STAFF REPORT DATE: May 1, 2015 TO: City Council FROM: Mike Webb, Community Development and Sustainability Department Director Mitch Sears, Sustainability Manager SUBJECT: Community Choice Energy non-binding letter of intent – Marin Clean Energy Recommendations Adopt the attached resolution authorizing the City Manager to send a non-binding letter of intent to Marin Clean Energy expressing the City’s interest in exploring possible membership. Council Goals The action is consistent with the Council Goal of pursuing environmental sustainability and, specifically, the objective to explore Community Choice Energy programs. Fiscal Impact No fiscal impacts associated with the recommended action. Background and analysis The City Council adopted an objective to explore Community Choice Energy (CCE) programs as part of its 2015/16 goals and formed the Community Choice Energy Advisory Committee (CCEAC) in February 2015. The Council tasked the Advisory Committee and staff with exploring whether CCE is a good fit for Davis and if so, what type of CCE should the City pursue? The Advisory Committee and staff have worked over the last several months to gather background information and engage the public in the exploration of these two basic questions. The Advisory Committee is scheduled to make its recommendations at the end of May. As part of its research, staff learned that one potential CCE option, joining the existing Marin Clean Energy (MCE) program, may be constrained in the future due to the level of interest MCE is receiving from other jurisdictions. MCE has placed a hold on considering new memberships until Fall of 2015 to focus on incorporating recently added communities into its program. While MCE is not taking up new membership applications at this time, they have indicated that communities that have submitted a formal letter of intent will be given priority when they resume consideration of new memberships later this year; in essence, a formal expression of interest will secure the City’s place in the queue. Both staff and the Advisory Committee believe it would be prudent for the City to submit a letter of intent to maintain options should the City ultimately choose to pursue a CCE program. However, it should be noted that the Advisory Committee clearly expressed that its support of this procedural action should not be interpreted as a recommendation at this time on either CCE in general or of this particular option. Staff concurs with this position. Attachment 1. Resolution 05-05-15 City Council Meeting 05C - 1 RESOLUTION NO. ______ , SERIES 2015 RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO SEND A NON-BINDING LETTER OF INTENT TO MARIN CLEAN ENERGY EXPRESSING THE CITY’S INTEREST IN EXPLORING POSSIBLE MEMBERSHIP WHEREAS, the Davis General Plan establishes visions, goals and policies that guide the community toward sustainability, including the development and use of advanced energy technology; and WHEREAS, the City adopted the Davis Climate Action and Adaptation Plan in 2010 that includes specific objectives to increase the local use of renewable energy and increase energy efficiency; and WHEREAS, the Davis community has historically engaged on energy conservation and renewable energy issues and has supported local and statewide initiatives related to increasing local decision making on energy related issues; and WHEREAS, the City received an energy feasibility report in December 2013 that examined Community Choice as one possible method to accomplish City Council goals related to the provision of electrical energy services to the community; and WHEREAS, the City Council formed the Community Choice Energy Advisory Committee in February 2015 to explore the possible establishment of a Community Choice Energy program in Davis; and WHEREAS, one possible option for implementing a CCE program in Davis, joining the existing Marin Clean Energy (MCE) program, may be constrained in the future due to high levels of interest in the program; and WHEREAS, by formally expressing an interest in possible membership to MCE, the City can maintain this approach to implementing CCE in Davis as an option as it finalizes its community benefits/costs analysis of CCE. NOW, THEREFORE, BE IT RESOLVED that the Davis City Council does authorize the City Manager or his designee to send a non-binding letter of intent to Marin Clean Energy expressing the City’s interest in exploring possible membership PASSED AND ADOPTED by the City Council of the City of Davis this 5rd day of May 2015, by the following votes: AYES: NOES: ABSENT: Daniel M. Wolk Mayor ATTEST: Zoe Mirable, City Clerk 05-05-15 City Council Meeting 05C - 2
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