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HomeMy WebLinkAboutCity Council Item No. 09CITY OF LADE '7LSINO DREAM EXTREME REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: FEBRUARY 22, 2011 SUBJECT: MODIFICATION TO THE CITY OF LAKE ELSINORE IMPLEMENTATION AGREEMENT WITH WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS (WRCOG) REGARDING CALIFORNIA ASSEMBLY BILL 811 FOR COMPLIANCE WITH ASSEMBLY BILL 474 Background On July 21, 2008, the California State Assembly signed into law Assembly Bill (AB) 811, which authorized all cities and counties in California to designate areas within which willing property owners could voluntarily enter into contractual assessments to finance the installation of distributed renewable generation, as well as energy efficiency improvements, that are permanently fixed to the property owner's residential, commercial, industrial, or other real property. These financing arrangements would allow property owners to finance renewable generation and energy efficiency improvements through low-interest loans that would be repaid as an item on the property owner's property tax bill. The contractual assessments could not be used to finance the purchase or installation of appliances that are not permanently fixed to the real property. On December 22, 2009 the City Council approved a resolution which included the City of Lake Elsinore in the Western Riverside Council of Governments (WRCOG) agreement to assist in the financing of energy efficient upgrades to properties within the city of Lake Elsinore. In 2009, AB 474 was enacted to expand on the voluntary contractual assessment agreements between cities, counties, and property owners on the financing of energy efficiency improvements outlined in AB 811. AB 474 expands this financing method to include water conservation and efficiency methods. AGENDA ITEM NO. PAGE I • OF /(5- MODIFICATION TO THE AB 811 Implementation Program February 22, 2011 Page 2 of 3 Discussion AB 474 is an approach that can be taken to incentivize citizens to conserve water in their homes and businesses. AB 474 is designed to encourage and facilitate the installation of permanent water conservation and efficiency improvements on private property through a voluntary financing program between public entities and property owners. Water efficiency improvements that can be financed include, but are not limited to, permeable pavement, recycled water piping, drip irrigation, cisterns, or other water saving devices. In March of 2010, WRCOG modified its agreement with the State to allow the inclusion of water efficiency improvements under the AB 811 financing method. WRCOG has requested that participating jurisdictions amend their original agreements to reflect the intent of AB 474. Fiscal Impact There would be minimal fiscal impact to the City in making this modification as this program will also be financed under the original agreement regarding AB 811. As identified in December 2009, the City's only responsibility is to process all applicable building permits for resident homeowners and businesses. It should be noted that the City will also collect all applicable building permit fees during permit issuance. Other than this requirement, the day-to-day responsibilities of implementing the Program will be handled by WRCOG. Furthermore, the project will have a positive impact to the City as the program will create the opportunity for local jobs as Lake Elsinore residents apply to participate in the program. Recommendations 1. Adopt a resolution to consent to the modification of the City of Lake Elsinore's Implementation agreement with Western Riverside Council of Governments (WRCOG) regarding California Assembly Bill 811 for participation with Assembly Bill 474. 2. Adopt the draft implementation agreement between Western Riverside Council of Governments and the City of Lake Elsinore to implement a contractual assessment program to finance the installation of distributed generation renewable energy sources or energy or water efficiency improvements. PA0E O ®F__!j-2_-_ MODIFICATION TO THE AB 811 Implementation Program February 22, 2011 Page 3 of 3 Prepared by: Justin Carlson Redevelopment Agency Analyst Approved by: Robert A. Brad yf{ City Manager It AGENDA ITEM NO. 9 PAGE_3_OF Id- AGENDA ITEM NO. 9 PAGE T OF IcP- RESOLUTION NO. 2011 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, MODIFYING ITS CONSENT TO THE INCLUSION OF PROPERTIES WITHIN THE CITY'S INCORPORATED AREA IN THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS CONTRACTUAL ASSESSMENT PROGRAM TO CONSENT TO THE ADDITION OF WATER EFFICIENCY IMPROVEMENTS TO THE IMPROVEMENTS AUTHORIZED TO BE FINANCED THROUGH SUCH PROGRAM WHEREAS, the City Council of the City of Lake Elsinore did, by the adoption of Resolution No. 2011- ("Resolution Granting Consent"), grant its consent to the inclusion of all properties in the incorporated area with the City in the Western Riverside Council of Governments ("WRCOG") contractual assessment program (the "Program") to assist property owners in financing the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently affixed to their properties; and WHEREAS, WRCOG is proposing to establish and implement the Program pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (the "Act"); and WHEREAS, subsequent to the adoption of the Resolution Granting Consent, AB 474 was enacted into law and amended the Act to add water efficiency improvements to the improvements authorized to be financed through a contractual assessment program; and WHEREAS, WRCOG has proposed to add water efficiency improvements to the improvements authorized to be financed through the Program; and WHEREAS, this City Council has determined that the addition of water efficiency improvements to the improvements authorized to be financed through the WRCOG Program would be in the best interests of the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 1. This City Council hereby finds and declares that property in the City's incorporated area will be benefited by the ability to finance the installation of water efficiency improvements to their properties and, therefore, this City Council hereby consents to the addition of water efficiency improvements to the improvements authorized to be financed through the WRCOG Program. 2. Except as provided in paragraph one (1) above, all other provisions of the Resolution Granting Consent shall remain in full force and effect. P41NC3A ITEM NO. PAGE-®F Lc` 3. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the WRCOG Executive Committee. SECTION 2. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 22nd day of February 2011. AMY BHUTTA, MAYOR CITY OF LAKE ELSINORE ATTEST: VIRGINIA BLOOM, CITY CLERK APPROVED AS TO FORM: BARBARA LEIBOLD CITY ATTORNEY AGENDA ITEM NO. q PAGE__L,e__OFI,;- STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF LAKE ELSINORE ) I, Virginia Bloom, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Resolution No. 2011- was passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 22nd day of February by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: VIRGINIA BLOOM CITY CLERK AGENDA ITEM NO. PAGE 7/ OF 1,3- DRAFT IMPLEMENTATION AGREEMENT BETWEEN THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS AND THE CITY OF LAKE ELSINORE TO IMPLEMENT A CONTRACTUAL ASSESSMENT PROGRAM TO FINANCE THE INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES OR ENERGY OR WATER EFFICIENCY IMPROVEMENTS This Implementation Agreement ("Agreement') is entered into as of February 22, 2011 between the WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS ("WRCOG"), a joint powers authority formed under Government Code sections 6500 et seq., and City of Lake Elsinore ("Member Agency"), a public agency formed under the laws of the State of California. WRCOG and the Member Agency are sometimes collectively referred to in this Agreement as the "Parties" or individually as a "Party." RECITALS WHEREAS, various cities within Riverside County and the County of Riverside entered into a Joint Powers Agreement on April 1, 1991, as amended from time to time, to create WRCOG ("JPA"); and WHEREAS, Member Agency is a signatory to the JPA; and WHEREAS, Article VIII of JPA permits any WRCOG member agency, when authorized by the Executive Committee, to execute an Implementation Agreement for the purpose of authorizing WRCOG to implement, manage and administer area-wide and regional programs in the interest of the local public welfare; and WHEREAS, the JPA permits WRCOG, when authorized by an Implementation Agreement, to make and enter into such contracts, incur such debts and obligations, assess contributions from the members, and perform such other acts as are necessary to the accomplishment of the purposes of such agreement; and WHEREAS, on June 30, 2008, the State Legislature enacted Assembly Bill 81 Ito amend Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.12) ("Chapter 29") to permit 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; and WHEREAS, on September 10, 2009, the State Legislature, intending to address chronic water needs throughout California by permitting voluntary individual efforts to improve water efficiency, enacted Assembly Bill No. 474, which became effective on January 1, 2010, to further amend Chapter 29 to authorize Chapter 29 to be used to finance the installation of water efficiency improvements that are permanently fixed to residential, commercial, industrial, agricultural, or other real property, including but not limited to, recycled water connections, synthetic turf, cisterns for storm water recovery, and permeable payment; and 1 AGENDA ITEM NO. 9 PAGE OF_L--~'- WHEREAS, WRCOG member agencies have the common power to implement and administer contractual assessment programs pursuant to Chapter 29 (the "Program") to finance installation of distributed generation renewable energy sources or energy or water efficiency improvements within their jurisdictions; and WHEREAS, WRCOG and Member Agency desire to enter into this Agreement in order to authorize WRCOG to implement and administer the Program on behalf of Member Agency; and WHEREAS, the Executive Committee has authorized Member Agency to enter into this Agreement. NOW, THEREFORE, THE PARTIES HEREBY UNDERSTAND AND AGREE AS FOLLOWS: AGREEMENT Section 1: Establishing the Program WRCOG will undertake proceedings pursuant to AB 811 to establish the Program to make contractual assessment financing available to eligible property owners within the jurisdictional boundary of Member Agency. Section 2: Establishing Eligible Improvements WRCOG shall identify the kinds of distributed generation renewable energy sources or energy or water efficiency improvements that may be financed ("Eligible Improvements") under the Program. Section 3: Boundary of Program WRCOG, in coordination with Member Agency, shall describe the boundaries of the area within which contractual assessments under the Program may be entered into, which may include the entire jurisdictional area of Member Agency or a lesser portion thereof. Section 4: Financing the Installation of Eligible Improvements WRCOG shall develop and implement a plan for the financing of the purchase and installation of the Eligible Improvements under the Program. Section 5: Ongoing Administration WRCOG shall be responsible for the ongoing administration of the Program, including but not limited to producing education plans to raise public awareness of the Program, soliciting, reviewing and approving applications from residential and commercial property owners participating in the Program, establishing contracts for residential and commercial property owners participating in Program, establishing and collecting assessments due under the Program, and providing reports as required by Chapter 29. The Program will be administered in accordance with WRCOG JPA. AGENDA ITEM NO. I FAGE_~_OF L Section 6: Phased Implementation The Parties recognize and agree that implementation of the Program as a whole can and may be phased as other WRCOG member agencies execute similar Implementation Agreements. The Member Agency entering into this Agreement will obtain the benefits of and incur the obligations imposed by this Agreement in its jurisdictional area, irrespective of whether other WRCOG member agencies enter into similar Implementation Agreements. Section 7: Term The term of this Agreement shall be for twenty (20) years unless modified or extended pursuant to this Agreement. Section 8: Termination Upon ninety (90) days written notice, either Party may terminate this Agreement. Termination shall not relieve the Party of its proportionate share of any debts or other liabilities incurred under this Agreement prior to the effective date of the Party's notice of termination. Section 9: Environmental Review WRCOG shall be the lead agency under the California Environmental Quality Act for any environmental review that may required in implementing or administering the Program under this Agreement. Section 10: Cooperative Effort Member Agency shall cooperate with WRCOG by providing information and other assistance in order for WRCOG to meet its obligations hereunder. Member Agency recognizes that one of its responsibilities related to the Program will include any permitting or inspection requirements as established by the Member Agency. Section 11: Miscellaneous Provisions 11.1 Notice. Any and all communications and/or notices in connection with this Agreement shall be either hand-delivered or sent by United States first class mail, postage prepaid, and addressed as follows: WRCOG: Western Riverside Council of Governments 4080 Lemon Street, 3rd Floor. MS1032 Riverside, CA 92501-3609 Attn: Executive Director AGENDA ITEM NO.___-9- PAGE_LD OF__Lo_1- MEMBER AGENCY City of Lake Elsinore 130 S. Main Street Lake Elsinore, CA 92530 Attn: City Manager 11.2 Entire Agreement. This Agreement, together with the JPA and WRCOG By-laws, constitutes the entire agreement among the Parties. This Agreement supersedes any and all other agreements, either oral or in writing, among the Parties with respect to the subject matter hereof and contains all of the covenants and agreements among them with respect to said matters, and each Party acknowledges that no representation, inducement, promise of agreement, oral or otherwise, has been made by the other Party or anyone acting on behalf of the other Party that is not embodied herein. 11.3 Successors and Assigns. This Agreement and each of its covenants and conditions shall be binding on and shall inure to the benefit of the Parties and their respective successors and assigns. A Party may only assign or transfer its rights and obligations under this Agreement with prior written approval of the other Party, which approval shall not be unreasonably withheld. 11.4 Attorney's Fees. If any action at law or equity, including any action for declaratory relief is brought to enforce or interpret the provisions of this Agreement, each Party to the litigation shall bear its own attorney's fees and costs. 11.5 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, as applicable. 11.6 No Third Party Beneficiaries. This Agreement shall not create any right or interest in the public, or any member thereof, as a third party beneficiary hereof, nor shall it authorize anyone not a Party to this Agreement to maintain a suit for personal injuries or property damages under the provisions of this Agreement. The duties, obligations, and responsibilities of the Parties to this Agreement with respect to third party beneficiaries shall remain as imposed under existing state and federal law. 11.7 Severability. In the event one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this Agreement and the remaining parts of this Agreement shall remain in full force and effect as though such invalid, illegal, or unenforceable portion had never been a part of this Agreement. 11.8 Headings. The paragraph headings used in this Agreement are for the convenience of the Parties and are not intended to be used as an aid to interpretation. 11.9 Amendment. This Agreement may be modified or amended by the Parties at any time. Such modifications or amendments must be mutually agreed upon and executed in writing by both Parties. Verbal modifications or amendments to this Agreement shall be of no effect. AGENDA ITEM No.9 PACE OF IN WITNESS WHEREOF, THE PARTIES HERETO have executed this Agreement to be in effect as of the date last signed below. By: Date: By: By: Executive Committee Chair Western Riverside Council of Governments Robert A. Brady, City Manager Legal Counsel Date: Date: PAGE ~pF