HomeMy WebLinkAboutCC Resolution 14655 (City Hall Solar)1
RESOLUTION NO. 14655
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE
POWER PURCHASE AGREEMENT AMENDMENT NO. 1 WITH SOLED SOLAR
HOLDINGS V, LLC FOR THE SAN RAFAEL CITY HALL SITE
WHEREAS, the City Council of the City of San Rafael recognizes the importance of local
action and on April 6, 2009, adopted a Climate Change Action Plan with the goal of reducing
greenhouse gases by 25% by 2020 and 80% by 2050; and
WHEREAS, on February 4, 2013, the City Council adopted Resolution No. 13484,
supporting the goals and ongoing implementation of the City’s Climate Change Action Plan
including a pledge to establish operational practices that maximize the use of clean and
renewable energy; and
WHEREAS, in furtherance of the goals of the Climate Change Action Plan, on August
18, 2014, the City Council adopted Resolution No. 13791 approving a form of Power Purchase
Agreement for solar photo voltaic projects to be executed for individual projects on six City sites
with SolEd Benefit Corporation, and the City has since then completed the installation of solar
photo voltaic systems at four City sites; and
WHEREAS, on March 19, 2018 the City Council of the City of San Rafael adopted
Resolution No. 14482 authorizing the City Manager to execute a Power Purchase agreement
with SolEd Solar Holdings V, LLC, the managing member of which is SolEd Benefit Corp, for the
San Rafael City Hall site, with minor modifications to the original agreement to reflect current
energy rates, equipment modifications and other miscellaneous minor changes (the “City Hall
PPA”); and
WHEREAS, over the past year, the City has been making improvements to City Hall to
prepare for the installation of a solar voltaic system; and
WHEREAS, Section 9 of Exhibit 4 of the City Hall PPA provides that when there are
changes in law that have a material adverse effect on the cost to Seller of performing its
obligations, then the parties to the agreement will meet in good faith to negotiate amendments
to the agreement that are reasonably necessary to preserve the economic value of the
agreement to both parties; and
WHEREAS, in October 2018 SolEd Benefit Corp notified the City of material changes in
law and requested negotiation of certain alternate terms in the City Hall PPA to preserve the
economic value of the agreement to both parties; and
WHEREAS, after negotiation, SolEd Benefit Corp requests, and City staff recommends,
that the City Council approve an amendment of the City Hall PPA in the form attached hereto as
Exhibit A; and
WHEREAS, California Government Code section 4217 authorizes a public agency to
enter into an energy service contract that its governing body determines is in the best interests
of the public agency if the determination is made at a regularly scheduled public hearing, public
notice of which is given at least two weeks in advance; and
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WHEREAS, pursuant to Government Code section 4217, the City Council conducted a
public hearing on April 2, 2019 and has determined that findings can be made that the projected
anticipated cost for solar energy services for City Hall under the City Hall PPA, amended as
requested by SolEd Benefit Corp, will be less than the anticipated marginal cost of energy that
would have been consumed by the City in the absence of this purchase, and that amendment of
the City Hall PPA as requested is in the best interests of the City;
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby authorizes the
City Manager to execute “Amendment No. 1 to Solar Purchase Agreement, approved March 19,
2018” with SolEd Solar Holdings V, LLC, the managing member of which is SolEd Benefit Corp,
attached hereto as Exhibit A and incorporated herein by reference, subject to final approval as
to form by the City Attorney.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of the City of San Rafael, held on Tuesday, the 2nd of April 2019, by the following vote,
to wit:
AYES: Councilmembers: Bushey, Colin, McCullough & Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmembers: Gamblin
Lindsay Lara, City Clerk