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HomeMy WebLinkAboutMINUTES - 06222010 - SD.3RECOMMENDATION(S): ADOPT a resolution authorizing Contra Costa County to participate in the CaliforniaFIRST Program and AUTHORIZE the County Auditor-Controller to make a program implementation fee payment of $20,000 to the California Statewide Development Authority. FISCAL IMPACT: The $20,000 program implementation fee payable to CaliforniaFirst, as authorized by the Resolution, would be paid from the budget of the Department of Conservation and Development utilizing grant funds restricted for energy efficiency programs. 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 APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/22/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS Contact: Jason Crapo, (925) 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: June 22, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: SD. 3 To:Board of Supervisors From:Jason Crapo, County Building Official Date:June 22, 2010 Contra Costa County Subject:Hearing Concerning County Participation in CaliforniaFIRST Program. BACKGROUND: (CONT'D) local agencies throughout California. The CaliforniaFIRST program allows owners of property 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. California Communities will administer most aspects of the program. The County will have a role in collecting the annual payments by property owners for the contactual assessments, similar to other property assessments paid on the property tax bill. The County’s cost of collecting these payments will be paid for as part of the property assessment. Implementation of CalforniaFIRST within a county requires approval by the county and at least one city within the county. A city must participate in the program for residents in that city to receive financing for their projects. Several cities in Contra Costa County have already adopted resolutions to participate in the program, including Richmond, Pittsburg and Walnut Creek. The Department of Conservation and Development will act as the primary point of contact with California Communities for purposes of implementing this program. Conservation and Development currently operates several programs that assist property owners to improve the energy efficiency of buildings. Our department would work with CSCDA to coordinate our existing programs with CaliforniaFirst and use it as a mechanism to assist property owners in financing their projects. CaliforniaFIRST is currently preparing to conduct its first bond issuance for a pilot group of jurisdictions that includes 14 counties (including several Bay Area counties) and over 100 cities. Upon approval of the proposal resolution and payment of $20,000 for program set up costs, the County will be eligible to participate in the second round of bond funding, anticipated for late 2010 or early 2011. 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. The proposed resolution authorizes California Communities to accept applications from owners of property within Contra Costa County for municipal financing of renewable energy, energy efficiency and water efficiency improvements through the CaliforniaFIRST Program. It also authorizes California Communities to conduct assessment proceedings and levy assessments against the property of participating property owners. I also authorizes miscellaneous related actions and makes certain findings and determinations required by law. California Communities will undertake a judicial validation proceeding as part of its initiation of the CaliforniaFIRST Program. The resolution also authorizes payment of a set up fee to cover legal, procedural, and technology costs associated with the CaliforniaFIRST Program. Any jurisdiction can withdraw from the CaliforniaFIRST Program at any time by passing a resolution rescinding the authorization. Attached to the resolution as Exhibit A is a “Form of Resolution of Intention to be Adopted by California Communities.” This is for informational purposes only and does not require any action by the Board of Supervisors. CONSEQUENCE OF NEGATIVE ACTION: CHILDREN'S IMPACT STATEMENT: CLERK'S ADDENDUM The following people spoke in favor of participation: Lynda Deschambault, Executive Director, Contra Costa County Climate Leaders (4CL); Sheila Hill, Sustainable Contra Costa; Phillip Ciaramitaro, Sustainable Martinez, Sustainable Contra Costa, and CCC Climate Leaders Program (4CL). CLOSED the hearing; ADOPTED Resolution No. 2010/331 authorizing Contra Costa County to participate in the CaliforniaFIRST Program; AUTHORIZED the County Auditor-Controller to make a program implementation fee payment of $20,000 to the California Statewide Development Authority; REQUESTED the Assessor provide clarification on any applicable increase in property valuation that may be triggered in relation to energy efficiency improvements; and REQUESTED that program documents clearly and prominently disclose any and all consumer fees or penalty provisions in program financing options. ATTACHMENTS Resolution No. 2010/331 Exhibit A