Resolution No. 2017-063RESOLUTION 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.
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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:
City Clerk / Deputy City Clerk
APPROVED AS TO FORM:
Brian Byun,
Senior Deputy City Attorney
Name:
Title: Mayor / Mayor Pro-Tem
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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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