HomeMy WebLinkAbout2013-12-03; City Council; 21454; Approval Enterprise Development Figtree ProgramCITY OF CARLSBAD - AGENDA BILL 16
AB#
MTG.
DEPT.
21.454
11/19/13
PW-PEM
APPROVAL TO BECOME AN ASSOCIATE
MEMBER OF THE CAUFORNIA ENTERPRISE
DEVELOPMENT AUTHORITY AND JOIN THE
FIGTREE PROPERTY ASSESSED CLEAN ENERGY
PROGRAM
DEPT.DIRECTOR
CITY ATTY.
CITY MGR.
RECOMMENDED ACTON:
Adopt Resolution No. 2013-283 approving Associate membership by the City of Carisbad in the
California Enterprise Development Authority ("Authority") and authorizing and directing execution of an
Associate Membership Agreement related to Associate membership ofthe city in the Authority.
Adopt Resolution No. 2013-284 consenting to the inclusion of the properties within the
incorporated area ofthe city in the San Diego County Property Assessed Clean Energy Program to finance
distributed generation renewable energy sources and energy and water efficiency improvements and
approving the report setting forth the parameters of referenced program and certain matters in
connection therewith.
ITEM EXPLANATION:
Chapter 29 of Division 7 ofthe 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 generation energy sources, energy efficiency and water efficiency
improvements ("efficiency improvements") that are permanently fixed to the property owner's
residential, commercial, industrial or other real property ("energy financing program"). Because these
energy financing programs are repaid through the property's tax bill, the programs are known as
Property Assessed Clean Energy or "PACE" programs.
PACE programs can provide benefits to property owners, the city and the community. Through PACE, a
property owner can finance renewable energy projects, like solar power, and efficiency improvements
without significant upfront capital expenditures and with immediate savings from reduced energy and/or
water use. Also, the PACE assessment runs with the property thereby alleviating the property owner
from paying the remaining balance upon sale and transfer of the property. The city benefits by having a
third party administer a financing program that facilitates the provision of cost effective energy efficiency
and alternative energy projects for its residents and businesses. The community can benefit because the
facilitation of financing for such projects can stimulate the market, growing job opportunities in the
construction sector and increasing property values.
DEPARTMENT CONTACT: Michael Grim 760-602-4623 Mlke.Grim@carlsbadca.gov
EOR CLERK USE.
COUNCIL AaiON: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER- SEE MINUTES •
AMENDED • REPORT RECEIVED •
The City Council acknowledged these potential benefits when, on February 23, 2010, it voted to join the
California FIRST PACE program, authorized through the California Communities Joint Powers Authority
and administered by Renewable Funding LLC. This action made PACE financing available for non-
residential properties within Carisbad.
Since 2010, other PACE programs have become available in the San Diego Region; one of those programs
is Figtree PACE, a program that offers PACE financing for both residential and non-residential properties.
Figtree PACE is authorized through the California Enterprise Development Authority (CEDA) and
administered by FigTREE Energy Financing, a for-profit corporation based in San Diego. The San Diego
County Board of Supervisors joined the Figtree PACE program on August 6, 2013 and, on September 12,
2013, the CEDA Board of Directors passed a resolution ordering the implementation ofthe PACE program
for the County of San Diego. These actions made it possible for cities within San Diego County, including
Carisbad, to opt-in to the Figtree PACE program.
In order to increase the PACE financing options available for non-residential properties and provide PACE
financing opportunities to residential properties, staff is recommending that the City Council join the
Figtree PACE program.
FISCAL IMPAa:
There are no fiscal impacts to the city due to joining the Figtree PACE Program. There are no upfront or
ongoing costs involved in being an Associate Member of CEDA and no costs to the city for the PACE
program inception or operation. The staffs ofthe CEDA and the Figtree PACE Program administrator,
FigTREE Energy Financing, are responsible forthe conduct ofthe assessment proceedings, levy and
collection of assessments including any remedial action in case of property owner delinquency, sale and
administration of any bonds, and PACE program administration, marketing, and customer service. The
city may elect to assist with marketing the program and can report back to the City Council on program
progress; however staff time associated with these activities is negligible.
ENVIRONMENTAL IMPACT
Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the
meaning of the California Environmental Quality Act (CEQA) in that it does not cause either a direct
physical change in the environmental, or a reasonably foreseeable indirect physical change in the
environment, and therefore does not require environmental review.
EXHIBITS:
1. Resolution No. 2013-283 approving Associate membership by the City of Carisbad in the
California Enterprise Development Authority and authorizing and directing execution of an Associate
Membership Agreement related to Associate membership of the city in the authority.
2. Resolution No. 2013-284 consenting to the inclusion ofthe properties within the
incorporated area ofthe city in the San Diego County Property Assessed Clean Energy Program to
finance distributed generation renewable energy sources and energy and water efficiency
improvements and approving the report setting forth the parameters of referenced program and
certain matters in connection therewith.
^xhiW+i-
1 RESOLUTION NO. 7013-283
3
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CAUFORNIA, APPROVING ASSOCIATE MEMBERSHIP BY THE CITY
OF CARLSBAD IN THE CAUFORNIA ENTERPRISE DEVELOPMENT
4 AUTHORITY AND AUTHORIZING AND DIRECTING EXECUTION OF
AN ASSOCIATE MEMBERSHIP AGREEMENT RELATED TO
5 ASSOCIATE MEMBERSHIP OF THE CITY IN THE AUTHORITY.
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WHEREAS, the City of Carisbad, California (the "City"), a municipal corporation, duly
organized and existing underthe Constitution and laws ofthe State of California; and
WHEREAS, the City, upon authorization of the City Council, may pursuant to Chapter 5
of Division 7 of Title 1 of the Government Code of the State of California, commencing with
11 Section 6500 (the "JPA Law") enter into a joint exercise of power agreement with one or more
12 other public agencies pursuant to which such contracting parties may jointly exercise power
common to them; and
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WHEREAS, the City and other public agencies wish to jointly participate in economic
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development financing programs for the benefit of businesses and nonprofit entities within
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their jurisdictions offered by membership in the California Enterprise Development Authority
18 (the "Authority") pursuant to an associate membership agreement and Joint Exercise of Powers
1^ Agreement Relating to the California Enterprise Development Authority (the "Agreement"); and
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WHEREAS, under the JPA Law and the Agreement, the Authority is a public entity
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separate and apart from the parties to the Agreement and the debts, liabilities and obligations
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of the Authority will not be the debts, liabilities or obligations of the City or the other members
24 ofthe Authority; and
25 WHEREAS, the form of Associate Membership Agreement (the "Associate Membership
Agreement") between the City and the Authority is attached hereto as Exhibit "A"; and
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1 WHEREAS, the City is willing to become an Associate Member of the Authority subject
^ to the provisions of the Associate Membership Agreement.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carisbad,
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California, as follows that:
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^ 1. The above recitations are true and correct.
7 2. The City Council hereby specifically finds and declares that the actions
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authorized herein constitute public affairs of the City.
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The Associate Membership Agreement presented to this meeting and on file
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^ ^ with the City Clerk is hereby approved. The Mayor of the City, the City Manager, the
j2 City Clerk and other officials ofthe City are each hereby authorized and directed, for
13 and on behalf of the City, to execute and deliver the Associate Membership
1^ Agreement in substantially said form, with such changes therein as such officer may
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19 and severally, to do any and all things and to execute and deliver any and all
20 documents which they may deem necessary or advisable in order to consummate,
carry out, give effect to and comply with the terms and intent ofthis resolution and
the Associate Membership Agreement. All such actions heretofore taken by such
officers and officials are hereby confirmed, ratified and approved.
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require or approve, such approval to be conclusively evidenced by the execution and
delivery thereof.
The officers and officials of the City are hereby authorized and directed, jointly
PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 3'^'^ day of December 2013, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Blackburn, Douglas.
None.
ABSENT: None.
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f u
MATT HALL, IVIayor
ATTEST:
B/\RP/QkRA ENGLESON/Sity Clerk
5: O =
EXHIBIT "A"
ASSOCIATE MEMBERSHIP AGREEMENT
by and between the
CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY
and the
CITY OF CARLSBAD, CALIFORNIA
THIS ASSOCIATE MEMBERSHIP AGREEMENT (this "Associate Membership
Agreement"), dated as of by and between CALIFORNIA
ENTERPRISE DEVELOPMENT AUTHORITY (the "Authority") and the CITY OF
CARLSBAD, CALIFORNIA, a municipal corporation, duly organized and existing under the
laws ofthe State ofCalifornia (the "City");
WITNESSETH:
WHEREAS, the Cities of Selma, Lancaster and Eureka (individually, a "Member" and
collectively, the "Members"), have entered into a Joint Powers Agreement, dated as of June 1,
2006 (the "Agreement"), establishing the Authority and prescribing its purposes and powers; and
WHEREAS, the Agreement designates the Executive Committee of the Board of
Directors and the President of the California Association for Local Economic Development as
the initial Board of Directors of the Authority; and
WHEREAS, the Authority has been formed for the purpose, among others, to assist for
profit and nonprofit corporations and other entities to obtain financing for projects and purposes
serving the public interest; and
WHEREAS, the Agreement permits any other local agency in the State of Califomia to
join the Authority as an associate member (an "Associate Member"); and
WHEREAS, the City desires to become an Associate Member of the Authority;
WHEREAS, City Council of the City has adopted a resolution approving the Associate
Membership Agreement and the execution and deliveiy thereof;
WHEREAS, the Board of Directors of the Authority has determined that the City should
become an Associate Member ofthe Authority;
4833-7301-9141.1
NOW, THEREFORE, in consideration of the above premises and of the mutual
promises herein contained, the Authority and the City do hereby agree as follows:
Section 1. Associate Member Status. The City is hereby made an Associate Member of
the Authority for all purposes of the Agreement and the Bylaws of the Authority, the provisions
of which are hereby incorporated herein by reference. From and after the date of execution and
delivery of this Associate Membership Agreement by the City and the Authority, the City shall
be and remain an Associate Member of the Authority.
Section 2. Restrictions and Rights of Associate Members. The City shall not have the
right, as an Associate Member of the Authority, to vote on any action taken by the Board of
Directors or by the Voting Members of the Authority. In addition, no officer, employee or
representative of the City shall have any right to become an officer or director of the Authority
by virtue of the City being an Associate Member of the Authority.
Section 3. Effect of Prior Authority Actions. The City hereby agrees to be subject to and
bound by all actions previously taken by the Members and the Board of Directors of the
Authority to the same extent as the Members of the Authority are subject to and bound by such
actions.
Section 4. No Obligations of Associate Members. The debts, liabilities and obligations
of the Authority shall not be the debts, liabilities and obligations ofthe City.
Sections. Execution of the Agreement. Execution of this Associate Membership
Agreement and the Agreement shall satisfy the requirements of the Agreement and Article XII of
the Bylaws of the Authority for participation by the City in all programs and other undertakings
of the Authority.
4833-7301-9141.1
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IN WITNESS WHEREOF, the parties hereto have caused this Associate Membership
Agreement to be executed and attested by their proper officers thereunto duly authorized, on the
day and year first set forth above.
CALIFORNIA ENTERPRISE
DEVELOPMENT AUTHORITY
By:
Gurbax Sahota, Chair
Board of Directors
Attest:
Michelle Stephens, Asst. Secretary
CITY OF CARLSBAD, CALIFORNIA
By:
Matt Hall, Mayor
City Council
Attest:
7 A
City Clerk
4833-7301-9141.1
Exhibit A
1 RESOLUTION NO. 2013-284
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CAUFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN
THE INCORPORATED AREA OF THE CITY IN THE SAN DIEGO
4 COUNTY PROPERTY ASSESSED CLEAN ENERGY PROGRAM TO
FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY
5 SOURCES AND ENERGY AND WATER EFFICIENCY IMPROVEMENTS,
APPROVING THE REPORT SETTING FORTH THE PARAMETERS OF
^ THE REFERENCED PROGRAM AND CERTAIN MATTERS IN
7 CONNECTION THEREWITH.
8 WHEREAS, the California Enterprise Development Authority ("CEDA") is a joint exercise
^ of powers authority, comprised of cities and counties in the State of California, including the
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City of Carisbad (the "City"); and
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WHEREAS, CEDA has adopted the Figtree Property Assessed Clean Energy (PACE) and
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Job Creation Program (the "Program" or "Figtree PACE"), to allow the financing of certain
14 renewable energy, energy efficiency and water efficiency improvements (the "Improvements")
15 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 or other evidences of
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indebtedness (the "Bonds") under the Improvement Bond Act of 1915 (Streets and Highways
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Code Sections 8500 et seq.) (the "1915 Act") upon the security of the unpaid contractual
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2Q assessments; and
21 WHEREAS, Chapter 29 provides that assessments may be levied under its provisions only
22 with the free and willing consent ofthe owner of each lot or parcel on which an assessment is
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levied at the time the assessment is levied; and
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WHEREAS, the Board of Supervisors (the "Board of Supervisors") of the County of San
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Diego, a political subdivision ofthe State ofCalifornia (the "County"), has adopted Figtree PACE
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2q pursuant to the Act; and
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1 WHEREAS, the parameters of Figtree PACE are set forth in the Program Report and such
^ Report has been prepared pursuant to Section 5898.22 of the Act and approved by the CEDA
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Board of Directors; and
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WHEREAS, the City Council ofthe City of Carisbad (the "City Council") has reviewed the
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, Report, attached hereto as Exhibit "A"; and 6
7 WHEREAS, the Act authorizes CEDA to enter into contractual assessments with property
8 owners located within incorporated cities in the County of San Diego upon the approval of the
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legislative body ofthe related city to participate in Figtree PACE; and
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WHEREAS, the City of Carlsbad (the "City") desires to participate with the County in
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Figtree PACE, and provide for participation in Figtree PACE by property owners located within
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City limits; and
14 WHEREAS, pursuant to Chapter 29, the City authorizes CEDA to levy assessments,
15 pursue remedies in the event of delinquencies, and issue bonds or other forms of indebtedness
to finance the Improvements in connection with Figtree PACE; and
WHEREAS, to protect the City in connection with operation ofthe Figtree PACE, Figtree
Energy Financing, the program administrator, has agreed to defend and indemnify the City; and
WHEREAS, the City will not be responsible for the levy of assessments, any required
21 remedial action in the case of delinquencies, the issuance, sale or administration of the bonds
22 or other indebtedness issued in connection with Figtree PACE.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carisbad,
California, as follows that:
1. The above recitations are true and correct.
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CEDA in good standing.
On the date hereof, the City Council hereby finds and determines that the
Program and issuance of Bonds by CEDA in connection with Figtree PACE will
1 2. The City is either a municipal corporation or other public body and a member of
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^ provide significant public benefits, including without limitation, savings in effective
7 interest rates, bond preparation, bond underwriting and bond issuance costs and
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reductions in effective user charges levied by water and electricity providers within
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the boundaries ofthe City.
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The City Council ratifies the resolution adopted by the CEDA Board of Directors
12 on September 12, 2013 declaring the Board's intention to order the implementation
13 of a contractual assessment program to finance Improvements pursuant to the Act.
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within City limits ofthe energy and water efficiency measures set forth in the Report
19 upon the request and agreement of the affected property owner, and the
20 assumption of jurisdiction thereof by CEDA for the aforesaid purposes. The
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adoption of this Resolution by this City Council constitutes the approval by the City
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to participate in Figtree PACE. This City Council further authorizes CEDA to set the
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terms of, and implement, Figtree PACE and take each and every action necessary or
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25 desirable for financing the Improvements, including the levying, collecting and
26 enforcement of the contractual assessments to finance the Improvements and the
5. The City Council hereby approves the inclusion in Figtree PACE all of the
properties in the incorporated area within the City, as same may be amended
through annexation from time to time, the acquisition, construction and installation
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1 issuance of bonds, notes or other forms of indebtedness secured by such contractual
^ assessments as authorized by Chapter 29.
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6. The City hereby appoints CEDA as its representative to (i) record the assessment
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^ against the Participating Parcels, (ii) administer the District in accordance with the
^ Improvement Act of 1915 (Chapter 29 Part 1 of Division 10 of the California Streets
7 and Highways Code (commencing with Section 8500 et seq.) (the "Law"), (iii)
^ prepare program guidelines for the operations of the Program and (iv) proceed with
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any claims, proceedings or legal actions as shall be necessary to collect past due
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assessments on the properties within the District in accordance with the Law and
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Section 6509.6 of the California Government Code. The City is not and will not be
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13 deemed to be an agent of Figtree or CEDA as a result of this Resolution.
14 7. The City Council hereby acknowledges that pursuant to the requirements of
Chapter 29, CEDA has prepared and will update from time to time the "Program
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Report" for Figtree PACE (the "Program Report") and associated documents, and
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CEDA will undertake assessment proceedings and the financing of Improvements as
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set forth in the Program Report.
20 8. The City Council hereby acknowledges that the Law permits foreclosure in the
event that there is a default in the payment of assessments due on a property. The
City Council hereby designates CEDA as its representative to proceed with collection
and foreclosure ofthe liens on the defaulting properties within the District, including
accelerated foreclosure pursuant to the Program Report.
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indemnification for negligence or malfeasance of any type as a result of the acts or
omissions of Figtree, its officers, employees, subcontractors and agents, arising from
or related to negligent performance by Figtree of the work required under the
1 9. The City Council acknowledges that Figtree has provided CEDA with an
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^ agreement between Figtree and CEDA. Figtree, on behalf of itself and CEDA, agrees
7 to defend, indemnify, and hold harmless the City, its officers, agents, employees and
^ attorneys from and against any and all liabilities, claims, or demands arising or
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alleged to arise as a result of CEDA or Figtree's performance or failure to perform
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under this Agreement or the Program, except that arising from the sole negligence
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or willful misconduct ofthe City.
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13 10. The appropriate officials and staff of the City are hereby authorized and directed
14 to make applications for Figtree PACE available to all property owners who wish to
finance Improvements. The following staff persons, together with any other staff
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designated by the City Manager from time to time, are hereby designated as the
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contact persons for CEDA in connection with Figtree PACE: Conrad "Skip" Hammann,
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Jr., Public Works Director, 760-602-2400, skip.hammann(5)carlsbadca.gov. The City
20 Clerk is directed to provide a certified copy of this Resolution to Figtree Energy
21 Financing Company
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26 Report to implement Figtree PACE for Participating Property Owners.
11. 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
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12. The City Council hereby finds that adoption ofthis 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)).
13. 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
Figtree Energy Financing Company.
14. Services related to the formation and administration ofthe assessment district
will be provided by CEDA at no cost to the City.
IH
PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 3'^'^ day of December 2013, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Blackburn, Douglas.
None.
ABSENT: None.
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MATT HALL, Mayor
ATTEST:
BA«BA(^A ENGLESON,^ity Clerk
O;
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
I, Barbara Engleson, City Clerk of the City of Carlsbad, County of San DIego, State of
California, hereby certify that I have compared the foregoing copy with the original
RESOLUTION NO. 2013-284. CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE
INCORPORATED AREA OF THE CITY IN THE SAN DIEGO COUNTY PROPERTY ASSESSED CLEAN
ENERGY PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES
AND ENERGY AND WATER EFFICIENCY IMPROVEMENTS. APPROVING THE REPORT SETTING
FORTH THE PARAMETERS OF THE REFERENCED PROGRAM AND CERTAIN MATTERS IN
CONNECTION THEREWITH, with the original now on file in the Office ofthe City Clerk of
the City of Carisbad; that the same contains a full, true and correct transcript therefrom
and of the whole thereof.
Witness my hand and the seal of said City of Carlsbad, this 6th day of December,
2013.
fi ENGLESON, Cnp:LERK
FIGTREE
PACE
Program Report
Revised: September 27,2013
lo
CONTENTS
L Introduction 1
A. Parties Identified in this Report 2
1. Issuing Agency: CEDA 2
2. Program Administrator: FIGTREE Company, Inc. ("FIGTREE") 2
3. Bond Administrator: Willdan Financial Services ("Willdan") 2
B. Participating Agencies Included in this Program Report 2
C. Background 3
D. Program Goals 3
E. Program Benefits 3
F. Program Administration 4
G. Financing Plans 4
H. Geographic Parameters 4
I. Changes to Report 5
II. Program Requirements for Participation in Commercial Financing 5
A. Eligible Property Owners and Property Classifications 5
B. Eligible Improvements 6
C. Eligible Costs 6
D. Administrative Costs 7
E. Application Process 8
III. Program Plan for Commercial PACE Financing 10
IV. Program Requirements for Participation in Residential Financing 11
A. Eligible Property Owners and Property Classifications 11
B. Eligible Improvements 11
C. Eligible Costs 12
D. Administrative Costs 12
E. Application Process 13
V. Program Plan for Residential PACE Financing 15
VI. Program Requirements for Participating Contractors 16
A. Eligible Contractors 16
VII. Appeals 16
VIII. Program and Financing Disclosures 17
A. Financing Amount and Terms - Commercial Properties 17
4829-6142-0561.1
1. Minimum Assessment Financing Amount 17
2. Maximum Assessment Financing Amount 17
3. Financing Term 18
B. Financing Amount and Terms - Residential Properties 18
1. Minimum Assessment Financing Amoimt 18
2. Maximum Assessment Financing Amount 18
3. Financing Term 18
C. Maximum Portfolio 19
D. Reserve/ Last Payment Collection 19
E. Priority of Funding 19
F. Accelerated Foreclosure 19
G. Prepayment 19
H. Assessment Interest Rate 20
IX. Exhibits 20
4829-6142-0561.1
1^
I. INTRODUCTION
This report ("Program Report") has been prepared in compliance with Section 5898.22 and 5898.23 of
Chapter 29 of the Califomia Streets and Highways Code in connection with the development and
implementation of FIGTREE PACE (the "Program"), a Property Assessed Clean Energy ("PACE")
financing program, within the jurisdictions of Califomia cities and counties that are already members of
or those which are pending or will become members of the Califomia Enterprise Development Authority
("CEDA"), referred to as "Participating Agencies."
The FIGTREE PACE program, also knovm as the Califomia PACE Program, (both the "Program"), is a
local govemment initiative designed to unlock the multibillion dollar economic stimulus of energy
efficiency. The Program gives Califomia Property Owners (defmed as owners of record of commercial
and/or residential property(ies)) access to upfront financing for energy efficiency, renewable energy, and
water conservation property improvement projects which create local jobs, encourage sustainable building
practices, and help municipalities reach climate protection goals - all without relying on public funds.
The Program is offered by the Califomia Enterprise Development Authority ("CEDA"), a joint powers
authority established by the Califomia Association for Local Economic Development ("CALED"), which
has retained FIGTREE Company, Inc. ("FIGTREE") as the Program Administrator. The Program is
established pursuant to Califomia Assembly Bill 811, adopted in 2008, which provides for local agencies
to leverage the power of voluntary contractual assessments, as a financing mechanism, to finance property
improvements to promote the public purpose of energy and water resource efficiency.
This Program Report is the authoritative document for the Program and fulfills the Section 5898.22 and
5898.23 requirements and contains the following:
• Policies of CEDA conceming contractual assessments, which include the following:
o Authorized improvements for Program financing (See Exhibit C)
o Identification of the CEDA official authorized to enter into contractual assessments on
behalf of CEDA (See section LA)
o Maximum aggregate dollar amount of voluntary contractual assessments authorized
for the Program (See section VIII.C)
o Guidelines for prioritizing financing requests in the event that such requests may exceed
authorization amount (See section VIII.E)
o Underwriting criteria for Program eligibility (See section ILA and IV.A)
o Safeguards used to ensure total annual property tax and assessments on property will not
exceed 5% of property value per Califomia Code (See section VIII. A.2 and VIILB.2)
o Fundraising plan for capital to pay for work performed (See section LLI and W)
• Summary of discussions with the County Auditor/Controllers with jurisdiction over the
Participating Agencies as to the fees chargeable to Participating Agencies and/or Program
participants for incorporating voluntary contractual assessments into the property tax bills (See
section IID and IV. C)
• Maps showing the territory, with delineated boundaries, in which contractual assessments are
offered (See Exhibits A-1 through A-L7)
• Draft Assessment Contract between a Property Owner and CEDA specifying the terms and
conditions of the financing (See Exhibit B)
4829-6142-0561.1
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A. Parties Identified in this Report
Energy financing programs, such as FIGTREE PACE, are continually evolving with emerging financial
products and solutions. Because of the nature of the energy efficiency financing stmcture, the financing
team participants may vary throughout the life of the Program and additional financing participants may
be used at the discretion of FIGTREE and/or CEDA, as required.
l.Issuing Agency: CEDA
CEDA
550 Bercut Drive, Suite G
Sacramento, CA 95811
Phone: 916-448-8252
Web: ceda.caled.org
CEDA has authorized its Chairman to enter into contractual assessments on behalf of CEDA.
2.Program Administrator: FIGTREE Company, Inc. ("FIGTREE")
FIGTREE is a San Diego based company specializing in municipal and energy fmancial services.
B.Bond Administrator: Willdan Financial Services ("Willdan")
Willdan is a subsidiary of Willdan Group, Inc., a publicly traded company (NASDAQ: WLDN),
specializing in fmancial and economic consulting for growth plaiming, revenue generation, debt
administration and municipal services.
B. Participating Agencies Included in this Program Report
The cities and counties that have adopted the required resolutions authorizing CEDA to establish and
administer a PACE assessment district on their behalf (each a "Participating Agency," collectively
"Participating Agencies") are as follows:
City of South San Francisco - adopted February 22, 2012 (Resolution Nos. 15-2012, 16-2012)
City of Pittsburg - adopted March 5,2012 (Resolution No. 12-11786);
County of Kern - adopted March 13,2012 (Resolution No. 2012-033);
City of Dublin - adopted March 20,2012 (Resolution No. 36-12);
City of Redlands - adopted March 20,2012 (Resolution No. 7140);
City of Rancho Cordova - adopted April 16,2012 (Resolution No. 24-2012).
County of Alameda - adopted April 24,2012 (R-2012-135);
City of Elk Grove - adopted May 31,2012 (Resolution No. 12-24);
City of Yuba City - adopted August 16,2012 (Resolution No. 12-035);
City of Kingsburg - adopted August 16,2012 (Resolution No. 2012-31);
City of Clevis - adopted May 21,2012 (Resolution No. 12-28);
City of Fresno - adopted October 18,2012 (Resolution No. 2012-181);
City of San Diego - adopted October 23,2012 (Resolution No. R-307794);
City of Commerce - adopted November 20,2012 (Resolution No. 12-130);
City of Palm Springs - adopted December 19, 2012 (Resolution No. 23282);
County of Butte - adopted March 26, 2013 (Resolution No. 13-048);
City of Bakersfield - adopted April 17,2013 (Resolution No. 040-13);
City of San Marcos - adopted
City of Vista - adopted
City of Santee - adopted April 24,2013 (Resolution No. 029-2013)
4829-6142-0561.1 2
• City of Chico - adopted
• City of Oroville - adopted June 4,2013 (Resolution No. 8075)
C. Background
Assembly Bills 811 and 474 (the "Legislation") were approved by the Califomia Legislature and signed
into law by the Governor in 2008. Under these bills, the Califomia Legislature declared that a public
purpose is served by financing property improvement projects related to renewable energy, energy
efficiency, water conservation (collectively knovm as the "Authorized Improvements") through voluntary
contractual assessment programs. The Legislation applies to residential, commercial, industrial, and other
real property.
FIGTREE PACE was developed to provide Califomia cities and counties a turnkey, no-cost approach in
compliance with Assembly Bills 811 and 474. On December 15, 2011 CEDA approved the Program,
becoming the requisite public agency for assessment district formation. Subsequently, cities and counties
have opted to participate in the Program by joining CEDA and passing the requisite resolutions.
FIGTREE has supported, and continues to support, public agencies along the path to participation in the
Program. The FIGTREE PACE model has proved successful, with the initial round of project fimding
occurring in December 2011.
D. Program Goals
The primary goals for the Program are to create local jobs, stimulate local economies, and help cities and
counties meet energy and climate protection goals.
In terms of goals for the PACE category, the Program aims to create a financial lending product by which
PACE financing becomes a mainstream asset class with a high degree of standardization, predictability,
and scale, leading to decreased transaction costs for the benefit of Califomia Property Ovmers.
E. Program Benefits
FIGTREE PACE offers multiple benefits to each category of Program stakeholders: Cities and counties,
Property Owners, and contractors and vendors.
Participating Agencies may benefit from:
• Business attraction and retention
• Increased sales tax revenues
• Increased permit fee revenues
• Cleaner communities and improved property values
• Emissions reductions to comply with state mandates
For Property Owners, the Program offers:
• Opportunities to reduce utility costs through property improvements
• Enabling project capital for much-needed upgrades
• A no-money-dovm financing altemative
• Fixed-rates and longer terms than many conventional financings
For contractors and vendors, the Program offers:
4829-6142-0561.1 3
• Project-enabling financing to reach new and existing clients
• Marketing and outreach opportunities
• Development of sustainable business practices
• Increased revenues and profitability
F. Program Administration
The Program is sponsored by CEDA, which is authorized to form assessment districts on behalf of the
Participating Agencies and enter into Assessment Contracts with Property Owners. FIGTREE has been
retained by CEDA as the Program Administrator for all administrative, outreach, and funding activities of
the Program, including but not limited to:
Advising Participating Agencies on Program setup;
Community education and Marketing outreach;
Responding to Property Owner inquiries;
Approving contractors for Program participation;
Processing assessment financing applications (the "Application");
Bond administration and lien recordation;
Facilitating the distribution of fimds
G. Financing Plans
In order to provide financing that suits the economics of energy efficiency, renewable energy, and water
conservation projects, the Program has been designed to accommodate various sources and methods of
funding the Authorized Improvements.
Authorized Improvements may be funded through one or more of the following or any other legally
available method approved by the CEDA board:
• Issuance of municipal bonds: Issuing municipal bonds for either a single project or a pool of
projects.
• Free market sourcing: Facilitating the "open markef model by which a borrower can choose its
own PACE lender and CEDA may issue a micro bond or assign the Assessment Contract for the
benefit ofthe PACE lender.
• Warehouse Lending Facility: Utilizing warehouse or interim facility to fund PACE projects and
hold Assessment Contracts until a takeout through securitization or issuance of bonds.
H. Geographic Parameters
The Program is available to Property Owners within the legal jurisdiction of the Participating Agencies.
Both cities and counties may join the Program. When a county adopts the Program, the Program becomes
available to Property Owners in unincorporated areas and incorporated cities gain a simplified approach
to Program participation. A city within a participating county may opt-in to the Program by the city's
legislative body adopting a resolution requesting inclusion in the existing county Program. Pursuant to
such resolution to participate in the Program, the city will find and declare that the properties in the city's
incorporated area will benefit from participation. Furthermore, the city's resolution will authorize CEDA
to implement the Program, and take actions necessary for financing the Authorized Improvements. If the
city is not a member of CEDA, it must also adopt a resolution joining CEDA.
4829-6142-0561.1
I. Changes to Report
CEDA and/or FIGTREE may make changes to this Report that are reasonably determined to be necessary
to clarify its provisions, accomplish Program goals, and provide additional services that do not conflict
with any existing provisions.
CEDA and/or FIGTREE may modify from time to time the Authorized Improvements (Exhibit C), the
Assessment Contract (Exhibit B), and terms ofthe FIGTREE PACE Application (Exhibit D) as deemed
necessary. Participating Agencies may request modifications to the Program Report and CEDA may make
such modifications if deemed appropriate.
II. PROGRAM REQUIREMENTS FOR PARTICIPATION IN COMMERCIAL FINANCING
A. Eligible Property Owners and Property Classifications
FIGTREE PACE is designed to be a robust program that responsibly delivers assessment financing.
Program applicants (also "Property Ovmers") must meet a number of financial standards to qualify.
Property Owners may be individuals, associations, business entities, cooperatives, and virtually any
owner paying real property taxes. The PACE financing stmcture enables Property Owners to make no
personal guarantees, as the financing is secured by the Property (defined as the property which is the
subject of an Application). Therefore, FIGTREE PACE financing does not encumber Property Owner's
personal credit, making the Program a financially viable option for property owners large and small.
While the upper limit on the amount of financing available, as determined by the value of tiie Property, is
sufficient for most projects. Property Owners may use the Program as one layer of an overall financing
strategy to accommodate the largest of projects. Additionally, Property Ovmers are eligible to make
multiple Applications for additional energy and water efficiency measures, provided that the Applications
are within the scope of the underwriting criteria.
The underwriting criteria for qualifying Program participants include:
Applicant(s) is/are the legal owner(s) of the Property described in the Application
Property Ovmer is current on property taxes for the Property and has not been delinquent in the
past three (3) years or since owning the Property, if less than 3 years
Property Owner is current on private property debt and has not been delinquent in the past three
(3) years or since owning the Property, if less than 3 years
Mortgage lender(s) has/have been provided the Notice of Request for Lender Consent and
Acknowledgement
Property Owner has not declared bankmptcy in the past five (5) years
Property is not listed as an asset in bankmptcy
The lien-to-value ratio (excluding assessed financing amount) does not exceed one hundred
percent (i.e. no negative equity)
Property is developed and located within thejurisdiction of a Participating Agency
Property is classified as Commercial (including Industrial, multifamily, etc.)
4829-6142-0561.1
^3
Eligible Property Classifications
Commercial property is generally defined as any property not used as a single family or multifamily
residence (up to 4 units). Examples of commercial property include:
• Multi-Family Units (5 or more units) • Warehouse
• Manufacturing/Industrial • Hotel
• Office • Retail/Wholesale
• Shopping Centers • Restaurants
B. Eligible Improvements
The Program accommodates a wide range of energy and water savings measures, consistent with the
following provisions.
• Authorized Improvements must be permanently fixed to the Property.
• Program financing is provided only for portion of project costs associated with the Authorized
Improvements, that is, no costs of remodeling or new constmction are eligible for Program
financing (discussedfurther in section Ll. C).
• Program financing is intended for replacement of outdated equipment and installation of new
equipment that reduces energy and/or water consumption.
• Program financing is made available for the following types of Authorized Improvements:
o Energy efficiency
o Renewable energy
o Water conservation
o Alternative/ Custom Improvements
Note on Alternative/ Customer Improvements: Upon review and approval by FIGTREE, Program
financing is made available for emerging technologies for energy improvements that provide new ways to
save or generate energy. These improvements will be evaluated on a case-by-case basis.
For further examples of Authorized Improvements, see Exhibit C.
C. Eligible Costs
Eligible costs of Authorized Improvements include the cost of equipment and installation. Installation
costs may include, but are not limited to, labor, drafting, engineering, application fees, permit fees,
processing fees, energy audit, and inspection charges. Remodeling, repair, and/or new constmction costs
do not qualify for Program financing except to the extent such constmction is required for installation of a
qualifying Improvement. Such equipment may include solar leases where such leases meet requirements
of the PACE Program.
Property Owners are encouraged to obtain bids from multiple Eligible Contractors, as each transaction is
between the Property Owner and the Eligible Contractor. Neither FIGTREE nor CEDA nor a
Participating Agency makes representations of the quality of work provided by an Eligible Contractor.
Property Ovmers must protect their own interests and obtain the best price, service, and warranties. The
role of Participating Agencies is limited to authorizing a financing district. The Property Owner is fully
responsible for his or her purchase, service and performance expectations, and warranties.
4829-6142-0561.1
In each case, FIGTREE will determine whether the estimated equipment and installation costs are
reasonable. FIGTREE reserves the right to evaluate market conditions and, at its discretion, require
additional bids to determine whether costs are reasonable. While the Property Owner is encouraged to
select the bidder of his or her choice fi"om the list of Eligible Contractors, the amount available for
assessment financing may be limited to an amount deemed reasonable by FIGTREE.
In the event that (a) the acquisition, constmction and/or installation of the Improvements (including, but
not limited to commencing the permit process) has not commenced within 180 days of the issuance ofthe
financing for the Improvements, or (b) all or a portion of the proceeds ofthe financing are not utilized to
fund the Improvements witiiin two (2) years of the issuance of the financing, the remaining Improvements
shall not be funded under the Assessment Contract and the amount ofthe financing amount owing to the
Contractor shall not be tendered to the Contractor; and the Borrower shall be responsible for the unpaid
accrued interest, closing costs, related administrative costs and a special 5% termination fee relating to the
unfunded amount as of the settlement date.
D. Administrative Costs
Discussions with the appropriate Auditor/Controller's offices have been initiated. It is anticipated that
standard fees for placing special assessments on the tax roll will apply.
FIGTREE has been in consultation with the County Auditor-Controller of each Participating Agency
regarding any fees resulting from the incorporation of the contractual assessments into the general taxes
of the County on real property. Based on FIGTREE's current and ongoing discussions, fees will be in
accordance with the normal fees of each County Auditor-Controller for placing similar assessment
charges on the County tax roll for general property taxes. These fees will be collected directiy from
participating Property Owners through disclosed charges added to the Property Owner's annual levy
amount.
Administrative fees are recovered by the "spread" between bond rates and the Program financing interest
rate, and by an annual administrative charge added to the amiual assessment amount billed to each
Property Owner each year. Other than the fees below, the Property Ovmers will not be billed for any
additional charges or assessments.
The following costs will be the responsibility of the Property Owner:
• Application Fee: The fee is $495 per Commercial Application. A fee of $100 per parcel will
apply to properties on multiple contiguous parcels with the same occupancy use. The Application
Fee includes title verification and recordation of closing documents with the county in which the
Property is situated. The fee is borne by the Property Ovmer but reimbursable through the
Program financing. The Application Fee is non-refundable and appropriate disclosures are
provided and must be acknowledged before a Property Owner can submit payment.
• Financing Issuance Fee: At the time of closing, FIGTREE will charge you a one-time
administration fee of four percent (4%) of the principal amount of the assessment on the Property
to cover the additional transaction costs of the Program. This fee vrill be added to the total
assessment amount financed.
• County Tax Collector Fee: Administrative costs charged by the county will be added to the
annual assessment amount and will be paid by Property Owners. Currently the maximum is $40
per Property per year. The maximum may escalate 2% per year for increases in county fees.
4829-6142-0561.1
^5
• Annual Administrative Fee: A charge of 3% of the total annual assessment amount will apply
for cost recovery. This administrative cost recovery will be added to the annual assessment
amount. Such administrative charges include, but not limited to staff time. Participating Agency
staff time and expenses incurred in the formation and administration of the Program.
• Permit Fees: Property Owners must determine whether a permit(s) is/are required for the chosen
improvement measures. If required. Property Owners will be responsible to pay permit fees.
Permit fees are eligible for inclusion in the financing.
• Progress Draws: For large projects, progress draws or multiple disbursements may be available
to alleviate the burden of carrying costs. Progress draws are subject to a fee of $450 each.
E. Application Process
Step 1: Apply and Get Approved for Financing
To begin, the Property Owner must apply to FIGTREE for Program financing and be approved for
participation in the program based on qualification criteria. FIGTREE will verify Property ovmership and
existing liens by ordering a title report on the Property.
The Property Owner submits the Application together with its required attachments to FIGTREE online at
www.figtreecompany.com or by mail:
FIGTREE Energy Resource Company
Attention: PACE Program
9915 Mira Mesa Blvd., Suite 130
San Diego, CA 92131
Questions regarding the status of an Application should be directed to FIGTREE toll free at (877) 577-
7373.
FIGTREE determines whether each Application is complete and acceptable per Program guidelines.
Incomplete Applications will not be accepted. Applications will be processed on first-come, first-served
basis.
Step 2: Deflne the Scope of Work and Budget
Upon approval for participation, the Property Owner should defme the project's scope of work and obtain
a bid fi-om an Eligible Contractor(s) (defined as contractors meeting certain professional standards, as
further described in Section VI.A). FIGTREE maintains an online database of Eligible Contractors tiiat
are members of the Program at http://vyww.figtreecompanv.com/resources-contractors/. A description of
the scope of work and a copy of the bid(s) should be submitted to FIGTREE in order to determine the
amount of financing required and to verify that all proposed Authorized Improvements qualify under the
Program underwriting standards.
Step 3: Lender Consent
For mortgaged commercial properties. FIGTREE requires notification to the mortgage lender(s) to obtain
consent to the PACE assessment as described below. The PACE assessment is on par with property taxes
and therefore senior to any existing the mortgage lien. Because most mortgage contracts include a "due
on encumbrance" clause preventing a Property Owner fi-om voluntarily placing a lien in a senior position.
4829-6142-0561.1
FIGTREE has instituted the lender consent requirement to protect Property Ovmers from potential
violations of their mortgage contracts.
Once FIGTREE has determined an applicant's eligibility for financing and the amount of financing
required for the proposed project, FIGTREE will submit the proposed scope of work and budget to the
mortgage lender for approval. Property Ovmers and Eligible Contractors should allow approximately
three to four weeks for FIGTREE to obtain the mortgage lender's consent.
Lender consent to Prior Assessment Lien:
The Program provides for the holders of any private lien on the participating Property (the "Mortgage
Lenders") to receive notice of the pending contractual assessment and requests written lender consent that
the assessment lien will have the same priority as real property taxes. The Program's lender consent
process has been designed to protect the security interest of the Mortgage Lenders. The Program
Administrator will send notices requesting lender consent (the "Notice and Request for Lender Consent")
via certified mail to all Mortgage Lenders' names and addresses listed in the participating Property
Ovmer's Mortgage Loan Agreement, Promissory Note, Deed of Trust, and other Security Agreements as
applicable (collectively the "Mortgage Documents"), as described by a titie report obtained by FIGTREE.
The Notice and Request for Lender Consent ("Lender Consenf) requests (i) confirmation from the
Mortgage Lender that the levy of the assessment pursuant to the Assessment Contract will not trigger an
event of default or the exercise of remedies under the participating Property Ovmer's Mortgage
Documents; (ii) provides notice that the assessment will be secured by a statutory lien on the participating
Property pari passu with real property taxes; (iii) provides written notice of the proposed participation of
the Property in the Program; and confirms that the Mortgage Lenders' signature constitute consent as
required under the Mortgage Documents.
Lender failure to respond to the Lender Consent:
If the lender retums the Notice and Request for Lender Consent and specifically states it does not consent,
the Property Owner may not participate. If there is no written lender response received from the Mortgage
Lender vrithin 35 days after the postmarked date of the Lender Consent, (the "Lender Consent Period"),
based upon the language in the Lender Consent and subject to the disclosure provisions of the Application
and as otherwise required by FIGTREE, the participating Property Owner may request the Program
Administrator to proceed with the Property Ovmer's participation in the Program. The Program
Administrator will review such a request and may determine to proceed subject to additional disclosures
or documents required by FIGTREE.
Step 4: Execute Assessment Documents
Once the Scope of Work and Budget have been approved and Lender Consent has been obtained or
otherwise resolved (if Property is mortgaged), FIGTREE will provide the Property Owner with an
Assessment Contract to be signed notarized and retumed to FIGTREE. The Assessment Contract is an
agreement on the financing amount and terms and is executed between the Property Ovmer and CEDA.
Once the Assessment Contract is executed, a signed and notarized Notice of Assessment and Payment of
Assessment will be recorded with the county in which the Property is situated.
Step 5: Notice to Proceed
4829-6142-0561.1 9
^1
No work may begin until FIGTREE has issued a vwitten Notice to Proceed to both the Property Ovmer
and Eligible Contractor. The Notice to Proceed is an indication that the PACE assessment has been
recorded on the Property and funds are available for disbursement to the Eligible Contractor upon
satisfactory project completion. When the Notice to Proceed has been issued, the Eligible Contractor(s)
may begin to install the energy and water upgrade equipment.
NOTE: If any work or expenses related to the proposed Scope of Work are incurred by the Property
Owner or Eligible Contractor(s) before receiving a Notice to Proceed from FIGTREE, neither FIGTREE
nor CEDA nor the City/County is, or will be responsible to pay or reimburse the Eligible Contractor or
Property Owner for any direct or related expenses.
Step 6: Project Completion and Inspection
FIGTREE reserves the right to inspect projects for satisfactory completion. The Property Ovmer must
acknowledge that work has been done to his or her satisfaction before payment is issued to the Eligible
Contractor(s).
Step 7: Contractor Payment
Upon satisfactory completion of the project and certification of completion by the Eligible Contractor(s),
the bond trustee will issue a check to the Eligible Contractor(s) directiy.
III. PROGRAM PLAN FOR COMMERCIAL PACE FINANCING
FIGTREE has embraced a free market and flexible approach to solving the financial challenges associated
with capital-intensive energy projects. FIGTREE intends to raise capital for the Program through one or
more of the following financing arrangements or other legally available arrangement approved by CEDA:
• Issuance of municipal bonds: Issuing municipal bonds for either a single project or a pool of
projects.
• Free market sourcing: Facilitating the "open market" model by which a borrower can choose its
own PACE lender and CEDA may issue a micro bond or assign the Assessment Contract for the
benefit of the PACE lender.
• Warehouse Lending Facility: Utilizing warehouse or interim facility to fund PACE projects and
hold Assessment Contracts until a takeout through securitization or issuance of bonds.
Altemative financing options not listed above may also be pursued should such options benefit the
ongoing viability of the Program.
As the Program Administrator, FIGTREE will direct the Bond Administrator to place charges on each
participating Property Owner's tax bill for repayment each year the Program financing is outstanding.
In the event municipal bonds are sold, such bonds shall be a special, limited obligation of CEDA and, as
such, are not a debt of the Participating Agencies, the State of Califomia or any of its political
subdivisions (other than CEDA). None of Participating Agencies, the State or any of its political
subdivisions (other than CEDA) is liable for the payment thereof The bonds are special, limited
obligations of CEDA payable exclusively from the revenues (secured by assessment district liens on
Property of participating Property Owners), and amounts held in certain funds and accounts created
4829-6142-0561.1 10
pursuant to the bond indenture. The bonds will not be payable from any other revenues or other assets of
CEDA. CEDA does not have any taxing power. The bonds do not constitute indebtedness within the
meaning of any constitutional or statutory limitation or restriction.
rv. PROGRAM REQUIREMENTS FOR PARTICIPATION EN RESIDENTIAL FINANCING
A. Eligible Property Owners and Property Classifications
FIGTREE PACE is designed to be a robust program that responsibly delivers assessment fmancing.
Program applicants (also "Property Owners") must meet a number of financial standards to qualify.
Property Owners may be individuals, associations, business entities, cooperatives, and virtually any
owner paying real property taxes. The PACE financing stmcture enables Property Owners to make no
personal guarantees, as the financing is secured by the Property (defined as the property which is the
subject of an Application). Therefore, FIGTREE PACE financing does not encumber Property Owner's
personal credit, making the Program a financially viable option for property ovmers large and small.
While the upper limit on the amount of financing available, as determined by the value of the Property, is
sufficient for most projects. Property Ovmers may use the Program as one layer of an overall financing
strategy to accommodate the largest of projects. Additionally, Property Owners are eligible to make
multiple Applications for additional energy and water efficiency measures, provided that the Applications
are within the scope of the underwriting criteria.
The underwriting criteria for qualifying Program participants include:
• Applicant(s) is/are the legal owner(s) of the Property described in the Application
• The Property is not a leasehold (i.e., owned the Property fee simple).
• The amount of financing requested under the Program shall not exceed 10% of the value of the
Property.
• All existing private debt recorded against the Property does not exceed 85% of the value of the
Property.
• There are no involuntary liens, defaults or judgments on the Property in excess of $ 1,000.
• Property Owner has not declared bankmptcy in the past seven (7) years
• Property Ovmer is current on property taxes for the Property and has not been delinquent in the
past three (3) years or since owning the Property, if less than 3 years
• Property Owner is current on private property debt and has not been delinquent in the past three
(3) years or since owning the Property, if less than 3 years
• The Property title is not subject to power of attomey, easements, or subordination agreements
restricting my authority to subject the Property to a PACE lien.
• Property is classified as single family Residential or multifamily Residential (up to 4 units)
B. Eligible Improvements
The Program accommodates a wide range of energy and water savings measures, consistent with the
following provisions.
• Authorized Improvements must be permanently fixed to the Property.
• Program financing is provided only for portion of project costs associated with the Authorized
Improvements, that is, no costs of remodeling or new constmction are eligible for Program
financing (discussedfurther in section: LV.C).
4829-6142-0561.1 U
• Program financing is intended for replacement of outdated equipment and installation of new
equipment that reduces energy and/or water consumption.
• Program financing is made available for the following types of improvements:
o Energy efficiency
o Renewable energy
o Water conservation
o Altemative/ Custom Improvements.
Upon review and approval by CEDA on a case-by-case basis. Program financing will be made available
for emerging technologies that provide new ways to save or generate energy.
For further examples of eligible measures, see Exhibit C.
C. Eligible Costs
Eligible costs of Authorized Improvements include the cost of equipment and installation. Installation
costs may include, but are not limited to, labor, drafting, engineering, application fees, permit fees,
processing fees, energy audit, and inspection charges. Remodeling, repair, and/or new constmction costs
do not qualify for Program financing except to the extent such construction is required for installation of a
qualifying Improvement. Such equipment may include solar leases where such leases meet requirements
of the PACE Program.
Property Ovmers are encouraged to obtain bids from multiple Eligible Contractors, as each transaction is
between the Property Owner and the Eligible Contractor. Neither FIGTREE nor CEDA nor a
Participating Agency makes representations of the quality of work provided by an Eligible Contractor.
Property Owners must protect their own interests and obtain the best price, service, and warranties. The
role of Participating Agencies is limited to authorizing a financing district. The Property Ovmer is fully
responsible for his or her purchase, service and performance expectations, and warranties.
In each case, FIGTREE will determine whether the estimated equipment and installation costs are
reasonable. FIGTREE reserves the right to evaluate market conditions and, at its discretion, require
additional bids to determine whether costs are reasonable. While the Property Owner is encouraged to
select the bidder of his or her choice from the list of Eligible Contractors, the amount available for
assessment financing may be limited to an amount deemed reasonable by FIGTREE.
In the event that (a) the acquisition, constmction and/or installation of the Improvements (including, but
not limited to commencing the permit process) has not commenced within 60 days of the issuance of the
financing for the Improvements, or (b) all or a portion of the proceeds of the financing are not utilized to
fund the Improvements within 120 days of the issuance of the financing, the remaining Improvements
shall not be funded under the Assessment Contract and the amount of the financing amount owing to the
Contractor shall not be tendered to the Contractor; and the Borrower shall be responsible for the unpaid
accmed interest, closing costs, related administrative costs and a special 5% termination fee relating to the
unfunded amount as of the settlement date.
D. Administrative Costs
Discussions with the appropriate Auditor/Controller's offices have been initiated. It is anticipated that
standard fees for placing special assessments on the tax roll will apply.
4829-6142-0561.1 12
30
FIGTREE has been in consultation with the County Auditor-Controller of each Participating Agency
regarding any fees resulting from the incorporation of the contractual assessments into the general taxes
of the County on real property. Based on FIGTREE's current and ongoing discussions, fees will be in
accordance with the normal fees of each County Auditor-Controller for placing similar assessment
charges on the County tax roll for general property taxes. These fees will be collected directiy from
participating Property Owners through disclosed charges added to the Property Owner's annual levy
amount.
Administrative fees are recovered by the "spread" between bond rates and the Program financing interest
rate, and by an annual administrative charge added to the annual assessment amount billed to each
Property Ovmer each year. Other than the fees below, the Property Owners will not be billed for any
additional charges or assessments.
The following costs will be the responsibility ofthe Property Owner:
• Application Fee: The fee is $295 per Residential Application. A fee of $100 per parcel will
apply to properties on multiple contiguous parcels with the same occupancy use. The Application
Fee includes title verification and recordation of closing documents with the county in which the
Property is situated. The fee is home by the Property Owner but reimbursable through the
Program fmancing. The Application Fee is non-refundable and appropriate disclosures are
provided and must be acknowledged before a Property Owner can submit payment.
• Financing Issuance Fee: At the time of closing, FIGTREE will charge you a one-time
administration fee of four percent (4%) of the principal amount of the assessment on the Property
to cover the additional transaction costs of the Program. This fee will be added to the total
assessment amount financed.
• County Tax Collector Fee: Administrative costs charged by the county will be added to the
annual assessment amount and will be paid by Property Owners. Currentiy the maximum is $40
per Property per year. The maximum may escalate 2% per year for increases in county fees.
• Annual Administrative Fee: A charge of 3% of the total annual assessment amount will apply
for cost recovery. This administrative cost recovery will be added to the annual assessment
amount. Such administrative charges include, but not limited to staff" tune. Participating Agency
staff time and expenses incurred in the formation and administration ofthe Program.
• Permit Fees: Property Owners must determine whether a permit(s) is/are required for the chosen
improvement measures. If required. Property Owners will be responsible to pay permit fees.
Permit fees are eligible for inclusion in the financing.
• Inspection Fee: An Inspection Fee of $150 will apply to any required site visit, including a final
inspection to verify satisfactory completion of work.
• Progress Draws: For large projects, progress draws or multiple disbursements may be available
to alleviate the burden of carrying costs. Progress draws are subject to a fee of $450 each.
E. Application Process
Step 1: Apply and Get Approved for Financing
To begin, the Property Owner must apply to FIGTREE for Program financing and be approved for
participation in the program based on qualification criteria. FIGTREE will verify Property ovmership and
existing liens by ordering a title report on the Property.
The Property Owner submits the Application together with its required attachments to FIGTREE online at
www.figtreecompany.com or by mail:
4829-6142-0561.1 13
31
FIGTREE Energy Resource Company
Attention: PACE Program
9915 Mira Mesa Blvd., Suite 130
San Diego, CA 92131
Questions regarding the status of an Application should be directed to FIGTREE toll free at (877) 577-
7373.
FIGTREE determines whether each Application is complete and acceptable per Program guidelines.
Incomplete Applications will not be accepted. Applications will be processed on first-come, first-served
basis.
Step 2: Define the Scope of Work and Budget
Upon approval for participation, the Property Owner should define the project's scope of work and obtain
a bid from an Eligible Contractor(s). FIGTREE maintains an online database of Eligible Contractors that
are members of its existing program at http://www.figtreecompanv.com/resources-contractors/. A
description of the scope of work and a copy of the bid(s) should be submitted to FIGTREE in order to
determine the amount of financing required and to verify that all proposed Authorized Improvements
qualify under the Program underwriting standards.
Step 3: Lender Notification
For mortgaged residential properties. FIGTREE requires notification of the PACE assessment to the
mortgage lender. The responsibility for the Mortgage Lender's written consent lies with the residential
Borrower. Borrowers are required to acknowledge certain disclosures in the Application and the
Assessment Contract and are required to declare the following:
Borrower declares that (i) Borrower has received, read and understands the risks and characteristics ofthe
Program described in the Property Ovmer Acknowledgments and Disclosures and FHFA Disclosure set
forth in the Application and (ii) Borrower has been informed that executing this Contract, receiving
financing for Autiiorized Improvements and consenting to the assessment levied against the Property
without lender consent may constitute an event of default under Borrower's residential mortgage, and (iii)
Borrower takes the sole responsibility for consequences of such default which may include acceleration of
repayment obligations due under Borrower's residential mortgage.
Step 4: Execute Assessment Documents
Once the Scope of Work and Budget have been approved and Lender Consent has been obtained (if
Property is mortgaged), FIGTREE will provide the Property Ovmer vrith an Assessment Contract to be
signed, notarized and retumed to FIGTREE. The Assessment Contract is an agreement on the financing
amount and terms and is executed between the Property Owner and CEDA. Once the Assessment
Contract is executed, a signed and notarized Notice of Assessment and Payment of Assessment will be
recorded with the county in which the Property is situated.
4829-6142-0561.1 14
Step 5: Notice to Proceed
No work may begin until FIGTREE has issued a written Notice to Proceed to both the Property Ovmer
and Eligible Contractor. The Notice to Proceed is an indication that the PACE assessment has been
recorded on the Property and funds are available for disbursement to the Eligible Contractor upon
satisfactory project completion. When the Notice to Proceed has been issued, the Eligible Contractor(s)
may begin to install the energy and water upgrade equipment.
NOTE: If any work or expenses related to the proposed Scope of Work are incurred by the Property
Owner or Eligible Contractor(s) before receiving a Notice to Proceed from FIGTREE, neither FIGTREE
nor CEDA nor the City/County is, or will be responsible to pay or reimburse the Eligible Contractor or
Property Ovmer for any direct or related expenses.
Step 6: Project Completion and Inspection
FIGTREE reserves the right to inspect projects for satisfactory completion. The Property Ovmer must
acknowledge that work has been done to his or her satisfaction before payment is issued to the Eligible
Contractor(s).
Step 7: Contractor Payment
Upon satisfactory completion of the project and certification of completion by the Eligible Contractor(s),
the bond tmstee will issue a check to the Eligible Contractor(s) directly.
V. PROGRAM PLAN FOR RESIDENTL\L PACE FINANCING
FIGTREE recognizes the importance of timely financing in the residential sector. Pursuant to speedy
disbursement of funds, FIGTREE intends to raise capital for the Program through one or more of the
following financing arrangements or other legally available arrangements approved by CEDA:
• Issuance of municipal bonds: Issuing municipal bonds for either a single project or a pool of
projects.
• Warehouse Lending Facility: Utilizing warehouse or interim facility to fund PACE projects and
hold Assessment Contracts until a takeout through securitization or issuance of bonds.
Altemative financing options not listed above may also be pursued should such options benefit the
ongoing viability ofthe Program.
For any of the fmancing options, FIGTREE will direct the Bond Administrator to place charges on each
participating Property Owner's tax bill for repayment each year the Program financing is outstanding.
In the event municipal bonds are sold, such bonds shall be a special, limited obligation of CEDA and, as
such, are not a debt of the Participating Agencies, the State of Califomia or any of its political
subdivisions (other than CEDA). None of Participating Agencies, the State or any of its political
subdivisions (other than CEDA) is liable for the payment thereof The bonds are special, limited
obligations of CEDA payable exclusively from the revenues (secured by assessment district liens on
Property of participating Property Ovmers), and amounts held in certain fimds and accounts created
pursuant to the bond indenture. The bonds will not be payable from any other revenues or other assets of
4829-6142-0561.1 15
33
CEDA. CEDA does not have any taxing power. The bonds do not constitute indebtedness within the
meaning of any constitutional or statutory limitation or restriction.
VI. PROGRAM REQUIREMENTS FOR PARTICIPATING CONTRACTORS
A. Eligible Contractors
Contractors ("Eligible Contractors" as defined in this section) must meet certain qualifications to be
eligible to perform work on projects funded by the Program and all equipment must be approved,
installed, and verified in accordance with the Program guidelines. Eligible Contractors must be licensed
by and in good standing with the Califomia State Contractors License Board, and must meet the
following requirements.
Eligibility requirements include:
• Hold status of registered and licensed Contractor by the State of Califomia;
• Hold a business license in the jurisdiction where work is being performed;
• Have a minimum of five (5) years work experience as a licensed Contractor in the State of
Califomia, or demonstrate sufficient experience in a relevant field of work;
• Hold a minimum of $ 1,000,000 in general liability insurance;
• Meet bonding and Worker's Compensation insurance requirements per Califomia State
Contractors License Board;
• Agree to the Code of Ethics set forth in the contractor application.
To apply to be an Eligible Contractor, a contractor must fill out a contractor application online at
vyww.figtreecompanv.com or download a contractor application form from the website to complete and
mail to FIGTREE. Once approved (usually within 48 hours), the contractor will be added to the online
directory of Eligible Contractors and may contract for projects financed through the Program.
Per the Contractor Agreement (included in the contractor application), participating Eligible Contractors
are responsible for installation of the equipment on the Property (after receiving a Notice to Proceed from
FIGTREE). Upon satisfactory completion, the Eligible Contractor will be reimbursed by the Program
within 14 business days.
VII. APPEALS
The Program provides an Appeal Process by which participating Property Owners may appeal disputes in
the case of a denied Application and/or determination of ineligibility to participate in the Program.
Property Ovmers who have not signed an Assessment Contract may appeal to FIGTREE as follows:
1. Written notice may be sent by certified mail to FIGTREE. The notice must identify the issue(s) for
resolution, the circumstances that surround the issue(s), and a timeline of events.
2. FIGTREE shall discuss the matter with the Property Ovmer and shall attempt to resolve the dispute
within thirty (30) calendar days after delivery of the notice.
FIGTREE shall render a written decision in 30 calendar days and send that decision to the Property
Owner. The decision of FIGTREE is final.
4829-6142-0561.1 16
3'i
Property Owners who have signed an Assessment Contract may appeal to FIGTREE as follows:
1. A Property Ovmer who has signed a CEDA Assessment Contract shall attempt in good faith to
promptly resolve any dispute arising out of or relating to any Assessment Contract under the Program by
negotiations with FIGTREE and/or the Chair of CEDA or his or her designated representative.
2. To appeal. Property Ovmers must notify in writing the other party or parties by certified mail of any
dispute. Within thirty (30) calendar days after delivery of the notice, a FIGTREE representative or the
Chair of CEDA and the Property Owner shall discuss the matter and shall attempt to resolve the dispute.
3. If the dispute has not been resolved within thirty (30) calendar days of the first meeting, any party may
pursue other remedies, including mediation. All negotiations and any mediation conducted pursuant to
this clause are confidential and shall be treated as compromise and settlement negotiations, to which
Section 1152.5 of the Califomia Evidence Code shall apply, and Section 1152.5 is incorporated herein by
reference.
4. Notwithstanding the foregoing provisions, a party may seek a preliminary injunction or other
provisional judicial remedy if in its judgment such action is necessary to avoid irreparable damage or to
resolve the status quo. Each party is required to continue to perform its obligations under the Assessment
Contract pending final resolution of any dispute arising out of or relating to the Assessment Contract.
Note on Appealing Property Valuation: If a Property Ovmer determines that the value of the Property
as determined by FIGTREE is lower than the fair market value of the Property, the Property Owner may
appeal to FIGTREE in an effort to establish a greater financeable amount. The Property Ovmer may, at its
own expense, have an appraisal performed to establish a greater property value than that determined by
FIGTREE. FIGTREE, at its discretion, may accept an appraisal and increase the financeable amount
provided the appraisal is greater than the value determined by FIGTREE. The mortgage lender, if
applicable, must also consent to this valuation. FIGTREE does not alter the Property Ovmer's ad valorem
property taxes with the appraisal value; the appraisal is used only to determine the maximum Program
financing amount.
If a third party valuation tool is used to determine the value of the Property, the Property Ovmer shall
have the right and obligation to a copy of the report used in connection with his or her Application. Ifthe
Property Owner wants to obtain a copy, he or she may write to FIGTREE within 90 days after FIGTREE
provides notice of the action taken on the Property Owner's Application.
VIII. PROGRAM AND FINANCING DISCLOSURES
A. Financing Amount and Terms - Commercial Properties
1. Minimum Assessment Financing Amount
The minimum size for Commercial assessment financing is $5,000.
2. Maximum Assessment Financing Amount
The maximum assessment financing amount is typically ten percent (10%) of the total property value;
properties will be reviewed on a case-by-case basis for financing up to twenty percent (20%) of total
property value. The Program will determine a maximum assessment financing amount based on the most
recent county-assigned assessed value of the Property or other valuation deemed acceptable by FIGTREE.
4829-6142-0561.1 17
35
Valuation may be based on a third party valuation tool provided by a qualified vendor or a qualified
appraisal. There are two tiers of financing available:
• Tier 1: Target Interest Rate is 7.99% and maximum financing is 10% of total property value
(before the Authorized Improvements). The sum of the annual payment and property taxes cannot
exceed 3% of the total property value.
• Tier 2: Target Interest Rate is 8.99% and maximum financing is 20% of total property value
(before the energy efficiency improvements). The sum of the annual payment and property taxes
cannot exceed 4% of the total property value.
FIGTREE will calculate and determine the financing available for the Property Owner before final
approval as a safeguard so that in any case the total annual property tax and assessments on the Property
will not exceed 5% of the Property's value per Califomia code.
If a Property Owner determines that the assessed values do not accurately reflect the market value, an
appraisal may be authorized. Authorizations are provided on a case by case basis. The maximum amount
available for Program financing may be limited to an amount deemed reasonable by FIGTREE.
3. Financing Term
The term of the Program financing is based on the life expectancy of the Authorized Improvements
installed up to a maximum of 20 years.
B. Financing Amount and Terms - Residential Properties
1. Minimum Assessment Financing Amount
The minimum size for Residential assessment financing is $2,500.
2. Maximum Assessment Financing Amount
The maximum assessment financing amount is typically ten percent (10%) of the total property value;
properties will be reviewed on a case-by-case basis for financing up to twenty percent (20%) of total
property value. The Program will determine a maximum assessment financing amount based on the most
recent county-assigned assessed value of the Property or other valuation deemed acceptable by FIGTREE.
Valuation may be based on a third party valuation tool provided by a qualified vendor or a qualified
appraisal. Interest rates will be determined by the financing term and posted on the Program website, with
applicable adjustments, from time to time.
FIGTREE will calculate and determine the financing available for the Property Ovmer before final
approval as a safeguard so that in any case the total annual property tax and assessments on the Property
will not exceed 5% of the Property's value per Califomia code.
If a Property Owner determines that the assessed values do not accurately reflect the market value, an
appraisal may be authorized. Authorizations are provided on a case by case basis. The maximum amount
available for Program financing may be limited to an amount deemed reasonable by FIGTREE.
3. Financing Term
The term of the Program financing is based on the life expectancy of the Authorized Improvements
installed up to a maximum of 20 years. The terms may be 5, 10, 15, or 20 years, depending on the
Authorized Improvements.
4829-6142-0561.1 18
3(^
C. Maximum Portfolio
The maximum principal amount of the Program financmg available to Property Ovmers under the
Program is under the authority of and determined by CEDA, which has authorized $500 million at this
time. The total amount of financing available to all participating cities and counties that are Participating
Agencies is expected to exceed $500 million.
The maximum principal amount of the Program financing can be increased through CEDA resolution and
CEDA Board Approval. A distinction should be made between bonding and funding capacity. Given that
the FIGTREE PACE model accommodates various funding sources, actual funding capacity may exceed
bonding capacity.
D. Reserve/ Last Payment Collection
A reserve fund or upfront collection of a portion of the last year's payment may be required depending on
market conditions and the type of financing used to fund projects. If a reserve fund or upfront collection
of a portion of the last year's assessment payment is required, the Property Ovmer must allocate a
percentage of their total assessed financing amount to establish such funds.
For example, if a Property Owner is approved for a total $500,000 in financing and a 10% reserve is
required to market the bonds, $50,000 of that amount will be set aside and allocated for the reserve fund.
The remaining $450,000 will be eligible for project costs.
E. Priority of Funding
Applications from Property Owners for financing will be given priority based on the date on which the
Application is approved. If a request from a Property Owner for financing would cause the Program to
exceed the authorized maximum portfolio set by CEDA, then the Application will be ineligible for
financing unless the CEDA board authorizes additional funding. CEDA will retain the authority to grant
exceptions to the priority status of individual Applications.
F. Accelerated Foreclosure
The Program assessments are collected as a line item to the Property Owner's property tax bill. Each year
the annual assessment amounts will be submitted to the County Tax Collector's office. If an annual
assessment installment remains unpaid, the unpaid amounts will be subject to accelerated assessment lien
foreclosure proceedings. These unpaid amounts will be removed from the real property tax rolls and given
to a foreclosure attomey for collection via the foreclosure process. The special assessment foreclosure
proceedings generally will occur well in advance of the County Tax Collector's Foreclosure Sale Date to
remedy the delinquent general taxes on the Property.
G. Prepayment
At any time, the Property Owner can request a payoff quote at no-charge to pre-pay the PACE assessment
lien on the Property. Such payoff calculation includes the principal balance, any bond redemption
premiums, interest amounts due, and a special administrative fee. A reasonable prepayment premium may
be charged depending on the year of payoff. Prepayment premiums are published on the Application
form.
4829-6142-0561.1 19
^7
H. Assessment Interest Rate
Program financing will be issued to Property Ovmers at an annual interest rate that is determined by
market conditions at the time of issuing bonds. The rate of interest is fixed over the financing term. In any
event, Califomia state law does not allow the interest rate on assessment district bonds to exceed 12%.
Program financing that is entered into at different times may have different interest rates depending on
bond market conditions and successful marketing of the bonds. Upon successfully arranging the financing
in compliance with Financing Plans set forth in this Report, the interest rate for the project or group of
projects will be established.
After the Property Owner affirms that the Authorized Improvements have been installed as set forth in the
Assessment Contract and after inspection of the Authorized Improvements, the funding cycle will
conclude with distribution of funds.
IX. EXHIBITS
Maps
Draft Assessment Contract
Authorized Improvements
Applications for Financing
4829-6142-0561.1 20
38
EXHIBIT A-1
County of Alameda Boundary Map
The boundary of the Assessment District shall be the same as the County of Alameda Boundaries as
modified from time to time, and the complete County of Alameda Boundary Map is on file with the
Office of the County Engineering Department, County of Alameda and is incorporated herein by
reference.
4829-6142-0561.1
3=1
EXHIBIT A-2
County of Kern Boundary Map
The boundary ofthe Assessment District shall be the same as the County of Kern Boundaries as modified
from time to time, and the complete County of Kem Boundary Map is on file with the Office of the
County Engineering Department, County of Kem and is incorporated herein by reference.
County Map,California Tuliirc
Glennville.,
Woody Sierra. McFaland^^'
Lost HUls Wasco'
• LiveOko^ ^
* ~ Bfeckenridge • cCrecnacres ^ o 5
luyo
p ^.^Wofforo Walker (395jinvoki Alta '4Hieght Arpt.
Bodfish
""Havjlah
-.Edjson
Lamontr, , J^iZ-i":!'':!''^
Loraine
Arvin
Keene
Ridgecrest
--Camyon .S.P.
^ o
, Saltdaie
Cantil
• ^ Santa
"M Barbara
^-^
f'fheeler Mojav^
idge
Californij
Xlty
Lebec
North
Edwards
Rosamond
and burg
1
oron
\
4829-6142-0561.1
EXHIBIT A-3
City of South San Francisco Boundary Map
The boundary ofthe Assessment District shall be the same as the City of South San Francisco Boundaries
as modified from time to time, and the complete City of South San Francisco Boundary Map is on file
with the City Engineering Department, City of South San Francisco and is incorporated herein by
reference.
4829-6142-0561.1
EXHIBIT A-4
City of Dublin Boundary Map
The boundary ofthe Assessment District shall be the same as the City of Dublin Boundaries as modified
from time to time, and the complete City of Dublin Boundary Map is on file with the City Engineering
Department, City of Dublin and is incorporated herein by reference.
CITY OF DUBLIN
as amended through September 20. 200 5
4829-6142-0561.1
EXHIBIT A-5
City of Pittsburg Boundary Map
The boundary of the Assessment District shall be the same as the City of Pittsburg Boundaries as
modified from time to time, and tiie complete City of Pittsburg Boundary Map is on file with the City
Engineering Department, City of Pittsburg and is incorporated herein by reference.
CITY OF PITTSBURG, CA
Shore Acres
Bay Point
Sherman tiiamS
WafMfowl
jMMtgement Area
•
PA&5 t<d Pittsburg
Antioch
Black DiamorHI • Mne«Regk>nal -ti :,jL •
4829-6142-0561.1
13
EXHIBIT A-6
City of Rancho Cordova Boundary Map
The boundary of tiie Assessment District shall be the same as the City of Rancho Cordova Boundaries as
modified from time to time, and the complete City of Rancho Cordova Boundary Map is on file with the
City Engineering Department, City of Rancho Cordova and is incorporated herein by reference.
CITYOF
RANCHO CORDOVA
0 2
Miles
4829-6142-0561.1
EXHIBIT A-7
City of Redlands Boundary Map
The boundary of the Assessment District shall be the same as the City of Redlands Boundaries as
modified from time to time, and the complete City of Redlands Boundary Map is on file with the City
Engineering Department, City of Redlands and is incorporated herein by reference.
CITY OF REDLANDS
UNTY UNE RD
4829-6142-0561.1
HS
EXHIBIT A-8
City of Elk Grove Boundary Map
The boundary of the Assessment District shall be the same as the City of Elk Grove Boundaries as
modified from time to time, and the complete City of Elk Grove Boundary Map is on file with the City
Engineering Department, City of Elk Grove and is incorporated herein by reference.
CITY OF ELK GROVE
4829-6142-0561.1
EXHIBIT A-9
City of Yuba City Boundary Map
The boundary of the Assessment District shall be the same as the City of Yuba City Boundaries as
modified from time to time, and the complete City of Yuba City Boundary Map is on file with the City
Engineering Department, City of Yuba City and is incorporated herein by reference.
Yuba City
Sutter
County
N
/^/ City Lrnits
/V/ Railroad
County Lines
Water Features
y/ Roads
L__l Minor Zones
4829-6142-0561.1
Ml
EXHIBIT A-10
City of Kingsburg Boundary Map
The boundary of the Assessment District shall be the same as the City of Kingsburg Boundaries as
modified from time to time, and the complete City of Kingsburg Boundary Map is on file with the City
Engineering Department, City of Kingsburg and is incorporated herein by reference.
4829-6142-0561.1
EXHIBIT A-11
City of Clevis Boundary Map
The boundary of the Assessment Disttict shall be the same as the City of Clovis Boundaries as modified
from time to time, and the complete City of Clovis Boundary Map is on file with the City Engineering
Department, City of Clovis and is incorporated herein by reference.
FiN/i i^cr
JUI€21.20IZ
^ -
^ I ll
4829-6142-0561.1
H^
EXHIBIT A-12
City of Fresno Boundary Map
The boundary of the Assessment Disttict shall be the same as the City of Fresno Boundaries as modified
from time to time, and the complete City of Fresno Boundary Map is on file with the City Engineering
Department, City of Fresno and is incorporated herein by reference.
w AM 17
s
Ai-r .• A- .ill
t- .1 .ir -
r'
i
vVesi
Freinc
zV
I.- -
Honr\
QrowlhAfea
•Aooch^ifd
Park
-.'I
* Clovis
Internanefial* ^ ^
'Fresno g^hancur ^
" a KM
I
SouViMat r
Sfowlh Area
Ex«culrv«AM<
VW»«P«rk I
1.; *
4829-6142-0561.1
50
EXHIBIT A-13
City of San Diego Boundary Map
The boundary ofthe Assessment District shall be the same as the City of San Diego Boundaries as
modified from time to time, and the complete City of San Diego Boundary Map is on file with the City
Engineering Department, City of San Diego and is incorporated herein by reference.
Escondido
"0
Encmitas
So4ana
Beach
Del *JittT
La Jolta
Etk\ Fonesi
San fhmuM
Covrity Park
Rancho
:- -•rrr- -9.
Sycamore
^C«nyon
Coirty Park
Santee
Mission IF t.a Mesa Rancno
San Diego
La Presa ;jrrul
loronado National
City
Chuta Vista
Beach
Otay County Open
Space Pre«enre
4829-6142-0561.1
EXHIBIT A-14
City of Palm Springs Boundary Map
The boundary ofthe Assessment District shall be the same as the City of Palm Springs Boundaries as
modified from time to time, and the complete City of Palm Springs Boundary Map is on file with the City
Engineering Department, City of Palm Springs and is incorporated herein by reference.
Desert H-gWand
Galeway Ealamt
EsUrtea
Springs
Hiatonc P^nSpnnfli- , 9
Termis'Club Inlematjonal |
I Alfpon J
The Mesa
T>ioi»»nd
Cathedral
ICity
OtaklfflrdD. ^4k Cathedral
ICity
f J §•
1 tf
Rancho 5
Mirage I
Palm Desert
4829-6142-0561.1
EXHIBIT A-15
City of Yuba City Boundary Map
The boundary ofthe Assessment District shall be the same as the City of Yuba City Boundaries as
modified from time to time, and the complete City of Yuba City Boundary Map is on file with the City
Engineering Department, City of Yuba City and is incorporated herein by reference.
Naastro Rd
Ra
f
f
•
®
IP
Ul
^1
JT9I^
1
i f
^1
JT9I^
^1
JT9I^
t
I 1 1
f South'
Yuba City
; ®-
(a
f/arysville
YubrCity '^».0n
Paad^Ti^^Oolf
afKl Country Ckjb
1
Lo
Rfl-*
I
Lir as
Yuba County
Airport
Ofi^elwrat
l.ir M .1
4829-6142-0561.1
S3
EXHIBIT A-16
City of Commerce Boundary Map
The boundary ofthe Assessment Disttict shall be the same as the City of Commerce Boundaries as
modified from time to time, and the complete City of Commerce Boundary Map is on file with the City
Engineering Department, City of Commerce and is incorporated herein by reference.
Jf Mui«ei{wi Gotf Cuufifce
4829-6142-0561.1
5H
EXHIBIT A-17
County of Butte Boundary Map
The boundary ofthe Assessment Disttict shall be the same as the County of Butte Boundaries as modified
from time to time, and the complete County of Butte Boundary Map is on file with the County
Engineering Department, County of Butte and is incorporated herein by reference.
Reddii mg
Redding
o Anderson
Sacramento
National 4
ife Refuge
Pioneer Healdsburg pg,|.
Windsor
Gray Lodge.
W%ldl)feA/ea
Yuba City Empire
Mine State
Histonc Park
y
North Roseville
Woodland'
Natomas
Cilnjs yyi
\ Sacramentoo:;^^^^'^'^
Southwestern
Sacramento
Tmckee
Carson City
dl
South Lake.
Tahoe
4829-6142-0561.1
S5
EXHIBIT A-18
City of Bakersfield Boundary Map
The boundary ofthe Assessment District shall be the same as the City of Bakersfield Boundaries as
modified from time to time, and the complete City of Bakersfield Boundary Map is on file with the City
Engineering Department, City of Bakersfield and is incorporated herein by reference.
@
Suhvsn Rd
Rose<Jate
® r-.ft(, Kem River
Count/ Parl<
Faiitvale-
5" RoMMMeHwy (M) Rosedalc
3 Bnmha» Rd
Smckdale H*y
Greenacres
DwtnaBivo
'Bakersfield
Sports Village
•
I f
" Hwjghton Rd
(Si) Bear Mountan Blvd
P«rl Rd
Arvir^
Sycamore Rd
4829-6142-0561.1
5b
EXHIBIT A-19
City of San Marcos Boundary Map
The boundary ofthe Assessment District shall be the same as the City of San Marcos Boundaries as
modified from time to time, and the complete City of San Marcos Boundary Map is on file with the City
Engineering Department, City of San Marcos and is incorporated herein by reference.
Oro«P*rk"
t. \
T Oaks
DoH Couru
.. .1 DateyRsnch i
1-
1 Marco!
I I
San ^latcos
•*<i—
a
Jac*»-'
Escondido ®
V
Pa/*
4829-6142-0561.1
S7
EXHIBIT A-20
City of Vista Boundary Map
The boundary ofthe Assessment District shall be the same as the City of Vista Boundaries as modified
from time to time, and the complete City of Vista Boundary Map is on file with the City Engineering
Department, City of Vista and is incorporated herein by reference.
Vi&tuVaPey
Counlry dub
J
lawrrr
Wetki
boll Caul'.
IVafnui
Grove Pa
Twin Oaks
Coif Course
San Marcos
L,*kr Sttn
Msrcos
7
1.-
ia^l^m'rMlmi
P
4829-6142-0561.1
£2
EXHIBIT A-21
City of Santee Boundary Map
The boundary ofthe Assessment Disttict shall be the same as the City of Santee Boundaries as modified
from time to time, and the complete City of Santee Boundary Map is on file with the City Engineering
Department, City of Santee and is incorporated herein by reference.
Mast Patk Sa
1 ••
amee
l.:ikrMrir-
^Bjg Bock
Park
• I
Shadoinr I
Gardens 4!
k. —1
P.-r,fo"ia
San Carlos 1 Broadhnay
El Cajon
# WetlsPark
El Cajon
Det Cerro Utkehitmai
Grar^ite H
4829-6142-0561.1
EXHIBIT A-22
City of Oceanside Boundary Map
The boundary ofthe Assessment District shall be the same as the City of Oceanside Boundaries as
modified from time to time, and the complete City of Oceanside Boundary Map is on file with the City
Engineering Department, City of Oceanside and is incorporated herein by reference.
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4829-6142-0561.1
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EXHIBIT A-23
City of Chico Boundary Map
The boundary ofthe Assessment District shall be the same as the City of Chico Boundaries as modified
from time to time, and the complete City of Chico Boundary Map is on file with the City Engineering
Department, City of Chico and is incorporated herein by reference.
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EXHIBIT A-24
City of Oroville Boundary Map
The boundary ofthe Assessment District shall be the same as the City of Oroville Boundaries as modified
from time to time, and the complete City of Oroville Boundary Map is on file with the City Engineering
Department, City of Oroville and is incorporated herein by reference.
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4829-6142-0561.1
EXHIBIT A-25
County of San Diego Boundary Map
The boundary of the Assessment District shall be the same as the County of San Diego Boundaries as
modified from time to time, and the complete County of San Diego Boundary Map is on file with the
County Engineering Department, County of San Diego and is incorporated herein by reference.
Laguna
NigM^
San'
Clemente
Murrieta
Temecula
r,-.! brook
Oceanside Vtsta
Patomar
Mounfain *
State Park
Cenier
Escondido
Encmitas
TorreyPinea
State Reserve
Rancho
Bernardo
V Poway
La Jolla Kearny Santee
Mesa
Fl Cajon
San Diego
Chula Vista
Imperial
Beach
Tijuana villafoniana
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4829-6142-0561.1
03
EXHIBIT A-26
All Counties Boundary Map
The boundaries of the Assessment District shall be amended from time to time to include all Califomia
Cities and Counties as they adopt certain resolutions authorizing CEDA to form the Assessment Disttict
on their behalf The boimdaries of the Participating Agency shall be on file with the Participating
Agencies Engineering Department and is incorporated herein by reference.
San Francisco
San Mateo
Santa Cruz
4829-6142-0561.1
GH
EXHIBIT B
Draft Assessment Contract
4829-6142-0561.1
U>5
EXHIBIT C
Authorized Improvements
4829-6142-0561.1
FIGTREE PACE
Eligible Energy & Water Efficiency Measures (the "Improvements")
The Program offers financmg for a number of water and energy efficiency measures, solar systems, and
other iimovative, energy-saving measures. The energy and water efficiency measures listed in this section
are meant to serve as examples of the types of measures that qualify for Program financing. CEDA and/or
FIGTREE reserves the right to make a final determination as to whether any particular energy and/or
water efficiency measure will ultimately qualify.
Energy Efficiency Equipment / Measures
Lighting
Lighting fixture replacement
Dimmable lighting
Air Conditioning & Heating
Air heating, ventilation, and air conditioning systems
Fumaces and boilers
Air conditioners and condensing units
Packaged terminal air conditioners and heat pumps
Closed Loop Cooling
Air conditioner condensate recovery
Building Infrastructure & Management
HVAC Duct Zoning
Skylights
Insulation
Pipe insulation
Exterior doors
Occupancy sensors
Heat rejection equipment
Compressor conttols
Equipment scheduling
Programmable thermostats
Electric Vehicle Plug-In
Building Equipment
Refrigerated coolers
Water chillers
Variable Speed Drive pimip motor upgrades
Air handler fan upgrades
Economizers
Ozone laundry system
Carbon Dioxide or Silicon based dry cleaning system
Dry Hood Exhaust systems
4829-6142-0561.1
Pool Equipment
• Pool circulating pumps (must be Variable Flow and/or Multi-speed with conttollers)
• Natural gas pool heaters
Solar Equipment / Renewable Energy Generation
Solar Panels or Photovoltaic (PV) Systems are solar cells that capture the heat from the sun and convert it
directly into electricity. PV Systems that meet applicable fire and electtical code requirements qualify for
Program fimding. Such equipment may include solar leases where such leases meet requirements of the
PACE Program.
Solar electricity generating equipment includes:
Solar thermal systems (hot water)
Solar thermal systems for pool heating
Photovoltaic systems (electricity)
Battery back-up systems will be allowed
Funding for off-grid systems will be allowed
PV systems can be sized to accommodate plug-in electtic vehicles
Plug in stations
Emerging technologies
Nano/thin film photovoltaic
High intensity (parabolic solar panels)
Battery back-up systems will be allowed
Funding for off-grid systems will be allowed
Other electticity generating equipment includes:
• Small wind turbines
• Fuel Cells
Water Conservation Measures
High efficiency toilets
Low flow shower heads
Bathroom sink aerators
Hot water delivery options
Hot water recirculation systems and on-demand hot water systems
Whole house manifold system or core plumbing systems
Demand initiation or instantaneous hot water heaters
Demand initiated water softeners
Hot water pipe insulation
Evapottansportation irrigation systems or smart irrigation controllers
Permanently installed rainwater cisterns
4829-6142-0561.1
62
Matched precipitation rate sprinkler heads
High efficiency outdoor irrigation
Pre-rinse spray valves
Waterless urinals or low flow urinals
Bathroom sink aerators
Industrial process water use reduction
Recycled water source
Deionization
Filter upgrades
Cooling condensate reuse
Foundation drain water
Cooling tower conductivity controllers
High efficiency outdoor irrigation
Smart irrigation systems / controllers
ENERGY STAR
The Program provides financing for a wide range of Energy Star-rated efficiency measures which
property owners can get rebates (and tax incentives) as well as Program Assessment Financing. Energy
efficiency equipment that is Energy Star rated must meet the Energy Star minimimi efficiency levels.
Energy Star requirements are anticipated to "ratchet up" to greater efficiency levels over time. Energy
Star will also become more inclusive of technologies over time. Thus the Program will evolve with
Energy Star and the market for energy-efficient technologies.
The following Energy Star measures - among others - are eligible:
Attic and wall insulation
Light fixtures (no bulb-only retrofits)
Reflective roofs and coatings (Metal and Asphalt)
Windows, doors, and skylights (including sliding glass doors, garage doors, storm doors and
storm windows)
HVAC: Central Air Conditioners, Air Source Heat Pumps, Fumaces and Boilers
Water Heaters: Gas, Oil, & Propane Water Heaters, Electric Heat Pump Water
Heaters
Biomass Stoves
Geothermal Heat Pumps
Solar Panels
Solar Water Heaters
Small Wind Energy Systems
4829-6142-0561.1
EXHIBIT D
Applications for Financing
4829-6142-0561.1
10
Property Assessed Clean Energy
(PACE)
Michael Grim
December 3, 2013
What is PACE?
•Definition
•What it covers
–Energy efficiency
–Renewable energy
–Water conservation
•Benefits
History of PACE in Carlsbad
•California FIRST PACE program
–City Council joined on February 23, 2010.
–Only available for commercial properties.
–Residential properties may be available in the
future.
•Other PACE providers
–Contacted city beginning in 2011.
3
Current Proposal
•Join two additional PACE programs
–California HERO Program
–Figtree PACE Program
•Both programs require joining JPA as Associate
Member.
•All district formation and administration done
by JPA and/or program administrator.
4
California HERO Program
•Western Riverside Council of Governments
(WRCOG) JPA.
•Residential and commercial/industrial
properties.
•Renewable energy, energy and water
conservation projects.
–Includes electric vehicle charging infrastructure.
5
Figtree PACE Program
•California Enterprise Development Authority
(CEDA) JPA.
•Residential and commercial/industrial
properties.
•Renewable energy, energy and water
conservation projects.
6
Recommendation
•Adopt resolution joining WRCOG JPA and
California HERO Program.
•Adopt resolution joining CEDA JPA.
•Adopt resolution joining Figtree PACE
program.
7