HomeMy WebLinkAboutReso 2004-189
RESOLUTION NO. 2004-189
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA:
1) DIRECTING STAFF TO IMPLEMENT THE MUNICIPAL ENERGY
UTILITY (MEU) FEASIBILITY STUDY PREFERRED BUSINESS
MODELS BY A)PREPARING AND SUBMITTING A COMMUNITY
CHOICE AGGREGATION (CCA) IMPLEMENTATION PLAN TO
THE CALIFORNIA PUBLIC UTILITIES COMMISSION (CPUC),
B)PREPARING AND CIRCULATING A REQUEST FOR PROPOSALS
FOR GREENFIELD DEVELOPMENT (GD) AND CCA SERVICE
PROVIDERS, C)ACTIVELY PARTICIPATE AT CPUC IN MATTERS
THAT MAY IMPACT THE CITY MEU PLANS, OTHER CITY
ACTIVITIES AND RATEPAYER ADVOCACY ISSUES; AND D)
PREPARE AN ORDINANCE DECLARING THE CITY MEU A CCA;
2) DIRECTING STAFF TO CONTINUE TO PURSUE A FRANCHISE
AGREEMENT WITH SDG&E FOR EXISTING ELECTRICITY
UTILITY SERVICE WITHIN THE CITY AND ALL EXISTING AND
NEW NATURAL GAS SERVICE;
3) DIRECTING STAFF TO RETURN TO COUNCIL WITH A
STAFFING PLAN THAT REFLECTS CITY COUNCIL'S DIRECTION
TO IMPLEMENT ONE OR MORE MUNICIPAL ENERGY BUSINESS
MODELS; AND
4) APPROPRIATING $500,000 FROM THE AVAILABLE FUND
BALANCE OF THE GENERAL FUND TO THE ADMINISTRATION
DEPARTMENT BUDGET
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 forming and operating a Municipal Energy Utility, (MEU); and
WHEREAS, the City has been negotiating with SDG&E the terms of a mutually
beneficial franchise agreement since June 2002; and
WHEREAS, the Franchise Agreement between the City and SDG&E expired in June
2003; and
WHEREAS, on May 10, 2004, staff released copies of the MEU, peer review and staff
reports to City Council and the public; 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 Chura Vista public utility; and
Resolution 2004-189
Page 2
WHEREAS, at the May 19, 2004 workshop, the City Council directed staff to return to
the June 8, 2004 City Council meeting with a resolution declaring the Chu1a 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, Duncan/Navigant reports that all the recommended MEU business models
(except Municipal Distribution Utility (MDU)) would be financially viable immediately, if
supported by power purchase agreements; and
WHEREAS, to test and validate Duncan/Navigant's conclusions and recommendations,
staff retained the peer review services of three independent energy consultants: RW. Beck
(recommended by SDG&E), Crossborder Energy, and Tabors, Caramanis and Associates; and
WHEREAS, the peer review reports made several significant contributions to the
process, not the least of which were, verifying that the Duncan/Navigant Team had taken a very
conservative approach to estimating the projected savings from each business model, and that
each business model continued to produce significant financial benefits for the community, even
after the Duncan/Navigant team applied a sensitivity analysis to the key assumptions and the
most volatile factors underlying the MEU team's recommendations; and
WHEREAS, the Duncan/Navigant report and confirming peer review reports indicate the
City enhances the near term economic benefits by forming a CCA program while simultaneously
pursuing and implementing Greenfield Development's programs; and
WHEREAS, consistent with the existing energy policy and previously articulated
Council support for quality jobs and the increased use of renewable energy, energy conservation
and efficiency, the recommended and proposed CCAIGreenfield MEU business model provides
the Council with the greatest opportunity to develop and incorporate economically viable and
local renewable resources in the City's energy portfolio.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby:
A)
Direct Staff to implement the MEU Feasibility Study preferred business models
by:
i.
ii.
preparing and submitting a CCA Implementation Plan to the CPUC,
preparing and circulating requests for proposals for GD and CCA service
providers,
actively participating at CPUC in matters that may impact the City MEU
plans and other City activities,
preparing an ordinance declaring the City MEU a CCA;
iii.
iv.
B)
Direct Staff to continue to pursue a franchise agreement with SDG&E for existing
electricity utility service within the City and all existing and new natural gas
service;
Direct staff to return to Council with a staffing plan that reflects City Council's
direction to implement one or more municipal energy business models; and
Appropriate $500,000 from the available fund balance of the general fund to the
Administration Department budget.
C)
D)
Resolution 2004-189
Page 3
Presented by
Approved as to form by
LA ~~
Ann Moore
City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
Califomia, this 8th day of June, 2004, by the following vote:
AYES: Councilmembers:
NAYS: Councilmembers:
ABSENT: Councilmembers:
Davis, McCann, Rindone, Salas and Padilla
None
None
ATTEST:
h c.~M~
~ LJ /...... ~ ð r>------,
Susan Bigelow, CMC, Ci lerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Susan Bigelow, City Clerk of Chura Vista, California, do hereby certifY that the foregoing
Resolution No. 2004-189 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 8th day of June, 2004.
Executed this 8th day of June, 2004.
--=--~. UL.-L. ~<Ý, f} n-.-J
Susan Bigelow, CMC, City Cl'erk