HomeMy WebLinkAboutR-10964 terminating the Central Coast Community Energy Joint Powers Agreement on behalf of the City of San Luis ObispoRESOLUTION NO. 10964 (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, TERMINATING THE CENTRAL COAST
COMMUNITY ENERGY JOINT POWERS AGREEMENT ON BEHALF
OF THE CITY OF SAN LUIS OBISPO
WHEREAS, on September 18, 2018 the City Council approved Resolution No. 10943
(2018 series) approving the Joint Exercise of Power Agreement Relating to and Creating Central
Coast Community Energy (CCCE) on behalf of the City of San Luis Obispo for the purpose of
implementing a community choice energy program; and
WHEREAS, on October 11, 2018 the California Public Utilities Commission amended
the Power Charge Indifference Adjustment, which negatively impacted CCCE's ability to develop
a program with the desired financial and environmental benefit; and
WHEREAS, Monterey Bay Community Power (MBCP), a joint powers authority, is an
established community choice energy program capable of providing the desired financial and
environmental benefits, and
WHEREAS, on November 7, 2018, the CCCE Board of Directors unanimously voted to
direct staff to staff to return to the member cities with a request to join MBCP; and
WHEREAS, on November 13, 2018, the City Council voted 5-0 to join MBCP; and
WHEREAS, Section 6.4 of the CCCE Joint Exercise of Powers Agreement provides that
the Agreement may be terminated by mutual agreement of all the Parties; and
WHEREAS, the only other member of CCCE, Morro Bay, intends to take City Council
action to terminate the CCCE Agreement; and
WHEREAS, Section 6.5 of the CCCE Joint Exercise of Powers Agreement says that,
"Upon termination of this Agreement, any surplus money or assets in possession of CCCE for use
under this Agreement, after payment of all liabilities, costs, expenses, and charges incurred under
this Agreement and under any program documents, shall be returned to the then -existing Parties
in proportion to the contributions made by each."; and
WHEREAS, CCCE is free of all debts, liabilities, surplus money, and assets.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
that:
SECTION 1. The City Council hereby approves the termination of the Joint Exercise of
Powers Agreement Relating to and Creating Central Coast Community Energy (the "JPA
Agreement"), and authorizes the Mayor to enter into the written agreement with the City of Morro
Bay, attached hereto, formally terminating the JPA Agreement.
R 10964
Resolution No. 10964 (2018 Series)
Page 2
SECTION 2. This resolution and the termination of the Central Coast Community Energy
Authority is exempt from the requirements of the California Environmental Quality Act (CEQA)
pursuant to the State CEQA Guidelines, as it is not a "project" since this action involves
organizational and administrative activities of government that will not result in direct or indirect
physical changes in the environment. (14 Cal. Code Regs. § 15378(b)(5)).
SECTION 3. This resolution shall be effective immediately upon passage and adoption.
Upon motion of Vice Mayor Christianson, seconded by Council Member Rivoire, and on the
following roll call vote:
AYES: Council Members Gomez, Pease and Rivoire,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 27`' day c
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS 'lam FORM-
Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this JZ," day of ` L ems; -2-01 4 --
Teresa Purrington, City Cler
R 10964
AN AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE CITY OF MORRO BAY TERMINATING THE JOINT EXERCISE
OF POWERS AGREEMENT ESTABLISHING CENTRAL COAST
COMMUNITY ENERGY
This Termination Agreement is made and entered into this M' "' day of November 2018 by and
between the City of San Luis Obispo and the City of Morro Bay (hereinafter collectively referred
to as the "Parties").
WHEREAS, the City of San Luis Obispo and the City of Morro Bay entered into a Joint
Exercise of Powers Agreement, effective October 5, 2018, establishing Central Coast Community
Energy (CCCE); and
WHEREAS, on October 11, 2018, the California Public Utilities Commission amended
the Power Charge Indifference Adjustment, which negatively impacted CCCE's ability to develop
a program with the desired financial and environmental benefits; and
WHEREAS, Monterey Bay Community Power (MBCP), a joint powers authority, is an
established community choice energy program capable of providing the desired financial and
environmental benefits, and
WHEREAS, on November 13, 2018, the City Councils for both San Luis Obispo and
Morro Bay voted 5-0 to join MBCP; and
WHEREAS, Section 6.4 of the CCCE Joint Exercise of Powers Agreement provides that
such Agreement may be terminated by mutual agreement of all the Parties; and
WHEREAS, the Parties are the only members of CCCE, and have the authority to
terminate the CCCE Joint Exercise of Powers Agreement pursuant to this Agreement; and
WHEREAS, CCCE is free of all debts, liabilities, surplus money, and assets and therefore
no further actions are required by the Parties when the Joint Exercise of Powers Agreement is
hereby terminated.
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions
hereinafter set forth, it is agreed by and between the Parties as follows:
SECTION 1. Pursuant to Section 6.4 of the Joint Exercise of Powers Agreement Relating
to and Creating Central Coast Community Energy, effective October 5, 2018, the Parties hereby
terminate such Agreement effective upon the execution of this Termination Agreement by both
the City of San Luis Obispo and the City of Morro Bay.
CITY OF SAN LUIS OBISPO
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
J..
'stine Dietrick
Cit Attomey
CITY OF MORRO BAY
Jam' L. Irons, Mayor
ATTEST:
a
;an�a.Swa'nson
City Clerk
APPROVED AS TO FORM:
A).A�tp,,�
Joseph Pannone
City Attorney
Page 2
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.pproving the Joint Ex ise of Power in
,,ommunity Energy (CCCE) on behalf of the City of Morro Ba
# energy program; an#
and Creating Central Coast
the purpose of implementing
he Power Charge Indifference Adjustment, which negatively impacted CCCE's ability to
Jevelop- a program with the desired financial and environmental benefit; and
=0,,uthority, is an established community choice energ . y program capable of providing the desired
inancial and environmental benefits, and
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ECTION 1. The City Council hereby approves the termination of the CCCE
authorizes the Mayor to sign the Termination Agreement with SLO, attached hereto,
X do
SECTION 2. This resowtion and the termination of the CCCE is exempt from the
Resolution No. 94-18
activities of government that will not result in direct or indirect physical change
environment. (14 Cal. Code Kegs, § 15378(b)(5)).
PASSED AND ADOPTED by the City Council
of the City of
meeting thereof held on the 29th day %J November 2018 by the following vote:
Page 2
s in the
Morro Bay at a special
AYES:
NOES:
ABSENT:
ABSTAIN:
ironsI Davis, Headding, Makowetski, McPherson
None
None
None
JANKE L. IRONS, Ma�/or
ATTEST:
LORI M. KUDZMA, Deputy City Clerk