HomeMy WebLinkAbout18-10 CC Resolution RESOLUTION NO. 18-10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA, ACTING AS THE
LEGISLATIVE BODY OF THE CITY OF TEMECULA AND
AS A MEMBER OF THE SOUTHWEST RIVERSIDE
COUNTY ENERGY AUTHORITY (SRCEA), AMENDING
RESOLUTION NO. 17-75 TO PROVIDE THAT ALL OF THE
APPROVALS AND AUTHORIZATIONS SET FORTH IN
RESOLUTION NO. 17-75 SHALL INCLUDE A REVISED
TERMINATION FEE TO THE PROPOSED 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. On October 17, 2017, the City Council adopted Resolution No. 17-75
entitled:
"A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, CALIFORNIA, 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"
B. SMER Research 1 notified the City that the termination fee as described in
Exhibit C to the proposed Solar Power Purchase Agreement (Sublease Area 1,
Temecula) is not correct and has requested that the City approve the revised Termination
Fee.
SECTION 2. Amendment to Resolution No. 17-75. Resolution No. 17-75 is
hereby amended to provide that all of the approvals and authorizations set forth in
Resolution No. 17-75 shall include the revised Termination Fee of $6,764,024 in year 1
diminishing over the 20 year term of the Power Purchase Agreement (Subarea 1,
Temecula) as described on a revised Exhibit C to the proposed Power Purchase
Resos 18-10 1
Agreement (Subarea 1, Temecula), which Exhibit C is attached hereto as Attachment A
and incorporated herein as though set forth in full.
SECTION 3. No Other Changes to Resolution. Except as specifically
provided in this Resolution, all other terms and provisions of Resolution No. 17-75 shall
remain in full force and effect.
SECTION 4. Effective Date. This Resolution shall take effect immediately
upon its adoption.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
Temecula this 13th day of February, 2018.
Matt Rahn, Mayor
ATTEST:
Randi i y Clerk
[SEAL]
Resos 18-10 2
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. 18-10 was duly and regularly adopted by the City Council of the
City of Temecula at a meeting thereof held on the 13th day of February, 2018, by the
following vote:
AYES: 4 COUNCIL MEMBERS: Comerchero, Edwards, Naggar,
Stewart
NOES: 0 COUNCIL MEMBERS: None
ABSTAIN: 1 COUNCIL MEMBERS: Rahn
ABSENT: 0 COUNCIL MEMBERS: None
Randi Johl, City Clerk
Resos 18-10 3
ATTACHMENT A
Exhibit C
Termination Values
Year of Sublease Area 1 Sublease Area 2
Contract Total (Temecula) (Lake Elsinore)
1 $10,972,750.04 $6,764,024.00 $4,208,726.04
2 $10,508,111.53 $6,477,603.00 $4,030,508.53
3 $10,035,889.13 $6,186,507.00 $3,849,382.13
4 $9,555,893.04 $5,890,619.00 $3,665,274.04
5 $9,068,541.80 $5,590,197.00 $3,478,344.80
6 $8,572,424.07 $5,284,371.00 $3,288,053.07
7 $8,067,935.67 $4,973,385.00 $3,094,550.67
8 $7,554,865.71 $4,657,109.00 $2,897,756.71
9 $7,033,477.00 $4,335,705.00 $2.697,772.00
10 $6,502,609.64 $4,008,458.00 $2,494,151.64
11 $5,962,500.49 $3,675,514.00 $2,286,986.49
12 $5,412,922.42 $3,336,733.00 $2,076,189.42
13 $4,853,963.04 $2,992,169.00 $1,861,794.04
14 $4,284,733.38 $2,641,274.00 $1,643,459.38
15 $3,705,304.80 $2,284,092.00 $1,421,212.80
16 $3,115,421.00 $1,920,465.00 $1,194,956.00
17 $2,514,992.76 $1,550,338.00 $964,654.76
18 $1,903,414.98 $1,173,338.00 $730,076.98
19 $1,280,578.98 $789,398.00 $491,180.98
20 $646,202.49 $398,344.00 $247,858.49
Thereafter $0.00 $0.00 $0.00
Termination Value reflects the amount required as payment due to a PPA Event of
Default (Section 13(a)). The respective termination values for the Lease Area 1 (City of
Temecula) and Lease Area 2 (City of Lake Elsinore) are proportionate to the amount of
energy purchased by the JPA to benefit each City at the initiation of the Agreement.
Should the proportionate energy purchased by the Purchaser JPA participants change
during the term of agreement, the relative termination values would also change
proportionately.
Exhibit C- 1
Solar Power Purchase Agreement(Sublease Area 1 (City of Temecula))
DOCS 124394-000004/3049604.4