HomeMy WebLinkAboutOrd 1982-2012 ORDINANCE NO. 2012 _
AN ORDINANCE OF THE CITY OF CHULA VISTA ESTABLISHING
A MUNICIPAL SOLAR UTILITY
The City Council of the City of Chula Vista does ordain
as follows:
SECTION 1. Purpose.
The purpose of this ordinance is to grant the right
to establish a Municipal Solar Utility.
The welfare of Chula Vista residents has been jeopar-
dized in the past by shortages of natural gas, petro-
leum, propane and electric power. The shortage of
available energy supplies will continue during the
coming decade unless measures are established to con-
serve the energy available for the economy and the
residents of Chula Vista. It is declared to be the
policy of the City of Chula Vista to encourage and
promote the use of solar energy in order to prevent or
reduce an adverse impact upon the economy of Chula Vista
and in order to prevent interruption of employment of
the residents of Chula Vista in commerce and industry
and in order to prevent injury to the health and
welfare of the residents of Chula Vista due to the
shortage and high cost of energy in their homes and
places of work.
It is also declared the policy of Chula Vista to
improve the economics of solar energy use by facili-
tating the leasing of solar energy devices. This policy
is premised on a finding that the initial cost of
purchasing and installing a solar energy device is the
primary economic barrier to expanded solar energy use.
California law currently provides that taxpayers who
lease a solar energy system from a municipal utility or
from any lessor granted a permit from a Municipal Solar
Utility or from any lessor granted a permit from a
Municipal Solar Utility shall receive a tax credit for
the first three years of operation or until the solar
tax credit allowance terminates, whichever occurs first.
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Upon the establishment of the Chula Vista Municipal
Solar Utility, residents of Chula Vista who lease solar
energy devices through such utility should be able to
obtain tax credits. However, as legal title to such
solar energy devices is held by a person other than the
resident-user, the latter is particularly susceptible to
harm caused by consumer deception, safety hazards and
the interruption of service. To held prevent such harm
from occurring and to promote the economic feasibility
of solar energy use within the City of Chula Vista,
leasehold interests in solar energy devices may be
marketed within the City's jurisdiction by complying
with the provisions of this ordinance and any rules and
regulations promulgated by the City Manager of the City
of Chula Vista to implement any provisions of this
ordinance. Persons not participating in the Municipal
Solar Utility are not subject to any of the procedures
and provisions of this ordinance.
SECTION 2. Municipal Solar Utility.
The City Manager of the City of Chula Vista shall by
rules and regulations establish practices and procedures
designed to implement the policies set forth herein.
Such practices and procedures shall be known as the
"Chula Vista Municipal Solar Utility".
SECTION 3. Definitions.
The following definitions apply to those persons who
will be participating in the Municipal Solar Utility.
A. "Municipal Solar Utility" or "MSU" means a
program conducted by a local government or its
authorized agent to promote the utilization of renewable
energy and energy conservation technologies.
B. "Person" means any natural person, partnership,
corporation, business trust, association, company or
other legal entity.
C. "Solar Energy Device" includes equipment and
materials (and parts solely related to the functioning
of such equipment) that is intended to be or located on
or affixed to real property within the City of Chula
Vista and that uses solar energy directly to (i)
generate electricity, (ii) heat or cool a building or
structure, (iii) provide hot water for domestic service,
recreational, or therapeutic purpose, or (iv) provide
process heat or mechanical energy. Generally, these
functions are accomplished through the use equipment
such as collectors (to absorb sunlight and create hot
liquids or air), thermostats (to activate pumps or fans
which circulate the hot liquids or air), and heat
exchangers (to utilize hot liquids or air to create hot
air or water).
D. "Lease Arrangement" means a contract between a
lessee and an investor for the leasing of solar energy
devices, owned by the investor and leased and possessed
by the lessee, which is affixed to or located at and
servicing the real property owned or occupied by the
lessee.
E. "Tax Incentives" means California or federal
investment tax credits, solar tax credits, accelerated
depreciation, tax deferral and other tax benefits
accruing through the leasehold of solar energy devices
under existing state and federal tax law.
F. "Management Company" means any person serving as
agent of an investor for purposes of collecting lease-
hold payments, making payments for obligations incurred
in lease arrangements, and maintaining accounting
records of collections and payments for solar energy
devices.
G. "Lease Arrangement Marketing Company" or "Leasing
Company" means any person advertising, marketing,
placing, and arranging, pursuant to a lease arrangement,
for installation and servicing of solar energy devices
for a fee.
H. "Lease Arrangement Installer" or "Installer"
means any person, properly licensed under the provisions
of the California Contractors License Law, including any
solar specialty license, installing, removing or ser-
vicing solar energy devices subject to a lease arrange-
ment.
I. "Lessee" means any person leasing a solar energy
device on or affixed to the real property owned or
occupied by such person.
J. "Energy Office" of "Office" means the office,
under the direction of the City Manager responsible for
managing the Chula Vista Municipal Solar Utility and
performing the City's obligations under this ordinance.
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K. "City" means the City of Chula Vista.
L. "Permittee" means any leasing company, installer
or installation company, or management company that has
complied with all necessary requirements and obtained a
permit to participate in the MSU Solar Leasing Program.
SECTION 4. Permit Required.
No person shall attempt to operate as a leasing
company, installer, or management company in the
Municipal Solar Utility within the City of Chula Vista
without have a valid permit from the City.
SECTION 5. Regulatory Framework.
The City Manager is hereby authorized and directed to
undertake the following actions to develop, implement,
and administer the City's MSU Solar Leasing Program.
A. Develop, in cooperation with the City Attorney,
all documents necessary to administer and operate the
MSU Solar Leasing Program.
B. Prepare application procedures and eligibility
criteria governing participation by leasing companies,
installers, and management companies in the MSU Solar
Leasing Program. Any entity satisfactorily meeting such
eligibility criteria shall be issued an annual permit to
particpate in the MSU Program.
1. As a prerequisite to application for a permit,
the City Manager may require the inspection of
all appropriate records of the applicant includ-
ing, but not limited to, financial information
and investment transactions pertinent to deter-
mining whether or not the applicant satisfies all
eligibility criteria. All financial records of
the applicant shall be deemed to be private and
confidential and not subject to public review.
All such records of applicants not granted a
permit may be returned to the applicant upon
request by the applicant within ten (10) days of
the denial of the permit. Records of all persons
granted a permit shall be subject to such review
and audit by other public agencies as may be
required by law.
2. The City Manager shall compile a list of all
firms, known as "permittees" who obtain permits
to participate in the MSU Solar Leasing Program.
3. The City Manager shall develop and implement
procedures to be used for revoking the permit of
any permittee failing to comply with this
ordinance and any rules and regulations
promulgated to implement this ordinance. All
criteria and procedures proposed hereby by the
City Manager shall be subject to review by the
City Attorney and approval of the City Council.
4. The City Manager shall review and approve all
lease terms proposed by leasing companies prior
to granting the leasing company a permit to
participate in the MSU Solar Leasing Program.
C. Monitor and review all transactions and con-
tractual relationships between permittees and consumers
to ensure compliance with program requirements and other
applicable federal, state, or local laws.
D. Prepare, in cooperation with appropriate
departments and other public agencies, manufacturing,
operating, maintenance, and aesthetic standards for all
solar equipment to be utilized under the leasing
program.
E. Assess in cooperation with the Finance Department
the feasibility of developing billing procedures to be
utilized in invoicing solar lessees, collecting monthly
lease payments, and disbursing said payments to the
relevant permittees. Such procedures may include
utilization of the City's computer system or such other
system as may be determined to be cost effective. The
City Manager will establish a reasonable fee to be
charged to recover all costs of said billing system, and
establish regulations for the operation of said billing
system.
F. Prepare any other procedures, rules, regulations,
and fee schedules deemed reasonably necessary to
facilitate the implementation and on-going operation of
the leasing program.
SECTION 6. Consumer Protection Measures.
A. No person may take or use the primary residence
of a lessee as security for any lease payment or other
indebtedness incurred through the lease arrangement.
B. The City Manager shall develop bonding require-
ments for leasing companies, installers, and management
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companies participating in the MSU Solar Leasing
Program. Required bonds must be posted with the City
prior to a permit being granted for particiption in the
program. All bonds shall be permittee bonds secured for
an initial term of at least one (1) year.
C. Permittee bonds shall guarantee full performance
of the permittee's responsibilities as a participant in
the program. Permittee bonds shall be held by the City
and shall be used to compensate lessees for loss or
damage suffered as a result of the permittee's failure
to perform under the conditions of the permit and
according to procedures set forth herein and in any
rules and regulations promulgated to implement any
provisions of this ordinance.
D. All solar energy devices installed under the MSU
Solar Leasing Program must receive required building
permits. Special fees may be established, if necessary,
for solar energy devices based on type and size to
defray the special inspection costs they entail.
E. The City may establish an Arbitration Board to
hear and resolve any controversy or claim arising out of
or relating to the lease arrangement or installation of
solar energy systems leased under the MSU Solar Leasing
Program. If said Arbitration Board is established, all
permittees and lessees must agree to use the Arbitration
Board to resolve disputes, claims, or controversies.
The Arbitration Board's award shall be final and binding
on all parties, except as provided by state law, and
judgment upon the award may be entered in any court
having jurisdiction thereof.
SECTION 7. Severability.
If any provision of this ordinance or its application
to any person or circumstances is held invalid, the
invalidity does not affect other provisions or applica-
tions of this ordinance which can be given effect
without the invalid provision or application, and to
this end the provisions of this ordinance are severable.
SECTION 8. Violations.
Any violation of this ordinance may be enforced by
the City in any manner provided by law, including injunc-
tive relief. Except as otherwise noted herein, nothing
in this ordinance shall be construed to prohibit any
person from pursuing other remedies in law or equity.
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SECTION 9. Effective Date.
This ordinance shall take effect and be in full force
on the thirty-first day from and after its adoption.
Presented by Approved as to form by
Attorney
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FIRST READ AT A REGULAR MEETING OF THE CITY COUNCIL OF THE
TY OF CHULA VISTA· CALIFORNIA· HELD November 16 19 82 AND
FINALLY PASSED AND ADOPTED AT A REGULAR MEETING THEREOF HELD NnvPmhPP 23 ·
19 82 · BY THE FOLLOWING VOTE· TO-WIT:
AYES: Councilmen: Scott, Cox, Malcolm, Moore, McCandliss
NAYES: Councilmen: None
ABSTAIN: Councilmen: None
ABSENT: Councilmen: None
e City of Cliulo Vista
ATTEST ~/~'~c"~ <~- ~.,
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California,
DO HEREBY CERTIFY that the above and foregoing is o full, true and correct copy of
ORDINANCE NO, 2012 ,and that the some has not been amended or repealed.
DATED
(seal) City Clerk
CC-660
ORDINANCE NO. 2012
AN ORDINANCE OF THE CITY OF CHULA VISTA ESTABLISHING
A MUNICIPAL SOLAR UTILITY
By a unanimous vote on November 23, 1982, the City
Council placed the ordinance on its second reading
and adoption-
The ordinance establishes a municipal solar and
conservation utility as provided under AB 3788 signed
by the Governor which allows a public agency to pass
on State solar tax credits to individual citizens
leasing solar hot water systems.
Delineated in the ordinance are the definitions,
regulatory framework, consumer protection measures,
severability and violations.
Copies of the ordinance are available at the office
of the City Clerk, City Hall, 276 Fourth Avenue,
Chula Vista, California.
Dated: Nov. 30, 1982
A~ Ful~as~erk