Title
Recommendation to Approve the Assignment of the Existing Power Purchase Agreement with Ameresco Half Moon Bay, LLC for the Ox Mountain Landfill Power Plant, to the Lender, HA RNG 1 LENDER LLC, and Delegate Authority to the General Manager of Alameda Municipal Power to Execute the Assignment Agreement. (Alameda Municipal Power 10491900)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Alameda Municipal Power (AMP) has received a request from Ameresco Half Moon Bay, LLC (Ameresco), the operator of the Ox Mountain Landfill Power Plant (a renewable landfill gas generation plant) in AMP's portfolio, for the assignment of its existing Power Purchase Agreement (PPA) with AMP to a lender, HA RNG 1 LENDER LLC (Lender), as collateral for a loan. Consistent with the PPA, all requests for assignment require written approval by AMP. As the PPA has a term of 20 years, and City Council must approve AMP agreements with terms longer than 15 years, the City Council must approve of any assignment of the existing PPA. Additionally, the City of Palo Alto, the other public utility that shares participation in the power purchase from the Ox Mountain Landfill Power Plant, also must consent to any assignment, subject to a separate PPA with Ameresco.
Staff and legal counsel have reviewed and negotiated edits to an Assignment Agreement with Ameresco and the Lender to ensure that all AMP's rights and remedies from the existing PPA are retained. The Public Utilities Board (PUB) and AMP staff recommend approval of the Assignment Agreement to the City Council.
BACKGROUND
On January 24, 2005, the PUB adopted Resolution No. 4656 approving a PPA between Ameresco and AMP, formerly Alameda Power and Telecom, for the purchase of renewable energy from a proposed landfill gas generating project located at the Ox Mountain landfill in Half Moon Bay, CA. The PPA was subsequently approved by the City Council on February 1, 2005, as...
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