Loading...
HomeMy WebLinkAbout6/16/2010 - STAFF REPORTS - 2.S. .��,,p A L M SA4 ti O u N C' 'ej ° CITY COUNCIL STAFF REPORT PORN�P DATE: June 16, 2010 Consent Calendar SUBJECT: PROPOSED ADOPTION OF A RESOLUTION DECLARING INTENTION TO FORM AN ASSESSMENT DISTRICT TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY AND WATER EFFICIENCY IMPROVEMENTS FOR PROPERTY WITHIN THE CITY PURSUANT TO CHAPTER 29 OF PART 3 OF DIVISION 7 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND SETTING A PUBLIC HEARING THEREON FROM: David H. Ready, City Manager BY: Office of Sustainability and Community & Economic Development Department SUMMARY: The City Council will consider the first step in a two step process necessary for the adoption of a program to finance distributed generation renewable energy sources and the installation of energy and water efficiency improvements as authorized by the passage of Assembly Bill 811. The proposed resolution declares the intention of the City to form one or more assessment district to finance renewable energy and water efficiency improvements for property within the City. The second step of the process is to hold a public hearing to consider the formation of a one or more assessment districts and adoption of one or more programs pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.12). Each Assessment District will be a voluntary contractual assessment district to assist property owners with the cost of installing distributed generation renewable energy sources and making permanently affixed energy efficient and water efficient improvements to their property. The geographical boundaries of the City will be the boundaries of any assessment district. RECOMMENDATION: 1. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DECLARING ITS INTENTION TO FORM AN ASSESSMENT DISTRICT TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY AND WATER EFFICIENCY ITEM NO. City Council Staff Report June 16, 2010 -- Page 2 PACE Program IMPROVEMENTS FOR PROPERTY WITHIN THE CITY PURSUANT TO CHAPTER 29 OF PART 3 OF DIVISION 7 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND SETTING A PUBLIC HEARING THEREON 2. Set the public hearing for September 1, 2010. 3. Authorize the City Manager or his designee to execute all the necessary documents. BACKGROUND: In 2008 and 2009, the California Legislature adopted Assembly Bills 811 ("AB 811") and 474 ("AB 474") (codified at Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code) respectively, which authorize a legislative body of any city to determine, in the public interest, to designate the entire city or an area within the city as an Assessment District for the financing of distributed generation renewable energy sources and energy and water efficient projects. In AB 811, the legislature declared there was urgency in the state to commence conversion to energy conservation and efficiency, and thus AB 811 creates a streamlined process by which Assessment Districts may be established by contractual agreement with property owners to finance such conversions. The bill permits the installation of distributed generation renewable energy sources, such as solar power, or energy and water efficiency improvements that are permanently fixed to real property. The goal is to lower energy costs, enhance local businesses and create jobs. The proposed Resolution is the first step in a two-step process necessary for the adoption of a program under AB 811. This Resolution declares the intent of the City Council to form one or more assessment districts in order to cause the financing of energy and water efficiency improvements within the City. This Resolution also calls for a public hearing to be set which is required for the formation of an assessment district. After the public hearing, if the City determines to approve formation of one or more assessment districts, the City will adopt a resolution of formation at that time. One potential program provider is the Pacific Housing & Finance Agency, ("PHFA") a joint powers authority organized in part for the purpose of financing the construction and rehabilitation of housing, promote economic development, finance capital improvements, and issue revenue bonds to provide funds for these purposes. The City has been a member of PHFA since its formation in 1997. PHFA has approved an energy efficiency program under AB 811 which the City has the discretion to participate in. The Resolution on the Council's agenda provides the Council with the flexibility to designate the PHFA energy efficiency program as an approved program for the City at the time the Council approves the assessment district. The Resolution has been r, G RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DECLARING ITS INTENTION TO FORM AN ASSESSMENT DISTRICT TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY AND WATER EFFICIENCY IMPROVEMENTS FOR PROPERTY WITHIN THE CITY PURSUANT TO CHAPTER 29 OF PART 3 OF DIVISION 7 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND SETTING A PUBLIC HEARING THEREON. The City Council of the City of Palm Springs, finds: A. The City of Palm Springs (the "City") is a charter city organized and existing pursuant to the laws of the State of California. B. The upfront cost of making residential, commercial, industrial, or other real property more energy and/or water efficient prevents many property owners from making those improvements. To make those improvements more affordable and to promote the installation of those improvements, the Legislature has authorized an alternative procedure pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.10), as may be amended from time to time (the "Act'), for authorizing assessments to finance the cost of energy and water efficiency improvements. C. A public purpose will be served by one or more contractual assessment programs whereby one or more public agencies designated by the City Council by agreement or as otherwise allowed under the Act (the "Agency") to finance installation of distributed generation renewable energy sources and energy and water saving property improvements that are permanently fixed to residential, commercial, industrial, or other real property (collectively the "Program")- D. Pursuant to the Act and the Program, the Agency will form a contractual assessment district or districts and the Agency will loan participating property owners within the assessment district funds secured by an assessment lien on the subject property. E. It is convenient, advantageous, and in the public interest to designate the entire City, including any area that may be annexed to the City, as the area within which the Agency and property owners may enter into contractual assessments to finance distributed generation renewable energy sources and the installation of energy and water efficiency improvements and to declare its intention to form one or more contractual assessment districts and take the steps necessary for the creation of such assessment district or districts. 4 NOW THEREFORE, the City Council of the City of Palm Springs resolves as follows: Section 1. The City Council hereby declares its intention to form one or more contractual assessment districts pursuant to the Act for the purposes set forth in the Recitals of this Resolution. Any such assessment district shall be for the purposes of providing the installation of distributed generation renewable energy sources and energy and water efficiency improvements that are permanently fixed to qualifying real property, including but not limited to: high efficiency air conditioning and ventilation systems, high performance windows, high efficiency pool equipment, high efficiency water heating equipment, photovoltaic and thermal solar energy systems, zoning control and energy management control systems, high efficiency irrigation pumps and controls and natural gas fuel cells, wind and geothermal energy systems, wall, ceiling and roof insulation upgrades, water savings equipment and dual pane windows. Section 2. The City Council further determines that the boundaries of the assessment district established pursuant to the Act shall be the geographical boundaries of the City. Section 3. The assessment district or districts shall be financed by the issuance of bonds of the Agency pursuant to the Program. The principal and interest on the Bonds shall be secured by the payments of the contractual assessments and the assessment liens on the real property upon which the improvements are placed. The assessments shall be collected at the same time and in the same manner as the general taxes of the City. The assessment shall be subject to the same penalties and lien priorities as the general taxes of the City in the event of delinquency and default. In the event of a delinquency in the payment of assessments by a property owner, and said delinquency continues for 150 days, the Agency may commence proceedings to foreclose the assessment lien on the property. Interest on the Bonds shall not exceed the current legal maximum of 12% per year or such other amount authorized by law. The maturity date of the Bonds shall not exceed three quarters ('/) of the life of the equipment financed. Section 4. The City Council hereby directs the City Manager or the City Manager's designee (the "Authorized Officer") to prepare, or cause to be prepared, and file with the City Council a report pursuant to Section 5898.22 of the Act (the "Report") at or before the time of the public hearing described in Section 5 hereof. The Report shall contain all of the following: 5 (a) A map showing the City boundaries as the boundaries of the assessment district. (b) A draft contract between the property owner and the Agency. (c) A statement of the City policies concerning contractual assessments including all of the following: (i) Identification of types of facilities, distributed generation renewable energy sources, or energy efficiency improvements that may be financed through the use of contractual assessments; (ii) Identification of a city official authorized to enter into, or who will direct the Executive Director of the Agency to enter into contractual assessments on behalf of the assessment district; (iii) A maximum aggregate dollar amount of contractual assessments; and (iv) A method for setting requests from property owners for financing through contractual assessments in priority order in the event that requests appear likely to exceed the authorization amount- (d) A plan or plans of bond financing, or any other plan for raising the capital amount required to pay for work performed pursuant to contractual assessments, by the City or the Agency pursuant to the Act. Each plan shall include a statement of, or method for, determining the interest rate and time period during which contracting property owners would pay any assessment. Each plan shall provide for any reserve fund or funds. The plan shall provide for the apportionment of all or any portion of the costs incidental to financing, administration, and collection of the contractual assessments under the Program among the consenting property owners and the assessment district. Section 5. The City Council hereby authorizes noticing a public hearing to be held on September 1, 2010 at 6:00 PM, or as soon thereafter as feasible, at the Council Chambers, 3200 East Tahquitz Canyon Way, Palm Springs, California 92262, on the proposed Report and the assessment district or districts. At the public hearing, all interested persons may appear and hear and be heard and object to or inquire about the proposed contractual assessment financing program or any of its particulars. The City Clerk is hereby directed to provide notice of the public hearing by publishing this Resolution once a week for two weeks, pursuant to Section 6066 of the California Government Code, and the first publication shall not occur later than 20 days before the date of such hearing. 6 Section 7. The City Council hereby directs the Authorized Officer to enter into consultations with the County of Riverside Auditor-Controller's Office in order to reach an agreement with the County regarding the collection of the contractual assessments by the County on the tax roll. PASSED, APPROVED, AND ADOPTED by the City of Palm Springs City Council at its regular meeting held this 16th day of June, 2010, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN NOTICE OF PUBLIC HEARING CITY COUNCIL CITY OF PALM SPRINGS PROPOSED ENERGY AND WATER EFFICIENCY ASSESSMENT DISTRICT NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a public hearing at its meeting of September 1, 2010. The City Council meeting begins at 6:00 p.m., in the Council Chamber at City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs. The purpose of this hearing is to consider the formation of an Energy and Water Efficiency Assessment District and the identification and/or adoption of programs to finance improvements as provided in Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898,10). The Assessment District will be a voluntary contractual Assessment District to assist property owners with the cost of installing distributed generation renewable energy sources and making permanently affixed energy efficient and water efficient improvements to their property. The geographical boundaries of the City will be the boundaries of the Assessment District. REVIEW OF INFORMATION: The staff report and other supporting documents regarding this matter are available for public review at the City Hall between the hours of 8:00 a.m. and 6:00 p.m., Monday through Thursday. Please contact the Office of the City Clerk at (760) 323-8204 if you would like to schedule an appointment to review these documents. At the hearing any person may present oral or written testimony. The City Council will consider all objections or protests, if any, to (i) the proposed improvements, (ii) the proposed Assessment District boundaries, and (iii) the proposed Assessment District contractual assessment. Response to this notice can be made verbally at the Public Hearing and/or in writing before the hearing. Written comments can be made to the City Council by letter (for mail or hand delivery) to: James Thompson, City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Any challenge of the proposed in court may be limited to raising only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at, or prior, to the public hearing. (Government Code Section 65009(b)(2)). An opportunity will be given at said hearing for all interested persons to be heard. Questions regarding this case may be directed to Michele Mician at (760) 323-8214. Si necesita ayuda con esta carta, porFavor Ilame a la Ciudad de Palm Springs y puede hablar con Nadine Fieger telefono (760) 323-8245. James Thompson, City Clerk 3