CC Resolution 11112
RESOLUTION NO. 11112
RESOLUTION AUTHORIZING THE CITY OF CAMPBELL 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 CAMPBELL; 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
Campbell (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 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 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
CaliforniaFIRST Program; and
WHEREAS, the City will not be responsible for the start-up costs for the
CaliforniaFIRST Program which are estimated to not exceed $12,500, in that these costs
will be paid by other grant funding sources; and
WHEREAS, pursuant to Government Code Section 6586.5, a notice of public
hearing has been published once at least five days prior to the date hereof in a
newspaper of general circulation in the 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
Campbell 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 CaliforniaFIRST Program will provide significant
public benefits, including without limitation, savings in effective interest rate, bond
preparation, bond underwriting and bond issuance costs and reductions in effective user
charges levied by water and electricity providers within the boundaries of the 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; and
(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.
Section 3. Pursuant to the requirements of Chapter 29, California
Communities has prepared and will update from time to time the "Program Report" for
the CaliforniaFIRST Program (the "Program Report"), and California Communities will
undertake assessment proceedings and the financing of Improvements as set forth in
the Program Report.
Section 4. The appropriate officials and staff of the 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:
Paul Kermovan, Plannina Manaaer.
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 and to evidence compliance with the
requirements of federal and state law in connection with the issuance by California
Communities of the Bonds and any other bonds for the CaliforniaFIRST Program. To
that end, and pursuant to Treasury Regulations Section 1.150-2, the staff persons listed
in Section 3 above, or other staff person acting in the same capacity for the City with
respect to the CaliforniaFIRST Program, are hereby authorized and designated to
declare the official intent of the City with respect to the Improvements to be paid or
reimbursed through participation in the CaliforniaFIRST Program.
Section 6. The City understands that payment to California Communities of 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 Campbell,
including the payment of legal costs incurred in connection with judicial validation of the
CaliforniaFIRST Program. The City also understands that any required fees to pay
California Communities will be paid by other grant funding sources and the City will not
be liable or otherwise responsible for these costs.
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 the Secretary of California Communities.
PASSED AND ADOPTED this 5th
following roll call vote:
day of
January
, 2Ql~ by the
AYES:
Council Members
Kotowski, Kennedy, Furtado, Baker, Low
NOES:
Council Members
None
ABSENT:
Council Members
None
AP&:D /
1~4~
Evan Low, Mayor
A~
Anne Bybee, City Clerk
EXHIBIT A
This resolution will be considered for adoption by the CSCDA Board on January 27,
2010.
RESOLUTION NO.
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 California
Communities pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of
the State of California in accordance with Chapter 29 of Part 3 of Division 7 of the
Streets & Highways Code of the State of California ("Chapter 29") to authorize
assessments to finance the installation of distributed generation renewable energy
sources, 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 intention to establish a
CaliforniaFIRST program (the "CaliforniaFIRST Program") in the County, pursuant to
which California Communities, subject to certain conditions set forth below, would enter
into contractual assessments to finance the installation of Authorized Improvements in
the County;
NOW, THEREFORE, BE IT RESOLVED by the California Statewide
Communities Development Authority, as follows:
Section 1. Findinas. California Communities hereby finds and declares the
following:
(a) The above recitals are true and correct.
(b) Energy conservation efforts, including the promotion of energy-related
Authorized Improvements to residential, commercial, industrial, or other real property,
are necessary to address the issue of global climate change and the reduction of
greenhouse gas emissions in the County.
(c) Water conservation efforts, including the promotion of water-related
Authorized Improvements to residential, commercial, industrial, or other real property,
are necessary to address the issue of chronic water shortages in California.
(d) The upfront cost of making residential, commercial, industrial, or other
real property more energy and water efficient, along with the fact that most commercial
loans for that purpose are due on the sale of the property, prevents many property
owners from installing Authorized Improvements.
(e) A public purpose will be served by establishing a contractual assessment
program, to be known as the CaliforniaFIRST Program, pursuant to which California
Communities will finance the installation of Authorized Improvements to residential,
commercial, industrial, or other real property in the County.
Section 2. Determination of Public Interest. California Communities hereby
determines that (a) it would be convenient, advantageous, and in the public interest to
designate an area, which shall encompass the entire geographic territory within the
boundaries of the County, within which California Communities and property owners
within the County may enter into contractual assessments to finance the installation of
Authorized Improvements pursuant to Chapter 29 and (b) it is in the public interest for
California Communities to finance the installation of Authorized Improvements in the
County pursuant to Chapter 29.
Section 3. Identification of Authorized ImDrovements. 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 territory of the
County; provided, however, that California Communities shall not enter into contractual
assessments to finance the installation of Authorized Improvements with the owner of
any property in the County unless requested to do so first by the County if the property is
located in unincorporated territory or a city if the property is located in incorporated territory
and after such city or the County, as applicable, has held a public hearing pursuant to
Section 6586.5 of the Government Code of the State of California. The form of resolution
pursuant to which cities may request California Communities to enter into contractual
assessments to finance the installation of Authorized Improvements is attached as
Exhibit A.
Section 5. ProDosed Financina Arranaements. Under Chapter 29,
California Communities may issue bonds pursuant to Chapter 29 that are payable by
contractual assessments and California Communities may advance its own funds to
finance work to be repaid through contractual assessments, and may from time to time
sell bonds to reimburse itself for such advances. Division 10 (commencing with
Section 8500) of the Streets & Highways Code of the State (the "Improvement Bond
Act of 1915") shall apply to any bonds issued pursuant to Chapter 29, insofar as the
Improvement Bond Act of 1915 is not in conflict with Chapter 29.
California Communities shall determine the creditworthiness of a property owner
to participate in the financing of Authorized Improvements based on the criteria
developed by the Program Manager in consultation with the CaliforniaFIRST Program
financing team and on file with the Secretary.
In connection with bonds issued under the Improvement Bond Act of 1915 that
are payable from contractual assessments, serial and/or term improvement bonds
shall be issued in such series and shall mature in such principal amounts and at such
times (not to exceed 20 years from the second day of September next following their
date) and at such rate or rates of interest (not to exceed the maximum rate permitted
by applicable law) as shall be determined by California Communities at the time of the
issuance and sale of the bonds. The provisions of Part 11.1 of the Improvement Bond
Act of 1915 shall apply to the calling of the bonds. It is the intention of California
Communities to create a special reserve fund for the bonds under Part 16 of the
Improvement Bond Act of 1915. California Communities will not advance available
surplus funds from its treasury to cure any deficiency in the redemption fund to be
created with respect to the bonds; provided, however, that this determination shall not
prevent California Communities from, in its sole discretion, so advancing funds. The
bonds may be refunded under Division 11.5 of the California Streets and Highways
Code or other applicable laws permitting refunding of the bonds, upon the conditions
specified by and at the determination of California Communities.
California Communities hereby authorizes the Program Manager, upon
consultation with bond counsel and the CaliforniaFIRST Program underwriter, to
provide for the issuance of bonds payable from contractual assessments.
In connection with the issuance of bonds payable from contractual
assessments, California Communities expects to obligate itself, through a covenant
with the owners of the bonds, to exercise its foreclosure rights with respect to
delinquent contractual assessment installments under speCified circumstances.
Section 6. Public Hearina. Pursuant to the Act, California Communities hereby
orders that a public hearing be held before this Commission, at , on ,
, 2010 at _ a.m., for the purposes of allowing interested persons to object to
or inquire about the proposed program or any of its particulars. The public hearing may be
continued from time to time as determined by the Commission for a time not exceeding a
total of 180 days.
At the time of the hearing, the Report described in Section 8 below shall be
summarized and the Commission shall afford all persons who are present an opportunity
to comment upon, object to, or present evidence with regard to the proposed contractual
assessment program, the extent of the area proposed to be included within the program,
the terms and conditions of the draft Contract described in Section 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.
The Commission hereby orders the Secretary to publish a notice of public hearing
once a week for two successive weeks. Two publications in a newspaper published once
a week or more often, with at least five days intervening between the respective
publication dates not counting such publication dates, are sufficient. The period of notice
will commence upon the first day of publication and terminate at the end of the fourteenth
day. The first publication shall occur not later than 20 days before the date of the public
hearing.
Section 7. Notice to 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. ReDort. The Commission hereby directs the Program Manager for the
CaliforniaFIRST Program to prepare and file with the Commission a report (the "Report")
at or before the time of the public hearing described in Section 6 above containing all of
the following:
(a) A map showing the boundaries of the territory within which contractual
assessments are proposed to be offered, as set forth in Section 4 above.
(b) A draft contract (the "Contract") specifying the terms and conditions that
would be agreed to by California Communities and a property owner within the County.
The Contract may allow property owners to purchase directly the related equipment and
materials for the installation of the Authorized Improvements and to contract directly for
the installation of such Authorized Improvements.
(c) A statement of California Communities' policies concerning contractual
assessments including all of the following:
(1) Identification of types of Authorized Improvements that may be
financed through the use of contractual assessments.
(2) Identification of California Communities official authorized to enter
into contractual assessments on behalf of California Communities.
(3) A maximum aggregate dollar amount of contractual assessments
in the County.
(4) A method for setting requests from property owners for financing
through contractual assessments in priority order in the event that requests
appear likely to exceed the authorization amount.
(d) A plan for raising a capital amount required to pay for work performed
pursuant to contractual assessments. The plan may include amounts to be advanced by
California Communities through funds available to it from any source. The plan may
include the sale of a bond or bonds or other financing relationship pursuant to Section
5898.28 of Chapter 29. The plan shall include a statement of or method for determining
the interest rate and time period during which contracting property owners would pay
any assessment. The plan shall provide for any reserve fund or funds. The plan shall
provide for the apportionment of all or any portion of the costs incidental to financing,
administration, and collection of the contractual assessment program among the
consenting property owners and California Communities.
(e) A report on the results of the consultations with the County Auditor-
Controller described in Section 10 below concerning the additional fees, if any, that will
be charged to California Communities for incorporating the proposed contractual
assessments into the assessments of the general taxes of the County on real property,
and a plan for financing the payment of those fees.
Section 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 California Communities, the assessments shall be collected in the same
manner and at the same time as the general taxes of the County on real property are
payable, and subject to the same penalties and remedies and lien priorities in the
event of delinquency and default.
Section 10. Consultations with Countv Auditor-Controller. California
Communities hereby directs the Program Manager to enter into consultations with the
County Auditor-Controller in order to reach agreement on what additional fees, if any,
will be charged to California Communities for incorporating the proposed contractual
assessments into the assessments of the general taxes of the County on real property.
Section 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 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 Respondina to Inauiries. The Program Manager
shall establish procedures 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 Communities in connection with the CaliforniaFIRST Program. The
Commission hereby authorizes and directs an Authorized Signatory of California
Communities (as determined from time to time by the Commission by separate
resolution) to enter into appropriate agreements with such firm for its services to
California Communities in connection with the matters addressed in this Resolution.
Section 14. Set-Uo 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.
************
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