11 Staff Report - Californiafrist Programr
DATE:
TO:
FROM:
COUNCIL AGENDA REPORT
January 5, 2010
MAYOR AND TOWN COUNCIL
GREG LARSON, TOWN MANAGER
MEETING DATE: 1/19/10
ITEM NO:
SUBJECT: ADOPT RESOLUTIONS REGARDING THE CALIFORNIAFIRST PROGRAM
RECOMMENDATION:
1. Open and hold a public hearing and receive public testimony.
2. Close the public hearing.
3. Adopt the following resolutions regarding the CaliforniaFIRST program:
a. Resolution of the Town Council of the Town of Los Gatos Authorizing the Town
of Los Gatos 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 Territory of the Town of Los Gatos; and
Authorizing Related Actions (Attachment 1)
b. Resolution of the Town Council of the Town of Los Gatos Authorizing
Sacramento County to Submit a Collaborative Application on its Behalf to the
California Energy Commission for State Energy Program Funds for the
CaliforniaFIRST Program (Attachment 2)
BACKGROUND:
Recent state legislation, such as AB811, and federal interest in PACE (Property Assessed Clean
Energy) programs, has created the possibility of new financing opportunities aimed primarily,
but not exclusively, at residential energy retrofits and renewable energy systems. If a county
provides a PACE program, homeowners within that county are able to finance retrofits and solar
installations through property assessments that are then paid for through their annual property
taxes. The assessments are based on property value, not personal credit, and the debt remains
with the house if it is sold, not with the owner who financed the retrofit or solar installation.
AB811 is the legislation making it possible for California municipalities to implement such a
program.
PREPARED BY:
Regina A. Fa 41 '
Community :- \ s Director
C:\Documents and Settings\mdudley\Desktop\CalifomiaFIRST ioining.doc
ll
Reviewed by: ' Assistant Town Manager (Q, own Attorney
Clerk Administrator Finance Community Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTIONS REGARDING THE CALIFORNIAFIRST PROGRAM
January 5, 2010
Federal stimulus money has been directed to the California Energy Commission (CEC) for
distribution. The CEC has set up a grant process for $93 million that will be distributed
statewide for three types of State Energy Programs (SEPs): SEP1, covering PACE programs;
SEP 2, covering residential retrofit programs; and SEP 3, covering commercial or municipal
programs.
DISCUSSION:
CaliforniaFIRST is a PACE program being launched by California Communities (also known
as the California Statewide Communities Development Authority, or CSCDA) a joint powers
authority sponsored by the League of California Cities and the California State Association of
Counties. The member agencies of California Communities include all 58 counties and more
than 400 other local agencies throughout California.
The pilot CaliforniaFIRST program will allow homeowners in participating cities and counties
to finance renewable energy, energy efficiency, and water efficiency improvements on their
properties. 14 counties have expressed interest in participating in the pilot program. When a
homeowner chooses to participate, the improvements on his or her property would be financed
by the issuance of bonds by California Communities. California Communities would then levy
a "contractual assessment" on the owner's property to repay those bonds, after the homeowner
signs an agreement with California Communities. Renewable Funding LLC and RBC Capital
Markets will provide the administration and funding for the program, under the direction of
California Communities.
Benefits to Homeowners
Property assessment financing such as that proposed under the CaliforniaFIRST program,
allows homeowners to:
• Pay for improvements
• Save money through energy efficiency
• Have a loan attached to the home, not to personal credit
• Pay off the assessment at any time (subject to applicable prepayment penalties)
• Benefit from the statewide aggregation of projects and bond market, possibly resulting
in lower borrowing costs
Benefits to the Town
Participating in CaliforniaFIRST benefits the Town by providing:
• A PACE program with minimal financial risk and low to no costs to the Town
• A turnkey service which will handle the entire process from homeowner application to
funding
• Opportunity to make progress toward the Town's climate change and related
environmental goals
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MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTIONS REGARDING THE CALIFORNIAFIRST PROGRAM
January 5, 2010
The Town would have no obligation to repay the bonds issued by California Communities or to
pay the assessments levied on the participating properties. California Communities would take
all responsibility for assessment administration, bond issuance, and bond administration.
Process
California Communities has asked Sacramento County to submit a SEP 1 grant application on
behalf of all the participating counties and cities. This grant funding, if awarded, would lower
the interest rates for the first 1500 projects statewide; pay for start-up legal, financial, and
website costs for the pilot counties and cities; and provide some funding for marketing to each
of the counties and cities.
Santa Clara County will participate in the pilot. All of the cities in Santa Clara County are
eligible to participate, but must first complete the following three action items:
1. Submit a Letter of Intent to participate (Submitted November 2009).
2. Pass a Resolution to join the pilot CaliforniaFIRST program (Attachment 1). The
proposed resolution authorizes California Communities to accept applications from
owners of property within Los Gatos for financing of renewable energy, energy
efficiency, and water efficiency improvements through the CaliforniaFIRST program. It
also authorizes California Communities to conduct assessment proceedings and levy
assessments against the property of participating owners within Town boundaries. It
also authorizes miscellaneous related actions and makes certain findings and
determinations required by law. California Communities will undertake a judicial
validation proceeding as part of its initiation of the CaliforniaFIRST program. Finally,
the resolution authorizes payment of a set-up fee to cover legal, procedural, and
technology costs. These costs will be paid through the SEP 1 grant applied for by
Sacramento County, if the grant application is approved. If the grant application is not
approved, the cost to the Town would be $12,500.
3. Pass a Resolution authorizing Sacramento County to apply for grant funding on behalf
of all the participating counties and cities (Attachment 2). The proposed resolution
authorizes Sacramento to apply for a total of $16.5 million for the CaliforniaFIRST
program, and to accept the award on the Town's behalf if it is approved. It also makes
certain findings and determinations required by law.
Any jurisdiction may withdraw at any time from CaliforniaFIRST by passing a resolution
rescinding the resolution to join.
CONCLUSION:
The CaliforniaFIRST program will allow Los Gatos homeowners to finance renewable energy,
energy efficiency, and water efficiency improvements on their properties. Participation in this
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MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTIONS REGARDING THE CALIFORNIAFIRST PROGRAM
January 5, 2010
program would represent a key part of the Town's ongoing commitment to a green and
sustainable future.
ENVIRONMENTAL ASSESSMENT:
The recommended action is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
Assuming the grant application for SEP 1 funds is approved, there would be no direct initial
costs to the Town. If the application is not approved, the Town would pay a one-time set-up fee
of $12,500. Sufficient funds are available to pay this fee in Fund 111, Program 6302
(Conservation, Recycling, and Sustainability). In addition, some staff time would have to be
allocated to managing the Town's involvement in the program.
Attachments:
1. Resolution of the Town Council of the Town of Los Gatos Authorizing the Town of Los
Gatos 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 Territory of the Town of Los Gatos; and Authorizing Related Actions (Exhibit A)
2. Resolution of the Town Council of the Town of Los Gatos Authorizing Sacramento
County to Submit a Collaborative Application on its Behalf to the California Energy
Commission for State Energy Program Funds for the CaliforniaFIRST Program (Exhibit
A)
Distribution:
Jill Boone, Climate Change/Sustainability Program Manager, Santa Clara County
Annie Henderson, Renewable Funding
Attachment 1
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RESOLUTION 2010 -
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN OF LOS GATOS 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 TERRITORY OF THE TOWN OF
LOS GATOS; AND AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority ("California
Communities") is a joint exercise of powers authority the members of which include numerous
cities and counties in the State of California, including the Town of Los Gatos (the "Town"); and
WHEREAS, California Communities has established the CaliforniaFIRST program (the
"CaliforniaFIRST Program") to allow the financing of certain renewable energy, energy
efficiency, and water efficiency improvements (the "Improvements") through the levy of
contractual assessments pursuant to Chapter 29 of Division 7 of the Streets & Highways Code
("Chapter 29") and the issuance of improvement bonds (the "Bonds") under the Improvement
Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the "1915 Act")
upon the security of the unpaid contractual assessments; and
WHEREAS, Chapter 29 provides that assessments may be levied under its provisions
only with the free and willing consent of the owner of each lot or parcel on which an assessment
is levied at the time the assessment is levied; and
WHEREAS, the Town desires to allow the owners of property within its jurisdiction
("Participating Property Owners") to participate in the CaliforniaFIRST Program and to allow
California Communities to conduct assessment proceedings under Chapter 29 and to issue Bonds
under the 1915 Act to finance the Improvements; and
WHEREAS, California Communities will conduct assessment proceedings under
Chapter 29 and issue Bonds under the 1915 Act to finance Improvements;
WHEREAS, there has been presented to this meeting a proposed form of Resolution of
Intention to be adopted by California Communities in connection with such assessment
proceedings (the "ROI"), a copy of which is attached hereto as Exhibit A, and the territory within
which assessments may be levied for the CaliforniaFIRST Program shall include all of the
territory within the Town's official boundaries of record] (the "Proposed Boundaries"); and
WHEREAS, the Town 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; and
WHEREAS, pursuant to Government Code Section 6586.5, a notice of public hearing
has been published once at least five days prior to the date hereof in a newspaper of general
circulation in the Town and a public hearing has been duly conducted by this Town Council
concerning the significant public benefits of the CaliforniaFIRST Program and the financing of
the Improvements.
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Los
Gatos as follows:
Section 1. On the date hereof, the Town Council held a public hearing and the Town
Council hereby finds and declares that the issuance of bonds by California Communities in
connection with the CaliforniaFIRST Program will provide significant public benefits, including
without limitation, savings in effective interest rate, bond preparation, bond underwriting and
bond issuance costs and reductions in effective user charges levied by water and electricity
providers within the boundaries of the Town.
Section 2. In connection with the CaliforniaFIRST Program, the Town hereby
consents to the conduct of special assessment proceedings by California Communities pursuant
to Chapter 29 on any property within the Proposed 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, 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;
(3) The Town 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; and
(4) The issuance of Bonds will occur following receipt of a final judgment in
a validation action filed by California Communities pursuant to Code of Civil Procedure
Section 860 that the Bonds are legal obligations of California Communities.
Section 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.
Section 4. The appropriate officials and staff of the Town are hereby authorized and
directed to make applications for the CaliforniaFIRST program available to all property owners
who wish to finance Improvements; provided, that California Communities shall be responsible
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for providing such applications and related materials at its own expense. The following staff
persons, together with any other staff persons chosen by the Town Manager from time to time,
are hereby designated as the contact persons for California Communities in connection with the
CaliforniaFIRST Program: Jennifer Miller, Project Manager.
Section 5. The appropriate officials and staff of the Town are hereby authorized and
directed to execute and deliver such closing certificates, requisitions, agreements, and related
documents as are reasonably required by California Communities in accordance with the
Program Report to implement the CaliforniaFIRST Program for Participating Property Owners.
Section 6. The appropriate officials and staff of the Town are hereby authorized and
directed to pay California Communities a fee in an amount not to exceed Twelve Thousand Five
Hundred Dollars ($12,500), which California Communities will use to pay for the costs of
implementing the CaliforniaFIRST Program in the Town, including the payment of legal costs
incurred in connection with judicial validation of the CaliforniaFIRST Program.
Section 7. The Town 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 8. This Resolution shall take effect immediately upon its adoption. The Clerk
Administrator is hereby authorized and directed to transmit a certified copy of this resolution to
the Secretary of California Communities.
PASSED AND ADOPTED this day of , 20 by the
following vote, to wit:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED: /s/ Diane McNutt
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST: /s/ Jackie D. Rose
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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EXHIBIT A
FORM OF RESOLUTION DECLARING INTENTION
TO FINANCE INSTALLATION OF
DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES,
ENERGY EFFICIENCY AND WATER EFFICIENCY IMPROVEMENTS
This resolution will be considered for adoption by the CSCDA Board on January 20, 2010.
RESOLUTION NO.
RESOLUTION DECLARING INTENTION TO FINANCE
INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE
ENERGY SOURCES, ENERGY EFFICIENCY, AND WATER
EFFICIENCY IMPROVEMENTS
COUNTY OF SANTA CLARA
WHEREAS, the California Statewide Communities Development Authority ("California
Communities") is authorized under the authority granted California Communities pursuant to
Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California 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, and energy efficiency and water efficiency improvements
that are permanently fixed to real property ("Authorized Improvements"); and
WHEREAS, Chapter 29 authorizes California Communities to enter into contractual
assessments to finance the installation of Authorized Improvements in the County of Santa Clara
(the "County"); and
WHEREAS, California Communities wishes to declare its intention to establish a
CaliforniaFIRST program (the "CaliforniaFIRST Program") in the County, pursuant to which
California Communities, subject to certain conditions set forth below, would enter into
contractual assessments to finance the installation of Authorized Improvements in the County;
NOW, THEREFORE, BE IT RESOLVED by the California Statewide Communities
Development Authority, as follows:
Section 1. Fin din (is. California Communities hereby finds and declares the following:
(a) The above recitals are true and correct.
(b) Energy conservation efforts, including the promotion of energy -related
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 County.
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(c) Water conservation efforts, including the promotion of water -related Authorized
Improvements to residential, commercial, industrial, or other real property, are necessary to
address the issue of chronic water shortages in California.
(d) 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.
(e) A public purpose will be served by establishing a contractual assessment program,
to be known as the CaliforniaFIRST Program, pursuant to which California Communities will
finance the installation of Authorized Improvements to residential, commercial, industrial, or
other real property in the County.
Section 2. Determination of Public Interest. California Communities hereby
determines that (a) it would be convenient, advantageous, and in the public interest to designate
an area, which shall encompass the entire geographic territory within the boundaries of the
County, within which California Communities and property owners within the County 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 California Communities to finance the
installation of Authorized Improvements in the County pursuant to Chapter 29.
Section 3. Identification of Authorized Improvements. California Communities hereby
declares that it proposes 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 7 below, 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 County; provided,
however, that California Communities shall not enter into contractual assessments to finance the
installation of Authorized Improvements with the owner of any property in the County unless
requested to do so first by the County if the property is located in unincorporated territory or a city
if the property is located in incorporated territory and after such city or the County, as applicable,
has held a public hearing pursuant to Section 6586.5 of the Government Code of the State of
California. The form of resolution pursuant to which cities may request California Communities
to enter into contractual assessments to finance the installation of Authorized Improvements is
attached as Exhibit A.
Section 5. Proposed Financing Arrangements. Under Chapter 29, California
Communities may issue bonds pursuant to Chapter 29 that are payable by contractual
assessments and California Communities may advance its own funds to finance work to be
repaid through contractual assessments, and may from time to time sell bonds to reimburse
itself for such advances. Division 10 (commencing with Section 8500) of the Streets &
Highways Code of the State (the "Improvement Bond Act of 1915") shall apply to any bonds
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issued pursuant to Chapter 29, insofar as the Improvement Bond Act of 1915 is not in conflict
with Chapter 29.
California Communities shall determine the creditworthiness of a property owner to
participate in the financing of Authorized Improvements based on the criteria developed by the
Program Manager in consultation with the CaliforniaFIRST Program financing team and on
file with the Secretary.
In connection with bonds issued under the Improvement Bond Act of 1915 that are
payable from contractual assessments, serial and/or term improvement bonds 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 California Communities at the time of the issuance and sale of the bonds. 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 California Communities to create a special reserve fund for the bonds under
Part 16 of the Improvement Bond Act of 1915. California Communities will not advance
available surplus funds from its treasury to cure any deficiency in the redemption fund to be
created with respect to the bonds; provided, however, that this determination shall not prevent
California Communities from, in its 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 of the bonds, upon the conditions specified by and at the
determination of California Communities.
California Communities hereby authorizes the Program Manager, upon consultation
with bond counsel and the CaliforniaFIRST Program underwriter, to provide for the issuance
of bonds payable from contractual assessments.
In connection with the issuance of bonds payable from contractual assessments,
California Communities 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.
Section 6. Public Hearing. Pursuant to the Act, California Communities hereby orders that
a public hearing be held before this Commission, at , on , 2010 at
a.m., for the purposes of allowing interested persons to object to or inquire about the
proposed program or any of its particulars. The public hearing may be continued from time to time
as determined by the Commission for a time not exceeding a total of 180 days.
At the time of the hearing, the Report described in Section 7 below shall be summarized and
the Commission shall afford all persons who are present an opportunity to comment upon, object
to, or present evidence with regard to the proposed contractual assessment program, the extent of
the area proposed to be included within the program, the terms and conditions of the draft Contract
described in Section 7 below, or the proposed financing provisions. Following the public hearing,
California Communities may adopt a resolution confirming the Report (the "Resolution
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Confirming Report") or may direct the Report's modification in any respect, or may abandon the
proceedings.
The Commission hereby orders the Secretary to publish 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 the end of the fourteenth day. The first publication shall occur not later
than 20 days before the date of the public hearing.
Section 7. Report. The Commission hereby directs the Program Manager for the
CaliforniaFlRST Program to prepare and file with the Commission a report (the "Report") at or
before the time of the public hearing described in Section 6 above 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 above.
(b) A draft contract (the "Contract") specifying the terms and conditions that would
be agreed to by California Communities and a property owner within the County. The Contract
may allow property owners to purchase directly the related equipment and materials for the
installation of the Authorized Improvements and to contract directly for the installation of such
Authorized Improvements.
(c) A statement of California Communities' 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 California Communities official authorized to enter into
contractual assessments on behalf of California Communities.
(3)
County.
A maximum aggregate dollar amount of contractual assessments in the
(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 pay for work performed pursuant
to contractual assessments. The plan may include amounts to be advanced by California
Communities through funds available to it from any source. 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 shall include a statement of or method for determining the interest rate and time period
during which contracting property owners would pay any assessment. The plan shall provide for
any reserve fund or funds. The plan shall provide for the apportionment of all or any portion of
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the costs incidental to financing, administration, and collection of the contractual assessment
program among the consenting property owners and California Communities.
(e) A report on the results of the consultations with the County Auditor -Controller
described in Section 9 below concerning the additional fees, if any, that will be charged to
California Communities for incorporating the proposed contractual assessments into the
assessments of the general taxes of the County on real property, and a plan for financing the
payment of those fees.
Section 8. 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 California
Communities, 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, and subject to the same penalties
and remedies and lien priorities in the event of delinquency and default.
Section 9. Consultations with County Auditor -Controller. California Communities
hereby directs the Program Manager to enter into consultations with the County Auditor -
Controller in order to reach agreement on what additional fees, if any, will be charged to
California Communities for incorporating the proposed contractual assessments into the
assessments of the general taxes of the County on real property.
Section 10. Preparation of Current Roll of Assessment. Pursuant to Section
5898.24(c), California Communities hereby designates the Program Manager (or his/her
designee) as the responsible official for annually preparing the current roll of assessment
obligations by assessor's parcel number on property subject to a voluntary contractual
assessment.
Section 11. Procedures for Respondinz to Inquiries. The Program Manager shall
establish procedures to promptly respond to inquiries concerning current and future estimated
liability for a voluntary contractual assessment.
Section 12. Professionals Appointed. California Communities hereby appoints Jones
Hall, A Professional Law Corporation, San Francisco, California, as bond counsel to California
Communities in connection with the CaliforniaFIRST Program. The Commission hereby
authorizes and directs an Authorized Signatory of California Communities (as determined from
time to time by the Commission by separate resolution) to enter into appropriate agreements with
such firm for its services to California Communities in connection with the matters addressed in
this Resolution.
Section 13. Set -Up Fees. The County and various cities within the County may advance
fees to California Communities to pay for certain costs of establishing the CaliforniaFIRST
Program, some or all of which represent State Energy Program (SEP) funds. The Program
Manager is hereby authorized and directed to return to the County and cities, as applicable, any
fees paid to California Communities by the County and cities, as applicable, that do not represent
SEP funds and that California Communities does not use to pay for the costs of establishing the
CaliforniaFIRST Program.
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Section 14. Effective Date. This resolution shall take effect immediately upon its
adoption.
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PASSED AND ADOPTED by the California Statewide Communities Development
Authority this ,2010.
I, the undersigned, the duly appointed, and qualified member of the Commission of the
California Statewide Communities Development Authority, DO HEREBY CERTIFY that the
foregoing resolution was duly adopted by the Commission of said Authority at a duly called
meeting of the Commission of said Authority held in accordance with law on , 2010.
N:\CSD\TCRPTS\Resolutions\CalifonvaFIRST joining reso.doc
By:
Member
Attachment 2
RESOLUTION 2010-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AUTHORIZING SACRAMENTO COUNTY TO SUBMIT A COLLABORATIVE
APPLICATION ON ITS BEHALF TO THE CALIFORNIA ENERGY COMMISSION
FOR STATE ENERGY PROGRAM FUNDS FOR THE CALIFORNIAFIRST
PROGRAM
WHEREAS, the Town of Los Gatos recognizes that it is in the interest of the regional,
state, and national economy to stimulate the economy; create and retain jobs; reduce fossil fuel
emissions; and reduce total energy usage and improve energy efficiency within our jurisdiction;
and
WHEREAS, State Energy Program (SEP) funds are available through the California
Energy Commission's SEP for grants to eligible local governments for energy efficiency, energy
conservation, renewable energy, and other energy related projects and activities authorized by
the American Recovery and Reinvestment Act of 2009 ("ARRA"); and
WHEREAS, SEP allows for cities, counties, or groups of cities and counties in
California to apply for SEP funds on behalf of eligible local governments; and
WHEREAS, the Town of Los Gatos is eligible for SEP funding under the California
Energy Commission's SEP; and
WHEREAS, the Town of Los Gatos is proposing to collaborate with Sacramento County
to implement a program for financing the energy efficiency, energy conservation, renewable
energy, and other energy related projects and activities authorized by ARRA, which program is
described in Exhibit A for the purpose of qualifying for SEP funds from the California Energy
Commission; and
WHEREAS, the Town of Los Gatos has considered the application of the California
Environmental Quality Act (CEQA) to the approval of the program for financing energy
efficiency, energy conservation, renewable energy, and other energy related projects and
activities authorized by ARRA described in Exhibit A.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. In compliance with the CEQA, the Town of Los Gatos finds that the approval of the
program for financing energy efficiency, energy conservation, renewable energy, and
other energy related projects and activities authorized by ARRA described in Exhibit A is
not a "project" under CEQA, because the program 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)).
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2. The Town Council of the Town of Los Gatos authorizes Sacramento County to submit a
collaborative application on its behalf to the California Energy Commission for up to
Sixteen Million Five Hundred Thousand Dollars ($16,500,000) in SEP funds for the
program for financing energy efficiency, energy conservation, renewable energy, and
other energy related projects and activities authorized by ARRA described in Exhibit A.
3. If recommended for funding by the California Energy Commission, the Town of Los
Gatos authorizes Sacramento County to accept a grant award on its behalf and to enter
into all necessary contracts and agreements, and amendments thereto, on its behalf to
implement and carry out the program for financing the project/s described in Exhibit A.
PASSED AND ADOPTED this day of , 20_ by the
following vote, to wit:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED: /s/ Diane McNutt
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST: /s/ Jackie D. Rose
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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Exhibit A
California Energy Commission State Energy Program
CaliforniaFIRST Collaborative Proposal
Summary of Proposal Scope & Budget Framework
Description of Program Proposal
Under the lead applicant, Sacramento County, the 14 counties eligible to participate in the pilot
stage of the CaliforniaFIRST Program are collaborating on a proposal to the California Energy
Commission State Energy Program for a grant of up to $16.5 million. The grant funds will be
used to offset initial fees associated with bond issuance, start-up costs for the 14 counties and all
incorporated cities, an interest rate buy -down, local marketing/education/training/outreach, local
coordination, and grant administration to support the launch of the CaliforniaFIRST municipal
financing program.
CaliforniaFIRST Program County Participants and Proposal Collaborators
✓ Alameda ✓ Sacramento
✓ Fresno ✓ San Benito
✓ Kern ✓ San Diego
✓ Monterey ✓ San Luis Obispo
Budget Basics
✓ San Mateo
✓ Santa Clara
✓ Santa Cruz
✓ Solano
✓ Ventura
✓ Yolo
1. CaliforniaFIRST financing costs and fees ($6M)
Guided by California Communities and the CaliforniaFIRST Program Administrator Renewable
Funding, this program element will:
• buy -down the interest rate on the initial round(s) of projects financed by the
CaliforniaFIRST Program,
• cover fixed costs associated with initial bond counsel, bond disclosure, fiscal agent and
bond rating,
• cover legal and validation costs, and
• cover the deployment of technology (web portal) to support local programs.
2. Grant/Contract Administration & Steering Committee Liaison: ($2.0M)
On behalf of the applicant agency, grant/contractor administration duties include gathering
relevant reporting information from all partner jurisdictions and CaliforniaFIRST, financial
oversight and invoicing, contract administration, tracking, monitoring, and oversight of
deliverables. In addition, the grant administrator will serve as the partner liaison between all
participating steering committees to maintain coordination and consistency on the local
marketing efforts between parties as well as provide marketing and contract technical assistance,
training, and advice to participating agencies. The Grant Administrator will also coordinate local
efforts with those programs funded under the California Comprehensive Residential Building
Retrofit Program.
3. Regional Program Coordination & Marketing: (—$8.5M)
In line with the overall project goals, funding has been budgeted on a regional basis to each of
the six primary program regions in the following amounts, based on total number of Counties:
• Capitol Region (Sacramento/Yolo): $1,800,000
• Central Valley Region (Fresno/Kern): $1,150,000
• Bay Area Region: (Alameda/San Mateo/Santa Clara/Solano): $2,300,000
• North Central Coast Region: (Monterey/Santa Cruz/San Benito): $1,725,000
• South Central Coast Region: (Ventura/San Luis Obispo): $1,150,000
• Southern California Region: (San Diego): $575,000
This final program element serves to provide each region with the resources necessary to help
facilitate the rapid adoption of energy efficiency and renewable energy generation system
installations throughout the target area by connecting property owners to any and all available
on -the -ground or proposed resources, and services, providing a streamlined framework for easy
navigation, reduced out-of-pocket expenses, and overall increased cost effectiveness for both
participants and the program overall. The focus of the program will be to create region -wide (or
county -wide, where appropriate) cooperative project design, implementation, marketing, and
coordination to maximize economies of scale, take advantage of overlapping markets, and
ultimately allow each dollar to go further to benefit all parties.
Financing Costs and Fees
A. Financing Costs
As Program Administrator of the California Communities CaliforniaFIRST Program, Renewable
Funding will coordinate and provide program administration, financing, and legal services to
support a robust statewide municipal financing program. Specific financing costs are
concentrated at the start of the program and result in increased fees to a program participant, and
therefore a higher effective interest rate. In order to lower the interest rate, the SEP funds will be
used to cover bond disclosure counsel, bond rating fees, and a bond fiscal agent. In addition, a
direct interest rate buy -down will be employed to achieve a bond rate that is equivalent to an A -
rated bond, which is likely to be the bond rating later in the program.
B. Set-up Fees
A funding request equivalent to the city and county set-up fees will be included in the proposal.
The costs for initial legal work and validation proceedings will be covered by this request.
Additionally, the costs of establishing county web portals, importing local assessor's data, and
maintaining the website will be part of this funding request.
Suggested Major Marketing Program Coordination & Marketing Program Elements
A. Agency Coordination / Steering Committee Participation
In recognition of the additional coordination time required to get new programs off the ground,
individual counties may elect to include a modest amount of staff time for agency representatives
to participate in the program steering committee and other activities to drive marketing program
design, educational/marketing material development, form and protocol development, etc. By
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investing this time at the onset, we are able to develop a self-sustaining program for the long
term. County agencies (that is, auditor/tax collector/controller) will receive a small percentage,
incorporated into each loan, to cover regular ongoing program administration costs associated
with maintaining the tax roll and collecting annual assessments in years beyond the grant term.
Some jurisdictions may instead wish to contribute this time as project leveraged funds/resources
to increase overall program cost effectiveness based on their individual needs and resources.
Regional partnership may also elect to use a portion of the resources from this program element
toward informal or formalized staff/personnel training within their jurisdictions.
B. Education / Outreach/ Marketing
Successful program adoption requires thoughtful design, convenient procedures, and a robust
program education component to encourage and energize program participation. Achieving this
goal, the project team will create clear, consistent, and thematic program branding imagery,
educational and recruitment tools such as program brochures. The program will be supported by
the CaliforniaFIRST web portal and links to new and existing partner and complementary
websites, frequently asked questions, applications, and/or other program materials. In addition,
the project will engage a wide -stretching network of partners to promote, recruit, and
disseminate program information utilizing existing mechanisms of door-to-door outreach,
community event tabling, workshops and presentations, or other appropriate energy efficiency
and complementary program participation activities. Major elements might include:
✓ Outreach Promotional Materials: Brochures, Door -hangers, Postcard Mailers, Bill Inserts,
etc.
✓ Program Marketing Advertisements: Print Ads, Radio/TV Ads, PSA Production
✓ Promotional Outreach Events, Trade Shows or Community Workshops
✓ Homeowner/Business/Contractor/Staff Training Seminars
✓ Sustainability Site Signage
✓ Green Building and/or LEED Certification Technical Assistance
C. Community Coordinator / Partner Liaison / Supplies
The community coordinator is envisioned to serve as the single point regional program
coordinator to unify, inform, collaborate, and engage all program parties in relation to local
coordination and marketing efforts; respond to public inquiries; facilitate the education, outreach,
marketing, recruitment; and promote program adoption by the target community. In addition the
coordinator is responsible for coordinating with the grant administrator, tracking/reporting
necessary progress and metrics, meeting/exceeding grant milestones and targets, incorporating
required complementary program components, and working with CaliforniaFIRST to assure
QA/QC measures are applied to all participating properties. Specific tasks will be driven by the
overall project goals as well as the specific needs of each region and may include:
✓ Coordination with Grant Administrator/Steering Committee Liaison
✓ Marketing Coordination with CaliforniaFIRST Municipal Finance District
✓ Facilitation of local Regional Steering Committee Members and Partners
✓ Assist with Implementation Strategy, Documents, Procedures & Protocols Development
✓ Guide Promotion, Marketing, Education, Recruitment & Program Information
Dissemination
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✓ Link Program Participants to Regional Energy Efficiency & Complementary Programs
✓ Connect to Concurrent Complementary Workforce Development Training/Graduates
✓ Administer Regional Program Budget, Competitive Bidding, Other Program Transparency
Reqs
✓ Track and/or compile, Monitor & Evaluate Program Progress, Energy Savings, GHG
Reductions Achieved, Partner Leveraged Funds and Ancillary Environmental Benefits
Sample County Budget
A sample budget based on the above framework is provided below. Please note that these
amounts are subject to change based on the actual needs of each participating jurisdiction as well
as feedback obtained regarding funder and partner thresholds for competitiveness.
Component
%
Overall
Gross Benefit
Per County
Net Benefit
Per County
-
1.CaliforniaFIRST Costs & Fees
39%
$ 428,571.43
2. Grant Administration & Technical Assistance
10%
$ 107,142.86
-
3A.Steering Advisory Committee
10%
$ 115,000.00
$ 115,000.00
3B. Education, Outreach, Incentives, Marketing
23%
$ 258,750.00
$ 258,750.00
3C. Community Coordination
18%
$ 201,250.00
$ 201,250.00
Total
100%
$ 1,110,714.29
$ 575,000.00
Grant Development Team:
• County of Sacramento —Lead Agency (Applicant), will oversee grant writing, provide final
edits and required signatures, and submit finalized proposal on behalf of entire collaborative
team based on the approved proposed program scope and budget framework
• Ecology Action —Partner Grant Writer (Lead on Marketing), will develop narrative based on
proposed program scope and budget framework, especially as it pertains to local coordination
and marketing project administration, marketing/contract technical assistance, regional
coordination, and marketing, to meet all grant requirements and maximize proposal
competiveness.
• Renewable Funding —Partner Grant Writer (Lead on Finance), will develop narrative based
on proposed program scope and budget framework, especially for CaliforniaFIRST Program
finance -related program elements, to meet all grant requirements and maximize proposal
competiveness.
N:1CSD\TCRPTS\Resolutions\CaliforniaFIRST authorize Sac Co reso.doc
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