HomeMy WebLinkAboutMinutes - Citizens' Sustainability Committee 11/16/2015CITY OF PALM DESERT
CITIZENS' SUSTAINABILITY COMITTEEE
MINUTES
MONDAY, NOVEMBER 16, 2015 — 2:00 P.M.
ADMINISTRATIVE CONFERENCE ROOM
73-510 FRED WARING DRIVE, PALM DESERT, CA 92260
Preceding the meeting, Mayor Susan Marie Weber thanked the Citizens'
Sustainability Committee for serving on the Committee and presented the members
with a gift of appreciation.
I. CALL TO ORDER
Chair Susan Rosenberg called the meeting to order at 2:07 p.m.
II. ROLL CALL
Present:
Member Gregory Gritters
Member Dennis Guinaw
Member David Mourhess
Vice Chair Dean Gatons
Chair Susan Rosenberg
Also Present:
Absent:
Member Tommy Edwards
Member Courtney Lingle
Member Ralph Raya
Member Oxana Wolfson
Susan Marie Weber, Mayor
Sabby Jonathan, Council Member
Tony Bagato, Acting Director of Community Development
Mark Greenwood, Director of Public Works
Monica O'Reilly, Recording Secretary
Patricia Dan, Youth Committee Member
Rachel Sieberg, Youth Committee Member
Mr. Tony Bagato, Acting Director of Community Development, announced that
Member Oxana Wolfson resigned from the Citizens' Sustainability Committee so she
could continue her education in Australia.
Chair Rosenberg asked if there will be new members appointed to the Committee.
Mr. Bagato replied that not at this time. He said he will check with the City Clerk on
the appointment process.
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CITIZENS' SUSTAINABILITY COMMITTEE NOVEMBER 16, 2015
Councilmember Sabby Jonathan said to contact him if they know of anyone that
would be interested in being on the Citizens' Sustainability Committee. He briefly
explained the annual process.
Member Gregory Gritters asked if they would have to be a Palm Desert resident.
Councilmember Jonathan responded that the Citizens' Sustainability Committee
does not have a residency requirement; however, residency is preferred.
Member Gritters noted that he will ask Mr. Dave Koller since he is now retired.
III. ORAL COMMUNICATIONS
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IV. PRESENTATION
A. PRESENTATION to the Citizens' Sustainability Committee by Rachel Seiberg,
Youth Committee, regarding the Lincoln Elementary Party.
Ms. Rachel Seiberg, Youth Committee Member, stated that on October 15 the Youth
Committee had a sustainability party for the Lincoln Elementary after school
program. She said the party went really well. Their goal was to reinforce the ideas of
sustainability and the prevalence of environmental issues. She displayed pictures of
the event, and mentioned other events they will have in the upcoming months for the
Lincoln Elementary after school program.
V. CONSENT CALENDAR
A. MINUTES of the Citizens' Sustainability Committee meeting of August 24, 2015.
Rec: Approve as presented.
Upon a motion by Member Mourhess, second by Member Gritters, and a 5-0 vote of
the Citizens' Sustainability Committee (AYES: Gatons, Gritters, Guinaw, Mourhess, and
Rosenberg; NOES: None; ABSENT: Edwards, Lingle, Raya, and Wolfson; ABSTAIN:
None), the Consent Calendar was approved as presented.
VI. CONSENT ITEMS HELD OVER
None
VII. NEW BUSINESS
A. PRESENTATION to the Citizens' Sustainability Committee by Jeremy Hutman,
Regional PACE Director, regarding the CaliforniaFIRST program.
Mr. Bagato noted there was a staff report pertaining to this item, and explained that
CaliforniaFIRST is another Property Assessed Clean Energy (PACE) program. He
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said that the other PACE programs that have been approved by the City is Ygrene
and HERO, and introduced Mr. Jeremy Hutman.
MR. JEREMY HUTMAN, Regional PACE Director, CaliforniaFIRST, thanked the
Committee for allowing him to present the program. A PowerPoint presentation with
oral interpretation was given by Mr. Hutman to explain the CaliforniaFIRST program.
At the end of his presentation, he offered to answer any questions.
Member David Mourhess asked if a non-profit entity owns the building is the property
tax exempt.
MR. HUTMAN responded that CaliforniaFIRST could do a 501c3 on any type of non-
profit. If the non-profit entity owns the property, CaliforniaFIRST is able to finance
directly to them, and they would be able to repay through their property tax bill.
Member Mourhess inquired if solar thermal systems are eligible.
MR. HUTMAN replied yes.
Member Mourhess asked who captures the 30 percent federal income tax credit.
MR. HUTMAN replied that the property owner receives the 30 percent tax credit. The
credit could be applied to the principal and re -amortized with no penalties.
Member Mourhess inquired what will happen when the 30 percent tax credit sunsets
at the end of 2016.
MR. HUTMAN responded that the PACE program would be another option in the
community when the 30 percent credits ends next year. He said the only way for
property owners and contractors to deal with it is to find more ways to finance solar
that make things pencil out.
Member Mourhess asked what the adoption rate for the other two programs in the
Coachella Valley is.
Mr. Bagato commented that later in the meeting he will give an update on the HERO
program. He does not know the status of the Ygrene program.
MR. HUTMAN added that CaliforniaFIRST is well established in southern California,
and they have 1,000+ contractors working with them.
Member Mourhess asked if CaliforniaFIRST would establish a physical office in
Palm Desert.
MR. HUTMAN replied no; however, they would have a local representative and
several managers in the area.
Vice Chair Dean Gatons asked if CaliforniaFIRST is one of the PACE programs in
the City of Palm Desert.
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MR. HUTMAN answered that if the City passes a resolution to join the program, it
would be one of several programs.
Vice Chair Gatons stated that he is constantly receiving phone calls at his home
regarding PACE programs. He is concerned, if another program is added, he would
receive more calls.
MR. HUTMAN communicated that is not only a local issue, it is a statewide issue.
Mr. Bagato interjected that there are providers and contractors; the program is only
the financing mechanism.
MR. HUTMAN explained every contractor uses a different type of financing. If a
contractor is constantly calling, they would like to hear about it. He stated they would
take action against contractors to protect the consumer.
Member Mourhess commented that it is not the PACE providers providing the phone
numbers to the contractors; it is not their scope of operation. The contractors are
getting the phone numbers; however, he does not know from where.
MR. HUTMAN made clear that they do not provide or share phone lists with cities or
contractors; they only provide financing.
Mr. Bagato added that the City does not provide phone lists.
Councilmember Jonathan commented that the federal credit is only available for
purchases. He asked if the contractors are prepared to offer a purchase agreement
versus a lease agreement for solar panels.
MR. HUTMAN replied yes. He said almost all of their solar systems are individually
owned.
Councilmember Jonathan asked if a homeowner receives credit, is the pay down of
the financing mandatory or optional.
MR. HUTMAN said that it is optional.
Member Gritters inquired if CaliforniaFIRST needs an endorsement from the City,
but they do not need permission from the City to offer their loan program in Palm
Desert.
Mr. Bagato responded that CaliforniaFIRST does need to be approved by the City
Council through a resolution to offer the PACE program. He noted that
CaliforniaFIRST would be a third option made available to the public. HERO and
Ygrene are the other programs approved and currently available in Palm Desert.
Chair Rosenberg asked what happens when someone wants to sell their house.
Have potential buyers pushed back because they would pay higher property taxes.
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MR. HUTMAN responded that it would be a negotiating point of sale. He said the
assessment could be settled through escrow, or there are other options for property
owners at the point of sale.
Chair Rosenberg asked if removing the solar panels would be one of the options.
MR. HUTMAN replied yes. He stated that CaliforniaFIRST has no prepayment
penalties, and they would subordinate to make sure the sale of the home could
happen.
Member Mourhess asked what two or three key differentiators between
CaliforniaFIRST and the two other programs are.
MR. HUTMAN answered that they have lenders who want to participate in
CaliforniaFIRST, which has created a large amount of competition. Therefore,
property owners could go to any lender to find the best rates. He also mentioned that
CaliforniaFIRST has a 25-year term.
Member Mourhess asked if there are training programs for the contractors.
MR. HUTMAN replied yes. He explained CaliforniaFIRST checks the contractor's
background, contractors are trained on how to use CaliforniaFIRST, and contractors
are monitored by CaliforniaFIRST. He noted that they train contractors to not
robocall.
Member Dennis Guinaw asked Mr. Hutman where their headquarters is located.
MR. HUTMAN responded that their headquarters is located in Oakland, California;
however, they have a large presence in southern California.
Member Guinaw inquired if CaliforniaFIRST does not have a prepayment penalty.
MR. HUTMAN answered there is no prepayment penalty. He noted that
CaliforniaFIRST has calculators online available.
MR. CAL BUTLER, Palm Desert, California, commented that he works mainly with
commercial solar. He was excited that CaliforniaFIRST accesses more equity in the
property than the HERO and Ygrene programs. He felt CaliforniaFIRST is good for
the City of Palm Desert, and it complements the goals of the city to be a leader in
sustainability. He encouraged that the Citizens' Sustainability Committee
recommend to the City Council to pass a resolution to accept CaliforniaFIRST so
property owners in Palm Desert have one more choice.
Chair Rosenberg asked who gets the money from the interest that people pay.
MR. HUTMAN responded that it goes to the individual companies running the
programs and providing the capital.
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Member Mourhess asked if a non-profit entity that owns a building and qualifies for
financing, who signs the documents for the entity.
MR. HUTMAN responded whoever is authorized to sign for the non-profit entity. He
said he does not have all the details, but could provide Member Mourhess with the
information.
Councilmember Jonathan interjected that it is typically the board of the non-profit
entity.
With no further questions, Mr. Bagato stated staff recommended approval for the
adoption of the CaliforniaFIRST program in the City of Palm Desert.
Member Guinaw moved to recommend to the City Council to approve
CaliforniaFIRST as the third PACE program provider for properties within the City of Palm
Desert. Motion was seconded by Member Mourhess and carried by a 5-0 vote (AYES:
Gatons, Gritters, Guinaw, Mourhess, and Rosenberg; NOES: None; ABSENT: Edwards,
Lingle, Raya, and Wolfson; ABSTAIN: None).
VIII. CONTINUED BUSINESS
None
IX. OLD BUSINESS
None
X. REPORTS AND REMARKS
A. HERO Program Update — Tony Bagato
Mr. Bagato provided a brief update on the HERO program. He pointed out 56
projects were completed, $1,082,968 funded projects, 8,188,942 kWh of energy
saved, 2,301 tons of emissions reduced, and 1,773,750 gallons of water saved in
Palm Desert.
Member Rosenberg asked what the non -solar projects are.
Member Mourhess said it could be new windows, new air conditioning systems, or
any energy efficiency improvement.
Member Gritters noted that plants are not covered by the HERO program. They
cover anything that would be permanent such as irrigation systems, controller
systems, hardscape, and decomposed granite (DG).
B. Committee Members Comments
Mr. Bagato commented that a proposed meeting schedule for 2016 was provided to
the Sustainability Committee.
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Vice Chair Gatons asked if the Citizens' Sustainability Committee meeting time could
be changed to 3:00 p.m.
With the Citizens' Sustainability Committee concurrence, the Committee meetings
were changed to 3:00 p.m.
Vice Chair Gatons requested to be informed about future Sustainability Committee
members. He asked if Sustainability Committee members are able to sit in on the
interviews/meetings to provide suggestions.
Councilmember Jonathan responded that the meetings are public; however, he does
not know if the City Council solicits public input. He asked the Committee to
encourage friends to serve on committees and commissions.
Vice Chair Gatons expressed that communication and education with programs are
important.
Councilmember Jonathan mentioned he is on the City's Smart Team, and they are
focused on an outreach to the Palm Desert residents particularly via social media.
Member Guinaw asked if he knows of a potential candidate for the Sustainability
Committee, does he direct the candidate to Councilmember Jonathan's office.
Councilmember Jonathan replied yes, and he will direct the candidate to the City
Clerk to make sure they follow the appropriate process.
Member Gritters recommended that the City evaluate their landscapes in light of the
current drought mandate, and the potential future water costs and watering
restrictions. He stated that they are telling their customers to remove 35 percent of
their turf, if they want to meet the 35 percent reduction on an annual basis. He also
recommended that the City and the Coachella Valley Water District (CVWD) are
consistent with the guidelines they use when approving new landscape. He
suggested that the City look at landscaped areas to come up with a program that
would allow them to have turf, but as a City, meet the 36 percent reduction without
grass going dormant. He mentioned that the City could use less water by letting the
Bermudagrass go in the summertime, and have Ryegrass in the wintertime. He
stated that the Coachella Valley off season is summer; not winter.
Mr. Mark Greenwood interjected that for many years the City of Palm Desert has
been a leader in water conservation.
Member Gritters stated that landscape in the City should be looked at as a whole,
and work to be in compliance with the state, CVWD, and Palm Desert's current
regulations. However, he believes you could have nice looking grass in the
wintertime, and still meet the requirements if you look at the City as a whole.
Mr. Greenwood noted Palm Desert's current net savings is 30 percent.
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Councilmember Jonathan mentioned that the City is replacing turf around City Hall
with drought tolerant landscape; however, it comes with challenges because it costs
a lot of money.
At this point, there was discussion regarding water billing, water calculations and
water usage.
Vice Chair Gatons asked if Desert Willow and parks use reclaimed water.
Mr. Greenwood responded that they use reclaimed water at Desert Willow.
Councilmember Jonathan reported that the City Council gave direction for staff to
review the backyard beekeeping ordinance. He said the Sustainability Committee
may want to weigh in on the draft ordinance. He mentioned that the Committee may
look at other sustainability issues because there is an urban trend for eating and
living healthy. For example, backyard chickens are a growing trend along with
community gardens.
Mr. Bagato mentioned changes to the Sustainability Plan were approved by the City
Council. He would email the updated plan, and asked the Committee to let staff know
if there is anything they would like to discuss any items. In addition, he is still working
on the Shade Tree Ordinance.
XI. ADJOURNMENT
With Committee concurrence, Chair Rosenberg adjourned the meeting at 3:29 p.m.
Monica O'Reilly, Recording cretary
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