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Home My WebLink AboutORD NO 4726ORDINANCE NO. 4 72 6 ORDINANCE AUTHORIZING THE CITY COUNCIL OF THE CITY OF BAKERSFIELD, CALIFORNIA TO ESTABLISH A SPECIAL FUND TO BE DESIGNATED THE "ROADS PROGRAM UTILITY FRANCHISE FEE AND SURCHARGE FUND" TO MAINTAIN THE ADDITIONAL FRANCHISE FEES AND UTILITY SURCHARGES AND THE FUTURE UTILITY SURCHARGE FEES, IF ANY, RECEIVED OR TO BE RECEIVED BY THE CITY, PURSUANT TO CERTAIN ELECTRIC AND GAS FRANCHISES AND FURTHER AUTHORIZING THE CITY COUNCIL TO DESIGNATE SUCH FUNDS BE USED SOLELY FOR THE CITY'S ROADS PROGRAM AND AMENDING AND ADDING SECTIONS TO CHAPTER 3.04 OF CITY OF BAKERSFIELD MUNICIPAL CODE IN CONNECTION THEREWITH. WHEREAS, Sections 116 and 117 of Article IX of the Charter (the "Charter ") of the City of Bakersfield, California (the "City ") grants the City Council of the City (the "City Council ") the authority to grant by ordinance a franchise, to any person, firm or corporation, whether operating under an existing franchise or not, to furnish the City and its inhabitants with electricity and gas and to use the public streets, ways, alleys or places for the furnishing thereof or traversing any portion of the City, for the transmittal or conveyance of any such service elsewhere; and WHEREAS, Section 116 of Article IX of the Charter of the City further provides that the City Council may provide, by ordinance, additional terms and conditions of such franchise not inconsistent with the City Charter; and WHEREAS, Pacific Gas and Electric Company ( "PG &E ") had in place previous electric and gas franchises with the City and due to expiration of the previous franchises, PG &E entered into negotiations with the City for new electric and gas franchises; and WHEREAS, as part of such negotiations, the City proposed an additional one -half percent electricity franchise fee increase and the imposition of a one - percent electricity surcharge and a one - percent gas surcharge to be added onto the gas and electricity bills of utility customers within the City as a result of PG &E's use of the City's streets; and WHEREAS, Southern California Gas Company has a gas franchise agreement with the City that may be amended, at some time in the future, to include similar surcharge fees; and S: \COUNCIL \Ords\ 12- 13 \Bak.Transp. Fin- Est.Sp.Fund- Util- Flnal.Docx Page 1 of 6 O� 6 A KF'9d, ORIGINAI- WHEREAS, the City Council, at the regularly scheduled meeting of November 5, 2008, granted by Ordinance No. 4544 ( "Ordinance No. 4544 ") to PG &E, the franchise to use or construct, for transmitting and distributing electricity within the City of Bakersfield, all poles, wires, conduit and appurtenances which are now or may be lawfully placed in the public streets, ways, alleys and places which are or may at a later date exist within the City, including state highways which are or may at a later date be established within the City and freeways which are or may at a later date be owned by the City; and WHEREAS, the City Council, at the regularly scheduled meeting of November 5, 2008, granted by Ordinance No. 4545 ( "Ordinance No. 4545 ") to PG &E, the franchise to use or construct, for transmitting and distributing gas within the City of Bakersfield, all gas pipes and appurtenances which are now or may be lawfully placed in the public streets, ways, alleys and places which are or may at a later date exist within the City, including state highways which are or may at a later date be established within the City and freeways which are or may at a later date be owned by the City; and WHEREAS, as part of the renewed franchise granted to PG &E, PG &E has been paying to the City an additional one -half percent electricity franchise fee (the "Additional Utility Franchise Fees ") pursuant to Section 4 of Ordinance No. 4544, which is in addition to the historical electricity franchise fee (the "Historical Utility Franchise Fee ") previously collected under Ordinance No. 1 167 prior to the renewed franchise granted to PG &E under Ordinance No. 4544; and WHEREAS, with prior approval from the California Public Utilities Commission and pursuant to Section 5 of Ordinance No. 4544 and Ordinance No. 4545, respectively, PG &E has been paying to the City a one - percent electricity surcharge and a one - percent gas surcharge as compensation for the use of the City's streets (collectively, the "Utility Surcharge Recovery Portion Fees "); and WHEREAS, at the time the Additional Utility Franchise Fees and the Utility Surcharge Recovery Portion Fees were negotiated, the City Council had found it in the best interest of the City, so that it may provide funding for transportation facilities, to earmark the Additional Utility Franchise Fees and the Utility Surcharge Recovery Portion Fees received by the City for the City's Roads Program (as defined herein); and WHEREAS, the City also intends to earmark any utility surcharge revenues that may result from the establishment or renewal of other gas or electricity franchise agreements and that will be received by the City, for the City's Roads Program (the "Future Utility Surcharge Fees "); and S: \COUNCIL \Ords\ 12- 13 \Bak.Transp. Fin- Est.Sp.Fund- Utll- Final. Docx Page 2 of 6 O��AKF9s U p ORIGINAL WHEREAS, the City Council, now finds it in the best interest of the City to formally earmark such Additional Utility Franchise Fees, Utility Surcharge Recovery Portion Fees and Future Utility Surcharge Fees, received or to be received by the City, for the City's Roads Program; and WHEREAS, the City Council desires to establish a special fund so that the Additional Utility Franchise Fees, the Utility Surcharge Recovery Portion Fees and the Future Utility Surcharge Fees, if any, received or to be received by the City, shall be deposited into a special fund separate and apart from the City's general fund, with such fund to be designated the "Roads Program Utility Franchise Fee and Surcharge Fund ", and funds therein shall only be used for projects related to the City's Roads Program; and WHEREAS, the Roads Program Utility Franchise Fee and Surcharge Fund shall be segregated from all other revenues and general funds of the City, and shall not be maintained from amounts deposited in the City's general fund; and WHEREAS, the Historical Utility Franchise Fee and any historical gas utility franchise fee paid by Southern California Gas Company to the City shall continue to be maintained and deposited into the City's general fund, separate and apart from the funds deposited into the Roads Program Utility Franchise Fee and Surcharge Fund; and WHEREAS, the foregoing ordinance shall be read in conjunction with Ordinance No. 4544, Ordinance No. 4545 and any ordinances related to the establishment or renewal of other gas or electricity franchise agreements within the City (collectively, the "Ordinances "); and WHEREAS, the City Council now desires to amend Chapter 3.04 of the Municipal Code of the City (the "Municipal Code ") and add Sections 3.04.110, 3.04.120, 3.04.130 and 3.04.140 to Chapter 3.04 of the Municipal Code in order to codify the establishment of the Roads Program Utility Franchise Fee and Surcharge Fund and matters related thereto. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1 Chapter 3.04 of the City of Bakersfield Municipal Code is hereby amended to read as follows: I. Special Deposits Fund II. Special Gas Tax Street Improvement Fund III. Insurance Fund IV. Roads Program Utility Franchise Fee and Surcharge Fund S:\COUNCfL\Ords\ 12 -13\ Bak.Transp. Fin- Est.Sp. F und- Util- Final. Docx Page 3 of 6 ►_- m ORIGINAL That the following sections are hereby added to Chapter 3.04 of the City of Bakersfield Municipal Code to read as follows: Sections: 3.04.110 Created. 3.04.120 Source of moneys in fund. 3.04.130 Expenditures of moneys in fund. 3.04.140 Definitions. 3.04.110 Created. The City Council hereby creates a special fund to be designated the "Roads Program Utility Franchise Fee and Surcharge Fund." The Roads Program Utility Franchise Fee and Surcharge Fund shall be segregated from all other revenues and general funds of the City and shall not be maintained from the general funds of the City and any funds deposited therein shall be used solely to fund projects and improvements that are a part of the City's Roads Program. 3.04.120 Source of moneys in fund. The Roads Program Utility Franchise Fee and Surcharge Fund shall have deposited therein the Additional Utility Franchise Fees, the Utility Surcharge Recovery Portion Fees and the Future Utility Surcharge Fees, if any, received or to be received by the City, from Pacific Gas & Electric Company and Southern California Gas Company, respectively, pursuant to the franchise granted to Pacific Gas & Electric and Southern California Gas Company, respectively, as compensation for the use of the City's streets, and any other utility surcharge revenues that may result from the establishment or renewal of other gas or electricity franchise agreements and that will be received by the City, for the City's Roads Program. 3.04.130 Expenditures of moneys in fund. All moneys deposited to the Roads Program Utility Franchise Fee and Surcharge Fund shall be used for the purpose of funding Capital Improvements related to the City's Roads Program, including but not limited to, the payment of debt service or other types of payments related to obligations incurred in connection with the financing of such Capital Improvements. 3.04.140 Definitions. As used in Section 3.04/120, the term "Additional Utility Franchise Fees" shall mean the additional one -half percent electricity franchise fee paid by Pacific Gas & Electric Company to the City pursuant to Section 4 of Ordinance No. 4544, which is in addition to the historical electricity franchise fee previously ,bAK4 M_ S:\ COUNCIL \Ords \12- 13 \Bak.Transp. Fin- Es1.Sp.Fund- Util- Final.Docx frt Page 4 of 6 V p ORIGINAL collected under Ordinance No. 1167, prior to the renewed franchise granted to Pacific Gas & Electric Company under Ordinance No. 4544. As used in Section 3.04.130, the term "Capital Improvements" shall mean any new construction, re- construction, resurfacing, repair or maintenance work where project costs exceed $5,000 and where such work carries a useful life exceeding one year or where such repair or maintenance work extends the useful life of an existing facility by at least one year. As used in Sections 3.04.110, 03.04.120 and 3.04.130, the term "City's Roads Program" shall mean any costs related to design, right -of -way, new construction, re- construction, resurfacing, repair or maintenance work on any city roadway, bike lane, bike path, or pedestrian path within the City right -of- way, or any other bike facility which may exist outside of the City roads right of way. Additionally, any costs related to design, right -of -way, construction or any other improvements related to any bridge, road widening or freeway facility in the greater Bakersfield area which is a component or project segment of the Thomas Roads Improvement Program. As used in Section 3.04.120, the term "Future Utility Surcharge Fees" shall mean any utility surcharge revenues that may result from the establishment or renewal of other gas or electricity franchise agreements and that will be received by the City, for the City's Road Program. As used in Section 3.04.120, the term "Utility Surcharge Recovery Portion Fees" shall mean the one percent electricity surcharge and the one percent gas surcharge paid by Pacific Gas & Electric Company to the City pursuant to Section 5 of Ordinance No. 4544 and Ordinance No. 4545, as compensation for the use of the City's streets. SECTION 2 This Ordinance shall be read in conjunction with the Ordinances. The Ordinances are incorporated herein as if set forth fully herein, and the terms of the Ordinances shall be incorporated herein as a part of this Ordinance. SECTION 3 This Ordinance shall become effective thirty days after its passage. o�gAKF9s �-- m c3 O S: \COU NC I L \Ords\ 12 -13\ Bak.Transp. Fin- Est.Sp.Fund -Util- Final. Docx ORIGINAL. Page 5 of 6 HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Coo 011 'nf he City of Bakersfield at a regular meeting thereof held on 1 MAY _, 2013, by the following vote: Wi LZ COUNCILMEMBER: [VlLCANT], MAXWELL, WEIR, SMITH, HANSON, SULLIVAN, JOHNSON NOES: COUNCILMEMBER: �Gh(�SG�1 AIN: COUNCILMEMBER: ABSENT: COUNCILMEMBER: YY' i — -L-9" - ROBERTA GAFFORD, C CITY CLERK and Ex fflcio Clerk of the Council of the City of Bakersfield MAY 01 1013 APPROVED AS TO FORM: VIRGINIA GENNARO City Attorney By: cL.� ANDREW HEGLUND Deputy City Attorney AH /vl:dll /lsc S: \COUNCIL \Ords\ 12- 13 \Bak.Transp. Fin- Est.Sp. Fund -U ti I- Final. Docx Page 6 of 6 b ORIGINAI AFFIDAVIT OF POSTING DOCUMENTS STATE OF CALIFORNIA) ) ss. County of Kern ) ROBERTA GAFFORD, being duly sworn, deposes and says: That she is the duly appointed, acting and qualified City Clerk of the City of Bakersfield; and that on the 3rd day of May, 2013 she posted on the Bulletin Board at City Hall, a full, true and correct copy of the following: Ordinance No. 4726, passed by the Bakersfield City Council at a meeting held on the 1St day of May, 2013 and entitled: ORDINANCE AUTHORIZING THE CITY COUNCIL OF THE CITY OF BAKERSFIELD, CALIFORNIA TO ESTABLISH A SPECIAL FUND TO BE DESIGNATED THE "ROADS PROGRAM UTILITY FRANCHISE FEE AND SURCHARGE FUND" TO MAINTAIN THE ADDITIONAL FRANCHISE FEES AND UTILITY SURCHARGES AND THE FUTURE UTILITY SURCHARGE FEES, IF ANY, RECEIVED OR TO BE RECEIVED BY THE CITY, PURSUANT TO CERTAIN ELECTRIC AND GAS FRANCHISES AND FURTHER AUTHORIZING THE CITY COUNCIL TO DESIGNATE SUCH FUNDS BE USED SOLELY FOR THE CITY'S ROADS PROGRAM AND AMENDING AND ADDING SECTIONS TO CHAPTER 3.04 OF CITY OF BAKERSFIELD MUNICIPAL CODE IN CONNECTION THEREWITH. ROBERTA GAFFORD City Clerk and Ex Officio of the Council of the City of Bakersfield B � DE U City Clerk SADOCUMENIIFORMSWOP.ORD.wpd o``OAKF�, � m v a ORIGINAL