HomeMy WebLinkAbout2016-06-14; City Council; 22310; Approval to join California Municipal Finance Authority Property Assessed Clean Energy ProgramItem 4; pg. 1
CITY OF CARLSBAD-AGENDA BILL
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AB# 22,310 APPROVAL TO JOIN THE DEPT. DIRECTOR\\'l·
DATE: 06-14-16 CALIFORNIA MUNICIPAL FINANCE AUTHORITY CITYATIY. f{!J~
PROPERTY ASSESSED CLEAN ENERGY PROGRAM ' DEPT. PW-EM CITY MGR. \.lL-
RECOMMENDED ACTION:
Adopt a resolution consenting to the inclusion of the properties within the city's jurisdiction in the California
Municipal Finance Authority (CMFA) Property Assessed Clean Energy (PACE) program to finance distributed
generation renewable energy sources, energy and water efficiency improvements, seismic strengthening
improvements, and electrical vehicle charging infrastructure.
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 bilt 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 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, growing job opportunities in the
construction sector and increasing property values.
The City Council first acknowledged these potential benefits when, on Feb. 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. Since that time, City Council authorized annexation in 2013 into
the HERO and FigTree PACE Programs and in 2015 into the Open PACE and Ygrene Works PACE Programs.
DEPARTMENT CONTACT: Mike Grim 760-602-4623 mike.grim@carlsbadca.gov
FOR CLERK USE. 02( COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC D
DENIED D CONTINUED TO DATE UNKNOWN D
CONTINUED D RETURNED TO STAFF D
WITHDRAWN D OTHER-SEE MINUTES D
AMENDED D REPORT RECEIVED D
Item 4; pg. 2
Approval To Jain CMFA PACE Program
June 14, 2016
Page2 of2
Another PACE Program, authorized through CMFA, is now available. CMFA is a Joint Powers Authority
based in Carlsbad, California, and the city is already a member. The CMFA PACE Program offers financing
for distributed generation renewable energy sources, energy and water efficiency improvements, seismic
strengthening improvements, and electrical vehicle charging infrastructure. The program is unique in that
it returns 50 percent of all issuance fees to the local community, with 25 percent going to the city's general
fund and 25 percent going to local charities. 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
CMFA PACE Program.
FISCAL IMPACT:
There is no fiscal impact to the city due to joining the CMFA PACE Program. There are no costs to the city
for the PACE Program inception or operation. The staffs of the CMFA and the CMFA PACE administrator
are responsible for the conduct of 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 IMPACT:
Pursuant to Title 14, California Code of Regulations, Section 15378 (b)(4) this action does not constitute a
"project" under the California Environmental Quality Act, because the Resolution does not involve any
commitment to a specific project which may result in a potentially significant physical impact on the
environment.
EXHIBITS:
1. Resolution consenting to the inclusion of the properties within the city's jurisdiction in the CMFA
PACE Program.
Item 4; pg. 3
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RESOLUTION NO. 2016-106
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, CONSENTING TO THE INCLUSION OF PROPERTIES
WITHIN THE CITY TO PARTICIPATE IN THE CALIFORNIA MUNICIPAL
FINANCE AUTHORITY PROPERTY ASSESSED CLEAN ENERGY
PROGRAM; AUTHORIZING CMFA TO ACCEPT APPLICATIONS FROM
PROPERTY OWNERS, CONDUCT CONTRACTUAL ASSESSMENT
PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS WITHIN
THE CITY; AND AUTHORIZING RELATED ACTIONS
EXHIBIT 1
WHEREAS, the California Municipal Finance Authority (Authority) is a joint exercise of
powers authority, the members of which include numerous cities and counties in the State of
California, including the City of Carlsbad (city); and
WHEREAS, the Authority has established its CMFA PACE Program (Program) to allow the
financing or refinancing of renewable energy, energy efficiency, water efficiency and seismic
strengthening improvements, electric vehicle charging infrastructure and such other
improvements, infrastructure or other work as may be authorized by law from time to time
(Improvements) through the levy of contractual assessments pursuant to Chapter 29 of Division
7 ofthe Streets & Highways Code (Chapter 29) within counties and cities throughout the State of
California that consent to the inclusion of properties within their respective territories in the
Program and the issuance of bonds from time to time; and
WHEREAS, Chapter 29 provides that assessments may be levied under its provisions only
with the free and willing consent of the owner or owners of each lot or parcel on which an
assessment is levied at the time the assessment is levied; and
WHEREAS, the city desires to allow the owners of property (Participating Property
Owners) within its territory to participate in the Program and to allow the Authority to conduct
Item 4; pg. 4
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assessment proceedings under Chapter 29 within its territory and to issue bonds to finance or
refinance Improvements; and
WHEREAS, the territory within which assessments may be levied for the Program shall
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 Program and issue any bonds issued in connection with the Program; 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 in such
assessment payments; or the issuance, sale, administration repayment or guarantee of any
bonds issued in connection with the Program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California
as follows:
1. That the above recitations are true and correct.
2. This City Council hereby finds and declares that the foregoing recitals are true and
correct.
3. This City Council hereby finds and declares that properties in the territory ofthe city
will benefit from the availability of the Program within the territory of the city and,
pursuant thereto, the conduct of special assessment proceedings by the Authority
pursuant to Chapter 29 and the issuance of bonds to finance or refinance
Improvements.
4. In connection with the Program, the city hereby consents to the conduct of special
assessment proceedings by the Authority pursuant to Chapter 29 on any property
Item 4; pg. 5
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Ill
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
applicable provisions of California law in order to accomplish the valid levy of
assessments; and
b. 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 in such assessment payments; or the issuance, sale,
administration, repayment or guarantee of any bonds issued in connection with
the Program.
c. The City Council hereby finds that adoption of this Resolution is not a project
under the California Environmental Quality Act, 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).
d. This Resolution shall take effect immediately upon its adoption. The City Clerk is
hereby authorized and directed to transmit a certified copy ofthis Resolution to
the Financial Advisor ofthe Authority at: California Municipal Finance Authority,
2111 Palomar Airport Road, Suite 320, Carlsbad, California 92011, Attn: Anthony
Stubbs.
Item 4; pg. 6
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City of
Carlsbad on the 14th day of June, 2016, by the following vote to wit:
AYES: Hall, Wood, Schumacher, Blackburn, Packard.
NOES: None.
ABSENT: None.
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BARB 'rA ENGLESON, City Cl k
(SEAL)