HomeMy WebLinkAbout1983-12-06; City Council; 7224-2; Municipal Solar Utility Rules and RegulationsW
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CITY OF CARLSBAD -- AGENDA 31LL
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MTG.12-6-83
DEPT.-J/M -
RECOMMENDED ACTION:
ADOPTING THE RULES AND REGULATIONS
PROCEDURES MANUAL FOR THE CARLSBAD
MUNICIPAI, SOLAR UTILITY
/o 6 c
DEPT. H
CITY 1 i f ILO
CITY MGR. -�
Adopt Resolution No. /% approving the Rules and Regulations for the
Carlsbad Municipal Solar Utility. The Staff Procedures Manual is provided for your
review and comment, as appropriate.
ITEM EXPLANATION:
Council adopted Ordinance 8099 at the meeting of December 7, 1982 establishing
the Carlsbad Municipal Solar Utility. Subsequent Council and staff actions
confirmed the need for the utility and Jennifer Sansone, Energy Coordinator for
the City of Oceanside was retained to develop the rules and regulations and
staff procedures manual. The proposed rules and regulations parallel those
of Oceanside and it is anticipated that installers and leasing companies
authorized to participate in their program will be permitted inCarisbad.
FISCAL IMPACT:
Staff costs and the work done by Ms. Sansone ($2,000.00) will be offset some
time in the future as the City will retain 5% of all lease payments. Permit
fees will offset the staff cost for processing.
EXHIBITS:
l.v Resolution No. �.
2.✓ Staff Procedures Manual.
RESOLUTION N0, 7417
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD
11 CAL IFCJRNIA.7 I!�!P1- vTIivG im CARLSBAD MUNICIPAL SOLAR
2 UTILITY (MSU) SOLAR LEASING PROGRAM,
3 WHEREAS, on December 21, 1982, the City Council of the City of Carlsbad
4 adopted Ordinance No. 8099 authorizing establishment of a Municipal Solar Utility
5 (MSU) Solar Leasing Program; and
6 WHEREAS, the objectives of the MSU Solar Leasing Program are:
7 1. To lower initial costs of obtaining solar systems;
8 2. To provide consumer protection measures to residents and businesses
9 desiring to lease solar systems;
10 3. To enable residents to become eligible for the California Solar Tax Credit
11 as it may apply to leased solar systems;
3.2 4. To reduce overall energy demand within the City of Carlsbad, hence,
13 leaving more capital within the City for purchase of local goods and
14 services;
15 5. To help create new jobs and increase renewable energy and support
16 industries within the City;
17 WHEREAS, the City Council desires to implement the MSU Solar Leasing
18 rogram.
19 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cerlabad
;20 s follows:
21 1. The City Council hereby approves implementation of the MSU Solar Leasing
22 Program according to the Program's Rules and Regulations, attached hereto
23 as Exhibit "A";
24 2. The Utilities Department, under the direction of the City Manager, is
25 hereby authorized and directed to implement and administer the MSU Solar
26 Leasing Program.
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PASSER AND ADOPTED at a regular meeLing a; said City Council 'held on the
5th day of December _, 1983, by the following vote, to wit:
AYES: Council Mmbers Casler, Lewis, Kulchin, Prescott and Chick
NOES: None
ABEEW : None
ATTEST:
a244��hj-
JALETHA
L. RAUTENKRANZ, City
�(SEAL)
MARY H. CA ER, Mayor
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EXHIBIT A
CITY T CARLSBAD MUNICIPAL SOLAR UTILITY
SOLAR LEASING PROGRAM
RULES AND REGULATIONS
Table of Contents
Section
Page
1.1
Purpose and Scope -------------------------------------
1
2.1
Definitions -------------------------------------------
1
3.1
Responsibilities --------------------------------------
4
4.1
Permit Requirements - Leasing Company -----------------
6
5.1
Permit Requirements - Installer -----•------------------
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6.1
Permit Administration ---------------------------------
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7.1
Bonds/Warrcnty Insurance/Warranties-------------------
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8.1
Lease Terms -------------------------------------------
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9.1
Billing/Collection/Disbursal of Lease Payments ------
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10.1
Building Permit Requirements --------------------------
15
11.1
Obligation of Good Faith ------------------------------
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12.1
Severability------------------------------------------
17
13.1
Violations ---------------------------------------------
17
Appendices
Appendix A Permit Application Form
Permit Certificate
Appendix B Bond Form
Appendix C Billing Waiver Form
Appendix D PUC Nomograph
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EXHIBIT A
CIT'r OF CARLSBAD MUNICIPAL SOLAR UTILITY
SOLAR LEASING PROGRAM
RULES AND REGULATIONS
Section 1.1 Purpose and Scope
The purpose of the City of Carlsbad Municipal Solar Utility (MSU) Solar
Leasing Program Rules and Regulations is to establish rules and procedures that
are applicable to all persons participating in the Carlsbad MSU Solar leasing
Program and to provide protection for the consumer.
Section 2.1 Definitions
The following definitions apply to those persons participating in the
Carlsbad MSU Solar Leasing Program.
j A. The term PERSON means any natural person, partnership, corporation,
business trust, association, company or other legal entity.
B. The term SOLAR ENERGY EQUIPMENT includes equipment and materials (and
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parts solely related to the functioning of such equipment) that is
intended to be located on, or affixed to, real property within the
City of Carlsbad, and that uses solar energy directly to do the
following:
i. Provide hot water for domestic service, recreational, or
therapeutic purposes;
ii. Provide process heat or mechanical energy;
iii. Heat or cool a building or structure; or
iv. Generate electricity.
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Generally, these functions are accomplished throti4h the use of
equipment such as collectors (to absorb sunlight and create hot air,
hot liquids or electricity), thermostats or sensors (to activate pumps
or fans which circulate hot liquids or air), and heat exchangers (to
utilize hot liquids or air to heat other air or water).
C. The term LEASE AGREEMENT means:
i. A contract between a lessee and a lessor, or a person authorized
to act on behalf of a lessor, for the leasing of solar energy
equipment, owned by the lessor and leased and possessed by the
lessee, which is located on, or affixed to and servicing the real
property owned or occupied by the lessee; or
ii. A contract for the sale of energy through the installation of
solar energy equipment on the real property owned by or occupied
by the lessee.
D. The term MSU-APPROVED LEASE AGREEMENT means the lease documents
submitted to the Carlsbad Utilities Director by the leasing company at
the time of permit application submittal, and which lease document
conforms with all requirements set forth in Section 8.1 of these Rules
and Regulations, and which has been approved by the Utilities Director
for use by said leasing company under the Carlsbad MSU Solar leasing
Program.
E. The term LESSOR means any person holding legal title to solar energy
equipment and leasing this equipment either directly, or via a person
authorized to act on behalf of the lessor, under the Carlsbad MSU
Solar Leasing Program.
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F. The tern. LEASING COMPANY means any person who is authorized to act on
behalf of a lessor for purposes of executing a lease agreement and all
attendant activities and responsibilities, such as advertising,
marketing, placing, installing, maintaining,
servicing and repairing
solar energy equipment, and who fulfills the requirements of Section
4.1 of these Rules and Regulations.
solar enerq) equipment
G. The term LESSEE means any person leasing
located on, or affixed to, the real property owned or occupied by said
person.
G. The term INSTALLER means any person, properly licensed under the
provisions of the California Contractors License Law, including any
solar specialty license, who is authorized to act on behalf of a
lessor and/or leasing company to install, remove or service solar
energy equipment subject to a lease agreement, and who fulfills the
ulations.
requirements of Section 5.1 of these Rules and Reg
s authorized to act
erson who
I. The term MANAGEMENT COMPANY means any P onsiblities as
on behalf of a lessor for such activities and resp
collecting leasehold payments, making payments for obligations
incurred in lease agreements, holding lessee deposits, maintaining
accounting records and arranging for or having performed the
maintenance, service and repair of solar energy equipment.
O. The term TAX BENEFITS means Califurnia or Federal investment deferral and
credits, solar tax credits, accelerated depreciation, tax
other tax incentives or benefits accruing through the purchase or
leasing of solar energy equipment under existing state and federal tax
law.
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K. The term INACTIVE PERMITTEE means permittees who are physically
unavailable, permittees with insufficient financial resources to carry
out their responsibilities under each lease agreement and under these
Rules and Regulations, or permittees who refuse to perform these
responsibilities when so requested by the City, a prospective lessee
or a lessee.
# L. The term DAY means any day that is not a Saturday, Sunday, or legal
holiday in the City of Carlsbad.
M. The term CITY means the City of Carlsbad.
Section 3.1 Responsibilities
The following res onsibilites
� 9 P apply to those persons participating in the
City of Carlsbad MSU Solar Leasing Program.
A. The LEASING COMPANY is responsible for the installation, maintenece,
servicing, repair, and, if necessary, removal of solar energy
equipment installed pursuant to an MSU-approved lease agreement.
B. If some or all of the responsibilities set forth in Section 3.1-A are
undertaken by an installer, management company, or other person
authorized by the leasing company and/or the lessor, the LEASING
COMPANY continues to bear responsibility for their completion in
accordance wiwth these Rules and Regulations.
C. In the event that more than one LEASING COMPANY is involved in the
marketing, sale, or installation of a single solar energy system, each
such leasing Company shall be jointly and severally responsible to t
lessee for complying with these Rules and Regulations.
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D. The LEASING COMPANY shall respond to any lessee complaint regarding
failed or defective solar energy equipment leased or installed by said
Leasing Company, and such response shall be by on -site inspection
within 72 hours of the Leasing Company's receipt of said complaint.
The Leasing Company shall make a good faith effort to restore failed
or defective solar energy equipment to working condition within 48
hours of the on -site inspection or response.
E. If the Leasing Company authorized to act on behalf of the lessor
becomes an inactive permittee, the LESSOR shall assume the
responsibilities of that leasing company or assign another Leasing
Company to assume such responsibilities, specifically: the proper
installation, maintenance, servicing, repair, and, if necessary,
removal of solar energy equipment installed pursuant to an MSU-
approved lease agreement.
F. The CITY is responsible for making available to prospective lessees,
lessors, or any other person, information contained in permit
applications submitted by Leasing Companies under these Rules and
Regulations.
G. The CITY is responsible for the final inspection of solar energy
equipment installed under MSU Solar Leasing Program as outlined in
Section 10.1 herein.
H. ' The CITY is responsible for making a good faith effort to assist in
the resolution of any dispute arising from the MSU-approved lease
agreements.
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I. The LESSEE is responsible for exercising prudent caution in the
execution of a lease agreement with a lessor or a Leasing Company
acting on behalf of a Lessor, part of such prudent caution being the
gaining of exact and accurate knowledge of the extent and limit of the
above -outlined responsibilites of the City under Section 3.1-F, G, and
H.
J. The LESSEE is responsible for obtaining his/her own counsel on the
interpretation of tax benefits as they might apply to his/her leased
solar energy equipment.
K. The LESSOR is responsible for exercising prudent caution in legal and
financial arrangements with a Leasing Company, Management Company, or
other person representing themselves as participants in the City of
Carlsbad MSU Solar leasing Program, part of such prudent caution being
the gaining of an exact and accurate knowledge of the above -outlined
responsibilities of the City under Section 3.1-F, G, and H.
L. The LESSOR is responsible for obtaining his/her own counsel on the
interpretation of tax benefits and regulations, and Securities and
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Exchange Commission regulations, as they mi g. t apply to his/her solar
energy equipment. The City claims no knowledge or interpretation of
Lessee or Lessor tax benefits or Securities and Exchange Commission
regulations as they relate to solar energy equipment.
Section 4.1 Permit Re uirements - Leasing Company
A. No person shall attempt to operate as a Leasing Company of the City of
Carlsbad MSU Solar leasing Program without having a valid MSU Sola
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Leasing Program Permit. An MSU Solar Leasing Program Permit may be
granted to any Leasing Company complying with all requirements noted in
this Section 4.1 and participating in the MSU Solar leasing Program in
accordance with these Rules and Regulations.
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B.
The leasing Company must execute and submit the MSU Solar leasing
Program Permit Application (Appendix A) to the City. This application
is to be completed in a truthful and accurate manner, including all
requested information.
C.
The Leasing Company must submit to the City a copy of the lease
agreement(s) which it will offer to prospective lessees. The lease
agreement(s) must be approved by the City as an MSU-approved lease
prior to the leasing Company being granted a permit to operate in MSU
Solar leasing Program. The lease agreement(s) must, at a minimum,
comply with all terms outlined in Section 8.1 of these Rules and
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Regulations.
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The Leasing Company must submit to the City for review all other
documents, in addition to the lease agreement(s), which will be given
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to and/or signed by the lessee. Review by the City, while required
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for document use, does not stop or bind the City from later
determination that any included provision violates these Rules and
Regulations.
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E.
The Leasing Company must submit either a bond in the amount of $20,000
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executed on the bond form contained in Appendix B, or a warranty
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insurance policy to be carried on a coterminous basis with each lease
agreement, or copies of manufacturer's warranties for all parts of the
solar system equipment, including labor, which are effective on a
coterminous basis with the lease agreement term.
F.
The Leasing Company must have an office or have agents located in San
Diego County, and must fully disclose all San Diego County addresses
and telephone numbers used for mailing or business purposes in
connection with the Carlsbad MSU Solar leasing Program.
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The Leasing Company must verify that no person who has had an MSU
Solar Leasing Program Permit revoked by the City is currently
affiliated with the applicant in an ownership, managerial, or
controller capacity.
H. The Leasing Company must pay to the City a non-refundable permit fee
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of one -hundred dollars ($100.00).
I. The Leasing Company must disclose any change in the information
submitted to the City in the permit application, intended lease
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( agreement(s), or any other documents pertaining to the MSU Solar
Leasing Program, within ten (10) days of its reasonable discovery.
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J. The Leasing Company must obey all laws of the United States and of the
State of California, and all ordinances of the City of Carlsbad, and
report to the City, as soon as reasonably possible, any violation of
such laws or ordinances by any person with whom it deals as part of a
lease agreement.
K. The MSU Solar Leasing Program Permit shall be valid for one year from
the date of issuance, and may be renewed annually thereafter by the
Leasing Company repeating the above stated requirements.
Section 5.1 Permit Requirements - Installer
A. If a leasing Company does not employee as permanent employees its own
installers to install, service and repair the solar energy equipment
leased through the MSU Solar Leasing Program, then the installation
company (hereinafter referred to as Installer) that the Leasing
Company contracts with or otherwise employs to perform such
installation, servicing and repair of the leased solar energy
equipment must obtain a valid MSU Solar Leasing Program Permit by
complying with the following requirement:
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B• The Installer must execute and submit the MSU Solar Leasing
Permit Application (Appendix A) to the City. Program
be completed in a truthful and This Application is to
accurate manner, including all
requested information.
C• The Installer must have an office or have agents located in
County, and must fully disclose al San Diego
1 San Diego County addresses and
telephone numbers used for mailing or business purposes in connection with the Carlsbad MSU Solar LeasingPr
Program.
D• The Installer must verify y that no person who has had an MSU Solar
Leasing Program Permit revoked by the City is currently affiliated
With the applicant in an ownership, managerial, or control,
capacity, ing
E. The Installer must size and install the solar system equipment
accordance with City standards and regulationsOutlined
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10.1 herein and all state and ' as outlineed in Section
local codes.
F• The Installer must be
appropriately licensed by the Contractors State
License Board, and have a valid Certificate of Workmen's Com ensa ' Insurance on file with the Carlsbad Building Department. p tion
G. The Installer must pay to the City a non-refundable permit fe
hundred dollars a of one-
hundred
The Installer must disclose any change in the information submitted to
the City in the permit
application within ten (10) days of its
reasonable discovery,.
l• The Installer must obey all laws of the United States and the
California and State of
all ordinances of the City of Carlsbad, and report to
the City, as soon as
possible, any violation of such laws or ordinances
by any person with whom the Installer deals as part of the MSU
leasing Program.
Solar
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0. The MSU Solar Leasing Program Permit ,
s��dll Ue valid for one year from
the date of issuance, and may be renewed annually thereafter by the
Installer repeating the avove stated requirements.
Section 6.1 Permit Administration
A. The City Utilities Department shall be responsible for permit
administration and for all general administration and coordination of
the MSU Solar Leasing Program. The Utilities Department will process
all permit applications and associated documents required for permit
issuance within ten (10) days of their submission.
B. Permit applications and related documents filed with the City shall be
i deemed to be matters of public record, and shall be made available for
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public inspection upon request.
C. The City retains the right to review financial records of all permit
applicant3.
D. No permit shall be assigned or transferred.
t E. The City shall maintain an Active list of permittees f t or public
referral or other purposes.
F. The City shall remove from the Active List any inactive permittee, but
shall first give such permittee written notice ten (10) days prior to
removal from the Active list. Inactive permittees include those
{ permittees who are physically unavailable
permittees with
insufficient financial resources to operate as an active participant,
{ or those permittees who refuse to
perform the duties of a permittee
' when so requested by the City, a prospective lessee, or lessee.
G. A permit can be denied, suspended, or revoked for any of the following
acts:
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i. Making a false statement of fact required to be revealed in a
permit application; or
ii. Cemmisssion of any act involving dishonesty, fraud, or deceit
relevant to the permittee's functions and responsibilities; or
iii. Violation of the terms, condition , and responsibilities
described in the Rules and Regulations.
H. The City may impose conditions of restitution or damage payment, or
order performance changes, as a prerequisite to permit retention or
renewal.
I. Any permit suspension, revocation, denial of initial or renewal
permit, or order of money payment or performance change as a
precondition to a permit, may be appealed to the City Council.
J. The City shall monitor the performance of permittees, and shall
investigate all complaints of permit violation.
K. Where unresolved lessee complaints, deemed by the City to be worthy of
resolution in lessee's favor, have been made in writing against any
permittee, the City, specifying the grounds therefore, may issue a
Request to Show Cause why such permittee should not have its permit
suspended, revoked or not renewed.
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L. Permittees shall attempt to resolve all disputes with lessees
involving MSU-approved lease agreements by good faith private
negotiations.
Seetiun 7.1 Bonds/Warranty Insurance/Warranties
A. Each leasing Company applying for an MSU Solar leasing Program Permit
must provide:
i. A performance bond in the amount of $20,000 (see Appendix B for
Bond Form), to be renewed annually with permit renewal; or
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ii. A war.:anty insurance poli^y to be carried on a coterminous basis
with each lease agreement; or
Manufacturer's warranties for all parts of the solar system
equipment, including labor, which are effective on a coterminous
basis with the lease agreement term.
B. As bond equivale-it, an irrevorable letter of credit for $20,000, with
the City of Carlsbad designated as beneficiary, shall be deemed
acceptable in lieu of the performance bond in Section 7.1-A.i. above.
C. If the Leasing Company chooses to and is able to take option A. iii.
above, the manufacturer's chief executive officer must also submit
written verification that a local, properly licensed contractor will
be assigned the responsibility of servicing the solar system equipment
pursuant to the warranty terms anO conditions if the original
installer and/or leasing Company is unable to provide such warranty
service.
Section 8.1 lease Terms
All of the following information must be included in the lease agreement for
the lease to be deemed an MSU-approved lease agreement.
A. lease payment amounts, and the formula for altering such amounts over
the term of the lease, if any;
B Statement that the lease payments are due on the first of each month
for the term of the lease;
C. Billing/payment procedures, including name and address of person to
whom monthly payments are to be delivered;
D. late payme-.t amounts and other relevant terms, including the conditions
for imposition of late payments;
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E. Total term of the lease;
F. Rental deposit amount, if any, and the terms for return and use of the
rental deposit;
G. Initial installation costs, if any;
H. Cost to lessee for removal of solar energy equipment, if any;
I. Time limitation on exercise of option to renew the lease, if any, and
consequences of lease expiration without exercise of renewal option;
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J. liability of lessee for damage to leased solar energy equipment;
K. Consequences to lessee for sale of real property to which solar energy
equipment is attached;
L. Conditions and consequences of default;
M. Name, address and phone number of the Installation or leasing Company
permittee responsible for installing the solar energy equipment; and
N. Name, address and phone number of Leasing Company permittee to be
contacted for servicing the solar energy equipment.
NOTE: In addition to the foregoing, required information, no lease agreement
will be deemed an MSU-Approved lease Agreement if either of the
following is included in the lease terms: taking or use of the
primary residence of a lessee as security for any lease payment or
other indebtedness incurr.:d through the lease agreement; or,
imposition of penalties for the removal of the solar energy equipment
in excess of the reasonable cost for that removal, whether such
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removal results from lessee default or early lessee termination of the
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lease agreement.
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Section 9.1 Billing/Collection/Disbursal of lease Payments
A. The City shall provide a billing service for collection of monthly
lease payments under the MSU Solar Leasing Program. There shall be no
billing for solar lease payments under the MSU Program except through
the City unless a written waiver to such collection is obtained from
the City (See Appendix C for waiver form).
B. The City shall retain no more than ten percent (100) of the amount
collected from each lessee account to recover the costs o` operating
the MSU Program and providing the billing service. Initially, the
City will retain five percent (50) of the collected lease payments,
but reserves the right rco increase this retained percentage once
annually, provided that it gives sixty (60) days written notice of
such increase to permittees, and provided that the total percentage
retained does not exceed ten percent (103d) of the collected lease
payments.
C. The City shall maintain records of amounts due from and paid by each
lease account.
D. No payments from a lessee shall be collected by the City except
according to lease documents submitted to the City by the respective
Leasing Company permittee.
E. Lease collections for each lessee account shall begin only after ;;he
City Building Department has approved in writing the final inspection
of the installation of the solar energy system.
F. After all lessee account payments for each Leasing Company permittee
have been collected each month, the City shall deduct its retained
percentage and remit the remaining amount collected to the respective
Leasing Company permittee in a timely manner.
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G. Should a lessee default on lease payments contracted for and due, the
City shall continue to send monthly billings to such lessee for two
subsequent months, noting on such billings the entire lease payment
amount then due, including delinquent payments and any late charges
prescribed in the lease agreement.
H. Should a lessee accrue three (3) months of payments i.n arrears, the
City shall issue a notice to the lessee to show cause within ten (10)
days why the solar energy equipment should not be removed and any
deposit forfeited. If the lessee cannot demonstrate to the City and
to the Leasing Company permittee reasonable and acceptable cause for
lack of payment within the ten (10) day show cause period, the leasing
Company permittee shall proceed to take action to remedy the default
as prescribed in the lease agreement.
I. If solar energy equipment must be removed from a lessee's premises due
to lessee default or lease termination, the Leasing Company permittee
shall have said solar energy equipment removed with minimal intrusion
to the integrity of the real property to which it is attached. Pipe
and equipment added may be removed, but all roof openings shall be
sealed and no dangerous or damaged plumbing or electircal hazards
shall remain. A building permit for such removal work shall be
obtained pursuant to standard City Building Department procedures, but
the Building Department shall waive permit fees for such removal work.
f Section 10.1 Building Permit Requirements
A. All solar energy systems installed under the MSU Solar leasing Program
j must receive building permits.
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B. At the time of building permit application, the installing contractor
must provide a diagram or plot plan of the structure on which the
solar energy system will be installed, including the following
information:
' i. The exact location of the equipment and the exact magnetic bearing
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that the collectors will face; and
ii. An arrow indicating north; and
iii. The tilt, in degrees, of the angle of the collectors above the
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horizon; and
iv. The size of the collectors in square feet and the size of the
solar storage tank in gallons; and
V. The dimens..on in height, width, and distance of any trees, shrubs
or structures that could shade the collectors; if there are none,
so note on tke plan; and
vi. The number of bedrooms in the residence.
C. All solar energy systems leased through the MSU Solar leasing Program
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must be sized, at a minimum, to provide:
i. Twenty (20) gallons of water per bedroom for the solar storage
tank; and
ii. For single-family dwellings, twenty (20) square feet of collector
area, plus or minus ten percent (100) per bedroom, unless it can
be demonstrated using the Public Utilities Commission (PUC)
nomograph for Climate Zone Seven (Appendix D), or an F-Chart
printout, that a lesser square footage area of collectors can
provide sixty percent (601,o) of the water heating load; and
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iii. For multi -family dwellings, ten (10) square feet of collector
area, plus or minus ten percent (1095), per bedroom, unless it can
be demonstrated using the PUC monograph for Climate Zone Seven, or
an F-Chart printout, that a lesser square footage area of
collectors can provide sixty percent (60%) of the water heating
load.
D. The final inspection by the Building Department inspectors shall not
F constitute a guarantee of the performance of any solar energy
{ equipment.
Section 11.1 Obligation of Good Faith
A. Every duty governed by these Rules and Regulations imposes an
obligation of good faith in its performance or enforcement.
Section 12.1 Severability
A. If any provision of these Rules and Regulations or its application to
any person or circumstance is held invalid, the invalidity does not
affect other provisions or applications of these Rules and Regulations
which can be given effect without the invalid provision or
application, and to this end the provisions of these Rules and
Regulations are severable.
Section 13.1 Violations
A. Any violation of these Rules and Regulations may be enforced by the
City in any manner provided by law.
B. Except as provided in Sections 6.1 and 9.1 hereof, nothing these Rules
and Regulations shall be construed to prohibit any person from
pursuing other remedies in law or equity.
APPENDIX A
CITY OF CARL SBAD
MSU Solar leasing Program
Utilities Department
1200 Elm Avenue
Carlsbad, CA 92008
( 619 ) 438-5604
MSU SCIAR LEASING PROGRAM PERMIT APPLICATION
Annual, Non -Refundable Fee: $100
I 1. Please check: Leasing Company
Installer
2. Name, Address, Telephone Number of Firm:
Telephone
3. City of Carlsbad Business License Number
4. Description of Business:
5.
Legal Organization of Firm (check one):
P artership 1
Sole Propriertorship
Corporation I 1
Other I I (Please explain)
g: 6. State in Which Firm is Organized:
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7. List names, business addresses, and telephone nurrbers for all of the
following: members of Board of Directors, officers, general partners,
persons managing and/or in ontrol of business, each beneficial owner of
5% or more of voting stock or equity capital (attach additional sheets, if
necessary):
B. Contractor's license Number, if applicable:
9. Please check which of the following is being submitted and attached hereto
as Required by Section 7.1 of the Rules and Regulations (for leasing
Company Only):
A. Bond Form I I
B. Warranty Insurance I I
C. Manufacturer's Warranties I I
If you checked 9.A or 9.B above, please state the name, address, telephone
number, and name of contact person of the bond company or warranty
insurance company:
Telephone
If you checked 9.0 above, please state the name, address, telephone
number, and name of contact person of the manufacturer:
Telephone
�r 10. Is your firm currently under any State or Federai investigation?
I I No
Yes - Explain
.2.s—
N
I
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11. Attach copy of your firms lease Agreement intended for use in this
Program.
* IMPORTANT NOTICE: THE CITY OF CARLSBAD CLAIMS NO KNOWLEDGE
* OR INTERPRETATION OF STATE OR FEDERAL TAX BENEFITS OR
* SECURITIES AND CORPORATIONS LAWS OR REGULATIONS.
* PARTICIPANTS IN THE MSU SOLAR LEASING PROGRAM MUST TAKE
* RESPOINSIBILITY FOR SEEKING PROPER COUNSEL ON THESE LAWS.
In consideration of the issuance by the City of Carlsbad of the permit
requested by this application, the applicant agrees to indemnify, defend and
hold the City of Carlsbad, its officers, agents ar employees, free and
harmless from any and all liabilities, claims, demands, actions, losses,
damages and costs, including all costs of defense thereof, caused by,
arising out of, or in any way related to applicant's activities, conduct, or
operati%n undertaken pursuant to this permit.
The applicant has received a copy of, read, and understands the City of Carlsbad
MSU Solar Leasing Program Rules and Regulations, and agrees to abide by all
provisions thereof.
The undersigned certifies that all of the above information is true and
correct. If the undersigned is not the applicant, the undersigned further
certifies that he/she is authorized by the applicant to file this application
and to agree to the above conditions on applicant's behalf.
Signature/Title:
Name/Title (type or print):
Date of Application:
***************-c************************
FOR CITY OF CARLSBAD UTILITIES DEPARTMENT USE ONLY
Initials/Date
1. Verification of Valid Contractors License
2. Verification of Valid City Business License
3. Verification of Workmen's Compensation Insurance
4. Approval of Bond/Warranty Insurance/Warranties as required
in Section 7.1 of Rules and Regulations
S. Approval of lease Terms
6. Other Verifications/Approvals
(i.e. billing waiver form, etc.) _
Approved by:
Date Approved:
Permit Nurrber:
Date Permit Issued:
2C,
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CITY OF CART SBAD
MSU SOLAR LEASING PROGRAM PERMIT
I
I Pursuant to City Rules and Regulations for the MSU Solar leasing I
Program, and conditioned upon payment of the required fee at
f time clue, this PERMIT is hereby granted for the term and I
purpose stated, as of
� � I
I Permittee:
I I
I I
I I
I Business Description: I
I I
I I
I I
' I I
i I
I I
� I
' I Expiration:
I Permit Nurrber I
Issued by: I
I
I
I THIS PERMIT IS NOT TRANFERABLE I
� I
d7
APPENDIX
i
w
Bond Number
Premium $
CITY OF CARLSBAD MSU SOLAR LEASING PROGRAM
4
LEASING COMPANY BOND
s
KNOW ALL MEN BY THESE PRESENTS,
THAT, we, , as principal, and
, a corporation authorized to do
business in the State of California, as Surety, are held and firmly bound unto
the CITY OF CARLSBAD, a municipal corporation in the County of San Diego, State
of California, in the sum of TWENTY THOUSAND DOLLARS ($20,000.00) for payment
of which sums well and truly to be made, the Principal and Surety hereby bind
themselves, their heirs, administrators, executors, successors ar,- assigns,
jointly and severally, firmly by these presents.
WHEREAS, the above Principal is, concurrently herewith, making an application
to the City of Carlsbad for a Leasing Company permit under the Carlsbad MSU
Solar leasing Program Rules and Regulations, which Rules and Regulations are
incorporated herein by reference;
NOW, THEREFORE, the condition of this obligation is such that if a Carlsbad MSU
Solar leasing Program Permit is granted to said Principal, and if such permittee
shall during the lift of said permit faithfully observe all the provisions of
the MSU Solar Leasing Program Rules and Regulations, and faithfully perform the
duties required by said Rules and Regulations, then the above obligation shall
be void; otherwise to be and remain in full force and effect.
La
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PROVIDED:
1. The liability of the Surety upon this bond shall be and remain in full
force and effect for the full period of the MSU Solar Leasing Program
Permit issued to the Principal aboved named but not beyond ,
19or thirty (30) days after receipt by the City of Carlsbad of
written notice signed by such Surety, or its authorized agent, stating
that the liability of such surety is thereby terminated and cancelled.
2. Nothing herein shall affect any rights or liabilities which shall have
accrued under this bond prior to the date of such termination. This
bond shall be conditioned that the total aggregate liability of the
y Surety for all claims shall be limited to the face amount of this bond
a
irrespective of the number of years this bond is in force.
This bond may be extneded for a further term by the issuance of a Continuation
Certificate signed by the Surety.
Signed, sealed and dated this _ day of
Principal
By:
Surety
By:
Attorney -in -Fact
, 19
jc�
I
I
i
APPENDIX C
j f
CITY OF CART. SBAD
MSU Solar leasing Program
BILLING WAIVER FORM
Pursuant to Section 9.1 of the Carlsbad MSU Solar Leasing Program Rules and
Regulations, a written waiver is necessary for collection of solar lease
payments by an entitity other than the City of Carlsbad. This billing waiver
form fulfills said requirement for collection of solar lease payments from the
following lessee:
NAME
ADDRESS
TEL EPHONE
Billing and collection of solar lease payments from the foregoing lessee will
be performed by:
NAME
ADDRESS
TELEPHONE
CONTACT PERSON
Signature/Title DateSignature/Title Date
Leasing Company City of Carlsbad
Return this form with a copy of the lease agreement attached to:
CITY OF CARLSBAD
MSU Solar Leasing Program
Utilitites Department
1200 Elm Avenue
Carlsbad, CA 92008
3z
i SE' � ,
0
CITY OF CARLSBAD
MSU SOLAR LEASING PROGRAM
i
i
STAFF PROCEDURES MANUAL
TABLE OF CONTENTS
Page
Introduction--------------------------------------------------------- 1
Utilities Department ------------------------------------------------- 2
Processing/Approving Leasing Companies as Permittees------------- 2
Processing/Approving Installers as Permittees-------------------- 3
Disseminating Program Information to the Public ------------------ 4
Coordinating Billing Process Information with Finance Department - 4
Complaint Resolution --------------------------------------------- 5
Finance Department --------------------------------------------------- 6
Establishing New Leasing Company and Lessee Accounts ------------- 6
Monthly Billing Process ------------------------------------------ 6
Figure 1 - Sample Master Invoice for Lessee -----------------
Figure 2 - Sample Monthly Statement for Leasing Company -----
Delinquent Payments ---------------------------------------------- 6
Building Department -------------------------------------------------- 7
Plan Check/Building Permit Issuance ------------------------------ 7
Final Inspection ------------------------------------------------- 8
Conclusion----------------------------------------------------------- 9
-1-
INTRODUCTION
This manual sets forth administrative procedures for relevant Carlsbad staff
members to use in implementing and administering the Municipal Solar Utility
(MSU) Solar Leasing Program. This document may be amended by staff from time to
time if significant operational changes are deemed necessary. However, it
should be noted that the procedures contained herein are merely a guide, and
flexibility in administration of the program will be necessary.
The Utilities Department, Finance Department, and Building Department all have
certain administrative responsibilities in operating the MSU Solar Leasing
Program. Although each department's procedureal guidelines are treated
separately in this manual, a thorough understanding by staff of all departments'
responsibilities will lead to smooth and efficient operation of the program.
3-7
- 1 -
NTRODUCTION
This manual sets forth administrative procedures for relevant Carlsbad staff
members to use in implementing and administering the Municipal Solar Utility
(MSU) Solar Leasing Program. This document may be amended by staff from time to
time if significant operational changes are deemed necessary. However, it
should be noted that the procedures contained herein are merely a guide, and
flexibility in administration of the program will be necessary.
The Utilities Department, Finance Department, and Building Department all have
certain administrative responsibilities in operating the MSU Solar Leasing
Program. Although each department's procedureal guidelines are treated
separately in
responsibilities lwillnlead tothorough
andunderstanding
tof all departments,
operation of the program.
M
2
UTILITIES DEPARTMENT
The Utilities Department has primary responsibility for all administration of
the MSU Solar Leasing Program, except for the billing service function operated
by the Finance Department, and the building permit process handled by the
Building Department. The Utilities Department has five administrative tasks to
perform:
1. Processing/Approving Leasing Companies as Permittees
2. Processing/Approving Installers as rermittees
3. Disseminating Program Information to the Public
4. Coordinating Billing Process Information with the Finance Department
5. Complaint Resolution
A. Processing/Approving Leasing Companies as Permittees
If a leasing company employs its own installers, then the leasing company will
complete one permit application and note on this form that it has in-hoL,se
employees performing the installation work. If the leasing company does not
employ its own installers, then the installation company that it contracts with
to provide installation, servicing, and repair of the leased solar systems must
also complete a permit application form and be approved as a Permittee (see
Section B below).
Each leasing company that wants to become a permittee should be given a copy of
the Rules and Regulations and a permit application (from Appendix A of the
Rules). The leasing company must return the following items, all of which are
necessary to process its permit application:
1. Completed permit application form
2. Payment of $100.00
3. a. Bond Form, or
b. Warranty Insurance Policy, or
C. Manufacturer's warranties for all solar system parts and labor,
which are coincident with the lease agreement term
4. Lease agreement(s) to be used in the Program
5. Manufacturer's information for all parts of the solar system equipment,
including schematics, installation/operation manual, warranties, etc.
6. a. Name and mailing address for the City's use in disbursing payment
for lease billings collected through the City's billing process,
or
b. Completed Billing Waiver Form (from Appendix C of the Rules)
stating that all lease payments will be collected by the company
listed on this Form.
7. The company's most recent financial stataement (NOTE: This is
optional, but it would be a good idea to request this information if
the leasing company has been operating for two years or less.)
Once this information is submitted, the Utilities Director should review it
within ten days and contact the leasing company within that time period if any
explanation or more information is necessary. In reviewing the permit
application form the Utilities Drector should note that if manufacturer's
37
I -,
ME
warranties are submitted in lieu of a bond, pursuant to 3.0 above, the term of
the warranties must coincide with the term of the lease agreement, and the
warranties must include parts and labor. The Utilities Director should contact
the manufacturer's representative listed in Section 9 of the permit application
form for written verification from the manufacturer's chief executive officer
that another local Pontractor will be appointed to provide warranty service for
the leased solar systems if the original leasing company goes out of business or
is otherwise unavailable t,� perform such warranty service. If the manufacturer
refuses to provide such written verification, then the leasing company will have
to submit either the required $20,000 bond or a Warranty Insurance Policy that
is coincident with the lease agreement term in order to obtain a permit to
operate in the Program.
In reviewing the lease agreement terms, the Utilities Director should use
Section 8.1 of the Rules and Regulations as a checklist for all information that
must be provided in the lease agreement. It is important to note that if either
of the following provisions are included in the lease agreement, the lease
cannot be approved until these terms are removed: taking or use of the primary
residence of a lessee as security for any lease payment or other indebtedness
incurred through the lease agreement; or, imposition of penalites for the
removal of solar energy equipment in excess of the reasonable cost for that
removal, whether such removal results from lessee default or early lessee
termination of the lease agreement. The purpose of the review/approval of the
lease agreement is full disclosure of lease terms to protect the interests of
consumers who may enter into solar lease agreements with permittees or the
Program.
The Utilities Director will Complete the permit application review/approval
process by using the checklist at the end of each permittee's application.
Assuming the applicant has complied with all necessary requirements to become a
leasing company permittee of the Program, a permit, such as the model included
in Appendix A !;' the Rules and Regulations, will be issued to the leasing
company. This permit may be renewod annually.
Once a leasing company becomes a permittee, the Utilities Direcotr should
clarify to the permittee the procedures to be followed for submittal of signed
lease agreements, explain the City s billing collection/disbursal process, and
remind the leasing company permittee that its installers must follow the
building permit requirements contained in Section 10.1 of the Rules and
Regulations for installation of all leased solar systems.
B. Prccessing/Apppovin4 Installers as Permittees
An installation company (hereinafter referred to as installer) that contracts
with a leasing c ompnay to provide installation, servicing, maintenance, and
repair of the leasing company's solar systems must become a permittee of the
Program. The installer should be given a copy of the Rules and Regulations and
a permit application form. The installer must return the completed application
form and $100.00 to be processed and approved as a permittee by the Utilities
Director.
yG
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The Utilities Director will use the checklist at the end of the application form
to approve an installer as a permittee. It should be noted that the bond and
al
lease term apdrovals apply only to leasing companies and not to instlers.
Approval of installer permit applications is a straight -forward process, and
should be completed within ten days of submittal of the approval, a permit, such as the model included in Appendapplication. Upon
ix A of the Rules and
Regulations, will be issued to the installer. This permit may be renewed
annually. Once an installer becomes a permittee, the Utilities Director should
remind the installer that the building permit requirements contained in Section
10.1 of the Rules and Regulations must be followed for installation of all
leased solar systems.
C. Disseminating Program Information to the Public
The Utilities Department will maintain an "Active List" of Program
including telephone numbers and addresses. This list will be sent termittees,
o
prospective lesssees requesting same. Interested City residents will call the
Utilities Department to request names of approved leasing companies and general
information about the Program. Utilities Department staff should be directed to
inform residents that details about lease terms, type of solar systems available
for lease, etc. can all be obtained by contacting the leasing companies
directly. To assure the residents that the City is actively promoting consumer
protection in this Program, the residents should be told that all companies on
the "Active List" are approved by the City for participation in the Program.
Residents should also be informed that to be eligible to apply for the
California 50 percent solar tax credit off their lease payments, they must lease
from a company on the City's "Active List". This state tax credit is currently
scheduled to expire as of December 31, 1986. For more details on this tax
credit, or to obtain the proper tax forms that the residents must file to apply
for the credit, they should contact the California Franchise Tax Board. Federal
solar tax credits do not apply to leased solar systems; the lessee will obtain
+ the total 50 percent tax credit from the State, based on the amount of solar
lease payments actually paid during any given tax year while this t
in effect. of
credit is
The individual leasing companies are responsible for their own marketing and
generation of potential lessee leads. However, any publicity that the City can
obtain about the Program, via articles in the City Newsletter and local
newspapers, will be beneficial. The Utilities Department will coordinate this
Program publicity.
D. Coordinating Billing Process Information with Finance Department
At the inception of the Program, the Utilities Director should meet with
appropriate Finance Department staff to ensure a thorough understanding of the
billing process, procedures to be followed, and account numbers to be used for
both lessees and leasing company permittees. Each leasing company that becomes
a permittee should have a separate account number for purposes of remitting 95
percent of the monthly lease payments collected by the City. The only exception
to this is when a leasing company permittee has executed a billing waiver form
for all of its leased solar systems. As residents become lessees, each lessee
- 5 -
should be assigned a separate account number. Finally, the City should have one
account number to be used for retention of the five percent of collected lease
payments.
As residents lease the solar systems, the leasing company permittees will give
the Utilities Director copies of the signed leases. A folder for each lease
should be established and an account number assigned to the lessee. The
Utilities Director will provide the following information to the Finance
Department:
1. Lessee's name, address, and account number;
2. Name and account number of respective leasing company p y permittee;
S. Monthly lease payment amount, and the breakdown of this payment in
terms of five percent to be retained by the City and 95 percent to be
remitted to the leasing company permittee;
4. Date lease payments are to commence (always due on first of the month);
and
5. Amount of late fee charges to be assessed if payment is delinquent, and
effective date for late fee charges, as specified in the lease
agreement.
The Finance Department will operate the billing system and notify the Utilities
Department if any lessee develops a delinquent payment status requiring further
action by the Utilities Director (see Section C under Finance Department for
discussion of action to be taken if a lessee becomes three months in arrears on
making lease payments).
E. Complaint Resolution
--
Lessees should always contact the respective leasing company first if they are
dissatisfied with any work performed, need service or repair on their solar
system, etc. This direct interaction between the leasing company and lessee
should resolve virtually all complaints and/or problems. However, if a leasing
company and lessee should have an unresolved dispute, then the Utilities
Director should attempt to mediate the dispute and bring it to a timely
resolution. In the unlikely event that a problem cannot be resolved to the
satisfaction of both parties, the dissatisfied party can, as a last resort, take
the matter to the City Council.
pia
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FINANCE DEPARTMENT
The Finance Department will administer the monthly billing/collection process
for the MSU Solar Leasing Program. Leasing companies do have the option to
operate their own billing systems if they execute billing waiver forms with the
Utilities Department. All leases will state that monthly payments are due on
the first of each month for ease of processing by the Finance Department. The
Utilities Director will provide the Finance Department will all pertinent
information to initiate billing for new lessees. Once all monthly payments are
collected, the City will retain five percent of the total payments and remit the
remainder to the respective leasing companies.
A. Establishing New Leasing Company and Lessee Accounts
Each leasing company permittee should have its own account number for purposes
of the Financs Department remitting 95 percent of the lease payments collected
monthly. Likewise, the City should have an account number for deposit of the
remaining five percent that is retained monthly. A block of account numbers
should be reserved for assignment of new lessees. The Utilities Director should
be furnished with all relevant account numbers, and in turn will provide the
Finance Department will all necessary information to initiate monthly billing
for each new lessee (see Section D under Utilities Department).
B. Monthly_ Billing Process
Billing processes will be developed by the Finance Director and will be
integrated with the monthly utility billing process in place.
C. Delinquent Payments
If a lessee fails to pay his/her monthly invoice on time (including any grace
period set forth in the lease terms), the subsequent invoice should include the
next month's lease charges and late fees, if any. If the lessee again fails to
bring his/her account up to date, the same process should be followed for the
subsequent invoice. In addition, the Utilities Director should be notified of
the lessee's delinquent status at this time. If the lessee again fails to make
full payment, and thus is three months in arrears on payment, the Utilities
Director shall issue a notico to the lessee to show cause within ten (10) days
why the solar energy equipment should not be removed, the security deposit
forfeited, and the leasing company notified to proceed with action to remedy the
default as prescribed in the lease agreement. If the lessee can demonstrate
just and reasonable cause for default, the Utilities Director shall attempt to
mediate and facilitate a meeting at which the lessee and leasing company can
arrive at a solution to the problem that is acceptable to both parties. If such
an acceptable solution is not forthcoming, the City shall not prevent the
leasing company permittee from remedying the situation as stated in the specific
lease agreement terms.
U
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BUILDING DEPARTMENT
The Building Department is responsible for issuing building permits for all
solar systems installed under the MSU Solar Leasing Program, and for making
final inspection of these installations. In order to provide consumer
protection regarding sizing of the solar systems leased through the Program, the
Building Department will require that a plot plan diagram be submitted with the
building permit application, showing relevant information about the sizing of
the solar system and its location and orientation. When the final inspection is
made, the inspector will use this diagram to confirm that the system was
installed as planned, in addition to inspecting electrical, plumbing, etc.
components of the system.
A. _ Plan _Check/Building Permit Insurance
' At the time of building permit application, the installing contractor must
provide a plot plan diagram of the structure on which the leased solar system
will be installed. The following information must be on the plot plan diagram:
1. The location of the solar storage tank and collector(s), and the exact
magnetic bearing that the collector(s) will face;
2. A north arrow;
3. The tilt, in degrees, of the angle of the collector(s) above the
horizon;
4. The size of the collector(s) in square feet and the size of the solar
storage tank in gallons;
5. The number of bedrooms in the residence; and
6. The dimension in height, width, and distance of any trees, shrubs, or
structures that could shade the collector(s); if there are none, so
note on the diagram.
The counter person in charge of issuing building permits will verify that all
the aforementioned information is provided on the plot plan diagram. The
counter person will also verify with regard to number one above that the
collector(s) are facing within 90 degrees of true south, and with regard to
number three above that the tilt angle of the collector(s) above the horizon is
between 14 and 53 degrees. Finally, with regard to numbers four and five above,
the counter person will verify that the solar storage tank contains, 3t a
minimum, 20 gallons per bedroom, and the approximately 20 square feec of
collector area (plus or minus ten percent) is provided per bedroom. NOTE: In
the case of multi -family residences, the collector area must be approximately
ten square feet (plus or minus ten percent) per bedroom.
Assuming that the information on the plot plan diagram conforms with that noted
above, the building permit will be issued, and the plot plan diagram will be
attached to the copy of the permit that the inspector will take to the job site.
If the plot plan diagram does not conform with the requirements noted above, the
counter person will instruct the contractor what changes need to be made prior
to permit issuance.
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The counter person should be aware that the 20 square feet of collector area per
bedroom for single-family dwellings, and ten square feet of collector area per
bedroom for multi -family dwellings (plus or minus ten percent for either case),
is a "rule of thumb." If the installing contractor shows a greater square
footage of collector area per bedroom, that is acceptable. However, if
significantly less square footage of collector area per bedroom is shown, which
may happen at times with extremely efficient collectors, then the installing
contractor must justify the collector sizing by submitting a completed PUC
nomograph (Appendix D of the Rules and Regulations) for the collector. By
submitting the nomograph, the contractor can size the collector area according
to the square footage demonstrated on the nomograph. The counter person must
double the collector square footage area shown on the nomograph for each bedroom
of a single-family dwelling residence, but this doubling is not required for
each bedroom of a multi -family residence. Assuming the collector sizing on the
plot plan diagram conforms with that shown on the nomograph (and all other
required information is shown on the plot plan diagram), the building permit
will be issued and a copy of the diagram attached to the inspector's copy of the
permit.
B. Final Inspection
When the contractor has completed the installation, the contractor will call the
Building Department for final inspection. The inspector will perform the usual
plumbing, electrical, etc. inspection, and also verify that the solar system was
installed as shown on the plot plan diagram attached to the inspector's copy of
the permit.
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CONCLUSION
Any questions not answered in this manual should be addressed to the Utilities
Director, since the Utilities Department is the primary administrator of this
Program. Other information sources are neighboring cities (i.e. Oceanside and
San Diego) that have implemented similar MSU Solar Leasing Programs. By using
this manual, implementation and administration of the Program should not be
troublesome or too time consuming for any affected Department, and the residents
of Carlsbad will have a new opportunity to obtain solar water heating systems on
an affordable basis.
,q&,