Title
Approve and authorize the Chair of the Board of Supervisors to execute the Agreement By and Among the Monterey Bay Community Power Authority of Monterey, Santa Cruz and San Benito Counties (MBCP) and the Counties of Monterey, Santa Cruz and San Benito regarding Credit Support for MBCP.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors approve and authorize the Chair of the Board of Supervisors to execute the Agreement By and Among the Monterey Bay Community Power Authority of Monterey, Santa Cruz and San Benito Counties (MBCP) and the Counties of Monterey, Santa Cruz and San Benito regarding Credit Support for MBCP.
SUMMARY/DISCUSSION:
Monterey Bay Community Power (MBCP) is a regional Community Choice Energy Joint Powers Agency that was formed on February 28, 2017. On March 7, 2017, the Monterey County Board of Supervisors adopted a resolution approving the MBCP Joint Exercise of Powers Agreement, and on March 21, 2017, the Board adopted an enabling ordinance establishing the County as a founding member of the MBCP Authority.
MBCP requires start-up and initial working capital in the amount of $3 million and is negotiating a Credit Agreement with River City Bank (RCB), which includes a Non-Revolving Credit line of up to $3 million for this purpose RCB requires a credit guaranty for the Non-Revolving credit line, and the Counties of Monterey, San Benito, and Santa Cruz have agreed to provide this guarantee in a total amount of $3 million. On July 25, 2017, the Monterey County Board of Supervisors took the following actions:
1. Approved the Memorandum of Agreement Between the County of Monterey and Monterey County Cities Regarding Credit Guaranty for Monterey Bay Community Power ("Cities Agreement"), contingent on approval by all member cities;
2. Approved the Shared Financial Agreement by and Among the County Members of the Monterey Bay Community Power Authority of Monterey, Santa Cruz and San Benito, contingent on approval by a...
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