HomeMy WebLinkAboutR30390 - Organize, Pln & Operate a PD AB811 PACE ConferencePALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE A
CONTRACT WITH ECOMOTION IN THE AMOUNT NOT TO
EXCEED $63,175.00 TO ORGANIZE, PLAN, AND OPERATE A
PALM DESERT AB 811 (PROPERTY ACCESSED CLEAN ENERGY)
CONFERENCE
SUBMITTED BY: Martin Alvarez, Redevelopment Manager
CONSULTANT: EcoMotion
15375 Barranca Parkway, F-104
Irvine, CA 92618
DATE: November 18, 2010
CONTENTS: Conference Work Plan / Budget
Recommendation
By Minute Motion:
1. Authorize the Executive Director to execute a contract with EcoMotion
in the amount not to exceed $63,175.00 to organize, plan, and operate
a City of Palm Desert AB 811 (PACE) Conference; and (contract No. R30390)
2. Establish a budget for estimated revenues to Account 850-0000-379-
9900 Misc. Rev -Other in the amount of $53,175.00; and appropriate
$63,175.00 to the related local meetings expense for the Energy
Independence Program in Account No. 850-4511-442-3125.
Backaround
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
Staff Report
AB 811 (PACE) Conference, EcoMotion, Inc. Contract
November 18, 2010
Page 2 of 3
Code. Since its inception, the City's EIP has issued $5.5 million in energy upgrade loans to
residents and business owners for a total of 235 projects.
On July 6, 2010, the Federal Housing Finance Agency (FHFA) issued a guidance
statement to Fannie Mae and Freddie Mac (the "July 2010 FHFA Statement") that:
1. Expresses its concerns that the absence of robust underwriting standards to protect
homeowners among priority lien PACE programs across the nation raises
mortgage safety and soundness concerns for the mortgage lender.
2. Although allowing a waiver for homeowners who prior to July 6, 2010, obtained a
PACE -like loan (such as a loan under the EIP), directs Fannie Mae and Freddie
Mac as of July 6, 2010, to tighten certain mortgage lending underwriting criteria in
PACE jurisdictions, and to enforce the provisions of their Uniform Security
Instruments prohibiting a property owner from incurring a senior lien on the property
(such as an assessment under the EIP) without the consent of the mortgage
lender.
Based on the statement issued by the FHFA, the EIP was placed on hold on July 14,
2010. On August 26, 2010, the City Council directed staff to re -launch the EIP with a
provision that an additional disclosure be provided to participating property owners
regarding the recent statements released by the FHFA. The City's EIP is up and
running but the demand has significantly decreased due to the statement released.
At the October 2010 Energy Subcommittee meeting, staff was directed to look into the
feasibility of hosting an AB 811 (PACE) Conference in Palm Desert. The purpose and
goals of the conference include but are not limited to:
• Providing a forum to discuss the recent statements issued by the FHFA and
implications that have occurred to PACE programs such as the City's EIP.
• Develop solutions to address the FHFA concerns.
• Develop a uniform position to lobby for federal legislation to address the FHFA
concerns with PACE programs.
EcoMotion (Consultant) has prepared a detailed proposal for the conference work
plan/timeline, budget, and net cost projection (see attached). Based on preliminary
projections, the conference will bear a gross cost of $63,175.00, which includes:
• Complete conference management and labor costs.
• Marketing costs.
• Event costs.
As part of the conference, staff anticipates recouping approximately $25,000.00 through
registration fees, and another $25,000.00-$35,000.00 from city, county, utility and
industry sponsorships. The estimated net cost to the City is between $0 to $10,000.00,
G \rdaWartin A1varez\2010\SR\111810AB811Conf doc
Staff Report
AB 811 (PACE) Conference,
November 18, 2010
Page 3 of 3
EcoMotion, Inc. Contract
depending on how much funding is secured from registration and sponsorships fees. If
approved, the event would be hosted by the City of Palm Desert in the spring of 2011
and could potentially be held at the Palm Desert UC Riverside campus.
EcoMotion was selected based on their experience with in developing the AB 811
legislation and their knowledge of current PACE and FHFA issues. EcoMotion is an
industry leader in Energy policy and also organized the first AB 811 conference held in
Palm Desert in 2009. The contract with EcoMotion will be structured in an amount not
to exceed a fee of $63,175.00, based on actual performance toward implementation of
the conference. The contract will have the flexibility to be terminated at anytime, if after
the initial planning stage there is not a significant industry interest to proceed with a
conference.
Staff recommends that the Agency Board authorize the Executive Director to execute a
contract with EcoMotion, Inc. in the amount not to exceed $63,175.00.
Fiscal Analvsis
The projected net cost to the City for the conference is between $0 to 10,000.00,
depending on the amount of revenue generated from conference registrations and
industry sponsorships. Funds are available in Redevelopment Agency Project Area No.
1 funds; therefore, there is no impact to the City's General Fund.
Submitted By:
martin Alvarez, Redevelopment Manager
Department Head:
lopment
of Finance
Approv
M. Wohlmuth, Executive Director
44
ON
VERIFIED BY
)ripma! on file With City Clerk's Off op
A1varez\2010\SR\111810AB811Conf doc
Projected Net Cost to Palm Desert
Expenses
Conference Management $40,600
Marketing Costs $4,750
Event Costs $17,825
Total Expenses $63,175
Revenues
Sponsorships
$22,500
Counties: Sonoma, LA, etc.
$5,000
Other cities: Yucaipa, SF, etc.
$5,000
Southern California Edison
$5,000
The Gas Company
$2,500
Other utilities (local munis, IOUs, HD, etc.)
$2,500
Exhibitor fees (ten tables at 250 each)
$2,500
Registration Fees
$24,000
Registrants 120 x $200
$24,000
Presenters 20 x $0
$0
Guest List 40 x $0
$0
Total Revenue $46,500
Projected Net Cost to Palm Desert $16,675
Second AB 811 Conference Budget
Conference Management
Tasks and Activities
Staff Time
Hours
Totals
% Total
Program Administration
89
$10,125
16.0%
Program Development
93
$9,600
15.2%
Marketing & Outreach
89
$8,125
12.9%
Registration
40
$3,400
6.4%
Conference
107
$9,350
14.8%
Total
418
$40,600
64.3%
Marketing and Fulfillment Costs
Marketing Costs
Totals
% Total
Website support
$800
1.3%
Press Releases (Business Wire, etc.)
$800
1.3%
Graphics and layout
$500
0.8%
Printed materials
$1,200
1.9%
Conference materials
$1,200
1.9%
PayPal Fees
$250
1.9%
Total
$4,750
7.6%
Event Costs
Site costs
Number
Rate
Totals
% Total
Insurance
$600
0.9%
Audio visual
$500
0.8%
Catering
175
35
$6,125
9.7%
Evening Reception
100
30
$3,000
4.7%
Total
$10,225
16.2%
Special speaker compensation
Number
Rate
Totals
% Total
Travel
4
$600
$2,400
3.8%
Hotel
8
$150
$1,200
1.9%
Per diem
8
$45
$360
0.6%
Speaker Honorarium
2
$500
$1,000
1.6%
Total
$4,960
7.9%
Staff travel, hotel, and meal costs
Number
Rate
Totals
% Total
Mileage Miles
600
$0.55
$330
0.5%
Hotels Nights
12
$125
$1,500
2.4%
Per diem meals
18
$45
$810
1.3%
Total
$2,640
4.2%
Event Cost Subtotal
$17,825
28.2%
Total Management, Marketing, and Event Costs
$63,175
100.0%
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