City Council Agenda
Memo to:
Manteca City Council
From:
L. David Nefouse, City Attorney
Date:
May 6, 2025
Subject:
Approve a Memorandum of Understanding Between the South San Joaquin Irrigation District and the City of Manteca Regarding The Intent to Pay in Lieu of Franchise Fees.
Recommendation:
title
Approve a Memorandum of Understanding Between the South San Joaquin Irrigation District (SSJID) and the City of Manteca (the "City") Regarding the Intent to Pay in Lieu of Franchise Fees.
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Background:
The purpose of this memorandum of understanding (MOU) is to memorialize and confirm the Parties' mutual understandings regarding SSJID's obligation to make payments to the City in order to mitigate any financial impacts resulting from SSJID's Retail Electric Project. This MOU is also intended to set forth a non-binding procedure whereby SSJID and the City will identify the rights, obligations, and responsibilities that will be incorporated into a more formal written agreement governing the Payments at such time SSJID obtains possession and ownership of PG&E's electric distribution system.
In addition to providing irrigation water to customers within its 72,000-acre service territory, SSJID also generates and sells electricity on the wholesale market through the Tri-Dam Project, a joint venture between SSJID and the Oakdale Irrigation District (OID). Together, SSJID and OID developed a system of reservoirs, dams, and powerhouses with a capacity of nearly 135 megawatts.
California's Irrigation District Law (Water Code ? 20500, et seq.) authorizes irrigation districts like SSJID to acquire, operate, lease, and control plants for the generation, transmission, distribution, and sale of electric power (id. ? 22115, et seq.). It is under this legal authority that SSJID seeks to provide retail electric service to residents and businesses (approximately 43,000 customers) within its service territory. The Retail Electric Project involves SSJID's replacement ...
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