HomeMy WebLinkAboutStaff Report 4.A 01/05/2015Agenda Item #.
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DATE: January 5, 2015
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Scott Duiven, Senior Planney��
SUBJECT: Adoption of an Ordinance (Second Reading) Authorizing the Implementation of a
Community Choice Aggregation Program
RECOMMENDATION
It is recommended that the City Council adopt the attached ordinance authorizing the
implementation of a Community Choice Aggregation program.
BACKGROUND
On December 15, 2014, the City Council unanimously approved both a resolution requesting that
the Sonoma Clean Power Authority (SCPA) act as Community Choice Aggregator on behalf of
the City and the first reading of an ordinance authorizing the implementation of a Community
Choice Aggregation program. There were no changes to the ordinance. With the second reading
of the ordinance, and the appointment of the City's representative and alternate to the SCPA
Board, the City's representative can be seated at the next SCPA Board meeting on January 8,
2015. Roll-out of Sonoma Clean Power to Petaluma's residents and businesses will take place in
July 2015.
FINANCIAL IMPACTS
Based on the updated PG&E rate schedule, and assuming the City opts to participate in the
C1eanStart program, the City could anticipate an annual savings of over 6% on its electrical costs
or approximately $190,000 in amoral savings. Should the City opt out of Sonoma Clean Power
after the initial enrollment period the City could be subject to opt out fees for all accounts. This
cost is estimated to be as much as $8,750 but would be more than offset by the projected savings.
There are also potential costs associated with supporting the City's representative to the Sonoma
Clean Power Authority, but there is no estimate of such costs available at this time.
ATTACHMENTS
I. Ordinance Authorizing I in p lementation of a Community Choice Aggregation Program
ATTACHMENT 1
EFFECTIVE DATE ORDINANCE NO. 2525 N.C.S.
OF ORDINANCE
Introduced by
Seconded by
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AUTHORIZING THE
IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION PROGRAM
WHEREAS, The City of Petaluma has investigated options to provide electric services to
customers within the City, with the intent of achieving greater local control and involvement
over the provision of electric services, competitive electric rates, the development of clean,
local renewable energy projects, reduced greenhouse gas emissions, and the wider
implementation of energy conservation and efficiency projects and programs.
WHEREAS, The Sonoma County Water Agency prepared a Feasibility Study and a draft
Implementation Plan for a community choice aggregation ("CCA") program in Sonoma County
under the provisions of Public Utilities Code §366.2. The Feasibility Study and Implementation
Plan show that implementing a community choice aggregation program would provide multiple
benefits, including:
• Providing customers a choice of power providers;
• Increasing local control and involvement in and collaboration on energy
rates and other energy-related matters;
• Providing more stable long-term electric rates that are competitive with those
provided by the incumbent utility;
• Reducing greenhouse gas emissions arising from electricity use within Sonoma
County;
• Increasing local renewable generation capacity;
• Increasing energy conservation and efficiency projects and programs;
• Increasing regional energy self-sufficiency; and
• Improving the local economy resulting from the implementation of local
renewable energy and energy conservation and efficiency projects.
WHEREAS, On December 4, 2012, the County of Sonoma and the Sonoma County Water
Agency approved a Joint Powers Agreement creating the Sonoma Clean Power Authority ("the
Authority"). Under the Joint Powers Agreement, cities and towns within Sonoma County may
participate in the Sonoma Clean Power CCA program by adopting the resolution and
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ordinance required by Public Utilities Code §366.2. Cities and towns choosing to participate in
the CCA program will have membership on the Board of Directors of the Sonoma Clean Power
Authority as provided in the joint powers agreement. The Town of Windsor and the cities of
Cotati, Sonoma, Sebastopol, Cloverdale, Rohnert Park, and Santa Rosa have also adopted the
ordinance and resolution required by Public Utilities Code §366.2, and are now participants in
the Sonoma Clean Power CCA program.
WHEREAS, The Authority has entered into agreements with electric power suppliers and
other service providers, and based upon those agreements the Authority is able to provide
power to residents and businesses at rates that are competitive with those of the incumbent
utility (PG&E). The California Public Utilities Commission approved the Implementation Plan for
the CCA program, and on May 1, 2014, the Authority began providing service to customers
within the unincorporated area of Sonoma County and within the jurisdiction of those cities who
have chosen to participate in the CCA program.
WHEREAS, Under Public Utilities Code §366.2, customers have the right to opt -out of a
CCA program and continue to receive service from the incumbent utility. Customers who wish to
continue to receive service from the incumbent utility will be able to do so.
WHEREAS, on December 15, 2014, the City Council held a duly noticed public hearing to
consider joining the Sonoma Clean Power CCA program.
NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
FOLLOWS:
SECTION 1. Findings.
The City Council of the City of Petaluma hereby finds:
1. The above recitals are true and correct and are adopted as findings of the City
Council.
2. The City Council finds and determines that it can be seen with certainty that there is
no possibility that the implementation of the Sonoma Clean Power CCA program
within the jurisdiction of the City of Petaluma will cause any significant adverse
effects on the environment, and thus that such implementation is exempt from the
Californian Environmental Quality Act. The City Manager is authorized and directed
to file a Notice of Exemption pursuant to the CEQA guidelines.
3. Based upon the forgoing, and in order to provide businesses and residents within the
City of Petaluma with a choice of power providers and with the benefits described
above, the Council hereby affirmatively elects to implement a community choice
aggregation program within the jurisdiction of the City of Petaluma by participating
as a group with the County of Sonoma, the Sonoma County Water Agency, and
other cities in Sonoma County in the Community Choice Aggregation program of the
Sonoma Clean Power Authority, as generally described in the Implementation Plan.
SECTION II. Severability. If any section, subsection, sentence, clause, or phrase of this
ordinance is for any reason held to be unconstitutional or invalid, such decision shall not affect
the validity of the remaining portion of this ordinance. The City Council hereby declares that it
would have passed this ordinance and every section, subsection, sentence, clause or phrase
thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses,
or phrases be declared unconstitutional or invalid.
SECTION III. Effective Date. This ordinance shall be and the some is hereby declared to
be in full force and effect from and after thirty (30) days after the date of its adoption by the
Petaluma City Council.
SECTION IV. Posting/Publishing of Notice. The City Clerk is hereby directed to publish or
post this ordinance or a synopsis for the period and in the manner provided by the City Charter
and other applicable law.
INTRODUCED and ordered posted/published this 151h day of December, 2014.
ADOPTED this day of
Absent:
ATTEST:
Claire Cooper, CMC, City Clerk
2015 by the following vote:
Ayes:
Noes:
Abstain:
David Glass, Mayor
APPROVED AS TO FORM:
Eric W. Danly, City Attorney
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