grading permit. 26. In accordance with City of Palm Springs Municipal Code, Section 8.50.00, the developer shall post with the City a cash bond of two thousand dollars($2,000.00) per acre for mitigation measures of erosion/blowsand relating to his property and development. 27. A soils report prepared by a licensed Soils Engineer shall be required for and incorporated as an integral part of the grading plan for the proposed site.A copy of the soils report shall be submitted to the Building Department and to the Engineering Departmentalong with plans,calculations and other information subjectto approval by the City Engineer prior to the issuance of the grading permit. 28. Contactthe Building Departmentto get information regarding the preparation of the Page 8 of 11 Ocotillo Energy Project— Case No. 5.08746 Recommendations to the California Energy Commission PM10 (dust control) Plan requirements. 29. In cooperation with the Riverside County Agricultural Commissioner and the California Department of Food and Agriculture Red Imported Fire Ant Project, applicants for grading permits involving a grading plan and involving the import or export of soil will be required to present a clearance document from a Department of Food and Agriculture representative in the form of an approved "Notification of Intent To Move Soil From or Within Quarantined Areas of Orange, Riverside,and Los Angeles Counties"(RIFA Form CA-1)ora verbal release from that office priorto the issuance of the City grading permit. The California Department of Food and Agriculture office is located at 73-710 Fred Waring Drive,Palm Desert. (Phone:760- 776-8208) DRAINAGE 30. The developer shall accept all flows impinging upon his land and conduct these flows to an approved drainage structure. On-site retention/detention or other measures approved by the City Engineer shall be required if off-site facilities are determined to be unable to handle the increased flows generated bythe development of the site. Provide calculations to determine if the developed Q exceeds the capacity of the approved drainage carriers. ON-SITE 31. The minimum pavement section forthe MAIN ACCESS ROAD and on-site parking areas shall be 2-1/2 inch asphalt concrete pavement over 4-inch aggregate base with a minimum subgrade of 24 inches at 95%relative compaction,OR equal.The pavement section shall be designed, using "R"values, determined by a licensed Soils Engineer and submitted with the Fine Grading Plan to the City Engineer for approval. The construction heavy haul access roads shall be temporarily paved with 3 inch asphalt concrete pavement over 24 inches native soil at 95% relative compaction, OR equal. The remaining on-site roads shall be surfaced with gravel or crushed stone. 32. The on-site parking lot shall be constructed in accordance with City of Palm Springs Zoning Ordinance, Section 9306.00. Page 9 of 11 Ocotillo Energy Project— Case No. 5.0874E Recommendations to the California Energy Commission GENERAL 33. Any utility cuts in the existing off-site pavement made by this development shall receive trench replacement pavement to match existing pavement plus one additional inch.See City of Palm Springs Standard Drawing No. 115.Pavement shall be restored to a smooth rideable surface. 34. All existing and proposed utility lines that are less than 35 kV on/or adjacent to this project shall be undergrounded. The location and size of the existing overhead facilities shall be provided to the Engineering Department along with written confirmation from the involved utility company(s) that the required deposit to underground the facility(s) has been paid, prior to issuance of a grading permit. All undergrounding of utilities shall be completed prior to issuance of a Certificate of Occupancy. 35. All proposed utility lines on/or adjacent to this project shall be undergrounded prior to issuance of a Certificate of Occupancy. 36. All existing utilities shall be shown on the grading/street plans. The existing and proposed service laterals shall be shown from the mainline to the property line.The approved original grading/street plans shall be as-built and returned to the City of Palm Springs Engineering Department prior to issuance of the certificate of occupancy. 37. The developer is advised to contact all utility purveyors fordetailed requirements for this project at the earliest possible date. 38, Nothing shall be constructed or planted in the corner cut-off area of any driveway which does or will exceed the height required to maintain an appropriate sight distance per City of Palm Springs Standard Drawing No. 203. 39. All proposed trees within the public right-of-way and within 10 feet of the public sidewalk and/or curb shall have City approved deep root barriers installed per City of Palm Springs Engineering specifications. MAP 40. The Title Report prepared for subdivision guarantee for the subject property, the traverse closures for the existing parcel and all lots created therefrom,and copies of record documents shall be submitted with the Parcel Map to the Engineering Department. 41. The Parcel Map,to create a separate parcel forthe electric generating facility,shall be prepared by a licensed Land Surveyor or qualified Civil Engineer and submitted Page 10 of 11 Ocotillo Energy Project— Case No. 5.0874B Recommendations to the California Energy Commission to the Engineering Departmentfor review.Submittal shall be made priorto issuance of grading or building permits. 41A. An improvement certificate listing the street improvements for the other parcel created by said map shall be made part of the parcel map. See items listed below: List all street improvements for Dillon Road, 161h Avenue and Melissa Lane as needed based on streets fronting on the other parcel created. DIABLO ROAD A. Construct an 8 inch curb and gutter, 38 feet EAST of centerline along the entire frontage,with a 35 foot radius curb return at the SOUTHWEST AND NORTHWEST corners of the subject property per City of Palm Springs Standard Drawing No. 200. B. The driveway approach(s) shall be constructed in accordance with City of Palm Springs Standard Drawing No.201 and have minimum width(s)of24 feet. C. Construct the EAST half of an 8 foot cross gutter and spandrel at the intersection of DILLON ROAD and DIABLO ROAD with a flow line parallel to the centerline of DILLON ROAD in accordance with City of Palm Springs Standard Drawing No. 200 and 206. D. Construct the EAST half of an 8 foot cross gutter and spandrel at the intersection of 161h AVENUE and DIABLO ROAD with a flow line parallel to the centerline of 16T" AVENUE in accordance with City of Palm Springs Standard Drawing No. 200 and 206, E. Construct a minimum 8 foot wide sidewalk behind the curb along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 210. F. Construct a curb ramp meeting current California State Accessibility standards at the NORTHWEST AND SOUTHWEST corners of the subject property per City of Palm Springs Std. Dwg. Nos. 212 and 212A. G. Remove and replace existing pavement with a minimum pavement section of 5 inch asphalt concrete pavement over 4 inch aggregate base with a minimum subgrade of24 inches at 95%relative compaction,OR equal,from edge of proposed gutterto centerline along the entirefrontage in accordance with City of Palm Springs Standard Drawing No. 110 AND 340. The pavement section shall be designed, using "R"values, by a licensed Soils Engineer and submitted to the City Engineer for approval. Page 11 of 11 Ocotillo Energy Project— Case No. 5.0874B Recommendations to the California Energy Commission TRAFFIC 42. The developer shall provide a minimum of48 inches of sidewalk clearance around all street furniture, fire hydrants and other above-ground facilities for handicap accessibility.The developershall provide same through dedication of additional right- of-way and widening of the sidewalk or shall be responsible for the relocation of all existing traffic signal/safety light poles, conduit, pull boxes and all appurtenances located on the DI LLON ROAD, 16"AVENUEAND MELISSA LANE frontages of the subject property. 43. Construction signing,lighting and barricading shall be provided for on all projects as required by City Standards or as directed by the City Engineer.As a minimum, all construction signing, lighting and barricading shall be in accordance with State of California,Departmentof Transportation,"MANUAL OFTRAFFIC CONTROLS FOR CONSTRUCTION AND MAINTENANCE WORKZONES"dated 1996,orsubsequent additions in force at the time of construction. 44. This property is subject to the Transportation Uniform Mitigation Fee based on the INDUSTRIAL ITE Code D land use. ORDINANCE NO. AN ORDINANCE OFTHE 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 IN THE "E-I" ENERGY INDUSTRIAL ZONE. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1: Section 92.17.2.00 is amended to read as follows(underlining denotes additions): The "E-I energy industrial zone is intended to provide areas for alternative energy development, natural qas fueled electrical generation facilities, and limited industrial uses in those areas which by virtue of strong prevailing winds are ideally suited for large-scale development of wind energy. Alternative and natural pas fueled electrical generation facilities energy development are intended as the principal land use, with the permitted industrial uses serviced directly,and primarily, by alternative energy and natural gas fueled for electrical needs. The retention of open space is encouraged. No industrial use shall be permitted which, by the nature of its development or operation, will in any way adversely affect the resort environment of the city. SECTION 2. Section 92.17.2.01.D.7.d is amended to read as follows: d. Natural Gas Fueled Electrical Generation SECTION 3. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after passage. SECTION 4. PUBLICATION. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance,and to cause the same or a summary thereof or a display advertisement, duly prepared according to law, to be published in accordance with law. ADOPTED this day of 2001 AYES: NOES: ABSENT: ATTEST CITY OF PALM SPRINGS, CALIFORNIA By: City Clerk Mayor REVIEWED AND APPROVED AS TO FORM ik A