City Council
MEETING DATE: 1/12/2015
TITLE:
Title
Establishing the California HERO Program in Cathedral City
End
FROM:
Pat Milos, Community Development Director
RECOMMENDATION:
Recommendation
Staff recommends that the City Council receive a report, discuss and provide direction to staff.
Body
BACKGROUND:
In April 2013, the Coachella Valley Association of Governments (CVAG) Executive Committee directed staff to initiate a Regional Property Assessed Clean Energy (PACE) program for member agencies. At the time the decision to offer a PACE program was made, the Executive Committee directed staff to explore the option of encouraging competition by offering PACE programs provided by both Ygrene Energy Fund and the HERO program. The CVAG Executive Committee established criteria for any PACE program, including that CVAG have its own stand-alone HERO program and that the CVAG Executive Committee would have the lead in making changes to the program. At the time, representatives of the California HERO program indicated they could not meet the requirements set forth by the Executive Committee. CVAG worked with Ygrene Energy Fund to launch the Clean Energy CV Upgrade program in December 2013 offering residential and commercial property owners financing for energy efficiency, renewable energy, and water conservation upgrades.
Recently, several CVAG member agencies joined the California HERO program. CVAG staff was approached by representatives of Renovate America who indicated a willingness to meet the conditions laid out by the CVAG Executive Committee in 2013. CVAG has worked with Renovate America and the Western Riverside Council of Governments (WRCOG) on an agreement that, in CVAG staff's opinion, substantially meets the conditions described by the Executive Committee to provide the HERO program to CVAG member agencies, with CVAG as the responsible agency for program oversight and direction. At their December 1, 2014 meeting, the CVAG Executive Committee approved an agreement between CVAG, Renovate America and the Western Riverside Council of Governments to provide for a HERO program for residential property owners in the Coachella and Palo Verde Valleys
DISCUSSION:
The California HERO Program is being offered to allow property owners in participating cities and counties to finance renewable energy, energy and water efficiency improvements, and electric vehicle charging infrastructure on their property. If a property owner chooses to participate, the installed improvements will be financed by the issuance of bonds by a joint powers authority, the Western Riverside Council of Governments. The bonds are secured by a voluntary contractual assessment levied on such owner's property, with no recourse to the local government or other participating jurisdictions. Participation in the program is 100% voluntary. Property owners who wish to participate in the program agree to repay the amount borrowed through the voluntary contractual assessment collected together with their property taxes.
FISCAL IMPACT:
No negative fiscal impact to the City's general fund will be incurred by consenting to the inclusion of properties within the City limits in the California HERO Program. All California HERO Program administrative costs are covered through an initial administrative fee included in the property owner's voluntary contractual assessment and an annual administrative fee which is also collected on the property owner's tax bill.
ATTACHMENTS:
1. A Sample Resolution of the City Council of Cathedral City, CA Consenting to the inclusion of properties within the City's jurisdiction in the California HERO Program.