AgdaPkt 2016-04-25 Closed and Joint SA PFA

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6.3.A. - Page 2 Development Authority (CEDA) - Figtree PACE Program; and California Statewide Communities Development Authority (CSCDA) — CaliforniaFIRST Program. Additional PACE programs are now available, and the City has the option to authorize participation in these new PACE programs. The additional PACE programs will provide Redwood City property owners with more financing options and allow them to shop around for the most competitive rates. Expanding the availability of PACE financing also supports several of the City's Climate Action Plan measures related to incentivizing residential and commercial energy efficiency and promoting water efficiency, as well as encouraging the installation of electric vehicle chargers and renewable energy systems. ANALYSIS Under both AB 811 and SB 555, properties are annexed into PACE programs and are subjected to the property tax assessments or special taxes imposed to repay project financing only if (i) the City Council adopts a resolution consenting to the inclusion of parcels in the incorporated areas of the city within the programs and (ii) each participating owner consents in writing to the annexation of its property into the PACE programs. CHF PACE Programs CHF, a joint exercise of powers authority (JPA), has established two PACE financing programs for residential and commercial properties. CHF obtained validation from the State to operate both SB 555 and AB 811 PACE programs. These programs are similar except that the authority for PACE financing is provided under different sections of the California State Code. CHF contracts with Ygrene Energy Fund CA LLC (Ygrene) to administer the Ygrene Works PACE program, which is authorized under SB 555. The other CHF PACE program and the other, existing PACE programs in Redwood City are authorized under AB 811. CHF intends to implement only the SB 555 version at this time, while keeping the option open to implement the AB 811 program at a later time to provide flexibility in the event that market fluctuations, consumer demand, and/or legislative changes make this option more viable. Both of the resolutions necessary for the City Council to approve participation in the SB 555 and AB 811 programs are attached to this report. CSCDA Open PACE Program Redwood City is already a member of CSCDA's JPA and is participating in CSCDA's CaliforniaFIRST PACE program. CSCDA's Open PACE platform prequalifies PACE administrators, saving time and resources for approving standalone programs. It is designed to offer more choices to property owners with less administrative burden on municipalities and currently includes three PACE providers: CaliforniaFIRST, Alliance Energy, and the PACE Funding Group. If the City were to become a member of Open PACE, any future programs that join with Open PACE could operate within Redwood City without the City having to take further action. The resolution necessary for the City Council to approve participation in the Open PACE programs is attached to this report.