R11064Council Meeting: July 25, 2017
RESOLUTION NUMBE
Santa Monica, California
110 014 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AMENDING AND RESTATING RESOLUTION NUMBER 10941 (CCS) REGARDING
THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY
AND AUTHORIZING THE FOLLOWING: (1) JOINING THE CALIFORNIA
ENTERPRISE DEVELOPMENT AUTHORITY AS AN ASSOCIATE MEMBER; (II)
JOINING THE FIGTREE PACE PROGRAM; (III) ALLOWING THE CALIFORNIA
ENTERPRISE DEVELOPMENT AUTHORITY TO CONDUCT CONTRACTUAL
ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS
WITHIN THE TERRITORY OF THE CITY OF SANTA MONICA; AND (IV) EXECUTING
ANY RELATED DOCUMENTS.
WHEREAS, the City of Santa Monica ("City") is a California municipal corporation,
duly organized and existing under the Constitution and the laws of the State of California;
TIM
WHEREAS, Chapter 5 of Division 7 of Title 1 of the Government Code of the State
of California commencing with Section 6500 (the "JPA Law") authorizes the City to enter
into joint powers agreements with one or more other public agencies; and
WHEREAS, the California Enterprise Development Authority ("CEDA") offers
public agencies wishing to join CEDA the opportunity to participate in economic
development financing programs for the benefit of businesses and nonprofit entities within
their jurisdictions 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, CEDA is a public entity
separate and apart from the parties to the Agreement and the debts, liabilities and
obligations of CEDA will not be the debts, liabilities or obligations of the City or the other
members of the Authority; and
WHEREAS, the City is willing to become an Associate Member of CEDA subject to
the provisions of the Agreement; 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, seismic retrofits, electric vehicle
charging infrastructure, 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 City 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, CEDA has provided a proposed form of Resolution of Intention to the
City ("ROI"), and agrees to conduct assessment proceedings in accordance with the
proposed form of ROI; and
WHEREAS, the territory within which assessments may be levied for the Figtree
PACE programs shall include all of the territory within the City's official boundaries; and
WHEREAS, pursuant to Chapter 29, the City 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 City in connection with operation of the Figtree PACE
program, Figtree Energy Financing, the program administrator, has agreed to defend and
indemnify the City; and
WHEREAS, the City 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, administration or
repayment or guarantee of any bonds or other indebtedness issued in connection with
Figtree PACE or its successor organization.
3
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council specifically finds and declares that the actions
authorized hereby constitute public affairs of the City. The City Council further finds that
the statements, findings and determinations of the City set forth in the above Recitals are
true and correct.
SECTION 2. This Resolution amends, restates and supercedes Resolution No.
10941 (CCS) dated March 1, 2016 in its entirety.
SECTION 3. The City Manager is authorized to negotiate and to enter into an
Associate Membership Agreement in order for the City to become an associate member
of the California Enterprise Development Authority. The City Manager is further
authorized to execute any and all agreements, amendments or documents necessary for
the implementation of the Associate Membership Agreement or CEDA's Figtree PACE
program, including, but not limited to, an Indemnity Agreement with Figtree to indemnify
the City for negligence or malfeasance by Figtree.
SECTION 4. Good Standing. The City is a California municipal corporation and
in good standing.
SECTION 5. Public Benefits. The City Council hereby finds and determines that
properties in the territory of the City will benefit from the availability of the Figtree PACE
program.
112
SECTION 6. Authorization. The City authorizes CEDA to implement the Figtree
PACE in accordance with applicable law, rules and regulations, and to: (i) accept
applications from property owners within the City for participation in the Figtree PACE
program; (ii) record the assessment against the Participating Parcels; (iii) 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"); (iv) prepare program guidelines for the operations of the Program; and (v)
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
applicable law, including Section 6509.6 of the California Government Code, for the
enforcement and collection of liens. The City 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. The City further authorizes CEDA to
implement special assessment proceedings pursuant to Chapter 29 on any property of
Participating Parcels 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
.7
(3) The City 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. 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. Indemnification. Figtree has provided the City with an
indemnification agreement for negligence or malfeasance of any type as a result of the
acts or omissions of Figtree, its officers, employees, subcontractors and agents. The City
Council authorizes the City Manager to negotiate and to execute said indemnity
agreement.
Section 10. CEQA. The City Council further 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. Costs. Services related to the formation and administration of the
assessment district will be provided by CEDA at no cost to the City.
0
Section 12. Effective Date. The City Clerk shall certify the adoption of this
Resolution, and thenceforth and thereafter the same shall be in full force and effect. The
City Clerk is hereby authorized and directed to transmit a certified copy of this resolution
to Figtree.
APPROVED AS TO FORM:
JOSEPH LAWRENCE
Interim City Attorney
7
Adopted and approved this 25th day of July, 2017.
�` EF✓ to
Ted Winterer, Mayor
I, Denise Anderson -Warren, City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 11064 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 25th day of July, 2017, by the following vote:
AYES: Councilmembers McKeown, Himmelrich, O'Connor, O'Day, Vazquez
Mayor Pro Tem Davis, Mayor Winterer
NOES: None
ABSENT: None
ATTEST:
Denise Anderson -Warren, City Clerk