HomeMy WebLinkAbout10-044 - Resolutions RESOLUTION NO. 10-044
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, OPPOSING THE "NEW
TWO-THIRDS VOTE REQUIREMENT FOR PUBLIC ELECTRICITY
PROVIDERS" INITIATIVE ON THE JUNE 8, 2010 BALLOT
WHEREAS, on August 31, 2001, the City Council of the City of Rancho Cucamonga
passed a resolution approving the formation of the Rancho Cucamonga Municipal Utility (RCMU),
which now provides electric service to the Victoria Gardens Regional Mall and surrounding
commercial developments;
WHEREAS,the idea to form a municipal utility was born during the California energy
crisis of 2001 as a way for the City to mitigate future energy costs, as well as a means to generate
additional revenue to mitigate the additional infrastructure and operational costs associated with
public services benefiting the Mall,
WHEREAS, the"New Two-Thirds Vote Requirement for Public Electricity Providers"
Initiative (Intiative) has qualified for the June 8, 2010, Statewide Primary Election and is a
Constitutional Amendment;
WHEREAS, the Initiative would require a public power provider to obtain a 2/3 voter
majority from both the municipality's electorate and the electorate within the proposed territory
expansions;
WHEREAS, the Initiative would prevent duly elected representatives or a simple
majority of citizens from determining whether they want public power in any newly annexed territory;
WHEREAS, the Initiative would prevent a simple majority of citizens from determining
whether they want Community Choice Aggregation, a program authorized bythe State Legislature in
2007 that allows a city, county or group of government agencies to procure and provide electricity to
residents and businesses within its jurisdictions;
WHEREAS, a number of safe-guards exist in the Public Owned Utility (POU)
decision-making process at both the State and Federal level which protect the interests of both
taxpayers and ratepayers, such as the Brown Act,the Public Records Act, competitive bidding rules,
and the governing bodies of POUs are local and accessible to the public;
WHEREAS,the proposed Initiative contains a number of ambiguities that could affect
the RCMU's electric utility operations within RCMU's existing jurisdiction, including potentially
requiring a 2/3 voter majority before RCMU can make investments in transmission, generation, or
power procurement to serve its existing customer base in the event that electric load increases, and
potentially requiring RCMU to seek a 2/3 voter majority before providing electric service to newly
developed areas within RCMU's existing jurisdiction;
WHEREAS,the Legislative Analysts Office concluded that the Initiative would create
an unknown impact to State and local government costs and revenues, depending on future voter
decision, due to potential impacts on electricity rates and publicly owned electric utility operations.
NOW,THEREFORE,the City Council of the City of Rancho Cucamonga, California,
does hereby resolve that the City Council opposes the New Two-Thirds Vote Requirement for Public
Electricity Providers Initiative on the June 8, 2010, ballot and authorizes staff to provide impartial
informational materials on the Initiative as may be lawfully provided by the City's representatives,
and that no public funds shall be used to campaign for or against this Initiative.
Please see the following page
for formal adoption,certification and signatures
Resolution No. 10-044 - Page 2 of 3
PASSED, APPROVED, AND ADOPTED this 7t" day of April 2010.
AYES: Gutierrez, Kurth, Michael, Spagnolo, Williams
NOES: None
ABSENT: None
ABSTAINED: None
Donald J. Kurth; .D., Mayor
ATTEST:
ot
�v Jani �C. Reynolds)Ci y Cr k
I, JANICE C. REYNOLDS, CITY CLERK of the City of Rancho Cucamonga,
California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted
by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City
Council held on the 7th day of April 2010.
Executed this 8th day of April 2010, at Rancho Cucamonga, California.
l✓ Jamie C. Reynolds, City Clerk
Resolution No. 10-044 - Page 3 of 3