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2008/12/09 City Council Resolution 2008-192RESOLUTION NO. 2008-192 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK STATE OF CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY'S INCORPORATED AREA IN THE COUNTY OF SONOMA'S CONTRACTUAL ASSESSMENT PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENCY IMPROVEMENTS WHEREAS, the City of Rohnert Park 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 of Part 3 of Division 7 of the California Streets and Highways Code (the "Act "), the Legislature has authorized cities and counties to assist property owners in financing the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently fixed to their property (the "Improvements ") through a contractual assessment program; and WHEREAS, installation of such Improvements by property owners in the County of Sonoma (the "County ") would promote the purposes cited above and assist the towns and cities of Sonoma County, including Rohnert Park in meeting its goal established by Resolution No. 2007 -164 adopted by this Council on September 25, 2007, of reducing its greenhouse gas emissions by 20% by 2010; and WHEREAS, the City of Rohnert Park wishes to provide innovative solutions to its residents to achieve energy efficiency and independence, and in doing so cooperate with the County in order to efficiently and economically assist all County property owners in financing such Improvements; and WHEREAS, the Board of Supervisors of the County (the "Board of Supervisors ") has authority to establish a contractual assessment program ( "the Program ") as permitted by the Act, to assist property owners in financing the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently affixed to real property; and WHEREAS, the County is conducting an analysis to determine the feasibility of the Program, and to develop parameters for implementation and administration of the Program; and WHEREAS, the City of Rohnert. Park wishes to participate with the County in the Program, if the County adopts a County -wide assessment program, under terms and conditions agreed to by the City of Rohnert Park and County; and WHEREAS, state law permits the County to offer participation in the Program to property owners in incorporated areas within the County so long as the governing body of such incorporated area approves the proposed Resolution of Intention to establish the Program, consents to the inclusion in the Program of properties in the incorporated area 10000 -0241 \ 1093 83 Ov4. doe within the County and consents to the Improvements to be done within such incorporated area and the assumption of jurisdiction thereover by the County for the purposes aforesaid; and WHEREAS, this Council has reviewed the County's proposed Resolution of Intention to establish the Program entitled "Resolution of the Board of Supervisors Declaring its Intention to Finance Distributed Generation Renewable Energy Sources and Energy Efficiency Improvements Through the Use of Contractual Assessments" ( "the County Resolution ") attached hereto as Exhibit A; NOW, THEREFORE, BE IT RESOLVED THAT: 1. This Council finds and declares that property in the City of Rohnert Park's incorporated area will be benefited by the Improvements proposed in the County Resolution. 2. This Council hereby supports the County's ongoing feasibility analysis and development of an AB 811 contractual assessment program. 3. Before the Program is extended into City's incorporated area, City and County shall reach an agreement addressing administrative issues such as program administration, financing, approved technologies, and any conditions City /Town wishes to impose on participating properties in its jurisdiction. 4. This Council hereby approves the proposed County Resolution, substantially in the form attached hereto as Exhibit A. 5. This Council hereby finds and determines that in the event it is necessary for the Board of Supervisors to make minor, nonsubstantive changes to the County Resolution, such minor, nonsubstantive changes do not require the approval of this Council. 6. This Council consents to inclusion in the Program of all of the properties in the incorporated area within the City of Rohnert Park and to the Improvements proposed in the County Resolution within the City of Rohnert Park's limits, upon the request and agreement of the property owner, in compliance with applicable laws, rules and regulations; and to the assumption of jurisdiction thereover by the County for the purposes aforesaid. 7. The consent of this Council constitutes assent to the assumption of jurisdiction by the County for all purposes of the Program and authorizes the County, 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 such contractual assessments. 10000- 0241 \1093830v4.doc 8. Staff is authorized and directed to coordinate with County staff to facilitate operation of the Program, and report back periodically to this Council on the success of the Program. 9. The Clerk is directed to send a certified copy of this resolution to the Clerk of the Board of Supervisors. DULY AND REGULARLY ADOPTED by the City Council of .the City of Rohnert Park this 9t' day of December, 2008. CITY OF ROHNERT PARK Mayor ATTEST: BELFORTE: AYE CALLINAN: AYE MACKENZIE: ABSENT STAFFORD: ABSENT BREEZE: AYE AYES: (3) NOES- (0) ABSENT: (2) ABSTAIN: (0) 10000-024 1 \1 093 830v4.doc DRAFT Resolution No. County Administration Bldg. Santa Rosa, CA Date: RESOLUTION OF THE BOARD OF SUPERVISORS OF COUNTY OF SONOMA DECLARING ITS INTENTON TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENCY IMPROVEMENTS THROUGH THE USE OF CONTRACTUAL ASSESSMENTS PURSUANT TO CHAPTER 29 OF PART 3 OF DIVISION 7 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND SETTING A PUBLIC HEARING THEREON WHEREAS, pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (the "Act "), the Board of Supervisors proposes to establish a contractual assessment program to assist property owners with the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently fixed to their property ( "Program "); and WHEREAS, in the opinion of this Board, property in the incorporated areas within the County would be benefitted by including such properties in the Program, subject to the approval /consent of the governing body of any incorporated town or city; and WHEREAS, County is willing to extend the program into incorporated areas provided that the governing body of any such area and County reach agreement on administrative issues such as program administration, financing, approved technologies, and any conditions on operation of the Program requested by City, prior to the Program being offered in such jurisdiction; NOW, THEREFORE, BE IT RESOLVED that the Board of Supervisors of the County of Sonoma takes the following actions: Section 1. The Board of Supervisors .hereby finds and declares all of the following: A. All of the above recitals are true and correct. B. Energy conservation efforts, including the promotion of energy efficiency improvements to residential, commercial, industrial, or other real property, are necessary to address the issue of global climate change. C. Energy efficiency improvements include improvements that promote water efficiency. The California Energy Commission prepared a staff report in November 2005 regarding California's water - energy relationship. The report states: "As California continues to struggle with its many critical energy supply and infrastructure challenges, the state must identify and address the points of highest stress. At the top of this list is California's water - energy relationship; water- related energy use consumes 19 percent of the state's electricity, 30 percent of its natural gas, and 88 billion. gallons of diesel fuel every year — and EXHIBIT A DRAFT this demand is growing.. [A] major portion of the solution is closer coordination between the water and energy sectors.... The state can meet energy and demand reduction goals ... by simply recognizing the value of the energy saved for each unit of water saved." The direct relationship between water use and energy use means that improvements to residential, commercial, industrial, or other real property which promote water efficiency result in energy efficiency. D. The upfront cost of making residential, commercial, industrial, or other real property more energy efficient prevents many property owners from making those improvements. To make those improvements more affordable and to promote the installation of those improvements, the Legislature has authorized an alternative procedure pursuant to the Act for authorizing assessments to finance the cost of energy efficiency improvements. E. A public purpose will be served by a contractual assessment program whereby the Board of Supervisors is authorized to finance the installation of distributed generation renewable energy sources and energy efficiency improvements that are permanently fixed to residential commercial, industrial, or other real property. F. Property located in incorporated areas within the County will benefit from inclusion in the program; and, subject to the approval /consent of the governing body of any incorporated town or city, including such property in the Program will serve the public purpose of promoting conservation efforts and addressing the issue of global climate change. Section 2. The Board of Supervisors hereby determines that it would be convenient, advantageous and in the public interest to designate the entire County, unincorporated and incorporated as an area within which authorized County officials and property owners may enter into contractual assessments pursuant to the Act to finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to real property. Section 3. The Board of Supervisors hereby declares that the proposed distributed generation renewable energy sources and energy efficiency improvements are of such a character that they directly and peculiarly affect property in both the unincorporated and incorporated areas within the County and that the purposes sought to be accomplished by such improvements can best be accomplished by a single, comprehensive program. Therefore, the County proposes to make contractual assessment financing available to the owners of property in the County, unincorporated and incorporated, to finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to real property. The County will do so via a phased approach to allow for the thoughtful development of the best management and administration structure to support this effort. .Section 4. The County Administrator (the "Authorized Officer"), or designee, shall prepare or direct the preparation of, as part of the report required in Section 8 of this Resolution, and update, as the Authorized Officer deems necessary, a list of the distributed generation renewable energy sources or energy efficiency improvements that may be financed through. the County's contractual assessment financing program. The types of distributed generation renewable energy sources or energy efficiency improvements eligible for financing through contractual assessments may include; but are not limited to: high efficiency air conditioning and ventilation systems, high performance windows, high efficiency.and tankless water heating equipment, photovoltaic and thermal solar energy systems, cool roof systems, geothermal 2 DRAFT exchange heat pumps, zoning control and energy management control systems, high efficiency irrigation pumps and controls, natural gas fuel cells, wind and geothermal energy systems, and wall, ceiling and roof insulation upgrades. Section 5. The area within which contractual assessments may be entered into pursuant'to the Act is all land within the defined boundaries of the County. Section 6. No contractual assessment will be levied on a parcel .situated within an incorporated area and no contractual assessment agreement will be entered into with the owner(s) of any such parcel unless and until (1) the legislative body of the respective town or city has, prior to the adoption of this resolution of intention, adopted a resolution consenting to inclusion of parcels within the town or city in the contractual assessment program and authorizing the County to levy assessments, to impose the contractual assessment liens and to finance the eligible improvement on such parcels; and (2) the legislative body of such city or town has entered into an agreement with the County addressing issues such as program administration, financing, approved technologies, and any conditions the city or town wishes to impose on participating properties in its jurisdiction. Section 7. The proposed arrangements for financing the contractual assessment financing program are briefly described as follows: The County may issue bonds, notes, receive lines of credit, and enter into other financing instruments or relationships pursuant to the Act, the principal and interest of which would be repaid by contractual assessments. Alternatively or in the interim, the County, may advance its own funds to finance work, or enter into agreements with other public entities, including but not limited to the towns and cities within the County and the Sonoma County Water Agency, to advance their funds to the County to finance work. Such advances shall be repaid through contractual assessments and the County may sell bonds or other forms of indebtedness to reimburse such advances. The proposed financing arrangements may include the lease- purchase of public facilities pursuant to a lease or other contractual arrangement with a public financing authority or non profit entity or other financing elements as may be determined necessary or useful to the financing of the contractual assessment program. In the event improvement bonds will be issued pursuant to Streets and Highways Code Section 5898.28 to represent assessments, all of the following will apply to the extent not in conflict with the Act: (a) Provision is hereby made for the issuance of improvement bonds, in one or more series; (b) Notice is hereby given that serial bonds or term bonds or both to represent unpaid assessments, and to bear interest at the rate of not to exceed 12 percent per year, or such other amount authorized by law, payable semiannually, shall be issued hereunder in one or more series in the manner provided by the Division 10 (to the extent not in conflict with the Act), 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. (c) The County hereby determines and declares that the County may obligate itself to advance available funds from the County treasury to cure any deficiency which may occur in the bond redemption fund. 1 1 1L_i� (d) The County hereby determines that the principal amount of bonds maturing or becoming subject to mandatory prior redemption each year shall be other than an amount equal to an even annual proportion of the aggregate principal amount of the bonds, and the.amount of principal maturing or becoming subject to mandatory prior redemption in each year plus the amount of interest payable in that year shall be an aggregate amount that is substantially equal each year, except for the moneys falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. (e) With respect to the procedures for collection of assessments and the advance retirement of bonds, the County proposes to proceed under the provisions of Part 11.1 of Division 10 (commencing with Section 8760 of the Streets and Highways Code). Section 8. The Board of Supervisors hereby directs the Authorized Officer to prepare, or direct the preparation of, and file with the Board of Supervisors a report pursuant to Section 5898.22 of the California Streets and Highways Code at or before the time of the public hearing described in Section 8 hereof (the "Report "). The Report shall contain all of the following: (a) A map showing the boundaries of the territory within which contractual assessments are proposed to be offered. (b) A draft contract specifying the terms and conditions that would be agreed to by a property owner within the contractual assessment area and the County. (c) A statement of County policies concerning contractual assessments including all of the following: Identification of types of facilities, distributed generation renewable energy sources, or energy efficiency improvements that may be financed through the use of contractual assessments; (ii) Identification of a County official authorized to enter into contractual assessments on behalf of the County, (iii) A maximum aggregate dollar amount of contractual assessments; and (iv) A method for setting requests from property owners for financing through contractual assessments in priority order in the event that requests appear likely to exceed the authorization amount. (v) Parameters for extending the Program into incorporated areas. 4 ' • (d) A plan for raising a capital amount required to pay for work performed pursuant to 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 Streets and Highways Code Section 5898.28. The plan shall include a statement of or method for determining the interest rate and time period during which contracting property 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 any portion of the costs incidental to financing, administration, and collection of the contractual assessment program among the consenting property owners and the County. Section 9. The Board of Supervisors hereby calls a public hearing to be held on 2008 or as soon thereafter as feasible, in the Board of Supervisors Chambers, 575 Administration Drive, Santa Rosa, California, on the proposed Report and the contractual assessment financing program. At the public hearing all interested persons may appear and hear and be heard and object to or inquire about the proposed contractual assessment financing program or any of its particulars. Section 10. The Clerk of the Board is hereby directed to provide notice of the public hearing by publishing this Resolution once a week for two weeks, pursuant to Section 6066 of the. California Government Code, in the Press Democrat and the first publication shall not occur later than 20 days before the date of such hearing. Section 11. The assessments. levied pursuant to the Act, and the interest and any penalties thereon, shall constitute a lien against the lots and parcels of land on which they are made, until they are paid. The assessments shall be collected in the same manner and at the same time as the general taxes of the County on real property are payable and shall be subject to the same penalties, remedies and lien priorities in the event of delinquency and default. As a cumulative remedy, if any assessment or installment thereof, or of any interest thereon, together with any penalties, costs, fees and other accrued charges are not paid when due, the Board of Supervisors may order that the same be collected by an action brought in superior court to foreclose the lien thereof as provided in Division 10 of the California Streets and Highways Code. Section 12. The Board of Supervisors hereby directs the Authorized Officer to enter into consultations with the County's Auditor - Controller's office in order to reach agreement on what additional fees, if any, will be charged for incorporating the proposed contractual assessments on the tax roll. SUPERVISORS: BROWN Ayes Noes Clerk of the Board SMITH REILLY KELLEY KERNS Absent Abstain SO ORDERED. TOLLING AGREEMENT BETWEEN THE COUNTY OF SONOMA AND THE CITY OF ROHNERT PARK This Tolling Agreement ( "Agreement ") is entered into between the County of Sonoma ( "County ") and the City of Rohnert Park ( "City "), each individually referred to herein as "Parry" and collectively as "Parties." RECITALS, A. State law provides a methodology to recover a portion of the cost of property tax administration from local jurisdictions that receive property tax revenue. B. The Parties have a disagreement regarding the interpretation of various code sections, including without limitation Revenue and Taxation Code sections 95.3, 97.75 and related law, which concern the amount of property tax administration fees ("PTA-F") that the County charges the City ( "Dispute "). C. The central issue in the Dispute is a question of law. This issue is likely to be decided through (1) a judicial interpretation of existing statutes and guidelines; (2) clarifying legislation; or (3) reliance on statewide guidelines. D. It is in the best interests of the Parties to avoid, if possible, the expenditure of time and resources litigating any claims, causes of action, and defenses that relate to the Dispute. E. The sole purpose of this Agreement is to allow the Parties additional time to evaluate the law as it develops on this statewide issue. F. The Parties intend to toll any and all applicable statutes of limitation relating to any and all claims, suits, causes of action, and defenses that could, as of the date of this Agreement, be timely filed or exerted against the other Party, its officers or agents, regarding the application of charges, collection, allocation, and/or distribution of revenue from charges imposed as PTAF. Further, the. Parties intend to preserve and toll the right to file any claim, suit, cause of action, or defense that accrues before this Agreement is terminated. Accordingly, in consideration of the mutual understandings and promises set forth in.this Agreement, the Parties agree as follows: #83523 - 1 - EXHIBIT A AGREEMENT 1. The Parties agree that the period of time for commencing any claims, suits, causes of action, and defenses that could, as of the date of this Agreement, be timely filed or exerted against the other Party, its officers or agents, regarding the application of charges, collection, allocation, and/or distribution of revenue from charges imposed as PTAF that would be timely on the date this Agreement is executed, and any future claims, suits, causes of action, and defenses that accrue to such Party before this Agreement is terminated, is tolled from the effective date of this Agreement, until the earlier of the following: (i) The expiration of sixty (60) days from the date one Party delivers to the other Party via hand delivery, United States mail, or facsimile transmission, notice that the terminating party desires to terminate this Agreement; (ii) (a) The expiration of ninety (90) days from the date that a California Court of Appeal renders a published decision in a case involving the issue of one or more California counties' calculation of PTAF as such fees relate to one or more California cities, pursuant to relevant sections of the Revenue and Taxation Code and related law, (b) 90 days from the date the California Supreme Court renders a decision to deny review of or to depublish the case, or (c) 90 days after the decision of the California Supreme Court on the merits of the Dispute becomes final as to that Court; (iii) The expiration of ninety (90) days from the date the Dispute is resolved by a legislative enactment, or administrative action, such as implementation of a revision of statewide guidelines governing the calculation of PTAF. 2. This Agreement does not constitute an admission by either Party of liability, or an admission that any cause of action exists in favor of either Party for any claim referred to in this Agreement. 3. This Agreement does not constitute an admission or acknowledgment by either Party that the other Party either has or does not have existing statute of limitations defenses as of the date this Agreement is executed. 4. Each Parry agrees not to file any action against the other Party relating to the alleged claims or causes of action described in this Agreement, unless the Agreement has been terminated as set forth in Section 1 of this Agreement. 5. Either Party may terminate.this Agreement by giving written notice to the other Party, in the manner described in Sections 1(i) and 6 of this #83523 - 2 - Agreement, of its intent to terminate. Termination of this Agreement shall be effective upon notice being served in accordance with this Agreement. However, the provisions of subsections (ii) and (iii) of Section 1 of this Agreement shall survive any such termination, it being the intent of the Parties that the procedures described in subsections (ii) and (iii) are material terms of this Agreement,' and the Parties would not have entered into this Agreement without assurance that such terms were. intended to survive the expiration or termination of this Agreement. 6. Unless otherwise requested in writing by a Party, all notices, demands, requests, consents or other communications which may be or are required to be given by either Party to the other shall be in writing and shall be deemed effective upon service. Notices shall be deemed to have been properly given when served on the Party to whom the same is to be given by hand delivery, by facsimile, or by deposit in the United States Mail addressed to the Party as follows: COUNTY: Marcia Chadbourne, Risk Manager County of Sonoma 575 Administration Drive, Room 116C Santa Rosa, CA 95403 AND Rodney A. Dole, ACTTC County of Sonoma 585 Fiscal Drive, Room 100F Santa Rosa, CA 95403 CITY: Daniel Schwarz Interim City Manager 130 Avram Avenue Rohnert Park, California 94928 Michelle Marchetta Kenyon City Attorney 1.3.0 Avram Avenue Rohnert Park, California 94928 7. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 8. This instrument contains the entire Agreement, for.purposes of addressing the statute of limitations only, between the Parties, and no statement, #83523 - 3 - promise, or inducement made by either Party or agents of the Parties that is not contained in this written contract shall be valid or binding; and this contract may not be enlarged, modified, or altered except in writing signed by the Parties. 9. Each of the individuals executing this Agreement on behalf of the undersigned Parties represents and warrants that he or she has the right, power and authority to bind the Party on whose behalf he or she purports to sign. 10. This Agreement may be executed in counterparts or by facsimile. Dated: CITY Dated: /:1 -9 9ZS1IV /11WA.YIfGl 03 RI�, Dated: Dated: By: Its: COUNTY OF SONOMA By: Its: City Attorney Deputy County Counsel Counsel for County #83523 - 4