Resolution No. 3199-21 Solar ProjectRESOLUTION NO. 3199-21
A RESOLUTION OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT
TO AUTHORIZE ENTERING INTO POWER PURCHASE AGREEMENT
AND LICENSE AGREEMENT WITH SSI DEVCO, LLC, FOR A
SOLAR PHOTOVOLTAIC PROJECT
WHEREAS, it is the policy of the State of California and the intent of the State
Legislature to promote all feasible means of energy conservation and all feasible
uses of alternative energy supply sources; and,
WHEREAS, the South Tahoe Public Utility District ("District") desires to reduce
the steadily rising costs of meeting the energy needs at its facilities; and,
WHEREAS, pursuant to Government Code section 4217.16, the District may
request proposals for a solar project from qualified persons and, after evaluating
the proposals, the public District may award the contract on the basis of the
experience of the company, the type of technology employed by the company,
the cost to the District, and any other relevant considerations; and,
WHEREAS, the District, with the assistance of the Sustainable Energy and
Economic Development Fund's consultant, Optony, Inc. ("Optony"), requested
proposals from qualified companies to design, construct, operate and maintain a
solar photovoltaic project at the District's wastewater treatment plant ("Solar
Project") based on the overall proposed energy cost-savings, experience, and
other relevant considerations; and,
WHEREAS, after review of proposals submitted by qualified companies, SSI
DevCo, LLC, was selected as being the most qualified company based on its
proposal that was submitted in response to the requirements of the request for
proposals; and,
WHEREAS, SSI DevCo, LLC, through its consultant, ProStar Energy Solutions,
has provided the District with an analysis ("Analysis") showing the cost savings and
other benefits of implementing certain energy generation measures through the
installation of the Solar Project at the District's wastewater treatment plant; and,
WHEREAS, California Government Code section 4217.12 authorizes a public
agencies to enter into an energy service contract with respect to an energy
conservation facility and facility ground license if its governing body determines, at
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a regularly scheduled public hearing, public notice of which is given at least two
weeks in advance, that the anticipated cost to the District for the alternative
energy project will be less than the anticipated marginal cost to the District of
electrical energy that would have been consumed by the District in the absence
of such energy project and the difference, if any, between the fair rental value for
the real property subject to the facility ground license and the agreed rent, is
anticipated to be offset by below-market energy purchases or other benefits
provided under the power purchase agreement; and,
WHEREAS, the District proposes to enter into a power purchase agreement
("Power Purchase Agreement") and facility ground license ("License Agreement")
with SSI DevCo, LLC, pursuant to which SSI DevCo, LLC, will design, construct, install,
maintain, and operate the Solar Project on District's property and arrange with the
local utility for interconnection of the Solar Project with the local utility's power grid
which will generate energy for the District's wastewater treatment plant; and,
WHEREAS, the Analysis includes data showing that the anticipated cost to
the District for the electrical energy provided by the Project will be less than the
anticipated marginal cost to the District of electrical energy that would have been
consumed by the District in the absence of those purchases; and,
WHEREAS, the difference, if any, between the fair rental value for the real
property subject to the License Agreement and the agreed rent, is anticipated to
be offset by below-market energy purchases or other benefits provided under the
energy service contract due to the land use restrictions for the District's property
and limited access to the Solar Project site; and,
WHEREAS, the Board proposes to enter into the Power Purchase Agreement
and License Agreement with SSI DevCo, LLP, substantially in the form presented at
this Board of Directors meeting, subject to such further changes, insertions or
omissions as the District General Manager and legal counsel reasonably deems
necessary following the Board's adoption of this Resolution; and,
WHEREAS, pursuant to Government Code section 4217.12, the Board held a
public hearing before adoption of this Resolution, public notice of which was given
at least two weeks in advance, to receive public comment.
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NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1.That based on staff reports reviewed by the Board of Directors of the
District ("Board"), public comment and the administrative record as a whole, the Board
finds that the terms of the Power Purchase Agreement and License Agreement are in
the best interest of the District.
2.In accordance with Government Code section 4217.12, and based on
data provided by the Analysis, the Board finds that the anticipated cost to the District for
electrical energy provided by the Project under the Power Purchase Agreement will be
less than the anticipated marginal cost to the District of electrical energy that would
have been consumed by the District in the absence of those purchases.
3.In accordance with Govern ment Code section 4217.12 and based on the
land use restrictions for the District's property and limited access to the Solar Project site,
the Board finds that the difference, if any, between the fair rental value for the real
property subject to the License Agreement is anticipated to be offset by below-market
energy purchases or other benefits provided under the energy service contract.
4.The Board approves and authorizes the execution of the Power Purchase
Agreement and License Agreement with SSI DevCo, LLC, all of which shall be subject to
such further changes, insertions or omissions as the District's General Manager and legal
counsel reasonably deem necessary.
5.The District's General Manager, or his designee, is further authorized and
directed to execute and deliver any and all papers, instruments, opinions, certificates,
affidavits, and other documents and to do or cause to be done any and all other acts
and things necessary or proper for carrying out this Resolution and the terms and
conditions of the Power Purchase Agreement and License Agreement.
WE, THE UNDERSIGNED, do hereby certify that the above and foregoing
Resolution was duly adopted and passed by the Board of Directors of the South Tahoe
Public Utility District at a regularly scheduled meeting held on the 21 st day of October,
2021, by the following vote:
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AYES : Cefalu, Romsos, Sheehan, Exline
NOES: None
ABSENT: Peterson WP,� South Tahoe Public Utility District
ATTEST:
By:��
Melonie Guttry, Clerk of the Board
South Tahoe Public Utility district