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Home My WebLink AboutResolution - 3936Resolution No. 3936 Page 1 of 5 STATE OF CALIFORNIA ) RESOLUTION NO. 3936 COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO GRANTING AUTHORITY TO THE CITY MANAGER TO ENTER INTO CERTAIN CONTRACTS ON BEHALF OF SAN JACINTO POWER AND RESCINDING AND REPLACING RESOLUTION NO. 3693 WHEREAS, the City of San Jacinto (“City”) is a municipal corporation organized and validly existing under and by virtue of the Constitution and laws of the State of California; and WHEREAS, San Jacinto Power (“SJP”), the City’s community choice aggregation program and enterprise fund, has been formed by the City for the purpose of serving the retail electric service customers residing and doing business within the City of San Jacinto; and WHEREAS, the California Choice Energy Authority (“Authority”) is a joint exercise of powers authority created under the Joint Exercise of Powers Act (California Government Code section 6500, et seq.) by that certain agreement originally entitled, Joint Exercise of Powers Agreement Relating to the California Clean Energy Authority, dated August 14, 2012 (“JPA Agreement”); and WHEREAS, the City is a founding member of the JPA and has entered into that certain agreement entitled, Administrative Services Agreement (City of San Jacinto), dated December 11, 2017, an agreement with the Authority to provide community choice aggregation services to SJP; and WHEREAS, the City Council of the City of San Jacinto (the “City Council”) is the local authority with jurisdiction over SJP and acts as the governing body of SJP (the “SJP Board”); and WHEREAS, the City Council, acting as the SJP Board, finds and declares that for shorter-term transactions involving energy, resource adequacy capacity, and/or renewable energy certificates, and for longer-term transactions that are entered into for the purpose of fulfilling state-mandated compliance obligations, it is appropriate for SJP management to have discretion in contracting, consistent with its responsibilities and expertise in efficiently operating the SJP program; and WHEREAS, the City Council, acting as the SJP Board, finds and declares that time is often of the essence in such transactions and that such transactions are unlikely to raise policy considerations that require SJP Board input; and WHEREAS, the City Council, acting as the SJP Board, finds and declares that for certain longer-term commitments, such as those that are not entered into for the purpose of fulfilling state-mandated compliance obligations, it is appropriate for the SJP Board to exercise a greater degree of oversight; and DocuSign Envelope ID: C9817E12-BE53-460E-89C4-3839DEA08C95 Resolution No. 3936 Page 2 of 5 WHEREAS, the City Council, acting as the SJP Board, wishes to grant the City Manager of the City of San Jacinto authority to execute certain shorter-term SJP contracts that are consistent with SJP’s forecasted energy consumption and longer-term contracts that are for the purpose of fulfilling state-mandated compliance obligations; and WHEREAS, the City Council, acting as the SJP Board, finds and declares that SJP management may from time to time procure in excess of its requirements for energy, resource adequacy capacity, and/or renewable energy certificates, and to sell any such excess products; and WHEREAS, the City Council, acting as the SJP Board, adopted Resolution No. 3693 on January 16, 2018, granting certain procurement authority to the City Manager and California Choice Energy Authority acting on behalf of SJP; the City Council now wishes to revise those granted authorities. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JACINTO DOES HEREBY FIND, DETERMINE, AND ORDER AS FOLLOWS: Section 1. The foregoing recitals are true and correct. Section 2. Resolution No. 3693 is hereby rescinded in its entirety and replaced with the following: A. Direct Procurements. The City Manager of the City of San Jacinto, or his or her designee, (collectively, the “City Manager”) is hereby authorized to enter into contracts for the purpose of directly procuring energy products, including from time to time the procurement of excess energy products, and/or the sale of such excess energy products subject to the Procurement Limitations set forth in Paragraph C, below. B. Indirect Procurements. The City Council further authorizes the Authority to negotiate, from time to time, the Authority’s entry into purchase contracts on behalf of the City for the purchase of energy and renewable energy, and related products, and for which contracts the City shall be solely responsible for payment through the Security Agreements (each, an “Energy Contract”), which Energy Contract shall be substantially similar to the form attached to the Services Agreement as Exhibit “A”; provided that the term of any such Energy Contract shall not exceed the Procurement Limitations set forth in Paragraph C, below. The Authority shall provide the proposed Energy Contract to the City Manager, or his/her authorized designee, who is hereby authorized and directed to review the proposed Energy Contract and, in the exercise of his/her reasonable discretion, provide the Authority with his/her written approval thereof. The Authority shall have, and the City Manager may not withhold, the authority to grant a seller under the Energy Contract a first priority security interest in the collateral (i.e. the lock box account) secured by the Security Agreements. DocuSign Envelope ID: C9817E12-BE53-460E-89C4-3839DEA08C95 Resolution No. 3936 Page 3 of 5 C. Procurement Limitations. The City Manager and Authority’s authorization to enter into contracts for the purpose of procuring energy products, including from time to time the procurement of excess energy products, and/or the sale of such excess energy products, shall be subject to the following limitations: a. Short-Term Agreements: The Authority and/or City Manager may enter into Power Purchase Agreements (“PPAs”) (energy, resource adequacy capacity and/or renewable energy certificates) with terms of twelve (12) months or fewer. The City Manager shall report all such agreements to the SJP board on a monthly basis. b. Medium-Term Agreements: The Authority and/or City Manager acting in conjunction with the City Attorney, may enter into PPAs (energy, resource adequacy capacity, and/or renewable energy certificates) with terms of greater than twelve (12) months but not more than five (5) years. Notwithstanding the foregoing, the Authority and/or City Manager acting in conjunction with the City Attorney, may enter into PPAs (energy, resource adequacy capacity, and/or renewable energy certificates) for the fulfillment of state - mandated compliance obligations with terms of greater than twelve (12) months but not more than twenty (20) years. The City Manager shall report all such agreements to the SJP Board on a monthly basis. c. Long-Term Agreements: Approval by the SJP Board is required before the Authority or City Manager may enter into PPAs, such as those that are not entered into for the purpose of fulfilling state-mandated compliance obligations, with terms of greater than twenty (20) years.” Section 3. This resolution shall take effect immediately upon its adoption and applies to agreements executed beginning June 202 2. DocuSign Envelope ID: C9817E12-BE53-460E-89C4-3839DEA08C95 Resolution No. 3936 Page 4 of 5 PASSED, APPROVED, AND ADOPTED this 21st day of June 2022, by the following vote: AYES: Heath, Ruiz, Hawkins, Ledezma NAYS: None ABSENT: Ayala ABSTAIN: None CITY OF SAN JACINTO ___________________ Crystal Ruiz, Mayor ATTEST: ___ _ ___ Julia Espinoza, City Clerk APPROVED AS TO FORM: BEST, BEST & KRIEGER LLP ___ _____ Michael J. Maurer, City Attorney DocuSign Envelope ID: C9817E12-BE53-460E-89C4-3839DEA08C95 Resolution No. 3936 Page 5 of 5 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) I, Julia Espinoza, City Clerk of the City of San Jacinto, CA, do hereby certify that this is a true and correct copy of the original Resolution No. 3936, for which the original is on file in my office. AYES: Heath, Ruiz, Hawkins, Ledezma NAYS: None ABSENT: Ayala ABSTAIN: None WITNESS MY HAND AND OFFICIAL SEAL this 21st day of June 2022. _____________________________________ Julia Espinoza, City Clerk City of San Jacinto DocuSign Envelope ID: C9817E12-BE53-460E-89C4-3839DEA08C95