HomeMy WebLinkAbout4.02 California HERO Program
STAFF REPORT CITY CLERK
File #1100-65
CITY COUNCIL
DATE:October 6, 2015
TO:
Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Resolution Consenting to the Inclusion of Properties, within the City’s Jurisdiction,
in the California HERO Program to Finance Distributed Generation Renewable
Energy Sources, Energy, and Water Efficiency Improvements and Electric
Vehicle Charging Infrastructure and Approving a Related Amendment to a Joint
Powers Agreement to Participate in the HERO Program
Prepared by Roger Bradley, Assistant to the City Manager
EXECUTIVE SUMMARY:
The City Council will consider adopting a Resolution authorizing the City to join the HERO
Program, which is a program designed to assist in financing energy and water saving projects,
the financing of which is accomplished through an assessment on a resident’s property. The
program is coordinated by the Western Riverside Council of Governments through a joint
powers authority, which the City would be joining. The City Council action will authorize the
HERO Program to accept applications from Dublin property owners who wish to finance energy
and water saving improvements. The action will also authorize the HERO Program to conduct
contractual assessment proceedings and levy contractual assessments on behalf of the City
within the territory of the City of Dublin for the repayment of program financing. The HERO
Program is a Property Assessed Clean Energy Program (PACE). The City already has one such
residential program in place through the CaliforniaFIRST Program. HERO Program participation
would provide residents with an additional alternative to consider.
FINANCIAL IMPACT:
No negative fiscal impact will be incurred by the City by consenting to the inclusion of properties
within the City limits in the California HERO Program. All California HERO Program
administrative costs are covered through an administrative fee included in the property owner’s
voluntary contractual assessment and an annual administrative fee which is also collected on
the property owner’s tax bill.
RECOMMENDATION:
Resolution
Staff recommends that the City Council adopt the Consenting to the Inclusion of
Properties within the City’s Jurisdiction in the California Hero Program to Finance Distributed
Generation Renewable Energy Sources, Energy and Water Efficiency Improvements and
Electric Vehicle Charging Infrastructure and Approving the Amendment to a Certain Joint
Powers Agreement Related Thereto.
ITEM NO. 4.2
Page 1 of 3
Reviewed By
Assistant City Manager
DESCRIPTION:
Assembly Bill (AB) 811 was signed into law on July 21, 2008, and AB 474, effective January 1,
2010, amended Chapter 29 of Part 3 of Division 7 of the Streets & Highways Code of the State
of California (“Chapter 29”) and authorizes a legislative body to designate an area within which
authorized public officials and free and willing property owners may enter into voluntary
contractual assessments to finance the installation of distributed generation renewable energy
sources (e.g., solar panels), energy efficiency, and/or water conservation improvements that are
permanently fixed to real property, as specified.
Since 2011, the HERO Program reports helping more than 40,000 property owners make more
than $818 million in improvements to their homes which reduce energy and water consumption,
saving homeowners over $1.6 billion in estimated future utility costs and more than 1.3 billion
gallons of water. Adopted in more than 300 California communities, more than 6,400 local jobs
have been created as a result of HERO.
Because of its success, the California HERO Program was developed as a turnkey program to
save other California jurisdictions time and resources in developing a standalone program. The
(Attachment 1)
City only needs to adopt the form of resolution accompanying this staff report
and approve an amendment to the joint exercise of powers agreement related to the California
HERO Program attached to the resolution to begin the process.
ANALYSIS:
The California HERO Program is being offered to allow property owners, in participating cities
and counties, to finance renewable energy, energy and water efficiency improvements and
electric vehicle charging infrastructure on their property. If a property owner chooses to
participate, the improvements to be installed on the owner’s property will be financed by the
issuance of bonds by a joint powers authority, Western Riverside Council of Governments
(“WRCOG”), secured by a voluntary contractual assessment levied on the owner’s property.
Participation in the program is 100% voluntary. Property owners who wish to participate in the
program agree to repay the money through the voluntary contractual assessment collected
together with their property taxes.
The benefits to the property owner include:
Eligibility: In today’s economic environment, alternatives for property owners to finance
renewable energy/energy efficiency/water efficiency improvements or electric vehicle
charging infrastructure may not be available. As such, many property owners do not
have options available to them to lower their utility bills.
Savings: Energy prices continue to rise and selecting energy efficient, water efficient and
renewable energy upgrades lower utility bills.
Page 2 of 3
100% voluntary. Property owners can choose to participate in the program at their
discretion.
Payment obligation stays with the property. Under Chapter 29, a voluntary contractual
assessment stays with the property upon transfer of ownership. Even if there were
private enterprise alternatives, most private loans are due on sale of the benefited
property, which makes it difficult for property owners to match the life of the repayment
obligation with the useful life of the financed improvements. Certain mortgage providers
will, however, require the assessment be paid off at the time the property is refinanced or
sold.
Prepayment option. The property owner can choose to pay off the assessments at any
time, subject to applicable prepayment penalties.
Customer oriented program. Part of the success of the program is the prompt customer
service.
The benefits to the City include:
Increase in local jobs.
As in conventional assessment financing, the City is not obligated to repay the bonds or
to pay the assessments levied on the participating properties.
All California HERO Program and assessment administration, bond issuance and bond
administration functions are handled by California HERO. Little, if any, City staff time is
needed to participate in the California HERO Program.
The City can provide access for its residents to the California HERO Program without the
higher staff costs that an independent program established by the City would require.
The HERO program has over 340 California local government members. Cities in Alameda
County that have joined the HERO program are Albany, Berkeley, Hayward, Oakland and Union
City. Cities in Contra Costa that have joined the HERO program include, among others, the
Town of Danville and the City of San Ramon.
The proposed resolution enables the California HERO Program to be available to owners of
property within the City of Dublin to finance renewable energy, energy efficiency and water
efficiency improvements and electric vehicle charging infrastructure. The resolution approves an
Amendment to the WRCOG Joint Powers Agreement to add the City as an Associate Member
in order that the California HERO Program may be offered to the owners of property located
within the City who wish to participate in the California HERO Program.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
.
None
ATTACHMENTS:
1. Resolution Consenting to the Inclusion of Properties within the City’s
Jurisdiction in the California Hero Program to Finance Distributed
Generation Renewable Energy Sources, Energy and Water
Efficiency Improvements and Electric Vehicle Charging Infrastructure
and Approving the Amendment to a Certain Joint Powers Agreement
Related Thereto
Page 3 of 3
RESOLUTION NO. XX - 15
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * * *
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN, CALIFORNIA,
CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE CITY’S JURISDICTION
IN THE CALIFORNIA HERO PROGRAM TO FINANCE DISTRIBUTED GENERATION
RENEWABLE ENERGY SOURCES, ENERGY AND WATER EFFICIENCY IMPROVEMENTS
AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND APPROVING THE
AMENDMENT TO A CERTAIN JOINT POWERS AGREEMENT RELATED THERETO
WHEREAS,
the Western Riverside Council of Governments (“Authority”) is a joint
exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the
Government Code of the State of California (Section 6500 and following) (the “Act”) and the
Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the
“Authority JPA”); and
WHEREAS,
Authority intends to establish the California HERO Program to provide for
the financing of renewable energy distributed generation sources, energy and water efficiency
improvements and electric vehicle charging infrastructure (the “Improvements”) pursuant to
Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and
Highways Code (“Chapter 29”) within counties and cities throughout the State of California that
elect to participate in such program; and
WHEREAS,
City of Dublin (the “City”) is committed to development of renewable energy
sources and energy efficiency improvements, reduction of greenhouse gases, protection of our
environment, and reversal of climate change; and
WHEREAS,
in Chapter 29, the Legislature has authorized cities and counties to assist
property owners in financing the cost of Improvements through a voluntary contractual
assessment program; and
WHEREAS,
installation of such Improvements by property owners within the jurisdictional
boundaries of the counties and cities that are participating in the California HERO Program
would promote the purposes cited above; and
WHEREAS,
the City wishes to provide innovative solutions to its property owners to
achieve energy and water efficiency and independence, and in doing so cooperate with
Authority in order to efficiently and economically assist property owners the City in financing
such Improvements; and
WHEREAS,
Authority has authority to establish the California HERO Program, which will
be such a voluntary contractual assessment program, as permitted by the Act, the Authority
JPA, originally made and entered into April 1, 1991, as amended to date, and the Amendment to
Joint Powers Agreement Adding the City of Dublin as an Associate Member of the Western
Riverside Council of Governments to Permit the Provision of Property Assessed Clean Energy
(PACE) Program Services within the City (the “JPA Amendment”), by and between Authority
and the City, a copy of which is attached as Exhibit “A” hereto, to assist property owners within
the incorporated area of the City in financing the cost of installing Improvements; and
ATTACHMENT 1
WHEREAS,
the City will not be responsible for the conduct of any assessment
proceedings; the levy and collection of assessments or any required remedial action in the case
of delinquencies in the payment of any assessments or the issuance, sale or administration of
any bonds issued in connection with the California HERO Program.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Council of the City of Dublin finds and declares that properties in the
City’s incorporated area will be benefited by the availability of the California HERO Program to
finance the installation of Improvements.
2. The City Council of the City of Dublin consents to inclusion in the California HERO
Program of all of the properties in the incorporated area within the City and to the
Improvements, upon the request by and voluntary agreement of owners of such properties, in
compliance with the laws, rules and regulations applicable to such program; and to the
assumption of jurisdiction thereover by Authority for the purposes thereof.
3. The consent of the City Council of the City of Dublin constitutes assent to the
assumption of jurisdiction by Authority for all purposes of the California HERO Program and
authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each
and every step required for or suitable for financing the Improvements, including the levying,
collecting and enforcement of the contractual assessments to finance the Improvements and the
issuance and enforcement of bonds to represent and be secured by such contractual
assessments.
4. The City Council of the City of Dublin hereby approves the JPA Amendment,
attached hereto as Exhibit A, and authorizes the Mayor to execute the Agreement.
5. City staff is authorized and directed to coordinate with Authority staff to facilitate
operation of the California HERO Program within the City.
6. This Resolution shall take effect immediately upon its adoption. The City Clerk is
directed to send a certified copy of this resolution to the Secretary of the Authority Executive
Committee.
PASSED, APPROVED AND ADOPTED
this 6th day of October 2015, by the following
vote:
AYES
:
NOES
:
ABSENT
:
ABSTAIN
:
______________________________
Mayor
ATTEST
:
_________________________________
City Clerk
ATTACHMENT 1
AMENDMENT TO THE JOINT POWERS AGREEMENT
ADDING CITY OF DUBLIN AS
AN ASSOCIATE MEMBER OF THE
WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS
TO PERMIT THE PROVISION OF PROPERTY ASSESSED CLEAN
ENERGY (PACE) PROGRAM SERVICES WITH SUCH CITY
This Amendment to the Joint Powers Agreement (“JPA Amendment”) is made and entered into
on the 6th day of October, 2015, by City of Dublin (“City”) and the Western Riverside Council of
Governments (“Authority”) (collectively the “Parties”).
RECITALS
WHEREAS,
Authority is a joint exercise of powers authority established pursuant to
Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500
and following) (the “Joint Exercise of Powers Act”) and the Joint Power Agreement entered into
on April 1, 1991, as amended from time to time (the “Authority JPA”); and
WHEREAS,
as of October 1, 2012, Authority had 18 member entities (the “Regular
Members”); and
WHEREAS,
Chapter 29 of the Improvement Act of 1911, being Division 7 of the
California Streets and Highways Code (“Chapter 29”) authorizes cities, counties, and cities and
counties to establish voluntary contractual assessment programs, commonly referred to as a
Property Assessed Clean Energy (“PACE”) program, to fund certain renewable energy sources,
energy and water efficiency improvements, and electric vehicle charging infrastructure (the
“Improvements”) that are permanently fixed to residential, commercial, industrial, agricultural or
other real property; and
WHEREAS,
Authority intends to establish a PACE program to be known as the
“California HERO Program” pursuant to Chapter 29 as now enacted or as such legislation may
be amended hereafter, which will authorize the implementation of a PACE financing program for
cities and county throughout the state; and
WHEREAS,
City desires to allow owners of property within its jurisdiction to participate in
the California HERO Program and to allow Authority to conduct proceedings under Chapter 29
to finance Improvements to be installed on such properties; and
WHEREAS,
this JPA Amendment will permit City to become an Associate Member of
Authority and to participate in California HERO Program for the purpose of facilitating the
implementation of such program within the jurisdiction of City; and
WHEREAS,
pursuant to the Joint Exercise of Powers Act, the Parties are approving this
JPA Agreement to allow for the provision of PACE services, including the operation of a PACE
financing program, within the incorporated territory of City; and
WHEREAS,
the JPA Amendment sets forth the rights, obligations and duties of City and
Authority with respect to the implementation of the California HERO Program within the
incorporated territory of City.
MUTUAL UNDERSTANDINGS
NOW, THEREFORE
, for and in consideration of the mutual covenants and conditions
hereinafter stated, the Parties hereto agree as follows:
EXHIBIT A
A. JPA Amendment.
1. The Authority JPA. City agrees to the terms and conditions of the Authority JPA,
attached.
2. Associate Membership. By adoption of this JPA Amendment, City shall become an
Associate Member of Authority on the terms and conditions set forth herein and the
Authority JPA and consistent with the requirements of the Joint Exercise of Powers
Act. The rights and obligations of City as an Associate Member are limited solely to
those terms and conditions expressly set forth in this JPA Amendment for the
purposes of implementing the California HERO Program within the incorporated
territory of City. Except as expressly provided for by the this JPA Amendment, City
shall not have any rights otherwise granted to Authority’s Regular Members by the
Authority JPA, including but not limited to the right to vote on matters before the
Executive Committee or the General Assembly, the right to amend or vote on
amendments to the Authority JPA, and the right to sit on committees or boards
established under the Authority JPA or by action of the Executive Committee or the
General Assembly, including, without limitation, the General Assembly and the
Executive Committee. City shall not be considered a member for purposes of Section
9.1 of the Authority JPA.
3. Rights of Authority. This JPA Amendment shall not be interpreted as limiting or
restricting the rights of Authority under the Authority JPA. Nothing in this JPA
Amendment is intended to alter or modify Authority Transportation Uniform Mitigation
Fee (TUMF) Program, the PACE Program administered by Authority within the
jurisdictions of its Regular Members, or any other programs administered now or in
the future by Authority, all as currently structured or subsequently amended.
B. Implementation of California HERO Program within City Jurisdiction.
1. Boundaries of the California HERO Program within City Jurisdiction. City shall determine
and notify Authority of the boundaries of the incorporated territory within City’s jurisdiction
within which contractual assessments may be entered into under the California HERO
Program (the “Program Boundaries”), which boundaries may include the entire
incorporated territory of City or a lesser portion thereof.
2. Determination of Eligible Improvements. Authority shall determine the types of
distributed generation renewable energy sources, energy efficiency or water conservation
improvements, electric vehicle charging infrastructure or such other improvements as
may be authorized pursuant to Chapter 29 (the “Eligible Improvements”) that will be
eligible to be financed under the California HERO Program.
3. Establishment of California HERO Program. Authority will undertake such proceedings
pursuant to Chapter 29 as shall be legally necessary to enable Authority to make
contractual financing of Eligible Improvements available to eligible property owners within
the Program Boundaries.
4. Financing the Installation of Eligible Improvements. Authority shall develop and
implement a plan for the financing of the purchase and installation of the Eligible
Improvements under the California HERO Program.
EXHIBIT A
5. Ongoing Administration. Authority shall be responsible for the ongoing administration of
the California HERO Program, including but not limited to producing education plans to
raise public awareness of the California HERO Program, soliciting, reviewing and
approving applications from residential and commercial property owners participating in
the California HERO Program, establishing contracts for residential, commercial and
other property owners participating in such program, establishing and collecting
assessments due under the California HERO Program, adopting and implementing any
rules or regulations for the California HERO Program, and providing reports as required
by Chapter 29.
City will not be responsible for the conduct of any proceedings required to be taken under
Chapter 29; the levy or collection of assessments or any required remedial action in the
case of delinquencies in such assessment payments; or the issuance, sale or
administration of any bonds issued in connection with the California HERO Program.
6. Phased Implementation. The Parties recognize and agree that implementation of the
California HERO Program as a whole can and may be phased as additional other cities
and counties execute similar agreements. City entering into this JPA Amendment will
obtain the benefits of and incur the obligations imposed by this JPA Amendment in its
jurisdictional area, irrespective of whether cities or counties enter into similar agreements.
Miscellaneous Provisions.
1. Withdrawal. City or Authority may withdraw from this JPA Amendment upon six (6)
months written notice to the other party; provided, however, there is no outstanding
indebtedness of Authority within City. The provisions of Section 6.2 of the Authority JPA
shall not apply to City under this JPA Amendment. City may withdraw approval for
conduct of the HERO Program within the jurisdictional limits of City upon thirty (30)
written notice to WRCOG without liability to the Authority or any affiliated entity. City
withdrawal shall not affect the validity of any voluntary assessment contracts (a) entered
prior to the date of such withdrawal or (b) entered into after the date of such withdrawal
so long as the applications for such voluntary assessment contracts were submitted to
and approved by WRCOG prior to the date of City’s notice of withdrawal.
2. Mutual Indemnification and Liability. Authority and City shall mutually defend, indemnify
and hold the other party and its directors, officials, officers, employees and agents free
and harmless from any and all claims, demands, causes of action, costs, expenses,
liabilities, losses, damages or injuries of any kind, in law or equity, to property or persons,
including wrongful death, to the extent arising out of the willful misconduct or negligent
acts, errors or omissions of the indemnifying party or its directors, officials, officers,
employees and agents in connection with the California HERO Program administered
under this JPA Amendment, including without limitation the payment of expert witness
fees and attorneys fees and other related costs and expenses, but excluding payment of
consequential damages. Without limiting the foregoing, Section 5.2 of the Authority JPA
shall not apply to this JPA Amendment. In no event shall any of Authority’s Regular
Members or their officials, officers or employees be held directly liable for any damages
or liability resulting out of this JPA Amendment.
3. Environmental Review. Authority shall be the lead agency under the California
Environmental Quality Act for any environmental review that may be required in
implementing or administering the California HERO Program under this JPA Amendment.
EXHIBIT A
4. Cooperative Effort. City shall cooperate with Authority by providing information and other
assistance in order for Authority to meet its obligations hereunder. City recognizes that
one of its responsibilities related to the California HERO Program will include any
permitting or inspection requirements as established by City.
5. Notice. Any and all communications and/or notices in connection with this JPA
Amendment shall be either hand-delivered or sent by United States first class mail,
postage prepaid, and addressed as follows:
Authority:
Western Riverside Council of Governments
4080 Lemon Street, 3rd Floor. MS1032
Riverside, CA 92501-3609
Attn: Executive Director
City:
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: City Manager
6. Entire Agreement. This JPA Amendment, together with the Authority JPA, constitutes the
entire agreement among the Parties pertaining to the subject matter hereof. This JPA
Amendment supersedes any and all other agreements, either oral or in writing, among
the Parties with respect to the subject matter hereof and contains all of the covenants
and agreements among them with respect to said matters, and each Party acknowledges
that no representation, inducement, promise of agreement, oral or otherwise, has been
made by the other Party or anyone acting on behalf of the other Party that is not
embodied herein.
7. Successors and Assigns. This JPA Amendment and each of its covenants and
conditions shall be binding on and shall inure to the benefit of the Parties and their
respective successors and assigns. A Party may only assign or transfer its rights and
obligations under this JPA Amendment with prior written approval of the other Party,
which approval shall not be unreasonably withheld.
8. Attorney’s Fees. If any action at law or equity, including any action for declaratory relief
is brought to enforce or interpret the provisions of this Agreement, each Party to the
litigation shall bear its own attorney’s fees and costs.
9. Governing Law. This JPA Amendment shall be governed by and construed in
accordance with the laws of the State of California, as applicable.
10. No Third Party Beneficiaries. This JPA Amendment shall not create any right or interest
in the public, or any member thereof, as a third party beneficiary hereof, nor shall it
authorize anyone not a Party to this JPA Amendment to maintain a suit for personal
injuries or property damages under the provisions of this JPA Amendment. The duties,
obligations, and responsibilities of the Parties to this JPA Amendment with respect to
third party beneficiaries shall remain as imposed under existing state and federal law.
EXHIBIT A
11. Severability. In the event one or more of the provisions contained in this JPA
Amendment is held invalid, illegal or unenforceable by any court of competent
jurisdiction, such portion shall be deemed severed from this JPA Amendment and the
remaining parts of this JPA Amendment shall remain in full force and effect as though
such invalid, illegal, or unenforceable portion had never been a part of this JPA
Amendment.
12. Headings. The paragraph headings used in this JPA Amendment are for the
convenience of the Parties and are not intended to be used as an aid to interpretation.
13. Amendment. This JPA Amendment may be modified or amended by the Parties at any
time. Such modifications or amendments must be mutually agreed upon and executed in
writing by both Parties. Verbal modifications or amendments to this JPA Amendment
shall be of no effect.
14. Effective Date. This JPA Amendment shall become effective upon the execution thereof
by the Parties hereto.
IN WITNESS WHEREOF
, the Parties hereto have caused this JPA Amendment to be
executed and attested by their officers thereunto duly authorized as of the date first above
written.
[SIGNATURES ON FOLLOWING PAGES]
EXHIBIT A
WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS
By: Date:
Executive Committee Chair
Western Riverside Council of Governments
CITY OF DUBLIN
By: Date:
Mayor
City of Dublin
EXHIBIT A