City Council Agenda June 21, Date: June 12, Mayor and City Council. Michael Chandler, Assistant to the City Manager

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1 City Council Agenda June 21, 2017 Date: June 12, 2017 To: From: Subject: Mayor and City Council Michael Chandler, Assistant to the City Manager Adoption of Ordinance No. 1406, approving the Marin Clean Energy Joint Powers Agreement and Authorizing the Implementation of a Community Choice Aggregation Program Recommendation Adopt Ordinance No approving the Marin Clean Energy Joint Powers Agreement and authorizing the implementation of a Community Choice Aggregation Program. Background The Martinez City Council unanimously introduced an Ordinance approving the Marin Clean Energy (MCE) Joint Powers Agreement and authorizing the implementation of a Community Choice Aggregation (CCA) Program. Additionally, the Council adopted Resolution No requesting membership in Marin Clean Energy, authorizing the Mayor to execute the Memorandum of Understanding with Marin Clean Energy ( MOU ), and authorizing the City Manager and/or his designated representative to execute other documents to initiate membership with Marin Clean Energy. Marin Clean Energy is a CCA, operational since 2010, which allows cities to participate in a Joint Powers Authority that purchases, sources or generates electricity for their residents and businesses, with the goal of gaining local control, expanding consumer choices, and reducing costs for electricity generation. The City has worked alongside Contra Costa County since November 2015 to evaluate the CCA options for Contra Costa local agencies. Through this process, the City conducted an extensive public engagement process that included: 1) an online survey; 2) three (3) public meetings/workshops in Martinez (December 12, 2016 Internal Operations Committee Meeting of County Board of Supervisors; December 15, 2016 Public Workshop at County Zoning Administrator Room; and May 15, 2017 Franchise and Infrastructure Subcommittee Meeting of Martinez City Council); and 3) four (4) City Council presentations (April 6, 2016; January 18, 2017; May 3, 2017; and June 7, 2017). 1

2 The Ordinance is now before Council for adoption. If adopted, Martinez will join the County and 12 other public agencies in Contra Costa County which are either already members of MCE or expected to join MCE this summer. Fiscal Impact None. There are no upfront costs for the City to join a MCE during the Inclusionary Period which runs through June 30, Attachments Ordinance No

3 ORDINANCE NO AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MARTINEZ APPROVING THE MARIN CLEAN ENERGY JOINT POWERS AGREEMENT AND AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION PROGRAM WHEREAS, the City of Martinez has been actively investigating options to provide electric services to constituents within its service area since 2016 with the intent of achieving greater local involvement over the provision of electric services; promoting competitive and renewable energy; and reducing energyrelated greenhouse gas emissions; and WHEREAS, on September 24, 2002, the Governor signed into law Assembly Bill 117 (Stat. 2002, Ch. 838; see California Public Utilities Code section 366.2; hereinafter referred to as the Act ), which authorizes any California city or county, whose governing body so elects, to combine the electricity load of its residents and businesses in a community-wide electricity aggregation program known as Community Choice Aggregation ( CCA ); and WHEREAS, the Act expressly authorizes participation in a CCA program through a joint powers agency, and on December 19, 2008, MCE was established as a joint powers authority pursuant to a Joint Powers Agreement, as amended from time to time; and WHEREAS, on February 2, 2010, the California Public Utilities Commission certified the Implementation Plan of MCE, confirming MCE s compliance with the requirements of the Act; and WHEREAS, in order to become a member of MCE, the Act requires the City of Martinez to individually adopt an ordinance electing to implement a Community Choice Aggregation program within its jurisdiction by and through its participation in MCE. THE CITY COUNCIL OF THE CITY OF MARTINEZ DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. This action is not a project as defined in accordance with California Environmental Quality Act (CEQA) Guidelines, Section because the proposed action will not result in any direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Joining a Community Choice Aggregation Program presents no foreseeable significant adverse impact to the environment because the California State regulations such as the Renewable Portfolio Standard (RPS) and Resource Adequacy (RA) requirements apply equally to CCA s as they do to Investor-Owned Utilities. State CEQA Guidelines Section 15378(b)(5) states that a project does not include, Organization or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Further, the City

4 Council finds that the proposed action is not a project having a potentially significant effect on the environment and, accordingly, is exempt from CEQA under the general rule set forth by 14 Cal Code Regs Section 15061(b)(3), in that it can be seen with certainty that there is no possibility the proposed action will have a significant effect on the environment. SECTION 2. Based upon all of the above, the City Council elects to implement a Community Choice Aggregation program within the City of Martinez s jurisdiction by and through the City of Martinez s participation in Marin Clean Energy ( MCE ). The Mayor is hereby authorized to execute the MCE Joint Powers Agreement. SECTION 3. This ordinance shall take effect on the later of (a) the date the Board of Directors of MCE adopts a Resolution adding the City of Martinez as a member of MCE, or (b) 30 days after its adoption. SECTION 4. Posting. The City Clerk shall cause this ordinance to be published within fifteen (15) days after its adoption, at least once, with the names of those City Council members voting for or against this Ordinance, in a newspaper of general circulation published and circulated in the City of Martinez. SECTION 5. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed and adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. APPROVED: Rob Schroder, Mayor ATTEST: Deputy City Clerk * * * * * *

5 I HEREBY CERTIFY that the foregoing ordinance was duly and regularly introduced at a Regular Meeting of the City Council of the City of Martinez, held on the 7 th day of June, 2017, and duly passed and adopted at a Regular Meeting of said City Council held on the 21 st day of June, 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RICHARD G. HERNANDEZ CITY CLERK, CITY OF MARTINEZ