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RESOLUTION NO. 7513
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING
OPPOSITION TO ASSEMBLY BILL 318 REGARDING MUNICIPAL WATER AND
POWER UTILITY RATES
WHEREAS, the Palo Alto City Charter has vested in the City
Council the authority to establish rates for all revenue producing
utilities owned, controlled, or operated by the City; and
WHEREAS, the Palo Alto City Charter further provides for the
purposes and prioritized order in which the utilities revenues
shall be used; and -
WHEREAS, the authority granted by the Palo Alto City Charter
includes transfers to the general fund; and
WHEREAS, municipal utility ownership represents a substantial
investment and transfers to the general fund are comparable to the
dividends which would be paid to the investors if the municipal
utility were a private utility; and
WHEREAS, the longstanding practice of enterprise transfers to
the general fund enables the City to maintain the levels of service
demanded by Palo Alto residents and businesses; and
WHEREAS, Assembly Bill 318 would severely restrict the ability
of cities to transfer revenue from their water and power utilities
to their general fund; and
WHEREAS, Assembly Bill 318 constitutes an unwarranted state
intrusion into local rate setting authority and is inconsistent
with the California Sta}Q Constitution which provides that a
-chartered city may adopt -AA enforce all regulations affecting its
municipal public utility operation; and
WHEREAS, cities which have their own water and power utilities
would experience severe revenue reductions in their budgets if the
passage of Assembly Bill 318 should occur; and
WHEREAS, Assembly Bill 318 passed the Assembly on June 1,
1995, despite the opposition expressed by our representative Byron
Sher, whom we commend;
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of
Palo Alto does hereby express its strong opposition to Assembly
Bill 318 and urges its defeat in the State Legislature.
INTRODUCED AND PASSED: June 12, 1995
AYES: ANDERSEN, FAZZINO, HUBER, KNISS, MCCOWN, ROSENBAUM, SCHNEIDER, SIMITIAN,
WHEELER
NOES:
ABSENT:
ABSTENTIONS:
APPROVED:
Mayor
Manager