HomeMy WebLinkAbout05/18/2010, C 2 - RESOLUTION TO OPPOSE ""NEW TWO-THIRDS VOTE REQUIREMENT FOR PUBLIC ELECTRICITY PROVIDERS"" INITIATIVE" council
j ac En as Repoin
CITY O F SAN LU I S O B 1 S P 0
FROM: J. Christine Dietrick, City Attorney
SUBJECT: RESOLUTION TO OPPOSE "NEW TWO-THIRDS VOTE
REQUIREMENT FOR PUBLIC ELECTRICITY PROVIDERS"
INITIATIVE
RECOMMENDATION
Adopt a resolution to oppose Proposition 16, the "New Two-Thirds Requirement for Local
Public Electricity Providers Initiative."
DISCUSSION
Proposition 16 has qualified for the June 8, 2010 statewide ballot. It would require two-thirds
voter approval before local governments could provide electricity service to new customers or
establish a community choice electricity program using public funds or bonds.
Specifically, the ballot measure would prohibit any local government agency (including charter
cities, special districts, agencies and joint power authorities) from incurring any bonded or other
indebtedness or liability in any manner or use of any public funds for the construction or
acquisition of facilities, work goods, commodities, products or services to establish or expand
electric delivery service, or to implement a plan to become an aggregate electricity provider,
without the assent of two-thirds of the voters within the jurisdiction of the local government and
two-thirds of the voters within the territory to be served, if any, voting at an election to be held
for the purpose of approving the use of any public funds, or incurring any liability, or incurring
any bonded or other borrowing or indebtedness.
The League of California Cities opposes the proposition based upon the League's Environmental
Quality Policy Committee's strong recommendation for opposition. The committee was
particularly concerned that the ballot measure is an infringement on local control as cities and
their municipal utilities work to provide the best service possible for their constituents.
ATTACHMENT
Resolution
G:\Agenda-Ordinances-Resol\Two-Thirds Vote Requirement Public Electricity Providers.CAR.doc
-' ATTACHMENT
RESOLUTION NO. (2010 Series) .
RESOLUTION OF THE CITY OF SAN LUIS OBISPO OPPOSING THE
"NEW TWO-THIRDS VOTE REQUIREMENT FOR PUBLIC ELECTRICITY
PROVIDERS" INITIATIVE
WHEREAS, the "New Two-Thirds Vote Requirement for Public Electricity Providers"
Initiative ("Initiative") has qualified for the June 8, 2010 Statewide Primary Election; and
WHEREAS, the Initiative is a Constitutional Amendment; and
WHEREAS, the Initiative would require a public power provider to obtain a 2/3 voter
majority in both existing territory and proposed territory expansions prior to spending funds for a
utility system expansion; and
WHEREAS, the Initiative would prevent elected representatives or a simple majority of
citizens from determining whether they want to have public power in any newly annexed areas;
and
WHEREAS, the Initiative would prevent a simple majority of citizens from determining
whether they want Community Choice Aggregation, a program authorized by the state
legislature in 2007 that allows a city, county or group of government agencies to procure and
provide electricity to residents and businesses within its jurisdictions; and
WHEREAS, although the City of San Luis Obispo is already a public power community,
San Luis Obispo wishes to support citizens' ability to opt for locally controlled public power in
communities throughout the state; and
WHEREAS, the proposed Initiative contains a number of ambiguities that could affect
the City's electric utility operations within the City's existing jurisdiction, including potentially
requiring a 2/3 voter majority before the City can make investments in transmission or
generation facilities to serve its electric load; and
WHEREAS, the Legislative Analysts Office concluded that the Initiative would create
an unknown impact to state and local government costs and revenues, depending on future voter
decisions, due to the potential impacts on electricity rates and publicly owned electric utility
operations.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The Council by adopting this resolution does hereby oppose the Initiative
on the June 2010 ballot.
ca
- CD.
R
Resolution No. (2010 Series) ATTACHMENT
Page 2
SECTION 2. The City Council and staff are authorized to provide impartial
informational materials on the Initiative as may be lawfully provided by the City's
representatives. No public funds shall be used to campaign for or against the initiative.
SECTION 3. The residents of the City of San Luis Obispo are encouraged to become
well informed on the Initiative and its possible impacts.
Upon motion of seconded by and on the
following vote:
AYES:
NOESc
ABSENT:
The foregoing resolution was adopted this day of 2010.
Mayor David F. Romero
ATTEST:
Elaina Cano
City Clerk
APPROVED AS TO FORM:
;ity
Stine Dietrick
Attorney
C. a-3