Res 10-003
RESOLUTION NO.1 0-003
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA,
AUTHORIZING THE CITY OF POWAY, CALIFORNIA, TO JOIN THE
CALlFORNIAFIRST 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
CITY OF POWAY; 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 City of
Poway (the "City"); 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 City of Poway 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 City's official boundaries of record
(the "Proposed Boundaries"); and
WHEREAS, the City will not be responsible for the conduct of any assessment
proceedings; the levy or collection of assessments or any required remedial action in
the case of delinquencies in such assessment payments; or the issuance, sale or
administration of the Bonds or any other bonds issued in connection with the
California FIRST Program; and
Resolution No. 10-003
Page 2
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 City and a public hearing has been duly
conducted by this City Council concerning the significant public benefits of the
CaliforniaFIRST Program and the financing of the Improvements;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway
as follows:
Section 1_ On the date hereof, the City Council held a pUblic hearing and the
City Council hereby finds and declares that the issuance of bonds by California
Communities in connection with the California FIRST 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 City.
Section 2. In connection with the CaliforniaFIRST Program, the City hereby
consents to the conduct of special assessment proceedings by California Communities
pursuant to Chapter 29 on any property within 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; and
(3) The City will not be responsible for the conduct of any assessment
proceedings; the levy or collection of assessments or any required remedial
action in the case of delinquencies in such assessment payments; or the
issuance, sale or administration of the Bonds or any other bonds issued in
connection with the CaliforniaFIRST Program; 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.
Resolution No. 10-003
Page 3
Section 4. The appropriate officials and staff of the City 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 City Manager from time to time, are hereby designated as the contact
persons for California Communities in connection with the CaliforniaFIRST Program:
Tony Winney, Senior Redevelopment Analyst, (858) 668-4540 or twinney@powaY.orq.
Section 5. The appropriate officials and staff of the City are hereby authorized
and directed to execute and deliver such closing certificates, requisitions, agreements
and related documents as are reasonably required by California Communities in
accordance with the Program Report to implement the CaliforniaFIRST Program for
Participating Property Owners.
Section 6. The appropriate officials and staff of the City are hereby authorized
and directed to pay California Communities a fee in an amount not to exceed $12,500,
which California Communities will use to pay for the costs of implementing the
CaliforniaFIRST Program in the City of Poway, including the payment of legal costs
incurred in connection with judicial validation of the CaliforniaFIRST Program.
Section 7. The City Council hereby finds that adoption of this Resolution is not
a "project" under the California Environmental Quality Act, because the Resolution does
not involve any commitment to a specific project which may result in a potentially
significant physical impact on the environment, as contemplated by Title 14, California
Code of Regulations, Section 15378(b)(4)),
Section 8. 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 the Secretary of California Communities.
PASSED AND ADOPTED AND APPROVED by the City Council of the City of
Poway at a regular meeting this 5th day of ~. ,
kA1;'--~/ \ ,IV
Don Higginson, Mayor
=---
Resolution No. 10-003
Page 4
STATE OF CALIFORNIA )
)SS
COUNTY OF SAN DIEGO)
I, Linda A Troyan, City Clerk of the City of Poway, do hereby certify under
penalty of perjury that the foregoing Resolution No. 10-003 was duly adopted by the
City Council at a meeting of said City Council held on the 5th day of January, 2010, and
that it was so adopted by the following vote:
AYES: BOYACK, CUNNINGHAM, REXFORD, KRUSE, HIGGINSON
NOES: NONE
ABSENT: NONE
DISQUALIFIED: NONE
-
. Troyan, MMC, City erk
Poway
Resolution No. 10-003
Page 5
EXHIBIT A
FORM OF RESOLUTION DECLARING INTENTION
TO FINANCE INSTALLATION OF
DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES,
ENERGY EFFICIENCY AND WATER EFFICIENCY IMPROVEMENTS
COUNTY OF
WHEREAS, the. California Statewide Communities Development Authority
("California Communities") IS authorized under the authority granted c;alifornia
Communities pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of
the State bf Ca.lifornia in accord<jnce with Chapter 29 of Part 3 of Division 70f the
Streets & Highways Code of the State of California ("Chapter 29") to .authorize
assessments to finan<<ethe installation of distributed generation renewable energy
sources, 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 _ (the "County"); and
WHEREAS, California Communities wishes to declare its intentiontb estllblish a
CaliforniaFIRST program (the "CaliforniaFIRST Program") in the County, pursuant to
which Califomia Communities, subject to certain conditions setforth 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 Deveiopment Authority, as follows:
Section 1. FindinQs, California Communities hereby linds and declares the
following:
(a) The above recitals are true and correct.
(q) Energy conservation efforts, including the promotion of enetgycrelated
Authortzed Improvemellts 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.
Resolution No. 10-003
Page 6
(d) The upfront cost of'making residential, commercial, industrial, or other real
property more energy anq 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. .t1W 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 alJ 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 installati.on 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 ihe
County pursuant to Chapter 29.
Section 3. Identification. of Authorized Improvements. California Communities
hereby declares that it proposes to make contractual assessment financing available to
property owners to finance installation of Authorized Improvements, including but not
limited to those improvements detailed in the Report described in Section 8 below, as
that Report may be amended from time.to time.
Section 4. Identification of Boundaries. Contractual assessments may be
entered into by property owners located within the entire geographic territow of the
County; provided, however, that California Communities shall not enter into contractual
assessments to. finance the i,ristallation of Authorized Improvemehts with theowher of
any property in the .County unless requested to do so first by the Counfy 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 Califorf)ia Communities to enter ihto
contractual assessments to finance the installation of Authorized improvements .is
attached as Exhibit A
Section 5. Probosed, Financina ArranQements. 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 flmds to finance work
t9 be repaid throl}gh contraCtual assessmei:lts, and may from time to ,time sell bonds to
reimburse itself fgr such advances. Division i 0 (commencing with Section 8500) 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 19'15 is not in conflict with Chapter 29.
Resolution No. 10-003
Page 7
California Communities shall determine the creditworthiness of a property owner
to participate in the financi~g 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 19'15 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 nexffollowing 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, theit this determination shall not
prevent California Communities from, in its sole discretion, so advancing funcjs. The
bODds may be refunded under Division 11.5 of the California Streets and Highways
Code or other' applicable laws per.mitting 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 cO,unsel and the CaliforniaFIRSTProgram underwriter, to
provide for the issuance of bonds payable from contractual asses'sments.
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 res'pect to delinquent contractual
assessment installments under specified circumstances.
Section 6. Public Heaiinq. 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 iriten:isted persons to objecUo
or:inquire:about the proposed program or any of its particulars. The public hearing may be
continued frorntimeto time as determined by the Commission for a:timenotexceeding a
total of 180 days.
At the time: of the hearing, the Report described in Section 8 .belowshall be
summarized and the Commission shall afford all persons who are presentanopportunity
to comment.ljpon, object to, or present evidence with regard to the proposed contractual
assessmentprogra,m, the extent of the area proposed to be included wjthin the prOgram,
the terms and conditions of the draft Contract. described in Section 8 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.
Resolution No. 10-003
Page 8
The Commission hereby orders the Secretary to publish a notice of public hearing
once a week for two s,uccessiveweeks. 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. Noticedo Water and Electric Providers. Pursuant to Section 5898.24 of
the Streets & Highways Code, the Commission hereby orders the Secretary to provide
written notice of the proposed contractual assessment program within the County to all
water and electric providers within the boundaries of the County not less than 60 days
prior to adoption of the Resolution Confirming Report,
Section 8,. 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, asset forth in Section 4 above.
(b) A draft contrqct (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 equipmerit 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 aii.of'the foliowing:
(1 ) Identification of types of Authorized Improvements that may be
financed through the use of contractual assessments
(2) Identification of .Ca,lifornia Communities official authorized to enter
into cont~actual assessments oh 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.
Resolution No 10-003
Page 9
(d) A plan for raising a capital amount required to pay for work performed
pursuantto contractual assessm,ents. The plan may include amounts to be advanced by
California Communities through funds avail9ble to it from any source. The pl<jn may
include the sale ofa bon9 or bonds or other finanCirig relationship pursuant to Section
5898.28 of Chapter 29: The plan shall include a statement of or method for determinirig
the interest rate ahd 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 fin9ncing,
administration, and collectiol) of the contractual assessment program ambn'g the
consenting property owners arid California Communities.
(e) A report on the results of the consultations with the County Auditor-
Controller described in Section 10 below concerning the additional fees, if any, that will
be charged to California Conlmunities for incorporating 'tlie proposed contractual
assessments into the assessm'ents of the general taxesofthe County on real property,
and a plan for financing the payment ohhose fees.
Section .9. Nature of Assessments. Assessments levied pursuant to Chapter 29,
and the interest and any.pehalties thereon, will constitute alien a'gainst 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 ahd default
Section 10. 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 Coinmunities for incorpora,ting 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), California Communities hereby designates the Program Manager (or
his/her designee) as the responsible official for annlJally preparing the- current roll of
assessment obligations by assessor's parcel number on property subject to a
voluntary. contractual assessment
Section 12. Procedures .for RespondinQ to Inquiries. The Program Manager
shall estal)Jish p'roce,dures to promptly respond to inquiries concerning current and
future'estimated liability for a voluntary contractual assessment.
Section 13. Professionals Appointed. California Communities hereby appoints
Jones Hall, A Professional Law Corporation, San Francisco, California, as bond counsel
to California C.ommunities in connection with the CaliforniaFIRST Program. The
Commission hereby authorizes and directs an Authorized Signatory of California
Resolution No 10-003
Page 10
Communities (as determined from time to time by the Commission by separate
resolution) to enter into appropriate agreements with such firm for iis ,services to
California Communities in connection with the matters addressed in"this Resolution.
Section 14. Set-up Fees. The County and various cities within the County have
advanced 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 15. Effective Date. This resolution shall take effect immediately upon
its adoption.
*****"'***11**
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