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HomeMy WebLinkAboutOrd 2001-2835 ORDINANCE NO. 2835 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE CITY OF CHULA VISTA AS A MUNICIPAL UTILITY WHEREAS, the City of Chula Vista (the "City"), a municipal corporation and charter city, is authorized pursuant to Article XI, Section 9(a) of the Califomia Constitution and Section 200 of the City Charter to establish, purchase and operate public works to furnish its inhabitants with utility services including light, power, heat, transportation, or means of communications; and WHEREAS, the deregulation of the electricity market, increased demand for energy, inadequate supply of natural gas and other fuel sources, a deteriorating transmission and distribution system, inadequate or poorly implemented federal and state energy regulations, and a volatile energy commodities market has led to a state-wide energy crisis characterized by soaring energy costs and unreliable energy supplies; and WHEREAS, this energy crisis threatens the public health, safety and general welfare of businesses and residents throughout the state, including businesses and residents in and around the City of Chula Vista; and WHEREAS, the City has studied, reviewed and analyzed the current status of the energy crisis and has consulted with various experts to identify the prospective benefits of establishing a municipally owned utility; and WHEREAS, as a result of deregulation of the electric utility industry in Califomia, the City has identified numerous potential benefits that would derive from providing a municipally owned utility, included but not limited to (a) a municipal utility has preferential access to low- priced federal power and potentially other alternative power supply sources; (b) a municipal utility does not pay federal income taxes, and it has access to tax-exempt debt to finance capital projects; (c) a municipal utility may be able to provide distribution and other energy related services to City facilities, businesses and/or residents more reliably and at a lower cost than the incumbent utilities under the existing energy delivery system; (d) by operating the distribution system itself the City would have the ability to structure fair and reasonable utility rates in a manner that rewards conservation, provides for the use of alternative/renewable power sources, encourages the use of off-peak power, and provides the City with control over how and where "public benefit" conservation funds are invested; and WHEREAS, the City is also concemed with the rising costs, threats to reliability, and potential environmental impacts related to the various other utility services necessary to the City, its businesses and residents; and WHEREAS, City Council has found and detemdned that the creation of a municipal utility could enhance utility system reliability, lower utility rates and otherwise provide utility services that significantly enhance the quality of life and provide significant benefits to the citizens, businesses and environment of the City; and WHEREAS, the City's establishment of itself as a municipal utility is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15320. Ordinance 2835 ~, Page 2 NOW, THEREFORE, the City Council of the City of Chula Vista does hereby ordain as follows: SECTION I: The above findings and determinations are hereby adopted as true and correct. SECTION II: The City of Chula Vista hereby establishes itself as a municipal utility ("Municipal Utility"). The Municipal Utility is authorized to provide electricity, natural gas, alternative forms of energy, water, telecommunications, transportation and related utility services ("Utility Services") to governmental facilities, businesses, organizations, and residents located within and around the City of Chula Vista. Additional City Council approval shall be required before the Municipal Utility actually provides one or more utility services. SECTION III: The City Council shall be the governing board for the Municipal Utility acting in accordance with its existing rules and procedures. The City Manager or his designee is hereby authorized to take all necessary steps to implement the authority of the Municipal Authority as directed and approved from time to time by the City Council. The City Manager or his designee is further authorized and directed to take all necessary actions to provide for the implementation, operation and maintenance of City Council approved Municipal Utility activities including, but not limited to, determining the level of additional staffing required, if any, identifying outsourcing needs, negotiating agreements with consultants, special counsel, underwriter(s) and/or financial advisors in connection with regulatory, legal or financial matters. SECTION IV: This ordinance in no way pre-commits the City to providing one or more of the defined Utility Services or to acquiring, voluntarily or otherwise, some or all of the incumbent utility facilities. City staff is hereby authorized and directed to explore partnership opportunities with the incumbent utility providers and with other public agencies in the region which may themselves be pursuing public utility options. SECTION V: 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 foxm by Chris Salomone John M. Kaheny Community Development Director City Attorney Ordinance 2835 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 5th day of June, 2001, by the following vote: AYES: Councilmembers: Padilla, Rindone, Salas and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: Davis Shirley HZ~o~M?tyor ATTEST: Susan Bigelow, City CI~ STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, Califomia, do hereby certify that the foregoing th Ordinance No. 2835 had its first reading at a regular meeting held on the 29 day of May, 2001 and its second reading and adoption at a regular meeting of said City Council held on the 5th day of June, 2001. Executed this 5th day of June, 2001. Susin Bigelow, City Clerl~