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HomeMy WebLinkAbout1996-08-05 City Council (40)TO: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL FROM: AGENDA DATE: SUBJECT: CITY MANAGER August 5, 1996 CMR:367:96/~k Proposed League of California Cities Resolution Electric Industry Restructuring DEPARTMENT: City Manager Relating to REQUEST The Northern California Power Agency has asked its member cities to sponsor a resolution relating to electric industry restructuring and the importance of maintaining local government authority. RECOMMENDATIONS Staff recommends that Council endorse the proposed resolution and agree to be shown as a co-sponsor of the resolution. POLICY IMPLICATIONS The draft resolution is consistent with Council policy and positions stated in the City’s Legislative Platform. EXECUTIVE SUMMARY Resolutions for consideration at the 1996 Annual Conference of the League of California Cities are to be submitted to the League office not later than Wednesday, August 14, 1996. Resolutions may originate from cities, city officials, League divisions and departments, policy committees, the League Board of Directors, or by petition at the conference. The Northern California Power Agency has prepared a draft resolution on behalf of its member cities and has asked the cities to endorse the resolution and agree to be sponsors. The intent of the resolution is to prevent the erosion of local government authority in the provision of essential services, particularly electric service in the context of the electric industry restructuring which is under way. CMR:367:96 Page 1 of 2 FISCAL IMPACT Approval of the resolution will not have a direct fiscal impact on the City. However, if existing municipal authority were eroded, it could mean a significant impact on the City’s ability to set utility rates and make transfers to the general fund. ENVIRONMENTAL ASSESSMENT This is not a project under the California environmental assessment is required. Environmental Quality Act;therefore, no ATTACHMENTS Proposed Resolution Relating to Electric Industry Restructuring PREPARED BY:Vicci Rudin, Assistant to the City Manager Tom Habashi, Assistant Director, Resource Management CITY MANAGER APPROVAL: CMR:367:96 Page 2 of 2 RESOLUTION NO. ~ RESOLUTION RELATING TO ELECTRIC INDUSTRY RESTRUCTURING WHEREAS, local government is charged with the responsibility of providing essential and emergency services to its citizens, and WHEREAS, Califomia’s Constitution recognizes the provision of electric service and specifically grants the authority to local government to provide that service, and WHEREAS, the decision-making authority for the provision of electric service is vested in the level of government closest to the people and most immediately responsive to the people, and WHEREAS, more than 30 percent of California residents and businesses receive electric service from local government-operated electric utilities, and WHEREAS, consumers of electric service provided by local government, public power customers, are the owners of the electric utility who directly elect the directors of the utility and participate in rate-making decisions of the utility, and WHEREAS, electric service to non-public power customers is provided by for-profit investor-owned utility companies whose service and price-making priorities are overseen by the non-elected, Public Utilities Commission of the State of California, and WHEREAS, consumer-owned public power electric rates average 20 percent below rates authorized by the California Public Utilities Commission and charged by investor-owned utilities, and WHEREAS, the current debate regarding a restructuring of the electric utility in California includes suggestions that the State of California Public Utilities Commission intrude into the rights and responsibilities of local government, and WHEREAS, such intrusion can only result in increased cost to local government and their electric customers, and WHEREAS, the League of California Cities has aggressively supported "home rule" and encourages the provision of services by the level of government most immediately responsive to the needs of California’s citizens. NOW THEREFORE BE IT RESOLVED, by the General Assembly of the League of California Cities, assembled in Annual Conference in Anaheim, October 15, 1996, that the League does affirm its support of electric service by consumer-owned public power municipal utilities and encourages the continuation of the "home rule" authority vested in California’s cities, and BE IT FURTHER RESOLVED, that the League of California Cities will participate in the electric restructuring debate to assure that no erosion of local government authority in the provision of essential services occurs, that the League encourages solidarity among all California cities to obstruct efforts to erode "home rule," and further that the League of California Cities will oppose all legislation introduced in the California Legislature that erodes the decision-making ability of local govemment in the provision of essential services.