HomeMy WebLinkAboutOrdinance No. 97-O1 ORDINANCE NO 97-01
AN ORDINANCE OF THE CITY OF AZUSA, CALIFORNIA, AMENDING
ARTICLE II OF CHAPTER 78 OF THE AZUSA MUNICIPAL CODE BY ADDING
A NEW SECTION 78-40 CONCERNING A RATE STABILIZATION FUND FOR
STRANDED INVESTMENT WITHIN THE ELECTRIC FUND
THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES ORDAIN AS
FOLLOWS:
SECTION 1. Article II of Chapter 78 of the Azusa Municipal Code is hereby
amended to add Section 78-40 to read as follows:
"Sec. 78-40 Reserve for Stranded Investment
(a) There is hereby created a separate account within the City's Electric
Fund to be known as the Reserve for Stranded Investment (the "Reserve").
(b) For purposes of this section, Stranded Investment shall mean:
(1) The difference between the City's prudently-incurred costs of
electricity from its generation-related assets and obligations and
the local market price of electricity as established by a regional
power pool approved by the Federal Energy Regulatory
Commission; and
(2) Appropriate values associated with ancillary services, reliability
and self-sufficiency; and
(3) Such industry restructuring related costs as may be expressly
approved or which are appropriate for recovery by California
municipal utilities under the decisions of either the Federal
Energy Regulatory Commission or the California Public Utilities
Commission; and
(4) Such industry restructuring related costs as may be authorized by
state law.
(c) Funds collected and placed into the Reserve shall be used exclusively
to pay for Stranded Investment and for no other purpose.
(d) No monies in the Reserve shall be expended or transferred without
prior approval by a, majority vote of the city council. The director of the light
and water department and the director of finance shall make written
recommendations to the city council on the manner in which monies should be
transferred between the Electric Fund and the Reserve.
(e) The director of finance shall administer the Reserve in consultation
with the city administrator and the director of the light and water department.
(f) All activities pertaining to the Reserve shall be reported in the City's
annual financial report. At least once a year, the director of the light and water
department and the director of finance shall present a written report on all
activities pertaining to the Reserve to the city council at a public meeting.
(g) All interest earned on monies in the Reserve shall remain in the
Reserve and become a part thereof.
(h) At such time as the city council determines that the Reserve is no
longer necessary to compensate for Stranded Investment, the city council shall
direct the director of finance to transfer all monies in the Reserve into the
Electric Fund's unrestricted reserve and those monies shall be used in the most
reasonable manner to reduce electricity rates for the City's electric customers.
SECTION 2. This Ordinance shall be in full force and effect thirty days after its
passage.
SECTION 3. A summary of this Ordinance shall be published in the manner
required by law.
PASSED, APPROVED AND ADOPTED this 2lstday of January , 1997
J. ' `'`
STEVE 4EXAVDER
MAYOR
ATTEST:
//////7,4'
f
.4
J�
ADOLP/OLIS,
CITY CL RK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA
I, Adolph Solis, City Clerk of the City of Azusa, do hereby certify that the
foregoing Ordinance No.97-o1was duly introduced and placed upon its first reading at an
adjourned meeting of the City Council of the 13 day of January , 1997, and that thereafter,
said Ordinance was duly adopted and passed at a regular meeting of the City Council on the
21st day of January , 1997 by the following vote, to wit:
AYES: COUNCILMEMBERS: HARDISON, BEEBE, ALEXANDER
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: MADRID, NARANJO 7
ADOLPH ,. a LIS,
CITY CLE` K
APPROVED AS TO FORM:'
pl
STEP EN P. DEITSCH,
CITY ATTORNEY