City Council

11.    MUNICIPAL SERVICES COMMITTEE: AUTHORIZE THE CITY MANAGER TO ENTER INTO A CLEAN ENERGY PURCHASE CONTRACT\nFOR PREPAID\nRENEWABLE ENERGY AND SUPPORTING AGREEMENTS, INCLUSIVE OF FIVE LIMITED ASSIGNMENTS OF EXISTING RENEWABLE\nPOWER PURCHASE\nAGREEMENTS, FOR THE PURPOSE OF COST SAVINGS (Water  & Power Dept.)\nRecommendation: It is recommended that the City Council:\n(1)    Find that the proposed action is not a project subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 21065 of\nCEQA and Sections 15060 (c)(2), 15060 (c)(3),\nand 15378 of the State CEQA Guidelines and, as such, no environmental document pursuant to CEQA is required for the project;\n(2)    Authorize the City Manager to enter into the following interrelated agreements (“Prepay Agreements”), in substantial form, for\nparticipation in a prepay renewable energy\ntransaction that will create a discount for the City of Pasadena’s (“City”) Water and Power Department (“PWP”) in its purchase of certain\nrenewable energy:\na.    A Limited Assignment Agreement (“LAA”) for Antelope Big Sky Ranch Solar (“Antelope Big Sky Ranch LAA”) with the Southern\nCalifornia Public Power Authority (“SCPPA”),\nassigning to SCPPA certain of the City’s rights and obligations to receive and pay for renewable energy and associated resources under\nthe City’s Renewable Power Purchase Sale\nAgreement (“Antelope Big Sky Ranch PPA”) with Antelope Big Sky Ranch, LLC;\nb.   A LAA for Summer Solar (“Summer Solar LAA”) with SCPPA, assigning to SCPPA certain of the City’s rights and obligations to receive\nand pay for renewable energy and\nassociated resources under the City’s Renewable Power Purchase Sale Agreement and Amendment (“Summer Solar PPA”) with\nSummer Solar, LLC;\nc.    A LAA for Columbia II Solar (“Columbia II Solar LAA”) with SCPPA, assigning to SCPPA certain of the City’s rights and obligations to\nreceive and pay for renewable\nenergy and associated resources under the City’s Renewable Power Purchase Sale Agreement (“Columbia II Solar PPA”) with RE\nColumbia Two, LLC;\nd.    A LAA for Kingbird Solar A (“Kingbird A Solar LAA”), the City’s Renewable Power Purchase Agreement, assigning to SCPPA certain of\nthe City’s rights and obligations\nto receive and pay for renewable energy and associated resources (“Kingbird A Solar PPA”) with Kingbird Solar A, LLC;\ne.    A LAA for CalWind (“CalWind LAA”), the City’s Renewable Power Purchase Agreement, assigning to SCPPA certain of the City’s rights\nand obligations to receive and\npay for renewable energy and associated resources (“CalWind PPA”) with CalWind Resources, Inc. coming from their Wind Resource\nII facility;\nf.     A Clean Energy Purchase Contract (“CEPC”) with SCPPA by which SCPPA will sell to the PWP at discounted prices the prepaid\nrenewable energy and associated resources\ngenerated by the assigned Antelope Big Sky Ranch PPA, CalWind PPA, Columbia II Solar PPA, Kingbird A Solar PPA, and Summer\nSolar PPA (together, the “PPAs”) for a term of up to 30 years;\ng.    A Custodial Agreement with J. Aron & Company LLC (“J. Aron”) and U.S. Bank Trust Company, National Association, or selected\nfinancial institution as selected by J. Aron,\nas custodian, for a term equal to the CEPC’s term, to establish bank accounts for and administer payments to Antelope Big Sky Ranch\nSolar, CalWind, Columbia II Solar,\nKingbird A Solar, and Summer Solar in satisfaction of performance under their respective PPAs;\nh.    A Project Agreement with SCPPA by which SCPPA will administer this project and allocate administrative direct costs associated with\nthe transaction to all\nSCPPA project participants including PWP;\ni.      A Letter Agreement with SCPPA for a term equal to the terms of the Antelope Big Sky Ranch Solar, CalWind, Columbia II Solar,\nKingbird A Solar, and Summer Solar\n(together, the “LAAs”) providing that the parties may terminate the LAAs only upon certain specified events, such as Antelope Big Sky\nRanch Solar, CalWind, Columbia II Solar,\nKingbird A Solar, or Summer Solar’s termination or suspension of performance under the assigned PPAs; and\n(3)    Authorize the City Manager to (a) execute and deliver the Prepay Agreements with any de minimis changes that, as determined by the\nCity Attorney’s Office,\ndo not substantially change the terms and conditions of the Prepay Agreements; (b) execute and deliver any related documents, such as\namendments of any of the Prepay Agreements\nor any agreements necessary to carry out the transactions contemplated by the Prepay Agreements; and (c) take such actions as are\nnecessary or advisable to implement and administer the Prepay Agreements.\nCity Council