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HomeMy WebLinkAbout11-02-2000 City Council Study SessionMINUTES CITY COUNCIL STUDY SESSION CTTY OF LAKE ELSINORE 130 50UTH MAIN STREET LAKE ELSINORE, CALIFORNIA THURSDAY, NOVEMBER 2, 2000 .............................................................................., CALL TO ORDER Mayor Brinley called the City Council Study Session to order at 3:08 p.m. PLEDGE OF ALLEGIANCE Mayor Brinley led the Pledge of Allegiance. ROLL CALL PRESENT: COUNCILMEMBERS: KELLEY, PAPE, SCHIFFNER, BRINLEY ABSENT; COUNCILMEMBERS: METZE Also present were: City Manager Watenpaugh, Assistant City Manager Best, Administrative Services Director Boone, Community Development Director Brady, Community Services Director Sapp, Information/ Communications Manager Dennis, Lake Operations Manger Kilroy, City Treasurer Ferro and Deputy City Clerk Bryning. DISCUSSION ITEM L Lake Elsinore Advanced Pump Stora~Project. (F:92.7) City Manager Watenpaugh noted that the team from Enron would be presenting a Power point program and asked that all questions be held until the end of the presentation. He introduced Rob Bakondy of Enron. Rob Bakondy of Enron North America, asked each member of the team to introduce themselves as follows: Rex Wait, Engineer from The Nevada Hydro Company, Inc.; Kathy Russeth, Public Relations Consultant for Enron; Peter Lewandowski, President of The Nevada Hydro Company, Inc and the environmentalist; Roger Shintaku, Civil Engineer Consultant for Enron and the liaison for the regulatory agencies; Dan Greenwell with The Nevada Hydro Company, Inc.; and Jack Cahil Consultant with The Nevada Hydro Company, Ina Mr. Bakondy presented a personal background and his qualifications relating to his employment with Enron. He then presented an overview of the history of Enron and their involvement in the corporate industry. Mr. Wait stated that the reason he had included the facts regarding Lake Elsinore was for Council benefit. He noted that it was necessary to provide this information to other agencies. He explained that one of their jobs through the licensing process was to start at the Federal Government level and work PAGE TWO - STUDY SESSION - NOVEMBER 2, 2000 down to the local agencies. He stated that it was his job to let the various agencies know what they are doing and what the project will include. He presented an overview of the history of the project as follows: PROJECT HISTORY • Elsinore Valley Municipal Water District "Districts" - EVMWD, original application for FERC; 3/92 • Application was pre-empted by adjoining cities: *Anaheim, Azusa, Banning, Colton & Riverside "Cities" 2/92 *"Cities"& "District" concluded that EVMWD develop project *"Cities" surrendered their application for license; 9/94 • EVMWD entered into an agreement with the Hydro Company in early '97 to develop project • The Hydro Company and EVMWD entered into agreements with Enron North America to pursue project development • LEAPS, LLC is the project owner and developer, and is a 100% owned subsidiary of Enron North America PROJECT DESCRIPTION • Nominal 500 MW power project utilizing pump turbine machines • Head lake (upper reservoir residents in Clevland National Forest, Morrell Canyon or Decker Canyon, South Fork • Lake Elsinore to be the lower reservoir with penstock twuiels for inlet/outfall • Power plan ca~ern - 240 feet below the surface of Lake Elsinore • Electrical switchyard to be located on surface adjacent to power plan building with interconnection to Southern California Cities • Advanced pump storage plan: * Pump lower reservoir water to upper reservoir during off peak energy periods * Return water through the turbines and generate power during peak energy periods. TECHNOLOGY/EQUIPMENT ' • Utilize Voith Siemens pump turbines • Each unit designed to pump water or generate power, coupled with 225,000 HP generators; 167 Mw, each pump turbine @ 13.8 KV, (total of three (3) units) • penstocks, each 14 ft. Diameter • Power Plan: * Total head at turbines = 1600 ft. * Lake will fluctuate 18" max. (over 16 hour period) • Water system flow: * Head Lake, Morrell is at 2880 ft. elevation and will hold = 5,500 acre ft. PAGE THREE - STUDY SESSION - NOVEMBER 2, 2000 * Lower reservoir, Lake Elsinore is at 1249 ft. elevation and contains = 68,000 acre feet • Control & Monitoring * Innovative, state of the art electronics, PLC * Interact with California lSO via a direct communications links * Continuous online status, available for trading functions Mr. Bakondy indicated that the schedule provided was just an overview of a much larger schedule. He noted that it was an aggressive schedule and it was hoped that they would be efficient enough to secure a conditional permit from FERC by the end of December of 2001. Mayor Brinley asked for the definition of FERC. Mr. Bakondy advised that FERC stands for Federal Energy Regulatory Commission. He presented the proposed schedule as follows: 5CHEDULE • 9/15/00; submit preliminary application to FERC • 10/26/00; initial consultation package to all agencies • 12/O1/00; all agencies receive official permitting package • 12/O1/00; select equipment supplier • 12/15/00; complete land easements and consents • 2/25/O1; select EPC contractor • 10/30/O1 finalize design • 11/10/O1; select lender consortium • 12/31/O1; complete financial close • 1/02/02; start construction • 9/15/04; start of commercial operations Peter Lewandowski, President of The Nevada Hydro Company, Inc. presented an averview of the benefits of the project as follows: BENEFITS • Provide much needed electricity to San Diego and Los Angeles without creating air emissions. • Provide reservoir in Cleveland National Forest for fire fighting. • Provide aeration of Lake Elsinore, which will result in improvement of Lake biology and quality of Lake recreation. • Provide economic city growth during & after construction. Mr. Bakondy stated that Enron is a company that believes in community involvement and noted several projects facilitated by Enron. He assured Council that Enron looks for local people to work on the project, both during construction and later to operate the facility. PAGE FOUR - STUDY SESSION - NOVEMBER 2, 2000 Kathy Russeth, Public Relations Consultant for Enron, noted that no project is risk free and outlined the risks and mitigation of those risks as follows: RISKS • Community awareness and public relations • California agencies review process • FERC approval process • Civil Consttuction MITIGANTS • Early education, interactive discussions, design considerations • Create a sense of urgency, provide support as necessary for fast responses • Provide approved subcontractor to FERC to help with permit writing, use alternative procedures • Provide community with an agreed upon construction schedule of workable hours for certain functions Mr. Bakondy stated that the project would not move forward without the community, area and City support. He noted that FERC requires community involvement. Mayor Brinley asked if FERC was the lead agency for this project, and whether their approval was necessary for the project to move farward. Mr. Bakondy confirmed. He stated that they have been in contact with the U.S. Forest Service and had a very positive meeting. Mr. Bakondy stated that they would be available to answer any questions. Mayor Brinley clarified that the project would benefit the community as a whole and would supply jobs to the community. She further clarified that they would purchase supplies and equipment from local resources if possible. Mr. Bakondy confirmed. She asked what the project could contribute to the local economy. Mx. Wait stated that he did not have a current figure, however in the initial study it was thought the project would generate approximately $100 million. Mr. Bakondy stated that an independent consultant was performing economic studies and he would get back to Council with more accurate figures. Mayor Brinley stated that she felt that this project would be a real asset to the community for its job creation. She questioned the water level of the Lake and asked if Enron would be maintaining the water level of the Lake. Mr. Bakondy stated that they would. Mayor Brinley asked if they would be providing supplemental water if needed. Mr. Bakondy stated that they would. She asked if Mr. Bakondy could provide a figure on the cost of water. She requested confirmation that Enron would be working with the JPA that was formed because of Proposition 13 and providing a presentation to them. Mr. Bakondy confirmed. He stated that they were not present to replace anything that the JPA had on their plates, however they would supplement and support. Ms. Russeth indicated that Enron would sign a project labor PAGE FIVE - STUDY SESSION - NOVEMBER 2, 2000 agreement and they have begun discussions with the 5an Bernardino/ Riverside Building trades and they do build with Union Labor. Councilwoman Kelley commented that Council was only aware of this project by what they haee read in the newspapers. She noted that to her understanding, public relations will be in the forefront and is the initial step that must be taken. She commented on the bad start the project had with regard to public relations and asked how they would correct the situation. She asked how Enron would formulate the Committee and coordinate with the 5upervisor. Ms. Russeth stated that she has no firm answer at this time, as she had not met with the Supervisor and had not had the time to share information with him that has been shared with the City Council today. She stated that she would be presenting a draft charter and asked that Council consider appointment of a person by each Councilmember. Mayor Brinley requested confirmation that Ms. Russeth had an appointment with Supervisor Buster next week. Ms. Russeth stated that she would be meeting with the people from Lakeland Village and had scheduled an appointment with Supervisor Buster, however that appointment had since been rescinded. She explained that Supervisor Buster had told her that he would not meet or speak with her personally and if she wished to speak to him she would have to put it in writing. Ms. Russeth distributed the Draft copies of the proposed Committee Charter. Councilwoman Kelley confirmed that it was Enron's committee. Ms. Russeth stated that it was the Lake Elsinore Advanced Pump Storage (LEAPS) Public Advisory Committee. Councilwoman Kelley stated that Enron would be overseeing the Committee and not EVMWD. Ms. Russeth confirmed. Ms. Russeth noted the Draft and explained that it would evolve over time. She stated that she knew that there had been a great deal of criticism of the fact that there were going to be five members appointed by the City Council. She stated that the committee would consist of 15 people and any member of the group is going to have to form a coalition if anything will be accomplished. She stated that one of the reasons that she chose the five from the City was because one of the key benefits would be improving the water quality and level of Lake Elsinore. Mayor Brinley asked if there would be five members from the Water District as well. Ms. Russeth stated that there would be no members from the Water District since they are one of the permitting agencies. She stated that FERC requires that the applicant put a committee together, however they will not make the choices for that committee. 5he gave an overview of the various ways to be appointed to the committee. She stated that the Committee could really make a difference and would be open to the public. She noted that all they will receive for their time is dinner at their monthly meeting. Mayor Brinley clarified that this would be a hands-on committee. Ms. Russeth concurred. PAGE SIX - STUDY SESSION - NOVEMBER 2, 2000 Councilwoman Kelley asked when Ms. Russeth would want Council to make appointments. Ms. Russeth stated that she would like to have a first meeting prior to the end of the year. Mayor Brinley suggested that if the appointment were made by the last meeting of November, it would be acceptable. Ms. Russeth concurred. Councilman Schiffner stated that his only concern would be the aesthetics of the project upon completion in relation to the power lines. He stated that it seems to be an interesting project and he looked forward to watching it move along. COUNCILMAN METZE ARRIVED AT 3:50 P.M. Mayor Pro Tem Pape questioned the e~ibits and asked for an explanation and visual overview of the project. E~ibits were presented to show an aerial view of the lake and the proposed reservoir sites. Councilwoman Kelley asked how much turbulence the process would create. Mr. Wait stated that the velocity is very slow, 6 feet per second, and when the water gets to the Lake there will be a diffuser system, which will slow the velocity even more. He noted that there would not be a rushing sound of water or swimmers being sucked into the intake. Peter Lewandowski explained that the best he could explain the diffusion of the water was that it would be something similar to a french drain. He noted that the water would be piped to the Lake and would not be discharged in a single location, but rather in several locations. He noted that the objective was to minimize sediment, which would be accomplished by percolating at a very slow rate in a number of areas and oxygenating as much of the Lake as possible. Mr. Wait stated that the bulk of the project would be on U.S. Forest Service property, and noted that it is basically the water flowing underground out into the Lake that goes through County and City property. There was general discussion regarding the location of the project and e~chibits of aerial maps were presented with the location of the pump station and the proposed reservoirs. They presented the primary and secondary locations on the e~ibits. Councilman Schiffner asked for the reason why Morrell Canyon is a preferred location. Mr. Wait stated that Morrell Canyon is 100 feet higher than i~ecker Canyon and Morrell Canyon best utilizes the land since it would entail less property disturbed, since the Canyon is narrower and deeper. Mr. Lewandowski explained that Decker Canyon is a bowl and does not really have an artery, which is most conducive to creating a dam. He PAGE SEVEN - STUDY SESSION - NOVEMBER 2, 2000 further explained that Morrell Canyon is a natural canyon area with preferred existing topography, which would require a smaller dam and is at a higher elevation with a more direct penstock pipeline alignment to the pump station. There was further discussion regarding the location of Morrell Canyon. Councilwoman Kelley requested confirmation that the entire facility would be underground. Mr. Lewandowski confirmed, with the exception of the two-story building. Mayor Brinley stated that she was under the impression that there would be towers constructed. Mr. Lewandowski stated that this would not involve fossil fuel, therefore everything would be underground with the exception of the two-story building, which would be for administration. There was general discussion regarding the turbines and the amount of noise they would generate. Mr. Bakondy stated that there would be no noise since the facilities were located underground. There was general discussion regarding the silt on the Lake bottom and the intake and outlet of the water. Mr. Lewandowski stated that they are still in the study process, however that issue has been taken under consideration and sites will be carefully chosen to minimize any problems with silt. Mayor Brinley asked if Dave Stahovich, Supervisor Buster's Aide was still present; and noted that the City does realize that the County would have its own issues. Mr. Stahovich responded to Councilwoman Kelley's question in regard to where the County was in this process; and indicated that they do not know enough about the project, one way or the other, to develop a position. He explained that the County would ha~e definite issues making sure that the environmental impacts are adequately addressed. He stated that when the EIR comes through, they will be looking at it and commenting accordingly. He further stated that as far as the committee and the offer to participate in the Committee, Supervisor Buster made his request very clear. He stated that Supervisor Buster asked for a copy of the proposal in writing, before a meeting could be arranged. Mr. Stahovich stated that they would like to see what they are looking at, and stressed the number of people they will need to deal with on this project. He indicated that they would want to see who is on board before committing one way or the other. He stated that they would like to let the City know that they understand that this could ha~e tremendous benefits to the local economy and a potential up side to a project of this nature, and that would be thoroughly reviewed in the process. Mr. Stahovich indicated that they were not in the position at this time, to say if it was good, bad or indifferent. He explained that the County wants to make sure that the City understands that they will be working very closely with the City. He stated that they would like to make sure that any project of this magnitude that comes to the area, is going to benefit in every way, shape and form that it is proposed to do. He stated that with the leadership of the City, PAGE EIGHT - STUDY SESSION - NOVEMBER 2, 2000 the County and City would work through the project. He noted that the County and City have worked through other projects in the past and will process more in the future. Councilwoman Kelley asked if the County was going to go off independently. Mr. Stahovich stated that they would be doing their own committee; and noted that the way the project was presented, it was not in the County's jurisdiction and it was not necessary for the County to participate. He noted, therefore having County land use implications it was felt that the project should be reviewed from that aspect, in conjunction with whatever the City, Water District, Lake Authority and Water District and other impacted agencies decide. He stated that they would not be off all by themselves. Mayor Pro Tem Pape asked if Supervisor Buster was going to appoint someone to this Committee. Mr. Stahovich stated that they were still waiting for a proposal of what this Committee was all about. Ms. Russeth stated that she had sent the draft to Supervisor Buster. City Manager Watenpaugh stated that this Study Session was intended to give Enron the opportunity to present the program and he felt that Enron should do a presentation for the County and let them deal with that. Mayor Pro Tem Pape asked if after he has made review of the draft, is Supervisor Buster going to be willing to appoint four members to the proposed Committee, or is the County going to go out and find their own. Mr. Stahovich stated that at this point, without evaluating the purpose and makeup of the Committee, he was not sure; however it was Enron's Committee and Supervisar Buster would very likely appoint someone to that Committee. He stated that they would be looking at this from a land use perspective on their own committee. Mayor Pro Tem Pape stated that it was Council's first opportunity to lean more about the Lake Elsinare Advanced Pump Storage Project and the City's first opportunity to ask questions. He stated that priar to this, the only information the Council had, was what was in the newspapers. He asked Mr. Stahovich to convey his personal concerns that the Supervisor would take some swats at the City and make comments such as "gives the City of Lake Elsinore too much voice". He noted that there were only five proposed appointments from the City and four from the County and he didn't see where there was such a discrepancy. He asked that Supervisor Buster not take shots at the City since he is suppose to represent the City as we1L Mayor Brinley stated that she had talked to Supervisar Buster and he stated that he does want to work with the City on this issue. She thanked Mr. Stahovich for his input and stated that when the County reaches some resolution with Enron, then the City and County will be looking toward moving forward. ~ Councilman Metze stated that he did not understand where Supervisar Buster got the idea that the City was already involved, since this is the first PAGE NINE - STUDY SESSION - NOVEMBER 2, 2000 opportunity that the Council has had to see the program and convey his confusion regarding Supervisor Buster's comments. Mayor Brinley indicated that Council needs to proceed with the Study Session and thanked Mr. Stahovich for his attendance. Mr. Lewandowski presented a Power Point presentation of the proposed reservoirs at Morrell Canyon and Decker Canyon. Mayor Pro Tem Pape indicated that he had the opporiunity to meet with Roger Shintaku and stated that some of his biggest concerns were answered, one of them being the visual aspect of the project. He commented that one of his other concerns was noise and it appears that with the facility underground that would not be an issue. He suggested that one of the issues that will still need to be addressed is water quality; and indicated that the water would have to be just as good as the water in that is in the Lake, if not better. He indicated that as the City's efforts get underway to improve the water quality in the Lake, the standard would increase. He stated that Council would have to see what impacts there will be on the Lake. He indicated a study would have to be done on the effects on the surface of the Lake. Mayor Pro Tem Pape indicated that he would like to see what effect the facility would have on marinas with the variation of water levels and what effect this would have with the Princess. Councilman Metze explained that the Princess was a historic boat from Catalina. Mayor Pro Tem Pape asked what effect the facility would ha~e on fish spawning in the Lake with a shifting shoreline. He asked what the benefits would be to the City and suggested that power be provided at the Diamond Stadium; at the Parks so that Little League and Soccer won't have to pay for lights at night. He noted a Federal Loan for the Levee and suggested that consideration be given to that as well as the City Operated Campground. He asked about the topography and natural vegetation in Morrell Canyon. Mr. Lewandowski gave an overview of the species and vegetation found on both sites. He explained that they are in the process of negotiating mitigation for the use of those sites with the U.S. Forest Service. Mayor Pro Tem Pape questioned the process that will be used to design the reservoir. Mr. Lewandowski stated that there would be permit conditions imposed by the Forest Service and noted that it would be mixed use. He gave an overview of possible mitigation and how the Lake could be enhanced as well. Mayor Brinley asked if the Committee would address these issues. Mr. Lewandowski confirmed that they would. . Councilman Schiffner requested clarification whether the water level would shift drastically in Morrell Canyon. Mr. Bakondy stated that it would fluctuate approximately 35 feet. Mr. Lewandowski stated that the change would always be less than 40 feet and the fluctuation at Lake Elsinore would be approximately 1'h foot throughout the day. Councilman Metze asked PAGE TEN - STUDY SESSION - NOVEMBER 2, 2000 what depth that would be during the day. Mr. Lewandowski stated that it would be different depending on the location and time of the day. He stated that they would be conducting a study that would show the change around the Lake, both at maximum use and minimum use. He indicated that it would be based on underwater topography. Mayor Pro Tem Pape questioned the length and width of the lake in Morrell Canyon. Mr. Lewandowski stated they would provide that information at the time they have completed final design, however either lake needs to accommodate approximately 5,500 acre-feet of water. Mayor Brinley asked how deep the other lakes would be. Mr. Wait stated that they would be 200 feet at their deepest points. Councilman Schiffner asked what the consideration would be as to what site will be chosen. Mr. Lewandowski indicated that the intent of the process is both under the California Environmental Quality Act and the National Environmental Policy Act to allow provisions for alternatives. He gave an overview of the process and stated that the applicant does not determine which site will be used. He stated that Enron would start the project by having a preferred site and a secondary site, however the decision makers will ultimately select which site would be used. Councilman Metze stated that he did not want to see the City compete with Enron regarding fishing and recreation on the upper lake. Councilman Schiffner stated that the fluctuation of water would make it hard to have a good fishing area. Mr. Lewandowski stated that Federal, State, and Local Regulations are driving the project. He indicated that since it was a hydroelectric project it was subject to hydroelectric licensing processes, which place major emphasis on fisheries. He stated that they would be working with the various agencies to determine how they would comply with those requirements. He stated that it was not up to the applicant to determine if there would be recreation in direct competition with Lake Elsinore, but rather the decision makers would determine that issue. He noted that the project would enhance the water quality in Lake Elsinore and in turn enhance the fishing in the Lake. Councilman Schiffner asked what percentage of water would move in the upper lake every day. Mr. Bakondy stated that it would be significant. Mr. Wait stated that there was an engineering concern regarding the safety due to the fluctuation of the water level. Mr. Lewandowski stated that the Forest Service has already stated that they have staffing concerns and it would not be open to the publia There was general discussion regarding turbulence and the fact that there would be no turbulence %.n Lake Elsinore because of the configuration of the penstocks. Mayor Brinley called upon those persons who requested to speak as follows: PAGE ELEVEN - STUDY SESSION - NOVEMBER 2, 2000 Karen Snyder, 33266 Blanche Drive, stated that she lives in Lakeland Village and is interested in serving on the committee. She noted that she had served on the Reclaimed Water Task Force and noted that while her initial stand was against using recycled water in the Lake, through education she stated that she would prefer reclaimed water. She suggested that the maps presented should have streets and landmarks included for the benefit of the residents understanding. She asked what benefit, if any, the project would have for the average resident, such as the power rates being lower to surrounding areas affected, especially in Lakeland Village for the residential consumer. She stated that balanced representation should be a priority since the County residents will bear the brunt of the project and not the City. She questioned the bottom line for this project; main issues to be addressed should be environmental, health, recreational loss, and residential property values, what effect the intake and release of water will have on the bottom of the lake; when will accurate maps be available to show precisely by streets and landmarks, where the power towers and lines will be going; and if there was really an energy crisis or if this was a manufactured condition. Donna Franson, 7 Villa Valtelena, questioned the size of the lake that is proposed versus what was first proposed; the maintenance of the head lake and asked if that was only for 5 years or for as long as it exists. Mr. Bakondy stated that it would be for as long as there is a license, but questioned the period of the license and what happens if it is sold. Ms. Russeth explained that if the license was sold, then the new owners would ha~e to take over the maintenance; but questioned the facility in Bakersfield. Mr. Bakondy explained that it was a water pumping facility and he brought it up because of the distance the water must travel and noted that it was approximately the same as the proposed project. Mr. Bakondy stated that was being negotiated. Mrs. Franson questioned the impact on the residents and the community, the value of homes and traffic circulation. Mr. Bakondy stated that Ortega Highway is heavily traveled and it will be impacted by limited travel for construction. He noted that the economic study would address property value, any cost to the City and a concern with power lines. Mayor Brinley suggested that if there was anyone in the audience with questions they should get an address from Ms. Russeth and she could get back with the answers. Chris Hyland, 15191 Waeecrest, stated that based on the newspaper article a number of people have been calling her regarding that article. She noted that Ms. Russeth indicated that FERC was most interested in public opinion and they will get opinions. She indicated that the opinions she has been getting over the phone were that they had failed to recognize the County. She further stated that the people in the County are the ones most affected by the proposed project and those residents were not taken into account when only four appointments were suggested. 5he suggested that the Council would choose people that live in areas that would not be affected by the PAGE TWELVE - STUDY 5ESSION - NOVEMBER 2, 2000 project. She suggested that Mr. Bakondy wear armor when he attends the ne~ meeting in the County. Mayor Brinley noted the options thaf were presented to the City; and stated that there was a great deal to get through and there would be a number of public hearings to address the issue. She further stated that it was going to be e~remely important for the Council to select members for the committee that will cover the entire City. She indicated that the City was looking forward to working with Enron and the Water District, as well as eventually the County. She stated that the main goals and objectives were to make sure that Lake Elsinore benefits from this project through water quality and employment. She encouraged the public to write Enron with their concems to give Enron the opportunity to address the issues. Councilman Metze commented that the County might be doing Enron a favor by appointing a separate committee. Mr. Bakondy concurred. ADJOURNMENT THE CITY COUNCIL STUDY S~SS~ON W ADJOiJRNED AT 4:50 P.M. L~ P~iMELA CITY OF submitted, ` / // // ~ City of Lake Elsinore AT EST: w~~, VICKI SAD~MC CITY CLERK/ HUMAN RESOUI2C'ES DIR~CTOR CITY OF LAKE ELSINORE ~EY,~IVIAYOR ELSINORE (