The purpose of this chapter is to authorize establishment of
the regulatory framework for the leasehold marketing of solar energy
devices within the city of Palm Springs.
California law currently encourages the leasehold marketing
of solar energy devices within the state of California by providing
tax credits to California taxpayers who lease such devices from a
municipal utility or from any lessor granted a permit from a municipal
solar utility. Upon the establishment of the Palm Springs municipal
solar utility residents of Palm Springs who lease solar energy devices
through such utility should be able to obtain such tax credits. However,
as legal title to such solar energy devices is held by a person other
than the resident-user, the latter is particularly susceptible to
harm caused by consumer deception, safety hazards and the interruption
of service. To help prevent such harm from occurring and to promote
the economic feasibility of solar energy use within the city of Palm
Springs, leasehold interests in solar energy devices may be marketed
within the city's jurisdiction by complying with the provisions of
this chapter and any rules and regulations promulgated by the city
manager or city council of the city of Palm Springs to implement any
provisions of this chapter. Persons not participating in the municipal
solar utility are not subject to any of the procedures and provisions
of this chapter.
(Ord. 1168 § 2, 1982)
The following definitions apply to those persons who will be participating in the municipal solar utility. When used in this chapter or Chapter 8.30 of this code, unless the context otherwise requires:
means the city of Palm Springs.
means the office, under the direction of the city manager,
responsible for managing the Palm Springs municipal solar utility
and performing the city's obligation under Title 1 or Title 2 of this
code.
means a contract between a lessee and an investor for the
leasing of solar energy devices, owned by the investor and leased
and possessed by the lessee, which is affixed to or located at and
servicing the real property owned or occupied by the lessee.
means any person, properly licensed under the provisions
of the California Contractors License Law, including any solar specialty
license, installing, removing or servicing solar energy devices subject
to a lease arrangement.
means any person advertising, marketing, placing, and arranging,
pursuant to a lease arrangement, for installation and servicing of
solar energy devices for a fee.
means any person leasing a solar energy device on or affixed
to the real property owned or occupied by such person.
means any person serving an agent of an investor for purposes
of collecting leasehold payments, making payments for obligations
incurred in lease arrangements, and maintaining accounting records
or collections and payments for solar energy devices.
means a program conducted by a local government or its authorized
agent to promote the utilization of renewable energy and energy conservation
technologies.
means any leasing company, installer or installation company,
or management company that has complied with all necessary requirements
and obtained a permit to participate in the MSU solar leasing program.
means any natural person, partnership, corporation, business
trust, association, company or other legal entity.
includes equipment and materials (and parts solely related
to the functioning of such equipment) that is intended to be or located
on or affixed to real property within the city of Palm Springs and
that uses solar energy directly to (i) generate electricity; (ii)
heat or cool a building or structure; (iii) provide hot water for
domestic service, recreational, or therapeutic purposes; or (iv) provide
process heat or mechanical energy. Generally, these functions are
accomplished through the use of equipment such as collectors (to absorb
sunlight and create hot liquids or air), thermostats (to activate
pumps or fans which circulate the hot liquids or air), and heat exchangers
(to utilize hot liquids or air to create hot air or water).
means California or federal investment tax credits, solar
tax credits, accelerated depreciation, tax deferral and other tax
benefits accruing through the leasehold of solar energy devices under
existing state and federal tax law.
(Ord. 1168 § 2, 1982)
(a)
No
person shall attempt to operate as a leasing company, installer, or
management company in the municipal solar utility within the city
without having a valid permit from the city.
(b)
The
energy office, consisting of the energy coordinator and staff, if
any, under the direction of the city manager is authorized and directed
to undertake the following action to develop, implement, and administer
the city's MSU solar leasing program:
(1)
Develop, in cooperation with the city attorney, all documents necessary
to administer and operate the MSU solar leasing program.
(2)
Prepare application procedures and eligibility criteria governing
participation by leasing companies, installers, and management companies
in the MSU solar leasing program. Any entity satisfactorily meeting
such eligibility criteria shall be issued an annual permit to participate
in the MSU program.
(A)
As a prerequisite to application for a permit, the energy office
may require the inspection of all appropriate records of the applicant
including, but not limited to, financial information and investment
transaction pertinent to determining whether or not the applicant
satisfies all eligibility criteria. All financial records of the applicant
shall be deemed to be private and confidential and not subject to
public review. All such records of applicants not granted a permit
may be returned to the applicant upon request by the applicant within
fifteen days of the denial of the permit. Records of all persons granted
a permit shall be subject to such review and audit by other public
agencies as may be required by law.
(B)
The energy office shall compile a list of all firms, known as "permittees,"
who obtain permits to participate in the MSU solar leasing program.
(C)
The energy office shall develop and implement procedures to be used for revoking the permit of any permittee failing to comply with this chapter and Chapter 8.30 of this code and any rules and regulations promulgated to implement any sections of said chapters. All criteria and procedures proposed hereunder by the energy office shall be subject to review by the city attorney and approval of the city council.
(D)
The energy office shall review and approve all lease terms proposed
by leasing companies prior to granting the leasing company a permit
to participate in the MSU solar leasing program.
(3)
Monitor and review all transactions and contractual relationships
between permittees and consumers to ensure compliance with program
requirements and other applicable federal, state, or local laws.
(4)
Prepare, in cooperation with appropriate departments and other public
agencies, manufacturing, operating, maintenance, and aesthetic standards
for all solar equipment to be utilized under the leasing program.
(5)
Assess in cooperation with the finance department the feasibility
of developing billing procedures to be utilized in invoicing solar
lessees, collecting monthly lease payments, and disbursing said payments
to the relevant permittees. Such procedures may include utilization
of the city's computer system or such other system as may be determined
to be cost-effective. The energy office will establish a reasonable
fee to be charged to recover all costs of said billing system, and
establish regulations for the operation of said billing system.
(6)
Prepare any other procedures, rules, regulations, and fee schedules
deemed reasonably necessary to facilitate the implementation and on-going
operation of the leasing program.
(Ord. 1168 § 2, 1982)
(a)
No
person may take or use the primary residence of a lessee as security
for any lease payment or other indebtedness incurred through the lease
arrangement.
(b)
The
energy office shall develop bonding requirements for leasing companies,
installers, and management companies participating in the MSU solar
leasing program. Required bonds must be posted with the city prior
to a permit being granted for participation in the program. All bonds
shall be permittee bonds secured for an initial term of at least one
year.
(c)
Permittee
bonds shall guarantee full performance of the permittee's responsibilities
as a participant in the program. Permittee bonds shall be held by
the city and shall be used to compensate lessees for loss or damage
suffered as a result of the permittee's failure to perform under the
conditions of the permit and according to procedures set forth herein
and in any rules and regulations promulgated to implement any provisions
of this chapter and Chapter 9.32.
(d)
All
solar energy devices installed under the MSU solar leasing program
must receive required building permits. Special fees may be established,
if necessary, for solar energy devices based on type and size to defray
the special inspection costs they entail.
(e)
The
city may establish an arbitration board to hear and resolve any controversy
or claim arising out of or relating to the lease arrangement or installation
of solar energy systems leased under the MSU solar leasing program.
If said arbitration board is established, all permittees and lessees
must agree to use the arbitration board to resolve disputes, claims,
or controversies. The arbitration board's award shall be final and
binding on all parties, except as provided by state law, and judgment
upon the award may be entered in any court having jurisdiction thereof.
(Ord. 1168 § 2, 1982)
If any provision of this chapter and Chapter 8.30 or their application to any person or circumstances is held invalid, the invalidity does not affect other provisions or application of this chapter and Chapter 8.30 which can be given effect without the invalid provision or application, and to this end the provisions of this chapter and Chapter 8.30 are severable.
(Ord. 1168 § 2, 1982)
