HomeMy WebLinkAboutCC RES 2010-03RESOLUTION NO. 2010-3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT
APPROVING AMENDMENTS TO THE ENERGY INDEPENDENCE PROGRAM
REPORT AND ADMINISTRATIVE GUIDELINES PREPARED PURSUANT TO
SECTION 5898.22 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE
RECITALS:
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, on August 28, 2008, in connection with the Program and in accordance with
Section 5898.22 of the Act. the City Council approved the Energy Independence Program
Report and Administrative Guidelines (the "Report"); and
WHEREAS, on May 21, 2009, the City Council adopted its Resolution No. 09-34
declaring its intention to amend the Report and directing the Director of the City's Office of
Energy Management to prepare amendments to the Report (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, (iii) to require fifty percent of funds
available for Program loans to be reserved for energy efficiency upgrades and retrofits, and (iv) to
make other changes that the Director or City Manager determines are necessary for
implementation of the Program; and
WHEREAS, the Director of the City's Office of Energy Management filed the proposed
amendments to the Report with the City Clerk; 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 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 financing on
workable terms from third parties;
WHEREAS, on December 10, 2009, the City Council adopted its Resolution No. 09-62
declaring its intention to further amend the Report and directing the Finance Director of the City
(the "Finance Director") to prepare amendments to the Report (i) 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,
RESOLUTION NO. 2010-3
(iii) 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 assessment contract (each, a "Loan Agreement"), (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 the financial strategy of the Program; and
WHEREAS. on October 11. 2009. AB 474 ("AB 474"), which amends the Act. was enacted
with an effective date of January 1, 2010; and
WHEREAS, commencing January 1, 2010 and with respect to each EIP loan, Section
5898.24(d) of the Act (as amended by AB 474) requires the City Council to cause to be recorded a
new notice entitled "Payment of Contractual Assessment Required" in the office of the Recorder of
the County of Riverside, concurrently with the creation of the contractual assessment (i.e.,
execution of the respective Loan Agreement) and with recordation of the Notice of Assessment
recorded pursuant to California Streets and Highways Code Section 3114; and
WHEREAS. as authorized in Resolution No. 09-62. among the proposed amendments to
the Report. the Finance Director has caused to be prepared a form of notice entitled "Payment of
Contractual Assessment Required" that meets the requirements of Section 5898.24(d) of the Act
(as amended by AB 474); and
WHEREAS, the Finance Director has filed the proposed amendments to the Report, listed
in Resolution No. 09-62 and including the new notice required by AB 474, with the City Clerk; and
WHEREAS', Resolution No. 09-62 set the time and place for a hearing on the proposed
amendments to the Report; and
WHEREAS, on January 14, 2010, following notice duly given in accordance with law, the
City Council held 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 Report; and
WHEREAS, the City Council, having considered all oral and written testimony, desires to
approve the amendments to the Report;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE
CITY COUNCIL OF THE CITY OF PALM DESERT AS FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2. The City Council declares that the amendments to the Report as filed are
hereby approved.
Section 3. Upon the execution of any Loan Agreement by all parties thereto
pursuant to the Program and concurrently with recordation of the Notice of Assessment recorded
pursuant to California Streets and Highways Code Section 3114, the City Clerk is hereby
authorized to sign, and hereby directed to cause to be recorded in the office of the Recorder of
the County of Riverside, a notice entitled "Payment of Contractual Assessment Required" in
substantially the form on file with the City Clerk and in form and content approved by the Finance
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RESOLUTION NO. 2010-3
Director, as provided by Section 5898.24(d) of the California Streets and Highways Code. In the
event the City Clerk is unavailable to sign any such notice at the time required, the notice may be
signed by a duly appointed deputy clerk.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Palm Desert,
California, this 14th day of January 2010. by the following vote to wit:
AYES BENSON, FERGUSON, KELLY, SPIEGEL, and FINERTY
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
CINb FINER Y, MAYOR
ATTEST:
CHELLE 1. SS '�t, ITY CLER
CITY OF PALM DESERT. CAI.iFORNIA
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