city of Chula Vista

File #: 16-0167    Name:
Type: Consent Item Status: Passed
In control: City Council
On agenda: 6/14/2016 Final action: 6/14/2016
Title: RESOLUTION NO. 2016-114 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CONTINUATION OF THE ELECTRICITY COMMODITY PURCHASES FROM SHELL ENERGY AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH THE PURCHASES
Attachments: 1. Item 7 - Attachment 1 - Shell Energy Confirmation Letter, 2. Item 7 - Attachment 2 - Direct Access Energy Sales Agreement 2004, 3. Item 7 - Attachment 3 - Direct Access First Amendment to Energy Sales Agreement, 4. Item 7 - Resolution
Title
RESOLUTION NO. 2016-114 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CONTINUATION OF THE ELECTRICITY COMMODITY PURCHASES FROM SHELL ENERGY AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH THE PURCHASES

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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.

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SUMMARY
In order to foster price competiveness, the California Public Utilities Commission in 1998 began allowing certain energy customers to purchase electricity from third-party providers (in place of the local Investor-Owned Utility), known as Direct Access Service. The City of Chula Vista purchases electricity for four municipal buildings from Shell Energy under Direct Access Service. The City is now updating its electricity procurement rates with Shell Energy, which are similar to last year's and approximately 30% lower than historical commodity prices. This approval would allow for continuation of the electricity commodity purchases for up to 3 (three) years.

ENVIRONMENTAL REVIEW

Environmental Notice
Environmental Notice
The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

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Environmental Determination
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.

BOARD/COMMISSION RECOMMENDATION
Not applicable.

DISCUSSION
In 1998, the California Public Utilities Commission began implementation of Assembly Bill 1890 (The Electric Utility Res...

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