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Ord 1559 - ESTABLISHING A MUNICIPAL SOLAR UTILITY PROGRAMORDINANCE NO. 1559 URGENCY ORDINANCE ESTABLISHING A MUNICIPAL SOLAR UTILITY PROGRAM The Town Council of Los Gatos hereby ORDAINS: SECTION 1. Chapter 32 of the Town Code is hereby upended to add Article V, as follows: " Sec. 32 -29 Findings The Council hereby finds as follows: (a) The residents of the Town face the certainty of continued escalating prices for home energy supplies and continued dependence upon imported sources of energy. (b) Solar energy has been found. to be an inexhaustible, reliable and non - polluting energy resource that can contribute to the public health, safety and welfare of the citizens of Los Gatos by lessening dependence upon non - renewable and imported sources of energy.. (c) The high initial cost of purchasing and installing a solar energy device is the primary economic barrier to expanded solar energy use. Leasing of solar energy devices has proven to be an effective mans to reduce this economic barrier and may be an attractive economic alternative to ownership for many consumers. (d) Section 17052.5 of the State Revenue and Taxation Code restricts eligibility for the 55% California Solar Tax Credit for leased systems to lessors granted a permit from a municipal solar utility program established by ordinance prior to January 1, 1983. (e) The establishment of a municipal solar utility program can increase public awareness of solar energy alternatives and lead to a greater degree of con- surer protection and consumer confidence in leasing solar energy systems, thus substantially increasing the use of solar energy within the Town of Los Gatos. "Sec. 32 -30. Intent. It is the intent of this Article to establish a municipal solar utility within the Town of Los Gatos for the purpose of facilitating the direct leasing of solar energy equipment and to establish regulatory authority for any solar leasing opera- tions that may be conducted tinder the program. Sen : 12.=11_ Defirii tions For the purpose of this Article, the following words and phrases shall have the meanings ascribed to them by this section. (a) Municipal Solar Utility QISU) Any program conducted by a local government or its authorized agent to promote the utilization of renewal energy and energy conservation tech- nologies through educational, consumer protection or financial assistance programs. (b) Solar Lease Arrangement 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. (c) Leasing CLx.r'pLny Any person advertising, marketing, placing, and arranging, pur- suant to a lease arrangement, for installation and servicing of solar energy devices for a fee. (d) Solar Ene:rgy_'Device . Equipment and materials intended to be located on or affixed to real property that use solar energy directly to do any of the following: (1) Heat or cool a building or structure (2) Provide domestic hot water or hot water for recreational or therapeutic purposes (3) Provide process heat or mechanical energy (4) Generate electricity. Ira " Seca 32 -32 Regulation. of Solar Leasing Operations (a) No person shall operate as a certified solar leasing company under the Municipal Solar Utility Program as established herein without having ob- tained a valid solar leasing permit from the Town Clerk. Such a permit shall authorize the conduct of solar leasing operations under the Municipal Solar Utility Program for a period of three (3) years and shall be renewable. (b) The Town Council shall by resolution establish reasonable fees to cover the costs of administering this Article. (c) After the.effective date of this ordinance, and within forty -five (45) days after receiving the first written request from a leasing company for a solar leasing permit, the Town Council shall by resolution establish all requirements for obtaining certification under the Municipal Solar Utility Program. Such require- ments shall be limited to those which protect consumers against inexperienced or financially unstable solar leasing companies, sub- standard equipment or installation practices, or unfair lease arrangements." SECTION 2. It is necessary for the immediate preservation of the public health that this ordinance take effect immediately, because the solar utility program must be established prior to January 1, 1983 in order to obtain the benefits referred to in Section 32 -29 of the Town Code. SECTION 3. Based on the findings in Section 2, the ordinance takes effect immediately upon adoption. Within 15 days after this ordinance is adopted, the Town Clerk shall cause it to be published once in a newspaper of general circulation published and circulated in the Tcwn. This ordinance was adopted as an urgency ordinance of the Tom. of Los Gatos at a continued regular meeting of the Town Council on December 7, 1982, by the Big following vote: AYES: COUNCIL MEMBERS Joanne Benjamin., Terrence J. Daily, Thomas J. Ferri and Mayor Brent N Ventura NOES: COUNCII EMBERS Marlyn J. Rasmussen ABSTAIN: COUNCIU�BERS None ABSENT: COUNCIIERS None SIGNED: ATTEST: Cle k of ze Town. os 1 10 s -4-