HomeMy WebLinkAboutReso 36-12 PACE Program
RESOLUTION NO. 36 -12
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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AUTHORIZING THE CITY OF DUBLIN TO JOIN THE CALIFORNIA PACE PROGRAM;
AUTHORIZING THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY TO
CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL
ASSESSMENTS WITHIN THE TERRITORY OF THE CITY OF DUBLIN; AND AUTHORIZING
RELATED ACTIONS
WHEREAS, the City Council established a Fiscal Year 2011-2012 Strategic Initiative to
continue to develop economic incentives for retail, office, restaurants, and industrial users; and
WHEREAS, the California Enterprise Development Authority ("CEDA") is a joint exercise
of powers authority the members of which include numerous cities and counties in the State of
California, including the City OF Dublin (the "City"); and
WHEREAS, CEDA has established the California PACE program ("California PACE") to
allow the financing of certain renewable energy, energy efficiency and water efficiency
improvements (the "Improvements") through the levy of contractual assessments pursuant to
Chapter 29 of Division 7 of the Streets & Highways Code ("Chapter 29") and the issuance of
improvement bonds (the "Bonds") under the Improvement Bond Act of 1915 (Streets and
Highways Code Sections 8500 et seq.) (the "1915 Act") upon the security of the unpaid
contractual assessments; and
WHEREAS, Chapter 29 provides that assessments may be levied under its provisions
only with the free and willing consent of the owner of each lot or parcel on which an assessment
is levied at the time the assessment is levied; and
WHEREAS, the City desires to allow the owners of property within its jurisdiction
("Participating Property Owners") to participate in California PACE and to allow CEDA to
conduct assessment proceedings under Chapter 29 and to issue Bonds under the 1915 Act to
finance the Improvements; and
WHEREAS, CEDA will conduct assessment proceedings under Chapter 29 and issue
Bonds under the 1915 Act to finance Improvements; and
WHEREAS, the City Council has been presented with a proposed form of Resolution of
Intention (lithe ROI"), a copy of which is attached hereto as Exhibit A, to be utilized by CEDA in
connection with such assessment proceedings; and
WHEREAS, the territory within which assessments may be levied for California PACE
shall be coterminous with the City's official boundaries of record (lithe Proposed Boundaries") at
the time of the adoption of the ROI.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin, as
follows:
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Section 1. On the date hereof, the City Council hereby finds and determines that the issuance of
bonds by CEDA in connection with California PACE will provide significant public benefits,
including without limitation, savings in effective interest rate, bond preparation, bond
underwriting and bond issuance costs and reductions in effective user charges levied by water
and electricity providers within the boundaries of the City.
Section 2. The City Council hereby authorizes CEDA to, pursuant to Chapter 29 and with
respect to any property within the Proposed Boundaries, conduct assessment proceedings, levy
assessments, pursue remedies in the event of delinquencies and issue bonds or other forms of
indebtedness to finance the Improvements in connection with the California PACE Program,
provided that:
(1) Such proceedings are conducted pursuant to one or more Resolutions of Intention in
substantially the form of the ROI;
(2) The Participating Property Owners, who shall be the legal owners of such property,
voluntarily execute a contract pursuant to Chapter 29 and comply with other
applicable provisions of California law in order to accomplish the valid levy of
assessments; and
(3) The City will not be responsible for the conduct of any assessment proceedings; the
levy of assessments or any required remedial action in the case of delinquencies in
slJch assessment payments; or the issuance, sale or administration of the Bonds or
any other bonds issued in connection with California PACE.
Section 3. Pursuant to the requirements of Chapter 29, CEDA has prepared and will update
from time to time the "Program Report" for California PACE (the "Program Report"), and CEDA
will undertake assessment proceedings and the financing of Improvements as set forth in the
Program Report.
Section 4. The City Manager or her designee is hereby authorized and directed to make
applications for California PACE available to all property owners who wish to finance
Improvements.
Section 5. The City Manager or her designee is hereby authorized and directed to execute and
deliver such closing certificates, requisitions, agreements and related documents as are
reasonably required by CEDA in accordance with the Program Report to implement California
PACE for Participating Property Owners.
Section 6. The City Council hereby finds that adoption of this Resolution is not a "project" under
the California Environmental Quality Act ("CEQA"), because the Resolution does not involve any
commitment to a specific project which may result in a potentially significant physical impact on
the environment, as contemplated by Title 14, California Code of Regulations, Section
15378(b)( 4).
Section 7. This Resolution shall take effect immediately upon its adoption. The City Clerk is
hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of
CEDA.
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Section 8. Services related to the formation and administration of the assessment district will be
provided by CEDA at no cost to the City per the AB811 Services Agreement attached hereto as
Exhibit B.
Section 9. The City Manager is authorized to execute the Agreement attached hereto as Exhibit
B substantially in the form attached hereto and to undertake such further action as may be
necessary and desirable to carry out the intent of this Resolution.
PASSED, APPROVED AND ADOPTED this 20th day of March, 2012, by the following
vote:
AYES: Councilmembers Biddle, Hart, Swalwell, and Mayor Sbranti
NOES: None
ABSENT: Council member Hildenbrand
ABSTAIN: None
X-~,
Mayor
ATTE;J7 {. /J
Vbul ... F~
City Clerk
Reso No. 36-12, Adopted 3-20-12, Item 8.3
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Exhibit A to the Resolution
FORM OF RESOLUTION DECLARING INTENTION TO FINANCE
INSTALLATION OF DISTRffiUTED GENERATION RENEWABLE ENERGY
SOURCES, ENERGY EFFICIENCY AND WATER EFFICIENCY
IMPROVEMENTS
CITY OF
WHEREAS, the California Enterprise Development Authority ("CEDA") is authorized under the
authority granted CEDA pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the
State of California in accordance with Chapter 29 of Part 3 of Division 7 of the Streets & Highways Code
of the State of California ("Chapter 29") to authorize assessments to finance the installation of distributed
generation renewable energy sources, energy efficiency and water efficiency improvements that are
permanently fixed to real property ("Authorized Improvements"); and
WHEREAS, Chapter 29 authorizes CEDA to enter into contractual assessments to finance the
installation of Authorized Improvements in the City of (the "City"); and
WHEREAS, CEDA wishes to declare its intention to establish a California PACE program ("California
P ACE") in the City, pursuant to which CEDA, subject to certain conditions set forth below, would enter
into contractual assessments to finance the installation of Authorized Improvements in the City.
NOW, THEREFORE, BE IT RESOLVED by the California Enterprise Development Authority, as
follows:
Section 1. Findings. CEDA hereby finds and declares the following:
(a) The above recitals are true and correct.
(b) Energy conservation efforts, including the promotion of, energy-related Authorized
Improvements to residential, commercial, industrial, or other real property, are necessary to
address the issue of global climate change and the reduction of greenhouse gas emissions in
the City,
(c) W aterconservation efforts, including the promotion of water-related Authorized
Improvements to residential, commercial, industrial, or other real property, are necessary to
address the issue of chronic water shortages in California.
(d) The upfront cost of making residential, commercial, industrial, or other real property more
energy and water efficient, along with the fact that most comn~ercialloans for that purpose are
due on the sale of the property, prevents many property owners from installing Authorized
Improvements.
(e) A public purpose will be served by establishing a contractual assessment program, to be known as
California PACE, pursuant to which CEDA will finance the installation of Authorized
Improvements to residential, commercial, industrial, or other real property in the City.
Section 2. Determination of Public Interest. CEDA hereby determines that (a) it would be convenient,
advantageous, and'in the public interest to designate an area, which shall encompass the entire geographic
territory within the boundaries of the City, within which CEDA and property owners within the City may enter
into contractual assessments to finance the installation of Authorized Improvements pursuant to Chapter '29
and (b) it is in the public interest for CEDA to finance the installation of Authorized Improvements in the City
pursuantto Chapter 29.
Section 3. Identification of Authorized Improvements. CEDA hereby declares that it proposes to make
contractual assessment financing available to property owners to finance installation of Authorized
Improvements, including but not limited to those improvements detailed in the Report described in Section 8
below, as that Report may be amended from time to time.
Section 4. Identification of Boundades. Contractual assessments may be entered into by property o",mers
located within the entire geographic territory of the City; provided, however, that CEDA shall not enter into
contractual assessments to finance the installation of Authorized Improvements with the owner of any property
in the City unless requested to do so first by the City.
Section 5. Proposed Financing AlTangements. Under Chapter 29, CEDA may issue bonds, notes or other
forms of indebtedness pursuant to Chapter 29 that are payable by contractual assessments. Division 10
(commencing with Section 8500) of the Streets & Highways Code of the State (the "Improvement Bond Act of
1915") shall apply to any ihdebtednesss issued pursuant to Chapter 29, insofar as the Improvement Bond Act
of 1915 is not in conflict with Chapter 29. The creditworthiness of a property owner to participate in the.
financing of Authorized Improvements will be based on the criteria developed by the Program Administrator
in consultation with the California PACE financing team as on file with the Clerk. In connection with
indebtednesss issued under the Improvement Bond Act of 1915 that are payable from contractual
assessments, serial and/or term improvement bonds or other indebtedness shall be issued in such series
and shall mature in such principal amounts and at such times (not to exceed 20 years from the second day
of September next following their date) and at such rate or rates of interest (not to exceed the maximum
rate permitted by applicable law) as shall be determined by CEDA at the time of the issuance and sale of
the indebtedness. The provisions of Part 11.1 of the Improvement Bond Act of 1915 shall apply to the
calling of the bonds. It is the intention of CEDA to create a special reserve fund for the bonds under Part
16 of the Improvement Bond Act of 1915. CEDA will not advance available surplus funds from its
treasury to cure any deficiency in the redemption fund to be created with respect to the indebtedness;
provided, however, that this determination shall not prevent CEDA from, in its sole discretion, so
advancing funds. The bonds may be refunded under Division 11.5 of the California Streets and Highways
Code or other applicable laws permitting refunding, upon the conditions specified by and at the
determination of CEDA.
CEDA hereby authorizes the Program Administrator, after consultation with bond counsel and the
California PACE underwriter, to provide for the issuance of bonds, notes or other forms of indebtedness
permitted by Chapter 29 payable from contractual assessments.
In connection with the issuance of bonds payable from contractual assessments, CEDA expects to
obligate itself, through a covenant with the owners of the bonds, to exercise its foreclosure rights with
respect to delinquent contractual assessment installments under specified circumstances.
Section 6. Public Hearing. Pursuant to the Act, CEDA hereby orders that a public hearing be held
before this Board, at , on , 20 _ at _, for the purposes .of allowing
interested persons to object to or inquire about the proposed program or any of its particulars. The public
hearing may be continued from time to time as -determined by the Board for a time not exceeding a total
of 180 days_
At the time of the hearing, the Report described in Section 8 below shall be summarized and the
Commission shall afford all persons who are present an opportunity to comment upon, object to, or
present evidence with regard to the proposed contractual assessment program, the extent of the area
proposed to be included within the program, the terms and conditions of the draft Contract described in
Section 8 below, or the proposed financing provisions. Following the public hearing, CEDA may adopt a
resolution confirming the Report (the "Resolution Confirming Report") or may direct the Report's
modification in any respect, or may abandon the proceedings.
The Board hereby orders the Clerk to publish a notice of public hearing once a week for two successive
weeks. Two publications in a newspaper published once a week or more often, with at least five days
intervening between the respective publication dates not counting such publication dates, are sufficient.
The period of notice will commence upon the first day of publication and terminate at the end of the
fourteenth day. The first publication shall occur not later than 20 days before the date of the public
hearing.
Section 7. Notice to Water and Electric Providers. Pursuant to Section 5898.24 of the Streets &
Highways Code, written notice of the proposed contractual assessment program within the City to all
water and electric providers within the boundaries of the City has been provided.
Section 8. Report. The Commission hereby directs the Program Administrator for California PACE to
prepare and file with the Commission a report (the "Report") at or before the time of the public hearing
described in Section 6 above containing all of the following:
a) A map showing the boundaries of the territory within which contractual assessments are proposed
to be offered, as set forth in Section 4 above.
b) A draft contract (the "Contract") specifying the terms and conditions of the agreement between
CEDA and a property owner within the City.
c) A statement of CEDA's policies concerning contractual assessments including all of the
following:
(1) Identification of types of Authorized Improvements that may be fInanced through the use of
contractual assessments.
(2) Identification of CEDA official authorized to enter into contractual assessments on behalf of
CEDA.
(3) A maximum aggregate dollar amount of contractual assessments in the City.
(4) A method for setting requests from property owners for financing through contractual
assessments in priority order in the event that requests appear likely to exceed the
authorization amount.
d) A plan for raising a capital amount required to pay for work performed in connection with
contractual assessments. The plan may include the sale of a bond or bonds or other financing
relationship pursuant to Section 5898.28 of Chapter 29. The plan (i) shall include a statement of,
or method for determining, the interest rate and time period during which contracting property
owners would pay any assessment(ii) shall provide for any reserve fund or funds and (iii) shall
provide for the apportionment of all or any portion of the costs incidental to financing,
administration, and collection of the contractual assessment program among the consenting
property owners and CEDA.
e) A report on the results of the consultations with the County Auditor-Controller described in
Section 10 below concerning the additional fees, if any, that will be charged to CEDA for
incorporating the proposed contractual assessments into the assessments of the general taxes of the
County on real property, and a plan for financing the payment of those fees.
Section 9. Nature of Assessments. Assessments levied pursuant to Chapter 29, and the interest and any
penalties thereon, will constitute a lien against the lots and parcels of land on which they are made, until
they are paid. Unless otherwise directed by CEDA, the assessments shall be collected in the same manner
and at the same time as the general taxes of the County on real property are payable, and subject to the
same penalties and rell1edies and lien priorities in the event of delinquency and default.
Section 10. Consultations with County Auditor-Controller. CEDA hereby directs the Program
Administrator to enter into consultations with the County Auditor-Controller in order to reach agreement
on what additional fees, if any, will be charged to CEDA for incorporating the proposed contractual
assessments into the assessments of the general taxes of the County on real property.
Section n. Preparation of Current Roll of Assessment. Pursuant to Section 5898.24(c), CEDA hereby
designates the Program Administrator (or his/her designee) as the responsible party for annually preparing
the current roll of assessment obligations by assessor's parcel number on property subject to a voluntary
contractual assessment.
Section 12. Procedures for Responding to Inquiries. The Program Administrator shall establish
procedures to promptly respond to inquiries concerning current and future estimated liability for a
voluntary contractual assessment.
Section 13. Professionals Appointed. CEDA hereby appoints , A Professional Law
Corporation, , as bond counsel and disclosure counsel to CEDA in
connection with California PACE. The Commission hereby authorizes and directs an Authorized
Signatory of CEDA (as determined from time to time by the Commission by separate resolution) to enter
into appropriate agreements with such firm for its services to CEDA in connection with the matters
addressed in this Resolution.
Section 14. Effective Date. This resolution shall take effect immediately upon its adoption.
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PASSED AND ADOPTED by the California Enterprise Development Authority this
,20_
I, the undersigned, the duly appointed, and qualified member of the Commission of the California
Enterprise Development Authority, DO HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Commission of said Authority at a duly called meeting of the Commission of said
Authority held in accordance with law on ,20_
By:
Member
"
Exhibit B to the Resolution
AB 811 SERT/ICESAGREEMENT
The California EnteIprise Development Authority (CEDA) has contracted with the firm of FlGtree
Energy Resource Company (F'IGtree) to provide AB 811 formation and administmtion services to
participating member agencies.
SCOPE OF SERVICES (No Cost Services)
I Cali!ornia:Properry Assessed Clean Energy (California PACE)'Program
FIGtree will provide CEDA and the City of Dublin (the "City") formation and administration services in
connection with the California PACE progmm. These services will be provided at no cost to the City.
These services include, but are not limited to the following:
EXPERT RESOURCE. First and foremost, li'IGtree will act as the "expert resource" for the City and is
available to answer questions and advise the City on particular issues involving energy districts(s)
established per California Streets and Highways Code beginning with Sections 5898.1 0 (originally
approved under Assembly Bill 811 - AB811).
DATA COLLECTION. FIGtree will gather and review data pertinent to the formation of the Property
Assessed Clean Energy (California PACE) District. FIGtree will maintain and periodically update a
database of all parcels within the district and relevant parcel information.
ANNUAL ASSESSMENT ROLL. FIGtree will calculate the annual assessment for each parcel and
submit the amount for each parcel to the County Auditor/Controller in the format and medium required.
FORMATION PACE REPORT. li'IGtree will prepare the energy district formation Report as required
by Section 5898.22 of the California Streets and Highway Code.
RESOLUTIONS. FIGtree will prepare the required resolutions to be adopted by the City.
UTILITY NOTICES. :nG1ree will prepare and send the required notices that must be tmnsmitted to the
local utility companies.
ANNUAL REPORT. FIGtree will provide a comprehensive Annual Report that will show a detailed
listing of the amounts submitted to the assessment roll, details of delinquent assessments, paid off parcels '.
and release ofliens. .
I. Additiondl Services I
The team at FIGtree is readily available to assist the City in its endeavors to promote PACE
financing to its property owners. FIGtree can assist from organizing workshops to property
owners and contractors to preparing marketing materials.
FlGtree Energy Resource Companyl 9915 Mira Mesa Blvd, Suite 130., San Diego, CA 92131
Pagelof2
,
In the event that City would like to engage FIGtree to perform additional services above and
beyond the no cost Scope of Services, the additional services authorized by the City will be
billed at this rate or the then applicable hourly rate.
Title . Hourly Rate
Executive $ 270
Senior Consultant 225
Analyst 125
Clerical/Support 55
ANNUAL ASSESSAfENT COST RECO VERY
In order to be able to provide AB811 services to the City at no cost, revenues will be derived
under the California PACE program from multiple sources. One such source is the Annual
Assessment Cost Recovery (the "Cost Recovery").
The Cost Recovery is the revenue collected annually on the property tax rolls in the amount of
five percent (5%) of the annual assessment amount due by the property owner. The City
acknowledges that Cost Recovery collected on an arumal basis will be apportioned to the
following parties as follows:
COST RECOVERY SCHEDULE:
5% C os! Recove
0.75%
2.00%
2.25%
FIGtreeEnergy Resource Company
City of Dublin
Mahesh Shah
Jom Pattillo
CEO
Title
r 1
Date
City Manager
Title
r 1
Date
FIGtree Energy Resource Companyl 9915 Mira Mesa Blvd, Suite 130., San Diego, CA 92131
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