HomeMy WebLinkAboutRESO 9294Resolution 9294
Resolution of the Council of the City of Palo Alto
Approving the Long Term Power Purchase Agreement
(Solar Power) with Brannon Solar LLC forthe Purchase of
Electricity Generated by Solar Electric Generating Facilities
A. On April 16, 2012, the City approved electric portfolio planning and
management guidelines to guide the development and management of the City's long-
term electricity acquisition plan; one of the guidelines is to reduce the carbon intensity of
the electric portfolio by pursuing a minimum level of renewable purchases of at least 33% of
retail sales by 2015.
B. The City is interested in purchasing power generated by renewable
resources for the benefit of its electric customers.
C. By purchasing renewable energy resources, the City will help reduce the
production of greenhouse gases and assist in reducing volatile organic compound
emissions.
D. Brannon Solar LLC ("Brannon") though its parent company, Trina Solar
LLC, has proposed its project in response to the City'S Request for Proposals 143383
("RFP") in November 2011; its proposal is competitive with other RFP respondent
proposals.
E. The execution of a power purchase agreement ("PP A") with Brannon is
anticipated to enable the City to meet a five-percent portion of its goal of sourcing 33%
of its energy needs from renewable electric energy.
F. The City is allocated a 100 percent share of the power from the solar
project located in Fresno County, California, which yields approximately 20 megawatts
of plant net output.
G. The PPA will allow the City to extend the agreement at the City's sole
option for an additional five-year term after the initial twenty-five-year term.
H. The County of Fresno will be the lead agency for the purposes of
compliance with the requirements of the California Environmental Quality Act.
The Council of the City of Palo Alto does resolve as follows:
SECTION 1. The Council approves the power purchase agreement between
Brannon Solar LLC, as seller, and the City of Palo Alto, as buyer. The delivery term of
the agreement is twenty five (25) years, commencing upon the commercial operation
date of the planned electric generation facility. The City will receive a 100 percent share
of the facility's net output. Spending authority under, the agreement shall not to exceed
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ninety one million dollars ($91,000,000). The Council delegates to the City Manager
the authority to sign on behalf of the City the agreement with Brannon Solar LLC, and
any confirmations executed in connection with the agreement.
SECTION 2. With respect to the Council's award of the power purchase
agreement referred to in Section 1 above, the Council waives the creditworthiness
requirements of Palo Alto Municipal Code section 2.30.340( c), as that requirement may
apply to Brannon Solar LLC.
SECTION 3. The Council finds that the adoption of this resolution does not
constitute a project under the California Environmental Quality Act and no
environmental assessment is required.
INTRODUCED AND PASSED: November 5, 2012
AYES: Burt, Espinosa, Holman, Klein, Price, Scharff, Schmid, Shepherd, Yeh
NOES:
ABSENTIONS:
ABSENT:
APPROVED AS TO FORM:
(a].~
Senior Asst. City ~I
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