2010-010-CaliforniaFirst ProgramRESOLUTION 201D-010
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
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 CaliforniaFIRSTPmgram 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 CaliforniaFIRSTPmgram.
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 at a regular meeting of the Town Council of the Town of Los Gatos,
California, held on the 21St day of December 2009 by the following vote:
COUNCIL MEMBERS:
AYES: Joe Pirzynski, Steve Rice, Barbara Spector, Mike Wasserman and Mayor Diane McNutt
NAYS;
ABSENT:
ABSTAIN;
AT ST:
C OF HE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
SIGNED:
~~~~ ~~~~
MAYOR OFTHE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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. Findings. 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.
(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 malting 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 malte 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 inay 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 8.500) of the Streets &
Highways Code of the State (the "Improvement Bond Act of 1915") shall apply to any bonds
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 Hearin. 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
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
CaliforniaFIRST 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) A maximum aggregate dollar amount of contractual assessments in the
County.
(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
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 Responding 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.
Section 14. Effective Date. This resolution shall take effect immediately upon its
adoption.
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.
By:
Member