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HomeMy WebLinkAboutResolution No. 2023-C06RESOLUTION NO. 2023-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AMENDING THE FISCAL YEAR 2022-2023 ELECTRIC UTILITY OPERATING BUDGET FOR THE PURCHASE OF WHOLESALE POWER. WHEREAS, the western natural gas markets have experienced a sharp increase from limited storage levels, increased heating demand, constrained flows into California; and and WHEREAS, the cost of wholesale power has followed the sharp natural gas market increases; WHEREAS, the cost of power purchases impacts the current utility operating budget; and WHEREAS, on the 20th day of June, 2022, City Council of the City of Azusa adopted the Fiscal Year 2022-2023 Operating Budget for Azusa Light & Water, which did not provide for payment of the unprecedented volatile market impacted wholesale power purchases; and WHEREAS, Azusa Municipal Code Section 2-450 requires that during the fiscal year after adoption of the budget, amendments exceeding $1,000,000.00 may be approved by the city council following a public hearing held by the city council on the proposed and shall be formalized by the adoption of a resolution; and WHEREAS, a public hearing for this matter was conducted at a joint meeting of the Azusa City Council/Utility Board on the 23rd day of January, 2023; and WHEREAS, an amendment in the amount of $11,500,000 to the Electric Utility Operating expense budget will be adequate to make payment for wholesale power; and NOW, THEREFORE, BE IT RESOLVED that the city council/utility board of the city of Azusa, does hereby resolve as follows: SECTION 1. That the Electric Utility Fiscal Year 2022-2023 Operating Budget is hereby amended in the amount of $10,550,000 in the expense account number 33- 40-775-550-6590 and the GHG Program Expense Operating Budget is hereby amended in the amount of $950,000 in expense account number 23- 40-770-556-6625 for a total budget amendment of $11,500,000. SECTION 2. That the GHG Program Revenue Fiscal Year 2022-2023 Operating Budget is hereby amended in the amount of $950,000 in revenue account number 23-40-770-555-4450 SECTION 3. That blanket purchase order 4037096 (California Independent System Operator is hereby increased by $10,550,000 SECTION 4. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 231d day of January, 2023. Robert-GopAles ' Mayor ATTEST: f ence Co Jo, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2023-006 was duly adopted by the City Council of the City of Azusa at a Special Meeting of the City Council the 23rd day of January, 2023, by the following vote of Council: AYES: COUNCILMEMBERS: GONZALES, BECKWITH, ALVAREZ, AVILA, MENDEZ NOES: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ABS COUNCILMEMBERS: NONE Je e a ce Cornejo r. City Clerk APPROVED AS TO FORM: Best Aest & Kriegek LLP City Attorney