NVF:BCK:CLS
10/10/2023
T-31685.004 \ 2059258 1
Council Agenda: 10/24/2023
Item No.: 6.1
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO.
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SAN JOSE AUTHORIZING THE DIRECTOR OF THE
COMMUNITY ENERGY DEPARTMENT OR DESIGNEE TO
NEGOTIATE AND EXECUTE A LONG-TERM
AGREEMENT WITH SUN POND, LLC, A SUBSIDIARY OF
LONGROAD DEVELOPMENT COMPANY, LLC, TO BUY
RENEWABLE ENERGY, RENEWABLE ENERGY
CREDITS, RESOURCE ADEQUACY, BATTERY TOLLING
RIGHTS, AND ATTRIBUTES ASSOCIATED WITH A
SOLAR PHOTOVOLTAIC AND BATTERY STORAGE
FACILITY FOR A TERM OF 20 YEARS BEGINNING 2026
THROUGH 2046, IN AN ESTIMATED ANNUAL AMOUNT
OF $11,566,000 AND A NOT-TO-EXCEED AMOUNT OF
$231,320,000 IN AGGREGATE, TO BE PAID SOLELY
FROM THE SAN JOSE CLEAN ENERGY OPERATING
FUND AND SUBJECT TO THE ANNUAL
APPROPRIATION OF FUNDS; THE TERMS OF THIS
RESOLUTION SUPERSEDING SECTION (C) OF
RESOLUTION NO. RES2023-9
WHEREAS, on January 24, 2023, the Council of the City of San José (“City”) adopted Resolution No. RES2023-9, which authorized the Director of the Community Energy Department or the Director’s designee to negotiate and execute an agreement with Sun Pond, LLC, a subsidiary of Longroad Development Company, LLC (the “Sun Pond Agreement”), to buy renewable energy, renewable energy credits, resource adequacy, battery tolling rights, and attributes associated with a solar photovoltaic and battery storage facility for a term of 20 years beginning 2025 through 2045, in an amount not to exceed $11,260,000 annually and $225,200,000 in the aggregate, to be paid solely from the San José Clean Energy Operating Fund and subject to the annual appropriation of funds; and
WHEREAS, the Sun Pond Agreement has not yet been executed and staff has negotiated an increase in the total cost of the agreement to $231,320,000 and a term that begins in 2026 and ends in 2046; and
NVF:BCK:CLS
10/10/2023
T-31685.004 \ 2059258 2
Council Agenda: 10/24/2023
Item No.: 6.1
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the City desires to negotiate and execute an agreement with Sun Pond, LLC, a subsidiary of Longroad Development Company, LLC, to buy renewable energy, renewable energy credits, resource adequacy, battery tolling rights, and attributes associated with a solar photovoltaic, and battery storage facility for a term of 20 years beginning 2026 through 2046, in an estimated annual amount of $11,566,000 and a not- to-exceed amount of $231,320,000 in aggregate;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
Section 1. The Director of the Community Energy Department or designee is hereby authorized to negotiate and execute a long-term agreement with Sun Pond, LLC, a subsidiary of Longroad Development Company, LLC, to buy renewable energy, renewable energy credits, resource adequacy, battery tolling rights, and attributes associated with a solar photovoltaic and battery storage facility for a term of 20 years beginning 2026 through 2046, in an estimated annual amount of $11,566,000 and a not- to-exceed amount of $231,320,000 in aggregate, to be paid solely from the San José Clean Energy Operating Fund and subject to the annual appropriation of funds.
Section 2. This Resolution shall supersede Section (c) of Resolution No. RES2023-9. //
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NVF:BCK:CLS
10/10/2023
T-31685.004 \ 2059258 3
Council Agenda: 10/24/2023
Item No.: 6.1
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2023, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk