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20110920 Regular City Council Meeting - MinutesMINUTES OF THE REGULAR CITY COUNCIL - LIGHT & POWER MEETING OF THE CITY OF VERNON HELD SEPTEMBER 20, 2011, IN THE COUNCIL CHAMBERS OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Gonzales, Davis, McCormick, Maisano, Newmire MEMBERS ABSENT: None The meeting was called to order at 8:01 a.m. by Mayor Gonzales. The City Clerk announced that Interim City Attorney Michael Montgomery had one addition to the agenda. Montgomery requested that a financial transaction be added to the end of the agenda, and recommended that the meeting be recessed until 5:00 p.m. after addressing all other matters on the agenda. Three Council members will need to be present in order to take action on the item. It was moved by McCormick and seconded by Davis that the agenda be amended to include the financial transaction. Motion carried, 5-0. The City Clerk announced that this was the time allotted for public comment. The Mayor inquired whether anyone in the audience wished to address the City Council. No one responded. It was moved by Davis and seconded by Maisano to approve the Minutes of the Regular City Council - Light & Power Meeting held August 16, 2011. Motion carried, 5-0. CONSENT CALENDAR: Mayor Gonzales requested that item No. 5 be removed from the consent calendar. Gonzales advised that he wants to defer the item until the City hears back from its financial advisor regarding the City's current finances. Gonzales requested that the item be discussed in closed session during the next .City Council meeting. It was moved by Newmire and second by Maisano that the item be removed from the consent calendar. Motion carries, 5-0. The City Clerk advised that an employee's position or evaluation could be discussed in closed session, but not their compensation. It was moved by Newmire and seconded by Maisano, that the remaining matters on the Consent Calendar be approved as recommended. Motion carried, 5-0. 1. Approval of Light & Power Warrant Register No. 307, totaling $5,584,041.39, which covers the period of August 9 through September 12, 2011, and consists of the following: a.Ratification of wire transfers totaling $5,329,807.15; and b.Ratification of the issuance of early checks totaling $223,926.21; and Regular City Council - Light &Power Department Minutes September 20, 2011 c.Authorization to issue pending checks totaling $30,308.03; and d.Ratification of voided check nos. 508580 through 508583 totaling $27,111.13. 2. Approval of Gas Warrant Register No. 95, totaling $2,531,253.30, which covers the period of August 9 through September 12, 2011, and consists of the following: a. Ratification of wire transfers totaling $2,511,007.63; and b.Ratification of the issuance of early checks totaling $20,245.67. 3. Resolution No. 2011-150 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of Task Order No. 2011-2 to the Standard Master Agreement, By and Between the City of Vernon and CH2MHill Engineers, Inc. 4. Resolution No. 2011-151 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of a Services Agreement with Weatherproofing Technologies, Inc. for the Leakage to the East and West Wall in the Power Plant Control Room 5. Removed. 6. June 2011 Resource Procurement Report, to be received and filed. ORAL REPORTS Director of Light & Power Department Carlos Fandino reported on the Tehachapi renewable energy projects. The Department is trying to extrapolate wind data so that the City can get the most value for the property and determine whether the land should be developed or sold. Peter Hervish reported that he had attended the Kern County Planning Commission hearing on September 13, 2011, in order to assure that the City takes the proper steps to develop a clear and successful environmental report. Hervish reviewed the lay of the land and identified the North Sky River Wind Energy Project, property owned by. NextEra, which was one of the topics up for discussion during the Commission hearing. Hervish advised that the public in general is pro wind energy. Kern County presents the greatest wind capacity in the United States-. However, there have been complaints that the structures are too large. The argument is that people move to the area to escape the city -life and that the structures ruin the ambiance. Hervish explained that the typical wind turbine generator is about half the height of the Empire State Building, approximately 500 feet. - In response to Mayor Gonzales, Hervish advised that sonar units measure the wind activity. A constant steady flow of wind produces the greatest capacity. Typically, the higher the Page 2 of 5 Regular City Council - Light & Power Department Minutes September 20, 2011 turbine, the greater the capacity for mega watt output. it is more efficient to have a few large standing turbines than a lot of smaller ones. In response to Councilman Newmire, Hervish explained that there are a few homes in the northwest region of the land in question. The land is comprised of rolling hills with some homes built on the lower flat terrain. However, tips of the turbines may be within sight and residents might hear the vibrations. Hervish advised that children with epilepsy might present a problem for developers. Developers have to present data that the turbines will not induce epileptic seizures. Hervish reported that board member Lorelei Oviatt is in favor of developers such as NextEra and the City. Hervish reported on the task order for CH2MHILL. Hervish advised that the majority of the funds are allocated to data collection and field work, and that the figures will be getting smaller due to the purchasing sales agreement which allows the sharing of data. As of July 31, 2011, about $75,000 has been spent, the rest of the funds were consumed by September 1, 2011 due to activity during the month of August. Hervish reported that the North Sky River Project was presented to the Kern County Board of Supervisors at their September 13, 2011 meeting. The presentation is ahead of schedule but it is a necessary step because of the seasonal change in wind and animal patterns. The goal is to have CH2MHILL's technical report completed by September 26, 2011, and to begin the application process by October 1, 2011, which is a prelude to the environmental report. Filing of the desert tortoise report will occur on November 15, 2011. In response to Councilman Newmire, Hervish advised that even though there is a low density population of tortoises in the area, the fear is that they will get run over by trucks passing through the area. One suggestion was to rope off the area to avoid accidents. During the months of December through July, CH2MHILL will be preparing the environmental impact report ("EIR"). Concurrently, the spring survey report will be done during the months of February through April. The City must conduct the survey during this period, or wait another year. v-Bar anticipates wind capacity at mid 30%s and will be preparing a report combining district legal descriptions based on the finalized array by April 2012. By June 2012, the draft EIR will be available for public review and comment. In August and September 2012 consultants will have an opportunity to respond to comments and present a final report. The construction period and permit process will commence in February 2013. Hervish reviewed some of the agenda items during the September 13, 2011, Kern County Planning Commission hearing. Hervish reported on Clearvista Wind Energy Project's failed attempts for permitting and advised that CH2MHILL was not the contractor for Page 3 of 5 Regular City Council - Light & Power Department Minutes September 20, 2011 the environmental impact report, and opined that the City will be more successful. During the hearing, the board had agreed that it was wrong to extend the application acceptance through continuance when petitioners dropped obstacles in the path of progress when developers spend millions on projects in accordance with Planning. The application for Clearvista Wind Energy was subsequently approved. Hervish emphasized that the Commission is on the developer's side as long as the appropriate steps are taken. During the North Sky River Project agenda item from NextEra, the Audubon Society introduced arguments against the Golden Eagle and Condor mortalities. Hervish advised that this argument was expected and will be continuous. There have been eight bird deaths, but that Commissioner Lorelei Oviatt is working with the developers. One family was concerned that the light passing through the wind turbine blades created flickers of light that could trigger epileptic seizures in their children if the flickers were in the range of 2 Hertz. Medical range for epileptic seizures can be triggered by light flashes ranging from 5 to 30 Hertz. NextEra presented data that the flicker at anytime of the day or the position of the sun on an annual basis did not exceed a threshold of 1.8 Hertz, well below the medical range. The annual output for NextEra is forecasted at 36%, which is a healthy realistic capacity. The value of the land is calculated at $4,000 per acre, above and beyond the $50 million the City would receive if it were to sell its land. In response to Councilman Newmire, Fandino advised that the value of the land has increased since the studies have been completed. Without the data, the land would not have the same value. The studies backup the claim. Hervish further explained that relying on math and physics substantiates the claims. Hervish advised that the City has been contacted by various individuals who have adjacent parcels who are interested in purchasing the land. Hervish opined that the City should be able to proceed with the environmental impact report application phase fully capable of addressing any incident. Hervish reviewed the scope of work for task order 2011-2. The project layout will be refined based on the avian and anabat data collection and developed into 3-dimentional coordinates. This GIS analysis/mapping will provide a better understanding of where the wind turbines will be located and the visual effects it will have on local residents. The task order also calls for permitting and planning support as well as project administration for ongoing project management, accounting and administrative support. Total cost estimates for the task order is $500,000 over the next 4-5 months. Hervish advised that the next task order will have a smaller associated cost because it will not be as labor intensive. Page 4 of 5 Regular City Council - Light & Power Department Minutes September 20, 2011 Fandino concluded that the highest bid for the land was at $1,000 per acre. The data collected projects that the City can make four times as much if the land is developed. At 8:54 a.m., it was moved by McCormick and seconded by Davis, to recess the meeting until 5:00 p.m. in order to address the financial transaction that was added to the agenda. Motion carried. ATTE . X Wil and & Y i City Clerk / G sXEc.- Hilario Gonzal Mayor Page 5 of 5