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HomeMy Public PortalAbout08) 7.G. Adoption of Reso. No. 13-4904Temple City an Associate Member of the Western Riverside Council of GovernmentsAGENDA ITEM 7.G. COMMUNITY DEVELOPMENT DEPARTMENT DATE: April 16, 2013 MEMORANDUM TO: The Honorable City Council FROM: Jose E. Pulido, City Manag Via: Mark Persico, AICP, mmunity Development Director By: Adam L. Gulick, Associate Planner SUBJECT: ADOPTION OF RESOLUTION NO. 13-4904 MAKING TEMPLE CITY AN ASSOCIATE MEMBER OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS ALLOWING PROPERTY OWNERS TO VOLUNTARILY ENTER INTO A PROPERTY ASSESSED CLEAN ENERGY PROGRAM RECOMMENDATION: The City Council is requested to: a) Review and approve Resolution No. 13-4904 (Attachment "A") authorizing City of Temple City participation in the California Home Energy Renovation Opportunity Financing Program (HERO Program) administered by the Western Riverside Council of Governments (WRCOG); and b) Authorize the City Manager to execute the Joint Powers Agreement Amendment (Attachment "B") allowing Temple City to become an Associate Member of the WRCOG for purposes only related to implementing the California HERO Program. BACKGROUND: 1. On September 27, 2006, the Governor signed into law Assembly Bill 32 (AB 32), requiring that by the year 2020, the greenhouse gas levels in the state must be reduced to the emissions levels in 1990. 2. On July 21, 2008, the Governor signed into law Assembly Bill 811 (AB 811), allowing cities to establish voluntary contractual assessment programs that finance a wide variety of renewable energy projects, energy efficiency City Council April 16, 2013 Page 2 improvements and/or water conservation improvements. These programs are commonly known as Property Assessed Clean Energy (PACE) Programs. 3. In December 2011, the Western Riverside Council of Governments (WRCOG) partnered with Renovate America, Inc. in establishing a PACE Program to offer financing for renewable energy projects, energy efficiency improvements and/or water conservation improvements to approximately 550,000 housing units, which makes it the largest PACE Program in the nation. 4. In June 2012, the WRCOG Executive Committee directed the WRCOG staff to develop an infrastructure to construct a Statewide HERO Program. 5. In January 2013, San Gabriel Valley Council of Governments (SGVCOG) Energy, Efficiency and Natural Resources Committee received a presentation by the WRCOG regarding their HERO Program. 6. On February 4, 2013, the City Council was contacted by HERO Program staff informing them of their successful PACE Program that is currently implemented in Riverside County. The City Council directed staff to look into the implementing a similar program in the City. 7. On March 21, 2013, the San Gabriel Valley Council of Governments (SGVCOG) Governing Board received a presentation from WRCOG regarding the success of the HERO Financing Program. At the conclusion of the meeting, the SGVCOG Governing Board directed staff to bring back a Memorandum of Understanding between the SGVCOG and the WRCOG to their April 18, 2013 SGVCOG Governing Board meeting (Attachment "C"). ANALYSIS: The HERO Program is a turn -key sustainability program available to residential and commercial property owners which requires no general fund expenditure. The HERO program is administered by WRCOG staff with costs covered through an initial fee included in the property owner's contractual assessment and an annual administrative fee that is collected through the property owner's tax bill. The program has the potential to create jobs, increase property values, and reduce water and energy consumption. 1. Program Requirements In order to participate in the HERO Program, the property owner must meet the following requirements: • Have a clear title to the property; City Council April 16, 2013 Page 3 • Be current on property taxes; • Be current on mortgage payments; • Have at least 10% equity in the property; and • Have a project that falls within the required minimum ($5,000) and maximum (10% of the value of the property) assessment amounts. If a property owner is approved for a project, they sign a contractual assessment agreement agreeing to repay the amount financed over the designated period, and an assessment lien is recorded on the property to secure the financing. The low-interest loan is repaid as an assessment on the property tax bill over the designated loan period, and may be transferred to future eligible property owners. The project may be financed over a five, 10, 15 or 20 -year period, but the period must not exceed the "useful life" of the eligible project. 2. Eligible Projects The projects must be new permanently fixed products that are installed by a state licensed contractor who is registered to participate in the HERO Program; and new construction is not eligible. The following are examples of eligible projects: • Cool roofs; • Windows and glass doors; • Heating and air condition systems; • Insulation; • Solar thermal systems; • Photovoltaic systems (solar panels); • Light control systems; • Home sealing; and • Outside irrigation. 3. Benefits of HERO Program Adopting Resolution No. 13-4904 (Attachment "A") will allow the City to become an Associate Member of the WRCOG. As an Associate Member of the WRCOG, and following adoption of an Amendment to the Joint Powers Authority (Attachment "B"), residential and commercial property owners in the City would be eligible to participate in the HERO Program. Establishing a HERO Program would be beneficial for the community, as it would generate new jobs, increase property values, reduce energy use and costs, reduce water consumption, and lower greenhouse gas emissions in the community. Since 2012 the HERO Program has funded over $25 million in projects. The Federal Housing Financing Agency (FHFA), conservator of Fannie Mae and Freddie Mac loans, raised some concerns when PACE Programs began in 2009 City Council April 16, 2013 Page 4 due to the fact that the PACE Program has a higher priority lien than the actual mortgage on the property. FHFA issued a news release on June 15, 2012 stating that it directed Fannie Mae and Freddie Mac not to purchase any mortgages where PACE financing with a priority lien was placed on the underlying property. To address this issue, property owners participating in the HERO Program are required to sign a waiver acknowledging that they may have to repay the loan if they refinance or sell their home. 4. Supplement Housing Rehabilitation Programs Over the past couple of years, the City has experienced the elimination and reduction of various funding sources that financed the City's housing rehabilitation programs (i.e., the elimination of redevelopment Statewide and the reduction in Community Development Block Grant funding). To address these issues the City Council last month entered into a new agreement with San Gabriel Valley Habitat for Humanity to reinstate the Brush with Kindness Program. The HERO Program would provide another method for assisting residential and commercial property owners with water and energy efficiency improvements. Partnering with WRCOG and establishing a HERO Program would be beneficial for property owners and local contractors, in a way acting as an economic stimulus program. Additionally, the renewable energy and water improvements would allow the City to reduce its greenhouse gas emission levels, and supplement the City's Housing Rehabilitation Programs. CONCLUSION: The City Council is requested to adopt Resolution No. 13-4904 making the City an associate member of the Western Riverside Council of Governments allowing property owners to voluntarily enter into a property assessed clean energy program. FISCAL IMPACT: There would be no fiscal impact to the City because the HERO program is administered by WRCOG and paid for by administrative fees assessed on participating property owners. ATTACHMENTS: A. Resolution No. 13-4904 City Council April 16, 2013 Page 5 B. WRCOG Joint Powers Authority Amendment C. SGVCOG March 2013 Governing Board Meeting Highlights ATTACHMENT "A" RESOLUTION NO. 13-4904 RESOLUTION NO. 13-4904 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA, APPROVING THE AMENDMENT TO A CERTAIN JOINT POWERS AGREEMENT AND CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY'S JURISDICTION IN THE CALIFORNIA HERO PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY AND WATER EFFICIENCY IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE WHEREAS, the Western Riverside Council of Governments ("Authority") is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the "Act") and the Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the "Authority JPA'); and WHEREAS, Authority intends to establish the California HERO Program to provide for the financing of renewable energy distributed generation sources, energy and water efficiency improvements and electric vehicle charging infrastructure (the "Improvements") pursuant to Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code ("Chapter 29") within counties and cities throughout the State of California that elect to participate in such program; and WHEREAS, City of Temple City (the "City") is committed to development of renewable energy sources and energy efficiency improvements, reduction of greenhouse gases, protection of our environment, and reversal of climate change; and WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist property owners in financing the cost of installing Improvements through a voluntary contractual assessment program, and WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the counties and cities that are participating in the California HERO Program would promote the purposes cited above; and WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve energy and water efficiency and independence, and in doing so cooperate with Authority in order to efficiently and economically assist property owners the City in financing such Improvements; and WHEREAS, Authority has authority to establish the California HERO Program, which will be such a voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally made and entered into April 1, 1991, as amended to date, and the Amendment to Joint Powers Agreement Adding the City of Temple City as an Associate Member of the Western Riverside Council of Governments to Permit the Provision of Property Assessed Clean Energy (PACE) Program Services within the City (the "JPA Amendment"), by and between Authority and the City, a copy of which is attached as Exhibit "A" hereto, to assist property owners within the incorporated area of the City in financing the cost of installing Improvements; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy and collection of assessments or any required remedial action in the case of delinquencies in the payment of any assessments or the issuance, sale or administration of any bonds issued in connection with the California HERO Program. NOW, THEREFORE, BE IT RESOLVED THAT 20323.00016A7642058.1 I . This City Council finds and declares that properties in the City's incorporated area will be benefited by the availability of the California HERO Program to finance the installation of Improvements. 2. This City Council hereby approves the JPA Amendment and authorizes the execution thereof by appropriate City officials. 3. This City Council consents to inclusion in the California HERO Program of all of the properties in the incorporated area within the City and to the Improvements, upon the request by and voluntary agreement of owners of such properties, in compliance with the laws, rules and regulations applicable to such program, and to the assumption of jurisdiction thereover by Authority for the purposes thereof. 7. The consent of this City Council constitutes assent to the assumption of jurisdiction by Authority for all purposes of the California HERO Program and authorizes Authority, 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 and be secured by such contractual assessments. a. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the California HERO Program within the City, and report back periodically to this City Council on the success of such program. 9. This Resolution shall take effect immediately upon its adoption. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority Executive Committee. Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney I hereby certify that the foregoing resolution, Resolution No_ 13-4904, was adopted by the City Council of the City of Temple City at a regular meeting held on the 16T" day of April 2013 by the following vote: AYES: Councilmember- NOES: Councilmember- ABSENT: Councilmember- ABSTAIN: Councilmember- 20323.00016\7642058.1 City Clerk 20323.00016\7642058.1 ATTACHMENT "B" WESTERN RIVERSIDE COUNCIL OF GOVERNMNETS JOINT POWERS AUTHORITY AMENDMENT AMENDMENT TO THE JOINT POWERS AGREEMENT ADDING CITY OF TEMPLE CITY AS AS AN ASSOCIATE MEMBER OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS TO PERMIT THE PROVISION OF PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM SERVICES WITH SUCH CITY This Amendment to the Joint Powers Agreement ("JPA Amendment") is made and entered into on the 16' day of April, 2013, by City of Temple City ("City") and the Western Riverside Council of Governments ("Authority") (collectively the "Parties"), RECITALS WHEREAS, Authority is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title I of the Government Code of the State of California (Section 6500 and following) (the "Joint Exercise of Powers Act") and the Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the "Authority JPA"); and WHEREAS, as of October 1, 2012, Authority had 18 member entities (the "Regular Members"). WHEREAS, 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, commonly referred to as a Property Assessed Clean Energy ("PACE") program, to fund various renewable energy sources, energy and water efficiency improvements, and electric vehicle charging infrastructure (the "ImprovementO that are permanently' fixed to residential, commercial, industrial, agricultural or other real property; and WHEREAS, Authority intends to establish a PACE program to be known as the "California HERO Program" pursuant to Chapter 29 as now enacted or as such legislation may be amended hereafter, which Will authorize the implementation of a PACE financing program for cities and county throughout the state; and WHEREAS, City desires to allow owners of property within its jurisdiction to participate in the California HERO Program and to allow Authority to conduct proceedings under Chapter 29 to finance Improvements to be installed on such properties; and WHEREAS, this JPA Amendment will permit City to become an associate member of Authority and to participate in California HERO Program for the purpose of facilitating the implementation of such program within the jurisdiction of City; and WHEREAS, pursuant to Government Code sections 6500 et seq., the Parties are approving this JPA Agreement to allow for the provision of PACE services, including the operation of a PACE financing program, within the incorporated territory of City; and WHEREAS, the JPA Amendment sets forth the rights, obligations and duties of City and Authority with respect to the implementation of the California HERO Program within the incorporated territory of City. MUTUAL UNDERSTANDINGS NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter stated, the Parties hereto agree as follows: A. JPA Amendment. 20323_00016b642233.1 The Authority JPA. City agrees to the berms and conditions of the Authority TPA, attached. 2, Associate Membership. By adoption of this JPA Amendment, City shall become Associate Member of Authority on the terms and conditions set forth herein and the Authority JPA and consistent with the requirements of the Joint Exercise of Powers Act. The rights and obligations of City as an Associate Member are limitedsolely to those terns and conditions expressly set forth in this JPA Amendment for the purposes of implementing the California HERO Program within the incorporated territory of City. Except -as expressly provided for by the this JPA Amendment, City shall not have any rights otherwise granted to Authority's Regular Members by the Authority JPA, including but not limited to the right to vote on matters before the Executive Committee or The General Assembly, right to amend or vote on amendments to the Authority JPA, and right to sit on committees or boards established under the Authority JPA or by action of the Executive Committee or the General Assembly, including, without limitation, the General Assembly and the Executive Committee. City shall not be considered a member for purposes of Section 9.1 of the Authority JPA. 3. Rights of Authoritv. This JPA Amendment shall not be interpreted as limiting or restricting the rights of Authority under the Authority JPA. Nothing in this JPA Amendment is intended to alter or modify Authority Transportation Uniform Mitigation Fee (TUMF) Program, the PACE Program administered by Authority within the jurisdictions of its Regular Members, or any other programs administered now or in the future by Authority, all as currently structured or subsequently amended, B. implementation of California HERO Program within City Jurisdiction. 1. Boundaries of the California HERO Program within Citv Jurisdiction. City shall determine and notify Authority of the boundaries of the incorporated territory within City's jurisdiction within which contractual assessments may be entered into under the California HERO Program (the "Program Boundaries"), which boundaries may include the entire incorporated territory of City or a lesser portion thereof. 2. Determination of Eligible Improvements. Authority shall determine the types of distributed generation renewable energy sources, energy efficiency or water conservation improvements, electric vehicle charging infrastructure or such other improvements as may be authorized pursuant to Chapter 29 (the "Eligible Improvements") that will be eligible to be financed under the California HERO Program. 3. Establishment of California HERO Proeram. Authority will undertake such proceedings pursuant to Chapter 29 as shall be legally necessary to enable Authority to make contractual financing of Eligible Improvements available to eligible property owners with the California HERO Program Boundaries. 4. Financing the Installation of Eligible Improvements. Authority shall develop and implement a plan for the financing of the purchase and installation of the Eligible hmproverrents under the California HERO Program. 5. Ongoing Administration. Authority shall be responsible for the ongoing administration of the California HERO Program, including brat not limited to producing education plans to raise public awareness of the California HERO Program, soliciting, reviewing and approving applications from residential and commercial property owners participating in the California HERO Program, establishing contracts for residential, commercial and other property owners participating in such program, establishing and collecting assessments due under the California HERO Program, adopting and implementing any rules or regulations for the PACE program, and providing reports as required by Chapter 29. City will not be responsible for the conduct of any proceedings required to be taken under Chapter 29; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of the Bonds or any other bonds issued in connection with the California HERO Program. 6. Phased Implementation. The Parties recognize and agree that implementation of the California HERO Program as a whole can and may be phased as additional other cities and counties execute similar 20323. 00010702233.1 2 agreements. City entering into this JPA Amendment will obtain the benefits ofand incur the obligations imposed by this JPA Amendment in its jurisdictional area, irrespective of whether cities or counties enter into similar agreements. C. Miscellaneous Provisions 1. Withdrawal. City or Authority may witbdraw from this JPA Amendment upon six (6) months written notice to the other party; provided, however, there is no outstanding indebtedness of Authority within City. The provisions of Section 6.2 of the Authority JPA shall not apply to City under this JPA Amendment. 2. Mutual Indemnification and Liabilitv. Authority and City shall mutually defend, indemnify and hold the other party and its directors, officials, officers, employees and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries of any kind, in Iaw or equity, to property or persons, including wrongful death, to the extent arising out of the willful misconduct or negligent acts, errors or omissions of the indemnifying party or its directors, officials, officers, employees and agents in connection with the California HERO Program administered under this JPA Amendment, including without limitation the payment of expert witness fees and attorneys fees and other related costs and expenses, but excluding payment of consequential damages. Without limiting the foregoing, Section 5.2 of the Authority JPA shall not apply to this JPA Amendment. In no event shall any of Authority's Regular Members or their officials, officers or employees be held directly liable for any damages or liability resulting out of this JPA Amendment. 3. Environmental Review. Authority shall be the lead agency under the California Environmental Quality Act for any environmental review that may required in implementing or administering the California AERO Program under this JPA Amendment. 4_ Cooperative Effort. City shall cooperate with Authority by providing information and other assistance in order for Authority to meet its obligations hereunder. City recognizes that one of its responsibilities related to the California AERO Program will include any permitting or inspection requirements as established by City. 5. Notice. Any and all communications and/or notices in connection with this JPA Amendment shall be either hand -delivered or sent by United States first class mail, postage prepaid, arid addressed as follows: Authority: Western Riverside Council of Governments 4080 Lemon Street 3rd Floor, MSI032 Riverside, CA 92501-3609 Aft: Executive Director City: City of Temple City 9701 Las Tunas Drive Temple City, CA 91780 Attn: City Clerk 6, Entire Anreement. This JPA Amendment together with the Authority JPA, constitutes the entire agreement among the Parties pertaining to the subject matter hereof. This JPA Amendment supersedes any and all other agreement's, 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. 20323.00016N7642233.1 7. Successors and Assigns. This JPA Amendment 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 JPA Amendment with prior written approval of the other Party, which approval shall not be unreasonably withheld. 8. Attornev'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. 9. Governing Law, This JPA Amendment shall be governed by and construed in accordance with the laws of the State of California, as applicable. 10. No Third Pmty Beneficiaries, This JPA Amendment 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 Patty to this JPA Amendment to maintain a suit for personal injuries or property damages under the provisions of this JPA Amendment. The duties, obligations, and responsibilities of the Parties to this JPA Amendment with respect to third party beneficiaries shall remain as imposed under existing state and federal law. 11. Severability. In the event one or more of the provisions contained in this JPA Amendment is held invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this JPA Amendment and the remaining parts of this JPA Amendment shall remain in full force and effect as though such invalid, illegal, or unenforceable portion had never been apart of this JPA Amendment. 12, Beadings. The paragraph headings used in this JPA Amendment are for the convenience of the Parties and are not intended to be used as an aid to interpretation. 13. Amendment. This JPA Amendment 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 JPA Amendment shall be of no effect. 14. Effective Date. This JPA Amendment shall become effective upon the execution thereof by the Parties hereto. IN WITNESS WHEREOF, the Parties Hereto have caused this JPA Amendment to be executed and attested by their officers thereunto duly authorized as of the date first above written. CITY OF TEMPLE CITY By: Jose Pulido Date City Manager ATTEST: M Peggy Kuo Date City Clerk 20323,00016\7442733.1 APPROVED AS TO FORM: Eric S. Vail Date City Attorney WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS wm Date ATTEST: M Date 20323.00016\7642233.1 ATTACHMENT "C" SAN GABRIEL VALLEY COUNCIL OF GOVERNMNETS MARCH 13, 2013 GOVERNING BOARD MEETING HIGHLIGHTS C�tian UabriellT aney councii 1 sea Date: April 2, 2013 To: Governing Board Delegates and Alternates From: Andrea Miller, Executive Director Re: March 2043 Governing Board Meeting Highlights Below please find a summary of the major action items at the last Governing Board meeting. This should be used to provide an update to your colleagues regarding recent SGVCOG activities. Western Riverside Council of Governments HERO Pros<ram At the March 2013 Governing Board meeting, Rick Bishop, Executive Director of the Western Riverside Council of Governments (WRCOG) presented its California HERO Financing Program. California HERO is a residential and commercial PACE program that was developed by the WRCOG, which allows willing property owners to enter into contractual assessments to finance the installation of renewable generation products, energy efficiency improvements, and water conservation improvements that are permanently fixed to the property owner's residential, commercial, industrial, or other real property and repay the loan as an item on the property owner's property tax bill. The program has been operating in the "COG territory since January 2012 and, since that time, more than 6,000 applications have been submitted for participation in the program. Participants are able to finance a wide variety of projects, including photovoltaic systems, windows and glass doors, insulation, and heating and air conditioning systems. With the success of its program and small number of residential PACE programs operating statewide — there are only 2 residential PACE programs operating due to concerns that have been raised by the Federal Housing Financing Agency (FHFA) — the WRCOG is looking to expand the program to other jurisdictions statewide. Only residents that live in a jurisdiction that is part of the California HERO program are eligible to participate. Jurisdictions must adopt a Resolution of Participation and a JPA Amendment in order to participate in the WRCOG program. The SGVCOG can also enter into a contract with WRCOG for the SGVCOG to serve as the contact point for .the San Gabriel Valley region. If the SGVCOG were to enter into the contract, the SGVCOG would be responsible for promoting the program to its cities and for every $10 million of projects that was allocated in the region, the SGVCOG would receive $5,000. Motion: The Governing Board directed staff to present the Memorandum of Understanding between the SGVCOG with WRCOG at the April Governing Board meeting.