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HomeMy WebLinkAboutPC_2009-08-04_AgendaPacketCITY OF ATASCADERO PLANNING COMMISSION AGENDA Regular Meeting Tuesday, August 4, 2009 — 7:00 P.M. City Hall Council Chambers 6907 El Camino Real Atascadero, California CALL TO ORDER Pledge of Allegiance Roll Call: Chairperson Jack Vice Chairperson Moreno Commissioner Bentz Commissioner Colamarino Commissioner Schmidt Commissioner Sturtevant Commissioner Ward APPROVAL OF AGENDA PUBLIC COMMENT (This portion of the meeting is reserved for persons wishing to address the Commission on any matter not on this agenda and over which the Commission has jurisdiction. Speakers are limited to three minutes. Please state your name and address for the record before making your presentation. The Commission may take action to direct the staff to place a matter of business on a future agenda) PLANNING COMMISSION BUSINESS CONSENT CALENDAR (All items on the consent calendar are considered to be routine and non -controversial by City Staff and will be approved by one motion if no member of the Commission or public wishes to comment or ask questions) 1. APPROVAL OF MINUTES OF THE REGULAR PLANNING COMMISSION MEETING ON JUNE 16, 2009. City of Atascadero Planning Commission Agenda Regular Meeting, August 4, 2009 Page 2 of 4 2. APPROVAL OF MINUTES OF THE SPECIAL JOINT MEETING ON THE HOUSING ELEMENT UPDATE ON JUNE 16, 2009. COMMUNITY DEVELOPMENT STAFF REPORTS 3. PLN 2009-1334, TREE REMOVAL PERMIT FOR 9305 PISMO AVE. Property Owner: City of Atascadero, 6907 EI Camino Real, Atascadero, CA 93422 Certified Arborist: A&T Arborists, PO Box 1311, Templeton, CA 93465 Project Title: PLN 2009-1334 / Tree Removal Permit 2009-0132 Project 9305 Pismo Ave., Atascadero, CA 93422 Location: APN 031-362-003 (San Luis Obispo County) Project A request to remove two (2) valley oaks and two (2) black walnuts totaling 76 Description: inches DBH to assist renovations to the Atascadero Zoo entrance and general facilities. 4. SOLAR POWER FINANCING PROGRAM STAFF PRESENTATION PUBLIC HEARINGS - None DISCLOSURE OF EX PARTE COMMUNICATIONS: Prior to a project hearing Planning Commission Members must disclose any communications they have had on any quasi-judicial agenda items. This includes, but is not limited to, Tentative Subdivision Maps, Parcel Maps, Variances, Conditional Use Permits, and Planned Development Permits. This does not disqualify the Planning Commission Member from participating and voting on the matter, but gives the public and applicant an opportunity to comment on the ex parte communication. (For each of the following items, the public will be given an opportunity to speak. After a staff report, the Chair will open the public hearing and invite the applicant or applicant's representative to make any comments. Members of the public will be invited to provide testimony to the Commission following the applicant. Speakers should state their name and address for the record and can address the Commission for three minutes. After all public comments have been received, the public hearing will be closed, and the Commission will discuss the item and take appropriate action(s).) City of Atascadero Planning Commission Agenda COMMISSIONER COMMENTS AND REPORTS DIRECTOR'S REPORT ADJOURNMENT Regular Meeting, August 4, 2009 Page 3 of 4 The next regular meeting of the Planning Commission is scheduled for August 18, 2009, at City Hall, Council Chambers, 6907 El Camino Real, Atascadero. Please note: Should anyone challenge in court any proposed development entitlement listed on this Agenda, that person may be limited to raising those issues addressed at the public hearing described in this notice or in written correspondence delivered to the Planning Commission at, or prior to this public hearing. City of Atascadero Planning Commission Agenda Regular Meeting, August 4, 2009 Page 4 of 4 City of Atascadero WELCOME TO THE ATASCADERO PLANNING COMMISSION MEETING The Planning Commission meets in regular session on the first and third Tuesday of each month at 7:00 p.m. at City Hall, Council Chambers, 6907 EI Camino Real, Atascadero. Matters are considered by the Commission in the order of the printed Agenda. Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the office of the Community Development Department and are available for public inspection during City Hall business hours at the Front Counter of City Hall, 6907 EI Camino Real, Atascadero, and on our website, www.atascadero.org. An agenda packet is also available for public review at the Atascadero Library, 6850 Morro Road. All documents submitted by the public during Commission meetings that are either read into the record or referred to in their statement will be noted in the minutes and available for review in the Community Development Department. Commission meetings are video taped and audio recorded, and may be reviewed by the public. Copies of meeting recordings are available for a fee. Contact the City Clerk for more information (470-3400). In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Manager's Office or the City Clerk's Office, both at (805) 470-3400. Notification at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. TO SPEAK ON SUBJECTS NOT LISTED ON THE AGENDA Under Agenda item, "PUBLIC COMMENT", the Chairperson will call for anyone from the audience having business with the Commission to approach the lectern and be recognized. 1. Give your name for the record (not required) 2. State the nature of your business. 3. All comments are limited to 3 minutes. 4. All comments should be made to the Chairperson and Commission. 5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present. This is when items not on the Agenda may be brought to the Commission's attention. A maximum of 30 minutes will be allowed for Public Comment Portion (unless changed by the Commission). TO SPEAK ON AGENDA ITEMS (from Title 2, Chapter 1 of the Atascadero Municipal Code) Members of the audience may speak on any item on the agenda. The Chairperson will identify the subject, staff will give their report, and the Commission will ask questions of staff. The Chairperson will announce when the public comment period is open and will request anyone interested to address the Commission regarding the matter being considered to step up to the lectern. If you wish to speak for, against or comment in any way: 1. You must approach the lectern and be recognized by the Chairperson. 2. Give your name (not required). 3. Make your statement. 4. All comments should be made to the Chairperson and Commission. 5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present. 6. All comments limited to 3 minutes. If you wish to use a computer presentation to support your comments, you must notify the Community Development Department at 470-3402 at least 24 hours prior to the meeting. Digital presentations brought to the meeting on a USB drive or CD is preferred. Access to hook up your laptop to the City's projector can also be provided. You are required to submit to the Recording Secretary a printed copy of your presentation for the record. Please check in with the Recording Secretary before the meeting begins to announce your presence and turn in the printed copy. The Chairperson will announce when the public comment period is closed, and thereafter, no further public comments will be heard by the Commission. ITEM: 1 DATE: 8-4-09 CITY OF ATASCADERO PLANNING COMMISSION DRAFT MINUTES Regular Meeting - Tuesday, June 16, 2009 — 6:00 P.M. City Hall Council Chambers 6907 EI Camino Real, Atascadero, California CALL TO ORDER - 6:02 p.m. Chairperson Jack called the meeting to order at 6:02 p.m. and Commissioner Moreno led the Pledge of Allegiance. ROLL CALL Present: Chairperson Jack, Vice Chairperson Moreno, Commissioners Bentz, Colamarino, Schmidt, Sturtevant, and Ward Absent: None Others Present: Recording Secretary Annette Manier Staff Present: Community Development Director Warren Frace, Associate Planner Callie Taylor, and City Engineer/Public Works Director Russ Thompson. APPROVAL OF AGENDA MOTION: By Vice Chairperson Moreno and seconded by Commissioner Bentz to approve the agenda. Motion passed 7:0 by a roll -call vote. PC Draft Minutes of 06/16/09 Page 1 of 4 PUBLIC COMMENT Tim Haley, Member of the Atascadero Veterans Memorial Committee, former member of that Board, current Commandant of the Marine Corps league detachment for San Luis Obispo County, and member of the Central Coast Leatherneck Honor Guard introduced himself to the Commission. He discussed a recent press release in which two recent Cal Poly graduates, Michael Gunther and Blake Medeiros, chose the Atascadero Veterans Memorial site to become US Marine Corps officers. Chairperson Jack closed the Public Comment period. PLANNING COMMISSION BUSINESS Commissioner Schmidt expressed interest in knowing more about the City's participation in the stimulus program for solar panels. Chairperson Jack said the information is being prepared now by the Office of Economic Development. Community Development Director Frace said the Commission will be briefed at a future meeting. Chairperson Jack asked that in the future, before anything gets presented to the Commission, he would like the information to go through the Chairperson, or Community Development Director Warren Frace, before it is presented. CONSENT CALENDAR 1. APPROVAL OF MINUTES OF THE REGULAR PLANNING COMMISSION MEETING ON MAY 19, 2009. MOTION: By Vice Chairperson Moreno and seconded by Commissioner Bentz to approve the Consent Calendar. Motion passed 6:0 by a roll -call vote. (Sturtevant abstained) COMMUNITY DEVELOPMENT STAFF REPORTS None PUBLIC HEARINGS DISCLOSURE OF EX PARTE COMMUNICATIONS: • No Ex Parte communications. PC Draft Minutes of 06/16/09 Page 2 of 4 2. AMENDMENT TO ZONE CHANGE 2003-0058, 9020 WEST FRONT ROAD ROAD Property West Front Village, LLC, 1301 Chorro Street, San Luis Obispo, CA 93401 Owner/Applicant: Project Title: Amendment to Zone Change 2003-0058 Project Location: 9020 West Front Road, Atascadero, CA 93422 (San Luis Obispo County) APN 056-131-025 through 033 Project The proposed project includes an Amendment to the PD -23 text in Title 9, Planning and Description: Zoning Section 9-3.668 of the Atascadero Municipal Code. The proposed Amendment would add "indoor recreation services" to the list of allowable uses in the business park portion of the Planned Development (APN 056-131-025 through 033, behind the hotel). The parking requirement for future indoor recreation services on these lots is proposed to be specified in the PD -23 code text with this Amendment. General Plan Designation: GC, MDR Zoning District: CR, RMF -10, PD -23 Proposed Consistent with previously certified Mitigated Negative Declaration 2005-0165. Environmental Determination: Commissioner Schmidt explained that he found it necessary to recuse himself from consideration of this item because of the proximity of his home to the project. Associate Planner Callie Taylor gave the staff report and answered questions of the Commission. PUBLIC COMMENT: Richard Shannon, partner on West Front Village, discussed the new potential tenant, (laser tag), and said that Eric Estelle, operator of laser tag business, was available in the audience for questions. He also stated the building has been approved through the Building Department, and discussed the construction cost and financing, both of which are moving forward. The building could begin construction by October 2009. Eric Estelle, operator of the laser tag business, explained laser tag, how it is played, and said there is no age limit for playing. Ann Hatch, Atascadero Parks and Recreation Commission member, and Atascadero resident, asked about the hours of operation, parking spaces, potential for noise problems in a residential neighborhood, and stated she is in support of this type of business. Amar Sohi, Manager of the Holiday Inn Express and Suites, also asked about noise, hours of operation, and the target customer base. PC Draft Minutes of 06/16/09 Page 3 of 4 Ron Holland, Owner of the Holiday Inn, stated that he is concerned about noise, kids hanging out in the evening, and hours of operation since this was supposed to be a business park in the beginning with daytime hours. He does not want it to become a hangout for teenagers, which would severely affect the hotel. Eric Estelle, operator of the laser tag business, addressed the questions of the public and the Commission. Chairperson Jack closed the Public Comment period. MOTION: By Commissioner Bentz and seconded by Commissioner Ward to: 1. Adopt Resolution PC 2009-0024 recommending that the City Council introduce an ordinance for first reading by title only to approve an amendment to Zone Text Change 2003-0058 to add indoor recreation services and amusement services as an allowed use in the business park portion in PD #23 with special parking requirements based on findings. Motion passed 6:0 by a roll -call vote. Commissioner Schmidt rejoined the meeting. COMMISSIONER COMMENTS AND REPORTS None DIRECTOR'S REPORT • Community Development Director Warren Frace said that after the Planning Commission meeting, the Planning Commission will reconvene with City Council for a Joint Housing Meeting. • There is a 5th Tuesday in June, so there will be three weeks before the next Planning Commission meeting on July 7, 2009. At this time, there are no agenda items so the meeting might be cancelled. • The Boutique Events Study Session will be on June 18, 2009. ADJOURNMENT - 6:50 p.m. The next regular meeting of the Planning Commission is scheduled for July 7, 2009, at City Hall, Council Chambers, 6907 EI Camino Real, Atascadero. MINUTES PREPARD BY Annette Manier, Recording Secretary PC Draft Minutes of 06/16/09 Page 4 of 4 ITEM: 2 DATE: 8-4-09 Special Joint Meeting City Council Planning Commission WORKSHOP ON 2009 HOUSING ELEMENT UPDATE TUESDAY, JUNE 16, 2009 - 7:00 p.m. DRAFT MINUTES Mayor Pro Tem Fonzi called the meeting to order at 7:05 p.m. and Council Member Clay led the Pledge of Allegiance. ROLL CALL: Present: Council Members Clay, Kelley and Mayor Pro Tem Fonzi Planning Commissioners Schmidt, Colamarino, Sturtevant, Ward, Bentz, Vice Chairperson Moreno, and Chairperson Jack Absent: Mayor Beraud and Council Member O'Malley Staff Present: Community Development Director Warren Frace and Senior Planner Kelly Gleason Others Present: Annette Manier, Administrative Assistant INTRODUCTIONS CC/PC Draft Minutes 06/16/09 Page 1 of 2 Community Development Director Warren Frace explained the format for this meeting and introduced the meeting Facilitator, Lisa Wise. Ms. Wise gave a presentation and she and Community Development Director Warren Frace answered questions of the Council and Commission. PUBLIC COMMENT: Mike Jackson, Real Estate Broker from Atascadero, spoke about a project he was involved in on EI Corte. He was not satisfied how things went with staff and stated there was no continuity with the Planning Commission. He wants to know what has changed so that we can have affordable units. He said the City has a lot of projects that are sitting idle and investors want to know the value of the lots. The market isn't good for building. The City has an opportunity to step up and offer incentives. Chuck Treatch, JRW Group, owner of a 40 -unit mixed use project on EI Camino Real, did a project and said it has been very hard to do affordable housing utilizing credits. It has also been very difficult to get financing because the City does not have a Housing Element in place. He would encourage the City to move forward. Holland Brown, Atascadero resident, said all fees are too costly. He doesn't think you can build a 2nd unit for $300,000, the value of a moderate income house. Ron Beriman, Atascadero resident, talked about 2nd units and said there are a lot of people that would like to build 2nd units, but the fees are too high. He would like the City to find a way to accommodate people so the fees are more affordable. Mayor Pro Tem Fonzi closed the Public Comment period. City Council Members, Planning Commissioners, and staff had more discussion and addressed comments about the public comment portion of the meeting. ADJOURNMENT: Mayor Pro Tem Fonzi adjourned the meeting at 8:53 p.m. (Till►till =111:YS Annette Manier, Administrative Assistant CC/PC Draft Minutes 06/16/09 Page 2 of 2 ITEM NUMBER: 3 DATE: 8-4-09 Atascadero Planning Commission Staff Report - Community Development Department Callie Taylor, Associate Planner, 470-3448, ctaylor@atascadero.org PLN 2009-1334 Tree Removal Permit 9305 Pismo Avenue, Atascadero Zoo (City of Atascadero) SUBJECT: The proposed project includes a request to remove two (2) Valley Oaks and two (2) Black Walnuts totaling 76 -inches DBH in order to construct improvements at the Atascadero Zoo. RECOMMENDATION: Staff Recommends: Planning Commission adopt resolution PC 2009-0026 to allow the removal of four (4) native trees totaling 76 -inches DBH. Situation and Facts: 1. Property Owner: 2. Applicant: 3. Project Address 4. Certified Arborist: City of Atascadero, 6907 EI Camino Real, Atascadero, CA 93422 City of Atascadero, Public Works Department, 6907 EI Camino Real, Atascadero, CA 93422 9305 Pismo Ave., Atascadero, CA 93422 APN 031-362-003 Steven Alvarez, A&T Arborists, P.O. Box 1311, Templeton, CA 93465 5. General Plan Designation: Recreation (REC) 6. Zoning District: Recreation (L) 7. Site Area: 15.13 acres ITEM NUMBER: 3 DATE: 8-4-09 8. Existing Use: Atascadero City Zoo ANALYSIS: The City of Atascadero has planned improvements to the Atascadero Zoo, including a new bathroom, entry building with gift shop, and front entrance. The Public Works Department has submitted a building permit application which is currently under review for the proposed construction. The proposed improvements require the removal of four (4) native trees which total 76 -inches DBH. Trees 3 and 4 (a 30 -inch Valley Oak and a 4 -inch Black Walnut) are in fair health and required to be removed in order to construct the front entry building and ticket booth. Trees 5 and 7 (an 8 -inch Valley Oak and a 34 - inch Black Walnut) are in very poor heath. These trees are interfering with future improvements to the front animal exhibit and are being recommended for removal due to their poor condition. The applicant has submitted an Arborist Report and Tree Protection Plan consistent with the Atascadero Native Tree Ordinance. The Atascadero Native Tree Ordinance allows for the removal of native trees over 24 -inches DBH with a Tree Removal Permit and payment into the Tree Mitigation Fund. Native trees larger than 24 -inches DBH require approval from the Planning Commission prior to removal. Three other native trees on site will have minor impacts resulting from the proposed zoo improvements. Impacts range from 10% to 20%. Tree protection fencing shall be installed around these trees per the arborist's Tree Protection Plan. Site Plan: Proposed Zoo Improvements & Tree removals m M ^:'!•� • �« "/ Yfn fr �/,s g, f,l�`" ; �Y1 1 Qs Im i'll EllLimt ITEM NUMBER: 3 DATE: 8-4-09 Tree Mitigation Proposed removals shall be mitigated according to the Atascadero Native Tree Ordinance. The applicant (the City) shall either pay $2,533.33 into the native tree mitigation fund, or replant 51, native 5 -gallon trees on-site. A combination of replanting on-site and payment of the remaining fees is also allowed. Evergreen Native Trees (inches) Deciduous Native Trees (inches) Totals dbh notes dbh notes 1 1 30 tree #3 2 2 8 tree #5 3 3 4 -inches tree #4 4 4 34 -inches tree #7 5 5 6 6 Tota I 0 -inches Total 76 -inches 76 -inches Mitigation Requirement req'd tree replacements: 0 five gal trees req'd tree replacements: 51 five gal trees 51 five gal trees Proposed Replanting 0 five gal trees Proposed Replanting 0 five gal trees 0 five gal trees 0 box trees (24") 0 box trees (24") 0 box trees (24") Remaining Mitigation 0 five gal trees Remaining Mitigation 51 five gal trees 51 five gal trees / t Tree Fund Payment: $ Tree Fund Payment: $ 2,533.33 $ 2,533.33 FINDINGS: In considering any tree removal request, at least one of the required findings must be made. Staff has identified the following finding as appropriate for the application request. The tree is obstructing proposed improvements that cannot be reasonably designed to avoid the need for tree removal, as certified by a report from the site planner and determined by the Community Development Department based on the following factors: a. Early consultation with the City, b. Consideration of practical design alternatives, c. Provision of cost comparisons (from applicant) for practical design alternatives, d. If saving tree eliminates all reasonable use of the property, or e. If saving the tree requires the removal of more desirable trees. ITEM NUMBER: 3 DATE: 8-4-09 CONCLUSIONS: The proposed project consists of an application to remove four (4) native trees totaling 76 -inches DBH in order to do improvements to the Atascadero Zoo. As two of these trees are over 24 -inches DBH, the proposed removals are being presented for Planning Commission determination, consistent with the Atascadero Native Tree Ordinance. The removed trees shall be mitigated by replanting or payment of fees into the tree fund. ALTERNATIVES: 1. The Commission may approve the project with additional or revised project conditions. 2. The Commission may deny the project if it is found that the required findings cannot be made. The Commission's motion to deny must include a finding basis for denial. 3. The Commission may continue the hearing and refer the item back to staff for additional information or analysis. Direction should be given to staff and the applicant on required information. ATTACHMENTS: Attachment 1 — Location Map (General Plan & Zoning) Attachment 2 — Aerial Photo Attachment 3 — Arborist Report Attachment 4 — Draft Resolution PC 2009-0026 ITEM NUMBER: 3 DATE: 8-4-09 ATTACHMENT 1: Location Map (General Plan and Zoning) PLN 2009-1334 / TRP 2009-0132 9305 Pismo Avenue Zoning: Recreation (L) Land Use Designation: Recreation (REC) ATTACHMENT 2: Aerial Photo 9305 Pismo Avenue qo�d 1 ITEM NUMBER: 3 DATE: 8-4-09 Project Location: 9305 Pismo Ave. 9 ITEM NUMBER DATE: 8-4-09 ATTACHMENT 3: Arborist Report A do T AR13OR=STS p,0. BOX 1311 TEMPLETON, CA 93465 (845) 434-0131 July 9, 2009 REECEIVED City of Atascadero David M. Athey, P.E. ,AUL 14 2009 Deputy Public Works Director, Engineering 6907 El Camino Real Gommum TY DEVEi.OPME#1 i Atascadero, CA 93422 Re; Tree Protection Plan for Zoo Entrance Improvements. This Tree Protection Plan is for the location stated above. The Improvementi will be impacting seven native trees, one live oak (Quercus agrifrrlia) three black walnuts (Juglands hindsh Jeps) and three valley oaks (Quercus lobata). Four of the trees are being requested for removal, two valley oaks and two black walnuts. Impact to the remaining native trees will be little to none if the plans are followed as drawn. It is the responsibility of the owner/agency to provide a copy of this tree protection plan to any and all contractors and subcontractors that work within the drip line of the native trees. It is highly recommended that each contractor sign and acknowledge this tree protection plan. The trees impacted by this project are numbered and identified on both the grading plan and the tree protection spreadsheet. Trees are numbered on the grading plans and in the field with an aluminum tag. Tree protection fencing is shown on the grading plan. In the field trees to be saved have yellow tape. Trees suggested for removal have red tape. Tree Rating System. A rating system of 1-10 was used for visually establishing the overall condition of each tree on the spreadsheet. The rating system is defined as follows: Rating Condition 0 Deceased I Evidence of massive past failures, extreme disease and is in severe decline. 2 May be saved with attention to class 4 pruning, insect/pest eradication and future monitoring. 3 Some past failures, some pests or structural defects that may be mitigated by class IV pruning. ITEM NUMBER: 3 DATE: 8-4-09 4 May have had minor past failures, excessive deadwood or minor structural defects that can be mitigated with pruning. 5 Relatively healthy tree with little visual structural and or pest defects. 6 Healthy tree that probably can be left in its natural state. 7-9 Have had proper arboricultural pruning and attention or have no apparent structural defects. 10 Specimen tree with perfect shape, structure and foliage in a protected setting (i.e. park, arboretum). The following mitigation measures/methods must be fully understood and followed by anyone working within the drip line of any native tree. Any necessary clarification will be provided by us (the arborists) upon request. 1. Fencing: The proposed fencing shall be shown in orange ink on the grading plan. It must be a minimum of 4' high chain link, snow or safety fence staked at the edge of the drip line or line of encroachment for each tree or group of trees. The fence shalt be up before any construction or earth moving begins. The owner shall be responsible for maintaining an erect fence throughout the construction period. The arborist(s), upon notification, will inspect the fence placement once it is erected. After this time, fencing shall not be moved without arborist inspection/approval. If the orange plastic fencing is used, a minimum of four zip ties shall be used on each stake to secure the fence. All efforts shall be made to maximize the distance from each saved tree. 2. Soil Aeration Methods: Soils within the drip line that have been compacted by heavy equipment and/or construction activities must be returned to their original state before all work is completed. Methods include water jetting, adding organic matter, and. boring small holes with an auger (18" deep, 2-3' apart with a 24" auger) and the application of moderate amounts of nitrogen fertilizer. The arborist(s) shall advise. 3. Chip Mulch: All areas within the drip line of the trees that cannot be fenced shall receive a 4-6" layer of chip mulch to retain moisture, soil structure and reduce the effects of soil compaction. 4. Trenching Within Drip Line: All trenching within the drip line of native trees shall be hand dug, augured or bored (for utilities). All major roots shall be avoided whenever possible. All exposed roots larger than I" in diameter shall be clean cut with sharp pruning tools and not left ragged. A Mandatory meeting between the arborists and grading contractor(s) must take place prior to work start. 5. Grading Within The Drip Line: Grading should not encroach within the drip tine unless authorized. Grading should not disrupt the normal drainage pattern around the trees. Fills should not create a ponding condition and excavations should not leave the tree on a rapidly draining mound. G. Exposed Roots: Any exposed roots shad be re-covered the same day they were exposed. If they cannot, they must be covered with burlap or another suitable material and wetted down 2x per day until re -buried. ITEM NUMBER: 3 DATE: 8-4-09 7. Paring Within The Drip Line: Pervious surfacing is preferred within the drip line of any native tree. If pavers are required, the areas are outlined on the grading plans. Pagers must be interlocking with a minimum of 10% void space backfilled with pea gravel. Fabric shall be permeable. The % slope of the driveway may prohibit the engineering of pavers for this project. S. Equipment Operation: Vehicles and all heavy equipment shall not be driven under the trees, as this will contribute to soil compaction. Also there is to be no parking of equipment or personal vehicles in these areas. All areas behind fencing are off limits unless pre -approved by the arborist. 9. Existing 'Surfaces: The existing ground surface within the drip line of all oak trees shall not be cut, filled, compacted or pared, unless shown on the grading plans and approved by the arborist. 10. Construction Materials And `'Waste: No liquid or solid construction waste shall be dumped on tate ground within the drip tine of any native tree. The drip line areas are not for storage of materials either. 11. Arborist Monitoring: An arborist shall be present for selected activities (trees identified on spreadsheet and items bulleted below). The monitoring does not necessarily have to be continuous but observational at times during these activities. It is the responsibility of the owner(s) or their designee to inform us prior to these events so we can make arrangements to be present. It is the responsibility of the owner to contract (prior to construction) a locally licensed and insured arborist that will document all monitoring activities. + Pre -construction fence placement any utility or drainage trenching within any drip line • All grading and trenching near trees requiring monitoring on the spreadsheet + All driveway construction activities Tree removal operations 12. Pre -Construction Meeting: An on-site pre -construction meeting with the Arborist(s), Owner(s), Planning Staff, and the earth moving team shall be required for this project. Prior to final occupancy, a letter from the arborist(s) may be required verifying the health/condition of all impacted trees and providing any recommendations for any additional mitigation. The letter shall verify that the arborist(s) were on site for all gradient, and/or trenching activity that encroached into the drip line of the selected native trees, and that all work done in these areas was completed to the standards set forth above. 13. Pruning: Class 1 pruning includes deadwood removal along with selective thinning to lesson wind resistance. Class 4 pruning includes -Crown reduction pruning shall consist of reduction of tops, sides or individual limbs. A trained arborist shall perform all pruning. No pruning shall take more than 25% of the live crown of any ITEM NUMBER DATE: 8-4-09 native tree. Any trees that may need pruning for road/home clearance shall be pruned prior to any grading activities to avoid any branch tearing. 14. Landscape: All landscape under the drip -line shall be drought tolerant or native varieties. Lawns shall be avoided. All irrigation trenching shall be routed around drip lines; otherwise above ground drip -irrigation shall be used. It is the owner's responsibility to notify the landscape contractor regarding this mitigation. 15. Utility Placement: All utilities shall be placed down the road/driveway and when possible outside of the drip lines. The arborist shall supervise trenching within the drip line. All trenches in these areas shall be exposed by air spade or hand dug with utilities routed under/over the roots. The included spreadsheet includes trees listed by number, species and multiple stems if applicable, diameter and breast height (4.5% condition (scale from poor to excellent), status (avoided, impacted, removed, exempt), percent of drip line impacted, mitigation required (fencing, root pruning, monitoring), construction impact (trenching, grading), recommended pruning and individual tree notes. If all the above mitigation measures are followed, we feel there will be no additional long-term significant impacts to the remaining native trees. Please let us know if we can be of any future assistance to you for this project. Steven G. Alvarez Certified Arborist #WC 0511 ITEM NUMBER DATE: 8-4-09 Lu LL1 Lu W w C) z �rYz uJ w L1J �- FL z ¢ 0 ¢ fL Cl Z L) J' U U> z w Z Z W 0 < CC ¢ Q Of (r w Q' w w Q U.i col wwCn2E0- Z N LLJ Lia W w w LLJ w z © Z Z z z z z Z z w Q Z Z Z Z Z Z Z o CL d ' r C p ul r z z°' 0 O 0 o o 0 0 4 0 0 z z Z z Z o O W ` LLJ p Z 0 U) ILu W W LIJ w W z 4 o U) cr 0Q L� co �� o L< L` Z o z o Z C) Z C) z p x g 4 , C2 Lu < h� z z z z ZCk C[! L) a- [� = 5 a s a N U}< 0� FF ¢ U wLD m L- 111 14 0 [] H E p o C Gam. z P $ ur ^ ix C 6 LuV LL! f r G c O 0? IrQ \ o 3 o a ! a o a_ LL3 CO ,1 a_ a N N C? C7 4 C7 p I C? p Lu Id 9 F :n Z U~ W 0 Z ff d ❑ w b L3i F t O Vr Cti] •7 f'J tt7 s- u U W a ei S Z Q d j O O M d O °o co[f7 a v a s o o C W-� E ° a U llJ (} V d � c) Q 7 7 0 [1 a d u Lui� `l m > > F (L w W a i3J ruj nI`- F' ITEM NUMBER: 3 DATE: 8-4-09 ATTACHMENT 4: Draft Resolution PC 2009-0026 PLN 2009-1334 / TRP 2009-0132 DRAFT RESOLUTION NO. PC 2009-0026 RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ATASCADERO, CALIFORNIA, APPROVING PLN 2009-1334 / TRP 2009-0132, TO ALLOW THE REMOVAL OF FOUR (4) NATIVE TREES TOTALING 76 -INCHES DBH AT THE ATASCADERO ZOO (CITY OF ATASCADERO PUBLIC WORKS) WHEREAS, an application for a Tree Removal Permit was received from the City of Atascadero, Public Works Department, 6907 El Camino Real, Atascadero, CA 93422, (Property Owner/Applicant), to allow the removal of four (4) native trees totaling 76 -inches DBH at the Atascadero Zoo for proposed improvements; and, WHEREAS; the Planning Commission reviewed the proposed Tree Removal application on August 4, 2009, and considered testimony and reports from staff, the applicants, and the public; and, NOW THEREFORE, the Planning Commission of the City of Atascadero, California takes the following actions: SECTION 1. Findings for Approval of Tree Removal Permit. The Planning Commission finds as follows: ■ The tree is obstructing proposed improvements that cannot be reasonably designed to avoid the need for tree removal, as certified by a report from the site planner and determined by the Community Development Department based on the following factors: a. Early consultation with the City, b. Consideration of practical design alternatives, c. Provision of cost comparisons (from applicant) for practical design alternatives, d. If saving tree eliminates all reasonable use of the property, or e. If saving the tree requires the removal of more desirable trees. ITEM NUMBER: 3 DATE: 8-4-09 SECTION 2. Approval. The Planning Commission of the City of Atascadero, in a regular session assembled on August 4, 2009 resolved to approve Tree Removal Permit 2009- 0132 to, subject to the following: EXHIBIT A: Conditions of Approval EXHIBIT B: Site Plan EXHIBIT C: Tree Mitigation Chart On motion by Commissioner , and seconded by Commissioner , the foregoing resolution is hereby adopted in its entirety by the following roll call vote: AYES: ( ) NOES: ( ) ABSENT: ( ) ADOPTED: ABSTAINED: CITY OF ATASCADERO, CA Sandy Jack Planning Commission Chairperson ATTEST: Warren Frace Planning Commission Secretary ITEM NUMBER DATE: 8-4-09 EXHIBIT A: Conditions of Approval / Mitigation Monitoring PLN 2009-1334 / TRP 2009-0132 Conditions of Approval Timing Responsibility /Monitoring PLN 2009-1334 / TRP 2009-0132 FM; Fral Map BL: Business License PS: Planning Services GP: Grading Permit BS: Building Services Address: 9305 Pismo Ave. BP: Building Permit FI: Final Inspection FD: Fire Department PD: Police Department TO: Temporary Occupancy CE: City Engineer F0: Final Occupancy WW: wastewater CA: City Attorney Standard Planning Conditions 1. The approval of this application shall become final, subject to the completion of FM PS the conditions of approval, fourteen (14) days following the Planning Commission approval unless prior to the time, an appeal to the decision is filed as set forth in Section 9-1.111(b) of the Zoning Ordinance. 2. The applicant and/or subsequent owners shall defend, indemnify, and hold On going PS harmless the City of Atascadero or its agents, officers, and employees against any claim or action brought to challenge an approval by the City, or any of its entities, concerning the proposed development. 3. Tree protection fencing as outlined in the arborist report, prepared by A&T GP/FM PS Arborists, shall be implemented prior to and during all construction activity. 4. The applicant shall mitigate the removal of the four native trees by paying BP PS into the tree mitigation fund in accordance with the requirements of the Atascadero Native Tree Ordinance (see Exhibit C). The mitigation fees shall be paid prior to tree removals. ITEM NUMBER DATE: 8-4-09 EXHIBIT B: Site Plan EXHIBIT C: Tree Mitigation Chart Evergreen Native Trees (inches) dbh notes 1 2 3 4 5 6 Tota I 0 -inches Mitigation Requirement req'd tree replacements: Proposed Replanting 0 five gal trees 0 five gal trees 0 box trees (24") ITEM NUMBER: 3 DATE: 8-4-09 Deciduous Native Trees (inches) dbh notes 1 30 tree #3 2 8 tree #5 3 4 -inches tree #4 4 34 -inches tree #7 5 6 Total 76 -inches req'd tree replacements: Proposed Replanting Remaining Mitigation 0 five gal trees Remaining Mitigation Tree Fund Payment: $ Tree Fund Payment: $ Totals 76 -inches 51 five gal trees 51 five gal trees 0 five gal trees 0 five gal trees 0 box trees (24") 0 box trees (24") 51 five gal trees X51 five gal trees 2,533.33 1 $ 2,533.33 I Mitigation: Payment of $2,533.33 into the native tree mitigation fund or Replant 51, native 5 -gallon trees on-site or Combination thereof T:\- 09 PLNs\PLN 2009-1334 TRP Zoo\PLN 2009-1334 SR.nm.doc ITEM NUMBER: 4 DATE: g -4 -ng Atascadero Planning Commission Staff Report - Community Development Department Callie Taylor, Associate Planner, 470-3448, ctaylor@atascadero.org Informational Report AB 811: Clean Energy Financing Program SUBJECT: Provide the Planning Commission an informational report regarding Assembly Bill 811 (AB 811) and the City of Atascadero's progress towards creating a Solar Power and Clean Energy Financing Program. DISCUSSION: Assembly Bill 811, which was signed into law by Governor Arnold Schwarzenegger on July 21, 2008, allows municipal governments to provide long term financing to property owners for clean/renewable energy installations and energy efficiency retrofits. The financing program eliminates the large upfront cost of installing solar and creates an installment plan of regular, smaller payments that could be very close to the amount saved on electricity bills. How Does AB 811 Work? City or county creates type of land -secured financing district Property owners voluntarily sign-up for financing and install energy projects Proceeds from Clean Energy Bond provided to property owner to pay for energy project Property owner repays bond through property tax bill over —20 years ITEM NUMBER: 4 DATE: g -4 -pg First, the City sets up a Citywide Financing District (assessment or a community facilities district) for the program. The capital costs of the solar energy systems are funded with the sale of municipal bonds. Property owners who want to participate in the program agree to annex their property into the Financing District. The property owner uses the funds provided by the Financing District to hire a contractor and install the solar system or other clean energy upgrades. The Financing District then makes an assessment on the property taxes which is used to repay the loan, plus interest, and ongoing administrative fees, over a fixed term (typically around 20 years.) If the property is sold during the repayment period, any subsequent property owners are obligated to pay the assessment. The program is completely voluntary, so property tax expenses remain unchanged for those properties and owners that choose not to participate. By providing the financing and fixing it to the property, these types of clean energy financing programs are designed to remove the primary barriers to installation of solar panels and other energy efficiency retrofits, which can include the large upfront installation cost and concerns that the property may be sold before the system and upgrade investments pay off through utility bill savings. Most potential property owners need some form of financing in order to make the upfront investment for a solar system and associated energy retrofits. Additionally, with the recent tightening of credit markets, property equity and consumer financial products have become harder to obtain for many property owners. Therefore, AB 811 offers accessible financial options and lower barriers to enter into the sustainable energy market so that more residents and commercial property owners can implement renewable energy and energy efficiency projects. This will in turn help to change the City's energy consumption patterns and meet the City's clean energy goals throughout the community, while promoting green jobs and stimulating the local economy. Typical Residential System Photovoltaic (PV) refers to the process of turning sunlight into electricity. PV systems capture energy from the sun and convert it into electric energy. Due to Atascadero's inland location in San Luis Obispo County, the City is very well situated to take advantage of solar energy systems. The following are details of the AB 811 program: ■ —$32,000 Solar System approximate 3.5kw system ■ Rebates of $7,000 ■ Upfront Administration fee of —$550 (included in financed amount) ■ Interest rate of —6.75% (Fixed) ■ 20 -year special tax ■ Equivalent monthly property tax cost: —$210 month (before income tax deduction) ITEM NUMBER: 4 DATE: R-4-oA Property Owner Benefits • AB 811 solves financial constraints encountered by property owners interested in installing solar systems. • No upfront cost to the property owner (other than deposit for reservation, which is around $200). • Incremental property tax payments are low and fixed for 20 years (approximately $200 a month). • Property tax transfers to the new owner when the property is sold. Therefore, if the current owner moves in five years, they end up only paying for the five years of taxes, the next owner will pay the remaining 15 years. • Reduces utility bills. Benefits to the City of Atascadero • Helps meet climate and energy goals under AB 32, SB 375, the Mayor's Climate Protection Agreement and ICLEI. • Program and consultant costs can be paid out of bond proceeds. • No liability or other exposure to a City's General Fund. • Stimulates the local economy and promotes the creation of new green jobs. City Council Resolution to Create Solar Power District: On May 26, 2009, the Atascadero City Council approved a resolution declaring Atascadero's support of renewable energy and encouraging the installation of rooftop solar systems and energy efficiency improvements throughout the community. The City Council authorized support for the creation of a funding assessment district consistent with AB 811, and directed City staff to issue a request for proposals to solicit professional services to create and administer a self -funding, clean energy and energy efficiency program and assessment district consistent with AB 811. A copy of the May 26th City Council staff report and resolution is attached to this report. Request for Consultant Proposals On June 25, 2009, the City sent out Request for Proposals (RFP's) in search of a consultant to develop a Municipal Clean Energy Program and Financing District for the City. The City is looking for a consultant to provide technical assistance for the creation and administration of a self -funding, Municipal Clean Energy Program and Financing District consistent with Assembly Bill 811. The consultant will be responsible for program administration including, but not limited to, marketing, audits, enrollment, funding mechanisms, and public outreach. The City is interested in a program that provides ITEM NUMBER: 4 DATE: R-4-oA opportunities for solar energy generation installations and energy efficiency retrofits for both the residential and commercial properties in the City of Atascadero. The City will not be providing funding or credit for this program and successful RFP respondents will demonstrate access to capital. Additionally, the City's ability to staff and provide administrative support for new programs is limited. Therefore, the City is looking for a consultant to create the Financing District, provide the funding source, and administer the ongoing program. Program costs would be built into the program and the loans. Staff understands that there are several firms and consultants throughout California and the U.S. which specialize in creating and administering these types of programs with little to no cost to the City. The consultant's proposals are due by July 31, 2009. A City Selection Committee will review the proposals, and the most qualified consultants will be invited for an interview with the Committee. Following the interviews, the Committee will select the consultant demonstrating the best qualifications and ideas for this effort, and recommend approval of the consultant selection to the City Council. CONCLUSION: AB 811 allows municipal governments to provide long term financing to property owners through financing districts for clean/renewable energy installations and energy efficiency retrofits. AB 811 is designed to eliminate the large upfront cost of installing solar by creating an installment plan of regularly smaller payments (paid through property taxes over a 20 -year period) that could be very close the amount saved on electricity bills. The Clean Energy Program would be completely voluntary for property owners. On May 26, 2009, the Atascadero City Council authorized support for the creation of a funding assessment district consistent with AB 811, and directed City staff to issue a request for proposals to solicit professional services to create and administer a self - funding, Clean Energy and Energy Efficiency Program and Assessment District consistent with AB 811. An RFP was distributed on June 25, 2009, and proposals will be reviewed after the final submittal date so that the City of Atascadero can begin moving forward with the creation of a Clean Energy Program and Financing District in the near future. ATTACHMENTS: Attachment 1: 5/26/09 City Council Staff Report: Solar Power Financing Program Attachment 2: RFP for AB 811 Consultant, City of Atascadero ITEM NUMBER DATE: 8-4-09 ATTACHMENT 1: 5/26/09 City Council Staff Report: Solar Power Financing Program See Following ITEM NUMBER: 4 DATE: 8-4-09 ATTACHMENT 2: City of Atascadero Request for Proposal: CONSULTANT TO DEVELOP A MUNICIPAL CLEAN ENERGY PROGRAM AND FINANCING DISTRICT CONSISTENT WITH AB 811 See Following T:\- CEQA\AB 811 - Solar District\PC overview AB 811.SR. 8 4 09.ct.doc ITEM NUMBER: DATE: Atascadero City Council Staff Report — Community Development Department Solar Power Financing Program Issues and Options RECOMMENDATION: Council adopt draft Resolution A endorsing solar power generation in Atascadero and direct staff to issue a request for proposal for a consultant to create a solar power financing district in Atascadero. DISCUSSION: Background: Solar energy is recognized as a reliable and tested technology that provides clean and renewable electrical power. For decades, the cost of installing solar power was not competitive with purchasing power from the electrical grid. However, over the years, the cost of traditional electricity has risen and the cost of solar technology has declined to the point that they are close to parity. In addition, solar is a renewable, green energy source that has been identified as an important component in addressing the issue of climate change related to greenhouse gas (GHG) emissions. The State of California has taken a leadership role in the GHG issue with the adoption of Assembly Bill 32 (AB 32) in 2006. AB 32 requires the State to reduce GHG emission to 1990 levels by the year 2020 and then to reduce GHG to 80% below 1990 levels by 2050. One tool that the State has created to help achieve this goal is AB 811 the Clean Energy Finance Program. AB 811 is a financing mechanism that allows the cost of installing solar power on single family residential dwellings to be funded with bonds that are repaid as part of the property taxes over 20 years. This eliminates the large upfront cost of installing solar and creates an installment plan of regularly smaller payments that could be very close the amount saved on electricity bills. Due to Atascadero's inland location in San Luis Obispo County, the City is very well situated to take advantage of solar energy systems. The maps on the following page show that Atascadero is located in one of the better areas in the United States for photovoltaic solar generation. ITEM NUMBER: DATE: Photovoltaic (PV) refers to the process of turning sunlight into electricity. PV systems capture energy from the sun and convert it into electric energy 1 Individual photovoltaic (PV) cells are connected to panels. Solar panels convert sunlight into direct current (DC) electricity. 2 Inverter converts DC into alternating current (AC) for electricity in the home. 3 The utility meter records the net amount of energy generated through the PV system. When you're creating more electricity than you're using. your meter will spin backwards and the excess electricity is sent to the electric grid. This helps to offset the cost of your electricity usage at night or on cloudy days when your system is not producing. Source: PG&E ITEM NUMBER: DATE: 4� K n Atascadero is well located to take advantage of solar energy systems. 9 ITEM NUMBER: DATE: Analysis: What is AB 811 Solar Financing? AB 811 Solar Financing is financing model that is beginning to be implemented by cities in California and allows property owners to install solar systems with no upfront cost. Currently over two dozen California cities are considering the program. The solar systems are financed by taxable municipal bonds which provide the property owners with low interest rates that are fixed for 20 years. It appears a city can implement the program with minimal upfront costs by retaining a consultant that sets up the funding district and is compensated with revenue from the bond issuance. The program is completely voluntary and would likely be available to all single-family properties. The benefit of the program is a dramatic reduction in energy costs and boost the local solar market. How Does AB 811 Work? The capital costs of solar energy systems are funded with the sale of municipal bonds. The bonds are repaid by proceeds from a new line -item on participating property owners' tax bills over 20 years. The program is voluntary so property tax expenses remain unchanged for those who choose not to participate. Typical Residential System ■ $32,000 Solar System approximate 3.5kw system ■ Rebates of -$7,000 ■ Upfront Administration fee of $550 (included in financed amount) ■ Interest rate of 6.75% (Fixed) ■ 20 -year special tax ■ Equivalent monthly property tax cost: -$210 month (before income tax deduction) County Tax Collector Special Taxes/ Assessments Special Taxes/ Assessments Special Taxes/ r Solar and Assessments Utility CSI Rebate Home- Installer energy 4 0 owner efficiency Bonds Bond Proceeds Bond Proceeds Installation Costs ITEM NUMBER: DATE: Property Owners Benefits • AB 811 solves financial constraints encountered by property owners interested in installing solar systems. • No upfront cost to the property owner (other than deposit for reservation [around $200]). • Incremental property tax payments are low and fixed for 20 years (approximately $200 a month). • Property tax transfers to the new owner when the property is sold. Therefore, if the current owner moves in five years, they end up only paying for the five years of taxes, the next owner will pay the remaining 15 years. • Reduces utility bills. Benefits to the City of Atascadero • Helps meet climate and energy goals under AB 32, SB 375, the Mayor's Climate Protection Agreement and ICLEI. • Program and consultant costs can be paid out of bond proceeds. • No liability or other exposure to a city's general fund. • Stimulates the local economy and promotes the creation of new green jobs. Potential Issues • Limited staff resources. • City needs to determine who can participate and what types of solar systems can be included. • Limits must be set on the size of eligible systems and the amount of funding available per property. • The City will have to select a consultant to create the system. Staff is recommending that an RFP be circulated to allow all interested firms to submit proposals. • The City will need to determine the requirements for contractors installing systems. • Long term administration costs. ITEM NUMBER: DATE: (-.nnrh minn- There appears to be a number of significant benefits of creating an AB 811 solar financing program to the community. The program would be consistent with many to the Council's current economic and environmental priorities. Staff is recommending that the Council adopt the attached resolution taking a clear position in support of developing local solar energy systems. The next step in moving the process along would involve hiring a consultant to develop the program. Typically, these consulting firms do not charge the City for their services but rather recoup their costs through the bond sales. Staff is recommending that the City issue an RFP for professional services in order to allow all interested firms an opportunity to compete for the work. FISCAL IMPACT: • Consultant and promotion costs are expected to be under $1000. • Staff costs will likely exceed 100 hours and require long term administration from the finance department. ALTERNATIVES: The City Council should send this item back to staff for additional analysis if there are any significant questions or concerns with the proposed program. ATTACHMENTS: Draft Resolution A ITEM NUMBER: DATE: DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING ATASCADERO'S SUPPORT FOR SOLAR ENERGY AND ENCOURAGING THE INSTALLATION OF ROOFTOP SOLAR SYSTEMS THROUGHOUT THE COMMUNITY WHEREAS, solar energy is a clean and renewable source of energy that does not result in the emission of greenhouse gases; and, WHEREAS, Atascadero is located in a region that is especially well suited to utilize solar power due to the abundant sunshine and clear days; and, WHEREAS, the State of California has mandated that greenhouse gas emissions be reduced to 1990 levels by the year 2020; and, WHEREAS, the City of Atascadero has endorse the Mayor's Climate Protection Agreement and is a member of ICLEI which both encourage the expanded use of solar energy; and, WHEREAS, the installation of rooftop solar systems provides a number of benefits including saving fossil fuel generated electricity, reducing homeowners electrical bills, and stimulating local green energy jobs and industries; and, WHEREAS, the State of California has passed Assembly Bill 811 that created a mechanism to allow local assessment districts to fund individual rooftop solar systems; and, NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero to: Strongly endorses the installation of rooftop solar systems throughout the City of Atascadero and supports creating a funding assessment district consistent with Assembly Bill 811; and, Direct City staff to issue a request for proposal to solicit professional services to create and administer a self funding, solar assessment district consist with Assembly Bill 811. ITEM NUMBER: DATE: On motion by Council Member and seconded by Council Member , the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO in Ellen Beraud, Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian Pierik, City Attorney CITY OF ATASCADERO REQUEST FOR PROPOSAL: CONSULTANT TO DEVELOP A MUNICIPAL CLEAN ENERGY PROGRAM AND FINANCING DISTRICT CONSISTENT WITH AB 811 FOR THE CITY OF ATASCADERO, CALIFORNIA CITY RFP NUMBER 2009-003 CITY OF ATASCADERO 6907 EL CAMINO REAL, CITY CLERK ATASCADERO, CA 93422 PH: 805 461-5000 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District Proposals Requested by: City of Atascadero Community Development Department 6907 EI Camino Real Atascadero, CA 93422 Phone: (805) 461-5000 Fax: (805) 461-7612 Dated: June 25, 2009 Proposals due: July 31, 2009 by 5:00 p.m. \\Cityhall\cdvlpmnt\- Contract Management\AB 811 consultant\AB 811 consultant RFP-JI.docx Page 2 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District REQUEST FOR PROPOSAL CONSULTANT - MUNICIPAL CLEAN ENERGY PROGRAM AND FINANCING DISTRICT I. Introduction The City of Atascadero is requesting proposals from qualified consulting firms to assist the City in developing a municipal clean energy program and financing district in accordance with Assembly Bill 811. Assembly Bill 811, which was signed into law by Governor Arnold Schwarzenegger on July 21, 2008, allows municipal governments to provide long term financing to property owners for clean/renewable energy installations and energy efficiency retrofits. The City is looking for a consultant to provide technical assistance for the creation and administration of a self -funding, municipal clean energy program and financing district consistent with Assembly Bill 811. The consultant will be responsible for program administration including but not limited to marketing, audits, and enrollment, funding mechanisms, and public outreach. The City is interested in a program that provides opportunities for solar energy generation installations and energy efficiency retro -fits for both the residential and commercial properties in the City of Atascadero. II. Background The City of Atascadero is located in San Luis Obispo County, halfway between Los Angeles and San Francisco. The City lies along the Highway 101 corridor and was incorporated in 1979. Approximately 26 square miles in area, the population of the City is 27,000 persons. The City of Atascadero has endorsed the Mayor's Climate protection agreement and is a member of ICLEI, which both encourage clean energy and energy efficiency. On May 26, 2009, the Atascadero City Council approved a resolution declaring Atascadero's support of renewable energy and encouraging the installation of rooftop solar systems and energy efficiency improvements throughout the community. The City Council authorized support for the creation of a funding assessment district consistent with Assembly Bill 811, and directed City staff to issue a request for proposal to solicit professional services to create and administer a self -funding, clean energy and energy efficiency program and assessment district consistent with Assembly Bill 811. \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 3 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District III. Preliminary Scope of Work In order to implement a municipal clean energy program and financing district, the City of Atascadero will consider consultant's proposals for program administration and financing. Recently, the cities of Palm Desert, Berkeley, San Francisco, San Diego, and others have worked to craft new financing options for clean and sustainable energy projects for their residents. Property owners who participate in these programs agree to annex their property to an assessment or a community facilities district. The district then makes an assessment on the property taxes which is used to repay the loan, plus interest and on-going administrative fees, over a fixed term typically around 20 years. If the property is sold during the repayment period, any subsequent property owners are obligated to pay the assessment. By providing the financing and fixing it to the property, these types of programs are designed to remove the primary barriers to installation of solar panels and other energy efficiency retrofits, which can include the large up -front installation cost and concerns that the property may be sold before the system and upgrade investments pay off through utility bill savings. Most potential participants need some form of financing in order to make the up -front investment for the system and associated energy retro -fits. Additionally, with the recent tightening of credit markets, property equity and consumer financial products have become harder to obtain for many property owners. The City is, therefore, seeking ways to offer accessible financial options and lower barriers to entry in the sustainable energy market so that more residents and commercial property owners can implement renewable energy and energy efficiency projects. This will in turn help to change the City's energy consumption patterns and meet the City's clean energy goals throughout the community, while promoting green jobs and stimulating the local economy. The City's work thus far has identified two key program tasks for which we are now seeking outside expertise: finance and administration. Project Administration The City seeks a consultant that can perform the administrative tasks required for this program in a cost effective and efficient manner. These tasks are further described below and include borrower and installer outreach, the processing of borrower applications, verification of conditions to disbursement, and any other activities required under the respondent's proposed project approach. The program should include provisions to give preference to local contractors and installers of solar and energy retro -fit systems which meet the program requirements in order to provide local green jobs and stimulate the local economy. \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 4 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District Project Financing The City is looking for a consultant to create an assessment district, community facilities district, or other funding mechanism and propose an associated funding source to provide financial backing for disbursement of funds. The funding would be repaid through the special tax collected over a 20 -year period and would need to be established at a fixed rate. The rate cannot change after the original special tax consent is made. The financing district and program administration for this lending relationship can be structured in a number of ways. The City is open to other innovative approaches to these and other issues raised by the proposed solar and clean energy financing program. Firms are encouraged to either perform both the administrative and financing functions in-house, partner with other firms to perform these functions, or suggest yet other alternatives for the structuring the program. The City will not be providing any funding or credit for this program and successful respondents will demonstrate access to capital. Additionally, the City's ability to staff and provide administrative support to this project is limited. IV. Required Tasks Subject to refinement and mutual agreement, the consultant will need to provide a description and timeline of how the following tasks would be accomplished: Task 1: Creation and Funding of a Clean Energy Financing District The City is looking for consultants to propose funding options for a clean energy financing district. The loans or bonds will be secured by a special tax levy on individual landowners' property tax bill. The City's preference is to limit its funding obligation for any such reserve. Responses to this RFP may propose other privately funded options, and provide information on the size and amount of the fund and how it would improve loan pricing for the ultimate borrowers. The interest rate on each loan or bond shall be a fixed rate at a term of up to approximately 20 years, as determined through program development and consultant recommendations: In addition, financial services required to be provided pursuant to this RFP will include, but are not limited to, the following services. • Creation of an assessment district, community facilities district, or other funding mechanism in order to provide funding for solar installation and energy efficiency retrofits with repayment through the County tax assessment; • Recommend, develop, and implement a comprehensive marketing plan to reach potential investors to obtain the lowest practicable interest rate; • Recommend, develop, and implement strategies to achieve the widest competition for bond purchase and/or loan underwriting; • Provide financial/credit market analysis and outlook to justify proposed financing structure, amortization, takedown/fees, and interest rate. Manage the marketing and sale of the bonds and/or underwriting of loans; and • Assist in the coordination of loan and/or bond closings. \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 5 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District Task 2: Administration of Loan Program In order to limit City administrative costs and staff time, the City is looking for consultants to propose strategies for implementing and administering the clean energy program in conjunction with the financing. This is typically done by factoring the cost of administration services into the loan or bond amount or interest rate. The City is open to any other options which may be presented to provide administration of the program. Administration of the program would include developing policies and procedures for participant's loan application, including documentation of credit, income, and residency/ownership requirements. It is the City's intention to make the financing program available to all property owners, including residential, commercial, and industrial properties, with emphasis on providing opportunities within the downtown commercial district. The consultant contracted for program administration would provide general advice and recommendations relevant to clean energy opportunities, including advice on the impact of technological innovations, state or federal legislation and regulations, and market conditions that could affect the viability of the loan program and the risks/reward structure of other clean energy opportunities. Demographics, geographic characteristics, climate, market, and economic conditions, the local built environment, and the overall financial condition of the City should be considered to maximize the potential of the program. The program administrator would review agreements, construction contracts, insurance provisions, covenant requirements, and all relevant legal, finance, and/or tax documents, as needed. Timely invoicing of program participants and verification of use of loan proceeds would be required. The consultant would be responsible for the following: • Conduct a public interest and feasibility study and determine amount of interest in parcels, energy use, and amount of funding required to meet interest; • Provide a public information and outreach program with a very high level of customer service; • Host public information workshops and be available to respond to the public's questions and problems in a timely manner; • Design, manage, and update a program website; • Strategies to maximize resources, program participation, and program efficiency; • Assist the City in the development of presentation materials for the legislative and policy-making bodies, the public, installers, and contractor, and lenders; • Enhance the marketability of solar and clean energy retro -fit program to potential program participants, installers, and investors; • Market feasibility analysis and cash flows analysis, with strategies to minimize participant default rates; • Reporting mechanisms which accurately and reliably assess project feasibility, repayment projections, and loan risk; \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 6 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District • Maintain accurate and timely record keeping, including preparation of documents to support the issuance of bonds and/or underwriting of loans and/or any other regulatory body purposes; • Monitoring ongoing administration of the solar and clean energy program; • Prepare loan application materials, review applications, and verify eligibility, including checking title, deeds, and credit history; • Set up contacts & loan agreements with property owners/program participants and record a lien against the subject property reflecting the terms of the loan; • Provide program information and outreach to local contractors and installers; • Review contracts for installer / contractor services with preference given to local contractors and installers; and • Verifying and enforce policies and procedures, including completion of all necessary inspections, permitting, approvals, and documentation. V. Budget Consultant shall provide a proposal for the creation of a financing district and a funding mechanism for program administration. All costs and funding sources shall be proposed by the applicant as part of the response to this RFP. Preference will be given to consultants that propose a program with minimal to no direct cost to the City and with the lowest overall cost structure to participants. VI. RFP Submittal Requirements Consultants responding to this Request for Proposal must present satisfactory evidence to the City, indicating the ability to meet the Scope of Work outlined above. Each proposal must include the following information: • Understanding of the Scope of Work and timeline for completion; • Proposed approach to the project. Indicate the type of services the firm is seeking to provide including but not limited to financing, administration, participant/installer marketing/outreach; • A detailed statement and examples of directly relevant experience performing work on similar projects, and project references. Include information such as jurisdiction, project timeline and budget, energy generation, etc. Please include the name of the customer and/or jurisdiction and contact information to be used as references; • Listing of potential sources of capital to finance loans; • A brief description of the firm/consultant's background and capabilities; • Project leadership and staff assigned to this project and their qualifications; • Cost estimate identifying funding proposal and method of recovering costs/revenue sources, where appropriate. Identify any costs incurred, staff time, or tasks that would be required of the City; \\Cityhall\cdvlpmnt\- Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 7 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District • A detailed project timeline with key milestones identified; • The name, address and telephone number of the person to whom correspondence should be directed; and • Any other information that may assist the City in ascertaining the firm/consultant's qualifications. The City will be evaluating the consultant's proposals in order to determine which strategy for program financing and administration will be the best fit for the City. The following program specific information should be provided by the consultant in the proposal: • Provide proposed program framework including components such as special tax procedures and/or codes, program monitoring, oversight, and performance benchmarking to implement the clean energy program and to ensure the City's goals as outlined in this RFP are achieved. Describe the type of assessment district proposed and how repayment of the loan would be structured. Programs which have been previously established in other cities may be used as references. • Include strategies which would be implemented to take advantage of the any Federal and State renewable energy incentives, rebate programs, solar investment tax credits, loan guarantee programs and/or regulations that may have a bearing on the City's solar and clean energy retro -fit program. • Describe any arrangements, formal or informal, or potential conflicts of interest that the firm has with any party that might interfere with the firm's ability to provide services pursuant to this RFP. In relation to the program financing: • Provide strategies to structure funding to broaden the appeal among potential investors and reduce risk to the City, program participants, and/or investors. Devise a plan(s) to assess and implement strategy. • Describe the type of investor relations program your firm would recommend to maximize investor demand for the loan program and to optimize the interest rate. Provide a case study of a similar client for whom your firm implemented a similar financing plan. • Discuss your firm's marketing approach and distribution plan including targeting investors in connection with the financing part of the program. Analyze the costs imposed by this approach and how you propose these costs to be defrayed while providing low-cost financing options to the ultimate borrowers. • Propose strategies required to boost lender security and reduce borrower interest costs. • Describe threshold criteria for qualifying loan program participants, if any, including credit scores, income, debt ratios, etc. • Indicate whether your firm intends to structure the financing as a loan, a purchase of bonds, or both. With respect to your proposed structure, please address the following: a. Interest Rate Setting: Describe your proposed approach to setting the interest rate on the loans or bonds. The City requires that each loan bears a fixed rate \\Cityhall\cdvlpmnt\- Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 8 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District over is life, and as such this section seeks to understand how that interest rate would be set for each loan draw. b. Prepayments: Describe any proposed limitations on a borrower's ability to prepay the loans or bonds. C. Initial Commitment and Issuance Fees: Describe any commitment or other issuance fees required in connection with the financing program. d. Other Fees and Expenses: Describe any other fees that may be charged to program participants in connection with the loans or bonds. In relation to administration services: • Describe the public information and outreach program. How will the public be informed of the program and handled through the process? How will questions and problems be handled and resolved? What will be the consultant's local availability to meet with the public? The City of Atascadero has very high expectations for customer service and this program must be administered at the same level. • Clearly address exactly how the clean efficiency program would be administered. Identify and describe the administration components that would be handled by the consultant and what responsibilities would be required of the City. • Describe how your proposal would integrate the finance and administration aspects of the program. • Describe the general process for application to the clean energy program and the components that will comprise the application. Identify criteria by which applicants are approved or denied and describe the type and level of customer service. A sample application may be provided. • Identify outreach methods and alternative factors that may be considered in evaluating loan applications that together would broaden participation among all income ranges, including low- and very low-income individuals, while maintaining a prudent level of risk. • Describe how installers will be chosen. Identify how the program will encourage the use of local installers and local contractors for solar and energy retro -fit systems. • Describe the timeline for a typical program participant. Timelines should include ongoing administration and timing for any proposed reporting requirements and invoicing procedures. • Provide upfront and annual fees for the services proposed, including legal fees. Recommend administration strategy to minimize the upfront and ongoing administration fees. \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 9 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District VII. Consultant Selection Process A City Selection Committee will review the proposals, and the most qualified consultants will be invited for an interview with the Committee. Following the interviews, the Committee will select the consultant demonstrating the best qualifications and ideas for this effort, and recommend to the City Council approval of the consultant selection and direct Staff to negotiate an Agreement for professional services. VIII. Consultant Selection Criteria The City reserves the right to act as the sole judge of the contents of all proposals. In soliciting these proposals, it is the intent of the City to have the best possible service performed on this project. Therefore, selection of the consultant will be based upon the following considerations and criteria: • Consultant's demonstrated experience with similar projects involving loan program and renewable energy project administration and/or financing for municipalities and other public agencies; • Consultant's demonstrated ability to manage and coordinate the project in a timely manner; • Ability to provide a high level of customer service to the public; • Proposed cost that would be incurred by the City and/or program participants; • References; and • Any other considerations deemed pertinent by the City. All proposals received in response to this RFP shall become property of the City and become a matter of public record, except for those parts of each proposal which are defined by the consultant as business or trade secrets, provided that the said parts are submitted in a sealed envelope and clearly marked as "confidential" or "proprietary." The City may conduct reasonable inquiry to determine the responsibility of the consultant. The submission of a proposal constitutes permission by the consultant for the City to verify all information contained therein. If the City deems it necessary, additional information may be requested from any consultant. Failure to comply with such a request may disqualify a consultant from further consideration for this project. \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 10 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District IX. Documents Available Your firm may contact the City to obtain documents, as necessary, to assist in preparing your response to the RFP. Documents available include: City Council Staff report (May 26, 2009) authorizing RFP for consultant; Assembly Bill 811. X. RFP Submission Deadline Five (5) copies of each proposal must be received by 5:00 p.m. on July 31, 2009. Please submit proposals to: Atascadero City Clerk Attn: Marcia Torgerson - RFP 2009-001 6907 EI Camino Real Atascadero, CA 93422 805/461-5000 XI. Consultant Inquiries For further information or inquiries about this RFP, please contact: Warren Frace, Director Community Development Department 6907 EI Camino Real Atascadero, CA 93422 805/470-3402 wfrace@atascadero.org Thank you for your interest in proposing on this project. Attachment 1: Sample City Contract \\Cityhall\cdvlpmnt\- Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 11 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District Attachment 1: Sample City Contract CONSULTANT SERVICES AGREEMENT FOR THE CITY OF ATASCADERO [NAME OF CONSULTANT] THIS CONTRACT is made and entered into between City of Atascadero, a Municipal Corporation ("City") and [Name of Consultant] ("Consultant"). City and Consultant agree as follows: SCOPE AND STANDARDS: A. CONTRACT. Consultant shall do all work, attend all meetings, produce all reports and carry out all activities necessary to complete the services described in the SCOPE OF WORK AND STANDARDS FOR SERVICES, attached hereto and incorporated herein by this reference as Exhibit A, as requested by the City. This Contract and its exhibits shall be known as the "Contract Documents." Terms set forth in any Contract Document shall be deemed to be incorporated in all Contract Documents as if set forth in full therein. 2. EMPLOYMENT STATUS OF PERSONNEL: A. INDEPENDENT CONTRACTOR; EMPLOYEES OF CONSULTANT. Consultant enters into this Contract as, and shall at all times remain as to the City, an independent contractor and not as an employee of the City. Nothing in this Contract shall be construed to be inconsistent with this relationship or status. Any persons employed by Consultant for the performance of services pursuant to this Contract shall remain employees of Consultant, shall at all times be under the direction and control of Consultant, and shall not be considered employees of City. All persons employed by Consultant to perform services pursuant to this Contract shall be entitled solely to the right and privileges afforded to Consultant employees and shall not be entitled, as a result of providing services hereunder, to any additional rights or privileges that may be afforded to City employees. \\Cityhall\cdvlpmnt\- Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 12 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District B. INDEPENDENT INVESTIGATION. The Consultant agrees and hereby represents it has satisfied itself by its own investigation and research regarding the conditions affecting the work to be done and labor and materials needed, and that its decision to execute this Contract is based on such independent investigation and research. C. COMPLIANCE WITH EMPLOYMENT LAWS. The Consultant shall keep itself fully informed of, shall observe and comply with, and shall cause any and all persons, firms or corporations employed by it or under its control to observe and comply with, applicable federal, state, county and municipal laws, ordinances, regulations, orders and decrees which in any manner affect those engaged or employed on the work described by this Contract or the materials used or which in any way affect the conduct of the work. D. UNLAWFUL DISCRIMINATION PROHIBITED. Consultant shall not engage in unlawful employment discrimination. Such unlawful employment discrimination includes, but is not limited to, employment discrimination based upon a person's race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, gender, citizenship or sexual orientation. 3. TIME OF PERFORMANCE: The services of Consultant are to commence upon execution of this Contract by City, and shall be undertaken and completed in a prompt and timely manner, in accordance with the Scope of Work referenced in Exhibit A. Except as provided in Sections 6 and 19 below, this Contract shall terminate no later than [insert date], unless extended by the mutual agreement of both parties. 4. COMPENSATION: A. TERMS. Compensation to the Consultant shall be as set forth in Exhibit B attached hereto and made a part hereof. B. NO PAY FOR ADDITIONAL SERVICES WITHOUT WRITING. Consultant shall not be compensated for any services rendered in connection with its performance of this Contract, which are in addition to those set forth herein or listed in Exhibit A, unless such additional services are authorized in advance and in writing by the City Manager or the City Manager's designee (hereinafter "City Manager" shall include the City Manager's designee). Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City and Consultant at the time City's express written authorization signed by the City Manager is given to Consultant for the performance of said services. \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 13 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District 5. SUPERVISON, LABOR AGREEMENTS AND PERSONNEL: A. CONSULTANT SUPERVISES PERSONNEL. The Consultant shall have the responsibility for supervising the services provided under this Contract, hiring of personnel, establishing standards of performance, assignment of personnel, determining and affecting discipline, determining required training, maintaining personnel files, and other matters relating to the performance of services and control of personnel. The City Manager may use any reasonable means to monitor performance and the Consultant shall comply with the City Manager's request to monitor performance. B. PERFORMANCE NOT SUBJECT TO EMPLOYMENT AGREEMENTS. The City acknowledges that the Consultant may be obligated to comply with bargaining agreements and/or other agreements with employees and that the Consultant is legally obligated to comply with these Contracts. It is expressly the intent of the parties and it is agreed by the parties that the Consultant's performance shall not in any manner be subject to any bargaining agreement(s) or any other agreement(s) the Consultant may have covering and/or with is employees. C. APPROVAL OF STAFF MEMBERS. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant's staff assigned to perform the services required under this Contract. Consultant shall notify City of any changes in Consultant's staff to be assigned to perform the services required under this Contract and shall obtain the approval of the City Manager of a list of all proposed staff members who are to be assigned to perform services under this Contract prior to any such performance. 6. TERMINATION: A. 30 DAYS NOTICE. The City, upon thirty (30) days written notice, may terminate this Contract, without cause, at any time. In the event of such termination, Consultant shall be compensated for non -disputed fees under the terms of this Contract up to the date of termination. B. OBLIGATIONS SURVIVE TERMINATION. Notwithstanding any termination of this Contract, Consultant shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of this Contract by Consultant, and the City may withhold any payments due to Consultant until such time as the exact amount of damages, if any, due the City from Consultant is determined. All of the indemnification, defense and hold harmless obligations in this Contract shall survive termination. \\Cityhall\cdvlpmnt\- Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 14 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District 7. CHANGES: The City or Consultant may, from time to time, request changes in the scope of the services of Consultant to be performed hereunder. Such changes, including any increase or decrease in the amount of Consultant's compensation and/or changes in the schedule must be authorized in advance by both Parties in writing. Mutually agreed changes shall be incorporated in written amendments to this Contract. Any increase in the amount of Consultant's compensation and/or changes in Exhibit A and or Exhibit B must be authorized in advance by the City Manager. 8. PROPERTY OF CITY: A. MATERIALS PREPARED EXCLUSIVE PROPERTY OF CITY. It is mutually agreed that all materials prepared by the Consultant under this Contract are upon creation and shall be at all times the exclusive property of the City, and the Consultant shall have no property right therein whatsoever. City agrees that Consultant shall bear no responsibility for any reuse of the materials prepared by the Consultant if used for purposes other than those expressly set forth in the Intended Use of Consultant's Products and Materials section of this Contract. Consultant shall not disseminate any information or reports gathered or created pursuant to this Contract without the prior written approval of City including without limitation information or reports required by government agencies to enable Consultant to perform its duties under this Contract and as may be required under the California Public Records Act excepting therefrom as may be provided by court order. Consultant will be allowed to retain copies of all deliverables. B. CONSULTANT TO DELIVER CITY PROPERTY. Immediately upon termination, or upon the request by the City, the City shall be entitled to, and the Consultant shall deliver to the City, all data, drawings, specifications, reports, estimates, summaries and other such materials and property of the City as may have been prepared or accumulated to date by the Consultant in performing this Contract. Consultant will be allowed to retain copies of all deliverables to the City. 9. CONFLICTS OF INTEREST: A. CONSULTANT covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant's performance of services under this Contract. Consultant further covenants that in the performance of this Contract, Consultant shall take reasonable care to ensure that no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the City Manager. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Contract. Consultant agrees to include language similar to this Section 9(A) in all contracts with subcontractors and agents for the work contemplated herein. 10. CONFIDENTIAL INFORMATION: \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-Jl.docx Page 15 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District A. ALL INFORMATION KEPT IN CONFIDENCE. All materials prepared or assembled by Consultant pursuant to performance of this Contract are confidential and Consultant agrees that they shall not be made available to any individual or organization without the prior written approval of the City, except by court order. B. REIMBURSEMENT FOR UNAUTHORIZED RELEASE. If Consultant or any of its officers, employees, or subcontractors does voluntarily provide information in violation of this Contract, the City has the right to reimbursement and indemnity from party releasing such information for any damages caused by the releasing party's, including the non -releasing party's attorney's fees and disbursements, including without limitation expert's fees and disbursements. C. COOPERATION. City and Consultant shall promptly notify the other party should Consultant or City, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Contract and the work performed thereunder or with respect to any project or property located within the City. City and Consultant each retains the right, but has no obligation, to represent the other party and/or be present at any deposition, hearing or similar proceeding. Consultant and City agree to cooperate fully with the other party and to provide the other party with the opportunity to review any response to discovery requests provided by Consultant or City. However, City and Consultant's right to review any such response does not imply or mean the right by the other party to control, direct, or rewrite said response. 11. PROVISION OF LABOR, EQUIPMENT AND SUPPLIES: A. CONSULTANT PROPERTY. Consultant shall furnish all necessary labor, supervision, equipment, communications facilities, and supplies necessary to perform the services required by this Contract except as set forth in Exhibit . City acknowledges that all equipment and other tangible assets used by Consultant in providing these services are the property of Consultant and shall remain the property of Consultant upon termination of this Contract. B. SPECIAL SUPPLIES. City shall be responsible for supplying any special supplies, stationary, notices, forms or similar items that it requires to be issued with a City logo. All such items shall be approved by the City Manager and shall be provided at City's sole cost and expense. \\Cityhall\cdvlpmnt\- Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 16 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District 12. COMPLIANCE WITH LAW: A. COMPLIANCE REQUIRED. Consultant shall keep itself informed of applicable local, state, and federal laws and regulations which may affect those employed by it or in any way affect the performance of its services pursuant to this Contract. Consultant shall observe and comply with all applicable laws, ordinances, regulations and codes of federal, state and local governments, and shall commit no trespass on any public or private property in performing any of the work authorized by this Contract. Consultant shall at all times hold a valid contractor's license if performing any function or activity for which a license is required pursuant to Chapter 9 (commencing with section 7000) of Division 3 of the California Business and Professions Code, and Consultant shall provide a copy of the license(s) upon the request of the City. The City, its officials, officers, elected officials, appointed officials and employees shall not be liable at law or in equity as a result of any failure of consultant to comply with this section. B. PREVAILING WAGES. In the event it is determined that the Consultant is required to pay prevailing wages for the work performed under this Agreement, the Consultant shall pay all penalties and wages as required by applicable law. 13. SUBCONTRACTING: None of the services covered by this Contract shall be subcontracted without the prior written consent of the City Manager. Consultant shall be as fully responsible to the City for the negligent acts and omissions of its contractors and subcontractors, and of persons either directly or indirectly employed by them, as it is for the negligent acts and omissions of persons directly employed by Consultant. IMIIIIIIIIIIIIIIIII 1111T M4 Eel 01 r-11 1.1111 via Consultant shall not assign or transfer any interest in this Contract whether by assignment or notation. However, claims for money due or to become due Consultant from the City under this Contract may be assigned to a financial institution, but only with prior written consent of the City Manager. Notice of any assignment or transfer whether voluntary or involuntary shall be furnished promptly to the City. The rights and benefits under this agreement are for the sole and exclusive benefit of the City and this Contract shall not be construed that any third party has an interest in the Contract. \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 17 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District 15. LIABILITY OF CONSULTANT: Consultant shall be responsible for performing the work under this Contract in a manner which is consistent with the generally accepted standards of Consultant's profession and shall be liable for its own negligence and the negligent acts of its employees, agents, contractors and subcontractors. The City shall have no right of control over the manner in which the work is to be done but only as to its outcome, and shall not be charged with the responsibility of preventing risk to Consultant or its employees, agents, contractors or subcontractors. 16. INDEMNIFICATION: A. INDEMNIFICATION FOR PROFESSIONAL LIABILITY. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorneys fees and costs to the extent same are caused in whole or in part by any negligence or wrongful act, error or omission of Consultant, willful misconduct, or recklessness of its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit without the written consent of the Consultant. B. INDEMNIFICATION FOR OTHER THAN PROFESSIONAL LIABILITY. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorneys fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which consultant is legally liable, including but not limited to officers, agents, employees or subconsultants of Consultant. C. GENERAL INDEMNIFICATION PROVISIONS. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section for each and every subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this agreement. In the event consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successor, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. \\Cityhall\cdvlpmnt\- Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 18 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District [the following paragraph is to be used only when the professional services contract is related to construction] D. INDEMNITY PROVISIONS FOR CONTACTS RELATED TO CONSTRUCTION. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City of liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. 17. INSURANCE: Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit attached to and part of this agreement. 18. RECORDS: Consultant shall maintain complete and accurate records with respect to labor costs, material expenses, parcels abated or serviced and other such information required by City that relates to the performance of services under this Contract. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible and in a form acceptable to the City, which the City may specify and change from time to time. Consultant shall provide free access to the representatives of City or its designees, at reasonable times, to such books and records, shall give City the right to examine and audit said books and records, shall permit City to make transcripts therefrom as necessary, and shall allow inspection of all work, data, documents, proceedings, and activities related to this Contract. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. 19. MISCELLANEOUS PROVISIONS: A. ASSIGNMENT OR SUBSTITUTION. City has an NONDISCRIMINATION / NONPREFERENTIAL TREATMENT STATEMENT In performing this Contract, the parties shall not discriminate or grant preferential treatment on the basis of race, sex, color, age, religion, sexual orientation, disability, ethnicity, or national origin, and shall comply to the fullest extent allowed by law, with all applicable local, state, and federal laws relating to nondiscrimination. B. UNAUTHORIZED ALIENS. Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act (8 U.S.C.A. & 1101 et seq.), as amended; and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/or services covered by this contract, and should the Federal Government impose sanctions against the City for such use of unauthorized aliens, Consultant hereby agrees to, \\Cityhall\cdvlpmnt\- Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 19 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District and shall, reimburse City for the cost of all such sanctions imposed, together with any and all costs, including attorneys' fees, incurred by the City in connection therewith. C. GOVERNING LAW. The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Contract and also govern the interpretation of this Contract. Any litigation concerning this Contract shall take place in the San Luis Obispo Superior Court, federal diversity jurisdiction being expressly waived. D. City has an interest in the qualifications of and capability of the persons and entities that will fulfill the duties and obligations imposed upon Consultant by this Contract. In recognition of that interest, neither any complete nor partial assignment of this Contract, may be made by Consultant nor changed, substituted for, deleted, or added to without the prior written consent of City which consent shall not be unreasonably withheld. Any attempted assignment or substitution shall be ineffective, null, and void, and constitute a material breach of this Contract entitling City to any and all remedies at law or in equity, including summary termination of this Contract. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Contract. E. ENTIRE CONTRACT. This Contract constitutes the entire Contract and understanding between the parties relative to the services specified herein and there are no understandings, agreements, conditions, representations, warranties or promises, with respect to this Contract, except those contained in or referred to in this Contract and this Contract supersedes all prior understandings, agreements, courses of conduct, prior dealings among the parties and documentation of any kind without limitation. F. AMENDMENTS. This Contract may be modified or amended, or any of its provisions waived, only by a subsequent written agreement executed by each of the parties. The parties agree that this requirement for written modifications cannot be waived and any attempted waiver shall be void. G. CONSTRUCTION AND INTERPRETATION. Consultant and City agree and acknowledge that the provisions of this Contract have been arrived at through negotiation and that each party has had a full and fair opportunity revise the provisions of this Contract and to have such provisions reviewed by legal counsel. Therefore, any ambiguities in construing or interpreting this Contract shall not be resolved against the drafting party. The titles of the various sections are merely informational and shall not be construed as a substantive portion of this Contract. H. WAIVER. The waiver at any time by any party of any of its rights with respect to a default or other matter arising in connection with this Contract shall not be deemed a wavier with respect to any subsequent default or other matter. I. SEVERABILITY. The invalidity, illegality or unenforceability, of any provision of this Contract shall not render the other provisions invalid, illegal or unenforceable. \\Cityhall\cdvlpmnt\- Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 20 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District J. NOTICES. All invoices, payments, notices, demands, requests, comments, or approvals that are required to be given by one party to the other under this Contract shall be in writing and shall be deemed to have been given if delivered personally or enclosed in a properly addressed envelope and deposited in a United States Post Office for delivery by registered or certified mail addressed to the parties (deemed to have been received three (3) business days after deposit in the U.S. Mail) at the following addresses: City: City of Atascadero City Manager 6907 EI Camino Real Atascadero, CA 93422 Consultant [NAME OF CONSULTANT] [CONTACT PERSON] [Street Address] [City, state and zip code] Each party may change the address at which it gives notice by giving ten (10) days advance, written notice to the other party. K. AUTHORITY TO EXECUTE. The person or persons executing this Contract on behalf of Consultant warrant and represent that they have the authority to execute this Contract on behalf of their agency and further warrant and represent that they have the authority to bind Consultant to the performance of its obligations hereunder. AGREED to this day of , 2006 by the parties as follows. Approved as to form: [NAME OF CONSULTANT] By: Counsel for consultant [Name and Title] Approved as to form: CITY OF ATASCADERO go Patrick L. Enright, City Attorney [Name and Title] \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docx Page 21 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District CERTIFICATE OF COMPLIANCE WITH LABOR CODE § 3700 I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I have complied or will comply with such provisions before commencing the performance of the work of this contract. (Cal. Labor C. §§1860, 1861.) CONSULTANT [Insert Consultant Name and Title] \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-jl.docX Page 22 of 23 City of Atascadero Request for Proposals Municipal Clean Energy Program and Financing District EXHIBIT A Scope of Work Compensation and Method of Payment EXHIBIT C Items Provided by City EXHIBIT D Location Schedule EXHIBIT E Insurance Requirements \\Cityhall\cdvlpmnt\— Contract Management\AB 811 consultant\AB 811 consultant RFP-JI.docx Page 23