HomeMy WebLinkAbout25168RESOLUTION NO. 25168
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, APPROVING AN
UNCONDITIONAL GUARANTY OF THE ELECTRICITY
PROCUREMENT OBLIGATIONS OF DESERT
COMMUNITY ENERGY, NOT TO EXCEED $25 MILLION,
UNDER A RESOURCE MANAGEMENT AGREEMENT WITH
THE ENERGY AUTHORITY, INC..
A. Desert Community Energy ("DCE") is a joint powers authority established
on October 30, 2017, for the purpose of implementing community choice aggregation
programs under Public Utilities Code Section 366.2.; and
B. DCE currently provides clean energy for the residents and businesses of
the City, which has resulted in a substantial reduction in greenhouse gas emissions within
the City; and
C. DCE's contracts for power procurement and other services under a
Resource Management Agreement with The Energy Authority, Inc. (TEA), a non-profit
corporation providing wholesale power and portfolio management services to more than
50 public power agencies across the country.
D. DCE's transactions for the purchase and sale of electricity products not
covered by long-term agreements are executed by TEA as principal, using TEA's
counterparty credit and contracts. These purchases are currently guaranteed by two of
TEA's Equity Owners (EOs), who are public power agencies.
E. TEA advised DCE staff that its EOs intend to cease providing guaranties of
TEA's purchases of electricity products, effective December 29, 2023.
F. DCE has asked the City to provide a guaranty of DCE's power procurement
obligations under the Resource Management Agreement with TEA, not to exceed $25
million, to replace the expiring guaranties.
G. The City Attorney has reviewed and approved the attached form of
Guaranty.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. That the findings and determinations reflected above are true and
correct, and are incorporated by this reference herein as the cause and foundation for the
action taken by the and through this Resolution.
Resolution No. 25168
Page 2
SECTION 2. The City Council hereby approves the unconditional guaranty of
Desert Community Energy's obligations to The Energy Authority, Inc. for purchases of
electricity products under the Resource Management Agreement with TEA in an amount
not to exceed $25,000,000 and agrees that the City of Palm Springs will be liable to TEA
for the payment of all amounts due to TEA in connection with purchases of electricity
products upon the occurrence of an event of default by DCE with respect to its obligations
under the Resource Management Agreement with TEA.
SECTION 3. The City Manager is hereby authorized to finalize and execute the
Guaranty, with the advice of the City Attorney, in substantially the form which is attached
to this resolution.
SECTION 4. This Resolution will become effective immediately upon adoption
and remain effective unless superseded by a subsequent resolution.
ADOPTED THIS 14TH DAY OF DECEMBER 2023.
r_
,"W
Scott C. Stiles, City Manager
ATTEST:
Brenda Pee, City Clerk
Resolution No. 25168
Page 3
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )
CITY OF PALM SPRINGS)
CERTIFICATION
ss.
I, BRENDA PREE, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 25168 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on December 14, 2023, by the
following vote
AYES: Councilmembers Garner, Holstege, Middleton; Mayor Pro Tern deHarte; and
Mayor Bernstein
NOES: None
ABSENT: None
RECUSED: None
IN WITNESS WHEREOF, I have hereunto t my hand and affixed the official seal of the
City of Palm Springs, California, this ��ay of December 2 3.
renda P ee, MMC, CERA, City Clerk
City of Palm Springs, California
1