HomeMy WebLinkAbout02-16-2016 Item 01 Property Assessed Clean Energy Programs (PACE)
Meeting Date: 2/16/2016
FROM: Michael Codron, Community Development Director
Prepared By: Xzandrea Fowler, Community Development Deputy Director
SUBJECT: ADOPTION OF RESOLUTIONS AND AGREEMENTS CONSENTING TO
THE INCLUSION OF PROPERTIES WITHIN THE INCORPORATED AREAS
OF THE CITY OF SAN LUIS OBISPO TO PARTICIPATE IN PROPERTY
ASSESSED CLEAN ENERGY (PACE) PROGRAMS
RECOMMENDATION
It is recommended that the City Council:
1. Adopt a resolution (Attachment A) approving an amendment to the Western Riverside
Council of Governments (WRCOG) Joint Powers Agreement to add the City as an
Associate Member in order to authorize the City’s participation in the California HERO
Program; and
2. Adopt a resolution (Attachment B) to join the California Home Finance Authority
(CHFA) JPA as an Associate Member in order to authorize the City’s participation in the
CHFA SB 555 Community Facilities District (YGrene program); and
3. Adopt a resolution (Attachment C) to join the California Home Finance Authority
(CHFA) JPA as an Associate Member in order to authorize the City’s participation in the
CHFA AB 811 Authority PACE Program (YGrene program) ; and
4. Authorize the Mayor to enter into and sign the individual agreements with the PACE
program providers (Attachments D and E).
REPORT-IN-BRIEF
Property Assessed Clean Energy (PACE) is a financing mechanism that allows property owners
to finance eligible energy and water efficiency, and renewable energy projects, by adding the
cost as an assessment to the property tax bill. This mechanism eliminates upfront costs and
allows repayment to be made over a long timeframe, typically from five to twenty years.
It is common practice for local governments to enter into agreements with PACE administrators
because it allows the local government to establish certain guidelines and best practices for
PACE program implementation. These guidelines and best practices can include, but are not
limited to, integration with City and/or County residential energy efficiency programs, increa sed
consumer protections, ability to terminate programs, and guaranteed access to program related
data.
Beginning in 2009, the City Council supported efforts to bringing PACE financing programs to
San Luis Obispo. Council adopted a resolution that enabled San Luis Obispo property owners to
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participate in the PACE program that is operated by CaliforniaFIRST. However, loans were not
made available to residential consumers until July 2014. The delay was due to concerns
expressed by Federal Housing Financing Agency (FHFA) and its determination that PACE loans
would not be supported as superior liens by mortgage lienholders such as Fannie Mae or Freddie
Mac. In 2014, the State of California established a loan-loss program to address these concerns
and subsequently, CaliforniaFIRST made residential loans available.
Recently, other PACE program providers have approached San Luis Obispo County jurisdictions
about adding their financing program to the available options. Currently, in addition to the City
of San Luis Obispo, the following local cities allow PACE programs: Arroyo Grande,
Atascadero, Grover Beach, Morro Bay and Paso Robles. Staff from those cities and the County
conferred and agreed that adding additional PACE program providers would benefit the
community by adding choice for residents and businesses interested in financing energy and
water conservation projects.
BACKGROUND
Board of Supervisors Action
On June 2, 2015, the San Luis Obispo County Board of Supervisors directed County Planning &
Building Staff to implement PACE, by directing staff to develop evaluation criteria for a Request
for Proposal (RFP) process to vet and select the most qualified PACE provider(s) for the County
of San Luis Obispo.
County Planning and Building staff initiated the RFP on August 21, 2015. A selection
committee including representatives from multiple County departments and the City of San Luis
Obispo was formed to review and score each proposal received based on a standardized set of
criteria. Following proposal review, interviews were conducted and other counties and cities
were contacted regarding their experience and satisfaction with those PACE administrators.
The selection committee recommended three PACE administrators, because having multiple
qualified providers fosters a more competitive marketplace that maximizes the options available
to property owners participating in the PACE program.
On November 17, 2015 the Board of Supervisors adopted resolutions that added the County as
an Associate Member to Joint Powers Agreements in order to authorize properties within the
unincorporated areas of the County to participate in CaliforniaFIRST, HERO, and the YGrene
PACE financing programs.
By consensus, staff from the County and the cities agreed that all participating jurisdictions
should recommend to their elected bodies to offer the same program(s) in an effort to minimize
market confusion for customers and contractors and to promote energy efficiency programs in a
more cohesive manner.
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DISCUSSION
PACE Program Overview
The CaliforniaFIRST, HERO and YGrene PACE programs, recently authorized by the Board of
Supervisors, would allow property owners in San Luis Obispo County and other participating
cities to finance renewable energy, energy and water efficiency improvements, and electric
vehicle charging infrastructure on their property. If a property owner chooses to participate, the
installed improvements will be financed by the issuance of bonds by a joint powers authority,
and will be collected together with property taxes. The bonds are secured by a voluntary
contractual assessment levied on such owner’s property, with no resources from the local
government or other participating jurisdictions. Depending on the specific PACE program, this
financing is available for eligible improvements on both residential and non-residential
properties.
PACE financing programs can be set up and administered under the following statutory
frameworks:
1. The Improvement Act of 1911 (Improvement Act) as amended by AB 811, or
2. The Mello-Roos Act as amended by SB 555.
Although, both SB 555 and AB 811 PACE program methods accomplish the same purpose,
several important statutory and structural differences exist between program methods that
operate under these statues.
AB 811 allows for the formation of assessment districts to provide for the financing of clean
energy and water conservation improvements on commercial and residential properties. The
CaliforniaFIRST and HERO programs all involve assessment districts formed pursuant to AB
811. However, CaliforniaFIRST was originally authorized to provide PACE programs to City of
San Luis Obispo property owners pursuant to Chapter 29 of Division 7 of the Streets &
Highways Code and the issuance of improvement bonds under the Improvement Bond Act of
1915.
SB 555 authorizes the formation of Community Facilities Districts (“CFDs”) to finance the
acquisition, installation and improvement of energy efficiency, water conservation and
renewable energy systems on real property. Under SB 555, parcels are annexed into the district
with each participating owner consenting in writing to the annexation. As with AB 811 method,
a special tax to repay project financing is then levied against the property owner. The YGrene
program that is currently be offered involves annexation into a CFD.
Participation in the HERO and YGrene programs both require that the City must become an
Associate Member of their Joint Powers Authorities. There are no dues or other costs for the City
associated with membership.
Federal Housing Finance Agency (FHFA) – Fannie Mae/Freddie Mac
The Federal Housing Finance Agency’s (FHFA) concerns regarding PACE lien priority remains,
because as a local assessment, the lien would be superior to Fannie Mae/ Freddie Mac’s
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mortgage interest. Due to this objection, on August 31, 2010, mortgage originators were
informed that the FHFA would not be purchasing any mortgages with PACE liens. In 2014, in
response to FHFA concerns, the State of California’s established a loan loss reserve fund for
residential PACE Programs to provide a level of risk mitigation. Although the loan loss reserve
fund has been established and there has been a lack of related adverse consequences experienced
by ongoing programs, the FHFA’s position has not changed.
Staff recognizes that risks to individual homeowners remain because FHFA has not changed its
stated policy that Fannie Mae and Freddie Mac should not purchase mortgages on properties
encumbered by residential PACE programs. PACE providers have the responsibility to di sclose
the risks to prospective participants so that they can decide whether or not to participate and the
program administrators will execute an indemnification and insurance agreement.
Given the establishment of the State’s PACE Loss Reserve Program as well as the success of
PACE programs statewide, staff recommends that the City of San Luis Obispo continue
expanding PACE by adopting the resolutions authorizing the recommended PACE programs.
PACE program benefits
Savings: Energy and water savings are possible depending on the improvements
financed.
Eligibility: Property owners can choose to participate in the program at their discretion.
Improvements and properties must meet eligibility criteria in order to qualify for
financing.
Payment obligation stays with the property: The voluntary contractual assessment stays
with the property upon transfer of ownership. Certain residential conforming mortgage
providers will, however, require the assessment be paid off at the time the property is
refinanced or sold.
Prepayment option: The property owner can choose to pay off the assessments at any
time, subject to applicable prepayment penalties.
Potential Benefits to the City of San Luis Obispo
Potential GHG emission reduction and economic benefits resulting from increased energy
and water conservation by residents and businesses and local job creation to help meet
GHG reduction goals in the City’s Climate Action Plan.
The City is not obligated to repay the bonds or to pay any delinquent assessments levied
on the participating properties.
“Turn-key” program. All PACE program and assessment administration, bond issuance
and bond administration functions are handled by the PACE program administrators
(CaliforniaFIRST, HERO, and YGrene). Little, if any, City staff time is needed to
participate in the PACE program.
Adding additional PACE financing programs increasing financing options for city
residents and businesses.
The proposed resolutions would enable the recommended PACE programs to be offered to the
owners of property located within the City who wish to participate.
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Recommended PACE Programs
California Statewide Communities Development Authority – CaliforniaFIRST Program
The California Statewide Communities Development Authority is a state-wide JPA formed by
the California State Associations of Counties and the League of California Cities. The City is a
member of CSCDA.
CSCDA’s PACE program is known as CaliforniaFIRST and is administered by Renewable
Funding. CSCDA uses an “open market” source of funding to finance the loans made to property
owners. Under this model, the property owner arranges the financing with a private lender.
CSCDA then issues a bond, secured by the assessment, to the private lender.
In 2010 CSCDA suspended launch of the CaliforniaFIRST residential program due the FHFA
issues discussed above, but moved forward with its commercial program. In 2014,
CaliforniaFIRST’s launched their residential program, after developing underwriting standards
and disclosures in an effort to address the risks related to residential PACE, and the State of
California’s establishment of a loan loss reserve fund for residential PACE Programs to provide
a level of risk mitigation.
Although the City has already authorized CSCDA’s CaliforniaFIRST program to be offered in
San Luis Obispo, its program administrator will need to execute an indemnification and
insurance agreement to further mitigate the level of risk.
California Home Finance Authority – YGrene Program
California Home Finance Authority ("CHFA”), which is in the process of formally changing its
name to Golden State Finance Authority, is a joint exercise of powers authority established
pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California
and the Joint Power Agreement entered into on July 1, 1993, as amended from time to time.
CHFA has established two Property Assessed Clean Energy (“PACE”) financing programs for
residential, commercial, industrial and agricultural properties to address high up-front costs for
property owners who wish to improve their properties through installation of measures that will
generate renewable energy or reduce their energy and water use. By offering low cost financing,
CHFA's PACE programs allow construction of these projects to proceed and, in the process,
stimulate building activity and the overall local economy, reduce peak energy demand, increase
property values, and generate savings on utility bills for property owners.
CHFA contracts with YGrene Energy Fund CA LLC (YGrene) to serve as the program
administrator and to operate the YGrene Works for California PACE financing program.
CHFA sought and has completed the process of validation for both the SB 555 and the AB 811
programs, as described above with the Superior Court for the County of Sacramento. As of 2015,
the CHF SB 555 PACE program was fully operational.
Although CHFA is implementing only the SB 555 PACE program at this time, CHFA chose to
form, validate and maintain both the SB 555 and AB 811 programs offerings to ensu re that the
YGrene program remains the most innovative, cost effective and most secure PACE program in
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the state.
Should market conditions, consumer demand and/or legislative changes affect one PACE
program more that another, CHFA would have the flexibility to offer the program that best
supports CHFA's vision of service without any interruption to participating counties and cities
and their property owners. CHFA intends to maximize the benefits of both program offerings.
To support a more competitive marketplace, staff is recommending that the Council adopt two
resolutions that would authorize CHFA to offer both PACE program models:
1) The first resolution authorizes the City to join the JPA as an Associate Member and
permits property owners within the incorporated areas of the City to participate in the
CHFA SB 555 Community Facilities District.
2) The second resolution authorizes the City to join the JPA as an Associate Member and
permits property owners within the incorporated areas of the City to partici pate in the
CHFA AB 811 Authority PACE Program.
Each resolution also authorizes CHFA (1) to accept applications from property owners within the
City’s incorporated area to finance authorized improvements; and (2) to conduct proceedings and
levy special taxes or contractual assessments, as applicable, on the property of participating
owners.
Western Riverside Council of Governments – HERO Program
Western Riverside Council of Governments (WRCOG) is a joint exercise of powers authority
established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of
California and the Joint Powers Agreement entered into on April 1, 1991, as amended from time
to time.
WRCOG’s PACE program is known as HERO and is administered by Renovate Americ a, Inc.
The HERO program finances installation of renewable energy, energy or water efficiency
products, or electric charging infrastructure that are permanently fixed to a property owner’s real
property. The program is available for eligible improvements on both residential and non-
residential properties.
The HERO program is similar to the CaliforniaFIRST program, in that the bonds are secured by
voluntary contractual assessments levied on such owner’s property, with no recourse to the City
or other participating jurisdictions.
Property owner participation is completely voluntary. Property owners who wish to participate in
the program agree to repay the amount borrowed through the voluntary contractual assessment
collected together with their property taxes.
CONCLUSION
The City of San Luis Obispo previously approved participation in the CaliforniaFIRST PACE
program. Adding additional PACE programs, to be administered by HERO and YGrene,
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provides more options for City property owners, and will not add to or require any additional
responsibilities for the City.
CONCURRENCES
The City Attorney’s Office has reviewed and approved the Resolutions and JPA amendments as
to form and content.
ENVIRONMENTAL REVIEW
This activity is not a Project as defined in CEQA Guidelines Section 15378(b) (5). Based on
15378(b) (5) the activity does not meet the definition of a “Project” and would therefore not be
subject to CEQA pursuant to Section 15060(c) (3) of the State CEQA Guidelines.
FISCAL IMPACT
There are no fiscal impacts associated with the recommended actions. There is no cost to the
City to become an associate member of the JPA or by opting into the PACE program described
in this report. The City will have no administrative responsibilities, marketing obligations, or
financial obligations associated with the PACE program.
ALTERNATIVES
Alternative #1: Do not participate in the recommended PACE programs
Pros: No additional staff effort would be needed, freeing up resources to work on other City
initiatives.
Cons: Would limit the City’s ability to achieve progress on implementation of the City’s Climate
Action Plan, specifically related to GHG reduction.
Reason for not recommending: Significant progress needs to be achieved on Implementation of
the Climate Action Plan in order to achieve the City’s target GHG reduction by 2020 and tools,
like PACE, can help to achieve those goals.
Alternative #2: San Luis Obispo could develop and administer its own PACE program
Pros: The City would have complete control over its ability to develop and administer a PACE
program.
Cons: Would require approximately an additional 2-4 FTEs, depending on market demand in the
City, to develop and administer a program. Additionally, would likely require the City to allocate
significant funding from the General Fund and/or alternative funding source funding for start-up
costs.
Reason for not recommending: Staff does not believe this is a viable option given staffing and
budget limitations.
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Attachments:
a - HERO Resolution
b - YGrene Resolution - CFD SB 555
c - YGrene Resolution - PACE AB 811
d - HERO Agreement (Exhibit A - JPA Amendment)
e - YGrene Agreement (Exhibit A -JPA Agreement)
f - CaliforniaFIRST Resolution_Signed
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February 16, 2016
Property Assessed
Clean Energy
City Council
Today’s Discussions
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What is PACE ?
PACE Programs Administration
County Board of Supervisors Action
Program Highlights for Property Owners
Program Benefits for the City
PACE Program Concerns
Staff Recommendation
What is PACE?
•Property Assessed Clean Energy (PACE) is a financing
mechanism that allows property owners to finance eligible
energy and water efficiency, and renewable energy
projects, by adding the cost as an assessment to the
property tax bill.
•In 2009 the City supported efforts to bring PACE financing
programs to San Luis Obispo when the Council adopted a
resolution enabling property owners participation in the
residential PACE program that is operated by
CaliforniaFIRST.
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PACE Program Administration
•PACE programs are initiated by a local public entity (City
or County) who typically partners with a company to
administer the Program.
•Property owners get a site evaluation and quote for energy
and/or water efficiency improvements with an contractor.
Then apply for improvement financing with the authorized
PACE program provider.
•Once financing is approved, the work is completed, and
the PACE program administrator pays the contractor
directly.
•Improvements are then paid via an assessment on the
property tax bill for a set term.
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County Board of Supervisors Action
•June 2015 - The Board directed County staff to implement
PACE, by developing criteria for a RFP process to vet and
select the most qualified PACE providers.
•County staff and City staff reviewed the proposal received
and recommended three PACE administrators
(CaliforniaFIRST, HERO, and Ygrene) to foster a
competitive marketplace while maximizing property owner
options.
•November 2015 – The Board adopted resolutions
authorizing properties in the unincorporated areas of the
County to participate in PACE financing programs.
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Program Highlights for Property Owners
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•No upfront cost or equity reduction – pay for improvements through
assessments on the property tax bill instead of home equity loans or other
conventional personal loans
•Savings – increased energy and water savings
•Voluntary - participation is voluntary
•Eligibility – improvements and properties must meet eligibility criteria in
order to qualify for financing
•Payment Obligation stays with the property – assessment stays with
the property upon transfer of ownership (unless mortgage lender requires
that the assessment be paid in full prior to refinancing or sale)
•Prepayment Option – assessments can be paid off at any time during the
financing term (may be subject to penalties)
Program Benefits for the City
•Achieves goals outlined in the City’s Climate Action Plan
•Potential reduction of GHG emissions
•Potential increase in energy and water conservation by
residents and businesses
•Access to program related data for monitoring
•Enhances consumer protections
•Increases financing options available to residents and
businesses for energy and water efficiency improvements
•No City financial obligations
•Limited City staff resources needed for implementation
PACE Program Concerns
Federal Housing Finance Authority (FHFA) concerns:
•PACE liens are super priority liens, like property tax liens,
and therefore take first position
•For this reason Fannie Mae/ Freddie Mac will not purchase a
mortgage for a property with a PACE lien
Response to concerns:
•California established a PACE Loan Loss Reserve Program to
provide a level of risk mitigation
•FHFA is working with the PACE Administrators to develop
guidance on how to handle PACE liens
PACE Program Concerns
Consumer Disclosure and Protection concerns:
•Lack of transparency regarding financing details, FHFA
position on PACE liens, property transfer issues, etc.
•Lack of information regarding the availability of rebates
Response to concerns:
•Property owners will receive a summary of financing details
(including assessments, financing installments, prepayment
penalities, etc.)
• Acknowledgment of FHFA position disclosure
•Contractors will provide information on available rebates
Staff Recommendation
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1.Adopt a resolution (Attachment A) approving an amendment to the
Western Riverside Council of Governments Joint Powers Agreement to
add the City as an Associate Member in order to authorize the City’s
participation in the California HERO Program; and
2.Adopt a resolution (Attachment B) to join the California Home Finance
Authority (CHFA) Joint Powers Agreement as an Associate Member in
order to authorize the City’s participation in the CHFA SB 555 Community
Facilities District (Ygrene program); and
3.Adopt a resolution (Attachment C) to join the CHFA Joint Powers
Agreement as an Associate Member in order to authorize the City’s
participation in the CHFA AB 811 Authority PACE Program (Ygrene
program); and
4.Authorize the Mayor to enter into and sign the individual agreements with
the PACE program providers (Attachments D and E).
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Questions
RESOLUTION NO. (2016 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, CONSENTING TO INCLUSION OF
PROPERTIES WITHIN THE CITY’S JURISDICTION IN THE
CALIFORNIA HERO PROGRAM TO FINANCE DISTRIBUTED
GENERATION RENEWABLE ENERGY SOURCES, ENERGY AND
WATER EFFICIENCY IMPROVEMENTS AND ELECTRIC VEHICLE
CHARGING INFRASTRUCTURE AND APPROVING AMENDMENT OF
THE JOINT POWERS AGREEMENT RELATED THERETO
WHEREAS, the Western Riverside Council of Governments (“Authority”) is joint
exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the
Government Code of the State of California (Section 6500 and following) (the “Act”) and the
Joint Powers Agreement entered into on April 1, 1991, as amended from tim e to time (the
“Authority JPA”); and
WHEREAS, the Authority has established the California HERO Program to provide for
the financing of renewable energy distributed generation sources, energy and water efficiency
improvements and electric vehicle charging infrastructure (the “Improvements”) pursuant to
Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and
Highways Code (“Chapter 29”) within counties and cities throughout the State of California that
elect to participate in such program; and
WHEREAS, the City of San Luis Obispo (the “City”) is committed to development of
renewable energy sources and energy efficiency improvements, reduction of greenhouse gases,
protection of our environment, and reversal of climate change; and
WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist
property owners in financing the cost of installing Improvements through a voluntary contractual
assessment program; and
WHEREAS, installation of such Improvements by property owners within the
jurisdictional boundaries of the counties and cities that are participating in the California HERO
Program would promote the purpose cited above; and
WHEREAS, the City wishes to provide innovative solutions to its property owners to
achieve energy and water efficiency and independence, and in doing so cooperate with the
Authority in order to efficiently and economically assist property owners in the City with
financing such Improvements; and
WHEREAS, the Authority has established the California HERO Program, which is a
voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally
made and entered into on April 1, 1991, as amended to date, and the Amendment to Joint Powers
Agreement Adding the City of San Luis Obispo as an Associate Member of the Western
Riverside Council of Governments to Permit the Provision of Property Assessed Clean Energy
(PACE) Program Services within the City (the “JPA Amendment”), by and between Authority
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Resolution No._____ (2016 Series)
Page 2
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and the City, a copy of which is attached as Exhibit “A” hereto, to assist property owners within
the jurisdiction boundary of the City in financing the cost of installing Improvements; and
WHEREAS, the City will not be responsible for the conduct of any assessment
proceedings; the levy and collection of assessments or any required remedial action in the case of
delinquencies in the payment of any assessments or the issuance, sale or administration of any
bonds issued in connection with the California HERO Program.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. On the date hereof, the City Council held a public hearing and the City
Council hereby finds and declares that properties in the jurisdiction boundary of the City will be
benefited by the availability of the California HERO Program to finance the installation of the
Improvements.
SECTION 2. The City Council hereby consents to inclusion in the California HERO
Program of all of the properties in the jurisdiction boundary of the City and to the Improvements,
upon the request and by voluntary agreement of owners of such properties, in compliance with
the laws, rules and regulations applicable to such program; and to the assumption of jurisdiction
thereover by Authority for the purposes thereof.
SECTION 3. The consent of this City Council constitutes assent to the assumption of
jurisdiction by Authority for all purposes of the California HERO Program and authorizes
Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every
step required for or suitable for financing the Improvements, including levying, collecting and
enforcement of contractual assessments to finance the Improvements and the issuance and
enforcement of bonds to represent such contractual assessments.
SECTION 4. This City Council hereby approves JPA Amendment and authorizes the
execution thereof by appropriate City officials.
SECTION 5. City staff is authorized and directed to coordinate with Authority staff to
facilitate operation of the California HERO Program within the City, and report back
periodically to this City Council on the success of such program.
SECTION 6. The City Council hereby finds that adoption of this Resolution is not a
“project” under the California Environmental Quality Act, 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 the Authority Executive Committee.
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Resolution No._____ (2016 Series)
Page 3
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Upon motion of Council Member _________, seconded by Council Member ________,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ____day of __________________ 2016.
Mayor Jan Marx
ATTEST:
Jon Ansolabehere
Interim City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Jon Ansolabehere
Interim City Clerk
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Resolution No._____ (2016 Series)
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Exhibit A JPA Agreement [to be inserted]
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RESOLUTION NO. (2016 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, CONSENTING TO INCLUSION OF
PROPERTIES WITHIN THE CITY’S JURISDICTION IN THE
CALIFORNIA HOME FINANCE AUTHORITY COMMUNITY
FACILITIES DISTRICT NO. 2014-1 (CLEAN ENERGY) TO FINANCE
RENEWABLE ENERGY IMPROVEMENTS, ENERGY EFFICIENCY
AND WATER CONSERVATION IMPROVEMENTS AND ELECTRIC
VEHICLE CHARGING INFRASTRUCTURE AND APPROVING
ASSOCIATE MEMBERSHIP IN THE JOINT EXERCISE OF POWERS
AUTHORITY RELATED THERETO
WHEREAS, the California Home Finance Authority, a California joint powers
authority, (the “Authority”) has established the Community Facilities District No. 2014-1(Clean
Energy) in accordance with the Mello-Roos Community Facilities Act, set forth in sections
53311 through 53368.3 of the California Government Code (the “Act”) and particularly in
accordance with sections 53313.5(l) and 53328.1(a) (the “District”); and
WHEREAS, the purpose of the District is to finance or refinance (including the payment
of interest) the acquisition, installation, and improvement of energy efficiency, water
conservation, renewable energy and electric vehicle charging infrastructure improvements
permanently affixed to private or publicly-owned real property (the “Authorized
Improvements”); and
WHEREAS, the Authority is in the process of amending the Authority Joint Powers
Agreement (the “Authority JPA”) to formally change its name to the Golden State Finance
Authority; and
WHEREAS, the City of San Luis Obispo is committed to development of renewable
energy generation and energy efficiency improvements, reduction of greenhouse gases, and
protection of the environment; and
WHEREAS, in the Act, the Legislature has authorized a parcel within the territory of the
District to annex to the District and be subject to the special tax levy of the District only (i) if the
city or county within which the parcel is located has consented, by the adoption of a resolution
by the applicable city council or county board of supervis ors, to the inclusion of parcels within
its boundaries in the District and (ii) with the unanimous written approval of the owner or owners
of the parcel when it is annexed (the “Unanimous Approval Agreement”), which, as provided in
section 53329.6 of the Act, shall constitute the election required by the California Constitution;
and
WHEREAS, the City wishes to provide innovative solutions to its property owners to
achieve energy efficiency and water conservation and in doing so cooperate with Authority in
order to efficiently and economically assist property owners the City in financing such
Authorized Improvements; and
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Resolution No._____ (2016 Series) Page 2
R ______
WHEREAS, the Authority has established the District, as permitted by the Act, the
Authority JPA, originally made and entered into July 1, 1993, as amended to date, and the City,
desires to become an Associate Member of the JPA by execution of the JPA Agreement, a copy
of which is attached as Exhibit “A” hereto, to participate in the programs of the JPA and, to
assist property owners within the incorporated area of the City in financing the cost of installing
Authorized Improvements; and
WHEREAS, the City will not be responsible for the conduct of any special tax
proceedings; the levy and collection of special taxes or any required remedial action in the case
of delinquencies in the payment of any special taxes in connection with the District.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. On the date hereof, the City Council held a public hearing and the City
Council hereby finds and declares that properties in the City’s incorporated area will be
benefited by the availability of the Authority CFD No. 2014-1 (Clean Energy) to finance the
installation of the Authorized Improvements.
SECTION 2. The City Council hereby consents to inclusion in the Authority CFD No.
2014-1 (Clean Energy) of all of the properties in the incorporated area within the City and to the
Authorized Improvements, upon the request of and execution of the Unanimous Approval
Agreement by the owners of such properties when such properties are annexed, in compliance
with the laws, rules and regulations applicable to such program; and to the assumption of
jurisdiction thereover by Authority for the purposes thereof.
SECTION 3. The consent of this City Council constitutes assent to the assumption of
jurisdiction by Authority for all purposes of the Authority CFD No. 2014-1 (Clean Energy) and
authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each
and every step required for or suitable for financing the Authorized Improvements.
SECTION 4. This City Council hereby approves joining the JPA as an Associate
Member and authorizes the execution by appropriate City officials of any necessary documents
to effectuate such membership.
SECTION 5. City staff is authorized and directed to coordinate with Authority staff to
facilitate operation of the Authority CFD No. 2014-1 (Clean Energy) within the City, and report
back periodically to this City Council on the success of such program.
SECTION 6. The City Council hereby finds that adoption of this Resolution is not a
“project” under the California Environmental Quality Act, 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).
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Resolution No._____ (2016 Series) Page 3
R ______
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 the Authority.
Upon motion of Council Member _________, seconded by Council Member ________,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2016.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Jon Ansolabehere
Interim City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Jon Ansolabehere
Interim City Clerk
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Resolution No._____ (2016 Series) Page 4
R ______
Exhibit A JPA Agreement [to be inserted]
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RESOLUTION NO. _________(2016 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, CONSENTING TO INCLUSION OF
PROPERTIES WITHIN THE CITY’S JURISDICTION IN THE
CALIFORNIA HOME FINANCE AUTHORITY, PROGRAM TO
FINANCE RENEWABLE ENERGY GENERATION, ENERGY AND
WATER EFFICIENCY IMPROVEMENTS AND ELECTRIC VEHICLE
CHARGING INFRASTRUCTURE AND APPROVING ASSOCIATE
MEMBERSHIP IN THE JOINT EXERCISE OF POWERS AUTHORITY
RELATED THERETO
WHEREAS, the California Home Finance Authority (“Authority”) is a joint exercise of
powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government
Code of the State of California (Section 6500 and following) (the “Act”) and the Joint Power
Agreement entered into on July 1, 1993, as amended from time to time (the “Authority JPA”);
and
WHEREAS, the Authority is in the process of amending the Authority JPA to formally
change its name to the Golden State Finance Authority; and
WHEREAS, Authority has established a property-assessed clean energy (“PACE”)
Program (the “Authority PACE Program”) to provide for the financing of renewable energy
generation, energy and water efficiency improvements and electric vehicle charging
infrastructure (the “Improvements”) pursuant to Chapter 29 of the Improvement Bond Act of
1911, being Division 7 of the California Streets and Highways Code (“Chapter 29”) within
counties and cities throughout the State of California that elect to participate in such program;
and
WHEREAS, City of San Luis Obispo (the “City”) is committed to development of
renewable energy generation and energy and water efficiency improvements, reduction of
greenhouse gases, and protection of the environment; and
WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist
property owners in financing the cost of installing Improvements through a voluntary contractual
assessment program; and
WHEREAS, installation of such Improvements by property owners within the
jurisdictional boundaries of the counties and cities that are participating in the Authority PACE
Program would promote the purposes cited above; and
WHEREAS, the City wishes to provide innovative solutions to its property owners to
achieve energy and water efficiency, and in doing so cooperate with Authority in order to
efficiently and economically assist property owners within the City in financing such
Improvements; and
WHEREAS, the Authority has established the Authority PACE Program, which is such a
voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally
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Resolution No. _____(2016 Series) Page 2
made and entered into July 1, 1993, as amended to date, and the City, desires to become an
Associate Member of the JPA by execution of the JPA Agreement, a copy of which is attached
as Exhibit “A” hereto, to participate in the programs of the JPA and to assist property owners
within the jurisdiction of the City in financing the cost of installing Improvements; and
WHEREAS, the City will not be responsible for the conduct of any assessment
proceedings; the levy and collection of assessments or any required remedial action in the case of
delinquencies in the payment of any assessments or the issuance, sale or administration of any
bonds issued in connection with the Authority PACE Program.
NOW, THEREFORE, BE IT RESOLVED THAT by the Council of the City of San
Luis Obispo as follows:
SECTION 1. This City Council finds and declares that properties in the City’s
incorporated area will be benefited by the availability of the Authority PACE Program to finance
the installation of the Improvements.
SECTION 2. This City Council consents to inclusion in the Authority PACE Program of
all of the properties in the jurisdictional boundaries of the City and to the Improvements, upon
the request by and voluntary agreement of owners of such properties, in compliance with the
laws, rules and regulations applicable to such program; and to the assumption of jurisdiction
thereover by Authority for the purposes thereof.
SECTION 3. The consent of this City Council constitutes assent to the assumption of
jurisdiction by Authority for all purposes of the Authority PACE Program and authorizes
Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every
step required for or suitable for financing the Improvements, including the levying, collecting
and enforcement of the contractual assessments to finance the Improvements and the issuance
and enforcement of bonds to represent such contractual assessments.
SECTION 4. This City Council hereby approves joining the JPA as an Associate
Member and authorizes the execution by appropriate City officials of any necessary documents
to effectuate such membership.
SECTION 5. City staff is authorized and directed to coordinate with Authority staff to
facilitate operation of the Authority PACE Program within the City, and report back periodically
to this City Council on the success of such program.
SECTION 6. The City Council hereby finds that adoption of this Resolution is not a
“project” under the California Environmental Quality Act, 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 Cit y
Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority.
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Resolution No. _____(2016 Series) Page 3
Upon motion of _______________, seconded by __________________, and on the
following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2016.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Jon Ansolabehere
Interim City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Jon Ansolabehere
Interim City Clerk
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Resolution No. _____(2016 Series) Page 1
Exhibit A
JPA Agreement
[to be inserted]
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AMENDMENT TO THE JOINT POWERS AGREEMENT
ADDING CITY OF SAN LUIS OBISPO AS
AN ASSOCIATE MEMBER OF THE
WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS
TO PERMIT THE PROVISION OF PROPERTY ASSESSED
CLEAN ENERGY (PACE) PROGRAM SERVICES WITH
SUCH CITY
This Amendment to the Joint Powers Agreement (“JPA Amendment”) is made and
entered into on the ___day of _____, 2016, by City of San Luis Obispo (“City”) and the Western
Riverside Council of Governments (“Authority”) (collectively the “Parties”).
RECITALS
WHEREAS, Authority is a joint exercise of powers authority established pursuant to
Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500
and following) (the “Joint Exercise of Powers Act”) and the Joint Power Agreement entered into
on April 1, 1991, as amended from time to time (the “Authority JPA”); and
WHEREAS, as of October 1, 2012, Authority had 18 member entities (the “Regular
Members”).
WHEREAS, Chapter 29 of the Improvement Act of 1911, being Division 7 of the
California Streets and Highways Code (“Chapter 29”) authorizes cities, counties, and cities and
counties to establish voluntary contractual assessment programs, commonly referred to as a
Property Assessed Clean Energy (“PACE”) program, to fund certain renewable energy sources,
energy and water efficiency improvements, and electric vehicle charging infrastructure (the
“Improvements”) that are permanently fixed to residential, commercial, industrial, agricultural or
other real property; and
WHEREAS, Authority intends to establish a PACE program to be known as the
“California HERO Program” pursuant to Chapter 29 as now enacted or as such legislation may
be amended hereafter, which will authorize the implementation of a PACE financing program for
cities and county throughout the state; and
WHEREAS, City desires to allow owners of property within its jurisdiction to
participate in the California HERO Program and to allow Authority to conduct proceedings
under Chapter 29 to finance Improvements to be installed on such properties; and
WHEREAS, this JPA Amendment will permit City to become an Associate Member of
Authority and to participate in California HERO Program for the purpose of facilitating the
implementation of such program within the jurisdiction of City; and
WHEREAS, pursuant to the Joint Exercise of Powers Act, the Parties are approving this
JPA Agreement to allow for the provision of PACE services, including the operation of a PACE
financing program, within the incorporated territory of the City; and
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Exhibit A – Joint Powers Amendment
Page 2
A - 2
WHEREAS, the JPA Amendment sets forth the rights, obligations and duties of City and
Authority with respect to the implementation of the California HERO Program within the
incorporated territory of City.
MUTUAL UNDERSTANDINGS
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions
hereinafter stated, the Parties hereto agree as follows:
A. JPA Amendment.
1. The Authority JPA. City agrees to the terms and conditions of the Authority JPA,
attached.
2. Associate Membership. By adoption of this JPA Amendment, City shall become
an Associate Member of Authority on the terms and conditions set forth herein and the Authority
JPA and consistent with the requirements of the Joint Exercise of Powers Act. The rights,
obligations and liabilities of City as an Associate Member are limited solely to those terms and
conditions expressly set forth in this JPA Amendment for the purposes of implementing the
California HERO Program within the incorporated territory of City. Except as expressl y
provided for by the this JPA Amendment, City shall not have any rights otherwise granted to
Authority’s Regular Members by the Authority JPA, including but not limited to the right to vote
on matters before the Executive Committee or the General Assembly, the right to amend or vote
on amendments to the Authority JPA, and the right to sit on committees or boards established
under the Authority JPA or by action of the Executive Committee or the General Assembly,
including, without limitation, the General Assembly and the Executive Committee. City shall not
be considered a member for purposes of Section 9.1 of the Authority JPA. Additionally, the City
shall not be responsible for the payment any fees, costs and charges under the JPA.
3. Rights of Authority. This JPA Amendment shall not be interpreted as limiting or
restricting the rights of Authority under the Authority JPA. Nothing in this JPA Amendment is
intended to alter or modify Authority Transportation Uniform Mitigation Fee (TUMF) Program,
the PACE Program administered by Authority within the jurisdictions of its Regular Members,
or any other programs administered now or in the future by Authority, all as currently structured
or subsequently amended.
B. Implementation of California HERO Program within City Jurisdiction.
1. Boundaries of the California HERO Program within City Jurisdiction. City shall
determine and notify Authority of the boundaries of the incorporated territory within City’s
jurisdiction within which contractual assessments may be entered into under the California
HERO Program (the “Program Boundaries”), which boundaries may include the entire
incorporated territory of the City or a lesser portion thereof.
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Exhibit A – Joint Powers Amendment
Page 3
A - 3
2. Determination of Eligible Improvements. Authority shall determine the types of
distributed generation renewable energy sources, energy efficiency or water conservation
improvements, electric vehicle charging infrastructure or such other improvements as may be
authorized pursuant to Chapter 29 (the “Eligible Improvements”) that will be eligible to be
financed under the California HERO Program.
3. Establishment of California HERO Program. Authority will undertake such
proceedings pursuant to Chapter 29 as shall be legally necessary to enable Authority to make
contractual financing of Eligible Improvements available to eligible property owners within the
Program Boundaries.
4. Financing the Installation of Eligible Improvements. Authority shall develop and
implement a plan for the financing of the purchase and installation of the Eligible Improvements
under the California HERO Program.
5. Ongoing Administration. Authority shall be responsible for the ongoing
administration of the California HERO Program, including but not limited to producing
education plans to raise public awareness of the California HERO Program, soliciting, reviewing
and approving applications from residential and commercial property owners participating in the
California HERO Program, establishing contracts for residential, commercial and other property
owners participating in such program, establishing and collecting assessments due under the
California HERO Program, adopting and implementing any rules or regulations for the
California HERO Program, and providing reports as required by Chapter 29.
City will not be responsible for the conduct of any proceedings required to be taken under
Chapter 29; the levy or collection of assessments or any required remedial action in the case of
delinquencies in such assessment payments; or the issuance, sale or administration of any bonds
issued in connection with the California HERO Program.
6. Phased Implementation. The Parties recognize and agree that implementation of
the California HERO Program as a whole can and may be phased as additional other cities and
counties execute similar agreements. City entering into this JPA Amendment will obtain the
benefits of and incur the obligations imposed by this JPA Amendment in its jurisdictional area,
irrespective of whether cities or counties enter into similar agreements.
C. Miscellaneous Provisions.
1. Withdrawal. City or Authority may withdraw from this JPA Amendment upon six
(6) months written notice to the other party; provided, however, if there is outstanding
indebtedness of Authority within City no such withdrawl shall affect the Authority’s ability to
levy assessments on outstanding voluntary assessment contracts. The provisions of Section 6.2 of
the Authority JPA shall not apply to City under this JPA Amendment. City may withdraw
approval for conduct of the California HERO Program within the jurisdictional limits of City
upon thirty (30) written notice to WRCOG without liability to the Authority or any affiliated
entity. City withdrawal shall not affect the validity of any voluntary assessment contracts (a)
entered prior to the date of such withdrawal or (b) entered into after the date of such withdrawal
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Exhibit A – Joint Powers Amendment
Page 4
A - 4
so long as the applications for such voluntary assessment contracts were submitted to and
approved by WRCOG prior to the date of City’s notice of withdrawal.
2. Indemnification and Liability. Authority agrees to accept all responsibility for loss
or damage to any person or entity, including the City, and employees, from and against any
actions, claims, damages, liabilities, disabilities, or expenses, that may be asserted by any person
or entity, including Marketplace Member, that arise out of, pertain to, or relate to the negligent
actions or willful misconduct of Authority’s or its agents’, employees’, contractors’,
subcontractors’, or invitees’ performance or obligations under this Agreement. Authority agrees
to provide a complete defense for any claim or action brought against City employees’,
contractors’, subcontractors’, or invitees’ that arise out of , pertain to , or relate to the negligent
actions or willful misconduct of Authority under this Agreement. Authority’s obligations under
this Section apply whether or not there is concurrent negligence on the City’s part, to the extent
required by law, excluding liability due to the City’s conduct. City shall have the right to select
its legal counsel at Authority’s expense, subject to Authority’s approval, which shall not be
unreasonably withheld. This indemnification obligation is not limited in any way by any
limitation on the amount or type of damages or compensation payable to or for Aut hority or its
agents under workers’ compensation acts, disability benefits acts, or other employee benefit acts.
3. Environmental Review. Authority shall be the lead agency under the California
Environmental Quality Act for any environmental review that may required in implementing or
administering the California HERO Program under this JPA Amendment.
4. Cooperative Effort. City shall cooperate with Authority by providing information
and other assistance in order for Authority to meet its obligations hereunder. City recognizes that
one of its responsibilities related to the California HERO Program will include any permitting or
inspection requirements as established by City.
5. Notice. Any and all communications and/or notices in connection with this JPA
Amendment shall be either hand-delivered or sent by United States first class mail, postage
prepaid, and addressed as follows:
Authority: Western Riverside Council of Governments
4080 Lemon Street, 3rd Floor. MS1032
Riverside, CA 92501-3609
Att: Executive Director
City: City of San Luis Obispo
990 Palm Street, Room 1
San Luis Obispo, CA 93401
Att: Katie Lichtig, City Manager
City Attorney: City of San Luis Obispo
990 Palm Street, Room 10
San Luis Obispo, CA 93401
Att: J. Christine Dietrick, City Attorney
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Exhibit A – Joint Powers Amendment
Page 5
A - 5
6. Entire Agreement. This JPA Amendment, together with the Authority JPA,
constitutes the entire agreement among the Parties pertaining to the subject matter hereof. This
JPA Amendment supersedes any and all other agreements, either oral or in writing, among the
Parties with respect to the subject matter hereof and contains all of the covenants and agreements
among them with respect to said matters, and each Party acknowledges that no representation,
inducement, promise of agreement, oral or otherwise, has been made by the other Party or
anyone acting on behalf of the other Party that is not embodied herein.
7. Successors and Assigns. This JPA Amendment and each of its covenants and
conditions shall be binding on and shall inure to the benefit of the Parties and their respective
successors and assigns. A Party may only assign or transfer its rights and obligations under this
JPA Amendment with prior written approval of the other Party, which approval shall not be
unreasonably withheld.
8. Attorney’s Fees. If any action at law or equity, including any action for
declaratory relief is brought to enforce or interpret the provisions of this Agreement, each Party
to the litigation shall bear its own attorney’s fees and costs.
9. Governing Law. This JPA Amendment shall be governed by and construed in
accordance with the laws of the State of California, as applicable.
10. No Third Party Beneficiaries. This JPA Amendment shall not create any right or
interest in the public, or any member thereof, as a third party beneficiary hereof, nor shall it
authorize anyone not a Party to this JPA Amendment to maintain a suit for personal injuries or
property damages under the provisions of this JPA Amendment. The duties, obligations, and
responsibilities of the Parties to this JPA Amendment with respect to third party beneficiaries
shall remain as imposed under existing state and federal law.
11. Severability. In the event one or more of the provisions contained in this JPA
Amendment is held invalid, illegal or unenforceable by any court of competent jurisdiction, such
portion shall be deemed severed from this JPA Amendment and the remaining parts of this JPA
Amendment shall remain in full force and effect as though such invalid, illegal, or unenforceable
portion had never been a part of this JPA Amendment.
12. Headings. The paragraph headings used in this JPA Amendment are for the
convenience of the Parties and are not intended to be used as an aid to interpretation.
13. Amendment. This JPA Amendment may be modified or amended by the Parties
at any time. Such modifications or amendments must be mutually agreed upon and executed in
writing by both Parties. Verbal modifications or amendments to this JPA Amendment shall be of
no effect.
14. Effective Date. This JPA Amendment shall become effective upon the execution
thereof by the Parties hereto.
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Exhibit A – Joint Powers Amendment
Page 6
A - 6
IN WITNESS WHEREOF, the Parties hereto have caused this JPA Amendment to be executed
and attested by their officers thereunto duly authorized as of the date first above written.
WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS
By: ____________________________________ Date: _______________________
Executive Committee Chair
Western Riverside Council of Governments
CITY OF SAN LUIS OBISPO
By: ____________________________________ Date: _______________________
Title: ____________________________________
Approved as to form:
By: ____________________________________ Date: _______________________
J. Christine Dietrick, City Attorney
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CALIFORNIA HOME FINANCE AUTHORITY
AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT
(Original date July 1, 1993 and as last amended and restated December 10, 2014)
THIS AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT
(“Agreement”) is entered into by and among the counties listed on Attachment 1 hereof and
incorporated herein by reference. All such counties are referred to herein as "Members" with the
respective powers, privileges and restrictions provided herein.
RECITALS
A. WHEREAS, the California Rural Home Mortgage Finance Authority (“CRHMFA”) was
created by a Joint Exercise of Powers Agreement dated July 1, 1993 pursuant to the Joint Exercise
of Powers Act (commencing with Article 1 of Chapter 5 of Division 7 of Title 1 of the
Government Code of the State of California (the “Act”). By Resolution 2003-02, adopted on
January 15, 2003, the name of the authority was changed to CRHMFA Homebuyers Fund. The
most recent amendment to the Joint Exercise of Powers Agreement was on January 28, 2004.
B. WHEREAS, the Members of CRHMFA Homebuyers Fund desire to update, reaffirm,
clarify and revise certain provisions of the joint powers agreement, including the renaming of the
joint powers authority, as set forth herein.
C. WHEREAS, the Members are each empowered by law to finance the construction,
acquisition, improvement and rehabilitation of real property.
D. WHEREAS, by this Agreement, the Members desire to create and establish a joint powers
authority to exercise their respective powers for the purpose of financing the construction,
acquisition, improvement and rehabilitation of real property within the jurisdiction of the Authority
as authorized by the Act.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Members
individually and collectively agree as follows:
1. Definitions
Unless the context otherwise requires, the following terms shall for purposes of this
Agreement have the meanings specified below:
"Act" means the Joint Exercise of Powers Act, commencing with Article 1 of Chapter 5 of
Division 7 of Title 1 of the Government Code of the State of California, including the Marks-Roos
Local Bond Pooling Act of 1985, as amended.
"Agreement" means this Joint Exercise of Powers Agreement, as the same now exists or as it
may from time to time be amended as provided herein.
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"Associate Member" means a county, city or other public agency which is not a voting
member of the Rural County Representatives of California, a California nonprofit corporation
(“RCRC”), with legal power and authority similar to that of the Members, admitted pursuant to
paragraph 4.d. below to associate membership herein by vote of the Board.
“Audit Committee” means a committee made up of the nine-member Executive
Committee.
"Authority" means California Home Finance Authority (“CHF”), formerly known as
CRHMFA Homebuyers Fund or California Rural Home Mortgage Finance Authority.
"Board" means the governing board of the Authority as described in Section 7 below.
"Bonds" means bonds, notes, warrants, leases, certificates of participation, installment
purchase agreements, loan agreements and other securities or obligations issued by the Authority,
or financing agreements entered into by the Authority pursuant to the Act and any other obligation
within the meaning of the term "Bonds" under the Act.
“Delegate” means the Supervisor designated by the governing board of each Member to
serve on the Board of the Authority.
“Executive Committee” means the nine-member Executive Committee of the Board
established pursuant to Section 10 hereof.
"Member" means any county which is a member of RCRC, has executed this Agreement
and has become a member of the Authority.
“Obligations” means bonds, notes, warrants, leases, certificates of participation, installment
purchase agreements, loan agreements and other securities or obligations issued by the Authority,
or financing agreements entered into by the Authority pursuant to the Act and any other financial
or legal obligation of the Authority under the Act.
“Program” or “Project” means any work, improvement, program, project or service
undertaken by the Authority.
"Rural County Representatives of California" or “RCRC” means the nonprofit entity
incorporated under that name in the State of California.
“Supervisor” means an elected County Supervisor from an RCRC member county.
2. Purpose
The purpose of the Authority is to provide financing for the acquisition, construction, ,
improvement and rehabilitation of real property in accordance with applicable provisions of law
for the benefit of residents and communities. In pursuit of this purpose, this Agreement provides
for the joint exercise of powers common to any of its Members and Associate Members as
provided herein, or otherwise authorized by the Act and other applicable laws, including assisting
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in financing as authorized herein, jointly exercised in the manner set forth herein.
3. Principal Place of Business
The principal office of the Authority shall be 1215 K Street, Suite 1650, Sacramento,
California 95814.
4. Creation of Authority; Addition of Members or Associate Members
a. The Authority is hereby created pursuant to the Act. As provided in the Act, the
Authority shall be a public entity separate and distinct from the Members or Associate Members.
b. The Authority will cause a notice of this Agreement or any amendment hereto to
be prepared and filed with the office of the Secretary of State of California in a timely fashion in
the manner set forth in Section 6503.3 of the Act.
c. A county that is a member of RCRC may petition to become a member of the
Authority by submitting to the Board a resolution or evidence of other formal action taken by its
governing body adopting this Agreement. The Board shall review the petition for membership
and shall vote to approve or disapprove the petition. If the petition is approved by a majority of
the Board, such county shall immediately become a Member of the Authority.
d. An Associate Member may be added to the Authority upon the affirmative
approval of its respective governing board and pursuant to action by the Authority Board upon
such terms and conditions, and with such rights, privileges and responsibilities, as may be
established from time to time by the Board. Such terms and conditions, and rights, privileges and
responsibilities may vary among the Associate Members. Associate Members shall be entitled to
participate in one or more programs of the Authority as determined by the Board, but shall not be
voting members of the Board. The Executive Director of the Authority shall enforce the terms
and conditions for prospective Associate Members to the Authority as provided by resolution of
the Board and as amended from time to time by the Board. Changes in the terms and conditions
for Associate Membership by the Board will not constitute an amendment of this Agreement.
5. Term and Termination of Powers
This Agreement shall become effective from the date hereof until the earlier of the time
when all Bonds and any interest thereon shall have been paid in full, or provision for such
payment shall have been made, or when the Authority shall no longer own or hold any interest in a
public capital improvement or program. The Authority shall continue to exercise the powers
herein conferred upon it until termination of this Agreement, except that if any Bonds are issued
and delivered, in no event shall the exercise of the powers herein granted be terminated until all
Bonds so issued and delivered and the interest thereon shall have been paid or provision for such
payment shall have been made and any other debt incurred with respect to any other financing
program established or administered by the Authority has been repaid in full and is no longer
outstanding.
6. Powers; Restriction upon Exercise
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a. To effectuate its purpose, the Authority shall have the power to exercise any and all
powers of the Members or of a joint powers authority under the Act and other applicable
provisions of law, subject, however, to the conditions and restrictions herein contained. Each
Member or Associate Member may also separately exercise any and all such powers. The powers
of the Authority are limited to those of a general law county.
b. The Authority may adopt, from time to time, such resolutions, guidelines, rules and
regulations for the conduct of its meetings and the activities of the Authority as it deems necessary
or desirable to accomplish its purpose.
c. The Authority shall have the power to finance the construction, acquisition,
improvement and rehabilitation of real property, including the power to purchase, with the
amounts received or to be received by it pursuant to a bond purchase agreement, bonds issued by
any of its Members or Associate Members and other local agencies at public or negotiated sale, for
the purpose set forth herein and in accordance with the Act. All or any part of such bonds so
purchased may be held by the Authority or resold to public or private purchasers at public or
negotiated sale. The Authority shall set any other terms and conditions of any purchase or sale
contemplated herein as it deems necessary or convenient and in furtherance of the Act. The
Authority may issue or cause to be issued Bonds or other indebtedness, and pledge any of its
property or revenues as security to the extent permitted by resolution of the Board under any
applicable provision of law. The Authority may issue Bonds in accordance with the Act in order
to raise funds necessary to effectuate its purpose hereunder and may enter into agreements to
secure such Bonds. The Authority may issue other forms of indebtedness authorized by the Act,
and to secure such debt, to further such purpose. The Authority may utilize other forms of capital,
including, but not limited to, the Authority’s internal resources, capital markets and other forms of
private capital investment authorized by the Act..
d. The Authority is hereby authorized to do all acts necessary for the exercise of its
powers, including, but not limited to:
(1) executing contracts,
(2) employing agents, consultants and employees,
(3) acquiring, constructing or providing for maintenance and operation of any
building, work or improvement,
(4) acquiring, holding or disposing of real or personal property wherever
located, including property subject to mortgage,
(5) incurring debts, liabilities or obligations,
(6) receiving gifts, contributions and donations of property, funds, services and
any other forms of assistance from persons, firms, corporations or
governmental entities,
(7) suing and being sued in its own name, and litigating or settling any suits or
claims,
(8) doing any and all things necessary or convenient to the exercise of its
specific powers and to accomplishing its purpose
(9) establishing and/or administering districts to finance and refinance the
acquisition, installation and improvement of energy efficiency, water
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conservation and renewable energy improvements to or on real property
and in buildings. The Authority may enter into one or more agreements,
including without limitation, participation agreements and implementation
agreements to implement such programs.
e. Subject to the applicable provisions of any indenture or resolution providing for the
investment of monies held thereunder, the Authority shall have the power to invest any of its funds
as the Board deems advisable, in the same manner and upon the same conditions as local agencies
pursuant to Section 53601 of the Government Code of the State of California.
f. All property, equipment, supplies, funds and records of the Authority shall be
owned by the Authority, except as may be provided otherwise herein or by resolution of the
Board.
g. Pursuant to the provisions of Section 6508.1 of the Act, the debts, liabilities and
obligations of the Authority shall not be debts, liabilities and obligations of the Members or
Associate Members. Any Bonds, together with any interest and premium thereon, shall not
constitute debts, liabilities or obligations of any Member. The Members or Associate Members
hereby agree that any such Bonds issued by the Authority shall not constitute general obligations of
the Authority but shall be payable solely from the moneys pledged to the repayment of principal or
interest on such Bonds under the terms of the resolution, indenture, trust, agreement or other
instrument pursuant to which such Bonds are issued. Neither the Members or Associate
Members nor the Authority shall be obligated to pay the principal of or premium, if any, or
interest on the Bonds, or other costs incidental thereto, except from the revenues and funds
pledged therefor, and neither the faith and credit nor the taxing power of the Members or
Associate Members or the Authority shall be pledged to the payment of the principal of or
premium, if any, or interest on the Bonds, nor shall the Members or Associate Members of the
Authority be obligated in any manner to make any appropriation for such payment. No covenant
or agreement contained in any Bond shall be deemed to be a covenant or agreement of any
Delegate, or any officer, agent or employee of the Authority in an individual capacity, and neither
the Board nor any officer thereof executing the Bonds or any document related thereto shall be
liable personally on any Bond or be subject to any personal liability or accountability by reason of
the issuance of any Bonds.
7. Governing Board
a. The Board shall consist of the number of Delegates equal to one representative
from each Member.
b. The governing body of each Member shall appoint one of its Supervisors to serve
as a Delegate on the Board. A Member’s appointment of its Delegate shall be delivered in writing
(which may be by electronic mail) to the Authority and shall be effective until he or she is replaced
by such governing body or no longer a Supervisor; any vacancy shall be filled by the governing
body of the Member in the same manner provided in this paragraph b..
c. The governing body of each Member of the Board shall appoint a Supervisor as an
alternate to serve on the Board in the absence of the Delegate; the alternate may exercise all the
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rights and privileges of the Delegate, including the right to be counted in constituting a quorum, to
participate in the proceedings of the Board, and to vote upon any and all matters. No alternate
may have more than one vote at any meeting of the Board, and any Member’s designation of an
alternate shall be delivered in writing (which may be by electronic mail) to the Authority and shall
be effective until such alternate is replaced by his or her governing body or is no longer a
Supervisor, unless otherwise specified in such appointment. Any vacancy shall be filled by the
governing body of the Member in the same manner provided in this paragraph c..
d. Any person who is not a member of the governing body of a Member and who
attends a meeting on behalf of such Member may not vote or be counted toward a quorum but
may, at the discretion of the Chair, participate in open meetings he or she attends.
e. Each Associate Member may designate a non-voting representative to the Board
who may not be counted toward a quorum but who may attend open meetings, propose agenda
items and otherwise participate in Board Meetings.
f. Delegates shall not receive compensation for serving as Delegates, but may claim
and receive reimbursement for expenses actually incurred in connection with such service
pursuant to rules approved by the Board and subject to the availability of funds.
g. The Board shall have the power, by resolution, to the extent permitted by the Act
or any other applicable law, to exercise any powers of the Authority and to delegate any of its
functions to the Executive Committee or one or more Delegates, officers or agents of the
Authority, and to cause any authorized Delegate, officer or agent to take any actions and execute
any documents for and in the name and on behalf of the Board or the Authority.
h. The Board may establish such committees as it deems necessary for any lawful
purpose; such committees are advisory only and may not act or purport to act on behalf of the
Board or the Authority.
i. The Board shall develop, or cause to be developed, and review, modify as
necessary, and adopt each Program.
8. Meetings of the Board
a. The Board shall meet at least once annually, but may meet more frequently upon
call of any officer or as provided by resolution of the Board.
b. Meetings of the Board shall be called, noticed, held and conducted pursuant to the
provisions of the Ralph M. Brown Act, Chapter 9 (commencing with Section 54950) of Part I of
Division 2 of Title 5 of the Government Code of the State of California.
c. The Secretary of the Authority shall cause minutes of all meetings of the Board to
be taken and distributed to each Member as soon as possible after each meeting.
d. The lesser of twelve (12) Delegates or a majority of the number of current
Delegates shall constitute a quorum for transacting business at any meeting of the Board, except
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that less than a quorum may act to adjourn a meeting. Each Delegate shall have one vote.
e. Meetings may be held at any location designated in notice properly given for a
meeting and may be conducted by telephonic or similar means in any manner otherwise allowed
by law.
9. Officers; Duties; Official Bonds
a. The Board shall elect a chair and vice chair from among the Delegates at the
Board’s annual meeting who shall serve a term of one (1) year or until their respective successor is
elected. The chair shall conduct the meetings of the Board and perform such other duties as may
be specified by resolution of the Board. The vice chair shall perform such duties in the absence or
in the event of the unavailability of the chair.
b. The Board shall contract annually with RCRC to administer the Agreement and to
provide administrative services to the Authority, and the President and Chief Executive Officer of
RCRC shall serve ex officio as Executive Director, Secretary, Treasurer, and Auditor of the
Authority. As chief executive of the Authority, the Executive Director is authorized to execute
contracts and other obligations of the Authority, unless prior Board approval is required by a third
party, by law or by Board specification, and to perform other duties specified by the Board. The
Executive Director may appoint such other officers as may be required for the orderly conduct of
the Authority’s business and affairs who shall serve at the pleasure of the Executive Director.
Subject to the applicable provisions of any indenture or resolution providing for a trustee or other
fiscal agent, the Executive Director, as Treasurer, is designated as the custodian of the Authority’s
funds, from whatever source, and, as such, shall have the powers, duties and responsibilities
specified in Section 6505.5 of the Act. The Executive Director, as Auditor, shall have the powers,
duties and responsibilities specified in Section 6505.5 of the Act.
c. The Legislative Advocate for the Authority shall be the Rural County
Representatives of California.
d. The Treasurer and Auditor are public officers who have charge of, handle, or have
access to all property of the Authority, and a bond for such officer in the amount of at least one
hundred thousand dollars ($100,000.00) shall be obtained at the expense of the Authority and
filed with the Executive Director. Such bond may secure the faithful performance of such
officer’s duties with respect to another public office if such bond in at least the same amount
specifically mentions the office of the Authority as required herein. The Treasurer and Auditor
shall cause periodic independent audits to be made of the Authority’s books by a certified public
accountant, or public accountant, in compliance with Section 6505 of the Act.
e. The business of the Authority shall be conducted under the supervision of the
Executive Director by RCRC personnel.
10. Executive Committee of the Authority
a. Composition
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The Authority shall appoint nine (9) members of its Board to serve on an Executive
Committee.
b. Powers and Limitations
The Executive Committee shall act in an advisory capacity and make
recommendations to the Authority Board. Duties will include, but not be limited to, review of the
quarterly and annual budgets, service as the Audit Committee for the Authority, periodically
review this Agreement; and complete any other tasks as may be assigned by the Board. The
Executive Committee shall be subject to all limitations imposed by this Agreement, other
applicable law, and resolutions of the Board.
c. Quorum
A majority of the Executive Committee shall constitute a quorum for transacting
business of the Executive Committee.
11. Disposition of Assets
Upon termination of this Agreement, all remaining assets and liabilities of the Authority
shall be distributed to the respective Members in such manner as shall be determined by the
Board and in accordance with the law.
12. Agreement Not Exclusive; Operation in Jurisdiction of Member
This Agreement shall not be exclusive, and each Member expressly reserves its rights to
carry out other public capital improvements and programs as provided for by law and to issue
other obligations for those purposes. This Agreement shall not be deemed to amend or alter the
terms of other agreements among the Members or Associate Members.
13. Conflict of Interest Code
The Authority shall by resolution adopt a Conflict of Interest Code as required by law.
14. Contributions and Advances
Contributions or advances of public funds and of personnel, equipment or property may
be made to the Authority by any Member, Associate Member or any other public agency to
further the purpose of this Agreement. Payment of public funds may be made to defray the cost of
any contribution. Any advance may be made subject to repayment, and in that case shall be repaid
in the manner agreed upon by the advancing Member, Associate Member or other public agency
and the Authority at the time of making the advance.
15. Fiscal Year; Accounts; Reports; Annual Budget; Administrative Expenses
a. The fiscal year of the Authority shall be the period from January 1 of each year to
and including the following December 31, except for any partial fiscal year resulting from a change
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in accounting based on a different fiscal year previously.
b. Prior to the beginning of each fiscal year, the Board shall adopt a budget for the
succeeding fiscal year.
c. The Authority shall establish and maintain such funds and accounts as may be
required by generally accepted accounting principles. The books and records of the Authority are
public records and shall be open to inspection at all reasonable times by each Member and its
representatives.
d. The Auditor shall either make, or contract with a certified public accountant or
public accountant to make, an annual audit of the accounts and records of the Authority. The
minimum requirements of the audit shall be those prescribed by the State Controller for special
districts under Section 26909 of the Government Code of the State of California, and shall
conform to generally accepted auditing standards. When an audit of accounts and records is made
by a certified public accountant or public accountant, a report thereof shall be filed as a public
record with each Member (and also with the auditor of Sacramento County as the county in which
the Authority’s office is located) within 12 months after the end of the fiscal year.
e. In any year in which the annual budget of the Authority does not exceed five
thousand dollars ($5,000.00), the Board may, upon unanimous approval of the Board, replace the
annual audit with an ensuing one-year period, but in no event for a period longer than two fiscal
years.
16. Duties of Members or Associate Members; Breach
If any Member or Associate Member shall default in performing any covenant contained
herein, such default shall not excuse that Member or Associate Member from fulfilling its other
obligations hereunder, and such defaulting Member or Associate Member shall remain liable for
the performance of all covenants hereof. Each Member or Associate Member hereby declares
that this Agreement is entered into for the benefit of the Authority created hereby, and each
Member or Associate Member hereby grants to the Authority the right to enforce, by whatever
lawful means the Authority deems appropriate, all of the obligations of each of the parties
hereunder. Each and all of the remedies given to the Authority hereunder or by any la w now or
hereafter enacted are cumulative, and the exercise of one right or remedy shall not impair the right
of the Authority to any or all other remedies.
17. Indemnification
To the full extent permitted by law, the Board may authorize indemnification by the
Authority of any person who is or was a Board Delegate, alternate, officer, consultant, employee or
other agent of the Authority, and who was or is a party or is threatened to be made a party to a
proceeding by reason of the fact that such person is or was such a Delegate, alternate, officer,
consultant, employee or other agent of the Authority. Such indemnification may be made against
expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in
connection with such proceeding, if such person acted in good faith and in a manner such person
reasonably believed to be in the best interests of the Authority and, in the case of a criminal
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proceeding, had no reasonable cause to believe his or her conduct was unlawful and, in the case of
an action by or in the right of the Authority, acted with such care, including reasonable inquiry, as
an ordinarily prudent person in a like position would use under similar circumstances.
18. Immunities
All of the privileges and immunities from liabilities, exemptions from law, ordinances and
rules, all pension, relief, disability, workers' compensation and other benefits which apply to the
activity of officers, agents or employees of any of the Members or Associate Members when
performing their respective functions, shall apply to them to the same degree and extent while
engaged as Delegates or otherwise as an officer, agent or other representative of the Authority or
while engaged in the performance of any of their functions or duties under the provisions of this
Agreement.
19. Amendment
This Agreement may be amended by the adoption of the amendment by the governing
bodies of a majority of the Members. The amendment shall become effective on the first day of
the month following the last required member agency approval. An amendment may be initiated
by the Board, upon approval by a majority of the Board. Any proposed amendment, including the
text of the proposed change, shall be given by the Board to each Member’s Delegate for
presentation and action by each Member's board within 60 days, which time may be extended by
the Board.
The list of Members, Attachment 1, may be updated to reflect new and/or withdrawn
Members without requiring formal amendment of the Agreement by the Authority Board of
Directors.
20. Withdrawal of Member or Associate Member
If a Member withdraws as member of RCRC, its membership in the Authority shall
automatically terminate. A Member or Associate Member may withdraw from this Agreement
upon written notice to the Board; provided however, that no such withdrawal shall result in the
dissolution of the Authority as long as any Bonds or other obligations of the Authority remain
outstanding. Any such withdrawal shall become effective thirty (30) days after a resolution adopted
by the Member's governing body which authorizes withdrawal is received by the Authority.
Notwithstanding the foregoing, any termination of membership or withdrawal from the Authority
shall not operate to relieve any terminated or withdrawing Member or Associate Member from
Obligations incurred by such terminated or withdrawing Member or Associate Member prior to
the time of its termination or withdrawal.
20. Miscellaneous
a. Counterparts. This Agreement may be executed in several counterparts, each of
which shall be an original and all of which shall constitute but one and the same instrument.
b. Construction. The section headings herein are for convenience only and are not to
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be construed as modifying or governing the language in the section referred to.
c. Approvals. Wherever in this Agreement any consent or approval is required, the
same shall not be unreasonably withheld.
d. Jurisdiction; Venue. This Agreement is made in the State of California, under the
Constitution and laws of such State and is to be so construed; any action to enforce or interpret its
terms shall be brought in Sacramento County, California.
e. Integration. This Agreement is the complete and exclusive statement of the
agreement among the parties hereto, and it supersedes and merges all prior proposals,
understandings, and other agreements, whether oral, written, or implied in conduct, between and
among the parties relating to the subject matter of this Agreement.
f. Successors; Assignment. This Agreement shall be binding upon and shall inure to
the benefit of the successors of the parties hereto. Except to the extent expressly provided herein,
no Member may assign any right or obligation hereunder without the consent of the Board.
g. Severability. Should any part, term or provision of this Agreement be decided by
the courts to be illegal or in conflict with any law of the State of California, or otherwise be
rendered unenforceable or ineffectual, the validity of the remaining parts, terms or provisions
hereof shall not be affected thereby.
The parties hereto have caused this Agreement to be executed and attested by their properly
authorized officers.
AS ADOPTED BY THE MEMBERS:
Originally dated July 1, 1993
Amended and restated December 10, 1998
Amended and restated February 18, 1999
Amended and restated September 18, 2002
Amended and restated January 28, 2004
Amended and restated December 10, 2014
[SIGNATURES ON FOLLOWING PAGES]
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SIGNATURE PAGE FOR NEW ASSOCIATE MEMBERS
NAME OF COUNTY OR CITY:
Dated:
By:
Name:
Title:
Attest:
By
[Clerk of the Board Supervisors or City Clerk]
AFTER EXECUTION, PLEASE SEND TO:
YGRENE ENERGY FUND
ATTN: LEGAL DEPARTMENT
815 5TH STREET
SANTA ROSA CA 95404
82671.00000\9603861.1
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ATTACHMENT 1
CALIFORNIA HOME FINANCE AUTHORITY MEMBERS
As of December 10, 2014
Alpine County
Amador County
Butte County
Calaveras County
Colusa County
Del Norte County
El Dorado County
Glenn County
Humboldt County
Imperial County
Inyo County
Lake County
Lassen County
Madera County
Mariposa County
Mendocino County
Merced County
Modoc County
Mono County
Napa County
Nevada County
Placer County
Plumas County
San Benito County
Shasta County
Sierra County
Siskiyou County
Sutter County
Tehama County
Trinity County
Tuolumne County
Yolo County
Yuba County
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RESOLUTION NO . 10136 (2009 Series )
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISP O
AUTHORIZING THE CITY TO JOIN THE CALIFORNIAFIRST PROGRAM ;
AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMEN T
AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS ,
CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEV Y
CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE CITY ; AN D
AUTHORIZING RELATED ACTION S
WHEREAS,the California Statewide Communities Development Authority ("Californi a
Communities") is a joint exercise of powers authority the members of which include numerou s
cities and counties in the State of California, including the City of San Luis Obispo (the "City");
and
WHEREAS,California Communities has established the CaliforniaFIRST program (th e
CaliforniaFIRST Program") to allow the financing of certain renewable energy, energ y
efficiency and water efficiency improvements (the "Improvements") through the levy o f
contractual assessments pursuant to Chapter 29 of Division 7 of the Streets & Highways Cod e
Chapter 29") and the issuance of improvement bonds (the "Bonds") under the Improvemen t
Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the "1915 Act")
upon the security of the unpaid contractual assessments ; an d
WHEREAS,Chapter 29 provides that assessments may be levied under its provision s
only with the free and willing consent of the owner of each lot or parcel on which an assessmen t
is levied at the time the assessment is levied ; and
WHEREAS,the City desires to allow the owners of property within its jurisdictio n
Participating Property Owners") to participate in the CaliforniaFIRST Program and to allo w
California Communities to conduct assessment proceedings under Chapter 29 and to issue Bond s
under the 1915 Act to finance the Improvements ; and
WHEREAS,California Communities will conduct assessment proceedings unde r
Chapter 29 and issue Bonds under the 1915 Act to finance Improvements ; an d
WHEREAS,there has been presented to this meeting a proposed form of Resolution o f
Intention to be adopted by California Communities in connection with such assessmen t
proceedings (the "ROI"), a copy of which is attached hereto as Exhibit A, and the territory within
which assessments may be levied for the CaliforniaFIRST Program shall include all of th e
territory within the City's official boundaries of record (the "Proposed Boundaries"); an d
WHEREAS,the City will not be responsible for the conduct of any assessment
proceedings ; the levy or collection of assessments or any required remedial action in the case o f
delinquencies in such assessment payments ; or the issuance, sale or administration of the Bond s
or any other bonds issued in connection with the CaliforniaFIRST Program ; and
R 10136
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Resolution No . 10136 (2009 Series)
Page 2
WHEREAS,pursuant to Government Code Section 6586 .5, a notice of public hearin g
has been published once at least five days prior to the date hereof in a newspaper of genera l
circulation in the City and a public hearing has been duly conducted by the Council concernin g
the significant public benefits of the CaliforniaFIRST Program and the financing of the
Improvements .
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s
Obispo as follows :
SECTION 1 .On the date hereof, the City Council held a public hearing and the Cit y
Council hereby finds and declares that the issuance of bonds by California Communities i n
connection with the CaliforniaFIRST Program will provide significant public benefits, includin g
without limitation, savings in effective interest rate, bond preparation, bond underwriting an d
bond issuance costs and reductions in effective user charges levied by water and electricit y
providers within the boundaries of the City .
SECTION 2 . In connection with the CaliforniaFIRST Program, the City hereb y
consents to the conduct of special assessment proceedings by California Communities pursuan t
to Chapter 29 on any property within the Proposed Boundaries and the issuance of Bonds under
the 1915 Act ; provided, that
1.Such proceedings are conducted pursuant to one or more Resolutions of Intention i n
substantially the form of the ROI ; an d
2.The Participating Property Owners, who shall be the legal owners of such property ,
execute a contract pursuant to Chapter 29 and comply with other applicable provisions o f
California law in order to accomplish the valid levy of assessments .
SECTION 3 .Pursuant to the requirements of Chapter 29, California Communities ha s
prepared and will update from time to time the "Program Report" for the CaliforniaFIRS T
Program (the "Program Report"), and California Communities will undertake assessmen t
proceedings and the financing of Improvements as set forth in the Program Report .
SECTION 4. The appropriate officials and staff of the City are hereby authorized an d
directed to make applications for the CaliforniaFIRST program available to all property owner s
who wish to finance Improvements ; provided, that California Communities shall be responsibl e
for providing such applications and related materials at its own expense . The following staf f
persons, together with any other staff persons chosen by the City Manager from time to time, ar e
hereby designated as the contact persons for California Communities in connection with th e
CaliforniaFIRST Program : Deputy Director of Community Development .
SECTION 5.The appropriate officials and staff of the City are hereby authorized an d
directed to execute and deliver such closing certificates, requisitions, agreements and relate d
documents as are reasonably required by California Communities in accordance with th e
Program Report to implement the CaliforniaFIRST Program for Participating Property Owner s
and to evidence compliance with the requirements of federal and state law in connection with the
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Resolution No . 10136 (2009 Series)
Page 3
issuance by California Communities of the Bonds and any other bonds for the CaliforniaFIRST
Program . To that end, and pursuant to Treasury Regulations Section 1 .150-2, the staff persons
listed in Section 4 above, or other staff person acting in the same capacity for the City with
respect to the CaliforniaFIRST Program, are hereby authorized and designated to declare th e
official intent of the City with respect to the Improvements to be paid or reimbursed throug h
participation in the CaliforniaFIRST Program .
SECTION 6 .The appropriate officials and staff of the City are hereby authorized and
directed to pay California Communities a fee in an amount not to exceed $12,500, whic h
California Communities will use to pay for the costs of implementing the CaliforniaFIRS T
Program in the City, including the payment of legal costs incurred in connection with judicia l
validation of the CaliforniaFIRST Program .
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 th e
Secretary of California Communities .
Upon motion of Council Member Settle, seconded by Council Member Ashbaugh ,
and on the following vote :
AYES :Council Members Ashbaugh, Marx and Settle, Vice Mayor Carter an d
Mayor Romero
NOES :None
ABSENT : Non e
The foregoing resolution was adopted this 1 st day of December 2009 .
Mayor David F . Romero
ATTEST :
Elaina Can o
City Clerk
APPROVED AS TO FORM :
Jo't Lowell
City Attorney
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EXHIBIT A
RESOLUTION NO .
RESOLUTION DECLARING INTENTION TO FINANCE INSTALLATION O F
DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERG Y
EFFICIENCY AND WATER EFFICIENCY IMPROVEMENT S
COUNTY O F
WHEREAS,the California Statewide Communities Development Authority ("Californi a
Communities") is authorized under the authority granted California Communities pursuant t o
Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California i n
accordance with Chapter 29 of Part 3 of Division 7 of the Streets & Highways Code of the Stat e
of California ("Chapter 29") to authorize assessments to finance the installation of distribute d
generation renewable energy sources, energy efficiency and water efficiency improvements that
are permanently fixed to real property ("Authorized Improvements"); and
WHEREAS,Chapter 29 authorizes California Communities to enter into contractua l
assessments to finance the installation of Authorized Improvements in the County of (th e
County"); an d
WHEREAS,California Communities wishes to declare its intention to establish a
CaliforniaFIRST program (the "CaliforniaFIRST Program") in the County, pursuant to whic h
California Communities, subject to certain conditions set forth below, would enter int o
contractual assessments to finance the installation of Authorized Improvements in the County ;
NOW, THEREFORE, BE IT RESOLVED by the California Statewide Communitie s
Development Authority, as follows :
Section 1 .Findinqs .California Communities hereby finds and declares the following :
a)The above recitals are true and correct .
b)Energy conservation efforts, including the promotion of energy-related Authorize d
Improvements to residential, commercial, industrial, or other real property, are necessary t o
address the issue of global climate change and the reduction of greenhouse gas emissions i n
the County .
c)Water conservation efforts, including the promotion of water-related Authorize d
Improvements to residential, commercial, industrial, or other real property, are necessary t o
address the issue of chronic water shortages in California .
d)The upfront cost of making residential, commercial, industrial, or other rea l
property more energy and water efficient, along with the fact that most commercial loans for tha t
purpose are due on the sale of the property, prevents many property owners from installin g
Authorized Improvements .
e)A public purpose will be served by establishing a contractual assessmen t
program, to be known as the CaliforniaFIRST Program, pursuant to which Californi a
Communities will finance the installation of Authorized Improvements to residential, commercial ,
industrial, or other real property in the County .
Jones Hall, A Professional Law Corporation 11-6-0 0
1
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Section 2 .Determination of Public Interest .California Communities hereb y
determines that (a) it would be convenient, advantageous, and in the public interest to designat e
an area, which shall encompass the entire geographic territory within the boundaries of th e
County, within which California Communities and property owners within the County may ente r
into contractual assessments to finance the installation of Authorized Improvements pursuant t o
Chapter 29 and (b) it is in the public interest for California Communities to finance th e
installation of Authorized Improvements in the County pursuant to Chapter 29 .
Section 3 .Identification of Authorized Improvements .California Communitie s
hereby declares that it proposes to make contractual assessment financing available to propert y
owners to finance installation of Authorized Improvements, including but not limited to thos e
improvements detailed in the Report described in Section 8 below, as that Report may b e
amended from time to time .
Section 4 .Identification of Boundaries .Contractual assessments may be entered into
by property owners located within the entire geographic territory of the County ; provided ,
however, that California Communities shall not enter into contractual assessments to finance th e
installation of Authorized Improvements with the owner of any property in the County unles s
requested to do so first by the County if the property is located in unincorporated territory or a cit y
if the property is located in incorporated territory and after such city or the County, as applicable ,
has held a public hearing pursuant to Section 6586 .5 of the Government Code of the State o f
California . The form of resolution pursuant to which cities may request California Communitie s
to enter into contractual assessments to finance the installation of Authorized Improvements i s
attached as Exhibit A .
Section 5 .Proposed Financinq Arranqements .Under Chapter 29, Californi a
Communities may issue bonds pursuant to Chapter 29 that are payable by contractua l
assessments and California Communities may advance its own funds to finance work to b e
repaid through contractual assessments, and may from time to time sell bonds to reimburs e
itself for such advances . Division 10 (commencing with Section 8500) of the Streets &
Highways Code of the State (the "Improvement Bond Act of 1915") shall apply to any bond s
issued pursuant to Chapter 29, insofar as the Improvement Bond Act of 1915 is not in conflic t
with Chapter 29 .
California Communities shall determine the creditworthiness of a property owner t o
participate in the financing of Authorized Improvements based on the criteria developed by th e
Program Manager in consultation with the CaliforniaFIRST Program financing team and on fil e
with the Secretary .
In connection with bonds issued under the Improvement Bond Act of 1915 that ar e
payable from contractual assessments, serial and/or term improvement bonds shall be issue d
in such series and shall mature in such principal amounts and at such times (not to exceed 2 0
years from the second day of September next following their date) and at such rate or rates o f
interest (not to exceed the maximum rate permitted by applicable law) as shall be determine d
by California Communities at the time of the issuance and sale of the bonds . The provision s
of Part 11 .1 of the Improvement Bond Act of 1915 shall apply to the calling of the bonds . It i s
the intention of California Communities to create a special reserve fund for the bonds unde r
Part 16 of the Improvement Bond Act of 1915 . California Communities will not advanc e
available surplus funds from its treasury to cure any deficiency in the redemption fund to b e
created with respect to the bonds ; provided, however, that this determination shall not preven t
California Communities from, in its sole discretion, so advancing funds . The bonds may be
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refunded under Division 11 .5 of the California Streets and Highways Code or other applicabl e
laws permitting refunding of the bonds, upon the conditions specified by and at th e
determination of California Communities .
California Communities hereby authorizes the Program Manager, upon consultatio n
with bond counsel and the CaliforniaFIRST Program underwriter, to provide for the issuanc e
of bonds payable from contractual assessments .
In connection with the issuance of bonds payable from contractual assessments ,
California Communities expects to obligate itself, through a covenant with the owners of th e
bonds, to exercise its foreclosure rights with respect to delinquent contractual assessmen t
installments under specified circumstances .
Section 6 .Public Hearinq.Pursuant to the Act, California Communities hereby orders tha t
a public hearing be held before this Commission, at , on ,, 2009 at
a .m ., for the purposes of allowing interested persons to object to or inquire about th e
proposed program or any of its particulars . The public hearing may be continued from time to tim e
as determined by the Commission 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 summarize d
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, th e
extent of the area proposed to be included within the program, the terms and conditions of th e
draft Contract described in Section 8 below, or the proposed financing provisions . Following th e
public hearing, California Communities may adopt a resolution confirming the Report (th e
Resolution Confirming Report") or may direct the Report's modification in any respect, or ma y
abandon the proceedings .
The Commission hereby orders the Secretary to publish a notice of public hearing once a
week for two successive weeks . Two publications in a newspaper published once a week o r
more often, with at least five days intervening between the respective publication dates no t
counting such publication dates, are sufficient . The period of notice will commence upon the firs t
day of publication and terminate at the end of the fourteenth day . The first publication shall occu r
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 th e
Streets & Highways Code, the Commission hereby orders the Secretary to provide written notic e
of the proposed contractual assessment program within the County to all water and electri c
providers within the boundaries of the County not less than 60 days prior to adoption of th e
Resolution Confirming Report .
Section 8.Report.The Commission hereby directs the Program Manager for th e
CaliforniaFIRST Program to prepare and file with the Commission a report (the "Report") at o r
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 contractua l
assessments are proposed to be offered, as set forth in Section 4 above .
b)A draft contract (the "Contract") specifying the terms and conditions that would b e
agreed to by California Communities and a property owner within the County . The Contract ma y
allow property owners to purchase directly the related equipment and materials for th e
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installation of the Authorized Improvements and to contract directly for the installation of suc h
Authorized Improvements .
c)A statement of California Communities' policies concerning contractua l
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 California Communities official authorized to enter int o
contractual assessments on behalf of California Communities .
3)A maximum aggregate dollar amount of contractual assessments in th e
County .
4)A method for setting requests from property owners for financing throug h
contractual assessments in priority order in the event that requests appear likely t o
exceed the authorization amount .
d) A plan for raising a capital amount required to pay for work performed pursuan t
to contractual assessments . The plan may include amounts to be advanced by Californi a
Communities through funds available to it from any source . The plan may include the sale of a
bond or bonds or other financing relationship pursuant to Section 5898 .28 of Chapter 29 . Th e
plan shall include a statement of or method for determining the interest rate and time perio d
during which contracting property owners would pay any assessment . The plan shall provide fo r
any reserve fund or funds . The plan shall provide for the apportionment of all or any portion o f
the costs incidental to financing, administration, and collection of the contractual assessmen t
program among the consenting property owners and California Communities .
e) A report on the results of the consultations with the County Auditor-Controlle r
described in Section 10 below concerning the additional fees, if any, that will be charged t o
California Communities for incorporating the proposed contractual assessments into th e
assessments of the general taxes of the County on real property, and a plan for financing th e
payment of those fees .
Section 9 .Nature of Assessments .Assessments levied pursuant to Chapter 29, an d
the interest and any penalties thereon, will constitute a lien against the lots and parcels of lan d
on which they are made, until they are paid . Unless otherwise directed by Californi a
Communities, the assessments shall be collected in the same manner and at the same tim e
as the general taxes of the County on real property are payable, and subject to the sam e
penalties and remedies and lien priorities in the event of delinquency and default .
Section 10 .Consultations with County Auditor-Controller .California Communitie s
hereby directs the Program Manager to enter into consultations with the County Auditor -
Controller in order to reach agreement on what additional fees, if any, will be charged t o
California Communities for incorporating the proposed contractual assessments into th e
assessments of the general taxes of the County on real property .
Section 11 .Preparation of Current Roll of Assessment .Pursuant to Sectio n
5898 .24(c), California Communities hereby designates the Program Manager (or his/he r
designee) as the responsible official for annually preparing the current roll of assessmen t
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obligations by assessor's parcel number on property subject to a voluntary contractua l
assessment .
Section 12 .Procedures for Responding to Inquiries .The Program Manager shal l
establish procedures to promptly respond to inquiries concerning current and future estimate d
liability for a voluntary contractual assessment .
Section 13 .Professionals Appointed .California Communities hereby appoints Jones
Hall, A Professional Law Corporation, San Francisco, California, as bond counsel to Californi a
Communities in connection with the CaliforniaFIRST Program . The Program Manager is hereb y
authorized and directed to enter into appropriate agreements with such firm for its services t o
California Communities in connection with the matters addressed in this Resolution .
Section 14 .Effective Date .This resolution shall take effect immediately upon it s
adoption .
PASSED AND ADOPTED by the California Statewide Communities Developmen t
Authority this , 2010 .
I, the undersigned, the duly appointed, and qualified member of the Commission of th e
California Statewide Communities Development Authority, DO HEREBY CERTIFY that th e
foregoing resolution was duly adopted by the Commission of said Authority at a duly calle d
meeting of the Commission of said Authority held in accordance with law on , 2010 .
By :
Membe r
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