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STAFF REPORT
Public Works Services Department
DATE: April 1, 2014
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
Jason Kruckeberg, Assistant City Manager /Development Services Director
By: Carmen Masud, Management Analyst
SUBJECT: RESOLUTION NO. 7015 CONSENTING TO THE INCLUSION OF
PROPERTIES WITHIN THE CITY'S JURISDICTION IN THE
CALIFORNIA HOME ENERGY RENOVATION OPPORTUNITY
PROGRAM ( "HERO ") TO FINANCE DISTRIBUTED GENERATION
RENEWABLE ENERGY SOURCES, ENERGY AND WATER
EFFICEINCY IMPROVEMENTS, AND APPROVING THE AMENDMENT
TO THE JOINT POWERS AGREEMENT
Recommendation: Adopt
SUMMARY
On July 21, 2008, Governor Schwarzenegger signed Assembly Bill (AB) 811 authorizing
local governments to provide financing to qualified property owners for the installation of
energy and water efficiency improvements that are permanently fixed to private
property. In response to this, the Western Riverside County Council of Governments
(WRCOG) developed the California Home Energy Renovation Opportunity (HERO)
Program, a Property Assessed Clean Energy (PACE) program, and has amended their
joint powers agreement in order to partner with local governments outside their
jurisdiction to include the provisions of their program throughout California.
It is recommended that the City Council adopt Resolution No. 7015, consenting to the
inclusion of properties within the City's jurisdiction in the California Home Energy
Renovation Opportunity Program ( "HERO ") to finance distributed generation renewable
energy sources, energy and water efficiency improvements, and approving the
amendment to the Joint Powers Agreement.
BACKGROUND
On July 20, 2010, the City Council adopted Resolution No. 6730 consenting to inclusion
of the properties within the incorporated area of the City of Arcadia in the Los Angeles
County Energy Program ( LACEP). The LACEP is a PACE voluntary contractual
Staff Report regarding Resolution No. 7015
April 1, 2014
Page 2 of 4
assessment program that finances energy efficiency, water efficiency, and renewable
energy products. Unfortunately, there were conflicts with federal mortgage financing
regulations of the program, which made LACEP unavailable for residential property
owners.
In 2012, the WRCOG developed and launched the HERO Program as a turnkey
program to save other California jurisdictions time and resources in developing a
standalone PACE program. The HERO Program will allow residential and commercial
property owners in the City of Arcadia to finance the installation of energy and water
efficiency improvements and distributed generation renewable energy sources that are
permanently fixed to private property (e.g., solar panels). In order for City of Arcadia
property owners to participate in the HERO Program, the City Council must adopt
Resolution 7015 consenting to the inclusion of properties within the incorporated area of
the City of Arcadia in the HERO Program and approving the amendment to the
WRCOG Joint Powers Agreement to add the City of Arcadia as an associate member.
Local cities that are currently going through the process of participating in the HERO
program include Monrovia, Rosemead, San Gabriel, El Monte, South Pasadena, and
Irwindale.
DISCUSSION
The California HERO Program has been successful in Western Riverside County since
its launch in late 2012. The Program has funded over $25 million in projects. Because
of the success and transferability of the Program, the WRCOG amended their joint
powers agreement related to the HERO Program to include the City of Arcadia as an
associate member so that the HERO Program can be offered to residential and
commercial property owners in Arcadia. Participating in the HERO Program will allow
residential and commercial property owners in Arcadia to finance energy and water
efficiency improvements and distributed generation renewable energy sources on their
property. Examples of energy and water efficiency products /projects eligible for
financing include:
• Solar Panels
• Solar Water Heating
• Solar Pool Heating
• Electric Vehicle Charging Stations
• Whole House Fans
• Cool Roofs
• Indoor Lighting Fixtures
• Weather -Based Irrigation Control Systems
• Drip Irrigation
• Rainwater Catchment Systems
• Artificial Turf
Staff Report regarding Resolution No. 7015
April 1, 2014
Page 3 of 4
All installations approved through the HERO program are subject to the City's building
permit process and, when applicable, design review. Participation in the HERO
Program is 100% voluntary. Property owners in Arcadia who wish to participate are
eligible to receive financing by the issuance of bonds from the WRCOG, which are
secured by a contractual assessment levied on the owner's property. The HERO
Program eliminates the need for property owners to pay out of pocket, up -front costs for
energy and water efficiency improvements, and establishes a loan obligation that is
attached to the property and not the individual borrower. Most voluntary contractual
assessments remain with the property upon transfer of ownership. In rare
circumstances, a lender may require the contractual assessment to be paid in full when
the property is sold. Energy and water efficiency retrofit improvements to existing
properties in Arcadia will allow property owners to reduce energy and water use and
improve the comfort and safety of their home or business.
The City of Arcadia's participation in the HERO Program comes at no cost and the City
is not responsible to repay the bonds issued by WRCOG or to pay the assessments
levied on the participating properties. THE WRCOG will handle all assessment
administration, bond issuance, and bond administration functions. Little, if any, City
staff time is needed to participate in the California HERO Program. Property owners will
have access to the HERO Program through a comprehensive website that includes an
online application process.
Basic marketing and outreach materials are provided by the WRCOG at no charge to
the City for promotion of the program within the community. Outreach material will be
distributed at community events and will be provided to residents who are making
improvements to their homes.
The attached resolution authorizes the WRCOG to accept applications from owners of
properties within the City of Arcadia for financing of energy efficiency, water efficiency,
and renewable energy improvements. The amendment to the Joint Powers Agreement
allows Arcadia residents to participate in the HERO Program (Exhibit A). It also
authorizes the WRCOG to conduct assessment proceedings and levy assessments
against the properties of participating owners within City boundaries. The City of
Arcadia can withdraw from the HERO Program at any time by passing a resolution
rescinding the authorization.
FISCAL IMPACT
There is no fiscal impact to the City of Arcadia from adoption of the attached resolution
and participation in the program. Certain improvements made by property owners who
choose to participate in the HERO program may result in increased property valuation
assessments; however, the resulting increase in City property tax revenue is expected
to be extremely minor.
Staff Report regarding Resolution No. 7015
April 1, 2014
Page 4 of 4
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 7015 consenting to the
inclusion of properties within the City's jurisdiction in the California Home Energy
Renovation Opportunity Program ( "HERO ") to finance distributed generation renewable
energy sources, energy and water efficiency improvements, and approving the
amendment to the Joint Powers Agreement.
Approved:
Dominic Lazza
City Manager
Attachment: Resolution No. 7015
RESOLUTION NO. 7015
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, CONSENTING TO THE INCLUSION OF
PROPERTIES WITHIN THE CITY'S JURISDICTION IN THE
CALIFORNIA HOME ENERGY RENOVATION OPPORTUNITY
PROGRAM ( "HERO ") TO FINANCE DISTRIBUTED
GENERATION RENEWABLE ENERGY SOURCES, ENERGY AND
WATER EFFICIENCY IMPROVEMENTS, AND APPROVING THE
AMENDMENT TO THE JOINT POWERS AGREEMENT
WHEREAS, the Western Riverside Council of Governments ( "Authority ") is a joint
exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of
the Government Code of the State of California (Section 6500 and following) (the "Act ")
and the Joint Power Agreement entered into on April 1, 1991, as amended from time to
time (the "Authority JPA "); and
WHEREAS, the Authority intends to establish the California HERO Program to
provide for the financing of renewable energy distributed generation sources, energy
and water efficiency improvements, and electric vehicle charging infrastructure (the
"Improvements ") pursuant to Chapter 29 of the Improvement Bond Act of 1911, being
Division 7 of the California Streets and Highways Code ( "Chapter 29 ") within counties
and cities throughout the State of California that elect to participate in such program;
and
WHEREAS, the City of Arcadia (the "City) is committed to development of
renewable energy sources and energy efficiency improvements, reduction of
greenhouse gases, protection of our environment, and reversal of climate change; and
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WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to
assist property owners in financing the cost of installing Improvements through a
voluntary contractual assessment program; and
WHEREAS, installation of such improvements by property owners within the
jurisdictional boundaries of the counties and cities that are participating in the California
HERO Program would promote the purposes cited above, and
WHEREAS, the City wishes to provide innovative solutions to its property owners
to achieve energy and water efficiency and independence, and in doing so cooperate
with Authority in order to efficiently and economically assist property owners in the City
to finance such improvements; and
WHEREAS, Authority has authority to establish the California HERO Program,
which will be such a voluntary contractual assessment program, as permitted by the
Act, the Authority JPA, originally made and entered into April 1, 1991, as amended to
date, and the Amendment to Joint Powers Agreement Adding the City of Arcadia as an
Associate Member of the Western Riverside Council of Governments to Permit the
Provision of Property Assessed Clean Energy (PACE) Program Services within the City
(the "JPA Amendment "), by and between Authority and the City, a copy of which is
attached as Exhibit "A" hereto, to assist property owners within the incorporated area of
the City in financing the cost of installing Improvements; and
WHEREAS, the City will not be responsible for the conduct of any assessment
proceedings; the levy and collection of assessments or any required remedial action in
the case of delinquencies in the payment of any assessments or the issuance, sale or
administration of any bonds issued in connection with the California HERO Program.
i►
THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES
HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
SECTION 1. The City Council finds and declares that properties in the
City's incorporated area will be benefited by the availability of the California
HERO Program to finance the installation of Improvements.
SECTION 2. The City Council consents to inclusion in the California HERO
Program of all of the properties in the incorporated area within the City and to the
Improvements, upon the request by and voluntary agreement of owners of such
properties, in compliance with the laws, rules, and regulations applicable to such
program; and to the assumption of jurisdiction thereover by Authority for the purposes
thereof.
SECTION 3. The consent of the City Council constitutes assent to the
assumption of jurisdiction by Authority for all purposes of the California HERO Program
and authorizes Authority, 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 and
be secured by such contractual assessments.
SECTION 4. The City Council hereby approves the JPA Amendment, attached
hereto as Exhibit "A" and incorporated by reference herein, and authorizes the
execution thereof by the City Manager.
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SECTION 5. City staff is authorized and directed to coordinate with Authority
staff to facilitate operation of the California HERO Program within the City, and report
back periodically to this City Council on the success of such program.
SECTION 6. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved, and adopted this day of , 2014.
ATTEST:
City Clerk
APPROVED AS TO FORM:
fSt hen P. D �tsch
City Attorney
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Mayor of the City of Arcadia
EXHIBIT "A"
AMENDMENT TO THE JOINT POWERS AGREEMENT
ADDING CITY OF ARCADIA AS AN ASSOCIATE MEMBER
OF THE WESTERN RIVERSIDE COUNCIL OF
GOVERNMENTS TO PERMIT THE PROVISION OF
PROPERTY ASSESSED CLEAN ENERGY (PACE)
PROGRAM SERVICES WITH SUCH CITY
This Amendment to the Joint Powers Agreement ( "JPA Amendment ") is made
and entered into on the day of , 2014, by City of Arcadia
( "City ") and the Western Riverside Council of Governments ( "Authority ") (collectively the
"Parties ").
RECITALS
WHEREAS, Authority is a joint exercise of powers authority established pursuant
to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California
(Section 6500 and following) (the "Joint Exercise of Powers Act ") and the Joint Power
Agreement entered into on April 1, 1991, as amended from time to time (the "Authority
JPA "); and
WHEREAS, as of October 1, 2012, Authority had 18 member entities (the
"Regular Members "); and
WHEREAS, Chapter 29 of the Improvement Act of 1911, being Division 7 of the
California Streets and Highways Code ( "Chapter 29 ") authorizes cities, counties, and
cities and counties to establish voluntary contractual assessment programs, commonly
referred to as a Property Assessed Clean Energy ("PACE") program, to fund certain
renewable energy sources, energy and water efficiency improvements, and electric
vehicle charging infrastructure (the "Improvements ") that are permanently fixed to
residential, commercial, industrial, agricultural or other real property; and
WHEREAS, Authority intends to establish a PACE program to be known as the
"California HERO Program" pursuant to Chapter 29 as now enacted or as such
legislation may be amended hereafter, which will authorize the implementation of a
PACE financing program for cities and county throughout the state; and
WHEREAS, City desires to allow owners of property within its jurisdiction to
participate in the California HERO Program and to allow Authority to conduct
proceedings under Chapter 29 to finance Improvements to be installed on such
properties; and
WHEREAS, this JPA Amendment will permit City to become an Associate
Member of Authority and to participate in California HERO Program for the purpose of
facilitating the implementation of such program within the jurisdiction of City; and
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WHEREAS, pursuant to the Joint Exercise of Powers Act, the Parties are
approving this JPA Agreement to allow for the provision of PACE services, including the
operation of a PACE financing program, within the incorporated territory of City; and
WHEREAS, the JPA Amendment sets forth the rights, obligations and duties of
City and Authority with respect to the implementation of the California HERO Program
within the incorporated territory of City.
MUTUAL UNDERSTANDINGS
NOW, THEREFORE, for and in consideration of the mutual covenants and
conditions hereinafter stated, the Parties hereto agree as follows:
A. JPA Amendment.
1. The Authority JPA. City agrees to the terms and conditions of the
Authority JPA, attached.
2. Associate Membership. By adoption of this JPA Amendment, City shall
become an Associate Member of Authority on the terms and conditions set forth herein
and the Authority JPA and consistent with the requirements of the Joint Exercise of
Powers Act. The rights and obligations of City as an Associate Member are limited
solely to those terms and conditions expressly set forth in this JPA Amendment for the
purposes of implementing the California HERO Program within the incorporated territory
of City. Except as expressly provided for by the this JPA Amendment, City shall not
have any rights otherwise granted to Authority's Regular Members by the Authority JPA,
including but not limited to the right to vote on matters before the Executive Committee
or the General Assembly, the right to amend or vote on amendments to the Authority
JPA, and the right to sit on committees or boards established under the Authority JPA or
by action of the Executive Committee or the General Assembly, including, without
limitation, the General Assembly and the Executive Committee. City shall not be
considered a member for purposes of Section 9.1 of the Authority JPA.
3. Rights of Authority. This JPA Amendment shall not be interpreted as
limiting or restricting the rights of Authority under the Authority JPA. Nothing in this JPA
Amendment is intended to alter or modify Authority Transportation Uniform Mitigation
Fee (TUMF) Program, the PACE Program administered by Authority within the
jurisdictions of its Regular Members, or any other programs administered now or in the
future by Authority, all as currently structured or subsequently amended.
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B. Implementation of California HERO Program within City Jurisdiction.
1. Boundaries of the California HERO Program. within City Jurisdiction. City
shall determine and notify Authority of the boundaries of the incorporated territory within
City's jurisdiction within which contractual assessments may be entered into under the
California HERO Program (the "Program Boundaries "), which boundaries may include
the entire incorporated territory of City or a lesser portion thereof.
2. Determination of Eligible Improvements. Authority shall determine the
types of distributed generation renewable energy sources, energy efficiency or water
conservation improvements, electric vehicle charging infrastructure or such other
improvements as may be authorized pursuant to Chapter 29 (the "Eligible
Improvements ") that will be eligible to be financed under the California HERO Program.
3. Establishment of California HERO Program. Authority will undertake such
proceedings pursuant to Chapter 29 as shall be legally necessary to enable Authority to
make contractual financing of Eligible Improvements available to eligible property
owners within the Program Boundaries.
4. Financing the Installation of Eligible Improvements. Authority shall
develop and implement a plan for the financing of the purchase and installation of the
Eligible Improvements under the California HERO Program.
5. Ongoing_ Administration. Authority shall be responsible for the ongoing
administration of the California HERO Program, including but not limited to producing
education plans to raise public awareness of the California HERO Program, soliciting,
reviewing and approving applications from residential and commercial property owners
participating in the California HERO Program, establishing contracts for residential,
commercial and other property owners participating in such program, establishing and
collecting assessments due under the California HERO Program, adopting and
implementing any rules or regulations for the California HERO Program, and providing
reports as required by Chapter 29.
City will not be responsible for the conduct of any proceedings required to be
taken under Chapter 29; the levy or collection of assessments or any required remedial
action in the case of delinquencies in such assessment payments; or the issuance, sale
or administration of any bonds issued in connection with the California HERO Program.
6. Phased Implementation. The Parties recognize and agree that
implementation of the California HERO Program as a whole can and may be phased as
additional other cities and counties execute similar agreements. City entering into this
JPA Amendment will obtain the benefits of and incur the obligations imposed by this
JPA Amendment in its jurisdictional area, irrespective of whether cities or counties enter
into similar agreements.
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C. Miscellaneous Provisions.
1. Withdrawal. City or Authority may withdraw from this JPA Amendment
upon six (6) months written notice to the other party; provided, however, there is no
outstanding indebtedness of Authority within City. The provisions of Section 6.2 of the
Authority JPA shall not apply to City under this JPA Amendment.
2, Mutual and Liability. Authority and City shall mutually
defend, indemnify and hold the other party and its directors, officials, officers,
employees and agents free and harmless from any and all claims, demands, causes of
action, costs, expenses, liabilities, losses, damages or injuries of any kind, in law or
equity, to property or persons, including wrongful death, to the extent arising out of the
willful misconduct or negligent acts, errors or omissions of the indemnifying party or its
directors, officials, officers, employees and agents in connection with the California
HERO Program administered under this JPA Amendment, including without limitation
the payment of expert witness fees and attorneys fees and other related costs and
expenses, but excluding payment of consequential damages. Without limiting the
foregoing, Section 5.2 of the Authority JPA shall not apply to this JPA Amendment. In
no event shall any of Authority's Regular Members or their officials, officers or
employees be held directly liable for any damages or liability resulting out of this JPA
Amendment.
3. Environmental Review. Authority shall be the lead agency under the
California Environmental Quality Act for any environmental review that may required in
implementing or administering the California HERO Program under this JPA
Amendment.
4. Cooperative Effort. City shall cooperate with Authority by providing
information and other assistance in order for Authority to meet its obligations hereunder.
City recognizes that one of its responsibilities related to the California HERO Program
will include any permitting or inspection requirements as established by City.
5. Notice. Any and all communications and /or notices in connection with this
JPA Amendment shall be either hand - delivered or sent by United States first class mail,
postage prepaid, and addressed as follows:
,
Authority:
Western Riverside Council of Governments
4080 Lemon Street, 3rd Floor. MS1032
Riverside, CA 92501 -3609
Att: Executive Director
City:
City of Arcadia
Public Works Services Department
P. O. Box 60021
Arcadia, CA 91066 -6021
Attn: Public Works Services Director
6. Entire Agreement. This JPA Amendment, together with the Authority JPA,
constitutes the entire agreement among the Parties pertaining to the subject matter
hereof. This JPA Amendment 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.
7. Successors and Assigns. This JPA Amendment and each of its
covenants and conditions shall be binding on and shall inure to the benefit of the Parties
and their respective successors and assigns. A Party may only assign or transfer its
rights and obligations under this JPA Amendment with prior written approval of the other
Party, which approval shall not be unreasonably withheld.
8. 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.
9. Governing Law. This JPA Amendment shall be governed by and
construed in accordance with the laws of the State of California, as applicable.
10. No Third Party Beneficiaries. This JPA Amendment 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 JPA Amendment to maintain a suit for
personal injuries or property damages under the provisions of this JPA Amendment.
The duties, obligations, and responsibilities of the Parties to this JPA Amendment with
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respect to third party beneficiaries shall remain as imposed under existing state and
federal law.
11. Severability. In the event one or more of the provisions contained in this
JPA Amendment is held invalid, illegal or unenforceable by any court of competent
jurisdiction, such portion shall be deemed severed from this JPA Amendment and the
remaining parts of this JPA Amendment shall remain in full force and effect as though
such invalid, illegal, or unenforceable portion had never been a part of this JPA
Amendment.
12. Headings. The paragraph headings used in this JPA Amendment are for
the convenience of the Parties and are not intended to be used as an aid to
interpretation.
13. Amendment. This JPA Amendment 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
JPA Amendment shall be of no effect.
14. Effective Date. This JPA Amendment shall become effective upon the
execution thereof by the Parties hereto.
IN WITNESS WHEREOF, the Parties hereto have caused this JPA Amendment
to be executed and attested by their officers thereunto duly authorized as of the date
first above written.
CITY OF ARCADIA
By: By:
City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
Sfep en P. Deit
City Attorney
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WESTERN RIVERSIDE COG
Executive Director
Updated through July, 2012
JOINT POWERS AGREEMENT OF
THE WESTERN RIVERSIDE
COUNCIL OF GOVERNMENTS
This Agreement is made and entered into on the 1st day of April, 1991, pursuant to
Government Code Section 6500 et. seq. and other pertinent provisions of law, by and
between six or more of the cities located within Western Riverside County and the County
of Riverside.
RECITALS
A. Each member and party to this Agreement is a governmental entity
established by law with full powers of government in legislative, administrative, financial,
and other related fields.
B. The purpose of the formation is to provide an agency to conduct studies and
projects designed to improve and coordinate the common governmental responsibilities
and services on an area -wide and regional basis through the establishment of an
association of governments. The Council will explore areas of inter - governmental
cooperation and coordination of government programs and provide recommendations and
solutions to problems of common and general concern,
C. When authorized pursuant to an Implementation Agreement, the Council shall
manage and administer thereunder.
NOW, THEREFORE, in consideration of the mutual promises and covenants herein
contained, the parties hereto agree as follows:
20323.00016 \7631699.1
PURPOSE AND POWERS
1.1 Agency Created.
There is hereby created a public entity to be known as the "Western Riverside
Council of Governments" ( "WRCOG "). WRCOG is formed by this Agreement pursuant to
the provision of Government Code Section 6500 et. seq. and other pertinent provision of
law. WRCOG shall be a public entity separate from the parties hereto.
1.2 Powers.
1.2.1. WRCOG established hereunder shall perform all necessary functions
to fulfill the purposes of this Agreement. Among other functions, WRCOG shall:
a. Serve as a forum for consideration, study and recommendation on
area -wide and regional problems;
b. Assemble information helpful in the consideration of problems peculiar
to Western Riverside County;
C. Explore practical avenues for intergovernmental cooperation,
coordination and action in the interest of local public welfare and means of improvements in
the administration of governmental services; and
d. Serve as the clearinghouse review body for Federally- funded projects
in accordance with Circular A -95 in conjunction with the Southern California Association of
Governments.
1.2.2. The Council shall have the power in its own name to do any of the
following;
20323.00016\7651699.1 2
a. When necessary for the day to day operation of the Council, to make
and enter into contracts;
b. To contract for the services of engineers, attorneys, planners, financial
consultants and separate and apart therefrom to employ such other persons, as it deems
necessary;
G. To apply for an appropriate grant or grants under any federal, state, or
local programs.
d. To receive gifts, contributions and donations of property, funds,
services and other forms of financial assistance from persons, firms, corporations and any
governmental entity;
e. To lease, acquire, construct, manage, maintain, and operate any
buildings, works, or improvements;
f. To delegate some or all of its powers to the Executive Committee and
the Executive Director of the Council as hereinafter provided.
1.2.3 The association shall have the power in its own name, only with the
approval of all affected member agencies to;
a. Acquire, hold and dispose of property by eminent domain, lease, lease
purchase or sale.
b. To incur debts, liabilities, obligations, and issue bonds;
ORGANIZATION OF COUNCIL
2.1 Parties.
20323.00616 \7651699.1 3
The parties to WRCOG shall be the County of Riverside and each city located
within Western Riverside County which has executed or hereafter executes this Agreement,
or any addenda, amendment, or supplement thereto and agrees to such become a member
upon such terms and conditions as established by the general council or executive
committee, and which has not, pursuant to provisions hereof, withdrawn therefrom. Only
the parties identified in this section shall be considered contracting parties to the JPA under
Government Code section 6502.
2.2 Names.
The names, particular capacities and addresses of the parties at any time shall be
shown on Exhibit "A" attached hereto, as amended or supplemented from time to time.
2.3 Duties.
WRCOG shall do whatever is necessary and required to carry out the
purposes of this agreement and when authorized by an Implementation Agreement
pursuant to section 1.2.3 as appropriate, 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, within the
provisions of Government Code Section 6500 et seq. and as prescribed by the laws of the
State of California.
2.4 Governing Body.
2.4.1. WRCOG shall be governed by a General Assemblywith membership
consisting of the appropriate representatives from the County of Riverside, each city which
is a signatory to this Agreement, Western Municipal Water District, and Eastern Municipal
Water District, the number of which shall be determined as hereinafter set forth. The
20323.00016 \7651699.1 4
General Assembly shall meet at least once annually, preferably scheduled in the evening.
Each member agency of the General Assembly shall have one vote for each mayor, council
member, county supervisor, and water district board member present at the General
Assembly. The General Assembly shall act only upon a majority of a quorum. A quorum
shall consist of a majority of the total authorized representatives, provided that members
representing a majority of the member agencies are present. The General Assembly shall
adopt and amend by -laws for the administration and management of this Agreement, which
when adopted and approved shall be an integral part of this Agreement. Such by -laws may
provide for the management and administration of this Agreement.
2.4.2. There shall be an Executive Committee which exercises the powers of
this Agreement between sessions of the General Assembly. Members of the Executive
Committee shall be the Mayor from each of the member cities, four members of the
Riverside County Board of Supervisors and the President of each Water District, the
remaining member of the Board of Supervisors shall serve as an alternate, except any City
Council, at its discretion, can appoint a Mayor Pro Tem or other city council member in
place of the Mayor, and each water district board, at its discretion, can appoint another
board member in place of the President. The Executive Committee shall act only upon a
majority of a quorum. A quorum shall consist of a majority of the member agencies.
Membership of the Water Districts on the General Assembly and Executive Committee of
WRCOG shall be conditioned on the Water Districts entering into a separate
Memorandums of Understanding with WRCOG. Membership of the Riverside County
Superintendent of Schools on the General Assembly and Executive Committee of WRCOG
2D323.00016 \7651699.1 5
shall be conditioned on the Superintendent of Schools entering into a separate
Memorandums of Understanding with WRCOG.
2.4.3. Each member of the General Assembly and the Executive Committee
shall be a current member of the legislative body such member represents.
2.4.4. Each participating member on the Executive Committee shall also
have an alternate, who must also be a current member of the legislative body of the party
such alternate represents. The name of the alternate members shall be on file with the
Executive Committee. In the absence of the regular member from an agency, the alternate
member from such agency shall assume all rights and duties of the absent regular
member.
2.5 Executive Director.
The Executive Director shall be the chief administrative officer of the Council.
He shall receive such compensation as may be fixed by the Executive Committee. The
powers and duties of the Executive Director shall be subject to the authority of the
Executive Committee and include the following:
a. To appoint, direct and remove employees of the Council
b. Annually to prepare and present a proposed budget to the Executive
Committee and General Assembly.
C. Serve as Secretary of the Council and of the Executive Committee.
d. To attend meetings of the Executive Committee.
e. To perform such other and additional duties as the Executive Committee may
require.
0323.000167651699.1 6
2.6 Principal Office.
The principal office of WRCOG shall be established by the Executive
Committee and shall be located within Western Riverside County. The Executive
Committee is hereby granted full power and authority to change said principal office from
one location to another within Western Riverside County. Any change shall be noted by the
Secretary under this section but shall not be considered an amendment to this Agreement.
2.7 Meetings,
The Executive Committee shall meet at the principal office of the agency or at
such other place as may be designated by the Executive Committee. The time and place
of regular meetings of the Executive Committee shall be determined by resolution adopted
by the Executive Committee; a copy of such resolution shall be furnished to each party
hereto. Regular, adjourned and special meetings shall be called and conducted in
accordance with the provisions of the Ralph M. Brown Act, Government Code Section
54950 et. seq., as it may be amended.
2.8 Powers and Limitations of the Executive Committee.
Unless otherwise provided herein, each member or participating alternate of
the Executive Committee shall be entitled to one vote, and a vote of the majority of those
present and qualified to vote constituting a quorum may adopt any motion, resolution, or
order and take any other action they deem appropriate to carry forward the objectives of
the Council.
20323.00016 \7651699.1 7
2.9 Minutes.
The secretary of the Council shall cause to be kept minutes of regular
adjourned regular and special meetings of the General Assembly and Executive
Committee, and shall cause a copy of the minutes to be forwarded to each member and to
each of the members hereto.
2.10 Rules.
The Executive Committee may adopt from time to time such rules and
regulations for the conduct of its affairs consistent with this agreement or any
Implementation Agreement.
2.11 Vote or Assent of Members.
The vote, assent or approval of the members in any manner as may be
required, hereunder shall be evidenced by a certified copy of the action of the governing
body of such party filed with the Council. It shall be the responsibility of the Executive
Director to obtain certified copies of said actions.
2.12 Officers.
There shall be selected from the membership of the Executive Committee, a
chairperson and a vice chairperson. The Executive Director shall be the secretary. The
Treasurer of the County of Riverside shall be the Treasurer of the Council and the
Controller or Auditor of the County of Riverside shall be the Auditor of the Council. Such
persons shall possess the powers of, and shall perform the treasurer and auditor functions
respectively, for WRCOG and perform those functions required of them by Government
Code Sections 6505, 6505.5 and 6505.6, and by all other applicable laws and regulations,
including any subsequent amendments thereto.
24323.00016 \7651699.1 8
The chairperson and vice chairperson, shall hold office for a period of one
year commencing July 1st of each and every fiscal year; provided, however, the first
chairperson and vice chairperson appointed shall hold office from the date of appointment
to June 30th of the ensuing fiscal year. Except for the Executive Director, any officer,
employee, or agent of the Executive Committee may also be an officer, employee, or agent
of any of the members. The appointment by the Executive Committee of such a person
shall be evidence that the two positions are compatible.
2.13 Committees.
The Executive Committee may, as it deems appropriate, appoint committees
to accomplish the purposes set forth herein. All committee meetings of WRCOG, including
those of the Executive Committee, shall be open to all members.
2.14 Additional Officers and Employees.
The Executive Committee shall have the power to authorize such additional
officers and assistants as may be appropriate. Such officers and employees may also be,
but are not required to be, officers and employees of the individual members.
2.15 Bondinq Requirement.
The officers or persons who have charge of, handle, or have access to any
property of WRCOG shall be the members of the Executive Committee, the treasurer, the
Executive Director, and any other officers or persons to be designated or empowered by
the Executive Committee. Each such officer or person shall be required to file an official
bond with the Executive Committee in an amount which shall be established by the
Executive Committee. Should the existing bond or bonds of any such officer be extended
to cover the obligations provided herein, said bond shall be the official bond required
20323.09016 \7651699.1 9
herein. The premiums on any such bonds attributable to the coverage required herein shall
be appropriate expenses of WRCOG.
2.16 Status of Officers and Employees.
All of the privileges and immunities from liability, exemption from laws,
ordinances and rules, all pension, relief, disability, worker's compensation, and other
benefits which apply to the activity of officers, agents, or employees of any of the members
when performing their respective functions shall apply to them to the same degree and
extent while engaged in the performance of any of the functions and other duties under this
Agreement. None of the officers, agents, or employees appointed by the Executive
Committee shall be deemed, by reason of their employment by the Executive Committee,
to be employed by any of the members or, by reason of their employment by the Executive
Committee, to be subject to any of the requirements of such members.
2.17 Restrictions.
Pursuant to Government Code Section 6509, for the purposes of determining the
restrictions to be imposed by the Council in its exercise of the above - described joint
powers, reference shall be made to, and the Council shall observe, the restrictions imposed
upon the County of Riverside.
2.18 Water Districts and TUMF Matters.
Pursuant to this Joint Powers Agreement, WRCOG administers the Transportation
Mitigation Fee ( "TUMF ") for cities in western Riverside County. The fee was established
prior to the Water District's involvement with WRCOG and will fund transportation
improvements for the benefit of the County of Riverside and the cities in western Riverside
County. As such, the Western Municipal Water District and the Eastern Municipal Water
20323.00016 \7651699.1 10
District General Assembly and Executive Committee Members shall not vote on any matter
related to the administration of the TUMF program or the expenditure of TUMF revenues.
FUNDS AND PROPERTY
3.1 Treasurer.
The Treasury of the member agency whose Treasurer is the Treasurer for WRCOG
shall be the depository for WRCOG. The Treasurer of the Council shall have custody of all
funds and shall provide for strict accountability thereof in accordance with Government
Code Section 6505.5 and other applicable laws of the State of California. He or she shall
perform all of the duties required in Government Code Section 6505 and following, such
other duties as may be prescribed by the Executive Committee.
3.2. Expenditure of Funds.
The funds under this Agreement shall be expended only in furtherance of the
purposes hereof and in accordance with the laws of the State of California and standard
accounting practices shall be used to account for all funds received and disbursed.
3.3. Fiscal Year.
WRCOG shall be operated on a fiscal year basis, beginning on July 1 of each year
and continuing until June 30 of the succeeding year. Prior to July 1 of each year, the
General Assembly shall adopt a final budget for the expenditures of WRCOG during the
following fiscal Year.
3.4. Contributions /Public Funds.
In preparing the budget, the General Assembly by majority vote of a quorum shall
determine the amount of funds which will be required from its members for the purposes of
20323.06016 \7651699.1 11
this Agreement. The funds required from its members after approval of the final budget
shall be raised by contributions 50% of which will be assessed on a per capita basis and
50% on an assessed valuation basis, each city paying on the basis of its population and
assessed valuation and the County paying on the basis of the population and assessed
valuation within the unincorporated area of Western Riverside County as defined in the
by -laws. The parties, when informed of their respective contributions, shall pay the same
before August Ist of the fiscal year for which they are assessed or within sixty days of being
informed of the assessment, whichever occurs later. In addition to the contributions
provided, advances of public funds from the parties may be made for the purposes of this
Agreement. When such advances are made, they shall be repaid from the first available
funds of WRCOG.
The General Assembly shall have the power to determine that personnel, equipment
or property of one or more of the parties to the Agreement may be used in lieu of fund
contributions or advances.
All contributions and funds shall be paid to WRCOG and shall be disbursed by a
majority vote of a quorum of the Executive Committee, as authorized by the approved
budget.
3.5 Contribution from Water Districts.
The provision of section 3.4 above shall be inapplicable to the Western Municipal
Water District and the Eastern Municipal Water District. The amount of contributions from
these water districts shall be through the WRCOG budget process.
1
20323.00016 \7651699.1 !2
Iv
BUDGETS AND DISBURSEMENTS
4.1 Annual Budget.
The Executive Committee may at any time amend the budget to incorporate
additional income and disbursements that might become available to WRCOG for its
purposes during a fiscal year.
4.2 Disbursements.
The Executive Director shall request warrants from the Auditor in accordance
with budgets approved by the General Assembly or Executive Committee subject to
quarterly review by the Executive Committee. The Treasurer shall pay such claims or
disbursements and such requisitions for payment in accordance with rules, regulations,
policies, procedures and bylaws adopted by the Executive Committee.
4.3 Accounts.
All funds will be placed in appropriate accounts and the receipt, transfer, or
disbursement of such funds during the term of this Agreement shall be accounted for in
accordance with generally accepted accounting principles applicable to governmental
entities and pursuant to Government Code Sections 6545 et seq. and any other applicable
laws of the State of California. There shall be strict accountability of all funds. All revenues
and expenditures shall be reported to the Executive Committee.
4.4 Expenditures Within Approved Annual Budget.
All expenditures shall be made within the approved annual budget, No
expenditures in excess of those budgeted shall be made without the approval of a majority
of a quorum of the Executive Committee.
24323.00016 \7651699.1 13
4.5 Audit,
The records and accounts of WRCOG shall be audited annually by an
independent certified public accountant and copies of such audit report shall be filed with
the County Auditor, State Controller and each party to WRCOG no later than fifteen (15)
days after receipt of said audit by the Executive Committee.
4.6 Reimbursement of Funds.
Grant funds received by WRCOG from any federal, state, or local agency to
pay for budgeted expenditures for which WRCOG has received all or a portion of said funds
from the parties hereto shall be used as determined by WRCOG's Executive
Committee.
V
LIABILITIES
5.1 Liabilities.
The debts, liabilities, and obligation of WRCOG shall be the debts, liabilities,
or obligations of WRCOG alone and not of the parties to this Agreement.
5,2 Hold Harmless and Indemnity.
Each party hereto agrees to indemnify and hold the other parties harmless
from all liability for damage, actual or alleged, to persons or property arising out of or
resulting from negligent acts or omissions of the indemnifying party or its employees.
Where the General Assembly or Executive Committee itself or its agents or employees are
held liable for injuries to persons or property, each party's liability for contribution or
indemnity for such injuries shall be based proportionately upon the contributions (less
voluntary contributions) of each member. In the event of liability imposed upon any of the
20323.00016 \7651699.1 14
parties to this Agreement, or upon the General Assembly or Executive Committee created
by this Agreement, for injury which is caused by the negligent or wrongful act or omission of
any of the parties in the performance of this Agreement, the contribution of the party or
parties not directly responsible for the negligent or wrongful act or omission shall be limited
to One Hundred Dollars ($100.00). The party or parties directly responsible for the
negligent or wrongful acts or omissions shall indemnify, defend, and hold all other parties
harmless from any liability for personal injury or property damage arising out of the
performance of this Agreement. The voting for or against a matter being considered by the
General Assembly or executive or other committee or WRCOG, or abstention from voting
on such matter, shall not be construed to constitute a wrongful act or omission within the
meaning of this Subsection.
VI
ADMISSION AND WITHDRAWAL_ OF PARTIES
6.1 Admission of New Parties.
It is recognized that additional cities otherthan the original parties, maywish
to participate in WRCOG. Any Western Riverside County city may become a party to
WRCOG upon such terms and conditions as established by the General Assembly or
Executive Committee. Any Western Riverside County city shall become a party to WRCOG
by the adoption by the city council of this agreement and the execution of a written
addendum thereto agreeing to the terms of this Agreement and agreeing to any additional
terms and conditions that may be established by the general assembly or Executive
Committee. Special districts which are significantly involved in regional problems and the
boundaries of which include territory within the collective area of the membership shall be
20323.00016 \7651699.1 15
eligible for advisory membership in the Council. The representative of any such advisory
member may participate in the work of committees of the Council.
6.2 Withdrawal from WRCOG.
It is fully anticipated that each party hereto shall participate in WRCOG until
the purposes set forth in this Agreement are accomplished. The withdrawal of any party,
either voluntary or involuntary, unless otherwise provided by the General Assembly or
Executive Committee, shall be conditioned as follows.
a. In the case of a voluntary withdrawal following a properly noticed public
hearing, written notice shall be given to WRCOG, six months prior to the effective date of
withdrawal;
b. Withdrawal shall not relieve the party of its proportionate share of any
debts or other liabilities incurred by WRCOG prior to the effective date of the parties' notice
of withdrawal;
C. Unless otherwise provided by a unanimous vote of the Executive
Committee, withdrawal shall result in the forfeiture of that party's rights and claims relating
to distribution of property and funds upon termination of WRCOG as set forth in Section VII
below;
d. Withdrawal from any Implementation Agreement shall not be deemed
withdrawal from membership in WRCOG.
20323.00016 \7651699.1 16
Vli
TERMINATION AND DISPOSITION OF ASSETS
7.1 Termination of this Agreement.
WRCOG shall continue to exercise the joint powers herein until the
termination of this Agreement and any extension thereof or until the parties shall have
mutually rescinded this Agreement; providing, however, that WRCOG and this Agreement
shall continue to exist for the purposes of disposing of all claims, distribution of assets and
all other functions necessary to conclude the affairs of WRCOG.
Termination shall be accomplished by written consent of all of the parties, or
shall occur upon the withdrawal from WRCOG of a sufficient number of the agencies
enumerated herein so as to leave less than five of the enumerated agencies remaining in
WRCOG.
7.2 Distribution of Property and Funds.
In the event of the termination of this Agreement, any property interest
remaining in WRCOG following the discharge of all obligations shall be disposed of as the
Executive Committee shall determine with the objective of distributing to each remaining
party a proportionate return on the contributions made to such properties by such parties,
less previous returns, if any.
VIII
IMPLEMENTATION AGREEMENTS
8.1 Execution of Agreement.
When authorized by the Executive Committee, any affected member agency
or agencies enumerated herein, may execute an Implementation Agreement for the
20323.00016 \7651699.1 17
purpose of authorizing WRCOG to implement, manage and administer area -wide and
regional programs in the interest of the local public welfare. The costs incurred by WRCOG
in implementing a program including indirect costs, shall be assessed only to those public
agencies who are parties to that Implementation Agreement.
IX
MISCELLANEOUS
9.1 Amendments.
This Agreement may be amended with the approval of not less than
two - thirds (213) of all member agencies.
9.2 Notice.
Any notice or instrument required to be given or delivered by depositing the
same in any United States Post Office, registered or certified, postage prepaid, addressed
to the addresses of the parties as shown on Exhibit "A ", shall be deemed to have been
received by the party to whom the same is addressed at the expiration of seventy -two (72)
hours after deposit of the same in the United States Post Office for transmission by
registered or certified mail as aforesaid.
9.3 Effective Date.
This Agreement shall be effective and WRCOG shall exist from and after such
date as this Agreement has been executed by any seven or more of the public agencies,
including the County of Riverside, as listed on page 1 hereof.
9.4 Arbitration.
Any controversy or claim between any two or more parties to this Agreement,
or between any such party or parties and WRCOG, with respect to disputes, demands,
20323.00016 \7651699.1 18 O
differences, controversies, or misunderstandings arising in relation to interpretation of this
Agreement, or any breach thereof, shall be submitted to and determined by arbitration.
The party desiring to initiate arbitration shall give notice of its intention to arbitrate to every
other party to this Agreement and to the Executive Director of the Council. Such notice
shall designate as "respondents" such other parties as the initiating party intends to have
bound by any award made therein. Any party not so designated but which desires to join in
the arbitration may, within ten (10) days of service upon it of such notice, file with all other
parties and with the Executive Director of the Council a response indicating its intention to
join in and to be bound by the results of the arbitration, and further designating any other
parties it wishes to name as a respondent. Within twenty (20) days of the service of the
initial demand for arbitration, the initiating party and the respondent or respondents shall
each designate a person to act as an arbitrator. The designated arbitrators shall mutually
designate the minimal number of additional persons as arbitrators as may be necessary to
create an odd total number of arbitrators but not less than three to serve as arbitrator(s).
The arbitrators shall proceed to arbitrate the matter in accordance with the
provisions of Title 9 of Part 3 of the Code of Civil Procedure, Section 1280 et. seq. The
parties to this Agreement agree that the decision of the arbitrators will be binding and will
not be subject to judicial review except on the ground that the arbitrators have exceeded
the scope of their authority.
9.5 Partial Invalidity.
If any one or more of the terms, provisions, sections, promises, covenants or
conditions of this Agreement shall to any extent be adjudged invalid, unenforceable, void or
voidable for any reason whatsoever by a court of competent jurisdiction, each and all of the
20323.00016 \7651693.1 19
remaining terms, provisions, sections, promises, covenants and conditions of this
Agreement shall not be affected thereby and shall be valid and enforceable to the fullest
extent permitted by law.
9.6 Successors.
This Agreement shall be binding upon and shall inure to the benefit of the
successors of the parties hereto.
9.7 Assignment.
The parties hereto shall not assign any rights or obligations under this
Agreement without written consent of all other parties.
9.8 Execution.
The Board of Supervisors of the County of Riverside and the city councils of
the cities enumerated herein have each authorized execution of this Agreement as
evidenced by the authorized signatures below, respectively.
20323.00016 \7651699.1 20
Original Members Agencies
1. City of Banning
2. City of Beaumont (withdrawn)
3. City of Calimesa
4. City of Canyon Lake
5. City of Corona
6. City of Hemet
7. City of Lake Elsinore
8. City of Moreno Valley
9. City of Murrieta
10. City of Norco
11. City of Perris
12. City of Riverside
13. City of San Jacinto
14. City of Temecula
15. County of Riverside
Additional City Members
1. City of Eastvale (added on 0810212010, Resolution 01 -11)
2. City of Jurupa Valley (added on 0712912011, Resolution 02 -12)
3. City of Menifee (added on 10/06/2008, Resolution 03 -09)
4. City of Wildomar (added on 0810412008, Resolution 0 1 -09)
20323.00016 \7651699.1 21
THE WESTERN RIVERSIDE
COUNCIL OF GOVERNMENTS
Participating Agencies
5. Eastern Municipal Water District (membership on the Governing Board
of WRCOG, 0511112009)
6. Riverside County Superintendent of Schools (membership as an ex-
officio, advisory member of WRCOG, 11 /07/2011)
7. Western Municipal Water District (membership on the Governing Board
of WRCOG, 0511112009)
20323.00016 \7651699.1 22