HomeMy WebLinkAbout2013/08/06 Item 11TY COUNCIL
STATEMENT
~~ CITY OF
CHULA VISTA
816/13, Item
ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) ACCEPTING THE PROGRESS REPORT
ON CLIMATE ACTION PLAN IMPLEMEI~~TATION AND (2)
APPROVING A NO-COST CONTRACT ~6%ITH YGRENE
ENERGY FUND TO DESIGN Ai\iD ADVIII~TISTER A LOCAL
PROPERTY ASSESSED CLEAN ENERGY (PACE)
PROGRAM
SUBDIITTED B1': DIRECTOR OF PUBLIC WORKS ~~1~"
ADMINISTRATIVE RVICES MANAGER ;Q~
REVIE~i~D Bl': CITY MAC\tAGE
ASSISTANT CITY 4AI~?AGEI
4/STHS VOTE: VES ~ NO
SU1114AR1'
Chula Vista has been implementing a variety of programs and policies outlined in its
Climate Action Plan to address the local threat of climate change. These efforts offer
numerous community co-benefits such as utility savings; better air quality; reduced traffic
coneestion; local economic development, and improved quality of life. To date, the
majority of climate action measures have been able to-be successfulh~ implemented ~~th
only nvo (out of ~7) components remaining "on-hold'' due to funding shortages. To
further facilitate implementation of the Climate Action Plan, staff is proposing to enter
into a no-cost contract with Ygrene Energy Fund to develop a Chula Vista-specific
Propert}~ Assessed Clean Energy (PACE) program. These programs have proven to be
effective in facilitating building retrofits; stimulating the local economy. and lowering
greenhouse gas emissions in other communities.
E\1'IRON~~\TAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance
with the California Environmental Quality Act (CEQA) and has determined that the
activity qualifies for a Class 8 categorical exemption pursuant to Section 1 X308 [Actions
by Regulatory Agencies for Protection of the Environment] of the State CEQA
Guidelines. Thus; no further environmental review is necessary.
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8/6/13, Item ~i
Page 2 of 4
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
At their May 13`h meeting, the Resource Conservation Commission unanimously
recommended that the Cit}~ Council accept the Climate Action Plan progress report. The
Resource Conservation Commission has also been updated on the City's efforts to
develop a Chula Vista-specific PACE program and will be heavily invoh~ed in
stakeholder outreach efforts as the program is developed and launched.
DISCUSSION
For over a decade, Chula Vista has been anationally-recognized leader in implementing a
Climate Action Plan to address the threat of climate change to the local community. The
recently-revised Climate Action Plan includes 7 climate "mitigation" measures, which are
designed to reduce greenhouse gas emissions, and 11 climate "adaptation" measures,
which are designed to reduce Chula Vista's vulnerability to expected local climate change
impacts. In addition to addressing climate change concerns, these climate action measures
offer numerous community co-benefits such as utility savings, better air quality, reduced
traffic congestion, local economic development, and improved quality of life.
The attached Climate Action Plan report outlines the implementation progress for the
current 18 climate-related actions and their 57 associated components. Overall; 63% of
components have been successfully completed and/or are being implemented on an
ongoing basis; while another 33% aze still being actively pursued. Only two components
are on-hold due to funding shortages - the H Street Corridor Study (Mitigation Measure
#6) and OVRP Habitat Restoration Plan Update (Adaptation Strategy #9). This represents
a decrease in on-hold items since the last progress report. In addition, all 18 climate-
related actions and their 57 associated components will be reevaluated through a new
Climate Change Working Group process in 2014.
To further facilitate implementation of energy and water-related Climate Action Plan
components (Mitigation Measures #2, 3, ~, & 7 and Adaptation Strategies #4 & 11), the
City released a Request for Proposals (RFP) in February 2013 for a Chula Vista-specific
"Property Assessed Clean Energy'' (PACE) program. PACE programs allow property-
owners to voluntarily finance energy and water-saving improvements through a tax
assessment on their property and the resulting utility savings are used to help offset the
new assessments. Only property-owners choosing to participate in the program have
assessments imposed on their property and the assessmeut obligation generally transfers
with the property upon sale, because the new owner continues to benefit from the
efficiency improvements. PACE programs were authorized under California Assembly
Bill 811 (Contractual Assessments: Energy Efficiency Improvements), Assembly Bill
474 (Contractual Assessments: Water Efficiency Improvements), and Senate Bill 555
(Local Govemment: Community Facilities Districts).
11-2
8/6/13, Item //
Page 3 of 4
In California. there aze residential PACE programs actively operating in Sonoma Counn~;
westem Riverside County; City of Palm Desert, and City of Sacramento. PACE
programs for commercial buildines aze available in San Francisco; Los Angeles County,
Sonoma Counrv; western Riverside County, Placer County, and statev,Rde through the
California State~~ride Communities Development Authority (Chula Vista is a member).
In most cases; PACE programs have successfully facilitated building energy and water
upgrades in the communities and created local economic development benefits.
T}~pically; third-party administrators; on behalf of the host jurisdictions, manage the
creation of the assessment district and day-to-day operations including contractor
outreach, property-o~~mer enrollment, and private financing coordination.
The Cirv of Chula Vista received tvo formal responses to its RFP for a full service; turn-
key PACE program. The two candidates were subsequently interviewed and assessed on
a variety of factors such as their ability to stimulate retrofits, protect local consumers;
offer competitive financing rates; and contribute to the local economy. The interview
panel consisted of City staff from the Public \Vorks (Conservation Section) and Finance
Departments as well as technical experts from the California Center for Sustainable
Energy and the University of San Diego s Energy Policy Initiatives Center. As a result,
staff is recommending that City Council approve a no-cost contract with Ygrene Energy
Fund to administer a Chula Vista-specific PACE program for both residential and
commercial property-owners. Ygrene was selected based on its beneficial use of the
Mello-Roos Act (as amended under SB»>) as the PACE enabling legislation; its
leveraeine of Chula Vista community partnerships (including creating a local "Energy
Center' storefront), and its quality controls on contractor performance and project energy
savings. If approved by City Council, Cih~ staff will work with Ygrene to solicit
additional input from community members about program design and implementation
through a Resource Conservation Commission-sponsored workshop in late summer.
With this public feedback, a formal program plan will be-drafted and presented to City
Council for review and consideration.
DECISION 14AKER CONFLICT
Staff has determined that the recommendations requiring Council action aze not site
specific and consequently the X00 foot rule found in California Code of Regulations
section 18704.2(a)(1) is not applicable to this decision. Staff is not independently awaze,
nor has staff been informed by any City Councilmember, of any other fact that may
constitute a basis for a decision maker conflict of interest in this matter.
CtiRRENT YEAR FISCAL. IA4PACT
There would be no impact to the City's General Fund caused by the contract with Ygrene
Energy Fund to establish and operate a Chula Vista-specific PACE program. Ygrene
covers all costs associated with designing and administering the program including
district formation; mazketing; and project financing. In addition. the City is able to
recover any costs associated ~~~ith staff time related to the program.
11-3
8/6/13, Item ~~
Page 4 of 4
ONGOING FISCAL IA4PACT
There would be no ongoing impact to the City's General Fund caused by the contract
with Ygrene Energy Fund to establish and operate a Chula Vista-specific PACE program.
ATTACHMENTS
Attachment A -Climate Action Plan -May 2013 Progress Report
Attachment B -Third Party Administration Agreement with Ygrene Energy Fund
Prepared bic Brendan Reed, Em~ironmental Resource Manager, Public Works-Catuervatiwi
H: IPUBLIC WORKS- Eb'GUGEA'DAICAS2013108-06-13V2EPORT-PN'-CAP Report d PACE Contract_CAS_FINAL.doc
11-4
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CITY OF
CHULAVISTA
CLIMATE ACTION PLAN
Implementation Progress Report
May 2013
SU1~1A1ARY
Since 2000; Chula Vista has been implementing a "Climate Action Plan' to address the threat of
climate change to the local community. Over the past 3 yeazs, this orieinal plan has been revised
to incorporate new climate mitigation (2008) and adaptation (2011) measures to strengthen the
Cit}~'s climate action efforts and to facilitate the numerous communit<~ co-benefits such as utilih~
savings. better air quality; reduced traffic congestion, local economic development. and
improved qualit<~ of life. Based on available funding, staff has been implementing of the 18
climate-related actions and their ~7 associated components. To date; approximately 96% of the
components have been successfully completed; aze being implemented on an ongoing basis, or
aze being actively pursued. Since the last progress report. one component; which was previoush~
on-hold; has beeun to be implemented.
BACKGROUI~TD
Since the eazly 1990s; Chula Vista has been eneaged in multiple climate change forums
including the United Nations Framework Convention on Climate Change; the ICLEI Cities for
Climate Protection campaign, the California Climate Action Registry; and the U.S. Conference
of Mayors Climate Protection Agreement and has committed to reduce its greenhouse gas
(GHG) emissions 20% below 1990 levels. To accomplish this GHG reduction or climate
"mitigation" goal, the City adopted a Cazbon Dioxide (C02) Reduction Plan in 2000, which
outlined steps for Chula Vista to reduce energy and fuel use at municipal facilities and
throughout the communit<~. In 2008; seven new climate mitigation measures were adopted by
City Council to augment past efforts by improving energy and water efficiency; expanding
renewable energy systems; converting to more fuel efficient and alternative fuel vehicles; and
designing transit-friendly, walkable communities. To complement these climate mitigation
actions, City Council adopted eleven strategies in May 2011 to reduce Chula Vistas
vulnerabilit<~ to expected local climate change impacts (kno«n as climate "adaptation"). These
strategies addressed expected impacts such as hotter and drier weather; diminished imported
water supplies; more poor air quality heat wave days, more frequent wildfires; shifts in habitat
and species distribution; and increased rates of sea level rise. By minimizing the risks associated
with climate impacts now, future costs and public health concerns can be avoided and/or
minimized.
I?\IPLE?11ENTATION PROGRESS
The follo~tiing report outlines the implementation progress for the 7 climate mitigation measures
and the 11 climate adaptation strategies. In addition to background information and next steps;
staff has highlighted whether the implementation is:
Climate Action Plan Implementation 1 of 19
Progess Report (A1ay 2013)
11-5
Completed -All required implementation steps have been completed
Ongoi~ag -All required initial steps have been completed; but component is still
actively being implemented
In Progress -Implementation steps are still being developed and pursued based on the
original implementation plan
On-Hold -Implementation has not proceeded due to a programmatic barrier (such as
funding)
As directed by City Council, staff has been implementing the 18climate-related actions and their
57 associated components based on available funding. Out of the 27 mitigation-related
components, 75% and 22% have been successfully completed/ongoing or aze still being actively
pursued, respectively. Only the H Street Corridor Study (under Mitigation Measure #6) is
currently "On-Hold" due to the dissolution of the City s Redevelopment Agency. Out of the 30
adaptation-related components; 54% and 43% have been successfully completed/ongoing or aze
still being actively pursued; respectively. Only one component still remains "On-Hold"
(compared to two during the last progress report) under Adaptation Strategy #9.
Staff continues to proactively seek new partnerships and funding resources to support full
implementation. Since the last progress report, Chula Vista was awazded $3.1 million for its
Local Government Partnership (LGP) program with San Diego Gas & Electric (SDG&E) and the
California Public Utilities Commission. The new LGP funding will further help integrate energy
efficiency retrofits and policies into municipal operations and community services. The City
also was awarded a technical assistance grant through the US Environmental Protection
Agencys Smart Growth initiative. The federal assistance will allow the City and local builders
to better understand tools and concepts for more efficient, sustainable community development.
The City continues to work with regional partners on climate change issues through the new San
Diego Regional Climate Collaborative. In March, the Climate Collaborative sponsored a
workshop for municipal representatives, financial institutions, insurance companies, and business
leaders to discuss opportunities to increase the region's climate change readiness.
There are also a variety of new Climate Action Plan initiatives that will launch in the near term.
By the end of summer, City staff will be presenting a proposed Property-Assessed Clean
Energy (PACE) program for residential buildings to City Council for consideration. PACE
allows homeo~vers to easily finance energy and water improvements and repay the debt
service through their property tax payments. Staff is also working to expand car sharing
programs into the jurisdiction. Caz sharing helps to reduce vehicle miles traveled, while still
providing convenient access for residents and visitors to a caz for trips that can't be done by
walking, biking, or public transit. Finally; the City will be one of the first jurisdictions in the
nation to utilize a new greenhouse gas (GHG) accounting protocol to conduct its Calendar Year
2012 emissions inventory. The new protocol, which was developed by ICLEI and approved by
the State of California will allow the City to better quantify its emission sources and Neill
inform astakeholder-driven update to the Chula Vista Climate Action Plan in 2014.
Climate Action Plan Implementation 2 of 19
Prowess Report (May 20li)
~~-6
CLL>\ZATE MITIGATION >\1FASU~2ES
The following (7) measures aze designed to reduce greenhouse sas or "cazbon' emissions from
municipal operations and the broader Chula Vista community. The measures complement one
another as well as state and federal climate mitigation initiatives.
MITIGATION 112EASLIRE #1
CLEAN VEHICLE REPLACED4ENT POLICY FOR CITI' FLEET
Oven~iea~
Measure ~1 directs the Cit}~ to require that 100% of the replacement vehicles purchased for
the municipal fleet be high efficiency (hybrid) or alternative fuel vehicles (AFVs). However.
factors such as the appropriateness for the vehicle task, fueling infrastructure; petroleum
displacement, and the overall cost and environmental benefit must be considered prior to
purchasing each replacement vehicle.
Next Steps
City vehicles ~~ill be replaced ~~~th hybrids or AFVs on an ongoing basis, as appropriate
fundine becomes available. By the end of Fiscal Yeaz 2013, an additional fleet vehicle will
be replaced with either hybrid or altemative fuel technologies. Future alternative vehicle
efforts ~~211 also be informed by the recent Clean Transportation Energy Roadmap completed
by SANDAG and the California Center for Sustainable Enerm~ on behalf of the City of Chula
Vista:
Climate Action Plan Implementation 3 of 19
Progess Report (May 2013)
11-7
MITIGATION MEASURE #2
CLEAN VEHICLE REPLACEMENT FOR CITY-CONTRACTED FLEETS
Overview
Measure #2 directs staff to work with fleets under City authority to influence their expanded
use of alternative fuels and high efficiency/alternative fuel vehicles (AFV) including electric,
biodiesel, ethanol; hybrid, hydrogen, and compressed natural gas (CNG) based on
appropriateness for vehicle task; fueling infrastructure, petroleum displacement, overall cost,
and environmental benefit.
• -• -•
,_~",
4{- i,
~
1 Convert Chula Vsta Transit to alternative ~ ~~
~Cmpleted 100% of Chula Vista Transit fleet have
fuels and/or high efficiency vehicles
fl i been converted to AFV.
~
~
.
Convert Solid Waste Hauler to ~?~'
i~% ` ~
100% of Allied Waste fleet have been
2 altemative fuels and/or high effciency rCompleted
~~
converted to AFV.
vehicles
Staff is working v~ith the currently
3 Convert Street Sweeper to alternative In Progress contracted vendor to investigate more
- fuels and/or high efficiency vehicles affordable AFV technologies.
Anew RFP for Tow Truck service, which
Convert City-contracted Tow Trucks to includes hybrid/AFV requirements, has
4 alternative fuels and/or high efficiency In Progress been fnalized and is scheduled to be
vehicles released in the near future.
'' u~ti`'~
.- i~
""f ;
The new public CNG fuel station has
5 Open publicly-available CNG dispenser o
Completed;
dispensed over 66,600 gallons
at PWC s . ° (equivalent) since October 2011.
a^
:t,
Neat Steps
The City continues to work with contractors and comtnunity partners to promote local
alternative fuel use and infrastructure, which will be informed by the recent Clean
Transportation Energy Roadmap completed by SANDAG and the California Center for
Sustainable Energy. City staff is currently working with a private company to install 33
electric vehicle (EV) charging stations at municipal parking lots. The new EV chargers,
which are being operated at no-cost to the City, will create a 4-fold increase in publicly-
available altemative fuel infrastructure in Chula Vista.
Climate Action Plan Implementation 4 of ]9
Progress Report (May 2013)
~~_8
D9ITIGATION ?\4EASU~2E #3
BiJSLN~SS ENERGY EVALUATIONS
Oven-iew
The measure, as revised by City Council; states that businesses ~~th storefronu or offices
need to participate in a no-cost energy and water evaluation of their premises when a nee;~
business license is issued or once every 3-~ ~~eazs for a renewed business license. The
measure helps businesses identify efficiency oppomtnities at their facilities, access rebates
and financing for efficiency improvements, and lower their montlily utility costs. Businesses
aze not required to implement any of the identified energy or water efficiency opportunities
and aze not required to complete evaluations for facility areas beyond their operational control
(ea:. whole-building systems operated and maintained by a Property ManagerlLandlord).
Nett Steps
The City's ongoing CLEAN Business Program, which complements the FREBE program by
incentivizing and recognizing sustainability accomplishments; will be redesigned by June to
incorporate some of the "lessons leamed° from the successful Green Business Challenge
initiative. In addition; tazgeted outreach to commercial property-o~~ners about PACE
fmancing will be conducted over the next 12 months to leverage the new energy efficiency
funding tool.
Climate Action Plan Implementation ~ of 19
Progess Report (May 2013)
~~-9
MITIGATION MEASURE #4
GREEN BUILDING STANDARD
Overview
Measure #4 directed staff to adopt regulations mandating new and renovated residential and
non-residential projects to incorporate early the requirements of the Housing and Community
DevelopmenYS California Green Building Standards Code (CalGreen) and to be more energy
efficient than the 2008 Building Energy Efficiency Standards (Title 24) by a specific
percentage. In addition, the measure directed staff to imp]ement a green building awareness
program and update/establish design and regulatory provisions that incorporate sustainable
practices at acommunity-scale.
Next Steps
Chula Vista is partnering with other jurisdictions across Califomia on a grant proposal under
the Department of Energy's Rooftop Solaz Challenge II program. If awarded, the funding
would allow the City to expand implementation of permitting and financing "best practices''
for roofrop solaz photovoltaic systems in the community. City staff also plans to revise Chula
Vista's Enhanced Energy Efficiency standazd in 2014, as needed, when the new statewide
Title-24 code is revised.
Climate Action Plan Implementation 6 of 19
Prowess Report (May 20li)
~~-~~
MITIGATION MEASURE #5
SOLAR R E\~RGY EFFICIENCY CON~rERSION PROGRA~4
Oven-iew
The "Solaz & Energy Efficiency Conversion' program was recommended to help facilitate
energy efficiency and renewable energy retrofits in the communii`~ and at municipal facilities.
The communit•~ component; called the Home Upgrade, Carbon Downgrade program. is
intended to help the average resident and small business overcome common institutional
barriers, upfront capital costs, complicated application processes; and time constraints. The
program also strives to promote local job creation and economic development by linking
community participants with local contractors and vendors. Finally. Measure >j included the
implementation of a pre-v,'iring and pre-plumbing requirement for solaz photovoltaic (PV) and
solar hot water s}stems; respectively, in all new residential units.
•. --. -
a"=~~;. ~:t
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` Through a formal RFP process, City staff
~
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'' is selectin a com an to establish a
g p y
t Implement a Solar & Energy Efficiency
f
h
i % ~?
-~
-°"
~ `O~goi g_`. Property-Assessed Clean Energy
Conversion program
or t
e commun
ty rte,; ~~ financing district for Chula Vsta
j~;==`-~
- residents.
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The City has begun installing over 3,900
~ Upgrade municipal facilities with energy f~=',~~'-` ~ LED street lights along arterial roadways,
2
efficiency & solar energy technologies ' ~On9omg;-
-_='S-s-= -'
which will generate over 1.7 million kWh
'- ~'~""
~
'z
;
~?5 in annual ever savin s.
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~Y~ ~:~X:LIt~:
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Sm_y y_t- ~i a. Through the residential PACE RFP
Link conversion program to local '"~"=~~
~
' process, the City is seeking respondents
3 9 9=
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~~~
economic development ,
' ~.
: that include local hiring and purchasing in
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~ their program implementation plans.
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In 2009, the City adopted the "solar
Adopt pre-wirin and re- lumbin
g p p 9 '~ `-_~ ~` ready" ordinances. To date, over 1,500
4 standards for solar pv & solar hot water, :Completed-
-°-~` '~ new residential units have com lied with
p
respectivety ',_,~=rt~~, the new code.
Nest Steps
The City included additional funding for its Home Upgrade, Carbon Downgrade program in
its 20li-2014 SDG&E Local Government Partnership proposal. Program components
include streamlined permitting; workforce training; and home energy ratings in order to
further facilitate energy retrofits in the community'. Vt'ithin the next three months. Cin~ staff
~;°ill be presenting to City Council for review and consideration aresidential-focused Propem'
Assessed Clean Energy (PACE) program to help finance home retrofits.
Climate Action Plan Implementation 7 of 19
Prowess Report (Ma}' 20li)
~~-~~
MITIGATION MEASURE #6
SMART GROWTH AROUND TROLLEY STATIONS
Overview
Measure #6 is intended to accomplish the remaining planning groundwork necessary to
support realization of the "Smart Grov`th" development densities and intensities envisioned in
both the General Plan and the Urban Core Specific Plan (UCSP). Specifically, the measure's
four components aze focused on the azeas surrounding the E Street, H Street, and Palomar
Street trolley stations.
• ~. -.
Staff is continuing to work with property
Implementation of UCSP around E Street
I
P owners and other interested parties
ct o
ti
f
E St
t
d
t
~ Trolley Station rogress
n owar
s proje
p
ons
or
ree
parcels, and will apprise the City Council
when viable prospects are identified.
•
Initiate a H Street Corridor Study to Due to the dissolution of redevelopment
2
better define redevelopment
On-Hold agencies statewide, the H Street Corridor
opportunities around the Trolley Station Study is on-hold indefinitely until
alternative funding sources are identified.
Develop a specific plan for the Palomar The environmental documents for the
3 Gateway area, including the Palomar In Progress Palomar specific plan have been
Trolley Station released for public review and a public
hearing is scheduled for June 2013.
In coordination with SANDAG and
Pursue trolley grade separation along the CalTrans, a study has been completed
4 I-5 corridor In Progress evaluating various grade separation
options along all three Trolley Station
areas.
Next Steps
The City will continue to pursue "Smart Grov`>th" development surrounding Chula Vista's
three Trolley Stations. In the next few months, the City will work with the EPA's Smart
Grov<4h technical assistance group to hold community workshops in Chula Vista to identify
common barriers and opportunities for smart growth development. The workshop's results
will help inform a broader study; .being led by Chula Vista and the US Green Building
Council (San Diego Chapter), to create new tools for local developers to implement
sustainably designed and constructed projects.
Climate Action Plan Implementation S of 19
Progress Report (Mav 2013)
~~-12
17TTIGATION MEASURE #7
TURF LART' COI\~rERSION PROGRAM
Overview
Because water movement and treatment requires a lazee amount of energy (leading to GHG
emissions), Measure =7 helps residents and businesses replace turf lawrt azeas v~~th
"V.%aterSmart' landscaping. Specifically, the program's components include (1) continuation
and expansion of the \tatureScape program to promote ~~°ater conserving and nature-friendh'
landscaping, (2) coupling of residential and business turf lavti~n replacement v<ith the solar and
energy efficiency conversion program (A4easure ~~); (3) converting select municipal facilities
to low water use plantings and irrigation, and (4) updating various municipal landscape
regulations and guidelines to comply with new state requirements and further promote
outdoor water use efficiency.
• -. --•
~:~~_,"-~"` Through the program, over 260 residents
~~ _`~>
-r.--:'---~
have attended "NatureScape-In-A-Box"
1 Expand the NatureScape ouVeach •s~'~.-s.-°~=~
•.~Ongomg„
workshops contributing to the City's 472
program ~ -;~~ ~~-,;
= =:~'~-=ice.:
total certified "Backyard Wildlife
= ;.-~
='-^ .~~'~-~
i
;, ~
~
Habitats."
;
-
h :~ ~~-.v~t4.
Through a formal RFP process, City staff
is selecting a company to establish a
• Include turf lawn replacement in Home Property-Assessed Clean Energy
2 Upgrade, Carbon Downgrade program In Progress financing district for Chula Vsta residents
(Measure #6) that can be used to also support water
conservation efforts.
k"~_:gnts; The City is pursuing water-saving
3
Convert municipal facilities to low water ' ~" ~ :~:r•
~,
Ongoing~
^ irri ation u rades, such as rotatin
g pg g
"
"
use plantings 8 irrigation _
~_ ,~~: _,
~'
conVollers, at 42
nozzles and
smart
`~'°~~'
~~:~.~?; locations. '
'
`~
~`
'
=~ W
-
~
~
~ ater
In 2010, a revised Landscape
~~'~ Conservation Ordinance was approved
4 Update landscaping ordinances to ; ~~_=-r-:
=.Completed
by City Council that creates a water
emphasize water use efficiency ,
_~~r;
t, ~ bud et for new or renovated landsca es
9 P
Y
,~ and promotes water-efficient design.
t
~'---' ~
Next Steps
City staff continues to pursue funding sources to support turf conversions. For municipal
facilities; staff continues to develop a resource reinvestment fund; in which a portion of utilit}'
savings from energy and water retrofit projects can be reinvested in similaz projects. In the
community, aresidential-focused Property Assessed Clean Energy (PACE) program to help
fmance home water retrofits will be presented to Cit}' Council for consideration by August.
Climate Action Plan Implementation 9 of 19
Prowess Report (D1a}~ 20li)
11-13
CLIMATE ADAPTATION STRATEGIES
The following (11) strategies are designed to reduce Chula Vistas future risks and costs from
expected climate change impacts such as sea level rise, more frequent wildfires and extreme heat
days, and increased stress on energy and water supplies. The measures complement one another
as well as state and federal climate adaptation initiatives.
Over~~iew
To address climate change impacts related to the urban heat island effect (hotter ambient air
temperatures), Strategy #1 is intended to incorporate reflective (or "cool paving") into all
municipal projects (parking lots and streets) and new private parking lot projects over a
specific size. Cool pavements refer to a range of established and emerging paving materials,
which store less heat and have lower surface temperatures compared with conventional
products. Specifically; the strategys components include performing a comprehensive study
to evaluate and test multiple reflective pavement technologies and developing options (based
on the studys results) for incorporating cool pavement technologies into municipal standazds.
Next Steps
Chula Vista will continue to pursue possible funding sources for a cool paving demonstration
site. In addition, the City will be piloting some modifications to existing pavement treatments
to improve their "coolness' as recommended in the recently-completed Cool Pavement
Report. Staff plans to return to City Council in 2015 with a formal policy for consideration.
Climate Action Plan Implementation 10 of 19
Progress Report (May 2013)
11-14
Oven~iew
To address climate change impacts related to the urban heat island effect and energy demand,
Strategv'?2 is intended to incorporate shade trees into all municipal improvement projecu and
all private development pazkine lot projects. Shade trees contributing to a robust urban forest
act as a natural cooling mechanism for urban azeas. In addition. canopy-forming trees help
reduce storm water runoff provide habitat for wildlife, and increase propem~ values.
Specifically, the strategys componenu include (1) developine a shade tree policy for future
City Council consideration, (2) amending the Municipal Landscape Manual to be consistent
~~Zth the new policy, and (3) ensuring that the recently-updated Design Manual is consistent
with the new policy.
~ .~ ..,
~~'y _-1
'~§:r ~'<
Anew City Council policy promoting the
1 Develop a formal shade tree policy 'Compl'etetl use of shade trees along streets and
--- r=- , within municipal and private parkling lots
~="i'' ~''~'
`
. was a roved in Ma 2012.
PP Y
~ _
, ~
y;„,~ ,
:~ <.
.s~:as ~..~:ts
' Amend the Municipal Landscape Manual Based on the outcome of component #1,
2 to be consistent with the new shade tree In Progress the Municipal Landscape Manual will be
policy revised, as appropriate.
~;~G 3 = - As part of the new Council-approved
Ensure that the Design Manual is
~~'g,~ . ~;
Design Manual, new development
3 .Completed. projects must incorporate shade trees
consistent with the new shade tree policy :_~ _~„ • t:-.
;~
,x a
and provide at least 50 ~ shade
,,
~`~`',~~,
~-. coverage for paved areas.
.':i=.~'~:~F'z
Next Steps
Since a formal Shade Tree policy has now been adopted by City Council, staff expects to
complete complementan~ updates to the Municipal Landscape Manual by spring 2014, as part
of a more comprehensive revision process.
Climate Action Plan Implementation 11 of 19
Prowess Report (D1ay 2013)
11-15
Overview
Strategy #3 is intended to address climate change impacts related to the urban heat island
effect and energy demand by promoting "cool roofs." Cool roofs, which are made of highly
reflective and emissive material, can remain approximately 50 to 60°F cooler compared to
traditional materials, thus helping to lower ambient temperatures inside and outside of
buildings. This creates a more comfortable and healthy environment for building occupants
and reduces energy use for air-conditioning. To accomplish Strategy #3, City staff will
further evaluate cool roofing options and propose amendments to the municipal building
codes for City Council consideration.
Next Steps
The City will continue to implement its new cool roof requirements under the City's broader
green building standards. Local amendments to building codes expire when new California
building codes take effect. As such, staff will evaluate the 2013 California Green Building
Standards Code and propose local amendments for City Council consideration prior to the
new statewide standards beginning in January 1, 2014.
Climate Action Plan Implementation 12 of 19
Progess Report (May 2013)
~~-16
Oven~ieR~
Expected climate chance impacts could limit imported water availabilit}~, increase utility costs
for residents and businesses. and lead to hieher demand for local water sources. As such.
Strategy =.`4 is intended to educate the communing about the benefits and appropriate uses of
local water supplies and further integrate recycled water/onsite water reuse systems into new
development. Specifically, components include (1) evaluating municipal building code
options to incorporate single-source gra}u~ater "stub-outs` in new residential buildings and
indoor recycled water in nee;~ commercial buildings, (2) developing an educational guide
about proper gra}water use. (3) creating an incentive (using external funding sources) to
promote onsite water reuse, and (4) updating the City's water-related plans to reference and
promote recycled water and onsite water reuse systems.
. •. •-. -
i ~ a~ _~:
,
~:
.
;
7--:-' }~sn-'~
Develop standards for incorporating ;;~-~.~:~iro-~ New graywater codes were adopted by
1 graywater stub-outs (residential) and Completed; City Council at their May 7, 2013
indoor recycled water use (commercial) -r_ ,. _e ,r meeting.
~.,
_ ~_%'
..=,?,-5 ~r~~.
An educational guide is being created to
2 Develop a graywater educational guide to
In Progress promote the proper use of graywater and
help ensure proper use other onsite water reuse options (such as
rain harvesting).
The City is exploring opportunities to
3 Create an onsite water reuse incentive
In Progress leverage the proposed residential PACE
program financing program to support graywater
system installations.
Based on the outcome of component #1,
4 Update water-related municipal
In Progress municipal guidelines will be updated to
d
guidelines & plans to promote graywater be consistent with new graywater an
other water reuse policies.
Neat Steps
It is expected that a new Water Reuse Guide for homeo~~mers will be completed by August,
which will then be distributed by City staff and developers. Because indoor use of recycled
water is a more complex issue. a drafr standazd for commercial buildings will be pursued afrer
a stub-out standard is finalized.
Climate Ac[ion Plan Implementation 13 of 19
Progess Report (D4ay 2013)
~~-~~
Overview
Climate change will likely alter regional precipitation patterns, thus altering water runoff and
sediment movement flows through local watersheds. .Because of urbanization and its
associated activities; pollutants are dischazged with these flows into the City's storm drainage
systems, creeks; rivers, San Diego Bay, and the ocean and reduce the beneficial uses of these
water bodies for the Chula Vista community. Strategy #5 is intended to revise the City's
storm vt~ater regulations and applicable municipal codes to efficiently manage higher
concentrations of pollutants in urban runoff by minimizing water waste, using natural
landscapes to help drain or reuse runoff, and by ensuring that irrigations systems are properly
installed and maintained.
. -. ••. -
Develop revisions to the municipal code ~ ~h ~ ~~y Code revisions were adopted by City
1 to prohibit excessive landscape over ,Completed Council at their November 20, 2012
irrigation resulting in urban runoff ~ • , '
~:ik,~ meeting.
s
` ~~'
M
l"
~
~ ~
r
.
`
A brochure entitled "Guidelines for Water
• Encourage the beneficial reuse of pipe ~ ~ ~ Conservation on Construction Sites" has
2
flushing water at construction sites Completed;
~.
~' been developed and is being distributed
.z to developers and contractors working in
_; ~~
Chula Vista.
Non-monetary incentives to incorporate
Develop incentives promoting Low LID features into development projects
3 Impact Development (LID) design In Progress are being considered through a
concepts collaboration between Land
Development and Storm Water
Management staff.
Conduct a feasibility study for the A design has been created for the
4 beneficial reuse of dry weather flow Delayed capture, treatment, and reuse of dry "
sources weather flow at Hilltop Park.
Next Steps
For component #4, staff will further develop the Hilltop Park Storm Water Reuse Project by
investigating potential water right issues with the San Diego Regional Water Quality Control
Board and by seeking funding to implement the project, if determined to be feasible.
Climate Action Plan Implementation 14 of 19
Prowess Report (May 20]3)
~~-~S
Oven~ie~r~
The frequency and intensity of ~;'ildfires and extreme heat events is expected to increase due
to local climate change impacts. These events could lead to greater public safer}' (loss of life
and property) and health concerns (poor air quality and infectious disease transmittal). The
strateeies are designed to educate the general public and the business community about the
impacts of climate change using existing City and community partner outreach mechanisms
~~~th a special emphasis on making homes more resilient to ~',2ldfires, incorporating poor air
quality day notifications, and educating businesses about employee heat illness risks. In
addition; extreme heat events will be added as a significant emergency to the City's public
safety plans with a special emphasis on sen'irig vulnerable populations and supporting a
robust network ofenergy-secured "Cooling Centers."
• •• •-.
~: ~ti_
~`~~~~'~
The Cit
launched its new "Read
Set
~~''e=~''t :~~
' ~`" " y
y,
,
~'-
•'
ta,~:~
:;~v~. GO!" campaign, which is a
1 Expand community wildfire education ,
!=_Ongo~ng* comprehensive outreach program
`=~;~z- •~ `~ _
'~~"~ designed to promote wildifre prevention
•
; ~'~-~ ~ ' 8 re aredness.
P P
The City successfully revised its
2 Revise emergency plans to inGude
In Progress Emergency Operations Plan in
extreme heat events December 2012 to inGude extreme
weather events.
- ~-; ~x?~zr;
t.tr=:p
ii, _£t, Rte,- City staff now receives and forwards air
Establish a procedure for notifying the ~,; r,.,, ,G, quality notifications from the San Diego
3 community about poor air quality 8 kCorripleted County Air Pollution Control District
extreme heat days -g:±
y3-k3f=,x`~El,
through the City's Nixle community
~'~.'- , ~:;,: messaging system.
Next Steps
Cih' staff ~;'ill continue to implement its community education and notification programs
related to ~~ildfires and extreme heat days. The City`s Multi-Jurisdictional Hazard Mitigation
Plan ~~ill be revised in 201, as pan of its regulazly-scheduled update, to include extreme
weather events.
Climate Action Plan Implementation li of 19
Prowess Report (May 20li)
11-19
Overview
Chula Vista`s open space azeas include landscaped azeas within developments, pazks and
recreation areas; and open space that has been set aside as a preserve for sensitive biological
resources. In order to assess and reduce impacts associated with climate change on parks and
open space and their associated ecosystems, Strategy #8 is intended to seek opportunities for
the City to partner with the Resource Agencies, non-profit organizations, and/or adjacent
public land managers to monitor and manage/restore ecosystems to, ensure long-term habitat
connectivity, species resilience, and community recreational opportunities.
. -. •.
Integrate climate change-related Staff has begun to explore new
biological monitoring into Otay Ranch partnership opportunities with the San
1 Preserve's Management Plan & Annual In Progress Diego Foundation, environmental
Work Plans groups, and academic institutions to
develop a necessary monitoring protocol.
Update the Otay Valley Regional Park Chula Vista will be including climate-
Z (OVRP) Concept Plan to incorporate
i
l In Pro ress
g resilient updates to the OVRP Concept
Pl
f
h
d FY14 J
i
~ climate-resilient design & educat
ona an as part o
t
e propose
o
nt
- guidelines Staff Work Plan.
ch ; Th
O
Divi
i
tl
S
h
` e
pen
pace
on
as recen
y
s
Convert landscaped areas in open space .~k ~~ '
' installed 15 new web-based, "smart"
3
districts to water-saving plants, mulch, & ~~
Ongoing
i' °*
' .
irrigation controllers with plans to install
irrigation sytems s
k` another 100 smart controllers by the end
~ ~
N of year.
Next Steps
As funding is available, the City and its OVRP partners will implement the Concept Plan
amendments, which would address climate change impacts and vulnerabilities.
Climate Action Plan Implementation
Progress Report (May 2013)
16 of t9
~~-20
Oven•iew
Expected local climate change impacts include precipitation variability and sea level rise that
w=ill stress riparian ~~etlands and estuarine ~;=etlands; respectively. As a result, the locations
~~=here the temperatwe; moistwe, and other environmental conditions aze suitable for vt=etlands
and their associated species ~~nll shift. In order to reduce these impacts; Strategy'-'9 is
intended to enswe that; when presen ing or restoring coastal and riparian ~~=etland, the Cin=
take steps to incorporate adequate upland or transition habitats to accommodate shifts in
~~=etlands coverage and help enswe public access due to sea level rise and other climate
chance impacts. Specifically; components include (1) evaluating the feasibilit}= of monitoring
local~w~etlands species ranges and abundances in response to climate chance impacts. (2)
incorporate wetlands "migration" in habitat management and restoration design criteria in the
future Bayfront Natwal Resowces Management Plan (NRMP), and (3) revise the OVRP
Habitat Restoration Plan and Non-native Plant Removal Guidelines to include strategies for
climate change adaptation issues. y
. •. -.
Staff has begun to explore new
Evaluate potential to monitor local partnership opportunities with the San
1 wetlands' biological health to assess In Progress Diego Foundation, environmental
climate change impacts groups, and academic institutions to
~ ~ develop a necessary monitoring protocol.
Staff has begun preliminary work on the
• Incorporate climate change 8 sea level
I
P NRMP with the Bayfront Wildlife Advisory
G
h
h
id
if
d
li
t
2 rise concepts in Bayfront NRMP n
rogress roup, w
o
as
ent
ie
c
ma
e
change and sea level rise as critical
components to the planning process.
Amend OVRP Habitat Restoration & Non The City and its OVRP Partners will
3 Native Plant Removal Plans to promote On-Hold continue to seek funding necessary to
proceed with the proposed OVRP plans'
climate resiliency amendments.
Next Steps
Staff will continue to work with the Port of San Diego and the Bayfront Wildlife Advisory
Group to include climate change-related issues into the 1~iRMP development process. The
Cim will also, as funding permits, continue «rorking with its OVRP partners to amend the
Plans and Guidelines used for trail planning to incorporate climate adaption strategies.
Climate Action Plan Implementation 17 of 19
Progress Repon (Ma}' 20li)
~~-21
Oven~iew
Over the next 40 years, sea level rise rates aze expected to increase with local sea levels 12 to
18 inches higher than their current levels. Higher sea levels can result in increased erosion,
more frequent flooding and property damage. loss of wetland habitats, and fewer waterfront
public access options. As such, Strategy #10 directs the City to amend its land development
codes and CEQA guidelines to incorporate climate change-related sea level rise into future
development and municipal infrastructure projects' design and review. Specifically, the
components include (1) revising the grading ordinance to consider a project's vulnerability to
future sea level rise and flooding events, (2) modifying the Subdivision Manual to ensure that
storm water/drainage infrastructure can address future sea level rise and flooding impacts, and
(3) ensuring that environmental. review and CEQA procedures aze consistent with these
changes.
Next Steps
At this time, the Governor's Office of Planning and Research (OPR) has not provided
additional guidance on sea level rise issues under CEQA. However, OPR expects to begin
updating the statewide CEQA Guidelines for sea level rise impacts in late 2013. As such.
City staff will continue to monitor the development of statewide CEQA Guidelines to ensure
that Chula Vista is consistent with any new requirements.
Climate Action Plan Implementation 18 of 19
Progress Report (May 2013)
~~-22
'~t1D~ArPTATIIO*N_ST'R`ATEGY #11 ; . ~ ~ z `~... ~-~` ~.~ ".~ r' ~- s} ~ ~ .~ „€'~_
~111tGE1\T-El.~l,TO`~ I 4~ kJ ~4 4: t 3 J .i '~~1. i= = ~ ~
G T
Overview
Climate change impacts create new issues that local communities and; in particulaz,
businesses need to address and prepare for in order to reduce future risks and costs. These
issues can include higher insurance premiums due to greater flooding or wildfire risks, more
expensive utility costs due to higher energy and water demand, and lower productivity due to
more employee sick days from frequent extreme heat and poor air quality days. As such,
Strategy X11 is designed to provide assistance and non-monetan incentives to help businesses
manage climate change risks and to attract businesses that provide "green'' products or
services into Chula Vista. Specifically, the components include (1) revising the municipal
purchasing policy to more robustly promote the procurement of "green" products and
services; especially from local Chula Vista businesses; (2) re~~ising existing business outreach
programs to include recommendations on how they can reduce future climate change risks;
and (3) continuing the recruitment and retention of "green' businesses and manufacturers in
Chula Vista.
~ .~ ..~
As part of the formal solicitiation process
1 Revise "green" procurement policy 8
In Progress for a new office supply vendor, the City
process has included specifications for
environmentally-friendly products.
~~ ~7~~1
RFt
.
c rt~~
Modify business outreach programs to ~` ~~~(`s Both the CLEAN Business and FREBE
2
include information on reducing climate
;Cornpleted~ checklists have been.updated to include
change risks
~{~
~ info on business-related climate
~
- adaptation strategies.
.Lh~ F-.
i_'~_.~.'~'-
:t .m.-
_ =,. _ , Over 140 Chula Vista businesses have
Continue recruiting & retaining "green" `~~~ ~
± -~~-'~ been recognized through the CLEAN
3 Ongoing ~ Business program in partnership with the
businesses ,; ~~= 3,- ~:
~:~ ~ ~
Chamber of Commerce and Third Ave
~~ ~"
~; Vii,; Village Association.
Veit Steps
By June; the City expects to select a new office supply vendor, which v<711 improve the
availability of "green" products and allow better tracking of their use. In addition, the
Economic Development Division ti~ill be completing by August ?013 a business recruitment
study, which includes an analysis of how to better attract and retain clean technology-oriented
companies.
Climate Action Plan Implementation 19 of 19
Prowess Report (May 2013)
11-23
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
-~
G18n R. Go gins ~ •~
ity Attor
Dated: ~ 3 v ~
THIRD PARTY ADMINISTRATION AGREEMENT
BETWEEN
THE CITY OF CHULA VISTA AND
YGRENE ENERGY FUND CALIFORNIA, LLC
11-24
:;
THIRD-PARTY ADMINISTRATION AGREEMENT
THIS THIRD-PARTY ADMINISTRATION AGREEMENT (the "AGREEMENT") is entered into as of the
6 day of August, 2013 (the "Effective Date"), by and between the City of Chula Vista, a chartered
municipal corporation (the "CITY"), and Ygrene Energy Fund California, LLC, a California limited
liability company with principal offices in Santa Rosa, CA (hereinafter "CONTRACTOR").
WHEREAS, the CITY desires to establish a voluntary special tax program, commonly referred to as
Property Assessed Clean Energy (PACE), under the authority of the Mello-Roos Community
Facilities Act of 1982 as amended (Government Code Sections 53311, et seq.) (the "ACT") to
reduce the upfront costs associated with. energy efficiency, renewable energy and water
conservation projects that are affixed to real property and proposed by property owners, thereby
stimulating economic opportunities while reducing greenhouse gas emissions, promoting energy
security, and improving water conservation (the "PROGRAM"); and
WHEREAS, the CITY intends to utilize the ACT to establish a community facilities district (the
"DISTRICT") through which the CITY will implement the PROGRAM; and
WHEREAS, CONTRACTOR has recognized and established experience in the administration and
funding of similar programs; and
WHEREAS, the CITY and CONTRACTOR desire to contract for the administration and funding of
the CITY's PROGRAM that will use the DISTRICT [o provide special tax financing to property
owners tvho wish to install qualifying improvements on their real property (the
"PARTICIPANTS"); and
~V-HEREAS; the CONTRACTOR warrants and represents that it is experienced and staffed in a manner
such that it can deliver the services required of CONTRACTOR to City_ in accordance with the time
frames and the terms and conditions of this AGREEi`4ENT.
NOW, THEREFORE, in consideration of the mutual promises hereinafrer set forth, the CITY and
CONTRACTOR agree as follows:
1. Scope of Services.
1.1 During the term of this AGREEMENT, CONTRACTOR shall undertake activities, furnish
professional services, perform tasks, and provide deliverables as the exclusive third party
administrator for the PROGRAM established under the ACT generally in conformance
with the Functions and Responsibilities for the DISTRICT, attached hereto and made a
part hereof as Exhibit A (the "SERVICES"). This AGREEMENT does not limit the C[TY's
ability to contract with other entities or individuals to serve as third party administrators
for similar programs established under other state or federal legislation, specifically
11125
California Streets and Highways Code Sections 5898.10, et seq. (California Assembly Bill
811, Contractual Assessments: Energy Efficiency Improvements).
1.2 Both the CONTRACTOR and CITY acknowledge that the SERVICES may be revised, upon
mutual agreement, to address community feedback, regulatory changes, or program
performance.
2. Term/Commencement Date.
2.1 On the Effective Date, CONTRACTOR shall begin those SERVICES required to (i) set up the
PROGRAM, (ii) form the DISTRICT, (iii) arrange funding for the PROGRAM, and (iv) assist
the CITY to complete a successful court validation.
2.2 The successful completion of a conclusive, uncontestable court validation for the
PROGRAM, and approval of the validation by CONTRACTOR'S warehouse lender (the
"COMMENCEMENT CONDITIONS") shall be conditions precedent to CONTRACTOR'S
obligation to commehce the remainder of the SERVICES.
2.3 Within thirty (30) days following fulfillment of the COMMENCEMENT CONDITIONS,
CONTRACTOR shall proceed to implement all of the remaining SERVICES for the
PROGRAM. The Commencement Date for this AGREEMENT will be thirty (30) days after
the COMMENCEMENT CONDITIONS have been met.
2.4 This AGREEMENT shall remain in effect for five (5) years from the Commencement Date
(the "Initial Term"), and shall renew, upon mutual agreement of the parties, for two (2)
successive two (2) year Terms, except where conditions established in Section 8.1.2 of
this AGREEMENT are met, in which case Renewal Terms will be as specified in section
8.1.2.
3. Consideration.
3.1 As consideration for entering into this AGREEMENT, and for its performance hereunder,
CONTRACTOR shall be entitled to impose and collect fees and charges in accordance with
Exhibit A. Such consideration recognizes that CONTRACTOR will not receive or collect
fees or charges directly or indirectly from the CITY for its SERVICES.
4. Sub-consultants.
4.1 CONTRACTOR shall have the right and authority to utilize sub-consultants in the
performance of the SERVICES. In such event, CONTRACTOR will be responsible for all
payments to any third-party subcontractors, service providers orsub-consultants that are
reasonably related to this AGREEMENT, and will maintain responsibility for all work
related to the SERVICES.
2
11-26
4.2 Nothing in this AGREEMENT shall prevent CONTRACTOR from performing similar
SERVICES in other jurisdictions, either within or outside the State of California.
5. CITY's Responsibilities.
5.1 The CITY acknowledges that the ACT reserves authority and responsibility to local
governments for establishing the DISTRICT, and executing Unanimous Approval
Agreements ("UAAs") with property owners. Consequently, the CITY shall timely take the
following actions:
a. Authorize and adopt resolutions and/or ordinances required to form the DISTRICT;
b. Adopt resolutions and approve documents authorizing the PROGRAM;
c. Within three (3) business days or as soon as practical thereafter following submittal
by CONTRACTOR, execute documents required by the ACT including, but not
necessarily limited to, UAAs; -
d. Without cost to the CITY and subject to reimbursement, act in good faith to fulfill other
requirements of the ACT and/or Ygrene's funding sources that can only be performed
by the government agency sponsoring the PROGRAM.
Norivithstandingthe above,_all actions requiring City Council action shall be subject to
City Council approval, which actions shall be presented to the City Council on a timely and
diligent schedule.
6. CDNTRACTDR's Responsibilities.
6.1 CONTRACTOR shall exercise the same degree of care, skill and diligence in the
performance of the SERVICES as it ordinarily provides under similar circumstances. If at
any time during the term of this AGREEMENT it is determined that CONTRACTOR'S
delivery of the SERVICES is incorrect, not properly rendered, defective or fails to conform
to the requirements of la~v, upon written notification on behalf of the CITY, CONTRACTOR
shall at its sole expense, immediately correct the discrepancy.
6.2 lNithout assuming any liability or responsibility therefore, CONTRACTOR shall establish
rules for participation that require contractors to exercise professional skill and integrity
in the installation of improvements financed under the PROGRAM.
6.3 CONTRACTOR will establish procedures that account for and accrue the carbon credits
that result from projects financed under the PROGRAM in accordance with the terms of
Exhibit A, Paragraph 3(c) "Carbon Credits".
6.4 CONTRACTOR hereby warrants and represents that at all times during the term of this
AGREEMENT it shall maintain in good standing all required licenses, certifications and
permits required under Federal, State and local laws applicable to and necessary to
perform the SERVICES as an independent contractor.
7. Disclosure/Conflict of Interest.
11-27
7.1 So long as CONTRACTOR fulfills its obligations to provide the SERVICES in accordance
with this AGREEMENT, the CITY agrees that CONTRACTOR may act as administrator for
other Ygrene administered programs and/or may assist any other political subdivision
sponsoring Ygrene administered programs.
8. Termination/Breach.
8.1 Termination for Cause.
8.1.1 A breach of this AGREEMENT shall mean a material failure to comply with any of the
provisions of this AGREEMENT, including but not limited to Section 8.1.2 below. If
any party breaches any obligation herein, then, upon receipt of written notice by the non-
breachingparty, the breaching party shall, within thirty (30) days after receiving written
notice of such breach. proceed diligently and in good faith to take all commercially
reasonable actions to cure such breach and shall continue to take all such actions until the
breach is cured. If the breaching party does not proceed diligently and in good faith to
cure such breach; then the AGREEMENT may be terminated upon written notice by the
non-breaching party. Such termination shall take effect immediately.
8.1.2 During the Initial Term, CONTRACTOR shall achieve cumulative target project
funding of $25,000,000, or annual project funding for the PROGRAM of $5,000,000
for each year of this AGREEMENT, upon fulfillment of the COMMENCEMENT
CONDITIONS and continuing for the remainder of the Initial Term of this
AGREEMENT. To the extent that CONTRACTOR'S annual results exceed such
amount, the excess amount shall be carried over to the following year. To the extent
that CONTRACTOR'S annual results do not meet such amount, the shortfall maybe
made up within the next year's performance. Renewal Terms, after the Initial Term,
are conditioned upon the following: a) if CONTRACTOR meets 80% of the
cumulative target project funding amount, the Renewal Term is as stated in section
2.4, orb) if CONTRACTOR meets 100% of the cumulative target project funding
amount, there will be a one-time two (2) year Renewal Term, on an automatic basis.
8.2 Termination for Convenience.
8.2.1 Following the Initial Term, or any successive extension term, either party may notify
the other of its intent to terminate the AGREEMENT. In such event, the
AGREEMENT will terminate on the second (2nd) anniversary of the termination
notice (the "Transition Period"), at which date CONTRACTOR shall cease providing
the SERVICES.
8.2.2 CONTRACTOR will be entitled to continue to offer the SERVICES during the
Transition Period so long as: (i) CONTRACTOR provides for on-going management
of special taxes related to any projects completed under CONTRACTOR'S auspices;
(ii) CONTRACTOR continues to provide all of the SERVICES, but does not accept any
new project applications, in a professional manner in accordance with the
11-28
AGREEMENT; and (iii) CONTRACTOR continues to work in good faith with the CITY
to provide a smooth transition for either the termination of the program or transfer
to a subsequent administrator. If CONTRACTOR fails to meet these obligations at
any time, the CITY may, at its discretion, direct the CONTRACTOR to cease providing
SERVICES immediately.
8.3 The CITY and CONTRACTOR ackno+vledge and agree that as of the Effective Date the
COMMENCEMENT CONDITIONS have not been satisfied. The CITY and CONTRACTOR
agree that time is of the essence and each party shall diligently and cooperatively act to
satisfy the COMMENCEMENT CONDITIONS and advance CONTRACTOR'S delivery of the
SERVICES ++rithin the timeframes and sequences set forth in this AGREEMENT. Should the
COMMENCEMENT CONDITIONS not be satisfied within one year follo++ring the Effective
Date, either the CITY or CONTRACTOR may cancel the AGREEMENT by++~itten notice to
the other party, in which case it shall be null and void and of no further force or effect
8.4 [n the event that (i) conditions in U.S. financial markets, (ii) changes in la+v, or (iii) changes
in the CITY'S ability to provide special tax lien priority, render the PROGRAM infeasible,
CONTRACTOR may suspend the PROGRAM for a period of up to six months. Should
CONTRACTOR determine at the conclusion of the suspension period that conditions do
not warrant resumption of the program CONTRACTOR may request from the CITY an
extension of the PROGRAM suspension for an additional six months. The CITY may, at its
sole discretion, grant the extension or cancel the AGREEMENT.
9. Nondiscrimination.
9.1 During the term of this AGREEMENT, CONTRACTOR shall not discriminate against any of
its employees or applicants for employment, if any, because of their race, age, color,
religion, sex, sexual orientation, national origin, marital status, physjcal or mental
disability, or political affiliation and shall abide by all Federal and State laws regarding
nondiscrimination.
10. Defense, Indemnity, and Hold Harmless.
10.1 General Requirement. CONTRACTOR shall defend, indemnify, protect and hold harmless
the CITY, its elected and appointed officers, agents and employees, from and against any
and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury,
in la+v or equity, to property or persons, including+vrongful death, in any manner arising
out of or incident to any alleged acts, omissions, negligence, or willful misconduct of
CONTRACTOR, its officials, officers, employees, agents, and contractors, arising out of or
in connection with the performance of the SERVICES or this AGREEMENT. This
indemnity provision does not include any claims, damages, liability, costs and expenses
(including ++~ithout limitations, attorneys fees) arising from the sole negligence, active
negligence or willful misconduct of the C[TY, its officers, employees.
5
11-29
10:2 Costs of Defense and Award. Included in the obligations in Section 10.1 above, is
CONTRACTOR's obligation to defend, at its own cost, expense and risk, any and all suits,
actions or other legal proceedings; that may be brought or instituted against the CITY; its
directors; officials, officers; emplo~~ees; agents and/or volunteers, subject to the limitations in
Section 10.1. COI~TTRACTOR shall pay ahd satisfy any judgment, award or decree that may
be rendered against CITY or its directors, officials, officers, employees, agents and/or
volunteers; for any and all related legal expenses and costs incurred by each of them, subject to
the limitations in Section 10.1.
10.3 Insurance Proceeds. CONTRACTOR'S obligation to indemnify shall not be restricted to
insurance proceeds, if any, received by the CITY, its directors, officials, officers, employees,
agents, and/or volunteers. Such insurance proceeds, if any, received by the CITY, its directors;
officials, employees, agents, and/or volunteers, shall constitute a credit to CONTRACTOR on
any directly related claim by the CITY for indenmification, _with respect to which such
proceeds were paid.
10.4 Enforcement Costs. CONTRACTOR agrees to pay .any and all costs the CITY reasonably
incurs enforcing the indemnity and defense provisions set forth in this section.
10.5 The CITY shall promptly notify CONTRACTOR of any claim that gives rise to a right to
indemnity and shall fully cooperate with CONTRACTOR in defense of such claims. So long
as CONTRACTOR has agreed that the CITY is entitled to indemnification, CONTRACTOR
shall have the right to control the defense of the claim, including, without limitation, the
right to designate counsel and to select a single counsel to jointly represent the interests
of the CITY and CONTRACTOR (unless an actual present conflict would preclude joint
representation] and including the right to control all negotiations, litigation, arbitration,
settlements, compromises, and appeals of the claim. The CITY shall cooperate in defense
of the claim and may, but is not required to, retain at its cost additional separate counsel
to participate in or monitor the defense of the claim by CONTRACTOR.
10.6 The provisions of this section shall survive termination of this AGREEMENT.
11. Notices/Authorized Representatives.
11.1 Any notices required by this AGREEMENT shall be in writing and shall be deemed to have
been properly given if transmitted byhand-delivery, by registered or certified mail with
postage prepaid return receipt requested, or by a private postal service, addressed to the
parties (or their successors) at the following addresses:
For the CITY: Ciry of Chula Vista
c/o Brendan Reed, Environmental Resource Manager
276 Fourth Avenue
Chula Vista, CA 91910
For CONTRACTOR: Ygrene Energy Fund California, LLC
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c/o Stacey Lawson
100 BStreet - SU 210
Santa Rosa, CA 95401
11.2 Either party may, by notice in ~vriring given to the other, designate any further or
different representatives or addresses to which subsequent notices, certificates or other
communications shall be sent Any notice shall be deemed given on the date such notice
is delivered by hand (or confirmed electronic facsimile transmission) or five (5) days
after mailing via certified U.S. mail, return receipt requested, to the designated authorized
representative.
11.3 Each party shall be entitled to reasonably rely upon direction or communication received
from the above-designated representatives or any successor or additional designees.
12. Governing Law.
12.1 This AGREEMENT shall be construed in accordance with and governed by the laws of the
State of California. Venue for any litigation arising out of this AGREEMENT shall be
eacclusively in the proper court in San Diego County.
13. Entire Agreement/Modification/Amendment.
13.1 This writing contains the entire agreement of the parties and supersedes any prior oral or
written representations. No representations were made or relied upon by either parry,
other than those that are expressly set forth herein.
13.2 No agent, employee, or other representative of either party is empowered to modify or
amend the terms of this AGREEMENT, unless executed with the same formality as this
document
13.3 CONTRACTOR represents that it is authorized to do business in the State of California.
The execution, delivery and performance of this AGREEMENT by CONTRACTOR has been
duly authorized, and this AGREEMENT is binding on CONTRACTOR and enforceable
against CONTRACTOR in accordance with its terms. No consent of any other person or
entity to such execution, delivery and performance is required.
14. Ownership and Access to Records and Audits.
14.1 The parties acknowledge that all inventions, innovations, improvements, developments,
methods, designs, analyses, drawings, reports and all similar or related information
(whether patentable or not) which relate directly to the SERVICES in the DISTRICT and
are conceived, developed or made by CONTRACTOR or the CITY directly for THE
PROGRAM during the term of This AGREEMENT, are deemed to be within the public
domain, and subsequently maybe used by each party without warranty of any kind.
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14.2 All records, books, documents, maps, data, deliverables, papers and financial information
associated with the PROGRAM (the "Records") are public records and shall be available to
be inspected and copied by the CITY. In the event of public record requests, all such
requests shall be administered and handled by the CITY as the custodian.
14.3 The CITY, by its designee, shall, during the term of this AGREEMENT and for a period of
three (3) years from the date of termination of this AGREEMENT, have access to and the
right to examine and audit any of the Records.
14.4 Notwithstanding anything to the contrary in this Paragraph 15, the CITY acknowledges
and agrees that CONTRACTOR'S administrative software system is proprietary
technology, leased by CONTRACTOR from a third party entity and is subject to the
owner's copyright and not in the public domain.
15. Assignment.
15.1 This AGREEMENT may not be assigned by CONTRACTOR, other than to a wholly owned
subsidiary, affiliate or parent of CONTRACTOR, unless such assignment is first approved,
in writing, by the CITY or its duly authorized representative, which approval shall not be
unreasonably withheld.
16. Severability.
16.1 Incase any one or more of the provisions contained in this AGREEMENT should be
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein shall not in any way be affected or impaired
thereby. The parties shall endeavor in good faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable provision.
17. Independent Contractor.
17.1 CONTRACTOR shall be and remain an independent contractor and not an employee,
partner, agent, joint venture or principal of the CITY with respect to all of the acts and
services, including the SERVICES, performed by and under the terms of this
AGREEMENT. Accordingly, neither party shall have any authority to represent or bind
the other. Further, CONTRACTOR shall not be entitled to the rights and benefits afforded
to the CITY'S employees, including, but not limited to, disability or unemployment
insurance, workers' compensation, medical or disability insurance, vacation or sick leave
or any other employment benefit. CONTRACTOR shall file all tax returns and reports
required to be Filed by CONTRACTOR on the basis that CONTRACTOR is an independent
contractor, rather than an employee, and CONTRACTOR shall indemnify the CITY for the
amount of any employment taxes required to be paid by the CITY as the result of not
withholding employment taxes from the compensation under this AGREEMENT. This
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AGREEMENT shall not in any way be construed to create a partnership, association or
any other kind of joint undertaking, enterprise or venture between the parties.
18. Compliance with Laws.
18.1 CONTRACTOR shall comply with all applicable laws, ordinances, rules, regulations, and
lawful orders of public authorities in carrying out the SERVICES, and in particular shall
obtain all permits from all jurisdictional agencies to perform the SERVICES under this
AGREEMENT.
19. Waiver.
19.1 The failure of either party to this AGREEMENT to object to or to take affirmative action
with respect to any conduct of the other which is in violation of the terms of this
AGREEMENT shall not be construed as a waiver of the violation or breach, or of any
future violation, breach or wrongful conduct.
20. Survival of Provisions.
20.1 Any terms or conditions of this AGREEMENT that require acts beyond the date of the
term of the AGREEMENT shall survive termination of the AGREEMENT, shall remain in
full force and effect unless and until the terms or conditions are completed and shall be
fully enforceable by either party.
21. Prohibition of Contingency Fees.
21.1 CONTRACTOR warrants that it has not employed or retained any company or person,
other than a bona fide employee working solely for CONTRACTOR, to solicit or secure
this AGREEMENT, and that it has not paid or agreed to pay any person(s), company,
corporation, individual or firm, other than a bona fide employee working solely for
CONTRACTOR, any fee, commission, percentage, gift, or any other consideration,
contingent upon or resulting from the award or making of this AGREEMENT, except its
attorneys, accountants and consultants.
22. Insurance.
22.1 General. CONTRACTOR must procure and maintain, during the period of performance of
this AGREEMENT, and for twelve months after completion, policies of insurance from
insurance companies to protect against claims for injuries to persons or damages to
property that may arise from or in connection with the performance of the work under
this AGREEMENT and the results of that work by CONTRACTOR, its agents,
representatives, employees or subcontractors, and provide documentation of same prior
to commencement of work.
22.2 Minimum Scope of Insurance. Coverage must be at least as broad as:
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22.2.a. CGL. Insurance Services Office Commercial General Liability coverage
(occurrence Form CG0001).
22.2.b. Auto. Insurance Services Office Form Number CA 0001 covering Automobile
Liability, Code 1 (any auto).
22.2.c. WC. Workers' Compensation insurance as required by the State of California
and Employer's Liability Insurance.
22.2.d. E&0. Professional Liability or Errors & Omissions Liability insurance
appropriate to the CONTRACTOR'S profession. Architects' and Engineers' coverage is to
be endorsed to include contractual liability.
22.3. Minimum Limits of Insurance. CONTRACTOR must maintain limits no less than those
included in the table below:
22.3.a. General Liability: (Including operations, products and completed operations,
as applicable)$1,000,000 per occurrence for bodily injury, personal injury, (including
death), and property damage. If Commercial General Liability insurance with a general
aggregate limit is used, either the general aggregate limit must apply separately to this
Project/location or the general aggregate limit must be twice the required occurrence
limit.
22.3.b. Automobile Liability:$5,000,000 per accident for bodily injury, including
death, and property damage.
22.3.c. Workers' Compensation Employer's Liability: Statutory
$1,000,000 each accident
$1,000,000 disease-policy limit
$1,000,000 disease-each employee
22.3.d. Professional Liability or Errors & Omissions Liability: $1,000,000 each
occurrence.
22.4. Deductibles and Self-Insured Retentions. Any deductibles orself-insured retentions must
be declared to and approved by the CITY. At the option of the CITY, to be exercised in a
reasonable manner given the existing facts and circumstances, either the insurer will
reduce or eliminate such deductibles orself-insured retentions as they pertain to the
CITY, its officers, officials, employees and volunteers; or the CONTRACTOR will provide a
financial guarantee satisfactory to the CITY guaranteeing payment of losses and related
investigations, claim administration, and defense expenses.
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22.5. Other Insurance Provisions. The general liability, automobile liability, and where
appropriate, the worker's compensation policies are to contain, or be endorsed to
contain, the following provisions:
22.5.a. Additional Insureds. City of Chula Vista, its officers, officials, employees,
agents, and volunteers are to be named as additional insureds with respect to all
policies of insurance, including those with respect to liability arising out of
automobiles owned, leased, hired or borrowed by or on behalf of CONTRACTOR, where
applicable, and, with respect to liability arising out of work or operations performed by
or on behalf of CONTRACTOR, including prodding materials, parts or equipment
furnished in connection with such work or operations. The general liability additional
insured coverage must be provided in the form of an endorsement to CONTRACTOR'S
insurance using ISO CG 2010.(11/85) or its equivalent Specifically, the endorsement
must not exclude Products/Completed Operations coverage.-
22.5.b. Primary Insurance. CONTRACTOR'S General Liability insurance coverage
must be primary insurance as it pertains to the C[TY, its officers, officials, employees,
agents, and volunteers. Any insurance orself-insurance maintained by the CITY, its
officers, officials, employees, or volunteers is wholly separate from the insurance of
CONTRACTOR and in no ~vay relieves CONTRACTOR from its responsibility to provide
insurance.
22.5.c. Cancellation. The insurance policies required by this AGREEMENT shall not
be canceled by either party, except after thirty days' prior written notice to the C[TY by
certified mail, return receipt requested. The words "~~ill endeavor' and "but failure to
mail such notice shall impose no obligation or liability of any kind upon the company,
its agents, or representatives" shall be deleted from all certificates.
22.5.d. Active Negligence. Coverage shall not extend to any indemnity coverage for
the active negligence of the additional insureds in any case where an agreement to
indemnify the additional insured would be invalid under Subdivision (b) of Section
2782 of the Civil Code.
22.5.e. Waiver of Subrogation. CONTRACTOR'S Insurer will provide a Waiver of
Subrogation in favor of the CITY for each required policy providing coverage for the
term required by this AGREEMENT.
22.6. Claims Forms. If General Liability, Pollution and/or Asbestos Pollution Liability and/or
Errors & Omissions coverage are written on a claims-made form:
22.6.a. Retro Date. The "Retro Date" must be shown, and must be before the date of
the AGREEMENT or the beginning of the work required by the AGREEMENT.
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22.6.b. Maintenance and Evidence. Insurance must be maintained and evidence of
insurance must be provided for at least five years after completion of the SERVICES
required by the AGREEMENT.
22.6.c. Cancellation. If coverage is canceled ornon-renewed, and not replaced with
another claims-made policy form with a "Retro Date" prior to the effective date of the
AGREEMENT, CONTRACTOR must purchase "extended reporting' coverage for a
minimum of five years after completion of the SERV]CES required by the AGREEMENT.
22.6.d. Copies. A copy of the claims reporting requirements must be submitted to
the CITY for review.
22.7. Acceptability of Insurers. Insurance is to be placed with licensed insurers admitted to
transact business in the State of California with acurrent A.M.-Best's rating of no less than
A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State
of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best's
rating of no less than A X. Exception maybe made for the State Compensation Fund when
not specifically rated.
22.8. Verification of Coverage. CONTRACTOR shall furnish the CITY with original certificates
and amendatory endorsements effecting coverage required by this Section 22.. The
endorsements should be on insurance industry forms, provided those endorsements or
policies conform to the requirements of this AGREEMENT. All certificates and
endorsements are to be received and approved by the CITY before the Effective Date of
this AGREEMENT. The CITY reserves the right to require, at any time, complete, certified
copies of all required insurance policies, including endorsements evidencing the coverage
required by these specifications.
22.9. Subcontractors. CONTRACTOR must include all sub-contractors as insureds under its
policies or furnish separate certificates and endorsements for each sub-contractor. Al!
coverage for sub-contractors are subject to all of the requirements included in these
specifications.
22.10.Not a Limitation of Other Obligations. Insurance provisions under this Article shall not be
construed to limit CONTRACTOR'S obligations under this AGREEMENT, including
Indemnity.
23. Counterparts.
23.1 This AGREEMENT may be executed in several counterparts, each of which shall be
deemed original, and such counterparts shall constitute one and the same instrument.
24. Miscellaneous.
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24.1 In the event of any conflict or inconsistency between the terms of this AGREEMENT and
the terms of Exhibit A, the terms of this AGREEMENT shall govern.
(Signature Page to Follow)
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IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this AGREEMENT,
indicating that they have read and understood same, and indicate their full and complete consent
to its terms as of the Effective Date:
Attest:
Donna Norris, City Clerk
Approved as to form:
Glen R. Googins, City Attorney
City of Chula Vista ("CITY")
By:
Cheryl Cox
Mayor
Ygrene Energy Fund California, LLC
("CONTACTOR")
By: Ygrene eJgy Fund, Inc., its Member
By:
Stacey Lawson
President & CEO
Exhibit List to Agreement:
Exhibit A -Functions and Responsibilities for the District
iil-~a
EXHIBIT A
FUNCTIONS AND RESPONSIBILITIES FOR THE DISTRICT
In accordance ~~ith Paragraph 1 of the AGREEMENT, CONTRACTOR shall perform the followring
SERVICES:
1. PROGRAM Design & Implementation
a. Enabling Ordinance. Develop a procedural ordinance and/or authorizing resolution that is
consistent with State and federal law and ~~~ith the ACT, and provide a comprehensive set of
sample documents that provide:
• A determination that the establishment of the PROGRAM is in the public interest
• A statement indicating that the CITY proposes to make voluntary contractual property
tax lien secured financing available to property owners
• An identification of the types of renewable energy sources, water conserving and
energy efficiency improvements ("Eligible Improvements") that maybe financed
• A description of the boundaries (including a map) of the area within which special tax
financing maybe offered
• A description of the proposed financing program
Designation of a date, time and place for the public hearing on the matter
• A statement of assessment underwriting standards
• Consultation with the appropriate officials to ensure arrangements for placing the
special taxes on the tax roll and all the necessary documentation
• Standard or uniform protocols to create and maintain non-ad valorem special tax rolls,
and to transfer special tax collections to a trustee for disbursement
b. Hearing Report. Pursuant to adoprion of a procedural ordinance and/or authorizing
resolution for the DISTRICT, CONTRACTOR will provide a PROGRAM Report sufficient to
fulfill legal requirements and provide participating property owners with informarion they
need to make informed decisions, including:
• PROGRAM Jurisdiction. Description, map or diagram indicating the boundaries tvhere
special tax financing can be legally offered
• Draft Unanimous Approval Agreement ("UAA"). A draft form of the UAA, consistent
with the ACT, specifying the terms and conditions for a property owner to finance
Eligible Improvements
• DISTRICT Finance Plan. A description of the funding source(s) to be offered through
the DISTRICT for projects funded by the special tax financing under the PROGRAM.
The Finance Plan shall include a method for determining the interest rate and time
period during which affected property owners would pay any assessment
• Payment Schedules. Payment schedules that idenrify the amount and timing of
payments to be made during the term of the special tax levy. This schedule will be the
basis for the special tax installments that will be submitted annually to the tax
collector for inclusion on property tax bills
• Criteria for the Approval/Denial Process. Qualification requirements based upon the
ACT and PROGRAM underwriting guidelines
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Policy Statement. CONTRACTOR will provide draft policies for use in contractual
assessments between the DISTRICT and property owners for financing of Eligible
Improvements. This policy statement will include, but is not limited to, the following:
o Authorized Officials. Designation of the CITY official(s) authorized to enter into
UAAs with participating property owners
o Eligibility. Identifying the types of properties eligible under the PROGRAM, i.e.
single-family residential, multi-family residential, commercial and industrial
o Prioritizing Property Owner Requests. A statement that CONTRACTOR will
process and prioritize property owner requests for participation in the
PROGRAM on a first-come, first-served basis, without regard to size of project or
type of property
o PROGRAM Timelines. Specification of estimated timelines during PROGRAM set-
up and implementation.
c. Presentation to the CITY. Once the PROGRAM elements are completed and approved by the
CITY, CONTRACTOR will assist staff in presenting such information and materials to the
City Council (the "COUNCIL"), will assist in the preparation of the staff report, and
participate in required COUNCIL hearings.
d. Update and Amend the Hearing Report. As necessary, in a manner consistent with the ACT
and as directed by the COUNCIL following the public hearing, CONTRACTOR will make
requested changes and/or amendments to PROGRAM elements.
2. Administration
a. Internet Presence. Deliver a localized web portal with components and services that may
include the following:
• PROGRAM Branding. Provide a branded localized website to provide interested
persons with PROGRAM information and updates
• Property Segmentation. Provide data analysis and statistical modeling to segment
DISTRICT properties based on age, geographic location, value; and other relevant
attributes -
• Community Outreach. Allow property owners to pre-qualify for the PROGRAM and
provide information to all local stakeholders
• Contractor Engagement. Offer contractors the ability to access PROGRAM services
b. Administrative Software. Provide an administrative software system that provides
capabilities that include, but are not necessarily limited to, the following:
• Contractor Management. Training and management of contractors in support of their
participation in the PROGRAM
• Project Management. Features that track contractors, properties and jobs from initial
inquiries through funding
• Application Processing. Everything necessary to apply for financing under the
PROGRAM
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• Eligible improvements. A description of project components that qualify under the
PROGRAM
• PROGRAM forms. All PROGRAM forms with capabilities for electronic and manual
preparation
• Accounting and report functions with real-time PROGRAM metrics
c. Contractor Certification and Training. Establish standards, check qualifications and certify
contractors for participation in the PROGRAM through a process that provides the
following services:
• Screening: Confirm that participating contractors are properly licensed for
"participation in the PROGRAM
• Training: Provide a local training program that instructs contractors on PROGRAM
requirements, use of software tools, customer service and sales strategies
• Administrative software tool: Provide a software platform through which contractors,
once certified, can manage projects
• Project pre-approval: Pre-screen properties and property owners
Audit tools: Provide sofhvare to analyze energy consumption and quantify efficiencies
resulting from projects
d. PROGRAM Forms. Provide a portfolio of electronic and paper PROGRAM forms including,
but not limited to, the following:
• Schedule of Fees
• List of Eligible Improvements
• Assessment Underwriting Terms
• Application & Documentation Checklist
• Application Form
• Unanimous Approval Agreement
• Truth-In-Lending Form
• Notice of Sole Responsibility
• Lender Notification
• Funding Request Checklist
• Utility Authorization Form
• Closing Checklist
e. Eligible Improvements. The following are Eligible Improvements under the PROGRAM.
Addirional and/or alternative improvements maybe added on a case-by-case or the list
maybe modified to comply with state lav,~.
Energy Efficiency. The following energy-efficiency measures are approved for all
building types: .
o Air Sealing and Ventilation
o Air Filtration
o Building Envelope
o Duct Leakage and Sealing
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o Bathroom, ceiling, attic, and whole house fans
o Insulation
o Defect Correction
o Attic, floor, walls, roof, ducts
o Weather-Stripping
o Home Sealing
o Geothermal Exchange Heat Pumps
o HVAC Systems
o Evaporative Coolers
o Cooler must have a separate ducting system from air conditioning and heating
ducting system
o Natural gas storage water heater
o Energy Star listed
o Tank-less water heater -
o Solar water heater system
o Reflective insulation or radiant barriers
o Cool roof
o Windows and glass doors
o U value of 0.40 or less and solar heat gain coefficient of 0.40 or less
o Window filming
o Skylights
o Solar tubes
o Additional building openings to provide addition natural light
o Lighting
o Energy Star listed (no bulb, only retrofits)
o Pool equipment
o Pool circulating pumps
ii. Non-residential Building Measures. The following measures are allowed for
commercial and non-residential buildings, in addition to all applicable energy
efficiency measures listed above:
o Occupancy-Sensor Lighting Fixtures
o SMART Parking Lot Bi-Level. Fixture
o SMART Parking Garage Bi-Level Fixtures
o SMART Pathway Lighting
o SMART Wall Pack Fixtures
o Task Ambient Office Lighting
o Classroom Lighting
o Refrigerator Case LED Lighting with Occupancy Sensors
o Wireless, daylight lighting controls
o Kitchen Exhaust Variable Air Volume Controls
o Wireless HVAC Controls & Fault Detection
iii. Solar Equipment. Eligible solar equipment for both residential and commercial
properties includes:
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o Solar thermal hot water systems
o Solar thermal systems for pool heating
o Photovoltaic systems (electricity)
iv. Custom Measures. The follovring Custom Measures are examples of projects that can
qualify for PROGRAM funding when building assessments demonstrate that they
provide energy savings in excess of Title 24 requirements or provide benefit to cost
ratios exceeding 1:
o Emerging energy technologies
o Building energy-management controls
o HVAC duct zoning-control systems
o Irrigation pumps and controls
o Lighting controls
o Industrial- and process-equipment motors and controls
o Fuel cells
o Wind-turbine power system
o Natural gas
o Hydrogen fuel
o Other fuel sources (emerging technologies)
o Co-generation (heat and energy)
v. Water-Conservation Measures.
o Faucet aerators
o Core-plumbing system
o Gray-water system
o Instantaneous hot-water heater
o Recirculation hot-water system
o Demand initiated hot-water system
o Hot-water pipe insulation
o Irrigation-control system
o Irrigation system
o Raimvater cistern
o Low-flow showerhead
o High-efficiency toilets
o Demand water softener
o Whole-house water-manifold system
o Cooling-condensate reuse
o Cooling-tower conductivity controllers
o Deionization
o Filter upgrades
o Foundation drain water
o Industrial-process water-use reduction
o Pre-rinse spray valves
o Recycled water source
o Urinals
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o Waterless urinals
f. Applications and Project Management Utilize the following procedure for all projects:
• Underwrite properties and property owners - electronically to the extent possible
• Provide initial approval or denial notifications for all applications
• Assign the Certified Contractor selected by the property owner to utilize the
administrative software for project management
• Review submitted energy audits for PROGRAM compliance
• Evaluate owner-approved construction contracts for PROGRAM compliance
• Instruct Property Owner to review and execute UAA
• Record UAA and associated documents and authorize property owner and contractor
to obtain permits and proceed to install the improvements
• Review signed building permits and lien releases, obtain property owner approval of
final project accounting and submit for funding
• Obtain property owner payment instructions and fund the project
• Submit special tax levy for inclusion on the property tax bill
• Setup tax roll administration for the property
g. Marketing. Provide comprehensive marketing plan for the DISTRICT to include, but not be
limited to, the following:
• Outreach Center. Open an outreach center in the City of Chula Vista for stakeholder
education, outreach, customer service, contractor liaison, and information resources.
• Branded Collateral Materials. Produce a range of localized PROGRAM materials
including informational brochures and direct mail pieces
• Community events and seminars
• Contractor education and professional development seminars
• Editorial coverage and PROGRAM promotion
• Utility, trade group, financial, community and political outreach
h. PROGRAM Support._ Provide a range of support services to all PROGRAM stakeholders,
including:
• Ongoing assessment tracking, verification and management
• Customized, real-time reporting for the CITY representatives on all aspects of the
PROGRAM the CITY staff accessibility during all business hours
• Attendance at the CITY status meetings and hearings on an as-needed basis
3. Financial Model
a. Underwriting. All property owners, and improved properties in the DISTRICT that meet
the PROGRAM'S criteria for approved property types, must also meet the following
underwriting criteria for participation in the PROGRAM:
• The property must be improved, be located within the DISTRICT and be on the
property tax rolls
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• All owners of record must agree to participate and execute the UAA
• Existing secured debt must not exceed 85% of the market value of the property unless
consent of lenders of record is obtained
• There must have been no notices of default or other indication of delinquency
recorded against any mortgage for the lesser of the past three years or the period of
ownership
• Property owners must be current on their property taxes
• Property ovtmers must not be in bankruptcy
• There must be no involuntary liens on the property
• Funding requests must not exceed limits provided by the ACT
• Minimum funding request is $2,500
• Only Eligible Improvements, permanently affixed to the property, may be funded
• Property o~v-ners must, on PROGRAM forms, notify all existing secured mortgage
holders of record of their intent to participate in the PROGRAM
• Property owners v,~ill be encouraged to participate in incentive programs for which
they qualify and rebates or cash payments received by or approved prior to funding
must be deducted from the financing
• Property o~~mers must authorize PROGRAM staff access to the utility records for the
property for the rivo years prior to and following completion of the project
• The total aggregate property taxes on the property must not exceed the amount
permitted under DISTRICT Goals & Policies for CFDs
• Large projects may require additional underwriting during the project approval phase
b. Financial Structure. Through a financial subsidiary, CONTRACTOR has agreements with
local and regional banks, capital markets and other funding sources to provide both interim
and long-term financing for the PROGRAM. CONTRACTOR provides all required funding
for PROGRAM setup, administration, marketing, legal and other costs of the PROGRAM at
no cost to the CITY. To reimburse these costs and to generate operating profits,
CONTRACTOR looks to the following revenue sources:
PROGRAM fees. The following fee structure applies to the PROGRAM. Not all listed
fees may apply to every project and additional fees may be necessary during the life of
the PROGRAM to cover unanticipated costs. Such fees shall be consistent with the
Local Goals and Policies report.
Fee Description
Application
Processing & underwriting
CITY cost recovery
Amount
$50 for residential property
Up to $250 for commercial
Not to exceed $250
Not to exceed $100
Collected
Upon application,
maybe financed
At disbursement
At disbursement
Recording & disbursement
Escrow
Not to exceed $250
$100 - $700 based on project
size
At disbursement
At disbursement
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Title insurance $400 - $5,000 based on project At disbursement
size
All scheduled fees including the original application fee maybe financed through the Project
funding. ,
ii. Contractor fees. To cover costs associated with the Contractor Certification
program, training and ongoing oversight for contractors participating in the
PROGRAM, CONTRACTOR will charge Certified Contractors a fee equal to 3% of the
project contract amount for all projects funded under the PROGRAM.
iii. Operating Capital. Based on CONTRACTOR'S estimated current cost of funds the
initial target interest rate for participating property owners ("PROGRAM Interest
Rate") is 6.95%. CONTRACTOR utilizes the spread between its cost of funds and the
PROGRAM Interest Rate to reimburse the PROGRAM setup costs and fund the
operating costs of the PROGRAM ("Operating Capital"). If the Funding Rate changes,
the PROGRAM Interest Rate may change to provide adequate Operating Capital.
c. Carbon Credits/Offsets. The CITY will own and hold carbon credits, offsets, solar and other
renewable energy credits, refrigerant gasses, etc. ("Carbon Credits") that result from
projects financed through the PROGRAM. Subject to mutual agreement of the parties as to
the terms of the Carbon Credits program, CONTRACTOR will administer the accumulation
and aggregation of the Carbon Credits on behalf of the CITY in accordance with a program
approved in advance by the C[TY. At the close of each calendar year, CONTRACTOR will
provide a report and an accounting to the CITY of all activity associated with the Carbon
Credits, and will remit to the CITY 50% of any monetary return from the sale of Carbon
Credits, or will transfer to the CITY 50% any certified Carbon Credits developed during the
previous year. If a property owner qualifies for an incentive or rebate program that
requires transfer of Carbon Credits to an organization providing energy rebates or
incentives, then CONTRACTOR, on behalf of the CITY, and upon issuance of the rebate or
incentive to the property owner, will assign the rights thereto to that organization.
CONTRACTOR agrees that any payments made to CITY under the terms of this section shall
be in addition to, and shall not be used to fulfill, CONTRACTOR'S obligations to reimburse
CITY for PROGRAM costs.
22
11-46
RESOLUTION N0. 20li-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) ACCEPTfNG THE PROGRESS REPORT
ON CLII~~ATE ACTION PLAN I~4PLENIENTATION AND (2)
APPROVING A NO-COST CONTRACT ~~%ITH YGRENE
ENERGY FUND TO DESIGN AND ADMI\tISTER A LOCAL
PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAi\4
WHEREAS; Chula Vista has been anationally-recognized leader in implementing a
Climate Action Plan to address the threat of climate chance to the local community: and
\~~I-IEREAS. the Climate Action Plan includes 18 measures that address climate change
concerns, while providing numerous community co-benefits such as-utility savings; better air
qualit}=; reduced traffic congestion; local economic development; and improved quality of life;
and
~4'HEREAS; the May 20L3 implementation report for the Climate .9ction Plan outlines
the progress for the current 18 measures and identifies five components (out of ~7) that remain
on-hold due to funding shortages: and
WHEREAS; to further facilitate implementation of energy and water-related Climate
Action Plan components; the City released a Request for Proposals (RFP) in February 2013 for a
full sen=ice; Chula Vista-specific "Property Assessed Clean Energy' (PACE) program: and
~\rHEREAS; PACE programs allow property-o~\ners to voluntarily finance energy and
water-saving improvements through a tax assessment on their property; and
~\THEREAS; PACE programs; which are typically administered by third-parties; have
successfully facilitated building energy and water upgrades in other jurisdictions and created
local economic development benefits; and
~6jIIEREAS; afrer a formal proposal revie\v and interview process; staff is recommending
that City Council approve a no-cost contract with Ygrene Energy Fund to administer a Chula
Vista-specific PACE program for both residential and commercial property-owners; and
«'I-IEREAS; Yerene was selected based on its beneficial use of the Dlello-Roos Act (as
amended under SB»>) as the PACE enabling legislation, its leveraging of Chula Vista community
partnerships (including creating a local "Energy Center' storefront); and its qualiq~ controls on
contractor performance and project energy savings.
WHEREAS, City staff will work with Ygrene to solicit additional input from community
members about program design and implementation over the next month; and
WHEREAS, based on this public feedback, a formal program plan will be drafred and
presented to City Council for formal review and consideration.
JaAttomey\FINAL RESOS A\'D ORDI'~`A\CES\20li\08 06 13UtES0-P\\=-CAP Report PACE Contract_Reso_FINAL.doc
7/30/20li ?:51 PM
11-47
Resolution No.
Page 2
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby resolve
that it:
1. Accepts the May 20li progress report on Climate Action Plan implementation; .
and
2. Approves a no-cost contract with Ygrene Energy Fund to design and administer a
Chula Vista-specific Property Assessed Clean Energy program in substantially the
for presented, with such minor modifications as may be approved or required by
the City Attorney, a copy of which shall be kept on file with the City Clerk.
Presented by
Richard A. Hopkins
Director of Public Works
Approved as to form by
len R. oogins ~ ''`\
Ci rney ~J
1:Wttomey\FIN.4L RESOS AND ORDINAN'CES\2013\08 06 13\RESO-P\i'-CAP Report PACE Contract_Reso_FMAL.doc
7/308013 2:51 PM
11-48
Ygrene Energy Fund
Agenda Item: 54 Month Update on Climate Action Plan
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