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HomeMy WebLinkAbout6/5/2013 - STAFF REPORTS - 2.K. • • • PROGRAM • • • MAKE A DIFFERENCE FOR THE COACHELLA & PALO VERDE VALLEYS WITH CLEAN ENERGY CVAG • • • FUND `220 MILLION IN CLEAN ENERGY IMPROVEMENTS • • s • CREATE NEW CLEAN ENERGY JOBS C0 GENERATE P580 MILLION IN I • • ECONOMIC REDUCE CARBON EMISSIONS BY METRIC TONS • • Over the next five years, Clean Energy CVAG seeks to invest $220 million in • the region's local economy through a Property Assessed Clean Energy • (PACE) District. That represents retrofitting just 3.5% of existing commercial • and residential buildings in the Coachella and Palo Verde Valley region with • clean energy improvements. • Clean Energy CVAG has the potential to generate measurable and meaningful economic and • environmental outcomes: 3,300 new jobs, $580 million in economic activity and a tremendous • reduction in carbon dioxide that contributes to global warming. • The fully-funded, turnkey solution offered exclusively by Ygrene is the only PACE program that can • produce these outstanding results. We look forward to working with you to kick-start the region's economic growth and deliver immediate benefits to all stakeholders. • • Calculations based on ECONodhwest Economic Impact Analysis,Apnl 2011 • • • • • • • • ! CLEAN ENERGY CVAG ! ! • ! ! • ! COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS ! • EXECUTIVE COMMITTEE • _-- • April 29, 2013 • --- • Agenda Item 7A: Initiate Development, Administration and Financing of a ! Regional Property Assessed Clean Energy Program • ! LETTERS AND SPEAKERS IN SUPPORT ! • ! ! • • • • ! Ygrene Energy Fund • 11199 Sorrento Valley Road, Suite 209 • San Diego, CA 92121 • 858.202.1662 • • • 0 • • • • . . . . . . . . . . • • 00 * 00009 * 000 • gee • oOOVii4 ( -), U Y Z 5 m J J Z 0 F Z W F Z_ U) W Q a cn x F • • • • Clean Energy CVAG 11199 Sonenfo Val'.ey Road,Suite 209 • San Diego,CA 92121 CV AG Phone:(858)202-1662 • info n ygrene.us www.ygrene.us • April 29, 2013 • • Councilmember Joseph De Coninck Chair, Executive Committee • Coachella Valley Association of Governments 73-710 Fred Waring Drive • Palm Desert, CA 92260 • Agenda Item 7A: REGIONAL PROPERTY ASSESSED CLEAN ENERGY PROGRAM • Dear Councilmember De Coninck and Executive Committee Members, • • On behalf of Ygrene Energy Fund, thank you for your careful consideration today of initiating the development, administration, and financing of a regional Property Assessed Clean Energy • (PACE) program. On February 25, 2013, the Executive Committee took important steps • toward establishing a regional PACE program, and today we are pleased that the Executive • Committee is considering opportunities for the CVAG region to continue its national leadership in energy efficiency. • • The letters of support provided herein are a sampling of our many conversations with contractors, property owners, local building suppliers and distributors, industry associations, • and individual regional leaders, all of whom represent area residents who are eager and ready • to take advantage of an SB 555 financing program. Across all these groups, one need is clear: the need for immediate financing that will provide these stakeholders with the opportunities to • make their properties energy and water efficient. Ygrene Energy Fund stands ready to meet • this need and is ready and able to deliver private financing on day one of the Clean Energy CVAG program. This forward thinking initiative will result in local jobs and efficiencies that will • help the Coachella Valley and Palo Verde Valley thrive- economically and environmentally. The letters herein confirm that businesses and residents in CVAG member cities and the unincorporated areas will take advantage of energy efficiency financing when it 1) is easy to • access and understand, 2) broadens the list of eligible properties and projects, 3) offers quick • approval for qualifying properties, and 4) provides local staff to guide property owners and contractors through the process. Ygrene's program meets all of these requirements and more. • • Ygrene respectfully requests that the Executive Committee take the actions detailed in the staff report to initiate the development, administration, and financing of the Clean Energy CVAG • program. By beginning the process of forming the SB 555 clean energy district today, you can • ensure that the program offered by Ygrene Energy Fund is available before year-end. • Very truly yours, • • Crystal Crawford • Regional Director, Southern California • WVWV.YGRENE.US • • i Y Z g m r J J Z O z w z U) w O a H • • • • Clean Energy CVAG 11199 Sorrento Valley Road,Suite 209 • San Diego,CA 92121 CV AG Phone:(858)202-1662 • into aygrene.us www.ygiene.us • • • CVAG — EXECUTIVE COMMITTEE MEETING -APRIL 29, 2013 • ITEM 7A: REGIONAL PROPERTY ASSESSED CLEAN ENERGY PROGRAM • • SPEAKERS IN SUPPORT* • (Partial List) • YGRENE ENERGY FUND 1. Mike Lemyre, Program Development Director, Ygrene Energy Fund • 2. Dan Schaefer, President, Ygrene Energy Fund • 3. Crystal Crawford, Regional Director, Southern California, Ygrene Energy Fund • • REGIONAL ASSOCIATIONS • 4. Ronald D. Phillips-Martinez, Executive Director, Desert Contractors' Association • 5. Gretchen Gutierrez, CEO, Desert Valleys Builders Association • 6. Wes Ahlgren, COO, Coachella Valley Economic Partnership 7. Mike Collins, President, Desert Contractors' Association • 8. Pat Whitcomb, Director, Desert Contractors' Association • • CONSTRUCTION INDUSTRY • 9. Patrick Adamson, Southern California Territory Manager, MI Windows & Doors, • La Quinta Office 10. Monica Sanderson, President & CEO, American 180 Synergies, Palm Desert • 11. Paul J. McCreesh, Owner, Green Guys Construction, Palm Springs • 12. Nate Otto, President, Hot Purple Solar, Palm Springs • 13. David Herdinger, Vice-President, Hot Purple Solar, Palm Springs 14. Alan Solomon, Sales Division, California Cool Roof, Palm Desert • • LOCAL RESIDENTS • • 15. Benjamin Druyon, Indio • • *Some speakers may take the podium for questions only. • • • MMYGRENE.US • • • • • • • • • • • • • • • THIS PAGE IS INTENTIONALLY BLANK • • • • • • • • • • • • • • • • • • • C t • • • • Clean Energy CVAG 11199 Sorrento Valley Road,Suite 209 • San Diego,CA 92121 . Phone:(858)202-1662 • into a ygrene.us ICVG � www.y9rerw.us • • • CVAG — EXECUTIVE COMMITTEE MEETING - APRIL 29, 2013 • ITEM 7A: REGIONAL PROPERTY ASSESSED CLEAN ENERGY PROGRAM • • INDEX TO LETTERS OF SUPPORT* • • • REGIONAL ASSOCIATIONS AND OTHER ORGANIZATIONS • 1. Desert Contractors' Association by Ronald D. Phillips-Martinez, Executive Director 2. Desert Valleys Builders Association by Gretchen Gutierrez, CEO • 3. Coachella Valley Economic Partnership by Wes Ahlgren, COO • 4. College of the Desert by Joel L. Kinnamon, Superintendent/President • • CONSTRUCTION INDUSTRY, BUILDING TRADES & EFFICIENCY CONSULTANTS • 5. Hyde's Air Conditioning, Indio, by Michael Hyde, General Manager 6. General Air Conditioning & Heating, Thousand Palms, by Frank Harrison, • Owner& President • 7. MI Windows & Doors by Patrick Adamson, Southern California Territory Manager, • La Quinta Office 8. American 180 Synergies, Palm Desert, by Monica Sanderson, President & CEO • 9. RMC Energywise Homes, La Quinta, by Richard E. Powell, Owner • 10. Green Guys Construction, Palm Springs, by Paul J. McCreesh & Christopher Lucas, Owners • 11. Esser Air Conditioning & Heating, Cathedral City, by Tim Esser, Owner • 12. W.L. Vickers Construction, Inc., Yucaipa, by Walt Vickers, Owner • • INTERESTED INDIVIDUALS • 13. Benjamin Druyon, Indio • 14. Mark Wasson, Palm Desert • • APPENDIX— PACE Program Cost and Features Comparison: Ygrene & HERO • (Comparison Compiled by CVAG Staff) • *Letters Received as of April 26, 2013 • • • • VWwV.YGRENE.US • • • • • • • • • • • • • • • • • • • • • • • • • • • • • �rrr � rrrr Vwlow'10 Y z Q J m } J J Q z O H z w F-- z_ U w O Q a U x • • • -- -t(j—_�7 DESERT CONTRACTORS' • ASSOCIATION I• HIRE LOCAL BUY LOCAL Established 1986 • April 10, 2013 Councilmember Joseph De Coninck • Chair, Executive Committee Coachella Valley Association of Governments • 73.710 Fred Waring Drive • Palm Desert, CA 92260 • RE: MOVING FORWARD WITH SB 555 PACE PROGRAM FOR THE COACHELLA VALLEY • Dear Councilmember De Coninck and Executive Committee Members: • • This letter is sent on behalf of our association. Established in 1984, the Desert Contractors'Association (DCA)is an association of contractors, builders, subcontractors, suppliers and consultants who work in the • Coachella Valley construction industry. Our association represents 160 business members who support "Hire Local/Buy Local" and the value of using licensed contractors in our industry. We are writing to urge the Executive Committee to move forward with the immediate creation of an SB 555 • PACE program and with the selection of Ygrene Energy Fund as the program administrator for the Coachella • Valley Association of Governments PACE program. Moving forward with creating a region-wide PACE program and a robust, effective PACE program is essential to jumpstarting economic activity, creating jobs • in the construction industry, and making the Coachella Valley a more efficient region for the future. We have evaluated the differences between AB 811 and SB 555 PACE programs as well as the program benefits provided by the Ygrene model, and we concur with the selection committee's recommendation of • Ygrene. We are very encouraged by Ygrene's commitment to opening LOCAL energy centers staffed by • LOCAL personnel who will interact with Coachella Valley property owners and contractors. One of the DCA's primary objectives is supporting the local construction industry. We would much rather see a • program staffed and run from the Coachella Valley rather than having a program run from the Western • Riverside area. • • • • • • • PO BOX 453. Rancho Mirage. CA 92270-0453 •(760)200-9202 •www,yourdca.org • Membership Center 71-687 Highway 111 Suite 202, Rancho Mirage, CA 92270 • • • We are excited about how we and our members would use the Clean Energy Coachella Valley program • offered by Ygrene. It is the only program that offers elements essential to making the program a success: • Committed and Available Funding: Ygrene offers a fully funded program, meaning a property owner • will never have to waste time and energy trying to secure financing. Properties are pre-approved, projects • receive final approval within 24 hours and funding is available immediately. • No Cost to Government/Lowest Cost to Property Owners: Ygrene's program will not cost CVAG or • j the member cities a dime of public money, Just as important is that this program, as compared to others, • has the lowest total cost to property owners of any PACE program in the state. • Successful Program Model: Ygrene's program builds upon both the Palm Desert Set to Save • Program and the Sonoma County Energy Independence Program, the most successful PACE programs in • existence. Building upon these proven models will help ensure that the Coachella Valley program can fund projects and achieve success. • Local Commitment to the Coachella Valley: Local energy centers, local contractor training, • grassroots marketing, and property owner outreach are key to creating the unique program that the • Coachella Valley deserves. • We strongly urge the committee to support the adoption of this SB 555 program now so that the Ygrene • Energy Fund program and SB 555 PACE financing can be available by Fall 2013. C • Thank you, C -: Z:1 / f,, c Ronald D. Phillips-Martinez C Executive Director C C C C C C C C C C C C C L PO BOX 453, Rancho Mirage, CA 92270-0453 • (760) 200-9202 •www,yourdca.org ` Membership Center 71-687 Highway 111 Suite 202, Rancho Mirage, CA 92270 L • • • • • • desert valleys builders association 2013 BOARD OF DIRECTORS • PRESIDENT • Mark Benedetti BMC Select Build + 1"VICE PRESIDENT Joe Haves April 18,2013 • Firs[Bank • SECRETARYITREASURER Eileen Eske • Pacific Premier Bank VICE PRESIDENT Councilmember Joseph De Coninck • OF ASSOCIATES Chair, Executive Committee Allan Levin • Allan Levin&Associates Coachella Valley Association of Governments PASTPRESIDENT 73-710 Fred Waring Drive • Mario Gonzales Palm Desert,CA 92260 GHA Companies • CHIEF EXECUTIVE OFFICER • Gretchen Gutierrez .RE: MOVING FORWARD WITH SB 555 PACE PROGRAM FOR THE COACHELLA • DIRECTORS VALLEY Wesley Ahlgren • The Hemminguay Group Dear Councilmember De Coninck and Executive Committee Members: • Fred Bell Nobell Energy Solutions LLC This letter is sent on behalf of the Desert Valleys Builders Association DVBA • Brian Benedetti y (DVBA). B A B Contracting Established in 2010, the 150+ members of the DVBA represent building industry • Andy Bmkcbill professionals involved in all aspects of the construction industry. Our builders, Coachella Valley Printing developers, architects, engineers, bankers, and local government members are • Tom DuBose Development Design&Engineering committed to ensuring that building of all types remains vibrant and strong in the • Margaret Drury Coachella Valley region. We are dedicated to providing excellence in community • Margaret Drury Construction development while protecting the natural beauty of the Coachella and Imperial Tommy Fowlkes Coachella Valley Water District Valleys. • Todd Hooks • Agua Caliente Band of Cahuilla Indians DVBA actively monitors local, state, and federal legislation and policy matters Dave Lippert Lippert Construction.Inc affecting the building industry, and we advocate for policies furthering our • Heather Loutsenhizer mission. We are writing today to urge the Executive Committee to move forward • Petta Building Group with the creation of a CVAG SB 555 PACE program administered and funded by Bruce Maize Y rene Energy Fund. Creating a region-wide PACE • Fidelity Title Insurance g g g program and a robust, Tom Noble effective PACE program will boost economic activity, create jobs in the • Noble&Company,LLC construction industry, and make the Coachella Valley a more efficient and • Dan Olivier sustainable region. Mueller/Olivier/Whittaker LLP • Alan Pace • Petra Geotechnical Marvin Roos MSA Consulting Inc • Greg Smith • Smith-Kandal Insurance(Real Estate Phil Smith • Sunrise Company Patrick Suarthout • Imperial Irrigation District Jeff Wattcnbarger • W'attenbargerConstruction 75100 Mediterranean • Palm Desert • CA 92211 • (760) 776-7001 office • (760) 776-7002 fax • www.thedvba.org • • • • • • desert valleys builders association • 2013 BOARD OF DIRECTORS • PRESIDENT Mark Benedetti • BMC Select Build N VICE PRESIDENT • Joe Hayes • First sank DVBA has evaluated the benefits of the improved SB 555 PACE legislation and.the SECRETARY/TREASURER Eileen Eske program offered by Ygrene. We concur with the selection committee's •Pacific Premier Bank recommendation of Ygrene as the administrator for the CVAG PACE program. As • VICE PRESIDENT the only SB 555 program, Ygrene can offer PACE financing and refinancing to all OFASSOCIATES property types in the Coachella Valley. In addition, we believe that local Ygrene • Allan Levin Allan Levin&Associates Energy Centers staffed by local residents who know the Coachella Valley, its PASTPRESIDENT property owners, cities, and contractors, is a superior model and offers clear • Mario Gonzales advantages and benefits to the region including: t iHA Companies • CHIEF EXECUTIVE OFFICER • Gretchen Gutierrez • Committed and Available Funding:Ygrene offers a fully funded program, meaning a property owner will never have to waste time and energy • DIRECTORS trying to secure financing. Properties are pre-approved, Wesley Ahhmen �' g g• P p pproved, projects receive The Hemmingway Group final approval within 24 hours and funding is available immediately. Fred Bell • Nobel]Energy Solutions LLC • No Cost to Government / Lowest Cost to Property Owners: Ygrene's Bran Benedetti B A B Contractingprogram will not cost CVAG or the member cities a dime of public money. • Andy Brakebill Just as important is that this program, as compared to others, has the • Coachella valley Printing lowest total cost to property owners of any PACE program in the state. • Tom DuBosc Development Design&Engineering Margaret Drum ' Successful Program Model: Y rene's program builds upon both the Palm • Margaret Drury Construction Desert Set to Save Program and the Sonoma County Energy • Tommy Fowlkes Independence Program, the most successful PACE programs in existence. Coachella Valley Water District Building upon these proven models will help ensure that the Coachella • Todd Hooks g P P P Agua Caliente Band ofCahuilla Indians Valley program can fund projects and achieve success. • Dave Lipper • Lipper Construction,Inc . Local Commitment to the Coachella Valley: Local energy centers, local Heather Loutsenhizer Penta Building Group contractor training, grassroots marketing, and property owner outreach • Bruce Maize are key to creating the unique program that the Coachella Valley • Fidelity Title Insurance deserves. Tom Noble • Noble&Company,LLC Dan Olivier DVBA strongly urges the committee to support the adoption of this SB 555 • Mueller/OlivierAVhitlaker LLP program now so that the Ygrene Energy Fund program and SB 555 PACE financing • Alan Pace Petra Geotechniu-tI can be available by Fall 2013. Marvin Roos • MSA Consulting Inc Thank you, Greg Smith Smith-Kandal Insurance/Real Estate • Phil Smith L� Sunrise Company C Patrick Swarthout G z Imperial Irrigation District CEO Jeff Wattenbarger Wattenbarger Construction 75100 Mediterranean • Palm Desert • CA 92211 1760) 776-7001 office • (760) 776-7002 fax C www.thedvba.org C • • • COACHELLA VALLEY ECONOMIC PARTNERSHIP CE • • April 18,2013 Chairman Joseph DeConinck • Coachella Valley Association of Governments 73-710 Fred Waring Drive,#200 • Palm Desert, CA 92260 • • RE: MOVING FORWARD WITH SB 555 PACE PROGRAM FOR THE COACHELLA VALLEY • Dear Chairman DeConinck: This letter is sent on behalf of the Coachella Valley Economic Partnership [CVEP]. Our mission is to build a diversified, year-round economy by promoting regional job growth with local companies, business • attraction and by developing a well-trained and educated workforce. We partner closely with a cross- section of the private, public and educational sectors. CVEP supports this committee moving forward with Clean Energy Coachella Valley by Ygrene as Coachella Valley Association of Government's [CVAG] • SB 555 program option. • • We urge you to complete the selection process and move forward with creating a region-wide PACE program. Unemployment remains high in the Coachella Valley, and the stakes for contractors and local businesses are high. Over the next five years, a successful PACE program could create 3,000 new jobs, • more than $200 million in project financing,and another$500 million in related economic benefits for the Coachella Valley. Having a robust, effective PACE program would jumpstart economic activity, • create jobs in the construction industry, and help make the Coachella Valley a more efficient region for the future. This is a huge opportunity—and the key is selecting a PACE program model that works and a • provider dedicated to making the program work locally. We are excited about how the Clean Energy Coachella Valley program offered by Ygrene would benefit our region. It is the only program that offers elements that are essential to making the program a • success: • • Committed and Available Funding: Ygrene offers a fully funded program, meaning a property • owner will never have to waste time and energy trying to secure financing. Properties are pre- approved, projects receive final approval within 24 hours and funding is available immediately. • Successful Program Model: Ygrene's program improves upon both the Palm Desert Set to Save Program and the Sonoma County Energy Independence Program, the most successful PACE • programs in existence. This proven model will help ensure that the Coachella Valley program • can fund projects and achieve success. • • Local Commitment to the Coachella Valley: Local energy centers, local contractor training, • grassroots marketing,and property owner outreach are key to creating the unique program that the Coachella Valley deserves. • • . CLIMATE FOR SUCCESS 3111 EAST TAHQUITZ CANYON WAY-PALM SPRINGS,CALI FORN IA 92262'PH;760,340.1575•Fx:760 548 0370-W W W.CVEP.COM • • • • COACHELLA VALLEY ECONOMIC PARTNERSHIP EP • • • • We strongly urge CVAG to support the adoption of this SB 555 program now so that the Ygrene program and SB 555 PACE financing can be available in 2013. Sincerely, • • • Wesley Ahlgren • Chief Operating Officer • • • • i • • • • • • • • • • • • • • • • • C C i c c CLIMATE FOR SUCCESS C 3111 EAST TAHOUITZ CANYON WAY-PALM SPRINGS,CALIFORNIA 92262•PH:760.340.1575-Fk 760 548 0370•WWW.CV EP.COM 41 C C • • • Mr.Michael O'Neill . Chair,Board of Trustees COLLEGE • l4s.Becky Broughton8-roofflESERT Vice Chair • Dr.Bonnie Stefan • Clerk • April 24, 2013 Mrs.Mary Jane Sanchez-Fulton S Member Mr. Tom Kirk ` Executive Director vacant Coachella Valley Association of Governments Area 4 73-710 Fred Waring Dr., Suite 200 .nr.Andrew Campbell Student Trustee Palm Desert, CA 92260 Dear Mr. Kirk, 1 am writing to express support for a Coachella Valley-wide PACE program and to • encourage CVAG members to consider including both residential and commercial Dr.Joel Klnnamon services. Having this State-approved financing option available for Coachella President Valley homeowners and businesses, and to the contractors that do the work, will encourage increased use of energy efficiency and renewable energy technologies in • the valley. This in turn, will create employment opportunities for the students • College of the Desert (COD) is currently training. As you may be aware, COD has been providing skills training in energy efficiency auditing and building retrofitting. It has also been preparing students for • occupations in renewable energy. COD is playing an important role in developing a workforce for tomorrow's clean energy jobs. Financing strategies such as PACE ` financing is also a part of what the Valley needs to grow the local clean energy . economy. Sincerely, Joel L Kinnamon S rintendent/President . JLK/jj cc: Douglas Redman, Assistant Professor, Automotive Technology/Advanced Transportation 4 43500 Monterey Ave., Palm Desert, CA 92260 • 760.346.8041 • collegeofthedesert.edu 4 I f J Y z Q J m } J J Q z O H z w z_ U) w c7 Q a U x H • • • • • • rIYIDE • • Guaranteed Comfort Solutions • April 18,2013 • Councilmember Joseph De Coninck • Chair, Executive Committee Coachella Valley Association of Governments • 73-710 Fred Waring Drive • Palm Desert,CA 92260 • RE: MOVING FORWARD WITH SB 5S5 PACE PROGRAM FOR THE COACHELLA VALLEY • • Dear Councilmember De Coninck and Executive Committee Members: • I'm writing to you as one of the owners of Hyde's Air Conditioning. My family has been in business for over • thirty years providing HVAC and related services to residential and commercial customers in Palm Desert, • Bermuda Dunes,Palm Springs,Cathedral City,Coachella, Desert Hot Springs, Indio, Rancho Mirage,Thermal, La Quinta and surrounding towns. We area third-generation,family owned business headquartered in the • Coachella Valley. • We are proud to be a member of the local construction industry employing over 24 Coachella Valley residents. • A successful PACE program like Clean Energy CVAG program offered by Ygrene Energy Fund would create • opportunities for Hydes to grow and add employees and would allow us to offer financing for energy • efficiency upgrades to more residents in our region. This is a huge opportunity for the region—and the key is selecting a PACE program model that works and a provider dedicated to making the program work locally. • We are already familiar with PACE financing. Our company has participated in the City of Palm Desert"Set to • Save" PACE program from its inception, and many of our customers took advantage of the financing. However, • the Palm Desert program has been challenging because payments are very slow. It is not uncommon for us to wait for up to eight(8)weeks after project completion for payment,and in one case the property owner kept • the funds without paying Hyde's for the project. • We are familiar with the Ygrene program and are looking forward to taking advantage of the program's • contractor training,software tools,and the commitment to payment in no more than five (5)business days • following project completion. We have no objection to the three percent(3%)fee that Ygrene charges participating contractors. As a small business, Hydes will gladly pay a 3%fee in exchange for prompt payment. • The 3%fee is similar to what we already pay when customers use their credit cards to pay Hydes for services • rendered and is already built into our pricing schedule. • In summary,we know from experience that property owners will use PACE financing for energy efficiency and • other upgrades. But PACE will mean nothing for our business if the program doesn't successfully fund projects. We support Ygrene's Clean Energy program because it is the only program with these essential elements: • • Committed and available funding. Customers won't follow through with a project unless financing is • easily accessed,available up front,and projects can get started immediately. Ygrene's easy to • understand program pre-approves properties,approves projects within 24 hours,and has immediately • available funding. • Certified Comfort Systems,Inc. • Air Conditioning•Heating•Appliances 42-949 Medio Street,Indio,CA 922011 Uc.4906115 • Phone:760.3602202 1 Toll Free:877.339.1933 1 Fax 760.360.3350 1 Email:infoQhydesac.com Please Visit Us Online at www.HydesAC.eom • • T • • • • • JIY D E J Guaranteed Comfort Solutions • • • • Local Commitment to the Coachella Valley: Ygrene's local energy centers, local contractor training, grassroots marketing, and property owner outreach are key to creating the unique program that the Coachella Valley deserves. • • Local Contractor Support and Local Jobs: Ygrene's program makes the entire process simple and easy • for contractors,and supports us from start to finish. The program provides comprehensive training,will • support us in marketing PACE to property owners throughout the Coachella Valley, and gives us the • tools and resources to efficiently manage projects and help us grow our business. • Local Marketing and Outreach. Ygrene is the only program provider that will offer robust marketing • tailored to the individual cities and designed to ensure maximum participation in the program. Read: • more projects, more jobs. • As NAG considers options for creating a regional PACE(Property Assessed Clean Energy)financing district,we urge you to move forward with the Clean Energy Coachella Valley program by Ygrene. Its the only program that can make PACE a large-scale reality for our region,and it is essential to jumpstarting activity and creating • jobs in the construction industry. In short,it works and it will put local businesses and their employees back to • work. • Si erely, • • Michael Hyde • General Manager • • C • C C C C Certified Comfort Systems, Inc. C Air Conditioning•Heating•Appliances 42-949 Madio Street, Indio,CA 92201 1 Lic.A906115 Phone:760.360.22021 Toll Free:877.339.1933 1 Fax:760.360.3350 1 Email:info@hydesac.com Please Visit Us Online at w .HydesAC.com r • • • GENERAL • ***Air Conditioning & Heating *** • • April 15, 2013 • Councilmember Joseph De Coninck Chair, Executive Committee • Coachella Valley Association of Governments • 73-710 Fred Waring Drive • Palm Desert, CA 92260 • RE: MOVING FORWARD WITH SIB 555 PACE PROGRAM FOR THE COACHELLA VALLEY • Dear Councilmember De Coninck and Executive Committee Members: • • I'm writing to you as the Owner and President of General Air Conditioning& Heating. We have been a licensed • HVAC contractor doing business in the Coachella Valley since 1984. Like many in the building and HVAC industry, our company is now more focused on evaluating the"whole building"and making properties more • energy efficient, more comfortable,and more valuable for the owner. But oftentimes,owners need readily • available and affordable financing in order to make needed improvements. It is critical for contractors and • consumers to have access to the PACE financing program developed by Ygrene. • As a member of the Coachella Valley construction industry,General Air Conditioning&Heating takes our business seriously. We currently employ over 40 local residents and have an onsite training program to ensure • the highest customer service and satisfaction. A successful PACE program like Clean Energy CVAG would • create opportunities for our company to grow and add employees and would allow us to offer energy • efficiency upgrades to more residents in our region. This is a huge opportunity—and the key is selecting a PACE program model that works and a provider dedicated to making the program work locally. • Our company knows from experience that property owners in the Coachella Valley are interested in using this • financing tool for energy efficiency and renewable energy upgrades. But PACE will mean nothing for my • business if the program doesn't successfully fund projects. That's why we support Ygrene's Clean Energy program. Ygrene offers the only program with these essential elements: • • • Committed and available funding. Customers won't follow through with a project unless financing is easily accessed, available up front, and projects can get started immediately. Ygrene's easy to • understand program pre-approves properties,approves projects within 24 hours, and has immediately • available funding. • • Local Commitment to the Coachella Valley: Ygrene's local energy centers, local contractor training, • grassroots marketing, and property owner outreach are key to creating the unique program that the • Coachella Valley deserves. • • Local Contractor Support and Local Jobs: Ygrene's program makes the entire process simple and easy • for contractors, and supports us from start to finish. The program provides comprehensive training,will support us in marketing PACE to property owners throughout the Coachella Valley, and gives us the • tools and resources to efficiently manage projects and help us grow our business. • . Local Marketing and Outreach. Ygrene is the only program provider that will offer robust marketing • tailored to the individual cities and designed to ensure maximum participation in the program. Read: • more projects, more jobs. • 31-170 Reserve Drive•Thousand Palms, CA 92276 • (760)343-7488 • Fax(760)343-7494 • www.callthegeneral.com • As CVAG considers options for creating a regional PACE(Property Assessed Clean Energy)financing district, I urge you to move forward with the Clean Energy Coachella Valley program by Ygrene. It's the only program that can make PACE a large-scale reality for our region,and it is essential to jumpstarting activity and creating • jobs in the construction industry. It's also the only program I want to work with and will recommend to my customers. In short, it works and it will put local businesses and their employees back to work. Sincerely, Frank Harrison Owner& President i . i C C C C C C c c c c c • • • • • MI Windows and Doors April 19,2013 • • Councilmember Joseph De Coninck • Chair, Executive Committee • Coachella Valley Association of Governments • 73-710 Fred Waring Drive Palm Desert, CA 92260 • • RE: MOVING FORWARD WITH SB 555 PACE PROGRAM FOR THE COACHELLA VALLEY • Dear Councilmember De Coninck and Executive Committee Members: • • As a Territory Manager in Southern California of MI Windows and Doors, I enthusiastically support moving • forward with the Clean Energy Coachella Valley PACE(513 555) program by Ygrene. • As CVAG considers next steps for PACE in the region, I urge you to move forward with the Ygrene program. Your • support for this program is essential to jumpstarting economic activity, creating jobs in the construction and supporting industries,and preparing cities throughout the Coachella Valley for the future. • • As a Manfacturer of energy efficient windows and doors and a supplier of hundreds of Contractors in the region, • Midwest Glass and Aluminum (In Palm Desert) is among the many potential beneficiaries of this program. But we also see this as an opportunity to contribute to the Coachella Valley's economic recovery and environmental • leadership. Our company is committed to manufacturing energy efficient windows and doors that meet or exceeds the most stringent Department of Energy standards. As Territory Manager, (and home owner in Coachella Valley) I know • firsthand how property owners, contractors, manufacturers and the larger business and environmental • communities need a PACE financing program that works,and works for us. Importantly, the Ygrene program, as compared to others, has the lowest total cost to property owners of any PACE program in the state. I believe • Clean Energy Coachella Valley by Ygrene is the clear choice for PACE programs,and urge you to make it available • to all property owners,commercial and residential, in the region. • Our company is also committed to Habitat for Humanity. Please keep in mind, should you move forward on the • Ygrene program, MI Windows and Doors will donate our top of the line most energy efficient windows • engineered specifically for the harsh desert climate. • Ygrene's program will provide property owners with the best program option and provide manufacturing • partners the most opportunities to participate and contribute to the program. I strongly urge the committee to • support the adoption of this SB 555 program now so that the Ygrene Energy Fund program and SB 555 PACE financing can be available by fall 2013. • • Thank you • Patrick Adamson Southern California Territory Manager • padamson@miwd.com • Cell#760-799-8922 www.mienergycore.com �J • • • • • � • • � � � � • • • � � � • • • • � � � • • • riVVVVV � vvv � � rr �rt� �; �� Y Z Q I J m } J J Q Z � Z W F Z I _� W C7 Q d �_ 2 H J • • • AMERICAN 180 SYNERGIES • • 74478 HIGHWAY 111,SUITE 302 • PALM DESERT, CA 92260 (760) 898-5997 • • Councilmember Joseph De Coninck • Chair, Executive Committee Coachella Valley Association of Governments • 73-710 Fred Waring Drive • Palm Desert, CA 92260 • RE: SB 555 PACE PROGRAM FOR THE COACHELLA VALLEY • Dear Councilmember De Coninck and Executive Committee Members: • • In your consideration of creating a regional PACE (Property Assessed Clean Energy) financing district, 1 urge you to move forward with the Clean Energy Coachella Valley program by Ygrene. • Unemployment remains high in the Coachella Valley, and the stakes for contractors couldn't be higher. • Over the next five years, a successful PACE program could create 3,000 new jobs, more than • $200 million in project financing, and another$500 million in related economic benefits for the • Coachella Valley. This is a huge opportunity—and the key is selecting a PACE program model that works and a provider dedicated to making the program work locally. • As a local Coachella Valley contractor, we have experienced other PACE programs on a very limited • basis. It is exciting it will now be available throughout the Coachella Valley including the almost always • left out unincorporated areas. The PACE program is crucial and will mean nothing for my business if the program doesn't successfully fund projects. This is why I support Ygrene's Clean Energy program. • Ygrene offers the only program with these essential elements: • • Committed and available funding. Customers won't follow through with a project unless • financing is easily accessed, available up front, and projects can get started immediately. Ygrene's easy to understand program pre-approves properties, approves projects within 24 • hours, and has immediately available funding. • • Local Commitment to the Coachella Valley: Ygrene's local energy centers, local contractor • training, grassroots marketing, and property owner outreach are key to creating the unique • program that the Coachella Valley deserves. • • Local Contractor Support and Local Jobs: Ygrene's program makes the entire process simple and easy for contractors, and supports us from start to finish. The program provides • comprehensive training, will support us in marketing PACE to property owners throughout the • Coachella Valley, and gives us the tools and resources to efficiently manage projects and grow our business. Local Marketing and Outreach. Ygrene is the only program provider that will offer robust marketing tailored to the individual cities and designed to ensure maximum participation in the • program. Read: more projects, more jobs. • Please make the right decision— include Clean Energy Coachella Valley by Ygrene as a PACE • financing option to property owners in our region. In short, it works and it puts local contractors back to • work. • Regards, • Monica Sanderson, President & CEO • • • • • • • • • • • • • • • • THIS PAGE IS INTENTIONALLY BLANK • • • • • • • • • • • • • • • C C C C L • • • • • • RMC • ENERGYWISE • HOMES • • Councilmember Joseph De Coninck • Chair, Executive Committee • Coachella Valley Association of Governments • 73-710 Fred Waring Drive Palm Desert,CA 92260 • • • RE: MOVING FORWARD WITH SB 555 PACE PROGRAM FOR THE COACHELLA VALLEY • Dear Councilmember De Coninck and Executive Committee Members: As CVAG considers options for creating a regional PACE (Property Assessed Clean Energy)financing district, I urge you to move forward with the Clean Energy Coachella Valley program by Ygrene. • Unemployment remains high in the Coachella Valley,and the stakes for contractors couldn't be higher. Over the next five years,a successful PACE program could create 3,000 new jobs, more than$200 • million in project financing,and another$500 million in related economic benefits for the Coachella . Valley. This is a huge opportunity—and the key is selecting a PACE program model that works and a provider dedicated to making the program work locally. • As a local Coachella Valley contractor, I could not be more enthusiastic about the potential of PACE. We • know from experience that property owners in our region need financing options for energy efficiency • and renewable energy upgrades. As I urge you to move forward with the Clean Energy Coachella Valley • program by Ygrene. I also urge you to ensure that the basic energy efficiency measures of Building envelope sealing,Quality insulation installment,Combustion safety testing and correct equipment • and duct sizing including ventilation.These are the basic tenets of residential energy efficiency that are • oft overlooked and the most important.These basic tenets should be incorporated into the P.A.C.E funding process in the Coachella valley under CVAG leadership with the work being done by qualified • contractors that have had Building Science training. • In 2005 the California Solar Initiative was developed by the California Public Utilities Commission.The • California Energy Commission developed the New Solar Homes Partnership in 2006. • The primary goals of the New Solar Homes Partnership and California Solar Initiative are to help create a • self-sustaining market for energy efficient, new and existing solar homes.Additional goals include home builders incorporating high levels of energy efficiency with high performing solar systems as standard • features,and home buyers demanding energy efficient solar homes.The Energy Commission intends to • provide financial incentives and non-financial assistance in the form of builder and market support as • the means to help create this self-sustaining market. • • • J • • • • The C.P.U.0 and the C.E.0 both understand that higher performing homes always incorporate the basic • tenets first to reduce the actual electrical load on the home before assessing for solar. • In the Coachella Valley,for a year round resident,the HVAC system and Pool pumps can be close to • equal in power usage measured over the entire year. For the no pool homes with comfort systems • installed the HVAC system is a large percentage of the electrical load. • The Pool pump is a simple problem and the fix is to install a variable speed pump for less than$1500 that will show immediate savings of up to 75%. • The HVAC system is a bit more complex with the need to address the sizing of the equipment and duct system on every change-out or new install.The correct sizing of the HVAC system includes the BTU (heat)transfer through the building shell via air leakage and the BTU transfer(conduction) between the walls, attic and floors into the conditioned space. • This is a load on which our comfort system has to "do work"for and can be completely controlled by a • properly trained contractor. Reducing the BTU load also requires downsizing the equipment to meet the reduced load. Energy savings coming from the comfort system are realized by using correctly sized systems that are generally smaller and run for longer periods. • These 2 systems along with increasing plug loads from appliances and convenience products create • most of the demand for power in our desert communities. • 1 believe this program should incorporate both Contractor and Homeowner training to help this program • reap its highest benefits. Homeowners should be informed on their best options to ensure that they will gain the most in efficiency and comfort from their home. The Contractors need to be trained to inform • their client on the best course to achieve their goals and to be proficient in the skills necessary to • provide them. • But PACE will mean nothing for my business if the program doesn't successfully fund projects. That's • why I support Ygrene's Clean Energy program. Ygrene offers the only program with these essential elements: • • Committed and available funding. Customers won't follow through with a project unless • financing is easily accessed, available up front, and projects can get started immediately. • Ygrene's easy to understand program pre-approves properties, approves projects within 24 . hours, and has immediately available funding. • Local Commitment to the Coachella Valley: Ygrene's local energy centers, local contractor C training, grassroots marketing, and property owner outreach are key to creating the unique program that the Coachella Valley deserves. C • Local Contractor Support and Local Jobs: Ygrene's program makes the entire process simple C and easy for contractors,and supports us from start to finish. The program provides comprehensive training,will support us in marketing PACE to property owners throughout the C Coachella Valley,and gives us the tools and resources to efficiently manage projects and grow our business. • Local Marketing and Outreach. Ygrene is the only program provider that will offer robust marketing tailored to the individual cities and designed to ensure maximum participation in the program. Read: more projects, more jobs. I r • • • Please make the responsible decision—include Clean Energy Coachella Valley by Ygrene as a PACE financing option to property owners in our region. It's the only program that can make PACE a large- scale reality,and it is essential to jumpstarting activity and creating jobs in the construction industry. It's also the only program I want to work with and will recommend to my customers. In short, it works and it puts local contractors back to work. Sincerely, • Richard E. Powell • RMC Energywise Homes 890942 C-6, B • • i i • • • i • i • • • • • • i • • I Y Z m } J J Q Z O H Z w H i Z U w 0 a U) x H I i • • • Guys • April 26, 2013 CONSTRUCTION • Councilmember Joseph De Coninck CA 11C 99092JI Chair, Executive Committee • Coachella Valley Association of Governments • 73-710 Fred Waring Drive • Palm Desert, CA 92260 • Re: Moving Forward with SB 555 PACE Program for the Coachella Valley • Dear Councilmember De Coninck and Executive Committee Members: • As CVAG considers options for creating a regional PACE (Property Assessed Clean Energy)financing • district, we urge you to move forward with the Clean Energy Coachella Valley program by Ygrene. • Unemployment remains high in the Coachella Valley, and the stakes for contractors couldn't be higher. Over the next five years, a successful PACE program could create 3,000 new jobs, more than$200 • million in project financing,and another$500 million in related economic benefits for the • Coachella Valley.This is a huge opportunity—and the key is selecting a PACE program model that works and a provider dedicated to making the program work locally. • As a local Coachella Valley contractor, we could not be more enthusiastic about the potential of PACE. • We know from experience that property owners in our region need financing options for energy efficiency and renewable energy upgrades. But PACE will mean nothing for my business if the program doesn't • successfully fund projects. That's why we support Ygrene's Clean Energy program. Ygrene offers the • only program with these essential elements: • • Committed and available funding. Customers won't follow through with a project unless financing is easily accessed, available up front, and projects can get started immediately. • Ygrene's easy to understand program pre-approves properties, approves projects within 24 • hours, and has immediately available funding. • Local Commitment to the Coachella Valley: Ygrene's local energy centers, local contractor • training, grassroots marketing, and property owner outreach are key to creating the unique program that the Coachella Valley deserves. • • Local Contractor Support and Local Jobs:Ygrene's program makes the entire process simple • and easy for contractors, and supports us from start to finish. The program provides comprehensive training, will support us in marketing PACE to property owners throughout the • Coachella Valley, and gives us the tools and resources to efficiently manage projects and grow • our business. • Local Marketing and Outreach. Ygrene is the only program provider that will offer robust • marketing tailored to the individual cities and designed to ensure maximum participation in the program. Read: more projects, more jobs. • Please make the responsible decision—include Clean Energy Coachella Valley by Ygrene as a PACE • financing option to property owners in our region. Its the only program that can make PACE a large-scale • reality, and it is essential to jumpstarting activity and creating jobs in the construction industry. Its also the only program we want to work with and will recommend to my customers. In short, it works and it puts • local contractors back to work. • Sincerely, Paul J. McCre sh Christopher Lucas • 593 North Juanita Drive • Palm Springs • CA 92262 build@ nei • • Y Z g m J J z _O H z w H z V w c� a U) • • • • Esser Air Conditioning and Heating • • 36665 Bankside Drive,Suite C'Cathedral City,CA 92234 • Phone 7603244550 ' Alt Phone 760-568-0075 ` %mu.esserac.com • • • April 26,2013 • • Councilmember Joseph De Coninck • Chair,Executive Committee • Coachella Valley Association of Governments 73-710 Fred Waring Drive • Palm Desert,CA 92260 RE: MOVING FORWARD WITH SB 555 PACE PROGRAM FOR THE COACHELLA VALLEY • • Dear Councilmember De Coninck and Executive Committee Members: • As CVAG considers options for creating a regional PACE (Property Assessed Clean Energy) • financing district, I urge you to move forward with the Clean Energy Coachella Valley • program by Ygrene. • Unemployment remains high in the Coachella Valley, and the stakes for contractors couldn't be • higher. Over the next five years, a successful PACE program could create 3,000 new jobs, more than $200 million in project financing, and another$500 million in related economic • benefits for the Coachella Valley. This is a huge opportunity and the key is selecting a PACE • program model that works and a provider dedicated to making the program work locally. • As a local Coachella Valley contractor, I could not be more enthusiastic about the potential of • PACE. We know from experience that property owners in our region need financing options for energy efficiency and renewable energy upgrades. But PACE will mean nothing for my business • if the program doesn't successfully fund projects. That's why I support Ygrene's Clean Energy • program. Ygrene offers the only program with these essential elements: • • Committed and available funding. Customers won't follow through with a project • unless financing is easily accessed, available up front, and projects can get started • immediately_ Ygrene's easy to understand program pre-approves properties, approves projects within 24 hours,and has immediately available funding. • • • Local Commitment to the Coachella Valley: Ygrene's local energy centers, local contractor training,grassroots marketing, and property owner outreach are key to creating • the unique program that the Coachella Valley deserves. • • Local Contractor Support and Local Jobs: Ygrene's program makes the entire • process simple and easy for contractors, and supports us from start to finish. The • program provides comprehensive training,will support us in marketing PACE to property • owners throughout the Coachella Valley, and gives us the tools and resources to • efficiently manage projects and grow our business. J • • Councilmember Joseph De Coninck • Chair,Executive Committee • April 26,2013 Page 2 • • • • Local Marketing and Outreach. Ygrene is the only program provider that will offer • robust marketing tailored to the individual cities and designed to ensure maximum • participation in the program. Read:more projects,more jobs. • Please make the responsible decision — include Clean Energy Coachella Valley by Ygrene as a • PACE financing option to property owners in our region. It's the only program that can make • PACE a large-scale reality, and it is essential to jumpstarting activity and creating jobs in the • construction industry. It's also the only program I want to work with and will recommend to my • customers. In short,it works and it puts local contractors back to work. • Sincerely, • ESSER AIR CONDITIONING&HEATING • Tim Esser • • • • • • • • • • t; t; c t • • • • ,- W. L. Vickers Construction, Inc • 33562 Yucaipa Blvd, Bldg 4-439 . Yucaipa, Ca 92399 Phone:909-910-2643 Email: Walt@wlvickersconstruction.com • • Councilmember Joseph De Coninck Chair, Executive Committee • Coachella Valley Association of Governments • 73-710 Fred Waring Drive • Palm Desert, CA 92260 • RE: MOVING FORWARD WITH SB 555 PACE PROGRAM FOR THE COACHELLA VALLEY • • Dear Councilmember De Coninck and Executive Committee Members: As CVAG considers options for creating a regional PACE(Property Assessed Clean Energy)financing • district, I urge you to move forward with the Clean Energy Coachella Valley program by Ygrene. • Over the next five years,a successful PACE program could create new jobs, provide$200 million in • project financing, and another$500 million in related economic benefits for the Coachella Valley. This is a great opportunity for all concerned. • As a authorized PACE Contractor, I could not be more enthusiastic about the potential of PACE. We • know from experience that property owners in our region need financing options for energy efficiency • and renewable energy upgrades. That's why I support Ygrene's Clean Energy program. Ygrene offers • the only program with these essential elements: • • Committed and available funding. Customers won't follow through with a project unless financing is easily accessed,available up front, and projects can get started immediately. • Ygrene's easy to understand program pre-approves properties,approves projects within 24 • hours, and has immediately available funding. • • Local Commitment to the Coachella Valley: Ygrene's local energy centers, local contractor • training, grassroots marketing, and property owner outreach are key to creating the unique • program that the Coachella Valley deserves. • • Local Contractor Support and Local Jobs: Ygrene's program makes the entire process simple • and easy for contractors,and supports us from start to finish. The program provides comprehensive training,will support us in marketing PACE to property owners throughout the • Coachella Valley, and gives us the tools and resources to efficiently manage projects and grow • our business. • Local Marketing and Outreach. Ygrene is the only program provider that will offer robust • marketing tailored to the individual cities and designed to ensure maximum participation in the • program. Read: more projects, more jobs. • Please include Clean Energy Coachella Valley by Ygrene as a PACE financing option in our region-it works • and puts local contractors back to work. • Sincerely, • • Walt Vickers • www.wivickersconstruction.com www.vickersconstructiongrp.com www.americanl80svnergies.com • • • • • • • • • • � � � • • • • • • • • • • � • • � • � V4v1000v00 low NOOP0 , � Y Z Q J CO J J Q Z _0 H Z W H Z_ U) W ( Q d U) H l • • • • • • • • • April 22,2013 • • Councilman Joseph De Coninck • Chair, Executive Committee Coachella Valley Association of Governments • 73-710 Fred Waring Drive • Palm Desert, CA 92260 • RE: MOVING FORWARD WITH SB 555 PACE PROGRAM FOR THE • COACHELLA VALLEY • • Dear Councilman De Coninck and Executive Committee Members: • 1 have been involved with PACE since its birth. I worked for the City of Palm Desert for • nine years where the Energy Independence Program (EIP)was first implemented. I know • its value. I have seen it firsthand. I believe the Coachella Valley needs to implement a PACE program,and now. During my time with the City of Palm Desert I received a • staggering amount of phone calls and email inquiries about the Palm Desert EIP. These • calls came in from all over the country and some even from out of the country. A vast • amount of these inquiries came from residents in our own Coachella Valley, wondering why they couldn't take advantage of Palm Desert's EIP and how they could get their • respective city involved. I know the interest in this program is already there. 1 am a resident and father of three here in the City of Indio. If there were a PACE program available for my city right now,my wife and I would already be on board. • • There are numerous advantages to approving this item and moving it quickly including: • • Committed and Available Funding: This is the single most important factor for property owners. Clean Energy CVAG by Ygrene is the only PACE • program that offers us pre-approved, up-front financing with the lowest fees of • any PACE program. That means I can get my project financed up front without • any headache or delay and get the project moving quickly with savings much • sooner. • A Successful Program Model: Ygrene's program builds upon the already • familiar and successful Palm Desert EIP and Set To Save programs. • . Local Commitment to the Coachella Valley: Local contractors will benefit, more local jobs will be created, property owners will see the savings instead of • paying outrageous energy rates,and the money will circulate within the • Coachella Valley, increasing revenues for the cities(in the form of taxes,permits • and other fees)ensuring a stronger economic area. • Property owners need an easy process to get projects done efficiently. They need easy • approval with no out-of-pocket costs,knowledgeable local staff that can guide them • • • • through the process, and a program with a proven track record. Ygrene's program can offer these things. I completely support this program and urge you to make a motion to approve this item now so that the Coachella Valley can finally have a PACE program implemented. Thank you, Benjamin n 47401 Cal . Rosarito Indio, CA 92201 �i V m I f t Crystal Crawford<crystal.crawford@ygrene.us> • PACE • ValetVkieo@aol.com<VaWVAeo@eol.conc Wed,Apr 24.2013 at 7:14 PM To:kbanows@cvag.org Cc:crystal.crawford@ygrene.us • • Council Member Joseph De Conreck Chair,Executive Committee • CVAG Katie Barrows • Director of Eivronnental Resources CVAG Dear Councilmember De Coninck and Executive Committee Members: • As a proud resident of Palm Desert not only did I participate in the Palm Desert PACE program(solar and pod pump)but I had the prMlege to work as the Program • Maager/Comnvz*Outreach Manager for the ground-breaking energy efficiency program,Set To Save.Since 2008 the City of Palm Desert and the Set To Sane representatives were instrumental in reaching out to the commurey to educate the residents and business owners about the great things the program had to offer,such as CFL lighting,A/C tyre-ups,sharing Ups and ideas on how to lower utility consumption and informing the residents and business owners about the PACE ban program for energy upgrades. • • I attended the February 25th CVAG meeting to team more about the future of the PACE program here in the Coachella Valley and to educate nyselF whet will he offered to the residents and business owners.I world like to share my experience in dealing with our residents here in Palm Desert. Short and simple,we have a large population of senors who are weary of outside companies and who wart to"keep it kcar. We had several occasions when we tried to use out of area vendors and the • residents were not happy I believe we lave enough local talent here in our Valley and reed to do everytting possible to steer any new work to our local contractors. My past experience has shown m that our residents wart a kcal presence.Sue,thirgs can be done over the phone,but how good would it feel to know that there is a • local office that one can go to for assistance,or even complain,if reed be.I strongly believe that it is very importance that there is a local office to educate our residents and business owners to ensue the success of arty new PACE program Thank you, • Mark Wasson • • • • • • • • • • • • • • • • • • • • • • • • • Y Z Q J m } J J Q Z W F Z W C7 Q a U) CVAG PACE Program Cost Comparison: Ygrene & HERO i Program Feature YGRENE ENERGY FUND PFM GROUP/CALIFORNIA HERO Fees Commercial Residential Commercial Residential Project Amount $100,000 $30,000 $100,000 $30,000 Interest Rate 6.95%' 6.95%' 7.0%2 8.25%2 Project Funding Date April 1, 2013 April 1, 2013 April 1, 2013 April 1, 2013 Security Deposit/Interest Reserve $3,033.003 $921.00' $299.584 $90.17 Capitalized Interests $1,784.53 $541.89 $3,257.76 $1,155.65 Program Admin & Underwriting $250.00 $250.00 $2,773.87' $784.916 Recording Fee $250.00 $250.00 $95.00 $95.00 Application Fee (Ygrene)/Annual Admin Fee (HERO) $50 _ $50 $300.00 $25.00 Energy Pro Software (Ygrene) _ $450' $50' _ - - $1,275,98: ($1,212.19 $427.76: ($261.06(WRCO% Cost Recovery/Conduit Issuer $100.00 (CVAG) $100.00 (CVAG) (WRCOG), $63.79 (CVAG)) $16.70 (CVAG)) Total Closing Costs - $2,952.668 $817.839 Total Financed/Bonded $105,917.5310 $32,162.89'0 $110,954.85 $33,396.32 Annual Payment $9,881.22 $3,000.54 $10,773.35 $3,490.01 Term 20 years 20 years 20 years 20 years Total Payment(over 20 years) $194,591.404 $59,089.604 $215,467.00 $69,800.39 _. Contractor Fee $3,000.0011 $900.0011 j Interest rate is fixed at the time a property owner enters into a contractual assessment for each project.The interest rate for the Ygrene PACE program is based on prime plus 3.2%;it may periodically change to be responsive to market conditions and support program sustainability. ' Interest rate is fixed at the time a property owner enters Into a contractual assessment for each project.Investors that have committed capital have set the Initial Interest rate at a level that has not changed since HERO program launch;future changes will be negotiated by the PFM Group as financial advisor on behalf of participating cities and counties. 3 The Ygrene security deposit is an interest reserve which is fully refundable upon completion of the special tax payments assuming the property owner did not miss any payments over the term of the loan.The security deposlt would be refunded or applied to the last payment.The security deposlt is a reserve fund that is a credit enhancement required by Ygrene's Initial funding partners.In California,the interest reserve is currently calculated as three percent(3%)of the sum of the construction amount plus the program fees;it is put up by the property owner and Is rolled Into the financing. ° PFM has Indicated that the commercial HERO program wlll likely not require a reserve fund.The HERO Interest Reserve Is not refundable. 5 Capitalized Interest Is the amount required for payment of the first Interest payment and is calculated from the closing date of April 1,2013. 6 These program administration and underwriting fees are included in the Closing Costs for each project.For comparison purposes,the Program Admin&Underwriting fees are shown separately from other closing costs for HERO. ' Ygrene provides Energy Pro software($50(residential)or$450(commercial) a Commercial:Total closing costs of 5.50%made up of 2.5%for Origination,Marketing and Program Administration(Samas Capital);$1,109.55(1%)for Legal/Bond Counsel(BB&K);$554.77 (0.50%)for Assessment Administratlon(DTA);$388.34(0.35%)for Placement Agent(WCAH); $1,275.98(1.15%)for Conduit Issuer(WRCOG and NAG costs under hybrid HERO-see table); with the"Hybrid HERO"model,CVAG would receive 0.05%($63.79)to cover administrative costs;$750 flat fee for Financial Advisor(PFM);$150 flat fee for Trustee(TBD). 9 Residential:Total closing costs of 5.63%made up of 2.50%Origination,Marketing and Program Administration(Renovate America(RA));$333.96(1%)for Bond Counsel(BB&K);$166.98 (0.50%)for Assessment Administration(DTA);$116.99(0.35%)for Placement Agent(WCAH); $427.76(1.28%)for Conduit Issuer(WRCOG and CVAG costs under hybrld HERO-see table); with the"Hybrid HERO"model,CVAG would receive 0.05%($16.70)to cover administrative costs;WRCOG pays$150 flat fee for financial advisor(PFM)from their fee;RA pays Trustee (TBD)$50 from their fee. 30 Property owner would have option of Including the security deposit and capitalized Interest in the project financing with a total financed amount of$105,917.53 for commercial and $32,162.89 for residential or pay these costs up front for a total financed amount of$101,100.00 for commercial and$30,700.00 for residential. 11 Contractor Fee is paid by contractor(not property owner)to the District for software,support,marketing,and program operations. CVAG PACE Program Features Comparison: Ygrene & HERO Program Feat YGRENE ENERGYFUND PFM GROUP/ CALIFORNIA HERO Enabling legislation SB 555 AB 811 (httv://www.leginfo.ca.gov/pub/11-12/bill/sen/sb 0551- (htti)://www.energy.ca.gov/recovery/documents/ab 811 bill 200 06001=` -"' `^ ` ") 80721 cha tered. d Eligible Properties Public and private property Existing private property Time to Launch 6 months 6 months Interest Rate Prime + 3.2% = 6.95% 7% (commercial), 8.25% (residential) Property Owner 1. Maximum 85% Loan-to-Value 1. Max 90%loan to value Eligibility 2. Assessment Maximum 10%of Fair Value 2. Current on mortgage payments and property taxes 3. No Property Tax Delinquency for 3 Years 3. No bankruptcy for 7 years 4. No Mortgage Delinquency for 3 Years 4. Improvement costs< 15% of market value(residential), 20%of 5. Maximum Annual Property Taxes of 5% Fair Market Value market value (commercial) 6. Funding Restricted to Eligible Improvements 7.All Contractors Must be Ygrene Certified 8. Projects Subject to Local Permit Requirements 9. Eligible Rebates and Incentives Deducted from Funding _ 10. Benefits-to-Cost Ratio Greater than One(Commercial Only) Program Funding Warehouse line of credit; local bank funding, long-term Warehouse line of credit; Public/private capital markets, Private securitization placement of bonds issued by California HERO Risk to local 1. no effect on jurisdiction credit rating 1. no effect on jurisdiction credit rating Jurisdiction 2. no risk from default 2. no risk from default Validation Required_ yes yes Cost to local govt No cost (cost recovery available) No cost Customercontact Local Energy Center, Website, Call Center? Website, Call Center, Trained Contractors Physical Presence Local Energy Center CVAG office as point of contact. Energy center would require additional local funding Branding Local customization, Clean Energy CVAG HERO brand is an option Website One Click Pre-Qualification One minute pre-qualification Contractor Support Free Training, project mgmt. software, individual advisor for Free Training, project mgmt. software, each contractor, contractors as "sales force' contractors as "sales force' Opt Out/Out Clause Termination by either party with 2 year transition period to allow Participating cities can opt out at any time outstanding projects, assessments to be completed CVAG Exec. CVAG Executive Committee must authorize contracts, . With HERO Hybrid model, CVAG could have limited role Committee Role establish district, have program oversight Independent CVAG Yes . CVAG stand alone program not available Program? Flexibility in design, branding, individual city customization . Under HERO Hybrid, WRCOG is responsible for program _ implementation. CVAG could participate for our region Outreach & Marketing Website, direct sales, advertising, workshops Website, PR, outreach, workshops Program Partners Willdan Financial, Fidelity National Financial Green Samas Capital, BB&K, Renovate America, David Taussig & Assoc. nn � AA � � AA0, 0A111111, Aob a 0000900900000ee0000000000000 A.OF PPLM SA iZ u ,n CITY COUNCIL STAFF REPORT Cq<I FO RN�P DATE: June 5, 2013 CONSENT SUBJECT: APPROVE AN AGREEMENT WITH THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG) FOR THE IMPLEMENTATION OF A PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM FROM: David H. Ready, Executive Director BY: Office of Sustainability SUMMARY Consideration of approving an Implementation Agreement between the City of Palm Springs and the Coachella Valley Association of Governments to implement a PACE program. The Executive Director of the Coachella Valley Association of Governments (CVAG) contacted the CVAG Technical Advisory Committee on May 8, 2013, asking that CVAG member agencies consider the attached Implementation Agreement for a Property Assessed Clean Energy (PACE) program. PACE allows property owners to obtain financing using their property to fund clean energy projects (e.g. installation of solar panels). The funding source is private financing available to the property owner through Ygrene, a private financial company. The CVAG Executive Committee and the Energy & Environmental Resources Committee both recommended moving forward with steps to establish the CVAG PACE program which would be accomplished by the approval of the Implementation Agreement. RECOMMENDATION 1. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE IMPLEMENTATION AGREEMENT AUTHORIZING THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS TO IMPLEMENT, MANAGE AND ADMINISTER A PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM." 2. Authorize City Manager or his designee to execute all the necessary documents. BACKGROUND The City of Palm Springs has sought to implement a viable PACE program for several years as part of a various energy initiatives and/or programs that may reduce energy costs, reduce greenhouse gas emissions, and provide the property owners of Palm ITEM NO. 1— City Council Staff Report (June 5, 2013)--Page 2 (Resolution Approving CVAG PACE Implementation Agreement) Springs with options for developing clean energy projects, among other programs. One of the avenues to provide alternative energy options for Palm Springs property owners is to offer a PACE program. As a member of CVAG, the City has been participating over the last few months in a process to establish a CVAG PACE program and select a consultant to administer the program. As previously reported to the City Council, individual cities wishing to participate in CVAG's PACE program would be asked to adopt a resolution opting into the program. According to CVAG and the current PACE financing vendor (YGRENE), there is no cost to cities to participate in this program; all costs are borne by the property owners seeking funding for individual projects on their property. Based on this, there is no financial liability to the City to support or join the program. Those property owners who do participate will have a "special tax" placed on their property to ensure repayment. The purpose of the attached Implementation Agreement (Attachment No. 2) is to authorize CVAG to implement, manage and administer a PACE program. This Implementation Agreement will allow CVAG to establish a Community Facilities District within the CVAG jurisdictional boundaries of its member agencies. The formation of the District in itself DOES NOT impose any tax on properties; it only establishes the District. The District formation will allow voluntary participation in financing for clean energy projects by property owners wishing to participate. Those property owners will have the special tax placed upon their property. FISCAL IMPACT The financing and administration of the proposed regional PACE program are funded by the program implementer (Ygrene Energy Fund) and supported by private funding and administrative fees. Ygrene will provide reimbursement of administrative and other costs through the agreement with CVAG. Please refer to the attached information which was provided by CVAG for more detailed explanation of the PACE program and Implern ' n Agreement ttachment No. 3). Michele Mician y Thompson, Sustainability Manager Chief of Staff David H. Ready, Esq. City Manager Attachments: 1. Proposed Resolution and the Implementation Agreement 2. CVAG's Outline of Process and Projected Timeline 3. CVAG'S List of Eligible Improvements 02 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE IMPLEMENTATION AGREEMENT AUTHORIZING THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS TO IMPLEMENT, MANAGE AND ADMINISTER A PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM WHEREAS, the City of Palm Springs (the "City") is a party to the Coachella Valley Association of Governments Joint Powers Agreement dated on or about November, 1973, as amended and restated on June 26, 1989, and as further amended and restated on , 1998 (collectively, the "Joint Powers Agreement") pursuant to which the Coachella Valley Association of Governments ("CVAG") was formed to assist its members in coordinating and improving the planning and delivery of governmental responsibilities common to all member entities within the local region; WHEREAS, the Joint Powers Agreement provides that six or more members of CVAG, or if approved by the CVAG Executive Committee, two or more members of CVAG, may execute an implementation agreement for the purpose of authorizing CVAG to implement, manage and administer area-wide and regional programs in the interest of the local public welfare; WHEREAS, the City has determined that it is in the best interests of the City and is beneficial to its residents to execute and deliver an implementation agreement (the "Implementation Agreement") authorizing CVAG to implement, manage and administer one or more clean energy programs (each, a "Clean Energy Program") (1) by forming a community facilities district within the jurisdictional boundaries of the parties to the Implementation Agreement and levying special taxes therein to finance the acquisition, installation, and improvement of energy efficiency, water conservation, and renewable energy improvements permanently affixed to or on real property and in buildings, whether the real property or buildings are privately or publicly owned, all in accordance with the Mello-Roos Community Facilities Act of 1982 as amended, including as amended by Senate Bill No. 555 (Statutes 2011, chapter 493) ("SB 555") and other state laws, and/or (2) by forming an assessment district within the jurisdictional boundaries of the parties to the Implementation Agreement and levying special assessments therein to finance certain energy efficiency improvements as provided by AB 811, enacted by the State Legislature on June 30, 2008, and codified at Streets and Highways Code sections 5898.10 et. seq. ("AB 811 03 Resolution No. Page 2 WHEREAS, the Implementation Agreement authorizes the CVAG Executive Committee, in its sole discretion, to determine whether to establish a Clean Energy Program under SB 555 or a Clean Energy Program under AB 811 on behalf of the parties to the Implementation Agreement. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the City Council of the City of Palm Springs, as follows: Section 1. The City Council (the "Council') finds and determines that the foregoing recitals are true and correct. Section 2. The form of the Implementation Agreement as presented to the Council is hereby approved. The City Manager (or his or her designee) is hereby authorized and directed to execute and deliver the Implementation Agreement on behalf of the City, which shall be in substantially the form presented to this meeting, with such changes therein, deletions therefrom and additions thereto as the Finance Director of the City (or his or her designee) and the City Attorney of the City shall approve, which approval shall be conclusively evidenced by the execution and delivery of the Implementation Agreement. Section 3. The Finance Director of the City (or his or her designee) and such other City officers and employees, as appropriate, are hereby authorized and directed, jointly and severally, to do any and all things, and to execute and deliver any and all documents, which any of them may deem necessary or desirable in order to implement the Implementation Agreement and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution; and all such actions heretofore taken by such officers are hereby ratified, confirmed and approved. Section 4. All consents, approvals, notices, orders, requests and other actions permitted or required by the City in connection with the implementation, management or administration of any Clean Energy Program under the Implementation Agreement after the execution and delivery of the Implementation Agreement may be given or taken by the Finance Director of the City (or his or her designee) and the City Attorney of the City, without further authorization by this Council, and the Finance Director of the City (or his or her designee) and the City Attorney of the City are hereby authorized and directed to give any such consent, approval, notice, order or request and to take any such action which such officers may deem necessary or desirable to further the purposes of this Resolution. Section 5. This Resolution shall take effect from and after its adoption. To that end, the City of Palm Springs adopts this resolution approving the implementation agreement authorizing the Coachella Valley Association of Governments to implement, manage and administer a Property Assessed Clean Energy Program. ADOPTED THIS 5TH DAY OF JUNE 2013 04 Resolution No. Page 3 David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California 05 IMPLEMENTATION AGREEMENT AUTHORIZING THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS TO IMPLEMENT, MANAGE AND ADMINISTER THE CLEAN ENERGY PROGRAM THIS IMPLEMENTATION AGREEMENT is made and entered into on the day of , 2013 (this "Agreement') pursuant to Government Code Section 6500 et seq., other pertinent provisions of law, and the Coachella Valley Association of Governments Joint Powers Agreement entered into on or about November, 1973, as amended and restated on June 26, 1989, and as further amended and restated on June 16, 1998 (collectively, the"Joint Powers Agreement'),by and between six or more, or if approved by the C VAG Executive Committee, two or more, of the following public agencies: (a) County of Riverside (b) City of Coachella (c) City of Indio (d) City of La Quinta (e) City of Indian Wells (f) City of Palm Desert (g) City of Rancho Mirage (h) City of Cathedral City (i) City of Palm Springs 0) City of Desert Hot Springs (k) City of Blythe 1 06 RECITALS A. Each member and party to this Agreement is a governmental entity established by law with full powers of government in legislative, administrative, financial and other related fields. The Coachella Valley Association of Governments ("CVAG") was formed so that its members might coordinate and improve the planning and delivery of governmental responsibilities common to all member entities within the local region. B. The purpose of this Agreement is to authorize CVAG pursuant to the Joint Powers Agreement to implement,manage and administer a SB 555 Clean Energy Program and/or an AB 811 Clean Energy Program as described herein within the jurisdictions of the parties to this Agreement and to adopt ordinances and resolutions pertaining to same. C. Each party to this Agreement is a member of CVAG and is also a local agency defined in the Mello-Roos Community Facilities Act of 1982, as amended, including as amended by Senate Bill No. 555 (Statutes 2011, chapter 493) ( the"Act"). Each party has the power under the Act and other state laws to establish a clean energy program ("SB 555 Clean Energy Program")by forming a community facilities district within such party's jurisdictional boundaries and levying special taxes therein to finance the acquisition, installation, and improvement of energy efficiency, water conservation, and renewable energy improvements permanently affixed to or on real property and in buildings, whether the real property or buildings are privately or publicly owned (the "Authorized Improvements"), all in accordance with the Act. D. Section 53316.2 of the Act permits the legislative bodies of two or more local agencies to enter into a joint community facilities agreement or joint exercise of powers agreement to exercise any power authorized by the Act if the legislative body of each entity adopts a resolution declaring that the joint agreement would be beneficial to the residents of that 2 07 entity. Each party to this Agreement has determined that it is in its best interests and would be beneficial to its residents to join together with other parties to this Agreement and authorize CVAG to implement the SB 555 Clean Energy Program on behalf of such parties through the formation of a community facilities district under the Act within the jurisdictions of the parties to this Agreement and the levy of special taxes therein to finance the Authorized Improvements and to otherwise authorize CVAG to implement,manage and administer the SB 555 Clean Energy Program for the parties. This Agreement, together with the Joint Powers Agreement, is intended to satisfy the provisions of Section 53316.2 of the Act. At the sole discretion of the CVAG Executive Committee, said SB 555 Clean Energy Program would be in addition to or an alternative to an AB 811 Clean Energy Program. E. Assembly Bill 811, enacted by the State Legislature on June 30, 2008, and codified at Streets and Highways Code sections 5898.10 et seq. ("AB 811") permits cities and counties to assist property owners who desire to undertake energy-efficient improvements, such as high-efficiency air conditioners, or install renewable energy projects, such as solar panels. The CVAG members and parties to this Agreement have the common power to implement and administer contractual assessment programs pursuant to AB 811 (the "AB 811 Clean Energy Program") to finance such improvements and projects within their jurisdictions. Each party to this Agreement has determined that it is in its best interests and would be beneficial to its residents to join together with other parties to this Agreement and authorize CVAG to implement an AB 811 Clean Energy Program on behalf of such parties through a contractual assessment program as permitted by AB 811 to assist property owners in financing the cost of installing distributed generation renewable energy sources or making energy efficiency improvements that are permanently affixed to real property. At the sole discretion of the CVAG Executive 3 08 Committee, said AB 811 Clean Energy Program would be in addition to or an alternative to the SB 555 Clean Energy Program. I. PURPOSE AND POWERS. 1.1 Purpose of the Agreement. Each party to this Agreement has the common power under the Act and other state laws to establish the SB 555 Clean Energy Program by forming a community facilities district within such party's jurisdictional boundaries and levying special taxes therein to finance the acquisition, installation, and improvement of the Authorized Improvements, all in accordance with the Act. Each party to this Agreement also has the common power to establish a Clean Energy Program under AB 811 and other state laws, whereby contractual assessment financing can be made available to eligible property owners within that party's jurisdictional boundary. The purpose of this Agreement is to jointly exercise either or both of the foregoing common powers to implement, manage and administer the SB 555 Clean Energy Program and/or the AB 811 Clean Energy Program on behalf of the parties to this Agreement, (1)through the formation of a community facilities district within the jurisdictions of the parties to this Agreement and the levy of special taxes therein, in the case of the SB 555 Clean Energy Program, or(2) through the formation of an assessment district within the jurisdictions of the parties to this Agreement and the levy of special assessments therein, in the case of the AB 811 Clean Energy Program. The CVAG Executive Committee, in its sole discretion, shall determine whether to establish the SB 555 Clean Energy Program and/or the AB 811 Clean Energy Program on behalf of the parties to this Agreement. Each party hereto consents to the formation 4 09 of a community facilities district and/or establishment of an AB 811 Clean Energy Program by CVAG within such party's jurisdictional boundaries and consents to the assumption of jurisdiction by CVAG for the proceedings, the levy, collection and enforcement of the special tax and the incurrence of debt. 1.2 Powers. CVAG through its Executive Committee is hereby authorized to perform all necessary functions to fulfill the purposes of this Agreement. CVAG shall have the power in its own name to do any of the following: a. To exercise jointly the common powers of its members under the Act and/or AB 811 and other state laws to provide for the implementation, management and administration of the Clean Energy Program; b. To make and enter into contracts; C. To contract for the services of engineers, attorneys, planners, program administrators, financial consultants and separate and apart therefrom to employ such other persons, as it deems necessary; d. To incur debts, liabilities or obligations; e. To adopt rules,regulations, policies, bylaws and procedures governing the operation of CVAG in accordance with the enumerated purposes contained herein; f. To apply for an appropriate grant or grants under any federal, state, or local programs for assistance in developing the Clean Energy Program; g. To receive gifts, contributions and donations of property, funds, services and other forms of financial assistance from persons, firms, corporations and any governmental entity; h. To acquire, hold, and dispose of property; 5 10 i. To acquire, construct, manage, maintain, and operate any buildings, works, or improvements; j. To sue and be sued in its own name; and k. To the extent not herein specifically provided for, to exercise any powers in furtherance of the purpose of this Agreement in the manner of and according to the methods provided under applicable laws. II. ADMISSION AND WITHDRAWAL OF PARTIES 2.1 Admission of New Parties It is recognized that public entities, other than the original parties, may wish to participate in this Agreement. Additional Coachella Valley public entities may become parties to this Agreement upon such terms and conditions as provided by the General Assembly or Executive Committee. 2.2 Withdrawal Each party hereto shall participate in this Agreement until the purposes set forth in this Agreement are accomplished and shall not withdraw until the termination of this Agreement pursuant to Section 3.1. III. TERMINATION AND DISPOSITION OF ASSETS 3.1 Termination. The term of this Agreement shall extend to December 31, 2043 or the date on which a notice of cessation of special tax lien has been recorded with respect to all properties 6 11 participating in the Clean Energy Program and all debt incurred with respect to the Clean Energy Program is repaid in full and no longer outstanding, whichever is later. Subject in all respects to the preceding sentence, termination shall be accomplished by written consent of all of the parties in the event that no communities facilities district has been formed. 3.2 Distribution of Property and Funds. In the event of the termination of this Agreement, any property or funds of CVAG relating to the Clean Energy Program following the discharge of all obligations shall be disposed of as the Executive Committee shall determine. The Executive Committee shall consider, to the extent legally possible, the objective of returning to each party a proportionate return on the contributions made by such parties, less previous returns, if any. IV. MISCELLANEOUS 4.1 Effective Date. This Agreement shall be effective and CVAG shall be authorized to proceed under this Agreement when this Agreement has been executed by any six or more, or if approved by the CVAG Executive Committee, two or more, of the public agencies enumerated herein. 4.2 Partial Invalidity. If any one or more of the terms, provisions, sections, promises, covenants or conditions of this Agreement shall to any extent be adjudged invalid, unenforceable, void or voidable for any reason whatsoever by a court of competent jurisdiction, each and all of the remaining terms, provisions, sections, promises, covenants and conditions of this Agreement shall not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law. 7 12 4.3 Amendments. This Agreement may be amended from time to time with the approval of not less than two-thirds (2/3) of the members to the Agreement; provided that no amendment may be permitted that would impact powers or purpose of this Agreement or have an adverse impact on the Clean Energy Program. 4.4 Arbitration. Any controversy or claim between any two or more parties to this Agreement, or between any such party or parties and CVAG, with respect to disputes, demands, differences, controversies, or misunderstandings arising in relation to interpretation of this contract, or any breach thereof, shall be submitted to and determined by arbitration. The party desiring to initiate arbitration shall give notice of its intention to arbitrate to every other party to this Agreement and CVAG. Such notice shall designate as "respondents" such other parties as the initiating party intends to have bound by any award made therein. Any party not so designated but which desires to join in the arbitration may, within ten(10) days of service upon it of such notice, file a response indicating its intention to join in and to be bound by the results of the arbitration, and further designating any other parties it wishes to name as a respondent. Within twenty(20) days of the service of the initial demand for arbitration, the initiating party and the respondent shall each designate a person to act as an arbitrator. The two designated arbitrators shall mutually designate a third person to serve as arbitrator. The three arbitrators shall proceed to arbitrate the matter in accordance with the provisions of Title 9 of Part 3 of the Code of Civil Procedure, Section 1280 et. seq. The parties to this Agreement agree that the decision of the arbitrators will be binding. 8 13 4.5 Counterparts. This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts each of which, when so executed, shall be deemed to be an original, but all such counterparts shall constitute but one and the same instrument. 4.6 Execution. The Board of Supervisors of the County of Riverside and/or the City Councils of the cities enumerated herein have each authorized execution of this Agreement as evidenced by the authorized signatures below respectively. 9 14 COUNTY OF RIVERSIDE By Supervisor John J. Benoit Authorized Representative of the Board of Supervisors 15 CITY OF COACHELLA By Mayor Eduardo Garcia 16 CITY OF INDIO By Mayor Elaine Holmes 17 CITY OF LA QUINTA By Mayor Don Adolph 18 CITY OF INDIAN WELLS By Mayor Mary T. Roche 19 CITY OF PALM DESERT By Mayor Jan Harnik 20 CITY OF RANCHO MIRAGE By Mayor Richard W. Kite 21 CITY OF CATHEDRAL CITY By Mayor Kathleen DeRosa 22 CITY OF PALM SPRINGS By Mayor Stephen Pougnet 23 CITY OF DESERT HOT SPRINGS By Mayor Yvonne Parks 24 CITY OF BLYTHE By Mayor Oscar Galvan 25 Outline of Process & Projected Timeline for Formation of Regional PACE District Completed April29—Actions Taken by CVAG Executive Committee 1. Affirmed staff recommendation & RFP award 2. Approved Implementation Agreement— by 11:1 vote of member agencies 3. Approved Joint Representation Agreement - 4. Accepted and approved Cost Recovery Agreement In Process Month of May—CVAG staff will provide PACE program briefing to all Member Cities and the County of Riverside with Request for Review and Approval of Implementation Agreement May 9, 2013—CVAG Energy and Environmental Resources Committee meeting May 13. 2013—Technical Advisory Meeting (City Managers) - CVAG staff will provide PACE program briefing, and review of Third Party Administration (TPA) Agreement and Scope of Work/Exhibit A between CVAG and Ygrene June 3, 2013—CVAG Executive Committee Meeting If the implementation agreement has been approved by CVAG member jurisdictions, then: 1. Approve Resolution of Intention to form a Clean Energy (PACE) District 2. Approve Third Party Administration (TPA)Agreement and Scope of Work/Exhibit A 3. Accept/approve Boundary Map for Clean Energy District 4. Approve local goals and policies relating to Clean Energy (PACE) District 5. Set Second Hearing Date - no less than 30 days and no more than 60 days after first hearing (Schedule special meeting of Executive Committee) June 24, 2013—CVAG Executive Committee Meeting If implementation agreement is still being considered for approval by member jurisdictions as of the June 3 meeting, then the actions listed for completion at the June 3 Executive Committee meeting will be agendized for completion at the June 24 meeting. July 29?—Special Meeting of the CVAG Executive Committee (date to be determined) 1. Hold a public hearing regarding formation of a Clean Energy (PACE) District 2. Adopt Resolution of Formation establishing the District (minimum 30 days after adoption of Resolution of Intention to form a Clean Energy (PACE) District) 2. Adopt Staff Program Report 3. Authorize filing of Validation Action in Superior Court 26 CVAG List of Eligible Improvements: Ygrene Energy Fund List of Eligible Improvements. The following are the Eligible Improvements that will be available under the CVAG regional Clean Energy(PACE) PROGRAM. Additional and/or alternative improvements may be added on a case-by-case basis, by mutual agreement of both parties, or the list may be modified to comply with state law. i. Energy Efficiency. The following energy-efficiency measures are approved for all building types: • Air Sealing and Ventilation • Air Filtration • Building Envelope • Duct Leakage and Sealing • Bathroom,ceiling,attic,and whole house fans • Insulation • Defect Correction • Attic,floor,walls,roof,ducts • Weather-Stripping • Home Sealing • Geothermal Exchange Heat Pumps • HVAC Systems • Evaporative Coolers • Cooler must have a separate ducting system from air conditioning and heating ducting system • Natural gas storage water heater • Tank-less water heater • Solar water heater system • Reflective insulation or radiant barriers • Cool roof • Windows and glass doors • U value of 0.40 or less and solar heat gain coefficient of 0.40 or less • Window filming • Skylights • Solar tubes • Additional building openings to provide additional natural light • Lighting • Energy Star listed(no bulb,only retrofits) • Pool equipment • Pool circulating pumps ii. Non-residential Building Measures. The following measures are allowed for commercial and non- residential buildings,in addition to all applicable energy efficiency measures listed above: • Occupancy-Sensor Lighting Fixtures • SMART Parking Lot Bi-Level Fixture • SMART Parking Garage Bi-Level Fixtures • SMART Pathway Lighting • SMART Wall Pack Fixtures • Task Ambient Office Lighting • Classroom Lighting • Refrigerator Case LED Lighting with Occupancy Sensors • Wireless,daylight lighting controls • Kitchen Exhaust Variable Air Volume Controls • Wireless HVAC Controls&Fault Detection 27 iii. Solar Equipment. Eligible solar equipment for both residential and commercial properties includes: • Solar thermal hot water systems • Solar thermal systems for pool heating • Photovoltaic systems(electricity) • Emerging technologies-following the Custom Projects track and subject to CVAG approval. iv. Custom Projects. The below measures are examples of Custom Projects that will be considered for PROGRAM funding: • Building energy-management controls • HVAC duct zoning-control systems • Irrigation pumps and controls • Lighting controls • Industrial-and process-equipment motors and controls • Fuel cells • Wind-turbine power system • Natural gas • Hydrogen fuel • Other fuel sources(emerging technologies) • Co-generation(heat and energy) v. Water-Conservation Measures. • Faucet aerators • Core-plumbing system • Gray-water system • Instantaneous hot-water heater • Recirculation hot-water system • Demand initiated hot-water system • Hot-water pipe insulation • Irrigation-control system • Irrigation system • Rainwater cistern • Low-flow showerhead • High-efficiency toilets • Demand water softener • Whole-house water-manifold system • Cooling-condensate reuse • Cooling-tower conductivity controllers • Deionization • Filter upgrades • Foundation drain water • Industrial-process water-use reduction • Pre-rinse spray valves • Recycled water source • Urinals,Waterless urinal 28