HomeMy WebLinkAboutResolution No. 2021-C18RESOLUTION NO.2021-C18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, DIRECTING THE DIRECTOR OF ADMINISTRATIVE
SERVICES TO TRANSFER ALL MONIES FROM THE RATE
STABILIZATION FUND RESERVE FOR STRANDED INVESTMENT TO
THE ELECTRIC FUND UNRESTRICTED RESERVE
WHEREAS, in January 1997 the City Council adopted Resolution No. 97-05 and Ordinance
No. 97-01 establishing a Rate Stabilization Fund Reserve for Stranded Investment; and
WHEREAS, the Reserve Fund was needed at the time in order to mitigate financial impacts
of electricity retail market conditions during the late 1990's and early 2000's; and
WHEREAS, the Azusa Light & Water (ALW) successfully exited the San Juan coal-fired
Generating Station project in 2017 and ALW no longer has resources that are at risk of becoming
uneconomic as compared to the now stabilized California electrical energy markets, and the Rate
Stabilization Fund for Stranded Investment is no longer required; and
WHEREAS, under Section 78-40 of the Azusa Municipal Code, the City Council can make
a finding that the reasons for maintaining Rate Stabilization Fund for Stranded Investment are no
longer applicable and direct staff to transfer this special reserve fund into the Electric Fund's
unrestricted reserves; and
WHEREAS, as of March 2, 2021 there was $10,826,755 in the Rate Stabilization Fund; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Make a finding that events have overtaken the purpose of maintaining the
Rate Stabilization Reserve Fund for Stranded Investments within the Electric
Utility Enterprise.
SECTION 2. Direct the Director of Administrative Services to transfer all monies from the
Rate Stabilization Fund Reserve for Stranded Investments to the Electric
Fund's Unrestricted Reserves within thirty (30) days of the passage of
Ordinance No. 2021-02.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, and ADOPTED this 261h day of April, 2021.
Robert Gonzal
Mayor
ATTEST:
J a ce Corn e' , Jr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2021-C 18 was duly adopted by the
City Council of the City of Azusa at a regular meeting on the 261" day of April, 2021.
AYES:
COUNCILMEMBERS: GONZALES, ALVAREZ, AVILA, MENDEZ
NOES:
COUNCILMEMBERS: MACIAS
ABSENT:
COUNCILMEMBERS: NONE
APPROVED AS TO FORM:
Best, Bet & Krieger, LL
City Attorney