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HomeMy WebLinkAbout17-75 CC Resolution RESOLUTION NO. 17-75 ' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF TEMECULA AND AS A MEMBER OF THE SOUTHWEST RIVERSIDE COUNTY ENERGY AUTHORITY (SRCEA), APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY BY RESPONSIBLE OFFICERS OF THE SRCEA OF THE SOLAR POWER PURCHASE AGREEMENT, THE SUBLEASE AGREEMENT, THE LICENSE USE AGREEMENT, AND THE INTERCONNECTION AGREEMENT, AND APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE GUARANTEE OF THE POWER PURCHASE AGREEMENT THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The City Council of the City of Temecula ("City Council") does hereby find, determine and declare that: A. The City Council has authorized the formation of the Southwest Riverside ' County Energy Authority ("SRCEA"), a joint exercise of powers authority duly organized and existing under and pursuant to that certain Joint Powers Agreement by and between the City of Lake Elsinore and the City of Temecula, under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 (commencing with Section 6500) of the California Government Code (the "Act'). B. The City of Temecula ("City"), acting through the SRCEA, desires to participate in the Local Government Renewable Self-Generation Program pursuant to Public Utilities Code Section 2830 wherein Southern California Edison ("SCE") offer a tariff (commonly referred to as the 'The Renewable Energy Self-Generation Bill Credit Transfer Program" or "RES-BCT' tariff) which allows a local government to generate electricity at one "generating account' and transfer any available bill credit to one or several "benefiting accounts." C. SMER Research 1, LLC desires to install an electricity grid-connected photovoltaic solar power plant on a portion of the Santa Margarita Ecological Research owned by San Diego State University and utilize such plant in connection with the RES- BCT. D. The proposed solar power plant for the benefit of the City of Lake Elsinore account will have generating capacity of approximately 1.43MW (2,424,000 kilowatt hours) of electricity and an adjacent facility that is also proposed that will produce about ' 2.25MW of electricity for the benefit of the City of Temecula account. Resos 17-75 1 E. SMER Research 1, LLC and San Diego State University would also t engage in research at Santa Margarita Ecological Research that would benefit future renewable energy development and habitat restoration in Riverside County. F. The City Council desires to authorize its representatives to the SRCEA to approve and authorize the execution and delivery of certain agreements, namely the Solar Power Purchase Agreement, the Sublease Agreement, the License Agreement, and the Interconnection Agreement (as such terms are defined below), the forms of which are on file in the Office of the City Clerk. G. The City Council desires to approve and authorize execution and delivery of the Guarantee of the Solar Power Purchase Agreement (Exhibit I to the Power Purchase Agreement). H. On May 10, 2016 the City Council adopted Resolution No. 2016-27 approving certain agreements relating to the City of Temecula's purchase of solar power from SMER 1 and the City Manager executed on behalf of the City several certificates and agreements to implement the agreements. The approval of the agreements approved by Resolution No. 2016-27 is conditioned upon the termination of these agreements and termination of the certificates and agreements executed by the City Manager of the City of Temecula ("City Manager'). SECTION 2. In accordance with the California Environmental Quality Act (CEQA), the ' City's approval of the proposed Power Purchase Agreement, Sublease, License Agreement and Interconnection Agreement is exempt from CEQA and further environmental review and a Notice of Exemption will be filed in compliance with CEQA under Section 15061(b)(3) of the CEQA Guidelines. The proposed agreements only provide for the purchase of electricity by the City of Temecula from SMER Research 1, LLC. The City is not approving any facilities for the generation of electricity and is not participating in the construction of any structures or facilities for the generation of electricity. The City is only approving the purchase of electricity. The Sublease and License Agreement with respect to the solar generating site are only pass-throughs of the obligations of and benefits to SMER Research 1, LLC of the existing Ground Lease between SMER Research 1, LLC and San Diego State University dated October 21, 2014 and do not provide for any new or modified structures or facilities or new or modified uses beyond those designated in the Ground Lease. As such, there is no possibility that the proposed agreements will have a significant effect on the environment. SECTION 3. The form of the Solar Power Purchase Agreement between SMER Research 1 and SRCEA ("Power Purchase Agreement") is hereby approved. The designated members of the City Council (and/or designated alternate) serving as the City's representatives on the SRCEA's Board of Directors (each, a "Responsible Officer"), are hereby authorized to approve and take such other actions as are necessary to execute and deliver the Power Purchase Agreement in the form on file with the Office of ' the City Clerk of the City of Temecula ("City Clerk") with such changes, insertions and omissions as may be approved by the Responsible Officers, with the advice of the City Attorney of the City of Temecula ("City Attorney"), such approval to be conclusively Resos 17-75 2 evidenced by the execution and delivery thereof. The approval of this agreement and the actions of the Responsible Officers are conditioned upon the termination of the Agreements and certifications described in Section 9. SECTION 4. The form of the Sublease Agreement between SMER Research 1, LLC and SRCEA ("Sublease Agreement') is hereby approved. The Responsible Officers are hereby authorized to approve and take such other actions as are necessary to execute and deliver the Sublease Agreement in the form on file with the Office of the City Clerk with such changes, insertions and omissions as may be approved by the Responsible Officers, with the advice of the City Attorney, such approval to be conclusively evidenced by the execution and delivery thereof. The approval of this agreement and the actions of the Responsible Officers are conditioned upon the termination of the Agreements and certifications described in Section 9. The approval of this agreement and the actions of the Responsible Officers are conditioned upon the termination of the Agreements and certifications described in Section 9. SECTION 5. The form of the License Use Agreement between SMER Research 1, LLC and SRCEA ("License Agreement') is hereby approved. The Responsible Officers are hereby authorized to approve and take such other actions as are necessary to execute and deliver the License Agreement in the form on file with the Office of the City Clerk with such changes, insertions and omissions as may be approved by the Responsible Officers, with the advice of the City Attorney, such approval to be conclusively evidenced by the ' execution and delivery thereof. The approval of this agreement and the actions of the Responsible Officers are conditioned upon the termination of the Agreements and certifications described in Section 9. SECTION 6. The form of the Rule 21 Generator Interconnection Agreement (GIA) for Exporting Generating Facilities Interconnection Under the Fast Track Process between (intentionally blank] and Southern California Edison Company (the "Interconnection Agreement') is hereby approved. The Responsible Officers are hereby authorized to approve and take such other actions as are necessary to execute and deliver the Interconnection Agreement in the form on file with the Office of the City Clerk with such changes, insertions and omissions as may be approved by the Responsible Officers, with the advice of the City Attorney, such approval to be conclusively evidenced by the execution and delivery thereof. The approval of this agreement and the actions of the Responsible Officers are conditioned upon the termination of the Agreements and certifications described in Section 9. SECTION 7. The form Guarantee to Solar Power Purchase Agreement (Exhibit I of the Power Purchase Agreement; hereinafter the "Guarantee") is hereby approved. The City Manager is hereby authorized and directed to execute the Guarantee on behalf of the City of Temecula. The approval of this agreement and the actions of the City Manager are conditioned upon the termination of the Agreements and certifications described in Section 9. Resos 17-75 3 ' SECTION 8. The Responsible Officers, and each of them, are authorized and directed, for and in the name and on behalf of the City and as the City's representatives serving on the SRCEA's Board of Directors, to take all actions necessary and convenient to implement the agreements described in this resolution and to enter into such additional agreements as many be necessary and convenient to implement the agreements, including but not limited to, executing estoppel certificates, operating memoranda and agreements, certifications, escrow and similar agreements and actions. The authority to approve such agreements and take the actions described in this Section are conditioned upon the termination of the 2016 Agreements and related certifications described in Section 9. SECTION 9. On May 10, 2016, the City Council adopted Resolution No. 2016-27 approving the following agreements (the "2016 Agreements"): (1) "Solar Power Purchase Agreement" between the City and SMER Research 1, LLC; (2) "Sublease Agreement" between the City and SMER Research 1, LLC, on City Controlled Real Property, Located at the Santa Margarita Ecological Research Reserve Solar Initiative Research Site, Riverside County California," as amended in 2017; (3) "License Agreement by and between SMER Research 1, LLC, and the City of Temecula on City Controlled Real Property, Located at the Santa Margarita Ecological Research Reserve Solar Initiative Research Site, Riverside County California;" and (4) "Rule 21 Generator Interconnection Agreement(GIA)for Exporting Generating Facilities Interconnecting Under the Fast Track Process between the City of Temecula and Southern California Edison Company Project: ' SDSU 2 (SCE GFID 8284)." The City Manager has executed on behalf of the City certain certifications and estoppel certificates related to and contemplated by the 2016 Agreements. The City Manager is hereby authorized and directed to enter into a termination agreement or termination agreements for the 2016 Agreements and to advise the parties to which City Manager has provided certifications and estoppel certificates that the 2016 Agreements have been terminated and the certificates and estoppel certificated related to and contemplated by the 2016 Agreements have been withdrawn and are no longer valid. SECTION 10. The City Manager is authorized and directed to take all actions necessary and convenient to implement the agreements approved by this Resolution and to enter into such additional agreements on behalf of the City and provide such certifications and estoppel certificates on behalf of the City related to or contemplated by the agreements approved by this resolution or as may be necessary or convenient to implement the agreements approved by this Resolution, including but not limited to, estoppel certificates, operating memoranda and agreements, certifications, escrow, and similar agreements and actions. SECTION 11. This Resolution shall take effect immediately upon its adoption. Resos 17-75 4 ' PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 24th day of October, 2017. Maryann Edwards, Mayor ATTEST: Randi Johl, City Clerk [SEAL] 1 Resos 17-75 5 STATE OF CALIFORNIA ) ' COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 17-75 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 24th day of October, 2017, by the following vote: AYES: 3 COUNCIL MEMBERS: Comerchero, Naggar, Edwards NOES: 0 COUNCIL MEMBERS: None ABSTAIN: 1 COUNCIL MEMBERS: Rahn ABSENT: 1 COUNCIL MEMBERS: Stewart Randi Johl, City Clerk Resos 17-75 6