HomeMy WebLinkAboutResolutions - No. 2023-36RESOLUTION NO. 2023-36
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE A THIRD PHASE AGREEMENT WITH
NORTHERN CALIFORNIA POWER AGENCY FOR PURCHASE
AGREEMENTS WITH GEYSERS POWER COMPANY, LLC
WHEREAS, the City of Lodi (Lodi) is a signatory to the Joint Powers Agreement (JPA)
which created the Northern California Power Agency (NCPA) and therefore is a member; and
WHEREAS, Lodi and other NCPA members have executed the Amended and Restated
Facilities Agreement which establishes the framework under which project agreements are
created for the development, design, financing, construction, and operation of specific NCPA
projects; and
WHEREAS, in 2020, subsequently amended in 2022, NCPA, acting on behalf of
members, conducted a competitive solicitation to identify and select cost-effective resources to
support member obligations as it relates to renewable energy resources; and
WHEREAS, Geysers Power Company, LLC (Geysers) submitted a proposal to NCPA to
sell output from multiple geothermal power plants located in Sonoma and Lake Counties; and
WHEREAS, Lodi and other members desire NCPA to enter into Purchase Agreements
(Agreements) with Geysers for the purchase of resource adequacy capacity and renewable
energy products from these geothermal power plants; and
WHEREAS, under the terms of the Agreements, NCPA will purchase, on behalf of
member participants including Lodi, the electrical energy output, resource adequacy capacity,
renewable energy credits, and all other environmental attributes from Geysers for 5 megawatts
(MW) beginning January 1, 2025, increasing to 10 MW beginning January 1, 2027 continuing
through December 31, 2036; and
WHEREAS, the output under the Agreements is guaranteed to qualify as Portfolio Content
Category 1 under California Renewables Portfolio Standard requirements; and
WHEREAS, in order for NCPA to move forward on behalf of participating members, a
Third Phase Agreement is needed to enable NCPA to enter into the Agreements with Geysers on
behalf of the participants; and
WHEREAS, the Third Phase Agreement facilitates the transfer of all costs, obligations,
and benefits associated with the Agreements from NCPA to the signatories to the Third Phase
Agreement in proportion to each signatory's Project Participation Percentage for the life of the
Agreements; and
WHEREAS, on the effective date of the Third Phase Agreement, the City of Santa Clara
(the initial participant) will hold the full Project Participation Percentage; however Lodi will exercise
its right to accept a transfer of 5 MW in 2025 and 2026 respectively and 10 MW each year
thereafter through 2036, thereby becoming a project participant; and
WHEREAS, this activity would not result in a direct or reasonably foreseeable indirect
change in the physical environment and is therefore, not a "project" for purposes of Section 21065
of the California Environmental Quality Act thus no environmental review is necessary; and
WHEREAS, on January 26, 2023, the Risk Oversight Committee received a report on the
Geysers Geothermal Project and recommended approval of the Third Phase Agreement with
NCPA.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize
the City Manager to execute a Third Phase Agreement with the Northern California Power Agency
for Purchase Agreements with Geysers Power Company, LLC; and
BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol
Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to
make minor revisions to the above -referenced document(s) that do not alter the compensation or
term, and to make clerical corrections as necessary.
Dated: February 15, 2023
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I hereby certify that Resolution No. 2023-36 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held on February 15, 2023 by the following vote:
AYES: COUNCIL MEMBERS — Bregman, Craig, Khan, Nakanishi, and
Mayor Hothi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN- COUNCIL MEMBERS — None
vwaAl�
OLIVIA NASHED
City Clerk
2023-36