HomeMy WebLinkAboutRES 13-6875 (ENTERPRISE DEVELOPMENT AUTHORITY)1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
?R
RESOLUTION NO. 13-6875
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH, CALIFORNIA, AUTHORIZING THE CITY OF HERMOSA
BEACH 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 HERMOSA BEACH, 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 Hermosa Beach (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
Page 1 of 4
13-6875
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
?R
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
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, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF HERMOSA BEACH, CALIFORNIA, 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.
Page 2 of 4
13-6875
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
?R
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:
A. Such proceedings are conducted pursuant to one or more Resolutions of Intention in
substantially the form of the ROI;
B. 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
C. 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 in such
assessment payments, or the issuance, sale or administration of the Bonds in
connection with FIGTREE PACE.
NOW THEREFORE, BE IT RESOLVED, that 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.
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 person, together with any other staff designated by the
City Manager from time to time, is hereby designated as the contact persons for CEDA in
connection with FIGTREE PACE: Ken Robertson, Director, Community Development
Department, krobertsonphermosabch.org; (310)318-0242.
Page 3 of 4
13-6875
l
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
?R
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.
ATTEST:
City Clerk
PASSED, APPROVED and ADOPTED this loth day of September, 2013.
the C ty Coun 1i And MAYOR of the City of Hermosa Beach, California
0
VED AS TO FORM:
C it-v`Mttornev
Page 4 of 4
13-6875
EXHIBIT A
RESOLUTION NO.
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
HERMOSA BEACH
WHEREAS, the California Enterprise Development Authority ("CEDA") is a joint powers
authority organized and existing pursuant to the Joint Powers Act (Government Code Section 6500 et
seq.) and that certain Joint Exercise of Powers Agreement (the "Agreement") dated as of June 1, 2006,
among the cities of Eureka, Lancaster and Selma; and
WHEREAS, CEDA is authorized under the Agreement and Chapter 5 of Division 7 of Title 1 of
the Government Code of the State of California and in accordance with Chapter 29 of Part 3 of Division
7 of the Streets & Highways Code of the State of California ("Chapter 29") to authorize assessments to
finance the installation of distributed generation renewable energy sources, energy efficiency and water
efficiency improvements that are permanently fixed to real property ("Authorized Improvements"); and
WHEREAS, CEDA has obtained authorization from the City of Hermosa beach (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 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 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 other forms of indebtedness as
authorized by Chapter 29.
In connection with the issuance of bonds payable from contractual assessments, CEDA expects
to obligate itself, through a covenant with the owners of the bonds, to exercise its foreclosure rights with
respect to delinquent contractual assessment installments under specified circumstances.
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 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 described in
Section 10 hereof, concerning the additional fees, if any, that will be charged to CEDA
for inclusion of the proposed contractual assessments on the general property tax roll of
the County, and a plan for financing the payment of those fees.
SECTION 9. Nature of Assessments. Assessments levied pursuant to Chapter 29, and the
interest and any penalties thereon, will constitute a lien against the lots and parcels of land on which
they are made, until they are paid. Unless otherwise directed by CEDA, the assessments shall be
collected in the same manner and at the same time as the general taxes of the County on real property
are payable, 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 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 1 2013.
CALIFORNIA ENTERPRISE
DEVELOPMENT AUTHORITY
Im
ATTEST:
Larry Cope, Secretary
Gurbax Sahota, Chair
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 Energy Financing ("FIGTREE"), and the City of Hermosa Beach
a City, organized and existing under the laws of the State of California (the "Participating
Member");
WITNESSETH:
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 body
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.
(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.
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
M.
Gurbax Sahota, Chair
FIGTREE ENERGY FINANCING
LOW
Mahesh Shah, CEO
CITY OF HERMOSA BEACH
go
City Manager
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )
CITY OF HERMOSA BEACH )
I, Elaine Doerfling, City Clerk of the City of Hermosa Beach, California, do
hereby certify that the foregoing Resolution No. 13-6875 was duly and regularly passed,
approved and adopted by the City Council of the City of Hermosa Beach at a Regular
Meeting of said Council at the regular place thereof on September 10, 2013.
The vote was as follows:
AYES: DiVirgilio, Duclos, Fishman, Tucker, Mayor Bobko
NOES: None
ABSTAIN: None
ABSENT: None
Dated: September 10, 2013
Elaine Doerfling, City tC