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City Council Regular
PROPERTY ASSESSED CLEAN ENERGY (PACE) FINANCING PROGRAMS THROUGH THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY (CMFA)
Adopt a resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, AUTHORIZING THE EXECUTION OF THE JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY, CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE CITY OF CHINO HILLS IN THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY OPEN PACE PROGRAMS; AUTHORIZING THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS, CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS, AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE CITY; AND AUTHORIZING RELATED ACTIONS
On January 22, 2013, the City Council approved a memorandum of understanding (MOU) with the San Bernardino Council of Governments (SBCOG, formerly SANBAG) for participation in the Property Assessed Clean Energy (PACE) program. On January 26, 2016, the City Council approved a second PACE provider, the California Statewide Communities Development Authority (CSCDA). Another PACE provider, California Municipal Finance Authority (CMFA), has approached the City requesting the ability to offer PACE programs within Chino Hills. CMFA is a statewide Joint Powers Authority (JPA), founded in 2004, to provide energy efficiency financing programs. The CMFA PACE program consists of four administrators: Energy Efficient Equity, Inc. BlueFlame PACE Services LLC; OnPACE Energy Solutions, LLC; and Structured Finance Associates, LLCs.
These providers serve as a resource for residential and commercial owners to finance various energy efficiency improvements for their properties. Property owners who participate in the program repay the loans through voluntary contractual assessment collected together with their property taxes. One of the most notable characteristics of PACE programs is that the loan is attached to the property rather than belonging to an individual. Therefore, when the owner sells the property, the loan may be paid off during the sale or stay with the property and be paid off by the new owner, who also benefits from the upgrades that were completed.
The City seeks to offer property owners a menu of options when it comes to financing efficiency measures. It is up to the property owner to decide if a PACE loan or other funding mechanism meets their needs. The CMFA PACE program financing would be one of various options available to property owners to finance energy and water efficiency measures. It is ultimately the responsibility of the property owner to research and decide which financing mechanism best suits their needs.
ENVIRONMENTAL (CEQA) REVIEW:
This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code Regulations §§ 15000, et seq.) because it constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378 (b)(4-5)).
There is no impact on the General Fund with this item. There is no fiscal impact associated with allowing additional PACE providers in the City. There is no cost to the City to become an associate member of a JPA, or by opting into additional PACE programs.
REVIEWED BY OTHERS:
This item has been reviewed by the City Attorney and the Public Works Director.
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