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HomeMy WebLinkAbout2009-12-22 Item 9 CITY OF LADE OLSINOU DREAM EXTREME, REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: DECEMBER 22, 2009 SUBJECT: CITY OF LAKE ELSINORE IMPLEMENTATION AGREEMENT WITH WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS (WRCOG) REGARDING CALIFORNIA ASSEMBLY BILL 811 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. In response to AB 811 and over the past nine (9) months, WRCOG has been working with the federal government on acquiring the necessary funding sources to implement a sub - regional plan. On September 14, 2009 WRCOG passed Resolution Number 02 -10, which declared its intent to finance distributed generation renewable energy resources and energy efficiency improvements through the use of contractual assessments pursuant to the California Streets and Highways Code. On August 26, 2009 the City of Wildomar became the first jurisdiction to take action to participate in the Implementation Program. CC December 22, 2009 Item No. 9 Page 1 of 30 WRCOG AB 811 Implementation Program December 22, 2009 Page 2 of 4 Discussion The goal of the WRCOG AB 811 Implementation Program is to remove financial barriers that prevent property owners from installing energy efficiency upgrades by allowing long -term financing; payable through assessments on the property taxes. The jurisdiction and the interested property owner would enter into an agreement to finance the installation of energy efficiency sources that will be permanently fixed to the structure. WRCOG AB 811 Implementation Program Goals WRCOG is seeking to implement an Energy Efficiency Program on a sub regional scale that targets approximately 189,000 residential and 7,000 commercial properties. WRCOG is seeking approximately $300 million in funding sources, which provide approximately $17,500 per residential property and $30,000 per non - residential property. Furthermore, WRCOG estimates that the Program will create an estimated 3,200 new jobs in the subregion and retain potentially hundreds or thousands of existing jobs. WRCOG'S AB 811 Implementation Program Responsibility WRCOG will be responsible for the following items: • Identify and receive funding to implement the program. Currently, WRCOG is examining a number of different funding opportunities that include both federal and state agencies. • Conduct training sessions for contractors. • Conduct outreach for the program. • Work with applicable Utilities to have either energy and /or water conservation surveys conducted. • Receive, process, and approve /deny loan applications. • Receive and answer questions form the public on the Program. • Track and report on job creation and job retention in the subregion. It should be noted that the City of Lake Elsinore's responsibilities is to provide its intent to participate in the WRCOG AB 811 Implementation Program by approving the attached resolution and implementation agreement and to process all applicable permits for home and business owners as required by the Lake Elsinore Municipal Code (LEMC). Eligible Improvements to Lake Elsinore Residents/Business Owners WRCOG is currently in the process of formulating a formal eligible listing of improvements that can be financed under the Program. These include by are not limited to: • Geothermal exchange heat pumps. • Home Electric Vehicle (EV) charging installations. CC December 22, 2009 Item No. 9 Page 2 of 30 WRCOG AB 811 Implementation Program December 22, 2009 Page 3 of 4 • Natural gas storage water heater. • Tankless water heater. • Windows and glass doors. Solar thermal systems. • Photovoltaic (roof) systems. Example of Costs/Savinqs /Payments to Lake Elsinore Residents/Business Owners WRCOG provided staff an example of the costs, savings, and payments that a Lake Elsinore residential /commercial property owner would be presented with, should they decide to participate in the AB 811 Implementation Program. The example is as follows: Avg. Home Electric Bill (annual): $2,300 (Source: Alliance to Save Energy). Heating and Cooling System: 45% of electric bill (Estimate, Source: Trane). Install Energy Efficient Heating and Ventilation (HAV) system: $10,000 (Estimate). Energy Savings (new vs. old): 40% energy savings for HAV system (Source: Trane). Customer Savings: $414 per year or $34.50 per month. Tax Credit: 30% of cost up to $1,500 (Source: IRS). AB 811 Program: Finance $8,500 over 15 years at 4% interest rate to be paid back on tax bill. Approximate Tax Bill: $754.44 per year or $62.87per month. Fiscal Impact There would be minimal fiscal impact to the City as once the resolution and agreement is adopted by the City Council, 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. CC December 22, 2009 Item No. 9 Page 3 of 30 WRCOG AB 811 Implementation Program December 22, 2009 Page 4 of 4 Recommendations 1. Adopt a resolution to consent to include properties within the City's incorporated area in the Western Riverside Council of Governments contractual assessment program to finance distributed generation renewable energy sources and energy efficiency improvements. 2. Adopt the draft implementation agreement between Western Riverside Council of Governments and the City of Lake Elsinore in order to implement Assembly Bill (AB) 811. Prepared by: Justin Carlson Redevelopmen Agency Analyst Reviewed by: Tom Weiner r" Director of Community Development Approved by: Robert A. Brady !1 City Manager ' Attachments: 1. City of Lake Elsinore "Financing Energy Efficiency and Water Conservation Retrofits Improvements" slide presentation (dated October 29, 2009 and provided by WRCOG). CC December 22, 2009 Item No. 9 Page 4 of 30 RESOLUTION NO. 2009 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY'S INCORPORATED AREA IN THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS CONTRACTUAL ASSESSMENT PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENCY IMPROVEMENTS WHEREAS, the City of Lake Elsinore (the "City ") is committed to the development of renewable energy sources and energy efficiency improvements, reduction of greenhouse gases, and protection of our environment; and WHEREAS, in Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (the "Act "), the Legislature has authorized cities and counties to assist property owners in financing the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently fixed to their property (the "Improvements ") through a contractual assessment program; and WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the jurisdictions that are members of the Western Riverside Council of Governments ("WRCOG ") would promote the purposes cited above and assist the member agencies of WRCOG (each, a "Member Agency" or, together, "Member Agencies "), including the City in reducing its greenhouse gas emissions; and WHEREAS, the City wishes to provide innovative solutions and cost - effective methods for its property owners to achieve greater energy efficiency and independence, and in doing so cooperate with WRCOG in order to efficiently and economically assist property owners in financing such Improvements; and WHEREAS, WRCOG has authority to establish a contractual assessment program ("the Program") as permitted by the Act, the Joint Powers Agreement of the Western Riverside Council of Governments, originally made and entered into April 1, 1991, as amended to date, and the Implementation Agreement by and between WRCOG and the affected Member Agencies related to 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 real property; and WHEREAS, WRCOG is conducting an analysis to determine the feasibility of the Program, and to develop parameters pursuant to the Act for implementation and administration of the Program; and CC December 22, 2009 Item No. 9 Page 5 of 30 WHEREAS, the City wishes to participate with WRCOG in the Program if WRCOG adopts the Program, under terms and conditions to be agreed to by the City and WRCOG; and WHEREAS, State law permits WRCOG to offer participation in the Program to property owners in incorporated areas of any Member Agency so long as the City Council or Board of such Member Agency approves the proposed Resolution of Intention (defined below) to establish the Program, consents to the inclusion in the Program of properties in the incorporated area within such Member Agency and consents to the Improvements to be done within such incorporated area and the assumption of jurisdiction thereover by WRCOG for the purposes described above; and WHEREAS, this City Council has reviewed WRCOG's proposed Resolution of Intention to establish the Program entitled "Resolution of the Western Riverside Council of Governments Declaring its Intention to Finance Distributed Generation Renewable Energy Sources and Energy Efficiency Improvements Through the Use of Contractual Assessments" ( "Resolution of Intention ") attached hereto as Exhibit A; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The City Council of the City of Lake Elsinore does hereby resolve, determine, and order as follows: 1. This City Council finds and declares that property in the City's incorporated area will be benefited by the Improvements proposed in the Resolution of Intention. 2. This City Council hereby supports WRCOG's ongoing feasibility analysis and development of the Program. 3. Before the Program is implemented in the City, the City and WRCOG shall reach an agreement addressing any conditions the City wishes to impose on participating properties within the City. 4. This City Council hereby approves the proposed Resolution of Intention, substantially in the form attached hereto as Exhibit A. 5. This City Council hereby finds and determines that in the event it is necessary for the Executive Committee to make minor, nonsubstantive changes to the Resolution of Intention; such minor, nonsubstantive changes do not require the approval of this City Council. 6. This City Council consents to inclusion in the Program of all of the properties in the incorporated area within City and to the Improvements proposed in the Resolution of Intention within the City limits, upon the request and agreement of the CC December 22, 2009 Item No. 9 Page 6 of 30 property owner, in compliance with applicable laws, rules and regulations; and to the assumption of jurisdiction thereover by WRCOG for the purposes aforesaid. 7. The consent of this City Council constitutes assent to the assumption of jurisdiction by WRCOG for all purposes of the Program and authorizes WRCOG, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Improvements, including the levying, collecting and enforcement of the contractual assessments to finance the Improvements and the issuance and enforcement of bonds to represent such contractual assessments. 8. Staff is authorized and directed to coordinate with WRCOG staff to facilitate operation of the Program, and report back periodically to this City Council on the success of the Program. 9. 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 22 day of December 2009. MELISSA A. MELENDEZ, MAYOR CITY OF LAKE ELSINORE ATTEST: DEBORA THOMSEN, CITY CLERK APPROVED AS TO FORM: BARBARA LEIBOLD CITY ATTORNEY CC December 22, 2009 Item No. 9 Page 7 of 30 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF LAKE ELSINORE ) I, DEBORA THOMSEN, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Resolution No. 2009- was passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 22 day of December by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: DEBORA THOMSEN CITY CLERK CC December 22, 2009 Item No. 9 Page 8 of 30 EXHIBIT A WRCOG RESOLUTION OF INTENTION RESOLUTION NUMBER RESOLUTION OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS DECLARING ITS INTENTON TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENCY IMPROVEMENTS THROUGH THE USE OF CONTRACTUAL ASSESSMENTS PURSUANT TO CHAPTER 29 OF PART 3 OF DIVISION 7 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND SETTING A,,PUBLIC HEARING THEREON 1 ' WHEREAS, pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (the "Act"), the Joint Powers Agreement of the Western Ri 'era'rde Council of Governments (WRCOG), originally made and entered into April 1, 1991, as further 0"nended to date, and the Implementation Agreement by and between WRCOG and the affected Member Agencies related to the Program (defined below), the Western Riverside Council of Governments proposes to establish a contractual assessment program to assist property owners within the jurisdictional boundaries of WRCOG's member agencies (each a "Member Agency" and together, the "Member Agencies ") with the cost of installing distritpfed generation renewable energy sources or making energy efficient improvements4that are Permanently fixed to their property ( "Program "); and WHEREAS, in the opinion of this Executive f ,pmmittee " ". roperty in the Member Agencies would be benefited by including such properties Vogran‘ subject to the approval /consent of the City Council or Board of any Member Agtiricyriind WHEREAS, WRCOG is willing tq extendilhe` program into the incorporated areas of any Member Agency provided that the Cit of such Member Agency and WRCOG reach agreement on any conditions on operrtioni=,,of the Program requested by such Member Agency, prior to the Program being offerediin suci ,jurisdiction; NOW, THEREcOW BE OT RESOLVED by the Executive Committee of the Western Riverside Council of,Gove nrhlents as follows: Section 1: i!The Fxecutive Committee hereby finds and declares all of the following: A. pfthg, above recitals are true and correct. B. Energy conservation efforts, including the promotion of energy efficiency improvements to residential, commercial, industrial, or other real property, can reduce energy consumption, energy bills, and maximize existing energy production and transmission facilities. C. Energy efficiency improvements include improvements that promote water efficiency. The California Energy Commission prepared a staff report in November 2005 regarding California's water- energy relationship. The report states: "As California continues to struggle with its many critical energy supply and infrastructure challenges, the state must identify and address the points of highest stress. At the top of this list is California's water- energy relationship; water - related energy use consumes 19 percent of the state's electricity, 30 percent of its natural gas, and 88 billion gallons of diesel fuel every year — and this demand is growing.... [A] major portion of the solution is closer coordination between the water and energy sectors. . . . The state can meet energy and A -1 CC December 22, 2009 Item No. 9 Page 9 of 30 demand reduction goals ... by simply recognizing the value of the energy saved for each unit of water saved." The direct relationship between water use and energy use means that improvements to residential, commercial, industrial, or other real property which promote water efficiency also result in energy efficiency. D. The upfront cost of making residential, commercial, industrial, or other real property more energy 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 the Act for authorizing contractual assessments to finance the cost of energy efficiency improymeflts. E. A public purpose will be served by a contractual assessment program whereby WRCOG is authorized to finance the installation of distributed generation renewable energy sources and energy efficiency improvements that are permanently fixed to residential commercial, industrial, or other real property. F. Property located in incorporated areas of Member Agenoies within WRCOG will benefit from inclusion in the Program; and subject to the apprb* ! /consent of the City Council of any Member Agency, including such property in the Program w1ft ery,e the public purpose of promoting conservation efforts and addressing the issue of 09bal cliniete change. 41U Section 2. The Executive Committee he eby;1 determines that it would be convenient, advantageous and in the public interest4O destdn ,e the entire area of the Member Agencies as an area within which authorized WRCO officiale';;;and property owners may enter into contractual assessments pursuant to tti; "''Apt o't;,finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to real property. Section 3. The Executi% h Committee hereby declares that while the proposed distributed generation renewable J epprgyl, ; soirces and energy efficiency improvements are of such a character that they directly arid pe ult'afly affect property in the Member Agency jurisdictions within WRCOG and that the "p ii psesought to be accomplished by establishing a program to finance the installation of ,sucWi mprovements can best be accomplished by a single, comprehensive prog lath p ather then by separate programs administered by each Member Agency. Therefore, W" C'` proposes to make contractual assessment financing available to the owners of property, iir'a Member Agency to finance the installation of distributed generation renewable energy sp Prces"or energy efficiency improvements that are permanently fixed to real property. Section 4. The Executive Director of WRCOG (the "Executive Director") shall prepare or direct the preparation of, as part of the report required in Section 8 of this Resolution, and update, as the Executive Director deems necessary, a list of the distributed generation renewable energy sources or energy efficiency improvements that may be financed through WRCOG's contractual assessment financing program. The types of distributed generation renewable energy sources or energy efficiency improvements eligible for financing through contractual assessments include, but are not limited to: high efficiency air conditioning and ventilation systems, high performance windows, high efficiency and tankless water heating equipment, photovoltaic and thermal solar energy systems, cool roof systems, geothermal exchange heat pumps, zoning control and energy management control systems, high efficiency irrigation pumps and controls, natural gas fuel cells, wind and geothermal energy systems, and wall, ceiling and roof insulation upgrades. Section 5. The area within which contractual assessments may be entered into pursuant to the Act is all land within the defined boundaries of the Member Agencies of WRCOG. A -2 CC December 22, 2009 Item No. 9 Page 10 of 30 Section 6. No contractual assessment will be levied on a parcel situated within a Member Agency City area and no assessment contract will be entered into with the owner(s) of any such parcel unless and until (1) the City Council or Board of such Member Agency has, prior to the adoption of this resolution of intention, adopted a resolution consenting to inclusion of parcels within such Member Agency in the contractual assessment program and authorizing WRCOG to levy assessments, to impose the contractual assessment liens and to finance the eligible improvement on such parcels; and (2) the City Council or Board of such Member Agency has entered into an agreement with WRCOG addressing any conditions such Member Agency wishes to impose on participating properties in its jurisdiction. Section 7. The proposed arrangements for financing the contractual assessment financing program are briefly described as follows: WRCOG may issue bonds, note*,, lines of credit, and enter into other financing instruments or relationships pursuant to the Apt, the principal and interest of which would be repaid by contractual assessments. Alternatively or in' the interim, WRCOG, may advance its own funds to finance work, or enter into agreements with other public entities, including but not limited to the cities within WRCOG, to advance 'their funds to WRCOG to finance work. Such advances shall be repaid through contractual seSsments and WRCOG may sell bonds or other forms of indebtedness to re0boi;;e °Stich advances. The proposed financing arrangements may include the lease- purch' of p' (biic facilities pursuant to a lease or other contractual arrangement with a public financing authoritr,or non profit entity or other financing elements as may be determined necessary or' 'Useful to the financing of the contractual assessment program. In the event improvement bonds will be issued rsuant to Streets and Highways Code Section 5898.28 to represent assessments, all of tlla followjpg will apply to the extent not in conflict with the Act: "' (a) Provision is hereby made ffr, the'Issuance of improvement bonds, in one () y a or more series; (b) Notice is 4hereb, giver),„ that serial bonds or term bonds or both to represent unpaieassessments, and to bear interest at the rate of not to exceed 12 " per Cent per year, or such other amount authorized by law, payable "dp,nitally, shall be issued hereunder in one or more series in the manner prdvided by the Division 10 (to the extent not in conflict with the'A t), and the last installment of bonds shall mature a maximum of 39 years from the second day of September next succeeding 12 months frorriVeir date. (c) i RCOG hereby determines and declares that WRCOG shall not i' bligate itself to advance available funds from WRCOG treasury to cure any deficiency which may occur in the bond redemption fund. (d) WRCOG hereby determines that the principal amount of bonds maturing or becoming subject to mandatory prior redemption each year shall be other than an amount equal to an even annual proportion of the aggregate principal amount of the bonds, and the amount of principal maturing or becoming subject to mandatory prior redemption in each year plus the amount of interest payable in that year shall be an aggregate amount that is substantially equal each year, except for the moneys falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. A -3 CC December 22, 2009 Item No. 9 Page 11 of 30 (e) With respect to the procedures for collection of assessments and the advance retirement of bonds, WRCOG proposes to proceed under the provisions of Part 11.1 of Division 10 (commencing with Section 8760 of the Streets and Highways Code). Section 8. The Executive Committee hereby directs the Executive Director to prepare, or direct the preparation of, and file with the Board of Supervisors a report pursuant to Section 5898.22 of the California Streets and Highways Code at or before the time of the public hearing described in Section 8 hereof (the "Report"). The Report shall contain all of the following: (a) A map showing the boundaries of the territory within which contractual assessments are proposed to be offered. (b) A draft contract specifying the terms and conditions that wo be teed to by a property owner within the contractual assessment area and WRCOG. (c) A statement of WRCOG 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 ma± be financed through the use of contractual assessrents„ (ii) Identification of i , WRC �O( ,, official authorized to enter into contractual asssrtt nts onbehalf of WRCOG, (iii) A maximrnn aggregate dollar amount of contractual assessrtlenta and I (iv) A method ':for setting requests from property owners for financing through contractual assessments in priority order in the ,gvent that requests appear likely to exceed the authorization amount. (d) A plan for'Oising a capital amount required to pay for work performed pUcsuaftt to contractual assessments. The plan may include amounts to l a advanced by WRCOG through funds available to it from any source. T d �i'lan may include the sale of a bond or bonds or other financing fe ationship pursuant to Streets and Highways Code Section 5898.28. the 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. The 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 assessment program among the consenting property owners and WRCOG. Section 9. The Executive Committee hereby calls a public hearing to be held on , 2009 at a.m., or as soon thereafter as feasible, in the First Floor Board Chambers, County of Riverside Administrative Center, 4080 Lemon Street, Riverside, California, on the proposed Report and the Program. At the public hearing all interested persons may appear and hear and be heard and object to or inquire about the proposed Program or any of its particulars. Section 10. The Secretary of the Executive Committee is hereby directed to provide notice of the public hearing by publishing this Resolution once a week for two weeks, pursuant to A -4 CC December 22, 2009 Item No. 9 Page 12 of 30 Section 6066 of the California Government Code, in the f publication shall not occur later than 20 days before the date of such hearing. and the first Section 11. The contractual assessments levied pursuant to the Act, and the interest and any penalties thereon, shall constitute a lien against the lots and parcels of land on which they are made, until they are paid. The contractual assessments shall be collected in the same manner and at the same time as the general taxes of WRCOG on real property are payable and shall be subject to the same penalties, remedies and lien priorities in the event of delinquency and default. As a cumulative remedy, if any contractual assessment or installment thereof, or of any interest thereon, together with any penalties, costs, fees and other accrued charges are not paid when due, the Executive Committee may order that the same be collected by an action brought in superior court to foreclose the lien thereof as provided in Division 10 of the California Streets and Highways Code. Section 12. The Executive Committee hereby directs the Executive Director to determine and discuss in the Report what additional fees, if any will be charged, annually, by the Auditor Controller's office for incorporating the proposed contractual assessments, pn`the tax roll. PASSED AND ADOPTED at a Meeting of the Executive gpmmtttee of the Western Riverside Council of Governments held this day of 2009. AYES: Robin Lowe, Chair WRCOG Executive Committee , NOES: Ii�uitn II ���,, ABSENT: Rick Bishop, Secretary WRCOG Executive Committee'0 ABSTAIN: A -5 CC December 22, 2009 Item No. 9 Page 13 of 30 IMPLEMENTATION AGREEMENT BETWEEN THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS AND THE CITY OF LAKE ELSINORE TO IMPLEMENT ASSEMBLY BILL (AB) 811 This Implementation Agreement ( "Agreement ") is entered into as of December 22, 2009 between the WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS ('WRCOG "), a joint powers authority formed under Government Code sections 6500 et seq., and the 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 811, codified as Streets and Highways Code sections 5898.10 et seq. ( "AB 811") 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, WRCOG member agencies have the common power to implement and administer contractual assessment programs pursuant to AB 811 (the "Program ") to finance installation of distributed generation renewable energy sources or energy 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. CC December 22, 2009 Item No. 9 Page 14 of 30 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 public works, distributed generation renewable energy sources, or energy 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 Streets & Highways Code sections 5898.20(b) and 5898.22. The program will be administered in accordance with WRCOG JPA. 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. CC December 22, 2009 Item No. 9 Page 15 of 30 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 Att: Executive Director MEMBER AGENCY: City of Lake Elsinore 130 S. Main Street Lake Elsinore, Ca 92530 Att: 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 CC December 22, 2009 Item No. 9 Page 16 of 30 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. IN WITNESS WHEREOF, THE PARTIES HERETO have executed this Agreement to be in effect as of the date last signed below. By: Date: Executive Committee Chair Western Riverside Council of Governments CC December 22, 2009 Item No. 9 Page 17 of 30 By. Date: Robert A. Brady, City Manager By: Barbara Leibold, Date: City Attorney CC December 22, 2009 Item No. 9 Page 18 of 30 .., , au cp 4,.• PI% 4■■ :, 11 11 , 14 ri. .... CD o ,. . L . IIIII . , ! ' Z s (l) , , ;` :T.. 1 - :r ' m 0 1. -H '7, a7,- its"....iii.'''';`,,.' - w L w ..., — . . 1..,,• •:.t 0 E ct _ . ,..: .... c ).. . 1 4:L) ...... cb I t!''' ''" : 7 , ' — _ t 4 + 1 1•1 ti) ; , ■,..a -. . , 111 cp L , Ct Li.. . ) i....;.1. Fr , ........... 1.• . , r •12,.\.,V,,,, , ( „, • LLI '" 4- • ' I ..‘ ' , t.• CO ■ ?. Z 1 :D t ' •silifik 111 aft. 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