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HomeMy WebLinkAboutcc min 1971/01/08 MINUTES OF A SPECIAL MEETIN~ OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA Held Friday January 8, 1971 A special meeting of the City Council of the City of Chula Vista was held at 7:30 P.M., in the Council Chamber, Civic Center, 276 Fourth Avenue, with the following Councilmen present: Councilmen Scott, Hobel, Hamilton, Egdahl Absent: ~ouncilman Hyde Also present: Acting Chief Administrative Officer Thomson, City Attorney Lindberg PURPOSE OF MEETING Mayor Hamilton explained that the purpose of this meeting was to discuss the petition submitted by San Diego Gas and Electric Company for a three per cent (3%) surcharge as an increase in rates for customers in the City of San Diego relative to the additional franchise fees. The City of San Diego does not believe this surcharge necessary; they feel the money can be absorbed. SDG&E, on the other hand, contends that if they do not get the surcharge, they will have to raise their rates. The hearing on this matter is scheduled for Monday, January 11, 1971. Chula Vista to write letter Mayor Hamilton suggested that Chula Vista write a letter, for the record, to the Public Utilities Con~ission, and also, that the City Attorney draw up a resolution stating that the City of Chula Vista feels that if a sur- charge is necessary, that it be charged to the people of San Diego only, since they are the ones that have worked out the franchise agreement and the burden should not be passed onto the other citizens that utilize the services of the SDG&E Company. Discussion of City's contract The Council discussed thc date of the renewal of the contract with SDG6~ and the City of Chula Vista (May 1971). City Attorney's opinion City Attorney Lindberg cormmented that the question in the minds of FUC is whether the franchise fee, as charged by San Diego will necessitate any increase in rate~ and if it may now er in the future require a rate in- crease, whether this rate increase should be in the form of a surcharge upon the city receiving the benefit of the franchise fee. If Chula Vista~ for instance~ wants to get the same type of franchise with SDG&E, then he would asst~ne that additional costs would have to be imposed upon Chula Vista rate fares. City Manager comments City Manager John Thomson commented that if SDC~E is going to charge a "surcharge", they can direct the charge directly to San Diego; if, however, they charge by saying "absorb"~ then it can come out of the general revenues that would be obtained throughout the whole operating area which would include Chula Vista. Therefore, indirectly, Chula Vista would then be subsidizing San Diego. -1- Motion for stand at hearing It was moved by Councilman Scott, seconded by Councilman Egdahl, and unanimously car- ried that the position of the City Council is that this special franchise fee be charged directly to the citizens that reside in the territorial limits of San Diego~ since they will be the ones benefitting from this serv- ice. The Council further declares that this franchise rate differential should, in no way whatsoever, be spread out over all util- ity payers of the San Diego Gas and Electric Company service. Clerk directed to write letter Mayor Hamilton directed the City Clerk to write a letter stating the Council's position in this matter, and that the City Attorney prepare a resolution to be forwarded to the PUC in San F~ancisco so that it can be a matter of record when they sit in delibera- tion as to what should be done. This is to be included as part of the motion. ADJOURNMENT Mayor Hamilton declared the meeting adjourned until 3 P.M. on Tuesday, January 12, 1971, in the Administrative Conference Room.