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HomeMy WebLinkAboutCC RESO 2014-124RESOLUTION NO. 2014 — 124 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE INCORPORATED AREA OF THE CITY IN THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY'S FIGTREE PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY AND WATER EFFICIENCY IMPROVEMENTS, APPROVING THE REPORT SETTING FORTH THE PARAMETERS OF THE PROGRAM AND CERTAIN MATTERS IN CONNECTION THEREWITH, AND AUTHORIZING THE MAYOR TO EXECUTE THE INDEMNIFICATION AGREEMENT WHEREAS, the California Enterprise Development Authority ("CEDA") is a joint exercise of powers authority, comprised of cities and counties in the State of California, including the City of National City (the "City"); and WHEREAS, CEDA has adopted the Figtree Property Assessed Clean Energy (PACE) and Job Creation Program (the "Program" or "Figtree PACE"), to allow the financing of certain renewable energy, energy efficiency and water efficiency improvements (the "Improvements") through the levy of contractual assessments pursuant to Chapter 29 of Division 7 of the California Streets & Highways Code ("Chapter 29"), and the issuance of improvement bonds or other evidences of indebtedness (the "Bonds") under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 et seq.) (the "1915 Act") upon the security of the unpaid contractual assessments; and WHEREAS, Chapter 29 provides that assessments may be levied under its provisions only with the free and willing consent of the owner of each lot or parcel on which an assessment is levied at the time the assessment is levied; and WHEREAS, the San Diego County Board of Supervisors (the "Board of Supervisors"), a political subdivision of the State of California (the "County"), has adopted Figtree PACE pursuant to the 1915 Act; and WHEREAS, the parameters of Figtree PACE are set forth in the Program Report and such Report has been prepared pursuant to Section 5898.22 of the 1915 Act and approved by the CEDA Board of Directors; and WHEREAS, the City Council of the City of National City (the "City Council") has reviewed the Program Report; and WHEREAS, the 1915 Act authorizes CEDA to enter into contractual assessments with property owners located within incorporated cities in the County of San Diego upon the approval of the legislative body of the related city to participate in Figtree PACE; and WHEREAS, the City desires to participate with the County in Figtree PACE, and provide for participation in Figtree PACE by property owners located within City limits; and WHEREAS, pursuant to Chapter 29, the City authorizes CEDA to levy assessments, pursue remedies in the event of delinquencies, and issue bonds or other forms of indebtedness to finance the Improvements in connection with Figtree PACE; and WHEREAS, to protect the City in connection with operation of the Figtree PACE, Figtree Energy Financing, the program administrator, has agreed to defend and indemnify the City; and Resolution No. 2014 — 124 Page Two WHEREAS, the City will not be responsible for the levy of assessments, any required remedial action in the case of delinquencies, the issuance, sale or administration of the bonds or other indebtedness issued in connection with Figtree PACE. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: Section 1. Good Standing. The City is a municipal corporation and a member of CEDA in good standing. Section 2. Public Benefits. On the date hereof, the City Council hereby finds and determines that the Program and issuance of Bonds by CEDA in connection with Figtree PACE will provide significant public benefits, including without limitation, savings in effective interest rates, bond preparation, bond underwriting and bond issuance costs, and reductions in effective user charges levied by water and electricity providers within the boundaries of the City. Section 3. Resolution of Intention. The City Council ratifies the resolution adopted by the CEDA Board of Directors declaring the Board's intention to order the implementation of a contractual assessment program to finance Improvements pursuant to the 1915 Act. Section 4. Boundaries. The City Council hereby approves the inclusion in Figtree PACE all of the properties in the incorporated area within the City, as same may be amended through annexation from time to time, the acquisition, construction, and installation within City limits of the energy and water efficiency measures set forth in the Report upon the request and agreement of the affected property owner, and the assumption of jurisdiction thereof by CEDA for the aforesaid purposes. The adoption of this Resolution by this City Council constitutes the approval by the City to participate in Figtree PACE. This City Council further authorizes CEDA to set the terms of, and implement, Figtree PACE and take each and every action necessary or desirable for financing the Improvements, including the levying, collecting, and enforcement of the contractual assessments to finance the Improvements and the issuance of bonds, notes or other forms of indebtedness secured by such contractual assessments as authorized by Chapter 29. Section 5. Appointment of CEDA. The City hereby appoints CEDA as its representative to (i) record the assessment against the Participating Parcels, (ii) administer the Program in accordance with the 1915 Act, (iii) prepare program guidelines for the operations of the Program and (iv) proceed with any claims, proceedings or legal actions as shall be necessary to collect past due assessments on the properties in the Program in accordance with the 1915 Act and Section 6509.6 of the California Government Code. The City is not and will not be deemed to be an agent of Figtree or CEDA as a result of this Resolution. Section 6. Program Report. The City Council hereby acknowledges that pursuant to the requirements of Chapter 29, CEDA has prepared and will update from time to time the "Program Report" for Figtree PACE (the "Program Report") and associated documents, and CEDA will undertake assessment proceedings and the financing of Improvements as set forth in the Program Report. Resolution No. 2014 — 124 Page Three Section 7. Foreclosure. The City Council hereby acknowledges that the 1915 Act permits foreclosure in the event that there is a default in the payment of assessments due on a property. The City Council hereby designates CEDA as its representative to proceed with collection and foreclosure of the liens on the defaulting properties in the Program, including accelerated foreclosure pursuant to the Program Report. Section 8. Indemnification. The City Council acknowledges that Figtree has provided the City with an indemnification agreement for injury or damage arising out of or in connection with the Figtree PACE Program. The City Council hereby authorizes the the Mayor, or his designee, to execute and deliver the Indemnification Agreement to Figtree. Section 9. City Contact Designation. The Mayor and City staff are hereby authorized and directed to make applications for Figtree PACE available to all property owners who wish to finance Improvements. The following staff persons, together with any other staff designated by the City Manager from time to time, are hereby designated as the contact persons for CEDA in connection with Figtree PACE: Alfredo Ybarra, Director of Housing, Grants, and Assessment Management, (619) 336-4254, aybarra@nationalcityca.gov. Section 10. CEQA. The City Council hereby finds that adoption of this Resolution is not a "project" under the California Environmental Quality Act ("CEQA"), because the Resolution does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b )( 4)). Section 11. Effective Date. This Resolution shall take effect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to Figtree Energy Financing. Section 12. Costs. Services related to the formation and administration of the assessment district will be provided by CEDA at no cost to the City. PASSED and ADOPTED this 19th day of August4. ATTEST: Michy Clerk el R. Dalla C PPROVED AS TO FORM: y tua Silva Atto on Morrison, Mayor Passed and adopted by the Council of the City of National City, California, on August 19, 2014 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Rios. Nays: None. Absent: Councilmembers Cano, Sotelo-Solis. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California dik City Q1erk of the City o National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2014-124 of the City of National City, California, passed and adopted by the Council of said City on August 19, 2014. City Clerk of the City of National City, California By: Deputy