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HomeMy WebLinkAboutAgenda Packet 2004/06/23 GMOC CITY OF CHULA VISTA ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AGENDA June 23, 2004 JOHN LIPPITT PUBLIC WORKS CENTER 6:00 P.M. 1800 MAXWELL ROAD CALL TO ORDER ROLL CALL: Councilmembers Davis, McCann, Rindone, Salas, and Mayor Padilla 1. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING A COMMUNITY CHOICE AGGREGATION PROGRAM IN ACCORDANCE WITH CALIFORNIA PUBLIC UTILITIES CODE SECTIONS 218.3, 331.1, 366, 366.2, 381.1, 394, AND 394.25, ALLOWING THE CITY OF CHULA VISTA, ACTING AS THE MUNICIPAL ENERGY UTILITY, TO AGGREGATE THE ELECTRICAL LOAD OF ELECTRICITY CONSUMERS WITHIN THE CITY (SECOND READING) At the June 8, 2004 Council meeting, the Council approved staffs recommendation to begin to implement a phased approach to the Municipal Energy Utility (MEV) business models recommended by the MEU Feasibility Study, which included Community Choice Aggregation. On June 8, 2004, Council also directed staff to return with an ordinance for its review and consideration declaring the Chula Vista MEU a Community Choice Aggregator (CCA). This ordinance was introduced at the Regular Meeting of June 15, 2004. (Assistant City Manager Morris) Staff recommendation: Council adopt the ordinance. 2. CONSIDERATION OF A REPORT REGARDING THE PROPOSED GROWTH MANAGEMENT WORK PROGRAM (Continued from June 15,2004) On May 27, 2004, the City's growth management consultant, Walter Kieser, from Economic and Planning Systems, Inc., presented to Council a White Paper with options regarding the City's growth management program. Based on Council's response, a proposed work program has been prepared. (Director of Planning and Building) Staff recommendation: Council accept the report and provide guidance on the proposed work program. ORAL COMMUNICATIONS ADJOURNMENT to the Regular Meeting of July 13, 2004, at 6:00 p.m. in the Council Chambers. I declare under penalty of perjury that I am employed by the City of Chula Vista in the. Office of the City Clerk and that I posted thiS document on the bulletin board according to Brown Act requirements. Dated (o!n!Ol{ Slgned~IAI.R.)Últ~ OROINANCE OF THE CITY OF CHULA VISTA EST~ COMMUNITY CHOICE AGGREGATION ~ M IN ACCORDANCE WITH CALIFORNIA PUBLI ITIES CODE SECTIONS 218.3, 331.1, 366, ~~ 1.1, 394, AND 394.25,ALLOWING CHULA VIST AGGREGATE THE ELECTRICAL LOAD OF ELECT~él~ CONSUMERS WITHIN THE CITY OF CHULA VISTA WHEREAS, at Council's direction, staff began implementing the City's Energy Strategy and Action Plan, adopted in May, 2001; and WHEREAS, a significant component of the strategy required an analysis of the costs, benefits and risks associated with fo=ing and operating a municipal energy utility, (MEU); and WHEREAS, on September 24, 2002, the Governor signed into law Chapter 838 which authorizes any California city, county, or city and county, whose governing board so elects, to combine the electricity loads of its residents and businesses in a community- wide electricity buyers' program known as Community Choice Aggregation; and WHEREAS, at the May 19, 2004 MEU Workshop and Council Meeting, the City Council listened to approximately five and one half hours of expert testimony and public input regarding the potential development of a Chula Vista public utility; and WHEREAS, at the June 8, 2004 workshop, the City Council directed staff to return to the June 15,2004 City Council meeting with an ordinance declaring the Chula Vista MEU (established on June 5, 2001, by Ordinance No. 2835) a Community Choice Aggregator, and to further consider the MEU Feasibility Study Consultants' recommendations to implement selected MEU business models; and WHEREAS, as a Community Choice Aggregator, the City could have a significant additional means of increasing the scale and cost-effectiveness of conservation, energy efficiency and renewable energy in Chula Vista. WHEREAS, the existing energy policy and previously articulated Council support for quality jobs and the increased use ofrenewable energy, energy conservation and efficiency, the recommended and proposed CCA MEU business model provides the Council with an opportunity to develop and incorporate economically viable and local renewable resources in the City's energy portfolio. WHEREAS, Community Choice Aggregation provides a means of exercising local control over electricity rates and future increases, resources, quality of service, and designing local energy systems to protect against future blackouts. .1 ,...], WHEREAS, it is important that the City of Chula Vista act expeditiously to implement a Community Choice Aggregation regime in order to properly engage the CPUC in rulemaking related to Community Choice Aggregation; and WHEREAS, under California Law (Public Utilities Code §366.2 and other sections of Chapter 838 of2002, formerly ABI17), for Chula Vista to implement Community Choice Aggregation so that it may find a new electric service provider for the residents and businesses within its jurisdiction, the City Council must proceed via a series of ordinances. The Public Utilities Code further provides the following: A. The California Public Utilities Commission (CPUC) must establish rules by which any entity can seek to provide electricity aggregation service, now being undertaken in Rulemakings 03-10-003 and 01-08-028; B. All electrical corporations must cooperate with entities investigating, pursuing or implementing Community Choice Aggregation, and provide them with billing and electrical load data, subject to rules established by CPUC; C. A Community Choice Aggregator may apply to become the administrator for cost-effective energy efficiency and conservation programs for its retail electric customers; D. A Community Choice Aggregator must develop an implementation Plan detailing the process and consequences of aggregation, which must be adopted by the Board of Supervisors at a duly noticed public hearing by ordinance; E. Potential Community Choice Aggregation customers must be fully informed of the program and be given ample opportunity to opt out pursuant to Section 366.2(c)(lI) of the Public Utilities Code. The City Council of the City of Chula Vista ordains as follows: Section I. COMMUNITY CHOICE AGGREGATION IMPLEMENTATION PLAN The City shall develop a Draft Implementation for a Community Choice Aggregation (CCA) program for Chula Vista for consideration by the City Council consistent with Section 366.2(c)(lI) of the Public Utilities Code, and other sections of Chapter 838 of 2002 - formerly AB 117. Section II: This ordinance shall take effect and be in full force on the thirtieth day from and after its second reading and adoption. Presented by Approved as to form by Ann Moore City Attorney J..& ¡ (lorre ued C!r'f f0. a~ /h..'Ù1/J Environmental Health Coalition + South Bay GTeens + San Diego Baykeeper + Paul Fenn of Local Power + Sierra Club, San Diego Chapter + Jim Bell of Ecological Life Systems Institute + Imperial Beach Councilmember Patricia McCoy + American Wind Energy Association + Kurt 1. Kammerer of Energy Solutions Partners June 23, 2004 g~ :-::t, 5 r::.. ~ Mayor Stephen C. Padilla and Chula Vista Council Members ~ ..., 276 Fourth Avenue ~ t.~ Chula Vista, California 91910 ";:" ¡;;: Co) I '£ Comments on Ordinance ofthe City Council of Chula Vista Establishing r À. ~" Community Choice Aggregation Program ~ Re: Dear Honorable Mayor Padilla and Council Members: The undersigned ofthis letter are writing to express our support for the City of Chula Vista's efforts to create a Municipal Energy Utility ("MEU") via a joint Community Choice Aggregation ("CCA") and Greenfield approach, We recognize that by supporting this ordinance, the City will not only realize great long-term savings in the cost of electricity, but the City will also have the historic opportunity to purchase and develop a substantial amount of its own energy that is clean and renewable (such as solar and wind), while creating quality jobs for the City's residents. We believe that the City has an urgent public health and environmental need to facilitate the rapid and large-scale development of clean renewable energy and conservation resources within the City as part of a plan to retire old, inefficient, and polluting electric generation plants currently located within the City, as well as a social, ecological, and economic need for stable electricity prices, reliability, reasonable electricity rates, and sustainability. To address these urgent needs, we believe that CCA offers significant additional means of increasing the scale and cost-effectiveness of clean renewable energy (i.e. solar and wind energy), energy efficiency, and conservation, while at the same time providing reasonably priced and reliable electricity to City customers. In addition, we believe that CCA allows the City to plan for a future that is not wholly reliant on fossil-fueled energy. Therefore, we commend the City ofChula Vista for creating such opportunities for its residents and taking the much-needed leadership in the region on energy issues. (1_, /Ý!W¿jtrT ~ 6tW·70J (!/'hJ /YJa.n.04A (h I~W lYLt~t-~ ~/h/ fti1vTÝ1 e '/ 1 Other Key Reasons for Our Support First and foremost, we support CCA because it has been proven to do exactly what it advertises - it gives the community a choice and voice in local energy decisions. Without Community Choice, customers must rely on investor-owned utility ("IOU") companies that serve the interests oftheir shareholders and who have no direct local accountability. As we've seen in San Francisco and cities throughout the country, CCA allows the power to return to the people. The second reason we support a CCA is that it creates the opportunity to aggressively develop truly "green, " not "green-washed," renewable power - that is non- polluting, non-fossil-fueled power such as solar and wind. By concentrating buying power in a publicly accountable local government, consumers can require that a supplier of electricity provide "green" power in their energy portfolio. Finally, we support CCA because it allows the local government to use monies earned from electric sales to fund local programs that reduce overall demand (i.e. energy efficiency and conservation technologies) and to invest in clean renewable energy. As a ŒA, the City could collect and manage allocations and expenditures of Public Benefit Funds and allocate them to program categories, such as renewable energy resources and development, and energy efficiency and energy conservation technologies. In other words, the City could prioritize or earmark funding to applicable programs based on local needs and desires. Under the IOU model, the utility is required to spend these funds in the area prescribed by California legislation, but there is no local flexibility to determine which categories the funds go to. For example of the scale of this, SDG&E currently collects $37 million annually from customers in the San Diego region for Public Benefit Programs, of that amount, approximately $3 million comes from Chula Vista. Under CCA, the City would have control of its $3 million share and could choose to put it towards local projects and programs that support renewable energy, energy efficiency, and conservation. Implementation Plan One ofthe most important next steps that the City will take is the development of an Implementation Plan. The Plan will be critical to ensuring that the local region secures the full benefit ofthe CCA, We understand that community support will be crucial to the success of this endeavor. As a result, we request that the City create a community stakeholder or work group committee to provide public input and support to the drafting of the City's Implementation Plan for CCA. The key word in Community Choice Aggregation is the word "community," and we believe that the community must play an important role in advising the City as it plans its new energy future. 2 Conclusion We appreciate the City's recognition of CCA as an opportunity to forge a new and sustainable energy future. We understand that this ordinance is the first step on the long road to energy independence for the City. Thank you for your time and consideration of our comments and request. We look forward to working with the City as it move towards energy independence and a sustainable future. Sincerely, Albert Huang, Esq. Policy Advocate Environmental Health Coalition Lupita Jimenez Chair South Bay Greens Gabe Solmer, Esq. Staff Attorney San Diego Baykeeper Dan Perkins Chair, Energy Committee Sierra Club San Diego Chapter Jim Bell Director Ecological Life Systems Institute Paul Fenn Author of AB 117 Executive Director Local Power Kurt J. Kammerer KJ Kammerer and Associates Patricia McCoy Councilmember City ofImperial Beach Mike McCoy, DVM Alan Ridley Chula Vista Resident Member, American Wind Energy Association cc: Mr, Tom Orreola, Chief of Staff for the Mayor Mr, Sid Morris, Assistant City Manager Mr. David D. Rowlands Jr., City Manager Mr. Michael T. Meacham, Director of Environmental and Conservation Services 3 CITY COUNCIL AGENDA STATEMENT Item: ;r Meeting Date~/~ ~/;B/ó'l ITEM TITLE: Report: Proposed Growth Management Work Program SUBMITTED BY: Director of Planning and Buildin~ REVIEWED BY: ,~¡;" rl (4/5ths Vote: Yes _No.xJ City Manager J.-I iJ On May 27,2004 the City's growth management consultant, Walter Kieser from Economic and Planning Systems, Inc., presented to Council a White Paper with options regarding the City's growth management program. Based on Council's response, a proposed work program has been prepared. RECOMMENDATION: That Council provides guidance on the proposed work program. BOARDS/COMMISSIONS RECOMMENDATION: In it's 2002 Annual Report, presented on June 12, 2003, the Growth Management Oversight Commission supported the Council's call for the "top to bottom" review of the growth management program. DISCUSSION: A proposed narrative work program (Attachment 1) has been prepared by the consultant in collaboration with City staff. The Work Program provides info=ation on the proposed content to follow-up on Council's direction to: . Investigate revising threshold standards recognizing emerging policy objectives within Western Chula Vista versus the suburban new development focus of the existing threshold standards. These revised thresholds will reflect the emerging urban character ofthe Urban Core and possibly other redeveloping portions of western Chula Vista. . Develop amended threshold standards based upon an assessment of the current threshold's utility, to reflect new service delivery methods and measurement techniques. . Prepare proposed techniques that allow control of development activity beyond current methods that will provide the Council with flexibility of response. While an annual city- wide growth "cap" that sets a specific upward limit upon the number of residential units that ~I Page 2, Item No. ~ Meeting Date: 06/15/04 are issued building pe=its for the purposes of controlling the rate of growth is not contemplated by this work program, the ability to establish short te= controls to address or avoid a threshold violation is suggested to be analyzed as a tool. This could result in establishing a program such as the current "Pennit Monitoring Program" as an example. . Investigate improved regional and intergovernmental cooperation efforts for threshold compliance not within the City's jurisdiction. With the initial Council direction received on May 27,2004, and further comments this evening, each of the 4 components will proceed on interrelated parallel tracks in revising the growth management element of the general plan. The Growth Management Oversight Commission and the General Plan Update Steering Committee will be solicited for their comments and recommendations on various aspects of the growth management program. For example, the General Plan Steering Committee as well as the GMOC will review proposed revisions to the General Plan Growth Management Element. The GMOC will also be involved in potential changes to the current GMOC process. In addition, staff from affected City departments and external agencies will be involved as essential participants in the review process. Ultimately, revisions to the growth management program will be comprised of a new Growth Management Element of the General Plan and a new Growth Management Ordinance for Council action. The new Growth Management Element will be drafted by mid July 2004. The updated growth management ordinance will be in the drafting process concurrent to the element but will not be in final draft from until late summer. The Growth Management Program will be the subject of a separate process that follows both the Growth Management Element and ordinance, and is expected to be drafted during the fall of2004. FISCAL IMPACT: None at this time. This work is part of the contract for services entered into with Economic and Planning Systems, Inc. Attachments Attachment 1: Growth Management Program Work Program :1:~ Econo Planning Systems &,' E..", &'Mmi" &gi""" E,oo,mi" ,,"bl~Fi=n" Land u~ Poli" MEMORANDUM To: Dan Forster, Growth Management Coordinator From: Walter Kieser Subject: Refinement Contract Scope of Work, Chula Vista Growth Management Program; EPS #14022 Date: June 9, 2004 This Memorandum outlines a proposed direction for subsequent consultant work effort in Task 2 of our Scope of Work. Task 2 contemplated technical assistance with the redrafting the Growth Management Ordinance. The research conducted as a part of preparing the White Paper, the City staff interaction, and the guidance from the City Council received at the May 27th meeting, all provide a basis for the technical effort required prior to amending the Growth Management Ordinance. I have considered each of these in formulating a proposed focus for the Task 2 effort, as outlined below. Following City review we can finalize this direction and proceed with the work effort. THRESHOLD STANDARDS FOR URBAN DENSITY AREAS The key changes to the Growth Management Ordinance related to the Urban Density Area (e.g. the Urban Core Area) relate to the traffic threshold, although each of the threshold standards should be considered for there applicability to urban density areas. Regarding the transportation threshold, there appears to be general agreement that a revised urban standard is needed to complement the desired level of urban intensification and development in these areas. The work required here is collaboration with City Department of Engineering staff and their transportation consultants to develop the technical and policy components of the new threshold. . The technical efforts include modification of the traffic modeling efforts to reflect differential trip generation from urban mixed use areas, including demographic differences in households, the greater propensity of "internal trips", and the greater use of alternative modes of transportation including transit. It is presumed that these modifications will be applied to the results of the ongoing traffic modeling efforts. There will also be the need to develop corridor improvement programs for key urban corridors such as H Street. BERKELEY y SACRAMENTO DENVER 2501 Ninth St.. Suito 200 Phon" 510-841-9190 Phon" 916-649-8010 Phon" 303-623-3557 8,,'oloy. CA 94710-2515 Fo" 510-841-9208 Fa<' 916-649-2070 Fa<' 303-623-9049 WWW.op'y'.oom 3-3 --~._---~~~_.~----------- Memorandum June 8, 2004 Dan Forster Page 2 . The policy effort, ultimately reflected in the Growth Management Ordinance, will involve creation of a new street classification "urban arterial", adding to the three already existing in the Ordinance. The other policy will be selecting the "LOS" to apply to the designated urban arterials, for example, the LOS could be set at "E", or specific road segments exempted altogether from the standards. Another example of a revised or reapplied standard is for community and neighborhood parks. While the three acres per thousand population standard currently applied in Eastern Chula Vista is impossible to achieve in Western Chula Vista due to the lack of available park sites, a facility-based standard linked to a Western Chula Vista Parks Master Plan could be included so that opportunities to improve and expand parks in Western Chula Vista are pursued. The Consultant will assist staff with the technical and policy aspects of the new transportation and other thresholds for urban density areas. UPDATED CITYWIDE THRESHOLD STANDARDS The White Paper identified potential modifications to several threshold standards that will be further explored, including: . Converting library and parks and fire standards to facility concurrency based thresholds rather that a level of service as is currently applied. This change is recommended since the facilities required to achieve the desired thresholds in each of these cases have been identified in respective facility master plans; the change will simplify administration of the thresholds. . Refining threshold standards for traffic, police, and fiscal analysis. These thresholds would benefit from technical improvements that better reflect =rent conditions and measurement methods. . Altering threshold standards not directly enforceable by the City. These thresholds need a clearer statement of the City's limited ability to enforce any violation. Stronger intergovernmental and regional efforts are encouraged. The Consultant will assist staff with crafting the new threshold standards, including meetings with department staff members, additional research, and drafting language. The area requiring the greatest effort may involve the Police Department; Department staff members are presently working on this matter and are expected to provide their recommendations in the near future. tL-4 GMm""06-D9-04.d,, Memorandum June 8, 2004 Dan Forster Page 3 ENHANCED GROWTH CONTROLS The White Paper described a set of options for imposing annual city-wide growth caps on development in Chula Vista given concerns that the rate of growth, in certain circumstances, make achieving individual thresholds difficult and affect overall quality of life in the City. The City Council directed that no further research be conducted on the matter. Given the thoughtful discussion on the matter it is proposed that policy language be included in the General Plan Growth Management Element that specifies and allows the City Council, subject to specific findings such as a forecasted threshold failure, to impose a short term (Le. a period of one to three years) growth limitation or metering similar to what was done when creating the 3 years "Permit Monitoring" program. Under tlùs proposal similar language would be included in the Growth Management Ordinance. Another possible approach for controlling growth, during periods of very rapid development, would be to institute sequential map and permit processing. Sequential processing helps to insures a standard level of quality. The Consultant will assist staff in drafting the policy and ordinance language, including delineating the necessary findings for taking such an actions. INTERGOVERNMENTAL AND REGIONAL COOPERATION The White Paper described several areas where intergovernmental and regional cooperation could be improved to enhance the quality of life in Chula Vista. While these efforts lie beyond the purview of the Growth Management Ordinance, they were endorsed by the City Council, especially the proposed effort to improve cooperation with the school districts. While State statute restricts the ability of the City to condition new development related to school capacity, cooperative efforts, such as those outlined in the Chu/a Vista City/Schools Community Task Force Report (March 2003), have the potential for improving schools and their performance in the City. The Consultant will assist staff in exploring the potential "next steps" to implementing Task Force recommendations and other proposal that may have more recently been developed. :1-6 GMm=O6-<J9-04.do< ------ ------------ -