CC 2018-03-13_09b Reimbursement to SLO City_Diablo
MEMORANDUM
TO: CITY COUNCIL
FROM: JIM BERGMAN, CITY MANAGER
DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: CONSIDERATION OF REIMBURSEMENT TO CITY OF SAN LUIS
OBISPO
DATE: MARCH 13, 2018
SUMMARY OF ACTION:
Consider a reimbursement request from the City of San Luis Obispo for costs incurred
on behalf of the Coalition of Cities related to the closure of Diablo Nuclear Power Plant.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
An additional appropriation of $13,400 from the General Fund unallocated fund balance
is required.
RECOMMENDATION:
It is recommended the City Council:
1. Appropriate $13,400 from the General Fund unallocated fund balance; and
2. Approve reimbursement to the City of San Luis Obispo for $13,367.12 for Coalition of
Cities costs related to the closure of the Diablo Nuclear Power Plant.
BACKGROUND:
When PG&E announced the closure of Diablo Nuclear Power Plant, local governments
throughout the County began efforts to understand and mitigate the financial impacts of
the closure. The Coalition of Cities was formed to pursue actions with PG&E and the
California Public Utilities Commission (CPUC) related to these impacts. The
participating cities agreed to share in the costs of the efforts, with the hope that the
costs would be borne by any financial settlement, but understanding that if those efforts
were unsuccessful, each city would bear their proportional share of the costs. The City
of San Luis Obispo agreed to pay the costs up front, with reimbursement from
participants in the future.
Ultimately, the efforts of the Coalition of Cities were unsuccessful at getting the CPUC
to approve the financial proposal between PG&E and the Coalition. The City of San
Item 9.b. - Page 1
CITY COUNCIL
CONSIDERATION OF REIMBURSEMENT TO CITY OF SAN LUIS OBISPO
MARCH 13, 2018
PAGE 2
Luis Obispo has now provided each of the participating cities an invoice for their
proportional share of the costs. The City of Arroyo Grande’s cost is $13,367.12.
ANALYSIS OF ISSUES:
The City Council approved budget adjustments with the Mid Year Budget Report at their
February 27, 2018 meeting. This request was not included at that time because,
although staff knew the outcome of the previous CPUC hearing, the allocation of costs
and amount due to the City of San Luis Obispo was not known to the Administrative
Services Director until the day after the Mid Year Budget was considered by the
Council.
Reimbursement to the City of San Luis Obispo for the City’s proportional share of the
costs incurred is consistent with the agreements made between all participating cities in
the Coalition.
ALTERNATIVES:
1. Approve the recommended budget adjustment and reimbursement;
2. Do not approve the recommended adjustment or reimbursement; or
3. Provide further direction to staff
ADVANTAGES:
Approval of the budget adjustment and reimbursement request will provide payment to the
City of San Luis Obispo consistent with previous commitments made.
DISADVANTAGES:
Additional expenses have been incurred that impact the General Fund financial condition.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 9.b. - Page 2