Loading...
HomeMy WebLinkAboutRes 2017-48 and 49 - Property Assessed Clean Energy Pgrms RESOLUTION NOS. 2017-48 & 49 CONTRACT NO. C36240 CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: APPROVAL OF RESOLUTIONS NO. 2017-48 FOR AB 811 PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM, RESOLUTION NO. 2017-49 FOR SB 555 PACE PROGRAM, AND A JOINT POWERS ASSOCIATION (JPA) ADDENDUM TO OPT INTO THE GOLDEN STATE FINANCE AUTHORITY (GSFA). SUBMITTED BY: Deborah S. Glickman, Management Analyst DATE: June 22, 2017 CONTENTS: AB 811 Resolution SB 555 Resolution JPA Agreement with GSFA Recommendation 1. Waive further reading and adopt: a. Resolution No. 2017-48 for AB 811 PACE program and authorize Mayor to execute same; b. Resolution No. 2017-49 for SB 555 PACE program and authorize Mayor to execute same; 2. By Minute Motion approve the subject JPA addendum and authorize City Manager to execute same. Strategic Plan This item is in line with two Energy & Sustainability Priorities: Priority 1: Reduce per capita consumption of energy and water. Priority 4: Encourage owners of all existing properties to voluntarily retrofit them to obtain reductions in energy and water usage. Staff Report Ygrene PACE Program Page 2 of 3 June 22, 2017 Discussion The City of Palm Desert currently has four (4) approved Property Assessed Clean Energy (PACE) program providers — Ygrene CV Upgrade, Hero, California First, and CMFA. The Ygrene CV Upgrade PACE program was introduced to Palm Desert in 2013 after Ygrene was selected in a competitive bid process. At its December 5, 2016 meeting, the Executive Committee of the Coachella Valley Association of Governments (CVAG) approved transition of the CV Upgrade PACE program to Ygrene's statewide program, known as Ygrene Works. For the statewide program, Ygrene partnered with the Golden State Finance Authority. Palm Desert's transition to Ygrene's statewide program requires an amendment to CVAG's existing agreement with Ygrene to allow for early termination. The transition also requires a new agreement with Ygrene for CVAG to join their statewide program. The new agreement is in line with agreements signed between CVAG and other PACE vendors. CVAG staff worked with CVAG legal counsel and Ygrene on the necessary documents which are attached for your consideration. Each of these agreements provides for ongoing CVAG oversight of the Ygrene PACE program and protects each city from any liability from GSFA's other programs. CVAG staff will continue to be a point of contact for PACE and act as a mediator should any issues arise between property owners and the contractor of PACE providers in the Coachella Valley. The standardized agreement with PACE vendors, including Ygrene, will allow for CVAG to provide oversight on behalf of its member agencies to: 1. Minimize issues that may arise from the operation of multiple programs simultaneously in the Coachella Valley. 2. Assist with marketing and outreach. 3. Coordinate with CVAG member agencies. 4. Assist in resolving any property owner or contractor complaints. The agreement also provides for a participation fee collected from each PACE provider associated with CVAG's role in working to implement a regional PACE program. If needed in the future, the CVAG Executive Committee will retain the option to discontinue participation of a PACE provider in the Coachella Valley if they are not following the adopted Consumer Protection Policies and best practices. The proposed Resolutions and JPA Agreement have been reviewed and approved by the City Attorney. Staff Report Ygrene PACE Program Page 3 of 3 June 22, 2017 Fiscal Analysis Expenses for the program will be incurred by CVAG and recovered through the participation fee collected from each PACE provider. There will be no cost to the City. Submitted By: Department Head: Deborah S. Glickman Ryan Ste dell Management Analyst Director of Community Development Reviewed: Janet oore, Director of Finance Approval: Lauri Aylaian, City Manager RESOLUTION FOR AB 811 RESOLUTION NO. 2017-48 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY'S JURISDICTION IN THE GOLDEN STATE FINANCE AUTHORITY PROGRAM TO FINANCE RENEWABLE ENERGY GENERATION, ENERGY AND WATER EFFICIENCY IMPROVEMENTS, SEISMIC IMPROVEMENTS, AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND APPROVING ASSOCIATE MEMBERSHIP IN THE JOINT EXERCISE OF POWERS AUTHORITY RELATED THERETO WHEREAS, the Golden State Finance Authority ("Authority") is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title l of the Government Code of the State of California (Section 6500 and following) (the "Act") and the Joint Power Agreement entered into on July 1, 1993, as amended from time to time (the "Authority JPA"); a copy of the Authority JPA (without the signature pages) is attached hereto as Exhibit A; and WHEREAS, the Authority has amended the Authority JPA to formally change its name from California Home Finance Authority to Golden State Finance Authority; and WHEREAS, Authority has established a property-assessed clean energy ("PACE") Program (the "Authority PACE Program") to provide for the financing of renewable energy generation, energy and water efficiency improvements, seismic improvements, and electric vehicle charging infrastructure (the "Improvements") pursuant to Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code ("Chapter 29") within counties and cities throughout the State of California that elect to participate in such program; and WHEREAS, City of Palm Desert (the "City") is committed to development of renewable energy generation and energy and water efficiency improvements, reduction of greenhouse gases, and protection of the environment; and WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist property owners in financing the cost of installing Improvements through a voluntary contractual assessment program; and WHEREAS, the City is a member of the Coachella Valley Association of Governments ("CVAG"), also a joint powers authority; and WHEREAS, the City and other CVAG member jurisdictions have previously entered into an Implementation Agreement authorizing CVAG to implement, manage and administer Regional PACE Programs (as defined in said Implementation Agreement) within the jurisdictional boundaries of the CVAG member jurisdictions; and WHEREAS, CVAG proposes to enter into one or more Administration Agreements with program administrators currently active in the Authority PACE Program to provide Regional 82671.00001\29607493.4 PACE programs to CVAG member agencies, whereby portions of the administration of the Authority PACE Program in Eastern Riverside County shall be delegated to CVAG (the "Administration Agreements"); and WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the counties and cities that are participating in the Regional PACE Programs would promote the purposes cited above; and WHEREAS, the City has determined that it is in the public interest and for the public benefit that the City become an Associate Member of the Authority so that property owners within the City's territory may participate in any Regional PACE Program implemented by CVAG pursuant to any Administration Agreement by and between CVAG and Authority PACE Program administrators; and WHEREAS, Authority has established the Authority PACE Program, which is such a voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally made and entered into July 1, 1993, as amended to date, and the City, desires to become an Associate Member of the JPA by acknowledgement of the Authority JPA Agreement, to participate in any Regional PACE Program for which CVAG has entered into an Administration Agreement with an Authority PACE Program administrator, and to assist property owners within the jurisdiction of the City to participate in such Regional PACE Program; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy and collection of assessments or any required remedial action in the case of delinquencies in the payment of any assessments or the issuance, sale or administration of any bonds issued in connection with the Authority PACE Program. NOW, THEREFORE, BE IT RESOLVED THAT: 1. This City Council finds and declares that properties in the City's incorporated area will be benefited by the availability of the Authority PACE Program to finance the installation of the Improvements. 2. In connection with the Regional PACE Programs, and subject to the terms of the Administration Agreements, this City Council consents to inclusion in the Authority PACE Program of all of the properties in the jurisdictional boundaries of the City and to the Improvements, upon the request by and voluntary agreement of owners of such properties, in compliance with the laws, rules and regulations applicable to such program; and to the assumption of jurisdiction thereover by Authority for the purposes thereof. 3. Consistent with the recitals above, and subject to the terms of the Administration Agreements, the consent of this City Council constitutes assent to the assumption of jurisdiction by Authority for said purposes and authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Improvements, including the levying, collecting and enforcement of the contractual assessments to finance the Improvements and the issuance and enforcement of bonds to represent such contractual assessments; provided, however, that the City will not be responsible for the conduct 8267 I.00001\29607493.4 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 Authority PACE Program. 4. This City Council hereby approves joining the JPA as an Associate Member and authorizes the execution by appropriate City officials of any necessary documents to effectuate such membership and implementation of the Authority PACE Program, including, but not limited to the JPA Addendum attached hereto as Exhibit B and incorporated herein by reference. 5. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the Authority PACE Program within the City consistent with the terms of any Administration Agreement by and between CVAG and an Authority PACE Program administrator, and report back periodically to this City Council on the success of such program. 6. This Resolution shall take effect immediately once it is adopted only for an Authority PACE Program administrator who has entered into an Administration Agreement with CVAG and provides the City a fully executed copy of such agreement. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority. PASSED AND ADOPTED this day of , 20_by the following vote, to wit: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members 82671.00001\29607493.4 RESOLUTION FOR SB 555 RESOLUTION NO. 201 7-49 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY'S JURISDICTION IN THE GOLDEN STATE FINANCE AUTHORITY COMMUNITY FACILITIES DISTRICT TO FINANCE RENEWABLE ENERGY IMPROVEMENTS, ENERGY EFFICIENCY AND WATER CONSERVATION IMPROVEMENTS, SEISMIC IMPROVEMENTS, AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND APPROVING ASSOCIATE MEMBERSHIP IN THE JOINT EXERCISE OF POWERS AUTHORITY RELATED THERETO Recitals WHEREAS, the Golden State Finance Authority is a joint powers authority, (the "Authority") established pursuant to Chapter 5 of Division 7, Title 1, of the Government Code of the State of California (Section 6500 and following) and the Joint Powers Agreement entered into on July 1, 1993, as amended to date (the "Authority JPA"); a copy of the Authority JPA (without the signature pages) is attached hereto as Exhibit A; and WHEREAS, the Authority has amended the Authority JPA to formally change its name from California Home Finance Authority to Golden State Finance Authority; and WHEREAS, the Authority has established a Community Facilities District, CHFA No. 2014-1 (Clean Energy) (the "Authority CFD Program") in accordance with the Mello-Roos Community Facilities Act, set forth in sections 53311 through 53368.3 of the California Government Code (the "Act") and particularly in accordance with sections 53313.5(1) and 53328.1(a) (the "District"); and WHEREAS, the purpose of the Authority CFD Program is to finance or refinance (including the payment of interest) the acquisition, installation, and improvement of energy efficiency, water conservation, seismic improvements, renewable energy and electric vehicle charging infrastructure improvements permanently affixed to private or publicly-owned real property (the "Authorized Improvements"); and WHEREAS, the City of Palm Desert (the "City") is a member of the Coachella Valley Association of Governments ("CVAG"), also a joint powers authority; and WHEREAS, the City and other CVAG member jurisdictions have previously entered into an Implementation Agreement authorizing CVAG to implement, manage and administer Regional PACE Programs (as defined in said Implementation Agreement) within the jurisdictional boundaries of the CVAG member jurisdictions; and Reso CFD Opt-in 82671.00001\29607497.4 WHEREAS, CVAG proposes to enter into one or more Administration Agreements with program administrators currently active in the Authority CFD Program to provide the Regional PACE Programs to CVAG member agencies, whereby portions of the administration of the Authority CFD Program in Eastern Riverside County shall be delegated to CVAG (the "Administration Agreements"); and WHEREAS, the City is committed to development of renewable energy generation and energy efficiency improvements, reduction of greenhouse gases, and protection of the environment; and WHEREAS, in the Act, the Legislature has authorized a parcel within the territory of the District to annex to the District and be subject to the special tax levy of the District only (i) if the city or county within which the parcel is located has consented, by the adoption of a resolution by the applicable city council or county board of supervisors, to the inclusion of parcels within its boundaries in the District and (ii) with the unanimous written approval of the owner or owners of the parcel when it is annexed (the "Unanimous Approval Agreement"), which, as provided in section 53329.6 of the Act, shall constitute the election required by the California Constitution; and WHEREAS, the City has determined that it is in the public interest and for the public benefit that the City become a Member of the Authority so that property owners within the City's territory may participate in any Regional PACE Programs implemented by CVAG pursuant to any Administration Agreements by and between CVAG and Authority program administrators; and WHEREAS, the Authority has established the District, as permitted by the Act and the Authority JPA, and the City, desires to become an Associate Member of the Authority JPA by acknowledgement of the Authority JPA Agreement, to participate in any of the Regional PACE Programs for which CVAG has entered into an Administration Agreement with an Authority CFD Program administrator, and to assist property owners within the incorporated area of the City to participate in such Regional PACE Programs; and WHEREAS, the City will not be responsible for the conduct of any special tax proceedings, the levy and collection of special taxes, or any required remedial action in the case of delinquencies in the payment of any special taxes in connection with the District. NOW, THEREFORE, BE IT RESOLVED THAT: 1. This City Council finds and declares that properties in the City's incorporated area will be benefited by the availability of the Authority CFD Program to finance the installation of the Authorized Improvements. 2. In connection with the Regional PACE Programs, and subject to the terms of the Administration Agreements, this City Council consents to inclusion in the Authority CFD Program of all of the properties in the incorporated area within the City and to the Authorized Improvements, upon the request of and execution of the Unanimous Approval Agreement by the owners of such properties when such properties are annexed, in compliance with the laws, rules Reso CFD Opt-in 8 2671.00001\29607497.4 and regulations applicable to such program; and to the assumption of jurisdiction thereover by Authority for the purposes thereof. 3. Consistent with the recitals above, and subject to the terms of the Administration Agreements, the consent of this City Council constitutes assent to the assumption of jurisdiction by Authority for said purposes and authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Authorized Improvements; provided, however, that the City will not be responsible for the conduct of any assessment or special tax proceedings; the levy of assessments or special taxes; any required remedial action in the case of delinquencies in such assessment or special tax payments; or the issuance, sale, administration, repayment or guarantee of any bonds or other debt issued in connection with the Authority CFD Program. 4. This City Council hereby approves joining the JPA as an Associate Member and authorizes the execution by appropriate City officials of any necessary documents to effectuate such membership and implementation of the Authority CFD Program, including, but not limited to the JPA Addendum attached hereto as Exhibit B and incorporated herein by reference. 5. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the Authority CFD Program within the City consistent with the terms of any Administration Agreements by and between CVAG and an Authority CFD Program administrator, and report back periodically to this City Council on the success of such program. 6. This Resolution shall take effect once it is adopted only for an Authority CFD Program administrator who has entered into an Administration Agreement with CVAG and provides the City a fully executed copy of such agreement. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority. PASSED AND ADOPTED this day of , 20_by the following vote, to wit: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Reso CFD Opt-in 82671.00001 29607497.4 CONTRACT NO. C36240 GOLDEN STATE FINANCE AUTHORITY AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT (Original date July 1, 1993 and as last amended and restated May 5, 2015) SIGNATURE PAGE WITH ASSOCIATE MEMBERSHIP TERMS AND CONDITIONS FOR CITY OF PALM DESERT ("JPA Addendum") The City of Palm Desert ("City") hereby agrees to become an Associate Member of the Authority expressly subject to the following: 1. The City joins the Authority as an Associate Member solely for the purpose of enabling the Authority to make its property-assessed clean energy (PACE) Programs (the "Authority PACE Programs")' available to properties within the jurisdictional boundaries of the City, as further set forth in Resolution Nos. and adopted by the City Council of the City on ("Resolutions"). 2. Notwithstanding Section 4(d) of the Amended and Restated Joint Exercise of Powers Agreement entered into on July 1, 1993, as amended to date ("Agreement"), no terms and conditions established by the Board, and not contained in the Agreement as of the date of City's execution of this JPA Addendum, shall be binding on the City unless and until approved, in writing, by the City Manager of the City ("City Manager"). Further, notwithstanding Section 19 of the Agreement, no amendment to the Agreement which impacts the City, as an Associate Member, shall be binding on the City unless approved in writing by the City Manager. 3. For clarification, and pursuant to Section 6(g) of the Agreement, any Bonds, together with any interest and premiums thereon, shall not constitute debts, liabilities or Obligations of the City. 4. The Agreement shall not be exclusive, and the City expressly reserves its rights to carry out other public capital improvements and programs as provided for by law and to issue other obligations for those purposes. 5. The City shall have the right to withdraw from the Authority, which withdrawal shall become effective thirty (30) days after a resolution adopted by the City Council of the City is received by the Authority, except that the Authority's rights and authorizations may be terminated by the Coachella Valley Association of Governments pursuant to the terms of the Administration Agreement referenced in the Resolutions. 6. Section 4(d) of the Agreement authorizes the Board to add an Associate Member by an affirmative vote of the Board with such rights, privileges, and responsibilities established from time to time by the Board. Accordingly, through the affirmative vote of the Board to add City as an Associate Member, the Authority hereby agrees to such the terms and conditions contained in The Authority PACE Programs are (i)a financing program authorized under Chapter 29 of the Improvement Bond Act of 1911,being Division 7 of the California Streets and Highways Code;and(ii)a financing program authorized under the Mello-Roos Community Facilities Act,set forth in sections 53311 through 53368.3 of the California Government Code,and particularly in accordance with Sections 53313.5(1)and 53328.1(a). Amended Signature Page JPA Assoc. Member(CVAG) CONTRACT NO. C36240 this JPA Addendum and the Resolutions; provided, no future change to the Agreement shall be effective without compliance with paragraph 2 of this Addendum. 7. By its signature below, the Authority agrees to be bound by this JPA Addendum, and it further agrees that the Authority shall not challenge, in a court of law or otherwise, the validity, legality, and enforceability of this JPA Addendum. [Signatures on following page] Amended Signature Page JPA Assoc. Member(CVAG) CONTRACT NO. C36240 GOLDEN STATE FINANCE AUTHORITY AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT (Original date July 1, 1993 and as last amended and restated May 5, 2015) SIGNATURE PAGE FOR NEW ASSOCIATE MEMBERS WITH ASSOCIATE MEMBERSHIP TERMS AND CONDITIONS FOR CITY OF PALM DESERT (continued) CITY OF By: Dated: City Manager ATTEST: By: City Clerk ACKNOWLEDGED AND AGREED: By: Name: Golden State Finance Authority 1215 K Street, Suite 1650 Sacramento, CA 95814 Amended Signature Page JPA Assoc.Member(CVAG) 82671.000009603861.I