HomeMy WebLinkAboutOrd 2001-2835-A ORDINANCE NO. 2835-A
URGENCY 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 California Constitution and Section
200 of the City Charter to establish, purchase and operate public works to fiunish 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 concerned with the rising costs, threats to reliability, and
potential environmental impacts related to the various other utility servic. es necessary to the City,
its businesses and residents; and c
WHEREAS, City Council has found and determined 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-A
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 Mtmicipal Utility is authorized to provide electricity, natural gas,
altemative 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 parmership 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 is necessary as an emergency measure for preserving the public
peace, health, safety and general welfare in light of the gravity of the state's energy crisis and the
need to take immediate action to respond to this crisis. The City Clerk shall certify to the
adoption of this Ordinance, which shall be in full force and effect immediately upon its first
reading and adoption if passed by a four-fifih's vote of the City Council.
Presented by Approved as to fOrill by
Chris Salomone Jo M. eny
Community Development Director ' , Z
Ordinance 2835-A
Page 3
PASSED, hAPPROVED, and ADOPTED by the City Council of the City of Chula Vista,
Califomia, this 29t day of May, 2001, by the following vote:
AYES: Councilmembers: Davis, Padilla, Rindone, Salas, and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Shirley
ATTEST:
Susan Bigelow, City Clerl~
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
Ordinance No. 2835-A was passed as an urgency measure on the 29th day of May, 2001.
Executed this 29th day of May, 2001.
Susan Bigelow, City Clerk