HomeMy WebLinkAboutReso 1998-19137 RESOLUTION NO. 19137
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING A RESOLUTION OF INTENTION TO
CONSIDER GRANTING A FIVE-YEAR GAS AND ELECTRIC
FRANCHISE TO SDG&E AND SETTING A PUBLIC HEARING TO
CONSIDER SAME FOR SEPTEMBER 1, 1998
WHEREAS, the City's existing gas and electric franchise {"Franchise") with San Diego
Gas & Electric ("SDG&E") has expired; and
WHEREAS, City staff and SDG&E have negotiated the terms and conditions for the
extension of the Franchise through June 30, 2003; and
WHEREAS, the following represents a summary of the terms and conditions for the
Franchise extension with SDG&E:
1. Franchise Fee: Franchise fees will remain at their present levels of 1.1% of gross
receipts for electricity and 2% of gross receipts for gas.
2. Term: The term shall be from July 1, 1998 through June 30, 2003.
3. Utility Users Tax (UUT): To the extent allowed by law, SDG&I~, shall ~gre~ to collect
UUT from other electricity providers for remittance to the City.
4. System Enhancements: SDG&E shall include Chula Vista in early implementation of
system-wide enhancements (e.g. metering improvements, infrastructure upgrades,
ancillary services) to the extent it is consistent with SDG&E's policy to prioritize and
construct such system enhancements based on need.
5. Franchise Fee Applicability: SDG&E shall not take a position to oppose the applicability
of franchise fees to retail electric or retail gas sales. SDG&E shall, furthermore,
support some baseline protection for franchise fees from all providers. SDG&E shall
implement state mandated surcharge provisions and remit surcharges collected to the
City.
6. Customer Service: SDG&E shall provide educational information to customers
regarding utility restructuring, options for selection of an energy retailer, service
Options, slamming and default provider regulations, and the City's role in the
deregulated industry.
7. Rule20A-Underqroundinq: SDG&E commits to spend, over the next 6 years, atleast
$13.141 million dollars towards the completion of specific pending and proposed
overhead utility undergrounding projects. In addition, new allocations of monies that
may be drawn down for future undergrounding projects shall be made at the rate of 82
million per year.
8. Economic Development: SDG&E shall agree, to the extent recovery of the expense
through rates is allowed by CPUC Regulations, to cooperate in good faith on reasonable
economic development activities which may include, but not be limited to: deferral or
Resolution 19137
Page 2
waiver of hook-up fees, assistance in the financing of upgraded infrastructure, or
offering of power incentives to companies that meet city-defined economic
development or employment criteria.
WHEREAS, in accordance with Section 1201 of the City Charter, the City council shall
adopt a resolution declaring its intention to grant a franchise and shall schedule a public
hearing for the consideration of such grant.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does
hereby set a public hearing for September 1,1998 at 4:00 p.m. in the Council Chambers, 276
Fourth Avenue, Chula Vista, Ca. at which the City Council intends to consider granting a Gas
and Electric Franchise to San Diego Gas & Electric on the terms and conditions set forth
above.
BE IT FURTHER RESOLVED that the City Clerk is hereby authorized and directed to
publish, at least once within fifteen days after the passage of this resolution, and at least ten
days prior to the date of the hearing, appropriate notice of such hearing.
Presented and Approved as to form by
Joh,n,,~,/,?.' Kaheny, City Attor~/~
Resolution 19137
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 11th day of August, 1998, by the following vote:
AYES: Councilmembers: Moot, Padilia, Rindone, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
Shirley H~o~,~JaMa~or
ATTEST:
~utkelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of Chula Vista, California, do hereby certify that the
foregoing Resolution No. 19137 was duly passed, approved, and adopted by the City Council
at a regular meeting of the Chula Vista City Council held on the11th day of August, 1998.
Executed this11th day of August, 1998.
t , City Clerk