HomeMy WebLinkAboutRES. No. 08-75 RESOLUTION NO. 08-75
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM DESERT, CALIFORNIA, DECLARING
ITS INTENTON TO FINANCE DISTRIBUTED
GENERATION RENEWABLE ENERGY SOURCES AND
ENERGY EFFICIENCY IMPROVEMENTS THROUGH
THE USE OF CONTRACTUAL ASSESSMENTS
PURSUANT TO CHAPTER 29 OF PART 3 OF DIVISION 7
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 ("Chapter 29"), the City Council proposes to establish a contractual assessment
program 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;
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 finds and declares all of the following:
A. Energy conservation efforts, including the promotion of energy efficiency
improvements to residential, commercial, industrial, or other real property, are necessary to
address the issue of global climate change.
B. The upfront cost of making residential, commercial, industrial, or other real
property more energy efficient prevents many property owners from making those
improvements. To nnake those improvements more affordable and to promote the installation of
those improvements, the Legislature has authorized an alternative procedure pursuant to Chapter
29 for authorizing assessments to finance the cost of energy efficiency improvements.
C. A public purpose will be served by a contractual assessment program whereby the
City Council is authorized to finance the installation of distributed generation renewable energy
sources and energy efficiency improvements that are permanently fixed to residential
commercial, industrial, or other real property.
Section 2. The City Council hereby determines that it would be convenient,
advantageous and in the public interest to designate the entire City as an area within which
authorized City officials and property owners may enter into contractual assessments pursuant to
Chapter 29 to finance the installation of distributed generation renewable energy sources or
energy efficiency improvements that are permanently fixed to real property.
Section 3. 1'he City Council hereby declares that it proposes to make contractual
assessment financing available to the owners of property in the City to finance the installation of
distributed generation renewable energy sources or energy efficiency improvements that are
permanently fixed to real property.
l
RESOLUTION NO. 08-75
Section 4. The Director of the City's Office of Energy Management (the "Authorized
Officer") shall prepare, as part of the report required in Section 7 of this Resolution, and update,
as the Authorized Officer deems necessary, a list of the distributed generation renewable energy
sources or energy efficiency improvements that may be financed through the City's contractual
assessment financing program. The types of distributed generation renewable energy sources or
energy efficiency improvements eligible for financing through contractual assessments include,
but are not limited to, high efficiency air conditioning and ventilation systems, high performance
windows, high efficiency pool equipment, high efficiency water heating equipment, photovoltaic
and thermal solar energy systems, zoning control and energy management control systems, high
efficiency irrigation pumps and controls, and natural gas fuel cells, wind and geothermal energy
systems, wall, ceiling and roof insulation upgrades.
Section 5. The area within which contractual assessments may be entered into
pursuant to Chapter 29 is the area within the City limits.
Section 6. The proposed arrangements for financing the contractual assessment
financing program are briefly described as follows: The City may issue bonds pursuant to
Chapter 29,the principal and interest of which would be repaid by contractual assessments.
Alternatively, the City may advance its own funds to finance work to be repaid through
contractual assessments, and may from time to time sell bonds, notes, certificates of participation
or other forms of indebtedness to reimburse itself for such advances. The proposed financing
arrangements may include the lease-purchase of public facilities by the City pursuant to a lease
or other contractual arrangement with a public financing authority or non profit entity or other
financing elements as may be determined necessary or useful to the financing of the contractual
assessment program.
In the event improvement bonds will be issued pursuant to Streets and Highways Code
Section 5898.28 to represent assessments, all of the following will apply:
(a) Division 10 (commencing with Section 8500) of the Streets and Highways
Code ("Division 10") shall apply to any bonds issued pursuant to Section
5898.28, insofar as that division is not in conflict with Chapter 29.
(b) Provision is hereby made for the issuance of improvement bonds, in one
or more series;
(c) Notice is hereby given that serial bonds or term bonds or both to represent
unpaid assessments, and to bear interest at the rate of not to exceed 7%
percent per year, or such other amount authorized by law, payable
semiannually, shall be issued hereunder in one or more series in the
manner provided by the Division 10 (to the extent not in conflict with
Chapter 29), and the last installment of bonds shall mature a maximum of
15 years from the second day of September next succeeding 12 months
from their date.
2
RESOLUTION NO. 08-75
(d) The City Council hereby determines and declares that the City will not
obligate itself to advance available funds from the City treasury to cure
any deficiency which may occur in the bond redemption fund.
(e) The City Council hereby determines that the principal amount of bonds
maturing or becoming subject to mandatory prior redemption each year
shall be other than an amount equal to an even annual proportion of the
aggregate principal amount of the bonds, and the amount of principal
maturing or becoming subject to mandatory prior redemption in each year
plus the amount of interest payable in that year shall be an aggregate
amount that is substantially equal each year, except for the moneys falling
due on the first maturity or mandatory prior redemption date of the bonds
which shall be adjusted to reflect the amount of interest earned from the
date when the bonds bear interest to the date when the first interest is
payable on the bonds.
(� With respect to the procedures for collection of assessments and the
advance retirement of bonds, the City Council proposes to proceed under
the provisions of Part 11.1 of Division 10 (commencing with Section 8670
of the Streets and Highways Code).
Section 7. The City Council hereby directs the Authorized Officer to prepare and file
with the City Council a report pursuant to Section 5898.22 of the California Streets and
Highways Code at or before the time of the public hearing described in Section 8 hereof(the
"Report"). The Report shall contain all of the following:
(a) A map showing the boundaries of the territory within which contractual
assessments are proposed to be offered.
(b) A draft contract specifying the terms and conditions that would be agreed
to be a property owner within the contractual assessment area and the
City.
(c) A statement of City policies concerning contractual assessments including
all of the following:
(i) Identif cation of types of facilities, distributed generation
renewable energy sources, or energy efficiency improvements
that may be financed through the use of contractual
assessments;
(ii) Identification of a city official authorized to enter into
contractual assessments on behalf of the City,
(iii) A maximum aggregate dollar amount of contractual
asscssments; and
3
RESOLUTION NO. 08-75
(iv) 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.
(d) A plan for raising a capital amount required to pay for work performed
pursuant to contractual assessments. The plan may include amounts to be
advanced by the City through funds available to it from any source. The
plan may include the sale of a bond or bonds or other financing
relationship pursuant to Streets and Highways Code Section 5898.28. The
plan shall include a statement of or method for determining the interest
rate and time period during which contracting property owners would pay
any assessment. The plan shall provide for any reserve fund or funds.
The plan shall provide for 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.
Section 8. The City Council hereby calls a public hearing to be held on August 28,
2008, at 4:OOpm, or as soon thereafter as feasible, in the Council Chamber, 73-510 Fred Waring
Drive, Palm Desert, California, on the proposed Report and the contractual assessment financing
program. At the public hearing all interested persons may appear and hear and be heard and
object to or inquire about the proposed contractual assessment financing program or any of its
particulars.
Section 9. 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.
Section 10. The assessments levied pursuant to Chapter 29, and the interest and any
penalties thereon, shall constitute a lien against the lots and parcels of land on which they are
made, until they are paid. The assessments shall be collected in the same manner and at the same
time as the general taxes of the City on real property are payable and shall be subject to the same
penalties, remedies and lien priorities in the event of delinquency and default.
Section 11. The City Council hereby directs the Authorized Officer to enter into
consultations with the County of Riverside Auditor-Controller's office in order to reach
agreement with the County regarding the collection of the contractual assessments by the County
on the tax roll.
4
RESOLUTION NO. 08-75
Section 12. This Resolution shall not become effective unless and until Assembly Bill
811, introduced during the 2007-08 Regular Session of the California Legislature, becomes law.
PASSED, APPROVED, AND ADOPTED by the Palm Desert City Council at its regular
meeting held this day of , 20_, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JEAN M. BENSON, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
5