RPVCCA_CC_SR_2013_09_03_J_FIGTREE_PACE_ProgramCITY OF RANCHO PALOS VERDES
MEMORANDUM
TO: HONORABLE MAYOR & MEMBERS OF THE CITY COUNCIL
FROM: JOEL ROJAS, COMMUNITY DEVELO~CTOR
DATE: SEPTEMBER 3, 2013
SUBJECT: PARTICIPATION IN THE CALIFORNIA FIGTREE PACE
PROGRAM TO ALLOW RESIDENTS AND COMMERCIAL
BUSINESS OWNERS TO FINANCE ·CERTAIN ENERGY-
RELATED PROJECTS.
REVIEWED: CAROLYN LEHR, CITY MANAGE
Project Manager: Leza Mikhail, Associate Planner
RECOMMENDATION
Adopt the following resolutions for participation in a program referred to as the FIGREE
Property Assessed Clean Energy (PACE) and Job Creation Program:
1. Adopt Resolution No. 2013-_, consenting to the inclusion of properties within the
City's jurisdiction in the California Enterprise Development Authority (CEDA), and
authorizing participation in economic development financing programs for the benefit
of businesses and nonprofit entities within the City of Rancho Palos Verdes which
are offered by membership with CEDA; and,
2. Adopt Resolution No. 2013-_, authorizing the City of Rancho Palos Verdes to join
the FIGTREE PACE Program, authorizing the CEDA to conduct contractual
assessment proceedings and levy contractual assessments through the issuance of
bonds within the City's jurisdiction to allow the financing of certain renewable energy,
energy efficiency and water efficiency programs; and approving a draft CEDA
Resolution of Intention and Participation Agreement.
BACKGROUND
As discussed in a separate Staff Report to the City Council pertaining to Property Assessed
Clean Energy (PACE) Programs, in 2008 and 2009, the California Legislature adopted
Assembly Bill 811 ("AB 811") and Assembly Bill 474 ("AB 474"), which authorized the
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legislative body of any city or county to create an assessment district for the financing of
energy efficient and water efficient improvements. There are multiple PACE Programs
available for jurisdictional participation.
In January 2012, the California Enterprise Development Authority (CEDA), a joint powers
financing agency, introduced the FIGTREE PACE Program to its member jurisdictions,
making it available to any city or county throughout the State of California. The FIGTREE
PACE Program allows CEDA to finance renewable energy and energy efficient and water
conservation improvements on commercial and non-profit properties. As of February 2013,
CEDA expanded its authority to 62 public agencies throughout the State of California, some
of which joined as "Associate Members" in order to participate in the FIGTREE PACE
Program opportunities. As a result of the FIGTREE PACE Program's success, the Board of
Directors of the South Bay Cities Council of Governments (SBCCOG) agreed to partner
with the CEDA to open up the opportunity for commercial and non-profit property owners
within SBCCOG to participate in the FIGTREE PACE Program with the SBCCOG as the
local contact.
DISCUSSION
City Participation
As noted above, any city or county located within the State of California may participate in
the FIGTREE PACE Program by adopting an Associate Membership Resolution and
executing an Associate Membership Agreement (attached) to join CEDA. By adopting the
attached Resolutions, the appropriate authorization will be given for commercial and non-
profit property owners within the City boundaries to coordinate with CEDA Staff to
participate in the FIGTREE PACE Program. Agreeing to participate in the FIGTREE PACE
Program would not limit the City from participating in other PACE programs offered
throughout the State of California. Additionally, participation in the FIGTREE PACE
Program would not result in any fiscal impacts, Rancho Palos Verdes Staff time, or liability
to the City, as the program would be administered through the CEDA.
FIGTREE PACE Program Eligibility
CEDA has adopted standards and requirements for commercial and non-profit property
owner participation in the FIGTREE PACE Program. Qualified property owners may enter
into contractual assessments to finance the purchase of installation of eligible equipment
and improvements by contracting with a certified licensed contractor participating in the
program. If a property owner chooses to participate, the improvements installed on the
owner's property would be financed by a voluntary contractual assessment that is recorded
as a lien against the property and paid with the property taxes for the period of time
necessary to pay off bonds, the term not to exceed 20 years. Listed below are some of the
benefits to commercial and non-profit property owners and the City by participation in the
voluntary FIGTREE PACE Program.
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Benefits to Property Owners
• Eligibility: In today's economic environment, alternatives for property owners to
finance renewable energy/energy efficiency/water efficiency improvements or
electric vehicle charging infrastructure may not be available. As such many property
owners may not have options available to them to lower their utility bills.
• Savings: Energy prices continue to rise and selecting in energy efficient, water
efficient and/or renewable energy model could lower utility bills.
• 100% voluntary. Property owners can choose to participate in the program at their
discretion.
• Payment obligation stays with the property. Under Chapter 29 of the Streets and
Highways Code of the State of California, a voluntary contractual assessment stays
witli the property upon transfer of ownership. Even if there were private enterprise
alternatives, most private loans are due on sale of the benefited property, which
makes it difficult for property owners to match the life of the repayment obligation
with the useful life of the financed improvements. Certain mortgage providers will,
however, require the assessment be paid off at the time the property is refinanced or
sold.
• Prepayment option. The property owner can choose to pay off the assessments at
any time, subject to applicable prepayment penalties.
• Customer oriented program. Part of the success of the program is the prompt
customer service.
Benefits to the City
• Potential increase to jobs related to energy efficient, water conservation and
renewable energy improvements offered through local contractors.
• An increase in housing prices (higher efficient homes are worth more money).
• An increase in sales, payroll and property tax revenue.
• As in conventional assessment financing, the City is not obligated to repay the bonds
or to pay the assessments levied on the participating properties.
• All Program(s) and assessment administration, bond issuance and bond
administration functions are handled by FIGTREE PACE, depending on the property
owner's choice of funding. No City Staff time is needed to participate in either
program.
• The City can provide access for its residents to the FIGTREE PACE Program
without the higher staff costs that an independent program established by the City
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would require. Furthermore, the SBCCOG will serve as the local contact for the
program.
ADDITIONAL INFORMATION
On June 28, 2013, a SBCCOG memorandum from Executive Director, Jacki Bacharach,
went out to all cities within the South Bay presenting and promoting the PACE opportunities.
Approximately nine (9) cities within the South Bay will be considering this program on their
agendas in the next month.
CONCLUSION
Based on the information described in this Staff Report, Staff recommends that the City
Council adopt the appropriate Resolutions, thereby adding the City as an Associate
Member of CEDA, approving an Associate Member Agreement executed between CEDA
and the City, and authorizing CEDA to form an assessment district to administer the
necessary activities to fund eligible projects by commercial and non-profit property owners
in Rancho Palos Verdes.
FISCAL IMPACT
There is no fiscal impact to the City's general fund incurred by consenting to the inclusion of
properties within the City limits in the FIGTREE PACE Program. All program administrative
costs are covered through an initial administrative fee included in the property owner's
voluntary contractual assessment and an annual administrative fee which is also collected
on the property owner's tax bill. Furthermore, due to the fact that the SBCCOG would act as
the local contact for the program, no staff time would be needed to answer questions of the
public.
ALTERNATIVES
In addition to Staffs recommendation, the following alternative is available for consideration
by the City Council:
1) Determine that participation in the FIGTREE PACE Program is not desirable at this
time.
Attachments
• Draft Resolution No. 2013-_ (Associate Membership into CEDA)
o Exhibit A (Associate Member Agreement to be approved by City Council)
• Draft Resolution No. 2013-_ (Authorizing Participation in FIGTREE)
o Exhibit A (Resolution of Intention to be adopted by CEDA)
o Exhibit B (Participation Agreement -to be signed by City Manager)
• Form Letter from FIGTREE PACE Program CEO, Mahesh Shah
• FIGREE PACE Program Government Flyer
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Draft Resolution No. 2013-
(Associate Membership into CEDA)
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RESOLUTION NO. 2013-_
RESOLUTION APPROVING ASSOCIATE MEMBERSHIP BY THE
CITY OF RANCHO PALOS VERDES IN THE CALIFORNIA
ENTERPRISE DEVELOPMENT AUTHORITY AND
AUTHORIZING AND DIRECTING THE EXECUTION OF AN
ASSOCIATE MEMBERSHIP AGREEMENT RELATING TO
ASSOCIATE MEMBERSHIP OF THE CITY IN THE AUTHORITY
WHEREAS, the City of Rancho Palos Verdes, California (the "City"), is a municipal
corporation, duly organized and existing under the Constitution and the laws of the State of
California; and,
WHEREAS, upon authorization of the City Council and pursuant to Chapter 5 of
Division 7 ·of Title 1 of the Government Code of the State of California, commencing with
Section 6500 (the "JPA Law"), the City may enter into a joint exercise of powers agreement
with one or more other public agencies pursuant to which such contracting parties may
jointly exercise any power common to them; and,
WHEREAS, the City and other public agencies wish to jointly participate in economic
development financing progranis for the benefit of businesses and nonprofit entities within
their jurisdictions offered by membership in the California Enterprise Development Authority
(the "Authority") pursuant to an associate membership agreement and Joint Exercise of
Powers Agreement Relating to the California Enterprise Development Authority (the
"Agreement"); and,
WHEREAS, under the JPA Law and the Agreement, the Authority is a public entity
separate and apart from the parties to the Agreement and the debts, liabilities and
obligations of the Authority will not be the debts, liabilities or obligations of the City or the
other members of the Authority; and,
WHEREAS, the form of Associate Membership Agreement (the "Associate
Membership Agr~ement") between the City and the Authority is attached as Exhibit 'A';
and,
WHEREAS, the City is willing to become an Associate Member of the Authority subject
to the provisions of the Associate Membership Agreement.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES
HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
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
statements, findings and determinations of the City set forth in the preambles above are
true and correct.
Section 2: The Associate Membership Agreement presented at this meeting and
on file with the City Clerk is hereby approved. The Mayor of the City, the City Manager, the
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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.
PASSED, APPROVED, AND ADOPTED this 3rd day of September 2013.
Mayor
Attest:
City Clerk
State of California )
County of Los Angeles ) ss
City or Rancho Palos Verdes )
I, Carla Morreale, the City Clerk of the City of Rancho Palos Verdes, do hereby
certify that the above Resolution No. 2013-_ was duly and regularly passed and adopted
by the said City Council at a regular meeting thereof held on September 3, 2013.
City Clerk
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EXHIBIT A
Associate Membership Agreement
by and between
CEDA
and
City of Rancho Palos Verdes
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ASSOCIATE MEMBERSHIP AGREEMENT
by and between the
CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY
and the
CITY OF RANCHO PALOS VERDES, CALIFORNIA
THIS ASSOCIATE MEMBERSHIP AGREEMENT (this "Associate Membership
Agreement"), dated as of September 3, 2013, is by and between CALIFORNIA
ENTERPRISE DEVELOPMENT AUTHORITY (the "Authority") and the CITY OF RANCHO
PALOS VERDES, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, the Agreement permits any other local agency in the State of California
to join the Authority as an associate member (an "Associate Member"); and
WHEREAS, the City desires to become an Associate Member of the Authority;
WHEREAS, City Council of the City has adopted a resolution approving the
Associate Membership Agreement and the execution and delivery thereof;
WHEREAS, 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:
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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 until
terminated by City or 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: 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 4: 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.
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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.
Attest:
Michelle Stephens, Asst. Secretary
Attest:
City Clerk
State of California )
County of Los Angeles ) ss
City or Rancho Palos Verdes )
CALIFORNIA ENTERPRISE DEVELOPMENT
AUTHORITY
By: _____________ _
Gurbax Sahota, Chair
Board of Directors
CITY OF RANCHO PALOS VERDES,
CALIFORNIA
By: ____________ ~
Mayor Susan Brooks
I, Carla Morreale, the City Clerk of the City of Rancho Palos Verdes, do hereby
certify that the above Resolution No. 2013-_ was duly and regularly passed and adopted
by the said City Council at a regular meeting thereof held on September 3, 2013.
City Clerk
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Draft Resolution No. 2013-
(Authorizing Participation into FIGTREE)
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RESOLUTION NO. 2013-_
RESOLUTION AUTHORIZING THE CITY OF RANCHO PALOS
VERDES 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 RANCHO PALOS
VERDES; AND AUTHORIZING RELATED ACTIONS
WHEREAS, the California Enterprise Development Authority ("CEDA") is a joint
exercise of powers authority, comprised of cities and counties in the State of California,
including the City of Rancho Palos Verdes(the "City"); and,
WHEREAS, 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 the Streets & Highways Code ("Chapter 29"), and the issuance of
improvement bonds or other evidences of indebtedness (the "Bonds") under the
Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 et seq.) (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 City desires to allow the owners of property 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,
WHEREAS, CEDA will conduct assessment proceedings under Chapter 29 and
issue Bonds under the 1915 Act to finance Improvements; and,
WHEREAS, there has been presented to this meeting a proposed form of Resolution
of Intention to be adopted by CEDA in connection with such assessment proceedings (the
"ROI"), a copy of which is attached hereto as Exhibit A; and,
WHEREAS, said ROI sets forth the territory within which assessments may be levied
for FIGTREE PACE which territory shall be coterminous with the City's official boundaries of
record at the time of adoption of the ROI (the "Boundaries"); and,
WHEREAS, pursuant to Chapter 29, the City authorizes CEDA to conduct
assessment proceedings, levy assessments, pursue remedies in the event of
delinquencies, and issue bonds or other forms of indebtedness to finance the Improvements
in connection with FIGTREE PACE; and,
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WHEREAS, to protect the City in connection with operation of the FIGTREE PACE
program, FIGTREE Energy Financing, the program administrator, has agreed to defend and
indemnify the City; and,
WHEREAS, based upon such authorization as provided in the Participation
Agreement, a copy of which is attached hereto as Exhibit B, the City will not be responsible
for the conduct of any assessment proceedings, the levy of assessments, any required
remedial action in the case of delinquencies, 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 RANCHO PALOS VERDES
DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
Section 1: On the date hereof, the City Council hereby finds and determines that
the issuance of Bonds by CEDA in connection with FIGTREE PACE will provide significant
public benefits, including without limitation, savings in effective interest rates, 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 City.
Section 2: 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
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 assessment proceedings,
the levy of assessments, any required remedial action in the case of
delinqu~ncies in such assessment payments, or the issuance, sale or
administration of the Bonds in connection with FIGTREE PACE.
The City Council hereby approves the Participation Agreement between the City and CEDA
in the form attached hereto. The City Council hereby authorizes the City Manager to
execute the Participation Agreement with such changes as the City Manager deems
appropriate in order to commence the FIGTREE PACE program within the jurisdiction of the
City.
Section 3: Pursuant to the requirements of Chapter 29, CEDA has prepared and
will update from time to time the "Program Report" for FIGTREE PACE (the "Program
Report") and associated documents, and CEDA 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 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: Joel Rojas, Community
Development Director (310) 544-5228 or via email at joelr@rpv.com.
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 CEDA in accordance with the Program
Report to implement FIGTREE PACE for Participating Property Owners.
Section 6: 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)).
Section 7: 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 Resource Company.
Section 8: Services related to the formation and administration of the assessment
district will be provided by CEDA at no cost to the City.
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PASSED, APPROVED, AND ADOPTED this 3rd day of September 2013.
Mayor
Attest:
City Clerk
State of California )
County of Los Angeles ) ss
City or Rancho Palos Verdes )
I, Carla Morreale, the City Clerk of the City of Rancho Palos Verdes, do hereby
certify that the above Resolution No. 2013-_ was duly and regularly passed and adopted
by the said City Council at a regular meeting thereof held on September 3, 2013.
City Clerk
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EXHIBIT A
CEDA Resolution of Intention
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RESOLUTION NO. 2013-_
RESOLUTION OF THE CALIFORNIA ENTERPRISE
DEVELOPMENT AUTHORITY DECLARING INTENTION TO
FINANCE INSTALLATION OF DISTRIBUTED GENERATION
RENEWABLE ENERGY SOURCES, ENERGY EFFICIENCY AND
WATER EFFICIENCY IMPROVEMENTS IN THE CITY OF RANCHO
PALOS VERDES
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 Rancho Palos Verdes
(the "City") located in the County of Los Angeles (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,
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.
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:
(a) The above recitals are true and correct and are incorporated herein by this
reference.
(b) Energy and water conservation efforts, including the promotion of Authorized
Improvements to residential, commercial, industrial, or other real property, are
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necessary to address the issue of global climate change and the reduction of
greenhouse gas emissions in the City.
(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.
(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, industrial, or other real property in the City.
Section 2: Determination of Public Interest. The Board of Directors 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 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.
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 Administrator") 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 Act of 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
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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.
CEDA hereby authorizes the Program Administrator, upon consultation with CEDA
general counsel, bond counsel and the FIGTREE PACE underwriter, to commence
preparation of documents and take necessary steps to prepare for the issuance of bonds,
notes or o~her 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.
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 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: Notice to Water and Electric Providers. Pursuant to Section 5898.24
of the Streets & Highways Code, written notice of the proposed contractual assessment
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program within the City to all water and electric providers within the boundaries of the City
has been provided.
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.
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.
(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 pay 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 discussions with the County Auditor-Controller
des~ribed 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, and subject 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 Administrator to enter into discussions with the County Auditor-Controller in
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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.
Section 13: Effective Date. This resolution shall take effect immediately upon its
adoption. .
PASSED AND ADOPTED this __ day of __ , 201_.
ATTEST:
Larry Cope, Secretary
CALIFORNIA ENTERPRISE
DEVELOPMENT AUTHORITY
By: ____________ _
Gurbax Sahota, Chair
J-22
EXHIBIT B
Participation Agreement
J-23
PARTICIPATION AGREEMENT
by and among the
CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY
and
FIGTREE ENERGY FINANCING
and the
CITY OF RANCHO PALOS VERDES
Dated as of ____ , 2013
J-24
PARTICIPATION AGREEMENT
This PARTICIPATION AGREEMENT, made and entered into as of ,
2013, by and among the CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY, a
joint powers agency organized and existing under the laws of the State of California
("CEDA"), third party administrator FIGTREE E:nergy Financing ("FIGTREE"), and the City
of Rancho Palos Verdes, a City, organized and existing under the laws of the State of
California (the "Participating Member");
WITNESS ETH:
In consideration of the mutual covenants herein contained, and for other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree, as follows:
Recitals
(a) The CEDA is a joint powers agency organized and existing pursuant to the
Joint Powers Act, comprising Articles 1, 2, 3 and 4 of Chapter 5 of Division 7
of Title 1 (commencing with Section 6500) of the Government Code of the
State of California; and
(b) The CEDA has adopted the FIGTREE Property Assessed Clean Energy
(PACE) and Job Creation Program (the "Program" or "FIGTREE PACE"), for
the financing of renewable generation and energy efficient and water savings
equipment on improved commercial, industrial and residential property within
the Participating Member's jurisdiction; and
(c) The CEDA has retained third party administrator, FIGTREE, to carry out the
implementation of the Program; and
(d) The Participating Member is either a municipal corporation or other public
bod,y and a member of the CEDA in good standing; and
(e) The Participating Member has authorized the CEDA to form an assessment
district (the "District") for the PACE financing of renewable generation and
energy efficient and water savings improvements on certain properties owned
by property owners who voluntarily agree to participate in the Program
("Program Participant"); and
(f) The CEDA intends to issue bonds, notes or other forms of indebtedness (the
"Bonds") to finance improvements within the District and in consideration
therefore, assessments shall be recorded against each parcel prior to the
issuance of the Bonds. Installments of principal and interest sufficient to
meet annual debt service on the Bonds, and related administration costs and
expenses, are to be included on the regular county tax bills sent to each
Program Participant.
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(g) The Participating Member desires to authorize the CEDA to (i) record the
assessment against the participating property owner's parcels, (ii) administer
the District in accordance with the Improvement Act of 1915 (Chapter 29 Part
1 of Division 10 of the California Streets and Highways Code (commencing
with Section 8500 et seq.) (the "Law") and (iii) prepare program guidelines for
the operations of the Program; and
(h) The Law permits foreclosure in the event that there is a default in the
payment of assessments due on a property. Under the Law, the Participating
Member must designate the parties who shall be responsible to proceed with
collection and foreclosure of the liens on the properties within the District.
The Program Report provides for accelerated foreclosure; and
(i) The Participating Member desires to appoint the CEDA as its representative
to proceed with any claims, proceedings or legal actions as shall be
necessary to collect past due assessments on the properties within the
District in accordance with the Law and Section 6509.6 of the Marks Roos
Act.
NOW THEREFORE:
Section 1: Recitals. The Recitals contained herein are true and correct and
are hereby incorporated herein by reference.
Section 2: Appointment of CEDA. The City is not and will not be deemed to
be an agent of FIGTREE or CEDA as a result of this Agreement. The Participating Member
hereby appoints the CEDA as its representative to record the assessment against each
Program Participant's parcel and administer the District in accordance with the Law. The
Participating Member hereby designates the CEDA as the entity which shall proceed with
any claims, proceedings or legal actions as shall be necessary to collect past due
assessments on the properties within the District in accordance with the Law and Section
6509.6 of the Marks Roos Act.
Section 3:, 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 negligent performance by FIGTREE of the work required under the agreement
between FIGTREE and CEDA. FIGTREE, on behalf of itself and the CEDA, agrees to
defend, indemnify, and hold harmless the Participating Member, its officers, agents,
employees and attorneys from and against any and all liabilities, claims, or demands arising
or alleged to arise as a result of the CEDA or FIGTREE'S performance or failure to perform
under this Agreement or the Program, except that arising from the sole negligence or willful
misconduct of Participating Member.
14
J-26
IN WITNESS WHEREOF, the parties hereto have executed this Participation
Agreement by their officers duly authorized as of the day and year first written above.
CALIFORNIA ENTERPRISE DEVELOPMENT
AUTHORITY
By: ______________ _
Gurbax Sahota, Chair
FIGTREE ENERGY FINANCING
By:
Mahesh Shah, CEO
CITY OF Rancho Palos Verdes
By: ______________ _
Carolyn Lehr
15
J-27
Form Letter from FIGTREE PACE Program
. (CEO, Mahesh Shah)
J-28
Sponsored by the CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY
March11,2013
Dear Local Government Representative,
A growing number of cities and counties throughout California including, recently, the City of
San Diego, have adopted the FIGTREE PACE program -a new way to finance energy and
water efficiency and renewable energy improvements. This innovative and proven
financing model is made available through the California Enterprise Development Authority
(CEDA), a statewide Joint Powers Authority. Operating under Assembly Bill 811, FIGTREE
PACE enables property owners to make payments for Property Assessed Clean Energy
(PACE) financing through a line item charge on their property tax bill.
FIGTREE PACE is currently available to commercial properties only, requires existing
mortgage lenders' consent and has been judicially validated statewide. The program is
currently active in 27 counties and cities.
Benefits to Your Community:
./ Creates jobs. $4M invested in energy retrofits creates 60 jobs in your community.1
./ Reduces greenhouse gas emissions. Energy efficiency and renewable energy
measures reduce harmful emissions. 1
./ Spurs the local economy. $4M invested in energy upgrades creates $10M in gross
economic output. 1
FIGTREE PACE is a turnkey solution:
./ No cost to local government
./ No liability; full indemnification
./ 100% privately funded
./ Non-exclusive participation
Joining FIGTREE PACE is a smart choice; it is an economic development tool that you can
implement using no public moneys -your action is needed right away.
With the adoption of a single resolution, property owners and local businesses can look
forward to a true economic opportunity. Figtree Energy Financing will provide all required
Resolutions, Staff Reports, and supporting documentation.
I invite you to contact Joe Flores, Vice President of Municipal Finance at (877) 577-7373 or
visit us online at www.figtreecompany.com.
Sincerely,
~
Mahesh M. Shah, CPA
Chief Executive Officer
Encl. How to adopt FIGTREE PACE in your county or city.
1 Source: ECONorthwest Study
QUALIFYING PROPERTIES
• Commercial Office
• Retail
• Hospitality
• Multi-Family Residential
• Agricultural
• Industrial
• Andmore
QUALIFYING IMPROVEMENTS
• HVAC
• Solar Photovoltaic
• SofarThermal
• CoolRoofs
• Lighting
• aoHers and Chfflers
• auilding Envelope
• Process· Equipment
• Cc!ntn::il Systems
• Irrigation
• Andmore
BENEFITS
• Job Creation
• Economic Stimulus
• Compliance with AB-1103
andAB-32
INCENTIVES
• Rebates
• Investment Tax Credit
• EPACTTax Deductions
FEATURED IN
• Forbes.com
• Bond Buyer
• Renewable Energy World
• San Diego Business Journal
• San Diego Daily Transcript
• California Economic Summit
9915 Mira Mesa Blvd., Suite 130, San Diego, CA 92131 I Phone: 877.577.7373 I Fax: 877.577.0507
WWW.FIGTREECOMPANY.COM J-29
FIG TREE PACE Program Government Flyer
J-30
'.·:·· .. ':.
~-l\.: :.:.:::-
'
ABOUT
FIGTREE
ENERGY
FINANCING
·.· ··:· ." .. :.:·:-:::::::-:-::-:-/:::::::::-:::-··· ·.·.· · .. ·.
Be ~U$t~inabl• ................. / i
Lower .vC>ur
ErietgyBms ••• •
Watch Your
Savings Grow
V\/HA T \NILL YOU DO V\/ITH
YOUR GREEN SAVINGS?
INTRODUCING PACE
FINANCING FOR
ENERGY UPGRADES
In these times of soaring energy costs and
new environmental regulations, it's time to
protect your finances. Property Assessed
Clean Energy {PACE) financing from
FIGTREE can help turn property owners'
energy and water bills into thousands of
dollars in savings each year through easy-
to-implement energy efficiency, renewable
energy and water conservation upgrades.
It's a timely opportunity that can save
money, provide a valuable hedge against
rising energy costs and preserve precious
natural resources.
, Property owners are prequalified for PACE
financing in numerous cities and counties
throughout California, and the number of
jurisdictions authorizing FIGTREE to offer
financing based on property values in
their respective communities continues to
grow. PACE financing requires no personal
guarantee. Additionally, all loan balances
can transfer to the next owner if you sell the
property -you pay for only the benefits you
receive. Payments are made as semi-annual
assessment installments on your property tax
bill, but participation is completely voluntary
and the program does not rely on public funds.
J-31
HO\N TO ADOPT FIGTREE PACE IN
YOUR COUNTY OR CITY
THE BOARD OF SUPERVISORS/
CITY COUNCIL WILL NEED TO:
1. Establish Membership with California Enterprise
Development Authority {CEDA) {If not already a member)
•Adopt Membership Resolution {no cost to join)
• Execute Membership Agreement
2. Authorize CEDA to form the PACE Assessment District
• Adopt Resolution of Authorization
• Execute ~articipation Agreement
DOWNLOAD SAMPLE
DOCUMENTS AND STAFF
REPORTS ONLINE
Agreements & Resolutions
ABOUT FIGTREE ENERGY
FINANCING
FIGTREE is a San Diego-based clean energy finance company
providing breakthrough Property Assessed Clean Energy {PACE)
funding that puts money-saving energy efficiency, renewable
energy and water conservation upgrades within reach of virtually
any property owner. Requiring no money down, FIGTREE's unique
brand of PACE financing gives property owners the freedom to
amortize payments for a period of up to 20 years via their property
tax bills. FIGTREE is the first company in the U.S. to successfully
raise private capital for PACE projects via a
multi-jurisdictional bond issue.
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· ANANCJNG WWW.FIGTREECOMPANY.COM 877.577.7373
J-32