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HomeMy WebLinkAboutReso 16-2012 RESOLUTION NO. 16 -2012 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING THE CITY OF SOUTH SAN FRANCISCO TO JOIN THE CALIFORNIA PACE PROGRAM; AUTHORIZING THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY TO CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE CITY OF SOUTH SAN FRANCISCO; AND AUTHORIZING RELATED ACTIONS WHEREAS, the California Enterprise Development Authority ( "CEDA ") is a joint exercise of powers authority the members of which include numerous cities and counties in the State of California, including the City of South San Francisco (the "City "); and WHEREAS, CEDA has established the California PACE program ( "California PACE ") to allow the financing of certain renewable energy, energy efficiency and water efficiency improvements (the "Improvements ") through the levy of contractual assessments pursuant to Chapter 29 of Division 7 of the Streets & Highways Code ( "Chapter 29 ") and the issuance of improvement bonds (the "Bonds ") under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 et seq.) (the "1915 Act ") upon the security of the unpaid contractual assessments; and WHEREAS, Chapter 29 provides that assessments may be levied under its provisions only with the free and willing consent of the owner of each lot or parcel on which an assessment is levied at the time the assessment is levied; and WHEREAS, the City desires to allow the owners of property within its jurisdiction ( "Participating Property Owners ") to participate in California PACE and to allow CEDA to conduct assessment proceedings under Chapter 29 and to issue Bonds under the 1915 Act to finance the Improvements; and WHEREAS, CEDA will conduct assessment proceedings under Chapter 29 and issue Bonds under the 1915 Act to finance Improvements; WHEREAS, there has been presented to this meeting a proposed form of Resolution of Intention to be adopted by CEDA 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 California PACE shall be coterminous with the City's official boundaries of record at the time of adoption of the ROI (the "Proposed Boundaries "); and WHEREAS, pursuant to Chapter 29, the City authorizes CEDA to conduct assessment proceedings, levy assessments, pursue remedies in the event of delinquencies, and issue bonds or other forms of indebtedness to finance the Improvements in connection with California PACE, and thus the City will not be responsible for the conduct of any assessment proceedings, the levy of assessments or any required remedial action in the case of delinquencies, the issuance, sale or administration of the bonds or other indebtedness issued in connection with California PACE. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco, as follows: Section 1. On the date hereof, the City Council hereby finds and determines that the issuance of bonds by CEDA in connection with California PACE will provide significant public benefits, including without limitation, savings in effective interest rate, bond preparation, bond underwriting and bond issuance costs and reductions in effective user charges levied by water and electricity providers within the boundaries of the City. Section 2. In connection with California PACE, the City hereby consents to the special assessment proceedings by CEDA 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; (2) The Participating Property Owners, who shall be the legal owners of such property, voluntarily execute a contract pursuant to Chapter 29 and comply with other applicable provisions of California law in order to accomplish the valid levy of assessments; and (3) The City will not be responsible for the conduct of any assessment proceedings; the levy of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of the Bonds or any other bonds issued in connection with California PACE. Section 3. Pursuant to the requirements of Chapter 29, CEDA has prepared and will update from time to time the "Program Report" for California PACE (the "Program Report"), and CEDA will undertake assessment proceedings and the financing of Improvements as set forth in the Program Report. Section 4. The appropriate officials and staff of the City are hereby authorized and directed to make applications for California PACE available to all property owners who wish to finance Improvements. The following staff persons, together with any other staff designated by the City Manager from time to time, are hereby designated as the contact persons for CEDA in connection with California PACE: Marty VanDuyn, Assistant City Manager, 650- 829 -6620, Marty. V anDuyn @ss£net. 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 CEDA in accordance with the Program Report to implement California PACE for Participating Property Owners. Section 6. The City Council hereby finds that adoption of this Resolution is not a "project" under the California Environmental Quality Act ( "CEQA "), because the Resolution does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b )( 4)). Section 7. This Resolution shall take effect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of CEDA. Section 8. Services related to the formation and administration of the assessment district will be provided by CEDA at no cost to the City per the AB811 Services Agreement attached hereto as Exhibit B. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 22 day of February, 2012 by the following vote: AYES: Councilmembers Mark Addiego, Karyl Matsumoto, and Kevin Mullin, Vice Mayor Pedro Gonzalez and Mayor Richard A. Garbarino NOES: None ABSTAIN: None ABSENT: None ATTESt , tie 7'erk EXHIBIT A FORM OF RESOLUTION DECLARING INTENTION TO FINANCE INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY EFFICIENCY AND WATER EFFICIENCY IMPROVEMENTS CITY OF SOUTH SAN FRANCISCO WHEREAS, the California Enterprise Development Authority ( "CEDA ") is authorized under the authority granted CEDA pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California in accordance with Chapter 29 of Part 3 of Division 7 of the Streets & Highways Code of the State of California ( "Chapter 29 ") to authorize assessments to finance the installation of distributed generation renewable energy sources, energy efficiency and water efficiency improvements that are permanently fixed to real property ( "Authorized Improvements "); and WHEREAS, Chapter 29 authorizes CEDA to enter into contractual assessments to finance the installation of Authorized Improvements in the City of South San Francisco (the "City "); and WHEREAS, CEDA wishes to declare its intention to establish a California PACE program ("California PACE") in the City, pursuant to which CEDA, subject to certain conditions set forth below, would enter into contractual assessments to finance the installation of Authorized Improvements in the City. NOW, THEREFORE, BE IT RESOLVED by the California Enterprise Development Authority, as follows: Section 1. Findings. CEDA hereby finds and declares the following: (a) The above recitals are true and correct. (b) Energy conservation efforts, including the promotion of energy- related Authorized Improvements to residential, commercial, industrial, or other real property, are necessary to address the issue of global climate change and the reduction of greenhouse gas emissions in the City. (c) 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 California PACE, pursuant to which CEDA will finance the installation of Authorized Improvements to residential, commercial, industrial, or other real property in the City. Section 2. Determination of Public Interest. CEDA hereby determines that (a) it would be convenient, advantageous, and in the public interest to designate an area, which shall encompass the entire geographic territory within the boundaries of the City, within which CEDA and property owners within the City may enter into contractual assessments to finance the installation of Authorized Improvements pursuant to Chapter 29 and (b) it is in the public interest for CEDA to finance the installation of Authorized Improvements in the City pursuant to Chapter 29. Section 3. Identification of Authorized Improvements. CEDA hereby declares that it proposes to make contractual assessment financing available to property owners to finance installation of Authorized Improvements, including but not limited to those improvements detailed in the Report described in Section 8 below, as that Report may be amended from time to time. Section 4. Identification of Boundaries. Contractual assessments may be entered into by property owners located within the entire geographic territory of the City; provided, however, that CEDA shall not enter into contractual assessments to finance the installation of Authorized Improvements with the owner of any property in the City unless requested to do so first by the City and after the City, has held a public hearing pursuant to Section 6586.5 of the Government Code of the State of California. Section 5. Proposed Financing Arrangements. Under Chapter 29, CEDA may issue bonds, notes or other forms of indebtedness pursuant to Chapter 29 that are payable by contractual assessments. Division 10 (commencing with Section 8500) of the Streets & Highways Code of the State (the "Improvement Bond Act of 1915 ") shall apply to any indebtedness issued pursuant to Chapter 29, insofar as the Improvement Bond Act of 1915 is not in conflict with Chapter 29. The creditworthiness of a property owner to participate in the financing of Authorized Improvements will be based on the criteria developed by the Program Administrator in consultation with the California PACE financing team as on file with the Clerk. In connection with indebtedness issued under the Improvement Bond Act of 1915 that are payable from contractual assessments, serial and /or term improvement bonds or other indebtedness shall be issued in such series and shall mature in such principal amounts and at such times (not to exceed 20 years from the second day of September next following their date) and at such rate or rates of interest (not to exceed the maximum rate permitted by applicable law) as shall be determined by CEDA at the time of the issuance and sale of the indebtedness. The provisions of Part 11.1 of the Improvement Bond Act of 1915 shall apply to the calling of the bonds. It is the intention of CEDA to create a special reserve fund for the bonds under Part 16 of the Improvement Bond Act of 1915. CEDA will not advance available surplus funds from its treasury to cure any deficiency in the redemption fund to be created with respect to the indebtedness; provided, however, that this determination shall not prevent CEDA from, in its sole discretion, so advancing funds. The bonds may be refunded under Division 11.5 of the California Streets and Highways Code or other applicable laws permitting refunding, upon the conditions specified by and at the determination of CEDA. CEDA hereby authorizes the Program Administrator, after consultation with bond counsel and the California PACE underwriter, to provide for the issuance of bonds, notes or other forms of indebtedness permitted by Chapter 29 payable from contractual assessments. In connection with the issuance of bonds payable from contractual assessments, CEDA expects to obligate itself, through a covenant with the owners of the bonds, to exercise its foreclosure rights with respect to delinquent contractual assessment installments under specified circumstances. Section 6. Public Hearing. Pursuant to the Act, CEDA hereby orders that a public hearing be held before this Board, at 550 Bercut Dr, Suite G, Sacramento CA 95811 on Thursday, April 26, 2012, at 10:30 AM, for the purposes of allowing interested persons to object to or inquire about the proposed program or any of its particulars. The public hearing may be continued from time to time as determined by the Board for a time not exceeding a total of 180 days. At the time of the hearing, the Report described in Section 8 below shall be summarized and the Commission shall afford all persons who are present an opportunity to comment upon, object to, or present evidence with regard to the proposed contractual assessment program, the extent of the area proposed to be included within the program, the terms and conditions of the draft Contract described in Section 8 below, or the proposed financing provisions. Following the public hearing, CEDA may adopt a resolution confirming the Report (the "Resolution Confirming Report") or may direct the Report's modification in any respect, or may abandon the proceedings. The Board hereby orders the Clerk to publish a notice of public hearing once a week for two successive weeks. Two publications in a newspaper published once a week or more often, with at least five days intervening between the respective publication dates not counting such publication dates, are sufficient. The period of notice will commence upon the first day of publication and terminate at the end of the fourteenth day. The first publication shall occur not later than 20 days before the date of the public hearing. Section 7. Notice to Water and Electric Providers. Pursuant to Section 5898.24 of the Streets & Highways Code, written notice of the proposed contractual assessment program within the City to all water and electric providers within the boundaries of the City has been provided. Section 8. Report. The Commission hereby directs the Program Administrator for California PACE to prepare and file with the Commission a report (the "Report") at or before the time of the public hearing described in Section 6 above containing all of the following: a) A map showing the boundaries of the territory within which contractual assessments are proposed to be offered, as set forth in Section 4 above. b) A draft contract (the "Contract ") specifying the terms and conditions of the agreement between CEDA and a property owner within the City. c) A statement of CEDA's policies concerning contractual assessments including all of the following: (1) Identification of types of Authorized Improvements that may be financed through the use of contractual assessments. (2) Identification of CEDA official authorized to enter into contractual assessments on behalf of CEDA. (3) A maximum aggregate dollar amount of contractual assessments in the City. (4) A method for setting requests from property owners for financing through contractual assessments in priority order in the event that requests appear likely to exceed the authorization amount. d) A plan for raising a capital amount required to pay for work performed in connection with contractual assessments. The plan may include the sale of a bond or bonds or other financing relationship pursuant to Section 5898.28 of Chapter 29. The plan (i) shall include a statement of, or method for determining, the interest rate and time period during which contracting property owners would pay any assessment(ii) shall provide for any reserve fund or funds and (iii) shall provide for the apportionment of all or any portion of the costs incidental to financing, administration, and collection of the contractual assessment program among the consenting property owners and CEDA. e) A report on the results of the consultations with the County Auditor - Controller described in Section 10 below concerning the additional fees, if any, that will be charged to CEDA for incorporating the proposed contractual assessments into the assessments of the general taxes of the County on real property, and a plan for financing the payment of those fees. Section 9. Nature of Assessments. Assessments levied pursuant to Chapter 29, and the interest and any penalties thereon, will constitute a lien against the lots and parcels of land on which they are made, until they are paid. Unless otherwise directed by CEDA, the assessments shall be collected in the same manner and at the same time as the general taxes of the County on real property are payable, and subject to the same penalties and remedies and lien priorities in the event of delinquency and default. Section 10. Consultations with County Auditor - Controller. CEDA hereby directs the Program Administrator to enter into consultations with the County Auditor - Controller in order to reach agreement on what additional fees, if any, will be charged to CEDA for incorporating the proposed contractual assessments into the assessments of the general taxes of the County on real property. Section 11. Preparation of Current Roll of Assessment. Pursuant to Section 5898.24(c), CEDA hereby designates the Program Administrator (or his /her designee) as the responsible party for annually preparing the current roll of assessment obligations by assessor's parcel number on property subject to a voluntary contractual assessment. Section 12. Procedures for Responding to Inquiries. The Program Administrator shall establish procedures to promptly respond to inquiries concerning current and future estimated liability for a voluntary contractual assessment. Section 13. Professionals Appointed. CEDA hereby appoints Lewis Brisbois of Bisgaard & Smith LLP, A Professional Law Corporation, as bond counsel and disclosure counsel to CEDA in connection with California PACE. The Commission hereby authorizes and directs an Authorized Signatory of CEDA (as determined from time to time by the Commission by separate resolution) to enter into appropriate agreements with such firm for its services to CEDA in connection with the matters addressed in this Resolution. Section 14. Effective Date. This resolution shall take effect immediately upon its adoption. * * * * * * * * * * ** PASSED AND ADOPTED by the California Enterprise Development Authority this March 29, 2012. I, the undersigned, the duly appointed, and qualified member of the Commission of the California Enterprise Development Authority, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Commission of said Authority at a duly called meeting of the Commission of said Authority held in accordance with law on , 20 By: Member EXHIBIT B AB 811 SERVICES AGREEMENT The California Enterprise Development Authority (CEDA) has contracted with FIGtree Energy Resource Company (FIGtree) to provide AB 811 formation and administration services to participating member agencies. SCOPE OF SERVICES (No Cost Services) California Property Assessed Clean Energy (California PACE) Program FIGtree will provide CEDA and the City of South San Francisco (the "City ") formation and administration services in connection with the California PACE program. These services will be provided at no cost to the City. These services include, but are not limited to the following: EXPERT RESOURCE. First and foremost, FIGtree will act as the "expert resource" for the City and is available to answer questions and advise the City on particular issues involving energy districts(s) established per California Streets and Highways Code beginning with Sections 5898.10 (originally approved under Assembly Bill 811 — AB811). DATA COLLECTION. FIGtree will gather and review data pertinent to the formation of the Property Assessed Clean Energy (California PACE) District. FIGtree will maintain and periodically update a database of all parcels within the district and relevant parcel information. ANNUAL ASSESSMENT ROLL. FIGtree will calculate the annual assessment for each parcel and submit the amount for each parcel to the County Auditor /Controller in the format and medium required. FORMATION PACE REPORT. FIGtree will prepare the energy district formation Report as required by Section 5898.22 of the California Streets and Highway Code. RESOLUTIONS. FIGtree will prepare the required resolutions to be adopted by the City. UTILITY NOTICES. FIGtree will prepare and send the required notices that must be transmitted to the local utility companies. ANNUAL REPORT. FIGtree will provide a comprehensive Annual Report that will show a detailed listing of the amounts submitted to the assessment roll, details of delinquent assessments, paid off parcels and release of liens. Additional Services The team at FIGtree is readily available to assist the City in its endeavors to promote PACE financing to its property owners. FIGtree can assist from organizing workshops to property owners and contractors to preparing marketing materials. In the event that City would like to engage FIGtree to perform additional services above and beyond the no cost Scope of Services, the additional services authorized by the City will be billed at this rate or the then applicable hourly rate. Title Hourly Rate Executive $ 270 Senior Consultant 225 Analyst ! 125 Clerical /Support 55 ANNUAL ASSESSMENT COST RECOVERY In order to be able to provide AB811 services to the City at no cost, revenues will be derived under the California PACE program from multiple sources. One such source is the Annual Assessment Cost Recovery (the "Cost Recovery "). The Cost Recovery is the revenue collected annually on the property tax rolls in the amount of five percent (5 %) of the annual assessment amount due by the property owner. The City Agrees to have Cost Recovery collected on an annual basis and apportioned to the following parties as follows: COST RECOVERY SCHEDULE: Participating Agency 5% Cost Recovery CEDA 0.75% City 2.00% E`1Gtree 2.25% FICtree Energy Resource Company CITY OF SOUTH SAN FRANCISCO Mahesh Shah Barry M. Nagel CEO [ ] City Manager ( ) Title Date Title Date 1798158.1