HomeMy WebLinkAboutR-10692 - Consenting to Inclusion in CA HFA program to finance Renewable Energy Generation, H2O Efficiency, Elec Vehicle charg infrastructureRESOLUTION NO. 10692 (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
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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
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 City
Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority.
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Upon motion of Council Member Ashbaugh, seconded by Council Member Rivoire, and on the
following vote:
AYES: Council Members Ashbaugh, Christianson and Rivoire,
and Mayor Marx
NOES: Vice Mayor Carpenter
ABSENT: None
The foregoing resolution was adopted this 16`h day of February 2016.
ATTEST:
F.111 9191161T
11
Attorney
qqla�
Mayor J tParx
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this *2,7- day of M h r &k , 2 U
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RESOLUTION NO. 10136 (2009 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING THE CITY TO JOIN THE CALIFORNIAFIRST PROGRAM;
AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS,
CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY
CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE CITY; AND
AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority ("California
Communities") is a joint exercise of powers authority the members of which include numerous
cities and counties in the State of California, including the City of San Luis Obispo (the "City");
and
WHEREAS, California Communities has established the CalifamiaFIRST program (the
"CaliforniaFIRST Program") to allow the financing of certain renewable energy, energy
efficiency and water efficiency improvements (the "Improvements") through the levy of
contractual assessments pursuant to Chapter 29 of Division 7 of the Streets & Highways Code
("Chapter 29") and the issuance of improvement bonds (the "Bonds") under the Improvement
Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the "1915 Act")
upon the security of the unpaid contractual assessments; and
WHEREAS, Chapter 29 provides that assessments may be levied under its provisions
only with the free and willing consent of the owner of each lot or parcel on which an assessment
is levied at the time the assessment is levied; and
WHEREAS, the City desires to allow the owners of property within its jurisdiction
("Participating Property Owners") to participate in the CaliforniaFIRST Program and to allow
California Communities to conduct assessment proceedings under Chapter 29 and to issue Bonds
under the 1915 Act to finance the Improvements; and
WHEREAS, California Communities will conduct assessment proceedings under
Chapter 29 and issue Bonds under the 1915 Act to finance Improvements; and
WHEREAS, there has been presented to this meeting a proposed form of Resolution of
Intention to be adopted by California Communities in connection with such assessment
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 the
territory within the City's official boundaries of record (the "Proposed Boundaries"); and
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 of
delinquencies in such assessment payments; or the issuance, sale or administration of the Bonds
or any other bonds issued in connection with the CaliforniaFIRST Program; and
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Resolution No. 10136 (2009 Series)
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Page 5
WHEREAS, pursuant to Government Code Section 6586.5, a notice of public hearing
has been published once at least five days prior to the date hereof in a newspaper of general
circulation in the City and a public hearing has been duly conducted by the Council concerning
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 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 the issuance of bonds by California Communities in
connection with the CaliforniaFIRST Program will provide significant public benefits, including
without limitation, savings in effective interest rate, bond preparation, bond underwriting and
bond issuance costs and reductions in effective user charges levied by water and electricity
providers within the boundaries of the City.
SECTION 2. In connection with the CaliforniaFIRST Program, the City hereby
consents to the conduct of special assessment proceedings by California Communities pursuant
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 in
substantially the form of the ROI; and
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 of
California law in order to accomplish the valid levy of assessments.
SECTION 3. Pursuant to the requirements of Chapter 29, California Communities has
prepared and will update from time to time the "Program Report" for the CaliforniaFIRST
Program (the "Program Report"), and California Communities will undertake assessment
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 and
directed to make applications for the CaliforniaFIRST program available to all property owners
who wish to finance Improvements; provided, that California Communities shall be responsible
for providing such applications and related materials at its own expense. The following staff
persons, together with any other staff persons chosen by the City Manager from time to time, are
hereby designated as the contact persons for California Communities in connection with the
CaliforniaFIRST Program: Deputy Director of Community Development.
SECTION 5. The appropriate officials and staff of the City are hereby authorized and
directed to execute and deliver such closing certificates, requisitions, agreements and related
documents as are reasonably required by California Communities in accordance with the
Program Report to implement the CaliforniaFIRST Program for Participating Property Owners
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
Page 6
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 the
official intent of the City with respect to the Improvements to be paid or reimbursed through
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, which
California Communities will use to pay for the costs of implementing the CaliforniaFIRST
Program in the City, including the payment of legal costs incurred in connection with judicial
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 the
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 and
Mayor Romero
NOES: None
ABSENT: None
The foregoing resolution was adopted this 1" day of December 2009.
Mayor David F. Romero
ATTEST:
Elaina Cano
City Clerk
APPROVED AS TO FORM:
Jo th . Lowell
City Attorney
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EXHIBIT A
RESOLUTION NO,
RESOLUTION DECLARING INTENTION TO FINANCE INSTALLATION OF
DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY
EFFICIENCY AND WATER EFFICIENCY IMPROVEMENTS
COUNTY OF
WHEREAS, the California Statewide Communities Development Authority ("California
Communities") is authorized under the authority granted California Communities pursuant to
Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California in
accordance with Chapter 29 of Part 3 of Division 7 of the Streets & Highways Code of the State
of California ("Chapter 29") to authorize assessments to finance the installation of distributed
generation renewable energy sources, energy efficiency and water efficiency improvements that
are permanently fixed to real property ("Authorized Improvements"); and
WHEREAS, Chapter 29 authorizes California Communities to enter into contractual
assessments to finance the installation of Authorized Improvements in the County of (the
"County"); and
WHEREAS, California Communities wishes to declare its intention to establish a
CaliforniaFIRST program (the "CaliforniaFIRST Program") in the County, pursuant to which
California Communities, subject to certain conditions set forth below, would enter into
contractual assessments to finance the installation of Authorized Improvements in the County;
NOW, THEREFORE, BE IT RESOLVED by the California Statewide Communities
Development Authority, as follows:
Section 1. Findings. 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 Authorized
Improvements to residential, commercial, industrial, or other real property, are necessary to
address the issue of global climate change and the reduction of greenhouse gas emissions in
the County.
(c) Water conservation efforts, including the promotion of water -related Authorized
Improvements to residential, commercial, industrial, or other real property, are necessary to
address the issue of chronic water shortages in California.
(d) The upfront cost of making residential, commercial, industrial, or other real
property more energy and water efficient, along with the fact that most commercial loans for that
purpose are due on the sale of the property, prevents many property owners from installing
Authorized Improvements.
(e) A public purpose will be served by establishing a contractual assessment
program, to be known as the CaliforniaFIRST Program, pursuant to which California
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 11-6-00
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Section 2. Determination of Public Interest. California Communities hereby
determines that (a) it would be convenient, advantageous, and in the public interest to designate
an area, which shall encompass the entire geographic territory within the boundaries of the
County, within which California Communities and property owners within the County may enter
into contractual assessments to finance the installation of Authorized Improvements pursuant to
Chapter 29 and (b) it is in the public interest for California Communities to finance the
installation of Authorized Improvements in the County pursuant to Chapter 29.
Section 3. Identification of Authorized Improvements. California Communities
hereby declares that it proposes to make contractual assessment financing available to property
owners to finance installation of Authorized Improvements, including but not limited to those
improvements detailed in the Report described in Section 8 below, as that Report may be
amended from time to time.
Section 4. Identification of 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 the
installation of Authorized Improvements with the owner of any property in the County unless
requested to do so first by the County if the property is located in unincorporated territory or a city
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 of
California. The form of resolution pursuant to which cities may request California Communities
to enter into contractual assessments to finance the installation of Authorized Improvements is
attached as Exhibit A.
Section 5. Proposed Financing Arrangements. Under Chapter 29, California
Communities may issue bonds pursuant to Chapter 29 that are payable by contractual
assessments and California Communities may advance its own funds to finance work to be
repaid through contractual assessments, and may from time to time sell bonds to reimburse
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 bonds
issued pursuant to Chapter 29, insofar as the Improvement Bond Act of 1915 is not in conflict
with Chapter 29.
California Communities shall determine the creditworthiness of a property owner to
participate in the financing of Authorized Improvements based on the criteria developed by the
Program Manager in consultation with the CaliforniaFIRST Program financing team and on file
with the Secretary.
In connection with bonds issued under the Improvement Bond Act of 1915 that are
payable from contractual assessments, serial and/or term improvement bonds shall be issued
in such series and shall mature in such principal amounts and at such times (not to exceed 20
years from the second day of September next following their date) and at such rate or rates of
interest (not to exceed the maximum rate permitted by applicable law) as shall be determined
by California Communities at the time of the issuance and sale of the bonds. The provisions
of Part 11.1 of the Improvement Bond Act of 1915 shall apply to the calling of the bonds. It is
the intention of California Communities to create a special reserve fund for the bonds under
Part 16 of the Improvement Bond Act of 1915. California Communities will not advance
available surplus funds from its treasury to cure any deficiency in the redemption fund to be
created with respect to the bonds; provided, however, that this determination shall not prevent
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 applicable
laws permitting refunding of the bonds, upon the conditions specified by and at the
determination of California Communities.
California Communities hereby authorizes the Program Manager, upon consultation
with bond counsel and the CallforniaFIRST Program underwriter, to provide for the issuance
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 the
bonds, to exercise its foreclosure rights with respect to delinquent contractual assessment
installments under specified circumstances.
Section 6. Public Hearing. Pursuant to the Act, California Communities hereby orders that
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 the
proposed program or any of its particulars. The public hearing may be continued from time to time
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 summarized
and the Commission shall afford all persons who are present an opportunity to comment upon,
object to, or present evidence with regard to the proposed contractual assessment program, the
extent of the area proposed to be included within the program, the terms and conditions of the
draft Contract described in Section 8 below, or the proposed financing provisions. Following the
public hearing, California Communities may adopt a resolution confirming the Report (the
"Resolution Confirming Report") or may direct the Report's modification in any respect, or may
abandon the proceedings.
The 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 or
more often, with at least five days intervening between the respective publication dates not
counting such publication dates, are sufficient. The period of notice will commence upon the first
day of publication and terminate at the end of the fourteenth day. The first publication shall occur
not later than 20 days before the date of the public hearing.
Section 7. Notice to Water and Electric Providers. Pursuant to Section 5898.24 of the
Streets & Highways Code, the Commission hereby orders the Secretary to provide written notice
of the proposed contractual assessment program within the County to all water and electric
providers within the boundaries of the County not less than 60 days prior to adoption of the
Resolution Confirming Report.
Section 8. Report. The Commission hereby directs the Program Manager for the
CaliforniaFIRST Program to prepare and file with the Commission a report (the "Report") at or
before the time of the public hearing described in Section 6 above containing all of the following:
(a) A map showing the boundaries of the territory within which contractual
assessments are proposed to be offered, as set forth in Section 4 above.
(b) A draft contract (the "Contract") specifying the terms and conditions that would be
agreed to by California Communities and a property owner within the County. The Contract may
allow property owners to purchase directly the related equipment and materials for the
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installation of the Authorized Improvements and to contract directly for the installation of such
Authorized Improvements.
(c) A statement of California Communities' policies concerning contractual
assessments including all of the following:
(1) Identification of types of Authorized Improvements that may be financed
through the use of contractual assessments.
(2) Identification of California Communities official authorized to enter into
contractual assessments on behalf of California Communities.
(3) A maximum aggregate dollar amount of contractual assessments in the
County.
(4) A method for setting requests from property owners for financing through
contractual assessments in priority order in the event that requests appear likely to
exceed the authorization amount.
(d) A plan for raising a capital amount required to pay for work performed pursuant
to contractual assessments. The plan may include amounts to be advanced by California
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. The
plan shall include a statement of or method for determining the interest rate and time period
during which contracting property owners would pay any assessment. The plan shall provide for
any reserve fund or funds. The plan shall provide for the apportionment of all or any portion of
the costs incidental to financing, administration, and collection of the contractual assessment
program among the consenting property owners and California Communities.
(e) A report on the results of the consultations with the County Auditor -Controller
described in Section 10 below concerning the additional fees, if any, that will be charged to
California Communities for incorporating the proposed contractual assessments into the
assessments of the general taxes of the County on real property, and a plan for financing the
payment of those fees.
Section 9. Mature of Assessments. Assessments levied pursuant to Chapter 29, and
the interest and any penalties thereon, will constitute a lien against the lots and parcels of land
on which they are made, until they are paid. Unless otherwise directed by California
Communities, the assessments shall be collected in the same manner and at the same time
as the general taxes of the County on real property are payable, and subject to the same
penalties and remedies and lien priorities in the event of delinquency and default.
Section 10. Consultations with County Auditor -Controller. California Communities
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 to
California Communities for incorporating the proposed contractual assessments into the
assessments of the general taxes of the County on real property.
Section 11. Preparation of Current Rail of Assessment. Pursuant to Section
5898.24(c), California Communities hereby designates the Program Manager (or his/her
designee) as the responsible official for annually preparing the current roll of assessment
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obligations by assessor's parcel number on property subject to a voluntary contractual
assessment.
Section 12. Procedures for Responding to Inquiries. The Program Manager shall
establish procedures to promptly respond to inquiries concerning current and future estimated
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 California
Communities in connection with the CaliforniaFIRST Program. The Program Manager is hereby
authorized and directed to enter into appropriate agreements with such firm for its services to
California Communities in connection with the matters addressed in this Resolution.
Section 14. Effective Date. This resolution shall take effect immediately upon its
adoption.
PASSED AND ADOPTED by the California Statewide Communities Development
Authority this , 2010.
I, the undersigned, the duly appointed, and qualified member of the Commission of the
California Statewide Communities Development Authority, DO HEREBY CERTIFY that the
foregoing resolution was duly adopted by the Commission of said Authority at a duly called
meeting of the Commission of said Authority held in accordance with law on , 2010.
M
Member
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