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
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(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.
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City of Atascadero
Resolution No.2010-001
Page 4 of 10
PASSED AND ADOPTED this 12`h day of January, 2010
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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
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ATTEST
AN4 JY
Marcia McClure Torgerson, C.M.0 ,
City Clerk
APPROVED AS TO FORM.
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Brian A. Pienk, City Attorney
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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.
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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
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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
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