HomeMy WebLinkAbout2019-03-19; City Council; ; Resolution of Intention to Pursue Community Choice Energy(i) CITY COUNCIL
. Staff Report
Meeting Date:
To:
From:
Staff Contact:
March 19, 2019
Mayor and City Council
Scott Chadwick, City Manager
Ja~on Haber, Assistant to the City Manager
ja son.haber@carlsbadca.gov or 760-434-2958
CA Review vY-
Subject: Resolution of Intention to Pursue Community Choice Energy
Recommended Action
Consider adoption of a resolution expressing the City Council's intention to pursue
a community choice energy program that prioritizes certain operating principles.
Executive Summary
On February 26, 2019, the City Council directed staff to bring forward a resolution expressing
the City Council's intention to pursue a community choice energy program that prioritizes
certain operating principles for consideration at a future meeting. This item presents a
resolution for City Council consideration.
Discussion
On February 26, 2019, the City Council reviewed a Draft Community Choice Energy (CCE)
Technical Feasibility Study (Draft Feasibility Study) prepared by EES Consulting for the partner
cities of Carlsbad, Del Mar, Encinitas, and Oceanside. The Draft Feasibility Study found that
formation of a partner CCE is financially feasible and could yield considerable benefits for all
participating residents and businesses, potentially including electric retail rates that are at least
2% lower than SDG&E rates. As such, the City Council passed Resolution No. 2019-025 authorizing
the City Manager to negotiate, execute, and fund a cost share agreement allowing for the City of
Carlsbad's participation in an evaluation of potential community choice energy program
governance options in an amount not to exceed $35,000.
Also, on February 26, 2019, the City Council directed staff to prepare a resolution stating the City
Council's intention to pursue a community choice aggregation program that prioritizes the
following operating principles desired by the City Council: payment of prevailing wages on
construction projects in the event a CCE constructs local clean energy resources, use of
community benefit agreements and project labor agreements, and an assurance that a CCE
governing entity would remain neutral in the event its workers intended to unionize.
Adoption of this resolution does not obligate the City of Carlsbad to participate in any future
decision to establish a Community Choice Energy program.
March 19, 2019 Item #7 Page 1 of 4
Fiscal Analysis
This item has no fiscal impact; however, should the City Council decide to implement a CCE
program at a future date in accordance with the intentions stated in the subject resolution,
additional analysis would be required to fully assess the fiscal impacts thereof.
Next Steps
Staff will continue to work with EES and the partner cities to achieve final acceptance of the
North San Diego County Cities Community Choice Energy Technical Feasibility Study, to include
participating in a public workshop on March 21, 2019, and soliciting community feedback on
the Draft Feasibility Study (in coordination with the cities of Del Mar, Encinitas and Oceanside).
Staff will work with the partner cities to negotiate and execute a cost share agreement to
conduct an evaluation of CCE program governance options, to be completed by July 2019. Upon
receiving direction from the City Council, staff would pursue the necessary legislative,
regulatory, administrative and operational steps to achieve a 2021 CCE program launch, which
would be the city's earliest opportunity to do so.
Environmental Evaluation (CEQA)
Pursuant to Public Resources Code Section 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has no potential to cause either a direct physical change
in the environment, or a reasonably foreseeable indirect physical change in the environment,
and therefore does not require environmental review.
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and was available for public
viewing and review at least 72 hours prior to scheduled meeting date.
Exhibits
1. City Council Resolution
March 19, 2019 Item #7 Page 2 of 4
RESOLUTION NO. 2019-036
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, EXPRESSING ITS INTENTION TO PURSUE A COMMUNITY
CHOICE ENERGY PROGRAM THAT PRIORITIZES CERTAIN OPERATING
PRINCIPLES
Exhibit 1
WHEREAS, on February 26, 2019, the City Council reviewed a Draft Community Choice Energy
(CCE) Technical Feasibility Study (Draft Feasibility Study) prepared by EES Consulting for the cities of
Carlsbad, Del Mar, Encinitas, and Oceanside; and
WHEREAS, the Draft Feasibility Study found that formation of a partner CCE is financially
feasible and could yield considerable benefits for all participating residents and businesses, potentially
including electric retail rates that are at least 2% lower than SDG&E rates; and
WHEREAS, the City Council passed Resolution No. 2019-025 authorizing the City Manager to
negotiate, execute, and fund a cost share agreement allowing for the City of Carlsbad's participation in
an evaluation of potential CCE program governance options in an amount not to exceed $35,000; and
WHEREAS, the City Council wishes to adopt a resolution stating its intention to pursue CCE to
provide electric commodity service to the citizens and businesses of Carlsbad; and
WHEREAS, the City Council wishes to clarify its preference that in conducting evaluations and
negotiations concerning CCE, the City Manager shall prioritize the following points of principle desired
by the City Council: payment of prevailing wages on construction projects in the event a CCE constructs
local clean energy resources, use of community benefit agreements and project labor agreements, and
an assurance that a CCE governing entity would remain neutral in the event its workers intended to
unionize.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the City of Carlsbad intends to pursue CCE to provide electric commodity service to
the citizens and businesses of Carlsbad.
3. That in conducting evaluations and negotiations concerning CCE, the City Manager shall
prioritize the following points of principle desired by the City Council:
a. The CCE shall pay prevailing wages for construction of local clean energy
resources.
March 19, 2019 Item #7 Page 3 of 4
b. The CCE shall advantage local communities through the use of negotiated
community benefit agreements and project labor agreements demonstrating
local hiring preferences where appropriate and allowed by law.
c. The CCE shall remain neutral in the event its workers seek to unionize.
4. These principles are statements of intent and reflect the City Council's preferences, but
are not intended to preclude the City Manager from bringing forth any proposal that
provides the potential benefits demonstrated in the Draft Feasibility Study.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 19th day of March 2019, by the following vote, to wit:
AYES:
NOES:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton.
None.
None.
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March 19, 2019 Item #7 Page 4 of 4