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HomeMy WebLinkAboutCC RES 2011-25RESOLUTION NO. 2011- 25 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 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, on January 14, 2010, 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 clarify the City's right of access to the project, (ii) to clarify the City's right to inspect property owners' books and records, (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 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 provide for the form of a notice required by Section 5898.24(d) of the Act (as amended by AB 474, adopted October 11, 2009 and effective January 1, 2010), for recordation in the Office of the Recorder of the County of Riverside concurrently with the creation of each new contractual assessment; and WHEREAS, Assembly Bill No. 44, Chapter 564 of Statutes of 2010 ("AB 44"), effective January 1, 2011, added Section 5898.15 to the California Streets and -1- 1'6401-0001\1337658v 1.doc RESOLUTION NO. 2011- 25 Highways Code, which provides that the City shall not permit a property owner to participate in the EIP if the owner's participation would result in the total amount of any annual property taxes and assessments exceeding 5 percent of the property's market value, as determined at the time of approval of the owner's contractual assessment on or after January 1, 2011; and WHEREAS, the Office of Energy Management has already implemented the requirements of Section 5898.15 of the California Streets and Highways Code with respect to any property owners applying for EIP financing on or after January 1, 2011; and WHEREAS, AB 44 also added Section 5898.23 to the California Streets and Highways Code, which provides that the report required pursuant to Streets and Highways Code Section 5898.22 in order to establish a contractual assessment program under the Act shall include safeguards that will be used to ensure that the requirements of Section 5898.15 are met; and WHEREAS, although the Report for the EIP was adopted prior to the adoption and effectiveness of AB 44, the City Council has determined that the best interests of the community and the EIP would be served by amending the Report to expressly state the requirement imposed by Streets and Highways Code Section 5898.15 and to set forth the method for verifying compliance with such requirement; and WHEREAS, on February 24, 2011, the City Council adopted its Resolution No. 2011-9 declaring its intention to further amend the Report and directing the Redevelopment Manager of the City (the "Redevelopment Manager") to prepare amendments to the Report to expressly state the requirement imposed by Streets and Highways Code Section 5898.15 and to set forth the method for verifying compliance with such requirement; and WHEREAS, the Redevelopment Manager has filed the proposed amendments to the Report, as described in Resolution No. 2011-9, with the City Clerk; and WHEREAS, Resolution No. 2011-9 set the time and place for a hearing on the proposed amendments to the Report; and WHEREAS, on March 24, 2011, 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. -2- G Vrda'Martin Alvarez\2011\Statf Reports\Reso Approving Amndmnts - EIP Report (AB 44) docx RESOLUTION NO. 2011- 25 Section 2. The City Council declares that the amendments to the Report as filed are hereby approved. PASSED, APPROVED AND ADOPTED this 24th day of March 2011, by the following vote, to wit: AYES: FINERTY, HARNIK, KROONEN, SPIEGEL, and BENSON NOES: NONE ABSENT: NONE ABSTAIN: NONE ,( J,an M. Benson, yor ATTEST: Rachelle D. Klassen, Cify Clerk City of Palm Desert, California -3- G \rda\Marlin Alvarez\20111Staff Reports \Reso Approving Amndmnls - EIP Report (AB 44) docx