HomeMy WebLinkAboutRES 2013-19RESOLUTION NO. 2013-19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND
BAR, 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 Diamond Bar (the "City") is committed to development of renewable energy
sources and energy efficiency improvements, reduction of greenhouse gases, protection of our
environment, and reversal of climate change; and
WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist property
owners in financing the cost of installing Improvements through a voluntary contractual assessment
program; and
WHEREAS, installation of such Improvements by property owners within the jurisdictional
boundaries of the counties and cities that are participating in the California HERO Program would
promote the purposes cited above; and
WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve
energy and wafter 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,
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originally made and entered into April 1, 1991, as amended to date, and the Amendment to Joint
Powers Agreement Adding the City of Diamond Bar as an Associate Member of the Western
Riverside Council of Governments to Permit the Provision of Property Assessed Clean Energy
(PACE) Program Services within the City (the "JPA Amendment"), by and between Authority and the
City, a copy of which is attached as Exhibit "A" hereto, to assist property owners within the
incorporated area of the City in financing the cost of installing Improvements; and
WHEREAS, the City will not be responsible for the conduct of any assessment proceedings;
the levy and collection of assessments or any required remedial action in the case of delinquencies in
the payment of any assessments or the issuance, sale or administration of any bonds issued in
connection with the California HERO Program.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. This City Council finds.and declares that properties in the City's incorporated area will
be benefited by the availability of the California HERO Program to finance the installation of
Improvements.
2. This City Council 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 this City Council constitutes assent to the assumption of jurisdiction by
Authority for all purposes of the California HERO Program and authorizes Authority, upon satisfaction
of the conditions imposed in this resolution, to take each and every step required for or suitable for
financing the Improvements, including the levying, collecting and enforcement of the contractual
assessments to finance the Improvements and the issuance and enforcement of bonds to represent
and be secured by such contractual assessments.
4. This City Council hereby approves the JPA Amendment and authorizes the execution
thereof by appropriate City officials.
5. City staff is authorized and directed to coordinate with Authority staff to facilitate
operation of the California HERO Program within the City, and report back periodically to this City
Council on the success of such program.
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.
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PASSED, APPROVED, AND ADOPTED this 16th day of July, 2013.
Jack Tanaka, Mayor
I, Tommye A. Cribbins, City Clerk of the City of Diamond Bar, California, do hereby certify that the
foregoing Resolution No. 2013- was duly and regularly passed and adopted by the City Council of
the City of Diamond Bar, California, at its adjourned regular meeting held on the 16th day of July,
2013, by the following vote, to wit:
AYES: COUNCILMEMBERS: Chang, Herrera, Tye, MPT/Everett,
M/Tanaka.
NOES: COUNCILMEMBERS: None
ABSENT: . COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
tr
Tam ye A. Cribbins, City Clerk
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EXHIBIT A
AMENDMENT TO THE JOINT POWERS AGREEMENT
ADDING CITY OF DIAMOND BAR AS AN ASSOCIATE MEMBER OF THE
WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS TO PERMIT THE
PROVISION OF THE CALIFORNIA HERO PROGRAM SERVICES WITH SUCH CITY
This Amendment to the Joint Powers Agreement ("JPA Amendment") is made and entered into on the
16 day of July, 2013, by City of Diamond Bar ("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 Bond Act of 1911, being Division 7 of the California
Streets and Highways Code ("Chapter 29") to authorize cities, counties, and cities and counties to
establish voluntary contractual assessment programs, commonly referred to as a Property Assessed
Clean Energy ("PACE") program, to fund various renewable energy sources, energy and water
efficiency improvements, and electric vehicle charging infrastructure (the "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 Government Code sections 6500 et seq., the Parties are approving this JPA
Agreement to allow for the provision of PACE services, including the operation of a PACE financing
program, within the incorporated territory of City; and
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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 c
City.
MUTUAL UNDERSTANDINGS
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter
stated, the Parties hereto agree as follows:
A. JPA Amendment.
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
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, right to amend or vote on amendments to the Authority JPA, and right to sit on committees
or boards established under the Authority JPA or by action of the Executive Committee or the
General Assembly, including, without limitation, the General Assembly and the Executive Committee
City shall not be considered a member for purposes of Section 9.1 of the Authority JPA. City shall no
be bound by any subsequent amendments of the Authority JPA not expressly agreed to by City.
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.
4. Rights of City. This JPA Amendment shall be not interpreted as limiting or restricting
the rights of City to establish parameters or limitation on upon the HERO Program as it is conducted
within City's jurisdiction.
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, upon approval of same by City Council.
2. Determination of Eligible Improvements. Subject to any parameters or limitation,
provided in the resolution of City approving the conduct of the HERO Program within City',,
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jurisdiction, 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 with the California HERO
Program Boundaries and will be solely responsible for the conduct of such proceedings.
4. Financing the Installation of Eligible Improvements. Upon approval of the conduct of the
HERO Program within City's jurisdiction, Authority shall be solely 'responsible to develop and
implement a plan for the financing of the purchase and installation of the Eligible Improvements under
the California HERO Program.
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 PACE program, and providing reports as required
by Chapter 29.
City will not be responsible for the conduct of any proceedings required to be taken under Chapter 29;
the levy or collection of assessments or any required remedial action in the case of delinquencies in
such assessment payments; or the issuance, sale or administration of the Bonds or any other bonds
issued in connection with the California HERO Program.
6. Phased Implementation, The Parties recognize and agree that implementation of the
California HERO Program as a whole can and may be phased as additional other cities and counties
execute similar 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.
C. . Miscellaneous Provisions.
9. Withdrawal. Authority may withdraw from this JPA Amendment upon six (6) months
written notice to City; 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.
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2. Indemnification and Liability. Authority shall defend, indemnify and hold City 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 lay
or equity, to property or persons, including wrongful death, to the extent arising out of the acts, errors
or omissions of Authority 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, provided that the Authority shall not be required to
defend or indemnify City and its directors, officials, officers, employees and agents for City's sole
negligence or willful misconduct. Without limiting the foregoing, Section 5.2 of the Authority JPA shall
not apply to this JPA Amendment. In no event shall any of Authority's Regular Members or their
officials, officers or employees be held directly liable for any damages or liability resulting out of this
JPA Amendment.
3. Environmental Review. Authority shall be the lead agency under the California
Environmental Quality Act for any environmental review that may required in implementing or
administering the California HERO Program under this JPA Amendment.
4. Cooperative Effort. City shall cooperate with Authority by providing information and
other assistance in order for Authority to meet its obligations hereunder. City recognizes that one of
its responsibilities related to the California HERO Program will include any permitting or inspection
requirements as established by City. City's cooperation shall not be interpreted to require any
approvals without appropriate review or that any discretionary authority of City be exercised other
than as provided by law.
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
Att: Executive Director
City:
City of Diamond Bar
21810 Copley Drive
Diamond Bar, CA 91765
Attn: James DeStefano, 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 JP)
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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.
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.
WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS
By: Date:
Executive Committee Chair
Western Riverside Council of Governments
CITY C
Title:
Date:l�
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ATTACHMENT 2
he rO" Frequently Asked Questions March 12, 2013
Q: What is the HERO Program, and how does it work?
A; HERO enables residential and commercial property owners to install energy and water efficient improvements
and renewable energy systems by having a special assessment put on their property tax bill. Payments are
made through their local county with their property taxes over time.
Q: What types of home improvements are available under the Program?
A: Over 150,000 products and services quality. Typical projects include: solar photovoltaic (PV) systems; energy
efficient space heating, air cooling and ventilation (HVAC); cool roof systems; energy efficient windows, skylights,
and doors; solar thermal water heating; air sealing and weatherization; insulation; water heating; indoor energy
efficient light fixtures; and water efficiency measures,
Q: What are the costs and benefits of joining HERO for my community?
A: There are no hard costs to joining the HERO program and it does not require any dedicated staff resources to
develop or implement the Program. Additionally, your community will see numerous economic benefits including;
• Reduced energy consumption
• Stimulated local businesses
• Created/retained sustainable jobs
• Lowered greenhouse gas emissions
Q: Why should we choose HERO compared to another PACE program?
A. HERO is the nation's fastest-growing PACE program. By choosing HERO, your community is choosing a program
with a proven track -record of stimulating economic growth. The program was developed with a network of home
improvement contractors who count on HERO to build their businesses. They are creating now jobs everyday
and planning on expanding into regions where HERO Financing is offered.
HERO is not an exclusive program so you don't have to choose it over another program. We believe competition
is an important benefit to consumers. Not only does it provide options like restaurants, gas stations or banks
provide but it also increases overall demand because more companies are working harder to educate consumers
on the benefits of a particular type of product or service. When there are multiple options to consider solution
providers are forced to continually improve their product if they want to succeed in the marketplace.
Q: What about Freddie/FannielFHFA?
A: PACE legislation was adopted by the State of California to encourage the adoption of energy efficiency,
renewable energy and water efficiency measures on homes and businesses. When the legislation was enacted,
many people believed PACE was an attractive financing option due to its ability to automatically transfer
payments to a new owner if the property sold. Fred die/Fannie/FHFA have indicated that they are not willing to
purchase mortgages with PACE assessments on the property, therefore, property owners that sell or refinance to
conforming loans may need to repay their assessment.
The HERO Program works within this provision and we have found that property owners are comfortable
attending to this if, and when, the situation should arise. For most property owners the most attractive benefits are
low interest rates that are fixed, the ability to deduct the interest portion of the payments, the ability to select 5, 10,
15 and 20 year payment terms, and a simple straightforward application and document process to enable them to
get the energy efficiency, renewable energy or water efficiency product they are interested in. Being able to
transfer the balance of the financing has not proven to be a feature that has impacted a consumer's decision.
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OR, h e
N Frequently,
March 12, 2013
Whether or not this provision remains in place or is removed, HERO provides numerous benefits that make PACE
an attractive financing option for consumers.
Q: Who is the HERO Team?
A: The HERO team is made up of a network of partners who have been working closely since January 2010 on
active residential and commercial PACE programs. Each team member is uniquely qualified for their specific role
and are industry experts within their field.
Public Financing Management
Program Manager! Rneneial Adviser
Q: Can the HERO Program be customized to my municipality?
A: Yes, marketing materials, including the HERO website and contractor training materials, can be co -branded with
your municipality's logo and contact information. Additionally, the HERO team will work with your municipality to
review all policy considerations.
Q: Can the HERO Program be integrated with existing municipal programs?
A: Yes, the HERO Program can be integrated with existing municipal rebate, energy finance, or other PACE
programs. Our team will work to implement the Program as a complementary component to other programs.
Q; How does our community get started?
A: Below are the process steps for HERO Financing to be offered in your community:
1 Approve Resolution
Approval by municipality of the resolution will allow the HERO Program to operate in the municipality.
The conduit issuer then completes a corresponding acceptance of the municipality to the Program.
2 Judicial Validation of City's Participation
Program legal counsel files judicial validation documents.
3 Program Marketing and Outreach
Curing the program validation phase, team members initiate local marketing efforts and begin outreach to
educate local contractors and property owners of funding availability, eligibility and application
procedures.
4 Program Launch
Upon completion of the validation process, the HERO Program launches and projects are able to apply
for and receive funding.
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2013-19
SAMAS CAPITAL
nAV[n TAUSSIG
Best Best & Kreiger LLP
Renovate America
Samas Capital
David T8' ASsaciATESsociates
Westhoff, Cone &Moi
Band Counsel
Residential Admin and Funding
Commercial Admin and Funding
Assessment Administration
Placement Agent
Q: Can the HERO Program be customized to my municipality?
A: Yes, marketing materials, including the HERO website and contractor training materials, can be co -branded with
your municipality's logo and contact information. Additionally, the HERO team will work with your municipality to
review all policy considerations.
Q: Can the HERO Program be integrated with existing municipal programs?
A: Yes, the HERO Program can be integrated with existing municipal rebate, energy finance, or other PACE
programs. Our team will work to implement the Program as a complementary component to other programs.
Q; How does our community get started?
A: Below are the process steps for HERO Financing to be offered in your community:
1 Approve Resolution
Approval by municipality of the resolution will allow the HERO Program to operate in the municipality.
The conduit issuer then completes a corresponding acceptance of the municipality to the Program.
2 Judicial Validation of City's Participation
Program legal counsel files judicial validation documents.
3 Program Marketing and Outreach
Curing the program validation phase, team members initiate local marketing efforts and begin outreach to
educate local contractors and property owners of funding availability, eligibility and application
procedures.
4 Program Launch
Upon completion of the validation process, the HERO Program launches and projects are able to apply
for and receive funding.
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