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HomeMy WebLinkAboutResolution - 3691 STATE OF CALIFORNIA ) RESOLUTION NO. 3691 COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO APPROVING ELECTRIC GENERATION RATES FOR SAN JACINTO POWER COMMUNITY AGGREGATION PROGRAM WHEREAS, the City of San Jacinto ("City") is a municipal corporation organized and operating under the laws of the State of California with the City Council of the City of San Jacinto ("City Council") acting as the governing body of the City; WHEREAS, the City Council of the City of San Jacinto has heretofore adopted Ordinance 16-12, declaring its intent to establish a Community Choice Aggregation (CCA) program to be known as San Jacinto Power (SJP); WHEREAS, the City Council has additionally heretofore approved an Implementation Plan to establish a CCA program, and such Implementation Plan was certified by the California Public Utilities Commission on April 6, 2017; WHEREAS, the City Council now desires to establish power generation rate schedules for all customers of SJP, with the initial rates established in an amount sufficient to cover the operating costs of SJP and such reserves as the City Council deems necessary and appropriate; WHEREAS, in accordance with the budget approved as Resolution No. 3691, the City Council finds that the proposed rates are anticipated to result in approximately $1,859,119 in revenue over the first three months in operation and that the estimated reasonable costs of the governmental service over this period will be approximately $1,678,854; WHEREAS, the City Council finds that it is necessary and prudent to utilize revenues from the rates to recover the City's initial investment in SJP to establish reasonable reserves, and to continue to invest in SJP; WHEREAS, the proposed rate schedule allocates fees to each payor in accordance with the existing investor-owned utility's rate schedule, with a 3% net discount from the investor-owned utility's rates for each class of rate payor; WHEREAS, the City Council further finds and declares that the proposed rates for power generation for all customers of SJP are therefore not a tax, that the amounts are no more than necessary to cover the reasonable costs of the program, and that the manner in which those costs are allocated to each payor bear a fair and reasonable relationship to the payor's use of SJP's electrical service; and WHEREAS, the City Council has held a duly noticed public hearing, and has considered all evidence and testimony offered at said hearing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN JACINTO AS FOLLOWS: SECTION 1, That based upon and in consideration of staff reports, presentations, public testimony and comment, and such other matters presented to the City Council during the public hearing on this matter, the City Council finds and declares the foregoing recitals to be true and correct and incorporates the same as substantive findings herein. SECTION 2. That the rates for power generation for all customers of SJP are established pursuant to rate schedule attached hereto and incorporated fully herein, and such rates shall be effective with meter readings beginning as of April 1, 2018. SECTION 3. The rates for power generation established by this Resolution may be amended by Resolution of the City Council, subject to compliance with applicable polices and laws relating to the same. SECTION 4. That the City Clerk shall certify to the adoption of this Resolution, and it shall become effective immediately upon adoption. APPROVED and ADOPTED this 16'" day of January 2018 by the following vote: Ayes: Kotyuk, Ledezma, Ruiz, Miller Nays: None Absent: Utz Abstain: None CITY OF SAN JACINTO: Bl _ Crystal Ruiz, Mayor ATTES An el Iton, City Clerk APPROVED AS TO FORM: BEST BEST & KRIEGER, LLP Mich eI J. Maurer, City Attorney CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) I, Angela Walton, City Clerk of the City of San Jacinto, do hereby certify that the foregoing Resolution No. 3691 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 16'" day of January 2018. Ayes: Kotyuk, Ledezma, Ruiz, Miller Nays: None Absent: Utz Abstain: None WITNESS MY HAND AND OFFICIAL SEAL this 16`h day of January 2018. f p la ty Clerk I I 1 of an Jacinto