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SR-071310-1BCity Council Meeting: July 13, 2010 Agenda Item: _1B_ To: Mayor and City Council From: Dean Kubani, Director of Office of Sustainability and the Environment Subject: Adoption of Resolution Authorizing Participation in the Los Angeles County Energy Program Recommended Action Staff recommends that City Council adopt a resolution of participation authorizing the City of Santa Monica to join the Los Angeles County Energy Program (LACEP). Executive Summary This report provides information on the Los Angeles County Energy Program (LACEP) and a resolution to include Santa Monica properties in the County's energy efficiency and renewable energy loan program. Under the LACEP program, homeowners will have a choice of energy and water efficiency upgrade packages and options, including solar system installation, that qualify for rebates and incentives. The program will also provide aone-stop shop where homeowners can find information about all the Federal, State, County, and utility rebates and incentives available. The City will use $70,000 of its EECBG formula block grant for marketing and public outreach to Santa Monica residents about the program. LACEP is scheduled to begin in Fall 2010. Background 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. A lien is filed against the 1 property as security until the assessment is re-paid. The assessment remains with the property should the owner transfer or sell the property before the loan is re-paid. On May 25, 2010 the County of Los Angeles County Board of Supervisors approved an AB 811 voluntary contractual assessment program, LACEP, 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. 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. By virtue of countywide aggregation provided by LACEP, both residential and. commercial properties will benefit from lower borrowing costs in the municipal bond market. 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 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. The County of Los Angeles will provide all assessment administration, bond issuance and bond administration functions for the LACEP program. As a participant, 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. 2 The City will provide marketing and outreach about the program to Santa Monica residents using a portion of the Energy Efficiency Community Block Grant (EECBG) funding it received from the Department of Energy earlier this year. Participation in the LACEP will not require any additional funding on the part of the City. 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 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 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. 3 The attached resolution authorizes the County of Los Angeles to accept applications from owners of property within the City of Santa Monica 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. Financial Impacts & Budget Actions There are no direct financial impacts associated with adoption of this resolution. $70,000 of EECBG grant funding is available in account number 0204045.589030 to fund marketing and outreach activities when the LACEP program begins in Fall 2010. Prepared by: Susan Munves, Energy and Green Building Programs Administrator Approved: ~'\ Y" `"' Dean Kubani Director, Office of Sustainability and the Environment Forwarded to Council: ~.._ , Rod Gould City Manager Attachments: A. Resolution 4 County of Los Angeles CHIEF EXECUTIVE OFFICE Kenneth Hahn Hall of Administration 5D0 West Temple Street, Room 713, Los.Angeles, California 90012 (213) 974110t http:f/ceo.lacounty.gov WILLIAM T FUJIOKA Chief Executive Officer ADOPTED BOARD OF SUPERVISORS COUNTYDF LOS ANGELES Board of Supervisors GLORIA MOLINA First District April 6, 2010 The Honorable Board of Supervisors County of Los Angeles 383 Kenneth Hahn Hall of Administration 500 West Temple Street Los Angeles, CA 90012 Dear Supervisors: 12 April 6, 2010 r St1CHl A FIANifJ IXECUTIVE OEFlCER SET: May 25, 2010 @ 9:30 a.m. MARK RIDLEY-THOMAS Second District ZEV YAROSLAVSKY Third District DON KNABE Fourth District MICHAEL D. ANTONOVICH Fifth District ADOPTION OF THE RESOLUTION OF INTENTION TO IMPLEMENT THE LOS ANGELES COUNTY ENERGY PROGRAM (ALL DISTRICTS) (3 VOTES) SUBJECT Adoption of the enclosed Resolution df Intention will initiate the formation of a voluntary contractual assessment program in accordance with California Assembly Bill 811 (AB 811), which was approved by the State Legislature and signed by the Governor on July 21, 2008. The program will provide financing to qualified property owners within the County of Los Angeles for the installation of energy and water efficiency improvements to their respective properties. Participating property owners will repay the cost of the improvements through an assessment levied against their property which is payable in semi-annual installments on property tax bills. Voluntary contractual assessments may be entered into by property owners in unincorporated areas of the County and in incorporated cities, subsequent to adoption of a resolution of participation in the Los Angeles County Energy Program by the legislative body of the incorporated city. IT IS RECOMMENDED THAT YOUR BOARD: Adopt the enclosed Resolution of Intention to approve the following items: Find that the proposed project is exempt from the California Environmental Quality Act for the reasons stated in this letter and in the Resolution of Intention; 2. Declare your Board's intention to implement a contractual assessment program to finance the installation of distributed generation renewable energy sources and energy and water efficiency improvements within the County; 3. Direct the Internal Services Department (ISD) to prepare and file with your Board a Program Report pursuant to Section 5898.22 of the Cal'rfornia Streets and Highways Code; Please Conserve Paper- This Document and Copies are Two-Sided Irdre-County Correspondence Sent Electronically Only Honorable Board of Supervisors April 6, 2010 Page 2 4. Ratify a written notice of the proposed program delivered to all providers of water, natural gas, or electric power within the boundaries of the County; and 5. Set a public hearing date of May 25, 2010, as provided for in the Resolution of Intention, and direct the Executive Officer of the Board to publish a notice of public hearing no later than 20 days before the date of the public hearing, pursuant to Section 6066 of the Government Code. PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION On July 21, 2008, the Governor signed AB 811 which, as amended, allows local governments to finance energy and water efficiency, and distributed generation renewable energy projects (collectively known as Improvements) that are permanently fixed to residential, commercial, industrial, or other real property. The financing is repaid through annual assessments on the property tax bill and a lien is filed against the property as security. The assessment remains with the property should the owner transfer or sell it. The Los Angeles County Energy Program (LACEP) is the contractual assessment program of the County under AB 811. LACEP financing under AB 811 mitigates two key barriers that prevent property owners from implementing a greater number of energy projects: 1) it eliminates the need for property owners to pay up-front costs for improvements out of pocket, and 2) it establishes a loan obligation that is attached to the property and not to the individual borrower. During the program's initial two year operating period, LACEP is expected to achieve 15,000 home energy retrofits, which have the potential to add $150 million to the local economy. LACEP is intended to facilitate a significant industry shift in the region toward a greater energy efficient and renewable energy resource economy. The availability of AB 811 financing can be a catalyst in spurring the local economy by creating an estimated 1,600 "green" home energy retrofit jobs, and up to 1,000 ancillary jobs in areas, such as jobs training and workforce development, local manufacturing and distribution, and research and development. Implementation of improvements to existing properties in the County will help the State and County reduce greenhouse gas emissions by 20,000 tons of carbon dioxide annually. Property owners can help achieve greenhouse gas reductions, reduce water and energy use, and, at the same time, save money by investing in improvements. Residents will have access to LACEP information through a variety of sources, including Environmental Service Center locations, online access, and community events. LACEP will fund improvements to non-residential (e.g., commercial} properties after implementation of residential financing. ISD staff and consultants are working with commercial building and financial industry stakeholders to design the non-residential program. ISD staff and consultants will seek to address impediments to implementing retrofits in smaller commercial buildings (i.e., landlords are often reluctant to invest in buildings where tenants pay the utilities and the landlords do not see a direct savings, while tenants do not want to make long-term investments in buildings that they may occupy on a short-term basis). A number of stakeholder groups are being engaged during the program design phase, including contractors, workforce development agencies, organized labor, building industry associations, home efficiency and solar equipment providers, property owner associations, County and city staff, the utility industry, and the mortgage and banking industry. Market research is being Honorable Board of Supervisors April 6, 2010 Page 3 conducted to develop an effective outreach campaign that will leverage the Whole House Retrofit programs being implemented by natural gas and electric utilities throughout Cal'rfornia. LACEP outreach initiatives will be coordinated with Statewide efforts to provide consistent training for contractors, utilize existing credentialing and certification programs, and streamline the application process for participants. The required program report will provide a summary of LACEP for the general public and cities considering participation. The program report will be completed and filed with your Board in advance of the public hearing to be held no sooner than 45 days following adoption of the attached Resolution of Intention (Attachment A). A written notice of the proposed contractual assessment program {Attachment B) has been delivered to all public and private providers of water, natural gas, andlor electric power within the boundaries of the County of Los Angeles. This notice informs such providers that your Board intends to create the LACEP and-will present an opportunity for comment at the public hearing to be held on May 25, 2010. IMPLEMENTATION OF STRATEGIC PLAN GOALS By providing financing that may not otherwise be readily available to property owners, the County is promoting energy and water conservation, and the reduction of greenhouse gas emissions, which supports the County Strategic Plan Goal 1, Operational Effectiveness. This action also supports the County Strategic Plan Goal 3, Community and Municipal Services, by providing property owners a means to finance improvements that will result in utility cost- savings and improve their quality of life. FISCAL IMPACT/FINANCING In October 2009, your Board accepted the County's allocation of $15.4 million in Energy Efficiency .and Conservation Block Grant {EECBG} funding received under the American Recovery and Reinvestment Act (ARRA). The County has identified approximately $12.2 million of this EECBG funding to support the implementation of its AB 811 program and related activities, including Environmental Service Centers and public information and outreach. The County has applied for additional grant funding to support the AB 811 program development costs, marketing and incentives, and interest rate reductions for participating homeowners. ISD will continue to pursue grant opportunities as they are identified and will advise the Board of the status of these efforts. A portion of the County's administrative costs (e.g., program management, application processing, etc.) will be paid by the property owners who voluntarily participate. in this program. To fund the cost of the improvements, the County plans to obfain fnarcing both from private lenders and through the issuance of bonds in the public capital markets. The County will make these funds available to qualifying property owners, for allowable improvements. The debt incurred during this process will be repaid by assessments on the property tax bills and will not be an obligation of the County. In the event that the assessment is delinquent and property taxes remain unpaid, the County shall have the .right to initiate foreclosure proceedings on the subject property. The foreclosure policy must take into consideretion many factors and has yet to be finalized. Your Board's approval will be obtained for any such policy recommendation. Honorable Board of Supervisors April 6, 2010 Page 4 Since participation is voluntary, the property taxes for non-participating property owners are unaffected by the program. The table below provides estimates for three typical retrofit improvement projects; including project costs, semi-annual assessment amounts, and utility bill savings. The case studies range from: 1) a basic retrofit with some additional easy to install measures, such as Energy Star bathroom fans, programmable thermostat, and energy efficient light fixtures to, 2) a basic retrofit with a heating and air conditioning system replacement to, 3) a basic retrofit that incorporates a solar photovoltaic power system. Available tax credits have not been included, but could result in additional savings. ; S _ ~. :.. ~ DRO S ~ ASS161E~IT ~ 'ESTIMA'TED _ ~S'n1f~FATEE~~,. TYPICAL HOME RETROFIT Pt~QJEfYT jXtF7t=E2 '~ ~N~A~_ ~(N~~TyU~,:, PROJECTS;4NALYSIS ,COST ;dN F AND A~$ESSA~1~NT =SAVINGS' Basic Retrofit $6,000 $5,500 $549 $454 (insulation, duct sealing, weather stripping, plus easy to install measures BasicRetro£t+HVAC $15,000 $13,200 $1,317 - $681 Replacement (includes heating, ventilation, and air conditionin s stem Basic Retrofit+Solar $25,500 $20,020 $1,997 $1,549 Photovoltaic P Estimates do not include lax credits orthe potential income tax impact of deductible interest. Results based on a "typical" L.A. County residence and project. Results will vary by home condition, location, etc. For this illustration, the examples assume a 9% interest cost and a 20 year term. Actual interest will depend on market rates. The implementation of this program will have no impact on net County cost. FACTS AND PROVISIONSI LEGAL REQUIREMENTS These proceedings are governed by Chapter 29 of Part 3 of Division 7 of the Streets and Highways Code. of the State of California (Act). Pursuant to the Act, counties and cities are authorized- to assist free and willing property owners in financing improvements that are permanently fixed to residehtiai, commercial, industrial, or other real property through a voluntary contractual assessment program. Pursuant to Section 5898.26 of the Act, your Board is required to hold a public hearing where the program report will be presented and all public comments regarding the proposed voluntary contractual assessment program will be heard and considered. The Executive Officer of the Board will cause the notice of public hearing to be published pursuant to Section 6066 of the Government Code. Honorable Board of Supervisors Apri16, 2010 Page 5 ENVIRONMENTAL DOCUMENTATION. The proposed project is categorically exempt from the California Environmental Quality Act (CEQA). The project, to establish the Los Angeles County Energy Program, is a voluntary contractual assessment program to finance the installation of renewable energy sources, and energy and water efficiency improvements. The project meets the criteria set forth in Section 15308 of the State CEQA Guidelines and Class 8 of the County's Environmental Document Reporting Procedures and Guidelines, Appendix G, in that it is an action taken by a regulatory agency, as authorized by State law, to ensure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. Therefore, the project is within a class of projects that has been determined not to have a significant effect on the environment. In addition, there are no cumulative impacts, unusual circumstances, or other limiting factors that would. make the exemption inapplicable based on the project records. IMPACT ON CURRENT SERVICES (OR PROJECTS The implementation of the program will have no impact on current services. The program will reduce greenhouse gases, improve energy efficiency, and create jobs within the County. CONCLUSION Upon approval of the Resolution of Intention, it is requested that the Executive Officer of the Board return three originally executed copies of the adopted Resolution of Intention to the Chief Executive Office, Internal Services Department, and Treasurer and Tax Collector. Respectfully s bmitted, WILLIAM T FUJIOKA Chief Executive Officer Respectfully submitted, \ } RK J. SALADINO Tr asurer and Tax Collector WTF:TT:MS:ES:jj Attachments c: Assessor County Counsel Executive Officer, Auditor-Controller Board of Supervisors Respectfully submitted, Tjilc2 ~~ Z~"~"~Pr-~ TOM TINDALL Director, Internal Services Department 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 INSTALLATION 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 Highways Code of the State of Califomia (the "Act") 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 progam to finance the installation of the Improvements in an area that enwmpasses the entire County pursuant to the Act; NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Los Angeles (the "Board of Supervisors") as follows: Section 1. Determination of Public Interest. The Boazd of Supervisors hereby finds and deternnines 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 azea within which authorized County officials and property owners may enter into voluntary contractual assessments to finance the installation of Improvements pursuant to 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 Impravements. 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 defined) 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 Financine Arraneements. 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 minimum 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 1915 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 1915 Act shall apply. It is the intention of the Board of Supervisors to create a special reserve fund for the bonds under Part 16 of the 1915 Act. Pursuant to Section 8769 of the 1915 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 sole discretion, so advancing funds. The bonds proposed to be issued in this Resolufion 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 any 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 detemunes 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 Utilitv or Mutual Water Company. The Board of Supervisors hereby declares its intention to enter into one or _2- 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 Hearine. The Boazd of Supervisors hereby orders that a public hearing be held before the Boazd of Supervisors on May 25, 2010, at 9:30 a.m., 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 terminate at 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 County 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 Pro¢zam 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 Program (the "Program Administrator"). Section 10. Report. The Board of Supervisors directs the Program Administrator to prepare and file with the Boazd 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 aze 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 the voluntary contractual assessment azea. 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: -3- (1) Identification of types of Irnprovements that maybe 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. (4) A method for setting requests from property owners for financing through voluntary contractual assessments in priority order in the event that requests appeaz 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 properly 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 anyportion 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 will be charged to the County for incorporating the proposed voluntary contractual assessments into the assessments of the general taxes of the County on real property, and a plan for financing the payment of those fees. Section 11. Notice to Water, Electric and Natural Gas Providers. The Board of Supervisors hereby ratifies the written 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 a lien against the lots and pazcels of land on which they are made, until they are paid. Unless otherwise directed by the Boazd 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 aze 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 Boazd 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 California Environmental Quality Act Guidelines and Class S of the -4- County's Environmental Document Reporting Procedures and Guidelines, Appendix G. In addition, the Board of Supervisors finds that there are no cumulative impacts, unusual circumstances, or other limiting factors that would make the exemption inapplicable based on the prajeot 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 Earth in Sectian 7 above. Sectian I5. Other Acts. The Chief Executive Officer, the Treasurer and Tax Collector, [he Program Administrator, the Director of Puhlic Works and their designees are hereby authaiizcd and directed, jointly and severally, to do any and air acts and things and deliver any and a1I 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 previously taken by suc12 officers are hereby ratified and confirmed. Section Ib. Effective Date. This Resolution shall be effective upon its adoption by the Board of Supervisors. 4h The foregoing Resolution of Intention was an the day of (1~ , 2010, adopted by the Beard of Supervisors of the County of Los Angeles and ex-offrcio the governing body of all other special assessment and taxing districts, agencies and authorities for which said Board so acts APPROVED AS TO FORM: AiVDREA SHERIDAN ORDLN County Counsel 4' Behnaz Tashakorian Deputy County Counsel SACHI A. HAMAI Executive Oft7eer of the Board of Supervisors of the Co By -S- NOTICE OF PUBLIC HEARING COUNTY OF LOS ANGELES PROPOSED RENEWABLE ENERGY AND ENERGY AND WATER EFFICIENCY CONTRACTUAL ASSESSMENT PROGRAM WITHIN THE TERRTTORY 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 Ball 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") within the territory of the County, subject to a related city's approval of participation in the Proposed Contractual Assessment Program, where applicable, and to allow interested persons to comment upon, object to, or present evidence with regazd to or inquire about the proposed program or any of its particulazs. On April 6, 2010, the County adopted a resolution 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 improvements that are permanently fixed to residential, commercial, industrial or other 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 pazcel. 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 regazd 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 for the Contractual Assessment Program, all as set forth in the Report. A copyof the Report will be on file in the Board Executive Office at Kenneth Hahn Hall of Administration, S00 West Temple Street, Room 383, Los Angeles, Califorua 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 Clerk of the Boazd of Supervisors of the County of Los Angeles Deputy 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 & Highways 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 aze 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 be 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 providers. For additional information, please contact the County Office of Sustainability of the Internal Services Department at 877-270-7781. Dated as of March 26, 2010 COUNTY OF LOS ANGELES, CALIFORNIA Reference Resolution No. 10509 (CCS),.