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Home My WebLink About55D - RESO - CALIFORNIAFIRSTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 20, 2015 TITLE: RESOLUTION — CONSENTING TO THE INCLUSION OF SANTA ANA PROPERTIES IN THE CALIFORNIAFIRST (PACE) PROGRAM (STRATEGIC PLAN NOS. 5, 2 & 3, 5) G CITY MA AGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 18' Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER Adopt a resolution consenting to the inclusion of properties within the City's jurisdiction in the CaliforniaFIRST Program to finance renewable energy, and energy- and water- efficiency improvements. DISCUSSION The CaliforniaFIRST Program provides a mechanism by which residential and commercial property owners can install renewable energy systems, and energy- and water - efficient improvements that are financed through a special property tax assessment. Approval of this recommended action will make this financing available to property owners in Santa Ana. There is no hard cost and no dedicated staff resources required for the City to participate in this program. Assembly Bills 811 (signed into law on July 21, 2008) and 474 (effective January 1, 2010) amended Chapter 29 of Part 3 of Division 7 of the California Streets & Highways Code. The bills authorize a legislative body to designate an area within which public entities and property owners may enter into voluntary contractual assessments to finance the installation of certain renewable energy sources, energy- efficiency, and /or water- efficiency improvements that are permanently fixed to real property. The financing for these improvements has come to be known as PACE — Property Assessed Clean Energy. The PACE financing program allows property owners in participating cities and counties to finance approved energy- saving improvements on their property. If a property owner chooses to participate, the installed improvements would be financed through the issuance of bonds. The bonds are secured by a voluntary contractual assessment levied on the owner's property, with no obligation to the local government or other participating jurisdictions. Property owners who wish to participate in this voluntary program agree to repay the amount borrowed through a contractual assessment collected with their property taxes. In most cases, when property is sold, the finance amount transitions to the new owner; however, applicants are advised to consult their mortgage 55D -1 Resolution— Consenting to the Inclusion of Santa Ana Properties in the CaliforniaFIRST Program January 20, 2015 Page 2 company for confirmation. PACE financing is available for eligible improvements on both residential and nonresidential properties. In September 2013, City Council adopted a resolution allowing Santa Ana residential property owners to participate in the California Home Energy Renovation Opportunity Program (California HERO), one of several PACE financing providers. To facilitate implementation of the program within the Santa Ana jurisdiction, the Council action included approval of a Joint Powers Authority (JPA) membership in the Western Riverside Council of Governments. Since the implementation, Santa Ana residential property owners have completed over 106 projects at a cost of $2,165,585, with an additional $20,842,504 of financing in progress. As with the California HERO program, the CallforniaFIRST program also operates through a joint powers authority: the California Statewide Communities Development Authority (CSCDA), co- sponsored by the League of California Cities and the California Association of Counties. Santa Ana Community Development Agency has worked on projects with the CSCDA since 1991. By approving the CaliforniaFIRST program, the City will provide Santa Ana residential and commercial property owners with access to competitive financing options for renewable energy, and energy - and water- efficiency improvements citywide. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #2 (expand opportunities for conservation and environmental sustainability). Approval of this item also supports the City's efforts to meet Goal #3 Economic Development, Objective #5 (leverage private investment that results in tax base expansion and job creation citywide). FISCAL IMPACT There is no fiscal impact associated with this recommended action. All CaliforniaFIRST administrative costs are covered through an initial administrative fee included in the property owner's voluntary contractual assessment and an annual administrative fee which is also collected on the property owner's tax bill. Executive Director Public Works Agency FM /MM /CK Exhibits: 1. Resolution 55D -2 ROH - 01/20/15 RESOLUTION NO. 2015- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE CITY'S JURISDICTION IN THE CALIFORNIARRST PROGRAM TO FINANCE RENEWABLE ENERGY AND ENERGY AND WATER EFFICIENCY IMPROVEMENTS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The California Statewide Communities Development Authority ( "California Communities ") 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 Santa Ana (the "City "). B. California Communities has established the CaliforniaFIRST program (the "CaliforniaFIRST Program ") to allow the financing of certain renewable energy, energy efficiency and water efficiency improvements (the "Improvements ") through the levy of contractual assessments pursuant to Chapter 29 of Division 7 of the Streets & Highways Code ( "Chapter 29 ") and the issuance of improvement bonds (the "Bonds ") under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the "1915 Act") upon the security of the unpaid contractual assessments. C. Chapter 29 provides that assessments may be levied under its provisions only with the free and willing consent of the owner of each lot or parcel on which an assessment is levied at the time the assessment is levied. D. The City desires to allow the owners of property ( "Participating Property Owners ") within the incorporated territory of the City to participate in the CaliforniaFIRST Program and to allow California Communities to conduct assessment proceedings under Chapter 29 within the incorporated territory of the City and to issue Bonds under the 1915 Act to finance the Improvements. E. California Communities will conduct assessment proceedings under Chapter 29 and issue Bonds under the 1915 Act to finance Improvements. The City will not be responsible for the conduct of any assessment proceedings; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment Exhibit 1 55D -3 payments; or the issuance, sale or administration of the Bonds or any other bonds issued in connection with the CaliforniaFIRST Program, Section 2. This City Council hereby finds and declares that properties in the City's incorporated area will benefit from the availability of the CaliforniaFIRST Program within the incorporated territory of the City and, pursuant thereto, the conduct of special assessment proceedings by California Communities pursuant to Chapter 29 and the issuance of Bonds under the 1915 Act. Section 3. In connection with the CalifornlaFIRST Program, the City hereby consents to the conduct of special assessment proceedings by California Communities pursuant to Chapter 29 on any property within its jurisdiction and the issuance of Bonds under the 1915 Act; provided, that: (1) 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 (2) The City will not be responsible for the conduct of any assessment proceedings; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of the Bonds or any other bonds issued in connection with the CallfornlaFIRST Program. (3) The issuance of Bonds will occur following receipt of a final judgment in a validation action filed by California Communities pursuant to Code of Civil Procedure Section 860 that the Bonds are legal obligations of California Communities, Section 4. Pursuant to the requirements of Chapter 29, California Communities has prepared and will update from time to time the "Program Report" for the CaliforniaFIRST Program (the "Program Report"), and California Communities will undertake assessment proceedings and the financing of Improvements as set forth in the Program Report. Section 5. The appropriate officials and staff of the City are hereby authorized and directed to execute and deliver such closing certificates, requisitions, agreements and related documents as are reasonably required by California Communities in accordance with the Program Report to implement the CaliforniaFIRST Program for Participating Property Owners. Section 6. The City Council hereby finds that adoption of this Resolution is not a "project" under the California Environmental Quality Act, 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 55D -4 Code of Regulations, Section 15378(b)(4). Section 7. This Resolution shall take effect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of California Communities. ADOPTED this day of January, 2015. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney AYES: Councilmembers NOES: Councilmembers ., ill NOT PRESENT: Councilmembers Councilmembers Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2015 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: _ Clerk of the Council City of Santa Ana 55D -5 55D -6