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HomeMy WebLinkAbout10-50 - Supporting the California Jobs InitiativeRESOLUTION NO. 10-50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, SUPPORTING THE CALIFORNIA JOBS INITIATIVE THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, California's economy is still suffering from a severe economic recession with an unemployment rate of more than 12% with more than two million out of work; and WHEREAS, local governments are facing budget deficits and potential spending cuts as a result of reduced revenues due to the recession; and WHEREAS, California's global warming law (AB 32) would impose significant additional costs on California cities and counties, specifically, up to 60% increase in electricity rates, increased natural gas costs and increased transportation fuel costs; and WHEREAS, AB 32 would also burden many local governments with a new state -mandated fee on some local facilities such as waste -treatment plants, landfills, co -generation facilities and other operations, totaling several billion dollars; and WHEREAS, the increased costs resulting from AB 32 would reduce economic activity and result in more than one million lost jobs; and WHEREAS the California Air Resources Board and others have determined that AB 32's higher energy costs and job losses will disproportionately impact low- income families and small businesses; and WHEREAS, the reduced economic activity resulting from AB 32 would reduce revenues to local governments and the state which could equal between $2.2 billion to $5.8 billion per year; and WHEREAS, according to the California Air Resources Board and other experts, the greenhouse gas emission reductions from AB 32 would have no measurable impact on global warming; and WHEREAS, the California Jobs Initiative would temporarily suspend AB 32 until such time as the economy recovers, specifically when the unemployment rate returns to 5.5% for four consecutive quarters; and WHEREAS, the California Jobs Initiative would be a prudent strategy for local governments to avoid higher costs and reduced revenues so that they would have more resources to dedicate for delivering vital public services; and WHEREAS, according to the independent Legislative Analyst, "During the likely suspension of AB 32, state administrative costs to develop and enforce regulations pursuant to AB 32 would be .reduced significantly. We estimate that the resulting state administrative cost savings and ultimately lower fees -could be in the low tens of millions of dollars annually;" and WHEREAS, according to the independent Legislative Analyst, "The suspension of the proposed cap -and -trade regulations could result in lower energy prices for consumers, including state and local government agencies that are large consumers of energy, than would be the case if AB 32 regulations were allowed to take effect. These lower energy prices, in turn, also would have positive economic impacts on the state;" and WHEREAS, the California Jobs Initiative does not have any impact on existing environmental laws in California. NOW THEREFORE, BE IT RESOLVED that the City of Costa Mesa endorses the California Jobs Initiative to temporarily suspend implementation of AB 32 (The Global Warming Solutions Act). PASSED AND ADOPTED this 6th day of July, 2010. ATTEST: Q;,6� 4__� �, J06 Folcik, City Clerk A6r6 R. Mansoor, Mayor APPROVED AS TO FORM: �/-, I L, 4 " - j Kimberly Hall Barlow, City Attorney 2 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA. MESA ) I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 10-50 and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 6th day of July, 2010, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: MANSOOR, LEECE, BEVER, MONAHAN NONE FOLEY IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 13th day of July, 2010. (SEAL) JULIE , CIT CLERK 3