HomeMy WebLinkAboutMINUTES - 04132010 - C.93RECOMMENDATION(S):
REFER the County’s potential participation in the CaliforniaFIRST program to the Finance
Committee, as recommended by the Conservation and Development Director.
FISCAL IMPACT:
Participation in the CaliforniaFIRST program involves an estimated start-up cost of
$20,000. The Department is evaluating options for funding this cost and will report to the
Finance Committee.
BACKGROUND:
CaliforniaFIRST is a program of the California Statewide Communities Development
Authority (“California Communities”). California Communities is a joint powers authority
sponsored by the League of California Cities and the California State Association of
Counties. The member agencies of California Communities include all 58 counties and
more than 400 other local agencies throughout California.
The CaliforniaFIRST Program is being instituted by California Communities to allow
owners of property
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 04/13/2010 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Jason Crapo,
335-1108
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: April 13, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: EMY L. SHARP, Deputy
cc:
C. 93
To:Board of Supervisors
From:Jason Crapo, County Building Official
Date:April 13, 2010
Contra
Costa
County
Subject:REFER the County’s potential participation in the CaliforniaFIRST program to the Finance Committee
BACKGROUND: (CONT'D)
in participating cities and counties to finance renewable energy, energy efficiency and water
efficiency improvements on their property. If a property owner chooses to participate, the
improvements will be financed by the issuance of bonds by California Communities.
California Communities will levy “contractual assessments” on the owner’s property to
repay the portion of the bonds issued to finance the improvements on that property.
California Communities has selected Renewable Funding LLC and RBC Capital Markets to
provide administration and financing for the program.
The “contractual assessment” proceedings will be undertaken by California Communities
pursuant to Chapter 29 of Division 7 of the Streets & Highways Code, which was amended
in 2008 by Assembly Bill 811 and further amended in 2009 by Assembly Bill 474, to allow
the financing of renewable energy, energy efficiency and water efficiency improvements on
private property. Pursuant to Chapter 29, assessments may be levied to finance renewable
energy, energy efficiency and water efficiency improvements only with the free and willing
consent of the owner of each lot or parcel on which an assessment is levied at the time the
assessment is levied, and property owners evidence their consent to the assessments by
executing a contract with California Communities.
The County has no financial obligation to repay the bonds issued by California
Communities or to repay the assessments levied on the participating properties. California
Communities handles all assessment administration, bond issuance and bond administration
functions, minimizing administrative costs to the County.
The benefits to the program for property owner include:
• Only property owners who choose to participate in the program will have assessments
imposed on their property.
• In today’s economic environment, there may not be attractive private enterprise
alternatives (such as bank loans) for property owners to finance renewable energy/energy
efficiency/water efficiency improvements.
• Even if there were private enterprise alternatives, most private loans are due on sale of the
benefited property, which makes it difficult for property owners to match the life of the
repayment obligation with the useful life of the financed improvements. Under the
CaliforniaFIRST Program, the assessment obligation will transfer with the property upon
sale.
• The property owner can choose to pay off the assessments at any time, subject to
applicable prepayment penalties.
• By virtue of regional aggregation provided by the CaliforniaFIRST Program, small
projects, both residential and commercial, can have access to the municipal bond market,
which may produce a lower borrowing cost.
CONSEQUENCE OF NEGATIVE ACTION:
CHILDREN'S IMPACT STATEMENT: