Submitted By: Marie Brooks
Presentation By: Doug Peebles
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Department: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
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Introduce Ordinance 2024-30 amending sections 70-582 and 70-584 concerning definitions and the establishment of service
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND: Ocala Electric Utility is requesting to amend the code of ordinances by revising the definition of net revenue and the process to establish service. Net revenue refers to the portion of revenue obtained from retail electric power delivery and sales to customers, minus the associated costs of power generation and transmission incurred by the City. It serves as the basis for estimating the value generated from a new customer’s electric connection within the initial 48 months. This value comparison includes the costs of new electric infrastructure and additional capacity required to meet the customer’s demand, determining the need for a customer contribution towards construction expenses.
These guidelines primarily apply to commercial and industrial developments, offering clarity by distinguishing power costs and rate structures between municipal and investor-owned electric utilities.
FINDINGS AND CONCLUSIONS: Amending the definition of net revenues from “fuel cost” to “power cost” considers a wider range of expenses beyond just fuel. It includes all costs related to power generation and provides a more accurate calculation of utility expenses. This accuracy is crucial for making more informed decisions regarding return on investments and customer contributions. Staff recommends the adoption of this ordinance.
FISCAL IMPACT: The amendment from “fuel cost” to “power cost” enhances financial transparency, improves the accuracy of cost estimation, and facilitates better financial planning and decision-making regarding infrastructure investments and customer contributions.
PROCUREMENT REVIEW: N/A
LEGAL REVIEW: The ordinance is pending review by the City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with changes
• Deny
• Table
ORDINANCE 2024-30
AN ORDINANCE OF THE CITY OF OCALA, FL. CONCERNING CHAPTER 70, UTILITIES, ARTICLE VI ELECTRICITY: AMENDING SECTION 70-582 BY REVISING THE DEFINITION OF NET REVENUE; AMENDING SUBSECTION 70-584(A) BY MODIFYING THE PROCESS TO ESTABLISH SERVICE; PROVIDING DIRECTION TO STAFF; REPEALING INCONSISTENT AND/OR CONFLICTING PROVISIONS; PROVIDING FOR SEVERABILITY OF ORDINANCE PROVISIONS; PROVIDING FOR MODIFICATIONS ARISING FROM CONSIDERATION AT A PUBLIC HEARING; PROVIDING DIRECTION TO THE CODIFIER; AND PROVIDING AN EFFECTIVE DATE
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF OCALA, FLORIDA, in regular session, as follows:
Section 1. That Section 70-582, Code of Ordinances, City of Ocala, Florida is hereby amended by revising the following definition which shall be codified such that all definitions in such section are in alphabetical order:
Sec. 70-582. Definitions.
Net revenue means the non-Fuel power portion of revenue for the applicable utility rate that applies to the customer.
Section 2. That Subsection 70-584(a) of the Code of Ordinances, City of Ocala, Florida, is hereby amended to read as follows:
Sec. 70-584. Availability and establishment of service.
(a) Application for service. Information may be obtained from the electric engineering division as to the availability of service at the location where it is desired. Application for such service should be made by the customer, at the customer service center or using the online application tool, at the earliest possible time so that details for furnishing service may be determined. Unless otherwise agreed in writing by the utility, and except as provided in section 70-585, applications will be accepted only upon the condition that the utility shall not be under any obligation to render service other than that character of service then available at the proposed point of delivery. Any such application or agreement shall be subject to all the provisions of this division and the rate schedules.
Section 3. Direction to Staff.
The City Council of the City of Ocala, Florida directs staff to take any and all steps necessary to effectuate the adoption and implementation of this ordinance; and all other matters as provided for above and herein as well as to ensure the orderly and effective administration and implementation of the intent of this ordinance and the specific matters outlined herein.
Section 4. Repealing Inconsistent and/or Conflicting Provisions.
The City Council of the City of Ocala, Florida hereby specifically repeals, to the extent of any such conflict, any and all ordinances, resolutions, policies, procedures, and/or other articles which are conflicting and/or inconsistent with this ordinance and the intent and direction provided by the City Council herein.
Section 5. Severability of Ordinance Provisions.
If any section, phrase, sentence or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, it is the intent of the City Council of the City of Ocala, Florida that (1) such portion shall be deemed a separate, distinct and independent provision; (2) such holding shall not affect the validity of the remaining portions hereof; and (3) this ordinance be adopted as though any such provision was not included herein.
Section 6. Modifications Arising from Consideration at a Public Hearing.
It is the intention of the City Council of the City of Ocala, Florida that (1) the provisions of this ordinance may be modified as a result of its consideration by the City Council of matters that may arise during the public hearing(s) at which this ordinance is considered; and (2) any such modifications shall be incorporated into the final version of this ordinance.
Section 7. Direction to the Codifier.
It is the intention of the City Council of the City of Ocala, Florida that (1) this ordinance shall become and be made a part of the Code of Ordinances, City of Ocala, Florida, (2) the sections and paragraphs of this ordinance may be renumbered or relettered in order to accomplish said intention; (3) terms or headings not affecting the intent of this ordinance may be changed to further accomplish said intention; and (4) any scrivener’s error(s) contained herein which do not affect the intent of this ordinance be corrected with the authorization of the City Manager or their designee and without the need for additional public hearings or consideration by the City Council.
Section 8. Effective Date of Ordinance.
This ordinance shall become effective immediately upon approval by the Mayor or becoming law without such approval.
PASSED AND ADOPTED, in a regular session with a quorum present and voting, by the City Council of the City of Ocala, Florida this ____ day of May 2024.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Barry Mansfield
City Clerk President, Ocala City Council
Approved/Denied by me as Mayor of the City of Ocala, Florida, on __________________, 2024.
By: __________________________________
Ben Marciano
Mayor
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney
Ordinance No: 2024-30
Introduced: Click or tap to enter a date.
Adopted: Click or tap to enter a date.
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