Resolution No. 2024-XXX - Page 1 of 3 ATTACHMENT 1 ATTACHMENT 2ATTACHMENT 2
ATTACHMENT 2
RESOLUTION NO. 2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA SUPERCEDING RESOLUTION NO. 20-129 AND REVISING
THE RENEWABLE ENERGY RESOURCES PROCUREMENT PLAN AND
ENFORCEMENT PROGRAM FOR THE RANCHO CUCAMONGA MUNICIPAL
UTILITY
WHEREAS, the City of Rancho Cucamonga is authorized under various provisions of the California Constitution and the general laws of California (including, specifically, Article XI, Section 9(a) of the California Constitution, Public Utilities Code Section 10004, and Government Code section 39732(a)) to establish, purchase, and operate a public utility to furnish its inhabitants with, among other things, electricity; and
WHEREAS, the City of Rancho Cucamonga operates a municipal electric utility (“City”); and
WHEREAS, as a municipal electric utility, the City is generally subject to the legislative and regulatory requirements applicable to local publicly owned electric utilities (“POUs”); and WHEREAS, the State of California passed Senate Bill 2 (1st Extraordinary Session) (“SBX1-2”), effective as of December 10, 2011, requiring POUs, including the City, to adopt and implement, among other things, a renewable energy resources enforcement program and procurement plan that requires the City to procure a minimum quantity of eligible renewable energy resources over certain periods; subject to cost limitation and flexible compliance options as adopted by the Rancho Cucamonga City Council, as the governing board of the City; and WHEREAS, the California Energy Commission (“CEC”) adopted regulations specifying procedures for the enforcement of the requirements of SBX1-2 on June 12, 2013, and which became effective on October 1, 2013; and
WHEREAS, on October 7, 2015, Governor Brown signed the Clean Energy and Pollution Reduction Act of 2015 (Senate Bill 350 (De Leon) (“SB 350”)), with an effective date of January 1, 2016; and
WHEREAS, on September 10, 2018, Governor Brown signed Senate Bill 100 (De Leon) (“SB 100”), with an effective date of January 1, 2019; and WHEREAS, SBX1-2, SB 350, and SB 100 required the Rancho Cucamonga City Council, as the governing board of the City, to ensure that the amount of eligible renewable energy resources to be procured by the City for the period from January 1, 2011 to December 31, 2013 is equal to an average of 20 percent of retail sales; and that the City makes reasonable progress to ensure that the procurement of eligible renewable energy resources achieves 25 percent of retail sales by December 31, 2016, and 33% of retail sales by December 31, 2020, 44 percent by December 31, 2024, 52 percent by December 31, 2027, and 60 percent by December 31, 2030; and
WHEREAS, Public Utilities Code § 399.30(a) requires California’s POUs to adopt a Renewable Energy Resources Procurement Plan (“RPS Procurement Plan”), and further, Public Utilities Code § 399.30(e) requires POUs to adopt and implement a Renewable Energy ATTACHMENT 2ATTACHMENT 2ATTACHMENT 2ATTACHMENT 2ATTACHMENT 2ATTACHMENT 2
Resolution No. 2024-XXX - Page 2 of 3
Resources Enforcement Program (“RPS Enforcement Program”) to enforce the implementation of a POU’s RPS Procurement Plan; and
WHEREAS, Public Utilities Code § 399.30(d)(2)(B) allows the Rancho Cucamonga City Council to adopt cost limitation measures permitting the City to limit RPS procurement requirements at a level that prevents disproportionate rate impacts to the City’s ratepayers.
WHEREAS, Public Utilities Code § 399.30(d)(2)(A) allows the Rancho Cucamonga City Council to adopt measures permitting the City to delay timely compliance with the RPS procurement requirements if any of the following conditions exist 1) transmission constraints 2) permitting, interconnection, or other circumstances 3) unanticipated curtailment 4) transportation electrification; and
WHEREAS, in accordance with Public Utilities Code § 399.30(e), the City Council, as the governing board of the City, adopted Resolution No. 11-183 on December 21, 2011, Resolution No. 13-199 on November 20, 2013 and Resolution No. 20-129 on December 2, 2020 adopting and establishing various updates to its RPS Procurement Plan, which established compliance periods, adopted RPS procurement targets, specified portfolio balance requirements consistent with Public Utilities Code § 399.16, described the City’s existing and planned procurement activities, forecasted the City’s retail sales and RPS obligations, adopted rules for excess procurement, and adopted a cost limitation methodology and cost limitation amount and directed the City Manager or his designee to develop and present to the City Council an RPS Procurement Plan; and
WHEREAS, City staff has prepared an RPS Procurement Plan for the fourth compliance period (2021-2024) updating the forecasted retail sales and RPS procurement requirements, providing an updated description of the City’s existing and planned RPS procurement activities, adopting new procurement targets for the fifth and sixth compliance periods consistent with SB 350 and SB 100, and revising the information and methodology used for establishing a cost limitation for the fourth compliance period and beyond; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City’s Renewable Energy Resource Procurement Plan, Compliance Period 4 (2021-2024) to Compliance Period 6 (2028-2030), which is attached hereto and incorporated herein, is hereby approved and adopted.
SECTION 2. As authorized in SB 2 1-X and SB 100, the following alternative compliance measures are hereby approved and adopted:
i. Delay of Timely Compliance rules are approved and adopted as described in Section 9 of the RPS Plan.
ii. A cost limitation for procurement of expenditures by the City is hereby approved and adopted as described in Section 10 of the RPS Plan.
SECTION 3. The City Manager or his/her duly authorized designee has developed and presented for City Council approval a Renewable Energy Resources Procurement Plan, including cost limitation and other criteria’s consistent with the requirements of the relevant Public Utilities Code.
Resolution No. 2024-XXX - Page 3 of 3
SECTION 4. Except for matters specifically reserved for action by the City Council, as governing board of the City, the City Manager or his/her duly authorized designee is authorized and directed to do and perform all acts required in the Renewable Energy Resource Procurement Plan and to periodically provide any updates to the Rancho Cucamonga City Council.
SECTION 5. This resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this ________ day of __________, 2024.
ATTACHMENT 2
CITY OF RANCHO CUCAMONGA
MUNICIPAL UTILITY
RENEWABLE ENERGY RESOURCES
PROCUREMENT PLAN
Compliance Period 4 (2021-2024) – Compliance
Period 6 (2028-2030)
Updated and Adopted: December 18, 2024
ATTACHMENT 2
5 2
8 2
TABLE OF CONTENTS
Section 1. Policy Statement.........................................................................................................3 Section 2. Definitions..................................................................................................................3 Section 3. RPS Enforcement Program.........................................................................................3 Section 4. Specified RPS Procurement Targets............................................................................3 Section 5. RPS Procurement Requirements.................................................................................4 Section 6. RPS Procurement.......................................................................................................6 Section 7. Forecast of Retail Sales and RPS Compliance Obligations...........................................7 Section 8. Excess Procurement Rules..........................................................................................8 Section 9. Delay of Timely Compliance Rules..............................................................................8 Section 10. Cost Limitation...........................................................................................................9
3 Section 1. POLICY STATEMENT
California Public Utilities Code § 399.30(a) requires all publicly owned electric utilities (“POUs”), including the City of Rancho Cucamonga, to “adopt and implement a renewable energy resources procurement plan” that requires the POU to procure a minimum quantity of electricity and/or renewable energy credits (“RECs”) from eligible renewable energy resources, as a percentage of total retail sales. This document comprises City of Rancho Cucamonga Municipal Utility’s (RCMU’s) renewable energy resources procurement plan (“RPS Procurement Plan”). This RPS Procurement Plan describes how RCMU will achieve its RPS procurement requirements in each compliance period.
Section 2. DEFINITIONS
The definitions set forth in Public Resources Code (“PRC”) § 25741 and Public Utilities Code (“PUC”) § 399.12 are incorporated herein. Capitalized terms in this RPS Procurement Plan, as first identified in parentheses, shall have the meaning given to such term in the body of this RPS Procurement Plan.
Section 3. RPS ENFORCEMENT PROGRAM
As required by PUC § 399.30, the Rancho Cucamonga City Council adopted the Renewable Energy Resources Enforcement Program (“RPS Enforcement Program”) on December 21, 2011.
Through the RPS Enforcement Program, the Rancho Cucamonga City Council established compliance periods, adopted RPS-eligible procurement targets, and described the framework for how RCMU would implement its RPS program. Section 10 of the RPS Enforcement Program directed the City Manager or his/her duly authorized designee to develop and present an RPS Procurement Plan to the Rancho Cucamonga City Council.
Section 4. SPECIFIED RPS PROCUREMENT TARGETS
In the RPS Enforcement Program, the Rancho Cucamonga City Council adopted general RPS procurement targets for each of the initial four compliance periods (1-3). Pursuant to PUC § 399.30(b) and (c), the Rancho Cucamonga City Council adopts and further specifies the RPS procurement targets for Compliance Periods 4, 5, 6, and all subsequent three years periods as follows:
Compliance Period 4
For the four-year period beginning January 1, 2021 and ending December 31, 2024, RCMU shall procure sufficient RPS-eligible resources to equal the sum of the following:
(35.75 percent of 2021 retail sales) + (38.5 percent of 2022 retail sales) + (41.25 percent
4 of 2023 retail sales) + (44 percent of 2024 retail sales). RCMU shall not be required to procure a specific quantity of RPS-eligible resources in any individual year during this compliance period.
Compliance Period 5
For the three-year period beginning January 1, 2025 and ending December 31, 2027, RCMU shall procure sufficient RPS-eligible resources to equal the sum of the following:
(46 percent of 2025 retail sales) + (50 percent of 2026 retail sales) + (52 percent of 2027 retail sales). RCMU shall not be required to procure a specific quantity of RPS-eligible resources in any individual year during this compliance period.
Compliance Period 6
For the three-year period beginning January 1, 2028 and ending December 31, 2030, RCMU shall procure sufficient RPS-eligible resources to equal the sum of the following:
(54.67 percent of 2028 retail sales) + (57.33 percent of 2029 retail sales) + (60 percent of 2030 retail sales). RCMU shall not be required to procure a specific quantity of RPS- eligible resources in any individual year during this compliance period.
Subsequent Three-Year Compliance Periods
For each subsequent three-year compliance period, RCMU shall procure sufficient RPS- eligible resources to equal an average of 60 percent of retail sales by the end of 2030.
Section 5. RPS PROCUREMENT REQUIREMENTS
PUC § 399.30(c)(3), consistent with PUC § 399.16, as implemented by the Energy Commission’s RPS Regulations specifies certain procurement requirements that are applicable to “electricity products,” which refers to either: (1) electricity and the associated renewable energy credit (“REC”) generated by an eligible renewable energy resource; or (2) an unbundled REC.
A. Procurement Associated with Pre-June 2010 Contracts and Ownership Agreements Pursuant to PUC § 399.16(d), electricity products associated with contracts or ownership agreements that were executed prior to June 1, 2010 and which met certain specified eligibility requirements, must count toward the POU’s RPS Procurement Targets without regard to the portfolio content categories (“PCCs”).
B. Procurement Associated with Post June 2010 Contracts and Ownership Agreements
5 Pursuant to PUC § 399.16(b)-(c), as implemented by the Energy Commission’s RPS Regulations, electricity products associated with contracts or ownership agreements that were executed after June 1, 2010 must be classified into the following three PCCs:
PCC1: Electricity products that are procured as bundled and that are associated with an eligible renewable energy resource that either: (1) has its first point on interconnection within a California balancing authority (“BA”); (2) has its first point of interconnection to a distribution system used to serve end users within a California BA; (3) is scheduled into a California BA without substituting electricity from another source; or (4) is dynamically transferred into a California BA.
PCC2: Electricity products that are procured as bundled and that are associated with an eligible renewable energy resource that is located within the WECC but outside of a California BA, and for which the renewable energy is matched with an equal amount of incremental energy that is scheduled into a California BA.
PCC3: All electricity products that are associated with eligible renewable energy resources, but that do not meet the definition of PCC1 or PCC2.
C. Portfolio Balance Requirements Applicable to Procurement Associated with Post June 1, 2010 Contracts and Ownership Agreements
Pursuant to PUC § 399.16(c), as implemented by the Energy Commission’s RPS Regulations, the following portfolio balance requirements are applicable to all electricity products that are credited towards the RPS Procurement Quantity Requirements that are associated with contracts or ownership agreements executed after June 1, 2010:
Compliance Period 4 and All Subsequent Compliance Periods PCC1 ≥ 75%
PCC2 No Limitation
PCC3 ≤ 10%
6 Section 6. RPS PROCUREMENT
A. RPS Contracts Executed Prior to June 1, 2010
1. None
B. RPS PCC 1 Procurement Acquired After June 1, 2010
1. Astoria 2: July 2014 agreement execution, COD: Aug. 2015, Term: 20 years, Kern County, CA, Fixed Solar Photovoltaic
2. Animal Shelter Center – City of Rancho Cucamonga: COD: Nov. 2016, Term: City Owned, San Bernardino County, CA, Fixed Solar Photovoltaic
3. City Hall – City of Rancho Cucamonga: COD: Feb. 2016, Term: City Owned, San Bernardino County, CA, Fixed Solar Photovoltaic
4. Epicenter – City of Rancho Cucamonga: COD: Feb. 2017, Term: City Owned, San Bernardino County, CA, Fixed Solar Photovoltaic
5. Antelope Expansion 3B: COD: Jun. 2021, Term: 20 years, Los Angeles County, CA, Single-Axis Tracking Bifacial Solar Photovoltaic
6. Fire Station 173 – City of Rancho Cucamonga: COD: Feb. 2022, Term:
City Owned, San Bernardino County, CA, Fixed Solar Photovoltaic
7. Arrow Rancho LLC.: COD: Jun. 2024, Term: 15 years, San Bernardino County, CA, Single-Axis Tracking Solar
8. VS HW Napa LLC.: Sept. 2023 agreement execution, Expected COD: Q1. 2025, Term: 25 years, San Bernardino County, CA, Single-Axis Tracking Solar
9. VS BI 4 th St. LLC.: Sept. 2023 agreement execution, Expected COD: Q4. 2025, Term: 25 years, San Bernardino County, CA, Single-Axis Tracking Solar
10. Golden Fields Solar IV.: Dec. 2023 agreement execution, Expected COD:
Q2. 2025, Term: 15 years, Kern County, CA, Single-Axis Tracking Solar Photovoltaic
C. Planned RPS Procurement
RCMU staff continues to review various resource opportunities that provides the “best fit” power procurement for the electric utility. This has included reviews and bid opportunities on various renewable energy projects and solar PV plus storage project solicitations.
7 Section 7. FORECAST OF RETAIL SALES AND RPS
COMPLIANCE OBLIGATIONS
Compliance Period 4
Year 2021
Actual
2022
Actual
2023
Actual
2024
Forecast
2021-
2024
Retail Sales
(MWh) 76,251 93,758 98,795 105,500 374,304
RPS % 35.8% 38.5% 41.3% 44% 40%
RPS
Procurement
Requirement
(MWh)
27,260 36,097 40,753 46,420 150,530
Compliance Period 5 Compliance Period 6
Year 2025
Forecast
2026
Forecast
2027
Forecast
2025-
2027
2028
Forecast
2029
Forecast
2030
Forecast
2028-
2030
Retail Sales 113,500 114,000 115,500 115,500 116,500 118,000 RPS % 46.7% 49.4% 52.0% 54.7% 57.4% 60%
RPS
Procurement
Requirement
(MWh)
52,982 56,270 60,106 169,358 63,179 66,824 71,124 201,127 Notes:
* Individual year targets are for planning purposes only.
8 Section 8. EXCESS PROCUREMENT RULES
A. The following rules for excess procurement shall apply for Compliance Period 4 and all subsequent Compliance Periods:
1. RCMU may apply excess procurement in one compliance period to a subsequent compliance period, subject to the following limitations:
(a) Electricity products that are classified as PCC2 or PCC3 may not be counted as excess procurement.
(b) Electricity products that exceed the maximum limit for PCC3, as specified in PUC § 399.16(c), must be subtracted from the calculation of excess procurement.
2. Excess procurement meeting these requirements may be applied to any future compliance period and shall not expire.
Section 9. DELAY OF TIMELY COMPLIANCE RULES
A. Delay of Timely Compliance Rule
Pursuant to PUC § 399.30(d)(2)(A), and consistent with Section 7 of the RPS Enforcement Program, the Rancho Cucamonga City Council may adopt measures permitting RCMU to delay timely compliance with the RPS procurement requirements. The Rancho Cucamonga City Council adopts the following delay of timely compliance rules.
If any of the conditions listed below occurs and is beyond the control of RCMU and causes RCMU to not be reasonably able to comply with the RPS procurement requirements, RCMU may delay timely compliance with the RPS procurement requirements.
1. Transmission Constraints
There is inadequate transmission capacity to allow sufficient electricity to be delivered from eligible renewable energy resources, or proposed eligible renewable energy resource projects, to the extent applicable, using the current operational protocols of the Balancing Authority (BA) in which RCMU operates. If RCMU owns transmission or has transmission rights, then RCMU shall demonstrate that:
•RCMU undertook all reasonable measures under its control and consistent with its obligations under local, state, and federal laws and regulations to develop and construct new transmission lines or upgrades to existing lines intended to transmit electricity generated by eligible renewable energy resources, in light of its expectation for cost recovery.
9 •RCMU took all reasonable operational measures to maximize cost-effective purchases of electricity from eligible renewable energy resources in advance of transmission availability.
2. Permitting, interconnection, or Other Circumstances
Permitting, interconnection, or other circumstance have delayed the procurement of eligible renewable energy resource projects, or there is an insufficient supply of eligible renewable energy resources available to RCMU. To utilize this condition, RCMU must show that the permitting, interconnection, or other circumstance caused the delay or insufficient supply and that:
•RCMU prudently managed portfolio risks, including, but not limited to, holding solicitations for RPS-eligible resources with outreach to market participants and relying on a sufficient number of viable projects to achieve RPS procurement requirements.
•RCMU sought to develop either its own eligible renewable energy resources, transmission to interconnect to eligible renewable energy resources, or energy storage used to integrate eligible renewable energy resources. •If the cause for delay or insufficient supply was foreseeable, RCMU procured an appropriate minimum margin of procurement above the level necessary to comply with the RPS to compensate for foreseeable delays or insufficient supply. •RCMU took reasonable measures to procure cost-effective distributed generation and allowable unbundled RECs.
3. Unanticipated Curtailment
Unanticipated curtailment of eligible renewable energy resources, if the delay of timely compliance would not result in an increase in greenhouse gas emissions.
4. Transportation Electrification
Unanticipated increase in retail sales due to transportation electrification. To utilize this condition, RCMU must consider whether transportation electrification significantly exceeded forecasts in RCMU's service territory based on the best and most recently available information available to RCMU. Further, RCMU must take reasonable measures to procure sufficient resources to account for unanticipated increases in retail sales due to transportation electrification.
Section 10. COST LIMITATION
A. Cost Limitation Rule
10 Pursuant to PUC § 399.30(d)(2)(B), and consistent with Section IX of the RPS Enforcement Program, the Rancho Cucamonga City Council shall establish a cost limitation on the procurement expenditures for all eligible renewable energy resources used to comply with the RPS and the Rancho Cucamonga City Council shall set this limitation at a level that prevents disproportionate rate impacts to RCMU’s ratepayers.
If the cost limitation is insufficient to support the projected costs of meeting RCMU’s RPS targets, as specified above, RCMU may refrain from executing any further contracts for eligible renewable energy resources, beyond what can be procured within the cost limitation.
B. Relevant Factors and Findings
To determine what cost limitation is necessary to prevent disproportionate rate impacts, the Rancho Cucamonga City Council has considered the following factors and made the following findings:
1.Economic Hardship
Stimulating and growing the City of Rancho Cucamonga’s economy is important to the City with sales tax, being the primary revenue source for the City’s General Fund. RCMU’s electric rates should not cause an economic hardship for the local retail and manufacturing businesses and the residents that RCMU serves.
Finding: The Rancho Cucamonga City Council finds that RCMU’s cost limitation must be structured and set at a level that avoids harm to the local economy and limits impacts on economically vulnerable residents.
2.Unemployment
Maintaining competitive electric rates is essential to keeping local businesses from relocating to other parts of the state or from leaving the state altogether. RCMU works with businesses to make sure rates are kept at a level that helps them stay viable.
Finding: The Rancho Cucamonga City Council finds that RCMU’s cost limitation must be set at a level that does not negatively impact local employment rates or customer rate impacts that would lead to RCMU’s electric rates to exceed those of Southern California Edison.
3.Customer Make-up
RCMU’s customer make up is split about 66% Residential and 33% Commercial and Industrial.
However, the revenue based on load is about 10% residential and 90% Commercial and Industrial, so cost limitations must be established in order to not cause broad economic harm should businesses and commerce leave.
Finding: The Rancho Cucamonga City Council finds that RCMU’s cost limitation must be designed so that it does not overly burden any one particular customer class.
11 4.Improving the Financial Condition of RCMU
Five equally important inter-relationship factors between the financial strength and health of RCMU and the City of Rancho Cucamonga includes: (1) Cost Recovery Framework Within Service Territory; (2) Willingness to Recover Costs with Sound Financial Metrics; (3) Management of Risk; (4) Rate Competitiveness; and (5) Financial Strength, to measure the credit worthiness of the utility.
Finding: The Rancho Cucamonga City Council finds that RCMU’s cost limitation should be set at a level that does not threaten the long-term financial stability of RCMU by reducing its existing customer base and that RCMU’s cost limitation is also set at a level that allows RCMU to comply
C. Cost of Full Compliance
In order to estimate the cost of full compliance for Compliance Period 4, RCMU relies on the cost data reported in the 2024 Padilla Report, Costs and Cost Savings for the RPS Program, published May 2024 (“Padilla Report”).1 The Padilla Report includes aggregated cost information for the CPUC-jurisdictional entities. Based on the Padilla Report, RCMU assumes that the cost of a PCC1 electricity product is $43/MWh in 2021, $62/MWh in 2022, and $58/MWh in both 2023 and 2024. Further, based on the Padilla Report, RCMU assumes that the cost of a PCC3 electricity product is $12/MWh2 for 2021-2022 and $10 for 2023-2024. Based on the relative complexity and reduced availability associated with PCC2 electricity products, RCMU assumes that full compliance would be based on maximizing PCC3 procurement (10%) and filling in the remaining 90% with PCC1 procurement. The following table shows the forecasted cost of full compliance based on these assumptions.
PCC Formula for Determining Cost Compliance Cost
PCC1 90% x 27,260 RECs x $43/REC = $1,054,9622021
PCC3 10% x 27,260 RECs x $12/REC = $32,712
PCC1 90% x 36,097 RECs x $62/REC = $2,014,2122022
PCC3 10% x 36,097 RECs x $12/REC = $43,316
PCC1 90% x 40,753 RECs x $58/REC = $2,127,3062023
PCC3 10% x 40,753 RECs x $10/REC = $40,753
2024 PCC1 90% x 46,420 RECs x $58/REC = $2,423,124
1 Available at: https://www.cpuc.ca.gov/-/media/cpuc-website/industries-and- topics/documents/energy/rps/2024/2024-padilla-reportvfinal.pdf. 2 For PCC3 Electricity Products, Cerritos utilized the contract price data for Bear Valley Electric Service, which procures through REC-only contracts that approximate PCC3 transactions.
12 PCC3 10% x 46,420 RECs x $10/REC = $46,420
Total = $7,782,805
Based on the forecasted costs from the Padilla Report table above and RCMU’s expenditures from executed contract resources in order to meet or exceed the established requirements in this RPS Procurement Plan, RCMU estimates the cost of full compliance with the RPS Procurement Requirements for Compliance Period 4 to be between $7.8 million to $ 8.0 million.
D. Explanation of How RCMU Developed a Cost Limitation Methodology and How Such Cost Limitation Prevents Disproportionate Rate Impacts.
In developing its Cost Limitation methodology, RCMU has reviewed the potential impacts of the factors, findings, and considerations described above. Specifically, RCMU has evaluated what would occur if RCMU expended the amount of the full cost of compliance and estimated the impacts to customers on a rate basis and total bill basis under different scenarios.
RCMU staff have determined that setting the Cost Limitation using the methodology described below is necessary to ensure that RCMU’s cost limitation must be set at a level that does not negatively impact the City’s local economy, employment rates or customer rate impacts that would lead to RCMU’s electric rates exceeding those of Southern California Edison, which will have disproportionate rate impacts on its customers and the community.
E. Adoption of Methodology for Calculating Cost Limitation for Compliance Period.
The Rancho Cucamonga City Council determines that in order to avoid disproportionate rate impacts for Compliance Period 4 and beyond, the City Council hereby establishes a cost limitation as follows:
In no event shall the purchase of renewable energy volumes required to ensure the City’s compliance with applicable RPS procurement plan result in customer rate impacts that would lead to RCMU’s electric rates to exceed those of Southern California Edison.
To avoid disproportionate rate impacts for Compliance Period 4, during the annual budget approval process, RCMU will calculate the revenues less expenses (before the incremental cost of procuring electricity products to satisfy the RPS requirements) and identify the funds available from such amount to concurrently satisfy the applicable RPS requirement, maintain prudent reserves, and offer competitive rates set at a level that will avoid the loss of commercial and industrial customers. RCMU shall not be obligated to expend funds on RPS procurement greater than the Cost Limitation amount.
Should conditions change such that any of these criteria cannot be met, including procurement requirements that have exceeded cost limitations, staff will return to the City Council with an adjusted Procurement Plan for consideration that would include revised cost limitations that shall rely on elements consistent with PUC § 399.15(c)(1)-(3) and with pertinent policies and rules established by the City Council.
13 F. Adoption of Cost Limitation for Compliance Period Pursuant to the methodology for calculating the cost limitation for Compliance Period 4, established above, the estimated annual cost limitation calculation for Compliance Period 4 is determined to be a not to exceed amount of $2,000,000 average annually.
Plan
Version
Date Action Change
1 12/21/2011 RPS Procurement Plan created
2 11/20/2013 Removed grandfathered resources, updated RPS % and provided details on optional compliance measures, including cost limitations 3 12/2/2020 Updated RPS % for 2021-2030 and provided details on SB 350 and SB 100, optional compliance measures, including cost limitations 4 12/18/2024 Updated forecast data and revised cost limitation methodology
DATE: December 18, 2024
TO: Mayor and Members of the City Council
FROM: John R. Gillison, City Manager
INITIATED BY: Matt Marquez, Director of Planning and Economic Development Jennifer Nakamura, CNU-A, Deputy Director of Planning
SUBJECT: Consideration of Second Reading and Adoption of the Following:
ORDINANCE NO. 1035
AN ORDINANCE OF THE CITY OF RANCHO CUCAMONGA,
CALIFORNIA, APPROVING A MUNICIPAL CODE AMENDMENT TO
AMEND SECTION 17.62.040 OF CHAPTER 17.62 OF ARTICLE IV OF TITLE 17 OF THE MUNICIPAL CODE, CONCERNING THE
DISCONTINUANCE OF NONCONFORMING USES, AND FINDING AN
EXEMPTION FROM CEQA UNDER SECTION 15061(B)(3) OF THE
CEQA GUIDELINES (CITY)
RECOMMENDATION:
Staff recommends the City Council waive full reading and adopt Ordinance No. 1035 BACKGROUND:
The introduction and first reading of the above-entitled Ordinance was conducted at the Regular Council meeting of December 4, 2024.
Votes at first reading: AYES: Michael, Hutchison, Scott, Stickler. ABSENT: Kennedy ANALYSIS:
Please refer to the December 4, 2024, City Council staff report.
FISCAL IMPACT:
Please refer to the December 4, 2024, City Council staff report.
COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:
Please refer to the December 4, 2024, City Council staff report.
ATTACHMENTS:
Attachment 1 – Ordinance No. 1035
Attachment 1
ORDINANCE NO. 1035
AN ORDINANCE OF THE CITY OF RANCHO
CUCAMONGA, CALIFORNIA, APPROVING A
MUNICIPAL CODE AMENDMENT TO AMEND SECTION
17.62.040 OF CHAPTER 17.62 OF ARTICLE IV OF
TITLE 17 OF THE MUNICIPAL CODE, CONCERNING
THE DISCONTINUANCE OF NONCONFORMING USES,
AND FINDING AN EXEMPTION FROM CEQA UNDER
SECTION 15061(B)(3) OF THE CEQA GUIDELINES
The City Council of the City of Rancho Cucamonga does ordain as follows:
SECTION 1. Recitals.
A. The City of Rancho Cucamonga (the “City”), has prepared a Municipal Code Amendment, as described in the title of this Ordinance. Hereinafter in this Ordinance, the subject Municipal Code Amendment is referred to as “the amendment”.
B. The City is a municipal corporation, duly organized under the constitution and laws of the State of California.
C. As shown in Exhibit A to this Ordinance, the amendment proposes to amend Section 17.62.040 of Chapter 17.62 of Article IV of Title 17 of the Municipal Code concerning the discontinuance of nonconforming uses.
D. On the November 13, 2024, the Planning Commission of the City of Rancho Cucamonga conducted a noticed public hearing with respect to the amendment and, following the conclusion thereof, adopted Resolution No. 2024-__ recommending that the City Council of the City of Rancho Cucamonga adopt said amendment.
E. On [month] [day], 2024, the City Council of the City of Rancho Cucamonga conducted a noticed public hearing on the amendment and concluded said hearing on that date.
F. All legal prerequisites to the adoption of this Ordinance have occurred.
SECTION 2. Findings. Based upon the substantial evidence presented to this Council during the above-referenced public hearing, this Council hereby finds and concludes that the changes proposed to Section 17.62.040 (Discontinuation of Nonconforming Use) in the amendment are consistent with the Development Code and the General Plan’s goals, policies and implementation programs. Pursuant to Section 17.22.040(C) of the Municipal Code, amendments to the Municipal Code “may be approved only when the City Council finds that the amendment[s] are consistent with the General Plan goals, policies, and implementation programs.” The proposed amendment is consistent with the following General Plan Land Use goals and policies:
•Land Use Goal LC-3: A fiscally sound and sustainable City. •Land Use Policy LC-3.10: Encourage businesses and development that will support and/or enhance the operations of existing businesses when complimentary to the General Plan Vision while discouraging new development and businesses that will have detrimental impacts to existing businesses and development.
Ordinance – Page 2 of 4
5 2
6 1
This Ordinance would extend the period of discontinued use before a legal nonconforming use is terminated for industrial, manufacturing, and processing uses from 180 days to 365 days. Many of these uses have become non-conforming uses throughout the City as the City has amended its Development Code and General Plan to better conform to the needs of residents and businesses, including the development of more housing to meet the City’s regional housing needs. Based on input from brokers, developers, and property owners, these uses are unique in that the period of time to secure a tenant in buildings intended for such uses can require up to a year. City staff has not heard this concern from the owners of properties operating other types of uses. The City Council intends to avoid the unintended consequence of an owner of property formerly zoned for industrial, manufacturing, or processing uses losing the protection of a legal nonconforming status while it is actively seeking a new tenant to operate such a legal non- conforming use.
SECTION 3. CEQA. The proposed amendment is exempt from the requirements of the California Environmental Quality Act (“CEQA”) and the City’s local CEQA Guidelines pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the proposed amendment, revising the requirements related to the discontinuance of nonconforming uses, will have a significant effect on the environment. The proposed amendment is an administrative process of the City that will not result in direct or indirect physical changes in the environment. The City Council has reviewed the administrative record concerning the proposed amendment and the proposed CEQA determination, and based on its own independent judgment, finds that the amendment set forth in this Ordinance is not subject to, or exempt from, the requirements of the CEQA and the State CEQA Guidelines pursuant to CEQA Guidelines Section 15061(b)(3).
SECTION 4. The City Council hereby amends Section 17.62.040 (Discontinuation of Nonconforming Use) of Chapter 17.62 (Nonconforming Uses and Structures) of Article IV (Site Development Provisions) of Title 17 (Development Code) of the Rancho Cucamonga Municipal Code as shown in Exhibit A of this Ordinance, attached hereto and incorporated herein by this reference.
SECTION 5. Severability. The City Council declares that, should any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the 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 adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
SECTION 6. Enforcement. Neither the adoption of this Ordinance nor the repeal of any other Ordinance of this City shall in any manner affect the prosecution for violations of ordinances, which violations were committed prior to the effective date hereof, nor be construed as a waiver of any penalty or the penal provisions applicable to any violation thereof.
SECTION 7. Publication. The City Clerk shall certify to the adoption of this Ordinance and shall cause it to be published in the manner required by law.
Ordinance – Page 3 of 4
5 2
6 1
PASSED, APPROVED, AND ADOPTED this ____ day of __________, 2024. _____________________________________
Dennis Michael
Mayor
I, JANICE REYNOLDS, City Clerk of the City of Rancho Cucamonga, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Rancho Cucamonga held on the __ __ day of ______________, 2024, and was finally passed at a regular meeting of the City Council of the City of Rancho Cucamonga held on the ____ day of ______________, 2024, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAINED: COUNCILMEMBERS:
ATTEST:______________________________
City Clerk
Ordinance – Page 4 of 4
EXHIBIT A
Amendments to Title 17, Article IV (Site Development Provisions), Chapter 17.62 (Nonconforming Uses and Structures)
Amended Section:
•Section 17.62.040 (Discontinuation of Nonconforming Use)
17.62.040 Discontinuation of nonconforming use.
Whenever a nonconforming use has been replaced by a conforming use or has been discontinued for a continuous period of 180 days or more, the nonconforming use shall not be reestablished, and the use of the building/structure or property thereafter shall conform with the current regulations for the district in which it is located, provided that this section shall not apply to nonconforming dwelling units. Notwithstanding the foregoing, the period of continuous discontinued use shall be extended to 365 days or more for industrial, manufacturing, and processing uses, as those uses are defined in section 17.32.020 of chapter 17.32 of this code.
DATE:December 18, 2024
TO:Mayor and Members of the City Council
President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Matt Burris, Deputy City Manager
Zack Neighbors, Director of Building and Safety Services Jason Welday, Director of Engineering Services Department SUBJECT: Public Hearing for Consideration of Resolution No. 2024-104, a Resolution of the City of Rancho Cucamonga, California, Establishing the Rates for the Impact Fees Associated with Fire Protection, Park, Community and Recreation Center, Library, Animal Center, Police, and Transportation Facilities; Adopting the Impact Fee Nexus Studies In Support of the Foregoing Impact Fees, Including Adopting Capital Improvement Programs as part of the Nexus Studies, and Making a Determination of Exemption Under CEQA; and Consideration of First Reading of Ordinance No. 1034, to be Read by Title Only and Waive Further Reading, Adding Chapter 3.80 to the Rancho Cucamonga Municipal Code, Establishing a Development Impact Fee for Fire Impacts of Residential and Business Development, and Making a Determination of Exemption under CEQA. (RESOLUTION NO. 2024-104)
(ORDINANCE NO. 1034) (CITY/FIRE)
Staff Recommendation is to Cancel the Current Public Hearing and to Re -Notice a New Hearing in Early 2025.
REVISION:
As part of the City’s outreach on this item, the staff met with representatives of the Building Industry of America (BIA) and several developers actively working in the City. BIA and the developers have asked for clarifying information related to the proposed adjustments to the Transportation Development Impact Fee schedule, the Non-Transportation Development Impact Fees, and Nexus Studies.
RECOMMENDATION:
Staff recommends the City Council: 1) Table the current item; 2) Cancel the continued public hearing from December 4, 2024; 3) Continue to work with the BIA and development community on their concerns; 4) Re-evaluate and adjust the Nexus Studies if needed; and 5) Re-notice the Development Impact Fees after January 1, 2025, for a new public hearing.
ATTACHMENTS:
None.
DATE: December 18, 2024
TO: Mayor and Members of the City Council
FROM: John R. Gillison, City Manager
INITIATED BY: Julie A. Sowles, Deputy City Manager of Community Programs Linda A. Troyan, MMC, City Clerk Services Director
SUBJECT: Review of Appointments to City Council Subcommittees and Appointments to Local and Regional Agency Boards and Affiliations. (CITY)
RECOMMENDATION:
Staff recommends that the City Council review the attached list of appointments to committees and other governmental agencies and update as necessary.
BACKGROUND:
On a regular basis, the City Council reviews the list of appointments to various standing committees and other governmental agencies, and updates the list when needed. Pursuant to prior City Council action, there is an automatic designation of the Mayor, Mayor Pro Tem or remaining Council Members as automatic alternates to any Committee or Subcommittee when one or more of the appointees are unable to attend. This ensures that the Committee or Subcommittee can continue to hold a scheduled public meeting without interruption.
The attached is a list of the committees and the current appointment(s).The listing is updated to reflect current active City Council Standing Subcommittees and Community Organizations and Regional Agencies. The West Valley Mosquito and Vector Control District has been added to the attached Appointments Listing for the appointed position of Trustee to complete the remainder of a four-year term through January 2026 by a member of the City Council.
ANALYSIS:
It is recommended that the City Council review the list of current committees and other governmental agency appointments and update the list as necessary. Upon receipt of an updated list, City Staff will notify any outside agencies that might be affected.
FISCAL IMPACT:
None.
COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:
Continue to work together and cooperatively with staff and all stakeholders to help ensure and advance the quality of life for the community.
ATTACHMENTS:
Attachment 1 – Appointments Listing
Revised by Staff on January 19, 2023
City of Rancho Cucamonga
City Council Subcommittees and Appointments to Local and Regional Agency Boards and Affiliations
(Effective 1/18/2023)
CITY COUNCIL STANDING SUBCOMMITTEES
The Council has the following subcommittees on which two Council Members serve to consider assigned areas of City programs/functions, provide feedback to staff, and make recommendations to the full City Council on related policy matters and Commission/Foundation appointments.
These committees meet on an as-needed basis throughout the year.
Community Services Subcommittee
Area of Responsibility: Park and Recreation matters, Quake Stadium usage, construction of park and recreation facilities, and programs.
Committee member(s): Kristine Scott and Ashley Stickler
Community Development/Historic Preservation Subcommittee Area of Responsibility: Planning/Historic Preservation Commission appointments.
Committee members: L. Dennis Michael and Lynne Kennedy
Library Subcommittee
Area of Responsibility: Library programs and services as well as Library Board of Trustees appointments.
Committee members: Kristine Scott and Lynne Kennedy
Public Works Subcommittee
Area of Responsibility: Transportation, traffic, parking, capital improvements, and public works projects.
Committee members: Ryan Hutchison and Lynne Kennedy
Economic Development Marketing Subcommittee
Area of Responsibility: Marketing of the City.
Committee members: Lynne Kennedy and Ryan Hutchison
Technology & Communications Subcommittee
Area of Responsibility: Technology and methods of communication.
Committee members: Lynne Kennedy and Ashley Stickler
Community Parks and Landscape Citizen’s Oversight Committee Area of Responsibility: The Committee has oversight of LMD’s 1, 2, 4 -R, 6-R, and 7, SLD 2, PD-85. Conduct interviews and recommends appointments to the City Council.
Committee members: Kristine Scott, Ashley Stickler
ATTACHMENT 1
Revised by Staff on November 7, 2024
APPOINTMENTS TO COMMUNITY ORGANIZATIONS AND REGIONAL AGENCIES
These appointments involve Council Members representing the City to community organizations and regional agencies. Some organizations ask for the designation of a Delegate and an Alternate.
City Selection Committee
Area of Responsibility: The City Selection Committee is a committee, established by California Government Code 50275, which meets in even years to appoint Mayors and Council members to represent the city perspective on regional organizations, such as San Bernardino County Local Agency Formation Commission (LAFCO) and the CAL -ID Remote Access Network Board.
The City Selection Committee consists of the Mayor of each City in the County. In San Bernardino County, the City Selection Committee meets every two years or more frequently if required to make a selection for one of the organizations.
Required Delegate: L. Dennis Michael (Mayor)
ConFire Board of Directors
Area of Responsibility: Provide the items necessary and appropriate for a joint centralized public safety communications system and a cooperative program of fire - related functions (i.e. grants, emergency operations command) for the mutual benefit of the members.
The board meets twice a year: May/June & Nov/Dec; and may schedule meetings as needed throughout the year. The time depends on the availability of the members.
Delegate: Lynne Kennedy Alternate: Kristine Scott
Omnitrans
Area of Responsibility: Omnitrans is a Joint Powers Agency that coordinates the public transit services of the County of San Bernardino and its 15 member cities.
A 20 member Board of Directors governs Omnitrans, which includes the five County Board of Supervisors and representatives from the member cities. There are no specific terms to serve on the Board; it is at the discretion of each City as to who represents the City on the Omnitrans Board of Directors as Delegate and Alternate.
The board meets on the first Wednesday of every month at 8:00 a.m.
Delegate: Kristine Scott Alternate: Ashley Stickler
Revised by Staff on November 7, 2024
Rancho Cucamonga Chamber of Commerce
Area of Responsibility: Provides liaison between the Rancho Cucamonga Chamber of Commerce and the City of Rancho Cucamonga in coordinating projects and items of mutual interest.
The board meetings take place the last Wednesday of every month at 8:00 a.m.; Quarterly City and Chamber meetings also take place between 8 a.m. and 9 a.m.
Delegate: Kristine Scott Alternate: Ryan Hutchison
San Bernardino County Transportation Authority /San Bernardino Council of Governments (SBCOG)
Area of Responsibility: Serving more than 2.1 million residents of San Bernardino County, the SBCTA is responsible for cooperative regional planning and furthering an efficient multi-modal transportation system countywide.
The purpose of San Bernardino Council of Governments (SBCOG) is to speak with a collective voice on important issues that affect its member agencies. Representatives from 24 cities and the San Bernardino County Board of Supervisors have a seat on the SBCOG (SANBAG) Board of Directors.
The Board meets on the first Wednesday of every month at 10:00 a.m.
Delegate: L. Dennis Michael Alternate: Lynne Kennedy
Solid Waste Advisory Task Force
Area of Responsibility: Carry out the responsibilities mandated by the State of California through AB 939. SWAT may also consider and make recommendations to the County on such other solid waste related matters as they may deem appropriate.
Meetings take place twice a year (April & Sept.) on the third Wednesday of the month at 1:30 p.m.
Delegate: Ryan Hutchison Alternate: Linda Ceballos (staff)
Maloof Foundation
Area of Responsibility: The mission of the Sam and Alfreda Maloof Foundation for Arts and Crafts, a not -for-profit public benefit corporation, is to perpetuate excellence in craftmanship, encourage artists and make available to the public the treasure house the Maloofs lovingly created.
The Maloof Foundation meets the 1st Monday of every other month from 9:30 a.m. to 12:00 p.m.
Board Member: Ashley Stickler Alternate: John Gillison (City Manager)
Revised by Staff on November 7, 2024
Cucamonga Valley Water District’s Conservation Regulations Coalition
Area of Responsibility: To review and analyze the potential regional implications of the proposed statewide water use regulations, develop policy considerations, and coordinate advocacy efforts
The Board meets on an as-needed basis throughout the year.
Board Member: Ashley Stickler
West Valley Mosquito and Vector Control District
Area of Responsibility: To govern the West Valley Mosquito and Vector Control District knowledgeably and effectively. Trustees are highly dedicated to this community service. Trustees are appointed for a fixed term of four (4) years.
The Board Meets monthly on the fourth Tuesday of the month at 11:30 AM.
Trustee: Elisa C. Cox, Assistant City Manager
Revised by Staff on November 7, 2024
Rancho Cucamonga EIFD (Enhanced Infrastructure Financing District) Public Financ ing Authority
Purpose. The Public Financing Authority is a body formed and operating under Government Code Section 53398.50 et seq. The primary purpose of the Authority is to accelerate the financing of authorized public improvements.
The members and alternate members of the governing body of the Public Financing Authority shall be duly appointed by the taxing entities participating in the Public Financing Authority, which governing body shall be known as the Board of Directors. The Board of Directors is comprised of two members of the City of Rancho Cucamonga City Council, one member of the Rancho Cucamonga Fire Protection District Board of Directors, and two public members jointly selected by the City Council and Board.
Board Members Representing the City:
L. Dennis Michael
Kristine Scott
Linda Daniels
Alternate: Ryan Hutchison
Board Members Representing The Fire Board:
Lynne Kennedy
Francisco Oaxaca
Alternate: Ashley Stickler
Alternate Member. In the absence of a member’s attendance at a meeting of the Board of Directors, an alternate member appointed by a participating taxing entity shall have all of the rights and privileges as a member during such meeting.
Regular meetings of the Board of Directors are held the first Tuesday of the month of February, May, August, and November at 6:00 pm.