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HomeMy WebLinkAboutRes 2014-102 - C34080 - WRCOG - HERO Pgrm CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: ADOPTION OF A RESOLUTION CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE CITY'S JURISDICTION IN THE CALIFORNIA HERO PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY AND WATER EFFICIENCY IMPROVEMENTS, AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE, AND APPROVING AN AMENDMENT TO A CERTAIN JOINT POWERS AGREEMENT RELATED THERETO SUBMITTED BY: Tony Bagato, Principal Planner DATE: December 11, 2014 CONTENTS: Resolution for HERO program Recommendation By Minute Motion, waive further reading and adopt Resolution 2014- 1 o2 approving an Amendment to the Western Riverside Council of Governments (WRCOG) Joint Powers Agreement to add the City of Palm Desert ("City") as an Associate Member in order to authorize the City's participation in the California Home Energy Renovation Opportunity (HERO) Program, which will enable property owners to finance permanently fixed renewable energy sources, energy and water efficiency improvements, and electric vehicle charging infrastructure on their properties. Executive Summary The HERO Property Assessed Clean Energy (PACE) Program was implemented in Western Riverside County in 2011, and is being offered to the City of Palm Desert residents who are eligible for participation in the financial program. BackQround Assembly Bill (AB) 811 was signed into law on July 21, 2008, and AB 474, effective January 1, 2010, amended Chapter 29 of Part 3 of Division 7 of the Streets 8� Highways Code of the State of California ("Chapter 29",) and authorizes a legislative body to designate an area within which authorized public officials and free and willing property owners may enter into voluntary contractual assessments to finance the installation of distributed generation renewable energy sources, energy efficiency, and/or water conservation improvements that Resolution No. 2014-102 Staff Report PACE HERO Program Page 2 of 5 December 11, 2014 are permanently fixed to real property, as specified. The financing for these improvements has come to be known as PACE. In April 2013, the Coachella Valley Association of Governments (CVAG) Executive Committee directed staff to initiate a Regional PACE program for member agencies. At the time the decision to offer a PACE program was made, the Executive Committee directed staff to explore the option of encouraging competition by offering PACE programs provided by both Ygrene Energy Fund and the HERO program. The CVAG Executive Committee established criteria for any PACE program, including that CVAG have its own stand-alone HERO program and that the CVAG Executive Committee would have the lead in making changes to the program. At the time, representatives of the California HERO program indicated they could not meet the requirements set forth by the Executive Committee. CVAG worked with Ygrene Energy Fund to launch the Clean Energy Coache(la Valley Upgrade program in December 2013 offering residential and commercial property owners financing for energy efficiency, renewable energy, and water conservation upgrades. Recently, several CVAG member agencies, including Indio and Desert Hot Springs, have joined the California HERO program. CVAG staff was approached by representatives of Renovate America who indicated a willingness to meet the conditions laid out by the CVAG Executive Committee in 2013. CVAG has worked with Renovate America on an agreement that, in CVAG staff's opinion, would substantially meet the conditions described by the Executive Committee and provide the HERO program to CVAG member agencies, with CVAG as the responsible agency for program oversight and direction. The CVAG Executive Committee approved an agreement between CVAG, Renovate America, and the WRCOG at their meeting on December 1, 2014, that would provide for a HERO program for residential property owners in the Coachella and Palo Verde Valleys. Under this agreement: 1. Renovate America would provide all administration and financing of the program at no cost to member agencies. At this time, the program is anticipated to be available only for residential property owners. 2. CVAG would provide program oversight including: a. Review and approve projects submitted by property owners participating in the California HERO program within the CVAG region. b. Adopt resolutions and approve documents authorizing the Califomia HERO program. c. Assist member agencies with the process of adoption of resolutions and/or other actions necessary to participate in the California HERO program. d. Coordinate with Renovate America on program marketing and outreach, to ensure that such marketing and outreach is compatible with the existing CV Upgrade program and property owners in the CVAG region are aware of the 2 Resolution No. 2014-102 Staff Report PACE HERO Program Page 3 of 5 December 11, 2014 options for PACE programs, including the Ygrene Energy Fund CV Upgrade program and the HERO program. e. Provide Renovate America with a "local presence" at the CVAG offices. This can be accomplished with Renovate American employees or representatives or by training CVAG staff. 3. The Western Riverside Council of Governments would participate in the HERO program for the Coachella Valley as conduit issuer of bonds. WRCOG is the program administrator for the California HERO program. The HERO Program (for PACE financing) has been very successful in Western Riverside County, since its launch in late 2011; the Program has funded over $370 million in projects. Due to its success, the California HERO Program is now being offered to provide additional California cities and counties with a turnkey program that saves significant time, cost, and local resources that would otherwise be needed to develop a new local program. To date, 209 jurisdictions in California have approved the HERO Program for their residents. The standard procedure for all cities and counties to participate in the California HERO program is to adopt the form of a resolution accompanying this staff report and approve an amendment to the WRCOG joint exercise of powers agreement, related to the California HERO Program, and provided as an attachment to the resolution. The attached resolution has been modified to cross-reference the CVAG-Renovate America-WRCOG Administration Agreement, and provide for CVAG to act as the program lead for the Coachella Valley region. Once interested jurisdictions have approved a resolution, a validation process will need to be completed. Discussion The California HERO Program is being offered to allow property owners in participating cities and counties to finance renewable energy, energy and water efficiency improvements, and etectric vehicle charging infrastructure on their property. If a property owner chooses to participate, the installed improvements will be financed by the issuance of bonds by a joint powers authority, the Western Riverside Council of Governments. The bonds are secured by a voluntary contractual assessment levied on such owner's property, with no recourse to the local government or other participating jurisdictions. Participation in the program is 100% voluntary. Property owners who wish to participate in the program agree to repay the amount borrowed through the voluntary contractual assessment collected together with their property taxes. This financing is available for eligible improvements on both residential and non-residential properties. The benefits to the property owner include: • Eligibilitv: In today's economic environment, alternatives for property owners to finance renewable energy/energy efficiency/water efficiency improvements or electric vehicle charging infrastructure may not be available. As such many property 3 Resolution No. 2014-102 Staff Report PACE HERO Program Page 4 of 5 December 11, 2014 owners do not have financing options available that would provide funding for improvements that lower their utility bills. • Savin s: Energy prices continue to rise and selecting in energy efficient, water efficient, and renewable energy improvements reduces utility bills. • 100% voluntarv: Property owners can choose to participate in the program at their discretion. Improvements and properties must meet eligibility criteria in order to qualify for financing. • Payment obliqation stays with the propertv: Under Chapter 29, a voluntary contractual assessment stays with the property upon transfer of ownership. Certain residential conforming mortgage providers will, however, require the assessment be paid off at the time the property is refinanced or sold. • Prepayment option: The property owner can choose to pay off the assessments at any time, subject to applicable prepayment penalties. • Customer-oriented program: Part of the success of the program is the prompt customer service. Committed funding partners provide funding promptly upon project completion resulting in both property owner and contactor satisfaction. The benefits to the Citv include: • Increase local jobs. • An increase in property values (energy efficient homes and buildings are worth more money). • An increase in sales, payroll and property tax revenue • As in conventional assessment financing, the City is not obligated to repay the bonds or to pay any delinquent assessments levied on the participating properties. • All California HERO Program and assessment administration, bond issuance and bond administration functions are handled by California HERO. Little, if any, City staff time is needed to participate in the California HERO Program. The proposed resolution enables the California HERO Program to be available to owners of property within our City to finance renewable energy, energy efficiency and water efficiency improvements, and electric vehicle charging infrastructure. The resolution also identifies that the City is a member of CVAG and CVAG has contracted with WRCOG and Renovate America, Inc. to provide the California HERO program to its member agencies, whereby portions of the administration of the California HERO Program in Eastern Riverside County shall be delegated to CVAG. The resolution also approves an amendment to the WRCOG 4 Resolution No. 2014-102 Staff Report PACE HERO Program Page 5 of 5 December 11, 2014 Joint Powers Agreement to add the City as an Associate Member in order to enable the California HERO Program to be offered to the owners of property located within the City who wish to participate in the California HERO Program. Fiscal Impact No negative fiscal impact to the City's general fund will be incurred by consenting to the inclusion of properties within the city limits in the California HERO Program. All California HERO Program administrative costs are covered through an initial administrative fee included in the property owner's voluntary contractual assessment and an annual administrative fee, which is also collected on the property owner's tax bill. Submitted By: � CITY COUNCILAQ'I'ION APPROVED r0 DF.NiF,D � R CEIVED OTAER ' Tony Bag o, Pri ipal Planner r� _ MEETI G D T AYES: '� / '� Department Head: NOES: ' ABSENT: � 1 ABSTAIN: � VERIFIED BY: ' � �' Lauri Aylaian, Director of Community Developmertiginal on File with City erk's Office Approval: 'i��, �� � .1. G�i�iG.KG�'ll1 John M. Wohlmuth, City Manager 5 RESO�UTION NO. 2014- 102 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE CITY'S JURISDICTION IN THE CALIFORNIA HERO PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY AND WATER EFFICIENCY IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING INFRASTRUCTUREAND APPROVING THE AMENDMENT TO A CERTAIN JOINT POWERS AGREEMENT RELATED THERETO WHEREAS, the Western Riverside Council of Governments ("Authority") is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the "Act") and the Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the "Authority JPA"); and WHEREAS, Authority intends to establish the California HERO Program to provide for the financing of renewable energy distributed generation sources, energy and water efficiency improvements and electric vehicle charging infrastructure (the "Improvements") pursuant to Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code ("Chapter 29") within counties and cities throughout the State of California that elect to participate in such program; and WHEREAS, City of Palm Desert ("City") is committed to development of renewable energy sources and energy efficiency improvements, reduction of greenhouse gases, protection of our environment, and reversal of climate change; and WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the counties and cities that are participating in the California Home Energy Renovation Opportunity (HERO) Program would promote the purposes cited above; and WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve energy and water efficiency and independence, and in doing so, cooperate with Authority in order to efficiently and economically assist property owners the City in financing such Improvements; and WHEREAS, Authority has authority to establish the California HERO Program, which will be such a voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally made and entered into April 1, 1991, as amended to date, and the Amendment to Joint Powers Agreement Adding the City of Palm Desert as an Associate Member of the Western Riverside Council of Governments to Permit the Provision of Property Assessed Clean Energy (PACE) Program Services within the RESOLUTION N0.2014- l02 City (the "JPA Amendment"), by and between Authority and the City, a copy of which is attached as Exhibit "A" hereto, to assist property owners within the incorporated area of the City in financing the cost of installing Improvements; and WHEREAS, the City is a member of the Coachella Valley Association of Governments ("CVAG") and CVAG has contracted with the Authority and Renovate America, Inc. to provide the California HERO program to its member agencies, whereby portions of the administration of the Califomia HERO Program in Eastern Riverside County shall be delegated to CVAG; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy and collection of assessments or any required remedial action in the case of delinquencies in the payment of any assessments or the issuance, sale or administration of any bonds issued in connection with the California HERO Program. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: 1. This City Council finds and declares that properties in the City's incorporated area will be benefited by the availability of the California HERO Program to finance the installation of Improvements. 2. This City Council consents to inclusion in the California HERO Program of all of the properties in the incorporated area within the City and to the Improvements, upon the request by and voluntary agreement of owners of such properties, in compliance with the laws, rules and regulations applicable to such program. 3. The consent of this City Council constitutes assent to the assumption of jurisdiction by Authority to take each and every step required for or suitable for financing the Improvements, including the levying, collecting and enforcement of the contractual assessments to finance the Improvements and the issuance and enforcement of bonds to represent and be secured by such contractual assessments. 4. This City Council hereby approves the JPA Amendment and authorizes the execution thereof by appropriate City officials. 5. City staff is authorized and directed to coordinate with CVAG staff and the Authority staff to faci�itate operation of the California HERO Program within the City, and report back periodically to this City Council on the success of such program. 6. This Resofution shall take effect immediately upon its adoption. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority Executive Committee. 2 RESOLUTION N0.2014- 102 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 11th day of December, 2014, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: VAN G. TANNER, MAYOR ATTEST: RACHELLE KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 3 RESOLUTION N0.2014- l02 AMENDMENT TO THE JOINT POWERS AGREEMENT ADDING CITY OF PALM DESERT AS AN ASSOCIATE MEMBER OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS (WRCOG) TO PERMIT THE PROVISION OF THE CALIFORNIA HERO PROGRAM SERVICES WITH SUCH CITY This Amendment to the Joint Powers Agreement ("JPA AmendmenY') is made and entered into on the day of , 2014, by City of Palm Desert ("City") and the Western Riverside Council of Governments ("Authority") (collectively the "Parties"). RECITALS WHEREAS, Authority is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the "Joint Exercise of Powers AcY') and the Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the "Authority JPA"); and WHEREAS, as of October 1, 2012, Authority had 18 member entities (the "Regular Members"). WHEREAS, Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code ("Chapter 29") to authorize cities, counties, and cities and counties to establish voluntary contractual assessment programs, commonly referred to as a Property Assessed Clean Energy ("PACE") program, to fund various renewable energy sources, energy and water efficiency improvements, and electric vehicle charging infrastructure (the "Improvements") that are permanently fixed to residential, commercial, industrial, agricultural or other real property; and WHEREAS, Authority has established a PACE program to be known as the "California HERO Program" pursuant to Chapter 29 as now enacted or as such legislation may be amended hereafter, which authorizes the implementation of a PACE financing program for cities and counties throughout the state; and WHEREAS, City is a member of the Coachella Valley Association of Governments ("CVAG") and CVAG has contracted with the Authority and Renovate America, Inc. to provide the California HERO program to its member agencies, whereby portions of the administration of the California HERO Program in Eastern Riverside County shall be delegated to CVAG; WHEREAS, City desires to allow owners of property within its jurisdiction to participate in the California HERO Program and to allow Authority to conduct 4 RESOLUTION N0.2014- 102 proceedings under Chapter 29 to finance Improvements to be installed on such properties; and WHEREAS, this JPA Amendment will permit City to become an associate member of Authority and to participate in California HERO Program for the purpose of facilitating the implementation of such program within the jurisdiction of City; and WHEREAS, pursuant to Government Code sections 6500 et seq., the Parties are approving this JPA Agreement to allow for the provision of PACE services, including the operation of a PACE financing program, within the incorporated territory of City; and WHEREAS, the JPA Amendment sets forth the rights, obligations and duties of City and Authority with respect to the implementation of the California HERO Program within the incorporated territory of City. MUTUAL UNDERSTANDINGS NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter stated, the Parties hereto agree as follows: A. JPA Amendment. 1. The Authoritv JPA. Except as provided herein, City agrees to the terms and conditions of the Authority JPA, attached. 2. Associate Membership. By adoption of this JPA Amendment, City shall become Associate Member of Authority on the terms and conditions set forth herein and the Authority JPA and consistent with the requirements of the Joint Exercise of Powers Act. The rights and obligations of City as an Associate Member are limited solely to those terms and conditions expressly set forth in this JPA Amendment for the purposes of implementing the California HERO Program within the incorporated territory of City. Except as expressly provided for by the this JPA Amendment, City shall not have any rights otherwise granted to Authority's Regular Members by the Authority JPA, including but not limited to the right to vote on matters before the Executive Committee or the General Assembly, right to amend or vote on amendments to the Authority JPA, and right to sit on committees or boards established under the Authority JPA or by action of the Executive Committee or the General Assembly, including, without limitation, the General Assembly and the Executive Committee. City shall not be considered a member for purposes of Sections 3.4, 8.1, and 9.1 of the Authority JPA. City shall not be bound by any subsequent amendments of the Authority JPA not expressly agreed to by City. 3. Riqhts of Authority. This JPA Amendment shall not be interpreted as limiting or restricting the rights of Authority under the Authority JPA. Nothing in this JPA Amendment is intended to alter or modify Authority Transportation Uniform Mitigation Fee (TUMF) Program, the PACE Program administered by Authority within the 5 RESOLUTION N0.2014- 102 jurisdictions of its Regular Members, or any other programs administered now or in the future by Authority, all as currently structured or subsequently amended. 4. RiQhts of Citv. This JPA Amendment shall be not interpreted as 4imiting or restricting the rights of City to establish parameters or limitation on upon the HERO Program as it is conducted within City's jurisdiction. B. Implementation of California HERO Program within City Jurisdiction. 1. Boundaries of the California HERO Proqram within Citv Jurisdiction. City shall determine and notify Authority of the boundaries of the incorporated territory within City's jurisdiction within which contractual assessments may be entered into under the California HERO Program (the "Program Boundaries"), which boundaries may include the entire incorporated territory of City or a lesser portion thereof, upon approval of same by City Council. 2. Determination of Eliqible Improvements. Subject to any parameters or limitations adopted by the City, Authority shall determine the types of distributed generation renewable energy sources, energy efficiency or water conservation improvements, electric vehicle charging infrastructure or such other improvements as may be authorized pursuant to Chapter 29 (the "Eligible Improvements") that will be eligible to be financed under the California HERO Program. 3. Establishment of California HERO Program. Authority will undertake such proceedings pursuant to Chapter 29 as shall be legally necessary to enable Authority to make contractual financing of Eligible Improvements available to eligible property owners with the Califomia HERO Program Boundaries and will be solely responsible for the conduct of such proceedings. 4. Financinq the Installation of Eliqible Improvements. Upon approval of the conduct of the HERO Program within City's jurisdiction, Authority shall be solely responsible to develop and implement a plan for the financing of the purchase and installation of the Eligible Improvements under the California HERO Program. 5. Onqoinq Administration. Subject to that portion of the administration delegated to CVAG pursuant to the agreement among the Authority, CVAG and Renovate America, Inc., Authority shall be responsible for the ongoing administration of the California HERO Program, including but not limited to producing education plans to raise public awareness of the California HERO Program, establishing contracts for residential, commercial and other property owners participating in the California HERO Program who have met the Program Criteria and who have not been deemed by CVAG to be ineligible, establishing and collecting assessments due under the California HERO Program, adopting and implementing any rules or regulations for the PACE program, and providing reports as required by Chapter 29. 6 RESOLUTION N0.2014- 102 City will not be responsible for the conduct of any proceedings required to be taken under Chapter 29; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of the Bonds or any other bonds issued in connection with the California HERO Program. 6. Phased Implementation. The Parties recognize and agree that implementation of the California HERO Program as a whole can and may be phased as additional other cities and counties execute similar agreements. City entering into this JPA Amendment will obtain the benefits of and incur the obligations imposed by this JPA Amendment in its jurisdictional area, irrespective of whether cities or counties enter into similar agreements. C. Miscellaneous Provisions. 1. Withdrawal. Authority may withdraw from this JPA Amendment upon six (6) months written notice to City; provided, however, there is no outstanding indebtedness of Authority within City. The provisions of Section 6.2 of the Authority JPA shall not apply to City under this JPA Amendment. City may withdraw approval for conduct of the HERO Program within the jurisdictional limits of City upon thirty (30) written notice to WRCOG without liability to the Authority, City or any affiliated entity. City's membership in WRCOG shall automatically terminate upon the thirty first (31) day following tender of said notice and/or upon termination of the Administration Agreement among the Authority, CVAG and Renovate America, Inc.; however, that withdrawal from WRCOG and the HERO Program shall not affect the validity of any voluntary assessment contracts (a) entered prior to the date of such withdrawal or (b) entered into after the date of such withdrawal so long as the applications for such voluntary assessment contracts were submitted to and approved by WRCOG prior to the date of City's notice of withdrawal. 2. Indemnification and Liabilitv. Authority shall defend, indemnify and hold City and its directors, officials, officers, employees and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries of any kind, in law or equity, to property or persons, including wrongful death, to the extent arising out of the acts, errors or omissions of Authority or its directors, officials, officers, employees and agents in connection with the California HERO Program administered under this JPA Amendment, including without limitation the payment of expert witness fees and attorney's fees and other related costs and expenses, but excluding payment of consequential damages, provided that the Authority shall not be required to defend or indemnify City and its directors, officials, officers, employees and agents for City's sole negligence or willful misconduct. Without limiting the foregoing, Section 5.2 of the Authority JPA shall not apply to this JPA Amendment. In no event shall any of Authority's Regular Members or their officials, officers or employees be held directly liable for any damages or liability resulting out of this JPA Amendment. 7 RESOLUTION N0.2014- l02 3. Environmental Review. Authority shall be the lead agency under the California Environmental Quality Act for any environmental review that may require in implementing or administering the California HERO Program under this JPA Amendment. 4. Cooperative Effort. City shall cooperate with Authority by providing information and other assistance in order for Authority to meet its obligations hereunder. City recognizes that one of its responsibilities related to the California HERO Program will include any permitting or inspection requirements as established by City. City's cooperation shatl not be interpreted to require any approvals without appropriate review or that any discretionary authority of City be exercised other than as provided by law. 5. Notice. Any and all communications and/or notices in connection with this JPA Amendment shall be either hand-delivered or sent by United States first class mail, postage prepaid, and addressed as follows: Authority: Western Riverside Council of Governments 4080 Lemon Street, 3rd Floor MS1032 Riverside, CA 92501-3609 Att: Executive Director City: City of Palm Desert 6. Entire Aqreement. This JPA Amendment, together with the Authority JPA, constitutes the entire agreement among the Parties pertaining to the subject matter hereof. This JPA Amendment supersedes any and all other agreements, either oral or in writing, among the Parties with respect to the subject matter hereof and contains all of the covenants and agreements among them with respect to said matters, and each Party acknowledges that no representation, inducement, promise of agreement, oral or otherwise, has been made by the other Party or anyone acting on behalf of the other Party that is not embodied herein. 7. Successors and Assigns. This JPA Amendment and each of its covenants and conditions shall be binding on and shall inure to the benefit of the Parties and their respective successors and assigns. A Party may only assign or transfer its rights and obligations under this JPA Amendment with prior written approval of the other Party, which approval shall not be unreasonably withheld. 8. Attornev's Fees. If any action at law or equity, including any action for declaratory relief is brought to enforce or interpret the provisions of this Agreement, each Party to the litigation shall bear its own attorney's fees and costs. 8 RESOLUTION N0.2014- l02 9. Governinq Law. This JPA Amendment shall be governed by and construed in accordance with the laws of the State of California, as applicable. 10.No Third Partv Beneficiaries. This JPA Amendment shall not create any right or interest in the public, or any member thereof, as a third party beneficiary hereof, nor shall it authorize anyone not a Party to this JPA Amendment to maintain a suit for personal injuries or property damages under the provisions of this JPA Amendment. The duties, obligations, and responsibilities of the Parties to this JPA Amendment with respect to third party beneficiaries shall remain as imposed under existing state and federal law. 11.Severabilitv. In the event one or more of the provisions contained in this JPA Amendment is held invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this JPA Amendment and the remaining parts of this JPA Amendment shall remain in full force and effect as though such invalid, illegal, or unenforceable portion had never been a part of this JPA Amendment. 12.Headinqs. The paragraph headings used in this JPA Amendment are for the convenience of the Parties and are not intended to be used as an aid to interpretation. 13.Amendment. This JPA Amendment may be modified or amended by the Parties at any time. Such modifications or amendments must be mutually agreed upon and executed in writing by both Parties. Verbal modifications or amendments to this JPA Amendment shall be of no effect. 14.Effective Date. This JPA Amendment shall become effective upon the execution thereof by the Parties hereto. 9 RESOLUTION N0.2014- 102 IN WITNESS WHEREOF, the Parties hereto have caused this JPA Amendment to be executed and attested by their officers thereunto duly authorized as of the date first above written. WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS By: Date: Executive Committee Chair Western Riverside Council of Governments CITY OF PALM DESERT By: Date: Title: 10