HomeMy WebLinkAbout102-Attachment A: November 18, 2009 staff report on the CaliforniaFIRST letter of commitment.pdfPage1of3
SARATOGACITYCOUNCIL
MEETINGDATE:November18,2009 AGENDAITEM:
DEPARTMENT:CityManager’sOffice CITYMANAGER:DaveAnderson
PREPAREDBY:CrystalMorrow DIRECTOR:BarbaraPowell
AdministrativeAnalystIIAssistantCityManager
SUBJECT:CaliforniaFIRSTLetterofCommitment
RECOMMENDEDACTION:
AcceptreportandapproveCaliforniaFIRSTletterofcommitment.
BACKGROUND:
CaliforniaFIRST:
CaliforniaFIRSTisaturnkeypropertyassessedcleanenergy(PACE)programthatwasdeveloped
bytheCaliforniaStatewideCommunitiesDevelopmentAuthority(CaliforniaCommunities),a
jointpowersauthority.TheprogramwillbeadministeredbyRenewableFundingLLC,whichhas
alsomanagedPACEprogramsfortheCityofBerkeleyandBoulderCountyinColorado.
Additionally,RenewableFundingwillsoonbelaunchinganewPACEprograminSanFrancisco.
Municipalitiescan“optin”totheCaliforniaFIRSTprogramtoallowpropertyownerstofinance
cleanenergyprojectsthroughbondsthatareissuedbyCaliforniaCommunities.Bondsarethen
repaidthroughthepropertytaxesofparticipatingpropertyownersovera10-20yearperiod.
CaliforniaFIRSTisavoluntaryprogramandonlyaffectspropertyownersthatchooseto
participateintheprogram.
ToparticipateinCaliforniaFIRST,municipalitiespayaonetimestartupfee.Inturn,California
CommunitieshandlesalladministrationofCaliforniaFIRST.ThecostforSaratogatooptintothe
CaliforniaFIRSTprogramis$12,500.
CaliforniaFIRSTPilotProgram:
BeforeCaliforniaFIRSTisrolledoutonastatewidebasis,itwillfirstbetestedinpilotcounties
andcitiesthroughouttheState.Thepilotprogramwillbelaunchedsometimebetweenspringand
earlysummer2010. Thestatewideprogramwouldthenbecomeactivelatesummer2010.
ThepilotprogramwillallowCaliforniaFIRSTtobeimplementedinphasesandalsoimprovethe
program’sbondratingbeforebeingintroducedstatewide.IfSantaClaraCountyparticipatesin
theCaliforniaFIRSTpilotprogram,Saratogawillalsobeeligibletobepartofthepilotprogram.
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State EnergyProgram–MunicipalFinancingProgramGrant:
AspartoftheAmericanRecoveryandReinvestmentAct,theStateofCaliforniahasreceived
$226 millionfortheStateEnergyProgram(SEP).Ofthismoney,$95millionwillbeusedtofund
anEnergyEfficiencyProgramthatwillprovidegrantstoqualifiedorganizationsforresidential
buildingretrofit,municipalandcommercialretrofit,andmunicipalfinancingprograms.The
State’sSEPfundsarebeingadministeredbytheCalifornia EnergyCommission.
RenewableFundingandCaliforniaCommunitieshavebeenworkingwithSacramentoCountyto
prepareanSEPmunicipalfinancingprogramgrantapplicationtocoverthecostsofprogram
financing,localcoordination,andmarketingforallmunicipalitiesparticipatinginthepilot
CaliforniaFIRSTprogram.IfthegrantisawardedtoSacramentoCountyitwouldcovertheCity
ofSaratoga’sstartupcoststoparticipateintheCaliforniaFIRSTprogram.
NextSteps:
TheCaliforniaEnergyCommissionisrequiringthatallofthecitiesthatintendtoparticipateinthe
CaliforniaFIRSTpilotprogramsubmitaletterofcommitment.Theletterofcommitmentfulfills
twopurposes.First,itauthorizesSacramentoCountytoactastheleadagencyinsubmittingthe
SEPgrantapplicationforCaliforniaFIRSTpilotprogramparticipants.Second,itwillverifythe
amountofSEPfundsneededfortheCaliforniaFIRSTpilotprogram.RenewableFundinghas
indicatedthattheletterofcommitmentisnon-binding.
Followingsubmissionoftheletterofcommitment,pilotcountiesandcitieswillneedtoadopta
resolutiontojointheCaliforniaFIRSTprogrambyJanuary18,2010.Thisresolutionwill
authorizeCaliforniaFIRSTtoacceptapplicationsfrompropertyowners,conductcontractual
assessmentproceedings,andlevycontractualassessmentswithinthejurisdiction.Pilot
municipalitiescannoteintheresolutionthatparticipationintheCaliforniaFIRSTpilotprogramis
contingentuponSEPfundsbeingawardedtocoverthestartupcostsofCaliforniaFIRSTpilot
jurisdictions.
FISCALIMPACTS:
Therearenofiscalimpactsassociatedwithauthorizingsignatureoftheletterofcommitment.If
theCityshoulddecidetomoveforwardintheCaliforniaFIRSTpilotprogramthenthecostof
participationforSaratogawillbe$12,500.
However,thiscostmaybecoveredbySacramentoCounty’sSEPgrantformunicipalfinancing
andtheCitycandecidetomakeparticipationintheCaliforniaFIRSTpilotprogramdependent
upontheawardofSEPmunicipalfinancingfundsfortheCaliforniaFIRSTpilotprogram.
Alternatively,theCouncilmaydecidetouseCouncilContingencyFundstocoverthecostof
optingintotheCaliforniaFIRSTpilotprogramifSEPmoniesarenotawardedtotheprogram.
CONSEQUENCESOFNOTFOLLOWING THERECOMMENDEDACTIONS:
TheCitywillnotsubmitaletterofcommitmenttoCaliforniaFIRSTandwillnotbeincludedin
thepilotprogram.
ALTERNATIVEACTION(S):
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N/A
FOLLOWUPACTION(S):
ImplementCouncildirection.
ADVERTISING,NOTICINGANDPUBLICCONTACT:
Nothingadditional.
ATTACHMENTS:
AttachmentA:LetterofCommitmentforCaliforniaFIRSTprogram
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Incorporated October 22, 1956
CITY OF SARATOGA
13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 • www.saratoga.ca.us
COUNCIL MEMBERS:
Jill Hunter
Kathleen King
Howard Miller
Susie Nagpal
Chuck Page
November 18, 2009
Elizabeth Stone, Contracts Officer
California Energy Commission
1516 Ninth Street, MS-18
Sacramento, California 95814
RE: PON #400-09-401 Municipal Financing Program Application: CaliforniaFIRST
Program
Dear Ms. Stone:
The City of Saratoga is pleased to offer this letter of commitment to the State Energy Program
application of Sacramento County regarding the CaliforniaFIRST Program, a property assessed
clean energy program, sponsored by the California Statewide Communities Development
Authority (“California Communities”). I am authorized to sign this letter of commitment on
behalf of the City of Saratoga pending final approval of City Council.
Through participation in this municipal financing program, the City of Saratoga strives to create
lasting market and behavioral changes resulting in the increased adoption of distributed
generation renewable energy sources and energy efficiency improvements for the property
owners in the our jurisdiction.
The City of Saratoga authorizes Sacramento County as the lead agency in submitting this
application on behalf of our jurisdiction to provide funding in two program areas to ensure the
long-term success of this innovative municipal financing program:
Program Financing Costs—to buy-down the interest rate on the initial round(s) of
projects financed by the CaliforniaFIRST Program; cover fixed costs associated with
bond counsel, bond disclosure, and bond rating; and fund set-up fees for counties and
cities which cover legal and validation costs, as well as the deployment of technology to
support local programs.
Local Coordination and Marketing Costs—to provide for grant administration;
technical assistance; agency coordination; steering committee participation; education,
outreach, incentives, and marketing; and community coordination for property owners
participating in the program.
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Aligned with the U.S. Department of Energy (DOE) and California Energy Commission (CEC)
State Energy Program strategies, our proposed program will increase green jobs, increase
energy efficiency and deployment of renewable energy technologies, promote economic
activity, and reduce greenhouse gas emissions.
The City of Saratoga will help to guide program development and implementation in our
jurisdiction and throughout the region by serving on the appropriate steering committee, and
coordinating with state level CaliforniaFIRST partners, local government coordination program
partners, and relevant internal departments. We will work collaboratively to ensure the success
of the pilot and the long-term success of the program.
The City of Saratoga intends to seek City Council approval and provide the CEC with the
necessary governing board resolutions contingent upon finalization of the resolutions, proposal
selection for funding, and inclusion in the Notice of Proposed Awards. The resolutions are:
1.Authorization for the collaborative lead agency bidder Sacramento County to
apply for and receive funding on behalf of the City of Saratoga, and
2.Authorization for City of Saratoga to join the California Communities
CaliforniaFIRST Program.
City of Saratoga is grateful for your consideration of this proposal. If you have any questions
regarding this request, please feel free to contact:
Barbara Powell, Assistant City Manager
(408) 868-1215
bpowell@saratoga.ca.us
Crystal Morrow, Administrative Analyst II
(408) 868-1275
cmorrow@saratoga.ca.us
Sincerely,
Chuck Page, Mayor
City of Saratoga
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