HomeMy WebLinkAboutAdopt Resolution Nos. 2015-07 and 2015-08 Approving Associat r.
Dept. ID AD 15-002 Page 1 of 5
Meeting Date: 03/16/15
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CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 03/16/15
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Ken Domer, Assistant City Manager
SUBJECT: Adopt Resolution Nos. 2015-07 and 2015-08 Approving Associate Membership
in the California Enterprise Development Authority (CEDA) and Consenting to
the Inclusion of Properties within the City's Jurisdiction in the Figtree and
CalifomiaFIRST Properly Assessed Clean Energy(PACE) Financing Programs
Statement of Issue:
City Council previously approved membership in the Home Energy Renovation Program (HERO)
which simplified the process of financing energy and water efficiency measures for Huntington
Beach property owners. On March 2, 2015 staff requested that Council approve two additional
property assessed clean energy programs (PACE); Figtree and CalifomiaFIRST. Property owners
are better served when multiple programs are allowed to operate.
At the March 2nd Council Meeting, Councilmember Delgleize pulled this item requesting staff
research the pros and cons of PACE financing. This Request for Council Action has been
revised to include more information on PACE loans and energy efficient programs available
to consumers.
New Information:
The Orange County Association of Realtors (OCAR) has taken a position opposing PACE
programs due to potential impacts to homeowners at the point of sale. OCARs main concern is that
PACE loans can take a Super Lien priority over first mortgages depending on the lender. To better
understand and address the real estate industry concerns, staff met with Councilmember Delgleize
and OCAR's Public Policy Advisor, Ron Kingston and Dave Stefanides via teleconference on
Friday, March 61'. Staff and OCAR representatives discussed the ramifications of a PACE loan at
the time of sale along with the pros and cons of this relatively new financing mechanism. PACE
financing is one of many options property owners are offered to finance efficiency measures.
Based on the phone call it was ultimately agreed upon that it is the responsibility of the property
owner to research and decide which financing mechanism best suits their needs and that the City
will provide a "menu" of programs one of which if approved are these two additional PACE financing
options.
Non-PACE Energy Efficiency Financing_Options
Prior to considering how to finance a project, property owners should first conduct a comprehensive
energy audit of their home. Huntington Beach property owners can learn more about energy audits
and building science through the Community Home Energy Retrofit Project (CHERP -
1-ittp://www.el-ierpliuntingionbeacii.net/). The goal of the CHERP program is to help homeowners
reduce the energy consumption of their homes by making effective whole-house energy efficiency
improvements. These audits include an assessment of all existing energy systems and the building
11B -543- Item 17. - I
Dept. ID AD 15-002 Page 2 of 5
Meeting Date: 03/16/15
envelope; a whole-house, total energy systems approach is used (taking into account energy
efficiency loading order). Contractors who conduct the audit are able to provide a comprehensive
report which identifies projects that will tighten-up a building envelope and identify other efficiency
measures (e.g. solar, turf removal, etc.) that could benefit the property. Once these projects are
identified, a property owner is now armed with the information to make informed decisions
regarding upgrade projects.
The biggest issue for those considering energy-efficient upgrades is usually the upfront costs. In
addition to PACE financing, residents can choose from a myriad of energy and water efficiency
rebate/financing options. The following are some options available to Huntington Beach property
owners:
➢ Single Family Loan Programs
➢ On-Bill Financing Repayment Programs
➢ Energy Efficient Mortgages
➢ FHA PowerSaver Loans
➢ PowerSaver Home Energy Upgrade
➢ SCE and Gas Company Rebate Programs
➢ Energy Upgrade California
➢ Federal Tax Credits
➢ Solar Programs
The City of Huntington Beach seeks to offer property owners a "menu" of options when it comes to
financing efficiency measures. In the end, it is up to the property owner to decide if a PACE style
loan or other mechanisms meets their needs.
3-2-15 Council Meeting RCA
Financial Impact:
There is no financial impact to the City.
Recommended Action:
A) Adopt Resolution 2015-07, "A Resolution of the City Council of the City of Huntington Beach,
California Approving Associate Membership by the City in the California Enterprise Development
Authority (CEDA); Authorizing and Directing the Execution of an Associate Membership Agreement
Relating to Associate Membership of the City in the Authority; Authorizing the City to Join the
Figtree Pace Program; Authorizing the California Enterprise Development Authority to Conduct
Contractual Assessment Proceedings and Levy Contractual Assessments Within the Territory of
the City of Huntington Beach; and Authorizing Related Actions;" and,
B) Adopt Resolution 2015-08, "Resolution Authorizing the City of Huntington Beach to Join the
CaliforniaFirst Program; Authorizing the California Statewide Communities Development Authority
to Accept Applications From Property Owners, Conduct Contractual Assessment Proceedings and
Levy Contractual Assessments Within the Incorporated Territory of the City; and Authorizing
Related Actions" in the CaliforniaFIRST PACE program to Finance Distributed Generation
Renewable Energy Sources, Energy and Water Efficiency Improvements; and,
C) Authorize the Mayor, on behalf of the City, to execute the Associate Membership Agreement
with California Enterprise Development Authority.
Item 17. - 2 HB -544-
Dept. ID AD 15-002 Page 3 of 5
Meeting Date: 03/16/15
Alternative Action(s):
Do not approve the recommended action and direct staff how to proceed.
Analysis:
California Assembly Bill (AB)811 and AB 474 authorize PACE financing whereby legislative bodies
may designate areas within which authorized public officials and willing property owners may enter
into voluntary contractual assessments for the purpose of financing the installation of distributed
generation renewable energy sources such as solar panels, energy efficiency improvements, and
water efficiency improvements that are permanently affixed to real property.
In April 2014, City Council approved Resolution No. 2014-14 consenting to the inclusion of
properties within the City's jurisdiction to enter into PACE financing through the Home Energy
Renovation Opportunity(HERO) program. According to statistics provided by HERO
administrators, as of January 2015, a total of 226 applications have been submitted by Huntington
Beach property owners for qualified improvement projects, 174 of which have been approved. To
date, the HERO program has funded 52 projects with a value of$1,074,679. This is a 75 percent
increase since December 2014.
All three providers (Figtree, CalifomiaFIRST, and HERO) use private sector capital to provide
property owners with funding. Property owners are best served when multiple PACE programs are
allowed to operate. While the core service provided by each of these companies appears to be
similar, each has a different approach that may make their business model more or less beneficial
to different property owners. Additionally, the interest rates offered by these companies will vary
over time, no different than identifying who provides the lowest interest rates on mortgages, auto
loans or any other loan available in the marketplace. The supply and demand of the marketplace
determines which companies offer the best services to meet the needs of Huntington Beach
property owners.
The benefits to property owners include:
➢ Access to funds for home improvement efficiency measures—In today's economic
environment, alternatives for property owners to finance renewable energy, energy
efficiency, and water conservation improvements may not be available. Therefore, many
property owners do not have options available to them to lower their utility costs.
➢ Savings — Renewable energy, energy efficiency, and water conservation improvements help
lower utility costs. In addition, the interest paid may be tax-deductible.
➢ Payment obligation is tied to the property — The debt does not need to be repaid when the
property is sold or transferred. The new owner assumes the obligation to repay the
remaining balance with the property taxes.
➢ Voluntary— Property owners choose to participate in the program at their own discretion.
➢ Repayment obligation matched to the useful life of the financed improvements— The length
of the financing is based on the expected useful life of the improvements, the term can
range from five (5) years to twenty-five (25) years.
➢ Prepayment Options— Property owners can pay off the assessments at any time; however,
there may be applicable prepayment penalties and the program administrators review these
terms with prospective participants.
➢ Property owner's personal credit is not involved— The amount financed is based on the
assessed value of the subject property and doesn't involve the borrowers' personal financial
rating or FICO score. Commercial property owners appreciate the "off-balance-sheet"
financing that does not impact their capacity to borrow for other business needs.
HB -545- Item 17. - 3
Dept. ID AD 15-002 Page 4 of 5
Meeting Date: 03/16/15
Increased Property Values — More efficient properties are typically worth more and sell more
quickly.
Improved Quality of Life— Property owners benefit from improvements, such as more
effective cooling provided by new air conditioning units and less outside noise when double-
paned windows are installed.
The benefits to the City include:
Increase in local jobs.
An increase in property values (energy efficient homes and buildings are valued higher than
those without efficiency measures).
An increase in sales and property tax revenue.
As in conventional assessment financing,the City is not obligated to repay the bonds or to
pay any delinquent assessments levied on the participating properties.
All program and assessment administration, bond issuance, and bond administration
functions are the responsibility of the respective PACE program staff.
Little if any City staff time is needed to participate in the program.
Although the City could provide property owners with access to this type of financing by
establishing its own PACE program, it is quicker, easier, and much less expensive to join an
existing PACE program.
The Figtree PACE Program
Founded in 2011, the Figtree PACE Program is sponsored by CEDA, a joint powers authority. The
Figtree PACE Program concentrates on commercial, industrial, retail, and multi-family properties.
To date, Figtree has provided $5 million in PACE financing to California commercial property
owners. The proposed resolution enables the Figtree PACE Program to be made available to
owners of property within the City to finance energy and water efficiency improvements.
The CalifomiaFIRST PACE Program
Founded in 2009, the CaliforniaFIRST PACE Program was created and approved by the California
Statewide Community Development Authority(CSCDA). The City is currently a member of this
Joint Powers Authority. The commercial portion of CalifomiaFirst went live in 2012 and to date, has
provided $3 million in PACE financing to California residential property owners. The proposed
resolution enables CalifomiaFIRST PACE Program to be made available to owners of property
within the City to finance energy and water efficiency improvements.
Environmental Status:
Not applicable. Each respective Joint Powers Authority serves as the lead agency under the
California Environmental Quality Act.
Strategic Plan Goal:
Enhance economic development.
Attachment(s):
1. Resolution 2015-07,"A Resolution of the City Council of the City of Huntington Beach,
California Approving Associate Membership by the City in the California Enterprise
Development Authority(CEDA); Authorizing and Directing the Execution of an Associate
Membership Agreement Relating to Associate Membership of the City in the Authority;
Authorizing the City to Join the Figtree Property Assessed Clean Energy Program;
Item 17. - 4 1413 -546-
Dept. ID AD 15-002 Page 5 of 5
Meeting Date: 03/16/15
Authorizing CEDA to Conduct Contractual Assessments within the Territory of the City of
Huntington Beach; and Authorizing Related Actions."
2. Adopt Resolution 2015-08, "A Resolution of the City Council of the City of Huntington Beach
Consenting to the Inclusion of Properties within the City's Jurisdiction in the CaliforniaFIRST
PACE program to Finance Distributed Generation Renewable Energy Sources, Energy and
Water Efficiency Improvements."
3. Associate Membership Agreement
14B -547- Item 17. - 5
Dept. ID AD-15-002 Page 1 of 3
Meeting Date:3/2/2015
re
CITY OF HUNTINGTON BEACH
, j4,a• ; REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 3/2/2015
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Ken Domer, Assistant City Manager
SUBJECT: Adopt Resolution Nos. 2015-07 and 2015-08 Approving Associate Membership
in the California Enterprise Development Authority (CEDA) and Consenting to
the Inclusion of Properties within the City's Jurisdiction in the Figtree and
CaliforniaFIRST Property Assessed Clean Energy (PACE) Financing Programs
Statement of Issue:
City Council previously approved membership in the Home Energy Renovation Program (HERO)
which simplified the process of financing energy and water efficiency measures for Huntington
Beach property owners. Staff is requesting that Council approve two additional Property Assessed
Clean Energy (PACE) programs; Figtree and CaliforniaFIRST. Property owners are better served
when multiple programs are allowed to operate.
Financial Impact:
There is no financial impact to the City.
Recommended Action:
A) Adopt Resolution 2015-07, "A Resolution of the City Council of the City of Huntington
Beach, California Approving Associate Membership by the City in the California Enterprise
Development Authority (CEDA); Authorizing and Directing the Execution of an Associate
Membership Agreement Relating to Associate Membership of the City in the Authority;
Authorizing the City to Join the Figtree Pace Program; Authorizing the California Enterprise
Development Authority to Conduct Contractual Assessment Proceedings and Levy
Contractual Assessments Within the Territory of the City of Huntington Beach; and
Authorizing Related Actions;" and,
B) Adopt Resolution 2015-08, "Resolution Authorizing the City of Huntington Beach to Join the
CaliforniaFirst Program; Authorizing the California Statewide Communities Development
Authority to Accept Applications From Property Owners, Conduct Contractual Assessment
Proceedings and Levy Contractual Assessments Within the Incorporated Territory of the
City; and Authorizing Related Actions" in the CaliforniaFIRST PACE program to Finance
Distributed Generation Renewable Energy Sources, Energy and Water Efficiency
Improvements; and,
C) Authorize the Mayor, on behalf of the City, to execute the Associate Membership Agreement
with California Enterprise Development Authority.
Alternative Action(s):
Do not approve the recommended action and direct staff how to proceed.
HB -25- Item 4. - I
Dept. ID AD-15-002 Page 2 of 3
Meeting Date:3/2/2015
Analysis:
California Assembly Bill (AB) 811 and AB 474 authorize PACE financing whereby legislative bodies
may designate areas within which authorized public officials and willing property owners may enter
into voluntary contractual assessments for the purpose of financing the installation of distributed
generation renewable energy sources such as solar panels, energy efficiency improvements, and
water efficiency improvements that are permanently affixed to real property.
In April 2014, City Council approved Resolution No. 2014-14 consenting to the inclusion of
properties within the City's jurisdiction to enter into PACE financing through the Home Energy
Renovation Opportunity (HERO) program. According to statistics provided by HERO
administrators, as of January 2015 there were 226 applications submitted by Huntington Beach
property owners for improvement projects, 174 of which were approved to date. To date, the
HERO program has funded 52 projects with a value of $1,074,679. This is a 75 percent increase
since December 2014.
All three providers (Figtree, CaliforniaFIRST, and HERO) use private sector capital to provide
property owners with funding. Property owners are best served when multiple PACE programs are
allowed to operate. While the core service provided by each of these companies appears to be
similar, each has a different approach that may make their business model more or less beneficial
to different property owners. Additionally, the interest rates offered by these companies will vary
over time, no different than identifying who provides the lowest interest rates on mortgages, auto
loans or any other loan. The supply and demand of the marketplace determines which companies
offer the best services to meet the needs of Huntington Beach property owners.
The benefits to property owners include:
➢ Access to funds for home improvement efficiency measures— In today's economic
environment, alternatives for property owners to finance renewable energy, energy
efficiency, and water conservation improvements may not be available. Therefore, many
property owners do not have options available to them to lower their utility costs.
➢ Savings — Renewable energy, energy efficiency, and water conservation improvements help
lower utility costs. In addition, the interest paid may be tax-deductible.
➢ Payment obligation is tied to the property — The debt does not need to be repaid when the
property is sold or transferred. The new owner assumes the obligation to repay the
remaining balance with the property taxes.
➢ Voluntary— Property owners choose to participate in the program at their own discretion.
➢ Repayment obligation matched to the useful life of the financed improvements — The length
of the financing is based on the expected useful life of the improvements, the term can
range from five (5) years to twenty-five (25) years.
➢ Prepayment Options — Property owners can pay off the assessments at any time. However,
there may be applicable prepayment penalties and the program administrators review these
terms with prospective participants.
➢ Property owner's personal credit is not involved — The amount financed is based on the
assessed value of the subject property and doesn't involve the borrowers' personal financial
rating or FICO score. Commercial property owners appreciate the "off-balance-sheet"
financing that does not impact their capacity to borrow for other business needs.
➢ Increased Property Values — More efficient properties are typically worth more and sell more
quickly.
➢ Improved Quality of Life — Property owners benefit from improvements, such as more
effective cooling provided by new air conditioning units and less outside noise when double-
paned windows are installed.
The benefits to the City include:
Item 4. - 2 HB -26-
Dept. ID AD-15-002 Page 3 of 3
Meeting Date:3/2/2015
➢ Increase in local jobs.
➢ An increase in property values (energy efficient homes and buildings are valued higher than
those without efficiency measures).
➢ An increase in sales and property tax revenue.
➢ As in conventional assessment financing, the City is not obligated to repay the bonds or to
pay any delinquent assessments levied on the participating properties.
➢ All program and assessment administration, bond issuance, and bond administration
functions are the responsibility of the respective PACE program staff.
➢ Little, if any, City staff time is needed to participate in the program.
Although the City could provide property owners with access to this type of financing by
establishing its own PACE program, it is quicker, easier, and much less expensive to join an
existing PACE program.
The Figtree PACE Program
Founded in 2011, the Figtree PACE Program is sponsored by CEDA, a joint powers authority. The
Figtree PACE Program concentrates on commercial, industrial, retail, and multi-family properties.
To date, Figtree has provided $5 million in PACE financing to California commercial property
owners. The proposed resolution enables the Figtree PACE Program to be made available to
owners of property within the City to finance energy and water efficiency improvements.
The CaliforniaFIRST PACE Program
Founded in 2009, the CaliforniaFIRST PACE Program was created and approved by the California
Statewide Community Development Authority (CSCDA). The City is currently a member of this
Joint Powers Authority. The commercial portion of CaliforniaFirst went live in 2012 and to date, has
provided $3 million in PACE financing to California residential property owners. The proposed
resolution enables CaliforniaFIRST PACE Program to be made available to owners of property
within the City to finance energy and water efficiency improvements.
Environmental Status:
Not applicable. Each respective Joint Powers Authority serves as the lead agency under the
California Environmental Quality Act.
Strategic Plan Goal:
Improve the City's infrastructure and Enhance Economic Development
Attachment(s):
1. Resolution 2015-07, "A Resolution of the City Council of the City of Huntington Beach, California
Approving Associate Membership by the City in the California Enterprise Development Authority
(CEDA); Authorizing and Directing the Execution of an Associate Membership Agreement
Relating to Associate Membership of the City in the Authority; Authorizing the City to Join the
Figtree Pace Program; Authorizing the California Enterprise Development Authority to Conduct
Contractual Assessment Proceedings and Levy Contractual Assessments Within the Territory of
the City of Huntington Beach; and Authorizing Related Actions"
2. Resolution 2015-08, "Resolution Authorizing the City of Huntington Beach to Join the
CaliforniaFirst Program; Authorizing the California Statewide Communities Development Authority
to Accept Applications From Property Owners, Conduct Contractual Assessment Proceedings and
Levy Contractual Assessments Within the Incorporated Territory of the City; and Authorizing
Related Actions.
3. Associate Membership Agreement
H$ -27- Item 4. - 3
ATT�►CH
II� 1
RESOLUTION NO. 2015-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH APPROVING ASSOCIATE MEMBERSHIP BY
THE CITY IN THE CALIFORNIA ENTERPRISE DEVELOPMENT
AUTHORITY; AUTHORIZING AND DIRECTING THE EXECUTION OF
AN ASSOCIATE MEMBERSHIP AGREEMENT RELATING TO
ASSOCIATE MEMBERSHIP OF THE CITY IN THE AUTHORITY;
AUTHORIZING THE CITY TO.LOIN THE FIGTREE ACE PROGRAM;
AUTHORIZING THE CALIFORNIA ENTERPRIS EVELOPMENT
AUTHORITY TO CONDUCT CONTRACTUA ASSESSMENT
PROCEEDINGS AND LEVY CONTRACTUAL AS ESSMENTS WITHIN
THE TERRITORY OF THE CITY OF HUNTI TON BEACH; AND
AUTHORIZING RELATED A TIONS
WHEREAS, the City of Hunti/ishto
each, alifornia (the "City"), is a municipal
corporation, duly organized and existinthe nstitution and the laws of the State of
California; and
The City, upon authorization of t ncil, may pursuant to Chapter 5 of Division
7 of Title 1 of the Government Code of of California, commencing with Section 6500
(the "JPA Law") enter into a joint exerciveers agreement with one or more other public
agencies pursuant to which such contracies may jointly exercise any power common to
them; and
The City and other public agencito jointly participate in economic development
financing programs for the benefit of bu and nonprofit entities within their jurisdictions
offered by membership in the California Enterprise Development Authority (the "Authority")
pursuant to an associate m/ee
agreement and Joint Exercise of Powers Agreement
Relating to the California Entelopment Authority (the "Agreement"); and
Under the JPA Law aement, the Authority is a public entity separate and apart
from the parties to the Agreehe debts, liabilities and obligations of the Authority will
not be the debts, liabilities or of the City or the other members of the Authority; and
The form of Associatep Agreement (the "Associate Membership Agreement")
between the City and the A �hority is attached; and
The City is Willi to become an Associate Member of the Authority subject to the
provisions of the Associ to Membership Agreement; and
The California�° nterprise Development Authority ("CEDA") is a joint exercise of powers
authority, comprised of cities and counties in the State of California, including the City of
Huntington Beach (the "City"); and
15-4530/116361FAm �
Resolution 2015-07
CEDA has adopted the Figtree Property Assessed Clean Energy (PACE) and Job
Creation Program (the "Program" or "Figtree PACE"), 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 th Streets &
Highways Code ("Chapter 29"), and the issuance of improvement bonds or other vidences of
indebtedness (the "Bonds") under the Improvement Bond Act of 1915 (Streets nd Highways
Code Sections 8500 et seq.) (the "1915 Act") upon the security of the un aid contractual
assessments; and
Chapter 29 provides that assessments may be levied under its pro ji'sions only with the
free and willing consent of the owner of each lot or parcel on which an 57sessment is levied at
the time the assessment is levied; and j
t
The City desires to allow the owners of property ("Participating Parcel") within its
jurisdiction ("Participating Property Owners") to participate in Figtree PACE, and to allow
CEDA to conduct assessment proceedings under Chapter 29 and to issue Bonds under the 1915
Act to finance the Improvements; and
CEDA will conduct assessment proceedings under Chapter 29 to establish an assessment
district (the "District') and issue Bonds under the 1915 A,/cvto finance Improvements; and
There has been presented at this meeting a proposed form of Resolution of Intention to be
adopted by CEDA in connection with such assessme proceedings (the "ROI"), a copy of which
is attached hereto as Exhibit A; and
Said ROI sets forth the territory within hich assessments may be levied for Figtree
PACE which territory shall be coterminous w' the City's official boundaries of record at the
time of adoption of the ROI (the "Boundaries" ; and
Pursuant to Chapter 29, the City a thorizes CEDA to conduct assessment proceedings,
levy assessments, pursue remedies in the vent of delinquencies, and issue bonds or other forms
of indebtedness to finance the Improve ents in connection with Figtree PACE; and
To protect the City in conne tion with operation of the Figtree PACE program, Figtree
Energy Financing, the program a7nsible
'nistrator, has agreed to defend and indemnify the City; and
The City will not be res for the conduct of any assessment proceedings, the levy
of assessments, any required r medial action in the case of delinquencies, the issuance, sale or
administration of the bonds or other indebtedness issued in connection with Figtree PACE.
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows: ,�
i
Section 1. The City Council hereby specifically finds and declares that the actions
authorized hereby constitute public affairs of the City. The City Council further finds that the
r
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15-4530/116361.doc
Resolution 2015-07
statements, findings and determinations of the City set forth in the preambles abov are true and
correct.
Section 2. The Associate Membership Agreement presented to thisImeeting and on
file with the City Clerk is hereby approved. The Mayor of the City, the City,/�4anager, the City
Clerk and other officials of the City are each hereby authorized and directed,/for and on behalf of
the City, to execute and deliver the Associate Membership Agreement in substantially said form,
with such changes therein as such officer may require or approve,%such approval to be
conclusively evidenced by the execution and delivery thereof.
Section 3. The officers and officials of the City are hereby authorized and directed,
jointly and severally, to do any and all things and to execute and deliver any and all documents
which they may deem necessary or advisable in order to consummate, carry out, give effect to
and comply with the terms and intent of this resolution and the Associate Membership
Agreement. All such actions heretofore taken by such/officers and officials are hereby
confirmed, ratified and approved. /
r
Section 4. Good Standing. The City is either/a municipal corporation or other public
body and a member of CEDA in good standin/dCEDA
Section 5. Public Benefits. On treof, the City Council hereby finds and
determines that the Program and issuance of in connection with Figtree PACE
will provide significant public benefits, incluut limitation, savings in effective interest
rates, bond preparation, bond underwriting assuance costs and reductions in effective
user charges levied by water and electricity roviders within the boundaries of the City.
Section 6. Appointment of XEDA. The City hereby appoints CEDA as its
representative to (i) record the assess ent against the Participating Parcels, (ii) administer the
District in accordance with the Impr i vement Act of 1915 (Chapter 29 Part 1 of Division 10 of
the California Streets and Highway Code (commencing with Section 8500 et seq.) (the "Law"),
(iii) prepare program guidelines . or the operations of the Program and (iv) proceed with any
claims, proceedings or legal acti- ns as shall be necessary to collect past due assessments on the
properties within the District accordance with the Law and Section 6509.6 of the California
Government Code. The City s not and will not be deemed to be an agent of Figtree or CEDA as
a result of this Resolution.
Section 7. Assessment Proceedings. In connection with Figtree PACE, the City
hereby consents to the special assessment proceedings by CEDA pursuant to Chapter 29 on any
property within the Boundaries and the issuance of Bonds under the 1915 Act, provided that:
(1) Such,proceedings are conducted pursuant to one or more Resolutions of Intention
in substantially the form of the ROI;
(2) The Participating Property Owners, who shall be the legal owners of such
property, voluntarily execute a contract pursuant to Chapter 29 and comply with
3 E
15-4530/116361.doc
Resolution 2015-07
other applicable provisions of California law in order to accomplish the valid levy
of assessments; and
(3) The City will not be responsible for the conduct of any asse,sment proceedings,
the levy of assessments, any required remedial action in the case of delinquencies
in such assessment payments, or the issuance, sale or ad =nistration of the Bonds
in connection with Figtree PACE.
Section 8. Program Report. The City Council ereby acknowledges that
pursuant to the requirements of Chapter 29, CEDA has prepared/ande will update from time to
time the "Program Report" for Figtree PACE (the "Program Repprt") and associated documents,
and CEDA will undertake assessment proceedings and the fi�ancing of Improvements as set
forth in the Program Report.
Section 9. Foreclosure. The City Council hereby acknowledges that the law
permits foreclosure in the event that there is a default inAhe payment of assessments due on a
property. The City Council hereby designates CEDA/as its representative to proceed with
collection and foreclosure of the liens on the defaulting properties within the District, including
accelerated foreclosure pursuant to the Program Report.
Section 10. Indemnification. The City Council acknowledges that Figtree has
provided the City with an indemnification agree ent, as shown in Exhibit B, for negligence or
malfeasance of any type as a result of the acts ior omissions of Figtree, its officers, employees,
subcontractors and agents. The City Councilil ereby authorizes the appropriate officials and staff
of the City to execute and deliver the Indemnification Agreement to Figtree.
Section 11. City Contact Designation. The appropriate officials and staff of the
City are hereby authorized and directed to make applications for Figtree PACE available to all
property owners who wish to finance Improvements. The following staff persons, together with
any other staff designated by the City Manager from time to time, are hereby designated as the
contact persons for CEDA in connection with Figtree PACE: Fred Wilson, City Manager, 2000
Main Street, Huntington Beach;MCA 92648.
Section 12. CEQA� The City Council hereby finds that adoption of this Resolution
is not a "project" under the California Environmental Quality Act ("CEQA"), 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)).
t
Section 13. Effective Date. 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 Figtree Energy Financing.
Section 14. Costs. Services related to the formation and administration of the
assessment district will be provided by CEDA at no cost to the City.
4
15-4530/116361.doc
l
Resolution 2015-07
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the day of , 2015.
Mayor
REVIEWED AND APPROVED: APPROVED" 1�I?
City Manager it Attorney j gNy1 ; aDKA
NI 4-T�ED A D AP OVED:
rill,
nt City Manager
fo-
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i'
t
5
15-4530/116361.doc
Exhibit A
RESOLUTION OF THE CALIFORNIA ENTERPRISE DEVELOPMENT
AUTHORITY DECLARING INTENTION TO FINANCE INSTALLATION
OF DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES,
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ENERGY EFFICIENCY AND WATER EFFICIENCY IMPROVEMENTS
IN THE CITY OF HUNTINGTON BEACH
WHEREAS, the California Enterprise Development Authority ("CEDA") is a joint powers
authority organized and existing pursuant to the Joint Powers Act (Government Code Section
6500 et seq.) and that certain Joint Exercise of Powers Agreement (the,"Agreement") dated as of
June 1, 2006, among the cities of Eureka, Lancaster and Selma; and
WHEREAS, CEDA is authorized under the Agreement and Chapter 5 of Division 7 of Title 1 of
the Government Code of the State of California and in accordance with Chapter 29 of Part 3 of
Division 7 of the Streets & Highways Code of the State of California("Chapter 29") to authorize
assessments to finance the installation of distributed generation renewable energy sources,
energy efficiency and water efficiency improvements that are permanently fixed to real property
("Authorized Improvements"); and
WHEREAS, CEDA has obtained authorization from the City of Huntington Beach (the "City")
located in the County of Orange (the "County") to conduct assessment proceedings and to enter
into contractual assessments to finance the installation of Authorized Improvements within the
jurisdictional boundaries of the City pursuant to Chapter 29; and
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WHEREAS, CEDA desires to declare its intention to establish a Figtree PACE program
("Figtree PACE") in the City, pursuant to which CEDA, subject to certain conditions set forth
below, would enter into contractual assessments to finance the installation of Authorized
Improvements in the City.
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NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY, AS FOLLOWS:
Section 1. Findings. The Board of Directors hereby finds and determines the following:
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If
(a) The above recitals/are true and correct and are incorporated herein by this
reference. ;
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(b) Energy and water conservation efforts, including the promotion of Authorized
Improvements;to residential, commercial, industrial, or other real property, are
necessary to address the issue of global climate change and the reduction of
greenhouse gas emissions in the City.
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(c) The upfront cost of making residential, commercial, industrial, or other real
property more energy and water efficient, along with the fact that most
commercial loans for that purpose are due on the sale of the property, prevents
many property owners from installing Authorized Improvements.
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(d) A public purpose will be served by establishing a contractual assessment program,
to be known as Figtree PACE, pursuant to which CEDA will finance the
installation of Authorized Improvements to residential, commercial, inddtrial, or
other real property in the City. 1�
Section 2. Determination of Public Interest. The Board of Dire°ctors hereby
determines that (a) it would be convenient, advantageous, and in the public inter
aest to designate
an area, which shall encompass the entire geographic territory within the boundaries of the City,
within which CEDA and property owners within the City may enter into contractual assessments
to finance the installation of Authorized Improvements pursuant to Chapter 29 and (b) it is in the
public interest for CEDA to finance the installation of Authorized Improvements in the City
pursuant to Chapter 29. r'
Section 3. Identification of Authorized Improvements. ,,CEDA hereby declares its
intention to make contractual assessment financing available to,property owners to finance
installation of Authorized Improvements, including but not limited to those improvements
detailed in the Report described in Section 8 hereof (the "Report''), as that Report may be
amended from time to time.
Section 4. Identification of Boundaries. Contractual assessments may be entered into
by property owners located within the entire geographic territory of the City.
Section 5. Proposed Financing Arrangements. Under Chapter 29, CEDA may issue
bonds, notes or other forms of indebtedness (the*"Bonds") pursuant to Chapter 29 that are
payable by contractual assessments. Division 10,,(commencing with Section 8500) of the Streets
& Highways Code of the State (the "Improvement Bond Act of 1915") shall apply to any
indebtedness issued pursuant to Chapter 29, insofar as the Improvement Bond Act of 1915 is not
in conflict with Chapter 29. The creditworthiness of a property owner to participate in the
financing of Authorized Improvements will be based on the criteria developed by Figtree Energy
Financing (the "Program Administratdr") upon consultation with Figtree PACE Program
underwriters or other financial representatives, CEDA general counsel and bond counsel, and as
shall be approved by the Board of Directors of CEDA. In connection with indebtedness issued
under the Improvement Bond Aceof 1915 that is payable from contractual assessments, serial
and/or term improvement bonds/or other indebtedness shall be issued in such series and shall
mature in such principal amounts and at such times (not to exceed 20 years from the second day
of September next following their date), and at such rate or rates of interest (not to exceed the
maximum rate permitted by applicable law) as shall be determined by Board of Directors at the
time of the issuance and sale of the indebtedness. The provisions of Part 11.1 of the
Improvement Bond Act of 1915 shall apply to the calling of the bonds. It is the intention of
CEDA to create a special reserve fund for the bonds under Part 16 of the Improvement Bond Act
of 1915. Neither CEDA, nor any of its members participating in the Figtree PACE Program,
shall advance available surplus funds from its treasury to cure any deficiency in the redemption
fund to be created with respect to the indebtedness; provided, however, that this determination
shall not prevent CEDA or any of its members from, in their sole discretion, so advancing funds.
The Bonds may be refunded under Division 11.5 of the California Streets and Highways Code or
other applicable laws permitting refunding, upon the conditions specified by and upon
determination of CEDA.
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CEDA hereby authorizes the Program Administrator, upon consultation with CEDA
general counsel, bond counsel and the Figtree PACE underwriter, to commend preparation of
documents and take necessary steps to prepare for the issuance of bonds, notes 6r other forms of
indebtedness as authorized by Chapter 29.
In connection with the issuance of bonds payable from contractual assessments, CEDA
expects to obligate itself, through a covenant with the owners of the bonds, to exercise its
foreclosure rights with respect to delinquent contractual assessment installments under specified
circumstances. ''
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Section 6. Public Hearing. Pursuant to the Act, CEDA`hereby orders that a public
hearing be held before CEDA Board (the "Board"), at 550 Bercut Drive, Suite G, Sacramento,
CA 95811, on , at A_, for the purposes of allowing interested persons to
object to, or inquire about, the proposed Figtree PACE Program. The public hearing may be
continued from time to time as determined by the Board for/a time not exceeding a total of 180
days.
At the time of the hearing, the Report described�in Section 8 hereof shall be summarized,
and the Board shall afford all persons who are present an opportunity to comment upon, object
to, or present evidence with regard to the proposed Figtree PACE Program, the extent of the area
proposed to be included within the boundaries of the assessment district, the terms and
conditions of the draft assessment contract described in Section 8 hereof(the "Contract"), or the
proposed financing provisions. Following the public hearing, CEDA may adopt a resolution
confirming the Report (the "Resolution ,Confirming Report") or may direct the Report's
modification in any respect, or may abandon the proceedings.
The Board hereby orders the publication of a notice of public hearing once a week for
two successive weeks. Two publications in a newspaper published once a week or more often,
with at least five days intervening,between the respective publication dates not counting such
publication dates, are sufficient., /'The period of notice will commence upon the first day of
publication and terminate at the4end of the fourteenth day. The first publication shall occur not
later than 20 days before the date of the public hearing.
Section 7. Notice to Water and Electric Providers. Pursuant to Section 5898.24 of the
Streets & Highways Code; written notice of the proposed contractual assessment program within
the City to all water and/electric providers within the boundaries of the City has been provided.
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Section 8. Report. The Board hereby directs the Program Administrator to prepare the
Report and file said`Report with the Board at or before the time of the public hearing described
in Section 6 hereof containing all of the following:
a) A map showing the boundaries of the territory within which contractual
assessments are proposed to be offered, as set forth in Section 4 hereof.
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b) A draft contractual assessment contract (the "Contract") specifying the terms and
conditions of the agreement between CEDA and a property owner within the City.
c) A statement of CEDA's policies concerning contractual assessments including all
of the following:
(1) Identification of types of Authorized Improvements that/may be financed
through the use of contractual assessments.
(2) Identification of the CEDA official authorized to enter into contractual
assessments on behalf of CEDA. P"
(3) A maximum aggregate dollar amount of contractual assessments.
(4) A method for setting requests from property owners for financing through
contractual assessments in priority order in the,;event that requests appear
likely to exceed the authorization amount.
d) A plan for raising a capital amount required to,:�"rpay for work performed in
connection with contractual assessments. The plan may include the sale of a bond
or bonds or other financing relationship pursuant to Section 5898.28 of Chapter
29. The plan (i) shall include a statement of, or method for determining, the
interest rate and time period during which contracting property owners would pay
any assessment, (ii) shall provide for any`'reserve fund or funds, and (iii) shall
provide for the apportionment of all or any portion of the costs incidental to
financing, administration and collection of the contractual assessment program
among the consenting property owners and CEDA.
e) A report on the results of the dscussions with the County Auditor-Controller
described in Section 10 hereof, concerning the additional fees, if any, that will be
charged to CEDA for inclusion of the proposed contractual assessments on the
general property tax roll of the County, and a plan for financing the payment of
those fees.
Section 9. Nature of Assessments. Assessments levied pursuant to Chapter 29, and the
interest and any penalties thereon, will constitute a lien against the lots and parcels of land on
which they are made, until they are paid. Unless otherwise directed by CEDA, the assessments
shall be collected in the same manner and at the same time as the general taxes of the County on
real property are payable, ands'ubject to the same penalties and remedies and lien priorities in the
event of delinquency and default.
Section 10. Consultations with County Auditor-Controller. CEDA hereby directs the
Program Administratopio enter into discussions with the County Auditor-Controller in order to
reach agreement on what additional fees, if any, will be charged to CEDA for incorporating the
proposed contractual`assessments into the assessments of the general taxes of the County on real
property.
Section/11. Preparation of Current Roll of Assessment. Pursuant to Section
5898.24(c), CEDA hereby designates the Program Administrator as the responsible party for
annually preparing the current roll of assessment obligations by assessor's parcel number on
property subject to a voluntary contractual assessment.
Section 12. Procedures for Responding to Inquiries. The Program Administrator shall
establish procedures to promptly respond to inquiries concerning current and future estimated
liability for a voluntary contractual assessment. ft,
Section 13. Effective Date. This resolution shall take effect immediately upon its
adoption. ��
PASSED AND ADOPTED this day of , 201_. ,y
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CALIFORNIAENTERPRISE
DEVELOPMENT AUTHORITY
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By.
Gurbax Sahota, Chair
ATTEST: f,
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Michelle Stephens, Secretary
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Exhibit B
INDEMNIFICATION AGREEMENT
BY AND BETWEEN
THE CITY OF HUNTINGTON BEACH AND
FIGTREE COMPANY,INC.
This Indemnification Agreement(the "Agreement") is entered into by and between the City of
Huntington Beach, a municipal corporation or political subdivision, duly organized and existing
under the laws of the State of California(the "Public Entity") and Figtree:Company, Inc., a
California corporation, the administrator of the Figtree Property Assessed Clean Energy and Job
Creation Program(the "Administrator"), which is a program of the California Enterprise
Development Authority, a California joint exercise of powers authority (the"Authority").
RECITALS
WHEREAS,the Authority is a joint exercise of powers authority whose members include
the Public Entity in addition to other cities and counties in the State of California; and
The Authority established the Figtree Property<Assessed Clean Energy and Job Creation
Program(the "Figtree PACE Program")to allow the financing of certain renewable energy,
energy efficiency and water efficiency improvements that are permanently affixed to real property
through the levy of assessments voluntarily agreed to by the participating property owners
pursuant to Chapter 29 of Division 7 of the Streets and Highways Code ("Chapter 29") and the
issuance of improvement bonds, or other forms of indebtedness, under the Improvement Bond Act
of 1915 upon the security of the unpaid assessments; and
The Authority has conducted or., ill conduct proceedings required by Chapter 29 with
respect to the territory within the boundaries of the Public Entity; and
The legislative body of thek=Public Entity adopted or will adopt a resolution authorizing the
Public Entity to join the FigtreeFPACE Program; and
The Public Entity wi11 not be responsible for the formation, operation and administration of
the Figtree PACE Program as well as the sale and issuance of any bonds or other forms of
indebtedness in connection therewith, including the conducting of assessment proceedings, the levy
and collection of assessments and any remedial action in the case of such assessment payments,
and the offer, sale and administration of any bonds issued by the Authority on behalf of the Figtree
PACE Program; and
The Administrator is the administrator of the Figtree PACE Program and agrees to
indemnify the Public Entity in connection with the operations of the Figtree PACE Program as set
forth herein:
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NOW,TIIERFOItE, in consideration of the above promises and of the Public Entity's
agreement to join the Figtree PACE Program, the parties agree as follows:
1 . Indemnification. Figtree has provided the CEDA with an indemnification for
negligence or malfeasance of any type as a result of the acts or omissions of Figtree, its officers,
employees, subcontractors and agents, arising from or related to the Figtree PACE Program, the
assessments, the assessment districts, the improvements or the financing and marketing thereof.
Figtree agrees to defend, indemnify and hold harmless the Public Entity, its,,'officers, elected or
appointed officials, employees, agents and volunteers from and against anyrand all actions, suits,
proceedings, claims, demands, losses, costs and expenses, including legal costs and attorneys' fees,
for injury or damage due to negligence or malfeasance of any type claims`as a result of the acts or
omissions of Figtree, except for such loss or damage which was caused by the sole negligence or
willful misconduct of the Public Entity. This indemnity shall apply, to all claims and liability
regardless of whether any insurance policies are applicable. The policy limits do not act as
limitation upon the amount of indemnification to be provided by Figtree.
a . Workers' Compensation Insurance - Pursuant?to California Labor Code Section
1861, Figtree acknowledges awareness of Section 3700 et seq. of this Code, which
requires every employer to be insured against liability for workers' compensation;
Figtree covenants that it will comply with such provisions prior to commencing
performance of the work hereunder. '
Figtree shall obtain and furnish to Public Entity workers' compensation and employer's
liability insurance in an amount ot less than the State statutory limits.
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Figtree shall require all subcontractors to provide such workers' compensation and
employer's liability insurance for all of the subcontractors' employees. Figtree shall
furnish to Public Entity a,'eertificate of waiver of subrogation under the terms of the
workers' compensation,and employer's liability insurance and Figtree shall similarly
require all subcontractors to waive subrogation.
b . General Liability Insurance — In addition to the workers' compensation and
employer's liability insurance and Figtree's covenant to defend, hold harmless and
indemnify Public Entity, Figtree shall obtain and furnish to Public Entity, a policy of
general public liability insurance, including motor vehicle coverage covering the
Project/Service. This policy shall indemnify Figtree, its officers, employees and agents
while acting with the scope of their duties, against any and all claims arising out or in
connection with the Project/Service, and shall provide coverage in not less than the
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following amount: combined single limit bodily injury and property damage, including
products/completed operations liability and blanket contractual liability, of One Million
Dollars ($1,000,000) per occurrence. If coverage is provided under a form which
includes a designated general aggregate limit, the aggregate limit must be no less than
One Million Dollars ($1,000,000) for this Project/Service. This policy shall name
Public Entity, its officers, elected or appointed officials, employees, agents, and
volunteers as Additional Insureds, and shall specifically provide that any other
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insurance coverage which may be applicable to the Project/Service shall be deemed
excess coverage and that Figtree's insurance shall be primary.
Under no circumstances shall said above-mentioned insurance contain a ,self-insured
retention. Any deductible in excess of$5,000 must be approved by Public/Entity.
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c . Automobile Liability Insurance — Figtree shall obtain and furnish for°Public Entity an
automotive liability insurance policy covering the work performed by it hereunder.
This policy shall provide coverage for Figtree's automotive liability in an amount not
less than One Million Dollars ($1,000,000) per occurrence and/a separate "Additional
Insured Endorsement" page listing both the policy number`,and naming the "City of
Huntington Beach, its officers, elected or appointed officials, employees, agents and
volunteers" as additional insured on the endorsement. The above mentioned insurance
shall not contain a self-insured retention, "deductible" or any other similar form of
limitation on the required coverage in excess of $1,000 without the express written
consent of Public Entity.
d . Certificate of Insurance — Prior to commencing performance of the work hereunder,
Figtree shall furnish to Public Entity a certificate of insurance subject to approval of the
City Attorney evidencing the foregoing insurance coverage as required by this
Agreement; the certificate shall:
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i. Provide the name and policy number of each carrier and policy;
ii. State that the policy isvcurrently in force; and
iii. Promise that such policy shall not be suspended, voided, or canceled by either
party, reduced in.e'overage or in limits except after thirty (30) days' prior written
notice; however, ten (10) days' prior written notice in the event of cancellation
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for nonpayment of premium.
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Figtree shallmaintain the foregoing insurance coverage in force until the work under
this Agreement is fully completed and accepted by the Public Entity.
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The requirement for carrying the foregoing insurance coverage shall not derogate
from Figtree's defense, hold harmless and indemnification obligations as set forth in
this Agreement. Public Entity or its representative shall at all times have the right to
,demand the original or a copy of the policy of insurance. Figtree shall pay, in
prompt and timely manner, the premiums on the insurance hereinabove required.
2. Amend ment/Internretation of this Agreement. This Agreement represents the
entire understanding of the parties as to those matters contained herein. No prior oral or written
understanding shall be of any force or effect with respect to those matters covered hereunder. No
supplement, modification or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto. This Agreement shall not be interpreted for or against any
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party by reason of the fact that such party may have drafted this Agreement or any of its
provisions.
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3. Section Readings. Section headings in this Agreement are includedifor convenience
of reference only and shall not constitute a part of this Agreement for any other purpose.
4. Waiver. No waiver of any of the provisions of this Agreement shall be binding
unless in the form of writing signed by the party against whom enforcemenVis sought, and no such
waiver shall operate as a waiver of any other provisions hereof(whether,or not similar), nor shall
such waiver constitute a continuing waiver. Except as specifically prodded herein, no failure to
exercise or any delay in exercising any right or remedy hereunder shalteconstitute a waiver thereof.
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5. Severability and Governing Law. If any provision or portion thereof of this
Agreement shall be held by a court of competent jurisdiction,,to be invalid, void, or otherwise
unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by
law. This Agreement shall be governed by and construedAand enforced in accordance with the
laws of the State of California applicable to contracts made`and to be performed in California.
6. Notices. All notices, demands and other communications required or permitted
hereunder shall be made in writing and shall be deemed to have been duly given if delivered by
hand, against receipt, or mailed certified or registered mail and addressed as follows:
If to the Administrator Figtree Company, Inc.
9915 Mira Mesa Blvd., Suite 130
San Diego, California 92131
'A Attn: Chief Executive Officer
If to the Public Entity:„F City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn: Antonia Graham
7. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed to be an original, which together shall constitute the same instrument.
8. Effecdive Date. This Agreement will be effective as of the date of the signature of
Public Entity's representative as indicated below in the signature block.
IN WITNESS HEREOF, the parties hereto duly executed this Agreement as of the date below.
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FIGTREE COMPANY, INC., CITY OF HUNTINGTON BEACH; r"
A California corporation a municipal corporation of the State of'California
By: 1
City Manager
print name
ITS: (circle one) Chairman/President/Vice
President APPROVED AS
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AND
City,/Attorney'`~0\cQ
By:
print name
ITS: (circle one) Secretary/Chief Financial
Officer/Asst. Secretary- Treasurer
r'ry
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ATTACHMENT #2
RESOLUTION NO. 2015-08
RESOLUTION AUTHORIZING THE CITY OF HUNTINGTON BEACH TO JOIN
THE CALIFORNIAFIRST PROGRAM; AUTHORIZING THE CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT
APPLICATIONS FROM PROPERTY OWNERS, CONDUCT CONTRACTUAL
ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS
WITHIN THE INCORPORATED TERRITORY OF THE CITY;
AND AUTHORIZING RELATED ACTIONS
WHEREAS,the California State Nrid Communities Development Authority ("California
Communities") is a joint exercise of power authority, the members of which include numerous
cities and counties in the State of California, including the City of Huntington Beach(the
"City"); and
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California Communities has established the CaliforniaFIRST program (the
"CaliforniaFIRST Program") and will/provide financing for certain improvements authorized by
Chapter 29 of Division 7 of the Streets & Highways Code ("Chapter 29"), including, but not
limited to, renewable energy, energy efficiency and water efficiency improvements and seismic
strengthening 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 bondX00
ythe `Bonds")under the Improvement Bond Act of 1915 (Streets
and Highways Code Sections and following) (the "1915 Act') upon the security of the
unpaid contractual assessments; and
Chapter 29 provide that assessments may be levied under its provisions only with the
free and willing consent : the owner of each lot or parcel on which an assessment is levied at
the time the assessment's levied; and
The City des' s to allow the owners of property ("Participating Property Owners")
within the incorpora eed territory of the City to participate in the CaliforniaFIRST Program and to
allow California 9mmunities 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;aid
Califo 'a Communities will conduct assessment proceedings under Chapter 29 and issue
Bonds unde the 1915 Act to finance Improvements;
Thee 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 CaliforniaFIRST Program:
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15-4530/116358.doc
Resolution 2015-08
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows: `
Section 1. 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 2. In connection with the CaliforniaFIRST 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
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(2) The City will not be responsible for therconduct of any assessment proceedings;
the levy or collection of assessments or any required remedial action in the case of
delinquencies in such assessment payments;rlor the issuance, sale or administration of the
Bonds or any other bonds issued in connection with the CaliforniaFIRST 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 legalUligations of California Communities.
Section 3. 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.
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Section 4. The appropriate officials and staff of the City are hereby authorized and
directed to make applications fcd the CaliforniaFIRST program available to all property owners
who wish to finance Improvements; provided, that California Communities shall be responsible
for providing such applications and related materials at its own expense. The following staff
persons, together with any,&her staff persons chosen by the City Manager from time to time, are
hereby designated as the contact persons for California Communities in connection with the
CaliforniaFIRST Program: Antonia Graham, Senior Administrative Analyst.
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.
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15-4530/116358.doc
Resolution 2015-08
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. This Resolution shall take effect immediately up its adoption. The City
Clerk is hereby authorized and directed to transmit a certified copy this resolution to the
Secretary of California Communities.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the day of �` , 2015.
Mayor
REVIEWED AND APPROVED: APPROVED O F
City Manager " Ci Attorney �VJA`\S 0 0
IT fED AN ROVED:
d A n CityManager
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15-4530/116358.doc
ATTACHMENT #3
ASSOCIATE MEMBERSHIP AGREEMENT
by and between the
CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY
and the
CITY OF HUNTINGTON BEACH, CALIFORNIA
THIS ASSOCIATE MEMBERSHIP AGREEMENT (this "Associate Membership
Agreement"), dated as of March 2, 2015 by and between CALIFORNIA ENTERPRISE
DEVELOPMENT AUTHORITY (the "Authority") and the CITY OF HUNTINGTON BEACH,
CALIFORNIA, a municipal corporation, duly organized and existing under the laws of the State
of California(the "City");
WITNESSETH:
WHEREAS, the Cities of Selma, Lancaster and Eureka (individually, a "Member" and
collectively, the "Members"), have entered into a Joint Powers Agreement, dated as of June 1,
2006 (the "Agreement"), establishing the Authority and prescribing its purposes and powers; and
The Agreement designates the Executive Committee of the Board of Directors and the
President of the California Association for Local Economic Development as the initial Board of
Directors of the Authority; and
The Authority has been formed for the purpose, among others, to assist for profit and
nonprofit corporations and other entities to obtain financing for projects and purposes serving the
public interest; and
The Agreement permits any other local agency in the State of California to join the
Authority as an associate member(an "Associate Member"); and
The City desires to become an Associate Member of the Authority; and
The City Council of the City has adopted a resolution approving the Associate
Membership Agreement and the execution and delivery thereof, and
The Board of Directors of the Authority has determined that the City should become an
Associate Member of the Authority,
NOW, THEREFORE, in consideration of the above premises and of the mutual promises
herein contained, the Authority and the City do hereby agree as follows:
14-4454.001/117257 1
Section 1. Associate Member Status. The City is hereby made an Associate Member
of the Authority for all purposes of the Agreement and the Bylaws of the Authority, the
provisions of which are hereby incorporated herein by reference. From and after the date of
execution and delivery of this Associate Membership Agreement by the City and the Authority,
the City shall be and remain an Associate Member of the Authority.
Section 2. Restrictions and Rights of Associate Members. The City shall not have
the right, as an Associate Member of the Authority, to vote on any action taken by the Board of
Directors or by the Voting Members of the Authority. In addition, no officer, employee or
representative of the City shall have any right to become an officer or director of the Authority
by virtue of the City being an Associate Member of the Authority.
Section 3. Effect of Prior Authority Actions. The City hereby agrees to be subject to
and bound by all actions previously taken by the Members and the Board of Directors of the
Authority to the same extent as the Members of the Authority are subject to and bound by such
actions.
Section 4. No Obligations of Associate Members. The debts, liabilities and
obligations of the Authority shall not be the debts, liabilities and obligations of the City.
Section 5. Execution of the Agreement. Execution of this Associate Membership
Agreement and the Agreement shall satisfy the requirements of the Agreement and Article XII of
the Bylaws of the Authority for participation by the City in all programs and other undertakings
of the Authority.
14-4454.001/117257 2
IN WITNESS WHEREOF, the parties hereto have caused this Associate Membership
Agreement to be executed and attested by their proper officers thereunto duly authorized, on the
day and year first set forth above.
CALIFORNIA ENTERPRISE
DEVELOPMENT AUTHORITY
By:
Gurbax Sahota, Chair
Board of Directors
Attest:
Michelle Stephens, Asst. Secretary
CITY OF HUNTINGTON BEACH,
CALIFORNIA
By:
Jill Hardy, Mayor
City Council
Attest:
Joan Flynn, City Clerk
Initiated and Approve
By
en Domer, Assis ant City Manager
Approved as to Form:
By. ichael E. Gates, City Attorney op
Reviewed and Approved:
By:
Fred Wilson, City Manager
14-4454.001/117257 3
3/16/2015
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■ Presented on March 2,
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■ Staff met with II
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Councilmember
Delgleize and Ih
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representatives of the Aft
Orange Countyp
Association of Realtors ������
(OCAR) via
teleconference
SUPPLEMENTAL
M,'eeting Date:
Agenda Item No. 1
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Antonia Graham, antonia.graham(a�surfcity-
hb.ori or (714) 536-5537
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