Attachment A
* NOT YET APPROVED *
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Resolution No. _________
Resolution of the Council of the City of Palo Alto Approving an Edison Electric Institute Master Power Purchase and Sale Agreement with Silicon Valley Clean Energy Authority and Delegating Authority to the City Manager to Transact Under the Master Agreement for Electricity-Related Commodities and Services
R E C I T A L S
A. The City of Palo Alto seeks to ensure an active set of creditworthy counterparties to meet its electric supply portfolio planning objectives, internal risk management controls, and external operational and regulatory requirements.
B. Silicon Valley Clean Energy Authority (SVCE) is a non-profit, community-owned agency with investment-grade credit ratings.
C. Approval of the Edison Electric Institute Master Power Purchase and Sale Agreement (Master Agreement) with SVCE will provide the City with an additional electric supplier to transact with efficiently and competitively.
D. The recommended Master Agreement with SVCE has been negotiated under terms and conditions acceptable to the City, reviewed and approved by the City Attorney’s Office, and deemed suitable by the City’s Energy Risk Manager.
E. Palo Alto Municipal Code (PAMC) Section 2.30.340 permits the use of Master Agreements to buy and/or sell electricity, gas, and related services through preapproved suppliers, subject to the City’s Energy Risk Management Policy, Guidelines, and Procedures.
F. Executing this Master Agreement does not commit the City to any transactions with SVCE but allows for future transactions to be executed efficiently.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby approves the execution of the Edison Electric Institute Master Power Purchase and Sale Agreement with Silicon Valley Clean Energy Authority (SVCE) (Exhibit A).
SECTION 2. The Council hereby delegates authority to the City Manager or their designee, the Director of Utilities, to transact under the Master Agreement for electricity- related commodities and services and to take any actions necessary to implement this Resolution, subject to the following limitations:
(a) The date for delivery of the electricity products for each transaction shall not exceed 36 months from the date the transaction is executed;
(b) The delivery date for any transaction shall not extend beyond December 2027; Attachment A
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(c) The maximum aggregate transaction limit under the Master Agreement shall be $25 million;
(d) All transactions shall be subject to the Palo Alto Municipal Code; and (e) All transactions shall be subject to the City’s Energy Risk Management Policies, Guidelines, and Procedures.
SECTION 3. The City Council’s approval of this electric master agreement does not meet the definition of a project under the California Environmental Quality Act (CEQA), pursuant to Public Resources Code Section 21065 and CEQA Guidelines 15378(b)(5) because this activity would not result in a reasonably foreseeable direct or indirect change in the environment.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________ Assistant City Attorney City Manager
___________________________
Director of Utilities