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Description
San Bruno City Council Meeting
October 14, 2014
10a. Consent to Include San Bruno in HERO Program
A
Alright
get
right
into
conduct
of
business.
At
first
item
is
10a,
adopt
a
resolution
consenting
to
inclusion
of
all
properties
within
San
Bruno
in
the
California
hero
program
to
finance
generation,
renewable
energy
sources,
energy
and
water
efficiency,
improvements
and
electric
vehicle
charging
infrastructure
and
amending
the
Western
Riverside
Council
of
Governments
joint
powers,
agreement,
adding
the
city
of
San
Bruno.
As
an
associate
member
of
the
joint
powers
authority,
Angela
o.
B
Fairness
just
want
to
give
you
a
brief
background
on
the
pace
program
and
state
law
authorizes
a
legislative
body
such
as
the
City
Council,
to
designate
an
area
in
which
property
owners
may
enter
into
a
voluntary
contractual
assessment
program
in
order
to
finance
an
array
of
conservation
and
renewable
energy
products.
This
is
known
as
a
property
assessed
clean
energy
program
or
pace
program.
B
Pace
programs
allow
property
owners
within
participating
jurisdictions
to
finance
the
total
cost
of
the
installation
of
energy
generation,
energy
efficiency
and
water
conservation,
improvements
on
the
on
their
own
properties
and
repay
the
loans
through
assessments
that
are
placed
on
their
property
tax
bills.
Participation
in
this
is
a
hundred
percent
voluntary
for
the
property
owners.
B
Repayment
of
the
loan,
through
the
property
tax
bill,
is
intended
to
provide
the
property
owner
with
the
flexibility
of
having
the
unpaid
portion
of
the
lone
run
with
the
property
in
the
event
it
is
sold.
The
new
owner
would
then
assume
responsibility
for
the
remaining
amount
to
be
repaid
through
the
property
tax
bill,
thereby
reducing
any
financial
loss
if
the
property
is
sold
well
before
any
energy
savings
is
realized.
B
However,
there
are
some
banks
that
have
stated
that
they
are
not
willing
to
pay
to
purchase
these
mortgages,
so
the
property
owner
may
have
to
sell
or
refinance
their
home
or
may
have
to
repay.
The
assessment.
In
2010,
the
city
of
San
Bruno
adopted
a
resolution
authorizing
the
city
to
participate
in
California
first
program,
which
allowed
property
owners
within
the
city
limits
to
voluntary,
fallen,
tara,
lee
Peyton
it
space
program.
Since
that
time,
additional
pace
programs
have
become
available
and
specifically
the
California
hero
program,
and
there
are
some
advantages
of
offering
multiple
pace
programs.
B
Various
pace
programs
tend
to
focus
on
different
types
of
customers.
The
hero
program
focuses
of
the
majority
on
residential
others,
may
focus
more
on
commercial
and
provides
property
owners
with
multiple
financing
options
and
increased
competition
could
positively
impact
interest
rates
also
and
found
out
today
that
in
the
staff
report
we
had
mentioned
that
there
was
a
prepayment
penalty.
This
prima
penalty
is
only
for
commercial.
It
was
recently
changed,
so
residential
property
owners.
What
would
not
have
to
pay
the
penalty
for
cities?
There
are
some
for
the
city
itself.
There
are
some
advantages.
B
This
is
an
economic
development
plan
that
is
available
to
the
city
at
no
cost.
It
promotes
a
greener
environment,
it
reduces
energy
consumption,
create
sustainable
jobs
and
lowers
greenhouse
gas
emissions.
Just
a
little
additional
information.
The
California
hero
program
is
a
financing
program.
Only
the
city
is
not
responsible
for
the
products,
the
installation
or
their
performance
and
a
few
local
participants
in
the
hero
program.
Our
minlow
park
foster
city,
redwood,
city,
Daly,
City
and
San
Mateo
County,
and
that
concludes
my
report
I'm
available
for
any
questions.
C
Chair
I
noticed
in
the
staff
report
that
it
was
adopted
in
2010,
but
it
was
police
don
hold.
So
this
is
brand
new
if
I'm
incorrect
and
so
I'd
like
to
know
and
I
asked
you
/
for
the
me.
You
know
if
we
could
have
some
examples.
What
are
we
expecting
to
see
if
people
want
to
residents
want
to
get
participate
in
this
I
notice
that
it
says
energy,
renewable
energy
resources,
energy
and
water
efficiency
improvements
and
electrical
vehicle
charging
infrastructure?
C
The
first
thing
that
came
to
my
mind
is
resident,
wanted
putting
up
in
a
windmill,
something-
and
obviously
there
are.
You
know
that
renews
energy,
but
I
mean.
Is
that
something
that
you
know
that
we
want
to
see
cropping
up.
You
know
in
our
neighborhoods
I
mean
in
addition
to
photovoltaics
and
yeah
in
the
sash,
so
I
believe.
D
Sure
hi
I'm
John
law
I'm
with
the
hero
program
work
here
in
Northern,
California
government
relations.
I'm.
Thank
you
for
your
interest
tonight.
There's
a
number
of
San
Mateo
communities
that
have
opted
in
or
about
to.
So
we
appreciate
your
interest.
I'll,
give
you
some
some
basics
on
the
types
of
projects
we
do
about.
Two-Thirds
of
what
we
do
are
in
the
energy
efficiency
category,
so
that's
water
conservation,
which
might
be
artificial
turf.
It
might
be
low
use,
indoor
fixtures,
it
might
be
low
use,
outdoor
plumbing
and
fixtures,
it
might
be
hard,
scape,
etc.
D
D
Now,
while
the
legislation
does
provide
that
some
wind
turbines
could
be
eligible
for
the
program,
Shiro
requires
that
all
local
planning
zoning
permitting
processes
are
adhered
to,
so
I
would
likely
assume
that
we're
not
going
to
see
much
more
than
solar
popping
up
where
it's
allowed
in
your
community.
So
we've
done
about
17,500
projects
so
far
in
California.
Only
that
said
that's
about
ninety-five
percent
of
the
nation's
financing
with
this
type
of
work
and
that
equates
to
over
a
half
a
billion
dollars
in
utility
savings
for
the
life
of
these
projects.
D
A
C
D
Yeah,
so
we
do,
we
take
pride
in
and
a
high
quality
product
and
I'll
field.
All
the
questions
that
you're
willing
so
with
the
population
here
with
the
region
just
be
developing.
If
the
city
were
to
adopt
tonight,
it's
going
to
be
a
number
of
months
before
we
go
live
in
the
program,
its
procedural
elements
that
are
required
by
the
legislation.
The
program
takes
care
of
all
of
it
the
city
doesn't
have
to,
but
what
that
means
is
we'll
be
launching
down
the
road.
D
What
that
means
for
the
county
is
many
of
the
cities
are
coming
on
board.
So
I'll
give
you
some
San
Jose
statistics,
for
example,
which
launched
in
July.
We
have
already
approved
over
20
million
dollars
in
projects
for
the
city
of
San,
Jose,
just
launching
in
July,
and
it
funded
over
a
million
dollars
worth
I.
Have
some
other
data
points
if
you'd
like
that?
E
Could
I
could
I
insert
here
for
just
spin
and
go
back
to
the
council
members
original
question
about
your
example
of
a
windmill?
This
is
a
financing
program.
It
is
strictly
a
program
that
provides
an
option
for
residents
to
secure
loans
in
order
to
finance
improvements
that
they
might
want
to
make
any
and
all
energy
efficiency
improvements,
just
like
any
other.
Residential
improvements
must
adhere
to
the
city's
Planning
and
Zoning
building
requirements,
and
so
just
because
a
financing
program
is
available
doesn't
mean
somebody
can
put
a
windmill
in
their
backyard.
C
And
and
I
wouldn't
like
I,
wouldn't
would
assume
that
people
know
that
they
have
to
comply
with
it.
That
also
may
be
to
add
on
to
a
room
or
remodel
the
kitchen
or
something.
But
who
knows
you
know?
Maybe
they
think
that,
because
the
government's
funding
something
or
getting
you
know
or
helping
that
they
can
just
slap
a
50-foot
wood
mill
up
there
or
something?
So
so
that's
all
part
of
the
marketing.
F
Have
a
couple
of
things
well:
first
of
all,
I
was
happy
to
hear
that
there
is
no
prepayment
penalty
for
residential
because
I,
but
that
bothered
me
a
lot
that
it
might
be,
for
it
might
apply
to
people
I'm
a
little
cautious
about
the
the
interest
rate.
You're
charging
I'm
five
to
seven
percent
is
what
is
in
our
staff
report
and
the
lowest
amount
is
five
thousand
dollars.
Is
that
how
it
works?
It
just
seems
a
high
interest
rate
and
kind
of
a
high
bottom.
Five
thousand
dollar
limit
lower
limit.
D
Ok,
well,
the
interest
rates,
you'll
property
assessed
clean
energy
fits
between
consumer
credit
where,
unfortunately,
most
you
know
air
conditioning
or
heating
failures
where
that
gets
finance
right.
So
somebody's
furnace
goes
out
in
the
wintertime
there
they're
using
some
form
of
consumer
credit
to
get
their
warm
air
by
Friday,
so
that
interest
rate
is
here
well
folks.
Some
folks
may
have
access
to,
let's
say
a
second
line
of
credit
on
their
home
or
second
mortgage
or
so
forth.
Where
that
interest
rate
is
here,
pace
typically
fits
in
between.
D
So
if
somebody
has
access
to
maybe
some
other
sources
of
financing,
maybe
pace
isn't
for
them.
But
what
we're
finding
is
we're
finding
rapid
adoption
with
pace
for
a
number
of
reasons,
an
interest
rate
doesn't,
while
it's
very
competitive,
isn't
the
primary
driver
of
wild
folks
are
choosing
to
use
pace
so
all
else
being
equal?
We
expect
rates
to
come
down
over
time
as
the
the
securitisation
of
these
bonds,
which
we've
successfully
accomplished,
becomes
more
commonplace.
D
We
see
the
cost
coming
down,
but
we're
seeing
property
owners
automatically
choose
the
longest
term,
which
doesn't
mean
the
lowest
rate.
What
property
owners
like
is
easy
to
do
business
with
we
answer.
40,000
phone
calls
a
month.
Contractors
can
can
use
this
tool
without
interrupting
the
workflow.
They
have
tax,
deductible
capabilities
with
pace
that
they
don't
have
with
consumer
credit,
so
the
over
the
effective
rate
is
much
lower.
Additionally,
if
the
lender
permits
at
time
of
sale,
that
assessment,
as
well
as
the
permanent
improvement
and
the
utility
savings
stay
with
the
property.
F
D
So
knows
we're
a
financing
mechanism
and
we
have
an
infrastructure
that
helps
make
this
process
smooth
and
easy
we're,
not
a
contractor.
So
we
work
with
your
local
contracting
community
to
help
them
bring
this
tool
to
their
business.
What
property
owners?
Typically
you,
and
in
almost
all
cases
for
us
they
have
a
job
that
they
want
to
do,
whether
that's
because
something
failed
or
it's
because
of
discretionary.
Let's
say
like
solar:
they
find
the
job
they
select
their
contractor.
Then
they
think
about
the
financing.
D
That's
where
we
fit
in,
and
we
work
mostly
with
contractors
as
being
one
of
their
financing
choices,
but
they
have
to
be
certified.
They
have
to
adhere
to
a
code
of
conduct.
We
do
a
lot
of
things
and
formalize
consumer
protection,
but
if
they
come
to
us
directly
we're
going
to
recommend
that
they
find
a
contractor
that
works
with
hero
and
it's
we
make
it
easy
for
contractors
to
participate,
but
they
do
have
to
get
certified.
Okay,.