BACKGROUND/DISCUSSION:
Purpose of the Resolution
The City of Saginaw is a member of a 162-member city coalition known as the Steering Committee of Cities Served by Oncor (Steering Committee). The resolution approves the assessment of a seven cent ($0.07) per capita fee to fund the activities of the Steering Committee.
Why this Resolution is Necessary
The Steering Committee undertakes activities on behalf of municipalities for which it needs funding support from its members. Municipalities have original jurisdiction over the electric distribution rates and services within the city. The Steering Committee has been in existence since the late 1980s. It took on a formal structure in the early 1990s. Empowered by city resolutions and funded by per capita assessments, the Steering Committee has been the primary public interest advocate before the Public Utility Commission, ERCOT, the courts, and the Legislature on electric utility regulation matters for over two decades.
The Steering Committee is actively involved in rate cases, appeals, rulemakings, and legislative efforts impacting the rates charged by Oncor Electric Delivery Company, LLC within the City. Steering Committee representation is also strong at ERCOT. It is possible that additional efforts will be necessary on new issues that arise during the year, and it is important that the Steering Committee be able to fund its participation on behalf of its member cities. A per capita assessment has historically been used, and is a fair method for the members to bear the burdens associated with the benefits received from that membership.
Explanation of “Be It Resolved” Paragraphs
I. The City is currently a member of the Steering Committee; this paragraph authorizes the continuation of the City’s membership.
II. This paragraph authorizes payment of the City’s assessment to the Steering Committee in the amount of seven cents ($0.07) per capita, based on the population figure for the City as shown in the latest TML Directory of City Officials.
III. This paragraph requires payment of the 2020 assessment be made and a copy of the resolution be sent to the Steering Committee.
Payment of Assessment
A copy of the resolution should be mailed with payment of the fee to Brandi Stigler, Steering Committee of Cities Served by Oncor, c/o City Attorney’s Office, Mail Stop 63-0300, 101 S. Mesquite St., Suite 300, Arlington, Texas 76010. Checks should be made payable to: Steering Committee of Cities Served by Oncor.
FINANCIAL IMPACT:
The financial impact will be $1566.60 which is budgeted in the General Administrative Office budget, Legal and Special Services and Audit, account no. 01-6650-02
RECOMMENDATION:
Staff recommends approval of Resolution 2020-07, authorizing continued participation with the Steering Committee of Cities Served by Oncor.