Resolution No. 9663611
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RESOLUTION NO. 9663
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON CONSIDERING THE ADOPTION OF A FORMAL PLAN
TO INCREASE FUEL EFFICIENCY OF THE CITY'S
ELECTRICAL GENERATION FROM FOSSIL FUELS PURSUANT
TO THE ENERGY POLICY ACT OF 2005
WHEREAS, the City of Vernon ("City") is a chartered municipal
corporation of the State of California that owns and operates a system
for the generation, purchase, distribution and sale of electric
capacity and energy; and
WHEREAS, Congress passed the Energy Policy Act of 2005
("EPACT 2005"), which requires every public and private utility to
consider adopting a formal ten-year plan to increase the efficiency of
electrical generation from fossil fuels, and
WHEREAS, Vernon's only regular fossil fuel generation comes
from the Malburg Generating Station ("MGS"); and
WHEREAS, the MGS, which was commissioned in 2005, is a
modern, combined -cycle natural gas fired power plant and is one of the
most efficient fossil fuel -fired generating stations in California; and
WHEREAS, the City is considering developing a new and even
more efficient combined -cycle natural gas -fired power plant; and
WHEREAS, a Notice of Public Hearing was posted on June 19,
2008, notifying all interested parties that a hearing to consider
evidence regarding the adoption of a formal ten-year plan to increase
the efficiency of the City's electrical generation from fossil fuels
was scheduled for July 7, 2008, at approximately 10:00 a.m., subject to
the hearing being continued to a stated time and place without further
notice; and
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WHEREAS, on July 7, 2008, the City Council held a public
hearing in which the City Council took evidence from staff and those
other persons in attendance who wished to be heard regarding the
adoption of a formal ten-year plan to increase the efficiency of the
City's electrical generation from fossil fuels; and
WHEREAS, the Light & Power Department has prepared a Staff
Report, dated June 26, 2008, a copy of which is attached hereto as
"Exhibit 1" and made a part hereof, which includes:
(a) a report that the City's current generation of
electricity from the MGS is highly efficient;
(b) a recommendation that the City not adopt a formal ten-
year program governing fossil fuel efficiency;
(c) a recommendation that the City continue to consider
the development of more efficient electrical generation capacity; and
WHEREAS, the City Council has heard and considered all
evidence, written and oral, presented in consideration of the adoption
of a formal ten-year plan to increase the efficiency of the City's
electrical generation from fossil fuels.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
finds and determines that all persons have had the opportunity to be
heard or to file written comments regarding the adoption of a formal
ten-year plan to increase the efficiency of the City's electrical
(generation from fossil fuels.
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SECTION 3: The City Council of the City of Vernon hereby
finds that the City's current generation of electricity from fossil
fuel, via the MGS, is among the most efficient fossil fuel -fired
electrical generation in California.
SECTION 4: The City Council of the City of Vernon hereby
finds that, even though the City's current production of electricity is
highly efficient, it is reasonable and prudent for the City to consider
the development of additional efficient electrical generation capacity.
SECTION 5: The City Council of the City of Vernon, after
having considered the relative efficiency of the MGS, the relatively
recent date on which the MGS was placed into service and the City's
current efforts to develop new and even more efficient electrical
generation capacity, finds that the City has made significant
investments in promoting the efficient generation of electricity from
fossil fuels.
SECTION 6: The City Council of the City of Vernon, after
due consideration of the evidence and testimony presented, finds that
it is not necessary at this time for the City to adopt a formal ten-
year plan to improve the efficiency of the City's electrical generation
Ifrom fossil fuels.
SECTION 7: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and thereafter
the same shall be in full force and effect.
APPROVED AND ADOPTED this 7th day of July, 2008.
ATTES
MANUELA GIRON, City Clerk
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Name: Leonis C. Malburg
Title: Mayor
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(STATE OF CALIFORNIA )
) ss
(COUNTY OF LOS ANGELES )
I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 9663, was
duly adopted by the City Council of the City of Vernon at a regular
meeting of the City Council duly held on Monday, July 7, 2008, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Vernon.
(SEAL)
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MANUELA GIRON, City Clerk
EXHIBIT 1
CITY OF VERNON LIGHT & POWER DEPARTMENT STAFF
REPORT REGARDING THE PROPOSED ADOPTION OF A
FORMAL PLAN TO INCREASE FUEL EFFICIENCY PURSUANT
TO THE ENERGY POLICY ACT OF 2005
June 26, 2008
The Energy Policy Act of 2005 ("EPACT 2005" or the "Act") requires all
utilities, including municipal utilities, to consider implementing proposed
standards intended to increase the efficiency of fossil fuel -based electricity
generation. Under the Act, the City of Vernon (the "City") must complete its
consideration of the proposed standards, and make a determination on adopting
the standards, by August 8, 2008.
EPACT 2005 does not establish any specific efficiency targets, other than
the requirement that each utility consider whether a formal ten-year plan to
improve the efficiency of fossil fuel -based generation is necessary for that
particular to utility. The fuel efficiency requirements of EPACT 2005 apply
equally to all utilities, regardless of whether the utilities are generating electricity
from recently built, highly efficient generating facilities or older, less efficient
facilities.
Currently, Vernon's only regular fossil fuel generation comes from a
modern, combined -cycle natural gas -fired power plant, the Malburg Generating
Station ("MGS"). The MGS was commissioned in the Fall of 2005 and is one of
the most efficient fossil fuel -fired generating stations in California. Considering
that the City has already invested heavily in improving the efficiency of fossil fuel -
based electrical generation by building the MGS, and that the MGS employs
state of the art technology, it is not necessary at this point in time to adopt a
formal ten-year plan to improve fossil fuel efficiency.
Furthermore, Vernon is contemplating the development and/or
construction of a new, larger and even more efficient combined -cycle natural gas
fired power plant to supplement the City's electrical generation. The
development and implementation of such a plant would likely lead to significant
efficiency gains. Considering the City's interest and commitment to developing
further efficient resources, it appears that the City has taken a proactive and
aggressive position regarding improved fossil fuel efficiency. This is further
evidence that the City's does not need to adopt a formal ten-year plan.
RECOMMENDATIONS
1. Do not adopt a formal ten-year plan to further improve the efficiency of the
City's fossil fuel -fired generation of electricity.
2. Continue to consider the development of new efficient electrical
generation capacity.
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: July 14, 2008
TO: Donal O'Callaghan, Director of Light & Power
FROM- Nelly Giron, City Clerk
RE: Resolution No. 9663 - A Resolution of the City Council of
the City of Vernon Considering the Adoption of a Formal Plan
to Increase Fuel Efficiency of the City's Electrical
Generation From Fossil Fuels Pursuant to the Energy Policy
Act of 2005
Transmitted herewith is a copy of Resolution No. 9663 referenced
above, which was approved by City Council on July 7, 2008.
Thank you.
NG:dr
c: Resolution No. 9663
NOTICE OF PUBLIC HEARING
The City of Vernon will conduct a Public Hear
you may attend.
PLACE: Vernon City Hall
City Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
DATE AND TIME: Monday, July 7, 2008, at 10:00 a.m., or
as soon thereafter as the matter may be
heard
PURPOSE: To determine whether to (1) adopt a
plan for fuel diversity to minimize
dependence on one fuel source and
ensure a diverse range of fuels and
generation technologies; (2) adopt a
ten (10) year plan to increase
efficiency in its fossil fuel
generation; and (3) expand and
implement Net Metering for on -site
customer generation in accordance with
the Energy Policy Act of 2005.
Any interested person may attend and may make an oral
presentation to the City Council at the time of the
hearing, or may present written comments prior to the
hearing.
If you challenge the approval of the adoption of a
plan for fuel diversity, the adoption of a 10-year plan to
increase efficiency in fossil fuel, and the implementation
of Net Metering or any provision thereof in court, you may
be limited to raising only those issues you or someone else
raised at the hearing described in this notice or in
written correspondence delivered to the City of Vernon at,
or prior to, the meeting.
The hearing may be continued or adjourned to a stated
time and
/nplace without further notice.
Dated: `�// �0
MANUELA '9-IPJON, City Clerk
AFFIDAVIT OF POSTING
I, Manuela Giron, City Clerk, of the City of Vernon do hereby certify
that on the 191-h day of June 2008, I did post three (3) copies of the
following:
NOTICE OF PUBLIC HEARING - to determine whether to (1) adopt
a plan for fuel diversity to minimize dependence on one fuel
source and ensure a diverse range of fuels and generation
technologies; (2) adopt a ten (10) year plan to increase
efficiency in its fossil fuel generation; and (3) expand and
implement Net Metering for on -site customer generation in
accordance with the Energy Policy Act of 2005.
On each of the following places, to wit: on the bulletin board outside
the main entrance to the City Hall of the City of Vernon located at
4305 Santa Fe Avenue; at the northwest corner of 38th Street and Santa
Fe Avenue; the northeast corner of Leonis Blvd., and Pacific Blvd.,
all in said City, there being no newspaper of general circulation
printed and publishel in the City of Vernon.
Date:
Manuela Giro
City Clerk
State of California )
)ss
County of Los Angeles)
On TU/ e- ?,,3 _90f before me, /_'C�4/C ,
Notary Public, personally appeared Manuela Giron
who proved to me on the basis of satisfactory evidence to be the
person(X) whose name O is/-.r subscribed to the within instrument and
acknowledged to me that -Ire/sheA4key executed the same in iris/her/t4e-rr-
authorized capacity(.1-e-s), and that by hs/her/thy signature�6) on
the instrument the person O , or the entity upon behalf of which the
person() acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of
California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal
JUDITH A. LEHR
Commission # 1 a4691t8 ��` �_ �✓
.,� Notary Public - CalHomIa
Los Angeles County
MyCatim. ExpNasieb TR. �Qi