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HomeMy WebLinkAboutResolution - 2003-R0558 - Establishment Of Electric Utility Governance Commission - 12_08_2003Resolution No. 2003-R0558 December 8, 2003 Item No. 48 RESOLUTION WHEREAS, the City Council of the City of Lubbock desires to establish the Lubbock Electric Utility Governance Commission to review and evaluate various issues related to the governance of Lubbock Power and Light ("LP&L"); and WHEREAS, the Lubbock Electric Utility Governance Commission shall be appointed and serve as set forth below; and WHEREAS, the goal of the Lubbock Electric Utility Governance Commission is to evaluate the matters described below, and to advise and make recommendations to the City Council on such matters; and NOW THEREFORE, the creation of the Lubbock Electric Utility Governance Commission to review the governance of LP&L and other related matters described below is important to ensure the proper administration of LP&L to the benefit of the citizens of the City of Lubbock. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: 1. THAT the Lubbock Electric Utility Governance Commission is hereby created by the City Council of the City of Lubbock, which shall perform its duties in accordance with the following criteria: A. The primary objective of the Commission shall be to assist the City Council in reviewing the following issues: a. Governance of LP&L, considering the options as attached hereto as Exhibit "A", and other matters related thereto. b. Other electric utility related matters, as designated by the City Council. B. The Commission shall present their recommendations regarding the matters described above to the City Council for their review and implementation as deemed appropriate by the City Council. 2. THAT the Commission may consist of up to nine (9) members initially being comprised of: W. R. Collier Marciano Morales Chris Snead John Owens Lloyd Rinehart J.Q. Warnick Connie Wharton Craig Wells John Zwiacher The Mayor of the City of Lubbock hereby designates W. R. Collier, as Chair of the Commission and shall designate the Vice Chairperson from the appointed members of the Commission. The City Manager of the City of Lubbock shall appoint one (1) City employee, and the City Attorney of the City of Lubbock shall appoint one (1) attorney from the City Attorney's Office, to act as liaisons to the Commission. 3. THAT regular meetings will be held at times and locations established by a majority of the Commission members once every three (3) months, unless otherwise deemed necessary by the Commission. A simple majority shall constitute a quorum, and a majority vote of the quorum shall be required for any action to be taken by the Commission. All meetings and procedures shall be consistent with the policies of the City of Lubbock concerning advisory Commissions and Boards. 4. THAT the Commission members shall serve as follows: Five (5) Commission members shall serve for a term of one (1) year and four (4) Commission members shall serve for a term of two (2) years, said terms to be determined by the Lubbock Electric Utility Governance Commission by a drawing of straws. At the expiration of the terms of the initial Commission members, all terms shall be for two (2) years, or until such time as their successors are appointed, as provided above. 5. THAT all Commission members shall serve at the pleasure of, and may be removed by, the Mayor of the City of Lubbock. There shall be no limit upon the number of terms, including successive terms, that a Commission member may serve. 6. THAT reports shall be presented by the Chairperson of the Commission to the City Council as requested by the Mayor. 7. THAT the City Council of the City of Lubbock may dissolve the Lubbock Electric Utility Governance Commission at any time after its creation when its purpose has been fulfilled or the City Council deems said dissolution advisable. PJ 9.av 3 V- Passed by the City Council this 8th day of December ,2003. C NICDQUGAL, MAYOR ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CONTENT: 4m-,� Tommy Gonzaiez, Interim Wty Manager APPROVED AS TO FORM: ichard K. Casner, First Assistant City Attorney da/ccdocs//LubbockElectricUtilityGovernanceComm. Res December 1, 2003 Resolution No. 2003-RO558 EXHIBIT A Memorandum - General Governance Outline There are essentially three ways you can create a separate board to govern LP&L only one of which requires an election of the public. Each case requires different procedures to establish the board and contains different requirements. 1). Section 1502.070 of the Government Code This provision allows the City Council to establish a board of trustees to run the utility. The board must consist of five members one of which must be the mayor. The Council can establish this board by ordinance. The ordinance must specify the compensation of the trustees (which must not exceed 5% of the gross receipts of the utility system in any year), specify the terms of office of the board, their powers and duties, the manner in exercising those powers and duties, the election of successor trustees, and any matter relating to the organization and duties of the board. The ordinance would have to be passed in open session on two successive council meetings. 2). Subchapter G, Chapter 402 of the Local Government Code This process differs somewhat from that mentioned above and the duties and obligations differ as well. First, this applies only to an electric utility system. Second, before a home rule municipality elects to have their electric utility system to be managed by a separate board one of the following must be present: (1) the City has outstanding obligations payable and secured by a lien on the net revenue of the electric system; or (2) the City issues obligations that are payable from and secured by a lien on the net revenue of the electric system and such obligations are approved by the attorney general. If these conditions are met, then the City can transfer by ordinance the management and control of the City's electric utility to a board of trustees appointed by the City Council. The ordinance must outline the number and qualifications of the board members, whether the board will have the power to establish rates, exercise the power of eminent domain on property for the utility system, issue obligations in the name of the City to acquire or construct an improvement to or extension of the utility system or to repair the system without the prior authorization of the City (payable solely from the net revenue of the electric system). 3). City Charter Chapter 40 of the Utility Code also allows the City to establish a board of trustees for the electric utility through the City Charter. However, as you know, any amendment to the Charter can only be adopted by an election. The charter amendment, if passed, would outline the powers and duties of the board. Regardless of which option is taken, if the City Council wants a separate board to have the ability to hire and fire the director of electric utilities, the charter may have to be amended (requiring an election) concerning the duties of the city manager and the responsibilities of the city manager in hiring the employees of the City. Exhibit A-1