Title
RESOLUTION NO. 2015-204 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING ASSOCIATE MEMBERSHIP BY THE CITY OF CHULA VISTA IN THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY AND AUTHORIZING AND DIRECTING THE EXECUTION OF AN ASSOCIATE MEMBERSHIP AGREEMENT RELATING TO ASSOCIATE MEMBERSHIP OF THE CITY IN THE AUTHORITY; CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE INCORPORATED AREA OF THE CITY IN THE SAN DIEGO COUNTY PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY AND WATER EFFICIENCY IMPROVEMENTS, APPROVING THE REPORT SETTING FORTH THE PARAMETERS OF THE REFERENCED PROGRAM AND CERTAIN MATTERS IN CONNECTION THEREWITH, AND APPROVING AN INDEMNITY AGREEMENT WITH THE PROGRAM ADMINISTRATOR
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On June 6, 2015, per Resolution 2015-115, City Council approved Property Assessed Clean Energy (PACE) Program Guidelines to help guide expansion of PACE program offerings available to Chula Vista property-owners. Currently, Chula Vista property-owners can choose between three different PACE programs: the local Clean Energy Chula Vista program (administered by Ygrene Energy Fund), the statewide CaliforniaFIRST program, and the statewide California HERO Program. The City is adding the Figtree Program as another PACE program offering in order to provide property-owners with more choices, potentially create more competitive rates in the market, and maximize the number of completed energy and water efficiency retrofits in the community.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
On October 13, 2014, the Resource Conservation Commission recommended that the City Council expand Property Assessed Clean Energy (PACE) program offerings in Chula Vista to provide greater customer choice and to maximize energy and water efficiency retrofit opportunities.
DISCUSSION
As part of its Climate Action Plan implementation, the City has been pursuing the establishment of Property Assessed Clean Energy (PACE) programs, which allow property-owners to finance energy and water-saving improvements through a voluntary tax assessment on their property. The resulting utility savings are used to help offset the new assessment and the assessment obligations generally transfer with the property upon sale, because the new owner continues to benefit from the efficiency improvements. PACE programs were authorized under California Assembly Bill 811 and Senate Bill 555 and have successfully facilitated building energy and water upgrades in over 230 California communities, while creating local economic development benefits. Typically, third-party administrators, on behalf of host jurisdictions or joint powers authorities, manage the day-to-day program operations including contractor outreach, property-owner enrollment, and private financing coordination.
The City established its first PACE program in December 2013 and has since been approached by other providers who would like to offer their programs to City residents. One of those is the Figtree Program. Figtree is one of the leading private PACE financing companies operating in the United States today. Over 100 municipalities throughout California have already joined the Figtree program which is offered through its JPA partner the California Enterprise Development Authority (CEDA). Together, Figtree and CEDA offer the program as a complete turn-key PACE solution with no cost to the City. The Figtree Program complies with the City’s program and underwriting guidelines that ensure high levels of program accountability and consumer protection.
Participants in the PACE program will be assessed via their regular property tax bill. The County of San Diego has entered into an Agreement for Collection of Taxes and Special Assessments with CEDA (see Attachment 1 to this report). Funds will be collected by the County of San Diego and remitted directly to CEDA. The City of Chula Vista will have no role in the placement of PACE assessments on the tax roll or the remittance of funds collected to CEDA.
Adoption of the resolution will approve an amendment to the Joint Exercise of Powers Agreement (the “Amendment”) to add the City as an Associate Member to the Authority for the purpose of facilitating implementation of the Figtree Program in the City, and will also approve an indemnity agreement with the Figtree Program’s third party administrator, CEDA (the “Agreement”). The Amendment and the Agreement require Figtree and CEDA to defend and indemnify the City and to conduct the Figtree Program in accordance with state and local law, and the City’s PACE Program Guidelines.
Approval of this resolution will expand PACE program choices from three to four. Staff will be submitting additional PACE program offerings for City Council’s consideration in the future.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18705.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. PACE programs support the Healthy Community goal as they fund energy and water upgrades in the community, which is a key objective under Initiative 3.2.1. - “Design and implement innovative environmental & conservation programs.”
CURRENT YEAR FISCAL IMPACT
There is no net fiscal impact to the City’s General Fund from adding Figtree as another PACE program offering. PACE programs are implemented at no-cost to the City and staff time associated with reviewing additional PACE programs would be reimbursed through the City’s Local Government Partnership with San Diego Gas & Electric.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City’s General Fund from expanding PACE program offerings.
ATTACHMENTS
1. County of San Diego Agreement for Collection of Taxes and Special Assessments with CEDA
2. Associate Membership Agreement (Exhibit A)
3. Indemnification Agreement (Exhibit B)
Staff Contact: Robert Beamon