HomeMy WebLinkAboutStaff Report 4.C 01/27/2020DATE
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Agenda Item #4.0
January 27, 2020
Honorable Mayor and Members of the City Council through City Manager'-"-' -
Doug Hughes, Building Official
Patrick Carter, Senior Management Analyst, City Manager's Office
SUBJECT: Resolution Approving of the Second Amendment to the Cooperative Agreement
with the County of Sonoma to Implement the Sonoma County Energy
Independence Program
RECOMMENDATION
It is recommended the Council consider a Resolution Approving of the Second Amendment to
the Cooperative Agreement with the County of Sonoma to Implement the Sonoma County
Energy Independence Program.
BACKGROUND
On July 21, 2008, the Governor signed AB 811 (Levine) as an urgency measure, amending
Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code to provide
California counties and cities with a new way to help property owners finance energy
improvements. Specifically, AB 811 authorized the establishment of contractual assessment
programs in order to finance the installation of solar panels and other energy efficiency
improvements that are permanently fixed to real property. Participation is voluntary and property
owners who participate install improvements and pay the assessment on their property tax bills
over time. The Sonoma County Energy Independence Program (SCEIP) was created by the
Sonoma County Board of Supervisors in March 2009 to provide energy efficiency, conservation
of water resources, renewable energy generation, and energy independence projects in Sonoma
County.
The Petaluma City Council adopted Resolution 2009-81 on June 15, 2009 to allow participation
in SCEIP projects within city limits by entering into a cooperative agreement with the County of
Sonoma to Implement the Sonoma County Energy Independence Program. The Council adopted
Resolution 2009-150 on September 14, 2009 to amend the cooperative agreement modify the
responsibilities of the County.
In 2018, the State Legislature adopted the Wildfire Safety Finance Act (SB 465), codified as
Section 5899.4 of the California Streets and Highways Code, effective January 1, 2019, which
authorizes contractual assessment programs, such as SCEIP, to finance the installation of
wildfire safety improvements that are permanently fixed to existing residential, commercial,
industrial, agricultural, or other real property. The legislation dictates that financing through
contractual assessment programs can only be used for these types of wildfire safety
improvements until January 1, 2029.
Additionally, in 2011, the State Legislature adopted the Seismic Safety Finance Act (AB 184),
codified as Section 5899 of the California Streets and Highways Code, effective January 1, 2012,
which authorizes contractual assessment programs, like SCEIP, to finance the installation of
seismic strengthening improvements that are permanently fixed to residential, commercial,
industrial, agricultural, or other real property to make them more resistant to seismic activity,
ground motion, or soil failure due to earthquakes.
On April 30, 2019, the Sonoma County Board of Supervisors adopted two resolutions of
intention (Resolution Nos. 19-0166 and 19-0167), declaring its intention to expand the SCEIP to
include the financing of wildfire safety improvements and seismic strengthening improvements,
and setting a public hearing thereon so that interested members of the public can weigh in on the
proposed SCEIP expansion. This action was followed on July 23, 2019 when the Board formally
approved the expansion, requested staff to work with each of the nine incorporated Cities to
adopt the measures within their jurisdictions, and to seek a legal judgement from the Superior
Court of California to validate the expansion in accordance with California Code of Civil
Procedure Section 860, et seq. This judgement was entered on December 13, and the 30 -day
appeal period expired on January 13, 2020.
DISCUSSION
The SCEIP has evolved since its inception from focusing on existing building improvements to
include financing for specified elements of new construction. The shift from existing building
improvements to all buildings did not change the nature or subject matter of the program, and
therefore did not require amendments to the cooperative agreement between the City of Petaluma
and the County of Sonoma.
Since the County sought a legal judgment from the Superior Court of California to validate the
expansion into wildfire safety and seismic strengthening improvements, County staff believes
this expansion is significant enough to require an amendment to the cooperative agreement.
The wildfire safety improvements proposed by SCEIP include improvements to roofing, siding,
eaves, soffits, decks, windows, roof gutters and gutter enclosures, vents, and hardscaping, using a
range of equipment, systems, and technology, that meet ignition -resistant, ember -resistant, or
non-combustible material ratings. Under state law, wildfire safety improvements must be fixed to
an existing building or structure, and cannot be used as a part of a project to construct a new
home or to rebuild or reconstruct a home that was destroyed or damaged in a fire.
The seismic strengthening improvements proposed by SCEIP must be fixed to an existing
building or structure, and include strengthening of cripple walls and sill plate anchorage of light,
wood -framed buildings.
I
In order to offer wildfire safety and seismic strengthening improvements within Petaluma and be
consistent with eligible projects in the unincorporated county, the County of Sonoma is
requesting the City approve of the Second Amendment to the Cooperative Agreement to
Implement the Sonoma County Energy Independence Program. Staff recommends approval of
the amendment to the cooperative agreement.
Alternatively, if the Council does not approve the second amendment, wildfire safety and
seismic strengthening projects will be ineligible in Petaluma. However, energy efficiency,
conservation of water resources, renewable energy generation, and energy independence projects
will continue to be eligible in Petaluma based on Council's approval of the 2009 agreement.
Since the 2009 adoption of the program in Petaluma, the SCEIP has been used in 189 residential
projects and 6 commercial projects totaling $4,846,278.
PUBLIC OUTREACH
This item was included on the agenda for the January 27, 2020 City Council meeting, in
accordance with public noticing requirements.
If this item is approved, staff will inform our community members of the expanded program's
availability through City social media outreach and through providing physical promotional
materials at City facilities.
FINANCIAL IMPACTS
There are no new financial impacts resulting from the approval of the amendment to the
cooperative agreement with the County of Sonoma for the SCEIP program to allow wildfire
safety and seismic strengthening improvements in Petaluma. SCEIP administers the program,
and the costs for potential new projects requiring permits and inspections would be covered by
the fees charged for those projects.
ATTACHMENTS
1. Resolution Authorizing SCEIP Expansion for Residents of the City of Petaluma
2. Amendment No. 2 to the Cooperative Agreement with the County of Sonoma to
Implement the Sonoma County Energy Independence Program
3. SCEIP Wildfire Safety and Seismic Strengthening Eligible Improvements
ATTACHMENT 1
RESOLUTION APPROVING AMENDMENT NO. 2 TO THE COOPERATIVE
AGREEMENT TO IMPLEMENT THE SONOMA COUNTY ENERGY
INDEPENDENCE PROGRAM WITH THE COUNTY OF SONOMA TO ALLOW
PROPERTY OWNERS WITHIN THE INCORPORATED AREA OF THE CITY OF
PETALUMA TO FINANCE SEISMIC STRENGTHENING IMPROVEMENTS AND
WILDFIRE SAFETY IMPROVEMENTS THROUGH THE SONOMA COUNTY
ENERGY INDEPENDENCE PROGRAM
WHEREAS, on June 15, 2009, By Resolution No. 2009-81, the Council approved a
Cooperative Agreement to Implement the Sonoma County Energy Independence Program with
the County of Sonoma to allow property owners within the incorporated area of the City of
Petaluma to finance the acquisition and construction or installation of distributed generation
renewable energy sources and energy efficiency improvements, which include water efficiency
improvements, through the Sonoma County Energy Independence Program ("SCEIP" or the
"Program"); and
WHEREAS, on September 14, 2009, By Resolution No. 2009-150, the Council
approved Amendment No. 1 to the Cooperative Agreement; and
WHEREAS, the City of Petaluma has been actively involved in promoting and cross
marketing SCEIP as a key funding tool in helping Petaluma property owners make energy
efficiency and renewable energy generation improvements to their homes and businesses; and
WHEREAS, the State Legislature has adopted the Seismic Safety Finance Act, codified
as Section 5899 of the California Streets and Highways Code, effective January 1, 2012, which
authorizes contractual assessment programs to finance the installation of seismic strengthening
improvements that are permanently fixed to residential, commercial, industrial, agricultural, or
other real property ("Seismic Strengthening Improvements"); and
WHEREAS, the State Legislature has also adopted the Wildfire Safety Finance Act,
codified as Section 5899.4 of the California Streets and Highways Code, effective January 1,
2019 and repealed January 1, 2029, which authorizes certain public agencies to designate an area
within which contractual assessment programs may finance the installation of wildfire safety
improvements that are permanently fixed to existing residential, commercial, industrial,
agricultural, or other real property ("Wildfire Safety Improvements"); and
WHEREAS, on July 23, 2019, by Resolution No. 19-0311, the County Board of
Supervisors expanded SCEIP to include Seismic Strengthening Improvements and Wildfire
0
ATTACHMENT 1
Safety Improvements in order to help property owners harden their properties and make the
County more resilient to seismic and wildfire events; and
WHEREAS, the County's expansion of SCEIP took effect on January 14, 2020.
NOW, THEREFORE, BE IT RESOLVED that the Council finds and declares the
following:
1. The Council finds that properties in the City's incorporated area will benefit from
inclusion in the expanded Program.
2. The Council consents to the inclusion of properties within the incorporated area of
the City in the expanded Program for the purpose of financing Seismic
Strengthening Improvements and Wildfire Safety Improvements through SCEIP.
3. The Council approves Amendment No. 2 to Cooperative Agreement to Implement
the Sonoma County Energy Independence Program.
ATTACHMENT 2
AMENDMENT NO. 2 TO THE COOPERATIVE AGREEMENT TO IMPLEMENT
SONOMA COUNTY ENERGY INDEPENDENCE PROGRAM
This Amendment No. 2 to Cooperative Agreement to Implement Energy Independence Program
("Amendment") is made and entered into on day of 2020 by and between the County of
Sonoma ("County") and the City of Petaluma ("City').
A. On June 15, 2009, the City and the County entered into that certain Cooperative Agreement to
Implement Energy Independence Program ("Agreement") to allow citizens of the City to participate in the
Sonoma County Energy Independence Program ("SCEIP")
B. On September 14, 2009, the City and the County entered into that certain Amendment No. 1 to
the Agreement to modify the responsibilities of the County.
C. The State Legislature has adopted the Seismic Safety Finance Act, codified as Section 5899 of the
California Streets and Highways Code, effective January 1, 2012, which authorizes contractual assessment
programs to finance the installation of seismic strengthening improvements that are permanently fixed to
residential, commercial, industrial, agricultural, or other real property ("Seismic Strengthening Improvements")
D. The State Legislature has also adopted the Wildfire Safety Finance Act, codified as Section
5899.4 of the California Streets and Highways Code, effective January 1, 2019 and repealed January 1, 2029,
which authorizes certain public agencies to designate an area within which contractual assessment programs
may finance the installation of wildfire safety improvements that are permanently fixed to existing residential,
commercial, industrial, agricultural, or other real property ("Wildfire Safety Improvements").
E. On July 23, 2019, by Resolution No. 19-0311, the County Board of Supervisors expanded SCEIP
to include Seismic Strengthening Improvements and Wildfire Safety Improvements in order to help property
owners harden their properties and make the County more resilient to seismic and wildfire events.
The County's expansion of SCEIP took effect on January 14, 2020.
G. The City desires to allow property owners within its jurisdiction to participate in SCEIP's
expanded program, including those Seismic Strengthening Improvements and Wildfire Safety Improvements
available for financing under SCEIP.
Now, therefore, the parties modify the Agreement as follows:
1. Expansion of Program. The City and the County agree that SCEIP's expanded program, which
includes Seismic Strengthening Improvements and Wildfire Safety Improvements, shall be
available to property owners within incorporated areas of the City.
[The remainder of this page intentionally left blank.]
RI
ATTACHMENT 2
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 as set forth below.
CITY OF PETALUMA: COUNTY OF SONOMA:
Mayor SCEIP Program Administrator
Date Date
APPROVED AS TO FORM: APPROVED AS TO FORM:
City Attorney
County Counsel
Date Date
-7- A tME
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COUNTY OF SONOMA
ENERGY AND SUSTAINABILITY
ATTACHMENT 3
Energy Independence Program Proposed PACE Wildfire Safety Improvements
This list does not supersede or replace any local or state regulations. Improvements made for wildfire safety
through PACE must meet or exceed all local building requirements and fire restrictions.
Product Type Qualifying Criteria
Roofing - Class A Covering Must meet the Wildland Urban Interface (WUI) requirements, installed per
manufacturer's instructions, and must be Class A fire -rated.
Gutters, Coverings, and Gutter, gutter guards, and downspouts must be composed of non -
Downspouts combustible materials that meet the class rating. Gutter guards must be
constructed and installed so debris and vegetation does not accumulate in
or around the gutter. Gutters must be installed such that the leading edge of
the roof is finished so that no sheathing is exposed.
Deck - New or Replacement Deck structure or surface constructed with non-combustible materials; base
of deck should be enclosed and constructed from a non-combustible
Anticipated availability by January 2020. For more information, please call 707-565-6470 or email gsenergy@sonoma-county.org.8
material. Deck Enclosures may be enclosed by applying sheathing or siding
around the perimeter (a vertical enclosure), or by attaching sheathing/panel
materials to the underside of the structural support members (a horizontal
enclosure).
Attic, Eave, and Foundation
Must meet the Wildland Urban Interface (WUI) requirements, installed per
Vents
manufacturer's instructions.
Soffits
Must meet the Wildland Urban Interface (WUI) requirements, installed per
manufacturer's instructions. Retrofit open soffits to an enclosed soffit.
Siding Replacement
Product must replace existing siding with noncombustible or ignition -
resistant material. Product shall be installed per the manufacturer's
instructions and positioned to avoid gaps. Any voids shall be caulked or
otherwise filled. Class A fire -rated only.
Window Replacement
At a minimum, windows must be dual paned, with a tempered exterior
pane. All frames and other materials must be constructed from
noncombustible or ignition -resistant material. Windows will also need to
meet the efficiency ratings required for new construction. Climate Zone 1
must have a U factor of .30 or lower. Climate Zone 2 must have a u factor of
.30 or lower and a Solar Heat Gain Coefficient (SHGC) of .23 or lower.
Hardscaping
Hardscaping is allowed from home/structure as measured from the
foundation or siding wall up to five (5) feet out. Design plans must be
submitted along with the contractor bid/proposal to be considered for
financing.
Custom Wildfire Safety
Applicants for the Custom Improvement Track should consult with the SCEIP
Improvements
staff to determine eligibility and will be required in most cases to submit
engineering plans and specifications for review and approval. The Program
Administrator, or designated staff, will approve the Custom Improvement
Track application on a case-by-case basis, and may request consultation
from outside technology experts in making this decision. The applicant
would be expected to bear the cost of such consultation. Cost
reimbursement will be discussed with the applicant before the project is
reviewed.
Anticipated availability by January 2020. For more information, please call 707-565-6470 or email gsenergy@sonoma-county.org.8
ATTACHMENT 3
COUNTY OF SONOMA
ENERGY AND SUSTAINABILITY
Energy Independence Program Proposed PACE Seismic Strengthening Improvements
The following seismic strengthening improvements are allowed to be installed on existing buildings. This list
does not supersede or replace any local or state regulations. Improvements made for seismic strengthening
through PACE must meet or exceed all local building requirements.
Product Type Qualifying Criteria
Foundations & Soil All measures must meet applicable building codes adopted by the local
Treatment authority having jurisdiction (AHJ), including but not limited to Sonoma
Lateral Support Systems County Building Regulations, California Building Code, California Residential
Shear Walls Code, and any additional Local Jurisdiction Building Codes and Regulations.
Moment & Brace Frames
New Steel Columns
Column Strengthening
Diaphragm Strengthening
Frame Strengthening
Foundation Connection
System
Structural Connection
System
Masonry Reinforcement
Bracing of Cripple Walls
Bolting of Mudsill to
Foundation
Anchoring of Sill Plate
Indirect & Soft Costs, such as Indirect and soft costs are to be included in Itemized Costs of Improvements,
Architecture & Engineering, Line D: Professional Services on page 2 of SCEIP Application.
Surveys & Permitting,
Contractor General
Conditions & Fees,
Financing, Legal, & Other
Fees
Custom Seismic Applicants for the Custom Improvement Track should consult with the SCEIP
Strengthening staff to determine eligibility and will be required in most cases to submit
Improvements engineering plans and specifications for review and approval. The Program
Administrator, or designated staff, will approve the Custom Improvement
Track application on a case-by-case basis, and may request consultation
from outside technology experts in making this decision. The applicant
would be expected to bear the cost of such consultation. Cost
reimbursement will be discussed with the applicant before the project is
reviewed.
Anticipated availability by January 2020. For more information, please call 707-565-6470 or email gsenergy@sonoma-county.org.9