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HomeMy WebLinkAboutOrdinance - 2004-O0118 - Amend Sect. 2-484; Operations, Rate Stabilizaion And Electric Utility Dev Funds - 10/28/2004First Reading October 28, 2004 Item No. 40 Second Reading October 29, 2004 Item Ho. 2 ORDINANCE NO. 2004-00118 AN ORDINANCE AMENDING SECTION 2-484 (b) OF ARTICLE XVIII OF CHAPTER 2 OF THE CODE OF ORDINANCES OF THE CITY OF LUBBOCK BY CHANGING THE DEFINITION OF THE OPERATIONS, RATE STABILIZATION AND ELECTRIC UTILITY DEVELOPMENT RESERVE FUNDS OF LUBBOCK POWER & LIGHT FROM BEING BASED ON OPERATING EXPENSES TO BEING BASED ON GROSS RETAIL ELECTRIC REVENUE; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION. WHEREAS, Article XVIII of Chapter 2 of the Lubbock Code of Ordinances as passed by the City Council of the City of Lubbock via Ordinance No. 2004-0002 l provides for the creation, qualifications, conduct and responsibilities of the Electric Utility Board of the City of Lubbock ("Electric Utility Board"); WHEREAS, Section 2-484 (b) states that the Electric Utility Board shall fully fund an operations reserve fund, a rate stabilization fund and an electric utility development fund (collectively, the "Funds"), the definition of such Funds being based on the annual operating expenses of Lubbock Power and Light; WHEREAS, the Electric Utility Board believes that it would be in the best interest of Lubbock Power and Light that the definition of such Funds should be based on the annual gross retail electric revenue of Lubbock Power and Light; WHEREAS, the Electric Utility Board recommends to the City Council that Section 2- 484 (b) of Article XVIII of Chapter 2 of the Lubbock Code of Ordinances be amended so that the definition of the Funds are based on the annual gross retail electric revenue of Lubbock Power and Light; WHEREAS, pursuant to Section 2-485 of Article XVIII of Chapter 2 this amendment has been published in a newspaper of general circulation meeting the definition contained therein at least once a week for three consecutive weeks and was published at least thirty days prior to the date of the public hearing as required therein; WHEREAS, the City Council of the City of Lubbock has conducted a public hearing in accordance with the requirements and provisions of Section 2-485 of Article XVIII of Chapter 2 of the Code of Ordinances; and WHEREAS, the City Council of the City of Lubbock deems that the recommendations of the Electric Utility Board are well founded and that it would be in the best interest of the City of Lubbock and its municipally owned electric utility, Lubbock Power & Light, to accept the recommendation of the Electric Utility Board and amend the Code of Ordinances of the City of Lubbock in such manner; NOW THEREFORE: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK SECTION 1: THAT Section 2-484 (b) of the Code of Ordinances, City of Lubbock, Texas, is hereby amended to read as follows: b) After providing for sufficient funds to meet the obligations contained in Section 2-484(a) above but prior to reimbursing any other fund of the City, paying any fee equivalent to a franchise fee, making any payment in lieu of taxes, and prior to disbursing any net operating revenues of the City's electric utility, the Board shall first fully fund the following items: i) An Operations Reserve containing reserves equivalent to three months gross retail electric revenue as detennined by the previous fiscal year of the City's electric utility; ii) A Rate Stabilization Reserve containing reserves equivalent to two months gross retail electric revenue as detennined by the previous fiscal year of the City's electric utility; and iii) An Electric Utility Development Reserve containing reserves equivalent to one months gross retail electric revenue as detennined by the previous fiscal year of the City's electric utility. This Electric Utility Development Fund shall be used for the sole purpose of meeting the electric utility demand of any rapid or unforeseen increase in residential and/or commercial development. SECTION 2: THAT any and all provisions not specifically amended herein remain in full force and effect. SECTION 3: THAT the City Council finds and declares that pursuant to Section 2-485 of Article XVIII of Chapter 2 of the Code of Ordinances of the City of Lubbock, this amendment has been published in a newspaper of general circulation meeting the definition contained therein at least once a week for three consecutive weeks and was published at least thirty days prior to the date of the public hearing as required therein; SECTION 4: THAT, the City Council of the City of Lubbock has conducted a public hearing in accordance with the requirements and provisions of Section 2-485 of Article XVIII of Chapter 2 of the Code of Ordinances of the City of Lubbock; SECTIONS: THAT the City Council finds and declares that sufficient written notice of the date, hour, place and subject of this meeting of the Council was posted at a designated place convenient to the public at the City Hall for the time required by law preceding this meeting, that such place of posting was readily accessible at all times to the general public, and that all of the foregoing was done as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and fonnally acted upon. Page 2 of3 The City Council further ratifies, approves and confirms such written notice and the contents of posting thereof. SECTION 6: THAT should any paragraph sentence, chmse, phrase, or worJ of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected thereby. SECTION 7: THAT the City Secretary is hereby authorized and directed to cause publication of the descriptive caption of this Ordinance as an alternative method of publication provided by law. AND IT 1S SO ORDERED Passed by the City Council on the first reading on this 28th day of October Passed by the City Council on the second reading on this 29th day of October ATTEST: APPROVED AS TO CONTENT: (!,,J/,AAL.LL )(h<-~ Carroll McDonald, Director of Elect1ic Utilities APPROVED AS TO FORM: .· ,; ~ ~/ / ~ ,p' ., P-// U r I c -._c _,[( ' Ma tthew L. Wade, Natural Resources Attorney J.:/city:111/rn:ul/Elt:c Util Board Amend 8-28,0-1 Page 3 of 3 , 2004. , 2004.