HomeMy Public PortalAbout2010.140 (07-06-10)RESOLUTION NO 2010 140
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD,
CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE INCORPORATED
AREA OF THE CITY IN THE LOS ANGELES COUNTY ENERGY PROGRAM TO
FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND
ENERGY AND WATER EFFICIENCY IMPROVEMENTS, APPROVING THE REPORT
SETTING FORTH THE PARAMETERS OF THE REFERENCED PROGRAM AND
CERTAIN MATTERS IN CONNECTION THEREWITH
WHEREAS, Chapter 29 of Part 3 of Division 7 of the California Streets and
Highways Code (the "Act ") authorizes cities and counties to assist free and willing
property owners in financing the installation of distributed generation renewable energy
sources and energy and water efficiency improvements (the "Improvements ") that are
permanently fixed to residential, commercial, industrial or other real property through a
contractual assessment program, and
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WHEREAS, the Board of Supervisors (the "Board of Supervisors ") of the County
of Los Angeles, a political subdivision of the State of California (the "County "), has
established a contractual assessment program named the Los Angeles County Energy
Program ( "LACEP ") pursuant to the Act; and
WHEREAS, the parameters of LACEP are set forth in the Report attached hereto
as Exhibit A (the "Report") and such Report has been prepared by the Director of the
Internal Services Department of the County, as Program Administrator (the "Program
Administrator "), pursuant to Section 5898 22 of the Act and approved by the Board of
Supervisors, and
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WHEREAS, the Act authorizes the County to enter into contractual assessments
with property owners located within incorporated cities only subsequent to the approval
of the legislative body of the related city to participate in LACEP, and
WHEREAS, the City desires to participate with the County in LACEP, under
terms and conditions agreed to by the City and the County, and provide for participation
in LACEP by property owners located within City limits, and
WHEREAS, this Council of the. City (this "City Council ") has reviewed the Report.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS
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Section 1. The recitals set forth hereinabove are true and correct in all
respects
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Section 2. This City Council finds and declares that properties in the City's
incorporated area will be benefited by participation in LACEP
Section 3. This City Council ratifies the resolution adopted by the Board of
Supervisors on April 6, 2010 declaring the Board of Supervisors' intention to order the
implementation of a contractual assessment program to finance improvements pursuant
to the act.
Section 4. This City Council hereby approves the report substantially in the
form attached hereto as Exhibit A and finds and determines that changes to the
parameters of LACEP that are not material in nature do not require the approval of this
Council
Section 5. This City Council hereby approves the inclusion in LACEP of all of
the properties in the incorporated area within the City, as same may be amended
through annexation from time to time, the acquisition, construction and installation within
City limits of the improvements set forth in the report upon the request and agreement
of the affected property owner, and the assumption of jurisdiction thereover by the
County for the aforesaid purposes The adoption of this resolution by this City Council
constitutes the approval by the City to participate in the LACEP
Section 6. This City Council further authorizes the County to set the terms of
and implement LACEP and to take each and every action necessary or desirable for
financing the improvements, including the levying, collecting and enforcement of the
contractual assessments to finance the improvements and the issuance of bonds
secured by such contractual assessments
Section 7. The City Clerk is directed to file a certified copy of this resolution
with the Los Angeles County Office of Sustainability, located at 1100 North Eastern
Avenue, Los Angeles, California 90063
Section 8. City staff is authorized and directed to coordinate with the County,
including the program administrator and County staff, to facilitate operation of LACEP
City staff is also authorized and directed to do all acts and things which may be required
by this resolution, or which may be necessary or desirable in carrying out LACEP as
described' in the report, as may be amended from time to time, and approved by this
resolution, and all matters incidental thereto
Section 9. That this Resolution shall take effect immediately upon its adoption
Section 10 The City Clerk shall certify as to the adoption of this Resolution
PASSED, APPROVED and ADOPTED this 6 day of July, 2010
�-44� 5
Maria T Santillan, Mayor
ATTEST
Maria Quinonez, City Clerk
APPROVED AS TO FORM
Fred Galante, City Attorney
�_ ,`."I_ /sue �L►
'•�- - Manage
APPROVED AS TO CONTENT
;oO ax
G Daniel Ojeda, P' E , hector of
Public Works / City Engineer
STATE OF CALIFORNIA )
) SS
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
foregoing Resolution was passed and adopted by the City Council of the City of
Lynwood at a regular meeting held on the 6 day of July, 2010
AYES COUNCIL MEMBERS FLORES, MORTON, RODRIGUEZ, CASTRO
AND SANTILLAN
NOES NONE
ABSENT NONE
ABSTAIN NONE
Maria Quinonez, City Clerk
STATE OF CALIFORNIA )
) SS
COUNTY OF LOS ANGELES )
I, the undersigned City Clerk of the City of Lynwood, and the Clerk of the City
Council of said City, do hereby certify that the above foregoing is a full, true and correct
copy of Resolution No 2010 140 on file in my office and that said Resolution was
adopted on the date and by the vote therein stated Dated this 6 day of July, 2010
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Los Angeles County
Energy Program
(LACEP)
PROGRAM REPORT
Los Angeles County Energy Program
Program Report
Table of Contents
I. INTRODUCTION ..................... ...............................
Background ..................................
Program Benefits
Program Administration
Program Duration
11. PROGRAM REQUIREMENTS
Geographic Parameters and Participating City Requirements
Eligible Owners and Properties
Eligible Improvements
Eligible Costs
Ill. PROGRAM FINANCING
........................ ............................... 1
Strategy to Raise Capital
The Energy Fund
Maximum Aggregate Contractual • Assessment
Administrative Costs /Application Fee
Maximum Disbursement Amounts
Single and Multiple Disbursements
Assessment Interest Rate .............
Annual Administrative Assessment; Consultation with County Auditor - Controller
Assessment Term
Assessment Collection and Default...; ....................... ......................
Rebates and Incentives ......... :.................. :....... :..: .................
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Financing Process
Priorityof Funding ............................... .............. ------- : ..................... ..........
Property Owner Financial Responsibilities .:- ...........
IV CHANGES TO THE PROGRAM REPORT ........ :.. ....... :..........................................
Appendix A. Area Map
Appendix B: Eligible Improvements
Appendix C: Draft Assessment Contract
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Los Angeles County Energy Program
Program Report
L INTRODUCTION
The Los Angeles County Energy Program CLACEP" or "Program ") is intended to help property owners
make capital investments in distributed generation renewable energy sources and energy efficiency and
water efficiency improvements (collectively known as "Improvements) that will provide long -term benefits
and reduced energy bills. The Program will provide a financing mechanism for the Improvements through
an assessment contract (the 'Assessment Contract') between the County of Los Angeles (the 'County)
and the property owner, pursuant to which the County will disburse a specified amount to the property
owner The property owner will pay contractual assessments levied against the property through annual
installments on the property tax bill. If the owner sells the subject property prior to full repayment of the
assessment, the repayment obligation remains a lien on thq subject property The County intends to
finance the Program in part by issuing (or causing to be issued) bonds payable from contractual
assessment revenues. Participation in the Program is completely voluntary and property taxes for non-
participating property owners are unaffected by the Program.
This Program Report ("Report") is prepared pursuant to Section 5898.22 of Chapter 29 of the California
Streets and Highways Code ( "Chapter 29 ") in connection the establishment of LACEP It includes the
following:
1) A map showing the boundaries of the Progl•am - the territory within which contractual
assessments are proposed to be offered. See Appendix A attached hereto.
2) A draft Assessment Contract specifying the terms and conditions that would be
applicable to the property owner and the County See Appendix C attached hereto_
3) A statement of County policies conceming,voluntary contractual assessments, including
all of the following:
■ Identification of the types of facilitigs, distributed generation renewable energy
sources, or energy or water efficiency improvements that may be financed
through the use of contractual assessments:
Identification of one or more County officials authorized to enter into voluntary
contractual assessments on behalf of the County
A maximum aggregate dollar amount voluntary contractual assessments.
4) A method for establishing priority order among the requests from property owners for
financing through LACEP
5) A financing plan for raising capital_
6) A report on the results of consultations with the County Auditor- Controller concerning the
additional fees, if any, that will be charged for incorporating the proposed voluntary
contractual assessments into the general taxes of the County on real property, and a plan
for financing the payment of those fees.
Background
Widespread implementation of distributed generation renewable energy sources and energy efficiency
and water efficiency measures in existing buildings within the County will help the State of Califomia
('State") reach the greenhouse gas reduction goals set forth under State Assembly Bill 32 ("AB 32) and
help the County and surrounding cities achieve their own targeted reductions. Participating property
owners can help to achieve greenhouse gas reductions, reduce water and energy use, and save money
by investing in these measures.
Chapter 29 authorizes various public agencies, including counties and cities, to designate areas within
which free and willing property owners can enter into contfactual assessments to finance the installation
of Improvements that are permanently fixed to residential, commercial, industrial, agriculture or other real
property LACEP is the voluntary contractual assessment program developed by the County pursuant to
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Los Angeles County Energy Program
Program Report
Chapter 29 Any assessments and liens under LACEP are levied only with the consent of free and willing
owners of the property on which Improvements are to be made. The Program will provide financing for
qualifying property owners within the County to install Improvements pursuant to the terms and conditions
of the Assessment Contracts. Property owners will pay contractual assessments levied against their
property in installments on their property tax bills. Each contractual assessment is tied directly to the
applicable property and any unpaid amount at sale or other disposition of the property will remain on the
property and become the responsibility of the subsequent owner
Proeram Benefits
LACEP is intended to provide multiple benefits, including the potential for reduced utility bills for
participating property owners. LACEP also offers a means of financing Improvements with a lower equity
contribution than may be required in a conventional financing and establishes a loan obligation that is
attached to the property and not to the individual borrower The financing is intended to be competitive
with conventional fixed -rate loans and provide for a streamlined financing and repayment process. All
available State, utility or other energy efficiency, water efficiency or renewable energy rebates, incentives
and all State and federal tax credits remain available to the property owner in connection with the
Improvements (subject to applicable rules, restrictions, regulations and the current status-of programs
administered by other such entities), unless otherwise specified.
incorporated cities may participate in LACEP without incurring the costs of forming separate programs
because LACEP's boundary is coterminous with the County's boundaries and includes,
subject to such cities' approval of participation in LACEP, all 88 incorporated cities. Having a single
program available to all residents of the County is anticipated to increase participation by eliminating
confusion for residents in finding the appropriate program. Cities may join LACEP by adopting a
resolution allowing property owners in their respective jurisdictions to apply for financing and implement
Improvements under LACEP
The Program seeks to mitigate long -term regional greenhouse gas production.through the reduction of
energy usage from traditional utility sources and help the County.and participating cities satisfy the
State's greenhouse gas reduction_ goals .under AB 32. When it was signed into law in 2006, AB 32
established statewide goals for the reduction of greenhouse gas emissions and may yet require counties
and cities to adopt regional greenhouse -gas emission limits similar to the statewide target of achieving
1990 levels of greenhouse.gas emissions by 2020_ To the extent permitted by law, the County will hold
and retain any carbon credits, offsets, carbon cap allocations, or other benefits attributable to the
improvements financed by LACEP It is the intention of the County to apply any benefits resulting from
such carbon credits to the furtherance of LACEP
LACEP has the potential to provide a significant industry shift in the region towards an energy efficiency
water efficiency and..renewable energy economy LACEP aims. to be a catalyst in spurring anew "green"
economy in the County by supporting energy project inspection and installation jobs, job training and
workforce development, local manufacturing and distribution, research and development, and marketing
and outreach.
For the first few years of the Program, American .Recovery and Reinvestment Act ( "ARRA ") grants will be
used to partially fund LACEP By the end of the ARRA funding term in 2012, LACEP seeks to achieve
the following goals:
1 Retrofit 15,000 single- family homes with a 20% average energy reduction_
2. Create 1,600 home energy retrofit jobs and 1,000 ancillary jobs.
3 Reduce annual purchased energy consumption in retrofitted homes by an aggregate 150 billion
British Thermal Units and $2 million in utility charges per year
4 Reduce the County s annual greenhouse gas emissions attributable to energy consumption in its
existing housing stock by 20,000 tons of carbon dioxide.
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Los Angeles County Energy Program
Program Report
The benefits to both the regional economy and the environment are expected to increase once individual
cities join LACEP, as the above forecasts are quantified solely for unincorporated areas of the County
Program Administration
The Program will be governed by the Board of Supervisors of the County of Los Angeles, which will
approve the Program parameters, approve the issuance of bonds, and delegate authority to authorized
officers to administer the Program.
The Director oflthe County's Internal Services Department will serve as the Program Administrator and
will provide day -to-day management of the Program, including design, implementation, and
administration. The authority to approve and enter into individual Assessment Contracts will be delegated
by the Board of Supervisors to the Program Administrator
The County Office of Sustainability ( "COS "), within the Internal Services Department, and the Program
Administrator vhl manage all Program activities, including, but not limited to the following:
■ Marketing and community outreach,
• Energy surveys and technical support for individual projects;
■ Customer service, including question and answer support to interested Program participants;
• Assisting in project development
• Processing Program applications;
• Managing and tracking funds available for financing Improvements;
• Managing and tracking progress of the Improvements and financing therefor
• Tracking individual and collective energy and greenhouse gas benefits;
• Integr9ting LACEP with other County State, utility and regional rebate/incentive programs;
• Working and coordinating with participating cities and other jurisdictions;
■ Providing information on local and regional environmental programs; and
• Reporting progress and expenditures according to mandated reporting methods applicable to
appropriated funds, including amounts received pursuant to ARRA.
These activities are intended to provide quality - Program design, administration and implementation for
qualifying property owners who may otherwise be unable to finance and install the Improvements.
Program Duration
Unless otherwise directed by the Board of Supervisors, the Program will continue as long as there is
sufficient demand and funding for the Improvements.
H PROGA" REQUIREMENTS
Geograp Parameters and Participating Citv Requirements
LACEP is available. in the unincorporated areas of the County immediately upon establishment of the
Program by the Board of Supervisors. Cities within the County may join LACEP and make assessment
friancir7g available to qualifying property owners located within their city's boundaries. Anytime after the
County's. establishment of the Program, a city's legislative body may adopt a resolution requesting
inclusion in th6 County Program. Pursuant to such resolution to participate in the Program, the city will
find and declare that the properties in the city's incorporated area will benefit from participation. Further
the city's resolution will authorize the County to set the terms of LACEP implement the Program, and
take action necessary for financing the Improvements.
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Los Angeles County Energy Program
Program Report
Participation in LACEP offers cities and their property owners the following advantages_
• An opportunity to save money through energy and water efficiency improvements,
• The ability to take advantage of substantial financial incentives and rebates from multiple
sources;
• A financing mechanism that establishes an obligation that remains attached to the property, and
■ Job creation and stimulation of the economy
Cities may elect to withdraw from participation in LACEP by adopting a resolution terminating their
involvement_ If a participating city elects to withdraw from LACEP no future assessment financing will be
made in that city, but assessment obligations made previous to the city's termination will remain in effect.
A map showing the Proposed Program boundaries is attached in Appendix A.
Eligible Owners and Properties
All owners of improved real property within participating areas are eligible to submit an application for
LACEP Qualifying property owners may be individuals, associations, business entities, cooperatives and
any owner who pays real property taxes. At this time, financing through LACEP is not available for
properties that are not subject to property taxes, such as governmental entities and certain non - profit
corporations.
To protect the Program from defaults and to improve access to the capital markets, property owners must
meet the following minimum requirements to qualify for financing:
• Property is located within Los Angeles County, and if within the boundaries of a city, the city has
adopted a resolution to join the Program;
■ Applicant is the legal owner of the property;
■ All legal owners of the property agree to participate in the Program,
• The property is not subject to involuntary liens as set forth in the Assessment Contract or any
other Program document;
■ Property taxes and assessments are current on the property and have not been' delinquent for a
period up to 5 years (or since the date of the most recent transfer if less than 5 years);
• Property owner certifies that he /she is not in bankruptcy and the property is not an asset in a
bankrtiptcy.proceeding;
Property owner certifies that he/she has not declared bankruptcy within the last 10 years;
• Property owner certifies and demonstrates that he/she is current on his/her mortgage, has not
defaulted on the deed(s) of trust and can legally enter into the Program,
■ Improvement costs are reasonable to property value. Property.must meet a minimum value -to-
lien ratio',
• Property must meet a positive equity test and not exceed a maximum loan- to-value ratio; and
• Property is subject to the appropriate jurisdiction s (County, city, or town) permitting and
inspections and all other applicable federal, State, and local codes and regulations.
Property owners .may submit more than one application for funding under the Program if additional
Improvements are desired by the owner However, all existing criteria must be met at the time of each
new application. Valuation of the property will reflect either the assessed value or the market value as
determined by using established industry approved methodologies. Costs for the scope of work'will be
based on contractor estimates, quotes provided by the property owner, and general industry standards.
Additional due diligence or underwriting. criteria-may be required for the financing of large projects.
Value of the property divided by the amount of the contractual assessment-
2 Aggregate total of all liens secured by real estate mortgages on the property divided by the value of the property
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Los Angeles County Energy Program
Program Report
The Program Administrator may exercise discretion in determining eligibility and any additional criteria
required for financing Improvements. Furthermore, the minimum eligibility requirements provided in this
Report are subject to change pursuant to the future financing needs of the Program.
Eligible Improvements
The Program provides property owners the opportunity to take advantage of a wide range of
Improvements, subject to the following provisions
■ The Program will only finance distributed generation renewable energy sources and energy
efficiency and water efficiency measures that are permanently fixed to the property
Property owners who elect to engage in broader retrofit projects (such as residential or
nonresidential remodeling) will only be provided financing for costs associated with Improvements
available under the Program.
The Program is intended to finance the replacement of working, inefficient equipment and
building materials and the installation of new equipment and building materials that reduce energy
consumption (beyond that required by existing,. applicable building codes), produce renewable
energy, or reduce energy in connection with water usage. The Program will also make financing
available for purchasers of residential, commercial or industrial properties who wish to add' _
Improvements after transfer of title is complete.
Property owners are responsible for Improvements installed on their property Property
owners must address performance and other system- related issues directly with the installevin
accordance with the terms of their contract with the installer Property owners are responsible for
maintenance and repair of the Improvements
Examples of Improvements available for financing under LACEP are provided in Appendix B.
EAkible Costs
Eligible costs of the Improvements include the cost of surveys and audits, permits and inspections,
equipment, installation from licensed, approved professionals, and follow -up inspections. ristallation.
costs may include, but are not limited to, energy audit consultations, labor design, drafting, engineering,
permit fees, and inspection charges.. A qualified contractor of the property owner's choice can be
selected to complete installation-of Improvements.
For each property, the Program Administrator will determine whether the estimated equipment and ` v �--
installation costs are reasonable. The Program Administrator will evaluate market conditions and may
require the property owner to provide additional bids to determine whether costs are reasonable- While
the property owner will be able to choose the contractor of his/her choice, the amount:eligible'for the
LACEP financing may be limited to the amount deemed reasonable by the Program Administrator
Projects that exceed a certain size and dollar amount may be subject to additional review
III. PROGRAM FINANCING
Strategy to Raise Capital
Thd County-intends to. raise capital for the Program _through one or more of.the following financing
arrangements.
�- Issuing or causing the issuance of bonds pursuant to Section 5898.28 of the Streets and
Highways Code, the principal and interest of which will be repaid from contractual assessments;
3 All )mprovements that require permits will be required to obtain such a permit from the local jurisdiction. Final inspection will
ensure that the Improvements were corn eted_ _
Los Angeles County Energy Program
Program Report
■ Advancement of certain County funds or funds held by the County Treasurer and Tax Collector
which will be repaid through contractual assessments or reimbursed from proceeds of a debt
issuance;
■ Application of funds received pursuant to federal and State programs and available for LACEP
financing purposes;
issuing debtor entering into loan arrangements to fund the Improvements; and
Private or owner - arranged financing.
To the extent that the County issues debt, it is expected to include a debt service reserve fund in the
amount sufficient to enhance the marketability of the debt_ The proceeds of the.debt issuance will be
applied to cover the. costs of Improvements, fund the debt service reserve fund, and pay costs of
issuance of the debt. The County may also pursue other financing options not listed above should such
options benefit the ongoing viability of the Program.
The Enerrry Fund
The County will create a special fund, the Energy Fund ("Fund"), which will hold contractual assessments
revenues received pursuant to the Assessment Contracts. Moneys in the Fund shall be used to make
payments on debt issued. by or on behalf of the County, fund certain administrative costs of the Program,
- replenish the debt service reserve fund, if required, and repay funds advanced by the County Amounts
in the Fund may also be used to finance additional Improvements secured by contractual assessments
and any other reasonable activity neededto advance the Program. Payment of the contractual
assessments will be made pursuant to Assessment Contracts between the property owner and the
County
MaximumAQ- rezute Contractual Assessment
The County is authorized to enter into up to $1.0 billion in aggregate dollar amount of voluntary
contractual assessments_ The County will coordinate the timing and issuance of debt with the goal of
providing the lowest possible interest rate to qualifying property owners and maintaining the long -term
financial viability of the Program.
Administrative Costs /Application Fee
The County will offer the Program as an additional County service that.will'help propertyyowners achieve
reductions on their energy bills and other environmental goals, while helping the County achieve its
_environmental The County will be responsible.for
■ Development and _operation of LACEP;
• Acquisition of LACEP financing;
Overall reporting.of Program status and including. reports :to financing agencies -regulators,
and stakeholders;
■ Overall structure and enforcement of Program govemance; and
Management and administration of LACEP consultants needed to perform services under the
Program.
Certain administrative costs are anticipated in connection with the aforementioned responsibilities. All or
a portion of such administrative costs may be financed through the interest component of the contractual
assessment The Program may also assign direct fees or charges to property owners forcertain services
provided during the process of securing an Assessment Contract. The County will .recover a portion_of
these initial administrative costs through a one -time application fee.
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Los Angeles County Energy Program
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Maximum Disbursement Amounts
The County will set a maximum disbursement amount for individual properties under the Assessment
Contract_ Where possible, the actual amount disbursed to a participating property owner pursuant to an
Assessment Contract will equal the actual cost of Improvements. In the event that the,final cost of
Improvements exceeds the agreed upon maximum disbursement amount, the property owner will be
solely responsible foethe payment of excess costs incurred to complete the Improvements.
Sin ,ale and Multiple Disbursements
Most disbursements will.be delivered to property owners in a single payment upon completion of the
Improvements_ However, upon Program Administrator approval, some projects may qualify for multiple
disbursements, which will allow for one or more payments to be made prior to project completion.
Assessment Interest Rate
The County will set a maximum interest rate for individual properties under the Assessment Contract.
The final interest rate will be determined such that the total amount of contractual assessment payments
(principal and interest) -will be sufficient to repay the debt issued to finance the Improvements, pay the
financing costs of such debt issuance, finance a debt service reserve fund with respect to such debt and
fund eligible administtative costs so that the Program remains financially viable_ The County Treasurer
and Tax Collector, in conjunction with the Program Administrator, will determine individual contractual
assessment interest rates_ Under no circumstances will the interest rate exceed the maximum rate
allowed by law '
Annual Administrative Assessment, Consultation with County Auditor - Controller
LACEP reserves the right to charge an Annual Administrative Assessment to cover ousts incurred by the
Cow[aty forthe ordinaryand necessary costs of administering the levy aod'collecfoii of the contractual
assessments and all .other administrative: and incidental expenses related to the debt tb.be issued_
Separate from any application fee or administrative cost. fecovered through amounts paid on the
contractual assessment interest rate, the Annual Administrative Assessment will be collected ..in the same
manner as the contractual. assessment and maybe adjusted annually to reflect changes in costs_ The
County Auditgr- Controller has been consulted regarding any fees resulting. from the incorporation of the
contractual assessiments.into the,general taxes of the County on real property It has.been determined
that any such;fees stall be collected pursuant to the Annual Administrative Assessment.
Assessment Term i
The term of the contractual assessments will be no greater than the expected useful life of the
Improvements for each individual Assessment Contract In. no event will the term of any contractual
assessment exceed the maximum: term allowed. bylaw The tern of each contractual assessment will be
set under the Assessment Contract.
Assessment Collection and Default
The contractual assessments will be collected in the same manner and at the same time as.the general
property taxes of.the'County The contractual assessments are subject to the same penalties, remedies,
and lien priorities in the event of delinquency and default If any contractual assessment becomes
delinquent and property taxes remain unpaid, the County shall have the right to initiate foreclosure
proceedings on the subject. property The LACEP foredosure_policywill bed eveoped in connection with
future financing arrangements and will take into consideration any required covenants associated with a
bond issuance.
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Los Angeles County Energy Program
Program Report
Rebates and Incentives
Financing through the Program may coincide with current and future distributed generation. renewable
energy, energy efficiency and water efficiency financial incentives available from utility providers as well
as local, State, federal, and other. agencies_ The value of expected rebates and.incentnres.wiil.be
factored into the financing available to the property owner The Program will advise, and may require
that, participants apply for any and all applicable rebates and incentives available at the -time offinancing
References to rebates and financial incentives in this Report do not include income tax rebates.
Financin;? Process
The process for property owners to receive financing through LACEP.is designed to be helpful,,,
transparent, and straightforward. Presented below are the general procedures for the application,
funding, and repayment process.
■ Education_ Property owners may access a variety of resources to learn about the Program, the
financing terms, and other details. These resources.may include a Program website, service
centers staffed to assist property owners, and information made available at community events.
Application. Property owners may apply fora funding reservation from LACEP and pay a non-
refundable application fee. Applications must include a proposed project (scope of work) and a
contractor bid.
■ Review and Approval. The "Program Administrator will approve an application only after
confirming that the applicant and proposed project satisfy the underwriting criteria and other
Program requirements_
Reservation.of Funds_ Once the application,is approved, the Program Administrator and the
proper.yownerwill,enter into the Assessment Contract At this point in ime a maximum
disbursement amount, loan term and maximum .interest. rate M11 be set: The property owner:will
also, agree to the terms and conditions of the Assessment Contract. TheP 1 " `am'Adm N htrat '
will provide assessment.informationto the County and an assessment lien vinll'befited wifh'the
County Registrar- Recorder
Installation. The property_owoe'rwill receive .a notice to proceed with the Improvements. A
qualified installer.must complete the. installation of authorized. Improvements on the property-
within the required timeframe after receiving the notice. In some cases, the Program
Administrator in his/her sole discretion may grant a time extension.
Evidence of Compliance/ Disbursement of Funds. The County is not obligated to disburse
funds unless and until each of the requirements set,forth Under the Assessment Contract are
satisfied or waived by the Program Administrator Upon satisfaction of the. above, the Program
Administrator will release funds to the property owner in the amount of the actual cost of
Improvements, but not exceeding the maximum disbursement set forth in the
Assessment Contact At this time,. the Program Administrator will notify the property owner of the
actual interest rate and amount of the contractual assessment_
Repayment After the release of funds, the County will place the assessment on the property tax
rolffor the tax year immediately following the disbursementdate. The property owner will be
expected to pay the contractual assessment installments in the amounts.and.at the times
specified in the Assessment Contract Prepayment of the -contractual assessment will be
permitted, however, penalties may-apply Any applicable penalties resulting from prepayment will
be set forth in the Assessment Contract
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Los Angeles County Energy Program
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Priority of Funding
Applications from property owners for financing will be given priority based on the date on which the
application is approved_ if a request from a property owner for financing would cause LACEP to exceed
the maximum amount of contractual assessments for the Program,, then that application will be ineligible
for financing. The Program Administrator shall retain the authority to grant exceptions to the priority
status of individual applications.
Property Owner Financial Responsibilities
The following types of costs are examples of those that will be the responsibility of the property owner
and will not be.financed through the Program:
■ Application fee;
If applicable, title insurance and property insurance costs;
■ Late payment fees;
■ if applicable; costs, associated with compliance with. the California Environmental Quality Act; and
■ Costs associated with.repairs:and maintenance of the Improvements.
IY. UUNGES TO THE PROGRAMREPORT
The Program Administrator may make changes to this Report that he/she reasonably determines are
necessary to darify ifs.prou'isions. Ali changes made to this Report that materially modify the LACED'
shall onty;be. made after approval by the Board of Supervisors.
The Program Administrator may modify the schedule of eligible Improvements:
mprovements attached as Appendix B`
and the draft Assessment Contract attached as Appendix C as deemed necessary or desirable_ fo,
effectuate the. intent. of the Program.
91 Page
Los Angeles County Energy Plan
Program Report
Appendix A: Area Map
3UPERVIScM4LOIwfvcT
SOUNDARES
4.084 SOMRE MU-ES
Appendix A I A 9
C�. NOMICOWEDAREAS
3EV. W16 cc Pacfx Oman
JUM UWC4RPORRED AREAS
Los Angeles County Energy Program
Program Report
Appendix B. Eligible Improvements
Eligible improvements will include, but are not limited to, the following types of Improvements, subject to
approval by the Program Administrator
Energy Efficiency Improvements
• Air sealing
■ Duct sealing and weather stripping
• Attic, duct, floor roof and wall insulation
• Hot water system insulation
■ Fans (Bathroom, ceiling, whole house)
• Energy efficient pool pumps
• HVAC systems
• Programmable thermostats and energy management systems
• Light fixtures i -
■ Energy Star cool roof -
• Radiant barriers
■ Windows, doors, skylights
■ Window film
Water Efficiency Improvements
• Hot water heater,
• On -demand water recirculation control pump
■ High - efficiency toilets and urinals
■ Showerheads and aerators
■ Smart irrigation/ Water efficient landscaping
■ Rainwater harvesting system
■ Grey water system
Distributed Generation Renewable Energy Improvements
i
■ Solar hot water heating systems
■ Solar thermal installation
Solar space heating
■ Photovoltaic systems
■ Wind energy systems
Fuel cell power systems
I
Appendix B I B 1
Los Angeles County Energy Program
Program Report
Appendix C: Draft Assessment Contract
(See attached_)
Appendix C p C -1
HD &W LLP — 5/10/10 Draft
LOS ANGELES COUNTY ENERGY PROGRAM
ASSESSMENT CONTRACT
This Assessment Contract (this "Contract") is made and entered into as of this day
of , 20 by and between the COUNTY OF LOS ANGELES, a political subdivision
Of tl e State of California (the "County "), and and
(collectively, the "Owner ").
WHEREAS, the County has established the Los ; Angeles County Energy Program
( "LACEP ") pursuant to Chapter 29 of Part of Division 7 of the California Streets and
Highways Code (the "Act'), in - connection with which the County may levy assessments against
deve4ed properties in the County, with the free and willing consent of the owners of the
properties, to finance the acquisition. and construction on and installation in the assessed
properties of certain qualifying renewable energy systems and energy and water efficiency
.improvements_
WHEREAS, the Owner has reviewed 1he Program participant handbook attached as
Exhibit A hereto (the "Participant Handbook") and submitted an application to participate in
LACEP (the "Application "; together with Participant Handbook and this Contract; the "Contract
Documents ") to finance the acquisition, construction and installation of the..renewable energy
systems, energy efficient improvements and/or water efficiency improvements described in
Exhibit B attached hereto (the "Improvements ") on that certain real property of the Owner
described. in Exhibit C attached hereto (the "Properly ") and the County has approved such
Application_
WHEREAS, the County may fund LACEP through a number of financing mechanisms,
including with proceeds of bonds to be issued by the County, with proceeds of loans derived
from bonds issued by the Los Angeles County Public Works Financing Authority (the
"Authority") and from amounts to be advanced through available funds of the County
WHEREAS, the County wishes to provide for the terms and conditions pursuant to which
the Owner will participate in LACEP and pay assessments to finance the Improvements
hereunder
NOW THEREFORE, in consideration of the mutual covenants contained herein and
other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the
parties agree as follows;.
1. Financing Terms
(a) Disbursement Amount; Maximum Disbursement Amount Subject to the
conditions set forth herein, the County agrees to disburse to the Owner in the amount of
the actual cost of the Improvements (the "Disbursement Amount"); provided the Disbursement
Amount shall not exceed the maximum amount set forth in Exhibit B hereto (the "Maximum
Disbursement") LACEP Program Administrator (the "Program Administrator ") shall determine
the Disbursement Amount on the basis of the best available written evidence of the actual cost of
the Improvements and ui the exercise of the Program Administrator's reasonable judgment. The
Owner agrees to complete the Improvements. The Owner agrees to pay for and shall be solely
responsible for 'the payment of all costs to complete the Improvements described in the
Application which exceed the Maximum Disbursement.
(b) Repayme by Owner
(i) Assessment In consideration of the disbursement of the Disbursement
Amount, the Owner shall pay to the County an amount equal to the Disbursement
Amount, certain financing costs, including any capitalized LACEP administrative
expenses, and the interest accrued thereon. Such amounts shall be repaid by the Owner
to the County by the payment of an aggregate assessment levied against the Property
pursuant to Section 5898.30 of the Streets and Highway Code of the State of California
(the "Assessment") without deduction or offset for any amounts the Owner may claim
due to it by the County, all as set forth in Exhibit B attached hereto
(ii) Interest on Assessment Interest shall =be payable in installments,
computed on the basis of a 360 -day year, and shall accrue on the unpaid Assessment from
[the date of this contract ][the date any portion of the Disbursement Amount is disbursed
to the Owner] at the rate determined by the Program Administrator in his/her sole
discretion at the time of disbursement or final disbursement, as applicable, of the
Disbursement Amount. The maximum interest.rate applicable to the. unpaid Assessment
and the interest installments therefor are set forth in ExhibitB hereto. The Program
Administrator will give notice to the Owner of the interest rate applicable to th e `unpaid
Assessment,. and the related interest installments as soon as practicable iiftd 'its
determination, which notice will be substantially in the form attached as Exhibit D: hereto
(the "Notice of Interest Rate and Payment Schedule')
(iii) Annual Administrative Assessment The shall pay to the County,
Without deduction or_offset an annual assessment levied against the Property to pay costs
incurred by the County in connection. with the administration and collection. of the
Assessment, the administration or registration of any associated bonds, securities or other
financing arrangements, and the administration of any reserve fund or other related funds
(the "Annual. Administrative Assessment"). The Annual Administrative Assessment
shall not exceed the amount set forth in Exhibit B hereto and may be changed from time
to time by the rogram Administrator, in his sole discretion, subject to the maximum
Annual Administrative Assessment.
(iv) Financing Costs in the Event of Noncompletion If the Owner fails to
install the Improvements in compliance with LACEP requirements following execution
of this Assessment Contract, the Owner shall pay for all expenses incurred by the County
1 In the case of a County financing with.accrued interest.
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or any of its agents in connection with levying or removing the assessments hereunder
and financing the Improvements, including costs relating to the redemption of bonds
issued to finance the Improvements.
(c) Prepayment The Owner may prepay the Assessment in whole and in part by
paying all or a part of the principal amount owing on the Assessment, plus the applicable
prepayment premium set forth in Exhibit B hereto, and accrued interest. Interest on the
Assessment may accrue until the next available redemption date for any bonds or other evidences
of indebtedness, or other financial arrangements entered into by the County pursuant to LACEP
which financed the Assessment in whole or in part. Such redemption date shall not exceed _
(_) days from the date of prepayment of the Assessment. The Owner shall. notify the Program
Administrator in writing of the Owner's determination to prepay the Assessment at least _ U
business days prior to the date the Owner intends to prepay the Assessment.
I
(d) Term of Contract The term of this Contract shall be as set forth in Exhibit B
.hereto, commencing upon the execution hereof and ending on the date the Assessment and any
applicable penalties, costs, fees, and charges have been paid in full, provided, however, the
estimated payment schedule may be adjusted as provided in this Section 1 The initial amount of
each Assessment and Annual Administrative Assessment installment that will be levied is set
forth in Exhibit B attached hereto. The amount of each Assessment and Annual Administrative
Assessment installment that will be levied each year, as adjusted to reflect the applicable interest
rate determined by the Program Administrator but excluding any penalties that may accrue, is set
forth in Exhibit D attached hereto.
2. Lien of Assessment and Annual Administrative Assessment; Special Benefi
(a) Lien Against Property The execution of this Contract by the parties constitutes
the levy of the Assessment and the Annual Administrative Assessment by the Board of
Supervisors against thel Property without any further action required by the ,parties.. The Owner
consents to the levy of the Assessment and the Annual. Administrative Assessment, including
each installment thereof and. any interest and penalties that accrue with respect thereto, on, and
recordation of a lien against the Property and agrees that, upon the execution of this Contract by
the parties, the Property shall be subject to the Assessment and the Annual Administrative
Assessment in accordance with and pursuant to this Contract; the Act and applicable law
(b) Notice of Assessment; Notice of Payment of Contractual Assessment - Required .
Upon execution of this Contract, the County will execute and cause to be recorded in the Office
of the Registrar - Recorder /County Clerk a notice of assessment substantially.in the form attached
as Exhibit E hereto (the "Notice of Assessment?) and a document egtttled "Payment of
Contractual Assessment Required" substantially in the form attached as Exhibit F .hereto (the
"Notice of Payment of Contractual Assessment.. Require&). Upon recordation of the-Notice of
Assessment in the Office of the Registrar= RecorderlCounty Clerk, the Assessment and the
Annual Administrative Assessment, including each installment thereof and any interest and
penalties that accrue with respect to the Assessment and the Annual Administrative Assessment,
shall constitute a lien upon the Property until paid. The Notice of Assessment and Notice of
Payment of Contractual Assessment Required, as recorded, shall initially reflect the Assessment
as set forth in Exhibit B Following the County's final disbursement of the Disbursement
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Amount pursuant to Section 6 hereof, the Assessment shall equal the amount set forth in Exhibit
D and the Notice of Assessment and Notice of Payment of Contractual Assessment Required will
be supplemented accordingly
(c) Priority of .Lien The lien of the Assessment and the Annual Administrative
Assessment shall be coequal to and independent of the lien for general taxes and prior and
superior to all liens, claims and encumbrances on or against the Property except (i) the lien for
general taxes or ad valorem assessments in the nature of and collected as taxes levied by the
State of California or any county, city, special district or other local agency, (ii) the lien of any
special assessment or assessments the lien date of which is prior in time to the lien date of the
Assessment and the Annual Administrative Assessment, (iii) easements constituting servitudes
upon or burdens to the Property, (iv) water rights, the record title to which is held separately
from the title to the Property and (v) restrictions of record.
(d) Special Benefit to Property
(i) Acknowled ement The Owner expressly acknowledges that the
Improvements confer a special benefit to the Property in an amount at least equal to the
Assessment.
(ii) Waiver of Provisions Other Than Those of the Act.. The Owner:expressly
waives to the fullest extent permitted by law the notice, :protest and hearing procedures
and provisions oUany applicable law other than the Act with respect to the .levy, and
collection of the Assessment and the Annual Administrative Assessment; as described in
Section 2 and Section 3, respectively, hereof.
3. Collection of Amounts Due; Failure to Pay
(a) Collection through Property Tax Bill Annual installments of the Assessment and
the Annual Administrative Assessment shall be collected on the property tax bill: pertaining to
the Property. The annual proportion Of the Assessment and the Annual Administrative
Assessment coming due in any year shall be payable. in the same.manner, at the -same time _and .in
the same installments as the general taxes of the County on real property are .payable; an if the
assessment installments shall be payable and become delinquent at the same times and. the.same
proportionate amounts and shall bear the same penalties and interest after delinquency, and be
subject to the same provisions for redemption and sale, as the general taxes on real property of
the County
(b) Failure to Pay Failure to -Pay any installment of the Assessment and the Annual
Administrative Assessment, including interest. and .penalties with respect thereto, shall .result in
the accrual of penalties and interest on the amounts due and may result in the foreclosure.: of the
lien of the Assessment and the Annual Administrative Assessment, as described in Section:13(e)
hereof and provided by law. Except as provided in Government Code Section 53936, the .liens of
the Assessment and .the Annual Admmistrative Assessment are not subject to extinguishment by
judicial foreclosure or the sale of the Property on. account .of the- nonpayment of any taxes.
-4-
4 Commencement and Completion of Improvements
(a) Consent and Authorization Upon the availability of funding under LACEP, the
Program Administrator will give to the Owner a notice to proceed in the form of Exhibit G
hereto (the "Notice to Proceed'), which notice shall constitute consent and authorization
pursuant to Section 5898 -21 of the Act for the Owner to purchase directly the related equipment
and materials for the Improvements and to contract directly for the construction on and/or
installation in the Property of the Improvements. The Owner bears the risk of any costs of the
Improvements incurred prior to receipt of the Notice to Proceed. The Owner may perform the
construction and/or installation on the Property provided that the Owner is deemed a qualified
installer by the Program Administrator in his/her sole discretion in accordance with the
Participant Handbook.
(b) Date of Completion of the Improvements Subject to Section 13(g) hereof, the
Owner agrees to complete installation of the Improvements no later than — days after the date of
the Notice to Proceed of this Contract. The Owner and the Program Administrator may agree to
an extension ofthis completion date for good cause shown, but in no event-shall the completion
date be more than one year from the date of the Notice to Proceed_
Usl of Proceeds
The Owner shall use the Disbursement Amount for the sole purpose of paying for the
reasonable costs and expenses of the Improvements on the Property, and in connection therewith
the Owner shall comply with all requirements set forth in the Contract Documents.
6 Conditions Precedent to Disbursement of Funds
(A) Conditions Precedent to Disbursement of Funds Notwithstanding anything to the
contrary contained herein, the County shall have no obligation to disburse funds to the Owner
unless and until each of the requirements set forth under " " of the Participant Handbook
and the following conditions are satisfied, or any such. requirement or condition is expressly
waived by the Program Admnustrator
-(i): With respect to the initial disbursement;
(A) The Program Administrator shall have received a written request to
disburse the Disbursement. Amount.
(B) The Owner has executed and delivered to the Program
' Administrator the Contract Documents and such other declarations,
certifications, documents or instruments pertaining to the
Disbursement Amount or the Improvements as the Program
t Administrator may require.
(C) The Owner will, within U days of presentation by the
Program Administrator, execute any and all documents or
instruments required by the Contract Documents in connection
with the disbursement of funds to the Owner
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(D) If the Property is a commercial property, the Owner shall have
provided all applicable lenders the Notice of Proposed Contractual
Assessment set forth as Exhibit H to this Contract and received an
executed copy of the Certificate of Lender set forth as Exhibit I to
this contract: In addition, the Owner shall have received from the
Program Administrator, at the expense of the Owner, a
determination that the Improvements to be financed hereunder
(a) are within one or more classes of projects exempt from the
California Environmental Quality Act (commencing with Section
21000 et seq. of the California Public Resources Code, "CEQA')
pursuant to Sections 15301, 15302 or :15303 of the California
Public Resources Code, (b) are the appropriate subject of a
negative declaration pursuant to CEQA, in which case a negative
declaration to that effect will be adopted pursuant to Section 21080
et. seq of the California Public Resources Code and Section 15070
et seq of the California Code of Regulations, or .(c), is the
appropriate subject of an environmental impact report pursuant to
CEQA, in which case an environmental impact report shall be
prepared and certified and amounts hereunder shall, be disbursed
only if the Improvements are subsequently approved in accordance
With CEQA.
With respect to the second and final disbursement:
(A) The Program Administrator shall, have received. a_ copy of a
finalized permit issued by the building inspection department of
the jurisdiction within which the Properly is located, if applicable.
(B) The Program Administrator shall have received a written
certification from the Owner and the contractor(s) -that installed or
constructed the Improvements, if any, starting that the
Improvements for which disbursement is requested is complete and
setting forth the actual cost of the Improvements (exclusive of any
cost attributable to labor performed by the Owner pursuant to the
terms and conditions of this Contract and the other Contract
Documents). Such certification shall be in form and substance
acceptable to the Program Administrator
(C) If an inspection is required; an inspection of the Improvements and
a determination by the applicable agency, authority or entity that
the Improvements have been completed in full compliance with the
requirements of applicable law or that any noncompliance has been
waived.
(D) No stop payment -or mechanic's lien notices pertaining to the
Improvements has been filed and remain in effect as of the date of
disbursement of the Disbursement Amount.
3191M
s x,.
(iii)
(I-)
[If the Property is a commercial property, the Program
Administrator shall have received a title insurance policy to form
and substance acceptable to the Program Administrator in the
Disbursement Amount and insuring the lien of the Assessment.]
With respect to each of disbursement:
(A) As of the date of disbursement of the Disbursement Amount the
representations of the Owner contained in the Contract Documents
are true and correct, and no Default (as defined in Section 13(a)
below) shall have occurred and be coritmumg.
(B). The Program Administrator shall have received such other
documents and instruments as the :Program Administrator may
require, including but not limited to, if applicable, the sworn
statements of contractor(s) or the Owner, if construction and/or
installation is performed by the Owner in his/her capacity as a
qualified installer pursuant to the Contract' Documents, and
releases or waivers of lien, all in compliance with the requirements
of applicable law
(iv) If there shall be a single disbursement under this Assessment Contract, all
conditions under (i) through (iii) shall be satisfied by the Owner or waived by the
Program Administrator prior to disbursement.
(b) Disbursement by County Upon satisfaction or waiver of the conditions described
in paragraph (a), abode, the County will disburse funds. to the Owner [as soon -as practicable.]
The Owner expressly waives the 30 -day payment period provided by Section 10403 of the
Streets and Highways Code.
7 Representations and Warranties.of the Owner
For purposes of entering into .this .Contract, the County has relied upon the declarations,
warranties and covenants of the Owner in this Contract and in the .Application,. which are
incorporated into this Contract as if fully set forth herein. The Owner promises that each
representation and warranty set forth herein is true, accurate and complete as of the date of this
Contract. By accepting the disbursement, the Owner shall be deemed to have reaffirmed each
and every representation and warranty made by the Owner in this Contract and in the
Application as of the date of disbursement: If the Owner is comprised of the trustees of a trust,
the following representations shall also pertain to the trustor(s) of the trust.
(a) Formation, Authority If the Owner is anything other than a natural person, it has
complied with all laws and regulations concerning. its organization, its existence and the
transaction of its business, and is iri good standing.in each State m which it conducts its business.
The Owner is the owner of the Property and is authorized to execute, :deliver and perform its
obligations under the Contract Documents, and all other documents and .instruments delivered by
the Owner to the County in connection therewith. The Contract Documents have been duly
executed and delivered by the Owner and are valid and binding upon and enforceable against the
-7-
Owner in accordance with their terms, and no consent or approval of any third party, which has
not been previously obtained by the Owner is required for the Owner's execution thereof or the
performance of its obligations contained therein.
(b) Compliance with Law Neither the Owner nor the Property is in violation of, and
the terms and provisions of the Contract Documents do not conflict, with, any regulation or
ordinance, any order of any court or governmental entity, or any building restrictions or
governmental requirements affecting the Owner or the Property
(c) No Violation The terms and provisions of the Contract Documents, the
execution and delivery of the Contract Documents by the Owner and the performance by the
Owner of its obligations contained in the Contract, will not and do not conflict with or result in a
breach of or a default under any of the terms or provisions of any other agreement, contract,
covenant or security instrument by which the Owner or the Property is bound.
(d) Other Information All reports, documents, instruments, information and forms of
evidence which have been delivered to the County in connection with the Owner's application
for LACEP funding are accurate, correct and sufficiently complete to give the County true and
accurate knowledge of their subject matter_
(e) Litigation There is no litigation, tax claims, actions, proceedings, investigations
or other disputes pending or threatened against the Owner or the _Property which may impair the
Owner's ability to perform its obligations hereunder; or which may impair the County's ability to
levy and collect the Assessment and the Annual Administrative Assessment.
(f) No Event of Default There is no event which is, or with notice or lapse of time
or both would be, a Default under this Contract.
Covenants of the Owner
The Owner agrees and covenants to each of the following:
(a) Installation, and Maintenance. of Improvements The Owner shall, or shall cause
its contractor(s) to, promptly commence the Improvements and diligently continue to completion
in a good and workmanlike manner and in accordance with sound :construction and installation
practices. The Owner shall maintain the Improvements in good.condition and repair
(b) Reports If the Disbursement Amount is disbursed in more than one installment,
the Owner agrees, upon the request. of the Program Administrator, to promptly: deliver or. cause
to be promptly delivered to the Program Administrator a written status report of the
Improvements, including the acquisition and installation thereof
(c) _Compliance with Law and Agreements The Owner shall complete all
Improvements, or cause the Improvements to be completed, in conformity with all applicable
laws, -including all applicable federal, state, and Iocal occupation, safety and health laws rules,
regulations, standards, and recorded instruments, covenants or agreements affecting the Property.
The Owner shall comply with and keep in effect all permits, licenses and approvals required to
completee installation of the Improvements.
-8-
(d) Completion of Work If. the Disbursement Amount is disbursed in more than one
installment, subject to any acceptable excuse for failure to complete the Improvements pursuant
to Section 13(g) hereof; the Owner shall complete the .Improvements within [tune
period] of the initial disbursement of the Disbursement Amount.
+
(e) Site Visits; Utility Records; Surveys For purposes of examining the
workmanship of the Improvements, observing the quality of the Improvements and otherwise
evaluating LACEP, the Owner grants the County, its agents and representatives, including
without limitation the Program Administrator, the right to enter and visit the Property at any
reasonable time, after giving reasonable notice to the Owner For purposes of examining savings
derived from the Improvements and other satisfying the requirements relating to grant moneys
used to fund LACEP, the Owner shall also allow the County to examine. and copy records and
other documents of the Owner which relate to the Improvements, including utility records of the
Owner and execute any consents, waivers or similar documents required by utility providers in
connection therewith through the term of this Contract. The Owner also agrees to participate in
any and all surveys conducted in connection with LACEP The County is under -no duty to visit
the Property, observe any aspects of the Improvements or examine any records, and the County
shall not incur any obligation or liability by reason of not making any such visit or examination.
Any site visit, observation or examination by the County shall be solely for the purposes of
protecting the County's rights under the Contract Documents.
(f} Protection. Against Lien Claims The Owner shall promptly pay or otherwise
discharge any claims and liens for labor done and materials and services furnished to' the
Property in connection with the Improvements. The Owner shall- have the right to contest in
good faith any claim or lien, provided that it does so diligently and without delay in completing
the Improvements. +
(g) Notice to Successors in Interest The Owner agrees to provide written notice to
any subsequent purchaser., of the Property ithat the Property is subject to an LACEP. assessment
hen, and to provide any subsequent purchaser a copy of this Contract_
.(h) Insurance [If. the Maximum Disbursement exceeds $ , ] the Owner shall
provide, maintain and keep in force at all times until the Improvements are completed, builder's
all risk property damage insurance on the Property, with a policy limit equal to the amount of the
Maximum Disbursement.
(i) Notices The Owner shall promptly notify the County in writing of any Default
under this Contract, or any event which, with notice or lapse of time or both, would constitute a
Default hereunder.
9. Mechanic's Lien and Stop Notices
In the event of the filing of a stop notice or the recording of a mechanic's lien pursuant to
applicable law of the State of California and relating to the Improvements, the Program
Administrator may refuse to disburse any funds to the Owner, and, in the event the Owner fails
to furnish the Program Administrator a bond causing such notice or lien to be released within _
U days of notice from the Program Administrator to do so, such failure shall at the option of
the County constitute a default under the terms of this Contract. The Owner shall promptly
deliver to the Program Administrator copies of all such notices or liens.
10 Responsibilities of the Owner; Indemnification
(a) Financing by .County, No Responsibility for Improvements The Owner
acknowledges that the County has established LACEP solely for the purpose of assisting the
owners of property in the County with the financing of the acquisition, construction, and
installation of qualifying renewable energy systems and energy and water efficiency
improvements. LACEP is a financing program only. None of the County, the Authority (if
bonds are issued by the Authority), their officials, agents, employees, attorneys and
representatives, the Program Administrator, or LACEP staff is responsible -for selection,
management or supervision of the Improvements or of the Improvements' performance.
(b) Indemnification The Owner shall indemnify, defend, protect, and' hold harmless
the County, the Authority (if bonds are issued by the Authority) and any and all officials, agents,
employees, attorneys and representatives of the County and the Authority (collectively the
"Indemnified Parties ") and, if the Property is located in an incorporated area, such incorporated
city and any and all officials, agents, employees, attorneys and representatives of such - city,(the
"City Parties "), from and against all losses, liabilities, claims, damages (including consequential
damages), penalties, fines, forfeitures, costs and expenses (including °all reasonable out -of- pocket
litigation costs and reasonable attorneys' fees) and any demands of any nature whatsoever
related directly or indirectly to, or arising out of or in connection with, (i) the Contract
Documents, (ii) disbursement of the Disbursement Amount, (iii) the Iinproveinents, (iv) airy
breach or Default by the Owner -under the Contract Documents, (v) the levy'- and coil' ofthe
Assessment and the Annual Administrative Assessment; (vi) the imposition of the Iien'lof` he
Assessment and the Annual Administrative Assessment, (vii) any breach or failure of the lOwner
or its contractor(s) or agents to comply with all applicable laws, including all applicable federal,
state and local occupation, safety and health laws, rules, regulations and standards, in connection
with the acquisitio. n, installation or completion of the Improvements, and (viii) any other fact,
circumstance or event related to the County's payment of the .Disbursement Amount to the
Owner or the Owner's performance of its obligations under the Contract Documents
(collectively, the "Liabilities "), regardless of whether such Liabilities shall accrue or are
discovered' before or after the Disbursement.
(c) Survival of Indemnification The indemnity obligations described in Section 10(b)
shall survive the disbursement of: funds to the Owner, the payment of the Assessment in full, the
transfer or sale of the Property by the Owner and the termination of this Contract.
I 1 Waiver of Claims
For and in consideration of the County's execution and delivery of this Contract, the
Owner, for itself and for its successors -in- interest to the Property and: for any one claiming by,
through, or under the Owner, hereby waives the right to recover from and frilly and irrevocably
releases the Indemnified Parties and, if the Property is located in an incorporated area, the City
Parties, from any and all claims,. obligations, liabilities, causes of action, or damages, including
attorneys' fees and court costs, that the Owner may now have or hereafter acquire against any of
-10-
the Indemnified Parties and the City Parties and accruing from or related to (i) the Contract
Documents, (ii) the disbursement of any of the Disbursement Amount, including any amounts
advanced hereunder, (iii) the levy and collection of the Assessment and the Annual
Administrative Assessment, (iv) the imposition of the lien of the Assessment, (v) the issuance
and sale of any bonds or other evidences of indebtedness, or other financial arrangements entered
into by the County' pursuant to LACEP, (vi) the performance of the Improvements, (vii) the
Improvements, (viii) any damage to or diminution in value of the Property that may result from
construction or installation of the Improvements, (ix) any personal injury or death that may result
from the construction or installation of the Improvements, (x) the selection of manufacturer(s),
dealer(s), supplier(s), contiactor(s) and/or installer(s), and their action or maction with respect to
the Improvements, (xi) the merchantability and fitness for any particular purpose, use or
application of the Improvements, (xii) the amount of energy savings resulting from the
Improvements, (xiii) the workmanship of any third parties, and (xiv) any other matter with
respect to LACEP This release includes claims, obligations, liabilities, causes of action, and
damages of which the Owner is not presently aware or which the Owner does not suspect to exist
which, if known by the Owner, wouldmaterially affect the Owners release of the Indemnified
Parties and the City Parties.
OWNER HEREBY ACKNOWLEDGES THAT IT HAS READ AND IS FAMILIAR
WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542
("SECTION 1542'), WHICII IS SET FORTH BELOW
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE 'CREDITOR DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH KNOWN: BY :HIM OR
HER MUST HAVE MATERIALLY AFFEC'T'ED HIS OR .HER
SETTLEMENT WITH THE DEBTOR"
BY INITIALING BELOW, OWNER HEREBY WAIVES THE PROVISIONS OF
SECTION 1542 SOLELY IN CONNECTION WITH TTTE MATTERS WHICH ARE THE
SUBJECT OF THE FOREGOING WAIVERS AND RELEASES.
Owner's Initials:
i
The waiver's and releases by the Owner contained in this Section 11 shall survive the
disbursement of-the Disbursement. Amount, the payment of-the Assessment in full, the transfer or
sale of the Property by the Owner, and the termination of this Contract.
12. Further Assurances
The Owner shall execute any further documents or instruments consistent with the terms
of this Contract, including documents and instruments in :recordable form, as the County shall
from time to time find necessary or appropriate to effectuate its purposes in entering into this
Contract and disbutsing funds. to the Owner
-11-
13 Events of Default
(a) Default Subject to the further provisions of this Section 13, the failure of.any of
the Owner's representations or warranties to be correct in all material respects, or the failure or
delay by the Owner to perform any of its obligations under the terms or provisions of the
Contract Documents, shall constitute a default hereunder ("Default").
(b) Notice of Default Upon the occurrence of a Default, ,prior to exercising any
.remedies under the Contract Documents or the Act, the County shall give written notice of
default to the Owner Delay in giving such notice shall not constitute a waiver of any Default.
The Owner must immediately commence to cure, correct, or remedy such failure or delay" and
shall complete such cure, correction or remedy with reasonable diligence, but in any event,
within the time set forth herein.
(c) Cure Period for Monetary Default If the Owner fails to timely pay any
installment of the Assessment or the Annual Administrative Assessment, the Owner shall have. a
period of (_) days after notice is given pursuant to paragraph (b) above within which
to cure such default. Following such U day period, the County in .its sole discretion
may exercise any and all of its available remedies, including its right to foreclose the lien of the
Assessment or the Annual Administrative Assessment pursuant to applicable law
(d) Cure Period for Non - Monetary Default If. a non - monetary. Default occurs.-and
such Default is reasonably capable of being .cured within days, the Owner shall
have such.period to effect a. cure prior to exercise of remedies by the. County under the Contract
Documents or the Act. If the Default is such that it is reasonably capable .of:being cured but not
within such U day, period and the Owner (i) initiates: corrective =action within such
U day period and (ii)- diligently, continually, and in good faitkworks to effect a cure
as soon as possible; then the County in its sole discretion may elect to :grant the Owner such
additional time as is reasonably necessary to cure the Default prior to exercise of any remedies
by the County The foregoing notwithstanding, in no event shall the County be.precluded from
exercising any of its remedies if the Default is reasonably expected to result in the foreclosure or
forfeiture of the Property, or if the Default is not cured within () days aft=er the f
notice of Default is given.
(e) Remedies Upon Default Subject to the provisions of paragraphs (b), (c) and (d)
above, if any Default occurs the County may exercise any or all of the rights and remedies
available to it under applicable law, at equity, or as otherwise provided herein. If no
disbursement has occurred hereunder, the County may elect to terminate this Contract and,
except as otherwise expressly provided herein, the parties have no 'further obligations or rights
hereunder. If the Disbursement Amount has been disbursed in whole or in part, the County may
terminate its obligations to make any further disbursement of the Disbursement 7 Amount and
exercise any or all of the rights and remedies available to it under this Contract and-applicable
law As a cumulative remedy if any installment of the Assessment and the Annual
Administrative Assessment, together with any penalties, costs, fees, and other charges, accruing
under applicable taxation provisions are not paid when due, the Board of Supervisors or its
designee may order that the same be collected by an action brought in a court of competent
jurisdiction to foreclose the lien of the Assessment and the Annual Administrative Assessment to
-12=
the extent permitted, and in the manner provided by, applicable law Any and all costs and
expenses incurred by the County in pursuing its remedies hereunder shall be additional
indebtedness -of the Owner to the County
(f) Remedies Cumulative Except as otherwise expressly stated in this Contract or as
otherwise provided by applicable law, the rights and remedies of the County are cumulative, and
the exercise of one or more of such rights or remedies shall not preclude the exercise by the
County, at the same time or different times, of any other rights or remedies for the same Default
or any other Default. No failure or delay by the .County in asserting any of its rights and
remedies as to any Default shall operate as a waiver of any Default or of any such rights or
remedies, or deprive the County of its rights to institute and maintain any actions or proceedings
which it may deem necessary to protect, assert or enforce any such rights or remedies.
(g) Force Majeure Performance of the covenants and conditions imposed upon the
Owner hereunder with respect to the commencement and completion of the Improvements shall
be excused while and to the extent that, 'the Owner, through no fault or negligence of its own is
prevented from complying therewith by war, riots, strikes, lockouts, - action of the elements,
accidents, or acts of God beyond the reasonable control of the Owner; provided, however, that as
soon as the cause or event preventing compliance is removed or :ceases to exist the obligations
shall be restored to full force and effect and the Owner shall immediately resume installation of
the Improvements.
14 Seyerability
Each and every provision of this Contract is, and shall be construed to be, a separate and
independentcovenant and agreement. If any term or provision of this Contractor the application
thereof shall to any extent be held to be invalid or unenforceable; the remainder of this Contract
or the application of such term or provision to circumstances other than those to which it is
invalid or unenforceable, shall not be affected thereby, and each term and provision of this
Contract shall, be valid and shall be enforced to the extent permitted by law
15 Notices
All notices and .demands shall be given- in writing_by fust class mail, postage prepaid; or
by personal delivery (by recognized courier service), Notices shall be considered given upon the
earlier of (a) personal delivery or (b) . (� business days following deposit in the United States
mail, postage prepaid. Notices shall be addressed as provided below for the respective party;
provided that if any party gives notice in writing of a change of name or address, notices to such
parry shall thereafter be given as demanded in that notice:
To the County:
To the Owner-
Attention: Program Administrator
-13-
Attention.
Notwithstanding anything set forth above, after disbursement of funds to the Owner, all
notices regarding the assessment shall be sent only as provided by the laws of the State of
California.
16. No Waiver
No disbursement of the Disbursement Amount based upon inadequate or incorrect
information shall constitute a waiver of the right of the County to receive a refund thereof from
the Owner No disbursement of any portion of the Disbursement Amount shall constitute a
waiver of any conditions to the County's obligation to make further disbursements. No waiver
by the County of any failure by the, Owner to comply with any provision of this Contract shall in
any way preclude the County from thereafter declaring such failure by the Owner a .Default
hereunder or be deemed a waiver of any other or subsequent Default.
17 Governing Law
This Contract shall be construed and governed in accordance with the laws of the. State of
California.
18. Assianmentby the County -
The County, at its option, may (i) assign any or all of its rights and obligations under this
Contract, and (u) pledge and assign its right to receive the Assessment and the Annual i - Admi ustrative Assessment, and any other payments due to the County hereunder without
obtaining the consent of the Owner.
19: Assignment by Owner Prohibited
The Owner may sell, transfer, rent or otherwise dispose of all or a portion of its interests
in the Property so long as the Assessment and the Annual Administrative Assessment, including
each installment thereof and the interest and penalties thereon, shall constitute a lien against the
Property until the same is paid- in full- All other dispositions of all or a portion of the Owner's
rights and obligations under this Contract are subject to the prior express written consent of the
County, which consent may be granted or withheld in the sole and absolute discretion of *the
County
20. Carbon Credits
The Owner agrees that any carbon credits attributable to the Improvements shall be held
on behalf of LACEP by the County
-14-
21 Entire Agreement; Amendment
This Contract, together with the other Contract Documents, is the entire agreement
between the parties. Any other agreement related to the Improvements, and any amendment to
this Contract, must be signed in writing by both parties.
22. Natural Persons
If the Owner of the Property consists of more than one natural person, the obligations
hereunder of all the owners shall bejoint and several.
23 Counterparts
i
This Contract may be executed in several counterparts, each of which shall be deemed an
original, and all of such counterparts together shall constitute one and the same instrument.
24 Special Termination
Notwithstanding anything to the contrary contained herein, this Contract shall terminate
and be of no further force or effect if the Owner has submitted to the Program Administrator a
notice of its decision to cancel this transaction in the form of the Notice of Cancellation attached
as Exhibit hereto, which notice shall be delivered to the County pursuant to Section 15 hereof
no less than O. days .prior to the disbursement of the Disbursement Amount.
25 No Third Party. Beneficiary Rights
This Contract is entered into for the sole benefit of the Owner and the County and,
subject to the provisions of Sections 10, 11, 12 and 19, no other parties are intended to be direct
or incidental beneficiaries of this Contract and no third party shall have any right in, under or to
this Contract.
IN WITNESS WHEREOF, the Owner and the County have entered mto this Contract as
of the date and year first above written.
THE.OVv ER-
THE COUNTY:
COUNTY OF LOS ANGELES, CALIFORNIA
Date of Execution by the Owner Name:
Title:
20
-15-
ACKNOWLEDGEMENT(S)
STATE OF CALIFORNIA
COUNTY OF
ss..
On before me,
a notary public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(§) whose name(s) is /are
subscribed to the within instrument and acknowledged to me that he /she/they executed the same
in his/her /their authorized capacity(ies), and that by his/her /their signature(s) on the instrument
the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the of California that
the foregoing paragraph is true and correct.
WITNESS my hand and-official seal.
Signature
(T-lis area for official notarial : seal)
STATE OF CALIFORNIA
ss.:
COUNTY OF )
On , before me,
a notary public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name (es) is/are
subscribed to the within instrument and acknowledged to me that he /she /they executed the same
in his/her /their authorized capacity(ies), and that by his/her /their signature(s) on the instrument
the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF - PERJURY under the laws of the .State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
(This area for official notarial seal)
EXHIBIT A
PARTICIPANT HANDBOOK
[To Come]
A -1
EXHIBIT B
CERTAIN FINANCING TERMS
Maximum Disbursement Amount:
Contract Term.
Maximum Interest Rate- Percent C2%) per annum.
Financing Costs in the Event of Noncompletion.
Annual Administrative Assessment` "
Prepayment Premium:From to , a prepayment premium of _ percent (_ %)
From to , a prepayment premium of _ percent %)
After , a prepayment premium of_-percent %)
Improvements:
Estimated Payment Schedule
Assessment Maximum
Annual
Disbursement Financing Administrative
Year AmounP Costsm Interest AssessmenP T otal
Based on the Maximum Annual Administrative Assessment established for LACEP, which amount may be
adjusted from time to time by the Program Administrator, provided that the adjusted amount does not exceed
the Maximum Annual Administrative Assessment_
(2) If fimds are disbursed to the Owner before . the assessment will , appear on the property tax bill for the
same tax year. If fiords are disbursed after , the assessment will appear on the property tax bill for the
- following tax year
(3) Based on Maximum Disbursement. Subject to revision by the Program Administrator following the
disbursement of the Disbursement Amount, if necessary, pursuant to the Contract to reflect the Disbursement
Amount.
�'t Includes capitalized LACEP administrative expenses.
(5) Based on the Maximum Annual Administrative Assessment established for LACEP, which amount may be
adjusted from time to time by the Program Administrator, provided that the adjusted amount does not exceed
the Maximum Annual Administrative Assessment.
ffi
�Illi
DESCRIPTION OF THE PROPERTY
CS
EXHIBIT D
Owner-
Address:
LOS ANGELES COUNTY ENERGY PROGRAM
NOTICE OF INTEREST AND PAYMENT SCE EDULE
(the "Owner")
(the "Property ")
Assessor's Parcel Number
LACEP Loan Number
Pursuant to Section l (b)(ii) of that certain Assessment Contract (the "Assessment
Contract") executed by and between you, as Owner of the Property, and the County in
connection with the Los Angeles County Energy Program, you are hereby notified that the
interest rate applicable to the unpaid Assessment (as defined in the Assessment Contrac) is
_ %. The schedule of Assessment Installments, interest thereon and the Maximum Annual
Administrative Assessment with respect to the referenced property is set forth below
Assessment Maximum
Annual
Disbursement Financing Administrative
Year Amount Costs Int erest AssessmeriP Total
If funds are disbursed to the Owner before , the assessment will appear on the property tax bill for
the same tax year. If funds are disbursed , the assessment will appear on the property tax bill for the
following tax year.
tzi Includes capitalized LACEP administrative expenses.
(3) Based on the Maximum Annual Administrative Assessment established for LACEP, which amount may be
adjusted from time to time by the Program Administrator, provided that the adjusted amount does not exceed
the Maximum Annual Administrative Assessment-
The Notice of Assessment of record with the Office of the Registrar- Recorder /County
Clerk of the County of Los Angeles will be amended to reflect the foregoing payment schedule-
Program Administrator,
Los Angeles County Energy Program
D -1
I��:11 iif111�
NOTICE OF ASSESSMENT
WHEN RECORDED RETURN TO
County of Los Angeles
Treasurer and Tax Collector
Kenneth Hahn Hall of Administration
500 West Temple Street, Room 437
Los Angeles, California 90012
Attention. Los Angeles County Energy Program
— Program Administrator
NOTICE OF ASSESSMENT
Pursuant to the requirements of Section .5898-32 of the Streets and Highways Code of the State
of California, the undersigned Clerk of the Board of Supervisors {the "Board of Supervisors') of
the County of Los Angeles, a political subdivision of the State of California (the "County"),
-hereby gives notice that contractual assessments relating to that certain real property described in
Appendix A hereto (the "Property'), in the amounts set forth in Appendix B hereto, were
recorded in the Office of the Registrar - Recorder /County Clerk of the County, as provided for in
said Section 5898.32.
Pursuant to that certain Assessment Contract (the "Assessment Contract ") by and between the
County and the owner of the Property named herem in connection with the Los Angeles County
Energy Program, the several assessments assessed on the Property set forth in Appendix B hereto
became a lien upon the Property and the Property became subject to the assessment in
accordance pursuant to the Assessment Contract, the Act and applicable law upon the execution
of such Assessment Contract.
In addition to the assessment to pay the costs and expenses of the improvements to be acquired,
the Property is subject to a separate and additional assessment, as set forth in Appendix B hereto,
to be levied annually to pay for costs not otherwise reimbursed which will result from the
administration and collection of assessments or from the administration or registration of any
associated bonds and reserve or related funds.
Reference is made to the Assessment Contract for the amount of any final and adjusted
assessments, including any annual assessment as levied for administrative costs or maintenance,
as applicable-
E-1
Included in Appendix A hereto is the name(s) of the owner of record of the Property, which is
also the assessed owner of the Property as it appears on the latest secured assessment roll, all as
required pursuant to Section 27288.1 of the Government Code of the State of California.
Dated.
Clerk of the Board of Supervisors of the
County of Los Angeles
By .
Deputy
11.2
Appenda A to Notice of Assessment
DESCRIPTION OF THE PROPERTY
E -3
Appendix B to the Notice of Assessment
Name(s) of Owner of the Property
Assessment Amount:
Annual Administrative Assessment Amount:
E-4
EXIIIBIT F
Payment of Contractual Assessment Required
Pursuant to the requirements of Section 5898.24(d) of the Streets and Highways Code of
the State of California, the Board of Supervisors (the `Board of Supervisors') of the County of
Los Angeles, a political subdivision of the State of California (the "County'), hereby gives
notice that the real property described in Appendix A hereto (the "Property") is subject to a
contractual assessment that is required to be paid in accordance with that certain Assessment
Contract (the "Assessment Contract") by and between the owner of the Property and the County
in connection with the Los Angeles County Energy Program_ Certain information regarding the
contractual assessment assessed on the Property is set forth below
(1) The names of all current owners of the real property subject to the contractual
assessment: '
(2) Legal description of the Property See Exhibit Appendix A attached hereto and
incorporated herein by this reference.
(3) Assessor's parcel number for the Property
(4) The annual amount of the contractual assessment:
(5) The contractual assessment referenced (4) above expires on the date such contractual
assessment and any applicable penalties, costs, fees, and charges, including the Annual
Administrative Assessment (as defined in the Assessment Contract), have been paid in
full.
(6) Funds from the contractual assessment were used to finance the acquisition and
construction on and installation in the Property of certain qualifying renewable energy
systems and energy and water efficiency improvements, as further described in the
Assessment Contract. I
(7) Funds from the contractual assessment should be piid to the following:
[Name of entity to which contractual assessments should be paid]
[Address of entity]
[Contact person]
2 Section 589824(d)(2)(E) of the Act requires the document to include "the entity to which funds from the
contractual assessment will be paid and specific contact information for that entity"
F -1
Date Treasurer and Tax Collector of the
County of Los Angeles for Entity to which
Contractual Assessments will be paid]
Name:
Title:
3
s Section 589824(d)(2)(F) of the Act requires the document to include "the signature of the authorized
representative of the legislative body to which. fimds.from.the contractual assessment will be .paid"
F -2
Appendix A to Notice of Payment of Contractual Assessment Required
DESCRIPTION OF THE PROPERTY
F -3
LOS ANGELES COUNTY ENERGY PROGRAM
NOTICE TO PROCEED
Date:
Owner
Address:
(the "Owner")
(the "Property")
Assessor's Parcel Number
- LACEP Loan Number
Pursuant to Section 4(a) of that certain Assessment Contract (the "Assessment Contract")
executed by and between you, as Owner of the Property;, and the County in connection with the
Los Angeles County Energy Program, you are hereby given notice to proceed (this "Notice to
Proceed ") with acquisition, construction and installation of the Improvements and, upon
completion of the Improvements, submit a request for funding to LACEP_ This Notice to
Proceed constitutes consent and authorization pursuant to Section 5898.21 of the Act for the
Owner to purchase directly the related equipment and materials for the Improvements and to
contract directly for the construction on and/or installation in the Property of the Improvements.
The Owner must complete installation of the Improvements no later than days after the date
of this Notice to Proceed, provided that the Owner and. the Program Administrator may agree to
an extension of this completion date for good cause shown pursuant to Section 4(b) and Section
13(g) of the Assessment Contract, but in no event shall the completion date be more than one
year from the date of this Notice to Proceed. Disbursement of any amounts pursuant to the
Assessment Contract is subject to satisfaction of the terms and conditions thereof.
Program Administrator,
Los Angeles County Energy Program
G -1
EXHIBIT H
NOTICE OF PROPOSED CONTRACTUAL ASSESSMENT
(Commercial Property Owner)
Notice Date:
Lender Address:
Property/Loan Information-
Owner-
Address:
APN.
Loan Number(s)
To Whom It May Concern.
The undersigned (the " Owner ") is the owner of a certain real property located at the
above - referenced address (the 'Trope ') You are the lender (the " Lender ") with respect to the
above - referenced (the " Loan ") that'is secured by a lien on the Property
The Owner is sending this..Notice of Proposed Contractual Assessment to Lender to
(i) provide .notice of the Owner's proposed participation in the Los Angeles County Energy
Program ( "LACEP'), (ii) request confirmation from the Lender that the levy of the contractual
assessment pursuant to the herein described Assessment Contract will not trigger an event of
default or the exercise of any remedies under the Loan documents, and (iii) provide notice that
the contractual assessment (including any penalties and interest) will be secured by a statutory
lien on the Property that is senior to the lien securing the Loan.
Background The County of Los Angeles, a political subdivision of the State of
California (the "County ") has established LACEP to help finance the acquisition and
construction on and installation in the assessed properties, including the Property, of certain
qualifying renewable energy systems and energy and water efficiency improvements (the
"Improvements') pursuant to Chapter 29 of Part 3 of Division 7 of the Streets & Highways Code
of the State of California ( " Contractual Assessment Law ').
In accordance with Contractual Assessment Law, the County will levy a contractual
assessment to finance the installation of the Improvements on certain property with the
agreement of the applicable property owner pursuant to the terms of an assessment contract (the
"Assessment Contract") between such property owner and the County Pursuant to Section
5898.30 of Contractual Assessment Law, the contractual assessment (including any penalties and
interest) is collected on the property tax bill and is secured by a lien on the applicable property
H -1
;; ;,
that is (i) senior to all private liens, including private liens that existed prior to levy of the
contractual assessment and (ii) cannot be subordinated to the private liens.
Information regarding the purpose and method of administration of the assessments under
LACEP can be found at [websitel.
Participation in LACEP The Owner has applied to participate in LACEP and intends to
finance installation on the Property of the .Improvements set forth on Exhibit A hereto. The
contractual assessment to be levied on the Property (the " Contractual Assessment pursuant to
the Assessment Contract and the related payment terms are proposed to consist of the following:
Principal amount: $
Estimated interest rate:
Term of repayment period:
Annual administrative component:
Total estimated annual installment:
Lender Approval Please acknowledge that participation of the Property in LACEP is
acceptable to the Lender by executing the attached Certificate of- Lender and returning it to the
undersigned at your earliest convenience.
Very truly :yours,
BY
(Signature)
OWNER
NAME.
MAILING ADDRESS (if different than
Property address):
H -2
EXHIBIT I
CERTIFICATE OF LENDER
(Commercial Property Owner)
Property/Loan Information
Owner-
Address:
"N.
Loan.
In connection with the above - referenced loan (the "Loan ") relating to the above -
referenced property (the "Property") by the herein referenced lender (the "Lender "), the
undersigned hereby certifies, acknowledges, confirms and agrees as follows_
(1) He /she is duly authorized to execute this Certificate on behalf of the Lender
(2) The Lender is m receipt of written notice (the " Notice ") from the owner of the
Property (the " Owner ") that Owner intends to -finance installation on the Property
of certain renewable energy, energy efficiency and/or water efficiency
improvements that will be permanently fixed to the Property (the
" Improvements ") by participating in the Los Angeles County Energy Program
sponsored by the County of Los Angeles, a political subdivision of the State of
California (the "Coun ').
(3) As a result of an Assessment Contract between the County and the Owner (the
" Assessment Contract and pursuant to Chapter 29 of Part 3 of Division 7 of the
Streets and Highways Code of the State of California, the Contractual Assessment
described in the Notice will be levied on the Property and the Contractual
Assessment (including any penalties and interest) will be secured by a statutory
lien that is senior to the lien securing the Loan.
(4) The Lender -consents to the levy of the Contractual Assessment pursuant to the
Assessment Contract.
(5) The Lender agrees that the levy of the Contractual Assessment will : not constitute
an event of default or the exercise of any remedies under the documents relating
to the Loan.
I -1
The Lender further acknowledges that the Owner and the County will rely on this
Certificate in connection with the disposition and administration of the Assessment Contract and
the Los Angeles County Energy Program.
(LENDER]
Name:
Title:
Date:
I -2
�C
LOS ANGELES COUNTY ENERGY VROGRAM
NOTICE OF CANCELLATION
[and I are the owner[s] of record
([collectively,] the "Owner") of that certain real property located at
located in the County of Los Angeles, California. The
Owner previously executed that certain Assessment Contract (the "Assessment Contract") with
the County of Los Angeles (the "County") in connection with the Los Angeles County Energy
Program C LACEP' ). Pursuant to the Assessment Contract, Owner hereby notifies the LACEP
Program Administrator in accordance with Sections 15 and 24 of the Assessment Contract no
less than days prior to the disbursement of the Disbursement Amount that the
Owner has determined to cancel the transaction described in the Assessment Contract.
Accordingly, the Contract shall terminate and be of no further force or effect, except that the
Owner agrees to pay amounts due, it any, pursuant to Section 1(b)(iv) of the Assessment
Contract relating to financing costs in the event of the improvements are not completed.
Dated.
[OWNER]
By
Name
By-
Name
J -1
ATTACHMENT A
RESOLUTION OF THE BOARD OF SUPERVISORS OF
THE COUNTY OF LOS ANGELES DECLARING ITS
INTENTION TO ORDER THE IMPLEMENTATION OF
A CONTRACTUAL ASSESSMENT PROGRAM TO
FINANCE THE INSTAI;LATION OF DISTRIBUTED
GENERATION RENEWABLE ENERGY SOURCES
AND ENERGY AND WATER EFFICIENCY
IMPROVEMENTS
WHEREAS, Chapter 29 of Part 3 of Division 7 of the Streets and ffighways Code of the
State of California (the "Acf') authorizes counties to assist free and willing property owners in
financing the installation of distributed generation renewable energy sources and energy and
water efficiency improvements (the "Improvements') that are permanently fixed to residential,
commercial, industrial or other real property through a contractual assessment program; and
WHEREAS, the County of Los Angeles, a political subdivision of the State of California
(the "County), desires to authorize a contractual assessment program to finance the,instaIlation
of the Improvements in an area that encompasses the entire County pursuant to the Act;
NOW, THEREFORE, BE IT RESQLVED by the Board of Supervisors of the County of
Los Angeles (the `Board of Supervisors")'.as follows:
Section 1 Determination of Public Interest. The Board of Supervisors hereby finds
and determines that (a) it would be convenient;. advantageous, and in the public interest to
designate the entire area within the County; subject to the consent of any incorporated city
therein as provided for under Section .3 hereof, as the area within which_ authorized County
officials and property owners may enter into voluntary contractual assessments to finance the
installation of Improvements pursuant tq the Act; and (b) it is in the public interest for the
County to finance the installation of Improvements pursuant to the Act.
Section 2. Identification of Improvements The Board of Supervisors hereby
declares that it proposes to make voluntary contractual assessment financing available to
property owners within the County to finance the installation of Improvements, as set forth in
further detail in the Report (herein defwed) described in Section 10 below (the "Contractual
Assessment Program').
Section 3 Identification of Boundaries Voluntary contractual assessments may be
entered into by property owners located within the territory of the County; provided that
voluntary contractual assessments may be entered into by property owners located within
incorporated cities only subsequent to the approval of the legislative body of the related city to
participate in the Contractual Assessment Program. -
Section 4 Proposed Financing Arran ements The County may elect to finance all
or a portion of the Contractual Assessment Program by one or more of the financing
arrangements permitted under Section 5898.28 of the Act, including issuing or causing to be
issued bonds pursuant to the Act, the principal and interest for which would be repaid by
voluntary contractual assessments pursuant to the Contractual Assessment Program.. The County
may but is not obligated to advance its own funds to finance work to be repaid through
contractual assessments, and may but is not obligated to. from 'time to time sell or cause to be
sold bonds to reimburse itself for such advances. Financing through the Contractual Assessment
Program will' be available to property owners who satisfy certain - eligibility requirements,
including nunim property value- to-lien ratio and maximum total property loan-to-value ratio,
as set forth in further detail in the Report.
Provision is hereby made for the issuance of improvement bonds pursuant to Division 10
(commencing with Section 8500) of the Streets and Highways Code of the State ( "1915 Act'),
insofar as the 1915 Act is not in conflict with the Act. Any bonds issued under the 1,915 Act that
are payable from contractual assessments shall be issued in one or more series, and the last
installment of bonds shall mature a maximum of 39 years from the second day of September next
succeeding 12 months from their date of issuance. Any bonds issued under the 1915 Act shall be
serial bonds, term bonds or both, and shall bear interest at the rate or•rates determined at the time
of their sale, which rate shall. not exceed twelve percent (12 %) per annum, payable semiannually
Section 5 Additional Provisions Relating to the Proposed Bonds The provisions of
Part 11 1 of the 1915 Act shall apply to the collection of assessments and advance retirement of
bonds ;. provided, however, that except as otherwise provided - in Part 11 1, Parts 8 and 11 of the
19.15 Act shall apply.
' I
It. is the, intention of the .Board of Supervisors to create a special reserve .fund for the
bonds under Part 16 of the 1915.Aet.
Pursuant to Section 8769 of the 19.15 Act,. the Board of Supervisors hereby :determines
and declares that- the County will..not. obligate itself:to advance available funds from the County
treasury to cure any deficiency which may .occur in the bond redemption fund to-be created with
respect to the bonds; provided, however, that this determination shall not prevent the County
from in its solediscretion, so advancing. funds.
The bonds proposed to. be issued in this Resolution may be refunded under. Division 11.5
of the Streets and. Highways Code of the State or other applicable laws permitting refunding..of
the bonds, upon the conditions specified by and at the determination of the Board of Supervisors
and in accordance with the refunding provisions set forth in an bond indenture, trust agreement
or other agreement to be executed in connection with the issuance of the bonds proposed to be
issued in this Resolution; provided that any refunding bonds shall bear interest at the rate or rates
of not to exceed twelve percent (12 %) per .annum, the maximum number of years to maturity
thereof shall not exceed the maximum.maturity of bonds being refunded and any adjustment to
assessments resulting from the refunding will be done on a pro rata basis.
Pursuant to Section 8650.1 of the 1915 Act, the Board of Supervisors hereby determines
that the:principal amount of bonds maturing or becoming subject to mandatory prior redemption
in each year shall be other .than an amount equal to an even annual proportion of the aggregate
principal amount of the bonds.
Section 6. Agreement with Other Public Agency Regulated Public Utility or Mutual
Water Company The Board of Supervisors hereby declares its intention to enter into one or
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more agreements with a public agency, regulated public utility or mutual water company if doing
so will be in the public interest_
Section 7. Public Hearing The Board of Supervisors hereby orders that a public
hearing be held before the Board-of Supervisors on May 25, 2010, at 9:30 am., Kenneth Hahn
Hall of Administration, 500 West Temple Street, Room 381, Los Angeles, California.90012, for
the purpose of allowing interested persons to the opportunity to comment upon; object to or
present evidence with regard to the proposed contractual assessment program or any of its
particulars.
The Board of Supervisors hereby orders the Clerk of the Board of Supervisors to publish
a notice of public hearing pursuant to Section 5898.24 of the Act and Section 6066 of the
Government Code once a week for two successive weeks. Such notice of public hearing, shall. be
published twice in a newspaper that is published once a. week or more often, with at least five
days intervening between the respective notice publication dates, not counting such publication
dates. The period of notice will commence upon the first day of publication and terminateAt;the
end of the fourteenth day The first publication shall occur not-later than 20 days before. the date
of the public hearing.
Section 8. Consultations with Countli Auditor- Controller The Board of Supervisors
hereby directs the Chief Executive Officer and the Treasurer and Tax Collector > to enter into
consultations with the County Auditor - Controller in order to reach agreement on what additional
fees; if any, will be charged to the County for incorporating the proposed contractual assessments
into the assessments of the general taxes of the County on real property'
Section 9 Designation of Program Administrator The Board - of Supervisors hereby
designates the Director of the Internal Services Department of =the County as the Program
Administrator for the Contractual Assessment Pro s
Program (the `Program Administrator'.
Section 10. Report The Board of Supervisors directs the ,Program Administrator to
prepare and file with the Board of Supervisors a report (the "Report at or before the time of
the public hearing described in Section 7; above, pursuant to Section 5898.22>of the Act and
containing all of the following:
(a) A map showing. the boundaries of the territory :within which voluntary contractual
assessments are proposed to be offered; as set forth in Section 3 above.
(b) A draft - contract (the "Contract') specifying the terms and conditions that would
be agreed to by the County and a property owner within thel voluntary contractual assessment
area. The. Contract may allow property owners to purchase directly the related equipment and
materials for the installation of the authorized Improvements and to contract directly for the
installation of such Improvements.
(c) A statement of County policies concerning voluntary contractual assessments
including all of the following.
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(1) Identification of types of Improvements that may be financed through the
use of contractual assessments.
(2) Identification of a County official authorized to enter into Voluntary
contractual assessments on behalf of the County.
(3) A maximum aggregate dollar amount of voluntary contractual
assessments. i
(4) A metho4 for setting requests from property owners for financing through
voluntary assessments in priority order in the event that requests appear likely
to exceed the authorization amount.
(d) A plan for raising a capital amount required to pay for work performed pursuant
to voluntary contractual assessments. The plan may include amounts to be advanced by the
County through funds available to it from any source. The plan may include the sale of a Bond or
bonds or other financing relationship pursuant to Section 5898.28 of the Act. 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 voluntary contractual' assessment
program among the consenting property owners and the County
(e) A report on the results of the consultations with. County Auditor - Controller
described in Section 8 above concerning the additional fees, if any; that wY11 tie.charged to the
County for incorporating the proposed voluntary contractual as sessments into theassessments of
the general taxes of the County on real property, and a plan for financmgthe payment of those
fees.
Section I1 Notice to Water Electric and Natural Gas Providers The Board of
Supervisors hereby ratifies the.4writtdn notice of the proposed Contractual Assessment Program
to all water, electric and natural gas providers within the boundaries of the County given by the
County Office of Sustainability under the Internal Services Department pursuant to Section
5898.24(b) of the Act not less'than 60 days prior to adoption of the resolution confirming the
Report and certain matters attendant thereto.
Section 12. Contractual Assessments Voluntary contractual assessments levied
pursuant to the Act, and the interest and any penalties thereon, will constitute alien a$' mA the
lots and parcels of land on which they are made, until they are paid. Unless otherwise directed
by the Board of Supervisors, the assessments shall be collected in the same manner and at the
same time as the general taxes of the County on real property are payable, and subject to the
same penalties and remedies and lien priorities in the event of delinquency and default.
Section 13 Notice of Exemption The Board of Supervisors hereby determines that
establishment of the Contractual Assessment Program is within a class of projects that has been
determined not to have a significant effect on the environment in that it meets the criteria set
forth in Section 15308 of the Chlifornia Environmental Quality Act Guidelines and Class 8 of the
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County s Environmental Document Reporting Procedures and Guidelines, Appendix G In
addition, the Board of Supervisors finds that there are no cumulative impacts, unusual
circurnstances, or other limiting factors that would make the exemption inapplicable based on the
project records.
Section 14 Publication of Resolution The Clerk to the Board of Supervisors is
hereby ordered to cause this Resolution to be published pursuant to Section 5133 of the Streets
and Highways Code of the State of California, not less than 10 days prior to the date of public
hearing set forth in Section 7 above.
Section 15 Other Acts The Chief Executive Officer, the Treasurer and Tax
Collector, the Program Administrator the Director of Public Works a their designees are
hereby authorized and directed, jointly and severally, to do any and all acts and things and
deliver any and all documents which they may deem necessary or advisable in order to effectuate
the purposes of this Resolution and all matters incidental thereto, and any such actions
s ,previously taken by such officers are hereby ratified and confirmed.
Section 16. Effective Date This Resolution shall be effective upon its adoption by the
Board of Supervisors.
The foregoing Resolution of Intention was on the _day of Ir1 , 2010: adopted
by the Board of Supervisors of the County of Los Angeles and. ex- officio the governing body: of
all other special assessment and taxing districts, agencies and.authorities:-for which. said Board °so
acts.
SACHT A. HAMM
Executive O fficer_of the
Board - of Supervisors. of the
Co
APPROVED AS TO FORM.
ANDREA SHERIDAN ORDIN
County Counsel
h
.By-"'
Beh�tc�:u
Deputy County_ Counsel.
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ATTACHMENT B
NOTICE OF PROPOSED CONTRACTUAL ASSESSMENT PROGRAM
COUNTY OF LOS ANGELES
Notice is hereby given pursuant to Section 5898.24(b) of the Streets and Highways Code
of the State of California by the County of Los Angeles, a political subdivision of the State .of
California (the "County"), to all water, electric and natural, gas providers within the boundaries
of the County that on or about April 6, 2010 the Board of Supervisors of the County (the `Board
of Supervisors") will consider a resolution declaring the County's intent to designate an area,
which shall encompass the entire geographic territory within the boundaries of the County,
within which the County and property owners within the County may enter into voluntary
contractual assessments to finance the installation of distributed generation renewable energy
sources and' energy efficiency and water efficiency improvements that are permanently fixed . to
real property pursuant to Chapter 29 of Part 3 of Division 7 of the Streets & Iighways Code of
the State of California. Participation by property owners within an incorporated city will be
subject to the related city's approval of participation in the proposed contractual assessment
program. The Board of Supervisors is also expected to conduct a hearing on or about May 25,
2010 to afford all,persons who are present an opportunity to comment upon,., object. to,: or present
evidence with regard to the proposed contractual assessment program, the extent of the. area.
Proposed,. to the included within. the program, the terms and conditions, of the, draft contract
between the County and :certain property owners, or the proposed financing provisions- This
notice :is provided for information purposes only; no action is required to be taken by water,
electric:or natural gas provider
For additional ,information, please contact the County Office of Sustainabilitiy of the
Internal Services Department at 877- 276 -7781
Dated as of March 26, 2010
COUNTY OF LOS ANGELES, CALIFORNIA.
NOTICE OF PUBLIC HEARING
COUNTY OF LOS ANGELES
PROPOSED RENEWABLE ENERGY AND ENERGY AND WATER EFFICIENCY
CONTRACTUAL ASSESSMENT PROGRAM
WITHIN THE TERRITORY OF THE COUNTY
NOTICE IS HEREBY GIVEN that on May 25, 2010, at 9:30' a m., at the regular
meeting place of the Board of Supervisors of the County of Los Angeles (the "County'),
Kenneth Hahn Hall of Administration, 500 West Temple Street (corner of Temple Street and
Grand Avenue), Room 381, Los Angeles, California 90012, the County shall hold a public
hearing to discuss the proposed formation of a renewable energy and energy and water efficiency
contractual assessment program (the "Proposed Contractual:; Assessment Program's within the
territory of the County, subject to a related city's approv41 of participation in the Proposed
Contractual Assessment Program, where applicable, and to allow interested persons to comment
upon, object to, or present evidence with regard to or inquire laboutthe proposed program or'any
of its particulars_
On April b, 2010, the County adopted a resolutio4 approving the boundaries of the
Proposed Contractual Assessment Program, declaring its intention to implement the Proposed
Contractual Assessment Program, directing the .preparation of a report on certain particulars . =of
the'Proposed Contractual Assessment Program <(the "Report':.');: calling 'for a public hearing`and
approving certain matters related thereto. The purpose of the Proposed Contractual Assessment
Program is to assist property owners in financing the installation of distributed generation .
renewable energy sources improvements, energy efficiency improvements and water efficiency
overuWts 'that are ermanentl fixed to residentia com nerci
Apr p y 1, al, industrial or`� ther real
property, which financing will be secured by contractual assessments levied on such- owner's =lot
or parcel. Assessments may be levied only with the free and willing consent of the affected
owner of each lot or parcel.
At the above - referenced time and place all persons Who are present will be afforded an
opportunity to comment upon, object to, or present evidence with regard to the Proposed
Contractual Assessment Program, the extent of the area proposed to be included within the
Contractual Assessment.Program, the terms and conditions of the draft contract with landowners,
and the-proposed financing provisions - the Contractual Assessment Program, all as set .forth in
the Report. A copy of the Report will be on file in the Board Executive Office at Kenneth Hahn
(call of Administration, 500 West Temple Street, Room 383, Los Angeles, California 90012.
Inquiries regarding the hearing proceedings may be directed to the County Office of
Sustainability of the Internal Services Department at 877 - 270 =7781.
Dated: , 2010
Cleric of the Board of Supervisors of the
County of Los Angeles
LIM
Deputy