3A Public Hearing 2010 0201 - Laserfiche WebLink

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State Energy Program Grants/Ca]iforniaFIRST 4 February 1, 2010 DISCUSSION CaliforniaFIRST In today's economic environment, there may not be attractive private enterprise alternatives 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 CaliforniaFlRST Program, the assessment lien transfers with the property upon sale. Only property owners who choose to participate in the program will have assessments imposed on their property. 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 benefits to the City include: • As in conventional assessment financing, the City is not obligated to repay the bonds issued by California Communities or to pay the assessments levied on the participating properties. ~ California Communities handles all assessment administration, bond issuance and bond administration functions. A participating city can provide financing of renewable energy, energy efficiency and water efficiency improvements to property owners through the Califoi7liaFIRST Program -thereby meeting its political and environmental goals -- while committing virtually no staff time to administer the program. • Quantifiable reductions in community energy and water usage and greenhouse gas emissions. • Increased economic activity as property owners undertake improvements. In order for the City to participate in CaliforniaFIRST, the City Council must adopt a resolution authorizing participation. The proposed resolution: (1) authorizes California Communities to accept applications from owners of property within the City for municipal financing of renewable energy, energy efficiency and water efficiency improvements through the CaliforniaFIRST Program, (2) authorizes California Communities to conduct assessment proceedings and levy assessments against the property of participating owners within our boundaries, and (3) 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. Those fees total $15,000 if not all Alameda County jurisdictions join CaliforniaFlRST. If all other Alameda County jurisdictions do join CaliforniaFIRST, the City's fees will total $11,375. CSCDA, in collaboration with Sacramento County, is submitting a grant application to the California Energy Commission (which Council is being asked to support in the second of the three resolutions encompassed in this agenda item) that would eliminate all set-up fees for the City if it is successful. Therefore, the $15,000 set-up