HomeMy WebLinkAbout10575ORDINANCE NO. 10575
AN ORDINANCE APPROVING AMENDMENT OF TWO SOLAR
PRODUCTION AGREEMENTS BETWEEN THE CITY OF
PUEBLO AND CEC SOLAR #1117, LLC. AND CEC SOLAR
#1118, LLC RELATING TO AND UPDATING THE POWER
PURCHASE AGREEMENT RATE SCHEDULES FOR EACH
AGREEMENT, AND AUTHORIZING EXECUTION THEREOF BY
THE MAYOR
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Amendment to two Solar Purchase Agreements ("Amendment") by and between
CEC Solar #1117, LLC., and CEC Solar #1118, LLC., a copy of which is attached hereto after
having been approved as to form by the City Attorney, is hereby approved. The Mayor is
authorized to execute said Amendment for and on behalf of the City and the City Clerk is
authorized to affix the seal of the City thereto and attest same.
SECTION 2.
The officers of the City are authorized to perform any and all acts consistent with this
Ordinance and the attached Amendment to implement the policies and procedures described
herein.
SECTION 3.
This Ordinance shall become effective immediately upon passage and approval.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on October 10, 2023.
Final adoption of Ordinance by City Council on October 23, 2023.
____________________________
President of City Council
Action by the Mayor:
☒ Approved on October 25, 2023 .
☐ Disapproved on ______________ based on the following objections:
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____________________________
Mayor
Action by City Council After Disapproval by the Mayor:
☐ Council did not act to override the Mayor's veto.
☐ Ordinance re-adopted on a vote of ____________, on _____________
☐ Council action on _______ failed to override the Mayor’s veto.
____________________________
President of City Council
ATTEST
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City Clerk
City Clerk's Office Item # R6
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: October 23, 2023
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM: Andrew Hayes, Public Works Director
SUBJECT: AN ORDINANCE APPROVING AMENDMENT OF TWO SOLAR
PRODUCTION AGREEMENTS BETWEEN THE CITY OF PUEBLO AND
CEC SOLAR #1117, LLC. AND CEC SOLAR #1118, LLC RELATING TO
AND UPDATING THE POWER PURCHASE AGREEMENT RATE
SCHEDULES FOR EACH AGREEMENT, AND AUTHORIZING
EXECUTION THEREOF BY THE MAYOR
SUMMARY:
Attached is an Ordinance approving the amendment of two Solar Production
Agreements between City and CEC Solar #1117, LLC and CEC Solar #1118, LLC
relating to and updating the rates for the City's purchase of power produced pursuant to
the Solar Production Agreements, and authorizing execution thereof by the Mayor.
PREVIOUS COUNCIL ACTION:
On June 26, 2017, City Council passed Resolution No. 13708, approving two Solar
Purchase Agreements between the City and CEC Solar #1117, LLC., and CEC Solar
#1118, LLC., respectively.
BACKGROUND:
The rate schedule specified within the original Solar Purchase Agreements set fixed
rates for the procurement of electricity starting at $0.1159 per kilowatt-hour in the first
year of the agreement and increasing 2% per year to a maximum of $0.1689 per
kilowatt-hour in the 20th year of the agreement. Since the effective date of the original
agreements, market rates outlined in Black Hills Energy's PUC rate structure for
Community Solar Garden facilities have not risen as fast as the rates specified in the
agreement. The proposed amendments will set the rates to be paid by the City at a
rate 10% below the Black Hills Community Solar Garden rate throughout the remainder
of the agreements.
FINANCIAL IMPLICATIONS:
The rates specified in the proposed amendments to the Solar Purchase Agreements
will ensure the City's cost to purchase power under the agreements will remain 10%
below the Black Hills Energy published rate for Community Solar Gardens throughout
the remainder of the terms of both agreements.
BOARD/COMMISSION RECOMMENDATION:
Not applicable
STAKEHOLDER PROCESS:
Not applicable
ALTERNATIVES:
Denial of this agreement will prevent the City from amending the Solar Purchase
Agreements.
RECOMMENDATION:
Approval of the Ordinance.
ATTACHMENTS:
1. BHE Amendment to Production Agreements City of Pueblo 2023 (230926)