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HomeMy WebLinkAbout2013-12-03; City Council; 21453; Approval Join Clean Energy Program W RiversideCITY OF CARLSBAD - AGENDA BILL 15 AB# MTG. DEPT. 21.453 12/3/13 PW-PEM APPROVAL TO JOIN THE CALIFORNIA HERO PROPERTY ASSESSED CLEAN ENERGY PROGRAM AND BECOME AN ASSOCIATE MEMBER OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS JOINT POWERS AUTHORITY DEPT.DIRECrOR CITY ATTY. CITY MGR. RECOMMENDED ACTON: Adopt Resolution No. 2013-282 consenting to the inclusion ofthe properties within the city's jurisdiction in the California HERO Program to finance distributed generation renewable energy sources, energy and water efficiency improvements and electric vehicle charging infrastructure and approving the amendment to a certain Joint Powers Agreement related thereto. ITEM EXPLANATION: Chapter 29 of Division 7 ofthe Streets and Highway Code authorizes cities and counties in California to designate areas within which willing property owners can enter into contractual assessments to finance the installation of distributed generation energy sources, energy efficiency and water efficiency improvements ("efficiency improvements") that are permanently fixed to the property owner's residential, commercial, industrial or other real property ("energy financing program"). Because these energy financing programs are repaid through the property's tax bill, the programs are known as Property Assessed Clean Energy or "PACE" programs. PACE programs can provide benefits to property owners, the city and the community. Through PACE, a property owner can finance renewable energy projects, like solar power, and efficiency improvements without significant upfront capital expenditures and with immediate savings from reduced energy and/or water use. Also, the PACE assessment runs with the property thereby alleviating the property owner from paying the remaining balance upon sale and transfer ofthe property. The city benefits by having a third party administer a financing program that facilitates the provision of cost effective energy efficiency and alternative energy projects for its residents and businesses. The community can benefit because the facilitation of financing for such projects can stimulate the market, growing job opportunities in the construction sector and increasing property values. The City Council acknowledged these potential benefits when, on February 23, 2010, it voted to join the California FIRST PACE program, authorized through the California Communities Joint Powers Authority and administered by Renewable Funding LLC. This action made PACE financing available for non- residential properties within Carlsbad. DEPARTMENT CONTACT: Michael Grim 760-602-4623 Mike.Grim@carlsbadca.gov FOR CLERK USE. L0^ COUNCIL AaiON: APPROVED L0^ CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER- SEE MINUTES • AMENDED • REPORT RECEIVED • Since 2010, other PACE programs have become available in the San Diego Region; one of those programs is California HERO. California HERO is authorized through the Western Riverside Council of Governments (WCROG) and administered by Renovate America, a for-profit corporation based in San Diego. California HERO can provide PACE financing for both residential and non-residential properties and, in addition to energy generation and efficiency improvements, offers financing for electric vehicle charging infrastructure. In order to increase the PACE financing options available for non-residential properties and provide PACE financing opportunities to residential properties, staff is recommending that the City Council join the California HERO program. FISCAL IMPACT; There are no fiscal impacts to the city due to joining the California HERO Program. There are no upfront or ongoing costs involved in being an Associate Member of WRCOG and no costs to the city for the PACE program inception or operation. The staffs ofthe WRCOG and the California HERO Program administrator. Renovate America, are responsible for the conduct ofthe assessment proceedings, levy and collection of assessments including any remedial action in case of property owner delinquency, sale and administration of any bonds, and PACE program administration, marketing, and customer service. The city may elect to assist with marketing the program and can report back to the City Council on program progress; however staff time associated with these activities is negligible. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the meaning ofthe California Environmental Quality Act (CEQA) in that it does not cause either a direct physical change in the environmental, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. EXHIBITS: 1. Resolution No. 2013-282 consenting to the inclusion of the properties within the city's jurisdiction in the California HERO Program to finance distributed generation renewable energy sources, energy and water efficiency improvements and electric vehicle charging infrastructure and approving the amendment to a certain Joint Powers Agreement related thereto. 1 RESOLUTION NO. 2013-282 3 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, CONSENTING TO THE INCLUSION OF THE PROPERTIES WITHIN THE CITY'S JURISDICTION IN THE CALIFORNIA 4 HERO PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY AND WATER EFFICIENCY 5 IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND APPROVING THE AMENDMENT TO A ^ CERTAIN JOINT POWERS AGREEMENT RELATED THERETO. 7 8 9 10 WHEREAS, the Western Riverside Council of Governments ("Authority") is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the "Act") and the 11 Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the 12 "Authority JPA"); and 13 WHEREAS, Authority intends to establish the California HERO Program to provide for the 14 financing of renewable energy distributed generation sources, energy and water efficiency 15 improvements and electric vehicle charging infrastructure (the "Improvements") pursuant to 16 " Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and 18 Highways Code ("Chapter 29") within counties and cities throughout the State of California that 1^ elect to participate in such program; and 20 WHEREAS, the City of Carlsbad (the "City") is committed to development of renewable 21 energy sources and energy efficiency improvements, reduction of greenhouse gases and 22 protection of our environment; and 24 WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist 25 property owners in financing the cost of installing improvements through a voluntary contractual assessment program; and 27 28 1 WHEREAS, installation of such improvements by property owners within the ^ jurisdictional boundaries ofthe counties and cities that are participating in the California HERO 3 Program would promote the purposes cited above; and 4 WHEREAS, the City wishes to provide innovative solutions to its property owners to 5 achieve energy and water efficiency and independence, and in doing so cooperate with 6 7 Authority in order to efficiently and economically assist property owners within the City in 8 financing such improvements; and ^ WHEREAS, Authority has authority to establish the California HERO Program, which will 10 be such a voluntary contractual assessment program, as permitted by the Act, the Authority 11 JPA, originally made and entered into April 1,1991, as amended to date and the Amendment to 12 Joint Powers Agreement Adding the City of Carlsbad as an Associate Member of the Western 14 Riverside Council of Governments to Permit the Provision of Property Assessed Clean Energy 15 (PACE) Program Services within the City (the "JPA Agreement"), by and between Authority and 16 City, a copy of which is attached as Exhibit "A" hereto, to assist property owners within the incorporated area of the City in financing the cost of installing improvements; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings, the levy and collection of assessments or any required remedial action in the case 21 of delinquencies in the payment of any assessments of the issuance, sale or administration of 22 any bonds issued in connection with the California HERO Program. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows that: 1. The above recitations are true and correct. 17 18 19 20 23 24 25 26 27 28 1 2. The City Council finds and declares that properties in the city's incorporated area 21 22 23 24 25 26 27 28 will be benefited by the availability of the California HERO Program to finance the installation of improvements. 3. The City Council consents to inclusion in the California HERO Program of all of 2 3 4 5 6 the properties in the incorporated area of the city and to the improvements, upon 7 the request by and voluntary agreement of owners of such properties, in ^ conjunction with the laws, rules and regulations applicable to such program; and to 9 the assumption of jurisdiction thereover by Authority for the purposes thereof 10 4. The consent of the City Council constitutes assent to the assumption of 11 j2 jurisdiction by Authority for all purposes of the California HERO Program and 13 authorizes Authority, upon satisfaction ofthe conditions imposed in this resolution, 14 to take each and every step required for or suitable for financing the improvements, including the levying, collecting and enforcement ofthe contractual assessments to finance the improvements and the issuance and enforcement of bonds to represent and be secured by such contractual assessments. 15 16 17 18 19 5. The City Council hereby approves the JPA Agreement and authorizes the 20 execution thereof by the Mayor. 6. City staff is authorized and directed to coordinate with Authority staff to facilitate operation ofthe California HERO Program within the city, and report back periodically to this City Council on the success of such program, as requested. 1 2 3 4 // 5 // 6 // 7 // 8 // 9 // // 10 // 11 12 // 13 // 14 // 15 // 16 // 17 // 18 19 // 20 // 21 // 22 // 23 // 24 // 25 26 // 27 28 This resolution shall take effect immediately upon its adoption. The City Clerk is directed to send a certified copy of this resolution to the Secretary of Authority Executive Committee. PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City of Carlsbad on the 3"^^ day of December 2013, by the following vote to wit: AYES: NOES: Council Members Hall, Packard, Wood, Blackburn, Douglas. None. ABSENT: None. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTEST: B/OjpBARA ENGLESON, ©ity Clerk O: %7 * STATE OF CAUFORNIA ) COUNTY OF SAN DIEGO ) ss. I, Barbara Engleson, City Clerk ofthe City of Carlsbad, County of San Diego, State of California, hereby certify that I have compared the foregoing copy with the original RESOLUTION NO. 2013-282. CONSENTING TO THE INCLUSION OF THE PROPERTIES WITHIN THE CITY^S JURISDICTON IN THE CAUFORNIA HERO PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES. ENERGY AND WATER EFFICIENCY IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING INFRASTRUaURE AND APPROVING THE AMENDMENT TO A CERTAIN JOINT POWERS AGREEMENT RELATED THERETO, with the original now on file In the Office of the City Clerk of the City of Carisbad; that the same contains a full, true and correct transcript therefrom and ofthe whole thereof. Witness my hand and the seal of said City of Carisbad, this 6th day of December, 2013. EXHIBITA AMENDMENT TO THE JOINT POWERS AGREEMENT ADDING CITY OF CARLSBAD AS AS AN ASSOCIATE MEMBER OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS TO PERMIT THE PROVISION OF THE CALIFORNIA HERO PROGRAM SERVICES WITH SUCH CITY This Amendment to the Joint Powers Agreement ("JPA Amendment") is made and entered Into on the ^day of , 2013, by City of Carisbad ("City") and the Western Riverside Council of Governments ("Authority") (collectively the "Parties"). RECITALS WHEREAS, Authority is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the "Joint Exercise of Powers Act") and the Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the "Authority JPA"); and WHEREAS, as of October 1, 2012, Authority had 18 member entities (the "Regular Members"). WHEREAS, Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code ("Chapter 29") to authorize cities, counties, and cities and counties to establish voluntary contractual assessment programs, commonly referred to as a Property Assessed Clean Energy ("PACE") program, to fund various renewable energy sources, energy and water efficiency improvements, and electric vehicle charging infrastructure (the "Improvements") that are permanently fixed to residential, commercial, industrial, agricultural or other real property; and WHEREAS, Authority intends to establish a PACE program to be known as the "California HERO Program" pursuant to Chapter 29 as now enacted or as such legislation may be amended hereafter, which will authorize the implementation of a PACE financing program for cities and county throughout the state; and WHEREAS, City desires to allow owners of property within its jurisdiction to participate in the California HERO Program and to allow Authority to conduct proceedings under Chapter 29 to finance Improvements to be installed on such properties; and WHEREAS, this JPA Amendment will permit City to become an associate member of Authority and to participate in California HERO Program for the purpose of facilitating the implementation of such program within the jurisdiction of City; and A-1 2 WHEREAS, pursuant to Government Code sections 6500 et seq., the Parties are approving this JPA Agreement to allow for the provision of PACE services, including the operation of a PACE financing program, within the incorporated territory of City; and WHEREAS, the JPA Amendment sets forth the rights, obligations and duties of City and Authority with respect to the implementation of the California HERO Program within the incorporated territory of City. MUTUAL UNDERSTANDINGS NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter stated, the Parties hereto agree as follows: A. JPA Amendment. 1. The Authority JPA. City agrees to the terms and conditions of the Authority JPA, attached. 2. Associate Membership. By adoption of this JPA Amendment, City shall become Associate Member of Authority on the terms and conditions set forth herein and the Authority JPA and consistent with the requirements of the Joint Exercise of Powers Act. The rights and obligations of City as an Associate Member are limited solely to those terms and conditions expressly set forth in this JPA Amendment for the purposes of implementing the California HERO Program within the incorporated territory of City. Except as expressly provided for by the this JPA Amendment, City shall not have any rights otherwise granted to Authority's Regular Members by the Authority JPA, including but not limited to the right to vote on matters before the Executive Committee or the General Assembly, right to amend or vote on amendments to the Authority JPA, and right to sit on committees or boards established under the Authority JPA or by action of the Executive Committee or the General Assembly, including, without limitation, the General Assembly and the Executive Committee. City shall not be considered a member for purposes of Section 9.1 of the Authority JPA. City shall not be bound by any subsequent amendments of the Authority JPA not expressly agreed to by City. 3. Rights of Authority. This JPA Amendment shall not be interpreted as limiting or restricting the rights of Authority under the Authority JPA. Nothing in this JPA Amendment is intended to alter or modify Authority Transportation Uniform Mitigation Fee (TUMP) Program, the PACE Program administered by Authority within the jurisdictions of its Regular Members, or any other programs administered now or in the future by Authority, all as currently structured or subsequently amended. 4. Rights of Citv. This JPA Amendment shall be not interpreted as limiting or restricting the rights of City to establish parameters or limitation on upon the HERO Program as it is conducted within City's jurisdiction. A-2 B. Implementation of California HERO Program within City Jurisdiction. 1. Boundaries of the California HERO Program within Citv Jurisdiction. City shall determine and notify Authority of the boundaries of the incorporated territory within City's jurisdiction within which contractual assessments may be entered into under the California HERO Program (the "Program Boundaries"), which boundaries may include the entire incorporated territory of City or a lesser portion thereof, upon approva! of same by City Council. 2. Determination of Eligible Improvements. Subject to any parameters or limitations provided in the resolution of City approving the conduct of the HERO Program within City's jurisdiction, Authority shall determine the types of distributed generation renewable energy sources, energy efficiency or water conservation improvements, electric vehicle charging infrastructure or such other improvements as may be authorized pursuant to Chapter 29 (the "Eligible Improvements") that will be eligible to be financed under the California HERO Program. 3. Establishment of California HERO Program. Authority will undertake such proceedings pursuant to Chapter 29 as shall be legally necessary to enable Authority to make contractual financing of Eligible Improvements available to eligible property owners with the California HERO Program Boundaries and will be solely responsible for the conduct of such proceedings. 4. Financing the installation of Eligible Improvements. Upon approval of the conduct of the HERO Program within City's jurisdiction. Authority shall be solely responsible to develop and implement a plan for the financing of the purchase and installation of the Eligible Improvements under the California HERO Program. 5. Ongoing Administration. Authority shall be responsible for the ongoing administration ofthe California HERO Program, including but not limited to producing education plans to raise public awareness of the California HERO Program, soliciting, reviewing and approving applications from residential and commercial property owners participating in the California HERO Program, establishing contracts for residential, commercial and other property owners participating in such program, establishing and collecting assessments due under the California HERO Program, adopting and implementing any rules or regulations for the PACE program, and providing reports as required by Chapter 29. City will not be responsible for the conduct of any proceedings required to be taken under Chapter 29; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or A-3 lO the issuance, sale or administration of the Bonds or any other bonds issued in connection with the California HERO Program. 6. Phased Implementation. The Parties recognize and agree that implementation of the California HERO Program as a whole can and may be phased as additional other cities and counties execute similar agreements. City entering into this JPA Amendment will obtain the benefits of and incur the obligations imposed by this JPA Amendment in its jurisdictional area, irrespective of whether cities or counties enter into similar agreements. C. Miscellaneous Provisions. 1. Withdrawal. Authority may withdraw from this JPA Amendment upon six (6) months written notice to City; provided, however, there is no outstanding indebtedness of Authority within City. The provisions of Section 6.2 of the Authority JPA shall not apply to City under this JPA Amendment. City may withdraw approval for conduct of the HERO Program within the jurisdictional limits of City upon thirty (30) days written notice to WRCOG without liability to the Authority or any affiliated entity. City withdrawal shall not affect the validity of any voluntary assessment contracts (a) entered prior to the date of such withdrawal or (b) entered into after the date of such withdrawal so iong as the applications for such voluntary assessment contracts were submitted to and approved by WRCOG prior to the date of City's notice of withdrawal. 2. indemnification and Liabilitv. Authority shall defend, indemnify and hold City and its directors, officials, officers, employees and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries of any kind, in law or equity, to property or persons, including wrongful death, to the extent arising out of the acts, errors or omissions of Authority or its directors, officials, officers, employees and agents in connection with the California HERO Program administered under this JPA Amendment, including without limitation the payment of expert witness fees and attorneys fees and other related costs and expenses, but excluding payment of consequential damages, provided that the Authority shall not be required to defend or indemnify City and its directors, officials, officers, employees and agents for City's sole negligence or willful misconduct. Without limiting the foregoing. Section 5.2 of the Authority JPA shall not apply to this JPA Amendment. In no event shall any of Authority's Regular Members or their officials, officers or employees be held directly liable for any damages or liability resulting out of this JPA Amendment. 3. Environmental Review. Authority shall be the lead agency under the California Environmental Quality Act for any environmental review that may required in implementing or administering the California HERO Program under this JPA Amendment. 4. Cooperative Effort. City shall cooperate with Authority by providing information and other assistance in order for Authority to meet its obligations A-4 hereunder. City recognizes that one of its responsibilities related to the California HERO Program will include any permitting or inspection requirements as established by City. City's cooperation shall not be interpreted to require any approvals without appropriate review or that any discretionary authority of City be exercised other than as provided by law. 5. Notice. Any and ali communications and/or notices in connection with this JPA Amendment shall be either hand-delivered or sent by United States first class mail, postage prepaid, and addressed as follows: Authority: Western Riverside Council of Governments 4080 Lemon Street, 3rd Floor. MS1032 Riverside, CA 92501-3609 Att: Executive Director City: City of Carisbad City Manager 1200 Carlsbad Village Drive Carisbad, CA 92008 6. Entire Agreement. This JPA Amendment, together with the Authority JPA, constitutes the entire agreement among the Parties pertaining to the subject matter hereof. This JPA Amendment supersedes any and all other agreements, either oral or In writing, among the Parties with respect to the subject matter hereof and contains all of the covenants and agreements among them with respect to said matters, and each Party acknowledges that no representation, inducement, promise of agreement, oral or otherwise, has been made by the other Party or anyone acting on behalf of the other Party that is not embodied herein. 7. Successors and Assigns. This JPA Amendment and each of its covenants and conditions shall be binding on and shall inure to the benefit of the Parties and their respective successors and assigns. A Party may only assign or transfer its rights and obligations under this JPA Amendment with prior written approval ofthe other Party, which approval shall not be unreasonably withheld. 8. Attorney's Fees. If any action at law or equity, including any action for declaratory relief is brought to enforce or interpret the provisions of this Agreement, each Party to the litigation shall bear its own attorney's fees and costs. A-5 9. Governing Law. This JPA Amendment shall be governed by and construed in accordance with the laws of the State of California, as applicable. 10. No Third Partv Beneficiaries. This JPA Amendment shall not create any right or interest in the public, or any member thereof, as a third party beneficiary hereof, nor shall it authorize anyone not a Party to this JPA Amendment to maintain a suit for personal injuries or property damages under the provisions of this JPA Amendment. The duties, obligations, and responsibilities of the Parties to this JPA Amendment with respect to third party beneficiaries shall remain as imposed under existing state and federal law. Severability. In the event one or more of the provisions contained in this JPA Amendment is held Invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this JPA Amendment and the remaining parts of this JPA Amendment shall remain in full force and effect as though such invalid, illegal, or unenforceable portion had never been a part of this JPA Amendment. 12. Headings. The paragraph headings used in this JPA Amendment are for the convenience of the Parties and are not intended to be used as an aid to interpretation. 13. Amendment. This JPA Amendment may be modified or amended by the Parties at any time. Such modifications or amendments must be mutually agreed upon and executed in writing by both Parties. Verbal modifications or amendments to this JPA Amendment shall be of no effect. 14. Effective Date. This JPA Amendment shall become effective upon the execution thereof by the Parties hereto. IN WITNESS WHEREOF, the Parties hereto have caused this JPA Amendment to be executed and attested by their officers thereunto duly authorized as ofthe date first above written. WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS By: Date: Executive Committee Chair Western Riverside Council of Governments CITY OF CARLSBA By: hj^^lM/ Date: December 3, 2013 Title: iVlayor A-6 3 Property Assessed Clean Energy (PACE) Michael Grim December 3, 2013 What is PACE? •Definition •What it covers –Energy efficiency –Renewable energy –Water conservation •Benefits History of PACE in Carlsbad •California FIRST PACE program –City Council joined on February 23, 2010. –Only available for commercial properties. –Residential properties may be available in the future. •Other PACE providers –Contacted city beginning in 2011. 3 Current Proposal •Join two additional PACE programs –California HERO Program –Figtree PACE Program •Both programs require joining JPA as Associate Member. •All district formation and administration done by JPA and/or program administrator. 4 California HERO Program •Western Riverside Council of Governments (WRCOG) JPA. •Residential and commercial/industrial properties. •Renewable energy, energy and water conservation projects. –Includes electric vehicle charging infrastructure. 5 Figtree PACE Program •California Enterprise Development Authority (CEDA) JPA. •Residential and commercial/industrial properties. •Renewable energy, energy and water conservation projects. 6 Recommendation •Adopt resolution joining WRCOG JPA and California HERO Program. •Adopt resolution joining CEDA JPA. •Adopt resolution joining Figtree PACE program. 7