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HomeMy WebLinkAbout2001-07-10 - AGENDA REPORTS - AFFIRM CREATE MNI UTILITY (2)CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR DATE: July 10, 2001 City Manager Approval: Item to be presented by: SUBJECT: AFFIRMATION OF CITY S ABILITY TO CREATE A MUNICIPALLY -OWNED UTILITY DEPARTMENT: Field Services RECOMMENDED ACTION City Council adopt a resolution creating a municipally owned utility for the purpose of forming a foundation for potential delivery of future utility services. BACKGROUND This action merely creates a vehicle for consideration of future municipal utility opportunities. The final decision to create and fully implement a public utility would be based upon the findings of an extensive economic and technical feasibility study. The State of California is now facing a severe power crisis, the full extent to which and resolution of remains unknown. The City of Santa Clarita, its residents, commercial, and industrial entities are expected to experience increases in costs and instability, resulting in projected future outages. The full economic, social, and quality of life impacts of the crisis have not yet been quantified on a community -wide basis. A Community Energy Advisory Committee has been established, and an energy advisor has been retained to review a variety of options available. Given that the City Council will be in recess from July 11, 2001, through August 14, 2001, and there are a variety of changes and proposals occurring in the energy arena at both the State and Federal levels, it is an opportune time to secure and affirm the City's ability to establish a municipal utility. Advantages to establishing the basis for a municipal utility are: • Local control. • Expand strategic options for utility services. • Potentially lower the cost of utilities for consumers. • Enhanced economic development opportunity for businesses. • Fund community improvements and lower assessment taxes. • Enhance and integrate utility design standards. • Install enhanced backbone infrastructure for utilities and telecommunication. doh Agenda Item: CREATING A MUNICIPALLY OWNED UTILITY July 10, 2001— Page 2 ALTERNATIVE ACTION Other action as determined by Council. FISCAL IMPACT None with this specific action. ATTACHMENT Resolution to Create a Municipally Owned Utility Q:\ADMIN\CCITEMS\energyreso2.doc RESOLUTION NO. 01- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA AUTHORIZING THE CREATION AND OPERATION OF A MUNICIPALLY OWNED UTILITY FOR THE PURPOSE OF PROVIDING VARIOUS UTILITY SERVICES, AND AUTHORIZING THE TAKING OF CERTAIN OTHER ACTION IN CONNECTION THEREWITH WHEREAS, the City of Santa Clarita, a municipal corporation, is authorized pursuant to Article XI, Section 9(a) of the California Constitution to establish, purchase, and operate public works to furnish its inhabitants with light, water, power, heat, transportation, or means of communication; WHEREAS, the City of Santa Clarita desires to ensure that its citizens are provided with utilities that meet the current and future needs of the community, that utilize advanced technology, that provide utility services at rates and charges that are fair and reasonable, that provide high quality customer service, that provide alternatives to existing providers of utility services, and that protect the health, safety, and welfare of its citizens; WHEREAS, the City of Santa Clarita may desire to own and operate municipally owned natural gas, electric, cable television, telephone, and telecommunications utility system, where appropriate; WHEREAS, the City of Santa Clarita is continuing to study, review, and analyze the current status of deregulation of communications systems, and electric and natural gas utilities in the State of California; WHEREAS, the City of Santa Clarita is consulting with various experts, and has established a Community Energy Advisory Committee to identify the prospective benefits of establishing a municipally owned utility, as well as other feasible approaches to addressing the energy issue; WHEREAS, as a result of deregulation of the communications, and electric and natural gas utility industries in California, the City of Santa Clarita has identified numerous potential benefits that would derive from providing a municipally owned utility, including but not limited to additional revenues for community improvements, the potential ability to offer competitive rates to citizens and businesses for utility services, and high speed communications capability for residential, business, and governmental use that support variable bandwidth and seamless communication, community -wide; WHEREAS, City Council has found and determined that the creation of a municipally owned utility could significantly enhance the quality of life, and provide significant benefits to the citizens and businesses of the City of Santa Clarita. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: RESOLUTION NO. 01 -- July 10, 2001 — Page 2 SECTION 1. The City of Santa Clarita does hereby establish a municipally owned electric, natural gas, telephone, and telecommunications utility in the City of Santa Clarita. SECTION 2. The City Manager or his designee is hereby authorized to take all necessary steps to create and establish a municipally owned utility (the "Municipal Utility") with powers to provide various utility services, including, without limitation, electric, natural gas, cable television, telephone, and telecommunications, to be determined from time to time by the City Council, to the residents and businesses of the City. The City Manager or his designee is further authorized to take all necessary actions to provide for the operation and maintenance of the municipal utility 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 financial advisors in connection with regulatory, legal, or financial matters for approval by the City Council. SECTION 3. The Mayor (or in the Mayor's absence, the Mayor Pro Tem), the City Manager, or their designee are hereby authorized to execute and deliver any and all documents and instruments, and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by this Resolution. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this day of 2001. Ind_: wl ATTEST: CITY CLERK RESOLUTION NO. 01-_ July 10, 2001 — Page 3 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 2001, by the following vote: AYES: COUNCILMEMBERS: NOES COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK /admin/ccitems/energyreso2.doc