AgdaPkt 2014-09-22 Closed and Joint with SA

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Each of the above-mentioned PACE programs is operated on the assessment district model pursuant to AB 811. Each JPA has retained the services of an administrator to market the programs, process the loan agreements with property owners and place the assessments on the property tax roll. These services are made available at no cost to the JPA or its member agencies as the administrative costs are rolled into the assessments that ultimately are paid for by the property owner who enters into the loan to finance the energy/water efficient improvements. Because assessments to fund improvements to private properties under a PACE Program are different from traditional assessments that finance public improvements, prior to processing loan agreements under a PACE program, the JPA or governmental entity sponsoring the PACE Program obtains court validation of the program to be implemented in a particular jurisdiction. An overview of the HERO and Figtree PACE programs and the steps for establishing them are below. Western Riverside Council of Governments (WRCOG) - California HERO Program WRCOG is a joint powers authority formed by various jurisdictions located in Western Riverside County. HERO is administered by Renovate America, Inc. for residential properties and by Samas Capital for commercial properties. WRCOG issues bonds secured by the assessments that are purchased by Renovate America, Inc. for the residential loans and Samas Capital for the commercial loans. When WRCOG initially established its PACE program in January 2012, it was limited to its members in the Western Riverside region. In August, 2012, WRCOG amended its joint powers agreement in order to make its PACE program available throughout the State. Redwood City is not currently a member of WRCOG. In order to proceed with implementation of the California HERO program, the City Council will need to adopt a resolution authorizing the City to join WRCOG as an associate member, authorizing WRCOG to conduct contractual assessment proceedings and to levy the assessments within Redwood City, and approving the amendment of the WRCOG JPA agreement to add Redwood City as an associate member. (Attachment 1). WRCOG holds a public hearing to approve Redwood City as an associate member and goes through judicial validation to include Redwood City properties in the assessment district. This takes approximately four months and is paid for by the California HERO Program. California Economic Development Authority - Figtree PACE Program The California Economic Development Authority (CEDA) is a joint powers authority formed by the cities of Lancaster, Selma and Eureka. CEDA’s Figtree PACE program is administered by Figtree Energy Financing. CEDA acts as the issuer of the municipal bonds that finance Figtree PACE projects, issuing limited obligation bonds, notes, or other forms of indebtedness secured by the contractual assessments revenue to finance improvements in the district in which it operates. These bonds are structured as either a micro bond for a specific project or as a pooled bond for multiple projects before being sold to investors on the open market. On July 16, 2013, CEDA obtained a judgment in a validation action for implementation of the Figtree PACE Program throughout the State of California. The City is not 9.B. - Page 3