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HomeMy WebLinkAboutCC RES 09-62ARESOLUTION NO. 09-62 A A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT DECLARING ITS INTENTION TO AMEND ENERGY INDEPENDENCE PROGRAM REPORT AND ADMINISTRATIVE GUIDELINES PREPARED PURSUANT TO SECTION 5898.22 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND SETTING A PUBLIC HEARING THEREON WHEREAS, pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (the "Act"), the City Council established its Energy Independence Program (the "Program" or "EIP") to assist property owners with the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently fixed to their property; and WHEREAS, in connection with the Program and as required by the Act, the Director of the City's Office of Energy Management prepared a report (the "Report") in accordance with Section 5898.22 of the Act; and WHEREAS, the Report contains (a) a map showing the boundaries of the territory within which the Program is proposed to be offered, (b) a draft application for participation in the Program, (c) a draft contract (the "Contract") specifying the terms and conditions that would be agreed to by a property owner and the City for participation in the Program, (d) a statement of city policies concerning contractual assessments including: (1) identification of types of facilities, distributed generation renewable energy sources, or energy efficiency improvements that may be financed through the use of contractual assessments, (2) identification of a City official authorized to enter into contractual assessments on behalf of the City, (3) a maximum aggregate dollar amount of contractual assessments, (4) a method for setting requests from property owners for financing through contractual assessments in priority order in the event that requests appear likely to exceed the authorization amount, (e) a plan for raising a capital amount required to pay for work performed pursuant to contractual assessments, (f) a statement of or method for determining the interest rate and time period during which contracting property owners would pay any assessment, (g) the establishment of any reserve fund or funds, (h) the apportionment of all or any portion of the costs incidental to financing, administration, and collection of the contractual assessment program among the consenting property owners and the City, and (i) a report on the results of the consultations with the County Auditor -Controller's office; and WHEREAS, on August 28, 2008, the City Council approved the Report and established the Program following a full and fair public hearing at which interested persons were afforded the opportunity to object to, inquire about or provide evidence with regard to the proposed Program or any of its particulars; and WHEREAS, on June 25, 2009, the City Council approved amendments to the Report following a full and fair public hearing at which interested persons were afforded the opportunity to object to, inquire about or provide evidence with regard to the proposed amendments to the Program or any of its particulars, including without 1 P6401.1043 1189514.2 RESOLUTION NO. 09-62A limitation amendments (i) to require documentation of consent by a preexisting lender for any Program loan that is $30,000 or more, (ii) to establish $100,000 as the maximum amount of any Program loan, and (iii) to require fifty percent of funds available for Program loans to be reserved for energy efficiency upgrades and retrofits; and WHEREAS, in furtherance of the financial strategy of the Program, City staff has consulted with respondents to the City's "Request for Proposals — Energy Program Financing," dated February 2009 and also with legal counsel as to amendments to the Program and the Report necessary to provide for certain credit criteria and legal flexibility in order to secure third party financing for the EIP on workable terms for the City; and WHEREAS, to facilitate the financial strategy of the Program, the City Council now desires to further amend the Report (1) to clarify the City's right of access to the project, (ii) to clarify the City's right to inspect property owners' books and records, (i1i) to require certain annual certification from property owners, (iv) to require that property owners maintain property insurance covering the EIP improvement and provide evidence of such insurance prior to entering into the EIP Contract, (v) to require a minimum value -to -lien ratio, (vi) to require a nexus between the repayment term and the reasonably expected useful life expectancy of the EIP improvements, and (vii) to make other changes that the Finance Director of the City or the City Manager determines are necessary for implementation of financial strategy of the Program, as set forth in the Report. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The City Council hereby directs the Finance Director to prepare and file at or before the time of the public hearing described in Section 2 hereof with the City Council proposed amendments to the Report as described in the Recitals hereto. Section 2. The City Council hereby calls a public hearing to be held on Thursday, January 14, 2010, at 4:00 p.m., or as soon thereafter as feasible, in the Council Chambers, 73-510 Fred Waring Drive, Palm Desert, California, on the proposed amendments to the Report. At the public hearing all interested persons may appear and hear and be heard and object to or inquire about the proposed amendments to the Report. [The remainder of this page is intentionally left blank.] 2 P6401.1043\ 1189514 2 RESOLUTION NO. 09-62 A Section 3. The City Clerk is hereby directed to provide notice of the public hearing by publishing this Resolution once a week for two weeks, pursuant to Section 6066 of the California Government Code, in the Desert Sun and the first publication shall not occur later than 20 days before the date of such hearing. PASSED, APPROVED AND ADOPTED this 10th day of December 2009, by the following vote to wit: AYES: BENSON, FERGUSON, KELLY, SPIEGEL, and FINERTY NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: ,.mot RACH LLE D. KLASS , CITY CLLER)C CITY OF PALM DESERT, CALIFORNIA 3 INDY FI.!ER Y. MAYO