HomeMy WebLinkAbout024-2015RESOLUTION NO. 24-2015
APPROVING ASSOCIATE MEMBERSHIP BY THE TOWN IN THE CALIFORNIA
ENTERPRISE DEVELOPMENT AUTHORITY; AUTHORIZING AND DIRECTING
THE EXECUTION OF AN ASSOCIATE MEMBERSHIP AGREEMENT RELATING
TO ASSOCIATE MEMBERSHIP OF THE TOWN IN THE AUTHORITY,
AUTHORIZING THE TOWN TO JOIN THE FIGTREE PACE PROGRAM;
AUTHORIZING THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY
TO CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY
CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE TOWN OF
DANVILLE; AND AUTHORIZING RELATED ACTIONS
WHEREAS, the Town of Danville, California (the "Town"), a municipal corporation, duly
organized and existing under the Constitution and the laws of the State of California; and
WHEREAS, the Town, upon authorization of the Town Council, may pursuant to Chapter
5 of Division 7 of Title 1 of the Government Code of the State of California, commencing
with Section 6500 (the "JPA Law") enter into a joint exercise of powers agreement with one
or more other public agencies pursuant to which such contracting parties may jointly
exercise any power common to them; and
WHEREAS, the Town and other public agencies wish to jointly participate in economic
development financing programs for the benefit of businesses and nonprofit entities within
their jurisdictions offered by membership in the California Enterprise Development
Authority (the "Authority") pursuant to an associate membership agreement and Joint
Exercise of Powers Agreement Relating to the California Enterprise Development
Authority (the "Agreement"); and
WHEREAS, under the JPA Law and the Agreement, the Authority is a public entity
separate and apart from the parties to the Agreement and the debts, liabilities and
obligations of the Authority will not be the debts, liabilities or obligations of the Town or
the other members of the Authority; and
WHEREAS, the form of Associate Membership Agreement (the "Associate Membership
Agreement") between the Town and the Authority is attached; and
WHEREAS, the Town is willing to become an Associate Member of the Authority subject to
the provisions of the Associate Membership Agreement; and
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 Town of Danville (the " Town"); 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 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 Town desires to allow the owners of property ("Participating Parcel")
within its jurisdiction ("Participating Property Owners") to participate in Figtree PACE, and
to allow CEDA to conduct assessment proceedings under Chapter 29 and to issue Bonds
under the 1915 Act to finance the Improvements; and
WHEREAS, CEDA will conduct assessment proceedings under Chapter 29 to establish an
assessment district (the "District") and issue Bonds under the 1915 Act to finance
Improvements; and
WHEREAS, there has been presented to this meeting a proposed form of Resolution of
Intention to be adopted by CEDA in connection with such assessment proceedings (the
"ROI"), a copy of which is attached hereto as Exhibit A; and
WHEREAS, said ROI sets forth the territory within which assessments may be levied for
Figtree PACE which territory shall be coterminous with the Town's official boundaries of
record at the time of adoption of the ROI (the "Boundaries"); and
WHEREAS, pursuant to Chapter 29, the Town authorizes CEDA to conduct assessment
proceedings, 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 Town in connection with operation of the Figtree PACE
program, Figtree Energy Financing, the program administrator, has agreed to defend and
indemnify the Town; and
WHEREAS, the Town will not be responsible for the conduct of any assessment
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proceedings, 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 Town Council of the Town of Danville hereby finds, determines
and declares as follows:
Section 1. The Town Council hereby specifically finds and declares that the actions
authorized hereby constitute public affairs of the Town. The Town Council further finds
that the statements, findings and determinations of the Town set forth in the preambles
above are true and correct.
Section 2. The Associate Membership Agreement is shown in Exhibit C. The Mayor
of the Town, the Town Manager, the City Clerk and other officials of the Town are each
hereby authorized and directed, for and on behalf of the Town, to execute and deliver the
Associate Membership Agreement in substantially said form, with such changes therein as
such officer may require or approve, such approval to be conclusively evidenced by the
execution and delivery thereof.
Section 3. The officers and officials of the Town are hereby authorized and directed,
jointly and severally, to do any and all things and to execute and deliver any and all
documents which they may deem necessary or advisable in order to consummate, carry
out, give effect to and comply with the terms and intent of this Resolution and the
Associate Membership Agreement. All such actions heretofore taken by such officers and
officials are hereby confirmed, ratified and approved.
Section 4. Good Standing. The Town is either a municipal corporation or other
public body and a member of CEDA in good standing.
Section 5. Public Benefits. On the date hereof, the Town 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 Town.
Section 6. Appointment of CEDA. The Town hereby appoints CERA as its
representative to (i) record the assessment against the Participating Parcels, (ii) administer
the District in accordance with the Improvement Act of 1915 (Chapter 29 Part 1 of Division
10 of the California Streets and Highways Code (commencing with Section 8500 et seq.)
(the "Law"), (iii) prepare program guidelines for the operations of the Program and (iv)
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proceed with any claims, proceedings or legal actions as shall be necessary to collect past
due assessments on the properties within the District in accordance with the Law and
Section 6509.6 of the California Government Code. The Town is not and will not be
deemed to be an agent of Figtree or CEDA as a result of this Resolution.
Section 7. Assessment Proceedings. In connection with Figtree PACE, the
Town hereby consents to the special assessment proceedings by CEDA pursuant to
Chapter 29 on any property within the Boundaries and the issuance of Bonds under the
1915 Act, provided that:
(1) Such proceedings are conducted pursuant to one or more Resolutions of
Intention in substantially the form of the ROI;
(2) The Participating Property Owners, who shall be the legal owners of such
property, voluntarily execute a contract pursuant to Chapter 29 and comply with
other applicable provisions of California law in order to accomplish the valid
levy of assessments; and
(3) The Town will not be responsible for the conduct of any assessment
proceedings, the levy of assessments, any required remedial action in the case of
delinquencies in such assessment payments, or the issuance, sale or
administration of the Bonds in connection with Figtree PACE.
Section 8. Program Report. The Danville Town 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.
Section 9. Foreclosure. The Danville Town Council hereby acknowledges that the
Law permits foreclosure in the event that there is a default in the payment of assessments
due on a property. The Town Council hereby designates CEDA as its representative to
proceed with collection and foreclosure of the liens on the defaulting properties within the
District, including accelerated foreclosure pursuant to the Program Report.
Section 10. Indemnification. The Danville Town Council acknowledges that Figtree
has provided the Town with an indemnification agreement, as shown in Exhibit B, for
negligence or malfeasance of any type as a result of the acts or omissions of Figtree, its
officers, employees, subcontractors and agents. The Town Council hereby authorizes the
appropriate officials and staff of the Town to execute and deliver the Indemnification
Agreement to Figtree.
Section 11. City Contact Designation. The appropriate officials and staff of the
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Town 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 Town Manager from time to time, are
hereby designated as the contact persons for CEDA in connection with Figtree PACE:
Assistant to the Town Manager, City Attorney, Development Services Director.
Section 12. CEQA. The Danville Town 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 13. 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 14. Costs. Services related to the formation and administration of the
assessment district will be provided by CEDA at no cost to the Town.
APPROVED by the Danville Town Council at a regular meeting on March 17, 2015 by the
following vote:
AYES: Doyle, Stepper, Arnerich, Morgan, Storer
NOES: None
ABSTAINED: None
ABSENT: None
APPROVED AS TO FORM:
ITY AT ORNEY
Al
MAYORq
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