HomeMy WebLinkAboutResolution - 2012-R0070 - Call Public Hearing - Adopt Changes Ch. 2 Article 2.03 - 02/09/2012Resolution No. 2012-R0070
February 9, 2012
Item No. 6.4
RESOLUTION
WHEREAS, the City Council of the City of Lubbock requested the Electric
Utility Board to review and recommend changes to Chapter 2, Article 2.03. Division
12, and Chapter 22, Article 22.02 of the City of Lubbock Code of Ordinances
pursuant to City Council Resolution No. 2011-R0428, and
WHEREAS, the Electric Utility Board has reviewed Chapter 2. Article 2.03,
Division 12, and Chapter 22, Article 22.02 of the City of Lubbock Code of
,Ordinances and has reported its recommendations to the City Council, and
WHEREAS, City Council subsequently revised, in part, the recommendations
made by the Electric Utility Board to Chapter 2, Article 2.03, Division 12, so as to
read substantially as set forth in Exhibit "A- attached hereto; and
WfIERF.AS. Chapter 2, Article 2.03, Division 12, Section 2.03.41 S ofthc City
of Lubbock Code of' Ordinances sets forth certain procedures and public notice
required to amend any provision of Chapter 2, Article 2.03, Division 12; and
WHEREAS, the City Council of the City of Lubbock desires to place before
itself the question of whether changes to Chapter 2, Article 2.03, Division 12 of the
City of Lubbock Code of Ordinances, as set forth in Exhibit "A" attached hereto,
should be scheduled for public hearing and final consideration by the City Council,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CrrY OF LUBBOCK:
I. TI IA'f the Mayor of the City of' Lubbock is hereby authorized
and directed to call a public hearing to be held on March 29, 2012_ to adopt
changes to Chapter 2, Article 2.03. Division 12 as said changes are set forth in
Exhibit `A.'
2. THAT the City Secretary shall publish notice of the date and
time of the public hearing along -,vith a complete copy of the proposed
changes to Chapter 2, Article 2.03, Division 12 of the City of Lubbock Code
of Ordinances in accordance with the procedures described in Chapter I
Article 2.03, Division 12, Section 2.03.418 of the Code of Ordinances of
Lubbock, Texas.
Passed by the City Council this 9th day of February , 2012.
TOM MARTIN, MAYOR
II (IATTEST:
Rebe a Garza, City Secretary
AS TO 'WNTENT:
Victor Hernandez, Councilman, District 1
APPROVED AS TO FORM: I
Mi
Rcso.CC Recommoidalions to L:LIi3 Ordinance Final
2. 2, 12
rney
Resolution No. 2012-R0070 EXHIBIT
Division 12. Electric Utility Board
See.2.03.411 Definition
For the purposes of this division, "the board" shall mean the electric utility board of the City of
Lubbock. (1983 Code, sec. 2-478; Ordinance 2004-00021, sec. 1, adopted 2/19/2004; Ordinance
2004-00140, sec. 1, adopted 12/ 16/2004)
Sec. 2.03.412 Established, purpose
Pursuant to chapter 1, article XII, section 1, of the Lubbock City Charter, the City of Lubbock's
municipally owned electric utility, known as Lubbock Power & Light, shall be governed and
managed by a board appointed by the city council, such board to be known as the electric utility
board. The city's electric utility shall have as its primary purpose the provision of dependable
and reliable electric service at reasonable and competitive rates to the citizens of Lubbock while
being financially self-sustaining. (1983 Code, sec. 2-479; Ordinance 2004-00021, sec. 1,
adopted 2/19/2004; Ordinance 2004-00140, sec. 1, adopted 12/ 16/2004)
Sec. 2.03.413 Members, qualifications
(a) The number of board members and their terms are governed by chapter 1, article XII,
section 1 of the Lubbock City Charter and shall be considered officers of the City of Lubbock.
No board member shall serve more than three terms. However, for each board member appointed
whose original term was for one year or less, such original term shall not apply towards the three
term term -limitation outlined herein. The city council shall consider extensive business and/or
financial experience as a qualification for serving on the board as well as whether or not the
individual is a customer of the city's electric utility provided that service with the city's electric
utility is available. The mayor or the mayor's appointee shall serve as an ex-officio, nonvoting
member of the board.
(b) The board members shall serve without compensation. The board may reimburse board
members for expenses incurred in performing their duties as board members.
(c) The board members shall not be indebted to the city or the city's electric utility, and shall
not be interested in the profits or emoluments of any contract, job, work or service for the city or
the city's electric utility. The board members shall not have a substantial interest in any public
utility operating within the City of Lubbock and shall fully disclose any potential or actual
conflict of interest to the city council. Substantial interest shall mean substantial interest as
defined by the laws of the State of Texas regulating conflicts of interest of officers of
municipalities.
(1983 Code, sec. 2-480; Ordinance 2004-00021, sec. 1, adopted 2/19/2004; Ordinance 2004-
00140, sec. 1, adopted 12/ 16/2004; Ordinance 2006-0013 5, sec. 1, adopted 1 / 12/2007)
Sec. 2.03.414 Powers reserved to city council
Pursuant to and subject to chapter 1, article XII, section 1, of the Lubbock City Charter, the
following powers, as they relate to the city's electric utility, are for the sole and exclusive use
and authority of the city council:
(1) Establishing, changing, altering or otherwise setting the electric rates of the
city's electric utility, including all components thereof;
(2) Approving the budget of the city's electric utility;
(3) Exercising powers of eminent domain for the benefit of the city's electric
utility;
(4) Issuing bonds or otherwise creating any indebtedness in the name of the city for
the benefit of the city's electric utility that is secured by the general tax revenue of the
city, the net revenue of the city's electric utility or the pledging of the assets of the
city's electric utility; and
(5) Requiring the city's electric utility to pay an annual fee to the city equivalent to
any fee outlined in section 2.03.417 herein.
(1983 Code, sec. 2-481, Ordinance 2004-00021, sec. 1, adopted 2/19/2004; Ordinance 2004-
00140, sec. 1, adopted 12/16/2004)
Sec. 2.03.415 Authority, duties and responsibilities
(a) The board shall approve an annual budget and electric rate schedule for the city's electric
utility; submit the budget and electric rate schedule to the city council for approval by filing the
same with the City Secretary, and be responsible for the proper implementation of each
following adoption. The board may, as required from time to time, submit to the city council for
its approval amendments to the budget and/or electric rate schedule.
(b) The board shall authorize and oversee an audit of the city's electric utility system and shall
report any and all findings of such audit to the city council. The board may authorize such audit
to be performed by an external auditor. The external auditors must be a certified public
accounting (CPA) firm that has the experience and depth of staff to audit the city's electric utility
in accordance with generally accepted auditing standards and contractual requirements. The
audited financial numbers au diteFs' r-emust be completed and reported to the city'
accounting department in sufficient time for ue� , the comprehensive annual financial report
tg(C- ^ F-R)fnal�be presented to the city council perat *'� t eouncil meefing in r,,nu f.
116' the audit schedulefiseal e . The auditors are accountable to the board and will
have access to direct communication with the board if staff is unresponsive to auditor
recommendations or if the auditors consider such communication necessary to fulfill their legal
and professional responsibilities.
(c) To the extent authorized by law and subject to the city's charter and Code of Ordinances,
the board shall have all authority necessary to govern, manage, administer and operate the city's
electric utility including the authority to contract for accounting, financial, human resource, legal
and other services separate and apart from those services currently being provided by the City of
Lubbock. Furthermore, this authority includes, without limitation, the right of the board to enter
into contracts in the name of the city relating solely to the operation and management of the
city's electric utility including the right of the board to establish any and all policies relating to
the administration and implementation of contracts related solely to the city's electric utility. if
the board contracts for legal services separate and apart from the city attorney's office, the legal
counsel for the board shall also report to and be responsible to the city council of the City of
Lubbock.
(d) No person related within the second degree by affinity, or within the third degree of
consanguinity, to any member of the board, the city council or the city manager shall be
appointed as director of the city's electric utility.
(e) To the extent authorized by law and subject to the city's charter and Code of Ordinances,
the board shall be responsible for recommendingi�- individuals to the city council for
their consideration in appointing individuals to the board and for appointing individuals to the
West Texas Municipal Power Agency.
(1983 Code, sec. 2-482; Ordinance 2004-00140, sec. 1, adopted 12/16/2004; Ordinance 2004-
00021, sec. 1, adopted 2/19/2004; Ordinance 2006-00135, sec. 2, adopted 1/12/2007)
Sec. 2.03.416 Director of electric utilities
(a) The director of electric utilities shall be the chief administrative officer of the city's electric
utility and shall report to the board for the proper administration, management and operation of
the city's electric utility as directed and authorized by the board, the city charter and/or the city's
ordinances and resolutions. The director shall be responsible for preparing the annual budget and
fee schedule for the city's electric utility and shall present the budget and fee schedule to the
board for their approval prior to the board submitting such budget and fee schedule to the city
council.
(b) The director of electric utilities shall not have a substantial interest in any public electric
utility operating within the City of Lubbock and shall fully disclose in writing any interest,
including any potential or actual conflict of interest, to the board. For purposes of this section
only, "substantial interest" shall not include any pension, retirement income or retirement
benefits received by the director of electric utilities.
(c) A director of electric utilities who ceases to possess any of the qualifications outlined in
this section shall forfeit his position, and any contract in which the director shall or may become
interested may be declared void by the board. Failure by the director of electric utilities to
disclose the interest outlined in subsection (b) above shall be a class C misdemeanor, and, on
conviction thereof, such employment shall be forfeited.
(1983 Code, sec. 2-483; Ordinance 2004-00021, sec. 1, adopted 2/19/2004; Ordinance 2004-
00140, sec. 1, adopted 12/16/2004)
See. 2.03.417 Disbursement of funds from the General Resery
(a) Prior&ubjeett to paying any fee equivalent to a franchise fee, making
any payment in lieu of taxes PI( LOT)„ and prior to disbursing any funds from appropriable net
assets the "General Reserve" of the city's electric utility, the board shall first
fully meet all bond reserve or fund obligations defined in any bond covenant for the city's
electric utility.
(b) , after providing for sufficient funds to meet the obligations
contained in subsection (a) above, the board shall ensure that the General Reserve is equal to
three (3) months gross revenue generated from all retail electric sales (the "GRR") as determined
by taking the average monthly GRR from the previous fiscal year. The term "GRR" as used
herein shall include all receipts from the sale of retail electric lighting and power in LP&L's
certificated territory. .
(c)The board may us
Pam; and
the General Reserve
($50,000,000.00). This geaefW Feserye shall be use for epeFetional , rate
stabilization, unforeseen emergency situations, and for meeting the electric utility
demand of any rapid or unforeseen increase in residential and/or commercial
development.
(dLP&L shall (e) Megimiing %h fiseai yeaf 2009 2910, thebeashtransfer to the city
a fee equivalent to a franchise fee in the amount e st 413. 1 i e 0 h e " F F E"
outlined below-
"' The lesser f five percent (5%) of the
eleetfie sal "GRR and a PILOT in the amount of one " percent (IAA%)
of the GRR.,ehmge ift of assets (asr stated in the stme .ft of -revenues, e*pmws an
The transfers shall be made on the 15'' day of each month and shall be based on the GRR of
LP&L during the preceding calendar month.
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, on or before Mayes 1st of each year,
the board shall report to the city council their estimate of the General reserve, the
GRR and the resulting franchise fee and PILOT
fiff the upeem_43g fiseW year-, In the submquent fmW year-, the board shag &E��t
(ed) Subject to the approval of the board, any net operating Fevenues remaining General
Reserve maysha4l be refunded to the ratepayers of the city's electric utility within six ((6amonths
following the fiscal year in which the General Reserve balance exceeds three (3) months of
G
(f) The general reserve shall be based on funds not otherwise committed, and generally
defined as "current assets" less "current liabilities" as those terms are defined in (1) and (2)
below:
(1) Current assets, asa%ets classified in the latest CAFR
Hof the city's electric utility fund, excluding cash committed to capital projects and
ther non -cash assets
(2) Current liabilities, as classified in the latest CAFR of the city's electric utility fund, excluding
non -cash liabilities. Current liabilities will also exclude accrued interest payable, leases payable
(as these current liabilities will be paid from revenues generated in the subseguuent fiscal year).
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(1983 Code, sec. 2-484; Ordinance 2004-00021, sec. 1, adopted 2/19/2004; Ordinance 2004-
00118, sec. 1, adopted 10/29/2004; Ordinance 2004-00140, sec. 1, adopted 12/16/2004;
Ordinance 2006-00135, sec. 3, adopted 1/12/2007; Ordinance 2008-00096, sec. 1, adopted
11 /20/2008 )
Sec.2.03.418 Amendments
(a) To the extent authorized by law and subject to the city's charter and Code of Ordinances,
the board shall be responsible for recommending any amendments to this division.
(b) The city council shall not amend, alter, delete or change any provision contained in this
division without first conducting a public hearing following proper notice as described below.
(c) Prior to conducting a public hearing as described above, the city council shall provide
notice of such hearing. The notice must state clearly the time and place of the hearing and must
clearly state the proposed amendment, alteration or change. The notice must be published at least
thirty days before the date for public hearing and at least once a week for three consecutive
weeks. The last day of publication must not be less than one week or more than two weeks
before the date of the hearing. The notice must be published in a newspaper of general
circulation and that is published at least six days a week in the City of Lubbock.
(1983 Code, sec. 2-485; Ordinance 2004-00021, sec. 1, adopted 2/19/2004, Ordinance 2004-
00140, sec. 1, adopted 12/ 16/2004, Ordinance 2006-00135, sec. 4, adopted 1 / 12/2007)
Secs.2.03.419-2.03.450 Reserved