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SAM staff flags expired 1982 easement at plant; legal counsel says easement must be resolved for solar PPA
Summary
Staff told the board a 1982 easement covering plant property expired after 40 years and must be resolved before entering long‑term power purchase agreements; legal counsel described implied holdover and recommended negotiation with the City of Half Moon Bay as tax‑credit deadlines approach.
SAM staff and legal counsel told the board on March 9 that a 1982 grant of easement for the SAM plant property had a 40‑year term and expired in 2022. The expiration raises questions about the authority to site new buildings or to grant long‑term rights to a private vendor for solar or battery storage projects on the plant site.
Jeremy, SAM legal counsel, said while the physical plant and infrastructure remain in place there are legal and practical questions to resolve: "There may be an implied holdover but we need to come up with a resolution that allows us to do projects going forward in a way that the board and the city and everybody can feel comfortable with." He recommended coordinated legal work between SAM and the City of Half Moon Bay.
Matthew Chitter, Half Moon Bay city manager (joining on Zoom), urged city staff to meet with SAM staff and legal counsel to determine the path forward. Staff told the board that the solar project timeline is time‑sensitive because tax credits and other incentives hinge on contractual milestones with deadlines in early July; staff said a public hearing on the solar proposal is being prepared for the March 23 board meeting but that a hearing could be continued if more time is needed to resolve the easement.
The board asked staff to include legal counsel from member agencies when negotiations begin and to return proposals, including options to document an easement, ground lease or other agreement, to enable the work to proceed while protecting member‑agency interests.
Attribution note: Legal analysis and recommendations reported by SAM counsel (Jeremy) and by the Half Moon Bay city manager.
