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09-113 RESOLUTION NO. 09-113 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY'S INCORPORATED AREA IN THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS CONTRACTUAL ASSESSMENT PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENCY IMPROVEMENTS WHEREAS, the City of Menifee (the "City") is committed to the development of renewable energy sources and energy efficiency improvements, reduction of greenhouse gases, and protection of our environment; and WHEREAS, in Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (the "Act"), the Legislature has authorized cities and counties to assist property owners in financing the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently fixed to their property (the 'Improvements") through a contractual assessment program; and WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the jurisdictions that are members of the Western Riverside Council of Governments ("WRCOG") would promote the purposes cited above and assist the member agencies of WRCOG (each, a "Member Agency" or, together, "Member Agencies"), including the City in reducing its greenhouse gas emissions; and WHEREAS, the City wishes to provide innovative solutions and cost- effective methods for its property owners to achieve greater energy efficiency and independence, and in doing so cooperate with WRCOG in order to efficiently and economically assist property owners in financing such Improvements; and WHEREAS, WRCOG has authority to establish a contractual assessment program ("the Program") as permitted by the Act, the Joint Powers Agreement of the Western Riverside Council of Governments, originally made and entered into April 1, 1991, as amended to date, and the Implementation Agreement by and between WRCOG and the affected Member Agencies related to the Program to assist property owners in financing the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently affixed to real property; and WHEREAS, WRCOG is conducting an analysis to determine the feasibility of the Program, and to develop parameters pursuant to the Act for implementation and administration of the Program; and Resolution 09-113 WRCOG AB 811 WHEREAS, the City wishes to participate with WRCOG in the Program if WRCOG adopts the Program, under terms and conditions to be agreed to by the City and WRCOG; and WHEREAS, state law permits WRCOG to offer participation in the Program to property owners in incorporated areas of any Member Agency so long as the City Council or Board of such Member Agency approves the proposed Resolution of Intention (defined below) to establish the Program, consents to the inclusion in the Program of properties in the incorporated area within such Member Agency and consents to the Improvements to be done within such incorporated area and the assumption of jurisdiction thereover by WRCOG for the purposes described above; and WHEREAS, this City Council has reviewed WRCOG's proposed Resolution of Intention to establish the Program entitled "Resolution of the Western Riverside Council of Governments Declaring its Intention to Finance Distributed Generation Renewable Energy Sources and Energy Efficiency Improvements Through the Use of Contractual Assessments" ("Resolution of Intention") attached hereto as Exhibit A; NOW, THEREFORE, BE IT RESOLVED THAT: 1. This City Council finds and declares that property in the City's incorporated area will be benefited by the Improvements proposed in the Resolution of Intention. 2. This City Council hereby supports WRCOG's ongoing feasibility analysis and development of the Program. 3. Before the Program is implemented in the City, the City and WRCOG shall reach an agreement addressing any conditions the City wishes to impose on participating properties within the City. 4. This City Council hereby approves the proposed Resolution of Intention, substantially in the form attached hereto as Exhibit A. 5. This City Council hereby finds and determines that in the event it is necessary for the Executive Committee to make minor, nonsubstantive changes to the Resolution of Intention; such minor, nonsubstantive changes do not require the approval of this City Council. 6. This City Council consents to inclusion in the Program of all of the properties in the incorporated area within City and to the Improvements proposed in the Resolution of Intention within the City limits, upon the request and agreement of the property owner, in compliance with applicable laws, rules and regulations; and to the assumption of jurisdiction thereover by WRCOG for the purposes aforesaid. 2 — — Resolution 09-113 - WRCOG AB 811 7. The consent of this City Council constitutes assent to the assumption of jurisdiction by WRCOG for all purposes of the Program and authorizes WRCOG, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Improvements, including the levying, collecting and enforcement of the contractual assessments to finance the Improvements and the issuance and enforcement of bonds to represent such contractual assessments. 8. Staff is authorized and directed to coordinate with WRCOG staff to facilitate operation of the Program, and report back periodically to this City Council on the success of the Program. 9. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the WRCOG Executive Committee. PASSED, APPROVED AND ADOPTED, this 15`h Day of September, 2009 by the following vote: L AYES: 4F'yUY2.U{�1��1� 7�-/ NOES: ' 4 ' O ABSENT:: ��(�;�) ABSTAIN: )UkA-. Wallace W. Edgerton, M r ATTEST: Kathy Bennett City Clerk Approved as to form: Elizab th Martyn City Attorney 3 EXHIBIT A WRCOG RESOLUTION OF INTENTION RESOLUTION NUMBER RESOLUTION OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS DECLARING ITS INTENTON TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENCY IMPROVEMENTS THROUGH THE USE OF CONTRACTUAL ASSESSMENTS PURSUANT TO CHAPTER 29 OF PART 3 OF DIVISION 7 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND SETTING A PUBLIC HEARING THEREON WHEREAS, pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (the "Act"), the Joint Powers Agreement of the Western Riverside Council of Governments (WRCOG), originally made and entered into April 1, 1991, as further amended to date, and the Implementation Agreement by and between WRCOG and the affected Member Agencies related to the Program (defined below), the Western Riverside Council of Governments proposes to establish a contractual assessment program to assist property owners within the jurisdictional boundaries of WRCOG's member agencies (each, a "Member Agency' and, together, the "Member Agencies") with the cost of installing distributed generation renewable energy sources or making energy efficient improvements that are permanently fixed to their property("Program"); and WHEREAS, in the opinion of this Executive Committee, property in the Member Agencies would be benefited by including such properties in the Program, subject to the approval/consent of the City Council or Board of any Member Agency; and WHEREAS, WRCOG is willing to extend the program into the incorporated areas of any Member Agency provided that the City Council of such Member Agency and WRCOG reach agreement on any conditions on operation of the Program requested by such Member Agency, prior to the Program being offered in such jurisdiction; NOW, THEREFORE, BE IT RESOLVED by the Executive Committee of the Western Riverside Council of Governments as follows: Section 1: The Executive Committee hereby finds and declares all of the following: A. All of the above recitals are true and correct. B. Energy conservation efforts, including the promotion of energy efficiency improvements to residential, commercial, industrial, or other real property, can reduce energy consumption, energy bills, and maximize existing energy production and transmission facilities. C. Energy efficiency improvements include improvements that promote water efficiency. The California Energy Commission prepared a staff report in November 2005 regarding California's water-energy relationship. The report states: "As California continues to struggle with its many critical energy supply and infrastructure challenges, the state must identify and address the points of highest stress. At the top of this list is California's water-energy relationship; water-related energy use consumes 19 percent of the state's electricity, 30 percent of its natural gas, and 88 billion gallons of diesel fuel every year — and this demand is growing. . . . [A] major portion of the solution is closer coordination between the water and energy sectors. . . . The state can meet energy and A- 1 demand reduction goals . . . by simply recognizing the value of the energy saved for each unit of water saved." The direct relationship between water use and energy use means that improvements to residential, commercial, industrial, or other real property which promote water efficiency also result in energy efficiency. D. The upfront cost of making residential, commercial, industrial, or other real property more energy efficient prevents many property owners from making those improvements. To make those improvements more affordable and to promote the installation of those improvements, the Legislature has authorized an alternative procedure pursuant to the Act for authorizing contractual assessments to finance the cost of energy efficiency improvements. E. A public purpose will be served by a contractual assessment program whereby WRCOG is authorized to finance the installation of distributed generation renewable energy sources and energy efficiency improvements that are permanently fixed to residential commercial, industrial, or other real property. F. Property located in incorporated areas of Member Agencies within WRCOG will benefit from inclusion in the Program; and, subject to the approval/consent of the City Council of any Member Agency, including such property in the Program will serve the public purpose of promoting conservation efforts and addressing the issue of global climate change. Section 2. The Executive Committee hereby determines that it would be convenient, advantageous and in the public interest to designate the entire area of the Member Agencies as an area within which authorized WRCOG officials and property owners may enter into contractual assessments pursuant to the Act to finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to real property. Section 3. The Executive Committee hereby declares that while the proposed distributed generation renewable energy sources and energy efficiency improvements are of such a character that they directly and peculiarly affect property in the Member Agency jurisdictions within WRCOG and that the purposes sought to be accomplished by establishing a program to finance the installation of such improvements can best be accomplished by a single, comprehensive program rather then by separate programs administered by each Member Agency. Therefore, WRCOG proposes to make contractual assessment financing available to the owners of property in any Member Agency to finance the installation of distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to real property. Section 4. The Executive Director of WRCOG (the "Executive Director") shall prepare or direct the preparation of, as part of the report required in Section 8 of this Resolution, and update, as the Executive Director deems necessary, a list of the distributed generation renewable energy sources or energy efficiency improvements that may be financed through WRCOG's contractual assessment financing program. The types of distributed generation renewable energy sources or energy efficiency improvements eligible for financing through contractual assessments include, but are not limited to: high efficiency air conditioning and ventilation systems, high performance windows, high efficiency and tankless water heating equipment, photovoltaic and thermal solar energy systems, cool roof systems, geothermal exchange heat pumps, zoning control and energy management control systems, high efficiency irrigation pumps and controls, natural gas fuel cells, wind and geothermal energy systems, and wall, ceiling and roof insulation upgrades. Section 5. The area within which contractual assessments may be entered into pursuant to the Act is all land within the defined boundaries of the Member Agencies of WRCOG. A-2 Section 6. No contractual assessment will be levied on a parcel situated within a Member Agency City area and no assessment contract will be entered into with the owner(s) of any such parcel unless and until (1) the City Council or Board of such Member Agency has, prior to the adoption of this resolution of intention, adopted a resolution consenting to inclusion of parcels within such Member Agency in the contractual assessment program and authorizing WRCOG to levy assessments, to impose the contractual assessment liens and to finance the eligible improvement on such parcels; and (2) the City Council or Board of such Member Agency has entered into an agreement with WRCOG addressing any conditions such Member Agency wishes to impose on participating properties in its jurisdiction. Section 7. The proposed arrangements for financing the contractual assessment financing program are briefly described as follows: WRCOG may issue bonds, notes, receive lines of credit, and enter into other financing instruments or relationships pursuant to the Act, the principal and interest of which would be repaid by contractual assessments. Alternatively or in the interim, WRCOG, may advance its own funds to finance work, or enter into agreements with other public entities, including but not limited to the cities within WRCOG, to advance their funds to WRCOG to finance work. Such advances shall be repaid through contractual assessments and WRCOG may sell bonds or other forms of indebtedness to reimburse such advances. The proposed financing arrangements may include the lease-purchase of public facilities pursuant to a lease or other contractual arrangement with a public financing authority or non profit entity or other financing elements as may be determined necessary or useful to the financing of the contractual assessment program. In the event improvement bonds will be issued pursuant to Streets and Highways Code Section 5898.28 to represent assessments, all of the following will apply to the extent not in conflict with the Act: (a) Provision is hereby made for the issuance of improvement bonds, in one or more series; (b) Notice is hereby given that serial bonds or term bonds or both to represent unpaid assessments, and to bear interest at the rate of not to exceed 12 percent per year, or such other amount authorized by law, payable semiannually, shall be issued hereunder in one or more series in the manner provided by the Division 10 (to the extent not in conflict with the Act), and the last installment of bonds shall mature a maximum of 39 years from the second day of September next succeeding 12 months from their date. (c) WRCOG hereby determines and declares that WRCOG shall not obligate itself to advance available funds from WRCOG treasury to cure any deficiency which may occur in the bond redemption fund. (d) WRCOG hereby determines that the principal amount of bonds maturing or becoming subject to mandatory prior redemption each year shall be other than an amount equal to an even annual proportion of the aggregate principal amount of the bonds, and the amount of principal maturing or becoming subject to mandatory prior redemption in each year plus the amount of interest payable in that year shall be an aggregate amount that is substantially equal each year, except for the moneys falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. A- 3 (e) With respect to the procedures for collection of assessments and the advance retirement of bonds, WRCOG proposes to proceed under the provisions of Part 11.1 of Division 10 (commencing with Section 8760 of the Streets and Highways Code). Section 8. The Executive Committee hereby directs the Executive Director to prepare, or direct the preparation of, and file with the Board of Supervisors a report pursuant to Section 5898.22 of the California Streets and Highways Code at or before the time of the public hearing described in Section 8 hereof(the"Report"), The Report shall contain all of the following: (a) A map showing the boundaries of the territory within which contractual assessments are proposed to be offered. (b) A draft contract specifying the terms and conditions that would be agreed to by a property owner within the contractual assessment area and WRCOG. (c) A statement of WRCOG policies concerning contractual assessments including all of the following: (i) Identification of types of facilities, distributed generation renewable energy sources, or energy efficiency improvements that may be financed through the use of contractual assessments; (ii) Identification of a WRCOG official authorized to enter into contractual assessments on behalf of WRCOG, (iii) A maximum aggregate dollar amount of contractual assessments; and (iv) A method for setting requests from property owners for financing through contractual assessments in priority order in the event that requests appear likely to exceed the authorization amount. (d) A plan for raising a capital amount required to pay for work performed pursuant to contractual assessments. The plan may include amounts to be advanced by WRCOG through funds available to it from any source. The plan may include the sale of a bond or bonds or other financing relationship pursuant to Streets and Highways Code Section 5898.28. The plan shall include a statement of or method for determining the interest rate and time period during which contracting property owners would pay any assessment. The plan shall provide for any reserve fund or funds. The plan shall provide for the apportionment of all or any portion of the costs incidental to financing, administration, and collection of the contractual assessment program among the consenting property owners and WRCOG. Section 9. The Executive Committee hereby calls a public hearing to be held on 2009 at a.m., or as soon thereafter as feasible, in the First Floor Board Chambers, County of Riverside Administrative Center, 4080 Lemon Street, Riverside, California, on the proposed Report and the Program. At the public hearing all interested persons may appear and hear and be heard and object to or inquire about the proposed Program or any of its particulars. Section 10. The Secretary of the Executive Committee is hereby directed to provide notice of the public hearing by publishing this Resolution once a week for two weeks, pursuant to A-4 Section 6066 of the California Government Code, in the [ 1 and the first publication shall not occur later than 20 days before the date of such hearing. Section 11. The contractual assessments levied pursuant to the Act, and the interest and any penalties thereon, shall constitute a lien against the lots and parcels of land on which they are made, until they are paid. The contractual assessments shall be collected in the same manner and at the same time as the general taxes of WRCOG on real property are payable and shall be subject to the same penalties, remedies and lien priorities in the event of delinquency and default. As a cumulative remedy, if any contractual assessment or installment thereof, or of any interest thereon, together with any penalties, costs, fees and other accrued charges are not paid when due, the Executive Committee may order that the same be collected by an action brought in superior court to foreclose the lien thereof as provided in Division 10 of the California Streets and Highways Code. Section 12. The Executive Committee hereby directs the Executive Director to determine and discuss in the Report what additional fees, if any, will be charged, annually, by the Auditor Controller's office for incorporating the proposed contractual assessments on the tax roll. PASSED AND ADOPTED at a Meeting of the Executive Committee of the Western Riverside Council of Governments held this day of , 2009. AYES: Robin Lowe, Chair WRCOG Executive Committee NOES: ABSENT: Rick Bishop, Secretary WRCOG Executive Committee ABSTAIN: A-5 IMPLEMENTATION AGREEMENT BETWEEN THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS AND THE CITY OF MENIFEE TO IMPLEMENT AB 811 This Implementation Agreement ("Agreement') is entered into as of September 15, 2009 between the WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS ("WRCOG"), a joint powers authority formed under Government Code sections 6500 et seq., and the City of Menifee ("Member Agency"), a public agency formed under the laws of the State of California. WRCOG and the Member Agency are sometimes collectively referred to in this Agreement as the "Parties" or individually as a"Party." RECITALS WHEREAS, various cities within Riverside County and the County of Riverside entered into a Joint Powers Agreement on April 1, 1991, as amended from time to time, to create WRCOG ("JPA"); and WHEREAS, Member Agency is a signatory to the JPA; and WHEREAS, Article VIII of JPA permits any WRCOG member agency, when authorized by the Executive Committee, to execute an Implementation Agreement for the purpose of authorizing WRCOG to implement, manage and administer area-wide and regional programs in the interest of the local public welfare; and WHEREAS, the JPA permits WRCOG, when authorized by an Implementation Agreement, to make and enter into such contracts, incur such debts and obligations, assess contributions from the members, and perform such other acts as are necessary to the accomplishment of the purposes of such agreement; and WHEREAS, on June 30, 2008, the State Legislature enacted Assembly Bill 811, codified as Streets and Highways Code sections 5898.10 et seq. ("AB 811") to permit cities and counties to assist property owners who desire to undertake energy-efficient improvements, such as high-efficiency air conditioners, or install renewable energy projects, such as solar panels; and WHEREAS, WRCOG member agencies have the common power to implement and administer contractual assessment programs pursuant to AB 811 (the "Program") to finance installation of distributed generation renewable energy sources or energy efficiency improvements within their jurisdictions; and WHEREAS, WRCOG and Member Agency desire to enter into this Agreement in order to authorize WRCOG to implement and administer the Program on behalf of Member Agency; and WHEREAS, the Executive Committee has authorized Member Agency to enter into this Agreement. NOW, THEREFORE,the Parties hereby understand and agree as follows: RVPUB\ZKATOR\762610.1 1 WRCOG Implementation Agreement AB 811 AGREEMENT Section 1: Establishing the Program WRCOG will undertake proceedings pursuant to AB 811 to establish the Program to make contractual assessment financing available to eligible property owners within the jurisdictional boundary of Member Agency. Section 2: Establishing Eligible Improvements WRCOG shall identify the kinds of public works, distributed generation renewable energy sources, or energy efficiency improvements that may be financed ("Eligible Improvements") under the Program. Section 3: Boundary of Program WRCOG, in coordination with Member Agency, shall describe the boundaries of the area within which contractual assessments under the Program may be entered into, which may include the entire jurisdictional area of Member Agency or a lesser portion thereof. Section 4: Financing the Installation of Eligible Improvements WRCOG shall develop and implement a plan for the financing of the purchase and installation of the Eligible Improvements under the Program. Section 5: Ongoing Administration WRCOG shall be responsible for the ongoing administration of the Program, including but not limited to producing education plans to raise public awareness of the Program, soliciting, reviewing and approving applications from residential and commercial property owners participating in the Program, establishing contracts for residential and commercial property owners participating in Program, establishing and collecting assessments due under the Program, and providing reports as required by Streets & Highways Code sections 5898.20(b) and 5898.22. The program will be administered in accordance with WRCOG JPA. Section 6: Phased Implementation The Parties recognize and agree that implementation of the Program as a whole can and may be phased as other WRCOG member agencies execute similar Implementation Agreements. The Member Agency entering into this Agreement will obtain the benefits of and incur the obligations imposed by this Agreement in its jurisdictional area, irrespective of whether other WRCOG member agencies enter into similar Implementation Agreements. Section 7: Term The term of this Agreement shall be for twenty (20) years unless modified or extended pursuant to this Agreement. 2 WRCOG Implementation Agreement AB 811 Section 8: Termination Upon ninety (90) days written notice, either Party may terminate this Agreement. Termination shall not relieve the Party of its proportionate share of any debts or other liabilities incurred under this Agreement prior to the effective date of the Party's notice of termination. Section 9: Environmental Review WRCOG shall be the lead agency under the California Environmental Quality Act for any environmental review that may required in implementing or administering the Program under this Agreement. Section 10: Cooperative Effort Member Agency shall cooperate with WRCOG by providing information and other assistance in order for WRCOG to meet its obligations hereunder. Member Agency recognizes that one of its responsibilities related to the Program will include any permitting or inspection requirements as established by the Member Agency. Section 11: Miscellaneous Provisions 11.1 Notice. Any and all communications and/or notices in connection with this Agreement shall be either hand-delivered or sent by United States first class mail, postage prepaid, and addressed as follows: WRCOG: Western Riverside Council of Governments 4080 Lemon Street, 3rd Floor. MS1032 Riverside, CA 92501-3609 Att: Executive Director MEMBER AGENCY: City of Menifee 29714 Haun Road Menifee, CA 92586 11.2 Entire Agreement. This Agreement, together with the JPA and WRCOG By- laws, constitutes the entire agreement among the Parties. This Agreement supersedes any and all other agreements, either oral or in writing, among the Parties with respect to the subject matter hereof and contains all of the covenants and agreements among them with respect to said matters, and each Party acknowledges that no representation, inducement, promise of agreement, oral or otherwise, has been made by the other Party or anyone acting on behalf of the other Party that is not embodied herein. 11.3 Successors and Assigns. This Agreement and each of its covenants and conditions shall be binding on and shall inure to the benefit of the Parties and their respective 3 WRCOG Implementation Agreement AB 811 successors and assigns. A Party may only assign or transfer its rights and obligations under this Agreement with prior written approval of the other Party, which approval shall not be unreasonably withheld. 11.4 Attorney's Fees. If any action at law or equity, including any action for declaratory relief is brought to enforce or interpret the provisions of this Agreement, each Party to the litigation shall bear its own attorney's fees and costs. 11.5 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, as applicable. 11.6 No Third Party Beneficiaries. This Agreement shall not create any right or interest in the public, or any member thereof, as a third party beneficiary hereof, nor shall it authorize anyone not a Party to this Agreement to maintain a suit for personal injuries or property damages under the provisions of this Agreement. The duties, obligations, and responsibilities of the Parties to this Agreement with respect to third party beneficiaries shall remain as imposed under existing state and federal law. 11.7 Severability. In the event one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this Agreement and the remaining parts of this Agreement shall remain in full force and effect as though such invalid, illegal, or unenforceable portion had never been a part of this Agreement. 11.8 Headings. The paragraph headings used in this Agreement are for the convenience of the Parties and are not intended to be used as an aid to interpretation. 11.9 Amendment. This Agreement may be modified or amended by the Parties at any time. Such modifications or amendments must be mutually agreed upon and executed in writing by both Parties. Verbal modifications or amendments to this Agreement shall be of no effect. IN WITNESS WHEREOF, THE PARTIES HERETO have executed this Agreement to be in effect as of the date last signed below. By: Date: Executive Committee Chair Western Riverside Council of Governments By: 0g&� PQ ate: 9 Mayor Wallace E gerton City of Menifee By: & � Date: Legal Counsel 4 Wallace W.Edgerton Mayor September 15, 2009 Darcy Kuenzi Mayor Pro Tem The Honorable Robin Lowe John V.Denver Chair, Executive Committee Councilmember Western Riverside Council of Governments 4080 Lemon Street, 3`a Floor Scott A.Mann Riverside, CA 92501 Councilmember Subject: Letter of Support for the Western Riverside Council of Fred Twyman Governments Energy Efficiency and Water Conservation Program Councilmember Dear Chairwoman Lowe: The City of Menifee supports the Western Riverside Council of Governments (WRCOG) efforts to implement a regional Energy Efficiency and Water Conservation Program (Program) on behalf of participating member jurisdictions, and supports your efforts in securing a $300 million partnership loan between the Federal Government and WRCOG for Program implementation. California legislation allows for cities and counties to provide loans to residential and commercial property owners for the purchase and installation of energy efficient improvements to their properties. Improvements would include, but are not limited to, solar panels, heating and air conditioning systems, windows, pool filtration systems and other energy efficient and water conserving improvements that are permanently affixed to properties. Energy efficient investments, over time, tend to pay for themselves due to reduced utility bills. Energy savings also delays the need for costly new energy generation and transmission infrastructure to be funded and constructed in a state with limited resources. Unfortunately, many homeowners and businesses do not have the resources to pay the up-front costs for these types of improvements. WRCOG's Program will provide low-interest loans for the purchase and installation of improvements, with repayment being made through annual property tax installments over a specified number of years. This approach removes the up-front initial costs from becoming a detriment to energy efficient retrofitting, and will allow for thousands of homes and businesses in one of the fastest growing areas in the nation to reduce energy use, improve home values, and create jobs. Among the reasons for the City of Menifee support for this Program, and loan request, are the following: 1) Creates iobs: A$300 million loan would create approximately 3,200 jobs in a region that is experiencing unemployment of nearly 15% (among the highest levels of unemployment in the State) and retain hundreds of jobs in the contracting and construction-related fields. 29714 Haun Road Menifee,CA 92586 Phone 951.672.6777 Fax 951.679.3843 www.cityofrnen1fee.us Letter of Support WRCOG AB 811 2) Maximizes existing energy infrastructure investments: The best way to avoid or delay costly investments in new energy development and transmission infrastructure is to reduce current energy use. 3) Regional approach could fund improvements to13,500 properties: Condensing administrative responsibilities under one agency (WRCOG) will also minimize administrative costs compared to having jurisdictions allocate limited staff resources for individual, smaller-sized programs. 4) Helps residents make smart decisions about energy efficiency: The Program would provide no-money-down and fixed-rate financing over a specified number of years to residential and commercial properties for installing energy-efficient improvements, removing the barrier that many property owners face when deciding on whether to pursue retrofits to their homes or businesses; 5) Positions the region a leader in addressing climate change mandates: WRCOG's regional approach could serve as a template for addressing greenhouse gas emission requirements of AB 32: The California Global Warming Solutions Act of 2006. 6) Program is voluntary: The Program will apply only to property owners that desire to participate. The City of Menifee encourages you to continue California's efforts to use energy and water efficiently on a permanent basis, lead efforts that would allow for low-interest loans (to be fully repaid with interest to the federal government) to residential and commercial property owners to implement energy efficient and water conservation improvements. Sincerely, Wallace W. Edgerton Mayor 2