HomeMy WebLinkAbout2015-06-09; City Council; 21985; Join Open PACE Property Assessed Clean Energy ProgramCITY OF CARLSBAD - AGENDA BILL 10
AB# 21,985
DATE: 06-09-2015
DEPT. PW-PEM
APPROVAL TO JOIN THE
OPEN PACE
PROPERTY ASSESSED CLEAN ENERGY
PROGRAM
DEPT. DIRECTOR
CITY ATTY.
CITY MGR. m.
RECOMMENDED ACTION:
Adopt Resolution No. 2015-141 consenting to the inclusion of the properties within the city's
jurisdiction in the Open PACE Program to finance distributed generation renewable energy sources, and
energy and water efficiency improvements.
ITEM EXPLANATION:
Chapter 29 of Division 7 of the Streets and Highway Code authorizes cities and counties in California to
designate areas within which willing property owners can enter into contractual assessments to finance
the installation of distributed generation energy sources, energy efficiency and water efficiency
improvements that are permanently fixed to the property. Because these energy financing programs are
repaid through the property's tax bill, the programs are known as Property Assessed Clean Energy (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 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 allowing the property owner to transfer the
remaining balance upon sale of the property. The city benefits by having a third party administer a
financing program that facilitates the provision of cost effective energy and water 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 and create job opportunities in the
construction industry.
The City Council first acknowledged these potential benefits on Feb. 23, 2010, when City Council 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 Carlsbad.
DEPARTMENT CONTACT: Michael Grim 760-602-4623 Mike.Grlm@carisbadca.gov
FOR CLERK USE.
COUNCIL ACTION: APPROVED A CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER - SEE MINUTES •
AMENDED • REPORT RECEIVED •
Approval To Join The Open Pace Program
June 9, 2015
Page 2 of 2
On Dec. 3, 2013, the city expanded the number and types of PACE programs available to property owners
by joining the Figtree and California HERO programs. Figtree, authorized through the California
Enterprise Development Authority (CEDA) and administered by FigTREE Energy Financing, offers PACE
financing for non-residential properties. California HERO, authorized through Western Riverside Council
of Governments and administered by Renovate America, offers financing for residential and non-
residential properties.
Since 2013, other PACE programs have become available in the San Diego Region; one of those programs
is Open PACE. Open PACE is a group of PACE programs authorized through California Statewide
Communities Development Authority (CSCDA). It includes two programs already available for Carlsbad
property owners, California FIRST and HERO, and a third known as AllianceNRG. The Open PACE program
can provide PACE financing for residential and non-residential property owners for energy generation
and efficiency improvements, water conservation and seismic retrofitting projects.
In order to increase the PACE financing options available for residential and non-residential properties in
Carlsbad, staff is recommending that the City Council join the Open PACE program.
FISCAL IMPAa:
There is no fiscal impact to the city due to joining the Open PACE Program. There are no costs to the city
for the PACE program inception or operation. The staffs of the CSCDA and Open PACE are responsible
for the assessment proceedings, levy and collection of assessments, sale and administration of bonds;
and program administration, marketing and customer service. The city may elect to assist with
marketing the program, however, staff time associated with these activities is negligible.
ENVIRONMENTAL IMPAa:
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 environment, or a reasonably foreseeable indirect physical change in the
environment, and therefore does not require environmental review.
EXHIBITS:
1. Resolution No. 2015-141 consenting to the inclusion of the properties within the city's
jurisdiction in the Open PACE Program to finance distributed generation renewable energy sources,
and energy and water efficiency improvements.
EXHIBIT
1 RESOLUTION NO. 2015-141
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2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, CONSENTING TO THE INCLUSION OF PROPERTIES
WITHIN THE TERRITORY OF THE CITY OF CARLSBAD IN THE CSCDA
4 OPEN PACE PROGRAMS; AUTHORIZING THE CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO
5 ACCEPT APPLICATIONS FROM PROPERTY OWNERS, CONDUCT
CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY
CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE
CITY OF CARLSBAD: AND AUTHORIZING RELATED ACTIONS.
^ WHEREAS, the California Statewide Communities Development Authority (the
Authority) is a joint exercise of powers authority, the members of which include numerous
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cities and counties in the State of California, including the City of Carlsbad; and
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^2 WHEREAS, the Authority is implementing Property Assessed Clean Energy (PACE)
14 programs, which it has designated CSCDA Open PACE, consisting of CSCDA Open PACE
15 programs each administered by a separate program administrator (collectively with any
successors, assigns, replacements or additions, the "programs"), to allow the financing or
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refinancing of renewable energy, energy efficiency, water efficiency and seismic strengthening
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improvements, electric vehicle charging infrastructure and such other improvements,
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2Q infrastructure or other work as may be authorized by law from time to time (collectively, the
21 "improvements") through the levy of contractual assessments pursuant to Chapter 29 of
22 Division 7 of the Streets & Highways Code (Chapter 29) within counties and cities throughout
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the State of California that consent to the inclusion of properties within their respective
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territories in the programs and the issuance of bonds from time to time; and
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1 WHEREAS, the program administrators currently active in administering programs are
2 the AllianceNRG Program (presently consisting of Deutsche Bank Securities Inc., CounterPointe
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Energy Solutions LLC and Leidos Engineering LLC) and Renewable Funding LLC, and the
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Authority will notify the city in advance of any additions or changes; and
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. WHEREAS, Chapter 29 provides that assessments may be levied under its provisions only
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7 with the free and willing consent of the owner or owners of each lot or parcel on which an
8 assessment is levied at the time the assessment is levied; and
^ WHEREAS, the city desires to allow the owners of property (participating property
owners) within its territory to participate in the programs and to allow the Authority to conduct
assessment proceedings under Chapter 29 within its territory and to issue bonds to finance or
refinance improvements; and
14 WHEREAS, the territory within which assessments may be levied for the programs shall
15 include all of the territory within the city's official boundaries; and
WHEREAS, the Authority will conduct all assessment proceedings under Chapter 29 for
the programs and issue any bonds issued in connection with the programs; and
WHEREAS, the city will not be responsible for the conduct of any assessment
proceedings; the levy of assessments; any required remedial action in the case of delinquencies
21 in such assessment payments; or the issuance, sale or administration of any bonds issued in
22 connection with the programs;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California
as follows:
1. That the above recitations are true and correct.
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1 2. The City Council hereby finds and declares that properties in the territory of the
2 city will benefit from the availability of the programs within the territory of the city
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and, pursuant thereto, the conduct of special assessment proceedings by the
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Authority pursuant to Chapter 29 and the issuance of bonds to finance or
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refinance improvements.
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7 3. In connection with the programs, the city hereby consents to the conduct of
8 special assessment proceedings by the Authority pursuant to Chapter 29 on any
^ property within the territory of the city and the issuance of bonds to finance or
refinance improvements; provided, that:
a. The participating property owners, who shall be the legal owners of such
property, execute a contract pursuant to Chapter 29 and comply with other
14 applicable provisions of California law in order to accomplish the valid levy of
15 assessments.
b. The city will not be responsible for the conduct of any assessment proceedings;
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the levy of assessments; any required remedial action in the case of
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delinquencies in such assessment payments; or the issuance, sale or
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2Q administration of any bonds issued in connection with the programs.
21 c. The appropriate officials and staff of the city are hereby authorized and
22 directed to make applications for the programs available to all property
owners who wish to finance or refinance improvements; provided, that the
Authority shall be responsible for providing such applications and related
materials at its own expense.
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d. The appropriate officials and staff of the city are hereby authorized and
directed to execute and deliver such certificates, requisitions, agreements and
related documents as are reasonably required by the Authority to implement
the programs.
4. This Resolution shall take effect immediately upon its adoption. The City Clerk is
hereby authorized and directed to transmit a certified copy of this resolution to
the Secretary of the Authority at: Secretary of the Board, California Statewide
Communities Development Authority, 1400 K Street, Sacramento, CA 95814.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 9*'' day of June, 2015, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Blackburn, Schumacher, Wood, Packard.
None.
ABSENT: None.
SL
MATT HALL, Mayor
ATTEST:
BARBARA ENGLESON, Oly Clerk
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