CC - 2010-36 - L.A County Energy Program to Finance Distributed Generation Renewable Energy Sources and Water Effeciency Improvements
RESOLUTION NO. 2010-36
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
STATE OF CALIFORNIA, 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 PROGRAM 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
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 Program Report attached
hereto as Exhibit A (the "Program Report") and such Program 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
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 of Rosemead desires to participate with the County in LACEP,
under terms and conditions agreed to by Rosemead and the County, and provide for
participation in LACEP by property owners located within Rosemead City limits; and
WHEREAS, this Council of the City of Rosemead has reviewed the Program Report;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the
Council of the City of Rosemead as follows:
SECTION 1. The recitals set forth hereinabove are true and correct in all respects.
SECTION 2. This City Council finds and declares that properties in the City of
Rosemead's incorporated area will be benefited by participation in LACEP.
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
I, Gloria Molleda, City Clerk of the City of Rosemead, do hereby certify that the foregoing
Resolution No. 2010-36 being:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, STATE OF
CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE
INCORPORATED AREA OF THE CITY IN THE LOS ANGELES COUNTY ENERGY
PROGRAM TO FINANCE DISTRUBUTED GENERATION RENEWAL ENERGY
SOURCES AND ENERGY AND WATER EFFECIENCY IMPROVEMENTS
IMPROVEMEMTS, APPROVING THE PROGRAM REPORT SETTING FORTH THE
PARAMETERS OF THE REFERENCE PROGRAM AND, CERTAIN MATTERS IN
CONNECTION THEREWITH
was duly and regularly approved and adopted by the Rosemead City Council on the 13th of July,
2010, by the following vote to wit:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
Gloria Molleda
City Clerk
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 Program 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 of Rosemead, as same may be
amended through an from time to time, the acquisition, construction and
installation within Rosemead City limits of the Improvements set forth in the Program
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 of
Rosemead to participate in the LACEP. 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 6. 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 7. 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 Program Report, as may be amended from time to time, and approved
by this Resolution, and all matters incidental thereto.
PASSED, ADOPTED AND APPROVED this 13th day of July 2010.
Gary T 01r, Mayor
ATTEST:
Gloria Molleda, City Clerk
Approved as to Form:.
By: d2u )OW
oseph M. M ntes
Burke, Williams & Sorensen, LLP
City Attorney
E M F
S
Qr0 ~ ROSEMEAD CITY COUNCIL
STAFF REPORT
/NCORPORRTED 1059
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER G%
DATE: JULY 13, 2010
SUBJECT: ADOPTION OF RESOLUTION AUTHORIZING PARTICIPATION IN THE
LOS ANGELES COUNTY ENERGY PROGRAM
SUMMARY
Assembly Bill 811 (AB 811) was approved by the State Legislature and signed by the
Governor on July 21, 2008. AB 811 and its amendments authorize local governments
to provide financing to qualified property owners for the installation of energy and water
efficiency improvements and distributed generation renewable energy sources that are
permanently fixed to their respective properties. Participating property owners repay
the cost of the improvements through an assessment levied against their property which
is payable in semi-annual installments on property tax bills and a lien is filed against the
property as security. The assessment remains with the property should the owner
transfer or sell it.
On May 25, 2010 the County of Los Angeles approved the Los Angeles County Energy
Program (LACEP) which is an AB 811 voluntary contractual assessment program to
finance the installation of such improvements within the unincorporated areas of the
County. These voluntary contractual assessments may also be entered into by property
owners in incorporated cities subsequent to the adoption of a resolution of participation
in LACEP by the legislative body of the incorporated city.
RECOMMENDED ACTION
It is recommended that City Council adopt Resolution No. 2010-36 authorizing
participation in the Los Angeles County Energy Program.
DISCUSSION
LACEP Financing under AB 811 mitigates two key barriers that may prevent property
owners from implementing a greater number of energy efficiency, water efficiency and
renewable energy projects: 1) it eliminates the need for property owners to pay out of
pocket up-front costs for improvements; and 2) it establishes a loan obligation that is
attached to the property and not to the individual borrower. LACEP is intended to
facilitate a significant industry shift in the region toward a greater energy efficiency and
renewable energy resource economy. The availability of AB 811 financing can be a
catalyst in spurring the local economy by creating green home energy retrofit jobs and
stimulating development of local manufacturing, distribution, research and development
APPROVED FOR CITY COUNCIL AGENDA:
ITEM NO. -In
City Council Report
July 13, 2010
Page 2 of 4
activities. Energy retrofit improvements to existing properties in the County will allow
property owners to reduce energy and water use as well as greenhouse gas emissions.
At the same time, participants will reduce their ongoing costs for electricity, natural gas
and water and improve the comfort and safety of their home. Additional benefits to
participants and to the City are detailed below.
Benefits to property owners include:
• Up-front funding for improvements will be provided by the County, allowing many
property owners who currently can't afford to make such investments the
opportunity to upgrade their property.
• Only property owners who choose to participate in the program will have
assessments attached to their property.
• There currently may not be attractive private lending alternatives for many
property owners to finance energy efficiency/water efficiency/renewable energy
improvements.
• Even if private lending alternatives exist, most private loans are due upon sale of
the property, which may make it difficult for property owners to match the life of
the repayment obligation with the useful life of the financed improvements. Under
LACEP, the assessment obligation will transfer to the new property owner upon
sale.
• By virtue of countywide aggregation provided by LACEP, both residential and
commercial properties will benefit from lower borrowing costs in the municipal
bond market.
Benefits to the City of Rosemead include:
• The city's participation in LACEP is free.
• As in conventional assessment financing, the City is not obligated to repay the
bonds issued by the County of Los Angeles or to pay the assessments levied on
the participating properties.
• The County of Los Angeles handles all assessment administration, bond
issuance and bond administration functions. As a participant, the City can
provide property owners with access to financing of energy efficiency, water
efficiency and renewable energy improvements through LACEP - thereby
helping to meet its local environmental economic development goals without
committing staff time to design, implement and administer the program.
The first phase of LACEP will fund improvements to residential properties. It is
anticipated that loans to eligible residential applicants will begin disbursement after
September 1, 2010. A subsequent phase of LACEP will fund improvements to non-
residential (commercial) properties following full implementation of residential financing.
County staff and consultants are currently working with commercial building and
financial industry stakeholders to design the non-residential program. Future
implementation of the non-residential phase of LACEP will not require any additional
approvals from the City. At that time, all non-residential property owners within
City Council Report
July 13, 2010
Page 3 of 4
participating cities will be eligible to apply for voluntary contractual assessment
financing from LACEP.
Property owners will have access to LACEP information through a variety of sources,
including access to a comprehensive website that includes an online loan application
process. Basic marketing and outreach material templates will be provided by the
County at no charge for use by the City in its own promotion of the program within the
community.
The contractual assessment proceedings will be undertaken by the County of Los
Angeles pursuant to Chapter 29 of Division 7 of the Streets & Highways Code, which
was amended in 2008 by Assembly Bill 811 and further amended in 2009 by Assembly
Bill 474, to allow the financing of renewable energy, energy efficiency and water
efficiency improvements on private property. Pursuant to Chapter 29, assessments
may be levied to finance energy efficiency, water efficiency and renewable energy
improvements only with the free and willing consent of the owner of each lot or parcel
on which an assessment is levied and once property owners evidence their consent to
the assessments by executing a contract with the County of Los Angeles.
The attached resolution authorizes the County of Los Angeles to accept applications
from owners of property within the City of Rosemead for financing of energy efficiency,
water efficiency and renewable energy improvements through LACEP. It also authorizes
the County to conduct assessment proceedings and levy assessments against the
property of participating owners within City boundaries. Finally, it authorizes
miscellaneous related actions and makes certain findings and determinations required
by law. The County of Los Angeles will undertake a judicial validation proceeding as
part of its initiation of LACEP. The City can withdraw from LACEP at any time by
passing a resolution rescinding the authorization.
FISCAL IMPACT
There are no fiscal impacts to the City of Rosemead from adoption of the attached
resolution.
LEGAL REVIEW
The attached Resolution was reviewed and approved by the City Attorney.
PUBLIC NOTICE PROCESS
This item was noticed through the regular agenda notification process.
Prepared by:
;at Piatt
Management Analyst
City Council Report
July 13, 2010
Page 4 of 4
Submitted by:
(Vt, c
Stan Wong ~)r-
Community Development Director
Attachment A: Resolution 2010-36