HomeMy WebLinkAbout2001-08-28 - AGENDA REPORTS - MUNICIPALLY OWNED UTILITY (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
DATE: August 28, 2001
City Manager Approval:
Item to be presented PY(:. Tarr; Mans
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
Recently, the State of California has faced 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.
The Community Energy Advisory Committee and the energy advisor are reviewing a variety
of available options. Given that 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.
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 newly formed
Community Energy Advisory Committee and the energy advisor have discussed the advantages
and disadvantages of enacting this resolution. It was determined that the resolution may
secure the City's ability to establish a municipal utility in the future. Given that the California
State Legislature is now discussing potential legislative -based restrictions to utility formation,
establishing the municipal utility prior to any action is advantageous. The Committee did not
identify any disadvantages to taking the action at this time. Therefore, at the Community
Energy Advisory Committee meeting of August 14, 2001, there was a unanimous vote to
recommend that the City Council enact the resolution establishing a municipal utility.
Adopted: & �' o ov Agenda Item: � �
AFFIRMATION OF CITY'S ABILITY TO CREATE A
MUNICIPALLY -OWNED UTILITY
August 28, 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
/admin/ccitems/energyrn nires..doc