HomeMy WebLinkAboutCC Reso No 2017-113 Solar Power Purchase Agreement (SCREA)RESOLUTION NO. 2017 -113
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE
AND AS A MEMBER OF THE SOUTHWEST RIVERSIDE COUNTY ENERGY
AUTHORITY ( SRCEA), APPROVING AND AUTHORIZING THE EXECUTION AND
DELIVERY BY RESPONSIBLE OFFICERS 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
Whereas, the City of Lake Elsinore City Council (Council) of the City of Lake Elsinore (City) 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 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 (Act); and,
Whereas, the City of Lake Elsinore, 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) offers a tariff, Renewable Energy Self- Generation Bill
Credit Transfer (RES -BCT), which allows a local government to generate electricity at one
generating account and transfer any available bill credit to one or several benefiting accounts;
and,
Whereas, Santa Margarita Ecological Research (SMER Research) 1, LLC desires to install an
electricity grid- connected photovoltaic solar power plant on a portion of the SMER RESEARCH 1
owned by San Diego State University and utilize such plant in connection with the RES -BCT;
and,
Whereas, the proposed solar power plant for the benefit of the City account will have generating
capacity of approximately 1.43MW (2,424,000 kilowatt hours) of electricity and an adjacent facility
that is also proposed produce about 2.25MW of electricity for the benefit of the City of Temecula
account; and,
Whereas, SMER Research 1, LLC and San Diego State University will engage in research at
SMER Research 1, benefiting future renewable energy development and habitat restoration in
Riverside County; and,
Whereas, 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; and
Whereas, 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).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY
FIND, DETERMINE AND ORDER AS FOLLOWS:
CC Reso. No. 2017 -113
Page 2 of 3
Section 1. 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
Lake Elsinore 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 2. 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, or designated alternate, serving as the City's representatives on the SRCEA's Board of
Directors (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 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.
Section 3. 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.
Section 4. 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.
Section 5. The form of the Rule 21 Generator Interconnection Agreement (GIA) for Exporting
Generating Facilities Interconnection Under the l=ast Track Process between
[intentionally blank] and Southern California Edison Company (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.
Section 6. 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 Lake Elsinore.
CC Reso. No. 2017 -113
Page 3 of 3
Section 7. 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.
Section 9. This Resolution shall take effect from immediately upon its adoption
Passed and Adopted on this 10th day of October 2017.
Robert E. Magee
Mayor
Attest
usan M. Domen, MMC
City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, hereby certify that
Resolution No. 2017- 113 was adopted by the City Council of the City of Lake Elsinore, California,
at the Regular meeting of October 10, 2017, and that the same was adopted by the following vote:
AYES: Council Members Hickman, Manos and Tisdale; Mayor Pro Tern Johnson and Mayor Magee
NOES: None
ABSENT: None
ABSTAIN: None
t
usan M. Domen, MMC
City Clerk