HomeMy WebLinkAbout2010-02-23; City Council; 20136; Approval to Join California First Program to Finance Renewable Energy Sources, Energy and Water Efficiency Improvements11
V13S7 CITY OF CARLSBAD - AGENDA BILL • ,
^l^7 ^^AB# 20.136
MTG. 02/23/2010
DEPT. PEM
APPROVAL TO JOIN THE CALIFORNIA FIRST
PROGRAM TO FINANCE RENEWABLE ENERGY
SOURCES, ENERGY EFFICIENCY AND WATER
EFFICIENCY IMPROVEMENTS
DEPT. DIRECTOR {Qfafy-'
CITY ATTORNEY <jg!§?.
CITY MANAGER u/ —
RECOMMENDED ACTION:
Adopt Resolution No. 2010-036 authorizing the City to join the CaliforniaFIRST Program, authorizing the
California Statewide Communities Development Authority to accept applications from property owners and
to conduct contractual assessment proceedings and levy contractual assessments within jurisdiction of the
City of Carlsbad, and authorizing related actions.
Adopt Resolution No. 2010-037 authorizing Sacramento County to apply for State Energy Program funds
to support the CaliforniaFIRST Program.
ITEM EXPLANATION:
Chapter 29 of Division 7 of the Streets and Highway Code authorizes cities and counties in California to
designate areas within which willing property owners can enter into contractual assessments to finance the
installation of distributed renewable energy sources, energy efficiency and water efficiency improvements
("efficiency improvements") that are permanently fixed to the property owner's residential, commercial,
industrial and other real property ("energy financing program").
Because of the difficulties in establishing and administering an energy financing program, the League of
California Cities and the California State Association of Counties worked through the existing California
Communities Joint Powers Authority to establish a statewide efficiency improvements assessment
program. The member agencies of California Communities include all 58 counties and more than 400 other
local agencies throughout California, including the City of Carlsbad. The result of this collaborative effort
was the creation of a statewide municipal financing program entitled "CaliforniaFIRST Pilot Phase, A
Collaborative Partnership" (the "CaliforniaFIRST Program").
The CaliforniaFIRST Program allows property owners to finance efficiency improvements through low-
interest loans that are repaid as an assessment item on the property owner's individual tax bill. The
contractual assessments cannot be used to finance the purchase or installation of appliances that are not
permanently fixed to the real property.
The initial stage of the program consists of a Pilot Phase that funds only distributed renewable energy
sources and energy efficiency improvements. Water efficiency measures will not be part of the initial pilot
launch, but will be added within the first six to twelve months of the pilot.
If a property owner chooses to participate, the improvements will be financed by the issuance of bonds by
California Communities. California Communities will levy "contractual assessments" on the owner's
property to repay the portion of the bonds issued to finance the improvements on that property. California
Communities has selected Renewable Funding LLC and RBC Capital Markets to provide administration
and financing for the program.
Department contact: David Hauser, 760-602-2739, David.Hauser@carlsbadca.gov
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
CITY-CLERKS USE ONLY
^ CONTINUED TO DATE SPECIFIC
D CONTINUED TO DATE UNKNOWN
D RETURNED TO STAFF
D OTHER -SEE MINUTES
D
D
D
D
D
Page 2
The benefits to the property owner include:
• Only property owners who choose to participate in the program will have assessments imposed on
their property.
• In today's economic environment, there may not be attractive private enterprise alternatives for
property owners to finance renewable energy/energy efficiency/water efficiency improvements.
• Even if there were private enterprise alternatives, most private loans are due on sale of the
benefited property, which makes it difficult for property owners to match the life of the repayment
obligation with the useful life of the financed improvements. Under the CaliforniaFIRST Program,
the assessment obligation will transfer with the property upon sale.
• The property owner can choose to pay off the assessments at any time.
• By virtue of regional aggregation provided by the CaliforniaFIRST Program, small projects, both
residential and commercial, can have access to the municipal bond market, which may produce a
lower borrowing cost.
The benefits to the City include:
• As in conventional assessment financing, the City is not obligated to repay the bonds issued by
California Communities or to pay the assessments levied on the participating properties.
• California Communities handles all assessment administration, bond issuance and bond
administration functions. A participating city can provide financing of renewable energy, energy
efficiency and water efficiency improvements to property owners through the CaliforniaFIRST
Program - thereby meeting its political and environmental goals — while committing virtually no
staff time to administer the program.
The first resolution, attached as Exhibit 1, authorizes California Communities to accept applications from
owners of property within Carlsbad for municipal financing of distributed renewable energy sources, energy
efficiency and water efficiency improvements through the CaliforniaFIRST Program. The first resolution
additionally authorizes:
• California Communities to conduct assessment proceedings and levy assessments against the
property of participating owners within Carlsbad.
• Ratification of City Manager's letter to California Energy Commission, dated December 7, 2009
declaring City's commitment to the energy financing program application of Sacramento County
regarding the CaliforniaFIRST Program.
• Miscellaneous related actions and makes certain findings and determinations required by law.
California Communities will undertake a judicial validation proceeding as part of its initiation of the
CaliforniaFIRST Program.
• Payment of a set-up fee to cover legal, procedural, and technology costs associated with the
CaliforniaFIRST Program. The fees, some of which are for optional services, are set forth in the
attached Exhibit 4. The fee for Carlsbad is $15,000. Because Carlsbad is one of the early adopters
into the CaliforniaFirst Program, this fee may be refunded from federal grant funds obtained by
Sacramento County on behalf of California Communities. Attached to the first resolution is a "Form
of Resolution of Intention to be Adopted by California Communities", identified as Exhibit A,
attached to the first Resolution. This is for informational purposes and does not require action by
City Council.
PageS
Also included, is a second resolution authorizing Sacramento County, acting as the fiscal agent chosen by
California Communities, to apply for and receive State Energy Program (SEP) funds on behalf of the City.
If the SEP grant application is successful, SEP funds will be used to reimburse the City for set-up fees as
noted in Exhibit 4, and will also be used to reduce the interest rate on the loan funds being made to
program recipients.
Any jurisdiction can withdraw from the CaliforniaFIRST Program at any time by passing a resolution
rescinding the authorization.
ENVIRONMENTAL IMPACT:
The action to join the California First program is not a project as defined by the California Environmental
Quality Act (CEQA) per State CEQA Guidelines Section 15378(b)(4). Therefore, the action is not subject to
further environmental review.
FISCAL IMPACT:
The City will be required to pay a $15,000 fee to California Communities to cover legal, procedural, and
technology costs associated with the CaliforniaFIRST Program. Funding for the fee would come from
Public Works Engineering Department budgetary savings as a result of improved efficiencies.
Reimbursement for the fee would be obtained if the SEP grant application is successful.
Since this is a pilot program, the program administrator, Renewable Funding LLC, cannot gauge the
success of the program and advises City staff that unspecified assistance in marketing the program may
be required. Unspecified staff time may also be required to talk with residents about the program and to
direct specific interest in the program to the program administrator.
EXHIBITS:
1. Implementation Path of AB 811
2. Resolution No. 2010-036 authorizing the City to join the CaliforniaFIRST Program, authorizing the
California Statewide Communities Development Authority to accept applications from property
owners and to conduct contractual assessment proceedings and levy contractual assessments within
jurisdiction of the City of Carlsbad, and authorizing related actions
3. Resolution No. 2010-037 authorizing the Sacramento County to apply for State Energy Program
funds to support the CaliforniaFIRST Program.
4. Table of CaliforniaFIRST Program set-up fees.
EXHIBIT 1
Implementation Path for CaliforniaFIRST
Energy Efficiency Program
July 2008 Governor signs into law Chapter 29, Part 3 of Division 7 of the Streets and
Highway Code (Renewable Energy Assessments Districts)
December 2009 City Manager sends non-binding letter of commitment to participate in joint
CaliforniaFIRST energy financing program and State Energy Program funding
application pending Council approval
December 2009 County of San Diego passes resolution to join CaliforniaFIRST pilot program
Current Status
February 2010
City Council authorizes participation in the CaliforniaFIRST energy financing
program and to have Sacramento County to apply for State Energy Program
funds on City's behalf
March -July
2010
Validation proceedings, establishment of energy districts and due diligence on
bond financing
June 2010 Renewable Funding LLC begins accepting applications from homeowners
1
RESOLUTION NO. 2010-036
2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
21
22
23
24
25
26
27
28
CARLSBAD, CALIFORNIA, TO JOIN THE CALIFORNIAFIRST
PROGRAM; AUTHORIZING THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT
APPLICATIONS FROM PROPERTY OWNERS AND TO
CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS
AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE
JURISDICTION OF THE CITY OF CARLSBAD AND
AUTHORIZING RELATED ACTIONS.
3
4
5
6
7 n
WHEREAS, the California Statewide Communities Development Authority ("California
8
Communities") is a joint exercise of powers authority the members of which include numerous
9
cities and counties in the State of California, including the City of Carlsbad the "City"; and,
10
WHEREAS, California Communities has established the CaliforniaFIRST program (the
11
"CaliforniaFIRST Program") to allow the financing of certain renewable energy, energy efficiency
and water efficiency improvements (the "Improvements") through the levy of contractual
I w
assessments pursuant to Chapter 29 of Division 7 of the Streets & Highways Code ("Chapter 29")14
and the issuance of improvement bonds (the "Bonds") under the Improvement Bond Act of 1915
I O
(Streets and Highways Code Sections 8500 and following) (the "1915 Act") upon the security of the16
unpaid contractual assessments; and,
._ WHEREAS, The City Manager of the City of Carlsbad ('City Manager") sent a letter of1o
commitment to the California Energy Commission, dated December 7,2009 declaring City'si y
__ commitment to the energy financing program application of Sacramento County regarding the
CaliforniaFIRST Program pending final approval of Council; 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
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
Declaring Intention to Finance Installation of Distributed Generation Renewable Energy Sources,
Energy Efficiency and Water Efficiency Improvements" 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 jurisdiction within which assessments may be levied for the CaliforniaFIRST
Program shall include all of the jurisdiction 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,
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
1R circulation in the City and a public hearing has been duly conducted by this City Council
19 concerning the significant public benefits of the CaliforniaFIRST Program and the financing of the
Improvements.
21 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
22 California, as follows:
23 1. That the above recitations are true and correct.
24
2. On the date hereof, the City Council held a public hearing and the City Council hereby
25
finds and declares that the issuance of bonds by California Communities in connection with the
26
CaliforniaFIRST Program will provide significant public benefits, including without limitation,
27 "
28
1
2
3
4
5
6
7
25
26
27
28
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 of Carlsbad.
3. 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
Q a. Such proceedings are conducted pursuant to one or more Resolutions of Intention
g in substantially the form of the ROI; and,
10 b. The Participating Property Owners, who shall be the legal owners of such property,
11 execute a contract pursuant to Chapter 29 and comply with other applicable provisions of
12 California law in order to accomplish the valid levy of assessments.
13
4. Pursuant to the requirements of Chapter 29, California Communities has prepared and
14
will update from time to time the "Program Report" for the CaliforniaFIRST Program (the "Program
15
Report"), and California Communities will undertake assessment proceedings and the financing of
16
Improvements as set forth in the Program Report.
17
5. The City Manager of the City or her designee is hereby authorized and directed to make
18
applications for the CaliforniaFIRST program available to all property owners who wish to finance19
Improvements; provided, that California Communities shall be responsible for providing such20
applications and related materials at its own expense. The City Manager or her designee is hereby
designated as the contact persons for California Communities in connection with the
CaliforniaFIRST Program.23
24 6. The City Manager or her designee is hereby authorized and directed to execute and
deliver such closing certificates, requisitions, agreements and related documents as are
reasonably required by California Communities in accordance with the Program Report to
implement the CaliforniaFIRST Program for Participating Property Owners and to evidence
1
2
3
4
5
6
7
8
ui ic?;
8. The letter of commitment signed by the City Manager and sent to the California Energy
of legal costs incurred in connection with judicial validation of the CaliforniaFIRST Program.
10
compliance with the requirements of federal and state law in connection with the 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 City Manager or her designee
is 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.
7. The City Manager or her designee is hereby authorized and directed to pay California
Communities a fee in an amount not to exceed $15,000, which California Communities will use to
pay for the costs of implementing the CaliforniaFIRST Program in the City, including the payment
Commission, dated December 7, 2009 declaring City's commitment to the energy financing
12 program application of Sacramento County regarding the CaliforniaFIRST Program is hereby
13 ,._ .ratified.
14
9. This Resolution shall take effect immediately upon its adoption. The City Clerk is hereby
15 authorized and directed to transmit a certified copy of this resolution to the Secretary of California
16
Communities.
17 "
18
19
20
21
22
23
24
25
26
27
8
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 23rd day of February, 2010, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
"li£wlS,AMayor
ATTEST:
E M. to00D, City Clerk CS
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, and 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:f
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.
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 7 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
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 CaliforniaFIRST 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 , , 2010 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 7 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 7 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. 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
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 9 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 8. 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 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 9. 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 10. Preparation of Current Roll 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
obligations by assessor's parcel number on property subject to a voluntary contractual
assessment.
Section 11. 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 12. 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 Commission hereby
authorizes and directs an Authorized Signatory of California Communities (as determined from
time to time by the Commission by separate resolution) to enter into appropriate agreements
with such firm for its services to California Communities in connection with the matters
addressed in this Resolution.
Section 13. Set-Up Fees. The County and various cities within the County may advance
fees to California Communities to pay for certain costs of establishing the CaliforniaFIRST
Program, some or all of which represent State Energy Program (SEP) funds. The Program
Manager is hereby authorized and directed to return to the County and cities, as applicable, any
fees paid to California Communities by the County and cities, as applicable, that do not
represent SEP funds and that California Communities does not use to pay for the costs of
establishing the CaliforniaFIRST Program.
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.
By;.
Member
RESOLUTION NO. 2010-037
2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
3 CARLSBAD, CALIFORNIA, AUTHORIZING SACRAMENTO
COUNTY TO APPLY FOR FUNDS ON BEHALF OF THE CITY
4 OF CARLSBAD.
WHEREAS, the City of Carlsbad recognizes that it is in the interest of the regional state
and national economy to stimulate the economy, create and retain jobs, reduce fossil fuel
7 emissions and reduce total energy usage and improve energy efficiency within our jurisdiction;
8 and,
9 I WHEREAS, State Energy Program ("SEP") funds are available through the California
10 Energy Commission SEP for grants to eligible local governments for energy efficiency, energy
11 conservation, renewable energy and other energy related projects and activities authorized by the
1")American Recovery and Reinvestment Act of 2009 ARRA; and,
WHEREAS SEP allows for cities counties or groups of cities and counties in California to
apply for SEP funds on behalf of eligible local governments; and,
WHEREAS the City of Carlsbad is eligible for SEP funding under the California Energy
1 fi Commission SEP; and,
WHEREAS the City of Carlsbad is proposing to collaborate with Sacramento County to
18 implement a program for financing the energy efficiency, energy conservation, renewable energy
19 and other energy related projects and activities authorized by ARRA which program is described in
20 the document entitled "California Energy Commission State Energy Program CaliforniaFIRST
21 Collaborative Proposal Summary of Proposal & Budget Framework", attached as Exhibit A, for the
22 purpose of qualifying for SEP funds from the California Energy Commission; and,
23 WHEREAS the Planning Director of the City of Carlsbad has considered the application of
24 the California Environmental Quality Act ("CEQA") to the approval of the program for financing
25 energy efficiency, energy conservation, renewable energy and other energy related projects and
26
activities authorized by ARRA described in Exhibit A; and,
27"
28
1 WHEREAS the Planning Director of the City of Carlsbad finds that the approval of the program for
2 financing energy efficiency, energy conservation, renewable energy and other energy related
3 projects and activities authorized by ARRA described in Exhibit A, is not a project under CEQA
4
5
6
7
8
9
10
11
12
13
14
15
16
because the program 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 155378(b)(4).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
1. That the above recitations are true and correct.
2. That, if recommended for funding by the California Energy Commission, the City of
Carlsbad authorizes Sacramento County to accept a grant award on its behalf and to
enter into all necessary contracts and agreements and amendments, thereto, on its
behalf to implement and carry out the program for financing energy efficiency, energy
conservation, renewable energy and other energy related projects and activities
authorized by ARRA and consistent with what is described in Exhibit A.
17 //
18 „
19 „
20 „
21 //
22 //
23£6 n
24
25
26
27
28
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 23rd day of February, 2010, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
, Mayor
ATTEST:
LO'RRAINE^/I. wodD,cJty cierk
(jfEAL) (_)
Te> f'
Exhibit A
California Energy Commission State Energy Program
CaliforniaFIRST Collaborative Proposal
Summary of Proposal Scope & Budget Framework
DRAFT as of December 2, 2009
Description of Program Proposal
Under the lead applicant, Sacramento County, the 14 counties eligible to participate
in the pilot stage of the CaliforniaFIRST Program are collaborating on a proposal to
the California Energy Commission State Energy Program for a grant of up to $16.5
million. The grant funds will be used to offset initial fees associated with bond
issuance, start-up costs for the 14 counties and all incorporated cities, an interest
rate buy-down, local marketing/education/training/outreach, local coordination, and
grant administration to support the launch of the CaliforniaFIRST municipal financing
program.
CaliforniaFIRST Program County Participants and Proposal Collaborators
s Alameda s Sacramento s San Mateo s Ventura
s Fresno -S San Benito -s Santa Clara •/ Yolo
s Kern s San Diego s Santa Cruz
s Monterey s San Luis Obispo s Solano
Budget Basics
1. CaliforniaFIRST financing costs and fees (~$6M)
Guided by California Communities and the CaliforniaFIRST Program Administrator
Renewable Funding, this program element will:
• buy-down the interest rate on the initial round(s) of projects financed by the
CaliforniaFIRST Program,
• cover fixed costs associated with initial bond counsel, bond disclosure, fiscal
agent and bond rating,
• cover legal and validation costs, and
• cover the deployment of technology (web portal) to support local programs.
2. Grant/Contract Administration & Steering Committee Liaison: (~$2.0M)
On behalf of the applicant agency, grant/contractor administration duties include
gathering relevant reporting information from all partner jurisdictions and
CaliforniaFIRST, financial oversight and invoicing, contract administration, tracking,
monitoring, and oversight of deliverables. In addition, the grant administrator will
serve as the partner liaison between all participating steering committees to maintain
coordination and consistency on the local marketing efforts between parties as well
as provide marketing and contract technical assistance, training, and advice to
participating agencies. The Grant Administrator will also coordinate local efforts with
those programs funded under the California Comprehensive Residential Building
Retrofit Program.
3. Regional Program Coordination & Marketing: (~$8.5M)
In line with the overall project goals, funding has been budgeted on a regional basis
to each of the six primary program regions in the following amounts, based on total
number of Counties:
• Capitol Region (Sacramento/Yolo): $1,800,000
• Central Valley Region (Fresno/Kern): $1,150,000
• Bay Area Region: (Alameda/San Mateo/Santa Clara/Solano): $2,300,000
• North Central Coast Region: (Monterey/Santa Cruz/San Benito): $1,725,000
• South Central Coast Region: (Ventura/San Luis Obispo): $1,150,000
• Southern California Region: (San Diego): $575,000
This final program element serves to provide each region with the resources
necessary to help facilitate the rapid adoption of energy efficiency and renewable
energy generation system installations throughout the target area by connecting
property owners to any and all available on-the-ground or proposed resources, and
services, providing a streamlined framework for easy navigation, reduced out-of-
pocket expenses, and overall increased cost effectiveness for both participants and
the program overall. The focus of the program will be to create region-wide (or
county-wide, where appropriate) cooperative project design, implementation,
marketing, and coordination to maximize economies of scale, take advantage of
overlapping markets, and ultimately allow each dollar to go further to benefit all
parties.
Financing Costs and Fees
A. Financing Costs
As Program Administrator of the California Communities CaliforniaFIRST Program,
Renewable Funding will coordinate and provide program administration, financing,
and legal services to support a robust statewide municipal financing program.
Specific financing costs are concentrated at the start of the program and result in
increased fees to a program participant, and therefore a higher effective interest
rate. In order to lower the interest rate, the SEP funds will be used to cover bond
disclosure counsel, bond rating fees, and a bond fiscal agent. In addition, a direct
interest rate buy-down will be employed to achieve a bond rate that is equivalent to
an A-rated bond, which is likely to be the bond rating later in the program.
B. Set-up Fees
A funding request equivalent to the city and county set-up fees will be included in
the proposal. The costs for initial legal work and validation proceedings will be
covered by this request. Additionally, the costs of establishing county web portals,
importing local assessor's data, and maintaining the website will be part of this
funding request.
Suggested Maior Marketing Program Coordination & Marketing Program
Elements
A. Agency Coordination / Steering Committee Participation
In recognition of the additional coordination time required to get new programs off
the ground, individual counties may elect to include a modest amount of staff time
for agency representatives to participate in the program steering committee and
other activities to drive marketing program design, educational/marketing material
development, form and protocol development, etc. By investing this time at the
onset, we are able to develop a self-sustaining program for the long term. County
agencies (that is, auditor/tax collector/controller) will receive a small percentage,
incorporated into each loan, to cover regular ongoing program administration costs
associated with maintaining the tax roll and collecting annual assessments in years
beyond the grant term. Some jurisdictions may instead wish to contribute this time
as project leveraged funds/resources to increase overall program cost effectiveness
based on their individual needs and resources. Regional partnership may also elect
to use a portion of the resources from this program element toward informal or
formalized staff/personnel training within their jurisdictions.
B. Education / Outreach/ Marketing
Successful program adoption requires thoughtful design, convenient procedures, and
a robust program education component to encourage and energize program
participation. Achieving this goal, the project team will create clear, consistent, and
thematic program branding imagery, educational and recruitment tools such as
program brochures. The program will be supported by the CaliforniaFIRST web
portal and links to new and existing partner and complementary websites, frequently
asked questions, applications, and/or other program materials. In addition, the
project will engage a wide-stretching network of partners to promote, recruit, and
disseminate program information utilizing existing mechanisms of door-to-door
outreach, community event tabling, workshops and presentations, or other
appropriate energy efficiency and complementary program participation activities.
Major elements might include:
s Outreach Promotional Materials: Brochures, Door-hangers, Postcard Mailers, Bill
Inserts, etc.
s Program Marketing Advertisements: Print Ads, Radio/TV Ads, PSA Production
s Promotional Outreach Events, Trade Shows or Community Workshops
•s Homeowner/Business/Contractor/Staff Training Seminars
s Sustainability Site Signage
s Green Building and/or LEED Certification Technical Assistance
C. Community Coordinator / Partner Liaison / Supplies
The community coordinator is envisioned to serve as the single point regional
program coordinator to unify, inform, collaborate, and engage all program parties in
relation to local coordination and marketing efforts; respond to public inquiries;
facilitate the education, outreach, marketing, recruitment; and promote program
adoption by the target community. In addition the coordinator is responsible for
coordinating with the grant administrator, tracking/reporting necessary progress and
metrics, meeting/exceeding grant milestones and targets, incorporating required
complementary program components, and working with CaliforniaFIRST to assure
QA/QC measures are applied to all participating properties. Specific tasks will be
driven by the overall project goals as well as the specific needs of each region and
may include:
v Coordination with Grant Administrator/Steering Committee Liaison
s Marketing Coordination with CaliforniaFIRST Municipal Finance District
s Facilitation of local Regional Steering Committee Members and Partners
s Assist with Implementation Strategy, Documents, Procedures & Protocols
Development
s Guide Promotion, Marketing, Education, Recruitment & Program Information
Dissemination
s Link Program Participants to Regional Energy Efficiency & Complementary
Programs
2o
s Connect to Concurrent Complementary Workforce Development
Training/Graduates
•s Administer Regional Program Budget, Competitive Bidding, Other Program
Transparency Reqs
s Track and/or compile, Monitor & Evaluate Program Progress, Energy Savings,
GHG Reductions Achieved, Partner Leveraged Funds and Ancillary Environmental
Benefits
Sample County Budget
A sample budget based on the above framework is provided below. Please note that
these amounts are subject to change based on the actual needs of each participating
jurisdiction as well as feedback obtained regarding funder and partner thresholds for
competitiveness.
Component
LCaliforniaFIRST Costs & Fees
2. Grant Administration & Technical Assistance
SA.Steering Advisory Committee
3B. Education, Outreach, Incentives, Marketing
3C. Community Coordination
Total
%
Overall
39%
10%
10%
23%
18%
100%
Gross Benefit
Per County
$ 428,571.43
$ 107,142.86
$ 115,000.00
$ 258,750.00
$ 201,250.00
$ 1,110,714.29
Net Benefit
Per County
-
-
$ 115,000.00
$ 258,750.00
$ 201,250.00
$ 575,000.00
Grant Development Team:
• County of Sacramento—Lead Agency (Applicant), will oversee grant writing,
provide final edits and required signatures, and submit finalized proposal on
behalf of entire collaborative team based on the approved proposed program
scope and budget framework
• Ecology Action—Partner Grant Writer (Lead on Marketing), will develop
narrative based on proposed program scope and budget framework, especially as
it pertains to local coordination and marketing project administration,
marketing/contract technical assistance, regional coordination, and marketing, to
meet all grant requirements and maximize proposal competiveness.
• Renewable Funding—Partner Grant Writer (Lead on Finance), will develop
narrative based on proposed program scope and budget framework, especially for
CaliforniaFIRST Program finance-related program elements, to meet all grant
requirements and maximize proposal competiveness.
CaliforniaFIRST Program Set-up Fees
Cost Allocation Table
Per City or
County
Population
Legal and
Validation
Process
Technology
Set-up
Total
Level 1
Under 20 K
$ 7,500
$ 2,500
$10,000
Level 2
21K-75K
$ 7,500
$ 5,000
$12,500
Level 3
76K-200K
$ 7,500
$ 7,500
$15,000
Level 4
201K-500K
$ 7,500
$12,500
$20,000
Level 5
Over 500 K
$ 7,500
$17,500
$25,000
* For the purposes of this calculation, it is the population of a county's unincorporated area
that determines the CaliforniaFIRST set-up fee for the county.
Kira Linberg
From :
Sent:
To:
Subject:
Barbara Hamilton [barbaraaeco-stream.com]
Tuesday, February 23,201 0 3:11 PM
Council Internet Email
CaliforniaFIRST Program
Barbara Hamilton
2335 Pio Pico Drive
Carlsbad Ca 92008
Chair of the Carlsbad Chamber of Commerce Sustainability Committee
Owner of local business, Eco-Stream - Sustainability Consulting
I am in support of the CaliforniaFIRST program to assist home owners in the City of Carlsbad to finance energy
and water efficiency, and alternative energy upgrades. This seems in alignment with the stated City Goals of
energy independence and citizen empowerment.
The city of Carlsbad has been and will continue to be a leader in regard to progressive sustainability efforts with
this initiative. This program allows us to assist homeowners in financing these upgrades without liability for the
City.
It has typically been the early adopter, or the well-endowed, who have been able to take advantage of the
benefits of energy and water efficiency technologies, and alternative energy. This program is the opportunity to
allow any property owner to also take advantage of these savings and benefit the community also, as they
themselves create a lesser demand on expensive energy and water delivery infrastructure.
Thank you for your support,
Barbara Hamilton
LEED Green Associate
Eco-Stveam
WMIW,. eco-stream. coin
Lirz ked In
PROOF OF PUBLICATION
(2010 & 2011 C.C.P.)
This space is for the County Clerk's Filing Stamp
STATE OF CALIFORNIA
County of San Diego
I am a citizen of the United States and a resident of
the County aforesaid: I am over the age of eighteen
years and not a party to or interested in the above-
entitled matter. I am the principal clerk of the printer
of
Proof of Publication of
North County Times
Formerly known as the Blade-Citizen and The Times-
Advocate and which newspapers have been
adjudicated newspapers of general circulation by the
Superior Court of the County of San Diego, State of
California, for the City of Oceanside and the City of
Escondido, Court Decree number 171349, for the
County of San Diego, that the notice of which the
annexed is a printed copy (set in type not smaller than
nonpariel), has been published in each regular and
entire issue of said newspaper and not in any
supplement thereof on the following dates, to-wit:
NOTICE OF PUBLIC HEARING
APPROVAL TO JOIN THE CALIFORNIA FIRST PROGRAM TO
FINANCE RENEWABLE ENERGY SOURCES. ENERGY
EFICIENCY AND WATER EFFICIENCY IMPROVEMENTS
NOTICE IS HEREBY GIVEN that the City Council of the City of Carlsbad will
hold a public hearing at the Council Chambers, 1200 Carlsbad Village Drive,
Carlsbad, California, at 6:00 p.m. on Tuesday, February 23, 2010 to consider
approving a resolution authorizing the City to join a' statewide municipal financ-
ing program entitled "CaliforniaFIRST Pilot Phase, Collaborative Partnership",
commonly referred to as the "CaliforniaFIRST Program", authorizing the Cali-
fornia Statewide Communities Development Authority to accept applications
from property owners and to conduct contractual assessment proceedings and
levy contractual assessments within the jurisdiction of the City of Carlsbad and
authorizing related actions.The CaliforniaFIRST Program will allow property owners to voluntarily enter
into financing contract to pay for private renewable energy resources, energy
efficiency and water conservation improvements that are repaid as an assess-
ment item on the requesting owner's property tax bill. The contractual assess-
ments cannot be used to finance purchase or installation of appliances that are
not permanently affixed to the property. If the property owner chooses to par-
ticipate, the improvements will be financed by the issuance of bonds by
California Communities. California Communities will levy "contractual assess-
ments" on the owner's property to repay the portion of the bonds issued to
finance the improvements on the property. California Communities has select-
ed Renewable Funding LLC and RBC Capital Markets to provide administra-
tion and financing for the program.
Applicant: City of Carlsbad
CARLSBAD CITY COUNCIL NCT 2249003 • 02/17/2010
February 17th, 2010
I certify (or declare) under penalty of perjury that the
foregoing is true and correct.
Dated at Escondido, California
On thjs 17th, day of FebryafyTZOlO
Jane Allshouse
NORTH COUNTY TIMES
Legal Advertising
NOTICE OF PUBLIC HEARING
APPROVAL TO JOIN THE CALIFORNIAFIRST PROGRAM TO FINANCE RENEWABLE
ENERGY SOURCES. ENERGY EFICIENCY AND WATER EFFICIENCY IMPROVEMENTS
NOTICE IS HEREBY GIVEN that the City Council of the City of Carlsbad will hold a public hearing
at the Council Chambers, 1200 Carlsbad Village Drive, Carlsbad, California, at 6:00 p.m. on
Tuesday, February 23, 2010 to consider approving a resolution authorizing the City to join a
statewide municipal financing program entitled "CaliforniaFIRST Pilot Phase, Collaborative
Partnership", commonly referred to as the "CaliforniaFIRST Program", authorizing the California
Statewide Communities Development Authority to accept applications from property owners
and to conduct contractual assessment proceedings and levy contractual assessments within
the jurisdiction of the City of Carlsbad and authorizing related actions.
The CaliforniaFIRST Program will allow property owners to voluntarily enter into financing
contract to pay for private renewable energy resources, energy efficiency and water
conservation improvements that are repaid as an assessment item on the requesting owner's
property tax bill. The contractual assessments cannot be used to finance purchase or
installation of appliances that are not permanently affixed to the property. If the property
owner chooses to participate, the improvements will be financed by the issuance of bonds by
California Communities. California Communities will levy "contractual assessments" on the
owner's property to repay the portion of the bonds issued to finance the improvements on the
property. California Communities has selected Renewable Funding LLC and RBC Capital Markets
to provide administration and financing for the program.
Applicant: City of Carlsbad
CARLSBAD CITY COUNCIL
PUBLISH DATE: February 17, 2010
CaliforniaFIRST
David Hauser
Property and Environmental Management
CaliforniaFIRST What is it?
Financing Program
Funds clean energy
improvements
Available to private
property owners
Loans repaid through
contractual property
assessments
•Renewable energy resources
•Energy efficiency improvements
•Water conservation improvements
•Residential
•Commercial
•Industrial
•Passed through to new
owners upon sale of
property
2006 -California Global Warming Solutions Act
Reduce greenhouse gas to 1990 levels by 2020
2008 -Clean Energy Financing Districts
Distributed renewable energy sources
Energy efficiency improvements
2009 -Funds water efficiency improvements
CaliforniaFIRST Background
League of California Cities &
California State Association of Counties
California Communities
Joint Powers Authority
Statewide
Energy improvements
assessment program
CaliforniaFIRST Background
CaliforniaFIRST Basics
Property owner
repays bond
through property
tax bill
(up to 20 years)
Bonds issued
and proceeds
used to pay for
energy project
Property
owners
voluntarily
sign-up for
financing and
install energy
projects
California
Communities
creates land-
secured
financing district
CaliforniaFIRST Key Benefits
Helps meet
energy and
climate goals
Promotes
local jobs
Tax neutral and
no exposure to
General Fund
Solar electric and water
Dual-pane windows
Insulation
Tankless water heaters
Heating and air conditioners
CaliforniaFIRST Eligible Improvements
CaliforniaFIRST Homeowner Savings
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Year 1 Year 5 Year 10 Year 15 Year 20 Year 25
Annual Net Cumulative
Annual Net Cumulative
Annual Net Cumulative Savings From 1.2 kW PV System with EE Upgrade*
* Based on the standard net-meter rate in PG&E territory and a monthly energy bill of $150
Minimum $5,000 and Maximum $75,000
Repayment period -10, 15 or 20 years
Application Fee –no more than $300
Interest rate –approximately 7.5%
Agree to “contractual assessments”
For solar electric projects
Energy audit
Must achieve 10% energy reduction
CaliforniaFIRST Loan Details
No involuntary liens
Loan to value 80% or less
Project to loan value 10% or less
Current in all property taxes past 3 years
No notices of default or foreclosure within 5 years
CaliforniaFIRST Property Qualifications
CaliforniaFIRST Team
Sponsor -CSCDA California Communities
•Joint Powers Authority formed in 1988
•500 members -cities, counties, and special districts
•Authority to issue bonds
Program Administrator -Renewable Funding
•Experienced in administering clean energy financing programs
•Provide turnkey solutions to implement programs
•Manages loan applications and marketing
Bond Underwriter -Royal Bank of Canada Capital Markets
•Experienced with municipal bonds market
•Volume of more than $100 billion since 2004
•Issues bonds
CaliforniaFIRST Formation Process
PROGRAM FORMATION
Formation of the district
Legal validation
Bond indenture
Bond, disclosure and issuer’s counsel
CaliforniaFIRST Local Responsibility
IDENTIFY A LOCAL
POINT OF CONTACT
Update meetings
Coordinate with
local cities
LOCAL CUSTOMER
SERVICE
Questions from
local residents
OPTIONAL
Develop additional
local marketing
and outreach
Develop and
maintain
additional policies
New cities join prior to pilot launch
Public Notice
Staff Report
Resolution to Join
Assessment District Formation –Spring 2010
Pilot scheduled to launch -Summer 2010
CaliforniaFIRST Timeline
Adopt Resolution No. 2010-036 authorizing the City to
join the CaliforniaFIRST Program, authorizing the
California Statewide Communities Development
Authority to accept applications from property owners
and to conduct contractual assessment proceedings and
levy contractual assessments within jurisdiction of the
City of Carlsbad, and authorizing related actions
Adopt Resolution No. 2010-037 authorizing Sacramento
County to apply for State Energy Program funds to
support the CaliforniaFIRST Program
CaliforniaFIRST Tonight’s Action