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.1poRN•p CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 17, 2008 NEW BUSINESS
SUBJECT: DISCUSS THE IMPLEMENTATION OF AN ENERGY EFFICIENCY LOAN
PROGRAM (AB811), AMENDING THE BUDGET TO FUND THE
PROGRAM AND ESTABLISH THE ENERGY EFFICIENCY LOAN
PROGRAM FUND
FROM: David H. Ready, City Manager
SUMMARY
The City Council will consider the implementation and framework of an Energy
Efficiency Loan Program, fund the program, and establish a Program Fund and Cost
Centers.
RECOMMENDATION:
1. Direct staff to finalize the loan parameters and the Energy Efficiency Loan
Program policies, procedures and qualifications.
2. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE
ESTABLISHMENT OF A NEW FUND TO BE TITLED THE ENERGY
EFFICIENCY LOAN PROGRAM FUND AND THE CREATION OF
APPROPRIATE ACTIVITIES, COST CENTERS, AND ACCOUNT NUMBERS,
AND AMENDING THE BUDGET FOR FISCAL YEAR 2008-09 TO FUND THE
ENERGY EFFICIENCY LOAN PROGRAM.
STAFF ANALYSIS:
The City of Palm Springs has long been a leader in the pursuit of renewable energy and
energy conservation programs and their related benefits to citizens. Recent State
legislation (AB811) has made it possible for municipalities to finance distributed energy
generation and energy efficiency improvements undertaken by property owners; hence,
the City is developing an Energy Efficiency Loan Program based upon the State
enabling legislation.
The recommended action by the City Council supports the conceptual framework for
financing sustainable energy upgrades and directs staff to complete the details of the
program, pursue possible financing partners, finalize program timelines, and accomplish
other logistics. Over the next several weeks, staff will be working on various program
Item No. 5 • C •
City Council Staff Report
September 17, 2008-- Page 2
Energy Efficiency Loan Program
details, including the application process, participation qualifications, loan processing
and funding details.
The Energy Efficiency Loan Program will be structured on the premise of financing solar
and energy efficiency upgrades in the City with a voluntary assessment that is paid, with
interest, by the property owner on the owner's tax bill, pursuant the recently provided
authority to finance distributed energy and energy efficiency improvements utilizing
contractual assessments (Chapter 29 of Part 3 of Division 7 of the California Streets
and Highways Code).
Staff is recommending that an initial funding allocation be established in the amount of
$500,000 from the Diversion Facility Fund (Fund No. 125) to finance qualified energy
installations and energy efficiency upgrades.
FISCAL IMPACT:
Fund No. 125 the Diversion Facility Fund provides for the initial establishment of funds
for the loan program in the amount of $500,000. The fiscal impact is anticipated to be
neutral to the City over the loan period through the amortization of each loan with
interest.
David H. Ready, City r
Attachments:
Resolution Amending the Budget
12
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AUTHORIZING THE
ESTABLISHMENT OF A NEW FUND TO BE TITLED
ENERGY EFFICIENCY LOAN PROGRAM FUND AND THE
CREATIONS OF APPROPRIATE ACTIVITIES, COST
CENTERS, AND ACCOUNT NUMBERS, AND AMENDING
THE BUDGET FOR FISCAL YEAR 2008-09 TO FUND THE
ENERGY EFFICIENCY LOAN PROGRAM.
WHEREAS, the City desires to establish an Energy Efficiency Loan Program,
pursuant to recently adopted AB811, and fund the program; and
WHEREAS, Resolution No. 22265 approving the budget forthe Fiscal Year 2008-09
was adopted on June 18, 2008; and
WHEREAS, the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS
❑OES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Authorizes the Director of Finance and Treasurer to create a new special
fund to be titled the "Energy Efficiency Loan Program Fund," and directs the Director of
Finance and Treasurer to record the appropriate receipts and expenditures in this fund.
SECTION 2. Authorizes the Director of Finance and Treasurer to create the appropriate
activities, costs centers and account numbers as appropriate.
SECTION 3. Directs the Director of Finance to record inter-fund cash transfers as required
in accordance with this Resolution, and that Resolution No. 22265, adopting the Fiscal
Year 2008-09 budget is hereby amended as follows:
SECTION 4. ADDITIONS
Fund Activity Account Amount
Fund No_ Assigned To be Assigned $500,000
Energy Efficiency Loan
Pro ram Fund
SECTION 5. ADDITIONS
Fund Activity Account Amount
125 29361 $500,000
Diversion Facility Fund Fund Balance
Resolution No.
Page 2
PURPOSE: To initially fund the Energy Efficiency Loan Program.
ADOPTED THIS 17T" DAY OF SEPTEMBER, 2008.
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
RESOLUTION N0.
A RESOLUTION OF THE. CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AUTHORIZING THE
ESTABLISHMENT OF A NEW FUND TO BE TITLED
ENERGY EFFICIENCY LOAN PROGRAM FUND AND THE
CREATIONS OF APPROPRIATE ACTIVITIES, COST
CENTERS, AND ACCOUNT NUMBERS, AND AMENDING
THE BUDGET FOR FISCAL YEAR 2008-09 TO FUND THE
ENERGY EFFICIENCY LOAN PROGRAM.
WHEREAS, the City desires to establish an Energy Efficiency Loan Program,
pursuant to recently adopted AB811, and fund the program; and
WHEREAS, Resolution No. 22265 approving the budget for the Fiscal Year 2008-09
was adopted on June 18, 2008; and
WHEREAS, the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Authorizes the Director of Finance and Treasurer to create a new special
fund to be titled the "Energy Efficiency Loan Program Fund," and directs the Director of
Finance and Treasurer to record the appropriate receipts and expenditures in this fund.
SECTION 2. Authorizes the Director of Finance and Treasurer to create the appropriate
activities, costs centers and account numbers as appropriate.
SECTION 3. Directs the Director of Finance to record inter-fund cash transfers as required
in accordance with this Resolution, and that Resolution No. 22265, adopting the Fiscal
Year 2008-09 budget is hereby amended as follows:
SECTION 4. ADDITIONS
Fund Activity Account Amount
130 1290 58011 $500,000
Energy Efficiency Loan Energy Efficiency Energy Efficiency
Program Fund Loan Program Loan Pro ram
SECTION 5. ADDITIONS
Fund Activity Account Amount
125 29361 $500,000
Recycling Reserve for
Diversion Facility
Resolution No.
Page 2
PURPOSE: To initially fund the Energy Efficiency Loan Program.
ADOPTED THIS 17T" DAY OF SEPTEMBER, 2008.
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