HomeMy WebLinkAboutAgenda Statement 1982/11/23 Item 18COUNCIL AGENDA STATEMENT
Item 18
• Meeting Date~~23/~2
ITEM TIT E: Ordinance ~-~ ~~ - Establishing a Municipal Solar Utility -
Second Reading and Adoption
SUBMITTE BY: Director of Building & Housing (4/5ths Vote: Yes NoX )
On No r 16, 1982, the City Council placed on first reading an ordinance establishing
a nlunici 1 solar and conservation utility as provided undex A.B.3788 signed by the
Governor, which allcxas a public agency to pass on State solar tax credits to individual
citizens easing solar hot water syst~ns. In placing the ordinance on Trs~rdeaodi~anthe
City Co it directed staff to develop more information regarding the p opo
prior to oond reading.
TION: That the City Council adopt the ordinance.
BOp,RD~ SSION RECbDq`~i`IDATTON: N.A.
A.B. 378 was signed by the Governor on September 29, 1982 ~.n order to Provide a vehicle
whereby itizens leasing (rather than buying) solar equipment, would qualify for State solar
nts. The statute requires that
tax cre is of 550 on the principal portion of the lease paY~ ranted a leasing permit by
solar 'pment so leased mnast be from a c~any which has been g
a munici 1 solar and conservation utility. The legislation was prompted by pressure from
sol energy system companies after the Franchise Tax Board. ruled that State tax credits
no be claimed unless systems were purchased by the customer. The December 31, 1982
'r t of ordinance adoption probably was included in the legislation to minimize to
some de ee loss in State revenues by allowing tax credits on leased equipment. At least,
this rea on has been advanced by SANDAL representatives as the only reason they can see for
the ~ 31, 1982 deadline.
The or ce that was placed on first reading at the November 16, 1982 meeting is far more
comPreh sine than is required to meet the requirements of State legislation but it does
spell o in some detail scare of the procedures and requirements that would be necessary
in or to fully i~lement ~ttie program. Many of the Procedures contained in the proposed
ssive and wou7-d not be required in order to qualify Chula Vista residents
ordinan e are permi
to be e igible for the tax credits.
ps a inn~n, two things must occur if the residents of the City are to qualio nor tax
credits (1) the City must be capable of issuing an annual permit for a per;
operate as a leasing coi~any, installer or management company in a
mLmicipal solar utility ies rtici ting in
(2) the City must develop bonding requirements for conpan Pa Pa
a leasing p~ ~• g or installer of solar syste~ts to obtain
The or ce would not r re a leasin company
such a rniit in order to lease equipment to Persons not wishing to take advantage of the
State's tax credit. The City would have to establish further criteria by resolution that
will g ern the issuance of such permits and other standards relating to bonding rec~xire-
ments .
i standing the benefit to the individual customer, the solar company or private
~t rs in leasing systems are also afforded tax credits in the year of acquisition.
I beli e the ordinance can be adopted in its present form since subsequent action by the
City Lmcil in approving the specific rules and regulations by resolution will be requi-red.
If the City wishes to make this benefit available to our residents, the ordinance
Form A 113 (Rev. 11/79)
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Page 2r It~n 18
Feting Gate 11 23 82
must bel adopted in order to' meet the December 31, 1982 dear~line.
IMP~C:T
None a this time. Some fiscal impact could be anticitaatec~ in the future in texxns of
ac~nini eying the program., but these costs could be offset by _f_ees that would be
levied en the program is ai~lemented.
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