Resolution No. 2013-046RESOLUTION NO. 2013-46
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING THE CITY OF VERNON LIGHT AND POWER
DEPARTMENT ECONOMIC DEVELOPMENT RATE, THE AGREEMENT
FOR AN ECONOMIC DEVELOPMENT INCENTIVE ON ELECTRIC
SERVICES AND THE AFFIDAVIT FOR ECONOMIC DEVELOPMENT
REGARDING ELECTRICAL RATES TO BE CHARGED FOR
ELECTRICAL ENERGY DISTRIBUTED AND SUPPLIED BY THE
CITY WITHIN ITS BOUNDARIES
WHEREAS, the City Council of the City of Vernon adopted
Ordinance No. 1030 on May 16, 1.995, providing that rates to be charged
for electrical energy distributed and supplied by the City within its
boundaries shall be set by resolution; and
WHEREAS, on June 19, 2012, the City Council of the City of
Vernon adopted Resolution No. 2012-98, which amended Rate Schedule
Nos. CS, D, GS-1, GS-2, .LS-1, LS-2, OL-1, PA-1, PA-2, PA-TOU, TC-1,
TOU-GS-1, TOU-GS-2, TOU-PA-1, TOU-D, TOU-G, TOU-I and TOU-V; and
WHEREAS, Crossborder Energy, a rate consulting firm, has
conducted a rate study to determine an economically feasible Economic
Development rate (the "ED rate"); and
WHEREAS, the ED Rate provides an incentive of up to twenty
percent (20%) reduction off of the customers' otherwise applicable
tariff (OAT) for five (5) years, excluding taxes; and
WHEREAS, by memorandum dated April 16, 2013, the Director of
Light & Power has recommended the approval of the City of Vernon Light
and Power Department Economic Development Rate, the Agreement for an
Economic Development Incentive on Electric Services and the Affidavit
for Economic Development in order to attract large electricity users
to the City of Vernon and to encourage existing customers to add load;
and
WHEREAS, the City Council of the City of Vernon desires to
approve the City of Vernon Light and Power Department Economic
Development Rate, the Agreement for an Economic Development Incentive
on Electric Services and the Affidavit for Economic Development; and
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 above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon hereby
adopts the City of Vernon Light and Power Department Economic
Development Rate, the Agreement for an Economic Development Incentive
on Electric Services (the "Agreement") and the Affidavit for Economic
Development, copies of which are attached hereto as Exhibit A.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the City Administrator to execute said Agreement, for
and on behalf of, the City of Vernon, and the Interim City Clerk, or
Deputy City Clerk, is hereby authorized to attest thereto.
SECTION 4: The City Council of the City of Vernon hereby
instructs the City Administrator, or his designee, to take whatever
actions are deemed necessary or desirable for the purpose of
implementing and carrying out the purposes of this Resolution and the
transactions herein approved or authorized, including but not limited
to, any nonsubstantive changes to the Agreement attached herein.
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SECTION 5: The Interim City Clerk, or Deputy City Clerk of
the City of Vernon shall certify to the passage, approval and adoption
of this resolution, and the Interim City Clerk, or Deputy City Clerk,
of the City of Vernon shall cause this resolution and the Interim City
Clerk's, or Deputy City Clerk's, certification to be entered in the
File of Resolutions of the Council of this City.
APPROVED AND ADOPTED Lhis 16t'h clay of April, 2013.
'-�vana Reed
Interim City Clerk /
APPROV S TO FORI:
I "
Y""'
Nicholas George Rodriguez,
City Attorney
Ma Ma ell, Esq.
Special Counsel
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Name: W. Michael McCormick
Titles Mayor /
STATE OF CALIFORNIA )
) ss
COUNTY OF.LOS ANGELES )
I, Dana Reed , Interim City Clerk / f
the City of Vernon, do hereby certify that the foregoing Resolution,
being Resolution No. 2013-46, was duly passed, approved and adopted by
the City Council of the City of Vernon at a regular meeting of the City
Council duly held on Tuesday, April 16, 2013, and thereafter was duly
signed by the Mayor prr Mayor Pro-Tem of the City of Vernon.
Executed this day of Ap�013, at Vernon, California.
(SEAL)
Dula Reed
Interim City Clerk
'l 'tea
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EXHIBIT A
CITY OF VERNON
LIGHT AND POWER DEPARTMENT
SCHEDULE ED
ECONOMIC DEVELOPMENT RATE
APPLICABILITY
Applicable to qualified customers locating or expanding load on the City of Vernon's transmission and/or
distribution system. Customers taking service on Schedule ED must sign an Agreement for Economic
Development Incentive on Electric Service (Form No. ED).
TERRITORY
Within the city limits of the City of Vernon.
RATES
The ED rate provides an incentive of up to a twenty (20) percent reduction off the customers'; otherwise
applicable tariff (OAT) for five years, excluding taxes. This reduction shall be calculated on the rate
components of the customer's bill that correlate to services the City of Vernon provides the customer.
Incentive Limiter:
The average rate after application of the incentive under this schedule cannot be less than the Floor Price
described below.
FLOOR PRICE:
The sum of revenues collected by the City of Vernon from the customer, exclusive of any additional
applicable taxes, shall not fall below a Floor Price equal to marginal generation charges, embedded
distribution charges, CAISO and other transmission charges, public benefits charges (PBC), and the
green -energy surcharges that are allocated to the customer.
The revenues will be reviewed annually to ensure that they equal or exceed the Floor Price, up to the
OAT revenues the customer would have paid if it had not received the incentive. Additional lump -sum
charges may be due to the City of Vernon or credits due to the customer after each annual review. The
charges will be designed to ensure that revenues do not fall below the annual Floor Price. Credits, if
available after the annual review, will be provided if the customer's incentive rate had been previously
reduced from the maximum incentive level, due to the Floor Price.
PROGRAM EXPIRATION:
This schedule will remain open to new participants until December 31, 2017. This schedule will also
remain in effect until such time the last agreement expires or terminates.
SPECIAL CONDITIONS:
1. Eligible Customers:
Eligible customers are those on or electing existing schedule: TOU-G, or TOU-V, or their successor rate
schedule. New customers with maximum billing demands greater than 100 kW, or existing customers
who add at least 100 kW of demand may qualify.
For existing customers, only the additional demand may qualify for service under Schedule ED. New or
additional billing demand does not include billing demand that exists within the City of Vernon at the
time eligibility is determined.
Residential customers and state or local government agencies are not qualified customers under this rate
schedule.
2. Contract:
Service under this schedule is provided under a five-year agreement.
3. Start Date:
The start date of the incentive rate period shall commence within 24 months from the date of execution
for service and shall be designated by the customer within the agreement.
4. Metering:
Separate electric metering for new or additional load may be required if, in the City of Vernon's sole
opinion, it is necessary to provide service under this schedule. The customer will be responsible for any
costs associated with providing separate electric metering.
5. "But For" Test
In order to be eligible for this schedule, the customer must sign an affidavit, attesting to the fact that "but
for " this incentive rate, either on its own or in combination with a package of incentives made available
to the customer from other sources, the customer would not have located operations or added load within
the City of Vernon.
AGREEMENT FOR ECONOMIC DEVELOPMENT INCENTIVE ON ELECTRIC SERVICE
This agreement is made between
a(n)
Vernon.
("Applicant"), and the City of
RECITALS: The Economic Development rate was established and is made available at the City of
Vernon's sole discretion. The Economic Development Rate is a five-year incentive rate, as set forth in
Schedule ED.
AGREEMENT: Applicant and the City of Vernon agree to the following terms and conditions:
1. QUALIFICATION CRITERIA.
Applicant is or will be a customer, eligible for receiving service under Schedule TOU-G, TOU-V or its
successor rate schedule.
The electric load subject to his agreement is a maximum billing demand of at least 100 kW of net new
load to the City of Vernon. The minimum 100 kW of net new load must be maintained for at least three
consecutive months during the initial 12 months of this agreement. Only new load that will be regularly
served by the City of Vernon will be eligible for this incentive.
2. BILL INCENTIVE.
Electric service to Applicant's premises shall be delivered under Applicant's otherwise applicable tariff
(OAT), which is . A five-year rate incentive up to an twenty (20) percent reduction will be
applied to the customer's OAT (excluding taxes). This reduction shall be calculated on the rate
components of the customer's bill that correlate to service that the City of Vernon provides the customer.
If needed the City of Vernon may reduce the incentive percentage to ensure that revenues exceed the
Floor Price.
This incentive under this schedule will be limited by the Floor Price, as defined in Schedule ED. In
calculating the Floor Price, the City of Vernon will make use of its best estimate of the marginal cost to
serve the customer. The revenues from each participant will be reviewed annually and/or at the end of the
agreement to ensure that they equal or exceed the Floor price for each year of the agreement, up to the
OAT revenue that the customer would have paid if it had not received the incentive.
Applicant's rate under this schedule will be subject to an annual review, with potential additional lump -
sum charges due to the City of Vernon or credits due to Applicant. The charges shall ensure that the rate
does not fall below the Floor Price each year. Credits, if available after the annual review, will be
provided if the customer's incentive rate had been previously reduced from the maximum incentive above.
3. INCENTIVE CALCULATION.
Terms and conditions necessary for the incentive calculation are defined and agreed to as follows:
Billing determinants used for calculating the first year incentives will be the City of Vernon's best
estimate of expected usages and demand for customer expansion and attraction cases. For expansion
cases, the previous 12- months of historical metered data, if available, will be used to determine current
usage levels, and the incentive will be calculated only on that portion of demand and usage that is added.
During the annual and contract term review, the City of Vernon will compare the revenues received to the
Floor Price to ensure that the revenues received remain at least equal to the Floor Price throughout the
duration of the contract.
The City of Vernon reserves the right to reduce the contracted demands stated by the Applicant below if it
is determined that the Applicant's actual load at full operation of the facility after the Commencement
Date of this Agreement is more than 25% less than the contracted maximum demands stated below.
[Please mark the appropriate space below, indicating whether this is an agreement for the Applicant's
entire load or only a portion of the Applicant's load.]
a. _New customer Locating in the City of Vernon.
b. _Expansion of the existing customer's load.
C. The contracted demand of the new or expanded load is estimated to be kW.
The excluded Demands, if applicable, are determined by averaging the Applicants four highest
measured demands during each seasonal period during the 12-mont period preceding the execution date
of this agreement, if available. If Applicant separately meters the Reserved Demand, Applicants
Excluded Demand will be zero (0) kW for each season. The City of Vernon and the Applicant agree that
the excluded demand is:
July to September:
May, June, October:
November to April:
kW
kW
The Incentive Ratio for each month is defined as the difference between the Applicant's maximum
demand for that month and the excluded Demand divided by that same month's maximum demand. The
Incentive Ratio will be a fraction from zero (0) to one.(1).
4. COMMENCEMENT DATE.
The incentive shall commence on the Applicants regularly scheduled meter read day in the month of
_ , 20 , which is within a 24-month period of the date of execution of this agreement, as required
by rate Schedule ED.
5. METERING.
Applicant agrees to be responsible for all costs associated with providing separate electric metering if the
City of Vernon, at its sole discretion, deems such metering a necessary condition to implement this rate.
If Applicant is deemed to require separately metered reserved demand, Applicant must have metering in
place before the incentive rate will apply. Applicant's ability to have required metering in place shall not
delay the commencement date provided in Section 4 by which the Applicant would have otherwise
received the incentive.
6. TERM OF AGREEMENT.
This agreement shall take effect immediately and remain in effect for a term of five years following the
commencement date of the rate incentive.
7. TERMINATION AGREEMENT
Applicant may terminate this agreement upon 30 days written notice. The City of Vernon may also
terminate this agreement upon 30 days written notice in the event Applicant no longer meets the
qualifications described elsewhere in the Agreement and in Rate Schedule ED. Notwithstanding these
rights of termination, the Applicant shall be subject to Liquidated Damages as provided in Section 9 of
this agreement.
8. "BUT FOR" TEST
Applicant attests that "but for" the terms of this agreement, either on its own or in combination with a
package of incentives made available to the Applicant from other sources, the Applicant would not have
located, or increased its operations within the City of Vernon. Applicant shall sign the attached affidavit,
to that effect.
9. LIQUIDATED DAMAGES
If this agreement is terminated due to Applicant's misrepresentation or fraud, Applicant shall be liable for
liquidated damages that equal 200% of the cumulative difference between (i) bills calculated under the
Schedule ED rate to the date of termination and (ii) bills that would have been calculated under the OAT.
10. ASSIGNMENT.
Applicant may assign this agreement only if the City of Vernon consents in writing and the party to
whom the agreement is assigned agrees in writing to be bound by this agreement in all respects.
IN WITNESS THEREOF, the Parties have executed this Agreement in multiple originals of equal dignity
by their respective duly authorized representatives.
Executed this day of 20
(customer)
(signature)
(Print Name)
(Title)
The City of Vernon
(signature)
(Print Name)
(Title)
AFFADAVIT FOR ECONOMIC DEVELOPMENT RATE
By signing this affidavit, an Applicant who locates or adds load in the City of Vernon hereby certifies and
declares under penalty of perjury under the laws of the State of California that the statements in the
following paragraphs are true and correct.
1. But for the receipt of the discounted economic development rate and the terms of the Agreement,
either on its own or in combination with an economic development incentive package, the Applicant's
load would not have been located, or added within the City of Vernon.
2. The load to which the Agreement applies represents kilowatt-hours (kWh) and kilowatts (kW)
that either (i) does not already exist in the City of Vernon , or (ii) the Applicant considered expanding to a
location outside of the City of Vernon.
3. Applicant has discussed with the City of Vernon the cost-effective conservation and load
management measures the applicant may take to reduce their electric bills and the load they place on the
City of Vernon's utility system.
4. On an annual basis, the cost of electricity for a new or expanding customer is at least five (5)
percent of its actual operating costs, less the cost of raw materials.
Executed this day of 20
(Applicant)
BY:
(Signature)
(Print Name)
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: April 22, 2013
TO: Carlos Fandino, Director of Light & Power �(
FROM: Deborah Juarez, Records Management Assistant j
RE: Resolution No. 2013-46 - A Resolution of the City Council of the City of Vernon
Approving the City of Vernon Light and Power Department Economic Development Rate,
the Agreement for an Economic Development Incentive on Electric Services and the
Affidavit for Economic Development Regarding Electrical Rates to be Charged for
Electrical Energy Distributed and Supplied by the City Within Its Boundaries
Transmitted herewith is a copy of Resolution No. 2013-46 referenced above, which was approved by City
Council on April 16, 2013.
Thank you.
Attachment
c: Abraham Alemu
Anthony Serrano
Resolution No. 2013-46
RECENFE-D
APR 11L3
CITY CLERK'S OFFid
STAFF REPORT
DEPARTMENT OF LIGHT & POWER
DATE: April 16, 2013
TO: Honorable Mayor and City Council
FROM: Carlos R. Fandino, Jr., Director of Light & Power
RECEIVED
CIT
APR 1 1 2013
RE: Request for Approval of Economic Development Rate Tariff for City of
Vernon
Recommendation
It is recommended that the City Council:
1. Find that approvals requested in this staff report are exempt under the California
Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general
rule that CEQA only applies to projects that may have an effect on the environment.
2. Approve (a) the City of Vernon Light and Power Department Economic Development
(ED) rate, (b) the Agreement for an Economic Development Incentive on Electric
Service, and (c) the Affidavit for Economic Development, all designed to attract new
load to the City and encourage existing customers to add load, while providing electric
revenues to Vernon that are adequate to cover the City's marginal cost of providing
electric service, plus a reasonable contribution to the City's fixed financing (i.e. bond
service) costs.
Backeround
The Light and Power Department retained Crossborder Energy, a rate consulting firm, to prepare
an Economic Development (ED) rate study. Crossborder Energy has conducted a rate study to
determine an economically feasible ED rate. Past electric rate design work has been used to
estimate the City's electric cost of service elements, including marginal and average cost, by rate
group, as well as the level of the City's overall debt service obligations.
In order to attract large electricity users to the City of Vernon and to encourage existing
customers to add load, the ED rate provides an incentive of up to a twenty (20) percent reduction
off of the customers' otherwise applicable tariff (OAT) for five years, excluding taxes. This
ON
reduction shall be calculated on the rate components of the customer's bill that correlate to
services the City of Vernon provides the customer. Eligible customers are those on or electing
existing schedules: TOU-G, or TOU-V, or their successor rate schedule. New customers with
maximum billing demands greater than 100 kW, or existing customers who add at least 100 kW
of demand may qualify for this service. This approach mirrors the ED rates in effect for Pacific
Gas and Electric (PG&E) and Southern California Edison (SCE).
A draft EDR rate tariff, Agreement for Economic Development Incentive, and customer affidavit
form is attached for Council approval.
Fiscal Impact
The proposed tariff would provide electric revenues to Vernon that are adequate to cover the
City's marginal cost of providing electric service, plus a reasonable contribution (roughly 50%)
to the City's debt service obligation.
Attachments
Cc: Abraham Alemu
SUPPORTING INFORMATION
RESOLUTION NO. 2017-63
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING THE EXTENSION OF THE ECONOMIC
DEVELOPMENT RATE PROGRAM FOR AN ADDITIONAL ONE YEAR
WHEREAS, the City Council of the City of Vernon adopted
Ordinance No. 1030 on May 16, 1995, providing that rates to be charged
for electrical energy distributed and supplied by the City within its
boundaries shall be set by resolution; and
WHEREAS, April 16, 2013, the City Council of the City of
Vernon adopted Resolution No. 2013-46 approving the City of Vernon
Light and Power Department Economic Development Rate, the Agreement
for an Economic Development Incentive on electric services and the
affidavit for Economic Development regarding electrical rates to be
charged for electrical energy distributed and supplied by the City
within its boundaries; and
WHEREAS, Crossborder Energy, a rate consulting firm,
conducted a rate study to determine an economically feasible Economic
Development Rate Program (the "EDR"); and
WHEREAS, the EDR provides an incentive of up to twenty
percent (200) reduction off of the customers' otherwise applicable
tariff (OAT) for five (5) years, excluding taxes; and
WHEREAS, by memorandum dated December 5, 2017, the General
Manager of the Public Utilities Department has recommended that the
EDR program be extended for an additional one (1) year period, from
December 31, 2017 to December 31, 2018 to allow staff to complete
development of an Integrated Resource Plan and to develop a successor
program to the EDR; and
WHEREAS, the City Council of the City of Vernon desires to
approve the extension of the EDR for an additional one year period.
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 above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action is exempt under the California Environmental Quality
Act (CEQA), because it is an administrative activity that will not
result in direct or indirect physical changes in the environment, and
therefore does not constitute a "project" as defined by CEQA Guidelines
section 15378; and even if it were considered to be a "project," the
activity would be categorically exempt from CEQA review under CEQA
Guidelines section 15307, because it is an action taken by a regulatory
agency, as authorized by state law, to assure the "maintenance,
restoration, or enhancement" of natural resources and includes
procedures to protect the environment.
SECTION 3: The City Council of the City of Vernon hereby
approves the extension of the Economic Development Rate Program for an
additional one (1) year period, from December 31, 2017 to December 31,
2018.
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SECTION 4: The City Clerk, or Deputy City Clerk, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the City Clerk's, or Deputy
City Clerk's, certification to be entered in the File of Resolutions
of the Council of this City.
APPROVED AND ADOPTED this 5th day of December, 2017.
ATTEST:
Maria E. yala
City Clerk / Gaputy CJ �., Cl e"e
APPROVED AS TO FORM:
Brian Byun,
Senior Deputy City Attorney
Na Melissa A Ybarra
Title: Mayor /
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
I, Maria E . Ayala
ss
, City Clerk / of the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 2017-63, was duly passed, approved and adopted by the
City Council of the City of Vernon at a regular meeting of the City
Council duly held on Tuesday, December 5, 2017, and thereafter was duly
signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this 12-4-" day of December, 2017, at Vernon, California.
(SEAL)
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aria E. ya1a
City Clerk /
STAFF REPORT
of,V
RECEDED �� �E�
NOV 3 0 2017 NOV 2 9 2017
��ttr No°
CITY CLERK'S OFFICE STAFF REPORT CITY ADWNISl RATION
PUBLIC U � UTILITIES DEPARTMENT I I (Solo
DATE: December 5, 2017
TO: Honorable Mayor and City Council
FROM: Kelly Nguyen, General Manager of Public Utilities 41/,--
RE: A Resolution Extending the Expiration Date of the Economic Development
Rate Program
Recommendation
A. Find that adopting the proposed resolution is exempt under the California Environmental
Quality Act ("CEQA"), because it is an administrative activity that will not result in direct or
indirect physical changes in the environment, and therefore does not constitute a "project" as
defined by CEQA Guidelines section 15378; and even if it were considered to be a "project,"
the activity would be categorically exempt from CEQA review under CEQA Guidelines
section 15307, because it is an action taken by a regulatory agency, as authorized by state
law, to assure the "maintenance, restoration, or enhancement" of natural resources and
includes procedures to protect the environment; and
B. Adopt the attached Resolution extending of the expiration date of the Economic
Development Rate Program (EDR) by one (1) year December 31, 2017 to December 31,
2018.
Background
The Economic Development Rate (EDR) program was approved by City Council Resolution No.
2013-46 on April 16, 2013. The EDR program was established to promote economic activity in
the City and attract large electricity users into the City as well as to encourage existing customers
to increase their electrical demand. Eligible customers are those on or electing existing rate
schedule: TOU-G, or TOU-V, or their successor rate schedule. Under the program, new
customers with maximum billing demands greater than 100 kW or existing customers who add at
least 100 kW are eligible to receive EDR incentives. The EDR provides an incentive of up to a
twenty (20) percent reduction off the customers'; otherwise applicable tariff (OAT) for five
years, excluding taxes.
Page 1 of 2
Since the program inception date, the EDR program has been one of the most successful and
popular programs that has resulted in stimulating economic activity and attracting new customers
into the City. A number of large electrical users have either located their businesses in Vernon
or have increased their electrical demand significantly.
The EDR program was established and is made available at the City of Vernon's sole discretion.
The Economic Development Rate is a five-year incentive rate, as set forth in Rate Schedule ED.
The program remains open to new participants only until December 31, 2017 ("Program
Expiration"). The program will remain in effect until such time the last agreement expires or
terminates.
Staff is currently developing an Integrated Resource Plan (IRP). The IRP is anticipated, among
other things, to provide recommendations on the type of customer directed programs that will
encourage economic activity in the City. The IRP is expected to provide recommendations on the
terms, conditions, rates, and tariffs for customer programs that would be established by the City.
Due to the success and popularity of the EDR program, staff plans to develop a successor
program to the EDR that is consistent with the recommendations of the IRP.
At this time, staff is recommending the City Council to extend the expiration of the EDR
program by one (1) year, from December 31, 2017 to December 31, 2018 to allow staff complete
development of the IRP and to develop a successor program to the EDR. Staff will make a
recommendation to the City Council once the successor program to EDR is finalized before
December 31, 2018.
Fiscal Impact
None
Attachments
1. Resolution Extending the Expiration Date of the Economic Development Rate Program
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING THE EXTENSION OF THE ECONOMIC
DEVELOPMENT RATE PROGRAM FOR AN ADDITIONAL ONE YEAR
WHEREAS, the City Council of the City of Vernon adopted
Ordinance No. 1030 on May 16, 1995, providing that rates to be charged
for electrical energy distributed and supplied by the City within its
boundaries shall be set by resolution; and
WHEREAS, April 16, 2013, the City Council of the City of
Vernon adopted Resolution No. 2013-46 approving the City of Vernon
Light and Power Department Economic Development Rate, the Agreement
for an Economic Development Incentive on electric services and the
affidavit for Economic Development regarding electrical rates to be
charged for electrical energy distributed and supplied by the City
within its boundaries; and
WHEREAS, Crossborder Energy, a rate consulting firm,
conducted a rate study to determine an economically feasible Economic
Development Rate Program (the "EDR"); and
WHEREAS, the EDR provides an incentive of up to twenty
percent (20%) reduction off of the customers' otherwise applicable
tariff (OAT) for five (5) years, excluding taxes; and
WHEREAS, by memorandum dated December 5, 2017, the General
Manager of the Public Utilities Department has recommended that the
EDR program be extended for an additional one (1) year period, from
December 31, 2017 to December 31, 2018 to allow staff to complete
development of an Integrated Resource Plan and to develop a successor
program to the EDR; and
WHEREAS, the City Council of the City of Vernon desires to
approve the extension of the EDR for an additional one year period.
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 above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action is exempt under the California Environmental Quality
Act (CEQA), because it is an administrative activity that will not
result in direct or indirect physical changes in the environment, and
therefore does not constitute a "project" as defined by CEQA Guidelines
section 15378; and even if it were considered to be a "project," the
activity would be categorically exempt from CEQA review under CEQA
Guidelines section 15307, because it is an action taken by a regulatory
agency, as authorized by state law, to assure the "maintenance,
restoration, or enhancement" of natural resources and includes
procedures to protect the environment.
SECTION 3: The City Council of the City of Vernon hereby
approves the extension of the Economic Development Rate Program for an
additional one (1) year period, from December 31, 2017 to December 31,
2018.
- 2 -
SECTION 4: The City Clerk, or Deputy City Clerk, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the City Clerk's, or Deputy
City Clerk's, certification to be entered in the File of Resolutions
of the Council of this City.
APPROVED AND ADOPTED this 5th day of December, 2017.
ATTEST:
City Clerk / Deputy City Clerk
APPROVED AS TO FORM:
Brian Byun,
Senior Deputy City Attorney
Name:
Title: Mayor / Mayor Pro-Tem
- 3 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, , City Clerk / Deputy City Clerk of the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. , was duly passed, approved and adopted by the
City Council of the City of Vernon at a regular meeting of the City
Council duly held on Tuesday, December 5, 2017, and thereafter was duly
signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this day of December, 2017, at Vernon, California.
(SEAL)
City Clerk / Deputy City Clerk
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