City of Chino
CA

Staff Report

Adopt Resolution No. 2017-052 consenting to the inclusion of properties within the City of Chino in the California Municipal Finance Authority (“CMFA”) Open Property Assessed Clean Energy (“PACE”) Program.

Information

Department:Community Development DepartmentSponsors:
Category:Resolution

Attachments

  1. Printout
  2. Reso 2017-052 10-3-2017 CC - Final (This file has not yet been converted to a viewable format)
  3. PACE Provider Matrix Example 10-3-2017 CC - Final (This file has not yet been converted to a viewable format)

Budget String

Revenue: Expenditure: Transfer In: Transfer Out:

Body

BACKGROUND

The City of Chino is a current member of two Joint Power Authorities (“JPAs”) offering Property Assessed Clean Energy (PACE) programs. PACE programs provide a way to finance energy efficiency, water efficiency, and renewable energy upgrades for existing residential and commercial properties.  Property owners who wish to participate in the program agree to repay the amount borrowed through the voluntary contractual assessment collected as part of their property taxes. One of the most notable characteristics of the PACE program 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 to the property. The eight current residential and commercial program administrators providing PACE financing in the City include HERO, Alliance NRG, California First, CleanFund, Counterpointe SRE, PACE Funding Group, Spruce, and Ygrene.

 

ISSUES/ANALYSIS

The California Municipal Finance Authority (“CMFA”) is a JPA formed to assist local governments, non-profit organizations, and businesses by providing financing of economic development and charitable activities throughout California.  To date, over 260 municipalities in the State, including the City of Chino, are members of the CMFA.  As part of its economic and community development undertaking, the CMFA along with its current program administrators: Energy Efficient Equity, Inc.; BlueFlame PACE Services LLC; OnPACE Energy Solutions, LLC; Structured Finance Associates, LLC; and Petros PACE Administrators, LLC are now offering PACE financing for both residential and commercial property owners in its member territories. The CMFA is expected to issue limited obligation bonds, notes or other forms of obligation to fund the projects.

 

While the five program administrators under the CMFA are similar in nature to those currently providing PACE financing in the City, the new program administrators will simply provide additional choices for property owners who choose to finance energy efficient improvements through voluntary property tax assessments instead of through a traditional loan process. See the attached matrix identifying the existing and proposed PACE administrators and the programs they provide.

 

The attached resolution authorizes the CMFA to accept applications from owners of property within the City for municipal financing of authorized improvements through the CMFA JPA. It also authorizes the CMFA to conduct assessment proceedings and levy assessments against the property of participating owners within the incorporated territory of the City.

 

ENVIRONMENTAL IMPACT

Participation in the CMFA PACE Financing Program is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15378(b)(4) of the Guidelines because the creation of government funding mechanisms or other government fiscal activities which does not involve any commitment to a specific project that may result in a potentially significant physical impact on the environment is not defined as a “project” subject to CEQA.

Attachments:              Resolution No. 2017-052

                            PACE Program Administrator Matrix

Meeting History

Oct 3, 2017 7:00 PM Video City Council Regular Meeting
draft Draft
RESULT:APPROVED [UNANIMOUS]
MOVER:Earl C. Elrod, Council Member
SECONDER:Gary George, Council Member
AYES:Gary George, Paul Rodriguez, Eunice M. Ulloa, Tom Haughey, Earl C. Elrod