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R-10470Council Meeting: May 11, 2010 Santa Monica, California RESOLUTION NUMBER lp~,~g (CCS) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA EXPRESSING THE CITY OF SANTA MONICA'S OPPOSITION TO PROPOSITION 16 THAT WOULD ADD ADDITIONAL CONSTRAINTS ON A CITY'S ABILITY TO PURSUE COMMUNITY CHOICE AGGREGATION TO ACHIEVE ITS NET ZERO ENERGY CITY GOALS AND TO REDUCE GREENHOUSE GAS EMISSIONS WHEREAS, the City of Santa Monica has been actively facilitating deployment of solar systems.and energy efficiency measures throughout the community with the goal of achieving net zero electricity consumption by 2020 and reducing greenhouse gas emissions; and WHEREAS, the City wishes to maintain its authority to become. a partner in a joint powers authority for the purpose becoming ah aggregate electricity provider under state law AB: 117, Community Choice Aggregation; and WHEREAS, for example, the County of Marin has exercised this authority, has formed the Marin Energy Authority to operate a Community Choice Aggregation that will deliver at least 51 % renewable energy by 2014, and has determined that Community Choice Aggregation is the most cost-effective way that the county and cities of Marin can reduce greenhouse gas emissions; and 1 WHEREAS, in contrast, to the success available through aggregation, Pacific Gas & Electric (PG&E) has delivered only about 12% eligible renewables in 2008; and WHEREAS, PG&E has said it will not meet its state mandated goal of 20% eligible renewable energy by 2010; and WHEREAS, PG&E is financially sponsoring a California ballot initiative called the "New Two Thirds Requirement for Local Electricity Providers" that would amend the basic revenue bond authority of local governments so that local governments planning to start selling electricity would first need atwo-thirds vote of approval from their residents if the plans required public financing; and WHEREAS, local governments have the authority to own assets and to secure bonds with revenue obtained from those assets, but this ballot measure would unduly constrain Santa Monica's ability to exercise this authority as an aggregate electricity provider; and WHEREAS, obtaining atwo-thirds vote of approval in a local election can be challenging and costly, particularly when the opposition has a large budget for defeating the measure; and WHEREAS, if passed, this measure would impede the City's efforts to protect the environment and set a dangerous precedent that could potentially lead to further constraints on the ability of local governments to issue revenue bonds. 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Santa Monica opposes the "New Two Thirds Requirement for Local Electricity Providers" ballot initiative and will notify the People of Santa Monica of this opposition. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: 3 Adopted and approved this 11th day of May, 2010. ~ ~~~~ Pam O'Connor, Mayor Pro Tem I, Maria Stewart, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Resolution No. 10470 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 11th day of May, 2010, by the following vote: Ayes: Council members: Bloom, O'Day, Holbrook, Davis, Shriver, McKeown, Mayor Pro Tem O'Connor Noes: Council members: None Absent: Council members: None ATTEST: Maria Stewart, City C rk