IRWINDALE CITY COUNCIL CHAMBERS DECEMBER 3, 2025
5050 N. IRWINDALE AVENUE WEDNESDAY
IRWINDALE, CALIFORNIA 91706 6:00 P.M.
The Irwindale CITY COUNCIL met in a special meeting at the above time and place.
ROLL CALL:
Present: Councilmembers Albert F. Ambriz, Mark A. Breceda, Manuel R. Garcia; Mayor Pro Tem H. Manuel Ortiz; Mayor Larry G. Burrola
Also Present: Julian A. Miranda, City Manager; Adrian Guerra, City Attorney; Theresa Olivares, Assistant City Manager; and Laura Nieto, Chief Deputy City Clerk AB 2449 DISCLOSURES
None.
SPONTANEOUS
COMMUNICATIONS
There were no speakers.
PUBLIC HEARINGS
ITEM NO. 7A
REQUEST TO APPROVE A 400-MEGAWATT (MW) BATTERY ENERGY STORAGE SYSTEM (BESS) ON 15.94 ACRES LOCATED AT 13620 LIVE OAK LANE IN THE IRWINDALE GATEWAY SPECIFIC PLAN (IGSP). THE REQUEST ALSO INCLUDES THE CONSTRUCTION OF 1,200 SQUARE FOOT OPERATIONS AND MAINTENANCE BUILDING, ON-SITE COLLECTOR SUBSTATION, OVERHEAD ELECTRICAL TIE-LINE, AND A 130’-0” POINT OF CHANGE OF OWNERSHIP (POCO) POLE FOR PROPERTY LOCATED AT 13620 LIVE OAK LANE
Senior Planner Jones made a presentation, after which she introduced Sam Holing, Director of Development at AYPA, who continued the presentation. Senior Planner Jones subsequently concluded the report.
Discussion was held relating to 1) the Poco Pole height, components, and locations, and 2) landscaping at the project site per the Specific Plan.
At 6:32 p.m., Mayor Burrola opened the public hearing.
Suzanne Gomez asked whether continuous monetary contributions will be made to fund emergency contingencies, to which Senior Planner Jones advised that financial assurances have been incorporated into the development agreement. Ms. Gomez suggested that the fund receive continuous funding to cover emergencies, which Senior Planner Jones responded to by advising that the condition of approval for the emergency response plan requires the site owner to reimburse government agency service providers and site clean up providers for costs related to emergency incidents at the facility.
Mr. Holing added that the development agreement requires significant insurance obligations to protect the city as well as the facility. Additionally, the developer will be required to provide ongoing training to its staff.
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Suzanne Gomez suggested that the Council mandate an emergency fund that the City can access in case of emergency.
An anonymous individual spoke on what they perceived to be contamination to the riverbed due to the placement of batteries damaged by the Eaton fire, and cautioned against the use of batteries containing nickel, manganese, and cobalt. However, the speaker noted that the site is proposed to be used with lithium iron phosphate batteries which are very safe and do not give off high exothermic energy.
There being no additional speakers, Mayor Burrola closed the public hearing at 6:45 p.m.
Additional discussion was held relating to: 1) whether the financial assurances and guarantees in the development agreement, including the various types of required insurance, are sufficient to cover any type of emergency, 2) the timeline and project milestones that would trigger the various types of payments to the City, and 3) revenues derived from sales, utility user, and property taxes.
In response to a question by Mayor Burrola, Assistant Fire Chief Richard Stillwagon discussed protocols to address fires that may occur at the project site as well as ongoing training to better equip firefighting teams in addressing any type of emergency that may arise, as well as AYPA’s willingness to adhere to the CA Fire Code, the Los Angeles County Fire Code, and all building codes.
Councilmember Breceda asked about the potential dissemination of toxic fumes, to which Assistant Fire Chief Richard Stillwagon the types of batteries being proposed for use at this site would burn at 1,700 degrees Fahrenheit which would consume all gases.
Councilmember Breceda then asked about financial assurances, to which Michelle Hernandez with the City Attorney’s Office advised that the development agreement specifies how financial assurances are determined.
Discussion was then held relating to the agreement’s force majeure clause, which Councilmember Breceda opposed since he said past clauses on other contracts have negatively affected the City. It was stated that such clauses are fairly standard provisions that could be found in most agreements. Mr. Holing spoke on the financial benefits the City stands to receive with this project, such as the $2 million up-front payment, a $6 million payment at the issuance of the Certificate of Occupancy, the sales tax which is paid upfront during the construction period, and the potential to cash out a surety bond if the company does not meet its obligations. He added that the force majeure provision would only be used when there exists a major catastrophe that does not permit the project to recover to its previous condition within the time specified, that the provision could not be used if the company continues operating as if nothing happened, and that the company wishes to have the site operating as quickly, safely, and reliably as possible.
City Attorney Guerra cited from the provision found at section 13.10 of the development agreement, which he stated does not absolve AYPA of any obligations, but would give the company the opportunity to delay the performance of the obligations. He added that, should the Council have a concern over an obligation that it feels the developer would not comply with, the force majeure provision might be reworded to indicate that the $2 million upfront payment or the $6 million payment is not subject to force majeure.
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As requested by City Manager Miranda, City Attorney Guerra cited from and discussed the significance of section 2.6 of the agreement
Mayor Burrola asked about the value of the bond, to which City Attorney Guerra advised that the amount has yet to be determined. The agreement calls for the developer to conduct a study around the time of the issuance of the Certificate of Occupancy to determine what the appropriate amount of the bond should be, after which it would be renewed every three years.
Mayor Burrola requested that the agreement contain verbiage specifying that the Council would review the type of equipment to be removed from the BESS facility after 25 years, to which Mr.
Holing advised that the property would be owned by AYPA, though when the site is decommissioned, all equipment will be removed from the site, which will be reverted to roughly what it looks like today. There is no allowance for another project to be installed.
As requested by Councilmember Garcia, Ms. Hernandez discussed the developer’s obligations as listed under section 3.1 of the development agreement.
City Attorney Guerra advised that the development agreement provides that, within 30 days of the Council having approved the SPDR of the variance and has adopted the ordinance after second reading, the developer would tender a one-time cash payment of $2 million to the City.
He also suggested that the Council consider that a force majeure claim would delay the construction of the project, which would delay the issuance of a Certificate of Occupancy, which would in turn delay the second payment to the City.
Mr. Holing indicated that, should an act of God occur, such as an earthquake, AYPA would not generate revenue while still paying for construction, and as such, has a vested interest in completing the project as soon as possible.
City Attorney Guerra suggested adding language to section 13.10 to indicate that the force majeure provision shall not apply to the initial DA payment and shall not apply to the insurance provisions, financial assurances, and guarantees required by the agreement, or that the provision shall not apply to anything other than construction of the project.
At 7:49 p.m., the Council took a short recess.
The Council reconvened in Open Session at 7:56 p.m. with all members present.
Mr. Holing requested that the verbiage suggested by City Attorney Guerra not apply to the final DA payment.
In response to a question by Councilmember Breceda, Mr. Holing indicated that construction of the facility is scheduled to be completed by the end of June 2027. If passed tonight, the $2 million payment would be issued within 30 days.
Responding to a concern from Councilmember Ambriz, Director Borhani advised that staff is working to ensure that it receives the community benefits specified in the agreement, regardless of any unforeseen events. Director Borhani added that, if a force majeure event occurs which delays construction, AYPA should still pay the $5 million in sales and use tax.
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Ms. Hernandez cited from section 3.3.3 of the Development Agreement and confirmed that the timing of the $5 million payment would be affected by a delay in construction.
Mr. Holing confirmed that AYPA would accept that the force majeure provision not apply to the $2 million payment, the parent guarantee, the decommissioning bond, the insurances that AYPA is required to keep, the sales tax, and the $6 million payment payable at the issuance of the Certificate of Occupancy. He stressed that AYPA will endeavor to build the project as quickly as possible and has structured a construction model around a non-force-majeure event.
Responding to a request by Director Borhani, Mr. Holing stated that the DA’s current iteration allows sales and use tax to go above $5 million. He also stressed the need to move forward.
Additional discussion was held relating to the terms of the force-majeure provision that the City and AYPA would be amenable to.
City Attorney Guerra stated that he would prefer to add language that he hoped the applicant would accept: at the end of section 13.10 of the Development Agreement, verbiage would be added to indicate “this provision shall not apply to the remittance of the initial DA payment, the parent guarantee obligations, the surety bond obligations, insurance and indemnification requirements, and any and all financial assurances and obligations of developer required by this agreement”. With respect to the final DA payment, in the event of a force-majeure event that delays construction for a period of one year or more, the remittance of the final DA payment shall be due and payable on the one-year anniversary of the claim or June 2028, whichever is later.
Ordinance No. 814, entitled: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
IRWINDALE, CALIFORNIA, FINDING THAT ENVIRONMENTAL IMPACT REPORT FOR THE IRWINDALE GATEWAY SPECIFIC PLAN (SCH NO. 2023020290) HAS FULLY ANALYZED THIS PROJECT AND APPROVING DEVELOPMENT AGREEMENT NO. 01-2025 BY AND
BETWEEN THE CITY OF IRWINDALE AND SAN GABRIEL PROJECT I LLC, SAN GABRIE
PROJECT II LLC, SAN GABRIEL PROJECT III LLC, AND SAN GABRIEL PROJECT IV LLC
FOR THE BATTERY ENERGY STORAGE SYSTEM PROJECT AND ADOPTING FINDINGS IN SUPPPORT THEREOF,” with added language at the end of section 13.10 which shall state “this provision shall not apply to the remittance of the initial DA payment, the parent guarantee obligations, the surety bond obligations, insurance and indemnification requirements, and any and all financial assurances and obligations of developer required by this agreement. With respect to the final DA payment, in the event of a force-majeure claim that delays construction for a period of one year or more, the remittance of the final DA payment shall be due and payable within 30 days of the one-year acceptance of the force-majeure claim by the City or June 1, 2028, whichever is later,” was introduced for first reading, reading by title only and waiving further reading thereof, on the motion of Councilmember Breceda, seconded by Mayor Pro Tem Ortiz, and unanimously approved.
Resolution No. 2025-107-3695, entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF IRWINDALE, CALIFORNIA, FINDING THAT THE ENVIRONMENTAL IMPACT REPORT FOR THE IRWINDALE GATEWAY SPECIFIC PLAN (SCH NO. 2023020290) HAS
FULLY ANALYZED THIS PROJECT, APPROVING SITE PLAN AND DESIGN REVIEW (DA) NO. 03-2025 FOR THE CONSTRUCTION OF A 400-MEGAWATT (MW) BATTERY ENERGY STORAGE SYSTEM (BESS), INCLUDING A 1,200 SQUARE FOOT OPERATIONS AND
MAINTENANCE BUILDING, ONSITE COLLECTOR SUBSTATION, OVERHEAD ELECTRICAL
TIE-LINE AND POINT OF CHANGE OF OWNERSHIP (POCO) POLE FOR PROPERTY LOCATED AT 13620 LIVE OAK LANE, IRWINDALE, CA (APN: 8532-002-046) IN THE
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IRWINDALE GATEWAY SPECIFIC PLAN (IGSP) SUBJECT TO CONDITIONS AS SET FORTH HEREIN, MAKING FINDINGS IN SUPPORT THEREOF,” was passed, approved, and adopted, on the motion of Mayor Burrola, seconded by Councilmember Breceda, and unanimously approved.
Resolution No. 2025-108-3696, entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF IRWINDALE, CALIFORNIA, FINDING THAT THE ENVIRONMENTAL IMPACT REPORT FOR THE IRWINDALE GATEWAY SPECIFIC PLAN (SCH NO. 2023020290) HAS FULLY ANALYZED THIS PROJECT, APPROVING A ZONE VARIANCE NO. 01-2025 TO
ALLOW FOR AN OVERHEAD ELECTRICAL TIE-LINE AND TO EXCEED THE MAXIMUM ONSITE STRUCTURE HEIGHT OF 65’-0” FOR THE INSTALLATION OF A 130’-0” POINT OF CHANGE OF OWNERSHIP (POCO) POLE FOR A 400-MEGAWATT (MW) BATTERY ENERGY STORAGE SYSTEM (BESS), LOCATED AT 13620 LIVE OAK LANE, IRWINDALE, CA (APN:
8532-002-046) IN THE IRWINDALE GATEWAY SPECIFIC PLAN (IGSP) SUBJECT TO CONDITIONS AS SET FORTH HEREIN, MAKING FINDINGS IN SUPPORT THEREOF,” was passed, approved, and adopted, on the motion of Councilmember Ambriz, seconded by Mayor Pro Tem Ortiz, and unanimously approved.
RECESS TO CLOSED SESSION
At 8:44 p.m., the City Council met in Closed Session to discuss the following:
ITEM NO. 8A
Public Employee Performance Evaluation
Pursuant to California Government Code Section 54957
Title: City Manager
ACTION: Discussed; no reportable action.
RECONVENE IN OPEN SESSION
At 9:29 p.m., the City Council/Housing Authority reconvened in Open Session.
ADJOURNMENT
There being no further business to conduct, the meeting was adjourned at 9:30 p.m. ________________________________
Laura M. Nieto, MMC
Chief Deputy City Clerk