21. CaliforniaFIRST ProgramOFFICE OF THE CITY MANAGER
Environmental Affairs Division
CUP~RTINQ GR~~N
Frogrom
Agenda Item No.
SUBJECT AND ISSUE
CITY HALL
10300 TORRE .AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3223 • FAX: (408) 777-3366
STAFF REPORT
Meeting Date: January 19, 2009
CaliforniaFIRST Program, a financing mechanism for renewable energy (continued from Dec. 15):
1. Authorize the City of Cupertino to join the CaliforniaFirst Program.
2. Authorize the California Statewide Communities Development Authority to accept
applications from property owners, conduct contractual assessment proceedings and levy
contractual assessments within the territory of the city and authorize related actions.
3. Authorize the County of Sacramento to apply for State Energy Program Funds on behalf of
the City of Cupertino.
BACKGROUND
The CaliforniaFirst Program is a pilot program developed to provide financing to property
owners for renewable energy, energy efficiency and water efficiency projects. This pilot
program was made possible by the passage of ~'~B811, which allows local governments to form
assessment districts to enable property owner~~ to install and pay for renewable energy and
energy efficiency improvements over time. Presented for Council review are the two resolutions
(Attachment A and B) for approval to participate in this voluntary program, which will enable
interested residents and businesses in Cupertino -to have access to this financing mechanism.
CALIFORNIAFIRST
CaliforniaFlRST is a turnkey property assessed clean energy (PACE) program developed by the
California Statewide Communities Developme~lt Authority (California Communities), a joint
powers authority sponsored by the League ~~f California Cities and the California State
Association of Counties. Member agencies of California Communities include all 58 counties
and more than 400 other local agencies throughout California, including the City of Cupertino.
The CaliforniaFIRST Program is being instituted by California Communities to allow owners of
property in participating cities and counties to finance renewable energy, energy efficiency and
water efficiency improvements on their property (Attachment C). Municipalities "opt in" to the
CaliforniaFIIZST program to allow property o~mers to finance clean energy projects through
bonds that are issued by California Communities. Bonds are then repaid through the property
taxes of participating property owners over a 10-20 year period. CaliforniaFIRST is a voluntary
program and only affects property owners that choose to participate in the program. This
approach is similar to programs already implemented in Palm Desert and Sonoma County, CA.
The benefits to the property owner include:
• The program creates alternatives for property owners to finance renewable energy, energy
efficiency or water efficiency improvements.
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• Only property owners who choose to participa#e 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.
• Most private loans are due on the sale of the property, making it difficult for owners to match
the life of the repayment obligation with the useful life of the financed improvements. Under
this program, the assessment obligation transfers with the property upon sale.
• 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:
• 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.
• Through the CaliforniaFIRST Program, a participating city can provide a mechanism for
financing renewable energy, energy efficiency and water efficiency improvements to
property owners -thereby meeting its political and environmental goals -- while committing
virtually no finances or staff time to administer the program.
CALIFORNIAFIRST PILOT PROGRAM
Before CaliforniaFIRST is rolled out on a statewide basis, it will first be tested in pilot counties
and cities throughout the State. The pilot program will be launched sometime between spring and
early summer 2010. The statewide program would then become active by fall of 2010.
The pilot program will allow CaliforniaFIRST to be implemented in phases and also improve the
program's bond rating before being introduced statewide. Santa Clara County's Board of
Supervisors has determined it will participate in the CaliforniaFIRST pilot program, allowing
Cupertino to enter the pilot program.
STATE ENERGY PROGRAM -MUNICIPAL FINANCING PROGRAM GRANT
As part of the American Recovery and Reinvestment Act, the State of California has received
$226 million for the State Energy Program (SEP). Of this money, $95 million will be used to
fund an Energy Efficiency Program that will provide grants to qualified organizations for
residential building retrofit, municipal and commercial retrofit, and municipal financing
programs. The State's SEP funds are being administered by the California Energy Commission.
Renewable Funding and California Communities have been working with Sacramento County to
prepare an SEP municipal financing program grant application to cover the costs of program
financing, local coordination, and marketing for all municipalities participating in the pilot
CaliforniaFIRST program. If the grant is awarded to Sacramento County it would cover the City
of Cupertino's start up costs to participate in the CaliforniaFIRST program.
FISCAL IMPACT
1. City of Cupertino: Participating in CaliforniaFIRST benefits the City by providing:
a PACE program with no costs to the City;
a turnkey service to handle the entire process from homeowner application to funding;
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• expertise in azeas that the City is not familiar with;
~ a program that can launch simultaneously with the proposed residential retrofit program -
assuming both grants aze funded; and
• a means for Cupertino as a community to acf~ieve climate/environmental goals.
To participate in CaliforniaFIRST, municipalities pay a onetime start up fee, however this fee is
proposed to be covered in full by the California Energy Commission's State Energy Program. In
turn, California Communities handles all administration of Ca[iforniaFIRST. The grant
allocation for Cupertino's participation in the C<<liforniaFIRST program is $12,500. As such, the
city's participation in this pilot program requires the successfizl award of the State Energy
Program grant application to cover all legal, pro<:edural, and technology costs associated with the
CaliforniaFIRST Program, as outlined in the attached resolution.
Also, the continued participation of the city will be subject to evaluation in the pilot and periodic
review of the program by staff, which is reflectf:d in the attached resolution authorizing the city
to join the program. The city will not be required to pay ongoing administrative fees, which will
be covered by individual program participants. Furthermore, any jurisdiction can withdraw from
the CaliforniaFIRSTPragram at ~ time by passing a resolution rescinding the authorization.
Lastly, 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 a:~sessment administration, bond issuance and
bond administration functions.
2. Homeonwers: The CaliforniaFIIZST program will offer residents the opportunity to
fnance major energy efficiency and renewable energy projects for their homes through a special
district property assessment. The cost would be ~unortized over a number of years and billed with
property tax. If the property ownership is transferred, the cost of the project would stay with the
home, rather than the homeowner.
Property assessment financing allows homeowners to:
• pay for improvements;
• save money from energy efficiency;
• have the loan attached to the home, not their :personal credit;
• pay off the assessment at any time (subject to applicable prepayment penalties); and
• benefit from the statewide aggregation of projects and bond market, possibly resulting in
lower borrowing costs.
In recognition of these benefits, every city in the County of Santa Clara has sent a letter of
commitment to CaliforniaFIRST in order to participate in the pilot program.
ENVIRONMENTAL IMPACT
With the passage of AB 32, California set ambitious goals for reducing carbon emissions and
building alternative energy use. The California Public Utilities Commission has set a goal of
retrofitting over 13 million residences to be at le<<st 30% more energy efficient. Many California
cities and counties have also set their own greenhouse gas reduction targets. Similarly, water
conservation efforts, including water-related improvements to residential, commercial and
industrial properties are necessary to address chr+~nic water shortages in California.
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According to the California Energy Commission's (CEC) 2005 report "Energy Efficiency in
Existing Buildings" CEC projected that electricity can be reduced by 9% and natural gas 6%
through cost effective measures which can translate into $4.5 billion dollars in consumer savings,
equal to removing 3 million cazs from the road in one year. Moreover, these efficiency measures
become increasingly important as energy costs continue to rise. Since 2002, the average nominal
cost of electricity has risen more than 5 % per year and the average cost of natural gas has risen
more than 10 % per year for residential customers in the United States
Despite these facts, wide-scale adoption of efficiency measures and the installation of renewable
energy technologies to reduce energy consumption and costs have not occurred because many
barriers exist. One is high first cost ("up-front cost"), which is both a psychological and financial
barrier for many people. Clean energy municipal financing (i.e., energy improvements via
municipal low-interest loans tied to the property, not the homeowner) provides a solution to
remove this barrier by offering an efficient and affordable way to dramatically reduce residential
and commercial energy use and greenhouse gas emissions in communities, while stimulating the
economy through the development of clean technology jobs.
RECOMMENDED ACTION
CaliforniaFIRST Program, a financing mechanism for renewable energy (continued from. Dec. 15):
1. Authorize the City of Cupertino to join the CaliforniaFirst Program.
2. Authorize the California Statewide Communities Development Authority to accept
applications from property owners, conduct contractual assessment proceedings and levy
contractual assessments within the territory of the city and authorize related actions.
3. Authorize the County of Sacramento to apply for State Energy Program Funds on behalf of
the City of Cupertino
CONSEQUENCES OF NOT FOLLOWING THE RECOMIVIENDED ACTIONS
The City will not approve resolutions to join CaliforniaFIRST or authorize Sacramento County
to apply for SEP funds on behalf of Saratoga and will consequently not participate in the
CaliforniaFIRST t~~lot prof7ram~ ,~
hick Kitson
Public and Environmental Affairs Director
an
Co e
Environmental Affairs Coordinator
Appr d for submission:
David W. Knapp
City Manager
ATTACHMENTS:
Attachment A: Resolution to Join the CaliforniaFIRST program
Attachment B: Resolution authorizing the County of Sacramento to apply for and accept SEP
Attachment C: California First Program Report
~ Increases aze based on Energy Information Administration average U.S. retail prices from 2ooz to soo6 for residential electricity
and natural gas.
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~- ~t~ c c~~~ ~t
DRAFT
RESOLUTIOl`~T NO. 14-014
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AUTHORIZING THE CITY TO JOIN T:HE CALIFORNIAFIRST PROGRAM;
AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS,
CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY
CONTRACTUAL ASSESSMENTS WITHII\f THE TERRITORY OF THE CITY; AND
AUTHORIZING RE:GATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority ("California
Communities") is a joint exercise of powers autr~ority the members of which include numerous
cities and counties in the State of California, including the City of Cupertino in the County of
Santa Clara (the "City"); and
WHEREAS, California Communities ha:. established the CaliforniaFIRST program (the
"CaliforniaFIRST Program") to allow the fin+sncing of certain renewable energy, energy
efficiency and water efficiency improvements (the "Improvements") through the levy of
contractual assessments pursuant to Chapter 24 of Division 7 of the Streets & Highways Code
("Chapter 29") and the issuance of improvement bonds (the "Bonds") under the Improvement
Bond Act of 1915 {Streets and Highways Code ~~ections 8540 and following) (the "1915 Act")
upon the security of the unpaid contractual assessments; and
WHEREAS, Chapter 29 provides that a;~sessments 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 within its jurisdiction
("Participating Property Owners") to participate in the CaliforniaFIRST Program and to allow
California Communities to conduct assessment proceedings under Chapter 29 and to issue Bonds
under the 1915 Act to finance the Improvements; and
WHEREAS, California Communities will conduct assessment proceedings under
Chapter 29 and issue Bonds under the 1915 Act to finance Improvements;
WHEREAS, there has been presented to this meeting a proposed form of Resolution of
Intention to be adopted by California Communities in connection with such assessment
proceedings (the "ROI"), a copy of which is attached hereto as Exhibit A, and the territory within
which assessments may be levied for the Calii=orniaFIRST Program shall include all of the
territory within the City's official boundaries of rf:cord {the "Proposed Boundaries"); and
WHEREAS, the City will not be res)~onsible for the conduct of any assessment
proceedings; the levy or collection of assessments or any requixed remedial action in the case of
delinquencies in such assessment payments; or tti~e issuance, sale or administration of the Bonds
or any other bonds issued in connection with the (:aliforniaFIRST_Pragram; and
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Resolution No. 10-0 I4
WHEREAS, pursuant to Government Code Section b586.5, a notice of public hearing
has been published once at least five days prior to the date hereof in a newspaper of general
circulation in the City and a public hearing has been duly conducted by this City Council
concerning the significant public benefits of the CaliforniaFIRST Program and the financing of
the Improvements;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Cupertino as follows:
Section 1. On the date hereof, the City Council held a public hearing and the City
Council hereby finds and declares that the issuance of bonds by California Communities in
connection with the CaliforniaFIRST Program will provide significant public benefits, including
without limitation, savings in effective interest rate, 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 2. In connection with the CaliforniaFIRST Program, the City hereby
consents to the conduct of special assessment proceedings by California Communities pursuant
to Chapter 29 on any property within the Proposed Boundaries and the issuance of Bonds under
the 19I5 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, 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 City will not be responsible for the. conduct of any assessment
proceedings; the levy or collection of assessments or any required remedial action in the
case of delinquencies in such assessment payments; or the issuance, sale or
administration of .the Bonds or any other bonds issued in connection with the
CaliforniaFIRST Program.]
(4) The issuance of Bonds will occur following receipt of a fmal judgment in
a validation action filed by California Communities pursuant to Code of Civil Procedure
Section 860 that the Bonds are legal obligations of California Communities.
Section 3. Pursuant to the requirements of Chapter 29, California Communities has
prepared and will update from time to time the "Program Report" for the CaliforniaFIRST
Program {the "Program Report"), and California Communities will undertake assessment
proceedings and the financing of Improvements as set forth in the Program Report.
Section 4. The appropriate officials and staff of the City are hereby authorized and
directed to make applications for the CaliforniaFIRST program available to all properly owners
2 21-6
Resolution No. 10-014
who wish to finance improvements; provided, th<<t California Communities shall be responsible
for providing such applications and related materials at its own expense. The following staff
persons, together with any other staff persons chosen by the City Manager from time to time, are
hereby designated as the contact persons for California Communities in connection with the
CaliforniaFIRST Program: Erin M. Cooke, Environmental Affairs Coordinator.
Section 5. The appropriate officials aa~d staff of the City are hereby a-~thorized and
directed to execute and deliver such closing certificates, requisitions, agreements and related
documents as are reasonably required by California Communities in accordance with the
Program Report to implement the CaliforniaFlRS'C Program for Participating Property Owners.
Section 6. The City's participation in the CaliforniaFIRST program requires the full
award of funds through the California Energy Commission's State Energy Program to pay for the
total cost of implementing the CaliforniaFIRST program in the City, including the payment of
legal costs incurred in connection with judicial validation of the CaliforniaFIRST Program.
Section 7. The City of Cupertino may withdraw from the CaliforniaFIRST Program
at ~ time by passing a resolution rescinding the authorization.
Section 8. The City Council hereby finds that adoption of this Resolution is not a
"project" under the California Environmental C~uality Act, 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 9. This Resolution shall take ~:ffect immediately upon its adoption. The City
Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the
Secretary of California Communuities.
PASSED AND ADOPTED at a rel;ulax meeting of the City Council of the City of
Cupertino this 19th day of January 2010, by the following vote:
Vote Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
APPROVED:
Mayor, City of Cupertino
3 21-7
Exhibit A
RESOLUTION NO.
RESOLUTION DECLARING INTENTION TO FINANCE
INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE
ENERGY SOURCES, ENERGY EFFICIENCY AND WATER
EFFICIENCY IMPROVEMENTS
COUNTY OF SANTA CLARA
WHEREAS, the California Statewide Communities Development Authority ("California
Communities") is authorized under the authority granted California Communities pursuant to
Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California in
accordance with Chapter 29 of Part 3 of Division 7 of the Streets & Highways Code of the State
of California ("Chapter 29") to authorize assessments to finance the installation of distributed
generation renewable energy sources, energy efficiency and water efficiency improvements that
are permanently fixed to real property ("Authorized Improvements"); and
WHEREAS, Chapter 29 authorizes California Communities to enter into contractual
assessments to fnance the installation of Authorized Improvements in the County of Santa Clara
(the "County"); and
WHEREAS, California Communities wishes to declare its intention to establish a
CaliforniaFIRST program (the "CaiiforniaFIRST Program") in the County, pursuant to which
California Communities, subject to certain conditions set forth below, would enter into
contractual assessments to finance the installation of Authorized Improvements in the County;
NOW, THEREFORE, BE IT RESOLVED by the California Statewide Communities
Development Authority, as follows:
Section 1. Findings. California Communities hereby finds and declares the following:
{a) The above recitals are true and correct.
{b) Energy conservation efforts, including the promotion of energy-related
Authorized Improvements to residential, commercial, industrial, or other real property, are
necessary to address the issue of global climate change and the reduction of greenhouse gas
emissions in the County.
(c) Watex conservation efforts, including the promotion of water-related Authorized
Improvements to residential, commercial, industrial, or other real property, are necessary to
address the issue of chronic water shortages in California.
(d) The upfront cost of making residential, commercial, industrial, or other real
property more energy and water efficient, along with the fact that most commercial loans for that
4 21 -8
Resolution No. 10-014
purpose are due on the sale of the property, prevents many property owners from installing
Authorized Improvements.
(e) A public purpose will be served by establishing a contractual assessment program,
to be known as the GalifoxniaFIRST Program, x~ursuant to which California Communities will
finance the installation of Authorized Improvements to residential, commercial, industrial, or
other real property in-the County.
Section 2. Determination of Public Interest. California Communities hereby
determines that (a) it would be convenient, advantageous, and in the public interest to designate
an area, which shall encompass the entire geo~~aphic territory within the boundaries of the
County, within which California Communities and property owners within the County may enter
into contractual assessments to finance the installation of Authorized Improvements pursuant to
Chapter 29 and (b) it is in the public interest for California Communities to finance the
installation of Authorized Improvements in the County pursuant to Chapter 29.
Section 3. Identification of Authorized l:mprovements. California Communities hereby
declares that it pxoposes to make contractual ass~:ssment f nancing available to property owners
to finance installation of Authorized Improvements, including but not limited to those
improvements detailed in the Report described in Section 8 below, as that Report may be
amended from time to time.
Section 4. Identification of Boundaries. Contractual assessments may be entered into
by property owners located within the entire p;eographic territory of the County; provided,
however, that California Communities shall not enter into contractual assessments to finance the
installation of Authorized Improvements with tree owner of any property in the County unless
requested to do so first by the County if the property is located in unincorporated territory or a city
if the property is located in incorporated territory and after such city or the County, as applicable,
has held a public hearing pursuant to Section 6:i 85.5 of the Government Code of the State of
California. The form of resolution pursuant to wl~ich cities may request California Communities
to enter into contractual assessments to finance -she installation of Authorized Improvements is
attached as Exhibit A.
Section 5. Proposed Financing Arrangements. Under Chapter 29, California
Communities may issue bonds pursuant to (~hapter 29 that are payable by contractual
assessments and California Communities may ;advance its own funds to finance work to be
repaid through contractual assessments, and m;iy from time to time sell bonds to reimburse
itself for such advances. Division 14 {commencing with Section 8500) of the Streets &
Highways Code of the State (the "improvement Bond Act of 1915") shall apply to any bonds
issued pursuant to Chapter 29, insofar as the Improvement Bond Act of 1915 is not in conflict
with Chapter 29.
California Communities shall determine the creditworthiness of a property owner to
participate in the financing of Authorized Improvements based on the criteria developed by the
Program Manager in consultation with the Cali,forniaFIRST Program financing team and on
file with the Secretary.
~ z~ -s
Resolution No. 10-014
In connection with bonds issued under the Improvement Bond Act of 1915 that are
payable from contractual assessments, serial andlor term improvement bonds shall be issued in
such series and shall mature in such principal amounts and at such times (not to exceed 20
years from the second day of September next following their date) and at such rate or rates of
interest (not to exceed the maximum rate permitted by applicable law) as shall be determined
by California Communities at the time of the issuance and sale of the bonds. The provisions of
Part 11.1 of the Improvement Bond Act of 1915 shall apply to the calling of the bonds. It is
the intention of California Communities to create a special reserve fund for the bonds under
Part 16 of the Improvement Bond Act of 1915. California Communities will not advance
available surplus funds from its treasury to cure any deficiency in the redemption fund to be
created with respect to the bonds; provided, however, that this determination shall not prevent
California Communities from, in its sole discretion, so advancing funds. The bonds may be
refunded under Division 1 I.5 of the California Streets and Highways Code or other applicable
laws permitting refunding of the bonds, upon the conditions specified by and at the
determination of California Communities.
California Communities hereby authorizes the Program Manager, upon consultation
with bond counsel and the CaliforniaFIRST Program underwriter, to provide for the issuance
of bonds payable from contractual assessments.
In connection with the issuance of bonds payable from contractual assessments,
California Communities expects to obligate itself, through a covenant with the owners of the
bonds, to exercise its foreclosure rights with respect to delinquent contractual assessment
installments under specified circumstances.
Section 6. Public Hearin. Pursuant to the Act, California Communities hereby orders that
a public hearing be held before this Commission, at , on , 2010 at
a.m., for the purposes of allowing interested persons to object to or inquire about the
proposed program or any of its particulars. The public hearing maybe continued from time to time
as determined by the Commission for a time not exceeding a total of 180 days.
At the time of the hearing, the Report described in Section 8 below shall be summarized and
the Commission shall afford all persons who are present an opportunity to comment upon, object
to, or present evidence with regazd to the proposed contractual assessment program, the extent of
the area proposed to be included within the program, the terms and conditions of the draft Contract
described in Section 8 below, or the proposed financing provisions. Following the public hearing,
California Communities may adopt a resolution confirming the Report (the "Resolution
Confirming Report") or may direct the Report's modification in any respect, or may abandon the
proceedings.
The Commission hereby orders the Secretary to publish a notice of public hearing once a
week for two successive weeks. Two publications in a newspaper published once a week or more
often, with at least five days intervening between the respective publication dates not counting
such publication dates, are sufficient. The period of notice will commence upon the first day of
6 21 - 10
Resolution No. 10-014
publication and terminate at the end of the fourteenth day. The first publication shall occur not later
than 20 days before the date of the public hearing.
Section 7. Notice to Water and Electric Providers. Pursuant to Section 5898.24 of the
Streets & Highways Code, the Commission hereby ordexs the Secretary to provide written notice
of the proposed contractual assessment prograrr~ within the County to all water and electric
providers within the boundaries of the County riot less than 60 days prior to adoption of the
Resolution Confirming Report.
Section 8. Report. The Commission hereby directs the Program Manager for the
CaliforniaFIRST Program to prepare and file with the Commission a report (the "Report"} at or
before the time of the public hearing described in Section 6 above containing all of the following:
{a) A map showing the boundaries; of the territory within which contractual
assessments are proposed to be offered, as set forth in Section 4 above.
(b) A draft contract (the "Contract") .specifying the terms and conditions that would
be agreed to by California Communities and a property owner within the County. The Contract
may allow property owners to purchase directl~~ the related equipment and materials for the
installation of the Authorized Improvements and to contract directly for the installation of such
Authorized Improvements.
{c) A statement of California Cormunities' policies concerning contractual
assessments including all of the following:
{1) Identification of types of Authorized Improvements that may be financed
through the use of contractual assessments.
(2) Identification of California Communities official authorized to enter into
contractual assessments on behalf of California Communities.
(3} A maximum aggregate dollar amount of contractual assessments in the
County.
(4) A method for setting requests from property owners for financing through
contractual assessments in priority order iii the event that requests appear likely to exceed
the authorization amount.
(d) A plan for raising a capital amount required to pay for work performed pursuant
to contractual assessments. The plan may include amounts to be advanced by California
Communities through funds available to it from ;any source. The plan may include the sale of a
bond or bonds or other financing relationship pursuant to Section 5898.28 of Chapter 29. The
plan shall include a statement of or method for determining the interest rate and time period
during which contracting property owners would pay any assessment. The plan shall provide for
any reserve fund or funds. The plan shall provide: for the apportionment of all or any portion of
7 21-~~
Resolution No. 10-014
the costs incidental to financing, administration, and collection of the contractual assessment
program among the consenting property owners and California Communities.
(e) A report on the results of the consultations with the County Auditor-Controller
described in Section 10 below concerning the additional fees, if any, that will be charged to
California Communities for incorporating the proposed contractual assessments into the
assessments of the general taxes of the County on real property, and a plan fox financing the
payment of those fees.
Section 9. Nature of Assessments. Assessments levied pursuant to Chapter 24, and the
interest and any penalties thereon, will constitute a lien against the lots and parcels of land on
which they are made, until they are paid. Unless otherwise directed by California
Communities, the assessments shall be collected in the same manner and at the same time as
the general taxes of the County on real property are payable, and subject to the same penalties
and remedies and lien priorities in the event of delinquency and default.
Section 10. Consultations with County Auditor-Controller. California Communities
hereby directs the Program Manager to enter into consultations with the County Auditor-
Controller in order to reach agreement on what additional fees, if any, will be charged to
California Communities for incorporating the proposed contractual assessments into the
assessments of the general taxes of the County on real property.
Section 11. Preparation of Current Roll of Assessment. Pursuant to Section
5898.24(c), California Communities hereby designates the Program Manager (or his/her
designee) as the responsible official for annually preparing the current roll of assessment
obligations by assessor's parcel number on property subject to a voluntary contractual
assessment.
Section 12. Procedures for Resuondin~ to Inquiries. The Program Manager shall
establish procedures to promptly respond to inquiries concerning current and future estimated
liability for a voluntary contractual assessment.
Section 13. Professionals Appointed. California Communities hereby appoints 3ones
Hall, A Professional Law Corporation, San Francisco, California, as bond counsel to California
Communities in connection with the CaliforniaFIRST Program. The Commission hereby
authorizes and directs an Authorized Signatory of California Communities (as determined from
time to time by the Commission by separate resolution) to enter into appropriate agreements with
such firm for its services to California Communities in connection with the matters addressed in
this Resolution.
Section 14. Set-Up Fees. The County and various cities within the County have
advanced fees to California Communities to pay for certain costs of establishing the
CaliforniaFIRST Program, some or all of which represent State Energy Program (SEP} funds.
The Program Manager is hereby authorized and directed to return to the County and cities, as
applicable, any fees paid to California Communities by the County and cities, as applicable, that
$ 21 - 12
Resolution No. 10-014
do not represent SEP funds and that California Communities does not use to pay for the costs of
establishing the CaliforniaFIRST Program.
Section 15. Effective Date. This resolution shall take effect immediately upon its
adoption.
PASSED AND ADOPTED by the California Statewide Communities Development
Authority this , 2010.
I, the undersigned, the duly appointed, ar.~d qualified member of the Commission of the
California Statewide Communities Development Authority, DO HEREBY CERTIFY that the
foregoing resolution was duly adopted by the Commission of said Authority at a duly called
meeting of the Commission of said Authority held in accordance with law on , 2010.
By:
Member
9 21 - 13
fF7fdcl~k.~~w t 6
AFT
RESOLUTION NO.10-O1S
RESOLUTION BY THE CITY COUNCIL OF THE CITY OF CUPERTINO
AUTHORIZING THE COUNTY OF SACRAMENTO AS THE LEAD
COLLABORATIVE ENTITY TO APPLY FOR STATE ENERGY PROGRAM FUNDS
ON BEHALF OF THE CITY OF CUPERTINO
WHEREAS, the City of Cupertino recognizes that it is in the interest of the regional, state,
and national economy to stimulate the economy; create and retain jobs; reduce fossil fuel emissions;
and reduce total energy usage and improve energy efficiency within our jurisdiction; and
WHEREAS, State Energy Program (SEP} funds are available through the California Energy
Commission's SEP for grants to eligible local governments for energy efficiency, energy
conservation, renewable energy, and other energy related projects and activities authorized by the
American Recovery and Reinvestment Act of 2009 ("ARRA"); and
WHEREAS, SEP allows for cities, counties, or groups of cities and counties in California to
apply for SEP funds on behalf of eligible local governments; and
WHEREAS, the City of Cupertino is eligible for SEP funding under the California Energy
Commission's SEP; and
WHEREAS, the City of Cupertino is proposing to collaborate with Sacramento County to
implement a program for financing the energy efficiency, energy conservation, renewable energy,
and other energy related projects and activities authorized by ARRA, which program is described in
Exhibit A for the purpose of qualifying for SEP funds from the California Energy Commission; and
WHEREAS, the City of Cupertino has considered the application of the California
Environmental Quality Act (CEQA) to the approval of the program for financing energy
efficiency, energy conservation, renewable energy, and other energy related projects and activities
authorized by ARRA described in Exhibit A;
NOW, THEREFORE, BE IT RESOLVED, that in compliance with the CEQA, the City
Council of the City of Cupertino finds that the approval of the program for financing energy
efficiency, energy conservation, renewable energy, and other energy related projects and activities
authorized by ARRA described in Exhibit A is not a "project" under CEQA, because the program
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)).
BE IT FURTHER RESOLVED that the City Council authorizes Sacramento County to
submit a collaborative application on its behalf to the California Energy Commission for up to $16.5
million in SEP funds for the program for financing energy efficiency, energy conservation,
renewable energy, and other energy related projects and activities authorized by ARRA described in
Exhibit A.
BE IT ALSO FURTER RESOLVED, if recommended for funding by the California Energy
Commission, the City of Cupertino authorizes Sacramento County to accept a grant award on its
21 - 14
Resolution No. 10-015
behalf and to enter into all necessary contracts and agreements, and amendments thereto, on its
behalf to implement and carry out the program for financing the projects described in Exhibit A.
PASSED AND ADOPTED at a regular mc;eting of the City Council of the City of
Cupertino this 19th day of January 2010, by the following vote:
Vote Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
APPROVED:
Mayor, City of Cupertino
2
21 - 15
Resolution No. I0-015
Exhibit A
California Energy Commission State Energy Program
CaliforniaFIRST Collaborative Proposal
Summary of Proposal Scope & Budget Framework
Description of Program Proposal
Under the lead applicant, Sacramento County, the 14 counties eligible to participate in the
pilot stage of the CaliforniaFIRST Program are collaborating on a proposal to the California
Energy Commission State Energy Program for a grant of up to $16.5 million. The grant
funds will be used to offset initial fees associated with bond issuance, start-up costs for the
14 counties and all incorporated cities, an interest rate buy-down, local
marketing/education/training/outreach, local coordination, and grant administration to
support the launch of the CaliforniaFIRST municipal financing program.
CaliforniaFIRST Program County Participants and Proposal Collaborators
/ Alameda / Sacramento / San Mateo / Ventura
/ Fresno / San Benito / Santa Clara / Yolo
/ Kern / San Diego / Santa Cruz
/ Monterey / San Luis Obispo / Solano
Budget Basics
1. CaliforniaFIRST financing costs and fees (N$6M)
Guided by California Communities and the CaliforniaFIRST Program Administrator
Renewable Funding, this program element will:
• buy-down the interest rate on the initial round(s) of projects financed by the
CaliforniaFIRST Program,
• cover fixed costs associated with initial bond counsel, bond disclosure, fiscal agent
and bond rating,
• cover legal and validation costs, and
• cover the deployment of technology (web portal) to support local programs.
2. Grant/Contract Administration & Steering Committee Liaison: (~$2M)
On behalf of the applicant agency, grant/contractor administration duties include gathering
relevant reporting information from all partner jurisdictions and CaliforniaFIRST, financial
oversight and invoicing, contract administration, tracking, monitoring, and oversight of
deliverables. In addition, the grant administrator will serve as the partner liaison between
all participating steering committees to maintain coordination and consistency on the local
marketing efforts between parties as well as provide marketing and contract technical
assistance, training, and advice to participating agencies. The Grant Administrator will also
coordinate local efforts with those programs funded under the California Comprehensive
Residential Building Retrofit Program.
3. Regiional Program Coordination & Marketing: (N$8.5M)
In line with the overall project goals, funding has been budgeted on a regional basis to each
of the six primary program regions in the following amounts, based on total number of
Counties:
• Capitol Region (Sacramento/Yolo}: $1,800,000
3 2~ - ~s
Resolution No. 10-015
• Central Valley Region (Fresno/Kern): $1,150,000
• Bay Area Region: (AlamedaJSan Mateo/Santa Clara/Solano): $2,300,000
• North Central Coast Region: (Monterey/Santa Cruz/San Benito}: $1,725,000
• South Central Coast Region: {Ventura/S~~n Luis Obispo}: $1,150,000
• Southern California Region: (San Diego}, $575,000
This final program element serves to provide <~ach region with the resources necessary to
help facilitate the rapid adoption of energy f:fficiency and renewable energy generation
system installations throughout the target areas by connecting property owners to any and
all available on-the-ground or proposed resources, and services, providing a streamlined
framework far easy navigation, reduced out-of-~pocket expenses, and overall increased cost
effectiveness for both participants and the program overall. The focus of the program will be
to create region-wide (or county-wide, where appropriate) cooperative project design,
implementation, marketing, and coordination to maximize economies of scale, take
advantage of overlapping markets, and ultimately allow each dollar to go further to benefit
all parties.
Financing Costs and Fees
A. Financing Costs
As Program Administrator of the California Communities CaliforniaFIRST Program,
Renewable Funding will coordinate and provide program administration, financing, and legal
services to support a robust statewide municipal financing program. Specific financing
costs are concentrated at the start of the progr;~m and result in increased fees to a program
participant, and therefore a higher effective interest rate. In order to lower the interest
rate, the SEP funds will be used to cover bond disclosure counsel, bond rating fees, and a
bond fiscal agent. In addition, a direct interest rate buy-down will be employed to achieve a
bond rate that is equivalent to an A-rated bond, which is likely to be the bond rating later in
the program.
B. Set-up Fees
A funding request equivalent to the city and county set-up fees will be included in the
proposal. The costs For initial legal work and validation proceedings will be covered by this
request. Additionally, the casts of establi~;hing county web portals, importing local
assessor's data, and maintaining the website will be part of this funding request.
Suggested Major Marketing Program Coordlination & Marketing Proaram Elements
A. Agency Coordination /Steering Committee Participation
In recognition of the additional coordination i:ime required to get new programs off the
ground, individual counties may elect to include a modest amount of staff time for agency
representatives to participate in the program steering committee and other activities to
drive marketing program design, educational/marketing material development, form and
protocol development, etc. By investing this i:ime at the onset, we are able to develop a
self-sustaining program for the long term. County agencies (that is, auditor/tax
collector/controller) will receive a small percentage, incorporated into each loan, to cover
regular ongoing program administration costs associated with maintaining the tax roll and
collecking annual assessments in years beyond the grant term. Some jurisdictions may
instead wish to contribute this time as project leveraged funds/resources to increase overall
program cost effectiveness based on their individual needs and resources. Regional
partnership may also elect to use a portion of the resources from this program element
toward informal or formalized staff/personnel training within their jurisdictions.
4
21 - 17
Resolution No. 10-015
B. Education /Outreach/ Marketing
Successful program adoption requires thoughtful design, convenient procedures, and a
robust pragram education component to encourage and energize program participation.
Achieving this goal, the project team will create clear, consistent, and thematic pragram
branding imagery, educational and recruitment tools such as program brochures. The
program will be supported by the CaliforniaFIRST web portal and links to new and existing
partner and complementary websites, frequently asked questions, applications, and/or other
program materials. In addition, the project will engage awide-stretching network of
partners to promote, recruit, and disseminate program information utilizing existing
mechanisms of door-to-door outreach, community event tabling, workshops and
presentations, or other appropriate energy efficiency and complementary program
participation activities. Major elements might include:
/ Outreach Promotional Materials: Brochures, Door-hangers, Postcard Mailers, Bill Inserts,
etc.
/ Program Marketing Advertisements: Print Ads, Radio/TV Ads, PSA Production
/ Promotional Outreach Events, Trade Shows or Community Workshops
/ Homeowner/Business/Contractor/Staff Training Seminars
/ Sustainability Site Signage
/ Green Building and/or LEED Certification Technical Assistance
C. Community Coordinator /Partner Liaison /Supplies
The community coordinator is envisioned to serve as the single point regional program
coordinator to unify, inform, collaborate, and engage all program parties in relation to local
coordination and marketing efforts; respond to public inquiries; facilitate the education,
outreach, marketing, recruitment; and promote program adoption by the target community.
In addition the coordinator is responsible for coordinating with the grant administrator,
tracking/reporting necessary progress and metrics, meeting/exceeding grant milestones and
targets, incorporating required complementary program components, and working with
CaliforniaFIRST to assure QA/QC measures are applied to all participating properties.
Specific tasks will be driven by the overall project goals as well as the specific needs of each
region and may include:
/ Coordination with Grant Administrator/Steering Committee Liaison
/ Marketing Coordination with CaliforniaFIRST Municipal Finance District
/ Facilitation of local Regional Steering Committee Members and Partners
/ Assist with Impiementation Strategy, Documents, Procedures & Protocols Development
/ Guide Promotion, Marketing, Education, Recruitment & Program Information
Dissemination
/ Link Program Participants to Regional Energy Efficiency & Complementary Programs
/ Connect to Concurrent compiementary Workforce Development Training/Graduates
/ Administer Regional Program Budget, Competitive Bidding, Other Program
Transparency Reqs
/ Track andJor compile, Monitor & Evaluate Program Progress, Energy Savings, GHG
Reductions Achieved, Partner Leveraged Funds and Ancillary Environmental Benefits
Sample County Bud4et
A sample budget based on the above framework is provided below. Please Hate that these
amounts are subject to change based on the actual needs of each participating jurisdiction
as Weil as feedback obtained regarding funder and partner thresholds for competitiveness.
Com onent
Overall Gross Benefif
Per Coun Nef Benefit
Per Count
1.CaliforniaF[RST Costs & Fees 39% $ 428,571.43 -
5 21-~s
Resolution No, l d-015
2. Grant Administration & Technical Assistance 10% $ 107,142.86 -
3A.Steerin Adviso Committee 10% $ 115,000.00 $ 115,000.00
3B. Education, Outreach, Incentives, Marketin 23% $ 258,750.00 $ 258,750.00
3C. Communi Coordination 18% $ 201,250.00 $ 201 250.00
Total 100% $1,110,794.29 $ 575 000.00
Grant DeveloQment Team:
County of Sacramento-Lead Agency (A~~plicant), will oversee grant writing, provide
final edits and required signatures, and submit finalized proposal on behalf of entire
collaborative team based on the approved proposed program scope and budget
framework
• Ecology Action-Partner Grant Writer {Lea~~ on Marketing), will develop narrative based
on proposed program scope and budget framework, especially as it pertains to local
coordination and marketing project administration, marketing/contract technical
assistance, regional coordination, and marketing, to meet all grant requirements and
maximize proposal competiveness.
• Renewabie Funding-Partner Grant WritE:r {Lead on Finance}, will develop narrative
based on proposed program scope and budtaet framework, especially for CaliforniaFIRST
Program finance-related program elements, to meet all grant requirements and
maximize proposal competiveness.
b
21 - 19
O~pILAIIVS. ,•/
fro
;~ - "'- Attachment C
r .~~-
~~~~~~~~~~~ RBC
)I~'tI~FUI.t~ia'S .
r i •i i N £E~ .ubol i?v ~ •~ Capital
' ~ ~ •:
li i;1 , ~ .,.rr I
=,~ ' ; ~ , ~ ::,,:~ ~ ~ _ Markets
~~-~.. t. i1 i r~
CaliforniaFlRST Program Report
County of Santa Clara
(as of November 24, 2009}
2, - Zo
Table of Canfienfis
I. tr~troduction.....,...,. ..........................................................................,.:..........<.............~
A. California Communities ................................................................................................................................. .. 3
B. Furpose of the CaliforniaFIRST Program ................................................................................................. 3
C. Assessment Financing; Contractual Assessrrrents ................................................................................ 3
D. Purpose of this Program Report .................................................................................................................. 4
E. Program Administration ................................................................................................................................. 4
fl. Duration ................................................,.,......,,,,.,,................,..,......,.................., .>4
iii. grergram Requirerr~er~ts ..........................
.......,<~ ...................................................
.. 4
A. Authorized Improvements ........................................................................................................................... .. 4
B. Loading Order Process .................................................................................................................................. .. 5
C. Quality Assurance ............................................................................................................................................ .. 5
D. Property Eligibility Criteria ......................................................................................................................... .. 6
E. Eligible Costs ...................................................................................................................................................... .. 8
F. Eligible Contractors ......................................................................................................................................... .. 8
fly. FirEancing ~f the CaiiforniaF[RST Frogram ............................................................. ..8
A. Minimum and Maximum Financing Amounts ...................................................................................... .. 8
B. Financing Structure ........................................................................................................................................ .. 8
C. Financing Process ............................................................................................................................................ .. 4
D. Interest Rate ...................................................................................................................................................... 10
E. Administrative Costs ...................................................................................................................................... 10
F. Other Financed Amounts .............................................................................................................................. 10
G. Prepayment ..............................................................................................:......................................................... 11
1!. PuE~lic agency Ctfficial ................................................................,..,,.:..,................. 11
~f. Changes to the Re{~c~rt ........................................................................................ 1.1
'~fiE. Apiaendices anti Exhibits ...........................................................,......,...,.............11
~1 -21
Introduction
This CaliforniaFIRST Program Report (this "Program Report"} outlines the basic design and financing
structure of a property assessed municipal financing program called CalifomiaFIRST (the "CalfforniaFIRST
Program") for the County of Santa Clara (the "County").
A. California Gommt~nities
The Califomia Statewide Communities Development Authority ("Califomia Communities") is a statewide joint
powers authority sponsored by the Califomia State Association of Counties and the League of Califomia
Cities. California Communities' mission is to provide local governments access to low-cost financing for
projects that provide a tangible public benefit, contribute to social and economic growth, and improve the
overall quality of life in local communities.
B. Purpose of tk~e CalifarniaFiRST C3rogram
Califomia Communities is offering the CaliforniaFIRSTprogrom on a statewide basis, and the County is
offering the CaliforniaFIRST Program in the County, to encourage utilization, by the existing building stock,
of distributed generation renewable energy sources, energy efficiency and water efficiency improvements.
California Communities will facilitate a statewide bond pool, which will allow property owners to access
competitive interest rates offered by the public bond markets.
With the passage of AB 32, California set ambitious goals for reducing carbon emissions and building
alternative energy use. The Califomia Public Utilities Commission has set a goal of retrofitting over 13
million residences in the State to be at Isast 30% more energy efficient. Many California cities and counties
have also set their own greenhouse gas reduction targets. Similarly, water conservation efforts, inctuding the
promotion of water-related improvements to residential, commercial, industrial, or other real property, are
necessary to address the issue of chronic water shortages in Califomia.
Property owners can help to achieve greenhouse gas reductions and reduce water use and, at the same
time, save money by investing in distributed generation renewable energy sources, energy efficiency, and/or
water efficiency improvements. Yet most people still resist making these improvements. The number one
barrier is the large upfront cost.
Utilities sell power and water to their customers as a simple pay-as-you-go service. Homes and businesses
can be converted to clean energy and reduce water use quickly, but many believe that it can happen only if
paying for distributed generation renewable energy sources, energy efficiency improvements and water
efficiency improvements is more like paying a utility bill. The CaliforniaFIRST Program can make this
happen.
C. Assessment Financing; Contractual Assessments
The CaliforniaFIRST Program uses a tool that is widely used by local agencies in California to finance public
benefit projects: land-secured financing. California law has long provided cities and counties with the power
to issue bonds and [evy assessments on the County property tax bill to finance public projects such as
sewers, parks, and the undergrounding of utilities.
Chapter 29 of the Improvement Act of 1911, commencing with Section 5898.10 of the Streets & Highways
Code of the State of California ("Chapter 29"), authorizes the levy of "contractual assessments" to finance
the installation of distributed generation renewable energy sources, energy efficiency and water efficiency
improvements to be permanently affixed to residential, commercial, industrial, agricultural, or other real
property.
A "contractual assessment" is an assessment that is levied by contract pursuant to Chapter 29. For the
CaliforniaFlRST Program, the assessment contract will bean "Agreement to Pay Assessment and Finance
lmprovements" in the form attached to this Program Report as Exhibit A (the "Assessment Contract"). The
Assessment Contract will be executed by each participating property owner and California Communities.
21 - 22
Under the CalifomiaFIRST Program, a contractual assessment lien is placed on each participating property
in an amount necessary to (i) finance the ins#allation of authorized renewable energy, energy efficiency and
water efficiency improvements over a 10-20 year period of time, depending upon the useful life of the
financed improvements and (ii) pay the costs of administering the GaliforniaFIRST Program. The contractual
assessments are paid on the Coun#y property tax bill. !f the owner sells the property, the repayment
obligation remains an obligation of the property. California Communities wilt issue bonds payable from the
contractual assessments.
The CalifomiaFIRST Program is completely voluntary sand property taxes for properties in the County that do
not choose to participate are completely unaffected by the Program.
D. Purpose of this Program Report
This Program Report constitutes the report required pursuant to Section 5898.22 of Chapter 29 for the
County's CaliforniaFlRST Program. The CalifomiaFIRST Program will be offered throughout the entire
County as shown on the boundary map attached as Exhibit B. If a property is located in a city's incorporated
territory within the County, a property may participate in the CalifomiaFl RST Program only after the city has
adopted a resolution asking California Communities #o offer the CafiforniaFIRST Program within its
boundaries.
E: Program Administration
Califomia Communities will be responsible for implementing the CalifomiaFlRST Program in the County,
including providing assessment administration and issuing the bonds. California Communities has selected
Renewable Funding to administer the CaliforniaFlRST Program. Renewable Funding will review applications
and provide marketing and customer service through it:~ custom websites, email, and toll-free phone
number. California Communities has selected Royal Bank of Canada Capital Markets to serve as the bond
underwriter for the CalifomiaFIRST Program.
The California Center for Sustainable Energy (GCSE} ~:nd EcoMotion are program partners. They are
participating in program design and will be involved in F~roviding services to some communities. Other
program partners or affiliates may be added. The program's legal counsel includes Jones Hall {bond
counsel to Califomia Communities) and Orrick, Nerring~on & Sutcliffe LLP (issuer's counsel and disclosure
counsel to California Communities).
II. Duration
The CaliforniaFIRST Program will continue as long as there is sufficient demand.
III. Program i2equirements
This Program Report identifies the CalifomiaFlRST Program requirements relating #o the types of
improvements that can be financed under the Califomic~FIRST Program (including the required "loading
order"}, eligible properties and financing parameters. Additional requirements are set forth in the
CaliforniaFIRST Program Terms, which are attached a;; Exhibit C.
A, Authorized Improvements
The CalifomiaFIRST Program offers financing of the in:;tallation of those distributed generation renewable
energy sources, energy efficiency and water efficiency improvements fisted on Exhibit D (the "Authorized
Improvements"). [n the pilot stage of the CaliforniaFIRST Program, water efficiency measures are ineligible
for financing.
Property owners are responsible for the Authorized Improvements installed on their property. Property
owners must address performance and other system-related issues directly with the installer according to
the terms of the contract with the installer. The CaliforniaFlRST Program is a financing program only.
~1-23
Neither Califomia Communities nor the administrator is responsible for the system or its performance.
B. loading Order Process
Based on guidelines established by the Califomia Energy Commission (the "CEC' as part of its competitive
grant program, authorized energy efficiency measures from an approved list or recommended by an energy
audit must be installed before or contemporaneously with renewable energy improvements to be eligible for
financing under the CalifomiaFlRST Program. The CaliforniaFIRST Program will comply with all state and
federal requirements for loading order.
Due to the need for additional market development to meet demand, there are two pathways to meet the
loading order requirement. First, a property owner can obtain a whole house energy audit by a Building
Performance Institute' {"BPI"), Home Performance with Energy Start ("HPwES"} or Nome Energy Rating
System3 {"HERS") II rater. Energy efficiency measures can be implemented based on the outcome of the
audit. Second, a property owner may install a basic package of standard energy efficiency measures. This
"prescriptive path" would include measures such as air sealing, attic and water heater insulation. This
second pathway is currently under development by the CEC and California Public Utilities Commission (the
"CPUC") and is scheduled to be completed by the CalifomiaFIRST program launch.
C. (duality Assurance
Renewable Energy; Energy Efficiency. The CaliforniaFIRST Program will use the quality assurance
protocols of existing renewable energy programs and pending energy efficiency programs as the basic
platform for its quality assurance and quality control, and adjust requirements as necessary to remain
compliant with state and federal requirements. The CaliforniaFlRST Program will not provide quality
assurance beyond the third party services described below.
Until otherwise indicated by the standards of a CPUC statewide rebate program, energy efficiency projects
will be subject to one of two levels of review depending on whe#her the project falls under an existing
certification program or if the projecf is completed without contractor certification.
5% of projects reviewed by BPf, HPwES and HERS II raters wil[ be subject to field inspection and
review as part of existing programs and carried out by the California Building Performance
Contractors Association (CBPGA}.
15% of projects undertaken by licensed contractors that do not have BPI, HPwES or HERSII
certification, and are installing the prescriptive package, will be subject to field inspection and
review by CBPCA, and the contractors will be required to become BPI certified by 01/01/11. These
projects are subjec# to an additional administrative fee to cover the cost of the quality assurance
inspection. This cos# is explained in the Administrative Fees section of this Program Report.
Approximately 14% of solar photovoltaic ("PV") and solar water heating ("SWH") projects will be subject to
field inspection and review within the California Solar Initiative {°CSI") program.
Water Efficiency. A quality assurance procedure for water efficiency installations is currently under
development.
Subject to Change. All quality assurance and quality control procedures are subject to review and
' BPI is a global organization that supports the building performance industry through individual and
organizational credentialing and a rigorous quality assurance program. More information on BPI is available
here: http://www.bpi.org/
2 HPwES is a national program from the U.S. Environmental Protection Agency and U.S. Department of
Energy, which offers a comprehensive, whole-house approach to improving energy efficiency and comfort at
home. More information on HPwES is available at the following Link,
http://www.energystar.gov/index.cfm?c=home_improvement. hm_improvement_hpwes
s A HERS I I rater is part of the Home Energy Rating System Program, developed by the CEC The CEC
developed the program "to provide reliable information to differentiate the energy efficiency levels among
Califomia homes and to guide investment in cost-effective home energy efficiency measures". More
information on HERS is available at http://www.energy.ca.gov/HERS/.
~1 - 24
adjustment based on applicable state and federal standards.
D. Property Eli~ikajlity ~t'iteria
in order to receive #inancing #rom the CalifomiaFIRST Program, a property must meet the following
requirements:
a. The property to be improved with the Authorized Improvements (the "subject property")
must be located in the boundaries of the CalifomiaFIRST Program. ff a property is located
in the unincorporated territory of the +:.ounty, then it is eligible to participate. if a property is
located in a city's incorporated territory within the County, a property may participate in the
CaliforniaFIRST Program only after tl~e city has adopted a resolution asking California
Communities to offer the CalifomiaFERST Program within its boundaries.
b. The subject property may be used for residential, commercial or industrial purposes. If the
subject property is used for residenti~~l purposes, the property owner(s) da not have to
occupy the subject property as their f~rimary residence.
c. The contractual assessments levied pursuant to an Assessment Contract will constitute a
senior lien on the related property, which means pre-existing private liens, such as
purchase money mortgages, will be :subordinate to the contractual assessment Tien.
Owners of residential properties (including owners of individual condominiums and
townhouses} must, at a minimum, notify their pre-existing private lenders in writing of the
proposed contractual assessment lien, unless otherwise provided by applicable law.
Owners of residential properties will tie required to obtain the consent of their lenders if
their mortgage documents required consent. Owners of properties that are not residential
properties (which may include owners of multi-unit residential properties) must receive
written consent from their pre-existing private lenders. Property owners are responsible for
complying with consent if it is require~~ by the mortgage documents. Cali#omia
Communities will provide property o~n+ners with lender notification and consent forms.
d. Ail owners of the fee simple title to this subject property must sign the Program
Documents, as described in the Califi~rniaFIRST Program Terms. Therefore, before
submitting an initial application, appli~;ants must ensure that all owners of the fee simple
title to the subject property wish to participate in the Program on the terms set forth in the
CalifomiaFIRST Program Terrrts.
e. All participating properties will be required to meet local, state and federal program
requirements and guidelines, including those described in "Loading Order Process" above.
f. Califomia Communities reserves the right to waive the energy efficiency audit requirement
for buildings seeking water efficiency improvements only. However, such projects may be
required to provide similar audit or project technical analysis documentation in order to
veri#y the expected benefits of the project.
g. Property owners will be required to participate in appropriate state incentive programs.
For example, property owners planning to finance the installation of a solar PV system will
be required to participate in the CSI program with respect to the subject property.
Property owners will also be required to participate in similar incentive programs for solar
thermal (hot water) systems and home energy efficiency retrofits.
h. The property owners(s} must agree to participate in surreys and CalifomiaFIRST Program
evaluations directed by Califomia Communities. In addition, property owners will be
required to sign a waiver allowing the CalifomiaFIRST Program to collect utility usage data
as appropriate to comply with state and federal reporting standards.
i. The property owner is highly encouraged to participate in a workshop about or on-line
review of the CalifomiaFIRST Program before deciding whether to participate. All
property owners will be required to read and acknowledge their agreement to the
CalifomiaFIRST Program Terms before applying.
k. Califomia Communities will review all applications to ensure that the proposed Authorized
~1 - 25
Improvements, the subject property, the property owners and the contractors meet
CalifomiaFIRST eligibility requirements. At the completion of installation of the Authorized
Improvements, property owners will be required to submit a set of project verification
documents. Verification forms may include but are not limited to a customer sign-off form,
final invoices from contractor(s), building permit(s), and rebate documents before
financing is available. Details on the ver'rfication documents can be found in the
CalifomiaFlRST Program Terms.
i. The property owner(s) must not have declared bankruptcy in the past 7 years.
The property owners must be current in the payment of all obligations secured by the
subject property, including property taxes, assessments and tax liens, within the past 3 .
years (or since ownership commenced, if it has been less than 3 years). California
Communities may review public records, including the County real property records, to
verify compliance with this requirement. Certain allowances may be made for property tax
payment delays that do not reflect financial distress. Commercial properties that are
currently appealing a property tax assessment will be reviewed and eligibility will be
determined on a case-by-case basis.
k. There must be no notices of default or foreclosure filed against the subject property within
the last 5 years (or since ownership commenced, if less than 5 years). California
Communities reserves the right to deny a reservation and a request for funding to a
property owner if any other property it owns has been subject to foreclosure in the past 5
years. Flowever, a property with a notice of default or foreclosure may be allowed to
participate in the CalifomiaFIRST Program if it receives consent from the property's
current lender(s).
The property owners must not have involuntary liens other than a tax or assessment lien
with respect to which the property owner is current in payment, defaults or judgments
applicable to the subject property in excess of $500. California Communities may review
public records, including the county real property records and court documents, to verify
compliance with this requirement. A property owner with an involuntary lien of greater
than $500 may be allowed to participate in the CalifomiaFERST Program if it can
demonstrate an acceptable reason for the lien, default or judgment and a path for
resolution. A commercial property with an involuntary tenant's lien will be reviewed and
eligibility will be determined on a case-by-case basis.
m. The "private loan to value ratio" must be 80% or less based on (i) private property debt
including mortgages and (ii) the assessed value of the property and/or the average market
value of comparable properties. If the private loan to value ratio is only met with respect to
the assessed value or the average market value of comparable properties, but not both,
California Communities may request additional information before ruling on the
application. if the title search does not provide adequate information to calculate the
private loan to value ratio, the property owner will also be asked to provide a current
mortgage statement reflecting the outstanding balance and any payment delinquencies.
Lender consent to participation can allow for waiver of the private laan to value ratio
requirement. This ratio may be adjusted in order to comply with state and federal
requirements.
n. The "public loan to value ratio' must be 10% or Tess based on {i) the CaliforniaFIRST
assessment and overlapping special assessments and special tax debt and (ii) the
assessed value of the property and average market value of comparable properties. If the
public loan to value ratio is only met with respect #o the assessed value or the average
market value of comparable properties, but not both, California Communities may request
additional information before ruling on the application.
o. Because the CalifomiaFIRST Program involves issuance of bonds by California
Communities, Cali#omia Communities is concerned that property owners who participate
in the program will pay their assessments in full on a timely basis. Therefore, California
Communities reserves the right to request additional information.
~1 - 26
E. i:iigibie Gists
The CalifomiaF[RST program may finance the costs of installing Authorized Improvements, audit costs and
application fees. All local and state rebates must be deducted from the financed amount prior to approval.
The federal Income Tax Credit value may be included in the financed amount.
~~. Eiigii~i!e Cantr~ctors
Contractor eligibility is being standardized throughout t1~e country, and the CalifomiaFIRST Program will
comply with applicable state and federal laws.
Renewable Energy; Energy Efficiency. The Californi:~FIRST Program requires contractors installing
energy efficiency measures to meet the eligibility requirements of the pending CPUC statewide energy .
efficiency rebate program. The current draft requirements include BPI certification, HPwES certification,
and/or a HERS II rating.
Contractors installing solar PV and/or SWH must meet the eligibility requirements of the CSI. Other
renewable energy technologies must be installed by lic~ansed contractors who qualify for other state rebate
programs such as the Self Generation Incentive Program and/or Emerging Renewables Program.
Water Efficiency. The CaliforniaFIRST Program is cur~ently developing the eligibility cri#eria for contractors
installing water conservation measures. At a minimum, contractors must be properly licensed and abide by
the codes and standards of the local building department.
IV. ~6nancErtg of the Caiifornia~f~ST Program
A. ~~iinir~lurr- and (Viaxil~urn Financing Arn~unts
Maxfmum Financing Amount for the CalitorniaFlRSTPtogram. The maximum aggregate dollar amount
of the principal component of contractual assessments to be levied under the CaliforniaFIRST Program for
the County is $1 billion.
Minimum Financing Amount for each Property. The minimum installation cost that can be financed is
$5,000.
Residential Properties. Residential properties are eligible for financing up to the lesser of (i} $75,000 or (ii)
10% of the assessed and/or market value of the property. For this purpose, residential properties include
detached single-family homes, duplexes, triplexes, qua~jplexes, townhouses, twin homes, and mufti-family
and tenancy in common properties with up to four units.
Non-residential Propert/es. Non-residential properties are eligible for financing up to 10% of the assessed
and/or market value of the property. For this purpose, non-residential properties consist of commercial,
industrial, large multi-family, community facilities, and non-profit-owned properties. Large multi-family
properties are defined as those that contain five or morE; units.
6. Financing Structure
Califomia Communities will finance the installation of Authorized Improvements using three different
financing structures at the County level, as described b~alow. In order to provide the lowest possible interest
rates through credit diversification, Califomia Communities will purchase bonds issued for each county's
CaliforniaFIRST program and issue bonds to the public bond market on a statewide basis.
The CalifomiaFIRST Program may utilize three different bond structures to finance the installation of
Authorized Improvements in the County. In all three ca~~es, bonds will be issued to finance the installation of
Authorized Improvements for a specific fist of propertie:, in the County and debt service on the bonds will be
secured by and payable from contractual assessments paid by participating properties in the County. The
interest rate on bonds issued for the CalifomiaFIRST Program will be reflected in the amount of the
~1 - 27
contractual assessments paid by property owners.
Microbonds: "Micro-bonds" are bonds issued to finance the installation of Authorized Improvements
for one or a limited number of properties. These bonds will be purchased by Renewable Funding
and will be remarketed by RBC Capital Markets to the public bond market when a significant
number of micro-bonds have been issued. The interest rate on micro-bonds will be set daily or
weekly. The interest rate on bonds issued for the CaliforniaFIRST Program will be reflected in the
amount of the contractual assessments paid by property owners, and, with micro-bonds, the ,
contractual assessments will be fixed for the duration of the repayment period in the Assessment
Contract. Property owners may drop out of the program up to the time the lien is placed on the
home without penalty beyond the cost of the application fee.
Pooled bond.- °Pooled bonds" are bonds issued to finance the installation of Authorized
Improvements for a large group of properties. Pooled bonds will be sold to the market on a
quarterly or more frequent basis depending upon the demand for financing by property owners in
the County. In order to facilitate pooled bond financings, Assessment Contracts will be signed by
property owners prior to issuance of the pooled bonds. The contractual assessments will reflect a
not-to-exceed interest rate on the pooled bonds. No bonds wilE be issued if the not to exceed
interest rate would be exceeded. If a property owner withdraws from the CalifomiaFlRST program
after the Assessment Contract has been signed and/or pooled bonds have bean issued, the
property owner must pay the costs associated with removing the lien, including the administrative,
financing, and pre-payment costs.
- Sfand-Alone: Large commercial projects may be eligible for astand-atone bond issuance
dependent on the size and type of project. Banks and other financing partners may be utilized to
provide funding for these projects. Under this approach, California Communities will issue a bond
and the bank or other financing partner wil( purchase the bond.
In the pilot stage of the CalifomiaFlRST program, it is anticipated that both residential and non-residential
properties will utilize the pooled bond approach.
C. Fjnancing Process
The process for property owners to receive financing through the CalifomiaFIRST Program is designed to be
straightforward.
• Education. Property owners visit the dedicated website to: learn about the program, the financing
terms and other details; read the terms and conditions; and find approved contractors and
improvements. Property owners must determine that they will meet the eligibility requirements.
• Application. Property owners apply on-line for a funding reservation from the CaliforniaFIRST
Program and pay anon-refundable application fee. Applications will include a proposed project and
contractor bid. Property owners must electronically agree to the CaliforniaFIRST Program Terms
as part of the application.
• Review and Approval. California Communities performs title work to confirm ownership, screens
for unpaid taxes or other delinquent property-based debt, applies loan-to-value metrics, and
evaluates the proposed project. California Communities will approve an application only after
confirming that the property meets the underwriting criteria, loading order process, and other
CaliforniaFIRST Program requirements.
• Reservation. If their application is approved, property owners then receive a reservation for
funding. In a micro-bond approach, the property owner then proceeds with installation of the
Authorized Improvements and requests funding when the property has met all the applicable
requirements for funding. The property owner will sign the Assessment Contract and the lien of the
contractual assessment will be placed on the property ai this time. In a pooled bond approach,
property owners sign the Assessment Contract and the lien of the contractual assessment will be
placed on the property when the funding reservation is approved. However, property owners must
wait to receive a Notice to Proceed before beginning the work on their property in order to make
certain bond issuance is successful. Property owners have at least six months after receiving the
Notice to Proceed to install their renewable energy, energy efficiency or water efficiency
~1 - 28
improvements and return to the website to recuest payment. Residential properties are eligible for
reservation extensions. The fee for reservation extension will be defined in the CaliforniaFIRST
Program Terms.
• Installation. A qualified installer must compie~:e the installation of Authorized Improvements on the
property. See "Eligible Contractors" above.
• Evidence of Compliance; Funding. After this property owner has provided all required
documentation and met all applicable CaliforniaFIRST Program requirements, California
Communities will release funds to the propert}~ owner. The property owner must make a funding
request and submit all required documents within a minimum of 180 days of application approval
for residential projects and within the determined reservation period set at application approval for
non-residential projects.
• Repayment. The property owner will be expected to pay the contractual assessment installments
in the amounts and at the times specified in the Assessment Contract.
Applications from property owners for financing will be considered based on a first-come-first-served basis
If a request from a property owner for financing would cause the CaliforniaFIRST Program to exceed the
authorized amount, then the last property that caused tl~e authorization amount to be exceeded will be
ineligible for financing. All applications receive a time stamp in order to allow for first-come-first-served
priority.
Market conditions will determine the interest rate on bonds issued to finance the CaliforniaFIRS7 Program
E. ~c~lxtEnest`t'at€ve Casts
The costs of administering the CaliforniaFIRST Program will be financed through city/county set-up fees,
participant application fees, and an administrative comF~onent of the contractual assessment installments.
Application fees for property owners will not exceed $300. On-going administrative fees will not result in an
increase to the aggregate interest rate reflecfed in the contractual assessment installments of more than 1 %.
Energy efficiency improvements installed by a contractor without BPI or HPwES certification and without a
HERS I! evaluation wilt be subject to an additional fee to cover increased quality assurance requirements.
The anticipated fee for an energy efficiency improvement installed without BPI, HPwE5 or HERS Il will not
exceed $100.
The fee charged by the County far the collection of the ~:ontractuaf assessment installments on the County
property tax bill and the cost of recording the various notices in the real property records will be included in
each property's contractual assessment. California Communities has consulted with the County and
determined that the fee charged by the County for the collection of the contractual assessment installments
on the County property tax bill will not exceed 3% of ea~:h annual installment.
F, C)thet• F6nartce~ amounts
The costs of issuing bonds will be financed through the contractual assessments. California Communities
estimates that the costs of issuance will not exceed 5% of the cost of installing the Authorized
Improvements.
The contractual assessments may also finance a debt service reserve fund to pay debt service on the bonds
in the event of contractual assessment installment delinquencies. Debt service reserve funds will typically
be equal to approximately 10% of the principal componf3nt of the contractual assessment.
In addition, because there is a July 1 deadline for p{acing the contractual assessments on the County
property tax bilE, contractual assessments may also finance the first year's installments if the deadline cannot
be met.
,at -29
G. Prepayment
The assessment may be prepaid, in whole or in part, at any time upon the payment of the unpaid principal
component of the assessment, the accrued but unpaid interest component of the assessment through the
prepayment date and a prepayment premium in the amount set forth in the Assessment Contract. The
premium may vary based upon the timing of the prepayment.
V. Rublic Agency official
California Communities will, from time to time, authorize certain representatives to execute Assessment
Contracts on its behalf; the current authorized representative is:
Name: Daniel B. Harrison
Title: Administrative Director
Phone: 916 658-8267
Email: dharrisonC~cacities.or
Address: 1400 K Street, Suite 400
Sacramento, CA 95814
Vi. Changes to the Report
California Communities may make changes to this Report and the CaliforniaFIRST Program documents
from time to time in its absolute discretion. No such changes will affect the amounts payable by a property
owner under an existing Assessment Contract.
V[I. Appendices and Exhibits
Exhibit A: Assessment Contract -Agreement to Pay Assessment and Finance Improvements
Exhibit B: Boundary Map -Territory of contractual assessments {not included)
Exhibit C: Draft Cali#omiaFIRST Program Terms (not included)
Exhibit D: Draft CalifomiaFIRST Program Authorized Improvements
1~1-30
ExHIBTrrs
BEGIN
HERE
From: Erin Cooke
Sent: Tuesday, January 19, 2010 1:37 F'M
To: City Council
Cc: City Clerk
Subject- Council Agenda Item 21 -Additional Appendices
Attachments- 1-4-10 California FIRST Form Con-tract X.doc; 12-20-09 CaliforniaFIRST Measures List.xls
Per Council request, please find the following additional appendices referenced in the California First Program Report as
included for agenda item #21:
1. Assessment Contract (attached)
2. Boundary map (not attached, simply the county boundary-
3. Program Terms (not attached, still in draft form -though defined by the program summary and legal language
already outlined in the document/resolutions)
4. Authorized Improvements (attached)
Please note that all documents remain in draft form until apF~roved by the California Statewide Communities
Development Authority Board on March 10tH
Thank you.
1=.rin ~L (:Doke.
1._•:nvironmental Affairs Coordinator
Ciry of C;uperrino
10300 '~I'oxre Avenue
Cupertino, C.A 95014
phone: 408.?77.?G03
fax: 408. i'^.336ti
email exincCti,-a_upert nc~.or};;
or: sustainabilit~t~cupertmo.or
w cb: i;_~~~~-.cit}~crtixio,or~;
9 ~„ Z~hink. befare_ yviu ptzut. "[ hr average (.'..5. of/ice rmp/o}'r~ uses t O.OpO .+heets aJ~f~af,er fir year.
It ta,(z~:r nne tree so unrk-,e J,OFJO ,rbr. els of/,ape>: 10_/err•er fiages/meek-../emph~yee --~ i679 trer.r .raved.
]~iru are the Z>r~erea~~e - I:ejuse, Deduce, Rey-i.•-~, IZety~tr.
I Jones Hall Draft 1-4-10
AGREEMENT TO PAY ASSESSMENT AND FINANCE IMPROVEMENTS
CALIFORNIA STATEWIDE COMMUNIITIES DEVELOPMENT AUTHORITY
CALIFORNIIAFIRST
(COUNTY OF' 1
This AGREEMENT TO PAY ASSESSMENT AND FINANCE IMPROVEMENTS (this
"Agreement") is made and entered into as of this: day of 20_, by and between
the California Statewide Communities Development Authority, a joint exercise of powers
authority (the "Authority"), and the record ownf;r(s) (the "Property Owner") of the fee title to
the real property identified on Exhibit A (the "Property").
RECITALS
WHEREAS, the Authority is a joint exercise of powers authority the members of which
include numerous cities and counties in the State: of California; and
WHEREAS, the Authority has established the CaliforniaFIRST program (the
"CaliforniaFIRST Program") to allow the financing of certain renewable energy, energy
efficiency and water efficiency improvements than are permanently fixed to real property (the
"Authorized 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 under the Improvement Bond Act of 1915 (Streets and Highways Code
Sections 8500 and following) (the "1915 AcY') uF~on the security of the unpaid contractual
assessments; and
WHEREAS, Chapter 29 provides that as~:essments 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 pursuant to a contract between the property owner
and the public agency; and
WHEREAS, the Authority has conducted the proceedings required by Chapter 29 with
respect to the territory within the boundaries of the County of (the "County"); and
WHEREAS, the Property is located in the; boundaries of [the City of (the
"City")][the County], and the [City/County] has consented to (i) owners of property within its
jurisdiction (the "Participating Property Owners") participating in the CaliforniaFIRST Program
and (ii) the Authority conducting assessment pr~~ceedings under Chapter 29 and issuing bonds
under the 1915 Act to finance the Authorized Irriprovements; and
WHEREAS, pursuant to Chapter 29, the Authority and the Property Owner wish to enter
into a contract pursuant to which the Property Owner would agree to pay an assessment in
order to finance the installation on the Property of the Authorized Improvements described in
Exhibit B (the "Improvements") and the Authority would agree to provide financing, all on the
terms set forth in this Agreement;
,~~,~~_~
:lE~r~~s##a!#,-A-RrF>f~ssi<r~aai-k~tw-('-Ear~xjref iixj-
NOW, THEREFORE, in consideration of the foregoing and the material covenants
hereinafter contained, the Property Owner and th~~ Authority formally covenant, agree and bind
themselves and their successors and assigns as Follows:
AGREEME=NT
Section 1. Purpose. The Property O~nrner and the Authority are entering into this
Agreement for the purpose of financing the installation of the Improvements identified on Exhibit
B on the Property.
Section 2. The Property. This Agreerrient relates to the real property identified on
Exhibit A. The Property Owner has supplied to the Authority current evidence of its ownership of
fee title to the Property and possesses all legal authority necessary to execute this Agreement
on behalf of the Property Owner.
Section 3. Agreement to Pav Assessrnent~ Prepavment~ Non-Completion
Assessment.
(a) Payment of Initial Assessment. Thie Property Owner hereby freely and willingly
agrees to pay the initial assessment set forth on Exhibit C (the "Initial Assessment"). Except as
otherwise set forth in this Agreement, the Initial f~ssessment will be paid in the installments set
forth on Exhibit C.
(b) Payment of Non-Completion Assessment. The Property Owner hereby freely and
willingly agrees to pay the additional assessment (the "Non-Completion Assessment";
s.-;~,^.~) identified on Exhibit A in the event that,
following issuance of bonds by the Authority to finance installation of the Improvements, the
Property Owner fails to install the Improvements in compliance with the CaliforniaFIRST
Program rules or otherwise fails to meet the conditions established by the Authority for financing
through the CaliforniaFIRST Program. The ProF~erty Owner acknowledges that the purpose of
the Non-Completion Assessment is to provide for redemption of the related bonds. The Property
Owner further acknowledges that the Non-ComK~letion Assessment will be levied in full by the
Authority as set forth in Section 5898.30 of Chapter 29 in the first fiscal year in which the
Authority is able to cause the Non-Completion Assessment to be placed on the County property
tax roll.
(d) Prepayment of the Assessment. The Assessment may be prepaid, in whole or in
part, at any time upon the payment of (a) the whole or a portion of the unpaid principal
component of the Assessment, (b) the accrued but unpaid interest component of the whole or
applicable portion of the unpaid principal component of the Assessment through the prepayment
date, (c) a prepayment premium in the amount set forth on Exhibit A and (d) the reasonable
costs of the Authority related to such prepayment.
(d) Absolute Obligation. The Property Owner hereby agrees that the Assessment will
not be subject to reduction, offset or credit of any kind in the event that the bonds secured
thereby are refunded or for any other reason.
Section 4. Collection of Assessment; Dien. The Assessment, and the interest and
penalties thereon as a result of a delinquency in the payment of any installment of the
Assessment, shall constitute a lien against the Property until they are paid and shall be
collected and shall have the lien priority as set forth in Chapter 29.
The Property Owner acknowledges that if any Assessment installment is not paid when
due, the Authority has the right to have the delinquent installment and its associated penalties
and interest stripped off the secured property tax roll and immediately enforced through a
judicial foreclosure action that could result in a sale of the Property for the payment of the
delinquent installments, associated penalties and interest, and all costs of suit, including
attorneys' fees. The Property Owner acknowledges that, if bonds are sold to finance the
Improvements, the Authority may obligate itself, through a covenant with the owners of the
bonds, to exercise its foreclosure rights with res~~ect to delinquent Assessment installments
under specified circumstances.
Section 5. Financing of the Improverrients.
(a) Agreement to Finance Imoroveme:nts. The Authority hereby agrees to use the
Assessment to finance the Improvements, including the payment of the Authority's reasonable
costs of administering the CaliforniaFIRST Program.
(b) Assessment Installments. The Property Owner agrees to the issuance of bonds
by the Authority to finance the installation of the Improvements. The interest rate used to
calculate the Initial Assessment installments set forth on Exhibit C is identified on Exhibit A. If
the Authority determines in its reasonable discretion that the Initial Assessment installments
may be reduced because the applicable interest rate on the bonds issued to finance installation
of the Improvements is lower than the interest r2ite specified in Exhibit A, then the Authority may
substitute a revised Exhibit C for the attached E;chibit C, shall provide a copy of such revised
Exhibit C to the Property Owner and shall cause a notice of such revision to be recorded in the
office of the County Recorder.
Section 6. Term Agreement Runs with the Land.
(a) Except as otherwise set forth in this Agreement, this Agreement shall expire
upon the final payment or prepayment of the Assessment.
(b) This Agreement establishes rights and obligations that are for the benefit of the
Property and therefore such rights and obligations run with the land pursuant to Civil Code
Section 1462.
Section 7. Recordation of Documents. The Property Owner hereby authorizes and
directs the Authority to cause to be recorded in the office of the County Recorder the various
notices and other documents required by Chapl:er 29 and other applicable laws to be recorded
against the Property.
Section 8. Notice. To the extent req~~ired by applicable law, the Property Owner
hereby agrees to provide written notice to any scubsequent purchaser of the Property of the
obligation to pay the Assessment pursuant to this Agreement.
Section 9. Waivers Acknowledcgment and Agreement. Because this Agreement
reflects the Property Owner's free and willing consent to pay the Assessment following a noticed
public hearina the Property Owner hereby waiver any otherwise applicable requirements of
Article XIIID of the California Constitution or any other provision of California law for an
engineer's report notice public hearing. protest or ballot.
The Property Owner hereby waives its right to repeal the Assessment by initiative or any
other action, or to file any lawsuit or other proceeding to challenge the Assessment or any
aspect of the proceedings of the Authority undertaken in connection with the CaliforniaFIRST
Program. The Property Owner hereby agrees that the Property Owner and its successors in
interest to fee title in the Property shall be solely responsible for the installation, operation and
maintenance of the Improvements. The Property Owner hereby acknowledges that the Property
will be responsible for payment of the Assessment regardless of whether the Improvements are
properly installed, operated or maintained as expected.
The Property Owner hereby agrees that tlhe Authority is entering into this Agreement
solely for the purpose of assisting the Property Owner with the financing of the installation of the
Improvements, and that the Authority and [the City/County] have no responsibility of any kind
for, and shall have no liability arising out of, the installation, operation, financing, refinancing or
maintenance of the Improvements. Based upon the foregoing, the Property Owner hereby
waives the right to recover from and fully and irrevocably releases the Authority, the
[City/County] and any and all agents, employees, attorneys, representatives and successors
and assigns of the Authority and the [City/Count~i] from any and all losses, liabilities, claims,
damages (including consequential damages), penalties, fines, forfeitures, costs and expenses
(including all reasonable out-of-pocket litigation costs and reasonable attorney's fees), relating
to the subject matter of this Agreement that the Property Owner may now have or hereafter
acquire against the Authority, the [City/County] and any and all agents, employees, attorneys,
representatives and successors and assigns of the Authority or the [City/County].
To the extent that the foregoing waivers :and agreements are subject to Section 1542 of
the California Civil Code or similar provisions of ether applicable law, it is the intention of the
Property Owner that the foregoing waivers and ~igreements will be effective as a bar to any and
all losses, liabilities, claims, damages (including consequential damages), penalties, fines,
forfeitures, costs and expenses (including all reasonable out-of-pocket litigation costs and
reasonable attorney's fees), of whatever character, nature and kind, known or unknown,
suspected or unsuspected, and Property Owner agrees to waive any and all rights and benefits
conferred upon the Property Owner by the provisions of Section 1542 of the California Civil
Code or similar provisions of applicable law. Section 1542 reads as follows:
"A GENERAL RELEASE DOES NOT E~c:TEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SU:iPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY
HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR."
By initialing below, the Property Owner ~igrees to waive the provisions of Section 1542 in
connection with the matters that are the subject of the foregoing waivers and releases.
Property Owner's Initials:
The waivers, releases and agreements :>et forth in this Section 9 shall survive
termination of this Agreement.
Section 10. Indemnification. The Property Owner agrees to indemnify, defend,
protect, and hold harmless the Authority, the [City/County] and any and all agents, employees,
attorneys, representatives and successors and assigns of the Authority or the [City/County],
from and against all losses, liabilities, claims, damages (including consequential damages),
penalties, fines, forfeitures, costs and expenses (including all reasonable out-of-pocket litigation
costs and reasonable attorney's fees) and any demands of any nature whatsoever related
directly or indirectly to, or arising out of or in connection with, (i) the Assessment, (ii) the
financing by the Authority of the Improvements, (iii) the Improvements, (iv) or any other fact,
circumstance or event related to the subject matter of this Agreement, regardless of whether
such losses, liabilities, claims, damages (including consequential damages), penalties, fines,
forfeitures, costs and expenses (including all reasonable out-of-pocket litigation costs and
reasonable attorney's fees) accrue before or after the date of this Agreement.
The provisions of this Section 1 O shall survive the termination of this Agreement.
Section 11. Right to Inspect Property The Property Owner hereby grants the
relating to the Improvements.
Section 12 Carbon Credits. The ProG~erty Owner hereby agrees that any carbon
credits attributable to the Improvements shall be owned by the Authority-
Section 13. Amendment. Except as sett forth in Section 5(b), this Agreement may be
modified only by the written agreement of the Authority and the Property Owner.
Section X14. Bindino Effect Assignment. This Agreement inures to the benefit of and is
binding upon the Authority, the Property Owner and their respective successors and assigns.
The Authority has the right to assign any or all of its rights and obligations under this
Agreement without the consent of the Property Owner. The obligation to pay the Assessment
set forth in this Agreement is an obligation of the: Property and no agreement or action of the
Property Owner will be competent to impair in any way the Authority's rights, including, but not
limited to, the right to pursue judicial foreclosure of the Assessment lien or the right to enforce
the collection of the Assessment or any installment thereof against the Property.
Section 1.315. Exhibits. The Exhibits to this Agreement are incorporated into this
Agreement by this reference as if set forth in their entirety in this Agreement.
Section 1416. Severability. If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, such holding will not invalidate or render
unenforceable any other provision of this Agreement.
Section 1-617. Corrective Instruments. l'he Authority and the Property Owner agree that
they will, from time to time, execute, acknowledge and deliver, or cause to be executed,
acknowledged and delivered, such supplements hereto and such further instruments as may
reasonably be required in order to carry out out. the expressed intention of this Agreement.
Section X518. Governing Law; Venue. This Agreement is governed by and construed in
accordance with the laws of the State of California. Any legal action brought under this
Agreement must be instituted in the Superior Court of the County of Sacramento, State of
California; provided, however, actions to foreclose delinquent installments of the Assessment
will be instituted in the superior court of the County or as otherwise provided by law.
Section X19. Counteroarts. This Agreerrient may be executed in several counterparts,
each of which is an original and all of which constitutes one and the same instrument.
IN WITNESS WHEREOF, the Authority and the Property Owner have caused this
Agreement to be executed in their respective names by their duly authorized representatives, all
as of the date first above written.
CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY
By:
Its:
The following are the authorized signatories of the Property Owner:
Name: Name:
By: BY=
Its: Its:
Name: Name:
By: BY~
Its: Its:
EXHIBtIT A
Agreement Number:
Property Owner:
Property (APN/Legal Description):
Prepayment Premium:
Interest Rate Used to Calculate Initial Assessment Installments (prior to issuance of Bonds):_
Non-Completion Assessment: An amount equal t:o % of the Initial Assessment identified on
Exhibit C
A-1
EXHIBtIT C
SCHEDULE OF INITIAL ASST=SSMENT INSTALLMENTS
Fiscal Administrative Total
Year Princi al a Intere;;t b Ex enses c a + b + c
I Total Initial Assessment: $
" Subject to increase pursuant to Section 3(c) of the Agreement.
c-i
CaliforniaFIRST Current Approved Measures
with the Corresponding SEP, DEER, FEMP and Tax Credit Measures
Air Filtration FEMP
Air Sealing Tier 2
Air Barriers Tier 2
Air Sealing and Bathroom fan FEMP
Ventilation Ceiling fan FEMP
Crawlspace Sealing Tier z
Duct Sealing and Cleaning Tier 2
Whole House Fan DEER
ROOF DEER
Attic Tier 2
Duct DEER
Insulation Floor Tier 2
Hot Water System DEER
Wall Tier 2
Cogeneration furnace Federal Tax Credit
Demand Recirculation I?Ump DEER
Duct Replacement Tier ~
c~i Ducted Heat Pump DEER
a~i
. Evaporative coolers DEER
~
Exhaust Fan
FEMP
~. Space Heating and Geothermal Heat Pump FEMP
~iD
d Cooling Heat Recovery Ventilation System DEER
,~, High Efficiency Air Con~~itioner Tier 2
High Efficiency Furnace' DEER
Radiant Barrier Installation Tier 2
Solar Space Heating Federal Tax Credit
Thermostat Installation DEER
Weatherization DEER
High Efficiency Hot Water Boiler Install DEER
`n~,*eY u~~F:r~ High Efficiency Water Heater Install Tier 2
vvoic~ ~ ico u~~g
Water Heater - Tankles<:
DEER
On demand Recirculation Pump DEER
High Efficiency Lighting Retrofit DEER
Lighting Lighting (hard wired) DEER
Lighting controls, including occupancy Sens DEER
Skylight Federal Tax Credit
WIndOWS, DOOrs
Window Replacement Tier z
and Skylights
Window Film DEER
Reflective Roof White Roofing Tier 2
Pool Equipment High Efficiency Pool Purnp Install DEER
~' Solar Thermal Installation DEER
L Solar Solar PV System Tier 3
d ~
~ Wind Wind Turbine Power Systems Federal Tax Credit
w
o°JC
Fuel Cell
Fuel Cell Power Systems
Federal Tax Credit
Fixtures Low Flow Showerheads Tier 2
Low flow showers Tier z
Toilets: flush a 1.28 gpf or less Tier 2
o Urinals: flushing at O.5 i;pf or less Tier 2
Q-
L Showerheads: flow at 1.5 gpm or less Tier z
°J aerators: flow at 1.0 gpm or less Tier 1
`~ Landscaping Grey water systems
U
~
. Other measures such a:s potable water
~
offsets, efficiency improvements, irrigation
i measures, process improvements and
°'
o Other storm water management improvements Tier 2
c
o
~
shall be considered on <~ case-by-case basis
in consultation with they California FIRST
program.
L C_ f -t`` I --l G
~ .;>~ ~ ~ ~ ~ ~ -~~ ~ 1
Jones Hall Draft 1-4-10
AGREEMENT TO PAY ASSESSMENT AND FINANCE IMPROVEMENTS
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
CALIFORNIIAFIRST
(COUNTY OF )
This AGREEMENT TO PAY ASSESSMENT AND FINANCE IMPROVEMENTS (this
"Agreement") is made and entered into as of this day of 20_, by and between
the California Statewide Communities DeveloF~ment Authority, a joint exercise of powers
authority (the "Authority"), and the record owner(s) (the "Property Owner") of the fee title to
the real property identified on Exhibit A (the "ProK~erty'").
RECITALS
WHEREAS, the Authority is a joint exercise of powers authority the members of which
include numerous cities and counties in the State of California; and
WHEREAS, the Authority has established the CaliforniaFIRST program (the
"CaliforniaFIRST Program") to allow the financing of certain renewable energy, energy
efficiency and water efficiency improvements that. are permanently fixed to real property (the
"Authorized Improvements") through the levy oi` contractual assessments pursuant to Chapter
29 of Division 7 of the Streets & Highways Code ~;"Chapter 29") and the issuance of
improvement bonds under the Improvement Bonci Act of 1915 (Streets and Highways Code
Sections 8500 and following) (the "1915 Act") upon the security of the unpaid contractual
assessments; and
WHEREAS, Chapter 29 provides that ass<~ssments 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 pursuant to a contract between the property owner
and the public agency; and
WHEREAS, the Authority has conducted the proceedings required by Chapter 29 with
respect to the territory within the boundaries of tY~e County of (the "County"); and
WHEREAS, the Property is located in the boundaries of [the City of (the
"City")][the County], and the [City/County] has consented to (i) owners of property within its
jurisdiction (the "Participating Property Owner:>") participating in the CaliforniaFIRST Program
and (ii) the Authority conducting assessment proceedings under Chapter 29 and issuing bonds
under the 1915 Act to finance the Authorized Improvements; and
WHEREAS, pursuant to Chapter 29, the /authority and the Property Owner wish to enter
into a contract pursuant to which the Property O~~vner would agree to pay an assessment in
order to finance the installation on the Property of the Authorized Improvements described in
Exhibit B (the "Improvements") and the Authority would agree to provide financing, all on the
terms set forth in this Agreement;
NOW, THEREFORE, in consideration of thf~ foregoing and the material covenants
hereinafter contained, the Property Owner and they Authority formally covenant, agree and bind
themselves and their successors and assigns as follows:
AGREEMENT
Section 1. Purpose. The Property Owner and the Authority are entering into this
Agreement for the purpose of financing the installation of the Improvements identified on Exhibit
B on the Property.
Section 2. The Property. This Agreement relates to the real property identified on
Exhibit A. The Property Owner has supplied to they Authority current evidence of its ownership of
fee title to the Property and possesses all legal authority necessary to execute this Agreement
on behalf of the Property Owner.
Section 3. Agreement to Pay Assessn-ient~ Prepayment; Non-Completion
Assessment.
(a) Payment of Initial Assessment. The: Property Owner hereby freely and willingly
agrees to pay the initial assessment set forth on Exhibit C (the "Initial Assessment"). Except as
otherwise set forth in this Agreement, the Initial A:~sessment will be paid in the installments set
forth on Exhibit C.
(b) Payment of Non-Completion Asse;>sment. The Property Owner hereby freely and
willingly agrees to pay the additional assessment (the "Non-Completion Assessment")
identified on Exhibit A in the event that, following issuance of bonds by the Authority to finance
installation of the Improvements, the Property Owner fails to install the Improvements in
compliance with the CaliforniaFIRST Program rules or otherwise fails to meet the conditions
established by the Authority for financing through the CaliforniaFIRST Program. The Property
Owner acknowledges that the purpose of the None-Completion Assessment is to provide for
redemption of the related bonds. The Property Ovvner further acknowledges that the Non-
Completion Assessment will be levied in full by the Authority as set forth in Section 5898.30 of
Chapter 29 in the first fiscal year in which the Authority is able to cause the Non-Completion
Assessment to be placed on the County property tax roll.
(c) Administrative Expenses. The Property Owner hereby acknowledges that,
pursuant to the 1915 Act, including Sections 868>_(b) and 8682.1 (a), the Authority may add
amounts to an annual installment of the Initial As:>essment in order to pay for the costs of
collecting the Assessment (the "Additional Administrative Assessment"; together with the
Initial Assessment and the Non-Completion Assessment, the "Assessment").
(d) Preoavment of the Assessment. Tl~e Assessment may be prepaid, in whole or in
part, at any time upon the payment of (a) the whole or a portion of the unpaid principal
component of the Assessment, (b) the accrued but unpaid interest component of the whole or
applicable portion of the unpaid principal component of the Assessment through the prepayment
date, (c) a prepayment premium in the amount sett forth on Exhibit A and (d) the reasonable
costs of the Authority related to such prepayment.
(d) Absolute Oblicgation. The Property Owner hereby agrees that the Assessment will
not be subject to reduction, offset or credit of any kind in the event that the bonds secured
thereby are refunded or for any other reason.
Section 4. Collection of Assessment: Lien. The Assessment, and the interest and
penalties thereon as a result of a delinquency in tyre payment of any installment of the
Assessment, shall constitute a lien against the Property until they are paid and shall be
collected and shall have the lien priority as set forth in Chapter 29.
The Property Owner acknowledges that if :any Assessment installment is not paid when
due, the Authority has the right to have the delinquent installment and its associated penalties
and interest stripped off the secured property tax roll and immediately enforced through a
judicial foreclosure action that could result in a sale of the Property for the payment of the
delinquent installments, associated penalties and interest, and all costs of suit, including
attorneys' fees. The Property Owner acknowledges that, if bonds are sold to finance the
Improvements, the Authority may obligate itself, tFrrough a covenant with the owners of the
bonds, to exercise its foreclosure rights with respect to delinquent Assessment installments
under specified circumstances.
Section 5. Financing of the Improvements.
(a) Agreement to Finance Improvements. The Authority hereby agrees to use the
Assessment to finance the Improvements, including the payment of the Authority's reasonable
costs of administering the CaliforniaFIRST Program.
(b) Assessment Installments. The Property Owner agrees to the issuance of bonds
by the Authority to finance the installation of the Irprovements_ The interest rate used to
calculate the Initial Assessment installments set firth on Exhibit C is identified on Exhibit A. If
the Authority determines in its reasonable discretion that the Initial Assessment installments
may be reduced because the applicable interest rate on the bonds issued to finance installation
of the Improvements is lower than the interest rate specified in Exhibit A, then the Authority may
substitute a revised Exhibit C for the attached Exhibit C, shall provide a copy of such revised
Exhibit C to the Property Owner and shall cause :a notice of such revision to be recorded in the
office of the County Recorder.
Section 6. Term: Agreement Runs with the Land.
(a) Except as otherwise set forth in this Agreement, this Agreement shall expire
upon the final payment or prepayment of the Assessment.
(b) This Agreement establishes rights and obligations that are for the benefit of the
Property and, therefore, such rights and obligations run with the land pursuant to Civil Code
Section 1462.
Section 7. Recordation of Documents,. The Property Owner hereby authorizes and
directs the Authority to cause to be recorded in tyre office of the County Recorder the various
notices and other documents required by Chapter 29 and other applicable laws to be recorded
against the Property.
Section 8. Notice. To the extent required by applicable law, the Property Owner
hereby agrees to provide written notice to any subsequent purchaser of the Property of the
obligation to pay the Assessment pursuant to thi:> Agreement.
Section 9. Waivers. Acknowledgment: and Agreement. Because this Agreement
reflects the Property Owner's free and willing consent to pay the Assessment following a noticed
public hearing, the Property Owner hereby waives any otherwise applicable requirements of
Article XIIID of the California Constitution or any other provision of California law for an
engineer's report, notice, public hearing, protest oi- ballot.
The Property Owner hereby waives its right to repeal the Assessment by initiative or any
other action, or to file any lawsuit or other proceecling to challenge the Assessment or any
aspect of the proceedings of the Authority undertaken in connection with the CaliforniaFIRST
Program. The Property Owner hereby agrees that the Property Owner and its successors in
interest to fee title in the Property shall be solely n~sponsible for the installation, operation and
maintenance of the Improvements. The Property Owner hereby acknowledges that the Property
will be responsible for payment of the Assessment regardless of whether the Improvements are
properly installed, operated or maintained as expected.
The Property Owner hereby agrees that the Authority is entering into this Agreement
solely for the purpose of assisting the Property Owner with the financing of the installation of the
Improvements, and that the Authority and [the City/County] have no responsibility of any kind
for, and shall have no liability arising out of, the installation, operation, financing, refinancing or
maintenance of the Improvements. Based upon ttie foregoing, the Property Owner hereby
waives the right to recover from and fully and irrevocably releases the Authority, the
[City/County] and any and all agents, employees, attorneys, representatives and successors
and assigns of the Authority and the [City/County: from any and all losses, liabilities, claims,
damages (including consequential damages), penalties, fines, forfeitures, costs and expenses
(including all reasonable out-of-pocket litigation c~~sts and reasonable attorney's fees), relating
to the subject matter of this Agreement that the Property Owner may now have or hereafter
acquire against the Authority, the [City/County] and any and all agents, employees, attorneys,
representatives and successors and assigns of tF'ie Authority or the (City/County].
To the extent that the foregoing waivers and agreements are subject to Section 1542 of
the California Civil Code or similar provisions of ether applicable law, it is the intention of the
Property Owner that the foregoing waivers and agreements will be effective as a bar to any and
all losses, liabilities, claims, damages (including consequential damages), penalties, fines,
forfeitures, costs and expenses (including all rea:>onable out-of-pocket litigation costs and
reasonable attorney's fees), of whatever character, nature and kind, known or unknown,
suspected or unsuspected, and Property Owner ;agrees to waive any and all rights and benefits
conferred upon the Property Owner by the provisions of Section 1542 of the California Civil
Code or similar provisions of applicable law. Secttion 1542 reads as follows:
"A GENERAL RELEASE DOES NOT EX"TEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING -fHE RELEASE, WHICH IF KNOWN BY
HIM OR HER MUST HAVE MATERIALL`( AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR."
By initialing below, the Property Owner al3rees to waive the provisions of Section 1542 in
connection with the matters that are the subject cif the foregoing waivers and releases.
Property Owner's Initials:
The waivers, releases and agreements set forth in this Section 9 shall survive
termination of this Agreement.
Q
Section 10. Indemnification. The Property Owner agrees to indemnify, defend,
protect, and hold harmless the Authority, the [CitylCounty] and any and all agents, employees,
attorneys, representatives and successors and assigns of the Authority or the [City/County],
from and against all losses, liabilities, claims, damages (including consequential damages),
penalties, fines, forfeitures, costs and expenses (inncluding all reasonable out-of-pocket litigation
costs and reasonable attorney's fees) and any deirands of any nature whatsoever related
directly or indirectly to, or arising out of or in connE;ction with, (i) the Assessment, (ii) the
financing by the Authority of the Improvements, (iii) the Improvements, (iv) or any other fact,
circumstance or event related to the subject matter of this Agreement, regardless of whether
such losses, liabilities, claims, damages (includincl consequential damages), penalties, fines,
forfeitures, costs and expenses (including all reasonable out-of-pocket litigation costs and
reasonable attorney's fees) accrue before or after the date of this Agreement.
The provisions of this Section 1 O shall survive the termination of this Agreement.
Section 11. Ri4ht to Inspect Prooerty. -fhe Property Owner hereby grants the
Authority, its agents and representatives the right to enter at any reasonable time, upon
reasonable notice, to inspect the Improvements. The Property Owner further hereby grants the
Authority, its agents and representatives the right to examine and copy any documentation
relating to the Improvements.
Section 12. Carbon Credits. The Property Owner hereby agrees that any carbon
credits attributable to the Improvements shall be owned by the Authority.
Section 13. Amendment. Except as set forth in Section 5(b), this Agreement may be
modified only by the written agreement of the Authority and the Property Owner.
Section 14. Binding Effect: Assignment:. This Agreement inures to the benefit of and is
binding upon the Authority, the Property Owner and their respective successors and assigns.
The Authority has the right to assign any ~~r all of its rights and obligations under this
Agreement without the consent of the Property Owner. The obligation to pay the Assessment
set forth in this Agreement is an obligation of the Property and no agreement or action of the
Property Owner will be competent to impair in any way the Authority's rights, including, but not
limited to, the right to pursue judicial foreclosure ~~f the Assessment lien or the right to enforce
the collection of the Assessment or any installment thereof against the Property.
Section 15. Exhibits. The Exhibits to this Agreement are incorporated into this
Agreement by this reference as if set forth in their entirety in this Agreement.
Section 16. Severability. If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, such holding will not invalidate or render
unenforceable any other provision of this Agreement.
Section 17. Corrective Instruments. TYie Authority and the Property Owner agree that
they will, from time to time, execute, acknowledge and deliver, or cause to be executed,
acknowledged and delivered, such supplements hereto and such further instruments as may
reasonably be required in order to carry out out the expressed intention of this Agreement.
Section 18. Governing Law: Venue. Tliis Agreement is governed by and construed in
accordance with the laws of the State of California. Any legal action brought under this
Agreement must be instituted in the Superior Court of the County of Sacramento, State of
California; provided, however, actions to foreclose delinquent installments of the Assessment
will be instituted in the superior court of the Count~i or as otherwise provided by law.
Section 19. Counterparts. This Agreement may be executed in several counterparts,
each of which is an original and all of which constitutes one and the same instrument.
6
IN WITNESS WHEREOF, the Authority and the Property Owner have caused this
Agreement to be executed in their respective names by their duly authorized representatives, all
as of the date first above written.
CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY
E3y:
Its:
The following are the authorized signatories of the Property Owner:
Name: flame:
By: E3y:
Its: Its:
Name: IJame:
gy; E3y:
Its: Its: