HomeMy WebLinkAbout7140_CCv0001.pdf RESOLUTION NO. 7140
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
AUTHORIZING THE CITY OF REDLANDS TO JOIN THE CALIFORNIA
PACE PROGRAM AND AUTHORIZING THE CALIFORNIA ENTERPRISE
DEVELOPMENT AUTHORITY TO CONDUCT CONTRACTUAL
ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL
ASSESSMENTS WITHIN THE TERRITORY OF THE CITY OF REDLANDS;
AND AUTHORIZING RELATED ACTIONS
RECITALS
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 Redlands(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
1Acc1erk\Reso1utkms%cs 7100-7199X7140 Califomia PACE Pmgratn-doc I
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;
and
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 on which this Resolution shall come
before the City Council in a newspaper of general circulation in the City and a public hearing has
been duly conducted by the City Council concerning the significant public benefits of California
PACE and the financing of the Improvements;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as
follows:
Section 1. On the date hereof, the City Council held a public hearing and the City
Council hereby finds and determines that the issuance of bonds by CERA 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 CERA 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, CERA has prepared and will
update from time to time the "Program Report" for California PACE(the"Program Report"), and
CERA 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: Michael Lengyel, Economic Development Manager, 909-
335-4755,mlengyel(a-)cityofredlands.org.
,
1Acc1erk\ResdufionsXRes 7100-719%7140 C-Wifomia PACE Progrwn-doc 2
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 CERA 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 CERA.
Section 8. Services related to the formation and administration of the assessment
district will be provided by CERA at no cost to the City per the AB8 I I Services Agreement
attached hereto as Exhibit"B."
lAcclerk'ResolutionsWes 71W719%7140 CMifbmia PACE Progam.doc 3
ADOPTED, SIGNED AND APPROVED this 21}x'day of March, 2012.
JI
Peter Aui ar, Mayor
ATTEST:
Sam Irwin,CiTClerk
1, Sam Irwin, City Clerk of the City of Redlands, hereby certify that the foregoing Resolution
was duly adopted by the City Council at a regular meeting thereof, held on the 2& day of
March, 2012,by the following vote:
AYES: Councilmembers Harrison, Bean, Foster, Gardner; Mayor Aguilar
NOES: Nene
ABSTAIN: None
ABSENT: None
Sam Irwin, City Cler
L\cderkkPescrtu# \Res 7100-719%7140 Califomia PACE Prograrm:do 4
EXHIBIT A
FORM OF RESOLUTION DECLARING INTENTION TO FINANCE
INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE
ENERGY SOURCES, ENERGY EFFICIENCY AND WATER
EFFICIENCY IMPROVEMENTS
CITY OF REDLANDS
WHEREAS, the California Enterprise Development Authority ("CEDA") is authorized under
the authority granted CEDA pursuant to Chapter 5 of Division 7 of Title I 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 Redlands(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
-1hat purpose are due on the sale of the property,prevents many property owners from
installing Authorized Improvements.
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CERA 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, CERA 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, CERA hereby orders that a public hearing be
held before this Board, at on 201 a t f 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, CERA 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 & 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 CERA 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 Rinds 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.Natum 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 A Professional
Law Corporation, ��� ffl I 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
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 muting of the
Commission of said Authority held in accordance with law on � �
By:
Member
EXHIBIT B
AB 811 SERVICES AGREEMENT
The California Emprise Development Authority (CEDA) has contraded with the firm of FIGtree
Energy Raourve Company (RGtree) to provide AB 811 formation and administrafion services to
participating member agencies.
SCOPE OFSERVICES(No Cast Services)
FIGtree will provide CERA and the City of Redlands(the-City"}formation and adrnirtistratiom services
in connection with the California FACE 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,FI+Gtree will act as the"expert resource"for the City and is
available to answer questions and advise the City on particular issues involving energy dutricts(s)
established per California Streets and Highways Cole beginning with Sections 5898.10 (originally
approved under Assembly Bill 811—AB811).
DATA COLLECH7ON. 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.
FORMATTONPACE REPORT: FIGtree will prepare the energy district formation Report as required
by Section 5898.22 of the California Streets and Highway Code.
RESOL UTIONS.FIGtree will prepare the required resolutions to be adopted by the City.
UTLEHYNOTICES FIGtree will prepare and send the required notices that must be 'tted to the
local utility 'es.
AAWCAL 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 assessmenv4 paid off parcels
and release of liens.
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 anizing workshops to property
owners and conhwims to preparing g materials
FlGtrft Energy Resource Companyl 9915 Mira Mesa.Blvd,Suite 130.,San Diego,CA 92131
ftp 1 Oft
EXHIBIT B 0
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.
..80111*Bates:
Executive $270
Senior Consultant 225
AiWyst 125
ClericaUSupport 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 en 5% Coat Recovery
CEDA 0.75%
city 2.00%
FIGtree 2.25%
FIGtree Energy Resource Company City OF REDLANDS
Mahesh Shah
CEO ( 1 r I
Title Date Title Date
FIGtree Energy Resource Company 9915 Mira Mesa Blvd,Suite 130.,San Diegq CA 92131
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