HomeMy WebLinkAbout2020-07-14; City Council; Resolution 2020-145- Exhibit 1
RESOLUTION NO. 2020-145
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY OF CARLSBAD TO PROVIDE UP TO A
$2,250,000 GUARANTY FOR A $2,500,000 CREDIT OPTION FOR CLEAN
ENERGY ALLIANCE
WHEREAS, at the October 8, 2019, City Council meeting, the City Council approved Resolution
2019— 197 approving the city's participation in the new regional Community Choice Aggregation (CCA)
program the Clean Energy Alliance (CEA); and
WHEREAS, the CEA consists of the cities of Carlsbad, Del Mar and Solana Beach (Member
Agencies) and is scheduled to launch in May 2021; and
WHEREAS, initial start-up costs for fiscal year 2019-20 were funded through advances from the
founding member agencies of Carlsbad, Del Mar and Solana Beach in the amount of $150,000 from
each member agency, for a total $450,000; and
WHEREAS, future start-up costs totaling $4,450,000 to be incurred in fiscal year 2020-21 are to
be funded through a credit solution provided by a financial institution or other third party; and
WHEREAS, as part of the credit solution being proposed, security is required in the form of a
guaranty or cash collateral deposit for $2,500,000 of the credit solution. The security can be satisfied
by one or more of the member agencies or a creditworthy third party; and
WHEREAS, the City of Carlsbad's portion of the guaranty would be $2,250,000 based on its
prorated share of the expected total CEA load; and
WHEREAS, resort to the guaranty or cash collateral would occur in the event of a default by
CEA, with each member agency responsible for its prorated share; and
WHEREAS, staff has evaluated the risk to the city of a default by CEA and has determined that
the risk is low.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
i. That the above recitations are true and correct.
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2. That the City Council authorizes the City to provide up to a $2,250,000 guaranty for a
$2,500,000 credit option for the CEA as proposed by River City Bank or other third party
approved by the CEA Board.
3. That the City Council authorizes the City Manager to act on behalf of the City, in
consultation with the City Attorney, to negotiate and execute all agreements and
amendments necessary for the guaranty.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 14th day of July 2020, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Schumacher.
NAYS: Hall.
ABSENT: None.
MATT HALL, Mayor
ARBAj ENGLE , City Cl rk
SEAL)
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