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Home My WebLink AboutCC RES 2011-9RESOLUTION NO. 2011-9 :A RESOLUTION OF THE CITY COUNCIL OF THE CITY Oh PAI"\1 DESE:R I I)l ('I.ARING ITS INTENTON "I'O AMEND ENER(;l INDEPENDENCE PROGRAM REPORT AND :AD\IINIS I RA I IN 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 IIigh\\ays Code (the ";Act"), the City Council established its Energy Independence Program (the -Program or "I.IP') to assist property owners \vith the cost of installing distributed generation renew able energ\ sources OF null\In,1 enerp efficient Improvements that are permanently fixed to them propert\ : and WHEREAS, in connection with the Program and as required by the Act, the Director of the C'ity'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 \\ ithin \\ hich the Program is proposed to be offered, (b) a draft application for participation in the Program. (e) a draft contract (the "Contract") specifying the terms and conditions that would be agreed to by a property owner and the C It} 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 aguregate 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, (t) 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 lW HERE:AS. 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 -1- RESOLUTION NO. 2011-9 Prouranl or any of its particulars, including without limitation amendments (i) to require documentation of consent by a pree\Istin`i lender for any Program loan that.is S30.000 or more. 11) lU establI,II I00.t)OU a", the ilia\[fulfill alnount of any Program loan, and (III) to require fifty percent of funds a\ al fable tut Program lodns to be reser\cd for encrg\ clficienc\ upgrades and retrofits: and WHEREAS, on January 14. 2010. the City Council approved amendments to the Report follo\win`� 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. (Ili) to require certain annual certification from property owners, (iv) to rc.11llre that property o\\ hers maintain propert\ IIIsUrallcC covering the EIP improvement and pro\ ide e\ Idcnec of such Insurance prior to entering into the L:1P Contract, (v) to require a Illllllfllllill \a1ue-to-hen ratio, and (vi) to require a nexus between the repayment term and the reasonably expected useful life expectancy of the E1P improvements; and WHEREAS, Assembly Bill No. 44. Chapter 564 of Statutes of 2010 ("AB 44"), effective January I, 2011. added Section 5898.15 to the California Streets and Highways Code. \\ hleh pro\ ides that the City shall not permit a property owner to participate in EIP on or after .lanuar\ I. 2011 11` the owner's participation would result in the total amount of any annual propert.\ taxes and assessments exceeding 5 percent of the property's market value, as determined at the time of appro\ al of the 0\\ ner's contractual assessment; and WHEREAS. the Office of Energy Management has already implemented the requirements of Section 5898.15 of the California Streets and Iighways Code with respect to any property owners applying for EIP financing on or after January 1, 201 1; and WHEREAS, AS, AB 44 also added Section 5898.23 to the California Streets and highways code. \\ hieh provide that the report required pursuant to Streets and I lighways Code Section .ti98.22 in order to establish a contactual 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 A13 44, the City Council has determined that the best interests of the community and the EIP would he 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 \\ HI:IRLAS. the ('It\ Council no\\ desires to further amend the Report to expressly state the requirement imposed b\ Streets and 1 Ilgh\\ ays Code Section 5898.15 and to set forth the method for \ erllving compliance \\ ith such requirement. -2- RESOI.t TIO\ NO. 2011-9 \Oil" THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DI'."I'F:RfII\ES, RESOLVES, :AND ORDERS AS FOLLOWS: Section 1. The Cit\ Council hereby directs the Redevelopment Manager to prepare and file at or before the time of the public heariru. 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 March 24, 2011 at 4:00 p.m., or as soon thereafter as feasible, in the Council Chambers. 73-510 Fred Waring [)rig e. 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. 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 ('alifbrnia 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 24th day of February, 2011, by the 10110\\ In.e \ ote: FI\FRT , II:1R\IK, KROO\E\, SPIEGEL, and BENSON NOES: NONE \BSFNNT: NONE \I3S"I AIN: NONE. ATTEST: LS"l': Rachelle D. Klassen. (It`'-C Ierk City oI. Palm 1)escrt, California M. Benson, ayor -3-