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HomeMy WebLinkAbout55C - RESO CLEAN ENERGY FIN PROGREQUEST FOR - COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2018 TITLE: ADOPT A RESOLUTION - INCLUDE ALL SANTA ANA PROPERTIES TO BENEFIT FROM ACCESS TO PROPERTY ASSESSED CLEAN ENERGY FINANCING PROGRAMS (STRATEGIC PLAN NOS'. 5 • 3, 5) CITY MA ER /fi RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 16' 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 California Municipal Finance Authority Open Property Assessed Clean Energy Program to finance renewable energy generation, energy and water efficiency improvements, and electric vehicle charging infrastructure. DISCUSSION The California Municipal Finance Authority (CMFA) financing provides a mechanism by which all eligible property owners, both residential and nonresidential, can install renewable energy systems and energy- and water -efficient improvements and repay the financing through a voluntary annual amount added to their property tax bill. There are no hard costs and no dedicated staff resources required for the City to participate in this program. The California legislature has established Assembly Bill 811 (signed into law on July 21, 2008) which authorizes a legislative body to designate an area within which public entities and property owners may enter into voluntary assessments and/or special tax levies 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. Santa Ana has been a member of the CMFA joint powers authority since 2008. Since then, the CMFA has financed over $100 million of public benefit projects in the City. The CMFA is the only authority that shares 50% of its issuance fees with its JPA members (25% to the City's general fund and 25% to a local charity). Through this "give back" program, the CMFA has donated over $255,000 to Santa Ana based charities and $60,000 to the City's general fund. 55C-1 Resolution — Consenting to the Inclusion of Santa Ana Properties in the California Municipal Finance Authority Open PACE Financing Program February 6, 2018 Page 2 The PACE financing program provides property owners in participating cities and counties with an option to finance approved energy- and water -saving improvements on their property. If a property owner chooses to participate, the installed improvements are financed by the PACE program administrator. The loan is secured by the property itself, 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 an additional annual increment collected via their property tax bills. In most cases, when the property is sold, the financed amount transitions to the new owner; however, applicants are advised to consult their mortgage company for confirmation. In September 2013, City Council adopted a resolution allowing Santa Ana residential property owners to participate in the California Home Energy Renovation Opportunity (California HERO) Program, one of several AB 811 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. In January 2015, City Council approved joint powers agreements with the CaliforniaFIRST Program (offered by the California Statewide Communities Development Authority) and the Figtree Program (offered by the California Enterprise Development Authority). Similar to approving the California HERO program, Council action included approval of JPA associate memberships. These agreements have provided Santa Ana residential property owners with additional AB 811 PACE financing options and expanded the opportunity to commercial properties. In August 2015, City Council approved Associate Membership in the California Home Finance Joint Exercise of Powers Authority and Ygrene Energy Fund LLC (Ygrene) which made Ygrene Works PACE financing available to property owners in Santa Ana. Adoption of this resolution will expand the available financing options for all Santa Ana property owners. By offering low cost, competitive financing and fees, these programs will allow construction of eligible projects to proceed and, in the process, stimulate building activity and the overall local economy, reduce peak energy demand, reduce water consumption, increase property values, and generate savings on utility bills for Santa Ana property owners. This action will make the CMFA, California Property Assessed Clean Energy (PACE) financing available to property owners in Santa Ana. 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 55C-2 Resolution — Consenting to the Inclusion of Santa Ana Properties in the California Municipal Finance Authority Open PACE Financing Program February 6, 2018 Page 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 the recommended action. There is no cost to the City by authorizing the California Municipal Finance Authority Open PACE programs described. The City will have no administrative responsibilities, no marketing obligations, and no financial obligations associated with makin its program available. r. FredMousavipour Executive Director Public Works Agency FM/MM/CK Exhibit: 1. Resolution — California Municipal Finance Authority Open PACE Program 55C-3 55C-4 Imf 1/22/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE TERRITORY OF THE CITY IN THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY OPEN PACE PROGRAMS; AUTHORIZING THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS, CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS, AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE CITY; AND AUTHORIZING RELATED ACTIONS 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 Santa Ana ("City); and WHEREAS, the Authority is implementing Property Assessed Clean Energy (PACE) programs, which it has designated CMFA Open PACE, consisting of CMFA Open PACE programs each administered by a separate program administrator (collectively with any successors, assigns, replacements or additions, the 'Programs"), 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 (collectively, the 'Improvements") through the levy of contractual assessments pursuant to Division 7, Part 3, Chapter 29 of the California Streets and 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 Programs and the issuance of bonds from time to time; and WHEREAS, the program administrators currently active in administering Programs are Energy Efficient Equity, Inc.; BlueFlame PACE Services LLC; OnPACE Energy Solutions, LLC; Petros PACE Administrator, LLC; Structured Finance Associates, LLC; and Twain Community Partners II LLC; and whereas the Authority will notify the City in advance of any additions or changes; 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 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 Resolution No. 2018 -XXX Page 1 of 4 55C-5 imf 1/22/18 WHEREAS, the territory within which assessments maybe levied for the Programs 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 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 in such assessment payments; or the issuance, sale, administration repayment or guarantee of any bonds issued in connection with the Programs. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The City Council hereby finds and declares that the foregoing recitals are true and correct. Section 2. The City Council hereby finds and declares that properties in the territory of the City will benefit from the availability of the Programs 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. Section 3. In connection with the Programs, the City hereby consents to the conduct of 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 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 Programs. Section 4. The appropriate officials and staff of the City are hereby authorized and 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. The following staff persons, together with any other staff persons chosen by the City Manager from time to time, are hereby designated as the contact persons for the Authority in connection with the Programs: Executive Director of Public Works, or his or her designee. Resolution No. 2018 -XXX Page 2 of 4 55C-6 jmf 1/22/18 Section 5. 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. 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 Code of Regulations, Section 15378(b)(4)). Section 7. The City may withdraw from the Programs or any Program upon six (6) months written notice to the Authority. The City may withdraw its consent and approval for the conduct of special assessment proceedings by any specific program administrator under a Program within the jurisdictional limits of the City upon thirty (30) days written notice to the Authority without (a) liability to the Authority or any affiliated entity, and (b) withdrawing its consent and approval for the conduct of special assessment proceedings by any other program administrators under the other Programs. The City's withdrawal from any Program shall not affect the validity of any voluntary assessment contract entered into prior to the date of such withdrawal or entered into after the date of such withdrawal so long as the application for such voluntary assessment contract was submitted to and approved by the Authority prior to the date of the City's notice of withdrawal. Section 8. This Resolution shall take effect immediately upon its adoption, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. The Clerk is hereby authorized and directed to transmit a certified copy of this Resolution to the Financial Advisor of the Authority at: California Municipal Finance Authority 2111 Palomar Airport Road, Suite 320 Carlsbad, California 92011 Attn: Travis Cooper ADOPTED this day of 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney IIn John M. Funk Assistant City Attorney Miguel A. Pulido Mayor 55C-7 Resolution No. 2018 -XXX Page 3 of 4 jmf 1/22/18 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No. 2018 -- to be the original resolution adopted by the City Council of the City of Santa Ana on 2018. Date: 55C-8 Clerk of the Council City of Santa Ana Resolution No. 2018 -XXX Page 4 of 4