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HomeMy WebLinkAboutCity Council Agenda Item No. 20CITY OF LADE - LSIIYOIZE DREAM REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: THOMAS P. EVANS INTERIM CITY MANAGER DATE: SEPTEMBER 25, 2012 SUBJECT: WRCOG STATEWIDE HERO PROGRAM Recommendation Approve the Amendment to the Joint Powers Agreement of the Western Riverside Council of Governments to Permit the Provision of PACE Services statewide. Background The Executive Committee of the Western Riverside Council of Governments ( WRCOG) has directed staff to expand on the success of its HERO Program and implement a Statewide HERO Program. The new program will be called PACE (Property Assessment Clean Energy). The HERO Program allows for property owners to finance energy efficiency, water conservation, and renewable energy projects and to pay that financing back through a voluntary assessment on the property owner's tax bill. The Program has both a residential and commercial component and more information can be found at www.beariversidehero.com Since its launch in late 2011, WRCOG's HERO Program has been very successful. Currently, WRCOG's HERO Program (residential component only) has approved nearly $50 million in financing for projects. Because of the Program's success, WRCOG staff has been examining the possibility of creating a Statewide HERO Program that would allow other jurisdictions in the state to offer HERO to its property owners under a program that would be administered by WRCOG. Jurisdictions that elect to participate in WRCOG's Program would see considerable benefit as they would avoid the costs AGENDA ITEM NO. 20 Page 1 of 1 I WRCOG Statewide Hero Program September 25, 2012 Page 2 and considerable time it takes to develop a program from scratch. WRCOG, by providing a turn -key administrative service, would benefit by receiving revenues for the services provided. There are two options that WRCOG can pursue in meeting its objective to implement a statewide program which include 1) using WRCOG's current Joint Powers Agreement (JPA) or 2) create new JPA with a member agency. WRCOG staff is in the process of examining both options and will be making further recommendations to the WRCOG Executive Committee regarding the pros and cons of each option. Discussion On June 4, 2012, the WRCOG Executive Committee directed WRCOG staff to develop the constructs for a Statewide HERO Program. On August 6, 2012, the WRCOG Executive Committee approved an Amendment to the Joint Powers Agreement of the Western Riverside Council of Governments to permit the provision of Property Assessed Clean Energy (PACE) services statewide. All WRCOG JPA member agencies must approve the amended JPA. Once the WRCOG JPA has been amended, WRCOG staff and its consulting team can begin marketing the Program to other agencies in the State for their consideration. Fiscal Impact None. Attachment: Amendment to the Joint Powers Agreement of the Western Riverside Council of Governments to Permit the Provision of PACE Services statewide. Prepared and Approved by: Thomas P. Evans Interim City Manager Page 2 of 1 I AMENDMENT TO THE JOINT POWERS AGREEMENT OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS TO PERMIT THE PROVISION OF PACE SERVICES This Amendment to the Joint Powers Agreement ( "Amended Agreement ") is made and entered into on the _day of , 2012, by and between seventeen cities located within Western Riverside County and the County of Riverside (collectively the "Parties'). RECITALS WHEREAS, seventeen cities located within Western Riverside County and the County of Riverside have entered into a Joint Powers Agreement on April 1, 1991, and through subsequent amendments thereto (the "JPA' ), to form the Western Riverside Council of Governments ( "WRCOG "); and WHEREAS, on July 21, 2008, Assembly Bill 811 ( "AB 811 ") was signed into law to amend Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code ( "Chapter 29 ") to authorize cities, counties, and cities and counties to establish voluntary contractual assessment programs to fund various renewable energy sources and energy efficiency improvements to property, commonly referred to as a Property Assessed Clean Energy ( "PACE ") program; and WHEREAS, the Legislative intent of AB 811 is to finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to residential, commercial, industrial, or other real property; and WHEREAS, Chapter 29 was subsequently amended by the enactment of AB 474 effective January 1, 2010, to enable a PACE program established pursuant to Chapter 29 to finance the installation of water efficiency improvements in addition to the improvements authorized to be financed pursuant to AB 811; WHEREAS, WRCOG is authorized to implement the purposes of Chapter 29 to establish a PACE program pursuant to the provisions of Government Code Section 6502; and WHEREAS, WRCOG has determined that it is within the best interests of the communities that it serves, and the State of California, for WRCOG to provide a PACE program pursuant to Chapter 29 as now enacted or as such legislation may be amended hereafter, including the operation of a PACE financing program within Riverside County as well as outside Riverside County; and WHEREAS, WRCOG desires to allow jurisdictions outside WRCOG's jurisdictional boundaries to participate in WRCOG solely for the purpose of facilitating WRCOG's implementation of PACE programs within their jurisdictional boundaries, but without providing 1 20323.00005 \7454300.5 Page 3 of 11 those local jurisdictions any of the rights common to the members within WRCOG's jurisdiction pursuant to the JPA; and WHEREAS, pursuant to Government Code sections 6500 et seq., the parties to the JPA desire to amend the JPA to allow for the provision of PACE services, including the operation of a PACE financing program within and outside Riverside County. 2 �z�x�x�:m:�x�sc xi xvvxy Page 4 of 11 MUTUAL UNDERSTANDINGS NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter stated, the Parties hereto agree as follows: Section 1: The last sentence of Section 2.1 of the Agreement shall be amended to read as follows" "Only the parties identified in this section and Associate Members approved under section 8.2 of this Agreement, if any, shall be considered contracting parties to this Agreement under Government code section 6502, provided that the rights of any Associate Member under this Agreement shall be limited solely those rights expressly set forth in a PACE Agreement authorized in section 8.2 of this Agreement." Section 2: The heading of Section VIII to the JPA is hereby amended to read as follows: "PACE IMPLEMENTATION AND PARTICIPATION AGREEMENTS; ASSOCIATE MEMBERSHIP ". Section 3: Section 8.2 shall be added to the JPA and shall read as follows: 8.2 PACE Agreements; Associate Membership. WRCOG shall be empowered to establish and operate one or more Property Assessed Clean Energy ( "PACE ") programs pursuant to Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code, and to enter into one or more agreements, including without limitation, participation agreements, implementation agreements and joint powers agreements and amendments thereto to fulfill such programs both within and outside the jurisdictional boundaries of WRCOG. WRCOG, acting through its Executive Committee, shall be empowered to establish an "Associate Member" status that provides membership in WRCOG to local jurisdictions that are outside WRCOG's jurisdictional boundaries but within whose boundaries a PACE program will be established and implemented by WRCOG. Said local jurisdictions shall become Associate Members of WRCOG by adopting one or more agreements (the "PACE Agreement ") on the terms and conditions established by the Executive Committee and consistent with the requirements of the Joint Exercise of Powers Act, being 5 of Division 7, Title 1 of the California Government Code (Sections 6500 et seq.) The 3 20323.00005 \7454300.5 Page 5 of 1 I rights of Associate Members shall be limited solely to those terms and conditions expressly set forth in the PACE Agreement for the purposes of implementing the PACE program within their jurisdictional boundaries. Except as expressly provided for by the PACE Agreement, Associate Members shall not have any rights otherwise granted to WRCOG's members by this Agreement, including but not limited to the right to vote, right to amend this Agreement, and right to sit on committees or boards established under this Agreement or by action of the Executive Committee or the General Assembly, including, without limitation, the General Assembly and the Executive Committee. Section 4: This amendment is to become effective in accordance with Section 9.1 of the JPA. Section 5: All other provisions and terms of the JPA are to remain unchanged. Section 6: This Amendment may be executed in counterparts. IN WITNESS WHEREOF, the Parties hereto have caused this Amended Agreement to be executed and attested by their officers thereunto duly authorized as of the date first above written. [SIGNATURES ON FOLLOWING PAGES] 0 20323.00005 \7454300.5 Page 6 of 11 SIGNATURE PAGE TO THE AMENDMENT TO THE JOINT POWERS AGREEMENT OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS TO PERMIT THE PROVISION OF PACE SERVICES ATTEST: City Clerk City of Banning ATTEST: City Clerk City of Calimesa ATTEST: City Clerk City of Canyon Lake I� ATTEST: City Clerk City of Corona 5 20323.00005 \7454300.5 CITY OF BANNING By Mayor CITY OF CALIMESA By Mayor CITY OF CANYON LAKE Mayor CITY OF CORONA By Mayor Page 7 of 11 ATTEST: City Clerk City of Eastvale Dated: ATTEST: City Clerk City of Hemet By: Dated: ATTEST: City Clerk City of Jurupa Valley ATTEST: City Clerk City of Lake Elsinore 0 20323.00005 \7454300.5 CITY OF EASTVALE By Mayor CITY OF HEMET Mayor CITY OF JURUPA VALLEY By Mayor CITY OF LAKE ELSINORE Mayor Page 8 of 11 ATTEST: City Clerk City of Menifee CITY OF MENIFEE m Mayor ATTEST: City Clerk City of Moreno Valley CITY OF MORENO VALLEY By Mayor ATTEST: City Clerk City of Murrieta CITY OF MURRIETA By Mayor ATTEST: City Clerk City of Norco CITY OF NORCO Mayor 20323.00005 \7454300.5 Page 9ofII ATTEST: City Clerk City of Perris ATTEST: City Clerk City of Riverside C ATTEST: City Clerk City of San Jacinto Dated: ATTEST: City Clerk City of Temecula I= 0 20323.00005 \7454300.5 CITY OF PERRIS By Mayor CITY OF RIVERSIDE Mayor CITY OF SAN JACINTO By Mayor CITY OF TEMECULA By Mayor Page 10 of 11 ATTEST: City Clerk City of Wildomar In ATTEST: County Clerk County of Riverside M 0 20323.00005 \7454300.5 CITY OF WILDOMAR Mayor COUNTY OF RIVERSIDE By Chairman Page I 1 of 11