HomeMy WebLinkAboutResolutions - No. 2017-195RESOLUTION NO. 2017-195
A RESOLUTION OF THE LODI CITY COUNCIL
ESTABLISHING MINIMUM STANDARDS FOR
PROPERTY ASSESSED CLEAN ENERGY (PACE)
PROGRAMS WITHIN THE C¡TY OF LODI
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WHEREAS, property Assessed Clean Energy (PACE) financing programs provide
property owners a tong-ierm financing option to fund property improvements, including energy
"nd
waie1. efficiency, Ënewable energy generation, the installation of electric vehicle charging
infrastructure and sä¡sm¡c strengthening,-with repayment through a special assessment on the
property tax bill; and
WHEREAS, Assembly Bill 811 (2008) added Chapter 29 to the lmprovement Bond Act
of 1911 (Division 7 of the balifornia'streets and Highways Code) to authorize cities and
counties to establish voluntary contractual assessment programs for the purpose of financing
private property improvementi tnat promote the generation of renewable energy, energy and
water éfficienóy, ttl" installation of electric vehicle charging infrastructure, and seismic
strengthening; and
WHEREAS, Senate Bill (SB) 555 (2011) amended the Mello-Roos Community Facilities
Act, set forth in sections 53311
'through
53368.3 of the California Government Code (the Act)'
to add sections 53313.5(1) and 53328.1(a) to allow for the creation of community Facilities
Districts (CFD) for the prrpor" of financing or refinancing the acquisition, installation, and
improvement óf energy efficiency, water conservation, renewable energy, and electric vehicle
chärging improvemenlð permanently affixed to private or publicly-owned real property; and
WHEREAS, individual properties within the City of Lodi can be annexed into an AB 811
program and be subject to ifie property tax assessment that is imposed to repay project
iina-ncing only if the óouncil adopts a resolution consenting to the inclusion of parcels in the
incorporateO t¡mits of the City of Lodi within the program; and
WHEREAS, individual properties can be annexed into a CFD and be subject to the
special tax that is imposed to repay project financing only if the City Coun_cil adopts a resolution
cbnsenting to the inblusion of parcels ln the incorporated limits of the City of Lodi within the
CFD, andlhe owner of the individual property provides its written approval to annex its property
into the CFD; and
WHEREAS, to-date, the Council has authorized participation in three PACE programs,
including the California HERO PACE program (2014), the CaliforniaFlRST PACE program
(2014),ãnd the California Statewide Communities Development Authority Open PACE program
(2015); and
WHEREAS, staff has become aware of concerns with the PACE program, including 1) a
concern that a suþerior lien may hinder a property owner's ability to sell or refinance the
property, and 2) " óon."rn pAcE providers may engage in predatory lending practices and with
a lack of industry oversight; and
WHEREAS, staff is also aware of efforts by the State to address these concerns,
including the establishment of the PACE Loss Reserve Program, which is-administered by the
Californi-a Alternative Energy and Advanced Transportation Financing Authority and which
would reimburse a first ¡noñé"g" Iender for the PACE payments made while in possession of
the property in the case of foreclosure; and
WHEREAS, in 2016 the State legislature also passed Assembly Bill 2693, the "PACE
preservation and consumer Protections-Act," creating an industry-wide framework for PACE
financing loans to promote standardized disclosures and protections for consumers; and
WHEREAS, San Joaquin County reported in August 2017 live of the seven cities within
San Joaquin County have oþted to allôw þnce programs within their jurisdictions, including
Lodi, Manteca, Ripon, étoct<t'on and Tracy; and PACE. programs do not appear to be affecting
assessment payment performance, with [ayment results reflecting a lower delinquency rate on
PACE assessments than the countywide delinquency rate; and
WHEREAS, San Joaquin County has identified specific standards for PACE programs
seeking approval to operate within the unincorporated County and, while City staff is not aware
of any-spé"iti. "orpti.átionr
arising from PACE financing programs_currently offered within the
City,'oui of an abundance of cãution, staff recommends the Council adopt a resolution
"rt"blirh¡ng
similar standards for PACE programs within the City, as follows:
pACE prooram Contractor Standards: PACE providers shall ensure participating
contractorsfromtheCaliforniaStateLicenseBoardand
shall only make true claìms about performance and/or savings associated with projects.
Financinq: PACE providers shall ensure property owners are aware their tax
assessments will increase by the amount due for loans under this program.
pACE Loss Reserve Proqram: PACE providers operating within the City of Lodi shall
parûclpate in the state of california's PACE Loss Reserve Program.
Local Workforce Development and Traininq: PACE providers shall develop and
ngettinglocalcontractorstrainedandcertifiedto
participate in the PACE Program.
NOW, THEREFORE, BE lT RESOLVED that the Lodi city council does hereby adopt
this Resolution establishing minimum standards for Property Assessed Clean Energy (PACE)
programs within the City of Lodi, as outlined above.
Dated: October 18,2017
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I hereby certify that Resolution No. 2017-195 was passed and adopted by the City
Council of the óity of [odi in a regular meeting held October 18, 2017 , by the following vote:
AyES: COUNCIL MEMBERS - Chandler, Johnson, Mounce, Nakanishi, and
Mayor Kuehne
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - None
ABSTAIN: COUNCIL MEMBERS - None
2017-195
ity Clerk
LO