REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to Execute a Loan Guaranty in an Amount Not to Exceed $1,020,000 plus Enforcement Costs with River City Bank
Report
BACKGROUND
Since formation, the Silicon Valley Clean Energy Authority (SVCEA) has convened its Board of Directors, hired a Chief Executive Officer, and made significant progress toward launch of a CCE program. In July, SVCEA submitted its Implementation Plan for certification by the California Public Utilities Commission, and it established a tentative customer rollout approach that seeks a swift implementation of all customers between April and October 2017. Actions in progress related to staffing the organization, procuring energy and additional support services, and community engagement are all geared toward that launch period. As part of the startup, the SVCEA also conducted a competitive procurement and secured banking and credit services with River City Bank of Sacramento.
The credit facility provided by River City (as detailed in the November 29th Report to Council) required a guaranty to back the credit. Originally, the Cities of Sunnyvale and Mountain View anticipated sharing this guaranty in shares of two thirds to Sunnyvale and one third to Mountain View. However the City of Gilroy and the County of Santa Clara also agreed to share the risk and back the credit.
In support of the SVCEA launch, the City Council adopted Resolution No. 792-16 on November 29, 2016 authorizing the City Manager to execute a loan guaranty in an amount not to exceed $1,020,000 with River City Bank and to execute other necessary documents. This action was also completed by three other agencies, the City of Mountain View, the City of Gilroy, and the County of Santa Clara.
EXISTING POLICY
Climate Action Plan, Provide a Sustainable Energy Portfolio (EP), Reduction Measure EP-1.1: Create or join a community choice aggregation (CCA) program to take control of power generation for c...
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