May 23, 2022 City Council Special Meeting

[CALL TO ORDER: ]

[00:00:05]

CALL THIS AFTERNOON'S MEETING TO ORDER, A SPECIAL MEETING ON MAY 23RD AT 4:00 PM.

AND WITH THAT, COULD THE CLERK PLEASE CALL ROLL? LET THE RECORD SHOW THAT ALL FIVE COUNCIL MEMBERS ARE PRESENT AND WILL PLEASE RISE FOR THE PLEDGE OF ALLEGIANCE AND MR. BLACKBURN WILL LEAD US.

PLEASE JOIN ME IN THE PLEDGE TO OUR FLAG.

ALLEGIANCE] MOVING ON TO DEPARTMENTAL AND CITY MANAGER REPORTS.

[1. UPDATE ON STATUS OF NEGOTIATIONS TO RELOCATE SDG&E’S NORTH COAST SERVICE CENTER TO THE CITY-OWNED PARKING LOT PROPERTIES AT THE SHOPPING CENTER KNOWN AS THE SHOPPES AT CARLSBAD]

ONLY PUBLIC COMMENT ON AGENDA ITEM NUMBER ONE WILL BE HEARD AND TAKEN IMMEDIATELY AFTER THE STAFF PRESENTATION.

WITH THAT, I'M GOING TO TURN IT OVER TO MR. CHADWICK. DO YOU HAVE ANY COMMENTS? YES, SIR, AND THANK YOU FOR THE INTRODUCTION.

AND BEFORE I TURN IT OVER TO CELIA, I JUST WANT TO REMIND BOTH COUNCIL, AS WELL AS THE AUDIENCE, THAT WHAT WE'RE HERE TO DISCUSS ARE NEGOTIATIONS RELATED TO THE NORTH COAST SERVICE CENTER AND THE CITY OWNED PARKING LOT AT PROPERTIES AT THE SHOPS.

BUT WHAT WE'RE NOT HERE TO TALK ABOUT ARE THE CURRENT LAND USES OR THE USES ABOUT THE PROPERTY.

AGAIN, WE'RE HERE TO DISCUSS THE NEGOTIATIONS.

AND AGAIN, JUST TO BE VERY CLEAR, NOT LAND USE ISSUES THAT CAN OCCUR IN A MUCH LATER DATE.

THE ONLY FOCUS HERE IS GOING TO BE ON THE NEGOTIATIONS.

WITH THAT SAID, I'LL TURN IT OVER TO CELIA.

THANK YOU VERY MUCH HONORABLE MAYOR AND COUNCIL, COMMUNITY.

I'M GOING TO SPEAK MORE TODAY THAN YOU USUALLY HEAR ME SPEAK.

I'M GOING TO TAKE ABOUT 6 MINUTES TO START THIS AGENDA ITEM WITH SOME BACKGROUND.

AND I THINK IT'S IMPORTANT TO PUT THE PROJECT IN CONTEXT BEFORE I TURN THE PRESENTATION OVER TO OUR DEPUTY CITY MANAGER, GARY BARBERIO.

SO THE 2014 SETTLEMENT AGREEMENT WITH SDG&E AND NRG AND WHERE WE ARE IN IMPLEMENTING THAT SETTLEMENT AGREEMENT COINCIDE ALMOST EXACTLY WITH MY TENURE HERE AT THE CITY.

I CAME TO THE CITY IN 2013, WHICH IS WHEN SDG&E APPROACHED THE CITY WITH THIS POTENTIAL DEAL.

BASICALLY, I'VE BEEN WORKING ON THIS AGREEMENT FOR MY ENTIRE TENURE AT THE CITY AND I CARE DEEPLY THAT IT CONTINUE EVEN AFTER MY RETIREMENT.

SO IN A LOT OF WAYS I'M DRIVING THE TIMING OF THIS PRESENTATION AND I GUESS I'M BOTH HAPPY FOR AND APOLOGIZED FOR THAT DEPENDING ON HOW THE MEETING GOES.

SO AS WE LAY IT OUT IN THE STAFF REPORT, THE IMPETUS BEHIND THE SETTLEMENT AGREEMENT WAS THE CLOSURE OF SAN ONOFRE.

SAN ONOFRE CLOSED NINE YEARS EARLIER THAN EXPECTED, AND THAT CLOSURE LED CALIFORNIA'S GOVERNOR LEFT HIM WITH SIGNIFICANT CONCERNS ABOUT THE RELIABILITY OF THE ELECTRICAL GRID.

THE GOVERNOR THEN PRESSURED ANYONE WITH AN ACTIVE PERMIT BUT PRESSURED SDG&E TO ENTER INTO AN AGREEMENT WITH NRG TO PURCHASE THE POWER FROM NRG NEWLY PERMITTED POWER PLANT HERE IN CARLSBAD.

IT LOOKED LIKE IT WAS THE NEXT ONLINE AND THEY WANTED IT OPERATIONAL.

BUT SDG DID NOT LIKE NRG TECHNOLOGY.

THEY WANTED A PEAKER PLANT INSTEAD.

SDG&E URGED NRG TO CHANGE ITS TECHNOLOGY TO A PEAKER PLANT.

BUT IN ORDER TO ACCOMPLISH THAT CHANGE IN A TIMELY MANNER, NRG HAD TO SUBMIT ITS AMENDED APPLICATION TO THE CALIFORNIA ENERGY COMMISSION BY FEBRUARY 2014.

SO THOSE OF YOU WHO ARE WONDERING WHY WE DIDN'T SO UP THE REAL ESTATE TRANSACTION AT THE SAME TIME AS OTHER PARTS OF THIS TRANSACTION NOW KNOW, IT WAS ESSENTIALLY DONE IN TWO PHASES. SO DUE TO YEARS OF LITIGATION BETWEEN THE PARTIES BASED ON THE CITY'S OPPOSITION TO NRG'S POWER PLANT, TRUST LEVELS WERE VERY LOW AND RELATIONSHIPS WERE STRAINED BETWEEN THE PARTIES.

THIS IS BACK IN 2013.

IN ORDER TO SECURE THE CITY'S COOPERATION, WHEN SDG&E APPROACHED THE CITY REGARDING CHANGING NRG'S TECHNOLOGY AND SUPPORTING THAT CHANGE, SDG&E CAME WITH A HOST OF IDENTIFIED BENEFITS TO THE CITY, INCLUDING REMOVAL OF THE OLD POWER PLANT OFF OF THIS EXCUSE ME, REMOVAL OF THE OLD POWER PLANT AND RELOCATION OF THE SDG&E SERVICE YARD OFF OF THE COAST, SOMETHING THAT THE CITY HAD LONG DESIRED.

GOING A LITTLE BIT SLOW, SO IT'S A COMPLICATED STORY.

ULTIMATELY, THE PARTIES SUCCESSFULLY CRAFTED THE 2014 SETTLEMENT AGREEMENT.

AND TO THE CREDIT OF EACH OF THE PARTIES IN THIS ROOM, MUCH OF IT HAS ALREADY BEEN ACCOMPLISHED.

THE PEAKER PLANT IS ONLINE.

SDG&E IS ABLE TO PURCHASE POWER FROM IT WHEN NECESSARY, AND THE ABOVE GROUND DEMOLITION OF THE OLD POWER PLANT IS COMPLETE.

SO I WANT TO RECOGNIZE WHAT A HUGE BENEFIT THAT IS TO CARLSBAD.

[00:05:02]

OKAY. SO FAST FORWARD TO TODAY.

WE ARE STILL TRYING TO IMPLEMENT THE PORTIONS OF THE SETTLEMENT AGREEMENT THAT HAVE TO DO WITH SDG&E RELOCATING ITS SERVICE CENTER.

ONE OF THE PRIMARY INDUCEMENTS THAT SDG&E OFFERED RIGHT UP FRONT.

IN 2014, SDG&E OUTLINED AT A COUNCIL MEETING AND I FOUND THEIR ORIGINAL SLIDE.

ALL OF THE CONSTRAINTS THAT THEY WOULD NEED IN TERMS OF THE CRITERIA FOR THE PROPERTY, THE BUILDINGS, THE VEHICULAR ACCESS REQUIREMENTS, ETC..

SO YOU WILL SEE IN MR. BARBERIO PRESENTATION THAT THE CITY AND SDG&E HAVE LOOKED AT MORE THAN A DOZEN PROPERTIES.

BUT HERE IT IS EIGHT YEARS LATER AND WE HAVE YET TO FIND A SITE ACCEPTABLE, MUTUALLY ACCEPTABLE TO SDG&E AND THE CITY.

DURING OUR ORIGINAL SETTLEMENT NEGOTIATIONS, THE PARTIES ALL MUTUALLY CONSIDERED THE SDG&E OWNED LOT 11.

YOU'LL SEE A SLIDE OF THIS LATER.

IT'S APPROXIMATELY 20 ACRES OFF OF CANNON ROAD.

MR. BARBERIO WILL SHOW YOU THAT SLIDE.

THAT WAS ALWAYS OUR FAILSAFE SLIDE SITE.

THAT'S BECAUSE IT HAD THE SPACE AND THE REVENUE NEUTRALITY THAT WE'RE REQUIRED BY THE AGREEMENT.

SO WE ALWAYS THOUGHT NO MATTER WHAT, WE COULD GO TO LOT 11.

AND THAT'S OBVIOUS IN THE AGREEMENT.

UNFORTUNATELY, A COUPLE THREE YEARS AGO WHEN WE WERE EXPLORING LOT 11 IN DETAIL.

SDG&E DETERMINED THAT THE SITE WAS INFEASIBLE DUE TO COSTS AND PERMIT PROCESSING CHALLENGES.

THAT WAS VERY, VERY DEFLATING TO THE STAFF.

WE WERE STYMIED.

WE DIDN'T HAVE MUCH ACTION AT ALL FOR ALMOST A YEAR.

BUT THEN WE CAME TO AN OPEN, SO WE HAD AN IDEA.

WE HAD A GREAT IDEA. IF THIS WASN'T COMPLICATED ENOUGH, WE DECIDED TO BRING IN A FOURTH PARTY, AND THAT IS BROOKFIELD.

AND WE DID THAT AND WE CAME TO AN OPEN SESSION OF THIS COUNCIL IN APRIL OF LAST YEAR, AND WE RECEIVED AUTHORITY TO INVOLVE YET ANOTHER PARTY, BROOKFIELD.

BECAUSE THE CITY OWNS THE PARKING LOTS AROUND THE MALL, BUT THE PARKING LOTS ARE SUBJECT TO PARKING RESTRICTIONS AND EASEMENTS.

NONETHELESS, WE SPOKE WITH ALL PARTIES AND THEY ALL APPEARED BEFORE THE COUNCIL A LITTLE OVER A YEAR AGO AND SUPPORTED THE CONCEPT OF RELOCATING THE SERVICE CENTER TO THE BROOKFIELD SITE. NOW I WANT TO SAY, IF YOU HAVEN'T GATHERED ALREADY, THIS IS NOT AN EASY PROJECT.

WE HAVE FOUR COMPLICATED PARTIES WITH SOME COMMON BUT MANY DIFFERENT INTERESTS.

PLUS, ONCE WE GET SDG&E CONCURRENCE ON THE SITE, WE WILL STILL HAVE FUTURE ENVIRONMENTAL WORK, REGULATORY APPROVALS, COMPLEX REAL ESTATE TRANSACTIONS, AND ADDITIONAL NEGOTIATIONS TO COMPLETE AHEAD OF US.

FOR INSTANCE, THE SETTLEMENT AGREEMENT DOES NOT ADDRESS HOW TO HANDLE SDG&E, SCOPE CREEP AND THAT THEIR SPACE NEEDS HAVE INCREASED OVER TIME.

NOR DOES IT SAY HOW TO HANDLE THE LACK OF AN ECONOMIC ESCALATOR IN NRG'S 22 AND A HALF MILLION DOLLAR COMMITMENT OR CONTRIBUTION.

NOR DOES IT TALK ABOUT INFLATION.

BUT WE DO KNOW ONE THING, AND THAT IS THE LONGER THIS PROJECT TAKES, THE MORE EXPENSIVE IT GETS.

ONCE WE GET AN ACCEPTABLE SITE, WE CAN MOVE ON TO SOLVING THOSE REMAINING ISSUES AND CHALLENGES.

SO I WANT TO RECOGNIZE EACH AND EVERY ONE OF THE NEGOTIATING TEAMS THAT IS HERE TODAY, NRG, SGG&E, AND BROOKFIELD.

WE HAVE SPENT A LOT OF TIME AND ENERGY ON THIS PROJECT OVER THE LAST YEAR.

AS YOU KNOW, MY OWN PERSONAL, PERSONAL PHILOSOPHY IS I THINK ANYONE CAN BREAK A DEAL.

IT DOESN'T TAKE ANY TALENT WHATSOEVER TO BREAK A DEAL.

IT'S EASY TO CRITICIZE, DELAY OVER, INFLATE COSTS, OR HAVE A DOOMSDAY ATTITUDE ABOUT REQUIRED APPROVALS.

MAKING A DEAL, ON THE OTHER HAND, REQUIRES AN A TEAM WITH GOOD COMMUNICATION, COMMON OBJECTIVES, TRUST, AND A MEASURE OF FAITH.

AND I SAY THAT BECAUSE, AFTER ALL, IT USUALLY INVOLVES DOING SOMETHING THAT HASN'T BEEN DONE BEFORE.

SO MUCH AS I WANTED TO PRESENT TO THIS COUNCIL TONIGHT AN AGREEMENT ON THE BROOKFIELD SITE, WE'RE JUST NOT QUITE THERE YET.

SDG&E STILL HAS TO LOOK AT SOME THINGS.

BUT THIS IS THE CLOSEST WE'VE EVER BEEN AND WE HAVE GOOD A TEAMS WORKING ON THIS PROJECT.

I KNOW THE PARTIES ACTING IN GOOD FAITH CAN GET THIS DONE.

WHY AM I SO CERTAIN THAT WE CAN GET THIS DONE? BECAUSE THERE IS SIGNIFICANT BENEFIT FOR EACH OF THE PARTIES IN THIS TRANSACTION.

SDG&E GETS A BRAND NEW SERVICE CENTER, REPLACING ONE THAT IS DECADES OLD.

FURTHER, THERE'S A 22 AND A HALF MILLION DOLLARS SAVINGS TO SDG&E RATEPAYERS DUE TO NRG'S CONTRIBUTION TO THE PROJECT, AND RG GETS MORE REDEVELOPMENT POTENTIAL FROM A SITE WITHOUT SDG&ES INDUSTRIAL USES AND IT CAN MOVE FORWARD WITH ITS REMAINING OBLIGATIONS UNDER THE SETTLEMENT AGREEMENT.

IT WOULD LIKE TO CONCLUDE THOSE.

BROOKFIELD GETS USE OF OR TITLE TO CITY PROPERTIES SURROUNDING THE MALL FOR HOUSING OR OTHER POTENTIAL USES TO KEEP THEM ALL CONTEMPORARY.

BROOKFIELD MAY ALSO RECOGNIZE BENEFITS FROM PUBLIC FINANCING AND FROM BEING A TRANSPORTATION HUB.

BUT MOST IMPORTANT TO THE CITY IS RELOCATING THE SERVICE CENTER WOULD REDUCE INDUSTRIAL USES ON THE COAST, SOMETHING WE'VE ALL ALWAYS WANTED, ALLOW THE CITY TO TAKE OWNERSHIP OR

[00:10:08]

ALSO, THE RELOCATION WOULD TRIGGER NRG'S COMMITMENT TO ENTER INTO A JOINT DEVELOPMENT STRATEGY WITH THE CITY REGARDING FUTURE USES OF BOTH SITES, THEREBY AFFORDING CARLSBAD'S RESIDENTS TO HAVE MORE SAY IN FUTURE USES OF THE PROPERTY.

FROM MY PERSPECTIVE, THERE IS JUST TOO MUCH GOOD HERE FOR THE PARTIES TO WALK AWAY AND IT'S TIME TO MAKE THE DEAL.

SO WITH THAT, I WILL TURN THE PRESENTATION OVER TO DEPUTY CITY MANAGER GARY BARBERIO.

THANK YOU, CELIA. MAYOR, COUNCIL MEMBERS, I'M GARY BARBERIO, DEPUTY CITY MANAGER FOR THE COMMUNITY SERVICES BRANCH.

I'LL TRY NOT TO REPEAT MUCH OF WHAT CELIA SAID, BUT I WILL ADD SOME DETAIL AND THEN SHOW YOU GRAPHICS THAT GIVE YOU A GRAPHIC REPRESENTATION OF THE SETTLEMENT AGREEMENT.

GARY, IF YOU CAN, PLEASE TALK AS DEEP INTO THE MIC AS SHE CAN SO THE LISTENING AUDIENCE WILL HEAR YOU CLEARLY.

THANK YOU. SO AS CELIA MENTIONED, THE SETTLEMENT AGREEMENT WAS APPROVED BY CITY COUNCIL IN JANUARY OF 2014.

NOW, THIS WAS DONE REALLY QUICKLY, SDG&E AND NRG CAME TO THE CITY IN OCTOBER OF 2013, AND BY JANUARY OF 2014, A THREE MONTH PERIOD, WE HAD THE AGREEMENT IN PLACE AND WE'VE BEEN WORKING ON THE IMPLEMENTATION OF THAT AGREEMENT EVER SINCE.

JUST TO GIVE THE COUNCIL AND MEMBERS OF THE PUBLIC SOME PERSPECTIVE ON THE SITE.

WE HAVE AN AERIAL. THIS IS I-5, THE RAILROAD CORRIDOR.

CARLSBAD BOULEVARD AND THE COAST.

AND THEN CANNON ROAD OUTLINED IN YELLOW IS SOME OF THE LAND THAT NRG OWNS.

THE POWER PLANT SITE WEST OF THE RAILROAD TRACKS IS ABOUT 45 ACRES.

IN THE DASHED YELLOW IS THE NEW PEAKER PLANT, THE CARLSBAD ENERGY CENTER PROJECT.

YOU CAN SEE THE POSEIDON DESAL PLANT HERE AND THE DASH GREEN.

SDG HAS A LEASE FOR A SWITCHYARD THAT THEY MAINTAIN THAT TAKES POWER FROM THE NEW POWER PLANT AND THEN PUTS IT OUT INTO THE LINES FOR DISTRIBUTION.

AND THEN IN THE WHITE DASHED LINE IS THE OUTLINE OF THE THE OLD ENCINA POWER STATION SITE, THE 400 FOOT STACK, ETC., WHERE IT IS BEING DEMOLISHED RIGHT NOW.

THE ACTUAL SERVICE CENTER SITE IS SHOWN HERE IN RED.

IT'S ABOUT 16, A LITTLE OVER 16 ACRES.

AND THEN IN GREEN IS CANNON PARK THAT IS OWNED BY SD GENIE.

THE CITY DOES HAVE A LEASE ON IT AND WE DO MANAGE AND OPERATE THAT AS A CITY PARK.

SO THE AGREEMENT, SPECIFICALLY THE PART OF THE 2014 AGREEMENT THAT SPEAKS TO THE SERVICE CENTER SITE, THE CITY AND SDG&E WERE TO WORK TOGETHER TO FIND A MUTUALLY ACCEPTABLE RELOCATION SITE.

ALSO EITHER LOOKING AT LOT 11 OR ANY OTHER SITE THAT MET THE LOCATIONAL SPECS OF SDG&E AND IT NEEDED TO BE A CERTAIN SIZE LOCATION AND ULTIMATELY IT NEEDED TO BE COST NEUTRAL TO THE RATEPAYER.

IN THE AGREEMENT, NRG AGREED TO FUND UP TO 22 AND A HALF MILLION TO BUILD SDG&E A NEW SERVICE CENTER.

THIS WAS A NUMBER THAT WAS NEGOTIATED BETWEEN ENERGY AND SDG AT THE TIME OF THE 2014 AGREEMENT.

THAT'S NOT A NUMBER THAT CAME FROM THE CITY AND THAT WAS BASED ON THE SDG&E SPECIFICATIONS AT THE TIME.

IF WE WERE SUCCESSFUL IN FINDING A SITE TO RELOCATE THE SERVICE CENTER AND BUILD THE NEW SERVICE CENTER, THE CITY WOULD TAKE OWNERSHIP TO THREE SDG&E PARCELS AND I'LL SHOW YOU THOSE SHORTLY.

AND THEN ONE OF THOSE IS THE SERVICE CENTER.

SO WE WOULD BE ADJACENT PROPERTY OWNER TO THE POWER PLANT SITE.

AND SO THAT WOULD ALLOW AN AGREEMENT CALLED THIS OUT THAT CITY AND NRG WORKING IN A JOINT DEVELOPMENT STRATEGY AS CELIA MENTIONED, OF WHAT WOULD GO ON THE TWO SITES IN THE FUTURE.

KIND OF AS A CONSOLATION PRIZE AND NOT THE COMMUNITIES OR THE CITY COUNCIL'S PREFERENCE.

BUT IF WE WERE UNSUCCESSFUL, ULTIMATELY NRG WOULD PAY THE CITY $10 MILLION AND THAT IS SECURED AND PART OF THE AGREEMENT.

[00:15:04]

THEN THAT'S DOWN HERE SHOWN IN RED AND AS SITE SIX, WE WOULD TAKE OWNERSHIP TO THAT SITE. IT'S ABOUT 16 ACRES, THE CANNON PARK SITE OWNERSHIP AND THEN THE NORTH SHORE, A PARCEL ON THE NORTH SHORE OF AGUA HEDIONDA LAGOON, WHICH IS A LITTLE OVER FIVE ACRES.

THE PARCELS SHOWN IN YELLOW ARE PARCELS THAT WE, THE CITY, GAIN SOME OWNERSHIP POSITION EITHER ACQUIRED THAT WE COULD ACCEPT LATER OR AN EASEMENT FROM NRG.

AND WE GOT THOSE ALREADY.

THOSE WERE AS PART OF THE POSEIDON DESAL APPROVAL AS WELL AS THE 2014 AGREEMENT.

SO WE HAVE ALREADY GOTTEN THOSE SECURED FROM NRG.

SO I MENTIONED SDG&ES SPECIFICATION LOCATIONAL CRITERIA.

THE NEW SERVICE CENTER SITE WOULD HAVE TO BE WITHIN CARLSBAD CITY LIMIT.

THE CITY LIMIT AND WEST OF EL CAMINO REAL, THE THE NORTH COAST SERVICE CENTER GENERALLY SERVES ALL THE WAY UP THROUGH CAMP PENDLETON, TO THE NORTH, TO THE SOUTH, TO DEL MAR, AND THEN TO THE EAST IN THE KIND OF SAN MARCOS VISTA AREA, THEY DO HAVE A SERVICE CENTER IN ESCONDIDO.

AND SO, YOU KNOW WHERE THAT BOUNDARY ENDS, THE NORTH COAST SERVICE CENTER BOUNDARY BEGINS.

IT NEEDED TO HAVE GOOD ACCESS, ROAD ACCESS FREEWAYS, MAJOR ARTERIALS OR SERVICE.

AND TO THE SERVICE AREA THAT I JUST DESCRIBED, RELATIVELY FLAT AND RECTANGULAR IN SHAPE, BE AT LEAST 10 TO 12 ACRES IN SIZE.

AND AT THE TIME OF THE 2014 AGREEMENT, IT WAS TO BE A 30 TO 32000 SQUARE FOOT OF BUILDING SPEC.

AND THAT REPRESENTS WHAT'S OUT THERE RIGHT NOW AT THE EXISTING SERVICE CENTER SITE, WHICH WAS BUILT IN 1964.

NOW, AS CELIA MENTIONED, SHE ALLUDED TO SCOPE CREEP.

SDG HAS NEW NEEDS AND THEY'RE PROJECTING THEIR NEEDS FOR THE FUTURE.

SO THE SQUARE FOOTAGE AMOUNT THAT WE ARE WORKING WITH NOW IS ABOUT 44,000 SQUARE FEET, WHICH IS ABOUT A 37% INCREASE OVER THE 30 TO 32000 SQUARE FOOT THAT WE WERE WORKING WITH IN 2014.

SO YOU ALSO MENTIONED SDGES OWNERSHIP A LOT OF 11.

AND YOU CAN SEE THAT HERE ON THE MAP.

IT'S ON CANNON ROAD ON THE NORTH SIDE OF CANON ROAD, JUST EAST OF THE STRAWBERRY FIELDS AREA.

SDG&E SPECIFICALLY INCLUDED LOT 11 INTO THE 2014 AGREEMENT AND THEY ALSO THIS WAS NOT A PARCEL THAT WAS INCLUDED IN THE THE LAND DEAL WITH CARUSO EITHER. SO THEY KEPT OWNERSHIP OF OF LOT 11 WITH THE ANTICIPATION THAT IT COULD BE A FUTURE SERVICE CENTER SITE. IT'S ABOUT ABOUT 20 ACRES.

WE DID WORK WITH THEM ON THAT SITE.

ULTIMATELY, SDG& FELT IT WASN'T FEASIBLE, AS CELIA MENTIONED.

I KNOW YOU CAN'T REALLY READ THIS GRAPHIC WELL, BUT IT'S JUST TO BE ILLUSTRATIVE.

SO THE EXISTING SERVICE CENTER IS DOWN HERE IN THIS CORNER.

A LOT OF LEVIN'S IN THIS AREA, AND THESE YELLOW SITES ARE ALL SITES THROUGHOUT THE CITY THAT WE EXPLORED FOR A RELOCATION SITE.

SO WE DID EXHAUSTIVELY LOOK THROUGHOUT CARLSBAD AT THE TIME.

MANY OF THESE SITES ARE VACANT AND MANY OF THEM NOW ARE DEVELOPED.

WE ALSO EVEN EXPLORED OUTSIDE THE BOUNDARIES OF THE LOCATION CRITERIA, EVEN LOOKING IN OCEANSIDE AT SOME PARCELS.

IN THE END, NONE OF THESE PROVED TO BE FEASIBLE, ALTHOUGH WE DID EXPEND A SIGNIFICANT AMOUNT OF RESEARCH ON THESE AND SO DID SDG&E AND THEY DID WORK HIRING CONSULTANTS TO EXPLORE SITE PLANS COULD GET THIS DONE.

THIS IS A SITE PLAN EXAMPLE OF OF LOT 11.

AND THEN THEY ALSO LOOKED AT THIS SITE HERE OFF WEST OAKS WAY OFF OF PALOMAR AIRPORT ROAD.

AND DID A SITE PLAN THERE AS WELL, DID WORK ON THAT AND EXPLORED IT.

SO WE WERE WE WEREN'T JUST SITTING AROUND TALKING.

[00:20:02]

SO I MENTIONED THE TERMINATION CLAUSE IN THE AGREEMENT.

AND IF WE'RE NOT ABLE TO FIND A MUTUALLY BENEFICIAL SITE IN THE CITY TO RELOCATE, NRG WOULD PAY US $10 MILLION AND THEN YOUR CITY STAFF RESOURCES WOULD BE LIMITED TO MONITORING AND ENFORCING THE REMAINING PROVISIONS OF THE AGREEMENT.

NRG WOULD SAVE 12 AND A HALF MILLION DOLLARS, BUT SDG&E AND ULTIMATELY THE RATEPAYER WOULD LOSE THE 22 AND A HALF MILLION DOLLARS TOWARDS A NEW CENTER.

THE OTHER BENEFIT THE CITY WOULD NOT OBTAIN IS, AS CELIA MENTIONED, WE WOULDN'T TAKE OWNERSHIP OF THOSE THREE PARCELS, INCLUDING THE LARGE SERVICE CENTER SITE.

WE WOULDN'T THEREFORE HAVE THE OPPORTUNITY TO PURSUE JOINT DEVELOPMENT STRATEGY WITH NRG .

NRG WOULD HAVE A MORE CONSTRAINED REDEVELOPMENT SITE IF WE PURSUED A JOINT DEVELOPMENT STRATEGY.

IF WE OBTAIN THE SERVICE CENTER SITE, THEY MIGHT BE ABLE TO GET VEHICLE ACCESS FOR THEIR DEVELOPMENT PROPOSAL ONTO CANON ROAD.

WITHOUT THAT, THEY'RE LIMITED TO CARLSBAD BOULEVARD.

AGAIN, I MENTIONED SDG&E WOULD FORFEIT THE 22 AND A HALF MILLION FOR A NEW SERVICE CENTER, AND THOSE COSTS WOULD BE TRANSFERRED ONTO THE RATEPAYER.

SO A COUPLE OF SHOTS OF WHAT WE USED TO HAVE.

THE ONE ON THE LEFT IS VERY ILLUSTRATIVE.

SO THIS IS THE DESAL PLANT HERE.

I MENTIONED THE SDGE SWITCH.

IT'S BACK HERE.

AND THIS IS WHERE THE POWER PLANT WAS WITH ITS 400 FOOT STACK.

AND IN THE BACKGROUND, YOU CAN SEE THE SDG&E SERVICE CENTER.

THIS. AND THEN THE ONE ON THE RIGHT IS JUST AS YOU SEE, USED TO BE ABLE TO SEE THE POWER PLANT FROM CARLSBAD BOULEVARD.

FAST FORWARD TO MARCH IN MAY THIS YEAR.

THE PHOTO ON THE LEFT IS MARCH.

DEMO WAS WELL UNDERWAY AND THEN A SHOT ON THE RIGHT FROM MAY.

PRETTY MUCH EVERYTHING ABOVE GROUND IS ALMOST TO THE GROUND.

AND THEN AS YOU SEE IT FROM CARLSBAD BOULEVARD, JUST A LITTLE BIT OF THE PLANT STICKING UP OVER THE CHAIN LINK FENCE.

SO WE CAME TO YOU IN APRIL OF LAST YEAR AND COUNCIL DIRECTED STAFF TO PURSUE RELOCATION TO TO THE CITY OWNED PARKING LOTS AT THE SHOPS.

THAT WAS 13 MONTHS AGO.

THIS IS A GRAPHIC OF THE SHOPS SHOPPING CENTER IN BLUE OUTLINES THE WHOLE SHOPPING CENTER.

IT'S ABOUT A 90 ACRE SITE.

THE YELLOW.

IS THE OWNERSHIP OF THE CITIES, THE PARKING LOT.

THE RED DASH LINE IS THE SEA LIMIT LINE BETWEEN CARLSBAD AND OCEANSIDE.

SO A PORTION OF OUR PROPERTY IS IN OCEANSIDE.

PARKING FOR THE MALL, AND THEN THE MALL'S OWNERSHIP IS SHOWN THERE IN THE MIDDLE.

AGAIN, IT'S ABOUT 90 ACRES TOTAL AND WE OWN ABOUT 45 ACRES OF IT IN YELLOW.

SO SINCE APRIL OF LAST YEAR, WE'VE BEEN WORKING WITH NRG, SDG&E AND BROOKFIELD TO SEE IF LOCATION OF THE SERVICE CENTER WOULD BE FEASIBLE ON THE PARKING LOT SITE.

GENERALLY, OUR NEGOTIATIONS AND DISCUSSIONS HAVE BEEN CENTERED IN THIS AREA, THE NORTHWEST CORNER OF THE PARKING LOT.

WHILE WE HAVE WORKED EXTENSIVELY OVER THE LAST 13 MONTHS TO REACH A CONSENSUS ON THIS RELOCATION, THIS RELOCATION SITE, AND WHILE WE FEEL WE ARE CLOSE, WE ARE JUST NOT THERE YET, AS CELIA MENTIONED.

AGAIN, JUST TO HIGHLIGHT THE BENEFITS OF THIS SITE, THE CITY WOULD GET THE SETTLEMENT AGREEMENT BENEFITS, THE SDG&E THREE PARCELS, THE JOINT DEVELOPMENT STRATEGY WITH NRG AND WITH THAT OWNERSHIP OF THE SERVICE CENTER, IT MAY BE A POSSIBLE LOCATION FOR A PERMANENT STATION, NUMBER SEVEN, FIRE STATION NUMBER SEVEN. HOUSING COULD BE LOCATED ON THE SHOP SITE, WHICH WOULD ADVANCE THE CITY'S ARENA HOUSING NEEDS AND PROVIDE FLEXIBILITY ON OTHER SITES THROUGHOUT THE CITY.

BROOKFIELD COULD GET TO USE THE CITY PROPERTIES SURROUNDING THE EXISTING MALL BUILDINGS FOR DEVELOPMENT.

THAT HOUSING WE'RE TALKING ABOUT.

NRG OBVIOUSLY IS INTERESTED IN A BETTER REDEVELOPMENT SITE AND NOT HAVING AN INDUSTRIAL USE NEXT TO THEIR REDEVELOPMENT SITE.

[00:25:04]

BEFORE I FINISH THERE IS ONE ISSUE WE RAISED IN THE STAFF REPORT RELATING TO THE CONDITIONAL USE PERMIT FOR MOBILE BUILDINGS.

IN THIS AREA OF THE SDGE SERVICE YARD.

SDGE HAS PLACED ABOUT 3000 SQUARE FEET OF MOBILE BUILDINGS, ESSENTIALLY TRAILERS RIGHT.

AND THEY DID THAT STARTING BACK IN 2012.

MOBILE BUILDINGS IN CARLSBAD REQUIRE A CONDITIONAL USE PERMIT.

SDG&E NEEDED SOME ADDITIONAL SPACE FOR THEIR TRAINING NEEDS.

AND SO IN MAY OF 2012, THE CITY DID ISSUE A CUP AT THE CITY COUNCIL LEVEL TO SDG&E.

IT HAD A FIVE YEAR LIMIT.

GENERALLY SPEAKING, CARLSBAD DISCOURAGES TEMPORARY BUILDINGS, AND WE LIMIT THE CUP TO A TIME PERIOD THAT WOULD ALLOW THEM THE APPLYING PARTY TO GET THEIR PLANS TOGETHER FOR A PERMANENT STRUCTURE.

BECAUSE WE'VE BEEN WORKING WITH NRG AND SDG&E AND THE PARTIES TO THE AGREEMENT TO TRY AND RELOCATE THE SERVICE CENTER.

WE DID GRANT A CUP FIVE YEAR EXTENSION, THE FIRST ONE IN SEPTEMBER OF 2017 THAT WILL RUN OUT SEPTEMBER 26 OF 2022.

SO SDG&E HAS FILED FOR A SECOND FIVE YEAR EXTENSION, SO THAT WOULD GIVE THE LIFE OF THE CUP ABOUT 15 YEARS.

AND AGAIN, WE'RE CONTINUING TO WORK WITH SDG&E ON RELOCATING THE WHOLE SERVICE CENTER.

SO THAT STILL SEEMS TO BE APPROPRIATE.

WITH THAT, I WILL TURN IT BACK TO YOU, MAYOR, AND WE HAVE THE OTHER PARTIES HERE.

NRG, BROOKFIELD AND SDG&E WOULD ALL LIKE TO SPEAK.

OKAY WITH THAT, THEN LET'S DO IT IN THAT ORDER, NRG, BROOKFIELD AND SDG&E.

SO NRG, YOU'RE UP.

OKAY, WELL, GOOD AFTERNOON.

MY NAME IS JOHN [INAUDIBLE] AND I'M THE FORMER PRESIDENT OF NRG'S NORTH WEST REGION AND CURRENT ADVISOR TO NRG.

AND IN THAT FORMER ROLE WITH NRG, I OVERSAW NRG'S PART IN THE NEGOTIATIONS OF THE 2014 SETTLEMENT AGREEMENT THAT'S IN DISCUSSION TODAY.

AND I'VE ALSO BEEN INVOLVED IN NRG'S FULFILLMENT OF THE OBLIGATIONS UNDER THAT SETTLEMENT AGREEMENT PRETTY MUCH CONTINUOUSLY SINCE THAT DATE.

ONE OF THOSE OBLIGATIONS, AS YOU KNOW, THAT CELIA YOU TALKED ABOUT WAS THE DEMOLITION OF THE OLDER PLANT.

AND WE WERE NEARLY COMPLETE.

WE'VE MADE SUBSTANTIAL PROGRESS AND WE'RE ON TRACK TO BE TOTALLY COMPLETE BY THE SUMMER.

SO ONCE WE'RE DONE WITH THAT, IT WILL PAVE THE WAY FOR THE REDEVELOPMENT OF THE SITE AS AND AS CONTEMPLATED IN THE SETTLEMENT AGREEMENT. WE'RE ALSO GOING TO BE ENGAGING IN A SEARCH FOR A DEVELOPMENT PARTNER TO DEVELOP THAT SITE THAT WILL PROCEED FAIRLY SOON AND WILL RESULT IN A PROCESS WITH THAT PARTNER AS WE REIMAGINE THE ENCINA SITE INTO WHAT IT'S GOING TO BECOME IN THE FUTURE. AND THAT RESULTING DEVELOPMENT PLAN WILL BE DESIGNED TO EMBRACE THE COMMUNITY BENEFITS AS CONTEMPLATED IN THE CITY GENERAL PLAN, AS WELL AS THE ENVISION CARLSBAD PROGRAM, SUCH AS WALKING AND BIKING TRAILS, LOTS OF OPEN SPACE AND VISITORS SERVING USES THAT UTILIZE BOTH OPEN SPACE AND INDOOR SPACE.

WE LOOK FORWARD TO WORKING WITH THE COMMUNITY IN SHAPING THE PLAN AND IN TRANSFORMING THIS IMPORTANT PART OF CARLSBAD FOR THE FUTURE.

IF THE SAN DIEGO GAS AND ELECTRIC SERVICE CENTER IS RELOCATED AND THE PROPERTY IS TRANSFERRED TO THE CITY, THEN, AS CONTEMPLATED IN THE SETTLEMENT AGREEMENT, A JOINT REDEVELOPMENT STRATEGY FOR THE ENCINA SITE AND THE SERVICE CENTER PROPERTY WOULD COMMENCE BETWEEN NRG AND THE CITY OF CARLSBAD.

NRG HAS ESTABLISHED AN EXCELLENT WORKING RELATIONSHIP WITH THE CITY AND WE BELIEVE THAT RELOCATION OF THE SERVICE CENTER WOULD BE THE BEST PATH FORWARD FOR THE REDEVELOPMENT OF THE ENCINA PROPERTY.

AND WE BELIEVE IT WOULD BE CONSISTENT WITH THE SPIRIT OF THE SETTLEMENT AGREEMENT THAT WE SIGNED IN 2014.

[00:30:01]

AND AS BOTH CELIA AND GARY MENTIONED, YOU KNOW, AFTER A NUMBER OF FAILED ATTEMPTS TO IDENTIFY A SUITABLE SITE OVER A PERIOD OF TIME, THE MALL SITE WAS IDENTIFIED IN 2021 AS A POTENTIAL POTENTIALLY SUITABLE LOCATION FOR THE RELOCATION OF THE SERVICE CENTER.

FOR OUR PART IN NRG RETAINED CONSULTANTS AND AN ARCHITECT TO ENVISION A PLAN FOR THE RELOCATED SERVICE CENTER THAT WOULD MEET SDGS REQUIREMENTS.

AND THE PARTIES HAVE BEEN WORKING EXTENSIVELY OVER THE PAST YEAR TO ADDRESS THE SITE SPECIFIC ISSUES THAT SDG&E IDENTIFIED IN CONDUCTING THEIR DUE DILIGENCE. SO AS I MENTIONED BEFORE, WE THINK RELOCATING THE SERVICE CENTER WOULD BE THE IDEAL PATH FORWARD AND CONSISTENT WITH THE SETTLEMENT AGREEMENT.

AND WE ALSO THINK IT'S BEST TO BRING CLOSURE TO THIS ITEM SOON.

THE PARTIES HAVE BEEN SEARCHING FOR A SUITABLE SITE FOR NEARLY EIGHT YEARS, AND WE BELIEVE IT'S TIME TO REACH A CONCLUSION AND MOVE FORWARD.

SO IN CLOSING, WE WILL CONTINUE TO SUPPORT THE REVIEW OF THE SITE AND APPRECIATE THE OPPORTUNITY TO PARTICIPATE IN THIS UPDATE TO THE CITY ON THIS IMPORTANT WORK THAT'S AT HAND.

THANK YOU. OKAY, THANK YOU.

AND DON'T WANDER OFF, WE MIGHT HAVE QUESTIONS.

I'LL BE RIGHT THERE. THANK YOU.

NEXT BROOKFIELD.

GOOD EVENING, MAYOR AND COUNCIL MEMBERS.

MY NAME IS TED LOHMANN.

I'M VICE PRESIDENT OF DEVELOPMENT HERE IN SAN DIEGO, ALSO A VERY PROUD CARLSBAD RESIDENT.

JOINED HERE BY MY COLLEAGUE BIJU, WHO'S OUR EXECUTIVE VICE PRESIDENT RUNNING THE SOUTHERN CALIFORNIA REGION FOR DEVELOPMENT.

I'LL SHARE OUR PREPARED REMARKS HERE AND THEN WE'LL BE AVAILABLE FOR ANY QUESTIONS, COMMENTS YOU MAY HAVE.

FIRST OF ALL, THANK YOU FOR THE OPPORTUNITY HERE TO SPEAK TONIGHT.

AS THE OWNER OF THE SHOPPES AT CARLSBAD, BROOKFIELD IS EAGER TO SEE SOME FORWARD MOMENTUM IN THE DISCUSSIONS ON HOW TO REINVEST IN THE PROPERTY SO THAT IT CAN REMAIN A VIBRANT PART OF THE COMMUNITY. TODAY, AS EVERYONE IS WELL AWARE, WE LIVE IN A WORLD OF EVOLVING COMMUNITY NEEDS AND VERY DIFFERENT LIFESTYLE AND SHOPPING PATTERNS THAN WHEN THIS PROPERTY WAS BUILT OVER 50 YEARS AGO.

THE SUCCESS OF BRICKS AND MORTAR RETAIL IS NOW ABOUT A FLIGHT TO QUALITY, AND THOSE RETAIL CENTERS THAT ARE GOING TO THRIVE IN THE FUTURE WILL BE THOSE THAT CAN BE RE-ENVISIONED TO STAY CURRENT TO COMMUNITY NEEDS.

AT THE SAME TIME, OUR REGION FACES A TREMENDOUS HOUSING SHORTFALL AS THE CITY OF CARLSBAD HAS RECOGNIZED IN THE RECENT HOUSING ELEMENT UPDATE.

WE BELIEVE THE VAST PARKING FIELDS AT THE SHOPS IS A NATURAL RECEIVER SITE AND SUPPORT CITY COUNCIL'S DIRECTION ON THAT FRONT.

HOUSING WOULD HAVE A SYNERGISTIC RELATIONSHIP AT THE RETAIL CENTER AND CAN BE A CATALYST FOR REINVESTMENT AND A DRIVER FOR HIGH QUALITY RETAIL TENANCY WHILE ALSO ADDRESSING THE COMMUNITY NEEDS FOR MORE HOUSING.

WITH ITS PROXIMITY TO AMENITIES AND COMMUTING CORRIDORS.

THIS LOCATION PRESENTS MANY OPPORTUNITIES TO ADDRESS COMMUNITY NEEDS AND TO MAKE SIGNIFICANT CONTRIBUTION TOWARDS SATISFYING THE CITY'S HOUSING GOALS.

WE HAVE BEEN INTERESTED IN PURSUING SUCH A REINVESTMENT FOR SOME TIME.

THE GATING ISSUE TO THAT, AS YOU ALL ARE AWARE, IS THE PARKING LOT PROPERTY IS OWNED BY THE CITY OF CARLSBAD, BUT IS DEED RESTRICTED FOR PUBLIC PARKING TO SERVE THE SHOPPING CENTER? WHAT THIS MEANS IS THAT ANY ARRANGEMENT TO ENABLE NEW USES WILL REQUIRE FULL ALIGNMENT BETWEEN BROOKFIELD AND CITY OBJECTIVES.

ON THE PROPOSED SDG&E RELOCATION, AS THIS HAS EMERGED AS AN IMPORTANT KEY CITY OBJECTIVE, BROOKFIELD HAS BEEN IN FULL COOPERATION AND SUPPORT IN EXPLORING THE RELOCATION PLAN ON A PORTION OF THE SHOP'S PROPERTY PROVIDED, OF COURSE, THAT THIS SOLUTION CAN UNLOCK A MORE HOLISTIC REDEVELOPMENT OF THE OVERALL PROPERTY THAT INCLUDES NEW HOUSING DEVELOPMENT.

IN THAT SPIRIT, WE HAVE BEEN WORKING COOPERATIVELY WITH THE CITY STAFF, NRG AND SDG&E FOR OVER A YEAR TO IDENTIFY A PORTION OF THE SHOPS PARKING FILLED SUITABLE FOR SDG&ES USE FOR THEIR SERVICE FACILITY RELOCATION.

WE'VE INVESTED A SIGNIFICANT AMOUNT OF TIME OF OUR TEAM'S TIME OVER THE PAST YEAR IN DILIGENCE TO TRY AND ADDRESS QUESTIONS AND CONCERNS ABOUT THE POTENTIAL RELOCATION.

WE'VE KEPT AN OPEN MIND, A PROBLEM SOLVING LENS ON OUR COLLECTIVE ABILITY THROUGH GOOD SITE PLANNING TO ENABLE THE LAND USES OF THE SERVICE FACILITY, RESIDENTIAL AND RETAIL TO COHABITATE WITH ONE ANOTHER ON SITE.

WITH THE UNDERSTANDING THAT A RELOCATION OF SDG&E COULD BE THE CATALYST TO DRIVE A MORE COMPREHENSIVE REDEVELOPMENT AT THE SHOPS PROPERTY.

[00:35:05]

HOWEVER, AND THIS MAY BE THE MOST IMPORTANT POINT I WANT TO LEAVE YOU WITH TODAY.

WITH REGARD TO MALL REINVESTMENTS, TIME IS NOT OUR FRIEND.

IT'S IMPORTANT FOR US TO DRIVE SOME CLARITY AND FORWARD MOVEMENT NOW ON WHETHER THERE'S A REDEVELOPMENT OPPORTUNITY ON THIS SITE.

AFTER MORE THAN A YEAR OF EXPLORING AND SDG&E AND RELOCATION WITH THE COLLECTIVE TEAM, WE DO NEED SOME FINALITY ON THIS NOW.

THE CURRENT TIMES ARE RAPIDLY SEPARATING MALL PROPERTIES INTO THOSE THAT CAN GET REINVESTED TO STAY RELEVANT AND THOSE WHICH WILL BECOME INCREASINGLY IRRELEVANT AS CONSUMER CHOICES EVOLVE AND COMMUNITY NEEDS EVOLVE.

TIME IS OF THE ESSENCE.

IF WE ARE TO COLLECTIVELY CHART A FORWARD LOOKING PATH FOR THIS PROPERTY AND PROLONGING THE SDG&E RELOCATION DISCUSSION IS DAY BY DAY ERODING THE OPPORTUNITY FOR US TO REINVEST HERE. WHILE WE WE REALIZE THAT ULTIMATELY THIS DIRECTION IS A DECISION THAT MUST BE MADE BY SDG&E AND WE ARE GRATEFUL FOR THE COOPERATION OF ALL THE PARTIES INVOLVED, INCLUDING THE CITY OF CARLSBAD, AND URGE EVERYONE TO BRING A SIMILAR URGENCY TO GET US TO A YES OR A NO ON THE RELOCATION PROPOSAL.

THANK YOU FOR YOUR TIME.

THANK YOU. SDG&E AND JOE.

GOOD EVENING, MAYOR AND COUNCIL, STAFF MEMBERS OF THE COMMUNITY.

YES, THANK YOU. WE GO BACK ONE. OKAY.

GREAT. THANK YOU.

MY NAME IS JOE GABALDON, PUBLIC AFFAIRS MANAGER FOR SDG&E FOR THE NORTH COASTAL COMMUNITIES, AND I'M PLEASED TO BE JOINED BY SEVERAL COLLEAGUES FROM THE RELOCATION TEAM, INCLUDE ADRIANA KRIPKE, SENIOR COUNSEL.

ADAM SMITH, SENIOR REAL ESTATE MANAGER.

FIRST, I LIKE TO EXTEND SDG&E'S APPRECIATION TO CELIA.

WE APPRECIATE YOUR LEADERSHIP AND COLLABORATION OVER THE YEARS.

OUR TEAM HAS BEEN VERY EXCITED TO WORK WITH YOU ON THE DEVELOPMENT AND ONGOING IMPLEMENTATION OF THE SETTLEMENT AGREEMENT.

AND ALTHOUGH THE EFFORT IS ONGOING, WE ARE COMMITTED TO CONTINUING THIS EFFORT WITH SCOTT, HIS TEAM NRG AND BROOKFIELD ON THIS IMPORTANT INITIATIVE. GIVEN THAT THERE ARE SOME THAT ARE NEW TO THE ASPECTS OF THE SITE SEARCH, I'D LIKE TO SHARE A BRIEF OVERVIEW OF THE SERVICE CENTER AND CONCLUDE MY REMARKS ON THE STATUS OF OUR SITE REVIEW.

THE SITE WAS ESTABLISHED TO SERVE THE NORTH COUNTY COASTAL CITIES.

IT NOW SERVES MORE THAN 250,000 CUSTOMERS WITH SAFE, RELIABLE GAS AND ELECTRIC SERVICE FROM OUR 16 ACRE SITE.

THE FACILITY IS A HUB OF OUR COMMUNITY OPERATIONS, ESSENTIAL COMMUNITY OPERATIONS SERVING CARLSBAD, ENCINITAS, DEL MAR, RANCHO SANTA FE, VISTA, FALLBROOK, CAMP PENDLETON AND OCEANSIDE.

CURRENTLY, THERE ARE ABOUT 220 HIGHLY TRAINED STAFF THAT SUPPORT OUR 24 SEVEN OPERATIONS OUT OF THE FACILITY.

THE SERVICE CENTER ALSO SUPPORTS 19 SUBSTATIONS AND NEARLY 6500 MILES OF GAS AND ELECTRICAL LINES.

NOW I'D LIKE TO SPEAK TO THE SHOP SITE AND OUR RELOCATION EFFORTS.

SDG&E IS DEDICATED EMPLOYEES, CONTRACTORS AND MULTIPLE TEAMS TO ASSESS THIS OVER THE FEW YEARS THAT WE'VE BEEN INVOLVED, INCLUDING VISIBILITY AT THE HIGHEST LEVELS OF THE ORGANIZATION, GIVEN ITS IMPORTANCE TO THE CITY.

SDG&E CONTINUES TO WORK DILIGENTLY TO EVALUATE THE CITY OWNED PARKING LOT PROPERTIES AT THE SHOPPES AT CARLSBAD.

AND WE REMAIN COMMITTED TO FINDING AN OPTION TO RELOCATE THE NORTH COAST SERVICE CENTER IN COMPLIANCE WITH THE SETTLEMENT AGREEMENT.

WE ARE CURRENTLY ASSESSING FLOODING AND GEOTECHNICAL ISSUES AT THE CITY OWNED PARKING LOT PROPERTIES FROM THE PERSPECTIVE OF USING THE SITE AS A SERVICE CENTER AND WE EXPECT TO HAVE OUR RESULTS IN A FEW WEEKS.

THIS ASSESSMENT IS CRITICAL BECAUSE AS A COMMUNITY I'M SORRY, AS AN EMERGENCY SERVICE PROVIDER, SDG&E NEEDS TO BE AT ITS BEST WHEN CONDITIONS ARE AT THEIR WORST.

AS MENTIONED, SDG&E SERVES MORE THAN A QUARTER MILLION CUSTOMERS OUT OF THIS LOCATION.

SDG&E IS COMMITTED TO CONTINUING TO DELIVER THE HIGHEST LEVELS OF SAFETY AND RELIABILITY TO ALL OF THESE CUSTOMERS.

THE SERVICE CENTER IS A HUB FOR CRITICAL WORK, AND THE SERVICE CENTER MUST THEREFORE BE FREE OF FLOODING AND OTHER PHYSICAL ISSUES SO THAT WE CAN QUICKLY RESPOND TO OUR

[00:40:04]

AS A SETTLEMENT AGREEMENT NOTES, SDG&ES OBLIGATIONS UNDER THE AGREEMENT ARE CONTINGENT UPON THE PUBLIC UTILITY COMMISSION'S APPROVAL.

SDG&E'S DILIGENCE ON THE CITY OWNED PARKING LOT PROPERTIES IS CRITICAL TO PREPARE A COMPLETE APPLICATION FOR THE COMMISSION.

THE COMMISSION'S REVIEW OF THE APPLICATION WILL INCLUDE HOW RELOCATION OF THE SERVICE CENTER WILL AFFECT SDG&E'S ABILITY TO SERVE AS AN EMERGENCY SERVICE PROVIDER WHO MUST DELIVER THE HIGHEST LEVELS OF SAFETY AND RELIABILITY.

WHILE SDG&E CANNOT MAKE ANY PREDICTIONS ABOUT THE COMMISSION'S REVIEW OF THE APPLICATION.

WE KNOW THAT INVESTING IN DILIGENCE NEEDED TO PROVIDE A COMPLETE APPLICATION IS TIME WELL SPENT, AND WE APPRECIATE THE CITY'S UNDERSTANDING AND ONGOING COLLABORATION.

THAT WAS AS WE PERFORM THIS DILIGENCE AS QUICKLY AND AS THOROUGHLY AS POSSIBLE.

THANK YOU. THANK YOU, SIR.

OKAY. WITH THAT, LET'S GO TO PUBLIC SPEAKERS.

THE FIRST SPEAKER IS DIANE NYGAARD, FOLLOWED BY MARK PACKARD.

GOOD AFTERNOON, MAYOR AND COUNCIL.

DIANE, I GO TO REPRESENTING PRESERVE CALAVERA.

OUR MISSION IS TO PRESERVE, PROTECT AND ENHANCE THE NATURAL RESOURCES OF COASTAL NORTH COUNTY.

AND THAT MEANS BOTH PROTECTING OUR NATURAL LANDS AND MAKING SURE THERE ARE ADEQUATE RECREATIONAL FACILITIES TO SERVE THOSE NEEDS.

SO THOSE USES DON'T IMPACT THOSE NATURAL LANDS, SO WE DON'T LOVE THEM TO DEATH.

HINDSIGHT IS ALWAYS 2020.

HINDSIGHT SAYS THIS WAS NOT THE BEST SETTLEMENT AGREEMENT.

IT DIDN'T CLEARLY IDENTIFY THE OBLIGATIONS OF EACH PARTY AND THE PENALTIES IF THEY FAIL TO MEET THOSE OBLIGATIONS WITHIN A REASONABLE PERIOD OF TIME.

IT ALSO APPEARS THAT AFTER EIGHT YEARS OF EFFORT AND LOTS OF TAXPAYER MONEY, THAT NOT ALL THE PARTIES WERE NEGOTIATING IN GOOD FAITH.

WE ENCOURAGE EVERYONE TO THINK CREATIVELY, TO WORK IN GOOD FAITH, MOVING FORWARD, TO COME TO A RESOLUTION THAT ACTUALLY RESULTS IN A REAL COMMUNITY BENEFIT.

THIS IS A WONDERFUL OPPORTUNITY TO THINK BETTER, BIGGER, TO CONSIDER A NUMBER OF COASTAL PROPERTIES IN PLAY.

THIS PARCEL THE REMAINDER OF THE NRG, SDG&E LAND THAT WAS PART OF THE OLD POWER PLANT, THE LONG PLANNED HUB PARK AND THE TRAILS AND THE SOUTH SHORE OF AGUA HEDIONDA.

AND THE OPPORTUNITIES FOR A PARK AT PONTO.

SOUNDS LIKE SDG&E HAS CREATED SUBSTANTIAL BARRIERS.

BARRIERS, AND IF SO, THAT NEEDS TO BE CALLED OUT.

THIS IS ONE MORE OF MANY OPPORTUNITIES THE CITY HAS HAD TO ENHANCE PARKS AND NATURAL OPEN SPACE ALONG THE COAST, YET SO FAR HAS FAILED TO ACHIEVE ANY OF THEM.

DOING THIS RIGHT WILL TAKE A LOT MORE EFFORT AND THE PUBLIC SHOULD NOT BE KEPT IN THE DARK.

IN FACT, I WAS FRANKLY AMAZED TO COME HERE TODAY AND SEE THAT TWO ALTERNATIVES WERE PRESENTED IN QUITE A BIT OF DETAIL HERE AT THE PRESENTATION THAT WERE NOT INCLUDED IN THE STAFF REPORT. SO THE PUBLIC WAS NOT AWARE OF WHAT WAS GOING TO BE TALKED ABOUT HERE.

SO NOW THAT WE HAVE SEEN THOSE ALTERNATIVES, WE WOULD ASK YOU TO ALLOW THE PUBLIC TO ACTUALLY VET AND WEIGH IN ON THEM AS WELL.

GO BACK TO THE TABLE AND COME UP WITH SOMETHING THAT TRULY BENEFITS THIS COMMUNITY.

THANK YOU. THE NEXT SPEAKER IS MARK PACKARD.

GOOD AFTERNOON, COUNCIL AND SDG&E AND BROOKFIELD AND NRG AND THE PUBLIC.

I WAS ASKED TO COME TODAY TO SPEAK BECAUSE I WAS ON BEHALF OF THE CITY.

I WAS THE SIGNATOR ON THAT AGREEMENT BACK IN 2014.

SEVERAL POINT, COUPLE OF POINTS I WOULD LIKE TO MAKE.

FIRST OF ALL, YOU ALL KNOW I LIKE LITTLE QUOTES.

SO WHEN ONE OF THE QUOTES THAT I WAS TAUGHT IS YOU DON'T SPIT ON A PERSON YOU MIGHT BE DANCING WITH LATER ON.

SO I'M GOING TO BE CAREFUL ABOUT WHAT I SAY.

BUT CELIA LIKED IT.

BUT ANYWAY, BACK IN 2014, THE CITY WAS ASKED BY SDG&E TO MOVE QUICKLY TO A TO PROCESS AND COME TO AN AGREEMENT THAT WOULD BE BENEFICIAL TO SDG&E AND FOR THE STATE.

BUT IT WAS MOSTLY AT THEIR REQUEST THAT THE CITY ACTED IN A WAY, IN A VERY QUICK WAY WHERE NOT ALL THINGS WERE WERE

[00:45:05]

THE PEOPLE THAT WE WERE WORKING WITH AT THE TIME ACTED IN GOOD FAITH.

BUT NOW EIGHT YEARS HAVE PASSED AND THAT INDICATES THAT SOMETHING IS NOT HAPPENING THE WAY IT SHOULD.

AND SO I AM HERE TO ASK ALL THE PARTIES INVOLVED TO ACT IN GOOD FAITH SO THAT WE CAN COME TO TERMS ON MUTUALLY ACCEPTABLE SITES.

THAT DOESN'T MEAN THAT YOU GET EVERYTHING YOU WANT.

THAT MEANS YOU YOU FIND A BALANCE AND A COMPROMISE SO THAT WE CAN ALL COME TO A MUTUAL UNDERSTANDING.

I DON'T THINK IT HAS BEEN MENTIONED BEFORE THAT IT IS NOT IN THE CITY'S BEST INTEREST TO DELAY THIS LONGER.

IT'S NOT IN ANYBODY'S BEST INTEREST TO DELAY THIS LONGER.

AND SO I WOULD ASK THAT WE COME TO A QUICK RESOLUTION.

AND THAT THE STAFF, THE CITY STAFF AND THE PARTIES INVOLVED ACT ALL ACT IN GOOD FAITH AND COME TO A SOON RESOLUTION.

SO I THANK YOU FOR YOUR TIME.

MAYOR, WE DID RECEIVE A REQUEST AFTER THE COMMENCEMENT OF ITEM NUMBER ONE FROM KERRY SIEGMAN.

IF THE COUNCIL WISHES TO HEAR THIS SPEAKER, THERE WOULD HAVE TO BE UNANIMOUS VOTE TAKEN.

I'M SORRY. SAY THAT AGAIN.

THERE WAS A SPEAKER CARD RECEIVED AFTER THE COMMENCE OR THE BEGINNING OF ITEM NUMBER ONE AND IT WAS FROM KERRY SIEGMAN.

WHAT DID THE COUNCIL WANT TO HEAR THIS SPEAKER? IS THERE A MOTION? JUST SO I UNDERSTAND THE ISSUE IS A LATE SUBMITTAL OF A SPEAKER SLIP AND THAT PERSON IS HERE AND WANTS TO SPEAK.

I'D MAKE A MOTION THAT WE HEAR THE SPEAKER.

SECOND. AND THAT'S TO ITEM ONE IS WHAT SHE WISH TO SPEAK.

CORRECT? YES, MR. BLACKBURN. I JUST WANT TO SAY, WE PUT INTO UNANIMOUSLY PUT INTO EFFECT RULES REGARDING THIS.

AND THE RULE WAS ONCE THE ITEM BEGINS, WE WILL NOT ACCEPT SPEAKERS TO GO ALONG WITH WHAT I'VE SAID FROM THE VERY BEGINNING. THE RULE IS THERE FOR A REASON, AND I'VE ALWAYS VOTED NO, SO I'M GOING TO VOTE NO ON THIS ONE AS WELL.

OKAY. AND TO CLARIFY, IT'S UNANIMOUS.

SO THEREFORE, THE SPEAKER CANNOT BE HEARD.

SOUNDS GOOD. I'M SORRY.

I WAS SAYING THE SAME THING.

THAT IT REQUIRES UNANIMOUS VOTE.

SO IF COUNCILMEMBER BLACKBURN'S VOTING AGAINST IT, THERE'S NO POINT IN VOTING.

IT WON'T PASS.

IF THAT'S YOUR PLEASURE.

THERE IS A MOTION AND A SECOND.

SO I'LL REMOVE THE MOTION.

OKAY. SECOND REMOVES.

OK THEN COMING BACK TO THE COUNCIL.

LET'S START WITH QUESTIONS AND WE'LL START DOWN AT YOUR END, MR. NORBY. THANK YOU.

GOSH, IT'S HARD.

I ACTUALLY WANT TO GO WITH COMMENTS FIRST AND NOT QUESTIONS, BUT I'M GOING TO TRY AND STICK WITH QUESTIONS HERE.

AND SO TO OUR STAFF TEAM, THE RELATIONSHIP WITH BROOKFIELD, YOU KNOW, I KNOW THE WHAT I WOULD JUST GENERALLY REFER TO THE CARLSBAD MALL HISTORY BEGINS IN THE FIFTIES OR SIXTIES, PROBABLY THE SIXTIES.

SO WE'RE LOOKING AT A KIND OF A 60 YEAR PERIOD OF TIME.

AND THE DEAL OF THE DAY BASICALLY WAS THAT WE WOULD BUY HALF THE PROPERTY AND PROVIDE THE PARKING AND THE DEVELOPER WOULD BUY THE OTHER HALF OF THE PROPERTY AND PROVIDE THE BUILDING.

AND SO THAT HAS PUT US IN A SITUATION WHERE WE HAVE THIS KIND OF MUTUAL WE OWN IT AND WE HAVE AN AGREEMENT TO PROVIDE THE PARKING THAT'S REQUIRED.

AND I GUESS THAT PARKING WOULD BE FLEXIBLE DEPENDING UPON WHAT THE CODES ARE OF THE CURRENT DAY THAT WE JUST HAVE TO PROVIDE THAT PARKING.

SO MY MY QUESTION IS THAT, YOU KNOW, EVERY I GUESS EVERY DEVELOPER WOULD LOVE THAT DEAL, BIG OR SMALL, FOR THIS MUNICIPALITY TO BUY HALF THEIR PROPERTY.

SO THEY DIDN'T HAVE TO BUY IT TO PROVIDE THE PARKING.

IT'S BEEN OF GREAT BENEFIT.

AND SO THAT'S A MY QUESTION IS, HAS THAT DEAL BEEN WORKED OUT WITH BROOKFIELD IN TERMS OF WHAT PERCENTAGE OF OWNERSHIP FROM NONE TO ALL? THAT THEY WOULD GET OF OUR PARKING, YOU KNOW, NOT THEIR SHOPS, BUT OUR PARKING THAT IS, BELONGS TO THE CITY IN SOME SORT OF A FUTURE DEAL.

OR IS THAT LEFT TO BE DETERMINED? YES. WE'RE GOING TO PUT BACK UP THE GRAPHIC.

SO, AGAIN, JUST WE OWN EVERYTHING IN YELLOW, ABOUT A 90 ACRE SITE.

WE OWN ABOUT 45 ACRES.

IT'S THE PARKING. AND IN ANSWER TO YOUR SPECIFIC QUESTION, NO, THERE IS NOT A DEAL IN PLACE.

BROOKFIELD IS COOPERATING WITH THE CITY ENERGY AND SGD ON EXPLORING THE RELOCATION OF THE SERVICE CENTER AND IF IT DOES PROVE

[00:50:07]

AT THIS POINT, MOST IMPORTANT SDG&E, THEN WE WOULD, AS MS. CELIA LIKES TO SAY, THEN GO AND PAPER THE DEAL.

AND SO, THE CITY PARTICIPATED WAY BACK WHEN AND A PARKING AUTHORITY ISSUED BONDS, IT PAID THOSE OFF. AND NOW WE OWN THE LAND.

AND SO WITH THE PARKING AGREEMENT THAT'S IN PLACE, THE ONLY PARTNER WE CAN REALLY WORK WITH IS IS THE OWNER OF THE SHOPPING CENTER.

UNLESS THEY RELEASE US FROM THE PARKING AGREEMENT, WHICH WOULDN'T BE PRUDENT ON THEIR PART BECAUSE IT'S PARKING FOR THEIR SHOPPING CENTER.

SO THAT DEAL WOULD NEED TO BE NEGOTIATED ON TRANSFER OF PROPERTY.

OKAY. THANK YOU. IT'S MY ONLY QUESTION.

COUNCIL MEMBER ACOSTA.

YES, THANK YOU. THANK YOU FOR A WONDERFUL PRESENTATION.

I'M SO GLAD THAT ALL THE PARTIES WERE HERE.

I HAVE A COUPLE OF QUESTIONS.

MAYBE TWO OR THREE.

MY FIRST ONE IS ABOUT THE SITES THAT WERE EXPLORED.

I KNOW WE HAD A SLIDE FOR THAT, AND I'M JUST WONDERING WHAT KINDS OF ARGUMENTS THAT WERE AGAINST THOSE SITES.

WE KIND OF GLOSSED OVER IT.

AND I WAS JUST WONDERING IF YOU COULD SHED A LITTLE BIT MORE LIGHT ON WHY THOSE WERE BAD SITES AND WHY WE DECIDED NOT TO PURSUE THOSE.

SO THIS IS THE GRAPHIC.

AND WE LOOKED AT MORE THAN TEN SITES.

MANY OF THESE WERE AT THE TIME WE WERE LOOKING AT THEM VACANT PARCELS.

MANY OF THEM ARE NOT VACANT ANYMORE.

SO TIME HAS HAS GONE BY AND DEVELOPMENT HAS HAPPENED.

MOST OF THESE WERE PRIVATE SITES.

BUT THE EVALUATION OF WHETHER THE SITE REALLY WORKED IS WAS MOSTLY SDG&ES AND THAT WAS RELYING ON THEIR SITE CRITERIA.

SO IT NEEDED TO BE OF A CERTAIN SIZE, AT LEAST 10 TO 12 ACRES, GENERALLY FLAT AND GENERALLY RECTANGULAR IN SHAPE.

THERE WERE A FEW OF THE SITES THAT THEY DID SOME EXPLORATORY WORK ON TO SEE IF IT COULD WORK, BUT ULTIMATELY EITHER BY LOCATION ON THIS GRAPHIC, FOR EXAMPLE.

I MENTIONED WEST OF EL CAMINO REAL.

WELL, THIS IS EL CAMINO REAL.

SO ALL THESE SITES ARE EAST OF EL CAMINO REAL.

THEY FELT, FOR EXAMPLE, THAT THE SERVICE.

RESPONSE TIME WOULD BE COMPROMISED.

THEY REALLY NEED TO GET TO EITHER I-5 OR 78 IN MOST CASES.

AND SO THAT WAS THAT WAS PART OF IT.

THE OTHER CONSIDERATIONS WERE SIZE, SHAPE AND KIND OF LOCATION.

SO. MOSTLY REJECTED AFTER SOME EVALUATION BY SDG&E AS NOT MEETING THEIR CRITERIA.

OKAY. THANK YOU.

AND SO ON THIS ON THIS MAP, WE CAN SEE THERE'S TWO, FOUR FIVE, INCLUDING 11 THAT ARE WEST OF EL CAMINO REAL.

SO THEY MEET THAT.

AND THERE WERE SOME OTHER CONSIDERATIONS LIKE THE SIZE THAT IT DIDN'T MEET THAT.

YES, MAYBE IF I.

SO THIS IS EXISTING SERVICE CENTER LOT 11 THERE OWNERSHIP ONE OF THE AREAS THEY WERE SDGE WAS INITIALLY EXCITED ABOUT EXPLORING WAS EWA AND THEIR EXCESS LAND.

WE DID SPEND A MORNING OUT THERE WITH A NUMBER OF EXECUTIVE VICE PRESIDENTS.

AND BECAUSE THIS SITE IS ADJACENT TO THE RECYCLED WATER FACILITY AND THE SEWAGE TREATMENT PLANT, EWA'S FACILITY. AND THERE'S, YOU KNOW, THERE'S A CERTAIN SMELL.

ODOR, LESS THAN IT USED TO BE.

BUT THEY JUST DIDN'T LIKE THE LONG TERM IMPLICATIONS OF THAT WITH RELOCATING THEIR SERVICE CENTER THERE.

WE DID. AND, YOU KNOW.

WE SCRATCHED THE SURFACE OF A LOT OF PROPERTIES, SOME THAT WERE LIKE REALLY, REALLY LONG SHOTS.

ONE OF THOSE. IS ZONE FIVE PARK, WHICH IS THE PARK ACROSS FROM FARADAY.

IT'S ONLY PARTIALLY BUILT.

WE OWN MORE ACREAGE THERE.

THAT'S TO BE BUILT LATER.

CHALLENGE THERE IS.

YOU'D HAVE TO MAKE UP THAT PARK ACREAGE.

SO YOU LOCATE ONE SITE, YOU'D HAVE TO FIND ANOTHER SITE TO MAKE UP THE PARK ACREAGE, ETC..

[00:55:01]

THERE'S A PARCEL WE LOOKED AT NEAR THE END OF THE AIRPORT RUNWAY.

OBVIOUSLY, AIRPORT CONSIDERATIONS WERE THE CHALLENGE THERE.

AND WE LOOKED AT SOME OF THESE SITES JUST BECAUSE THERE WERE VERY FEW REMAINING LARGE ENOUGH SITES THAT WERE STILL VACANT IN THE COMMUNITY.

YES, I KNOW THAT ALL THOSE SITES TO THE RIGHT HAND OF THIS GRAPHIC OR OUTSIDE OF THE CRITERIA SDG&E, BUT YOU KNOW WHEN YOU ONLY HAVE A FEW OPPORTUNITIES, YOU'VE GOT TO EXPLORE THEM ALL, AND WE DID.

YEAH, THAT MAKES A LOT OF SENSE.

AND WE ALL KNOW HOW HARD IT IS TO FIND SPACE THESE DAYS, HAVING JUST BEEN THROUGH OUR HOUSING ELEMENT UPDATE.

YEAH, I WOULD SAY ALMOST ALL OF THESE ARE GONE.

THEY'VE BEEN DEVELOPED.

OKAY. SO THAT LEADS INTO MY NEXT QUESTION.

AND IT'S ABOUT THE SITE THAT WE'RE TALKING ABOUT, THE BROOKFIELD SITE, 90 ACRES.

SO THAT'S A PRETTY LARGE SITE.

CAN WE LOOK AT THAT MAP, THE SLIDE OF BROOKFIELD AGAIN, AND WHERE ARE WE TALKING ON THAT SITE? AND WHAT IS THE OBJECTION ABOUT? I WROTE IT DOWN. THE SDG&E SPOKE ABOUT FLOODING AND SOMETHING ELSE.

I CAN'T READ MY OWN WRITING.

FLOODING ISSUES.

FLOODING AND GEOTECHNICAL.

GEOTECHNICAL.

TO THE TWO ISSUES THEY MENTIONED.

YEAH, SO WHERE ARE WE LOOKING ON THAT SITE? AND MAYBE IS THERE ANOTHER PART OF THAT SITE OR IS THERE A WAY TO TO REMEDY THE CONCERN? SO GENERALLY WE'VE BEEN LOOKING IN THE NORTH WEST CORNER IN THIS AREA THAT I'M CIRCLING.

THE FLOODING CONSIDERATION WOULD BE FROM BUENA VISTA CREEK AND THERE ARE SOME CHALLENGES, BUT THERE ALSO IS SOME MITIGATION, BOTH BROOKFIELD FOR DIFFERENT REASONS.

BUT THEY HAD DONE SOME STUDY OF THIS AREA, BOTH FROM FLOODING AND GEOTECHNICAL AND ENERGY, HAVE EXPENDED MONEY ON SOME STUDIES TO EXPLORE THE CHALLENGES AND THEN WHAT THE MITIGATION IS.

WE PROVIDED THOSE STUDIES TO INTER TO SDG&E AND THEY HAVE HIRED THEIR THIRD PARTY CONSULTANT TO REVIEW THOSE.

AND THAT'S WHERE WE'RE AT RIGHT NOW.

THEY HAVE NOT COMPLETED THAT ASSESSMENT.

SO THEY'RE EXPLORING THOSE TWO ISSUES RIGHT NOW, FLOODING AND GEOTECHNICAL.

WHAT THE RESULT OF THAT EXPLORATION ON SDG&ES PART AND WHAT THEY COME BACK WITH REMAINS TO BE SEEN.

OKAY, SO OVER THE PERIOD OF THE EIGHT YEARS, WE'VE LOOKED AT EIGHT SITES AT LEAST, AND WE FOUND NO SITE IS PERFECT, BUT THIS SITE MIGHT HAVE SOME GREAT POTENTIAL.

BUT THERE'S THIS STUDY BEING DONE.

AND WHAT IS THE TIMELINE LOOK LIKE ON THIS? BECAUSE IT'S BEEN EIGHT YEARS ALREADY.

YES. SO WE PRETTY MUCH RIGHT AFTER THE AGREEMENT WAS SIGNED, WE DID START EXPLORING WITH SDG&E.

HOWEVER, ON THIS SITE, THE SHOP SITE, IT'S ONLY BEEN SINCE APRIL OF LAST YEAR, SO ABOUT 13 MONTHS, I BELIEVE MR. GALBENDON GAVE THEIR TIMELINE OF WHEN THEY'D BE GETTING BACK TO THE CITY.

AND THAT'S I DON'T WANT TO MISQUOTE HIM, BUT I THINK HE SAID 3 TO 4 WEEKS.

4 TO 6 WEEKS, SOMETHING LIKE THAT.

MAYBE THAT'S A GOOD QUESTION TO ASK HIM.

THREE TO FIVE WEEKS.

OK, THANK YOU.

THAT'S THE END OF MY QUESTIONS.

COUNCIL MEMBER DR.

BHAT-PATEL.

THANK YOU. SO FIRST, I'LL START OFF WITH QUESTIONS FOR STAFF AND AM I ABLE TO ASK QUESTIONS OF SOME OF OUR PRESENTERS AS WELL? SURE. OKAY, GREAT.

SO FIRST OFF, I KNOW WE HAD PUBLIC COMMENT AND DURING THAT, I JUST I WAS CURIOUS.

I KNOW SOMEBODY MENTIONED THAT ALTERNATIVES WERE NOT SHARED.

I WAS CURIOUS IF YOU COULD CLARIFY THAT.

THIS POWERPOINT PRESENTATION IS VERY SIMILAR TO THE POWERPOINT PRESENTATION WE GAVE THE CITY COUNCIL BACK IN APRIL.

SO SOME OF THOSE I'M NOT SURE WHAT THE SPEAKER IS SPEAKING TO, BUT ALL THE SITES WE'VE LOOKED AT IN THE CITY ARE GENERALLY ON THAT MAP. MAYBE IT WAS THESE ILLUSTRATIVES THAT SDG&E PRODUCED AND DID THE WORK ON.

WE DIDN'T DO THAT WORK.

WE JUST HAVE A COPY OF IT FOR A COUPLE OF THE SITES.

I'M NOT SURE WHAT THE SPEAKER WAS SPEAKING TO, THOUGH EXACTLY.

THANK YOU. AND THEN I HAVE ONE MORE QUESTION FOR STAFF AND THEN QUESTIONS FOR SOME OF OUR SPEAKERS.

ACTUALLY IT MIGHT JUST BE SDG&E FIRST AND THEN I'LL COME BACK TO STUFF.

IT MIGHT GO IN THAT ORDER.

SO I'D LOVE TO ASK.

[01:00:01]

I'D LOVE TO HEAR, YOU KNOW, AS WE'RE LOOKING AT POTENTIALLY THIS PROPERTY AND HOPEFULLY THIS ONE ENDS UP WORKING OUT ONCE WE HEAR BACK THE RESULTS IN THE NEXT FEW WEEKS. JUST CURIOUS WHAT THE APPETITE IS TO MOVE IT ALONG, BECAUSE I KNOW THAT FOR AS WE'RE HEARING FROM FOLKS EIGHT YEARS AND WE WANT TO MOVE THIS ALONG AS QUICKLY AS POSSIBLE FROM A COST PERSPECTIVE, FROM A TIMING PERSPECTIVE.

SO JUST WANTED TO HEAR FROM SDG&E'S PERSPECTIVE LIKE WHAT THE APPETITE IS TO MOVE IT ALONG ONCE WE HEAR THOSE RESULTS.

YES. OUR TEAM IS DOING THEIR DUE DILIGENCE TO MOVE IT FORWARD ON A NUMBER OF DIFFERENT LEVELS.

AND SO OUR GOAL IS REALLY TO COME BACK WITH INFORMATION RELATIVE TO THE CITY REQUEST HERE.

WE'VE GOT MORE WORK AHEAD.

BUT AS WE CAN BRING IT THROUGH AND WORK WITH STAFF AND THE OTHER PARTIES TO BRING YOU BACK A PACKAGE WHEN IT'S READY, THAT'S WHEN WE'LL BE READY.

WE APOLOGIZE THAT IT CAN'T BE ANY SOONER, BUT WE DO RECOGNIZE THE URGENCY HERE, AND WE ARE COMMITTED TO TURNING THINGS AROUND AS QUICKLY AS POSSIBLE.

GREAT. AND THEN I KNOW YOU MENTIONED, YOU KNOW, IN THE NEXT 3 TO 5 WEEKS, WE SHOULD HEAR BACK SOME OF THE RESULTS FROM THIS, THE STUDIES THAT YOU'RE DOING ON THE ASSESSING, FOR INSTANCE, THE FLOODING, THE GEOTECHNICAL ISSUES.

SO JUST CURIOUS, BECAUSE, OF COURSE, WE WON'T HEAR THOSE RESULTS TODAY.

IT'LL BE IN THE NEXT FEW WEEKS.

JUST WONDERING IF AND THIS MIGHT BE MAYBE A CONVERSATION FOR ALL OF US, DO WE HAVE THE OPPORTUNITY TO OBVIOUSLY, OF COURSE, WE PROVIDE DIRECTION TODAY, BUT HAVE A FURTHER DISCUSSION IF THERE IS A FAVORABLE OUTCOME AND EVERYONE'S AMENABLE TO IT.

DO WE HAVE THAT OPPORTUNITY TO HAVE A DISCUSSION IN THE NEXT FEW WEEKS THEN? YES, IT'S PART OF OUR COMMITMENT TO WORK WITH SCOTT AND TEAM AND YOU KNOW, AS QUICKLY AS WE CAN PUT SOMETHING TOGETHER THAT MAKES SENSE, IT ANSWERS ALL THE QUESTIONS.

YES. PERFECT.

AND I'LL ALSO LOOK AT OUR TEAM TO ASK THE SAME.

FROM A STAFF PERSPECTIVE. OUR GOAL WAS ALWAYS TO BRING IF WE COULD FIND AN AGREED UPON RELOCATION SITE TO COME BACK TO THE CITY COUNCIL AND GET AUTHORIZATION TO PROCEED AT THAT TIME. AND I DO WANT TO SAY WE'VE DONE EVERYTHING IN THIS DEAL TRANSPARENTLY, ALMOST EVERYTHING ON THIS ENTIRE SITE POWER PLANT DEAL.

WE'VE COME TO THE COUNCIL OVER AND OVER AGAIN AND DONE EVERYTHING IN OPEN SESSION.

SO I'M GOING TO BRIDLE A LITTLE BIT OR PUSH BACK A LITTLE BIT ON THE CONCERNS THAT THAT IT HASN'T BEEN PUBLIC.

ALL OF THIS WAS PUBLIC IN APRIL OF 2021.

PERFECT. THANK YOU.

AND NOW I'M GOING TO GO BACK TO STAFF.

THANKS. THANK YOU.

SO JUST, YOU KNOW, IT SOUNDS LIKE WHERE WE WOULD GO FROM HERE IF IF WE START TO HEAR, YOU KNOW, POSITIVE.

OBVIOUSLY, WE HAVE A DIRECTION TODAY.

AND, YOU KNOW, IT JUST DEPENDS ON WHAT COUNCIL DECIDES TODAY.

AND IF WE DID DECIDE, LET'S JUST SAY THAT WE WANTED TO CONTINUE TO HAVE THOSE NEGOTIATIONS AND MOVE FORWARD.

IT SOUNDS LIKE IF THIS IS AN AMENABLE, FEASIBLE SITE, AFTER WE HEAR BACK SOME OF THE RESULTS, WE HAVE THE OPPORTUNITY TO HOPEFULLY, HOPEFULLY, IF EVERYONE'S HAPPY WITH IT, MOVE FORWARD WITH THIS PARTICULAR SITE.

THAT'S CORRECT. OKAY.

GREAT, AND I WILL RESERVE THE REST OF MY COMMENTS FOR LATER.

THANK YOU.

MR. BLACKBURN. JOE, WE'RE GIVING YOU YOUR EXERCISE.

MY ONLY QUESTION IS TO YOU, SIR.

SDG&E APPROACHED THE CITY MANY YEARS AGO.

AND WE, ALL FOUR ENTITIES HAVE SPENT A LOT OF TIME TRYING TO COME UP WITH A SOLUTION.

IT SOUNDS FROM HEARING TODAY'S PRESENTATIONS, IT'S A LITTLE BIT LIKE NRG.

THE CITY, BROOKFIELD ALL SEEM TO BE LEADING ME TO BELIEVE THAT MAYBE SDG&E IS THE DELAY IN GETTING THIS DONE.

WITH THE IDEA THAT IT FREES UP SOME PRIME LOCATION FOR THE CITY.

THE IDEA THAT SDG AND GETS MORE OF A STATE OF THE ART MODERN UPDATED FACILITY IN 22 AND A HALF MILLION DOLLARS OF THAT COST WILL BE BARED BY NRG.

IS SDG&E AS EXCITED ABOUT THIS LOCATION AND GETTING THIS DONE AS BROOKFIELD, NRG AND THE CITY ARE.

AND THE REASON I ASKED THAT BLUNTLY, AND I DON'T MEAN TO BE RUDE, I JUST WANT TO BE BLUNT, IT JUST IT ALMOST DOESN'T SOUND LIKE IT.

SO I JUST WANT TO ASK YOU, IS THIS GUY AS EXCITED AS THE OTHER THREE ENTITIES ARE? WHEN THIS WAS LAST HEARD I'M SORRY, WHEN THIS ITEM WAS LAST HEARD, I CAME AND I SHARED OUR COMMITMENT TO THE PROCESS.

SINCE THAT TIME, WE'VE HIRED CONSULTANTS AND DONE A LOT OF WORK TO GET THAT ANSWER, GET TO THAT ANSWER.

[01:05:02]

CAN I HOLD YOU TO THAT? SURE. THANK YOU.

DON'T GO AWAY.

OKAY. HELP ME BETTER UNDERSTAND SITE 11, AND WHAT WAS THE REASONS WHY WE KIND OF STEERED AWAY? WAS IT A MONETARY QUESTION OR WHY WAS SITE 11 NOT PREFERRED SITE? LET ME TURN THAT QUESTION OVER TO ADAM, IF YOU CAN RESPOND TO SOME OF THOSE ISSUES, ADAM.

MAYOR HALL SPECIFIC TO PARCEL 11 WHEN IT WAS ANALYZED, THERE WERE SOME ENVIRONMENTAL AND OTHER PHYSICAL SENSITIVITIES RELATED TO THAT SITE THAT RELATED TO SPECIALIZED CONSTRUCTION COSTS THAT JUST ROSE THE COST OF CONSTRUCTION TO FAR EXCEED AREAS THAT WE'VE BEEN LOOKING FOR IN OTHER PLACES.

SO IT'S AT THE END OF THE DAY, IT WAS A MONETARY NUMBER, NOT NECESSARILY, IT COULDN'T BE DONE? YEAH. I THINK, YOU KNOW, VERY FEW THINGS ARE PHYSICALLY IMPOSSIBLE.

BUT WHEN YOU LOOK AT TIME AND DOLLARS, SINCE THERE IS A DOLLAR AMOUNT PEGGED IN THE SETTLEMENT AGREEMENT, THAT'S BEEN THE DIFFICULTY OF OVERCOMING THOSE CHALLENGES. SO WITH THAT UNDERSTANDING, WHEN YOU LOOK AT THE SITE AT THE SHOPS, HAVE YOU FOLLOWED WHAT THE THE DEVELOPMENT IS DIRECTLY TO THE NORTH ACROSS THE RIVER.

OR ARE YOU TALKING ABOUT THE END OF BUENA VISTA CREEK? YES. YES, WE'RE FAMILIAR WITH THAT.

OKAY. AND THE SETBACKS AND SO ON AND SO FORTH.

FROM THE CREEK? YES. I DON'T KNOW THE SETBACKS OFF THE TOP OF MY HEAD, BUT WE ARE AWARE OF SOME OF THE MITIGATION THAT HAPPENED AT THAT SITE.

YOU KNOW, THE DIFFICULTY IS THERE IS QUITE A BIT OF INFORMATION RELATED TO SOILS AND RELATED TO HYDROLOGY IN THIS AREA THAT HAVE BEEN DONE OVER THE YEARS FOR A VARIETY OF DIFFERENT PROJECTS.

NO CONSULTANT HAS EVER LOOKED AT THE PARTICULAR SHOP SITE BASED ON THE SITE PLAN THAT WE'VE BEEN TALKING ABOUT AND THE USE THAT WE'VE BEEN TALKING ABOUT.

AND SO THAT'S WHY, ALTHOUGH THERE'S A LOT OF DATA, THIS PARTICULAR SCENARIO HAS NEVER BEEN STUDIED.

OKAY. THANK YOU.

MR. GABALDON.

SO OBVIOUSLY WE'RE FOCUSING IN ON THE SHOPS.

WHAT WOULD BE THE CHALLENGE IF WE WERE TO TRY AND PUSH BOTH THE SHOPS AND LOT 11 THROUGH SIMULTANEOUSLY? AND FOR THE REASON BEING, IF THE SHOPS FOR SOME REASON COULD NOT BE FINALIZED, COULD WE HAVE LOT 11 IN PARALLEL? YOU MIGHT HAVE TO WORK WITH THE TEAM TO GET THROUGH THAT ANSWER.

I MEAN, FOR THE GROUP HERE, WE'RE ALL FOCUSED ON SHOPS AND TO PIVOT, YOU KNOW, WE'LL HAVE TO I'D HAVE TO TALK TO THE INTERNAL TEAM TO SEE IF THAT'S DOABLE.

SO MY ONLY REASON BEING IS, YOU KNOW, THERE'S ONE MORE PARTNER THAT'S NOT IN THE ROOM TONIGHT.

AND OBVIOUSLY WE UNDERSTAND THE HYDROLOGY AND EVERYTHING THAT'S GOING ON IN AND AROUND THE BUENA CREEK.

AND I SPENT WAY TOO MUCH TIME WITH THE HOTELS ACROSS THE STREAM FROM YOU AND UNDERSTANDING SOME OF THE CHALLENGES THAT THEY HAD TO GO THROUGH.

SO I'M NOT SURE HOW THAT'S GOING TO AFFECT YOUR PROJECT, BUT I WOULD HATE TO GET TO A POINT WHERE ALL OF A SUDDEN YOU SAY, HEY, THIS DOESN'T WORK AND THEN HAVE TO GO BACK TO ANOTHER SITE.

SO OBVIOUSLY YOU'VE SAID THAT A LOT 11 WAS AN ACCEPTABLE SITE.

IT WAS A MONETARY ISSUE ON SOME OF THE SAME CHALLENGES.

SO I WAS JUST HOPING THAT IF SITE ONE DOESN'T WORK, THAT WE DON'T HAVE TO SPEND AN ADDITIONAL AMOUNT OF TIME GOING BACK TO AN ALTERNATE SITE.

UNDERSTOOD. WE CAN CONTINUE TO WORK ON THAT AND HAVE CONVERSATION WITH STAFF AND FIND A WAY TO BRING IT BACK.

BUT AGAIN, RIGHT NOW, WE'RE WORKING TO FULFILL OUR GOALS, OUR MUTUAL GOALS OF LOOKING AT THE SHOP SITE.

COULD YOU HAVE THAT CONVERSATION WITH BY THE TIME YOU DO THE REST OF YOUR STUDY? SO WHEN IT COMES BACK TO US AND 4 TO 6 WEEKS, YOU COULD ANSWER THAT.

YES. YES. OKAY.

OKAY AND AGAIN, I JUST WANT TO SAY TWO SDG&E WE'VE HAD OVER 70 YEAR WORKING RELATIONSHIPS.

SO AND YOU KNOW, OBVIOUSLY YOU'VE BEEN A TEAM PLAYER IN WHO WE ARE AND WHAT WE DO AS FAR AS ENERGY IS CONCERNED.

SO WE THANK YOU FOR ALL THAT YOU'RE DOING.

AND IT SOUNDS LIKE IN SOME INSTANCES, TIME WAS ON OUR SIDE.

[01:10:03]

SO BUT NOW TIME IS OF AN ESSENCE.

SO WITH THAT, LET'S GO TO FINAL COMMENT.

OH, I'M SORRY. I JUST HAD AN ADDITIONAL QUESTION I'VE ASKED JANINE WHILE YOU'RE UP HERE.

AND SO I'M ALWAYS CONCERNED ABOUT JUST BITES AT THE APPLE AND ONGOING REVELATIONS AND JUST OVER AND OVER AND OVER AND OVER AND OVER. AND I REALIZED THAT THIS PARTICULAR SITE HAS BEEN WORKED ON FOR A BRIEF PERIOD OF TIME, I THINK 16 MONTHS OR SO ON THIS SITE.

BUT ARE YOU AWARE OF ANY OTHER ISSUES WITH THE SITE THAT WOULD CAUSE SDG&E ANY CONCERN? OR AS WE JUST KIND OF DISCOVER AND UNCOVER THE SOILS AND GEOTECHNICAL, IT'S KIND OF THE LAST ISSUE THAT'S HOLDING YOU UP.

CAN YOU COMMENT ON THAT? YOU KNOW, THERE'S A NUMBER OF PARTIES.

THIS IS SOMETHING THAT WAS UNPLANNED FOR.

SO YOU NEVER KNOW ABOUT WHAT ELSE IS GOING TO COME UP.

BUT OUR OUR GOAL IS TO STAY AT THE TABLE, KEEP ON DIGGING UNTIL WE CAN MAKE SURE THAT WE GET IT.

SO THE ANSWER IS, YOU KNOW, NOT THAT I'M AWARE OF.

I KNOW THAT THERE MAY BE OTHER PARTIES WHO HAVE CONCERNS CLEARLY FOR US, YOU KNOW, WE WILL ULTIMATELY HAVE TO GET IT BEFORE THE COMMISSION.

AND SO THAT'S WHY THIS EFFORT, DOING OUR DUE DILIGENCE, MAKES PERFECT SENSE BECAUSE THEY'RE THE ULTIMATE DECIDER.

AND ALL ANSWERS AND ALL QUESTIONS ARE ON.

ALL THE QUESTIONS ARE ON THE TABLE WHEN IT COMES TO THAT NEXT SET.

SO I HEAR THAT.

BUT I WOULD DESCRIBE THAT AS, YOU KNOW, THE FOUR PARTIES KIND OF GETTING IT DOWN TO PAPER, HAVING AN AGREEMENT.

AND THEN WITH THAT AGREEMENT, YOU'RE GOING TO GO THROUGH A PUBLIC PROCESS AT THE PUC, PERHAPS THE CPUC, OTHER AGENCIES POTENTIALLY.

AND WITHIN THAT PUBLIC REVIEW OF THOSE AGENCIES, THERE MAY BE ISSUES THAT ARISE OR COME UP FROM THAT PUBLIC ENTITY.

BUT MY QUESTION IS SPECIFICALLY TO SDG&E BEFORE WE GET THERE.

SO I GUESS MAYBE I SHOULD PUT MY FEAR FIRST.

I ALWAYS TRY NOT TO DO THAT BECAUSE I THINK IT'S REALLY HARMFUL TO GET TO WHERE YOU WANT.

BUT I JUST DON'T WANT THIS TO BE EVER ENDING.

AND IT'S LIKE, OKAY, WELL, WE'VE SOLVED THIS, BUT WE'VE GOT ANOTHER ISSUE ON THIS SIDE.

SO I PERSONALLY WILL BE EXTREMELY DISAPPOINTED IF THERE'S SOME OTHER IMPEDIMENT, YOU KNOW, IF THE, I GUESS, TECHNICAL ANALYSIS COME BACK AS FEASIBLE AND DOABLE.

OKAY. SO I GUESS I'LL TAKE YOUR ANSWER THE WAY IT IS.

THANK YOU. THANK YOU COUNCILMAN, APPRECIATE IT.

COUNCIL MEMBER ACOSTA.

THANK YOU, MR. GALBADON, SINCE YOU'RE UP THERE, I WANTED TO PIGGYBACK OFF OF THE MAYOR'S KIND OF QUESTIONS AND THOUGHT PROCESS.

AS HE WAS TALKING ABOUT THE FINANCIAL AND MONETARY CONSIDERATIONS AROUND SITE 11.

SO I WAS WONDERING IN READING THROUGH THE STAFF REPORT AND LOOKING AT THAT $22.5 MILLION FUNDING THAT'S BEING OFFERED BY NRG TO RELOCATE THE SITE. IF THAT IS A CONSIDERATION, IF THAT'S THE REASON WHY THERE ARE SOME TREPIDATION AROUND THIS SITE WHEN IT COMES TO FLOODING, BECAUSE I BELIEVE THAT COULD BE REMEDIED.

BUT IF YOU'RE TRYING TO STAY UNDER THE 22.5 AND HAVE A LARGER SITE THAN ORIGINALLY CONTEMPLATED AND TIMES NOT HELPING PROPERTY VALUES GET LOWER, IF THAT'S THE REASON WHY THERE'S SOME HESITANCY ON SDG&E'S PART WITH THIS SITE AS WELL.

THE ISSUES AS THEY COME UP AND CONSTRAINTS NEED TO BE FIRST IDENTIFIED, MITIGATIONS NEED TO BE ALSO DEVELOPED, AND THEN THE COST.

AND SO WE'RE NOT JUMPING AHEAD.

WE'RE REALLY TRYING TO FOCUS ON THE FIRST STEP, WHICH IS TO FULLY UNDERSTAND THE ISSUE.

AND IS THERE AN UNDERSTANDING THAT TIME IS NOT ON OUR SIDE WHEN IT COMES TO THE COSTS OF BUILDING THIS NEW CENTER? YES. OKAY, GREAT.

SO IN TALKING ABOUT COMMITMENT TO FINDING FINDING SOMETHING AND WORKING TOGETHER, WE'RE LOOKING AT A 3 TO 5 WEEK RETURN ON THE FEASIBILITY STUDY, THE SORRY, THE FLOODING AND GEOTECHNICAL ISSUES STUDY.

BUT WHAT IS THE ESTIMATE AND WHAT IS THE GOAL TO DETERMINE WHETHER THE SITE IS GOING TO WORK? IS IT JUST THE FINDING OUT WHAT THE RESULTS ARE OF THAT? WHAT ARE WE LOOKING AT FOR TIME? BECAUSE IT'S BEEN EIGHT YEARS.

I CAN'T SAY THAT ENOUGH. IT DOESN'T GET CHEAPER.

YES. YOU KNOW, AGAIN, IT'S REALLY GOING TO DEPEND UPON HOW SERIOUS THESE ISSUES ARE.

AND WHAT WILL THE ENGINEERS AGREE WITH ARE GOING TO ADDRESS THAT, WHETHER IT'S RAISING AN ELEVATION, RAISING A PAD, WHETHER IT'S REMOVING THE CREEK SOMEHOW.

HOW DO YOU GET THEIR LOWEST, MOST EFFECTIVE COST AND IN WAY?

[01:15:03]

BUT THESE ARE THE THINGS THESE STEPS HAVE TO PLAY OUT.

THANKS. THANK YOU VERY MUCH.

AND IF SDG&E FINDS THAT IT WOULD BE TOO EXPENSIVE, THIS SITE DOESN'T WORK.

WHAT HAPPENS THEN? THEY FORGO THE 22.5 AND WE GET THE 10 MILLION FROM NRG AND SDG&E IS STUCK.

WE ALSO HAVE A COPY.

I'M JUST TRYING TO FIGURE OUT WHAT HAPPENS IF THEY FAIL IN 3 TO 5 WEEKS TO FIND A VIABLE SPOT ON THIS CURRENT SITE.

SO THE 2014 AGREEMENT ON THE SDGE SERVICE CENTER RELOCATION CONCEPT, THERE IS A PROVISION THAT EITHER THE CITY OR SDGE CAN IN ESSENCE, PULL THE PLUG.

WE'VE TRIED, IT'S JUST NOT GOING TO WORK IF IF WE FAIL TO FIND A SITE THAT'S MUTUALLY ACCEPTABLE AND GET IT RELOCATED . NRG, IF WE FAIL, THE ENERGY PAYS THE CITY $10 MILLION, KIND OF THAT CONSOLATION PRIZE.

BUT, YOU KNOW, YOU HAVE TO THE WAY WE'RE APPROACHING THIS SITE, THE SHOP SITE AND THE SCOPE CREEP AND COST ISSUE, 22 AND A HALF MILLION DOLLARS WAS NEGOTIATED BETWEEN THE TWO PARTIES, SDGE, NRG BACK IN 2014.

THERE IS A I WON'T CALL IT LIKE AN ESCALATION CLAUSE IN THE AGREEMENT, BUT THERE IS THERE IS A CLAUSE IN THERE THAT, IF NOBODY ANTICIPATED, WOULD TAKE THIS LONG, OF COURSE.

BUT THERE IS A CLAUSE IN THERE THAT IF THE COSTS ARE HIGHER, THEN THERE CAN BE SOME ADDITIONAL DISCUSSION.

BUT REMEMBER, THEIR SERVICE CENTER WAS BUILT IN THE MID SIXTIES.

IT'S OLD. THEY NEED TRAILERS TO DO THEIR TRAINING.

THOSE TRAILERS HAVE A LIFE REGARDLESS OF OUR CUP.

THEY DON'T LAST FOREVER.

IT'S A, YOU KNOW, SDGE IS GOING TO HAVE TO DO SOME WORK SOMEDAY, RELATIVELY.

I CAN'T ANSWER THE QUESTION OF WHEN FOR THEM, BUT IT'S AN OLD FACILITY.

THEY WILL PROBABLY NEED TO REBUILD IT.

IT'S SMALLER THAN IT'S ABOUT 30 TO 32000 SQUARE FEET.

RIGHT NOW. THEY'RE LOOKING AT A NEED OF 44,000 SQUARE FEET.

SO THERE'S BEEN SOME SCOPE CREEP.

THERE'S BEEN SOME TIME CREEP, OBVIOUSLY CONSTRUCTION COST ESTIMATES.

BUT THE SCENARIO WE'VE BEEN LOOKING AT IS THERE'S A COST FOR THEM TO REBUILD ON SITE AND THAT'S SOME NUMBER.

AND THEN THERE'S 22 AND ONE HALF MILLION DOLLARS AT LEAST THAT IS.

NRG WILL PAY IN AND TO RELOCATE TO ANOTHER SITE IS ARE THEY STILL SAVING MONEY AND WHEN I SAY THEY, IT'S REALLY THE RATEPAYERS ULTIMATELY RIGHT. SO WHEN YOU GO THROUGH THE PUC PROCESS, CAN WE SHOW THAT TO THE PUC THAT THE RATEPAYER BENEFITS FROM THIS? IT MAY COST MORE THAN 22 AND ONE HALF MILLION, BUT IT MIGHT STILL BE CHEAPER THAN WHAT IT WOULD BE TO REBUILD ON SITE.

YEAH. COUNCIL MEMBER DR.

BHAT-PATEL. YES, JUST ONE ONE FOLLOW UP QUESTION.

I'D JUST BE CURIOUS TO KNOW, WHEN WE DID DISCUSS SITE 11, WHAT WERE THE COSTS ASSOCIATED WITH IT AT THE TIME? I KNOW IT WAS EXPENSIVE, BUT I'D JUST BE CURIOUS TO KNOW, GIVEN THE CONVERSATION WE'RE HAVING AROUND THIS PARTICULAR SITE AND IN CASE IT ENDS UP BEING INFEASIBLE DUE TO COST OR ANYTHING ELSE, I JUST WANT TO KNOW WHAT WHAT WAS THE DIFFERENCE IN TERMS OF WHY WE COULDN'T HAVE ALREADY MOVED ALONG WITH THAT SPECIFICALLY? SO THROUGH THIS PROCESS.

VARIOUS ESTIMATES HAVE BEEN ARRIVED AT IN DIFFERENT WAYS.

I THINK THE NUMBER WHICH I'M GOING TO ASK EITHER JOE OR ADAM TO SPEAK TO, IT WASN'T OUR NUMBER, IT WAS SDG&E'S NUMBER.

HOWEVER, ON THE SHOP SITE, NRG HAS ACTUALLY GONE OUT TO TO CONSTRUCTION, ESTIMATING FIRMS AND GOTTEN BIDS BASED ON NOT BIDS, BUT COST ESTIMATES BASED ON YOU KNOW, THE SPECS THAT WE KNOW TODAY.

SO, YOU KNOW, THERE'S THAT I'M TRYING TO SPEAK TO.

THERE'S BEEN DIFFERENT ESTIMATES FOR DIFFERENT SITES GENERATED IN DIFFERENT WAYS.

AND WITH THAT, I THINK I WOULD TURN IT OVER TO SDGE AND ANSWER THE QUESTION OF THE NUMBER FOR LOT 11 CAME FROM SDG&E.

THEY'RE LOOK AT IT.

IT'S AN OLDER NUMBER.

THAT'S ABOUT ALL I HAVE.

I DON'T KNOW HOW LONG AGO THAT WAS PREPARED, BUT IT WOULDN'T NEED TO BE REFRESHED.

[01:20:06]

FOR WHENEVER WE HAVE A FUTURE DISCUSSION, IT WOULD BE HELPFUL TO HAVE THAT NUMBER JUST BECAUSE IT'S JUST HELPFUL FOR US TO KNOW WHY, YOU KNOW WHY WE DIDN'T MOVE FORWARD.

AND THEN ALSO, JUST FROM A PERSPECTIVE OF NOW, OBVIOUSLY THAT NUMBER WILL HAVE INCREASED, RIGHT, IN TERMS OF INFLATION AND ALL OF THOSE FUN THINGS.

SO I THINK JUST MAKING SURE THAT AS WE HAVE CONVERSATIONS, ESPECIALLY AROUND IF THIS SHOP SITE DOES MOVE FORWARD OR WHATEVER IT MIGHT BE OR IF WE HAVE TO FALL BACK ON SITE 11, I JUST I THINK IT'S JUST HELPFUL FOR ALL OF US TO KNOW WHAT THAT LOOKS LIKE IN TERMS OF NUMBERS AS WELL.

SO THANK YOU.

OKAY. MR. BLACKBURN.

YOU KNOW, MY FINAL COMMENTS ARE THIS IS OBVIOUSLY WE'RE FOCUSED ON THE SHOPS, BUT I THINK WE I WOULD STRONGLY RECOMMEND WE LOOK AT THIS IN PARALLEL WITH LOT 11 AND GET SDG&E AND COMMITMENT TO MOVE WITH US ON A LOT OF 11.

ALSO, ONE OF THE THINGS THAT'S REALLY CONCERNING TO ME IS WE DON'T CONTROL THE TIMING ON THE SHOPS, SO I'M NOT SURE WHAT THAT TIMING IS, BUT TIME IS TIME HAS VALUE.

SO MAYBE ONE OF THE THINGS WE COULD FIND OUT IS THE PROCESSING TIME ON THE SHOPS AS WE GO THROUGH THAT PROCESS WHEN WHEN THIS COMES BACK TO US.

SO AND THE ONLY REASON I SAY THAT IS I WATCHED ACROSS THE BUENA VISTA CREEK AND HOW LONG IT TOOK TO GET PROCESSING DONE ON THAT. SO I JUST MAKE NOTE OF THAT.

YOU WANT TO RESPOND TO THAT MS. BREWER? TURNED OVER TO DEPUTY MANAGER GARY.

OKAY. YOU KNOW, FOR, I'VE SHOWED YOU THE FOOTPRINT AND THE OWNERSHIP OF THE SHOPS SEVERAL TIMES HERE.

I COULD FLIP TO THAT SLIDE.

MY POINT IS THAT.

THE TWO PARTIES HAVE TO WORK TOGETHER.

WE OWN THE PARKING LOT, BUT WE CAN'T DO ANYTHING WITH IT OTHER THAN ALLOW IT TO BE PARKING FOR THE MALL WITHOUT THE MALL OWNER'S CONSENT.

SO IT NEEDS TO BE MUTUALLY AGREEABLE.

SO WE ARE PART AND PARCEL TO THE TIMING OF ANY REDEVELOPMENT OF THAT SITE.

THE THOUGHT IF THIS DOESN'T SITE DOES NOT WORK FOR SDG&E, WE'RE KIND OF BACK TO WHERE WE'VE BEEN IS WHAT IS THE VALUATION OF THAT PROPERTY, THE VALUATION QUESTION, IF ANY OF IT IS GOING TO TRANSFER FROM THE CITY'S OWNERSHIP TO BROOKFIELD'S OWNERSHIP, HOW DO WE VALUE THAT AND THEN EFFECTUATE THAT DEAL? AND THEN THEY NEED TO MOVE FORWARD WITH THEIR REDEVELOPMENT PLANS.

SO OBVIOUSLY, IF YOU WANT TO BRING THAT SLIDE BACK UP OF THE SHOPS AND I HAVEN'T BEEN CRYSTAL CLEAR FOR A REASON, BUT I WAS JUST FOCUSING ON THE RED DOTTED LINE.

YES, I KNEW WHAT YOU WERE SPEAKING TO.

THAT'S ALL YOU NEED TO SAY.

THE DOTTED LINE REPRESENTS THE CITY LIMIT LINE BETWEEN OCEANSIDE AND CARLSBAD AND THE PARCEL.

THE TOP OF THE GRAPHIC IS IN THE CITY OF OCEANSIDE.

WE OWN IT, BUT IT'S THEIR LAND USE AUTHORITY ALSO.

OKAY. WITH RESPECT TO PROCESSING, I DON'T WANT TO CANDY COAT THIS.

THIS IS A REALLY COMPLICATED PROJECT.

AND IF WE ENDEAVOR ONCE WE FIND A LOCATION, THERE'S GOING TO BE A LOT OF WORK.

WE HAVE TO GO THROUGH ENVIRONMENTAL PROCESSES, REGULATORY PROCESSES.

ALL OF THOSE PROCESSES ARE MUCH MORE LIKELY TO SUCCEED IF WE GO HAND IN HAND WITH ALL OF OUR PARTNERS IN THIS DEAL.

AND THAT'S ONE OF THE REASONS WE'VE BEEN TRYING TO SECURE IT.

WE'RE GOING TO HAVE TO DETERMINE LEVELS OF ENVIRONMENTAL REVIEW, WHETHER WE TRY TO ANALYZE A WHOLE SEGMENT AND USE IT AS KIND OF A PROJECT OR EXCUSE ME, A MASTER LEVEL EIR OR WHETHER WE DO PROJECT SPECIFIC EIRS.

THERE'S A LOT OF SUBSEQUENT DETERMINATIONS TO MAKE THIS ALL HAPPEN.

SO WE CAN'T ANSWER SPECIFICALLY THOSE PROCESSING TIMES, BUT WE ARE READY TO ROLL UP OUR SLEEVES OR I GUESS EVERYONE ELSE IS NOW BECAUSE I'M NOT.

BUT EVERYONE'S GOING TO BE READY TO ROLL UP THEIR SLEEVES AND GET TO WORK ON THIS IF WE CAN GET A SITE IDENTIFIED THAT'S ACCEPTABLE TO THE PARTIES.

AND I UNDERSTAND WHAT YOU'RE SAYING, BUT THE ULTIMATE PERSON WHO'S GOING TO CALL THE SHOT IS TO THE NORTH OF THE RED LINE.

IT'S IT'S IN THEIR JURISDICTION, IS IT NOT? YES. I MEAN, WE DEFINITELY ARE GOING TO GO THERE AS SOON AS WE GET IF WE CAN GET CONCEPTUAL APPROVAL THAT IS ON OUR LIST, BELIEVE ME.

SO. OKAY.

ANYWAY, THOSE ARE JUST MY THOUGHTS.

ANYBODY ELSE HAVE ANY FINAL THOUGHTS? MR. NORBY. I HAD LIMITED MYSELF TO QUESTIONS, AND SO I'LL GET INTO MY THOUGHTS NOW AND MY COMMENTS AND I'M GOING TO TAKE A LITTLE TIME.

FIRST OF ALL, IT WAS TOUCHED ON, I THINK, BY OUR MAYOR.

WHAT IS A 50 GOSH, 70 YEAR HISTORY? EXACTLY, 75 YEAR HISTORY WITH SDG&E AND OUR CITY.

[01:25:04]

I RECALL IT WAS, I BELIEVE LAST WEEK RON PACKARD WAS HERE, CONGRESSMAN RON PACKARD WAS HERE.

AND HE REGALED US WITH STORIES IN THE SIXTIES ABOUT HOW HALF THE CITY BUDGET WAS FROM THE PROPERTY TAXES AT SDG&E.

AND SO WE'VE HAD A 70 YEAR RELATIONSHIP THAT HAS BEEN CHALLENGING AT TIMES AND HAS BEEN FRUITFUL AT TIMES.

BUT I THINK THAT THE PARTNERSHIP HAS DONE SOME AMAZING, AMAZING THINGS IN TERMS OF HOW THAT POWER PLANT HAS ADAPTED FROM, FIRST OF ALL, OIL TO COAL I'M SORRY, OIL TO NATURAL GAS, AND THEN FROM KIND OF LOAD TO PEAKER AND WHERE WE ARE NOW AND THE SAME HOLD TRUE HOLDS TRUE FOR THE JUST OLD TERM CARLSBAD MALL PROPERTY.

NOW THE SHOPS AT CARLSBAD, THAT ALSO HAS BEEN A 60 YEAR RELATIONSHIP, IT'S BEEN REALLY BENEFICIAL AND REALLY GREAT FOR THE PROPERTY OWNERS, OF COURSE, BUT ALSO FOR THE CITY JOB GENERATION, SALES TAX GENERATION.

AND WHAT WE WHAT WE HAVE SEEN, I'LL JUST KIND OF MAYBE GO BACK TO MY BACKGROUND WORKING IN OLDER DISTRICTS IN THE MAIN STREET PROGRAM, TRYING TO MAKE THEM RELEVANT AND MAKE THEM COMPETITIVE COMMERCIALLY BECAUSE WE WERE GETTING SHELLACKED BY THE MALLS ACROSS THE UNITED STATES, WHICH WERE AN ANIMAL OF THE INTERSTATE TRANSPORTATION SYSTEM.

BUT I FIND IT KIND OF WONDERFUL THAT THESE AREAS ARE REALLY DOING WELL AND THESE MALLS ARE KIND OF DYING AND THEY NEED TO ADAPT AND THEY NEED TO BE REVISITED. THE OLD MODEL THAT WAS PUT IN PLACE IN THE 1960 ABSOLUTELY DOESN'T WORK.

AND I THINK THE AGREEMENT BETWEEN THE CITY AND BROOKFIELD ACTUALLY HOLDS THE CITY BACK AND HOLDS BROOKFIELD BACK.

AND SO THAT AGREEMENT NEEDS TO BE UPDATED NO MATTER WHAT HAPPENS.

SO I JUST APPRECIATE THE LONG TENURED HISTORY OF BOTH PROPERTIES.

THE SECOND THING IN OUR RELATIONSHIP WITH THOSE PROPERTIES AS A CITY, THE SECOND THING IS JUST A TRUISM THAT I BELIEVE WITH EVERY OUNCE OF MY BODY, AND THAT IS IF IT'S RIGID, IT WILL FAIL.

AND IF IT'S ADAPTIVE, IT WILL SUCCEED.

AND SO WHAT WE'RE SEEING IS WE'RE SEEING THE PARTIES THAT HAVE PRESENTED TODAY ENERGY, OF COURSE, ADAPTING VIGOROUSLY IN TERMS OF THE CHALLENGES OF THE DAY.

AND WE'RE SEEING BROOKFIELD TELLING US THAT THEY HAVE TO ADAPT AND CHANGE BECAUSE THE THE OLD MODEL JUST DOESN'T WORK AND THEY'RE EXCITED ABOUT DOING THAT.

AND THEN SDG&E IS GOING TO NEED TO ADAPT AND CHANGE.

THEY'VE GOT AN OLD BUILDING. IT'S 60 YEARS OLD.

THEY'RE ALREADY IN THE KIND OF MODULAR BUILDING TO SATISFY.

AND THERE'S A BIG COST COMING UP.

BUT ALL PARTIES, I THINK IF WE CAN HAVE THAT KIND OF ADAPTIVE NESS IN MIND IN ORDER TO SUCCEED, WE CAN REALLY END UP WITH A BEAUTIFUL PUBLIC COMMONS, WITH A PROPERTY BRAND NEW FACILITY THAT'S GOING TO SERVE WELL IN A GREAT LOCATION.

AND THEN I THINK A PLANNING PROCESS WITH NRG THAT WILL BE BETTER FOR BOTH NRG AND THE CITY AS WE JOINTLY PLAN THAT PROPERTY.

AND THEN LASTLY FOR BROOKFIELD, THE IDEA TO REPOSITION THAT, I THINK I'M JUST GOING TO SAY MALLS ARE IN DISTRESS ACROSS AMERICA AND THIS ONE IS NO DIFFERENT, BUT TO BE ABLE TO REPOSITION THAT. SO THAT IS THAT IS WHY WE'RE ALL WORKING TOWARDS THAT.

TWO MORE POINTS. ONE, I THINK ACTUALLY WE HEARD A LOT AND WE'VE BEEN HEARING A LOT, BUT FOR ME, ACTIONS MEAN FAR MORE THAN WORDS.

AND I'VE SEEN SOME GREAT ACTION ON THE PART OF THE CITY IN TERMS OF TRYING TO MAKE THIS HAPPEN.

SAME WITH NRG, SAME WITH BROOKFIELD.

AND THEN WE'RE AT A POINT NOW WHERE WE HAVE A SITE AND THE ACTIONS REALLY I THINK AT THIS POINT IN TIME ARE KIND OF RELYING ON SDG&E TO DO THEIR DUE DILIGENCE AND TO COME UP WITH A RESPONSE, WHATEVER THAT RESPONSE IS.

AND SO I AM FAR MORE INTERESTED IN ACTION THAN I AM IN WORDS.

I THINK WE HAVE A TIME FRAME THAT IS FAIRLY TIGHT IN TERMS OF 3 TO 5 WEEKS WITH WITH INITIAL RESPONSE FROM SDG&E.

BUT I CERTAINLY THINK THAT IT WOULD BE APPROPRIATE TO BRING THIS BACK TO THE PUBLIC AND TO THE COUNCIL WITHIN A THREE OR FOUR MONTH TIME FRAME TO REVISIT THAT.

AND THEN THE LAST THING I'M GOING TO SAY IS THAT I REALLY BELIEVE IN AN A-TEAM AS WELL, AND I BELIEVE IN HAVING REALLY GREAT FOLKS WHO ARE WORKING ON THIS AND WHO ARE WORKING ON IT FOR A LONG TIME, WHO KNOW THE ISSUES INSIDE AND OUT.

AND I KNOW THAT OUR CITY ATTORNEY, MISS BREWER, IS RETIRING.

AND I KNOW THAT YOU CAN'T FORCE SOMEBODY TO WORK IF THEY DON'T WANT TO WORK AND THEY'RE RETIRING.

BUT I CERTAINLY, AT LEAST FROM MY 20%, WOULD LOVE TO HAVE THE THE INTELLECTUAL HEFT AND THE ABILITY AND THE HISTORIC PERSPECTIVE AND TO HAVE MS. BREWER BE A CONSULTING ATTORNEY ON THIS PARTICULAR PROJECT ALL THE WAY TO THE FINISH LINE.

[01:30:02]

YES COUNCIL MEMBER ACOSTA.

YES, THANK YOU.

THANK YOU TO ALL TO THE STAFF FOR ALL THE HARD WORK AND TO ALL THE PARTIES FOR REALLY COMMITTING TO WORKING ON THIS TOGETHER.

AND I, I HEARTILY AGREE WITH COUNCILMEMBER NORBY THAT WE'VE HEARD A LOT OF COMMITMENT TODAY, AND WE NEED TO SEE IT.

WE NEED TO SEE THE ACTION BEHIND THE WORDS.

WE'VE, IT'S NOT JUST THE COMMITMENT TO THE RELOCATION.

IT'S THE COMMITMENT TO PROBLEM SOLVING TOGETHER AS A TEAM, TO BEING TRUE PARTNERS AND TO SERVING THE PUBLIC IN THE BEST WAY POSSIBLE.

BECAUSE WE KNOW THAT RELOCATING IS WILL CREATE AN IMMENSE PUBLIC BENEFIT.

TIME IS OF THE ESSENCE, AND I KNOW THAT THAT'S WRITTEN RIGHT HERE IN THE STAFF REPORT.

I KNOW THAT SPEAKERS TODAY HAVE SAID IT.

TIME IS OF THE ESSENCE AND THE STAFF REPORT SAYS IN.

TIME IS OF THE ESSENCE IN THIS NEGOTIATION BECAUSE BROOKFIELD AND NRG NEED TO START THEIR RESPECTIVE PROJECTS.

BUT ALSO TIME IS OF THE ESSENCE FOR SDG&E AND AS WE DISCUSSED, BECAUSE THEIR BUILDINGS ARE OLD AND NEED TO BE UPDATED AND THERE'S A CUP ISSUE WE ALL KNOW TIME IS OF THE ESSENCE. SO I REALLY LIKE WHAT I JUST HEARD FROM COUNCILMEMBER NORBY ABOUT BRINGING THIS BACK.

WE KNOW THAT THE FLOODING GEOTECHNICAL STUDIES SHOULD BE BACK IN 3 TO 5 WEEKS.

SO TO SEE THIS BACK IN FRONT OF COUNCIL WOULD BE GREAT TO HAVE ALL THE PARTIES COME BACK.

AND LET'S TALK ABOUT THIS AND LET'S REALLY COMMIT AND SHOW THAT WE'RE GOING TO MOVE FORWARD AND NOT JUST TALK ABOUT IT, BUT SHOW WE ARE MOVING FORWARD.

SO I'D LIKE TO SEE IT SOONER.

YOU SAID 3 TO 4 MONTHS. I'M THINKING TOO, BUT I'M WILLING TO COMPROMISE.

SO. BUT I'D LOVE TO SEE US ALL COMMITTED TO MOVING FORWARD, SHOWING THAT WE'RE ACTUALLY TAKING THOSE ACTIONS TO MOVE FORWARD.

WE NEED THIS, THE PUBLIC NEEDS THIS, AND WE NEED TO MOVE FORWARD AS SOON AS POSSIBLE.

DR. ANYTHING ELSE? YES, THANK YOU.

YES, I THINK WE'VE BEEN HAVING CONVERSATIONS FOR QUITE SOME TIME.

AND I HAVE TO SAY, OF COURSE, IT PREDATES SOME OF US.

AND I THINK, YOU KNOW, AS WE'VE COME ON BOARD AND WE'VE INHERITED THIS, I DO THINK THAT WE WANT TO DO OUR DUE DILIGENCE TO MAKE SURE THAT WE SEE IT THROUGH FOR OUR PAST COUNCILS AND, OF COURSE, FOR OUR FUTURE GENERATIONS IN TERMS OF WHAT THAT PARTICULAR PROPERTY CAN BE.

AND I KNOW WE AREN'T DISCUSSING THAT TODAY, BUT I DO THINK THAT'S A FUTURE CONVERSATION TO BE HAD.

I DO WANT TO SAY THAT, YES, I COMPLETELY AGREE.

YOU KNOW, ACTIONS ARE GOING TO BE HELPFUL FOR US TO SEE IN ORDER FOR US TO ACTUALLY MOVE THIS ALONG.

I DEFINITELY THINK FROM A TIMING PERSPECTIVE, I ALSO AGREE DOING HAVING THIS CONVERSATION SOONER RATHER THAN LATER WILL BE HELPFUL JUST SO THAT WE CAN GET CLOSURE ON THIS.

I THINK IN TERMS OF COSTS, JUST IN GENERAL WITH THE POTENTIAL OF THIS PARTICULAR SITE IN GENERAL, I DO THINK IT'S REALLY ESSENTIAL THAT WE MOVE IT ALONG AS QUICKLY AS WE ARE ABLE TO.

AND JUST MAKING SURE THAT I KNOW THE MAYOR HAD MENTIONED THIS ALSO INCORPORATING, YOU KNOW, A FAILSAFE IN CASE THIS PARTICULAR OPTION DOESN'T END UP WORKING OUT, MAKING SURE THAT WE'RE TALKING ABOUT SITE 11 AND WHAT THE POTENTIAL OF THAT WOULD LOOK LIKE.

AND SO I JUST WANTED TO MAKE SURE THAT WE'RE INCORPORATING THAT INTO THIS CONVERSATION AS WELL.

AND JUST AS YOU KNOW, AND AS CLOSING REMARKS THAT WE ARE VERY COMMITTED, I THINK FROM THE CITY SIDE, I KNOW THAT MS..

BREWER AND THE TEAM HAVE BEEN WORKING REALLY, REALLY HARD ON MAKING SURE THAT THIS IS SOMETHING THAT CAN ACTUALLY GET CLOSED OUT AND DONE.

AND I KNOW THE COUNCIL IS VERY MUCH COMMITTED TO THAT AS.

WELL. AND SO LOOKING FORWARD TO SEEING THAT HAPPEN IN THE NEXT, HOPEFULLY NEXT FEW MONTHS.

MR. BLACKBURN. I AGREE WITH EVERYTHING THE OTHER THE REST OF THE COUNCIL MEMBERS HAVE SAID.

BUT I AM GOING TO PLEAD JUST LIKE EVERYBODY ELSE.

PLEASE DO EVERYTHING YOU CAN DO TO GET THIS DONE.

THAT PIECE OF PROPERTY IS VERY IMPORTANT TO OUR COMMUNITY, AND I WOULD DEFINITELY NOT WANT TO BE THE PARTY WHO INTERFERED WITH GETTING THIS ACCOMPLISHED AND HAVE TO FACE OUR GRANDKIDS AND HAVE THEM LOOK AT THAT AND SAY WHAT COULD HAVE BEEN HAD THESE THESE FOUR GROUPS GOTTEN TOGETHER AND FOUND THAT COMPROMISE? SO THANK YOU ALL FOR WORKING SO HARD ON IT.

SDG&E, I'M A LITTLE BIT ROUGH ON YOU.

I'M SORRY. I KNOW YOU GUYS HAVE DONE A LOT OF WORK TOWARD THIS AND I DON'T WANT TO DISCREDIT ANY OF THAT.

AND THIS HAS BEEN GOING ON FOR WHAT, EIGHT YEARS OR SOMETHING? SO ANOTHER FEW WEEKS THAT'S SMALL IN THE BIG SCHEME OF THINGS.

BUT THANK YOU FOR CONTINUING TO TRY TO GET IT DONE.

AND I THINK EVERYONE'S ECHOED MY COMMENTS.

SO JUST LET'S FIGURE OUT HOW WE'RE GOING TO GET THIS DONE AND WE'LL MOVE FORWARD.

SO WITH THAT IS COUNCIL MEMBER ACOSTA.

I WAS JUST WONDERING IF WE NEEDED TO MAKE A MOTION TO BRING THIS BACK.

AND THAT WOULD BE MY PREFERENCE IF WE COULD RECEIVE A MOTION FROM COUNCIL AND TWO MONTH TIMEFRAME WOULD PUT US AT JULY 26TH.

[01:35:02]

THERE WILL ALWAYS BE TWO SITES UNTIL WE FINALLY GET IT ACROSS THE FINISH LINE.

I WILL ADD THAT TO MY MOTION.

AND MAYOR, CAN I REMIND THE COUNCIL? SO WHEN WE CAME TO YOU LAST YEAR, WE PRESENTED THREE OPTIONS.

AT THAT TIME, LOT 11 WAS KIND OF OFF THE TABLE BECAUSE OF SDG&E'S CONCERNS, BUT WE THE OPTIONS WERE TERMINATE.

WE'RE DONE. LET'S JUST WE'RE DONE LOOKING.

THE SECOND ALTERNATIVE WAS RELOCATION ON SITE, BASICALLY TAKING REBUILDING, PUSHING THEM BACK AGAINST THE TRACKS, BASICALLY LEAVING ABOUT HALF OF THE SITE AVAILABLE TO US.

AND THE THIRD OPTION WAS THE SHOPS, AND THAT'S THE ONE THE COUNCIL GAVE US DIRECTION ON.

SO YOU'RE PUTTING BACK ON LOT 11.

THERE ALSO MAY BE ANOTHER ALTERNATIVE STILL, WHICH IS THE KIND OF AGAINST THE TRACKS ALTERNATIVE.

WELL, WHAT I HEARD TONIGHT IS THAT THEY WERE STILL WILLING TO LOOK AT A LOT OF 11 OR GIVE US YES, GIVE US VOICE TO THAT.

AND SO I JUST WANT TO MAKE SURE THAT THERE'S MORE THAN ONE OPTION IF WE WANT TO INCLUDE THE TRACK OPTION OR MOVING IT BACK TO THE TRACKS.

THAT ISN'T IN MY TOP THREE PICKS.

BUT AGAIN, I THINK THERE'S STILL MORE TO EXPLORE OVER THE NEXT TWO MONTHS.

SO YES. AND I JUST WANTED TO REMIND THE COUNCIL TO BE TRANSPARENT THAT THAT'S THOSE ARE THE THREE WE PRESENTED TO YOU BECAUSE A LOT OF 11 WAS OFF.

NOW SDGE SAYS THERE MAY BE SOME LIFE THERE.

WE'LL EXPLORE IT IF THE SHOP SITE DOESN'T WORK.

AND AGAIN, AS TIME GOES BY, THE MONETARY NUMBERS CHANGED.

SO AND BEFORE COUNCIL VOTES ON THIS MINUTE MOTION, I JUST WANT TO CONFIRM WITH SDG&E AND THAT THAT DATE WOULD WORK.

I KNOW THAT YOU HAD SAID 3 TO 5 WEEKS AND THIS IS BEYOND THAT 3 TO 5 WEEK LIMIT.

SO THIS WOULD PUT US AGAIN THE LAST WEEK IN JULY, WHICH WOULD BE JULY 26TH.

GREAT. THANK YOU, COUNSIL.

AND IT LOOKED LIKE MS. BREWER HAD SOMETHING TO ADD, BUT MAYBE I WAS READING HER WRONG.

I JUST WANTED TO SAY THAT WE HAVE A RESOLUTION TO PURSUE, A COUNCIL RESOLUTION AND DIRECTION, NOT TO PURSUE THE OPTION BE AGAINST THE RAILROAD TRACKS.

SO IF WE WANT TO CONSIDER ADDITIONAL OPTIONS NEXT TIME, IN ADDITION TO GETTING AN UPDATE ON CURRENT NEGOTIATIONS, WE'LL HAVE TO BRING THOSE FORWARD AND GET ADDITIONAL DIRECTION IN THE FORM OF A RESOLUTION FROM COUNCIL.

SO YOU'RE NOT SUGGESTING THAT? IS THAT WHAT I JUST HEARD? I'M SAYING THAT OUR CURRENT DIRECTION FROM THE COUNCIL AND A PRIOR RESOLUTION IS TO PURSUE THE OPTION UP AT THE SHOPS AT CARLSBAD AND NOT TO PURSUE THE OPTION ON SITE.

SO IF WE WANT TO CHANGE THAT, WE NEED TO BRING YOU THE PROPER RESOLUTIONS IN ORDER TO INSTRUCT US TO DO SO.

SO WE WILL BRING YOU BOTH AN UPDATE ON OUR CURRENT NEGOTIATION ON THE SHOP SITE, WHICH IS CONSISTENT WITH YOUR PRIOR DIRECTION, AS WELL AS TRY TO FRAME UP FOR YOU ANY ADDITIONAL DIRECTION. AND THAT INCLUDES ON LOT 11 OR ON IF YOU WANT TO PURSUE RE EXPLORING, WHICH IS DEFINITELY A ONES PLAN B ON SITE RELOCATION. OKAY.

I THINK I HEARD YOU CLEARLY SO.

ANY CHANGES? IS THE CURRENT MOTION OKAY? THEN IT SOUNDS LIKE. OKAY, SO THAT STANDS.

AND I SECONDED IT, AND THAT'S ALL FINE WITH ME.

SOUNDS GOOD. OKAY.

PLEASE VOTE. OK PASSES UNANIMOUSLY.

THANK YOU, EVERYONE, TONIGHT.

HOPEFULLY WE'RE MOVING FORWARD WITH THAT.

IF ANY FINAL COMMENTS? EVERYBODY'S SHAKING THEIR HEAD.

NO, MR. CHADWICK. MS. BREWER, I JUST WANT TO THANK EVERYBODY.

I WANT TO THANK OUR NEGOTIATING PARTNERS AND I WANT TO THANK THE COUNCIL FOR GOING THROUGH KIND OF A PREMATURE UPDATE WITH ME.

THANK YOU.

CITY CLERK. NOTHING, THANK YOU.

OKAY. WITH THAT, WE STAND ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.