HomeMy WebLinkAboutResolution 2011-25 Amend Energy Independence Program (EIP) Report and Administrative GuidelinesCITY OF PALM DESERT
STAFF REPORT
REQUEST: ADOPT CITY COUNCIL RESOLUTION 2011-25
APPROVING AMENDMENTS TO THE ENERGY
INDEPENDENCE PROGRAM (EIP) REPORT AND
ADMINISTRATIVE GUIDELINES
SUBMITTED BY: Martin Alvarez, Redevelopment Manager
DATE: March 24, 2011
CONTENTS: Proposed Amendments to EIP Report
Resolution No. 2011- 25
Recommendation
Waive further reading and adopt:
Resolution 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.
Background
On July 21, 2008, the Governor signed into law AB 811, which amended Chapter 29 of
Part 3 of Division 7 of the California Streets and Highways Code (as amended, the
"Act"). The bill authorized cities and counties to establish a program to enter into
contractual assessment agreements with property owners to finance the installation of
distributed generation renewable energy sources or energy efficiency improvements
that are permanently fixed to real property.
On August 28, 2008, the City Council approved Resolution No. 08-89, which
established the City's Energy Independence Program Report and Administrative
Guidelines (the "EIP Report") prepared pursuant to Section 5898.22 of the California
Streets and Highways Code. The City Council has made amendments to the EIP Report
twice since its adoption, June 25, 2009 and January 14, 2010.
On February 24, 2011, the City Council adopted Resolution No. 2011-9 declaring its
intent to amend the EIP Report to address the new requirements of AB 44 (discussed
below) and ordering a public hearing to be held on March 24, 2011. In accordance with
applicable law, the City Clerk provided notice of the public hearing by publishing
Resolution No. 2011-9 once a week for two weeks in The Desert Sun.
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Staff Report
Resolution No. 2011-25 Amend EIP Report and Guidelines
March 24, 2011
Page 2 of 3
AB 44
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 Highways Code. Section
5898.15 provides that the City shall not permit a property owner to participate in 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.
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.
To comply with the new requirement the Office of Energy Management has already
implemented the Section 5898.15 requirement to any property owners applying for EIP
financing on or after January 1, 2011.
Although the EIP Report was adopted before the adoption and effectiveness of AB 44,
staff recommends that the EIP Report be amended to expressly state the requirement
imposed by Streets and Highways Code Section 5898.15 and to set forth the method for
verifying compliance with the requirement, which will assist property owners' and City
staffs evaluations of EIP applications.
Section 5898.15 expressly states that the new requirements imposed by the statute are
evaluated only at the time the contractual assessment (i.e., Loan Agreement) is
approved and shall not be construed to void or otherwise release a property owner from
the contractual assessment obligations, particularly in the event that the total amount of
annual property taxes and assessments exceeds 5 percent of a property's market value
after the property owner has entered into a contractual assessment. Therefore, it is not
expected that there will be any adverse consequence to EIP assessment collections as
a result of new Section 5898.15.
Proposed Amendments to EIP and EIP Report
The proposed amendments to the EIP Report (attached) were reviewed and approved
by the Energy Subcommittee prior to submission to the City Council for approval and
have been on file with the City Clerk and available for review prior to the March 24,
2011, public hearing.
After opening the public hearing and taking public comment, staff recommends approval
for the modifications to the EIP Report and Administrative Guidelines.
Staff Report
Resolution No. 2011-25
March 24, 2011
Page 3 of 3
Fiscal Analysis
Amend EIP Report and Guidelines
There is no fiscal impact associated with this request.
Submitted By:
M in Alvarez, Redeve opment Mgr.
Department Head:
McCarthy, ACM f9PR-e4evelopment
Paul S. Gibson, Director of Finance CITYCOUNCIL"fION
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Energy Independence Program Report and
Administrative Guidelines
Outline
Introduction
Goals
Background
Benefits
Program Administration
Program Requirements
Eligible Property Owners
Eligible Properties
Consent Agreement
Eligible Equipment
Eligible Costs
Tracks for Participation
The Efficiency Track
The Solar Track
The Custom Measure Track
Financial Strategy
Energy Surveys
Energy Independence Program Parameters
Minimum Loan Amount
Maximum Loan Amount
Maximum Portfolio
Assignment of Rebates and Incentives
Duration
Interest 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
F. Consent Agreement
G. Notice of Assessment
H. Payment of Contractual Assessment Required
Revised March 24, 2011
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:
l . A map 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. City policies concerning contractual assessments.
4. A plan for raising 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 Independence Program helps Palm 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.
Background
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 solar -- and energy efficiency
improvements that are affixed to residential, commercial, industrial, or other real property
(collectively known as "Energy Improvements").
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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 tax bills.
Program Benefits
From the Cit'sperspective, 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 property 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.
Program 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
■ 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
1990 levels by 2020.
Program Requirements
No Construction Prior to City Authorization
If construction has commenced on an improvement prior to (a) property owner submittal and
City approval of an EIP application for the improvement (see Appendix C), and (b) execution of
an EIP contract by the City with respect to the improvement (see Appendix D), such
improvement will not be eligible for financing under the EIP.
After execution of an EIP contract by the City and the property owner, the City will provide
confirmation of an acceptable title policy and authorization to commence work. Property owners
should note the City's obligation to fund amounts under an EIP contract is contingent upon the
City's confirmation of a title policy issued to the City in the EIP Loan amount and insuring the
EIP Loan and the lien of the EIP assessment (see Appendix D). If a property owner commences
of construction of an EIP Improvement prior to City confirmation of its receipt of an acceptable
title policy, the property owner proceeds at its own risk.
Eligible Property 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 taxes.
A property owner needs to be current in the payment of property taxes 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.
Applications may be submitted by property owner or the contracting company, limit one
application per day.
Eligible Properties
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 Agreement
All EIP Loans $30,000 or more (whether a single EIP Loan, or multiple EIP Loans combined for
a single property owner) 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. (See Appendix F.)
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Eligible Equipment
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.)
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:
a. Efficiency Measures. EIP supports a wide range of efficiency measures as
presented in Appendix A. EIP also supports Energy Improvements that are
eligible 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.
Eligible 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.
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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.
Credit Criteria for Eligibility
Satisfaction of the credit criteria for eligibility is required for participation in the Program, in
order to reduce risk for both the property owner and the City. All three of the tests below must
be met, at the time of the application approval:
1. Repayment Term — the term of the EIP Loan shall not exceed the reasonably expected
useful life expectancy of the Energy Improvements financed by the EIP Loan. "Useful
life expectancy" shall be determined in accordance with the then current policy
maintained by the OEM, which policy establishes reasonably expected useful life
expectancy for the purpose of the EIP.
a. For properties participating with respect to multiple types of Energy
Improvements, reasonably expected useful life expectancy shall be calculated on
a weighted basis, weighted by cost value of each improvement.
b. Exceptions to the repayment term limitation above may be granted by the City
Manager, to provide for a longer repayment term (up to a maximum of the
reasonably expected useful life expectancy of the Energy Improvements plus 5
years), upon sufficient evidence, provided by the property owner, of the fiscal
prudency and rationale for such exception. The determinations of whether the
evidence is sufficient and whether or not to grant an exception shall be in the City
Manager's sole discretion and shall be final.
2. Value -to -Lien Ratio — the ratio of (a) the value of the property to (b) the sum of the
amount of (i) the requested amount of the EIP Loan (including contingency) and (ii) the
amount all other liens on the property securing a special tax levied pursuant to the Mello -
Roos Community Facilities Act of 1982, a special assessment, or any other contractual
assessment (e.g., EIP Loan), must be at least 10:1.
a. "Value of the property" will be determined as (i) the assessed value of the
property, as reflected on the County Assessor's most current tax roll, or (ii) if the
property was recently purchased by the property owner and the sale price has not
yet been reflected on the County Assessor's most current tax roll, the sale price of
the property as established by purchase and sale documentation provided by the
property owner to the OEM in form and substance satisfactory to, and approved
by, the OEM (in its sole discretion) and legal counsel to the City. In the
alternative, the property owner may request the City to have an appraisal (in form
and substance acceptable to the City and from an appraiser of City's choice)
rol
conducted on the property, at the cost of the property owner, for the purpose of
establishing the value of the property.
b. Exceptions to the minimum 10:1 value -to -lien ratio may be granted by the City
Manager (to a minimum of an 8:1 value -to -lien ratio), upon sufficient evidence,
provided by the property owner, of the fiscal prudency and rationale for such
exception. The determinations of whether the evidence is sufficient and whether
or not to grant an exception shall be in the City Manager's sole discretion and
shall be final.
3. Total Annual Property Taxes and Assessments —the total amount of any annual property
taxes and assessments shall not exceed five percent (5%) of the market value of the
property.
a. "Total amount of any annual property taxes and assessments" will be calculated
as the sum of (i) the total annual property taxes and assessments levied on the
Riverside County consolidated property tax bill for the current fiscal year, and (ii)
the maximum projected annual installment of the EIP contractual assessment, as
calculated by the OEM. If the property owner has received any bills for taxes or
assessments directly from a local taxing entity for the current fiscal year, the
property owner will provide copies to the OEM, and the annual amount shown on
any such direct bills also will be included in amount determined in clause (i).
b. "Market value of the property" will be determined in the same manner as "value
of the property," as described above under "2. Value -to -Lien Ratio."
Tracks for Participation
There are three ways for property owners to participate in the Program. Eligible equipment and
standards are presented in greater detail in Appendix A:
The Efficiency 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
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 System 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 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-
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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
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.
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.
EIP Funds will then be used by the City for additional EIP Loans 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 Energy Loan Amount
The minimum size for an EIP Loan is $5,000.
Maximum Energy 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.
Assignment of Rebates and Incentives
The Office of Energy Management recommends that the amount of an EIP loan 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 investments. 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
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.
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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.
Additionally, if the property owner requests the City to cause an appraisal to be conducted
for the purposes of determining the "value of the property" or "market value of the property"
in connection with credit eligibility requirements described above, the cost of the appraisal
will be paid by the property owner.
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.
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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.
Efficiency 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. Except 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 Equipment
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)
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Solar Equipment
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 tax 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 measures — 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.
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RESOLUTION 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
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P6401-0001\1337658v Ldoc
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:\rda\Martin Alvarez\2011\Staff 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:
NOES:
ABSENT:
ABSTAIN:
Jean M. Benson, Mayor
ATTEST:
Rachelle D. Klassen, City Clerk
-3-
G:\rda\Martin Alvarez\2011\Staff Reports\Reso Approving Amndmnts - EIP Report (AB 44).docx
RESOLUTION NO. 2011-9
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT DECLARING ITS INTENTON 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
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 "TIP") 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, in connection with the Program and as required by the Act, the Director of
the City'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
within which the Program is proposed to be offered, (b) a draft application for participation in
the Program, (c) a draft contract (the "Contract") specifying the terms and conditions that would
be agreed to by a property owner and the City 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
aggregate 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, (f) 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
WHEREAS, 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-
o�em_nnmvi�u��z.,� .+..�
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, and (vi) to require a nexus between the repayment term and the
reasonably expected useful life expectancy of the EIP improvements; 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 Highways Code,
which provides that the City shall not permit a property owner to participate in EIP on or after
January 1, 2011 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; 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, the City Council now desires to further amend 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.
-2-
n.�..�.,���.,.�:.,
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 Redevelopment Manager 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.
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, 73-51 Fred <
Waring Drive, 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
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 24th day of February, 2011, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Rachelle D. Klassen, City Clerk
Jean M. Benson, Mayor
-3-
I��\.An\\An..�..
Klassen, Rachelle
From: Martinez, Gloria
Sent: Wednesday, March 09, 2011 8:34 AM
To: Klassen, Rachelle
Cc: Diana K. Chuang
Subject: FW: Legal Notice - Res No. 2011-9 PH 03/24/11 Amnd EIP Report & Admin Guidelines
FYI
From: Moeller, Charlene [mailto:CMOELLER(cbpalmspri.gannett.coml
Sent: Tuesday, March 08, 2011 5:21 PM
To: Martinez, Gloria
Subject: RE: Legal Notice - Res No. 2011-9 PH 03/24/11 Amnd EIP Report & Admin Guidelines
Ad received and will publish on date(s) requested.
Charlene Moeller I Media Sales Legal Notice Representative
The Desert Sun Media Group
750 N. Gene Autry Trail, Palm Springs, CA 92262
t 760.778.4578 1 f 760.778.4731
IeaalsCabthedesertsun.com I dpwlegalsCa-.thedesertsun.com
The Coachella Valley's #1 Source in News & Advertising!
i T,� I twitter wN1% `>���� � = facebook M% l)c.wri.corl
www.mydesert.com
From: gmartinez(&cityofpalmdesert.org (mailto:gmartinez(d)cityofpalmdesert.orgl
Sent: Tuesday, March 08, 2011 5:04 PM
To: tds-legals
Subject: FW: Legal Notice - Res No. 2011-9 PH 03/24/11 Amnd EIP Report & Admin Guidelines
Charlene!
PLEASE PUBLISH THE SUBJECT LEGAL NOTICE
One additional time:
SATURDAY, MARCH 12, 2011
if you have any questions or require additional information, please give me a call.
Thank you!
Records Technician
City of Palm Desert
1
73-510 Fred Waring Drive
Palm Desert, California 92260
(760) 346-0611 Ext. 354
gmartinez@cityofpalmdesert.org
From: Martinez, Gloria
Sent: Tuesday, March 01, 2011 5:20 PM
To: 'legals@thedesertsun.com'
Subject: Legal Notice - Res No. 2011-9 PH 03/24/11 Amnd EIP Report & Admin Guidelines
PLEASE PUBLISH THE FOLLOWING:
NOTICE OF PUBLIC HEARING
Resolution No. 2011-9 — 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.
TWICE IN THE DESERT SUN
Thursday, March 10, 2011
Thursday, March 17, 2011
If you have any questions or require additional information, please give me a call.
Thank you, Charlene!
Records Technician
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
(760) 346-0611 Ext. 354
gmartinez@cityofpalmdesert.org
2
Klassen, Rachelle
From: Martinez, Gloria
Sent: Thursday, March 03, 2011 5:01 PM
To: Klassen, Rachelle
Subject: FW: Legal Notice - Res No. 2011-9 PH 03/24/11 Amnd EIP Report & Admin Guidelines
0!1
From: Moeller, Charlene fmailto:CMOELLER(a)palmspri.gannett.coml
Sent: Thursday, March 03, 2011 4:37 PM
To: Martinez, Gloria
Subject: RE: Legal Notice - Res No. 2011-9 PH 03/24/11 Amnd EIP Report & Admin Guidelines
Ad received and will publish on the 5th and 10th as discussed.:-)
Charlene Moeller I Media Sales Legal Notice Representative
The Desert Sun Media Group
750 N. Gene Autry Trail, Palm Springs, CA 92262
t 760.778.4578 1 f 760.778.4731
legals(a)thedesertsun.com I dpwlegals(c)thedesertsun.com
The Coachella Valley's #1 Source in News & Advertising!
www.mvdesert.com I twitter rr M ; i )'- :rt facebook MI Dcsky .rl.c om
From: gmartinez(acityofpalmdesert.org [mailto:gmartinez(a-cityofpalmdesert.orcil
Sent: Thursday, March 03, 2011 4:34 PM
To: tds-legals
Subject: FW: Legal Notice - Res No. 2011-9 PH 03/24/11 Amnd EIP Report & Admin Guidelines
Charlene!
Is it at all possible for you to publish this notice on Saturday, PLEASE!!!!!!!
From: Martinez, Gloria
Sent: Tuesday, March 01, 2011 5:20 PM
To: 'legals@thedesertsun.com'
Subject: Legal Notice - Res No. 2011-9 PH 03/24/11 Amnd EIP Report & Admin Guidelines
PLEASE PUBLISH THE FOLLOWING:
NOTICE OF PUBLIC HEARING
Resolution No. 2011-9 — 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.
1
TWICE IN THE DESERT SUN
Thursday, March 10, 2011
Thursday, March 17, 2011
If you have any questions or require additional information, please give me a call.
Thank you, Charlene!
Records Technician
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
(760) 346-0611 Ext. 354
gmartinez@cityofpalmdesert.org
PALM DESERT
Energy Independence Program Report and
Administrative Guidelines
Outline
Introduction
Goals
Background
Benefits
Program Administration
Program Requirements
Eligible Property Owners
Eligible Properties
Consent Agreement
Eligible Equipment
Eligible Costs
Tracks for Participation
The Efficiency Track
The Solar Track
The Custom Measure Track
Financial Strategy
Energy Surveys
Energy Independence Program Parameters
Minimum Loan Amount
Maximum Loan Amount
Maximum Portfolio
Assignment of Rebates and Incentives
Duration
Interest 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
F. Consent Agreement
G. Notice of Assessment
H. Payment of Contractual Assessment Required
Revised March 44-,2WB74,=
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
Pahn Desert City Council.
Credit Criteria for Ellgibility
Satisfaction of the credit criteria for eligibility is required for participation in the Program, in order
to reduce risk for both the property owner and the City. BothA11 b= of the tests below must be
met, at the time of the application approval:
L Rumen! Term —the term of the FIP Luan shall not exceed the reasonahlyex
nsefiil life a ce_tancy of the Fnera Improvements financed by the EIP Loan. "Uselijl life
ec� t,ann ,v" shall he determined in accordance with the then current �,li y maintained JZL
the OEM which policy establishes reasonahly expected nseffil life ex e,R�an,cv for the
n=s. of the .IP
a, For properties participating with regmet to multiple j=es of F.ner=
Improvements expected uselij He xnectansy shall be calculated on a
w ight dr I�asis weiabteed 4 cost valuer offach iwVrovemenL
jy Exceptions to the reA3vment term limitation shove may he granted 12Y the City
Manager to provide for a longer rcpa=ent term (nn to a maximum of the
reasonably expected lisclul lif xnectancv of the Fnerov Improvements I; % S
years), upon suffi i to evidence provided by the =pWy owner_ of the fiscal
=deny and rationale for such excofinn_ The determinations of whether the,
evidence is s uffi i nt and whether or not to ¢rant an exception shall be in the City
Manager's sole discretion and shall he final
2 4—.Yahw_LQ-Lien RaLw —the ratio of (a) the value of the property to (b) the sum of the
amount of (i) the requested amount of the EIP Loan (including contingency) and (ii) the
amount all other liens on the property securing a special tax levied pursuant to the
Mello -Roos Community Facilities Act of 1982, a special assessment, or any other
contractual assessment (e.g., EIP Loan), must be at least 10:1.
a. "Value of the property" will be determined as.W the assessed value of the
property, as reflected on the County Assessor's most current tax roll- or (iii) if the
MoperLy was recently purchased by t_heprr pcM owner and the sale price has not
yet been reflected on the Cguaty Assessor's most current tax roll the gale price of
the pry eprty as established by piochnse and sale documentation providedthe
=WJU owner to the ORM in fnrm and substance satisfactory to_ and :r} rnved
by, the OEM (in its sole discretion)) and lelegal o tnc t c-I to City, In the
alternative, the property owner may request the City to have an appraisal (in form
and substance acceptable to the City and from an appraiser of City's choice)
conducted on the property, at the cost of the property owner, for the purpose of
establishing the value of the property.
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
Pahn Desert City Council.
Credit Criteria for Eligibility
Satisfaction of the credit criteria for eligibility is required for participation in the Program, in order
to reduce risk for both the property owner and the City. Be9jA II b= of the tests below must be
met, at the time of the application approval:
L RRal1 yment Term —the term of the FIP 1,Uan Shall not exceed the r asnnab`X 01jertea
nsef it life expectancy of the Energy im+ mvements financed by the RIP Loan "IJseful He
�TUiII iit MiY.VIlt4Mi l' u
L Fxcentions to the repayment term limitation above may he granted by the City
Manager_ to provide for a longer repayment term (yp to a maximum of the
reasonably expected uschil life xpectancy of the F.nQ= luallroyements plus
ve rc upon cpffi i nt exidence,provided by the pw=y owner. of the fiscal
prudency and rationale for %ncb x tion The determinations of whether the
evidence is sufficient and whether or not to grant an exception shall he in the city
Manager's sole discretion and shall be final
2_ 4-value-ta Lien Ratio — the ratio of (a) the value of the property to (b) the sum of the
amount of (i) the requested amount of the EIP Loan (including contingency) and (h) the
amount all other liens on the property securing a special tax levied pursuant to the
Mello -Roos Community Facilities Act of 1982, a special assessment, or any other
contractual assessment (e.g., EIP Loan), must be at least 10:1.
a. "Value of the property" will be determined as.11l the assessed value of the
property, as reflected on the County Assessor's most current tax roll. or ij if the
property was recently purchased by the pru=g owner and the sale price has not
vet bcen =fl he C'o mty Assessor's most cnayul tax roll the sale r�}, ice of
the property ac established by purchase and sale documentation pmvided the
pronertv owner to the OEM in farm and c h n e catisfa tort' to d approved
lit'- the OEM (nits Sole discretion) and legal counsel to the City. In the
alternative, the property owner may request the City to have an appraisal (in form
and substance acceptable to the City and from an appraiser of City's choice)
conducted on the property, at the cost of the property owner, for the purpose of
establishing the value of the property.
b. Exceptions to the m nimum 10:1 value -to -lien ratio may be granted by the City
Manager (to a minimum of an 8:1 value -to -lien ratio), upon sufficient evidence,
provided by the property owner, of the fiscal prudency and rationale for such
exception. The determinations of whether the evidence is sufficient and whether
or not to grant an exception shall be in the City Manager's sole discretion and shall
be final.
establishes teitseffably-expeete4-uieP&Ptk-e*peetaney-kp4he-
p_= . se—�
a,
weighted b
3. jDtaZAjjuLgaj Prnnrriv Tireve an J A=UQ?C rl the total anionnt nf�
tazes�ecementc cha11 nor exceed five Heir nt / /) of tl arl t I ert v
nrnn=y
Tracks for Participation
There are three ways for property owners to participate in the Program. Eligible equipment and
standards are presented in greater detail in Appendix A:
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 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.
The City of Pahn 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.
Additionally, if the property owner requests the City to cause an appraisal to be conducted for
the pnrpesepugw= of determining the `value of the property" f - the pufliese ef the
satis6ing the wAnimum value fatieor "market value of the llroj=3f in connection with
credit eligibility fegeirementrmtluirements described above, the cost of the appraisal will be
paid by the property owner.
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.
10
b. Exceptions to the minimum 10:1 value -to -lien ratio may be granted by the City
Manager (to a minimum of an 8:1 value -to -lien ratio), upon sufficient evidence,
provided by the property owner, of the fiscal pendency and rationale for such
exception. The determinations of whether the evidence is sufficient and whether
or not to grant an exception shall be in the City Manager's sole discretion and shall
be final.
...
L
Tracks for Participation
There are three ways for property owners to participate in the Program. Eligible equipment and
standards are presented in greater detail in Appendix A: