crucially, prepare and implement a plan that will assist with maximizing diversion and “right size” services to reduce customer costs.
The term of the Agreement will be 25 years. This is in line with agreements in the cities of Camarillo, Fillmore, Ojai, Thousand Oaks, and Ventura, all of which have terms that, with options, extend for 25 years. The difference here is that the Santa Paula agreement does not have options; there is a set term. But unlike “option cities,” Athens will have a SB 1383 program and competitive rates with additional services. The term allows Athens to amortize or spread costs over time. Athens will phase-in rates over time for SB 1383 implementation. The Agreement provides for a fixed
6.9% annual increase for years 2-6 and a fixed 4.0% increase for year 7. To put this into context, on May 23, 2022, the City of Carpinteria reported “CalRecycle estimated an average of 13-percent increase to solid waste rates statewide to implement SB 1383.” The rate adjustments here are well below this estimate.
After year 7, rates will be annually adjusted by CPI—which is how rates are currently adjusted and how adjustments work in Thousand Oaks, the only other jurisdiction in Ventura County with an active SB 1383 program. Unlike the current agreement which had no annual rate cap, CPI adjustments are now capped at 7%.2
The Agreement includes a rate review process and methodology designed to bring the parties to together to meet and confer if residential and commercial rates in the City are above the 50th percentile as established by any government entity providing similar services within Ventura County.
Athens has every intention to service the City in a first class manner. We want to exceed expectations. We are members of the Santa Paula community and look forward to continue to provide top-notch programs, great customer service, and keep the City on the forefront of environmental compliance.
Thank you,
/s/ Rondi Guthrie
Rondi Guthrie
Vice President
Athens Services
cc: Cesar Torres, Athens Services
Gary Clifford, Athens Services
2 Other jurisdictions may have adjustment formulas where a portion of CPI is used to adjust rates. However, formulas that use a portion of CPI typically have other rate adjustment elements to cover changes in disposal and/or transportation costs. In Santa Paula, only CPI will be considered. In addition, annual rate adjustments in other cities depend on the needs and location of the City. For example, the cities proximate to disposal facilities may receive host feesfrom the hauler-owned or controlled facilities and haulers generate separate income from tipping fees from waste disposed or processed at those facilities. The separate income streams may affect how annual adjustments on collection rates operate. Finally, the value of the adjustment formula only goes so far—what matters is the base rates that the formula applies to. 288
To: Honorable Mayor and Members of the City Council
From: Jonathan Royas, Management Analyst
Subject: CLEAN POWER ALLIANCE (CPA) FEASIBILITY STUDY
Date: August 3, 2022
Agenda Item: 11.B
CITY OF SANTA PAULA
MEMORANDUM
RECOMMENDATION:
Staff recommends the City Council:
1. Approve resolution 7416 Amending the City's Operating and CPI budget for FY 21/22, authorizing a $10,000, one-time cost, required feasibility study to support the City's inclusion in the Clean Power Alliance (CPA) by decreasing the ARPA Employee Enhancements allocation and increasing ARPA professional services allocation.
BACKGROUND:
On June 1, 2022, the City Council received a presentation from staff and Ted Bardacke, Executive Director for Clean Power Alliance (CPA), in an effort to determine if the City of Santa Paula would be interested in joining the CPA.
CPA is the largest Community Choice Aggregator (CCA) in California, covering 32 agencies in Los Angeles and Ventura counties. CPA is a Joint Powers Authority (JPA) and each member agency has a representative on the Board of Directors. The Board of Directors determines the programs, rates, and policies of the JPA with guidance from Clean Power Alliance staff.
Current CPA program offerings include: solar plus clean backup power for critical member agency facilities; rebates for publicly accessible electric vehicle chargers; demand response incentives for residential and commercial smart technologies; and community solar for customers in disadvantaged communities. CPA handles all customer billing and administration for its members though each member’s governing board determines its agency’s default renewable energy tier, relating to customer rates. CPA currently offers three energy tier options: Lean Power (which is 40 percent clean energy, similar to SCE’s base product), Clean Power (which is 50 percent clean energy), and 100 percent Green Power (100 percent renewable energy).
ANALYSIS:
On June 1, 2022, at the conclusion of the presentation to Council, staff was directed to:
1. Determine where the require one-time cost of $10,000 would come from to cover the feasibility study needed to support the City's inclusion in the Clean Power Alliance (CPA); and 289
2. Further investigate the risks and impacts to the City and residents in joining the CPA.
Feasibility Study
At the conclusion of the 2021/2022 fiscal year, our Finance Director/City Treasurer determined the City has $62,681 dollars in American Rescue Plan Act (ARPA) funds available from Tranche 1 which were allocated for Employee Enhancements. As those funds were not fully utilized, they are available for reallocation. As a result, should Council wish to move forward with the feasibility study, a budget expenditure and revenue adjustment from ARPA Tranche 1 funds could cover this cost.
Risks and Impact to the City
Clean Power Alliance’s combination of low-risk with cooperative local control has made it a popular option among local agencies, including Ventura County cities such as Ojai, Camarillo, Oxnard, Ventura, Thousand Oaks, Simi Valley and Moorpark.
Rates
Individual customers and the City both have the option of choosing lower clean energy content or opting out of the CPA program altogether and returning to paying SCE for both generation and delivery costs. An example of this opt out ability, and one the City would most likely take advantage of, would be the special street light rate the City currently receives from Southern California Edison (SCE). In staff's further conversation's with the CPA, they confirmed they would not be able to match the special rate we receive from SCE for street lights, similar to those received by other municipalities in Ventura County. Should Council wish to move forward with joining the CPA, the City would simply opt-out of those accounts which service City street lights resulting in no additional financial impact to the City beyond our current costs.
The same holds true for any additional accounts staff may identify during the transition process.
In addition, in July 2022, the CPA implemented its annual FY 22/23 rates, resulting in bills for CPA customers being similar to January 2022 levels, and competitive with SCE's base rates as demonstrated below.
Average Customer Bill Comparison to SCE (% Discount or Premium) Customer Class Lean Power Clean Power 100% Green Power
Residential -1.0% 0.0% 3.0%
Residential - CARE -1.0% 0.0% 0.0%
Small/Medium
Business
-1.0% 0.0% 3.0%
While Council does not have to make a decision now on which energy option would be best for residents and the City at this time, the percentages above are examples of what the rates would look like based on the FY 22/23 rates CPA recently approved. The three options are 290
explained below:
Option 1 - Should Council decide to select the CPA Lean Power option, rates for residents and City accounts would be on average 1.0% lower than SCE's current rates. The Lean Power option provides 40% carbon free content and access to local programs. Lean power is the most affordable way to reliable, clean power.
Option 2 - Should Council decide to select the CPA Clean Power option, rates for residents and City accounts would be on average at parity, or 0.0% different than SCE's current rates.
The Clean Power option supports building a cleaner future with 50% clean power (40% renewable content and 10% hydroelectricity) and receives competitively priced green energy.
Option 3 - Should Council decide to select the CPA Green Power option, rates for residents and City accounts would be on average 3.0% higher than SCE's current rates. This option would provide 100% renewable content from wind, solar and geothermal sources. One benefit to selecting this option is that all customers currently on SCE-CARE would not see a 3.0% rate increase and would receive 100% Green power at the Clean Power rate or 0% increase to their monthly bills. All other customers, including the City's accounts, would see a roughly 3% increase in energy costs. This option would have fiscal impacts to the City which staff would have to further evaluate based on our current energy usage.
Reliability
Resource Adequacy (RA) is a program of the California Public Utilities Commission (CPUC) to ensure reliable electric service in California. This program requires Clean Power Alliance and other electricity providers to purchase enough power to meet customers' anticipated needs, plus reserves that can be called upon if they are needed in an emergency. Clean Power Alliance is required to meet the same resource adequacy and reliability standards as investorowned utilities such as SCE.
In addition, CPA is also regulated by the California Independent System Operator (CAISO), one of the largest independent system operators in the world, delivering 300 million megawatthours of electricity each year and managing about 80% of California's electric flow. The California Legislature created the CAISO in 1998 as part of the state restructuring of electricity markets. The legislature was responding to Federal Energy Regulatory Commission (FERC) recommendations following the passage of the federal Energy Policy Act of 1992, which removed barriers to competition in the wholesale generation of electricity business. FERC regulates the CAISO because interstate transmission lines fall under the jurisdiction of federal commerce laws.
Risk
The JPA format relieves the member agencies from any liability to their general funds. The Board of Directors determines the programs, rates, and policies of the JPA with the guidance from Clean Power Alliance staff. CPA handles all customer billing and administration for its members though each member’s governing board determines its agency’s default renewable energy rates.
Next Steps
291
Should the feasibility study support the City’s inclusion in the CPA, Clean Power Alliance would then discuss with the City its next steps. These would include the City Council officially declaring its interest in joining Clean Power Alliance in late 2022, adopting an ordinance to join the JPA, and then developing an outreach plan. The majority of outreach to the community and customers would be done by Clean Power Alliance itself with a goal of opting in all customers citywide in 2024.
Additionally, staff has attached as Exhibit A, a draft CPA Membership Application Letter which outlines potential next steps.
STRATEGIC PLAN:
This agenda item does not directly address the strategic goals within the City’s two-year adopted Strategic Plan.
FISCAL IMPACTS:
Feasibility Study
A $10,000, one-time cost, would be required to develop a feasibility study. Should Council direct staff to proceed in moving forward with these efforts, the attached budget resolution may be approved, which reallocates $10,000 of ARPA funds remaining from Employee Enhancements (GL 412-5-7501-199) to Clean Power Alliance (GL 412-5-0511-209). Other than staff time, there will be no direct fiscal impact to the City’s General Fund at this time.
Future Costs: Risks and Impact to the City
There may be potential cost increases to City utility expenses due to this change. Staff understands almost all entities actually opt-out of CPA rates and retain SCE for street lighting because those rates cannot be matched at this time. Just as residents may opt out, the City may also choose to opt out.
OPTIONS:
1. Direct staff to perform additional research and return to Council. Doing so may jeopardize our ability to join the JPA at this time as the impact study needs to be performed in August to allow enough time for CPA to make a recommendation to their Board in September. Any further delay will result in the Board's consideration being moved to October which would be our last opportunity to join the JPA this year.
2. Direct staff not to pursue moving forward with CPA at this time.
ATTACHMENTS:
Exhibit A - CPA Draft Membership Application Letter.pdf Resolution_7416_Amending_The_City_s_Operating_and_CIP_Budget_for_FY2021-22.pdf 292
EXHIBIT A -
CPA Draft
Membership
Application
Letter
293
May 24, 2022
Dan Singer
City Manager
City of Santa Paula
970 Ventura St.
Santa Paula, CA 93060
Dear:
Clean Power Alliance (CPA) understands that the City of Santa Paula City Council is considering taking the required actions necessary for the City to join Clean Power Alliance before December 31st, 2022 so that customers in your city could begin enrollment in CPA in 2024. We welcome your interest and look forward to working together.
The process to join will involve several steps as outlined below.
1. Data gathering (begin immediately): Santa Paula will need to submit a Form 14-769, Community Choice Aggregator Non-Disclosure Agreement, and Form 14-770, Community Choice Aggregation Service Declaration, to Southern California Edison (SCE) authorizing SCE to supply energy usage data for your community for the most recent period available. CPA will assist you with this request to SCE.
2. Applicant Impact Study (completed by the end of August): CPA will conduct an analysis of the impact to existing CPA customers should Santa Paula join. The study will be at a fixed fee cost of $10,000, payable by the City of Santa Paula. The study will determine what, if any, conditions may apply to Santa Paula’s membership and will include the following elements:
a. Impact on CPA peak load and total generation
b. Financial analysis including net benefits compared to additional procurement, administrative, financing, implementation costs, and any other financial impacts.
c. Impacts to renewable energy and greenhouse gas content of CPA’s overall portfolio.
d. Sensitivity analysis of various market scenarios.
e. Summary of expected impacts and recommended mitigation measures, if needed.
3. CPA Board considers Applicant Study (considered at the September 1, 2022 CPA Board meeting): The CPA Board will decide if Santa Paula should be invited to join the JPA and, if so, any special conditions that would apply. 294
4. Santa Paula adopts Ordinance to join CPA and adopts JPA Agreement (completed by end of November): Santa Paula adopts implementing ordinance and JPA agreement. Please note that the ordinance adoption requires two readings and that both votes must take place by the end of November.
5. Updated Implementation Plan and JPA amendment (considered at the December 1, 2022 CPA Board meeting): CPA Board votes to amend its JPA to include Santa Paula and to file an amended Implementation Plan with the CPUC to cover the addition of Santa Paula beginning in 2024. CPA may do the Implementation Plan Amendment inhouse or engage a consultant to prepare this filing. Depending on the results of the feasibility study and any subsequent conditions attached by the CPA Board to Santa Paula’s invitation to join CPA, Santa Paula and any other cities joining CPA in 2022 may be asked to share in the costs of preparing the Implementation Plan Amendment.
Please note that the process outlined above only applies to Santa Paula joining CPA during 2022. The process may look different in 2023 and a new impact analysis would be required at that time. If you agree with the terms outlined in this letter, please sign and return the attached Authorization to Proceed and CPA staff will begin conducting the impact study.
We look forward to working together through the process. If you have any additional questions please contact Karen Schmidt, Senior Advisor, Strategy, at (805) 798-1629 or at [email protected].
Sincerely,
Ted Bardacke
Chief Executive Officer
Enc: Authorization to Proceed Form
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RESOLUTION NO. 7416
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA PAULA, CALIFORNIA, AMENDING THE CITY’S OPERATING AND CIP BUDGET FOR FISCAL YEAR 2021/22.
SECTION 1: The City Council for the City of Santa Paula does resolve as follows:
A. The City Council adopted the Operating Budget and Capital Improvement program for Fiscal Year 2021/22 on June 23, 2021,
B. The Fiscal Year 2021/22 Budget revenues increased by $3.5 million in FY 21/22 due to additional funding made available by the American Rescue Plan Act (“ARP”),
C. The Council discussed various ways to allocate the ARP funds in a study session on May 5, 2021.
D. Previous budget allocation of $2,043,495 of ARP funds for Fiscal Year 2020/21 & FY 2021/22 was approved by Council via Resolutions 7342, 7347, 7351, 7366 and 7381.
SECTION 2: The City Manager, has proposed a budget adjustment as described in the Council report dated August 3, 2022 for Fiscal Years 2021/22 based on the determination by the City Manager that unspent Employee Enhancements allocation could be used to fund a study needed in order to join the Clean Power Alliance.
SECTION 3: The City Council has reviewed the proposed budget for use of a portion of the ARP funds and does hereby find the recommendation to be necessary and in the City’s best interest.
SECTION 4: The City of Santa Paula’s operating and CIP Budget for Fiscal Year 2021/22 is hereby amended as follows:
GENERAL LEDGER USE OF FUNDS DESCRIPTION CREDIT DEBIT
412-4-7501-199 Misc Exp – Employee
Enhancements
$ 10,000
412-5-0511-209 Professional Services $ 10,000
SECTION 6: The City Clerk will certify to the passage and adoption of this Resolution; will enter the same in the book of original Resolutions of said City; will make a minute of the passage and adoption thereof in the record of proceedings of the City Council of said City, in the minutes of the meeting at which the same is passed and adopted. 296
PASSED, AND ADOPTED, this 3rd day of August, 2022.
_____________________
Jenny Crosswhite, Mayor
ATTEST:
_________________________
Julie Latshaw, City Clerk
Approved as to form:
_______________________________
Monica Castillo, City Attorney
Approved as to content:
_______________________________
Dan Singer, City Manager
297
To: Honorable Mayor and Members of the City Council
From: Travis Walker, Chief of Police
Subject: ORDINANCE NO. 1319 REGULATING PUBLIC DRINKING AT MILL PARK Date: August 3, 2022
Agenda Item: 11.C
CITY OF SANTA PAULA
MEMORANDUM
RECOMMENDATION:
Introduce and waive the first reading of Ordinance No. 1319 entitled "An Ordinance of the City of Santa Paula, California, Amending Section 130.02 of the Santa Paula Municipal Code to Require a Permit to Drink Alcohol at Mill Park."
BACKGROUND:
The City of Santa Paula Municipal Code currently allows for the un-permitted consumption of alcoholic beverages and possession of open alcoholic beverage containers within Mill Park, a public place, while prohibiting said activity on all other public property and parks within the city unless authorized by a city or state.
ANALYSIS:
Santa Paula Municipal Code (SPMC) section 130.02 prohibits any person from drinking an alcoholic beverage or possessing an open container of an alcoholic beverage on public property, including all public parks, except for Mill Park. The allowance of alcohol consumption in this one public park has created permitting and enforcement challenges for staff and some frustration for members of the community. To help create citywide permitting and enforcement consistency, staff is requesting Council adopt an ordinance (Exhibit A) to amend SPMC 130.02 to remove Mill Park from the exempted locations to better regulate alcohol consumption at the park.
STRATEGIC PLAN:
Not Applicable
FISCAL IMPACTS:
Minimal costs associated with the installation of updated signage in and around the park.
Anticipated costs can be absorbed in the current Fiscal Year department budget.
OPTIONS:
298
1. Introduce and waive the first reading of Ordinance No. 1319 entitled "An Ordinance of the City of Santa Paula, California, Amending Section 130.02 of the Santa Paula Municipal Code to Require a Permit to Drink Alcohol at Mill Park."
2. Reject proposed Ordinance No.1319, which would allow drinking alcohol in Mill Park without a permit to continue.
ATTACHMENTS:
Exhibit A Ord 1319.pdf
299
ORDINANCE NO. 1319
AN ORDINANCE OF THE CITY OF SANTA PAULA,
CALIFORNIA, AMENDING SECTION 130.02 OF THE
SANTA PAULA MUNICIPAL CODE TO REQUIRE A
PERMIT TO DRINK ALCOHOL AT MILL PARK
The City Council of the City of Santa Paula does ordain as follows:
SECTION 1. The City Council finds and declares as follows:
A. Section 130.02 of the Santa Paula Municipal Code (SPMC) prohibits any person from drinking an alcoholic beverage or possessing an open container of an alcoholic beverage on public property, including public parks.
B. An exception to the general prohibition against drinking on public property is Mill Park, which posts signs indicating rules for drinking alcohol on the premises.
C. The City Council desires to amend SPMC Section 130.02 to remove Mill Park from the excepted locations in order to better regulate public drinking at the park.
D. The intent of the this Ordinance is to require the operators of events or facilities where drinking occurs on public property, including public parks, to obtain and comply with applicable city and/or state permits or licenses, thereby reducing the chance of public nuisances.
SECTION 2. Section 130.02 of the Santa Paula Municipal Code, entitled “Drinking In Public Places Unlawful,” is hereby amended to read as follows:
§ 130.02 DRINKING IN PUBLIC PLACES UNLAWFUL.
(A) Except as otherwise provided in this code, it is unlawful for any person to drink alcoholic beverage or possess an open container of any alcoholic beverage:
(1) Upon any street, sidewalk, pathway, parking lot,
highway, alley, or other public property:
(2) In any public school grounds or buildings,
bleachers or stadium thereon; or
(3) In any public park.
(B) The prohibitions in this section do not apply to:
(1) A group operating an organized event according to
the conditions of a permit by the city issued pursuant to 300
this code that allows consumption and possession of
alcoholic beverages; or
(2) An outdoor dining facility that serves alcoholic
beverages pursuant to the terms of a state license
and/or applicable city permit.
SECTION 3. This ordinance shall take effect thirty (30) days after its passage and adoption pursuant to California Government Code section 36937. Upon the effective date of this Ordinance, the provisions hereof shall supersede any inconsistent or conflicting provisions of the Santa Paula Municipal Code.
SECTION 4. If 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 5. The City Clerk shall certify as to the passage and adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of the adoption and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with Government Code Section 36933.
PASSED, APPROVED, AND ADOPTED this ____ day of August, 2022 Jenny Crosswhite, Mayor
ATTEST:
Julie Latshaw, City Clerk
APPROVED AS TO FORM:
Monica Castillo, Interim City Attorney
301
Santa Paula City Council Tentative Agenda Schedule
Updated 7/21/2022
DEPARTMENT MEETING
DATE Wednesday, August 17, 2022
Police 8/17/2022 Police Department Report
P&R Parks & Recreation Department Report
Admin District-Based Elections Public Hearing
Admin ARPA Tranche 2 Funding (or Special Meeting TBD)
Admin Contract Extension with Merchant McIntyre
Finance Bonding Rate for Harvest Project (1st approval) PD Drinking in Public Places – Ord 1319 2nd Reading
PW Ventura County Grand Jury Report
Wednesday, September 21, 2022
CDD 9/21/2022 Community Development Department Report
Admin Conflict of Interest Code Update
PW Prop 218 Protest Hearing for new trash rates
Admin Contract Extension with Merchant McIntyre
Finance Bonding Rate for Harvest Project (2nd approval)
STUDY SESSION TOPICS
P&R Oil Museum Options
Admin No Smoking Ordinance
Admin Homelessness Discussion
Admin Diversity, Equity and Inclusion Workshop
FUTURE AGENDA ITEMS
Admin SoCal Edison discussion on rates
CDD Franchise esVolta – Public Hearing
CDD Housing Element Adoption
CDD Inclusionary Housing DIF
P&R Teague Park Restroom Construction Contract
CDD Cannabis Processing Ordinance
Admin Election Districts Workshops
302