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HomeMy WebLinkAboutCC_2016-04-26_Agenda Packet CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, April 26, 2016 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California (Entrance on Lewis Ave.) CITY COUNCIL CLOSED SESSION: 5:30 P.M. 1. CLOSED SESSION -- PUBLIC COMMENT 2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION 3. CLOSED SESSION -- CALL TO ORDER a. Conference with Labor Negotiators (Govt. Code Sec. 54957.6) Agency designated representatives: Rachelle Rickard, City Manager Employee Organization: Atascadero Firefighters Bargaining Unit 4. CLOSED SESSION – ADJOURNMENT 5. COUNCIL RETURNS TO CHAMBERS 6. CLOSED SESSION – REPORT REGULAR SESSION – CALL TO ORDER: 6:00 P.M. City Council Closed Session: 5:30 P.M. City Council Regular Session: 6:00 P.M. Page 1 PLEDGE OF ALLEGIANCE: Mayor Pro Tem Moreno ROLL CALL: Mayor O’Malley Mayor Pro Tem Moreno Council Member Fonzi Council Member Kelley Council Member Sturtevant APPROVAL OF AGENDA: Roll Call PRESENTATIONS: 1. Proclamation Recognizing 20 Years of Service by the Assistance League of San Luis Obispo County 2. Bike Month Presentation by Peter Williamson of SLOCOG A. CONSENT CALENDAR: (All items on the consent calendar are considered to be routine and non-controversial by City staff and will be approved by one motion if no member of the Council or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Council concerning the item before action is taken. DRAFT MINUTES: Council meeting draft minutes are listed on the Consent Calendar for approval of the minutes. Should anyone wish to request an amendment to draft minutes, the item will be removed from the Consent Calendar and their suggestion will be considered by the City Council. If anyone desires to express their opinion concerning issues included in draft minutes, they should share their opinion during the Community Forum portion of the meeting.) 1. City Council Draft Action Minutes – April 12, 2016  Recommendation: Council approve the City Council Draft Action Minutes of the April 12, 2016 City Council meeting. [City Clerk] 2. City Attorney Budget  Fiscal Impact: The fiscal impact is the expenditure of an additional $150,000 in General Fund reserves.  Recommendation: Authorize the Director of Administrative Services to appropriate $150,000 in general fund reserves for additional legal services. [City Attorney] Page 2 3. Professional Engineering and Environmental Services for Phase 1 of the Via Avenue and Santa Lucia Road Bridge Replacement Projects  Fiscal Impact: The fiscal impact of the award of the Phase I Engineering and Environmental Services contract for the Santa Lucia Bridge Project is the expenditure of $303,906 in budgeted HBRRP grant funds. The fiscal impact of the award of the Phase I Engineering and Environment al Services contract for the Via Avenue Bridge Project is the expenditure of $263,337 in budgeted HBRRP grant funds and $34,118 in budgeted Local Transportation Funds.  Recommendations: Council: 1. Authorize the City Manager to execute a contract with Quincy Engineering to provide professional engineering and environmental services for Phase 1 of the Via Avenue Bridge Replacement Project for a fee not to exceed $297,455; and 2. Authorize the City Manager to execute a contract with Quincy Engineering to provide professional engineering and environmental services for Phase 1 of the Santa Lucia Road Bridge Replacement Project for a fee not to exceed $303,906. [Public Works] 4. Radio Simulcast Project  Fiscal Impact: Approval of the receiver system replacement and installation of the simulcast system will result in the expenditure of $110,078.  Recommendations: Council: 1. Authorize the City Manager to execute a contract with Spur Solutions in the amount of $110,078 for the purchase and installation of equipment to replace microwave radio equipment and to create a simulcast radio system; and 2. Authorize the Director of Administrative Services to appropriate $61,890 in Police Realignment Funds and Supplemental Law Enforcement Services Funds, $35,760 in Fire Bertha Schultz Grant Funds, and $12,440 in General Fund Reserves for the purchase and installation of radio equipment. [Police] 5. Community Facilities District 2005-1 / Annexations No. 14, 15 and 16  Fiscal Impact: The establishment of Annexations No. 14, 15, and 16 into the CFD is intended to mitigate the fiscal impact of residential development on the City.  Recommendations: Council: 1. Adopt on second reading, by title only, Draft Ordinance A, authorizing the levy of special taxes in Community Facilities District 2005- 1 for certain annexation territory; and 2. Adopt on second reading, by title only, Draft Ordinance B, authorizing the levy of special taxes in Community Facilities District 2005 - 1 for certain annexation territory; and Page 3 3. Adopt on second reading, by title only, Draft Ordinance C, authorizing the levy of special taxes in Community Facilities District 2005 - 1 for certain annexation territory. [Community Development] UPDATES FROM THE CITY MANAGER: (The City Manager will give an oral report on any current issues of concern to the City Council.) COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to address the Council on any matter not on this agenda and over which th e Council has jurisdiction. Speakers are limited to three minutes. Please state your name for the record before making your presentation. Comments made during Community Forum will not be a subject of discussion. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council. Any members of the public who have questions or need information may contact the City Clerk’s Office, between the hours of 8:30 a.m. and 5:00 p.m. at 470-3400, or cityclerk@atascadero.org) B. PUBLIC HEARINGS: None C. MANAGEMENT REPORTS: 1. SLOCOG’s Self-Help County Efforts  Fiscal Impact: There is no significant direct fiscal impact for the recommendations.  Recommendations: Council: 1. Review and Comment on Draft Transportation Investment Plan categories and distributions including 9-year duration, formula distribution for Local Road Repairs and Transportation Improvements, and Safeguards; and, 2. Identify the key projects for local transportation funding as: roadway maintenance, repair, and rehabilitation; congestion management at key intersections; and bike /pedestrian improvements and connectivity; and, 3. Direct staff to work with SLOCOG to develop a Final Transportation Investment Plan, Ordinance, and Safeguards for City and County evaluation to place on the November 2016 ballot for voter consideration. [Public Works] 2. Property Assessed Clean Energy (PACE) Programs  Fiscal Impact: There is no fiscal impact associated with the recommended actions.  Recommendations: Council: 1. Adopt Draft Resolution A approving an amendment to the Western Riverside Council of Governments (WRCOG) Joint Powers Agreement to add the City as an Associate Member in order to authorize the City's participation in the California HERO Program; and Page 4 2. Adopt Draft Resolution B to join the California Home Finance Authority (CHFA) JPA as an Associate Member in order to authorize the City's participation in the CHFA SB 555 Community Facilities District (YGrene program); and 3. Adopt Draft Resolution C to join the California Home Finance Authority (CHFA) JPA as an Associate Member in order to authorize the City's participation in the CHFA AB 811 Authority PACE Program (YGrene program); and 4. Authorize the City Manager to execute agreements with PACE program providers WRCOG and YGrene. [City Manager] 3. Consideration of Ballot Measure for Appointive City Clerk and City Treasurer  Fiscal Impact: The addition of a ballot measure to the November 2016 ballot will be approximately $3,000. If the ballot measure is successful, savings from the elimination of the stipends and health benefit costs for these elected positions will be over $14,800 per position annually.  Recommendation: Council direct the City Clerk to bring back to the Council in June 2016, the Resolution required for placing a ballot measure on the ballot for the General Municipal Election to be held on Tuesday, November 8, 2016, asking voters “Shall the City Clerk and City Treasurer be appointive?” [City Clerk] COUNCIL ANNOUNCEMENTS AND REPORTS: (On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. Council Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.) D. COMMITTEE REPORTS: (The following represent standing committees. Informative status reports will be given, as felt necessary): Mayor O’Malley 1. City / Schools Committee 2. County Mayors Round Table 3. Integrated Waste Management Authority (IWMA) 4. SLO Council of Governments (SLOCOG) 5. SLO Regional Transit Authority (RTA) Mayor Pro Tem Moreno 1. California Joint Powers Insurance Authority (CJPIA) Board 2. City of Atascadero Finance Committee (Chair) 3. Economic Vitality Corporation, Board of Directors (EVC) Council Member Fonzi 1. Air Pollution Control District 2. Oversight Board for Successor Agency to the Community Redevelopment Agency of Atascadero Page 5 3. SLO Local Agency Formation Commission (LAFCo) 4. City of Atascadero Design Review Committee 5. SLO County Water Resources Advisory Committee (WRAC) 6. Water Issues Liaison Council Member Kelley 1. Atascadero State Hospital Advisory Committee 2. City of Atascadero Design Review Committee 3. Homeless Services Oversight Council 4. City of Atascadero Finance Committee Council Member Sturtevant 1. City / Schools Committee 2. League of California Cities – Council Liaison E. INDIVIDUAL DETERMINATION AND / OR ACTION: 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager F. ADJOURNMENT Please note: Should anyone challenge any proposed development entitlement listed on this Agenda in court, that person may be limited to raising those issues addressed at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this public hearing. Correspondence submitted at this public hearing will be distributed to the Council and available for review in the City Clerk's office. I, Lori M. Kudzma, Deputy City Clerk of the City of Atascadero, declare under the penalty of perjury that the foregoing agenda for the April 26, 2016 Regular Session of the Atascadero City Council was posted on April 19, 2016, at the Atascadero City Hall, 6500 Palma Avenue, Atascadero, CA 93422 and was available for public review at that location. Signed this 19th day of April, 2016, at Atascadero, California. Lori M. Kudzma, Deputy City Clerk City of Atascadero Page 6 City of Atascadero WELCOME TO THE ATASCADERO CITY COUNCIL MEETING The City Council meets in regular session on the second and fourth Tuesday of each month at 6:00 p.m. Council meetings will be held at the City Hall Council Chambers, 6500 Palma Avenue, Atascadero. Matters are considered by the Council in the order of the printed Agenda. Regular Council meetings are televised live, audio recorded and videotaped for future playback. Charter Communication customers may view the meetings on Charter Cable Channel 20 or via the City’s website at www.atascadero.org. Meetings are also broadcast on radio station KPRL AM 1230. Contact the City Clerk for more information (470-3400). Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the office of the City Clerk and are available for public inspection during City Hall business hours at the Front Counter of City Hall, 6500 Palma Avenue, Atascadero, and on our website, www.atascadero.org. Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the City Council. The minutes of this meeti ng will reflect these numbers. All documents submitted by the public during Council meetings that are either read into the record or referred to in their statement will be noted in the minutes and available for review in the City Clerk's office . In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Manager’s Office or the City Clerk’s Office, both at (805) 470-3400. Notification at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. TO SPEAK ON SUBJECTS NOT LISTED ON THE AGENDA Under Agenda item, “COMMUNITY FORUM”, the Mayor will call for anyone from the audience having business with the Council to approach the lectern and be recognized. 1. Give your name for the record (not required) 2. State the nature of your business. 3. All comments are limited to 3 minutes. 4. All comments should be made to the Mayor and Council. 5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present This is the time item s not on the Agenda may be brought to the Council’s attention. A maximum of 30 minutes will be allowed for Community Forum (unless changed by the Council). If you wish to use a computer presentation to support your comments, you must notify the City Clerk 's office at least 24 hours prior to the meeting. Digital presentations must be brought to the meeting on a USB drive or CD. You are required to submit to the City Clerk a printed copy of your presentation for the record. Please check in with the City C lerk before the meeting begins to announce your presence and turn in the printed copy. TO SPEAK ON AGENDA ITEMS (from Title 2, Chapter 1 of the Atascadero Municipal Code) Members of the audience may speak on any item on the agenda. The Mayor will identify the subject, staff will give their report, and the Council will ask questions of staff. The Mayor will announce when the public comment period is open and will request anyone interested to address the Council regarding the matter being considered to step up to the lectern. If you wish to speak for, against or comment in any way: 1. You must approach the lectern and be recognized by the Mayor 2. Give your name (not required) 3. Make your statement 4. All comments should be made to the Mayor and Council 5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present 6. All comments limited to 3 minutes The Mayor will announce when the public comment period is closed, and thereafter, no furt her public comments will be heard by the Council. Page 7 ITEM NUMBER: A-1 DATE: 04/26/16 Atascadero City Council April 12, 2016 Page 1 of 9 CITY OF ATASCADERO CITY COUNCIL DRAFT MINUTES Tuesday, April 12, 2016 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California CITY COUNCIL CLOSED SESSION: 5:00 P.M. Mayor O’Malley announced at 5:00 p.m. that the Council is going into Closed Session. 1. CLOSED SESSION -- PUBLIC COMMENT - None 2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION 3. CLOSED SESSION -- CALL TO ORDER a. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6 Agency Designated Representatives: City Manager and City Attorney Unrepresented Employee: Fire Chief b. Conference with Legal Counsel – Anticipated Litigation Initiation of litigation pursuant to Government Code Section 54956.9 (d)(4) - one case. City Council Closed Session: 5:00 P.M. City Council Regular Session: 6:00 P.M. Page 8 ITEM NUMBER: A-1 DATE: 04/26/16 Atascadero City Council April 12, 2016 Page 2 of 9 4. CLOSED SESSION – ADJOURNMENT 5. COUNCIL RETURNS TO CHAMBERS 6. CLOSED SESSION – REPORT The City Attorney reported that there was no reportable action. REGULAR SESSION – CALL TO ORDER: 6:00 P.M. Mayor O’Malley called the meeting to order at 6:02 p.m. and Police Chief Jerel Haley led the Pledge of Allegiance. ROLL CALL: Present: Council Members Kelley, Fonzi, Sturtevant, Mayor Pro Tem Moreno, and Mayor O’Malley Absent: None Others Present: City Clerk Marcia McClure Torgerson Staff Present: City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Community Development Director Phil Dunsmore, Public Works Director Nick DeBar, Police Chief Jerel Haley, City Attorney Brian Pierik, and Deputy City Manager Lara Christensen. APPROVAL OF AGENDA: MOTION: By Council Member Sturtevant and seconded by Council Member Fonzi to approve the agenda. Motion passed 5:0 by a roll-call vote. PRESENTATIONS: 1. Proclamation Recognizing April 2016 as Sexual Assault Awareness Month The City Council presented the Proclamation to RISE Executive Director Jennifer Adams and RISE Board Member Greg Malik. Page 9 ITEM NUMBER: A-1 DATE: 04/26/16 Atascadero City Council April 12, 2016 Page 3 of 9 2. Presentation by Support Services for Veterans Families Brandy Bowser, of Support Services for Veterans Families, gave a presentation about the services they provide and their End Veteran Homelessness Initiative. A. CONSENT CALENDAR: 1. City Council Draft Action Minutes – March 22, 2016  Recommendation: Council approve the City Council Draft Action Minutes of the March 22, 2016 City Council meeting. [City Clerk] 2. February 2016 Accounts Payable and Payroll  Fiscal Impact: $1,634,741.20  Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for February 2016. [Administrative Services] 3. Improvement District No. 4 (Separado-Cayucos Assessment District) Closeout  Fiscal Impact: Use of $50,929 in the Assessment District No. 4 Funds, less closeout fees, refunded to the eligible property owners.  Recommendation: Council adopt a Draft Resolution declaring the remaining funds as surplus, ordering the disposition of surplus amounts, and approving the District Closeout Analysis and Findings Report prepared by NBS for the City of Atascadero Improvement District No. 4 (Separado-Cayucos Assessment District). [Administrative Services] 4. Ordinance Amending Section 9-6.186 of the Atascadero Municipal Code Regarding Marijuana Cultivation Facilities (PLN 2015-1574)  Fiscal Impact: The proposed ordinance represents a continuation of existing enforcement policies regarding medical marijuana facilities, so there would be no change in the fiscal impact for the City.  Recommendation: Council adopt on second reading, by title only, Draft Ordinance A amending Section 9-6.186 of the Atascadero Municipal Code Regarding Marijuana Cultivation Facilities. [Community Development] 5. Weed/Refuse Abatement Program  Fiscal Impact: The City recovers costs for administering this program through the 150% administrative charge, which is placed on the San Luis Obispo County Special Tax Assessment for the fiscal year 2016 -2017 Tax Roll.  Recommendation: Council adopt the Draft Resolution declaring vegetative growth and/or refuse a public nuisance, commencing proceedings for the abatement of said nuisances, and placing all abatement fees on the San Luis Obispo County Special Tax Assessment for the fiscal year 2016 -2017 Tax Roll. [Fire] Page 10 ITEM NUMBER: A-1 DATE: 04/26/16 Atascadero City Council April 12, 2016 Page 4 of 9 MOTION: By Council Member Fonzi and seconded by Council Member Kelley to approve the Consent Calendar. Motion passed 5:0 by a roll-call vote. (#A-3: Resolution No. 2016-015, #A-4: Ordinance No. 597, #A-5: Resolution No. 2016- 016) UPDATES FROM THE CITY MANAGER: City Manager Rachelle Rickard gave an update on projects and issues within the City. COMMUNITY FORUM: The following citizens spoke during Community Forum: Ted Mort, Gayle Bruce (Exhibit A), Charles Bourbeau, John Trumbeau (Exhibit B), Nancy Hair, Barbara Combs, Paul Murphy, Mike Brennler, and Kevin Campion. Mayor O’Malley closed the COMMUNITY FORUM period. B. PUBLIC HEARINGS: 1. Community Facilities District 2005-1 Annexation No. 14 – 5310 Carrizo Tract 2625 / Annexation No. 15 – 8570 El Corte Tract 2802 / Annexation No. 16 – 10380 El Camino Real VTPM #AT 14-0028  Ex-Parte Communications:  Fiscal Impact: The establishment of Annexations No. 14, 15, and 16 into the CFD is intended to mitigate the fiscal impact of residential development on the City. These three projects, totaling 23 units, would provide $14,951.84 annually at build out, based on the curre nt Actual Rates, levied to fund the expansion of Police, Fire, and Park Services associated with the new residential units.  Recommendations: Council: 1. Conduct a public hearing on the proposed annexations; and, 2. Adopt Draft Resolution A, authorizing the territory identified in City Council Resolution 2016-006 (Annexation No. 14 - 5310 Carrizo Tract 2625) to be annexed into the Community Facilities District No. 2005-1, authorizing the levy of a special tax and submitting the levy of a special tax to qualified electors; and, 3. Adopt Draft Resolution B, authorizing the territory identified in City Council Resolution 2016-007 (Annexation No. 15 - 8570 El Corte Tract 2802) to be annexed into the Community Facilities District No. Page 11 ITEM NUMBER: A-1 DATE: 04/26/16 Atascadero City Council April 12, 2016 Page 5 of 9 2005-1, authorizing the levy of a special tax and submitting the levy of a special tax to qualified electors; and, 4. Adopt Draft Resolution C, authorizing the territory identified in City Council Resolution 2016-008 (Annexation No. 16 – 10380 El Camino Real VTPM #AT 14-0028) to be annexed into the Community Facilities District No. 2005-1, authorizing the levy of a special tax and submitting the levy of a special tax to qualified electors; and, 5. Direct the City Clerk to conduct landowner votes of annexations and collect and count the ballots. Council to recess until ballots are counted 6. Adopt Draft Resolution D, declaring the results of a special annexation landowner election for Annexation No. 14 (5310 Carrizo Tract 2625), determining the validity of prior proceedings and directing the recording of an amendment to the notice of special tax lien; and, 7. Adopt Draft Resolution E, declaring the results of a special annexation landowner election for Annexation No. 15 (8570 El Corte Tract 2802), determining the validity of prior proceedings and directing the recording of an amendment to the notice of special tax lien; and, 8. Adopt Draft Resolution F, declaring the results of a special annexation landowner election for Annexation No. 16 (10380 El Camino Real VTPM #AT 14-0028), determining the validity of prior proceedings and directing the recording of an amendment to the notice of special tax lien; and, 9. Introduce for first reading, by title only, Draft Ordinance A, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory identified as Annexation No. 14 (5310 Carrizo Tract 2625); and, 10. Introduce for first reading, by title only, Draft Ordinance B, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory identified as Annexation No. 15 (8570 El Corte Tract 2802); and, 11. Introduce for first reading, by title only, Draft Ordinance C, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory identified as Annexation No. 16 (10380 El Camino Real VTPM #AT 14 -0028). [Community Development] Community Development Director Phil Dunsmore gave the staff report and answered questions from the Council. Page 12 ITEM NUMBER: A-1 DATE: 04/26/16 Atascadero City Council April 12, 2016 Page 6 of 9 Ex Parte Communications None PUBLIC COMMENT: None MOTION: By Mayor Pro Tem Moreno and seconded by Council Member Sturtevant to: 2. Adopt Draft Resolution A, authorizing the territory identified in City Council Resolution 2016-006 (Annexation No. 14 - 5310 Carrizo Tract 2625) to be annexed into the Community Facilities District No. 2005-1, authorizing the levy of a special tax and submitting the levy of a special tax to qualified electors; and, 3. Adopt Draft Resolution B, authorizing the territory identified in City Council Resolution 2016-007 (Annexation No. 15 - 8570 El Corte Tract 2802) to be annexed into the Community Facilities District No. 2005-1, authorizing the levy of a special tax and submitting the levy of a special tax to qualified electors; and, 4. Adopt Draft Resolution C, authorizing the territory identified in City Council Resolution 2016-008 (Annexation No. 16 – 10380 El Camino Real VTPM #AT 14-0028) to be annexed into the Community Facilities District No. 2005-1, authorizing the levy of a special tax and submitting the levy of a special tax to qualified electors; and, 5. Direct the City Clerk to conduct landowner votes of annexations and collect and count the ballots. Motion passed 5:0 by a roll-call vote. (#B-1.2: Resolution No. 2016-017, #B-1.3: Resolution No. 2016-018, #B-1.4: Resolution No. 2016-019) Mayor O’Malley asked the City Clerk to count the ballots and announce the ballot count. City Clerk Torgerson stated the following: Annexation No. 14 – 3 votes – Yes Annexation No. 15 – 2 votes – Yes Annexation No. 16 – 1 vote – Yes MOTION: By Mayor Pro Tem Moreno and seconded by Council Member Fonzi to: 6. Adopt Draft Resolution D, declaring the results of a special annexation landowner election for Annexation No. 14 (5310 Carrizo Tract 2625), determining the validity of prior proceedings and directing the recording of an amendment to the notice of special tax lien; and, Page 13 ITEM NUMBER: A-1 DATE: 04/26/16 Atascadero City Council April 12, 2016 Page 7 of 9 7. Adopt Draft Resolution E, declaring the results of a special annexation landowner election for Annexation No. 15 (8570 El Corte Tract 2802), determining the validity of prior proceedings and directing the recording of an amendment to the notice of special tax lien; and, 8. Adopt Draft Resolution F, declaring the results of a special annexation landowner election for Annexation No. 16 (10380 El Camino Real VTPM #AT 14-0028), determining the validity of prior proceedings and directing the recording of an amendment to the notice of special tax lien; and, 9. Introduce for first reading, by title only, Draft Ordinance A, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory identified as Annexation No. 14 (5310 Carrizo Tract 2625); and, 10. Introduce for first reading, by title only, Draft Ordinance B, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory identified as Annexation No. 15 (8570 El Corte Tract 2802); and, 11. Introduce for first reading, by title only, Draft Ordinance C, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory identified as Annexation No. 16 (10380 El Camino Real VTPM #AT 14-0028). Motion passed 5:0 by a roll-call vote. (#B-1.6: Resolution No. 2016-020, #B-1.7: Resolution No. 2016-021, #B-1.8: Resolution NO. 2016-022) C. MANAGEMENT REPORTS: 1. Sales Tax Measure F-14 2015/2016 Rehabilitation Project Engineering Design Services Award  Fiscal Impact: This action will result in the expenditure of up to $135,150 in budgeted Sales Tax Measure F-14 funds.  Recommendation: Council authorize City Manager to execute a contract with Rick Engineering Company to provide professional engineering services for the Measure F-14 Fiscal Year 2015/2016 Pavement Rehabilitation Project, for an amount not to exceed $135,150. [Public Works] Public Works Director Nick DeBar gave the staff report and answered questions from the Council. PUBLIC COMMENT: None Page 14 ITEM NUMBER: A-1 DATE: 04/26/16 Atascadero City Council April 12, 2016 Page 8 of 9 MOTION: By Council Member Fonzi and seconded by Mayor Pro Tem Moreno to authorize City Manager to execute a contract with Rick Engineering Company to provide professional engineering services for the Measure F-14 Fiscal Year 2015/2016 Pavement Rehabilitation Project, for an amount not to exceed $135,150. Motion passed 5:0 by a roll-call vote. (Contract No. 2016-005) 2. General Plan & Housing Element Annual Progress Report 2015 (PLN 2006-1133)  Fiscal Impact: None.  Recommendation: The Planning Commission recommends: Council authorize submittal of the attached 2015 Annual General Plan and Housing Report to the State of California. [Community Development] Community Development Director Phil Dunsmore gave the staff report and answered questions from the Council. PUBLIC COMMENT: None MOTION: By Council Member Sturtevant and seconded by Council Member Kelley to authorize submittal of the attached 2015 Annual General Plan and Housing Report to the State of California. Motion passed 5:0 by a roll-call vote. COUNCIL ANNOUNCEMENTS AND REPORTS: The City Council Members made brief announcements. D. COMMITTEE REPORTS: The following Council Members gave brief update reports on their committees since their last Council meeting: Mayor O’Malley 1. SLO Council of Governments (SLOCOG) – Caltrans was granted a Shop Grant funded, which will assist in ADA pedestrian paths and signals along the Highway 41 corridor during the 2016-17 fiscal year. Page 15 ITEM NUMBER: A-1 DATE: 04/26/16 Atascadero City Council April 12, 2016 Page 9 of 9 Also, State wide, the connection between Atascadero and Paso Robles has been identified as the missing link through Templeton and should be receiving State funding to improve this connection. Council Member Fonzi 1. Air Pollution Control District – The District attended a seminar on how to get along. 2. City of Atascadero Design Review Committee – Reviewed three sign issues at their last meeting. Council Member Sturtevant 1. League of California Cities – Council Liaison – gave an update on the League’s Housing Community and Economic Development Policy Committee. Also, he stated the League’s top priority is transportation funding. Atascadero is hosting the League of California Cities, Channel Counties Division, quarterly meeting and dinner this Friday. E. INDIVIDUAL DETERMINATION AND / OR ACTION: None F. ADJOURNMENT Mayor O’Malley adjourned the meeting at 8:10 p.m. MINUTES PREPARED BY: ______________________________________ Marcia McClure Torgerson, C.M.C. City Clerk The following exhibits are available for review in the City Clerk’s office: Exhibit A – Information regarding LED lighting, submitted by Gayle Bruce. Exhibit B – Big Brothers / Big Sisters Webpage, submitted by John Trumbeau Page 16 ITEM NUMBER: A-2 DATE: 04/26/16 Atascadero City Council Staff Report – City Attorney’s Office City Attorney Budget RECOMMENDATION: Authorize the Director of Administrative Services to appropriate $150,000 in general fund reserves for additional legal services. DISCUSSION: The budget for City Attorney services for Fiscal Year 20 15-2016 is currently $254,000. This budget was based upon a projection in June 2015 of what the legal expenses would be incurred during Fiscal Year 2015-2016. During Fiscal Year 2015-2016, the City Attorney’s Office has provided to the City the standard legal services including attending City Council meetings, advising City Council and City Staff on legal issues, drafting of ordinances and resolutions, drafting and review of contracts, drafting and review of Staff Reports and multiple other legal services relating to the operations of the City. In addition to the standard legal services rendered in Fiscal Year 2015-2016, the City Attorney’s Office has also been assigned to represent the City in connection with the prosecution of many criminal cases involving the enforcement of the City’s prohibited camping ordinance. In addition to the prosecution of the criminal cases for violations of the City’s prohibited camping ordinance, the City Attorney’s Office has also addressed the prohibited camping issue in connection with civil matters at a number of locations within the City in which individuals were engaged in prohibited camping activities as well as other violations of the City’s codes. The City has spent over $150,000 to date this fiscal year in City Attorney fees on these and other code enforcement cases. The City Attorney has looked at the proposed work through the end of the fiscal year. It is anticipated that a budget increase of $150,000 is needed to continue legal services at the current level, along with the continued enforcement of the City’s prohibited camping ordinance and other codes. Page 17 ITEM NUMBER: A-2 DATE: 04/26/16 FISCAL IMPACT: The fiscal impact is the expenditure of an additional $150,000 in General Fund reserves. ALTERNATIVES: Increase the City Attorney’s Office budget to a sum less than $390,000 and reduce the assignments to the City Attorney’s Office through the period ending June 30, 2016. ATTACHMENTS: None Page 18 ITEM NUMBER: A-3 DATE: 04/26/16 Atascadero City Council Staff Report - Public Works Department Professional Engineering and Environmental Services for Phase 1 of the Via Avenue and Santa Lucia Road Bridge Replacement Projects RECOMMENDATIONS: Council: 1. Authorize the City Manager to execute a contract with Quincy Engineering to provide professional engineering and environmental services for Phase 1 of the Via Avenue Bridge Replacement Project for a fee not to exceed $297,455; and 2. Authorize the City Manager to execute a contract with Quincy Engineering to provide professional engineering and environmental services for Phase 1 of the Santa Lucia Road Bridge Replacement Project for a fee not to exceed $303,906. REPORT-IN-BRIEF: The City solicited proposals from qualified consultants for Professional Engineering Services for the Via Avenue and Santa Lucia Road Bridge Replacement Projects. Three proposals were received, reviewed and ranked. The review panel determined Quincy Engineering was clearly the most qualified firm to complete these projects, and has negotiated a final scope and fee for the work. Both bridge replacements are to be funded as part of the Federal Highway Bridge Replacement and Rehabilitation Program (HBRRP). Santa Lucia Bridge has 100% Federal Cost Participation. The Via Avenue Bridge has 88.53% Federal Cost Participation, with the City responsible for the remaining 11.47% of costs. The fee proposal from Quincy Engineering exceeds the allocated amount f or Preliminary Engineering. Quincy Engineering has lowered the overall fee, and has proposed splitting the work into Phase I (Preliminary Engineering, Environmental Studies and Permitting, Geotechnical Studies, Hydraulic Studies), and Phase II (Final Engineering Design). Splitting the work into Phases will allow the Preliminary Engineering (Phase I) to be completed under the currently allocated funding amount . A Page 19 ITEM NUMBER: A-3 DATE: 04/26/16 HBRRP Supplemental Funding Request will be prepared and submitted for necessary additional federal funds as the Final Engineering scope is refined over the next year. The process of requesting additional Engineering Services funds is common for Federally Funded Bridge Replacement Projects, and staff has been assured by Caltrans Local Assistance that requests for additional funding are generally always approved. DISCUSSION: Background: In 2005, the Santa Lucia Road Bridge (Bridge #49C -0158) and Via Avenue Bridge (Bridge #49C-0164) were identified as needing replacement. The 2013 update of the Caltrans Bridge Inspection Records Information System (BIRIS) identified the Via Avenue Bridge as being structurally deficient and functionally obsolete, and the Santa Lucia Road Bridge as functionally obsolete. This determination allowed for the availability of Federal funding for the replacement of the two bridges. Below is a brief timeline of completed project milestones: January, 2014: City staff initiates Via Avenue and Santa Lucia Road Bridge replacement projects. February, 2014: Quincy Engineering is hired to prepare a Project Study Report Equivalent and HBRRP funding application for both bridge replacement projects. March, 2014: Quincy Engineering completes and submits the Project Study Report Equivalent and Funding Applications. As part of the funding application, Preliminary Engineering, Right-of-Way, Construction Engineering and Construction costs were estimated. Preliminary Engineering (PE) funds were based upon an allowable percentage of estimated construction costs, resulting in an estimated PE cost of $375,000 for both bridge projects. At that time, it was noted that PE costs would likely be higher than the allocated amount, but that the difference could be requested during the design phase. March-May, 2015: Public Works staff and Caltrans personnel completed field reviews of both locations, and a Preliminary Environmental Study (PES) Report was completed. June/July, 2015: Public Works staff advertised an RFP for Grant Funding Administration, which was awarded to Kathy Pence of Cannon Corporation. January, 2016: Public Works staff advertised an RFP for Preliminary Engineering Services. March, 2016: Preliminary Engineering proposals were received from three firms: Stantec, Hatch Mott MacDonald, and Quincy Engineering. Page 20 ITEM NUMBER: A-3 DATE: 04/26/16 Proposals were reviewed by Public Works staff and a representative from Caltrans Local Assistance. The review team agreed that Quincy Engineering was clearly the most qualified consultant and negotiated a scope and fee for Preliminary Engineering Services. Schedule: The schedule below reflects the major project milestones to date, along with staff’s best estimate of the timing of future events. Feb-Mar, 2014 Quincy Engineering is hired by City and prepares Project Study Report Equivalent and Funding Application. Mar-May, 2015 City completes site review and prepares Preliminary Environmental Study. July, 2015 City hires Cannon Corp. (Kathy Pence) for Grant Funding Administration Services. Jan-Mar, 2016 Public Works staff advertises RFP for Preliminary Engineering Services, and tentatively selects Quincy Engineering as the most qualified consultant. 4/26/2016 Council consider authorizing Phase I (Preliminary Engineering) of contract with Quincy Engineering for: 1. Santa Lucia Road Bridge: ($303,906) 2. Via Avenue Bridge: ($297,455) Spring 2016- Spring 2017 Preparation of Environmental Documents, Permitting, Hydraulic Studies, Geotechnical Studies, and Preliminary Bridge Engineering. Spring 2017 Council consider authorization of Phase II (Final Engineering) of contract with Quincy Engineering for an additional (estimated): 1. Santa Lucia Road Bridge: ($296,000) 2. Via Avenue Bridge: ($286,000) Summer 2017 Council consider authorization of Right-of-Way acquisition (if needed) Spring 2017-Fall 2018 Preparation of Final Engineering Plans, Specifications and Estimates. Fall 2018 Council consider awarding necessary construction contracts, and consider whether to construct bridges concurrently or over two years. Fall 2018- Summer 2019 Replacement of Via Avenue Bridge. Fall 2019- Summer 2020 Replacement of Santa Lucia Road Bridge. Analysis: At this time, the City is still within the timeline to hit target dates. Both bridge replacement projects have committed funding through the Federal Bridge Replacement Program, and Quincy Engineering has been selected to complete the Preliminary Engineering Services. The total fee (Phase I and Phase II) proposal provided by Quincy Engineering exceeds the Preliminary Engineering cost currently approved for both projects. However, City staff reviewed the fee proposal and has determined that it is a reasonable fee given the scope of work. After negotiations with the City, Quincy Engineering lowered the overall fee slightly, and has proposed splitting the work into Phase I (Preliminary Engineering, Page 21 ITEM NUMBER: A-3 DATE: 04/26/16 Environmental Studies and Permitting, Geotechnical Studies, Hydraulic Studies), and Phase II (Final Engineering Design, Bid Support, Construction Services). Detailed work scopes for both bridges have been provided and are included with this Staff Report for reference. Splitting the work into Phases will allow the Preliminary Engineering (Phase I) to be completed under the currently allocated funding amount, and a Supplemental Funding Request will be prepared for necessary additional funds as the Final Engineering scope is refined over the next year. The process of requesting additional Engineering Services funds is common for Federally Funded Bridge Replacement Projects, and staff has been assured by Caltrans Local Assistance that requests for additional funding are generally always approved. It is significant to note that the selection of a qualified consultant is extremely important, with long-term cost and functionality ramifications. While Quincy Engineering provided a fee estimate above that which was preliminaril y estimated, their fee proposal justified the costs. It is reasonable to expect that their expertise will ultimately result in an efficient project timeline, decreased City staff administrative hours required, minimized design and construction change orders, and a long-term cost-effective bridge replacement solution. Finally, it should be noted that the $375,000 funding allocation for Preliminary Engineering includes Grant Funding Administration Services provided by Kathy Pence, as well as staff time to administer the project. The proposed contract amounts for Phase I Engineering Services for Quincy Engineering allow for these additional expenses within the allocated funding. Conclusion: Staff recommends approving the splitting of bridge design work into two phases, and awarding Phase I to Quincy Engineering. While Quincy Engineering provided a fee estimate above that which was previously estimated and funded, obtaining additional funding is commonplace and the process is clear. Review of the proposals clearly demonstrated that Quincy Engineering is the consultant with the best mix of experience and qualifications to complete this project in a timely, efficient manner, and provide the City with a high quality product and low expected life -cycle costs. FISCAL IMPACT: The fiscal impact of the award of the Phase I Engineering and Environmental Services contract for the Santa Lucia Bridge Project is the expenditure of $303,906 in budgeted HBRRP grant funds. The fiscal impact of the award of the Phase I Engineering and Environmental Services contract for the Via Avenue Bridge Project is the expenditure of $263,337 in budgeted HBRRP grant funds and $34,118 in budgeted Local Transportation Funds. Page 22 ITEM NUMBER: A-3 DATE: 04/26/16 SANTA LUCIA BRIDGE PROPOSED EXPENDITURES Phase I: Preliminary Engineering (Preliminary Design, Survey, Environmental Studies and Permitting, Hydraulic Reports, Geotechnical Reports. $303,906 Design Support (Staff, contingency, grant administration) 69,140 Total Estimated Expenditure: $373,046 BUDGET HBRR Grant Funds $375,000 Total Funding Sources $375,000 VIA AVENUE BRIDGE PROPOSED EXPENDITURES Phase I: Preliminary Engineering (Preliminary Design, Survey, Environmental Studies and Permitting, Hydraulic Reports, Geotechnical Reports. $297,455 Design Support (Staff, contingency, grant administration) 68,495 Total Estimated Expenditure: $365,950 BUDGET HBRR Grant Funds $331,990 Local Transportation Funds 43,010 Total Funding Sources $375,000 ALTERNATIVES: 1. Council reject staff’s recommendation and direct staff to terminate negotiations with Quincy Engineering and begin negotiations with the second-highest ranked consultant. This alternative is not recommended due to the significant difference in qualifications between the top-ranked and second-ranked firm. 2. Council may approve a contract with Quincy Engineering for the combined Phase I & II Engineering Services, and direct staff to begin the Supplemental Budget Request process. ATTACHMENTS: None Page 23 ITEM NUMBER: A-4 DATE: 04/26/16 Atascadero City Council Staff Report - Police Department Radio Simulcast Project RECOMMENDATIONS: Council: 1. Authorize the City Manager to execute a contract with Spur Solutions in the amount of $110,078 for the purchase and installation of equipment to replace microwave radio equipment and to create a simulcast radio system ; and 2. Authorize the Director of Administrative Services to appropriate $61,890 in Police Realignment Funds and Supplemental Law Enforcement Services Funds, $35,760 in Fire Bertha Schultz Grant Funds, and $12,440 in General Fund Reserves for the purchase and installation of radio equipment. DISCUSSION: The Atascadero Police Department has experienced numerous problems with the radio system over the past several years since being required to modify our frequencies as a result of narrow banding. Several modifications have been made to the current system in an effort to ensure the highest quality radio signal reaches officers and firefighters in the field during the performance of their duties. Despite a great deal of new equipment being installed and work done to the current system, problems remain. During the past several months the vendor servicing our radio system has performed modifications of the system repeatedly to correct problems including static, loss of signal, and interference. As a result of the work done to the system, a defect has been identified which if uncorrected will likely result in a catastrophic failure . Two of the microwave paths between the Police Department radio site and repeater sites have been found to be degraded significantly. The equipment used in these pathw ays is over 10 years old, the expected lifespan of this type of equipment. As a result of this degradation, the Receive Signal Level (RSL) of this system is operating at .6 volts between the Castle Rock to Pine Mountain repeater sites microwave path, and .9 Volts between Castle Rock and the State Hospital microwave path. The acceptable operating RSL for this type of microwave pathway is between 2.5 and 4 volts. Page 24 ITEM NUMBER: A-4 DATE: 04/26/16 It was also determined that the microwave pathways do not include redundancies which would allow the system to continue to function in the event of a failure. As a result, the failure of one of the receiver systems at the repeater sites would eliminate radio communications abilities for Police, Fire and Public W orks until appropriate repairs could be completed. In emergency operations, the elimination of radio communications would prohibit public safety from being able to respond appropriately. An immediate replacement of the receiver systems at repeater sites in the City is recommended to prevent system failure. Upgrading the current system as part of the replacement project to provide redundancy with no single points of failure to the system is also recommended. This redundancy would create a true simulcast system that would eliminate the current voter repeater system used for radio communications by Police, Fire, and Public Works. The voter repeater system does not function to acceptable standards despite several repairs and modifications to the system. In addition, the current voter repeating system equipment at the repeater sites is no longer manufactured or supported. The simulcast system would improve end user communications and improve officer safety by eliminating the need for officers to change radio channels in various locations throughout the city where signals do not reach. The system would improve the overall coverage of radio signals throughout the city. The simulcast system would also allow for the addition of radio channels that enable better communications during public safety emergencies. Finally, the federal government requires that applicants for grants related to radio system improvements are Project 25 (or P-25) compliant. This is a Federal standard developed nationally in cooperation with the Association of Chiefs of Police. The basic requirement for P-25 compliance is that the system is capable of sending and receiving a digital rather than analog signal. The current system is analog and does not meet this standard. Installation of the simulcast system would ensure P -25 compliance and enable future grant funding opportunities. There are a limited number of service providers locally. The department has worked with all three of the radio service professionals in the area. Historically, service levels and quality from two of these providers ha ve not met minimum expectations. Therefore, the department has discontinued using those two vendors as service providers. Past experience with Spur Communications has been positive and service levels have met or exceeded minimum standards. Service costs are comparable and reasonable. FISCAL IMPACT: Approval of the receiver system replacement and installation of the simulcast system will result in the expenditure of $110,078. The cost for the equipment and installation Page 25 ITEM NUMBER: A-4 DATE: 04/26/16 will be divided equitably between the three departments which use the system, Police, Fire and Public Works. Spur Solutions has identified Department specific equipment costs and shared equipment costs. Each department would pay for their own department specific equipment costs, and shared costs will be split based on approximate usage rates of the radio system. Spur Solutions estimates that the Police Department is responsible for 65-70 percent of the overall system usage, the Fire Department is responsible for between 25-30 percent of the overall system usage and the Public Works Department is responsible for about 5 percent of the overall system usage. Direct equipment costs for each department are as follows: Fire Department - $17,575.83 Police Department - $10,973.34 Public W orks Department - $8,803.32 Shared costs including installation costs per department are as follows: Police Department - $50,907.86 Fire Department - $18,181.38 Public W orks Department - $3,636.28 Total expenditures for the Police Department will be $61,881.20 which will come from Realignment Funds and Supplemental Law Enforcement Services Funds. Total expenditures for the Fire Department will be $35,757.21 which will come from Bertha Shultz Grant Funds. Total Expenditures for Public Works will be $12 ,439.60 which staff recommends come from General Fund reserves. ALTERNATIVES: 1. Direct staff to replace only defective equipment and not install a Simulcast System . 2. Direct staff to attempt to locate different alternatives. ATTACHMENTS: 1. Copy of the Spur Solutions quote. 2. Copy of the Spur Solutions equipment cost breakdown. Page 26 INVOICE NO. DATE N/A TO SALESPERSON JOB SHIPPING METHOD SHIPPING TERMS DELIVERY DATE PAYMENT TERMS DUE DATE Conner Microwave Simulcast Due on receipt QTY ITEM #UNIT PRICE DISCOUNT LINE TOTAL 14.00 airFiber 5x $425.00 5,950.00$ 14.00 AF-5G23-S45 $105.00 1,470.00 2.00 J9728A $1,269.00 2,538.00 6.00 J9145A $1,040.00 6,240.00 14.00 1101-1067 $235.00 3,290.00 3.00 TC-CARRIER $199.00 597.00 2.00 TC-CON $60.00 120.00 14.00 SMK $299.00 4,186.00 2.00 5EN5 BLUE CPK $175.00 350.00 100.00 WSGW-6-19STG $0.80 80.00 20.00 GECL610 $1.00 20.00 20.00 GECL63/8 $1.75 35.00 4.00 313,17,00,00,00,00 $5,125.00 20,500.00 4.00 $675.00 2,700.00 4.00 $245.00 980.00 4.00 $20.00 80.00 4.00 $250.00 1,000.00 SUBTOTAL 50,136.00$ SALES TAX See Next Page TOTAL See Next Page conner@spursolutions.net EXPIRATION DATE 5030 Olmeda Ave, Suite C 20160404 Atascadero, CA 93422 April 8, 2016 (805) 305-7018 CUSTOMER ID City of Atascadero City of Atascadero 5505 El Camino Real Atascadero, CA 93422 Ground Lug #6 #10 Hole DESCRIPTION IP Backhaul Radio 5GHz Microwavve Dish IP Managed Switch 48port IP Managed Switch 24port Ethernet Surge Protector Outdoor Rated Cat5E Cat5E Connectors Side Mount Kit Indoor Cat5E Ground Wire #6 TOTAL DISCOUNT Ground Lug #6 3/8" Hole Secure Sync NetclockModel 1204-1C Option Card with 3 10MHz TTLModel 8230 GPS Antenna and bracket (no mast) Model 8235 Antenna MastModel 8226 Antenna Line Surge Supressor QUOTE THANK YOU FOR YOUR BUSINESS! Quotation prepared by: ____________________________________________ This is a quotation on the goods named, subject to the conditions noted below: All labor estimates are subject to change. All materials to be prepurchased from vendors by the City of Atascadero To accept this quotation, sign here and return: _______________________________________________ ITEM NUMBER: A-4 DATE: 04/26/16 ATTACHMENT: 1 Page 27 INVOICE NO. DATE N/A TO SALESPERSON JOB SHIPPING METHOD SHIPPING TERMS DELIVERY DATE PAYMENT TERMS DUE DATE Conner Microwave Simulcast Due on receipt QTY ITEM #UNIT PRICE DISCOUNT LINE TOTAL 4.00 MLC8000 $1,920.00 7,680.00$ 13.00 MLC8000 $1,920.00 24,960.00 17.00 VA00011AA $48.00 816.00 17.00 VA00012AA $48.00 816.00 120.00 LBR-CLMB $120.00 14,400.00 80.00 LBR-STANDARD $70.00 5,600.00 SUBTOTAL 54,272.00$ FREIGHT 1,100.00$ SALES TAX 4,570.00$ MATERIALS TOTAL 84,408.00$ LABOR TOTAL 20,000.00$ TOTAL 110,078.00$ LABOR-STANDARD DESCRIPTION Comparator Gateway 19 Inch Rack Mount Kit 20160404 April 8, 2016 City of Atascadero 5030 Olmeda Ave, Suite C 5505 El Camino Real (805) 305-7018 conner@spursolutions.net Atascadero, CA 93422 EXPIRATION DATE 120V AC to 12V DC LABOR-CLIMBING City of Atascadero CUSTOMER ID Atascadero, CA 93422 QUOTE THANK YOU FOR YOUR BUSINESS! Quotation prepared by: ____________________________________________ This is a quotation on the goods named, subject to the conditions noted below: All labor estimates are subject to change. All materials to be prepurchased from vendors by the City of Atascadero To accept this quotation, sign here and return: _______________________________________________ ITEM NUMBER: A-4 DATE: 04/26/16 ATTACHMENT: 1 Page 28 Category Quantity Description Manufacturer Part Number Price Each Line Total Tax Shipping Vendor Microwave 14 IP Backhaul Radio Ubiquity Networks airFiber 5x $425.00 $5,950.00 Sandys Communications Microwave 14 5GHz Microwavve Dish Ubiquity Networks AF-5G23-S45 $105.00 $1,470.00 Sandys Communications Microwave 2 IP Managed Switch 48port HP J9728A $1,269.00 $2,538.00 Sandys Communications Microwave 6 IP Managed Switch 24port HP J9145A $1,040.00 $6,240.00 Sandys Communications Microwave 14 Ethernet Surge Protector PolyPhaser 1101-1067 $235.00 $3,290.00 Sandys Communications Microwave 3 Outdoor Rated Cat5E Ubiquity Networks TC-CARRIER $199.00 $597.00 Sandys Communications Microwave 2 Cat5E Connectors Ubiquity Networks TC-CON $60.00 $120.00 Sandys Communications Microwave 14 Side Mount Kit Laird SMK $299.00 $4,186.00 Sandys Communications Microwave 2 Indoor Cat5E Commscope 5EN5 BLUE CPK $175.00 $350.00 Sandys Communications Microwave 100 Ground Wire #6 Ventev WSGW-6-19STG $0.80 $80.00 Sandys Communications Microwave 20 Ground Lug #6 #10 Hole Harger GECL610 $1.00 $20.00 Sandys Communications Microwave 20 Ground Lug #6 3/8" Hole Harger GECL63/8 $1.75 $35.00 Sandys Communications Microwave 4 Secure Sync Netclock Spectracom 313,17,00,00,00,00 $5,125.00 $20,500.00 Simulcast Solutions Microwave 4 Model 1204-1C Option Card with 3 10MHz TTL Spectracom 1204-1c $675.00 $2,700.00 Simulcast Solutions Microwave 4 Model 8230 GPS Antenna and bracket (no mast)Spectracom 8230 $245.00 $980.00 Simulcast Solutions Microwave 4 Model 8235 Antenna Mast Spectracom 8235 $20.00 $80.00 Simulcast Solutions Microwave 4 Model 8226 Antenna Line Surge Supressor Spectracom 8226 $250.00 $1,000.00 Simulcast Solutions Radio Fire 2 Comparator Motorola MLC8000 $1,920.00 $3,840.00 Motorola Radio Fire 6 Gateway Motorola MLC8000 $1,920.00 $11,520.00 Motorola Radio Fire 8 19 Inch Rack Mount Kit Motorola VA00011AA $48.00 $384.00 Motorola Radio Fire 8 120V AC to 12V DC Motorola VA00012AA $48.00 $384.00 Motorola Radio Police 1 Comparator Motorola MLC8000 $1,920.00 $1,920.00 Motorola Radio Police 4 Gateway Motorola MLC8000 $1,920.00 $7,680.00 Motorola Radio Police 5 19 Inch Rack Mount Kit Motorola VA00011AA $48.00 $240.00 Motorola Radio Police 5 120V AC to 12V DC Motorola VA00012AA $48.00 $240.00 Motorola Radio PW 1 Comparator Motorola MLC8000 $1,920.00 $1,920.00 Motorola Radio PW 3 Gateway Motorola MLC8000 $1,920.00 $5,760.00 Motorola Radio PW 4 19 Inch Rack Mount Kit Motorola VA00011AA $48.00 $192.00 Motorola Radio PW 4 120V AC to 12V DC Motorola VA00012AA $48.00 $192.00 Motorola Parts Total $84,408.00 Tax Total $4,570.56 Shipping Total $1,100.00 $1,990.08 $400.00 $200.00 $2,580.48 $500.00 ITEM NUMBER: A-4DATE: 04/26/16ATTACHMENT: 2Page 29 ITEM NUMBER: A-5 DATE: 04/26/16 Atascadero City Council Staff Report - Community Development Department Community Facilities District 2005-1 Annexation No. 14, No. 15 and No. 16 RECOMMENDATIONS: Council: 1. Adopt on second reading, by title only, Draft Ordinance A, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory; and 2. Adopt on second reading, by title only, Draft Ordinance B, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory; and 3. Adopt on second reading, by title only, Draft Ordinance C, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory. REPORT-IN-BRIEF: This action consists of authorizing the levy of special taxes in Community Facilities District (CFD) 2005-1 to newly annexed areas that include the following projects:  Annexation Area No. 14, known as 5310 Carrizo Road Subdivision.  Annexation Area No. 15, known as 8570 El Corte Subdivision.  Annexation Area No. 16, known as 10380 El Camino Real. This is a second reading of the proposed ordinances and is required to formalize the annexations. On April 12, 2016, the City Council held a public hearing on annexation into the City’s CFD for areas 14, 15 and 16. After the close of the public hearing, the City Council adopted resolutions on a 5-0 vote authorizing an annexation of these areas into CFD 2005-1. A landowner election was held, and the owners elected to authorize a special Page 30 ITEM NUMBER: A-5 DATE: 04/26/16 CFD tax and approve the annexation. The Council then introduced, by title only, Draft Ordinances A, B and C, on a 5-0 vote, and authorized a levy of a CFD fee to all future property owners residing in annexation areas 14, 15 and 16. The Special Tax levied against Single-Family Residential parcels for Fiscal Year 2015- 2016 was $650.08 per parcel ($54.17 per month), which is subject to an annual escalator, to pay for the service expansion needed to serve these additional residential units. The money collected can only be use d to fund new public services authorized to be funded by the State Mello-Roos Act and identified within the Rate and Method of Apportionment, and cannot be used to support existing services. Adoption of th ese ordinances by second reading will complete the CFD process and allow for the Final Maps to be recorded. FISCAL IMPACT: The establishment of Annexations Nos. 14, 15, and 16 into the CFD is intended to mitigate the fiscal impact of residential development on the City. These three projects, totaling 23 units, would provide $14,951.84 annually at build out, based on the current Actual Rates, levied to fund the expansion of Police, Fire, and Park Services associated with the new residential units. ATTACHMENTS: 1. Draft Ordinance A (Annexation No. 14) 2. Draft Ordinance B (Annexation No. 15) 3. Draft Ordinance C (Annexation No. 16) Page 31 ITEM NUMBER: A-5 DATE: 04/26/16 Attachment 1: Draft Ordinance A – Special Tax Levy – 5310 Carrizo Road Subdivision (Annexation #14) DRAFT ORDINANCE A AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES), INCLUDING CERTAIN ANNEXATION TERRITORY WHEREAS, the City of Atascadero (the “City”) has conducted proceedings pursuant to the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the “Act”) and the City of Atascadero Community Facilities District No. 2005-1 (Public Services) Ordinance enacted pursuant to the powers reserved by the City of Atascadero under Sections 3, 5, and 7 of Article XI of the Constitution of the State of California (the “CFD Ordinance”) (the Act and the CFD Ordinance may be referred to collectively as the “Community Facilities District Law”), to establish the City of Atascadero Community Facilities District No. 2005-1 (Public Services) (the “District”) for the purpose of financing police services, fire protection and suppression services, and park services (the “Services”) as provided in the Act; and WHEREAS, the rate and method of apportionment of special tax for the District is set forth in Exhibit B to the City Council Resolution entitled “A Resolution of the City Council of the City of Atascadero, California, For the Formation of Community Facilities District No. 2005-1 (Public Services)” (the “Resolution of Formation”), which was adopted on May 24, 2005; and WHEREAS, the City has conducted proceedings to annex territory into the District and, with respect to the proceedings, following an election of the qualified electors in the territory proposed for annexation (the “Annexation Territory”), the City Council, on April 12, 2016, adopted Resolution No. 2016-020 entitled “Resolution of the City Council of the City of Atascadero, California, Declaring the Results of Special Annexation Landowner Election, Determining Validity of Prior Proceedings, and Directing the Recording of an Amendment to Notice of Special Tax Lien.” NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1. The above recitals are true and correct. SECTION 2. By the passage of this Ordinance, the City Council hereby authorizes and levies the special tax within the District, including the Annexation Territory, pursuant to th e Page 32 ITEM NUMBER: A-5 DATE: 04/26/16 Community Facilities District Law, at the rate and in accordance with the rate and method of apportionment of special tax set forth in the Resolution of Formation, which rate and method is by this reference incorporated herein. The special tax has previously been levied in the original territory of the District beginning in Fiscal Year 2006-07 pursuant to Ordinance No. 478 passed and adopted by the City Council on July 12, 2005 and the special tax is hereby levied commencing in Fiscal Year 2016-17 in the District, including the Annexation Territory, and in each fiscal year thereafter to pay for the Services for the District and all costs of administering the District. SECTION 3. The City’s Finance Director or designee or employee or consultant of the City is hereby authorized and directed each fiscal year to determine the specific special tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, including the Annexation Territory, in the manner and as provided in the Resolution of Formation. SECTION 4. Exemptions from the levy of the special tax shall be as provided in the Resolution of Formation and the applicable provisions of the Community Facilities District Law. In no event shall the special tax be levied on any parcel within the District in excess of the maximum special tax specified in the Resolution of Formation. SECTION 5. All of the collections of the special tax shall be used as provided in the Community Facilities District Law and in the Resolution of Formation, including, but not limited to, the payment of the costs of the Services, the payment of the costs of the City in administering the District, and the costs of collecting and administering the special tax. SECTION 6. The special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the City Council may provide for other appropriate methods of collection by resolution(s) of the City Council. The Finance Director of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of San Luis Obispo in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of San Luis Obispo for Fiscal Year 2016-17 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City. SECTION 7. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District, including the Annexation Territory, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the District, including the Annexation Territory, shall not be affected. SECTION 8. A summary of this ordinance, together with the ayes and noes, shall be published twice: at least five days prior to its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero, and; before the expiration of fifteen (15) days after its final passage, in the Atascadero News, a newspaper published and circulated in the City of Atascadero. A copy of the full text of this ordinance shall be on file in the City Clerk’s Office Page 33 ITEM NUMBER: A-5 DATE: 04/26/16 on and after the date following introduction and passage and shall be available to any interested member of the public. SECTION 9. This Ordinance shall take effect 30 days from the date of final passage. INTRODUCED at a regular meeting of the City Council held on April 12, 2016, and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on ___________________, by the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By:_______________________________ Tom O’Malley, Mayor ATTEST: _________________________________________ Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: __________________________________________ Brian A. Pierik, City Attorney Page 34 ITEM NUMBER: A-5 DATE: 04/26/16 Attachment 2: Draft Ordinance B – Special Tax Levy for CFD Annexation No. 15 (8570 El Corte) DRAFT ORDINANCE B AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES), INCLUDING CERTAIN ANNEXATION TERRITORY WHEREAS, the City of Atascadero (the “City”) has conducted proceedings pursuant to the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the “Act”) and the City of Atascadero Community Facilities District No. 2005-1 (Public Services) Ordinance enacted pursuant to the powers reserved by the City of Atascadero under Sections 3, 5, and 7 of Article XI of the Constitution of the State of California (the “CFD Ordinance”) (the Act and the CFD Ordinance may be referred to collectively as the “Community Facilities District Law”), to establish the City of Atascadero Community Facilities District No. 2005-1 (Public Services) (the “District”) for the purpose of financing police services, fire protection and suppression services, and park services (the “Services”) as provided in the Act; and WHEREAS, the rate and method of apportionment of special tax for the District is set forth in Exhibit B to the City Council Resolution entitled “A Resolution of the City Council of the City of Atascadero, California, For the Formation of Community Facilities District No. 2005-1 (Public Services)” (the “Resolution of Formation”), which was adopted on May 24, 2005; and WHEREAS, the City has conducted proceedings to annex territory into the District and, with respect to the proceedings, following an election of the qualified electors in the territory proposed for annexation (the “Annexation Territory”), the City Council, on April 12, 2016, adopted Resolution No. 2016-021 entitled “Resolution of the City Council of the City of Atascadero, California, Declaring the Results of Special Annexation Landowner Election, Determining Validity of Prior Proceedings, and Directing the Recording of an Amendment to Notice of Special Tax Lien.” NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO, DOES HEREBY ORDAINS AS FOLLOWS: SECTION 1. The above recitals are true and correct. SECTION 2. By the passage of this Ordinance, the City Council hereby authorizes and levies the special tax within the District, including the Annexation Territory, pursuant to the Community Facilities District Law, at the rate and in accordance with the rate and method of apportionment of special tax set forth in the Resolution of Formation, which rate and method is Page 35 ITEM NUMBER: A-5 DATE: 04/26/16 by this reference incorporated herein. The special tax has previously been levied in the original territory of the District beginning in Fiscal Year 2006-07 pursuant to Ordinance No. 478 passed and adopted by the City Council on July 12, 2005 and the special tax is hereby levied commencing in Fiscal Year 2016-17 in the District, including the Annexation Territory, and in each fiscal year thereafter to pay for the Services for the District and all costs of administering the District. SECTION 3. The City’s Finance Director or designee or employee or consultant of the City is hereby authorized and directed each fiscal year to determine the specific special tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, including the Annexation Territory, in the manner and as provided in the Resolution of Formation. SECTION 4. Exemptions from the levy of the special tax shall be as provided in the Resolution of Formation and the applicable provisions of the Community Facilities District Law. In no event shall the special tax be levied on any parcel within the District in excess of the maximum special tax specified in the Resolution of Formation. SECTION 5. All of the collections of the special tax shall be used as provided in the Community Facilities District Law and in the Resolution of Formation, including, but not limited to, the payment of the costs of the Services, the payment of the costs of the City in administering the District, and the costs of collecting and administering the special tax. SECTION 6. The special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the City Council may provide for other appropriate methods of collection by resolution(s) of the City Council. The Finance Director of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of San Luis Obispo in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of San Luis Obispo for Fiscal Year 2016-17 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City. SECTION 7. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District, including the Annexation Territory, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the District, including the Annexation Territory, shall not be affected. SECTION 8. A summary of this ordinance, together with the ayes and noes, shall be published twice: at least five days prior to its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero, and; before the expiration of fifteen (15) days after its final passage, in the Atascadero News, a newspaper published and circulated in the City of Atascadero. A copy of the full text of this ordinance shall be on file in the City Clerk’s Office on and after the date following introduction and passage and shall be available to any interested member of the public. Page 36 ITEM NUMBER: A-5 DATE: 04/26/16 SECTION 9. This Ordinance shall take effect 30 days from the date of final passage. INTRODUCED at a regular meeting of the City Council held on April 12, 2016, and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on ___________________, by the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By:_______________________________ Tom O’Malley, Mayor ATTEST: _________________________________________ Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: __________________________________________ Brian A. Pierik, City Attorney Page 37 ITEM NUMBER: A-5 DATE: 04/26/16 Attachment 3: Draft Ordinance C – Special Tax Levy for CFD Annexation No. 16 (10380 El Camino Real) DRAFT ORDINANCE C AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES), INCLUDING CERTAIN ANNEXATION TERRITORY WHEREAS, the City of Atascadero (the “City”) has conducted proceedings pursuant to the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the “Act”) and the City of Atascadero Community Facilities District No. 2005-1 (Public Services) Ordinance enacted pursuant to the powers reserved by the City of Atascadero under Sections 3, 5, and 7 of Article XI of the Constitution of the State of California (the “CFD Ordinance”) (the Act and the CFD Ordinance may be referred to collectively as the “Community Facilities District Law”), to establish the City of Atascadero Community Facilities District No. 2005-1 (Public Services) (the “District”) for the purpose of financing police services, fire protection and suppression services, and park services (the “Services”) as provided in the Act; and WHEREAS, the rate and method of apportionment of special tax for the District is set forth in Exhibit B to the City Council Resolution entitled “A Resolution of the City Council of the City of Atascadero, California, For the Formation of Community Facilities District No. 2005-1 (Public Services)” (the “Resolution of Formation”), which was adopted on May 24, 2005; and WHEREAS, the City has conducted proceedings to annex territory into the District and, with respect to the proceedings, following an election of the qualified electors in the territory proposed for annexation (the “Annexation Territory”), the City Council, on April 12, 2016, adopted Resolution No. 2016-022 entitled “Resolution of the City Council of the City of Atascadero, California, Declaring the Results of Special Annexation Landowner Election, Determining Validity of Prior Proceedings, and Directing the Recording of an Amendment to Notice of Special Tax Lien.” NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO, DOES HEREBY ORDAINS AS FOLLOWS: SECTION 1. The above recitals are true and correct. SECTION 2. By the passage of this Ordinance, the City Council hereby authorizes and levies the special tax within the District, including the Annexation Territory, Page 38 ITEM NUMBER: A-5 DATE: 04/26/16 pursuant to the Community Facilities District Law, at the rate and in accordance with the rate and method of apportionment of special tax set forth in the Resolution of Formation, which rate and method is by this reference incorporated herein. The special tax has previously been levied in the original territory of the District beginning in Fiscal Year 2006-07 pursuant to Ordinance No. 478 passed and adopted by the City Council on July 12, 2005 and the special tax is hereby levied commencing in Fiscal Year 2016-17 in the District, including the Annexation Territory, and in each fiscal year thereafter to pay for the Services for the District and all costs of administering the District. SECTION 3. The City’s Finance Director or designee or employee or consultant of the City is hereby authorized and directed each fiscal year to determine the specific special tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, including the Annexation Territory, in the manner and as provided in the Resolution of Formation. SECTION 4. Exemptions from the levy of the special tax shall be as provided in the Resolution of Formation and the applicable provisions of the Community Facilities District Law. In no event shall the special tax be levied on any parcel within the District in excess of the maximum special tax specified in the Resolution of Formation. SECTION 5. All of the collections of the special tax shall be used as provided in the Community Facilities District Law and in the Resolution of Formation, including, but not limited to, the payment of the costs of the Services, the payment of the costs of the City in administering the District, and the costs of collecting and administering the special tax. SECTION 6. The special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the City Council may provide for other appropriate methods of collection by resolution(s) of the City Council. The Finance Director of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of San Luis Obispo in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of San Luis Obispo for Fiscal Year 2016-17 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City. SECTION 7. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District, including the Annexation Territory, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the District, including the Annexation Territory, shall not be affected. SECTION 8. A summary of this ordinance, together with the ayes and noes, shall be published twice: at least five days prior to its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero, and; before the expiration of fifteen (15) days after its final passage, in the Atascadero News, a newspaper published and circulated in the City of Atascadero. A copy of the full text of this ordinance shall be on file in Page 39 ITEM NUMBER: A-5 DATE: 04/26/16 the City Clerk’s Office on and after the date following introduction and passage and shall be available to any interested member of the public. SECTION 9. This Ordinance shall take effect 30 days from the date of final passage. INTRODUCED at a regular meeting of the City Council held on April 12, 2016, and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on ___________________, by the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By:_______________________________ Tom O’Malley, Mayor ATTEST: _________________________________________ Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: __________________________________________ Brian A. Pierik, City Attorney Page 40 ITEM NUMBER: C-1 DATE: 04/26/16 Atascadero City Council Staff Report - Public Works Department SLOCOG’s Self-Help County Efforts RECOMMENDATIONS: Council: 1. Review and Comment on Draft Transportation Investment Plan categories and distributions including 9-year duration, formula distribution for Local Road Repairs and Transportation Improvements, and Safeguards; and, 2. Identify the key projects for local transportation funding as: roadway maintenance, repair, and rehabilitation; congestion management at key intersections; and bike /pedestrian improvements and connectivity; and, 3. Direct staff to work with SLOCOG to develop a Final Transportation Investment Plan, Ordinance, and Safeguards for City and County evaluation to place on the November 2016 ballot for voter consideration. DISCUSSION: Background: On April 6, 2016, the San Luis Obispo Council of Governments (SLOCOG) Board approved proceeding with the development of a possible ballot measure for a countywide sales tax to be used for transportation related expenditures. This measure is proposed due to the continual decrease in transportation funding and shifting of burden to local agencies to remediate regional and statewide transportation deficiencies. There are many California counties that have passed similar measures to become “Self-Help Counties” to lessen the reliance on depleting State and Federal funding to address regional transportation deficiencies, making transportation funding even less of a priority for the State. Based upon a public engagement effort, SLOCOG is recommending a one-half cent sales tax for a term of nine years that is anticipated to generate $25 million annually or $225 million over the nine year term. As part of the ballot measure, a Transportation Investment Plan is required along with voter safeguards. The proposed investment plan Page 41 ITEM NUMBER: C-1 DATE: 04/26/16 which includes four categories for use of the sales tax measure, including Local Road Repair and Transportation (50%), Regional Projects (25%), Bike and Pedestrian Safety and Connectivity (15%), and Public Transportation (10%). The attached SLOCOG report includes further explanation and details for these categories and SLOCOG staff will present the attached report and be available to answer any questions related to the proposed ballot measure components and process. SLOCOG is asking the City to identify key local transportation -related projects that are of importance and could be funded by the Local Road Repair and Transportation Improvement allocation. This allocation, which equates to fifty percent of the sales tax ($12.5 million annually), is proposed to be controlled by local jurisdictions and allocated by a base amount ($1.2 million) with the remainder ($11.3 million) proportionate to jurisdiction population. The base amount for each of the eight eligible juris dictions (7 cities plus county) is $150,000. Atascadero has 10.63% of the County population and would receive this percentile of $11.3 million for an annual total of $1,351,670 annually, or $12,165,031 over the nine year ballot term. Table 2 of SLOCOG’s report provides a detailed ledger of these allocations. There are subcategory formulas for the local funds and include the following (% based upon entire sales tax revenue):  Local Choice: 36% - for any transportation purpose  Community Enhancements: 10% - for downtown enhancements, major road projects, etc.  Safe Routes to School: 4% - for capital improvements around local schools Key Projects SLOCOG has asked the City to identify key transportation projects for the local transportation funding allocation. Staff has identified the following key needs: Road Maintenance Road rehabilitation and maintenance continues to be a key need here in the City. While the Measure F-14 sales tax has a tremendous impact on local roadway funding, additional funding for roadway maintenance and rehabilitation would allow the City to make bigger gains in the pavement condition of the roadway system. A ten-year projection for various budget scenarios was ran in 2014 using the City’s pavement management system, which indicated $4.8 million would be needed annually for roadway maintenance and rehabilitation to maintain the existing Pavement Condition Index (PCI) of 47. At the time, $1.3 million was the current budget and the F -14 sales tax measure increased the combined budget to about $3.1 million. The following chart shows the ten-year project analysis done in 2014. Page 42 ITEM NUMBER: C-1 DATE: 04/26/16 Between Measure F-14 funds and other City funds, the City will be addressing over 30 miles of roadway repairs in the next 5 years. While this is a significant step forward, road maintenance and repair of the City’s 130 miles of roadway continues to be a key need. Congestion Relief Congestion management at key intersections could also be funding with the Local Choice portion or Community Enhancements – estimated at $270,334 annually or $2,433,006 over the nine-year term. Traffic flow at key intersections, particularly at or near US Highway 101 continues to be a potential barrier to economic development and improving these intersections continues to be a significant need for the City. Potential projects for congestion management could include US Highway 101 interchange improvements or arterial intersection improvements. Bike and Pedestrian Connectivity Bike and pedestrian improvements and connectivity continue to be a community need. Potential projects could include Colony Park Community Center to Atascadero Lake Park connection (via Atascadero Avenue), and other bike lanes, sidewalks, crosswalks, and multi-purpose paths on El Camino Real, Santa Rosa Road, Curbaril Avenue, SR 41, etc. Local choice funds could be used to leverage/match available grant funds. If the sales tax measure passes, it is anticipated that the City will engage in a public process to identify specific projects and produce a five year Construction Improvement Program for all local choice funding. Regional Projects, Bike & Pedestrian Safety & Connectivity, and Public Transportation Unlike the Local Road Repairs and Transportation Improvements, SLOCOG has identified specific projects to invest the other sales tax allocations, including the Atascadero/Templeton Missing Link bicycle connectivity project. Page 43 ITEM NUMBER: C-1 DATE: 04/26/16 FISCAL IMPACT: There is no significant direct fiscal impact for the above recommendations. If the SLOCOG ballot initiative is successful, the City is estimated to receive $1,351,670 annually or $12,165,031 over the nine-year ballot term. ALTERNATIVES: 1. The Council may choose to not make a recommendation on this matter. However, the recommendation is not necessarily an endorsement of the sale s tax but rather providing input to SLOCOG staff on development of the Transportation Investment Plan. 2. The Council may also choose to identify other projects or priorities to be used for Local Road Repairs and Transportation Improvements portion of the sales tax measure. ATTACHMENTS: 1. SLOCOG’s Self-Help County Efforts Report dated April 2, 2016 Page 44 Page 1 SLOCOG’s Self-Help County Efforts April 2, 2016 (Information for Member Jurisdictions) SUMMARY: State funds for transportation infrastructure have dropped and continue to decrease. SLOCOG saw this first hand with the loss of State Transportation Improvement Program (STIP) funds (approximately $15M less in the 15/16 programming cycle). Without new funding for transportation investments, our cities and county may lose job opportunities, experience increased traffic on degraded streets and highways, suffer potential service cuts on buses, and see more costly transportation services for youth, seniors, and people with disabilities. At the December 2015 board meeting, staff was directed to investigate Self-Help County status for the region. Throughout California twenty local county transportation agencies, like SLOCOG, have a super-majority, voter- approved, transportation sales tax measure. Through outreach, focus groups, and polling conducted between December 2015 and March 2016, SLOCOG’s staff and consultant reached out and launched an effort to identify the public’s transportation priorities and their level of support for transportation repairs and improvements. Per the results of this public engagement effort, SLOCOG staff is recommending a ½-cent regional sales tax that will generate $25M/year solely for transportation purposes ($225M over the 9-year period), as outlined in a specific voter-approved Transportation Investment Plan (see pie chart to the right), which would also include many voter safeguards. SLOCOG staff presented a summary of outreach, the suggested strategy for moving towards a November 2016 ballot measure, and solicited feedback on the proposed investments at the April 6, 2016 SLOCOG Board meeting. The SLOCOG Board directed staff to present to all City Councils and the Board of Supervisors for conceptual support of the Proposed Investments. A detailed description of this pie chart and recommendations is outlined below in the Discussion section of this staff report and a 2-page overview is attached. RECOMMENDATIONS: A.) Review and Comment on: draft Transportation Investment Plan categories and distributions, including: 9-year duration, formula distribution for Local Road Repairs and Transportation Improvements, and Safeguards. B.) Identify Key Projects for local funding allocation. C.) Direct staff to work with SLOCOG to develop a Final Transportation Investment Plan, Ordinance, and Safeguards for City and County evaluation to place on the November 2016 ballot for voter consideration. ITEM NUMBER: C-1 DATE: 04/26/16 ATTACHMENT: 1 Page 45 Page 2 DISCUSSION: About SLOCOG: SLOCOG is an association of local governments, which is made up of the seven cities and the county. It has a 12-member Board, including, one member from each City Council and all of the County Board of Supervisors. SLOCOG’s prime responsibilities include transportation planning and funding for the region, while serving as a forum for the study and resolution of regional issues. SLOCOG is responsible for coordinating, planning, and programming transportation programs and projects countywide, including: Highways, interchanges, streets, public transit, biking, walking, safe routes to school, and ridesharing. SLOCOG develops the 20+ year Regional Transportation Plan (RTP) to identify fundable, needed transportation projects of every mode. Transportation Funding Problem: State and Federal revenues provided to our local transportation systems have been in decline for over a decade. More critically, since the release of the 2014 Regional Transportation Plan, the State funding estimates have dropped significantly. This drop is attributable to the fact that transportation revenues are based on Gas Taxes, and due to both low fuel prices (which decreases the amount of Gas Tax) and more electric and hybrid vehicles (which decreases overall consumption). In the FY15/16 programming cycle there was ZERO State gas tax dollars for SLOCOG to program. These funds typically cover a significant share of the cost of highway improvements like local interchanges (LOVR, Brisco). Recently, SLOCOG shifted funds that are typically used for local downtown enhancements, bike and pedestrian projects, etc. to keep some of the big highway projects moving forward. This includes project development for congestion relief on 101 South in the Shell Beach/Pismo Beach area. Over the next 20 years, San Luis Obispo County’s population is expected to grow by another 44,000 people. This will result in more demand on our streets, highways, and transit. Also worth consideration, our local economy is bolstered with tourists and visitors (using our transportation systems) from around our State which will grow by another seven million people. With the current inadequate funding, our transportation systems will fall further behind. SLOCOG Public Engagement: In the past 6 months, SLOCOG staff and consultants engaged the public to garner information, feedback, and level of support at over 75 meetings with stakeholders, organizations, and clubs (see Attachment A). Over 700 meeting participants provided immediate feedback on problems and priorities through interactive clicker technology. An additional 143 people responded using a survey on SLOCOG’s website. Consultant efforts also included four Focus Group meetings and a 600 likely-voter (landline, cellular, e-mail), statistically valid poll. A Self-Help Measure for SLO County: Based upon public outreach, SLOCOG is considering a ½ cent regional sales tax that will generate $25M/year solely for transportation purposes, as outlined in a specific voter-approved Transportation Investment Plan requiring a 2/3 majority vote. Over half of the revenue would come from non-residents who visit our county. Self-Help funds improve local chances to leverage State/Federal grant funds. Each city in the county and the unincorporated portions of the county would receive direct annual allocations to use for their transportation priorities – whether for potholes, street maintenance, bicycle improvements, transit, safe routes to school, and other transportation improvements. ITEM NUMBER: C-1 DATE: 04/26/16 ATTACHMENT: 1 Page 46 Page 3 Proposed Transportation Investment Plan Distribution: Based on the extensive outreach, SLOCOG is recommending a ½ cent increase in sales tax for a 9- year duration contained within a Transportation Investment Plan for:  Local Road Repair & Transportation Improvements (50%) o This money is allocated directly to local jurisdictions under the following formula:  Local Choice: 36% (for any transportation purpose)  Community Enhancements: 10% spent on things such as downtown enhancements, major roadway improvements, etc.  Safe Routes to School: 4% dedicated to capital improvements around county schools  Public Transportation (10%) o This money is allocated as follows:  Transit: 7% allocated to capital improvements and operational improvements meant to increase frequency of current service (Transit Operators will further define regional and local allocation distribution)  Seniors, Veterans, Persons w/ Disabilities: 2% for point-to-point service increases  Transportation Demand Management: 1% dedicated to education and outreach meant to get people out of single occupant vehicles, thereby providing congestion relief during peak commute hours. ITEM NUMBER: C-1 DATE: 04/26/16 ATTACHMENT: 1 Page 47 Page 4  Bike & Pedestrian Safety and Connectivity (15%) o This money is meant to fund three specific regional bikeway improvements, including: City-to-the-Sea/Bob Jones Trail, Atascadero-Templeton Connector and Morro Bay-Cayucos Connector. It will also provide funds for a competitive bike and pedestrian grant program.  Regional Projects (25%) o This money will allow the region to implement operational improvements that provide funding to four critical areas: Shell Beach/Pismo Beach congestion relief on US 101; North County US 101 congestion relief; North Coast Highway 1 improvements; and Safety and congestion relief in the south SLO city area. Local Road Repairs and Transportation Improvements Allocations – In more depth: This category is distributed by formula to the local jurisdictions based upon $150k/jurisdiction as a base with the remaining funds distributed based upon share of population (Source: Department of Finance Population Estimates 1/1/15, Table E-5), modified by new population percentages in the fifth year. The following table depicts the recommended distribution of $12.5M for Local Road Repairs and Transportation Improvements. Each jurisdiction will determine its priority(s) for their local Community Enhancements and Safe Routes to School set asides (identified below). Table 2 – Local Road Repairs and Transportation Improvements Self Help Measure Required Safeguards: a. Independent Taxpayer Oversight Committee will oversee how funds are spent. b. Administrative Costs are set at a maximum of 1%. c. Maintenance of Effort provision will require that these new funds augment existing transportation funding, not supplant them. d. Annual Audits and Annual Reporting of how funds were spent. e. Sunset date. f. Development must pay its fair share. Jurisdiction $ Base % Share $ Share Annual Total % 9 Year Total Local Road Repair & Imp.s (36%) Community Enhancements (10%) SRTS (4%) Arroyo Grande 150,000$ 6.35%717,978$ 867,978$ 6.9%7,811,804$ 5,624,499$ 1,562,361$ 624,944$ Atascadero 150,000$ 10.63%1,201,670$ 1,351,670$ 10.8%12,165,031$ 8,758,822$ 2,433,006$ 973,202$ Grover Beach 150,000$ 4.79%541,491$ 691,491$ 5.5%6,223,419$ 4,480,862$ 1,244,684$ 497,874$ Morro Bay 150,000$ 3.75%423,668$ 573,668$ 4.6%5,163,013$ 3,717,369$ 1,032,603$ 413,041$ Paso Robles 150,000$ 11.13%1,257,409$ 1,407,409$ 11.3%12,666,685$ 9,120,013$ 2,533,337$ 1,013,335$ Pismo Beach 150,000$ 2.81%317,669$ 467,669$ 3.7%4,209,018$ 3,030,493$ 841,804$ 336,721$ San Luis Obispo 150,000$ 16.70%1,886,897$ 2,036,897$ 16.3%18,332,072$ 13,199,092$ 3,666,414$ 1,466,566$ SLO County 150,000$ 43.83%4,953,218$ 5,103,218$ 40.8%45,928,958$ 33,068,850$ 9,185,792$ 3,674,317$ Total 1,200,000$ 100%11,300,000$ 12,500,000$ 100%112,500,000$ 81,000,000$ 22,500,000$ 9,000,000$ Distribution based on $150k/jurisdiction base; plus Share of Population ITEM NUMBER: C-1 DATE: 04/26/16 ATTACHMENT: 1 Page 48 Page 5 Other Provisions: a. Biennial Strategic Plan development. o Efficient use funds by advancing ready-to-go projects when high-cost project(s) are in project development phase. b. Strict Plan amendment process. c. Implementation Guidelines. Next Steps: The SLOCOG Board has approved staff to distribute the draft Transportation Investment Plan breakdown (See Attachment B) to receive comments and feedback from local jurisdictions. The timeline for those meetings is as follows: County Board and City Councils review materials and provide feedback/comments: Apr. 12: Morro Bay City Council Apr. 18: Grover Beach City Council Apr. 19: Board of Supervisors; Designation of SLOCOG as Local Transportation Authority; Apr. 19: Paso Robles City Council Apr. 19: Pismo Beach City Council Apr. 26: Atascadero City Council Apr. 26: Arroyo Grande City Council May 3: San Luis Obispo City Council May 4: Special SLOCOG Board meeting to review / address comments, and staff will finalize Ballot Materials (Ballot Label, Transportation Investment Plan, Ordinance, and Safeguards). County Board and City Councils meetings for Approvals June 1: SLOCOG Board: Review comments, Approves Final Investment Plan, Ordinance, and Safeguards; Send for jurisdiction approvals. June/July: All City Councils and BOS: Plan Approvals. Aug 3: (SLOCOG) Local Transportation Authority Adopts Plan (2/3rds), and calls for election. Aug 9: BOS: Place materials on November 2016 Ballot. Nov. 8: Election Day ITEM NUMBER: C-1 DATE: 04/26/16 ATTACHMENT: 1 Page 49 Page 6 ATTACHMENT A SLOCOG - UPDATE OF PUBLIC ENGAGEMENT EFFORTS (2015/16) 2015AUGUSTSEPTEMBEROCTOBERNOVEMBERDECEMEBERBoard of DirectorsStaffBoard of DirectorsStaff/ConsultantStaff/ConsultantSupport Staff Reco:• Provide information and tools to sharpen the message/focus on transportation funding shortfalls.• Partner with non-governmental and civic organizations to educate the region on transportation funding issues.• Partner with non-governmental and civic organizations to educate the region on transportation funding issues.• Develops presentations for public• Continues to meet with stakeholders• Responds to media requests for more informationSupport Staff Reco:• Engage the public and stakeholders• Hold focus groups• Garner public feedback and complete a telephone survey to ascertain investment priorities and levels of support.• Contract signed for public engagement/outreach, focus groups, polling• Materials created for public engagement, including interactive clicker technology presentation• Begin scheduling additional meetings/outreach• Begin presentations with clicker technologyOutreach& MeetingsKCBX Central Coast VoicesMorro Bay RotarySanta Margarita Area CouncilCOLAB BoardCC American Public Works Assoc.Assembly Member Achadjian Farm Bureau & East Airport Commerce ParkCity ManagersHeal-SLOAvila Advisory CouncilSenator Monning StaffSLO Noontime KiwanisAtascadero RotarySLO Land Conservancy staffFarm Bureau StaffHomebuilders Govt Affairs Comm.EVC BoardSierra Club BoardSLO ChamberBob Jones Trail Comm.SLO Democratic PartyAG/GB Chamber: Legis. Comm.KCBX: Issues and IdeasCity ManagersSLO Republican PartyAtascadero City CouncilEconomic Vitality Comm. staffAtascadero Chamber of CommerceITEM NUMBER: C-1 DATE: 04/26/16 ATTACHMENT: 1 Page 50 Page 7 ITEM NUMBER: C-1 DATE: 04/26/16 ATTACHMENT: 1 Page 51 Page 8 ATTACHMENT B ITEM NUMBER: C-1 DATE: 04/26/16 ATTACHMENT: 1 Page 52 Page 9 ITEM NUMBER: C-1 DATE: 04/26/16 ATTACHMENT: 1 Page 53 ITEM NUMBER: C-2 DATE: 04/26/16 Atascadero City Council Staff Report - City Manager’s Office Property Assessed Clean Energy (PACE) Programs RECOMMENDATIONS: Council: 1. Adopt Draft Resolution A approving an amendment to the Western Riverside Council of Governments (WRCOG) Joint Powers Agreement to add the City as an Associate Member in order to authorize the City's participation in the California HERO Program; and 2. Adopt Draft Resolution B to join the California Home Finance Authority (CHFA) JPA as an Associate Member in order to authorize the City's participation in the CHFA SB 555 Community Facilities District (YGrene program); and 3. Adopt Draft Resolution C to join the California Home Finance Authority (CHFA) JPA as an Associate Member in order to authorize the City's partici pation in the CHFA AB 811 Authority PACE Program (YGrene program); and 4. Authorize the City Manager to execute agreements with PACE program providers WRCOG and YGrene. REPORT-IN-BRIEF: Property Assessed Clean Energy (PACE) is a financing mechanism that allows property owners to finance eligible energy and water efficiency, and renewable energy projects, by adding the cost as an assessment to the property tax bill. This mechanism eliminates upfront costs and allows repayment to be made over a long timefr ame, typically from five to twenty years. It is common practice for local governments to enter into agreements with PACE administrators because it allows the local government to establish certain guidelines and best practices for PACE program implementatio n. These guidelines and best practices can include, but are not limited to, integration with City and/or County residential energy efficiency programs, increased consumer protections, ability to Page 54 ITEM NUMBER: C-2 DATE: 04/26/16 terminate programs, and guaranteed access to program related data. Beginning in 2009, the City Council supported efforts of bringing PACE financing programs to Atascadero. In 2010, Council adopted a resolution that enabled Atascadero property owners to participate in the PACE program that is operated by CaliforniaFIRST. However, loans were not made available to residential consumers until July 2014. The delay was due to concerns expressed by Federal Housing Financing Agency (FHFA) and its determination that PACE loans would not be supported as superior liens by mortgage lienholders such as Fannie Mae or Freddie Mac. In 2014, the State of California established a loan-loss program to address these concerns and subsequently, CaliforniaFIRST made residential loans available. Recently, other PACE program providers have approached San Luis Obispo County jurisdictions about adding their financing program to the available options. Currently, in addition to the City of Atascadero, the following allow PACE programs: Arroyo Grande, Grover Beach, Morro Bay, Paso Robles, San Luis Obispo and SLO County. Staff from those cities and the County conferred and agreed that adding additional PACE program providers would benefit the community by adding choice for residents and businesses interested in financing energy and water conservation projects. Adoption of the proposed resolutions would enable the recommended PACE programs to be offered to the owners of property located within the City who wish to participate and finance renewable energy, energy efficiency and water efficiency impro vements and electric vehicle charging infrastructure. DISCUSSION: Countywide Action In June 2015, the San Luis Obispo County Board of Supervisors directed staff to implement PACE, by developing evaluation criteria for a Request for Proposal (RFP) process to vet and select the most qualified PACE provider(s) for the County of San Luis Obispo. County Planning and Building staff initiated the RFP on August 21, 2015. A selection committee including representatives from multiple County departments and the City of San Luis Obispo was formed to review and score each proposal received based on a standardized set of criteria. Following proposal review, interviews were conducted and other counties and cities were contacted regarding their experience and satisfaction with those PACE administrators. The selection committee recommended three PACE administrators, determining that having multiple qualified providers fosters a more competitive marketplace that maximizes the options available to property owners participating in the PACE program. On November 17, 2015, the Board of Supervisors adopted resolutions that added the County as an Associate Member to Joint Powers Agreements in order to authorize properties within the unincorporated areas of the County to participate in CaliforniaFIRST, HERO, and the YGrene PACE financing programs. By consensus, staff from the County and the cities agreed that all participating jurisdictions should Page 55 ITEM NUMBER: C-2 DATE: 04/26/16 recommend to their elected bodies to offer the same program(s) in an effort to minimize market confusion for customers and contractors and to promote energy efficiency programs in a more cohesive manner. Already a participant in the CaliforniaFIRST program, on February 16, 2016, the City of San Luis Obispo adopted resolutions an d became Associate Members to Joint Powers Agreements with the HERO and YGrene financing programs. PACE Program Overview The CaliforniaFIRST, HERO and YGrene PACE programs, recently authorized by the Board of Supervisors and the City of San Luis Obispo, would allow property owners in San Luis Obispo County and other participating cities to finance renewable energy, energy and water efficiency improvements, and electric vehicle charging infrastructure on their property. If a property owner chooses to participate, the installed improvements will be financed by the issuance of bonds by a joint powers authority, and will be collected together with property taxes. The bonds are secured by a voluntary contractual assessment levied on such owner's property, with no resources from the local government or other participating jurisdictions. Depending on the specific PACE program, this financing is available for eligible improvements on both residential and non-residential properties. PACE financing programs can be set up and administered under the following statutory frameworks: 1. The Improvement Act of 1911 (Improvement Act) as amended by AB 811, or 2. The Mello-Roos Act as amended by SB 555. Although, both SB 555 and AB 811 PACE program methods accomplish the same purpose, several important statutory and structural differences exist between program methods that operate under these statues. AB 811 allows for the formation of assessment districts to provide for the financing of clean energy and water conservation improvements on commercial and residential properties. The CaliforniaFIRST and HERO programs involve assessment districts formed pursuant to AB 811. However, CaliforniaFIRST was originally authorized to provide PACE programs to City of Atascadero property owners pursuant to Chapter 29 of Division 7 of the Streets & Highways Code and the issuance of improvement bonds under the Improvement Bond Act of 1915. SB 555 authorizes the formation of Community Facilities Districts ("CFDs") to finance the acquisition, installation and improvement of energy efficiency, water conservation and renewable energy systems on real property. Under SB 555, parcels are annexed into the district with each participating owner consenting in writing to the annexation. As with the AB 811 method, a special tax to repay project financing is then levied against the property owner. The YGrene program that is currently being offered involves annexation into a CFD. Participation in the HERO and YGrene programs both require that the City must become an Associate Member of their Joint Powers Authorities. There are no dues or Page 56 ITEM NUMBER: C-2 DATE: 04/26/16 other costs for the City associated with membership. Federal Housing Finance Agency (FHFA) - Fannie Mae/Freddie Mac The Federal Housing Finance Agency's (FHFA) concerns regarding PACE lien priority remains, because as a local assessment, the lien would be superior to Fannie Mae/ Freddie Mac's mortgage interest. Due to this objection, on August 31, 2010, mortgage originators were informed that the FHFA would not be purchasing any mortgages with PACE liens. In 2014, in response to FHFA concerns, the State of California's established a loan loss reserve fund for residential PACE Programs to provide a level of risk mitigation. Although the loan loss reserve fund has been established and there has been a lack of related adverse consequences experienced by ongoing programs, the FHFA's position has not changed. Staff recognizes that risks to individual homeowners remain because FHFA has not changed its stated policy that Fannie Mae and Freddie Mac should not purchase mortgages on properties encumbered by residential PACE programs. PACE providers have the responsibility to disclose the risks to prospective participants so that they can decide whether or not to participate and the program administrators will execute an indemnification and insurance agreement. PACE Program Benefits • Savings: Energy and water savings are possible depending on the improvements financed. • Eligibility: Provides alternative financing options for property owners to fund renewable energy, energy efficiency and/or water efficiency improvements that lower utility bills. • Voluntary: Property owners can choose to participate in the program at their discretion. Improvements and properties must meet eligibility criteria in order to qualify for financing. • Payment obligation stays with the property: The voluntary contractual assessment stays with the property upon transfer of ownership. Certain residential conforming mortgage providers will, however, require the assessment be paid off at the time the property is refinanced or sold. • Prepayment option: The property owner can choose to pay off the asse ssments at any time, subject to applicable prepayment penalties. Potential Benefits to the City • Increased energy and water conservation by residents and businesses. • Potential economic benefits resulting from local job creation and increases in sales and property tax revenue. • The City is not obligated to repay the bonds or to pay any delinquent assessments levied on the participating properties. • All PACE program and assessment administration, bond issuance and bond administration functions are handled by the PACE program administrators (CaliforniaFIRST, HERO, and YGrene). Little, if any, City staff time is needed to participate in the PACE program. • Adding additional PACE financing programs increases financing options for city Page 57 ITEM NUMBER: C-2 DATE: 04/26/16 residents and businesses, offering financing to property owners quickly and easily. Recommended PACE Programs California Statewide Communities Development Authority - CaliforniaFIRST Program The California Statewide Communities Development Authority (“CSCDA”) is a state- wide JPA formed by the California State Associations of Counties and the League of California Cities. The City is a member of CSCDA. CSCDA's PACE program is known as CaliforniaFIRST and is administered by Renewable Funding. CSCDA uses an "open market" source of funding to finance the loans made to property owners. Under this model, the property owner arranges the financing with a private lender. CSCDA then issues a bond, secured by t he assessment, to the private lender. In 2010 CSCDA suspended launch of the CaliforniaFIRST residential program due the FHFA issues discussed above, but moved forward with its commercial program. In 2014, CaliforniaFIRST's launched their residential program, after developing underwriting standards and disclosures in an effort to address the risks related to residential PACE, and the State of California's establishment of a loan loss reserve fund for residential PACE Programs to provide a level of risk mitigation. Although the City has already authorized CSCDA's CaliforniaFIRST program to be offered in Atascadero, its program administrator will need to execute an indemnification and insurance agreement to further mitigate the level of risk. California Home Finance Authority - YGrene Program California Home Finance Authority ("CHF"), which is in the process of formally changing its name to Golden State Finance Authority, is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California and the Joint Power Agreement entered into on July 1, 1993, as amended from time to time. CHF has established two Property Assessed Clean Energy ("PACE") financing programs for residential, commercial, industrial and agricultural properties to address high up-front costs for property owners who wish to improve their properties through installation of measures that will generate renewable energy or reduce their energy a nd water use. By offering low cost financing, CHF's PACE programs allow construction of these projects to proceed and, in the process, stimulate building activity and the overall local economy, reduce peak energy demand, increase property values, and gener ate savings on utility bills for property owners. CHF contracts with YGrene Energy Fund CA LLC (YGrene) to serve as the program administrator and to operate the YGrene Works for California PACE financing program. CHF sought and has completed the process of validation for both the SB 555 and the AB 811 programs, as described above with the Superior Court for the County of Sacramento. As of 2015, the CHF SB 555 PACE program was fully operational. Page 58 ITEM NUMBER: C-2 DATE: 04/26/16 Although CHF is implementing only the SB 555 PACE program at this time, CHF chose to form, validate and maintain both the SB 555 and AB 811 programs offerings. Should market conditions, consumer demand and/or legislative changes affect one PACE program more than another, CHF would have the flexibility to offer the program that best supports CHF's vision of service without any interruption to participating counties and cities and their property owners. CHF intends to maximize the benefits of both program offerings. To support a more competitive marketplace, staff is recommending that the Council adopt two resolutions that would authorize CHF to offer both PACE program models: 1. The first resolution authorizes the City to join the JPA as an Associate Member and permits property owners within the incorporated areas of the City to participate in the CHF SB 555 Community Facilities District. 2. The second resolution authorizes the City to join the JPA as an Associate Member and permits property owners within the incor porated areas of the City to participate in the CHF AB 811 Authority PACE Program. Each resolution also authorizes CHF (1) to accept applications from property owners within the City's incorporated area to finance authorized improvements; and (2) to conduct proceedings and levy special taxes or contractual assessments, as applicable, on the property of participating owners. Western Riverside Council of Governments - HERO Program Western Riverside Council of Governments (WRCOG) is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California and the Joint Powers Agreement entered into on April 1, 1991, as amended from time to time. WRCOG's PACE program is known as HERO and is administered by Renovate America, Inc. The HERO program finances installation of renewable energy, energy or water efficiency products, or electric charging infrastructure that are permanently fixed to a property owner's real property. The program is availab le for eligible improvements on both residential and non-residential properties. The HERO program is similar to the CaliforniaFIRST program, in that the bonds are secured by voluntary contractual assessments levied on such owner's property, with no recourse to the City or other participating jurisdictions. Property owner participation is completely voluntary. Property owners who wish to participate in the program agree to repay the amount borrowed through the voluntary contractual assessment collected together with their property taxes. Conclusion The City of Atascadero previously approved participation in the CaliforniaFIRST PACE program. Adding additional PACE programs, to be administered by HERO and YGrene , provide more options for City property owners, and will not add to or require any Page 59 ITEM NUMBER: C-2 DATE: 04/26/16 additional responsibilities for the City. Given the establishment of the State's PACE Loss Reserve Program as well as the success of PACE programs statewide, staff recommends that the City of Atascadero continue expanding PACE by adopting the resolutions authorizing the recommended PACE programs. FISCAL IMPACT: There is no fiscal impact associated with the recommended actions. There is no cost to the City to become an associate member of the JPA or by opting into the PACE program described in this report. The City will have no administrative responsibilities, marketing obligations, or financial obligations associated with the PACE program. ALTERNATIVES: The City Council could decide not to participate in the recommended PACE programs. The City’s participation with the CaliforniaFIRST program would continue and be the only option for Atascadero residents at this time. ATTACHMENTS: 1. HERO Resolution 2. YGrene Resolution - CFD SB 555 3. YGrene Resolution - PACE AB 811 4. CaliforniaFIRST Resolution No. 2010-001 Page 60 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY’S JURISDICTION IN THE CALIFORNIA HERO PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY AND WATER EFFICIENCY IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND APPROVING THE AMENDMENT TO A CERTAIN JOINT POWERS AGREEMENT RELATED THERETO WHEREAS, the Western Riverside Council of Governments (“Authority”) is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the “Act”) and the Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the “Authority JPA”); and WHEREAS, Authority has established the California HERO Program to provide for the financing of renewable energy distributed generation sources, energy and water efficiency improvements and electric vehicle charging infrastructure (the “Improvements”) pursuant to Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code (“Chapter 29”) within counties and cities throughout the State of California that elect to participate in such program; and WHEREAS, City of Atascadero (the “City”) is committed to development of renewable energy sources and energy efficiency improvements, reduction of greenhouse gases, protection of our environment, and reversal of climate change; and WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist property owners in financing the cost of installing Improvements through a voluntary contractual assessment program; and WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the counties and cities that are participating in the California HERO Program would promote the purposes cited above; and WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve energy and water efficiency and independence, and in doing so cooperate with Authority in order to efficiently and economically assist property owners the City in financing such Improvements; and WHEREAS, Authority has established the California HERO Program, which is such a voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally made and entered into April 1, 1991, as amended to date, and the Amendment to Joint Powers Agreement Adding the City of Atascadero as an Associate Member of the Western Riverside Council of Governments to Permit the Provision of Property Assessed Clean Energy (PACE) ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 1 Page 61 Program Services within the City (the “JPA Amendment”), by and between Authority and the City, a copy of which is attached as Exhibit “A” hereto, to assist property owners within the jurisdiction of the City in financing the cost of installing Improvements; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy and collection of assessments or any required remedial action in the case of delinquencies in the payment of any assessments or the issuance, sale or administration of any bonds issued in connection with the California HERO Program. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero: SECTION 1. This City Council finds and declares that properties in the City’s incorporated area will be benefited by the availability of the California HERO Program to finance the installation of the Improvements. SECTION 2. This City Council consents to inclusion in the California HERO Program of all of the properties in the jurisdictional boundaries of the City and to the Improvements, upon the request by and voluntary agreement of owners of such properties, in compliance with the laws, rules and regulations applicable to such program; and to the assumption of jurisdiction thereover by Authority for the purposes thereof. SECTION 3. The consent of this City Council constitutes assent to the assumption of jurisdiction by Authority for all purposes of the California HERO Program and authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Improvements, including the levying, collecting and enforcement of the contractual assessments to finance the Improvements and the issuance and enforcement of bonds to represent such contractual assessments. SECTION 4. This City Council hereby approves the JPA Amendment and authorizes the execution thereof by appropriate City officials. SECTION 5. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the California HERO Program within the City, and report back periodically to this City Council on the success of such program. SECTION 6. This Resolution shall take effect immediately upon its adoption. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority Executive Committee. ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 1 Page 62 On motion by Council Member __________________ and seconded by Council Member __________________, the foregoing Resolution in hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: ________________________________ Tom O’Malley, Mayor ATTEST: _____________________________________ Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: _____________________________________ Brian A. Pierik, City Attorney ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 1 Page 63 EXHIBIT A AMENDMENT TO THE JOINT POWERS AGREEMENT ADDING CITY OF ATASCADERO AS AS AN ASSOCIATE MEMBER OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS TO PERMIT THE PROVISION OF PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM SERVICES WITHIN SUCH CITY This Amendment to the Joint Powers Agreement (“JPA Amendment”) is made and entered into on the ___day of _____, 2016, by City of Atascadero (“City”) and the Western Riverside Council of Governments (“Authority”) (collectively the “Parties”). RECITALS WHEREAS, Authority is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the “Joint Exercise of Powers Act”) and the Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the “Authority JPA”); and WHEREAS, as of October 1, 2012, Authority had 18 member entities (the “Regular Members”). WHEREAS, Chapter 29 of the Improvement Act of 1911, being Division 7 of the California Streets and Highways Code (“Chapter 29”) authorizes cities, counties, and cities and counties to establish voluntary contractual assessment programs, commonly referred to as a Property Assessed Clean Energy (“PACE”) program, to fund certain renewable energy sources, energy and water efficiency improvements, and electric vehicle charging infrastructure (the “Improvements”) that are permanently fixed to residential, commercial, industrial, agricultural or other real property; and WHEREAS, Authority has established a PACE program to be known as the “California HERO Program” pursuant to Chapter 29 which authorizes the implementation of such PACE financing program for cities and counties throughout the state; and WHEREAS, City desires to allow owners of property within its jurisdiction to participate in the California HERO Program and to allow Authority under Chapter 29, as it is now enacted or may be amended hereafter, to finance Improvements to be installed on such properties; and WHEREAS, this JPA Amendment will permit City to become an Associate Member of Authority and to participate in California HERO Program for the purpose of facilitating the implementation of such program within the jurisdiction of City; and WHEREAS, pursuant to the Joint Exercise of Powers Act, the Parties are approving this JPA Agreement to allow for the provision of PACE services through the California ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 1 Page 64 HERO Program, including the operation of such PACE financing program, within the incorporated territory of City; and WHEREAS, the JPA Amendment sets forth the rights, obligations and duties of City and Authority with respect to the implementation of the California HERO Program within the incorporated territory of City. MUTUAL UNDERSTANDINGS NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter stated, the Parties hereto agree as follows: A. JPA Amendment. 1. The Authority JPA. City agrees to the terms and conditions of the Authority JPA, attached. 2. Associate Membership. By adoption of this JPA Amendment, City shall become an Associate Member of Authority on the terms and conditions set forth herein and the Authority JPA and consistent with the requirements of the Joint Exercise of Powers Act. The rights and obligations of City as an Associate Member are limited solely to those terms and conditions expressly set forth in this JPA Amendment for the purposes of implementing the California HERO Program within the incorporated territory of City. Except as expressly provided for by the this JPA Amendment, City shall not have any rights otherwise granted to Authority’s Regular Members by the Authority JPA, including but not limited to the right to vote on matters before the Executive Committee or the General Assembly, the right to amend or vote on amendments to the Authority JPA, and the right to sit on committees or boards established under the Authority JPA or by action of the Executive Committee or the General Assembly, including, without limitation, the General Assembly and the Executive Committee. City shall not be considered a member for purposes of Section 9.1 of the Authority JPA. 3. Rights of Authority. This JPA Amendment shall not be interpreted as limiting or restricting the rights of Authority under the Authority JPA. Nothing in this JPA Amendment is intended to alter or modify Authority Transportation Uniform Mitigation Fee (TUMF) Program, the PACE Program administered by Authority within the jurisdictions of its Regular Members, or any other programs administered now or in the future by Authority, all as currently structured or subsequently amended. B. Implementation of California HERO Program within City Jurisdiction. 1. Boundaries of the California HERO Program within City Jurisdiction. The boundaries within which contractual assessments may be entered into under the California HERO Program (the “Program Boundaries”) shall include the entire incorporated territory of City. 2. Determination of Eligible Improvements. Authority shall determine the types of distributed generation renewable energy sources, energy efficiency or water ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 1 Page 65 conservation improvements, electric vehicle charging infrastructure or such other improvements as may be authorized pursuant to Chapter 29 (the “Eligible Improvements”) that will be eligible to be financed under the California HERO Program. 3. Implementation of California HERO Program Within the Program Boundaries. Authority will undertake such proceedings pursuant to Chapter 29 as shall be legally necessary to enable Authority to make contractual financing of Eligible Improvements available to eligible property owners within the Program Boundaries. 4. Financing the Installation of Eligible Improvements. Authority shall implement its plan for the financing of the purchase and installation of the Eligible Improvements under the California HERO Program within the Program Boundaries. 5. Ongoing Administration. Authority shall be responsible for the ongoing administration of the California HERO Program, including but not limited to producing education plans to raise public awareness of the California HERO Program, soliciting, reviewing and approving applications from residential and commercial property owners participating in the California HERO Program, establishing contracts for residential, commercial and other property owners participating in such program, establishing and collecting assessments due under the California HERO Program, adopting and implementing any rules or regulations for the California HERO Program, and providing reports as required by Chapter 29. City will not be responsible for the conduct of any proceedings required to be taken under Chapter 29; 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 any bonds issued in connection with the California HERO Program. 6. Phased Implementation. The Parties recognize and agree that implementation of the California HERO Program as a whole can and may be phased as additional other cities and counties execute similar agreements. City entering into this JPA Amendment will obtain the benefits of and incur the obligations imposed by this JPA Amendment in its jurisdictional area, irrespective of whether cities or counties enter into similar agreements. C. Miscellaneous Provisions. 1. Withdrawal. Authority may withdraw from this JPA Amendment upon six (6) months written notice to City; provided, however, there is no outstanding indebtedness of Authority within City. The provisions of Section 6.2 of the Authority JPA shall not apply to City under this JPA Amendment. City may withdraw approval for conduct of the HERO Program within the jurisdictional limits of City upon thirty (30) written notice to WRCOG without liability to the Authority or any affiliated entity. City withdrawal shall not affect the validity of any voluntary assessment contracts (a) entered prior to the date of such withdrawal or (b) entered into after the date of such withdrawal so long as the applications for such voluntary assessment contracts were submitted to and approved by WRCOG prior to the date of City’s notice of withdrawal. ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 1 Page 66 2. Mutual Indemnification and Liability. Authority and City shall mutually defend, indemnify and hold the other party and its directors, officials, officers, employees and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries of any kind, in law or equity, to property or persons, including wrongful death, to the extent arising out of the willful misconduct or negligent acts, errors or omissions of the indemnifying party or its directors, officials, officers, employees and agents in connection with the California HERO Program administered under this JPA Amendment, including without limitation the payment of expert witness fees and attorneys fees and other related costs and expenses, but excluding payment of consequential damages. Without limiting the foregoing, Section 5.2 of the Authority JPA shall not apply to this JPA Amendment. In no event shall any of Authority’s Regular Members or their officials, officers or employees be held directly liable for any damages or liability resulting out of this JPA Amendment. 3. Environmental Review. Authority shall be the lead agency under the California Environmental Quality Act for any environmental review that may required in implementing or administering the California HERO Program under this JPA Amendment. 4. Cooperative Effort. City shall cooperate with Authority by providing information and other assistance in order for Authority to meet its obligations hereunder. City recognizes that one of its responsibilities related to the California HERO Program will include any permitting or inspection requirements as established by City. 5. Notice. Any and all communications and/or notices in connection with this JPA Amendment shall be either hand-delivered or sent by United States first class mail, postage prepaid, and addressed as follows: Authority: Western Riverside Council of Governments 4080 Lemon Street, 3rd Floor. MS1032 Riverside, CA 92501-3609 Att: Executive Director City: City of Atascadero 6500 Palma Avenue Atascadero, CA 93422 Attn: City Clerk 6. Entire Agreement. This JPA Amendment, together with the Authority JPA, constitutes the entire agreement among the Parties pertaining to the subject matter hereof. This JPA Amendment supersedes any and all other agreements, either oral or ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 1 Page 67 in writing, among the Parties with respect to the subject matter hereof and contains all of the covenants and agreements among them with respect to said matters, and each Party acknowledges that no representation, inducement, promise of agreement, oral or otherwise, has been made by the other Party or anyone acting on behalf of the other Party that is not embodied herein. 7. Successors and Assigns. This JPA Amendment and each of its covenants and conditions shall be binding on and shall inure to the benefit of the Parties and their respective successors and assigns. A Party may only assign or transfer its rights and obligations under this JPA Amendment with prior written approval of the other Party, which approval shall not be unreasonably withheld. 8. Attorney’s Fees. If any action at law or equity, including any action for declaratory relief is brought to enforce or interpret the provisions of this Agreement, each Party to the litigation shall bear its own attorney’s fees and costs. 9. Governing Law. This JPA Amendment shall be governed by and construed in accordance with the laws of the State of California, as applicable. 10. No Third Party Beneficiaries. This JPA Amendment shall not create any right or interest in the public, or any member thereof, as a third party beneficiary hereof, nor shall it authorize anyone not a Party to this JPA Amendment to maintain a suit for personal injuries or property damages under the provisions of this JPA Amendment. The duties, obligations, and responsibilities of the Parties to this JPA Amendment with respect to third party beneficiaries shall remain as imposed under existing state and federal law. 11. Severability. In the event one or more of the provisions contained in this JPA Amendment is held invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this JPA Amendment and the remaining parts of this JPA Amendment shall remain in full force and effect as though such invalid, illegal, or unenforceable portion had never been a part of this JPA Amendment. 12. Headings. The paragraph headings used in this JPA Amendment are for the convenience of the Parties and are not intended to be used as an aid to interpretation. 13. Amendment. This JPA Amendment may be modified or amended by the Parties at any time. Such modifications or amendments must be mutually agreed upon and executed in writing by both Parties. Verbal modifications or amendments to this JPA Amendment shall be of no effect. 14. Effective Date. This JPA Amendment shall become effective upon the execution thereof by the Parties hereto. ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 1 Page 68 IN WITNESS WHEREOF, the Parties hereto have caused this JPA Amendment to be executed and attested by their officers thereunto duly authorized as of the date first above written. WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS By: Date: Executive Committee Chair Western Riverside Council of Governments CITY OF ATASCADERO By: Date: Rachelle Rickard City Manager ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 1 Page 69 DRAFT RESOLUTION B RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY’S JURISDICTION IN THE CALIFORNIA HOME FINANCE AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 2014-1 (CLEAN ENERGY) TO FINANCE RENEWABLE ENERGY IMPROVEMENTS, ENERGY EFFICIENCY AND WATER CONSERVATION IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND APPROVING ASSOCIATE MEMBERSHIP IN THE JOINT EXERCISE OF POWERS AUTHORITY RELATED THERETO WHEREAS, the California Home Finance Authority, a California joint powers authority, (the “Authority”) has established the Community Facilities District No. 2014-1(Clean Energy) in accordance with the Mello-Roos Community Facilities Act, set forth in sections 53311 through 53368.3 of the California Government Code (the “Act”) and particularly in accordance with sections 53313.5(l) and 53328.1(a) (the “District”); and WHEREAS, the purpose of the District is to finance or refinance (including the payment of interest) the acquisition, installation, and improvement of energy efficiency, water conservation, renewable energy and electric vehicle charging infrastructure improvements permanently affixed to private or publicly-owned real property (the “Authorized Improvements”); and WHEREAS, the Authority is in the process of amending the Authority Joint Powers Agreement (the “Authority JPA”) to formally change its name to the Golden State Finance Authority; and WHEREAS, the City of Atascadero is committed to development of renewable energy generation and energy efficiency improvements, reduction of greenhouse gases, and protection of the environment; and WHEREAS, in the Act, the Legislature has authorized a parcel within the territory of the District to annex to the District and be subject to the special tax levy of the District only (i) if the city or county within which the parcel is located has consented, by the adoption of a resolution by the applicable city council or county board of supervisors, to the inclusion of parcels within its boundaries in the District and (ii) with the unanimous written approval of the owner or owners of the parcel when it is annexed (the “Unanimous Approval Agreement”), which, as provided in section 53329.6 of the Act, shall constitute the election required by the California Constitution; and ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 70 WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve energy efficiency and water conservation and in doing so cooperate with Authority in order to efficiently and economically assist property owners the City in financing such Authorized Improvements; and WHEREAS, the Authority has established the District, as permitted by the Act, the Authority JPA, originally made and entered into July 1, 1993, as amended to date, and the City, desires to become an Associate Member of the JPA by execution of the JPA Agreement, a copy of which is attached as Exhibit “A” hereto, to participate in the programs of the JPA and, to assist property owners within the incorporated area of the City in financing the cost of installing Authorized Improvements; and WHEREAS, the City will not be responsible for the conduct of any special tax proceedings; the levy and collection of special taxes or any required remedial action in the case of delinquencies in the payment of any special taxes in connection with the District. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero: SECTION 1. This City Council finds and declares that properties in the City’s incorporated area will be benefited by the availability of the Authority CFD No. 2014-1 (Clean Energy) to finance the installation of the Authorized Improvements. SECTION 2. This City Council consents to inclusion in the Authority CFD No. 2014-1 (Clean Energy) of all of the properties in the incorporated area within the City and to the Authorized Improvements, upon the request of and execution of the Unanimous Approval Agreement by the owners of such properties when such properties are annexed, in compliance with the laws, rules and regulations applicable to such program; and to the assumption of jurisdiction thereover by Authority for the purposes thereof. SECTION 3. The consent of this City Council constitutes assent to the assumption of jurisdiction by Authority for all purposes of the Authority CFD No. 2014-1 (Clean Energy) and authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Authorized Improvements. SECTION 4. This City Council hereby approves joining the JPA as an Associate Member and authorizes the execution by appropriate City officials of any necessary documents to effectuate such membership. SECTION 5. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the Authority CFD No. 2014-1 (Clean Energy) within the City, and report back periodically to this City Council on the success of such program. SECTION 6. This Resolution shall take effect immediately upon its adoption. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority. ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 71 On motion by Council Member __________________ and seconded by Council Member __________________, the foregoing Resolution in hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: ________________________________ Tom O’Malley, Mayor ATTEST: _____________________________________ Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: _____________________________________ Brian A. Pierik, City Attorney ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 72 Exhibit A JPA Agreement [to be inserted] ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 73 CALIFORNIA HOME FINANCE AUTHORITY AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT (Original date July 1, 1993 and as last amended and restated December 10, 2014) THIS AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT (“Agreement”) is entered into by and among the counties listed on Attachment 1 hereof and incorporated herein by reference. All such counties are referred to herein as "Members" with the respective powers, privileges and restrictions provided herein. RECITALS A. WHEREAS, the California Rural Home Mortgage Finance Authority (“CRHMFA”) was created by a Joint Exercise of Powers Agreement dated July 1, 1993 pursuant to the Joint Exercise of Powers Act (commencing with Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”). By Resolution 2003-02, adopted on January 15, 2003, the name of the authority was changed to CRHMFA Homebuyers Fund. The most recent amendment to the Joint Exercise of Powers Agreement was on January 28, 2004. B. WHEREAS, the Members of CRHMFA Homebuyers Fund desire to update, reaffirm, clarify and revise certain provisions of the joint powers agreement, including the renaming of the joint powers authority, as set forth herein. C. WHEREAS, the Members are each empowered by law to finance the construction, acquisition, improvement and rehabilitation of real property. D. WHEREAS, by this Agreement, the Members desire to create and establish a joint powers authority to exercise their respective powers for the purpose of financing the construction, acquisition, improvement and rehabilitation of real property within the jurisdiction of the Authority as authorized by the Act. NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Members individually and collectively agree as follows: 1. Definitions Unless the context otherwise requires, the following terms shall for purposes of this Agreement have the meanings specified below: "Act" means the Joint Exercise of Powers Act, commencing with Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, including the Marks-Roos Local Bond Pooling Act of 1985, as amended. "Agreement" means this Joint Exercise of Powers Agreement, as the same now exists or as it may from time to time be amended as provided herein. ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 74 "Associate Member" means a county, city or other public agency which is not a voting member of the Rural County Representatives of California, a California nonprofit corporation (“RCRC”), with legal power and authority similar to that of the Members, admitted pursuant to paragraph 4.d. below to associate membership herein by vote of the Board. “Audit Committee” means a committee made up of the nine-member Executive Committee. "Authority" means California Home Finance Authority (“CHF”), formerly known as CRHMFA Homebuyers Fund or California Rural Home Mortgage Finance Authority. "Board" means the governing board of the Authority as described in Section 7 below. "Bonds" means bonds, notes, warrants, leases, certificates of participation, installment purchase agreements, loan agreements and other securities or obligations issued by the Authority, or financing agreements entered into by the Authority pursuant to the Act and any other obligation within the meaning of the term "Bonds" under the Act. “Delegate” means the Supervisor designated by the governing board of each Member to serve on the Board of the Authority. “Executive Committee” means the nine-member Executive Committee of the Board established pursuant to Section 10 hereof. "Member" means any county which is a member of RCRC, has executed this Agreement and has become a member of the Authority. “Obligations” means bonds, notes, warrants, leases, certificates of participation, installment purchase agreements, loan agreements and other securities or obligations issued by the Authority, or financing agreements entered into by the Authority pursuant to the Act and any other financial or legal obligation of the Authority under the Act. “Program” or “Project” means any work, improvement, program, project or service undertaken by the Authority. "Rural County Representatives of California" or “RCRC” means the nonprofit entity incorporated under that name in the State of California. “Supervisor” means an elected County Supervisor from an RCRC member county. 2. Purpose The purpose of the Authority is to provide financing for the acquisition, construction, , improvement and rehabilitation of real property in accordance with applicable provisions of law for the benefit of residents and communities. In pursuit of this purpose, this Agreement provides for the joint exercise of powers common to any of its Members and Associate Members as provided herein, or otherwise authorized by the Act and other applicable laws, including assisting ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 75 in financing as authorized herein, jointly exercised in the manner set forth herein. 3. Principal Place of Business The principal office of the Authority shall be 1215 K Street, Suite 1650, Sacramento, California 95814. 4. Creation of Authority; Addition of Members or Associate Members a. The Authority is hereby created pursuant to the Act. As provided in the Act, the Authority shall be a public entity separate and distinct from the Members or Associate Members. b. The Authority will cause a notice of this Agreement or any amendment hereto to be prepared and filed with the office of the Secretary of State of California in a timely fashion in the manner set forth in Section 6503.3 of the Act. c. A county that is a member of RCRC may petition to become a member of the Authority by submitting to the Board a resolution or evidence of other formal action taken by its governing body adopting this Agreement. The Board shall review the petition for membership and shall vote to approve or disapprove the petition. If the petition is approved by a majority of the Board, such county shall immediately become a Member of the Authority. d. An Associate Member may be added to the Authority upon the affirmative approval of its respective governing board and pursuant to action by the Authority Board upon such terms and conditions, and with such rights, privileges and responsibilities, as may be established from time to time by the Board. Such terms and conditions, and rights, privileges and responsibilities may vary among the Associate Members. Associate Members shall be entitled to participate in one or more programs of the Authority as determined by the Board, but shall not be voting members of the Board. The Executive Director of the Authority shall enforce the terms and conditions for prospective Associate Members to the Authority as provided by resolution of the Board and as amended from time to time by the Board. Changes in the terms and conditions for Associate Membership by the Board will not constitute an amendment of this Agreement. 5. Term and Termination of Powers This Agreement shall become effective from the date hereof until the earlier of the time when all Bonds and any interest thereon shall have been paid in full, or provision for such payment shall have been made, or when the Authority shall no longer own or hold any interest in a public capital improvement or program. The Authority shall continue to exercise the powers herein conferred upon it until termination of this Agreement, except that if any Bonds are issued and delivered, in no event shall the exercise of the powers herein granted be terminated until all Bonds so issued and delivered and the interest thereon shall have been paid or provision for such payment shall have been made and any other debt incurred with respect to any other financing program established or administered by the Authority has been repaid in full and is no longer outstanding. 6. Powers; Restriction upon Exercise ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 76 a. To effectuate its purpose, the Authority shall have the power to exercise any and all powers of the Members or of a joint powers authority under the Act and other applicable provisions of law, subject, however, to the conditions and restrictions herein contained. Each Member or Associate Member may also separately exercise any and all such powers. The powers of the Authority are limited to those of a general law county. b. The Authority may adopt, from time to time, such resolutions, guidelines, rules and regulations for the conduct of its meetings and the activities of the Authority as it deems necessary or desirable to accomplish its purpose. c. The Authority shall have the power to finance the construction, acquisition, improvement and rehabilitation of real property, including the power to purchase, with the amounts received or to be received by it pursuant to a bond purchase agreement, bonds issued by any of its Members or Associate Members and other local agencies at public or negotiated sale, for the purpose set forth herein and in accordance with the Act. All or any part of such bonds so purchased may be held by the Authority or resold to public or private purchasers at public or negotiated sale. The Authority shall set any other terms and conditions of any purchase or sale contemplated herein as it deems necessary or convenient and in furtherance of the Act. The Authority may issue or cause to be issued Bonds or other indebtedness, and pledge any of its property or revenues as security to the extent permitted by resolution of the Board under any applicable provision of law. The Authority may issue Bonds in accordance with the Act in order to raise funds necessary to effectuate its purpose hereunder and may enter into agreements to secure such Bonds. The Authority may issue other forms of indebtedness authorized by the Act, and to secure such debt, to further such purpose. The Authority may utilize other forms of capital, including, but not limited to, the Authority’s internal resources, capital markets and other forms of private capital investment authorized by the Act.. d. The Authority is hereby authorized to do all acts necessary for the exercise of its powers, including, but not limited to: (1) executing contracts, (2) employing agents, consultants and employees, (3) acquiring, constructing or providing for maintenance and operation of any building, work or improvement, (4) acquiring, holding or disposing of real or personal property wherever located, including property subject to mortgage, (5) incurring debts, liabilities or obligations, (6) receiving gifts, contributions and donations of property, funds, services and any other forms of assistance from persons, firms, corporations or governmental entities, (7) suing and being sued in its own name, and litigating or settling any suits or claims, (8) doing any and all things necessary or convenient to the exercise of its specific powers and to accomplishing its purpose (9) establishing and/or administering districts to finance and refinance the acquisition, installation and improvement of energy efficiency, water ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 77 conservation and renewable energy improvements to or on real property and in buildings. The Authority may enter into one or more agreements, including without limitation, participation agreements and implementation agreements to implement such programs. e. Subject to the applicable provisions of any indenture or resolution providing for the investment of monies held thereunder, the Authority shall have the power to invest any of its funds as the Board deems advisable, in the same manner and upon the same conditions as local agencies pursuant to Section 53601 of the Government Code of the State of California. f. All property, equipment, supplies, funds and records of the Authority shall be owned by the Authority, except as may be provided otherwise herein or by resolution of the Board. g. Pursuant to the provisions of Section 6508.1 of the Act, the debts, liabilities and obligations of the Authority shall not be debts, liabilities and obligations of the Members or Associate Members. Any Bonds, together with any interest and premium thereon, shall not constitute debts, liabilities or obligations of any Member. The Members or Associate Members hereby agree that any such Bonds issued by the Authority shall not constitute general obligations of the Authority but shall be payable solely from the moneys pledged to the repayment of principal or interest on such Bonds under the terms of the resolution, indenture, trust, agreement or other instrument pursuant to which such Bonds are issued. Neither the Members or Associate Members nor the Authority shall be obligated to pay the principal of or premium, if any, or interest on the Bonds, or other costs incidental thereto, except from the revenues and funds pledged therefor, and neither the faith and credit nor the taxing power of the Members or Associate Members or the Authority shall be pledged to the payment of the principal of or premium, if any, or interest on the Bonds, nor shall the Members or Associate Members of the Authority be obligated in any manner to make any appropriation for such payment. No covenant or agreement contained in any Bond shall be deemed to be a covenant or agreement of any Delegate, or any officer, agent or employee of the Authority in an individual capacity, and neither the Board nor any officer thereof executing the Bonds or any document related thereto shall be liable personally on any Bond or be subject to any personal liability or accountability by reason of the issuance of any Bonds. 7. Governing Board a. The Board shall consist of the number of Delegates equal to one representative from each Member. b. The governing body of each Member shall appoint one of its Supervisors to serve as a Delegate on the Board. A Member’s appointment of its Delegate shall be delivered in writing (which may be by electronic mail) to the Authority and shall be effective until he or she is replaced by such governing body or no longer a Supervisor; any vacancy shall be filled by the governing body of the Member in the same manner provided in this paragraph b.. c. The governing body of each Member of the Board shall appoint a Supervisor as an alternate to serve on the Board in the absence of the Delegate; the alternate may exercise all the ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 78 rights and privileges of the Delegate, including the right to be counted in constituting a quorum, to participate in the proceedings of the Board, and to vote upon any and all matters. No alternate may have more than one vote at any meeting of the Board, and any Member’s designation of an alternate shall be delivered in writing (which may be by electronic mail) to the Authority and shall be effective until such alternate is replaced by his or her governing body or is no longer a Supervisor, unless otherwise specified in such appointment. Any vacancy shall be filled by the governing body of the Member in the same manner provided in this paragraph c.. d. Any person who is not a member of the governing body of a Member and who attends a meeting on behalf of such Member may not vote or be counted toward a quorum but may, at the discretion of the Chair, participate in open meetings he or she attends. e. Each Associate Member may designate a non-voting representative to the Board who may not be counted toward a quorum but who may attend open meetings, propose agenda items and otherwise participate in Board Meetings. f. Delegates shall not receive compensation for serving as Delegates, but may claim and receive reimbursement for expenses actually incurred in connection with such service pursuant to rules approved by the Board and subject to the availability of funds. g. The Board shall have the power, by resolution, to the extent permitted by the Act or any other applicable law, to exercise any powers of the Authority and to delegate any of its functions to the Executive Committee or one or more Delegates, officers or agents of the Authority, and to cause any authorized Delegate, officer or agent to take any actions and execute any documents for and in the name and on behalf of the Board or the Authority. h. The Board may establish such committees as it deems necessary for any lawful purpose; such committees are advisory only and may not act or purport to act on behalf of the Board or the Authority. i. The Board shall develop, or cause to be developed, and review, modify as necessary, and adopt each Program. 8. Meetings of the Board a. The Board shall meet at least once annually, but may meet more frequently upon call of any officer or as provided by resolution of the Board. b. Meetings of the Board shall be called, noticed, held and conducted pursuant to the provisions of the Ralph M. Brown Act, Chapter 9 (commencing with Section 54950) of Part I of Division 2 of Title 5 of the Government Code of the State of California. c. The Secretary of the Authority shall cause minutes of all meetings of the Board to be taken and distributed to each Member as soon as possible after each meeting. d. The lesser of twelve (12) Delegates or a majority of the number of current Delegates shall constitute a quorum for transacting business at any meeting of the Board, except ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 79 that less than a quorum may act to adjourn a meeting. Each Delegate shall have one vote. e. Meetings may be held at any location designated in notice properly given for a meeting and may be conducted by telephonic or similar means in any manner otherwise allowed by law. 9. Officers; Duties; Official Bonds a. The Board shall elect a chair and vice chair from among the Delegates at the Board’s annual meeting who shall serve a term of one (1) year or until their respective successor is elected. The chair shall conduct the meetings of the Board and perform such other duties as may be specified by resolution of the Board. The vice chair shall perform such duties in the absence or in the event of the unavailability of the chair. b. The Board shall contract annually with RCRC to administer the Agreement and to provide administrative services to the Authority, and the President and Chief Executive Officer of RCRC shall serve ex officio as Executive Director, Secretary, Treasurer, and Auditor of the Authority. As chief executive of the Authority, the Executive Director is authorized to execute contracts and other obligations of the Authority, unless prior Board approval is required by a third party, by law or by Board specification, and to perform other duties specified by the Board. The Executive Director may appoint such other officers as may be required for the orderly conduct of the Authority’s business and affairs who shall serve at the pleasure of the Executive Director. Subject to the applicable provisions of any indenture or resolution providing for a trustee or other fiscal agent, the Executive Director, as Treasurer, is designated as the custodian of the Authority’s funds, from whatever source, and, as such, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Act. The Executive Director, as Auditor, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Act. c. The Legislative Advocate for the Authority shall be the Rural County Representatives of California. d. The Treasurer and Auditor are public officers who have charge of, handle, or have access to all property of the Authority, and a bond for such officer in the amount of at least one hundred thousand dollars ($100,000.00) shall be obtained at the expense of the Authority and filed with the Executive Director. Such bond may secure the faithful performance of such officer’s duties with respect to another public office if such bond in at least the same amount specifically mentions the office of the Authority as required herein. The Treasurer and Auditor shall cause periodic independent audits to be made of the Authority’s books by a certified public accountant, or public accountant, in compliance with Section 6505 of the Act. e. The business of the Authority shall be conducted under the supervision of the Executive Director by RCRC personnel. 10. Executive Committee of the Authority a. Composition ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 80 The Authority shall appoint nine (9) members of its Board to serve on an Executive Committee. b. Powers and Limitations The Executive Committee shall act in an advisory capacity and make recommendations to the Authority Board. Duties will include, but not be limited to, review of the quarterly and annual budgets, service as the Audit Committee for the Authority, periodically review this Agreement; and complete any other tasks as may be assigned by the Board. The Executive Committee shall be subject to all limitations imposed by this Agreement, other applicable law, and resolutions of the Board. c. Quorum A majority of the Executive Committee shall constitute a quorum for transacting business of the Executive Committee. 11. Disposition of Assets Upon termination of this Agreement, all remaining assets and liabilities of the Authority shall be distributed to the respective Members in such manner as shall be determined by the Board and in accordance with the law. 12. Agreement Not Exclusive; Operation in Jurisdiction of Member This Agreement shall not be exclusive, and each Member expressly reserves its rights to carry out other public capital improvements and programs as provided for by law and to issue other obligations for those purposes. This Agreement shall not be deemed to amend or alter the terms of other agreements among the Members or Associate Members. 13. Conflict of Interest Code The Authority shall by resolution adopt a Conflict of Interest Code as required by law. 14. Contributions and Advances Contributions or advances of public funds and of personnel, equipment or property may be made to the Authority by any Member, Associate Member or any other public agency to further the purpose of this Agreement. Payment of public funds may be made to defray the cost of any contribution. Any advance may be made subject to repayment, and in that case shall be repaid in the manner agreed upon by the advancing Member, Associate Member or other public agency and the Authority at the time of making the advance. 15. Fiscal Year; Accounts; Reports; Annual Budget; Administrative Expenses a. The fiscal year of the Authority shall be the period from January 1 of each year to and including the following December 31, except for any partial fiscal year resulting from a change ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 81 in accounting based on a different fiscal year previously. b. Prior to the beginning of each fiscal year, the Board shall adopt a budget for the succeeding fiscal year. c. The Authority shall establish and maintain such funds and accounts as may be required by generally accepted accounting principles. The books and records of the Authority are public records and shall be open to inspection at all reasonable times by each Member and its representatives. d. The Auditor shall either make, or contract with a certified public accountant or public accountant to make, an annual audit of the accounts and records of the Authority. The minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the Government Code of the State of California, and shall conform to generally accepted auditing standards. When an audit of accounts and records is made by a certified public accountant or public accountant, a report thereof shall be filed as a public record with each Member (and also with the auditor of Sacramento County as the county in which the Authority’s office is located) within 12 months after the end of the fiscal year. e. In any year in which the annual budget of the Authority does not exceed five thousand dollars ($5,000.00), the Board may, upon unanimous approval of the Board, replace the annual audit with an ensuing one-year period, but in no event for a period longer than two fiscal years. 16. Duties of Members or Associate Members; Breach If any Member or Associate Member shall default in performing any covenant contained herein, such default shall not excuse that Member or Associate Member from fulfilling its other obligations hereunder, and such defaulting Member or Associate Member shall remain liable for the performance of all covenants hereof. Each Member or Associate Member hereby declares that this Agreement is entered into for the benefit of the Authority created hereby, and each Member or Associate Member hereby grants to the Authority the right to enforce, by whatever lawful means the Authority deems appropriate, all of the obligations of each of the parties hereunder. Each and all of the remedies given to the Authority hereunder or by any la w now or hereafter enacted are cumulative, and the exercise of one right or remedy shall not impair the right of the Authority to any or all other remedies. 17. Indemnification To the full extent permitted by law, the Board may authorize indemnification by the Authority of any person who is or was a Board Delegate, alternate, officer, consultant, employee or other agent of the Authority, and who was or is a party or is threatened to be made a party to a proceeding by reason of the fact that such person is or was such a Delegate, alternate, officer, consultant, employee or other agent of the Authority. Such indemnification may be made against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding, if such person acted in good faith and in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 82 proceeding, had no reasonable cause to believe his or her conduct was unlawful and, in the case of an action by or in the right of the Authority, acted with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances. 18. Immunities All of the privileges and immunities from liabilities, exemptions from law, ordinances and rules, all pension, relief, disability, workers' compensation and other benefits which apply to the activity of officers, agents or employees of any of the Members or Associate Members when performing their respective functions, shall apply to them to the same degree and extent while engaged as Delegates or otherwise as an officer, agent or other representative of the Authority or while engaged in the performance of any of their functions or duties under the provisions of this Agreement. 19. Amendment This Agreement may be amended by the adoption of the amendment by the governing bodies of a majority of the Members. The amendment shall become effective on the first day of the month following the last required member agency approval. An amendment may be initiated by the Board, upon approval by a majority of the Board. Any proposed amendment, including the text of the proposed change, shall be given by the Board to each Member’s Delegate for presentation and action by each Member's board within 60 days, which time may be extended by the Board. The list of Members, Attachment 1, may be updated to reflect new and/or withdrawn Members without requiring formal amendment of the Agreement by the Authority Board of Directors. 20. Withdrawal of Member or Associate Member If a Member withdraws as member of RCRC, its membership in the Authority shall automatically terminate. A Member or Associate Member may withdraw from this Agreement upon written notice to the Board; provided however, that no such withdrawal shall result in the dissolution of the Authority as long as any Bonds or other obligations of the Authority remain outstanding. Any such withdrawal shall become effective thirty (30) days after a resolution adopted by the Member's governing body which authorizes withdrawal is received by the Authority. Notwithstanding the foregoing, any termination of membership or withdrawal from the Authority shall not operate to relieve any terminated or withdrawing Member or Associate Member from Obligations incurred by such terminated or withdrawing Member or Associate Member prior to the time of its termination or withdrawal. 20. Miscellaneous a. Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. b. Construction. The section headings herein are for convenience only and are not to ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 83 be construed as modifying or governing the language in the section referred to. c. Approvals. Wherever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld. d. Jurisdiction; Venue. This Agreement is made in the State of California, under the Constitution and laws of such State and is to be so construed; any action to enforce or interpret its terms shall be brought in Sacramento County, California. e. Integration. This Agreement is the complete and exclusive statement of the agreement among the parties hereto, and it supersedes and merges all prior proposals, understandings, and other agreements, whether oral, written, or implied in conduct, between and among the parties relating to the subject matter of this Agreement. f. Successors; Assignment. This Agreement shall be binding upon and shall inure to the benefit of the successors of the parties hereto. Except to the extent expressly provided herein, no Member may assign any right or obligation hereunder without the consent of the Board. g. Severability. Should any part, term or provision of this Agreement be decided by the courts to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining parts, terms or provisions hereof shall not be affected thereby. The parties hereto have caused this Agreement to be executed and attested by their properly authorized officers. AS ADOPTED BY THE MEMBERS: Originally dated July 1, 1993 Amended and restated December 10, 1998 Amended and restated February 18, 1999 Amended and restated September 18, 2002 Amended and restated January 28, 2004 Amended and restated December 10, 2014 [SIGNATURES ON FOLLOWING PAGES] ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 84 SIGNATURE PAGE FOR NEW ASSOCIATE MEMBERS NAME OF COUNTY OR CITY: Dated: By: Name: Title: Attest: By [Clerk of the Board Supervisors or City Clerk] AFTER EXECUTION, PLEASE SEND TO: YGRENE ENERGY FUND ATTN: LEGAL DEPARTMENT 815 5TH STREET SANTA ROSA CA 95404 82671.00000\9603861.1 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 85 ATTACHMENT 1 CALIFORNIA HOME FINANCE AUTHORITY MEMBERS As of December 10, 2014 Alpine County Amador County Butte County Calaveras County Colusa County Del Norte County El Dorado County Glenn County Humboldt County Imperial County Inyo County Lake County Lassen County Madera County Mariposa County Mendocino County Merced County Modoc County Mono County Napa County Nevada County Placer County Plumas County San Benito County Shasta County Sierra County Siskiyou County Sutter County Tehama County Trinity County Tuolumne County Yolo County Yuba County ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 2 Page 86 DRAFT RESOLUTION C RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE CITY’S JURISDICTION IN THE CALIFORNIA HOME FINANCE AUTHORITY, PROGRAM TO FINANCE RENEWABLE ENERGY GENERATION, ENERGY AND WATER EFFICIENCY IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND APPROVING ASSOCIATE MEMBERSHIP IN THE JOINT EXERCISE OF POWERS AUTHORITY RELATED THERETO WHEREAS, the California Home Finance Authority (“Authority”) is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the “Act”) and the Joint Power Agreement entered into on July 1, 1993, as amended from time to time (the “Authority JPA”); and WHEREAS, the Authority is in the process of amending the Authority JPA to formally change its name to the Golden State Finance Authority; and WHEREAS, Authority has established a property-assessed clean energy (“PACE”) Program (the “Authority PACE Program”) to provide for the financing of renewable energy generation, energy and water efficiency improvements and electric vehicle charging infrastructure (the “Improvements”) pursuant to Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code (“Chapter 29”) within counties and cities throughout the State of California that elect to participate in such program; and WHEREAS, City of Atascadero (the “City”) is committed to development of renewable energy generation and energy and water efficiency improvements, reduction of greenhouse gases, and protection of the environment; and WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist property owners in financing the cost of installing Improvements through a voluntary contractual assessment program; and WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the counties and cities that are participating in the Authority PACE Program would promote the purposes cited above; and WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve energy and water efficiency, and in doing so cooperate with Authority in order to efficiently and economically assist property owners within the City in financing such Improvements; and ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 87 WHEREAS, Authority has established the Authority PACE Program, which is such a voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally made and entered into July 1, 1993, as amended to date, and the City, desires to become an Associate Member of the JPA by execution of the JPA Agreement, a copy of which is attached as Exhibit “A” hereto, to participate in the programs of the JPA and to assist property owners within the jurisdiction of the City in financing the cost of installing Improvements; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy and collection of assessments or any required remedial action in the case of delinquencies in the payment of any assessments or the issuance, sale or administration of any bonds issued in connection with the Authority PACE Program. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero: SECTION 1. This City Council finds and declares that properties in the City’s incorporated area will be benefited by the availability of the Authority PACE Program to finance the installation of the Improvements. SECTION 2. This City Council consents to inclusion in the Authority PACE Program of all of the properties in the jurisdictional boundaries of the City and to the Improvements, upon the request by and voluntary agreement of owners of such properties, in compliance with the laws, rules and regulations applicable to such program; and to the assumption of jurisdiction thereover by Authority for the purposes thereof. SECTION 3. The consent of this City Council constitutes assent to the assumption of jurisdiction by Authority for all purposes of the Authority PACE Program and authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Improvements, including the levying, collecting and enforcement of the contractual assessments to finance the Improvements and the issuance and enforcement of bonds to represent such contractual assessments. SECTION 4. This City Council hereby approves joining the JPA as an Associate Member and authorizes the execution by appropriate City officials of any necessary documents to effectuate such membership. SECTION 5. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the Authority PACE Program within the City, and report back periodically to this City Council on the success of such program. SECTION 6. This Resolution shall take effect immediately upon its adoption. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority. ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 88 On motion by Council Member __________________ and seconded by Council Member __________________, the foregoing Resolution in hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: ________________________________ Tom O’Malley, Mayor ATTEST: _____________________________________ Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: _____________________________________ Brian A. Pierik, City Attorney ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 89 Exhibit A JPA Agreement [to be inserted] ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 90 CALIFORNIA HOME FINANCE AUTHORITY AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT (Original date July 1, 1993 and as last amended and restated December 10, 2014) THIS AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT (“Agreement”) is entered into by and among the counties listed on Attachment 1 hereof and incorporated herein by reference. All such counties are referred to herein as "Members" with the respective powers, privileges and restrictions provided herein. RECITALS A. WHEREAS, the California Rural Home Mortgage Finance Authority (“CRHMFA”) was created by a Joint Exercise of Powers Agreement dated July 1, 1993 pursuant to the Joint Exercise of Powers Act (commencing with Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”). By Resolution 2003-02, adopted on January 15, 2003, the name of the authority was changed to CRHMFA Homebuyers Fund. The most recent amendment to the Joint Exercise of Powers Agreement was on January 28, 2004. B. WHEREAS, the Members of CRHMFA Homebuyers Fund desire to update, reaffirm, clarify and revise certain provisions of the joint powers agreement, including the renaming of the joint powers authority, as set forth herein. C. WHEREAS, the Members are each empowered by law to finance the construction, acquisition, improvement and rehabilitation of real property. D. WHEREAS, by this Agreement, the Members desire to create and establish a joint powers authority to exercise their respective powers for the purpose of financing the construction, acquisition, improvement and rehabilitation of real property within the jurisdiction of the Authority as authorized by the Act. NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Members individually and collectively agree as follows: 1. Definitions Unless the context otherwise requires, the following terms shall for purposes of this Agreement have the meanings specified below: "Act" means the Joint Exercise of Powers Act, commencing with Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, including the Marks-Roos Local Bond Pooling Act of 1985, as amended. "Agreement" means this Joint Exercise of Powers Agreement, as the same now exists or as it may from time to time be amended as provided herein. ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 91 "Associate Member" means a county, city or other public agency which is not a voting member of the Rural County Representatives of California, a California nonprofit corporation (“RCRC”), with legal power and authority similar to that of the Members, admitted pursuant to paragraph 4.d. below to associate membership herein by vote of the Board. “Audit Committee” means a committee made up of the nine-member Executive Committee. "Authority" means California Home Finance Authority (“CHF”), formerly known as CRHMFA Homebuyers Fund or California Rural Home Mortgage Finance Authority. "Board" means the governing board of the Authority as described in Section 7 below. "Bonds" means bonds, notes, warrants, leases, certificates of participation, installment purchase agreements, loan agreements and other securities or obligations issued by the Authority, or financing agreements entered into by the Authority pursuant to the Act and any other obligation within the meaning of the term "Bonds" under the Act. “Delegate” means the Supervisor designated by the governing board of each Member to serve on the Board of the Authority. “Executive Committee” means the nine-member Executive Committee of the Board established pursuant to Section 10 hereof. "Member" means any county which is a member of RCRC, has executed this Agreement and has become a member of the Authority. “Obligations” means bonds, notes, warrants, leases, certificates of participation, installment purchase agreements, loan agreements and other securities or obligations issued by the Authority, or financing agreements entered into by the Authority pursuant to the Act and any other financial or legal obligation of the Authority under the Act. “Program” or “Project” means any work, improvement, program, project or service undertaken by the Authority. "Rural County Representatives of California" or “RCRC” means the nonprofit entity incorporated under that name in the State of California. “Supervisor” means an elected County Supervisor from an RCRC member county. 2. Purpose The purpose of the Authority is to provide financing for the acquisition, construction, , improvement and rehabilitation of real property in accordance with applicable provisions of law for the benefit of residents and communities. In pursuit of this purpose, this Agreement provides for the joint exercise of powers common to any of its Members and Associate Members as provided herein, or otherwise authorized by the Act and other applicable laws, including assisting ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 92 in financing as authorized herein, jointly exercised in the manner set forth herein. 3. Principal Place of Business The principal office of the Authority shall be 1215 K Street, Suite 1650, Sacramento, California 95814. 4. Creation of Authority; Addition of Members or Associate Members a. The Authority is hereby created pursuant to the Act. As provided in the Act, the Authority shall be a public entity separate and distinct from the Members or Associate Members. b. The Authority will cause a notice of this Agreement or any amendment hereto to be prepared and filed with the office of the Secretary of State of California in a timely fashion in the manner set forth in Section 6503.3 of the Act. c. A county that is a member of RCRC may petition to become a member of the Authority by submitting to the Board a resolution or evidence of other formal action taken by its governing body adopting this Agreement. The Board shall review the petition for membership and shall vote to approve or disapprove the petition. If the petition is approved by a majority of the Board, such county shall immediately become a Member of the Authority. d. An Associate Member may be added to the Authority upon the affirmative approval of its respective governing board and pursuant to action by the Authority Board upon such terms and conditions, and with such rights, privileges and responsibilities, as may be established from time to time by the Board. Such terms and conditions, and rights, privileges and responsibilities may vary among the Associate Members. Associate Members shall be entitled to participate in one or more programs of the Authority as determined by the Board, but shall not be voting members of the Board. The Executive Director of the Authority shall enforce the terms and conditions for prospective Associate Members to the Authority as provided by resolution of the Board and as amended from time to time by the Board. Changes in the terms and conditions for Associate Membership by the Board will not constitute an amendment of this Agreement. 5. Term and Termination of Powers This Agreement shall become effective from the date hereof until the earlier of the time when all Bonds and any interest thereon shall have been paid in full, or provision for such payment shall have been made, or when the Authority shall no longer own or hold any interest in a public capital improvement or program. The Authority shall continue to exercise the powers herein conferred upon it until termination of this Agreement, except that if any Bonds are issued and delivered, in no event shall the exercise of the powers herein granted be terminated until all Bonds so issued and delivered and the interest thereon shall have been paid or provision for such payment shall have been made and any other debt incurred with respect to any other financing program established or administered by the Authority has been repaid in full and is no longer outstanding. 6. Powers; Restriction upon Exercise ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 93 a. To effectuate its purpose, the Authority shall have the power to exercise any and all powers of the Members or of a joint powers authority under the Act and other applicable provisions of law, subject, however, to the conditions and restrictions herein contained. Each Member or Associate Member may also separately exercise any and all such powers. The powers of the Authority are limited to those of a general law county. b. The Authority may adopt, from time to time, such resolutions, guidelines, rules and regulations for the conduct of its meetings and the activities of the Authority as it deems necessary or desirable to accomplish its purpose. c. The Authority shall have the power to finance the construction, acquisition, improvement and rehabilitation of real property, including the power to purchase, with the amounts received or to be received by it pursuant to a bond purchase agreement, bonds issued by any of its Members or Associate Members and other local agencies at public or negotiated sale, for the purpose set forth herein and in accordance with the Act. All or any part of such bonds so purchased may be held by the Authority or resold to public or private purchasers at public or negotiated sale. The Authority shall set any other terms and conditions of any purchase or sale contemplated herein as it deems necessary or convenient and in furtherance of the Act. The Authority may issue or cause to be issued Bonds or other indebtedness, and pledge any of its property or revenues as security to the extent permitted by resolution of the Board under any applicable provision of law. The Authority may issue Bonds in accordance with the Act in order to raise funds necessary to effectuate its purpose hereunder and may enter into agreements to secure such Bonds. The Authority may issue other forms of indebtedness authorized by the Act, and to secure such debt, to further such purpose. The Authority may utilize other forms of capital, including, but not limited to, the Authority’s internal resources, capital markets and other forms of private capital investment authorized by the Act.. d. The Authority is hereby authorized to do all acts necessary for the exercise of its powers, including, but not limited to: (1) executing contracts, (2) employing agents, consultants and employees, (3) acquiring, constructing or providing for maintenance and operation of any building, work or improvement, (4) acquiring, holding or disposing of real or personal property wherever located, including property subject to mortgage, (5) incurring debts, liabilities or obligations, (6) receiving gifts, contributions and donations of property, funds, services and any other forms of assistance from persons, firms, corporations or governmental entities, (7) suing and being sued in its own name, and litigating or settling any suits or claims, (8) doing any and all things necessary or convenient to the exercise of its specific powers and to accomplishing its purpose (9) establishing and/or administering districts to finance and refinance the acquisition, installation and improvement of energy efficiency, water ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 94 conservation and renewable energy improvements to or on real property and in buildings. The Authority may enter into one or more agreements, including without limitation, participation agreements and implementation agreements to implement such programs. e. Subject to the applicable provisions of any indenture or resolution providing for the investment of monies held thereunder, the Authority shall have the power to invest any of its funds as the Board deems advisable, in the same manner and upon the same conditions as local agencies pursuant to Section 53601 of the Government Code of the State of California. f. All property, equipment, supplies, funds and records of the Authority shall be owned by the Authority, except as may be provided otherwise herein or by resolution of the Board. g. Pursuant to the provisions of Section 6508.1 of the Act, the debts, liabilities and obligations of the Authority shall not be debts, liabilities and obligations of the Members or Associate Members. Any Bonds, together with any interest and premium thereon, shall not constitute debts, liabilities or obligations of any Member. The Members or Associate Members hereby agree that any such Bonds issued by the Authority shall not constitute general obligations of the Authority but shall be payable solely from the moneys pledged to the repayment of principal or interest on such Bonds under the terms of the resolution, indenture, trust, agreement or other instrument pursuant to which such Bonds are issued. Neither the Members or Associate Members nor the Authority shall be obligated to pay the principal of or premium, if any, or interest on the Bonds, or other costs incidental thereto, except from the revenues and funds pledged therefor, and neither the faith and credit nor the taxing power of the Members or Associate Members or the Authority shall be pledged to the payment of the principal of or premium, if any, or interest on the Bonds, nor shall the Members or Associate Members of the Authority be obligated in any manner to make any appropriation for such payment. No covenant or agreement contained in any Bond shall be deemed to be a covenant or agreement of any Delegate, or any officer, agent or employee of the Authority in an individual capacity, and neither the Board nor any officer thereof executing the Bonds or any document related thereto shall be liable personally on any Bond or be subject to any personal liability or accountability by reason of the issuance of any Bonds. 7. Governing Board a. The Board shall consist of the number of Delegates equal to one representative from each Member. b. The governing body of each Member shall appoint one of its Supervisors to serve as a Delegate on the Board. A Member’s appointment of its Delegate shall be delivered in writing (which may be by electronic mail) to the Authority and shall be effective until he or she is replaced by such governing body or no longer a Supervisor; any vacancy shall be filled by the governing body of the Member in the same manner provided in this paragraph b.. c. The governing body of each Member of the Board shall appoint a Supervisor as an alternate to serve on the Board in the absence of the Delegate; the alternate may exercise all the ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 95 rights and privileges of the Delegate, including the right to be counted in constituting a quorum, to participate in the proceedings of the Board, and to vote upon any and all matters. No alternate may have more than one vote at any meeting of the Board, and any Member’s designation of an alternate shall be delivered in writing (which may be by electronic mail) to the Authority and shall be effective until such alternate is replaced by his or her governing body or is no longer a Supervisor, unless otherwise specified in such appointment. Any vacancy shall be filled by the governing body of the Member in the same manner provided in this paragraph c.. d. Any person who is not a member of the governing body of a Member and who attends a meeting on behalf of such Member may not vote or be counted toward a quorum but may, at the discretion of the Chair, participate in open meetings he or she attends. e. Each Associate Member may designate a non-voting representative to the Board who may not be counted toward a quorum but who may attend open meetings, propose agenda items and otherwise participate in Board Meetings. f. Delegates shall not receive compensation for serving as Delegates, but may claim and receive reimbursement for expenses actually incurred in connection with such service pursuant to rules approved by the Board and subject to the availability of funds. g. The Board shall have the power, by resolution, to the extent permitted by the Act or any other applicable law, to exercise any powers of the Authority and to delegate any of its functions to the Executive Committee or one or more Delegates, officers or agents of the Authority, and to cause any authorized Delegate, officer or agent to take any actions and execute any documents for and in the name and on behalf of the Board or the Authority. h. The Board may establish such committees as it deems necessary for any lawful purpose; such committees are advisory only and may not act or purport to act on behalf of the Board or the Authority. i. The Board shall develop, or cause to be developed, and review, modify as necessary, and adopt each Program. 8. Meetings of the Board a. The Board shall meet at least once annually, but may meet more frequently upon call of any officer or as provided by resolution of the Board. b. Meetings of the Board shall be called, noticed, held and conducted pursuant to the provisions of the Ralph M. Brown Act, Chapter 9 (commencing with Section 54950) of Part I of Division 2 of Title 5 of the Government Code of the State of California. c. The Secretary of the Authority shall cause minutes of all meetings of the Board to be taken and distributed to each Member as soon as possible after each meeting. d. The lesser of twelve (12) Delegates or a majority of the number of current Delegates shall constitute a quorum for transacting business at any meeting of the Board, except ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 96 that less than a quorum may act to adjourn a meeting. Each Delegate shall have one vote. e. Meetings may be held at any location designated in notice properly given for a meeting and may be conducted by telephonic or similar means in any manner otherwise allowed by law. 9. Officers; Duties; Official Bonds a. The Board shall elect a chair and vice chair from among the Delegates at the Board’s annual meeting who shall serve a term of one (1) year or until their respective successor is elected. The chair shall conduct the meetings of the Board and perform such other duties as may be specified by resolution of the Board. The vice chair shall perform such duties in the absence or in the event of the unavailability of the chair. b. The Board shall contract annually with RCRC to administer the Agreement and to provide administrative services to the Authority, and the President and Chief Executive Officer of RCRC shall serve ex officio as Executive Director, Secretary, Treasurer, and Auditor of the Authority. As chief executive of the Authority, the Executive Director is authorized to execute contracts and other obligations of the Authority, unless prior Board approval is required by a third party, by law or by Board specification, and to perform other duties specified by the Board. The Executive Director may appoint such other officers as may be required for the orderly conduct of the Authority’s business and affairs who shall serve at the pleasure of the Executive Director. Subject to the applicable provisions of any indenture or resolution providing for a trustee or other fiscal agent, the Executive Director, as Treasurer, is designated as the custodian of the Authority’s funds, from whatever source, and, as such, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Act. The Executive Director, as Auditor, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Act. c. The Legislative Advocate for the Authority shall be the Rural County Representatives of California. d. The Treasurer and Auditor are public officers who have charge of, handle, or have access to all property of the Authority, and a bond for such officer in the amount of at least one hundred thousand dollars ($100,000.00) shall be obtained at the expense of the Authority and filed with the Executive Director. Such bond may secure the faithful performance of such officer’s duties with respect to another public office if such bond in at least the same amount specifically mentions the office of the Authority as required herein. The Treasurer and Auditor shall cause periodic independent audits to be made of the Authority’s books by a certified public accountant, or public accountant, in compliance with Section 6505 of the Act. e. The business of the Authority shall be conducted under the supervision of the Executive Director by RCRC personnel. 10. Executive Committee of the Authority a. Composition ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 97 The Authority shall appoint nine (9) members of its Board to serve on an Executive Committee. b. Powers and Limitations The Executive Committee shall act in an advisory capacity and make recommendations to the Authority Board. Duties will include, but not be limited to, review of the quarterly and annual budgets, service as the Audit Committee for the Authority, periodically review this Agreement; and complete any other tasks as may be assigned by the Board. The Executive Committee shall be subject to all limitations imposed by this Agreement, other applicable law, and resolutions of the Board. c. Quorum A majority of the Executive Committee shall constitute a quorum for transacting business of the Executive Committee. 11. Disposition of Assets Upon termination of this Agreement, all remaining assets and liabilities of the Authority shall be distributed to the respective Members in such manner as shall be determined by the Board and in accordance with the law. 12. Agreement Not Exclusive; Operation in Jurisdiction of Member This Agreement shall not be exclusive, and each Member expressly reserves its rights to carry out other public capital improvements and programs as provided for by law and to issue other obligations for those purposes. This Agreement shall not be deemed to amend or alter the terms of other agreements among the Members or Associate Members. 13. Conflict of Interest Code The Authority shall by resolution adopt a Conflict of Interest Code as required by law. 14. Contributions and Advances Contributions or advances of public funds and of personnel, equipment or property may be made to the Authority by any Member, Associate Member or any other public agency to further the purpose of this Agreement. Payment of public funds may be made to defray the cost of any contribution. Any advance may be made subject to repayment, and in that case shall be repaid in the manner agreed upon by the advancing Member, Associate Member or other public agency and the Authority at the time of making the advance. 15. Fiscal Year; Accounts; Reports; Annual Budget; Administrative Expenses a. The fiscal year of the Authority shall be the period from January 1 of each year to and including the following December 31, except for any partial fiscal year resulting from a change ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 98 in accounting based on a different fiscal year previously. b. Prior to the beginning of each fiscal year, the Board shall adopt a budget for the succeeding fiscal year. c. The Authority shall establish and maintain such funds and accounts as may be required by generally accepted accounting principles. The books and records of the Authority are public records and shall be open to inspection at all reasonable times by each Member and its representatives. d. The Auditor shall either make, or contract with a certified public accountant or public accountant to make, an annual audit of the accounts and records of the Authority. The minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the Government Code of the State of California, and shall conform to generally accepted auditing standards. When an audit of accounts and records is made by a certified public accountant or public accountant, a report thereof shall be filed as a public record with each Member (and also with the auditor of Sacramento County as the county in which the Authority’s office is located) within 12 months after the end of the fiscal year. e. In any year in which the annual budget of the Authority does not exceed five thousand dollars ($5,000.00), the Board may, upon unanimous approval of the Board, replace the annual audit with an ensuing one-year period, but in no event for a period longer than two fiscal years. 16. Duties of Members or Associate Members; Breach If any Member or Associate Member shall default in performing any covenant contained herein, such default shall not excuse that Member or Associate Member from fulfilling its other obligations hereunder, and such defaulting Member or Associate Member shall remain liable for the performance of all covenants hereof. Each Member or Associate Member hereby declares that this Agreement is entered into for the benefit of the Authority created hereby, and each Member or Associate Member hereby grants to the Authority the right to enforce, by whatever lawful means the Authority deems appropriate, all of the obligations of each of the parties hereunder. Each and all of the remedies given to the Authority hereunder or by any la w now or hereafter enacted are cumulative, and the exercise of one right or remedy shall not impair the right of the Authority to any or all other remedies. 17. Indemnification To the full extent permitted by law, the Board may authorize indemnification by the Authority of any person who is or was a Board Delegate, alternate, officer, consultant, employee or other agent of the Authority, and who was or is a party or is threatened to be made a party to a proceeding by reason of the fact that such person is or was such a Delegate, alternate, officer, consultant, employee or other agent of the Authority. Such indemnification may be made against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding, if such person acted in good faith and in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 99 proceeding, had no reasonable cause to believe his or her conduct was unlawful and, in the case of an action by or in the right of the Authority, acted with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances. 18. Immunities All of the privileges and immunities from liabilities, exemptions from law, ordinances and rules, all pension, relief, disability, workers' compensation and other benefits which apply to the activity of officers, agents or employees of any of the Members or Associate Members when performing their respective functions, shall apply to them to the same degree and extent while engaged as Delegates or otherwise as an officer, agent or other representative of the Authority or while engaged in the performance of any of their functions or duties under the provisions of this Agreement. 19. Amendment This Agreement may be amended by the adoption of the amendment by the governing bodies of a majority of the Members. The amendment shall become effective on the first day of the month following the last required member agency approval. An amendment may be initiated by the Board, upon approval by a majority of the Board. Any proposed amendment, including the text of the proposed change, shall be given by the Board to each Member’s Delegate for presentation and action by each Member's board within 60 days, which time may be extended by the Board. The list of Members, Attachment 1, may be updated to reflect new and/or withdrawn Members without requiring formal amendment of the Agreement by the Authority Board of Directors. 20. Withdrawal of Member or Associate Member If a Member withdraws as member of RCRC, its membership in the Authority shall automatically terminate. A Member or Associate Member may withdraw from this Agreement upon written notice to the Board; provided however, that no such withdrawal shall result in the dissolution of the Authority as long as any Bonds or other obligations of the Authority remain outstanding. Any such withdrawal shall become effective thirty (30) days after a resolution adopted by the Member's governing body which authorizes withdrawal is received by the Authority. Notwithstanding the foregoing, any termination of membership or withdrawal from the Authority shall not operate to relieve any terminated or withdrawing Member or Associate Member from Obligations incurred by such terminated or withdrawing Member or Associate Member prior to the time of its termination or withdrawal. 20. Miscellaneous a. Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. b. Construction. The section headings herein are for convenience only and are not to ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 100 be construed as modifying or governing the language in the section referred to. c. Approvals. Wherever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld. d. Jurisdiction; Venue. This Agreement is made in the State of California, under the Constitution and laws of such State and is to be so construed; any action to enforce or interpret its terms shall be brought in Sacramento County, California. e. Integration. This Agreement is the complete and exclusive statement of the agreement among the parties hereto, and it supersedes and merges all prior proposals, understandings, and other agreements, whether oral, written, or implied in conduct, between and among the parties relating to the subject matter of this Agreement. f. Successors; Assignment. This Agreement shall be binding upon and shall inure to the benefit of the successors of the parties hereto. Except to the extent expressly provided herein, no Member may assign any right or obligation hereunder without the consent of the Board. g. Severability. Should any part, term or provision of this Agreement be decided by the courts to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining parts, terms or provisions hereof shall not be affected thereby. The parties hereto have caused this Agreement to be executed and attested by their properly authorized officers. AS ADOPTED BY THE MEMBERS: Originally dated July 1, 1993 Amended and restated December 10, 1998 Amended and restated February 18, 1999 Amended and restated September 18, 2002 Amended and restated January 28, 2004 Amended and restated December 10, 2014 [SIGNATURES ON FOLLOWING PAGES] ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 101 SIGNATURE PAGE FOR NEW ASSOCIATE MEMBERS NAME OF COUNTY OR CITY: Dated: By: Name: Title: Attest: By [Clerk of the Board Supervisors or City Clerk] AFTER EXECUTION, PLEASE SEND TO: YGRENE ENERGY FUND ATTN: LEGAL DEPARTMENT 815 5TH STREET SANTA ROSA CA 95404 82671.00000\9603861.1 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 102 ATTACHMENT 1 CALIFORNIA HOME FINANCE AUTHORITY MEMBERS As of December 10, 2014 Alpine County Amador County Butte County Calaveras County Colusa County Del Norte County El Dorado County Glenn County Humboldt County Imperial County Inyo County Lake County Lassen County Madera County Mariposa County Mendocino County Merced County Modoc County Mono County Napa County Nevada County Placer County Plumas County San Benito County Shasta County Sierra County Siskiyou County Sutter County Tehama County Trinity County Tuolumne County Yolo County Yuba County ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 3 Page 103 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 4 Page 104 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 4 Page 105 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 4 Page 106 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 4 Page 107 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 4 Page 108 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 4 Page 109 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 4 Page 110 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 4 Page 111 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 4 Page 112 ITEM NUMBER: C-2 DATE: 04/26/16 ATTACHMENT: 4 Page 113 ITEM NUMBER: C-3 DATE: 04/26/16 Atascadero City Council Office of the City Clerk Consideration of Ballot Measure for Appointive City Clerk and City Treasurer RECOMMENDATION: Council direct the City Clerk to bring back to the Council in June 2016, the Resolution required for placing a ballot measure on the ballot for the General Municipal Election to be held on Tuesday, November 8, 2016 , asking voters “Shall the City Clerk and City Treasurer be appointive?” DISCUSSION: Background: The City Clerk and City Treasurer positions have been elected positions since the City was incorporated in 1979 as per State Code §36502. Initially, Atascadero was unaware of this fact, and appointed residents to these two positions. Once the error was realized in 1980, the first Atascadero City Council decided to place a ballot measure on the November 1980 ballot asking the voters if they want these positions to be appointed, as required by State Code §36508. The ballot measure failed, the people originally appointed to the positions continued to serve until the end of their terms, and the City placed the positions on the General Election Ballot of April 1982. These positions have remained elected from then on. The City Clerk and the City Treasurer each currently re ceive a $200 monthly stipend (set to increase to $400 in January 2017) and full health benefits. Each position, if they take advantage of the health benefits, can result in a cost of up to approximately $11,300 per position in 2016, and $14,800 per position in 2017 and forward. City Clerk The responsibilities of the elected City Clerk are enumerated in Atascadero’s Municipal Code, Sections 2-6.01 - 2-6.04 (Attachment 1). To summarize, the elected City Clerk’s duties include, but are not limited to:  Responsible for recording and maintaining a record of Council proceedings  Keep all ordinances and resolutions of the Council  Assure that records of the Council meetings and Council correspondence are kept in such a manner that the information contained therein will be readily accessible and open to the public Page 114 ITEM NUMBER: C-3 DATE: 04/26/16  Be the custodian of the seal of the City  Administer oaths  Take affidavits and depositions  Certify copies of official records  Conduct elections  Responsible for publication of official notices of the City  Receive all claims filed against the City  Assist the City Manager in the preparation of the Council agenda  Assure compliance with directives, administrative procedures or policies City Treasurer The City Treasurer’s responsibilities are enumerated in Atascadero’s Municipal Code, Sections 2-7.01 – 2-7.05 (Attachment 2). The Treasurer’s activities are coordinated with the Administrative Services Director to assure availability of funds in response to demands for payment against City financial resources. To summarize, the elected City Treasurer’s duties include, but are not limited to:  Receive and safely keep all public fund s coming into his or her hands as treasurer, and to comply with all laws governing the deposit and securing of public funds and the handling of trust funds in his or her possession  Investment of the City’s uncommitted funds consistent with Council policy  Member of the Finance Committee, which makes recommendations to the Council regarding financial issues Discussion: The City Clerk in Atascadero has also been a full-time employee in the City Manager’s office for 25 years. Before 1989, this was not the case, except for the first few years when the City Manager held the title. Therefore, for the last 25 years, our community has had what has felt like a “full-time” City Clerk when in actuality, the City Manager’s office staff conducts many of the City Cle rk tasks. Atascadero’s current City Clerk, Marcia Torgerson, retired from her full-time position as Deputy City Manager after 18 years of service in December 2015, and continues to serve as the elected City Clerk. Her term expires in December 2018. Staff believes that the City Treasurer in Atascadero has never been a City employee. The current City Treasurer, Gere Sibbach, also has a term that will expire in December 2018. Analysis: Under State law, the only qualifications needed to serve in these e lected positions are to be at least 18 years of age, a resident of Atascadero, and a registered voter of Atascadero. The City is prohibited from establishing any other requirements. The elected City Clerk’s role has expanded and evolved over time and is more involved and complex than the basic duties set forth in the Government Code. The position has become very technical and requires a high level of expertise, training and certifica tions. Over the last 20 years, the State has also delegated many of their duties, in particular the filing obligations for the State’s Fair Political Practices Commission, to the City Clerks of California. Similarly, the laws, regulations and management systems required Page 115 ITEM NUMBER: C-3 DATE: 04/26/16 to successfully carry out the responsibilities of the City Treasurer have also evolved over time. These positions require individuals to be current and well versed with highly technical professional standards, laws, regulations, and management systems. While the current City Clerk and City Treasurer professionally perform their responsibilities, there is no guarantee that any future holder of these positions would have the necessary qualifications and experience, since the only requiremen ts for the positions are to be a registered voter and resident of the City of Atascadero. When these positions become vacant at some point in the future, it will likely be difficult to find qualified individuals available to run for these positions in a community the size of Atascadero. The trend among cities across California is towards establishing professional standards for the positions of City Clerk and City Treasurer and hiring based on experience and credentials rather than through a general election process. In 2010, the San Luis Obispo County Grand Jury interviewed all City Clerks and Treasurers, researched city policies and procedures, and released a report titled, “Electing City Treasurers and Clerk: Wise or Otherwise?” In this report the Gr and Jury concluded:  Atascadero could benefit from having appointed City Treasurers.  There is continued risk of electing treasurers who can win office with a political agenda and no qualifications.  Health benefits alone may be sufficient to attract unqualif ied persons to run for these positions. Many cities have changed to appointed City Clerks and City Treasurers because they have experienced a reluctance of any individuals even willing to run for the positions. In San Luis Obispo County, Atascadero and P aso Robles are the only two cities that continue to have an elected City Clerk and Treasurer. The trend of cities throughout the State has been to convert to the use of appointive rather than elected City Clerks and City Treasurers. Staff researched this issue and found that as of 2015, out of the 482 cities in California, 350 have an appointed City Clerk (73%) and 317 have an appointed City Treasurer (66%). Atascadero’s current City Clerk and City Treasurer are recommending to the City Council to consider placing a ballot measure on the ballot for the General Municipal Election to be held on Tuesday, November 8, 2016, asking voters “Shall the City Clerk and/or City Treasurer be appointive?” In the future, making these positions appointive will:  Help ensure the City is able to appoint individuals to the positions of City Clerk and City Treasurer that possess the necessary qualifications and expertise.  Eliminate the potential for individuals to be elected to these positions that require duties that they are unqualified to perform, which could cause serious problems for the City.  Remove these positions from political pressures in performing their responsibilities. It is best to place this type of ballot measure on a ballot that does not include these positions for election. If the City Council places the recommended ballot measures on Page 116 ITEM NUMBER: C-3 DATE: 04/26/16 the ballot this year, and they are successful, the change would be effective at the end of the existing elected terms of the City Clerk and the City Treasurer, which is Dec ember 2018. If either of the current citizens holding these positions were to resign before December 2018, the elected position would terminate and a new person could be appointed. State Code authorizes the City Council to submit to the voters the questi on of whether or not to make these positions appointive: Government Code §36508: At any municipal election, or a special election held for that purpose, the city council may submit to the electors the question whether the elective officers, or any of them except council members, shall be appointed by the city council; provided, however, that the city council shall not submit such question to the electors more often than once in an 11-month period. (Amended by Stats. 2010, Ch. 699, Sec. 11. Effective January 1, 2011.) Government Code §36509: The question shall be printed on the ballots used at the election substantially in one of the following forms: (a) “Shall the offices of city clerk and city treasurer be appointive?”; or (b) “Shall the office of city clerk be appointive?”; or (c) “Shall the office of city treasurer be appointive?” The words “yes” and “no” shall be so printed on the ballots that the voters may express their choice. (Amended by Stats. 1957, Ch. 765.) If a majority of voters approve making the positions appointive, Government Code §36510 provides that the City Council can, by ordinance, delegate its appointment authority to the City Manager: Government Code §36510: If a majority of the votes cast on the proposition is for it, the city council shall appoint such officers at the expiration of the terms of the officers then in office, and on a vacancy in any such office. Such officers shall hold office during the pleasure of the city council and, notwithstanding Section 36502 to the contrary, are not required to be residents or electors in the city. The city council may by ordinance vest in the city manager its authority to appoint such officers. (Amended by Stats. 1963, Ch. 509.) Delegating appointment authority to the City Manager is recommended for the following reasons: 1. Selection of the next City Clerk and City Treasurer would be handled with the same selection process already used for other positions in the City to ensure a qualified candidate is appointed. 2. Since the City Clerk is responsible for coordinating and conducting elections and processing possible recalls, potential conflict situations that can occur when the City Clerk is appointed by the City Council would be avoided. Page 117 ITEM NUMBER: C-3 DATE: 04/26/16 3. Supervision and performance evaluation would be provided most effectively since most day to day direction and oversight is provided by the City Manager. The cities in San Luis Obispo County address the appointment issue as follows: CITY CLERK/TREASURER ELECTED / APPOINTED BY Arroyo Grande Both appointed by City Manager Atascadero Both elected Grover Beach Both appointed by City Manager Morro Bay Both appointed by City Manager Paso Robles Both elected Pismo Beach Both appointed by City Manager San Luis Obispo Both appointed by City Manager Of particular note, the City of San Luis Obispo originally had the City Clerk appointed by the City Council. Several years ago, they transferred appointment of the City Clerk from the City Council to the City Manager through a Charter Amendment measure on the ballot. FISCAL IMPACT: The addition of a ballot measure to the November 2016 ballot will be approximately $3,000. If the ballot measure is successful, savings from the elimination of the stipends and health benefit costs for these elected positions will be over $14,800 per position annually. ATTACHMENTS: 1. Atascadero Municipal Code, Sections 2-6.01 - 2-6.04 2. Atascadero Municipal Code, Sections 2-7.01 - 2-7.05 Page 118 ITEM NUMBER: C-3 DATE: 04/26/16 ATTACHMENT: 1 Atascadero Municipal Code Chapter 6 CITY CLERK 2-6.01 Creation and functions. (a) The office of the City Clerk is established as provided by Section 36501 of the Government Code of the State. The office shall be elected. The City Clerk shall have all of the powers, duties, and responsibilities granted to or imposed upon the office of the City Clerk by the provisions of Chapter 2 of Part 3 of Division 3 of Title 4 of the Government Code of the State (Sections 40801 and 40804), other general laws of the State, the provisions of this Code, and the ordinances and resolutions of the Council; provided, however, pursuant to the provisions of Sections 40805.5 and 37209 of the Government Code of the State, the financial and accounting duties imposed upon the City Clerk by Sections 40802 through 40805 and 37201 through 37208 of the Government Code of the State shall be performed by the Finance Director; and, further provided, that the ex officio assessor duties provided by Government Code Section 40810 shall be performed by County officers. (b) The principal functions of the City Clerk shall be to: (1) Be responsible for recording and maintaining a record of Council proceedings; (2) Keep all ordinances and resolutions of the Council as required by Sections 40806 and 40807 of the Government Code; (3) Assure that records of Council meetings and Council correspondence are kept in such a manner that the information contained therein will be readily accessible and open to the public until such time as any of the records may be destroyed, or reproduced and the original thereof destroyed, in accordance with State laws; (4) Be the custodian of the seal of the City pursuant to Government Code Section 40811; (5) Administer oaths or affirmations, take affidavits and depositions pertaining to the affairs and business of the City, and certify copies of the official records pursuant to Government Code Section 40814; (6) Conduct elections as required by law; (7) Be responsible for the publication of official notices of the City as required by Government Code Section 36933; (8) Receive all claims filed against the City and its officers, agents or employees pursuant to the provisions of the Government Code of the State, Section 915 et seq.; (9) Receive documents addressed to the City Clerk or City Council and immediately forward a copy of each to the City Manager for presentation to the City Council in due course. The original of each document shall remain with the City Clerk; (10) Assure that all documents received by the City Clerk are provided to the City Manager in sufficient time for that office to prepare and distribute City Council agenda; (11) Assist the City Manager, as requested, in the preparation of the City Council agenda or such other agenda as may from time to time be required; (12) Assure compliance with directives, administrative procedures or policies as may be determined by the City Manager which are not otherwise provided for by the State Government Code; Page 119 ITEM NUMBER: C-3 DATE: 04/26/16 ATTACHMENT: 1 (13) Advise, through the City Manager, interested parties of action taken by the City Council; provided, however, that it shall be the responsibility of the City Manager to direct and control the actions of reports requested of City personnel; (14) Perform such other duties consistent with this Code as may be required of the office by the Council. (Ord. 53 § 1, 1982; Ord. 48 § 2-4.101, 1982) 2-6.02 Administration of office: Appointment of deputies. The City Clerk shall administer the office of the City Clerk and shall be responsible for the successful performance of its function. The City Clerk may appoint deputies for whose acts he or she and his or her bondspeople shall be responsible, but in doing so, shall not incur any indebtedness or liability on behalf of the City except as authorized by the City Council. Such Deputy City Clerks, appointed ex officio, shall have the power to exercise any duty imposed upon the City Clerk. (Ord. 48 § 2-4.102, 1982) 2-6.03 Bonding. The City Clerk shall be required to execute the bonds necessary as required by the Council for the performance of the duties of the office. (Ord. 48 § 2-4.103, 1982) 2-6.04 Compensation. The City Clerk shall receive a salary of two hundred dollars ($200.00) a month through December 31, 2016. The City Clerk shall receive a salary of four hundred dollars ($400.00) per calendar month commencing on January 1, 2017 and thereafter. (Ord. 591 § 4, 2015; Ord. 48 § 2-4.104, 1982) Page 120 ITEM NUMBER: C-3 DATE: 04/26/16 ATTACHMENT: 2 Atascadero Municipal Code Chapter 7 CITY TREASURER 2-7.01 Creation and functions. (a) The office of the City Treasurer is confirmed as provided in Sections 36501 and 36502 of the Government Code of the State. The office shall be elected. The City Treasurer shall perform such duties as are prescribed by Sections 41001 through 41007 of the Government Code of the State. The City Treasurer shall perform such other duties consistent with this Code as may be required of him or her by the Council. (b) The principal functions of the City Treasurer shall be to receive and safely keep all public funds coming into his or her hands as treasurer, and to comply with all laws governing the deposit and securing of public funds and the handling of trust funds in his or her possession. (Ord. 564 § 1, 2012; Ord. 49 § 2- 5.201, 1982) 2-7.02 Deputies. The City Treasurer may appoint deputies for whose acts he or she and his or her bondspeople are responsible, but in doing so, shall not incur any indebtedness or liability on behalf of the City except as authorized by the City Council. (Ord. 49 § 2-5.202, 1982) 2-7.03 Compensation. The City Treasurer shall receive a salary of two hundred dollars ($200.00) a month through December 31, 2016. The City Treasurer shall receive a salary of four hundred dollars ($400.00) per calendar month commencing on January 1, 2017 and thereafter. (Ord. 591 § 5, 2015; Ord. 49 § 2-5.203, 1982) 2-7.04 Coordination with Director of Finance. The City Treasurer shall coordinate his or her activities with the Director of Finance to assure availability of funds in response to demands for payment against City financial resources. The City Treasurer shall not withhold making available funds to the Finance Director for payment of materials, equipment, goods or services duly authorized by the Council through the adopted budget or by Council approval by ordinance, resolution or motion when requests for such funds are duly authorized and presented by the Director of Finance. (Ord. 49 § 2-5.204, 1982) 2-7.05 Investment policy. In addition to the requirements, duties and obligations imposed upon the City Treasurer by the State Government Code concerning the investment of City moneys, the City Treasurer shall attempt to secure the maximum rate of return on invested uncommitted City funds consistent with assuring availability of funds to meet the City’s financial obligations and consistent with statutory investment limitations. In order to assure compliance with this requirement, the City Treasurer shall closely coordinate the investment of funds with the Director of Finance to assure the ability of the City to meet its obligations. (Ord. 49 § 2-5.205, 1982) Page 121