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HomeMy WebLinkAboutResolution 2010-001 RESOLUTION NO 2010-001 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING THE CITY TO JOIN THE CALIFORNIAFIRST PROGRAM, AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS, CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE CITY of ATASCADERO; AND AUTHORIZING RELATED ACTIONS WHEREAS, the California Statewide Communities Development Authority ("California Communities") is a point exercise of powers authority the members of which include numerous cities and counties in the State of California, including the City of Atascadero (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 Atascadero 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, and, 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 CaliformaFIRST 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 ern City of Atascadero Resolution No. 2010-001 Page 2 of 10 delinquencies in such assessment payments, or the issuance, sale or administration of the Bonds �.r or any other bonds issued in connection with the CaliforniaFIRST Program, and, WHEREAS, pursuant to Government Code Section 6586 5, a notice of public hearing has been published once at least five days prior to the date hereof in a newspaper of general circulation in the 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 Atascadero 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 CaliformaFIRST 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 arr (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. (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 CaliformaFIRST Program (the "Program Report"), and California Communities will undertake assessment proceedings and the financing of Improvements as set forth in the Program Report. or City of Atascadero Resolution No. 2010-001 Page 3 of 10 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 CaliformaFIRST Program. Warren Frace, Community Development Director and Rachelle Rickard, Finance Director 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 CaliformaFIRST Program 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, 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 the Secretary of California Communities. VM am City of Atascadero Resolution No.2010-001 Page 4 of 10 PASSED AND ADOPTED this 12`h day of January, 2010 �.r On motion by Mayor Fonzi and seconded by Council Member Clay, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote AYES Council Members Beraud, Clay, Kelley, O'Malley and Mayor Fonzi NOES None ABSENT None ADOPTED- January 12, 2010 CITY OF ATASCADERO By- - L'. Roberta Fonzi,Mayor �rrrr ATTEST AN4 JY Marcia McClure Torgerson, C.M.0 , City Clerk APPROVED AS TO FORM. r i Brian A. Pienk, City Attorney WAW City of Atascadero Resolution No. 2010-001 Page 5 of 10 EXHIBIT A: rrrr DRAFT FORM OF RESOLUTION OF DECLARING INTENTION TO FINANCE INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY EFFICIENCY AND WATER EFFICIENCY IMPROVEMENTS DRAFT 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 treets & Highways Code of the State of California ("Chapter 29") to authorize assess n t 'nance the installation of distributed f cien generation renewable energy sources, energy efy n ter efficiency improvements that are permanently fixed to real property ("Authorize Im ro men "), and WHEREAS, Chapter 29 authorizes-," uthorizes if rnia m ities to enter into contractual assessments to fina a installation o Author Im ro m is in the County of (the "County"), and WHEREA C lif nia mm nitie wi es t d lar its intention to establish a CaliforniaFIRST pr gra (t a lifo iaFl S rog ") the ounty, pursuant to which California Communi ies, su 'ect rtai c i t i o forth below, would enter into contractual assessme is t fin nc t e i tall tion o orized Improvements in the County; NOW, THEREF R , BE E LVED by the California Statewide Communities Development Authority, a follows. Section 1. Findin s. 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 City of Atascadero Resolution No. 2010-001 Page 6 of 10 +�••� (e) A public purpose will be served by establishing a contractual assessment program, to be known as the CaliforniaFIRST Program, pursuant to which California Communities will finance the installation of Authorized Improvements to residential, commercial, industrial, or other real property in the County Section 2. Determination of Public Interest. California Communities hereby determines that (a) it would be convenient, advantageous, and in the public interest to designate an area, which shall encompass the entire geographic territory within the boundaries of the County, within which California Communities and property owners within the County may enter into contractual assessments to finance the installation of Authorized Improvements pursuant to Chapter 29 and (b) it is in the public interest for California Communities to finance the installation of Authorized Improvements in the County pursuant to Chapter 29 Section 3. Identification of Authorized Improvements California Communities hereby declares that it proposes to 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 Sectio 8 below, as that Report may be amended from time to time Section 4 Identification of Boundaries C ntr ctu I ass ssments may be entered into by property owners located within the entire geo rap i territo y of the County; provided, however, that California Communities shall not er 'nto co ct I assessments to finance the installation of Authoriz iprovements wi the er o an p perty in the County unless requested to do so by the ount 'f rop i to ate in ni orporated territory or a city ...r if the property is lo( ted in incor o to to n o a d a er uc ci or County, as applicable, has held a public he rin p sua t o S ion 8 5 t e ov nme Code of the State of California. The form f re olu 'on u sua t to hiiti ay equ California Communities to enter into contractu as es e s to an e t nsta a ' of Authorized Improvements is attached as Exhibit A. Section 5. ProD se Ina cil q rran ements. Under Chapter 29, California Communities may issue onds pu suan to Chapter 29 that are payable by contractual assessments and California Co nities may advance its own funds to finance work to be repaid through contractual a essments, 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 City of Atascadero Resolution No. 2010-001 Page 7 of 10 by California Communities at the time of the issuance and sale of the bonds. The provisions rrrr+ 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 Hearing. Pursuant to the Act, r a Communities hereby orders that a public hearing be held before this Commission, at o1 , 2010 at a.m , for the purposes of allowing interested ers ns o ob ct to or inquire about the proposed program or any of its particulars. The public h rin ay be ontinued from time to time as determined by the Commission for a time not e d g a to f 1 0 days. At the time of earin , the R o esc ' d ect n b ow shall be summarized and the Commission all afford rs ns r pr e t a o o 'ty to comment upon, object to, or present ev en "th r g rd t hep p e c tra tua asse sment program, the extent of the area pr opo ed in u ed withi th og th ter and conditions of the draft Contract described i Se do 8 w, r th p se fi ing provisions. Following the public hearing, California Co mu itie a ad t a tion confirming the Report (the "Resolution Confirming Rep rt") r ay di ct he 's modification in any respect, or may abandon the proceedings. The Commission hereby rd e he 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. rrrrr City of Atascadero Resolution No. 2010-001 Page 8 of 10 Section 8. Report. The Commission hereby directs the Program Manager for the rr 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 c ntractual assessments in the County (4) A method for setting requests fro pr e y ow rs for financing through contractual assessments in priority order in the ve hat re uests appear likely to exceed the authorization amount. (d) A plan fo ising a apital t re ire t pa fo wo k erformed pursuant to contractual assessm nts The p n m y i I mo n t be ad a ced by California Communities through fun s a_ai le t fro any our e h pl n yin ude the sale of a bond or bonds or other fin ni g r Iati n hip urs ant Se ti n 98. f Chapter 29 The plan shall include a statem nt f o me d f r d erA i mg e ' rest rate and time period during which contracting pro rty w rs Id ay ny as ent. The plan shall provide for any reserve fund or funds. Th pl s all r vid for pportionment of all or any portion of the costs incidental to financin , a inist ati , nd collection of the contractual assessment program among the consenting operty o ners and California Communities (e) A report on the re is 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 aw City of Atascadero Resolution No. 2010-001 Page 9 of 10 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 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 Responding to Inquiries The Program Manager shall establish procedures to promptly respond to inquiries concerning current and future estimated liability for a voluntary contractual assessment. Section 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-Up Fees. The County and va ous i ies within the County have advanced fees to California Communities to pay for ce ain cost of establishing the CaliforniaFIRST Program, some or all of which represent at ergy ogram (SEP) funds. The Program Manager is hereby authorizedand direc t return th County and cities, as applicable, any fees paid to Cali is Communities y the unity n citi s, as applicable, that do not represent SEP fun nd tha alifor ' mm 'tie es of se to pay for the costs of establishing the Californi FIRST Pro a Section 15 Effecti a ate. Th es lutio sal tae ffe t i diately upon its adoption PASSED AND ADOPT D y he ifo is ide Communities Development Authority this , 2010 I, the undersigned, the duly ppo' d, and qualified member of the Commission of the California Statewide Communities velopment 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 City of Atascadero Resolution No. 2010-001 Page 10 of 10 EXHIBIT XX trrr FORM OF RESOLUTION AUTHORIZING CALIFORNIA COMMUNITIES TO CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS aw sm