Ordinance 2016-06ORDINANCE NO. 2016-06
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY AUTHORIZING THE IMPLEMENTATION
OF A COMMUNITY CHOICE AGGREGATION (CCA)
PROGRAM
The City Council of the City of Gilroy does ordain as follows:
SECTION 1. FINDINGS. The City Council finds as follows:
The Cities of Cupertino, Mountain View and Sunnyvale and the County of Santa Clara
formed and sponsored the Silicon Valley Community Choice Energy Partnership
(SVCCEP) to investigate options to provide electric service to customers within the City
of Gilroy and surrounding municipalities with the intent of achieving greater local control
and involvement over the provision of electric services, competitive electric rates, the
development of local renewable energy projects, reduced greenhouse gas emissions, and
the implementation of energy conservation and efficiency projects and programs.
2. The City of Gilroy, through its participation in SVCCEP, has prepared a Technical
Feasibility Study for a Community Choice Aggregation ( "CCA ") program under the
provisions of Public Utilities Code Section 366.2. The Technical Feasibility Study shows
that implementing a community choice aggregation program would likely provide
multiple benefits, including the following:
a. Providing customers a choice of power providers;
b. Increasing local control over energy rates and other energy- related matters;
c. Providing electric rates that are competitive with those provided by the incumbent
utility;
d. Reducing greenhouse gas emissions arising from electricity use in the City;
e. Increasing local and regional renewable generation capacity;
f. Increasing energy conservation and efficiency projects and programs;
g. Increasing regional energy self - sufficiency; and
h. Improving the local economy by implementing new local renewable and energy
conservation and efficiency projects.
3. The Joint Powers Agreement creating the Silicon Valley Clean Energy Authority
( "Authority ") will govern and operate the CCA program on behalf of its member
jurisdictions. The Initial Participants within the County of Santa Clara, as defined by the
Joint Powers Agreement, may participate in the Authority by adoption of a resolution
approving the execution of the Joint Powers Agreement and adoption of the CCA
ordinance required by Public Utilities Code Section 366.2(c)(12) by March 31, 2016.
Municipalities choosing to participate in the Authority will have membership on the
Board of Directors of the Authority as provided in the Joint Powers Agreement.
ORDINANCE NO. 2016-06
4. The Authority will enter into agreements with electric power suppliers and other service
providers and, based upon those agreements, the Authority plans to provide electrical
power to residents and businesses at rates that are competitive with those of the
incumbent utility. Once the California Public Utilities Commission approves the
implementation plan prepared by the Authority, the Authority may provide service to
customers within the City of Gilroy and those cities that choose to participate in the
Silicon Valley Clean Energy Authority; and
5. Under Public Utilities Code Section 366.2, customers have the right to opt -out of a CCA
program and continue to receive service from the incumbent utility. Customers who wish
to continue to receive service from the incumbent utility will be able to do so at any time;
and
6. On February 22, 2016, the Gilroy City Council held a public hearing at which time
interested persons had an opportunity to testify either in support or in opposition to
implementation of the Silicon Valley Clean Energy CCA program in the City of Gilroy.
7. This ordinance is exempt from the requirements of the California Environmental Quality
Act (CEQA) pursuant to the State CEQA Guidelines, as it is not a "project" and has no
potential to result in a direct or reasonably foreseeable indirect physical change to the
environment. (14 Cal. Code Regs. § 15378(a).) Further, the ordinance is exempt from
CEQA as there is no possibility that the ordinance or its implementation would have a
significant negative effect on the environment. (14 Cal. Code Regs.§ 15061(b)(3).) The
ordinance is also categorically exempt because it is an action taken by a regulatory
agency to assure the maintenance, restoration, enhancement or protection of the
environment. (14 Cal. Code Regs. § 15308.) The Director of Community Development
shall cause a Notice of Exemption to be filed as authorized by CEQA and the State
CEQA Guidelines.
SECTION 2. The above findings are true and correct.
SECTION 3. AUTHORIZATION TO IMPLEMENT A COMMUNITY CHOICE
AGGREGATION PROGRAM. Based upon the foregoing, and in order to provide businesses
and residents within the City of Gilroy with a choice of power providers, the City of Gilroy
hereby elects to implement a community choice aggregation program within the jurisdiction of
the City by participating in the Community Choice Aggregation program of the Silicon Valley
Clean Energy Authority, as described in its Joint Powers Agreement.
SECTION 4. This Ordinance shall be in full force and effect 30 days after its adoption, and
shall be published and posted as required by law. This Ordinance was introduced by the City
Council of the City of Gilroy on March 7, 2016 and was adopted on the 21 st day of March, 2016
by the following roll call vote:
ORDINANCE NO. 2016-06
PASSED AND ADOPTED this 21St day of March, 2016, by the following roll call vote:
AYES: COUNCILMEMBERS: AULMAN, HARNEY, TUCKER, VELASCO and
WOODWARD
NOES: COUNCILMEMBERS: BRACCO
ABSENT: COUNCILMEMBERS: LEROE -MU&OZ
ORDINANCE NO. 2016-06
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Ordinance No. 2016 -06 is an original ordinance, or true and correct copy of a City
ordinance, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council
held on the 21" day of March, 2016, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 22nd day of March, 2016.
City Clerk of the City of Gilroy
(Seal)