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),.