HomeMy WebLinkAboutRes. No. 09-52 - Amndmnts to Energy Indpendce Prgrm (EIP) Guidelines _ __._ _._____ --_
CITYCOUN�AETIO ' �-Adopted Res. 09 52, with the Guidelines
APPROVED_��.._.���D amended to elimina[e the requirement that
RECEIVED Q�'j'$$1� Solar CSI, SGIP, and any applicable Set to Save
bGa � Rebates be deducted from the contractual
MEETI G DATE ` assessmemt a�ounts on a six-month trail basis.
AYES: �' OF PALM DESERT
NOES:
ABSENT: OFFICE OF ENERGY MANAGEMENT
ABSTAIN:
VERIFIED BY: STAFF REPORT
Original on File with City erk's Office
REQUEST: Adopt Resolution of Adoption No. 0_9_52 Authorizing Amendments to the
Energy Independence Program (EIP) Administrative Guidelines.
SUBMITTED BY: Patrick Conlon, Director of Office of Energy Management
DATE: June 25, 2009
CONTENTS: 1) Resolution of Adoption No. 09-52
2) Revised EIP Administrative Guidelines
3) Consent Agreement
Recommendation:
By Minute Motion, Adopt Resolution of Adoption No.o9-52 Authorizing Amendments to the
Energy Independence Program (EIP) Administrative Guidelines.
Executive Summary:
The adoption of this Resolution will authorize Staff to implement the following 5 amendments
to the EIP Administrative Guidelines:
1 . A Consent Agreement signed by the property owner's bank or lending agency will
be required on all EIP contractual assessment $30,000 and higher;
2. The maximum EIP contractual assessment will be $100,000 per parcel;
3. The solar CSI rebate, SGIP, and any applicable Set To Save rebates will be
deducted from the contractual assessment amount;
4. 50% of EIP funds available for contractual assessments will be reserved for energy
efficiency improvements.
5. EIP applicant will be responsible for paying the title report and title insurance fees.
These revisions to the EIP Administrative Guidelines have been reviewed by the Finance
Committee and have been recommended to the City Council for approval.
Discussion:
As the City has gained experience through Phases 1 and 2 of the EIP, it has become
apparent that 5 changes are needed to make this program sustainable.
The first change, the one with the most significant impact on the EIP applicants, is a
new requirement that all contractual assessments for $30,000 and higher have a "Consent
Agreement" signed by the property owner and their bank or lending agency that holds the First
Trust Deed on the property. The Consent Agreement stipulates that the lender consents to
EIP Administrative Guidelines Amendments
June 25, 2009
Page 2 of 2
placing an assessment on the property and that this lien is superior to the existing Deed of
Trust. Once signed and notarized, the Consent Agreement will be recorded on the property.
Prior to this requirement, the EIP contract documents only required the owner to certify
that they had reviewed their existing Loan Contract, and, if required, obtained permission from
the owner's lender to enter into the EIP contractual assessment. Many mortgages and loan
contracts have language which prohibits a homeowner from voluntarily placing additional liens
on the owner's properry.
It is unclear what effect this new requirement for a Consent Agreement will have on the
EIP applicants. For example, the average EIP contractual assessment for a photovoltaic solar
system has been approximately $35,000. If the property owner cannot get lender approval with
a Consent Agreement, the property owner could apply for an EIP contractual assessment
under the $30,000 threshold, and thus be exempt from the Consent Agreement requirement.
The second change places a $100,000 maximum cap per parcel on EIP contractual
assessments. This change will allow EIP funding to serve more applicants.
The third change is reducing the EIP contractual assessment amount by the rebates
that would be paid to the property owner from the state of California Solar Initiative Expected
Performance Based Buy Down, Self-Generation Incentive Program (SGIP), or any Set To
Save incentives. The intent of this change is to stretch our available EIP funds further by
reducing the contractual assessment amount. In many cases, the solar contractor or HVAC
contractor can be assigned the rebate, which would normally be paid to the owner, and would
result in a lower assessment and lower annual cost to the property owner.
The fourth change reserves 50% of the program funds for energy efficiency
improvements. We have learned in Phases 1 and 2 that photovoltaic solar system projects
used a disproportionate share of the available funds. Over 74% of EIP Phase 1 and 2 funds
went to photovoltaic projects. Energy efficiency improvements are more cost-effective to the
property owner than a photovoltaic solar system. Therefore, staff recommends a change to the
EIP Administrative Guidelines that sets aside 50% of the available funding and earmarks those
funds for EIP energy efficiency improvements.
For the fifth change, the EIP applicant shall be responsible for the title report and title
insurance fees. Currently the title package cost is $360 per application and the City of Palm
Desert pays a portion ($160) of this expense. The applicant pays only $200. This change
would require the applicant to pay the full cost of the title package.
Please contact Patrick Conlon, Director of Office of Energy Management with any questions.
Submitted by: Approval:
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P rick Conlon J n ohlmuth
Director of Office of Energy Management ty Manager
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RESOLUTION NO. 09-52
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") 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 (the "Director") to prepaze 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 ar City
Manager determines are necessary for implementation of the Program; and
WHEREAS,the Director has filed the proposed amendments to the Report with the
City Clerk; and
WHEREAS, Resolution No. 09-34 set the time and place for a hearing on the
proposed amendments to the Report; and
WHEREAS, on June 25, 2009, 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:
Resolution No. 09-52
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.
PASSED, APPROVED AND ADOPTED this day of 20 b the
following vote: —� y
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
��� ������
Energy Independence Program Re ort and
. . . , p
Administrative Guidelines
Outline
/ntroduction
Goa/s
Background
Benefits
Program Administration
Program Requirements
Eligib/e Property Owners
Eligib/e Properties
Consent Agreement
Eligible Equipment
Eligible Costs
Tracks for Participation
The Efificiency Track
The So/ar Track
The Custom Measure Track
Financia/Strategy
Energy Surveys and So/ar Site Checks
Energy/ndependence Program Parameters
Minimum Loan Amount
Maximum Loan Amount
Maximum Portfolio
Assignment of Rebates and/ncentives
Duration
lnterest Rate
Administrative Fees
Changes to Report
Appendices
A. Equipment List
B. Map of Program Area
C. Draft Program Application
D. Draft Loan Contract
E. Summary of Loan Process
Revised June 25,2009
1
Introduction
This Report has been prepared pursuant to Section 5898.22 of the California Streets and
Highways Code in connection with the establishment of the City of Palm Desert Energy
Independence Program ("EIP"). This is the guiding document for EIP and fulfills the Section
5898.22 requirements that this report contain:
1. A man showing the boundaries of the territory within which contractual assessments are
proposed. (See Appendix B.)
2. A draft contract between a property owner and the City. (See Appendix D.)
3. Cit� olicies concerning contractual assessments.
4. A plan for raisin�a capital amount to pay for the work performed.
The Energy Independence Program described herein is designed to help Palm Desert property
owners save energy and gain independence from the scarcity of sources of energy that are
compromising the California power grid, threatening national security, and endangering the
global climate.
The Energy/ndependence Program helps Pa/m Desert property owners
save energy and money while doing right for the environment.
Goals
EIP will carry out the City's mission of helping property owners of improved real property make
principled investments in the long-term health of the local, state, and national economy and
global environment.
EIP aims to provide multiple benefits. By enabling property owners to take responsible energy
actions, the program seeks to cut their utility bills. At the same time it shores up the local
economy, the California power grid, and national and global energy interests, and makes it
possible for Palm Desert to fulfill energy conservation and climate protection commitments.
The City has established a goal to reduce electric and natural gas energy consumption by 30%.
The City welcomes innovative energy solutions that will contribute to this goal. The City intends
to initially fund EIP with $2.5 million for energy reduction investments that might not have
otherwise been possible, with a maximum aggregate amount of$25 million.
Backaround
As a result of Palm Desert's authorship and advocacy of what became Assembly Bill 811, the
bill was approved by the California Legislature, signed into law by the Governor on July 21,
2008 and became immediately effective as an urgency measure. Under this bill, the California
Legislature has declared that a public purpose will be served by a contractual assessment
program that provides the local government with the authority to finance the installation of
distributed generation renewable energy sources—such as solaz-- and energy efficiency
improvements that are affixed to residential, commercial, industrial, or other real property
(collectively known as "Energy Improvements").
2
To make Energy Improvements more affordable and to promote their installation, AB 811
provides procedures for authorizing voluntary assessments to finance the cost of these
improvements. The Energy Independence Program works with the free and willing consent of
owners of the property on which the Energy Improvements are to be made.
The City will make loans ("EIP Loans")to property owners within the City to finance the
installation of Energy Improvements pursuant to contractual assessment agreements. Property
owners in the City will repay EIP Loans through an assessment levied against their property
which is payable in semi-annual installments on property taaL bills.
Proaram Benefits
From the City's�ers ective, the Energy Independence Program will be a key element in
achieving the City's 30% energy reduction goals. EIP provides a significant channel for
funneling more resources into the shift to greater efficiency and renewable energy, while
securing the energy future. For example, $25 million of energy efficiency and renewable energy
investments has the potential to provide over$50 million in direct consumer benefits over time
while contributing to regional, state, national and international goals.
For�roperty owners, EIP offers:
■ A no-money-down means of financing Energy Improvements.
■ Fixed-rate loans.
■ Financing without requiring a property appraisal.
■ A stream-lined loan process.
Pro�ram Administration
EIP will be administered by the City's Office of Energy Management ("OEM"), which is headed
by the Director of the Office of Energy Management (the "Director") and staffed by EIP
professionals. EIP staff will be responsible for:
■ Community outreach
• Energy surveys
■ Solar site checks
■ Advising property owners
■ Processing loan applications
■ Managing and tracking funds available for EIP Loans
■ Monitoring individual and collective energy conservation
■ Integrating EIP with Palm Desert's successful Set to Save rebate program.
The intent of these services is to provide a"turn-key" service for Palm Desert property owners
who would otherwise be unable or unwilling to finance efficiency measures and renewable
energy options. Their participation is critical to the City in achieving its 30% energy reduction
goals and for the State to meet its greenhouse gas commitments to reduce carbon emissions to
19901evels by 2020.
3
Program Requirements
Elipible Pronertv Owners
All owners of improved real property are eligible for the Energy Independence Program. Owners
may be individuals, associations, business entities, cooperatives, and virtually any owner which
pays real property taa�es.
A property owner needs to be current in the payment of property ta�ces and the property must be
free and clear of all liens, excluding customary mortgage liens and assessment liens. Property
owners are eligible to make multiple applications for additional Energy Improvements with the
maximum aggregate of these applications not to exceed $100,000 per parcel.
Eliaible Proqerties
EIP Loans are available to all owners of improved real properties in the City including, but not
limited to, residential, commercial, and industrial properties. Unfortunately at this time, EIP
Loans are not available for properties that do not pay property taxes, such as governmental
entities and certain non-profit corporations.
Consent Aareement
All EIP loans $30,000 or more shall have a Consent Agreement, signed by each private
institution or individual which is the beneficiary and holder of a pre-existing Deed of Trust,
authorizing the placement of the Notice of Assessment on the property.
Elis�ible Eauipment
EIP affords property owners in Palm Desert the opportunity to take advantage of a wide range of
energy-savings measures, consistent with the following provisions:
1. EIP provides financing for Energy Improvements that are permanently affixed to
property.
2. EIP Loans are specifically made available for Energy Improvements. Property owners
that elect to engage in broader retrofit projects—such as home or business remodeling—
will only be provided EIP Loans for that portion of the costs used to retrofit existing
structures with Energy Improvements. (This is discussed further in Eligible Costs.)
3. EIP Loans are intended for retrofit activities to replace outdated equipment and to install
new equipment that takes energy off the grid. However, EIP Loans are also made
available for purchasers of new homes and businesses that wish to add Energy
Improvements after the property owner takes title to the property.
4. EIP Loans are made available for the following types of improvements that are presented
in greater detail in Appendix A:
4
a. Efficiency Measures. EIP sunnorts a wide ran�e of efficiencv measures as
presented m Annendix A EIP also sunnorts Energy Improvements that are
eli�ible for Set to Save program rebates
b. Solar Systems. EIP Loans will be available for a range of solar systems, from
photovoltaic to solar thermal.
c. Custom Measures. Upon review and approval by the Office of Energy
Management, EIP Loans are made available for emerging technologies for Energy
Improvements that provide new ways to save or generate energy and that will be
evaluated on a case-by-case basis.
5. EIP is flexible and provides three "Tracks" for participation that focus on Efficiency
Measures, Solar Systems, and Custom Measures. See "Tracks for Participation"below
for more information.
6. EIP Loans are also made available for combinations of Energy Improvements such as
bundling energy efficiency and renewable energy measures. For instance, a property
owner may choose to replace both an aging and inefficient air conditioner and install a
solar system.
Eli�ible Costs
Eligible costs of the Energy Improvements include the cost of equipment and installation.
Installation costs may include, but are not limited to, labor, drafting, engineering, permit fees,
and inspection charges.
The installation of Energy Improvements can be completed by a qualified contractor of the
property owner's choice. Eligible costs do not include labor costs for property owners that elect
to do the work themselves.
In each case, the Office of Energy Management will determine whether the estimated equipment
and installation costs are reasonable. The OEM will evaluate market conditions and may require
additional bids to determine whether costs are reasonable. While the property owner will be able
to select the bidder of his or her choice, the amount available for the EIP Loan may be limited to
an amount deemed reasonable by the OEM, and may be reviewed by the City Manager and the
Palm Desert City Council.
Tracks for Participation
There are three ways far property owners to participate in the Program. Eligible equipment and
standards are presented in greater detail in Appendix A:
The Efficiencv Track
The Efficiency Track covers a wide range of energy efficiency fixtures, from windows and
doors, attic insulation that are Energy Star rated. Packaged and central air conditioning systems
5
must meet the minimum efficiencies specified in the Set to Save program. Given Palm Desert's
preponderance of pools, specific efficiency requirements are presented for pool pumps and
heaters. All other efficiency measures must go through the Custom Measure Track. .
The Solar Svstem Track
The Solar System Track makes available Energy Independence Program loans for Energy
Improvements. The Solar Track also helps property owners with solar electric and solar thermal
investments by offering optional, no-cost solar site checks and consultation by EIP experts.
Custom Measure Track
All other proposed measures follow the Custom Measure Track. These measures may include
renewable energy sources (other than solar), such as wind, geothermal, and potentially solar-
hydrogen fuel cells, as well as more complex and innovative energy management solutions and
emerging technologies. The developments of technologies are encouraged by EIP as a means of
diversifying the City's energy sources.
Applicants for the Custom Measure Track should consult the OEM to determine eligibility. In
some cases, the findings of national energy laboratories and nationally accredited research and
testing centers will be required for EIP approval. In all cases, the City reserves the right to
decline funding of a custom measure.
Energy Surveys and Solar Site Checks
The Office of Energy Management offers energy surveys at owners' properties. During these
on-site surveys, a trained Program expert will review as appropriate, energy efficiency, energy
management, and renewable energy opportunities and EIP financial details with the property
owner. The property owner will then be advised as to the potential Energy Improvements, their
estimated costs and savings through EIP participation.
Energy surveys are highly recommended but not required.
The Financial Strategy
The City will create the Energy Independence Program Fund which may accept funds from any
available source and which may disburse such funds for the purpose of funding Energy
Improvements. Loan repayments—through the property assessment mechanism—will be made
to the Energy Loan Fund.
The City initially will seed the Energy Loan Fund with $2.5 million from the General Fund.
Thereafter, the Energy Loan Fund may be funded from a number of other potential sources, and
combinations of sources, which may include but are not limited to additional funding from the
General Fund, the issuance of notes, bonds, or agreements with utilities or public or private
lenders or other governmental entities and quasi-governmental entities such as CALPERS.
6
EIP Funds will then be used by the City for additional EIP L,oans and/or to establish a Reserve
Fund or pay administrative costs and/or to reimburse itself for advancing moneys from the
General Fund to the EIP Fund.
At a minimum, $1.25 million of the $2.5 million loan amount will be reserved for EIP Loans for
residential property owners. The Office of Energy Management will report on penetration to the
City Manager and Council on a quarterly basis at a minimum,providing Council with the
information necessary to shift funds as it elects to do so at its sole discretion.
The City may also establish an EIP Reserve Fund if bonds are issued to cover EIP Loan
payments in the event of assessment delinquencies prior to foreclosure and tax sale if deemed
necessary by the City Manager and the City Council.
Energy Independence Program Parameters
Minimum Eneray Loan Amount
The minimum size for an EIP Loan is $5,000.
Maximum Enerqv Loan Amount
The maximum size for an EIP Loan is $100,000. All EIP Loans greater than $60,000 must be
approved by the City Manager.
Maximum Portfolio
The maximum principal amount of the Energy Loans to property owners under the Program is
$25 million. This may be increased by the City Council at its discretion. A minimum of 50% of
the loan funds available shall be set aside and used only for energy efficiency upgrades and
retrofits, as determined by the Office of Energy Management.
Assiqnment of Rebates and Incentives
The amount of an EIP loan will be reduced by an applicable California Solar Initiative Expected
Performance Based Buy-Down rebate, Self-Generation Incentive Program (SGIP) rebate, and
any Set to Save rebates. Such rebates may be assigned to the applicable contractor.
Duration
EIP Loans are made available for up to 20-year terms to accommodate a wide range of efficiency
measures and renewable energy investrnents. The term of the loan is in the discretion of the
property owner in consultation with the Office of Energy Management.
Interest Rate
EIP Loans will be made for the initial $2.5 million an annual interest rate not to exceed 7% for
all loans. Thereafter, the City Council will maintain the discretion to adjust the interest rate up to
7
an amount not to exceed 10%. The Council will determine interest rates so that the Energy Loan
Fund remains financially viable up to the legal limit.
The City will set the interest rate for an EIP Loan at the time that the City and property owner
enter into the contractual assessment agreement.
Administrative Fees
The City of Palm Desert will offer the Energy Independence Program as an additional City
service that will help property owners achieve their energy goals, while helping the City achieve
its energy and climate protection goals. The City of Palm Desert will be responsible for all EIP
marketing and outreach, as well as the duties of the Office of Energy Management.
The City may elect to cover a portion of its costs through the "spread"between its combined
earnings rate, and the EIP Loan issuance rate. Similarly, it may elect to recover EIP costs
through a spread between bond rates and loan rates, or the spread between interest rates of any
financial vehicle. The City will not charge property owners a fixed administrative fee.
Two forms of costs will be the responsibility of the property owner:
1. Title costs—including title insurance—will be paid by the property owner.
2. Assessment collection costs will appear as a line item on property taxes not to exceed $40
per property per year and will be paid by property owner. This cost was determined after
consultation with the County of Riverside Assessor's Office.
Changes to Report
The Director or City Manager may make changes to this Report that the Director or City
Manager reasonably determines are necessary to clarify its provisions. Any changes to this
Report that materially modify the Energy Independence Program shall only be made after
approval by the City Council.
The City Manager or Director may modify from time to time the Equipment List, draft Loan
Contract and draft Application attached hereto as Appendix A, Appendix D and Appendix C,
respectively, as deemed necessary by the City Manager or the Director to effectuate the purposes
of the Program.
8
Appendix A: Equipment List
The Energy Independence Program offers EIP loans for a number of equipment types, including
efficiency measures, solar systems, and other innovative, energy-saving custom measures. In
each case, the use of rebates and tax credits to prepay a portion of the loan is at the discretion of
property owner.
Efficiencv Measures
The Energy Independence Program provides services and loans for a wide range of Energy Star-
rated efficiency measures, including many Set to Save Efficiency Measures for which property
owners can get rebates as well as EIP Loans. Excepting HVAC equipment as noted below,
efficiency measures that are Energy Star rated must meet the Energy Star minimum efficiency
levels.
For all packaged and central air conditioning systems funded in this loan program, the minimum
efficiency levels shall be as required by the current minimum requirements set forth in Set to
Save program.
All other proposed efficiency measures will be considered in the Custom Measure Track.
The City of Palm Desert anticipates that Energy Star requirements will "ratchet up"to greater
efficiency levels over time. Energy Star will also become more inclusive of technologies over
time. Thus the EIP will evolve with Energy Star and the market for energy-efficient
technologies.
The following Energy Star measures—among others—are eligible in the Efficiency Track.
■ Attic and wall insulation
■ Light fixtures (no bulb-only retrofits)
■ Reflective roofs and coatings
■ Windows, doors, and skylights
Pool Equi ment
Given the preponderance of pools in Palm Desert the following prescriptive standards must be
upheld for Efficiency Track funding:
o Pool circulating pumps (must be Variable Flow and/or Multi-speed with
controllers}
o Natural gas pool heaters (must have a thermal efficiency of 84% or greater)
9
Solar Eauipment
Solar Track funding is available for a wide range of solar equipment. EIP Loans will be available
for photovoltaic equipment and installers listed by the California Energy Commission. Solar
thermal equipment must be rated by the Solar Rating Certification Council (SRCC). As with
efficiency measures, the property owner maintains the discretion as to whether to prepay a
portion of the gross loan with any solar rebates and t�credits.
Eligible solar equipment includes:
■ Solar thermal systems (hot water)
■ Photovoltaic systems (electricity)
o Battery back-up systems will be allowed
o Funding for off-grid systems will be allowed
o PV systems can be sized to accommodate plug-in electric vehicles
Custom Measures
The City of Palm Desert encourages innovation in saving energy to meet its energy-savings
goals. Custom Measures will only be funded for EIP Loans if sufficient proof of energy savings
is provided to the Office of Energy Management that the measure will reduce usage by 20%. The
Director reserves the right to defer funding until he deems the evidence sufficient to verify this
performance requirement.
The following types of ineasures—among others—will be considered for EIP Loans through the
Custom Measure Track:
■ Building Energy Management controls
■ HVAC Duct zoning control systems
■ Irrigation pumps and controls
■ Lighting controls
■ Motors and controls
■ Natural gas fuel cells
■ Water heating equipment
o Tank-style
o Tankless
o Central water heating system
As these "Custom Measures" become Energy Star rated they will be included in the Efficiency
Measure Track.
10
RECORDING REQUESTED BY:
City of Palm Desert
PREPARED BY AND WHEN
RECORDED MAIL TO:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
Attn.: Benjamin Druyon
A.P.N:
File No:
CONSENT AGREEMENT
THIS AGREEMENT is made this day of 2009 b
> > Y
and between , a ("Owner") and
� a (`Beneficiary"), and for the benefit of the CITY
OF PALM DESERT, a municipal corporation("Lender").
WITNESSETH
WHEREAS, Owner has executed a deed of trust dated , to Beneficiary, as
trustee and beneficiary thereunder, covering that certain real property described in Exhibit A
attached hereto ("Property"), to secure a promissory note in the sum of$ , and
recorded on as Instrument No. in the Official Records of
Riverside County("Deed of Trust"); and
WHEREAS, Owner has executed, or is about to execute, a loan agreement with the Lender
("Loan Agreement") by which the Lender will make a loan to the Owner in a principal amount
not to exceed $ ("Loan")to finance the purchase and installation of a
certain renewable energy system on the Property in connection with the Lender's Energy
Independence Program, and such Loan will be payable with interest and upon the terms and
conditions described in the Loan Agreement; and
WHEREAS, pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and
Highways Code, the repayment by the Owner of the principal and interest on the Loan will be
paid by a statutory assessment levied against the Property(the "Assessment") notice of which
shall be recorded against the Property in the Official Records of Riverside County, and which
Assessment, together with the interest thereon and any penalties, shall constitute a lien(the
"Lien") on the Property, and which Assessment shall be collected in installments on the property
tax bill pertaining to the Property, and shall be subject to the same penalties, remedies and lien
priorities as for real property ta�ces in the event of non-payment by the Owner; and
P6401-0001\1116812v2.doc
WHEREAS, Lender is willing to make the Loan provided that the Beneficiary consents to the
Loan, the levy of the Assessment against the Property, the imposition of the Lien upon the
Property, and the recordation of the notice of Assessment in the Official Records of Riverside
County and acknowledges that the Lien shall be prior and superior to the lien or charge of the
Deed of Trust.
NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and
other valuable consideration, the receipt and sufficiency of which consideration is hereby
acknowledged, and in order to induce Lender to make the Loan, it is hereby declared, understood
and agreed as follows:
1) That the Lien shall unconditionally be and remain at all times a lien on the
Property prior and superior to the lien or charge of the Deed of Trust.
2) That Lender would not make the Loan without this Agreement.
Beneficiary declares, agrees and acknowledges that:
1. Beneficiary consents to and approves (a) all provisions of the Loan Agreement,
including but not limited to those pertaining to the disbursement of the proceeds of the Loan, and
the Owner's execution of the Loan Agreement, and (b)the levy of the Assessment against the
Property, the imposition of the Lien upon the Property and the recordation of the notice of
Assessment in the Official Records of Riverside County with the effect as to its nature and
priority hereinabove described, and Beneficiary hereby confirms that the Owner's execution of
the Loan Agreement will not constitute a default under the Deed of Trust.
2. Lender in making disbursements pursuant to the Loan Agreement is under no
obligation or duty to Beneficiary, and Lender shall have no responsibility to see to the
application of the proceeds of the Loan by the Owner, or to such other person or persons to
whom Lender disburses such proceeds.
3. Beneficiary understands that in reliance upon, and in consideration of,this
consent, approval and confirmation, the Loan will be made by the Lender to the Owner and, as
part and parcel thereof, specific monetary and other obligations are being and will be entered into
which would not be made or entered into by the Lender or Owner but for and in reliance upon
this consent, approval and confirmation by Beneficiary.
The Beneficiary and Owner agree that:
A. This Agreement shall be binding on and inure to the benefit of the legal
representatives, heirs, successors and assigns of the parties hereto.
B. This Agreement shall be governed by and construed in accordance with the laws
of the State of California.
C. This Agreement may be signed by different parties hereto in counterparts with the
same effect as if the signatures to each counterpart were upon a single instrument, and all
counterparts shall be deemed an original of this Agreement.
2
P6401-OOOIU ll6812v2.doc
D. Each of the parties hereto shall, whenever and as often as they reasonably shall be
requested to do so by the other party, execute, acknowledge and deliver, or cause to be executed,
acknowledged and delivered, any and all such further instruments and documents as may be
reasonably necessary to carry out the intent and purpose of this Agreement, and to do any and all
further acts reasonably necessary to carry out the intent and purpose of this Agreement.
E. In the event any legal action is commenced by any party hereto concerning this
Agreement or the rights and duties hereunder of any party hereto, whether such action be an
action for damages, or for equitable or declaratory relief, the prevailing party in such litigation
shall be entitled to, in addition to all other relief as may be granted by the court, reasonable sums
as and for attorneys' fees in an amount to be set by the court.
F. Each person or entity executing this Agreement on behalf of a party hereto
represents and warrants that such person or entity is duly and validly authorized to do so on
behalf of such party with full right and authority to execute this Agreement and to bind such
party with respect to all of its obligations hereunder.
3
P6401-OOOIU116812v2.doc
BENEFICIARY:
a,
,
By:
Name:
Title
By:
Name:
Title
OWNER:
a
,
By:
Name:
Title
By:
Name:
Title
4
P6401-0001\ll 16812v2.doc
STATE OF ) SS
COUNTY OF �
On , before me,
notary public, personally appeared ' a
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WIT`NESS my hand and official seal.
Signature
My Commission Expires:
This area for official notarial seal.
STATE OF ) SS
COUNTY OF �
On , before me,
notary public, personally appeared ' a
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
My Commission Expires:
This area for official notarial seal.
5
P6401-0001\1116812v2.doc
EXHIBIT A
LEGAL DESCRIPTION
REAL PROPERTY IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE
OF CALIFORNIA, DESCRIBED AS FOLLOWS:
P6401-OOOI\1116812v2.doc
RESOLUTION NO. 09-34
(iv) to make other changes that the Director or City Manager determines are necessary for
implementation of the Program;
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 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.
Sectton 2. The Cit Council hereby calls a ' "" ' " " � (� °
Y �. �=����i��i� :�
���,�,� ��., � .: :.,
=� ��� ��4:�k � a� r as soon thereafter as feasible, in the Council Chamber, 73-510 Fred
Wai-�ng Y�rive;��a m esert, 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
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 21st day of Mav 2009, by the following
vote, to wit:
AYES: BENSON, FERGUSON, FINERTY, KELLY, and SPIEGEL
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
ROBERT A. SPIEGEL, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
2
Martinez, Gloria
From: Moeller, Chariene[CMOELLER@palmspri.gannett.comj
Sent: Friday, May 22, 2009 3:13 PM
To: Martinez, Gloria
Subject: RE: Legai Notice - Res 09-34(PH 06/25/09) -Amnd EIP Admin Guidelines
Ad received and will publish on date(s) requested.
Charlene Moeller
Public Notice Customer Service Rep.
The Desert Sun Newspaper
750 N. Gene Autry Trail, Palm Springs, CA 92262
(760)778-4578, Fax(760) 778-4731
Desert Sun IeqalsCc�thedesertsun.com
&Desert Post Weekly dpwleaalsCa�thedesertsun com
The Coachella Valley's #1 Source in News �Advertising!
Visit us at mydesert.com
Please consider the environment before printing this email
G , . _ ,� ....,., ..,.mu.a �_.,.,.M. �.�ra
m�n... ��n:�� �..���� A. .�,ro ���.�,...��,..,..
From: gmartinez@ci.palm-desert.ca.us [mailto:gmartinez@ci.palm-desert.ca.us]
Sent: Friday, May 22, 2009 3:01 PM
To: tds-legals
Cc:jstanley@ci.palm-desert.ca.us; pconlon@ci.palm-desert.ca.us
Subject: Legal Notice - Res 09-34 (PH 06/25/09) -Amnd EIP Admin Guidelines
PLEASE PUBLISH THE FOLLOWING:
NOTICE lNVITING BIDS
Resolution No. 09-34—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.
TWO TIMES IN THE DESERT SUN
Thursday, May 28, and
Thursday, June 4, 2009
Thank you, Charlene. Have a FANTASTIC weekend!!
�'j?.C�,fl�.r:ot ?'�??a�'T:,�,�
Records Technician
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
(760) 346-0611 Ext. 354
�martinez@ci.palm-desert ca us
1