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HomeMy WebLinkAboutTC Min 2008-05-07 TOWN COUNCIL MINUTES CALL TO ORDER Mayor Slavitz called the regular meeting of the Tiburon Town Council to order at 7:35 p.m. on Wednesday, May 7, 2008, in Town Council Chambers, 1505 Tiburon Boulevard, Tiburon, California. ROLLCALL PRESENT: COUNCILMEMBERS: Berger, Collins, Fredericks, Gram, Slavitz PRESENT: EX OFFICIO: Town Manager Curran, Director of Administrative Services Bigall, Director of Community Development Anderson, Assistant Planner Phillips, Director of Public Works/Town Engineer Nguyen, Police Captain Hutton, Town Clerk Crane Iacopi Prior to the regular meeting, beginning at 7:00 p.m., the Council met in closed session to discuss the following: CLOSED SESSION CONFERENCE WITH LABOR NEGOTIATOR (Section 54957.6) Town Negotiator: Bargaining Unit: Director of Administrative Services Service Employees International Union (SEIU) ANNOUNCEMENT OF ACTION TAKEN IN CLOSED SESSION~ IF ANY Mayor Slavitz said that no action was taken in closed session. ORAL COMMUNICATIONS None. INTRODUCTION OF NEW TOWN EMPLOYEE . Building Department Permit Clerk Ann Heglin Director of Community Development Anderson introduced Ms. Heglin to the Council. Town Council Minutes #08 -2008 May 7, 2008 Page 1 He said that Ms. Heglin was a native of Grosse Pointe Michigan and that she had a degree in communications and a background in hospital marketing. Most recently, Anderson said that Ms. Heglin had managed the Vista Belvedere apartments and had become familiar with the Town's building permit process during the renovation of that complex. PRESENTATION . Community Choice Aggregation (Marin Clean Energy) - Presentation by Marin County Sustainability Director Dawn Weisz and Pacific Gas & Electric Company Mayor Slavitz asked whether any items for which the public was present could be heard prior to the presentation. Council moved to hear Public Hearing Item No. 1 first. 1. 7 Wilkins Court - Request to Amend Planned Development # 19 (7 & 9 Wilkins Court) to modify a building envelope and create a landscape envelope at 7 Wilkins Court (Community Development Department) - Introduction and 1 st reading of ordinance Address: Assessor's Parcel No. Owners: Applicant: 7 Wilkins Court 039-070-32 Quentin Keith Hills Ruschmeyer & Associates Assistant Planner Phillips gave the staffreport. He said that the applicant wanted more usable space on the lot at 7 Wilkins Court and had proposed an expanded landscape envelope in exchange for a smaller building envelope, resulting in not net gain. Phillips said that Staffhad also recommended a shift in the existing building envelope in order to provide a better alignment for the Ridge Trail and to remove some obj ects from the parceL He said that the Planning Commission had added two conditional of approval with regard to drainage, prior to approvaL Councilmember Berger said that the drawings attached to the staff report were not clear and that it would help the Council in making their decisions to have more specific drawings. He encouraged staff to ensure that applicants provided enough information in their drawings. Mr. Phillips agreed with the Councilman; he said that he and the Community Development Director had requested refinement of the initial drawings by the applicant. Councilmember Collins asked if the public viewing document, a drawing that clearly delineated the outlines of the old and new building and landscape envelopes, could be attached to the ordinance that was being adopted by Council. Director Anderson said that the size and type of drawing would not meet the specifications of the County Recorder. However, he said that there was language in the ordinance that referenced the drawing and that it would be available in the file for review by interested parties. Town Council Minutes #08 -2008 May 7, 2008 Page 2 Collins concurred with this approach. Mayor Slavitz opened the public hearing. The applicant, Mr. Hills, spoke briefly. Mayor Slavitz closed the public hearing. MOTION: Moved: Vote: To read ordinance by title only. Berger, seconded by Fredericks AYES: Unanimous Mayor Slavitz read, "An Ordinance of the Town Council of the Town of Tiburon amending the 7 & 9 Wilkins Court Master Plan (PD# 19) to modify a building envelope and create a landscape envelope on property located at 7 Wilkins Court." MOTION: Moved: Vote: To pass first reading of the ordinance. Collins, seconded by Berger AYES: Berger, Collins, Fredericks, Gram, Slavitz PRESENTATION . Community Choice Aggregation (Marin Clean Energy) - Presentation by Marin County Sustainability Director Dawn Weisz and Pacific Gas & Electric Company Town Manager Curran gave a brief overview and said that the Council would be asked to make a decision by fall 2008 about whether to join the proposed joint powers authority. She said that there would be additional opportunities to learn about the program but that it was a weighty decision that required consideration. Ms. Curran said that if the Town decided to join the JP A, it would provide residents and businesses with the opportunity to purchase their power from the new entity which promised to have a larger portfolio of "green" energy. Townspeople and businesses would also have the ability to "opt out" and stay with the current provider, PG&E. She said that if the Town decided not to join, there would be no choice of energy providers. Ms. Curran introduced County of Marin Sustainability Director Weisz who gave a powerpoint presentation and held a lengthy discussion about the concept of Community Choice Aggregation (CCA), now referred to as Marin Clean Energy (MCE). [A copy of the presentation is attached.] The Council then asked questions of Ms. Weisz. Q: Vice Mayor Fredericks-Are the sources of energy delivered by PG&E fungible? In other words, we don't always know what kinds of energy are coming through our lines? A: yes. Town Council Minutes #08 -2008 May 7, 2008 Page 3 Q: Councilmember Berger-would MCE invest outside the county? For example, a wind farm in Palm Springs, or other ideas? A: yes. Q: Councilmember Berger-will residents still be able sell back solar at the "deep green" rate? A: Ms. Weisz said that under current regulations there is no incentive to "oversize" your system but that the Huffman legislation would address this. She said that MCE has not yet set its rates but would work with solar integraters to ensure support of this form of power. Q: Councilmember Berger-how does someone "opt in" after the fact? Is there an entry fee? A: yes. Q: Councilmember Berger-Why can't PG&E do what CCA is proposing now, that is to provide a greener mix of energy to its customers in Marin? A: PG&E has tried to move in a green direction but they have also argued against the PUC goal of20%. Q: Councilmember Berger-ifPG&E cannot meet the goal, how can MCE? A: MCE's non-profit status vs. shareholder profits; there will be a margin of profit to invest. Q: Mayor Slavitz-what are the financial risks to the Town? A: The JP A would "firewall" your risks, i.e. the liabilities belong to the JP A; in the San Joaquin model they worked out their issues about joint and several liabilities. Q: Mayor Slavitz-would Marin towns and cities have to contribute money upfront? A: The upfront costs are factored into the business plan; she said the County was looking into covering the initial cost. Q: Mayor Slavitz-will the bonds be backed by the JP A? A: JP A will have rate-making authority and a customer base. Q: Councilmember Collins-what are the three greatest risks in your mind? A: 1) cost of natural gas is rising so staying with the status quo is a risk; 2) finding an energy service provider to stand behind its product; 3) political risk, such as more meetings to attend, rate issues to sort out, and dealing with irate rate payers. Town Council Minutes #08 -2008 May 7, 2008 Page 4 Q: Councilmember Collins-what about flight back to PG&E? A: You can buy insurance and charge exit fees; in general, we cannot find a "boogie man." Q: Councilmember Berger-setting aside a discussion about using food sources to create bio- fuels, the prices of renewable energy may go up fast due to demand. A: PG&E passes on its costs now and would continue to do so; this is something considered in the MCE study. Q: Councilmember Fredericks-distribution rates are currently negotiated with PG&E; is there any limit on distribution rates? A: distribution and transmission costs are closely regulated by CAL ISO and the CPUC. PG&E representative Peter Griffis presented his analysis of the proposal. Mr. Griffis said that his company's response was that the costs of renewable energy stated in the CCA business plan were not realistic. On a positive note, he said that PG&E had a long-term commitment to the environment and was committed to helping the citizens of Marin use less energy and combat global warming. Q: Councilmember Berger-what is the negative side to the MCE proposal to PG&E? Mr. Griffis said that PG&E bought most of its power now; he said that cost is a straight pass- through; the distribution systems, however, would still be intact. Their concerns, according to Griffis, were that they would still be the "provider of last resort," and also that customers would come back to them without notice. He said that they had experience with this during the recent California energy crisis. Q: Councilmember Berger-what is the reticence (by PG&E) of increasing the mix of renewables? Mr. Griffis said that they were looking at higher percentages but that the current mandate of 20% had not yet been reached; he said that the effect of more demand was driving up prices, and that the PUC had already said that the "green tariff' would not count toward this goal. Q: Mayor Slavitz-Should we join the JP A or not? Mr. Griffis said the there were risks associated with procurement; he recommended not taking any contract guarantees at face value and if the Council decided to enter into an agreement, to do it with 'your eyes open.' He cautioned about buying power up front for a certain length of time and then having people leave the program; he said there was also a possible impact on future bond ratings. Town Council Minutes #08 -2008 May 7, 2008 Page 5 Q: Councilmember Collins-explain the "partnership opportunities" mentioned in a PG&E letter in the CCA binder. Mr. Griffis' and his associate listed several programs-the Solar Schools Initiative, solar workshops with the City of Novato and the County, a methane study with the City of San Rafael, Climate SMART, and clean transportation programs such as the natural gas filling stations. He said that these would continue even if CCA moved forward. Q: Councilmember Collins-would the PUC regulate the transitional rate? Mr. Griffis said that there was a provision in the Huffman legislation (ABI17) to protect PG&E customers and that CCA would have to post a bond with the utility. He noted that PG&E was trying to raise the amount of the bond. Town Manager Curran said that the Huffman legislation would require the utilities to purchase back solar power from its rate-payers. Mr. Griffis said that he thought PG&E was supporting this legislation. Vice Mayor Fredericks said that she would like to see a change in the regulation that limited the size of solar installations people could install. Mayor Slavitz asked Ms. Weisz to respond to the PG&E statements. Councilmember Gram asked her to address their cost proj ections, specifically. Ms. Weisz said that she had attended PUC hearings and that PG&E had requested 6% rate increases (higher than those reflected in their slides). She also said that PG&E was in the process of building two or three natural gas power plants but that since only 16% of the natural gas usage was from this area, their risks would be minimized. Weisz also said that exit fees were already in place and that the bond would protect the utility and its investors. Councilmember Gram asked about the amount of exit costs. Ms. Weisz said that it would vary depending on the cost of power. He said that $25 had been given as an example. Ms. Weisz concurred. Mayor Slavitz opened the public hearing. Will Hutchinson, small business owner from Mill Valley, spoke in favor of "green energy" and said that he would not mind paying a premium for it. He said that this was the innovation of the future and that the market would "explode" and the costs would eventually go down; also, that it was the right thing to do to move away from consumption of fossil fuels. He said that PG&E was already a provider of clean energy but that CCA might push the utility to increase the mix. Town Council Minutes #08 -2008 May 7, 2008 Page 6 Mayor Slavitz closed the public hearing. Town Manager Curran said she thought the presentation had been very informative, however, the Council would at some future date be asked to consider adoption of the ordinance and JP A. Mayor Slavitz asked that staff come back to the Council with a report that included a legal opinion on this subject, as well as an analysis of the financial risks to the Town. Vice Mayor Fredericks said that she would like to see more information get out to the public early on in the discussion. Ms. Fredericks said that she was concerned that people would not understand their options. Town Manager Curran said that she had covered the subject in the e-newsletter, Tiburon Talk, and that she would put it on the Homeowner's Association Summit agenda. She said that she would welcome more ideas on outreach. CONSENT CALENDAR 1. Town Council Minutes - Adopt minutes of March 20, 2008 meeting; Town Council/Staff Retreat (Town Manager Curran) 2. Town Council Minutes - Adopt minutes of April 16, 2008 meeting (Town Clerk Crane Iacopi) 3. Town Monthly Investment Summary - Adopt March 2008 report (Director of Administrative Services Bigall) 4. Town Council Committee Appointments - Revise Appointments List to reflect four-year terms of Alice Fredericks and Richard Collins to Transportation Authority of Marin, and other revisions (Town Clerk Crane Iacopi) 5. Public Works Contracts - Approve budget amendment and authorize Town Manager to enter into contract with Clean Lakes, Inc. for Railroad Marsh maintenance and cattail removal(Superintendent of Public Works Brewer) 6. Affordable Housing Week - Adopt resolution in support of May 12 through 19,2008 (Community Development Department) 7. Beverly Bastian - Adopt resolution in honor and memory of Beverly Bastian (Town Manager Curran) Town Council Minutes #08 -2008 May 7, 2008 Page 7 MOTION: Moved: Vote: To adopt Consent Calendar Item Nos. 1 through 7, as written. Fredericks, seconded by Collins AYES: Unanimous PUBLIC HEARINGS 1. 7 Wilkins Court - Request to Amend Planned Development # 19 (7 & 9 Wilkins Court) to modify a building envelope and create a landscape envelope at 7 Wilkins Court (Community Development Department) - Introduction and 1 st reading of ordinance Address: Assessor's Parcel No. Owners: Applicant: 7 Wilkins Court 039-070-32 Quentin Keith Hills Ruschmeyer & Associates Item taken out of order (see pages 2 and 3 above). 2. Chapter 16 (Zoning Code) Ordinance - Consider approval of text amendments to Chapter 16 of the Town Code (Zoning) to repeal sections concerning the Parks & Open Space Commission (Director of Community Development Anderson) - Introduction and 1 st reading of Ordinance Director of Community Development Anderson gave the report. He said that the ordinance proposed to repeal sections in the Town Code pertaining to the recently disbanded Parks & Open Space Commission; essentially, it was a "clean up" ordinance. Mayor Slavitz opened the public hearing. There was no public comment. Mayor Slavitz closed the public hearing. MOTION: Moved: Vote: To read ordinance by title only. Berger, seconded by Fredericks AYES: Unanimous Mayor Slavitz read, "An Ordinance of the Town Council of the Town of Tiburon repealing certain sections of Title IV, Chapter 16 (Zoning) of the Tiburon Municipal Code concerning the Parks & Open Space Commission." MOTION: Moved: Vote: To pass first reading of the ordinance. Berger, seconded by Fredericks AYES: Berger, Collins, Fredericks, Gram, Slavitz Town Council Minutes #08 -2008 May 7, 2008 Page 8 TOWN COUNCIL REPORTS None. TOWN MANAGER'S REPORT Town Manager Curran said that the Council had received copies of the staff report pertaining to 430 Ridge Road for their use in scheduling a site visit prior to the May 21 meeting. WEEKLY DIGESTS . Town Council Weekly Digest - April 18, 2008 . Town Council Weekly Digest - April 25, 2008 . Town Council Weekly Digest - May 2, 2008 Town Manager Curran noted the memo in the May 2 Digest pertaining to the Congregation Kol Shofar appeal resolution. ADJOURNMENT There being no further business before the Town Council of the Town of Tiburon, Mayor Slavitz adjourned the meeting at 9:55 p.m. in honor and memory of Beverly Bastian for her 50 years of community service. JE ATTEST: (' // (' it, j . .,{//' ). j ~_ _ r -- '- / . ~'i l- \. . D~ CRANE IACOPI, TO~ CLERK Town Council Minutes #08 -2008 May 7, 2008 Page 9 Community Choice Aggregation in Marin 'll, CCA is a public-private mix IOU CCA Public Utility (municipal utility like SMUD) (investorjwned utilitylPG&E) j 1 ---?> ---?> Marin Clean Energy RENEWABLE BY CHOICE Marin Clean Energy Basics Local governments purchase power for their communities · JPA created - 2009 at earliest · Energy Service Provider selected to provide all~services · Power purchased from outside Marin initially · Customers chose between MCE and PG&E for power source · PG&E continues to deliver electricity, maintain transmission lines and provide customer service Marin Clean Energy RENEWABLE BY CHOICE Why explore MCE? Personal Choice: Customers can choose between MCE & PG&E Financial Advantages · Rate Stability and local control for businesses and residents · More dollars stay in the local economy · Renewable-based businesses fostered Environmental Advantages · Reduce dependence on fossil fuels · Increase use of renewable resources (solar, wind, small hydro) · Reduce greenhouse gas emissions Marin Clean Energy RENEWABLE BY CHOICE Other California Communities considering MCE-type programs . San Joaquin Valley CCA formed; Contract finalized . San Francisco CCA business plan complete . Oakland, Berkeley, Emeryville, Chula Vista drafting CCA business plan . West Hollywood, Beverly Hills, Pleasanto~, San Luis Obispo, Davis actively considering CCA - Marin Clean Energy RENEWABLE BY CHOICE What has been accomplished? 2003 to 2005. Phase I completed tasks ./ Feasibility Study ./ Peer Review of Feasibility Study ./ Bond Counsel/Legal Review ./ Risk Analysis Marin Clean Energy RENEWABLE BY CHOICE What has been accomplished? 2005 to 2008 Phase II completed tasks ./ Formation of Local Government Task Force ./ Alternatives Analysis on Local Renewables ./ Busi ness Pia n ./ Peer Review of Business Plan Marin Clean Energy RENEWABLE BY CHOICE Marin Clean Energy: Customers Choose ~ {r~* .:~s ~:,:~~~ ~~~~ ~ ~ ~0:~' P_~ ~~:7 ~-.....u - ~~-~--- ~~'f:t;;i~:;,; Dark Green 100% renewable Cost: initially 8-10% higher than PG&E, decreasing . ..~ ~:'~._.~' ....- - -. -.~ ~'-- "-~~ ~-~.~~~-=~ -~-- " , Marin Clean Energy RENEWABLE BY CHOICE MCE rates over time $130 ,00 ..-......-...-,--.--.-.....--..--.0.'.....--.-..... __.......__.__________..._____.o.'...._________o_.____o_-.-------.-- $125.00 $120.00 ----.---.----..-..--' -.-...-.. -- ...--...---00.--.... ._O.___OnO__._._._.._ - ________.0__.__..__.__._,._ $115.00 $110.00 $105.00 $100.00 $95.00 $90.00 $85.00 $80.00 Year 1 Year 5 Year 10 Year 15 1- - PG&E ,.,....._-,,- Light Green Deep Green I Marin Clean Energy RENEWABLE BY CHOICE Business Plan detail... PG&E Renewable content 120/0 Typical monthly cost: $82.88 Year 1 Year 5 $93.29 Year 10 $108.14 Year 15 $125.37 GHG Reduction nja Expected Participation* 160/0 Marin Clean Energy RENEWABLE BY CHOICE Local Renewables Solar Small Wind Large Wind Offshore Wind Methane Capture Biomass Ocean Power MW (Megawatts) 220 11 182 280 6.5 7-16 150 Deployment Potential High ~ Medium Low Low High Medium Low (currently) Marin used 240 MW in 2005 Marin Clean Ener.gy RENEWABLE BY CHOICE GHG Reduction Plan: Sample measures 400,000 'i:' III ~ 300,000 .. Ql Q. III C ,g c 200,000 o ::l U :J 'i 0:: N 100,000 o o 'b<:::>~ 'b<:::>~ "". "". <:::>~() <:::><:::><:::> ,,~. ,,~. ,,<:::>~ ,,~~ ". ". Encourage Community Car Sharing Expand Local Install Solar or Regional Panels on Bus Sel'.1ce Municipal Facilities Marin Clean Energy ..~~~.- ~~. '!; "o:,~ ~~ Perfonn Energy Efficient Lighting Retrofits Marin Clean Energy RENEWABLE BY CHOICE Key issues and questions.:-'. Marin Clean Energy RENEWABLE BY CHOICE Why did energy fluctuations in 2000 impact IOU costs? . In 1996 utilities were prevented from entering into long-term power purchase contracts . Costs on the spot market skyrocketed and were manipulated . CPUC regulations have changed to avoid this recu rrence Note: MCE would buy no more than 150/0 of power on the spot market. MCE long-term contracts and ownership of assets is a more conservative approach. Marin Clean Energy RENEWABLE BY CHOICE How can MCE light green rates stay at or below PG&E? Low overhead & not-far-profit structure reduces costs · Few MCE staff - competitively solicit services · Lower regulatory costs . Low overhead/facility costs and no shareholder profits MCE will have low borrowing costs . Tax-exempt financing of assets . Discounts for prepayment of energy Ability to initiate long-term contracts from scratch 15Marin Clean Energy RENEWABLE BY CHOICE Who would be the administrator of MCE? Two options ... . Create a new organization to administer (like Transportation Authority of Marin) . Use existing organization with experience or iAterest in public utilities Marin.Clean Energy RENEWABLE BY CHOICE Who are Energy Service Providers? . Sell power to Public Utilities and IOU's . Some offer green portfolios (Alameda City buys 700/0 renewable) . Some own more generation assets and trade more power each day than SCE and PG&E combined Marin Clean Energy RENEWABLE BY CHOICE Are there economic benefits beyond local renewables? . Green image marketing for local. businesses . Likely to have more stable rates for local businesses and residents . Ability to offer economic development or low income rates Marin Clean Energy RENEWABLE BY CHOICE When are there exit fees? . To cover cost of energy purchased on behalf of a customer if cost of power ~is lower when they depart . If energy costs continue to rise no exit fee needed . Expensive investments by utilities can increase exit fees Marin Clean Energy RENEWABLE BY CHOICE Can local governments provide power competitively? Rates in 2005 per kWh . City of Pa 10 Alto 7.54 . Los Angeles Dpt. Water & Power 9.65 . SMUD 9.80 . Alameda City 12.34 . PG&E 12.68 . Southern CA Edison 12. Marin Clean Energy RENEWABLE BY CHOICE What is the availability & cost of renewables? 23% Biomass .. 1,400 MW of renewable power offered ~o ~, San Joaquin's CCA in recent bidding process for 400 MW . PG&E's recent renewable solicitations attracted strong response from market . Cost of all energy sources (including renewables) increased 300/0 in the last 3:..5 years; but the renewable premium (1.5 cents/KWh) has remained constant Marin Clean Energy RENEWABLE BY CHOICE CPUC reports unprecedented response to 2007 renewable solicitations IOU RPS Bids by Fuel Type 90,000 80,000 70,000 ~ 60,000 ~ 50,000 !2. >0 40,000 i W 30,000 20,000 10,000 2003 RFO 2004 RFO 2005 RFO 2008 RFO 2007 RFO . OU..,r [] Small H}dro IJ Biogas . Biomass . Geothermal . Wird [] Solar Chart shows projects bid into the renewable solicitations issued by CA's three large IOUs: PG&E, Southern California Edison, and San Diego Gas & Electric. 22Marin Clean Energy . RENEWABLE BY CHOICE' PG&E response to Business Plan future power costs . Used a gas forecast that assumes gas will be 140/0~ cheaper in 12 years than it is now (gas costs have-"- increased 300/0 in the last 5 years) . Analyzed its historical generation cost escalation using a 1998 starting point. Conditions in 1998 were ' unrepresentative and lead to a low estimate of cost escalation that is unlikely to recur Marin Clean Energy- RENEWABLE BY CHOICE Next Steps... Phase III · April - November 2008: Cities and County vote on participation 1. Study sessions 2. Ordinance: 1st Reading 3. Ordinance: Merit Hearing · December 2008: JPA formed Marin Clean Energy RENEWABLE BY CHOICE Phase IV · Early 2009: Request for proposal issued; Energy Service Provider selected ~... · 2009: Implementation plan submitted to CA Public Utilities Commission (Business plan + supplier information) · Mid 2009: Final go/no-go decision by JPA Marin Clean Energy RENEWABLE BY CHOICE Off-ramps County/City off-ramps: · April - November 2008: Cities and County vote on participation in JPA · Mid 2009: If vendor selected, JPA votes before signing contract . Customer choice off-ramps: · 60 days before launch: Customers receive 1st opt-out notice · 30 days before launch: Customers receive 2nd opt-out notice · Final. bill before launch: Customers receive 3rd opt-out notice · First MCE bill: Customers receive 4th opt-out notice · After MCE enrollment~ Customers can still return to PG&E Marin Clean Energy RENEWABLE BY CHOICE Questions? Marin Clean -Energy RENEWABLE BY CHOICE .,.