HomeMy WebLinkAbout08.D- City Manager RESOLUTION (ID#2265) DOC ID: 2265 A
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Agreement/Contract
From: Andrea Travis-Miller M/CC Meeting Date: 02/04/2013
Prepared by: Heidi Aten, (909) 384-5122
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Approving the
Memorandum of Understanding (MOU) by and Between the City of San Bernardino and San
Bernardino Associated Governments (SANBAG) to Participate in the Property Assessed Clean
Energy Program (PACE).
Financial Impact:
There is no financial impact associated with the approval of this item.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
None.
Background:
SANBAG created a regional energy efficiency and water conservation improvement loan
program, as defined by Assembly Bill (AB) 811 and AB 474, and commonly referred to as the
PACE Program. In order for the City of San Bernardino residents and commercial property
owners to participate in the PACE Program, Council needs to approve the MOU with SANBAG.
Several cities have already adopted the MOU including: Adelanto, Barstow, Big Bear Lake,
Chino, Fontana, Grand Terrace, Hesperia, Highland, Loma Linda, Montclair, Ontario, Rancho
Cucamonga, Rialto, San Bernardino (County), Twentynine Palms, Victorville, Yucaipa, and
Yucca Valley.
A PACE Program allows a jurisdiction and an interested property owner to enter into a
contractual agreement to finance the installation of eligible renewable energy, energy efficiency,
or water efficiency improvements that are permanently fixed to the property. SANBAG loans
the property owner the funds for the improvement. The amount of the loan plus a fixed interest
amount is repaid through an assessment on the property tax bill for the property. The tern of the
loan is typically 20 years. SANBAG gets the funds to loan by selling bonds to private investors
secured by the property tax assessments paid by the property owners. SANBAG has secured
initial commitments from two private investment firms for an amount up to $200 million for the
program.
The PACE program can serve as a conduit to get millions of dollars in private investment
circulating in the local economy. The program can help residential property owners lower their
energy bills. The program can help commercial property owners and businesses lower their
energy and water costs, which could help make them more competitive. This private investment
can help create jobs for contractors, installers, and suppliers of the materials used for these
Updated: 1/29/2013 by IQM2 Admin A Packet Pg. 75
2265
improvements. All of these economic benefits also directly benefit our environment by reducing
greenhouse gas emissions, delaying construction of new power plants, and helping the common
goal of energy security, and conserving water.
City Attorney Review:
SupAor&2 Documents:
PACE Program Resolution (PDF)
agrmt 2265 (PDF)
PACE Program Letter to City(PDF)
PACE Program Fact Sheet (PDF)
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Updated: 1/29/2013 by IQM2 Admin A Packet Pg. 76
RESOLUTION NO.
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2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO APPROVING THE MEMORANDUM OF UNDERSTANDING
3 (MOU) BY AND BETWEEN THE CITY OF SAN BERNARDINO AND SAN
BERNARDINO ASSOCIATED GOVERNMENTS (SANBAG) TO PARTICIPATE IN
4 THE PROPERTY ASSESSED CLEAN ENERGY PROGRAM (PACE).
5
6 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
7 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
8 SECTION 1. The City Manager of the City of San Bernardino is hereby authorized and
9 directed to execute on behalf of said City a Memorandum of Understanding with SANBAG, a
10 copy of which is;attached hereto and incorporated herein marked as Exhibit A.
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62Ih11/3
I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
2 SAN BERNARDINO APPROVING THE MEMORANDUM OF UNDERSTANDING
(MOU) BY AND BETWEEN THE CITY OF SAN BERNARDINO AND SAN
3 BERNARDINO ASSOCIATED GOVERNMENTS (SANBAG) TO PARTICIPATE IN
4 THE PROPERTY ASSESSED CLEAN ENERGY PROGRAM (PACE).
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
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and Common Council of the City of San Bernardino at a meeting
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thereof,held on the day of , 2013, by the following vote,to wit:
—'
9 Council Members: AYES NAYS ABSTAIN ABSENT
10 MARQUEZ
11 JENKINS
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13 VALDIVIA
14 SHORETT
15 KELLEY
16 JOHNSON
17 MCCAMMACK
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20 Georgeann Hanna, City Clerk
21 The foregoing Resolution is hereby approved this day of 2013.
22
23 Patrick J. Morris, Mayor
24 City of San Bernardino
25 Approved as to form:
26 JAMES F. PENMAN,
City Attorney
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By:
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Exhibit A
CONTRACT NO: C13066
By and Between
San Bernardino Associated Governments(SANBAG)
And
CITIES OF ADELANTO,BARSTOW,BIG BEAR LAKE,CHINO, CHINO HILLS,
COLTON,FONTANA,GRAND TERRACE, HESPERIA,HIGHLAND,LOMA LINDA,
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MONTCLAIR,NEEDLES,ONTARIO,RANCHO CUCAMONGA, REDLANDS,RIALTO,
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SAN BERNARDINO,TWENCYNINE PALMS, UPLAND,VICTORVILLE,YUCAIPA,AND Uj
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THE TOWNS OF APPLE VALLEY AND YUCCA VALLEY,AND THE COUNTY OF a
SAN BERNARDINO N
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For N
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Implementation of a Property Assessed Clean Energy Program(PACE)
To Finance the Installation of Distributed Generation Renewable Energy Sources,Energy E
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or Water Efficiency Improvements or Electric Vehicle Charging Infrastructure
C13066 Property Assessed Clean Energy Program(PACE) Page I
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CONTRACT NO. C13066
MEMORANDUM OF UNDERSTANDING
BY AND AMONG THE SAN BERNARDINO ASSOCIATED GOVERNMENTS
AND
CITIES OF ADELANTO,BARSTOW, BIG BEAR LAKE,CHINO, CHINO HILLS,
COLTON,FONTANA, GRAND TERRACE, HESPERIA,HIGHLAND,LOMA LINDA,
MONTCLAIR, NEEDLES,ONTARIO,RANCHO CUCAMONGA,REDLANDS,RIALTO,
SAN BERNARDINO,TWENTYNINE PALMS,UPLAND,VICTORVILLE,YUCAIPA,AND
TOWNS OF APPLE VALLEY AND YUCCA VALLEY AND THE COUNTY OF
SAN BERNARDINO
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FOR R
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IMPLEMENTATION OF a`
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A PROPERTY ASSESSED CLEAN ENERGY PROGRAM(PACE)
TO FINANCE THE INSTALLATION OF a
DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, N
ENERGY OR WATER EFFICIENCY IMPROVEMENTS OR
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ELECTRIC VEHICLE CHARGING INFRASTRUCTURE w
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This Memorandum of Understanding ("MOU") is entered into as of January 9, 2013
between the SAN BERNARDINO ASSOCIATED GOVERNMENTS ("SANBAG"), a joint powers E
authority formed under Government Code sections 6500 et seq., and the City of Adelanto L
("Participating Entities"), each a general law or charter city or a county formed under the Constitution a
and the laws of the State of California. SANBAG and the Participating Entities are sometimes
collectively referred to in this MOU as the`Parties"or individually as a"Party."
RECITALS
WHEREAS, the County of San Bernardino and various cities within such county have entered
into an "Amended Memorandum of Understanding for the Joint Exercise of Powers Relative to the
San Bernardino Associated Governments" last amended October 17, 1975 (the "JPA"), to create
SANBAG; and
WHEREAS,Participating Entities are each signatories to the JPA; and
WHEREAS, the purpose of the JPA is to improve and coordinate governmental services on a
countywide, subregional and regional basis through the establishment of SANBAG as a cooperative
association of governments; and
C13066 Property Assessed Clean Energy Program(PACE) Page 2
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WHEREAS, Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code
(commencing with Section 5898.12)("Chapter 29")permits cities and counties to establish contractual
assessment programs to finance the installation of distributed generation renewable energy sources,
energy or water efficiency improvements or electric vehicle charging infrastructure that are
permanently fixed to residential,commercial,industrial,agricultural,or other real property; and
WHEREAS, the parties to the IPA, as cities and counties, have the common power to
implement and administer contractual assessment programs pursuant to Chapter 29 which programs
are commonly referred to as a property assessed clean energy (the "PACE Program") to finance
installation of such improvements within their respective jurisdictions; and
WHEREAS, SANBAG and Participating Entities believe that the establishment by SANBAG
of a single, countywide PACE Program would improve and coordinate the provision of such a PACE
Program within the jurisdictions of Participating Entities and SANBAG and Participating Entities
desire to enter into this MOU in order to authorize SANBAG to implement and administer such a
PACE Program on behalf of Participating Entities. E
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NOW, THEREFORE, it is mutually understood and agreed by SAN13AG and the n
Participating Entities as follows: w
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AGREEMENT ;
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Section 1: Establishing the PACE Program
SANBAG will undertake proceedings pursuant to Chapter 29 to establish a PACE N
Program to make such contractual assessment financing available to eligible property owners within E
the jurisdictional boundaries of Participating Entities. rn
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Section 2: Establishing Eligible Improvements d
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SANBAG shall identify the kinds of distributed generation renewable energy sources, «°
energy or water efficiency improvements or electric vehicle charging infrastructure that may be a
financed("Eligible Improvements")under the PACE Program.
Section 3: Boundary of Program
SANBAG, in coordination with Participating Entities, shall describe the boundaries of
the area within which contractual assessments under the PACE Program may be entered into, which
may include the entire jurisdictional area of each of the Participating Entities or a lesser portion
thereof.
Section 4: Financine the Installation of Eli ible Improvements
SANBAG shall develop and implement a plan for the financing of the purchase and
installation of the Eligible Improvements under the PACE Program.
C13066 Property Assessed Clean Energy Program(PACE) Page 3
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Section 5: Ongoing Administration
SANBAG shall be responsible for the ongoing administration of the PACE Program,
including but not limited to producing education plans to raise public awareness of the PACE Program,
soliciting, reviewing and approving applications from property owners who freely and willingly
consent to participate in the PACE Program, establishing assessment contracts for property owners
participating in the PACE Program, establishing and collecting assessments due under the PACE
Program,and providing reports as required by Chapter 29. The PACE Program will be administered in
accordance with the JPA.
Section 6: Phased Implementation
The Parties recognize and agree that implementation of the PACE Program as a whole
can and may be phased as other parties to the JPA elect to enter into the MOU. The Participating
Entities entering into this MOU will obtain the benefits of and incur the obligations imposed by this
MOU in its jurisdictional area,irrespective of whether other parties to the JPA enter into the MOU. °
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Section 7: Term a
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The term of this MOU shall be for twenty (20) years unless modified or extended a
pursuant to this MOU. ..
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Section 8: Termination N
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Upon ninety (90) days written notice, a Participating Entity may terminate its
participation in the PACE Program through this MOU.
Section 9: Environmental Review m
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SANBAG shall be the lead agency under the California Environmental Quality Act for E
any environmental review that may be equired in implementing or administering the PACE Program
under this MOU.
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Section 10: Cooperative Effort
Participating Entities shall cooperate with SANBAG by providing information and
other assistance in order for SANBAG to meet its obligations hereunder. Participating Entities
recognize that one of their responsibilities related to the PACE Program will include any permitting or
inspection requirements as established by the Participating Entities pertaining to the installation of
Eligible Improvements within their respective jurisdictions.
Section 11: Miscellaneous Provisions
11.1 Notice. Any and all communications and/or notices in connection with this
MOU shall be either hand-delivered or sent by United States first class mail, postage prepaid, and
C13066 Property Assessed Clean Energy Program(PACE) Page 4
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addressed to the respective Parties at the addresses set forth in Exhibit A attached hereto and
incorporated herein by this reference:
11.2 Entire MOU. This MOU, together with the JPA, constitutes the entire
agreement among the Parties regarding the subject matter of this MOU. This MOU supersedes any
and all other agreements, either oral or in writing, among the Parties with respect to the subject matter
hereof and contains all of the covenants and agreements among them with respect to said matters, and
each Party acknowledges that no representation, inducement, promise of agreement, oral or otherwise,
has been wade by the other Party or anyone acting on behalf of the other Party that is not embodied
herein,
11.3 Successors and Assigns. This MOU and each of its covenants and conditions
shall be binding on and shall inure to the benefit of the Parties and their respective successors and
assigns. A Party may only assign or transfer its rights and obligations under this MOU with prior
written approval of the other Parties,which approval shall not be unreasonably withheld. £
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11.4 Attorney's Fees. If any action at law or equity, including any action for o
declaratory relief is brought to enforce or interpret the provisions of this MOU, each Party to the o
litigation shall bear its own attorney's fees and costs. cwi
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11.5 Governing Law. Thus MOU shall be governed by and construed in accordance a
with the laws of the State of California,as applicable.
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11.6 No Third Party Beneficiaries, This MOU shall not create any right or interest in
the public, or any member thereof, as a third party beneficiary hereof, nor shall it authorize anyone not N°
a Party to this MOU to maintain a suit for personal injuries or property damages under the provisions E
of this MOU. The duties, obligations, and responsibilities of the Parties to this MOU with respect to E
third party beneficiaries shall remain as imposed under existing state and federal law. 6
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11.7 Severability. In the event one or more of the provisions contained in this MOU E
is held invalid, illegal or unenforceable by any court, of competent jurisdiction, such portion shall be
deemed severed from this MOU and the remaining parts of this MOU shall remain in full force and a
effect as though such invalid,illegal,or unenforceable portion had never been a part of this MOU.
11.8 Headings. The paragraph headings used in this MOU are for the convenience of
the Parties and are not intended to be used as an aid to interpretation.
11.9 Amendment. No amendment, modification, alteration or variation of the terms
of this MOU shall be valid unless made in writing and signed by the Patties hereto and no oral
understanding or agreement pertaining to the subject matter of this MOU and not incorporated herein
shall be binding on any of the Parties hereto.
(Signature pages to follow)
C13066 Property Assessed Clean Energy Program(PACE) Page 5
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IN WITNESS WHEREOF, THE PAR'T'IES HERETO have executed this MOU to be in effect
as of the date last signed below.
SAN BERNARDINO ASSOCIATED GOVERNMENTS ("SANBAG")
By: Date:
Janice Rutherford
SANBAG President
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APPROVED AS TO FORM:
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By: Date: a
Eileen Monaghan Teichert
General Counsel N
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CONCURRENCE: E
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By: E
Jeffery Hill r
Contract Administrator
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PARTICIPATING ENTITIES
C13W Property Assessed Clean Energy Program(PACE) Page 6
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City of San Bernardino Signature Page
MEMORANDUM OF UNDERSTANDING Contract 4C13066
And
CITIES OF ADELANTO, BARSTOW, BIG BEAR LAKE, CHINO, CHINO HILLS,
COLTON, FONTANA, GRAND TERRACE, HESPERIA, HIGHLAND, LOMA LINDA,
MONTCLAIR, NEEDLES, ONTARIO, RANCHO CUCAMONGA, REDLANDS, RIALTO,
SAN BERNARDINO, TWENTYNINE PALMS, UPLAND, VICTORVILLE, YUCAIPA, AND
THE TOWNS OF APPLE VALLEY AND YUCCA VALLEY, AND THE COUNTY OF E
SAN BERNARDINO zr
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For Implementation of a Property Assessed Clean Energy Program (PACE) to Finance a
the Installation of Distributed Generation Renewable Energy Sources, Energy of Water o
Efficiency Improvements or Electric Vehicle Charging Infrastructure. N
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date y
and year herein written below: m
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CITY OF SAN BERNARDINO: E
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By: a
Date:
APPROVED AS TO FORM:
By: l
Date:
C13066 Property Assessed Clean Energy Program(PACE) Page 24
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EXHIBIT A
NOTICE ADDRESSES FOR THE PARTIES
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To SANBAG Executive Director
San Bernardino Associated Governments
1170 W. 3''Street, 2"d Floor
San Bernardino,CA 92410-1715
To City of Adelanto James Hart
City Manager
P.O.Box 10
Adelanto,CA 92301
To Town of Apple Valley Frank Robinson
Town Manager
Town of Apple Valley
14955 Dale Evans Parkway
Apple Valley,CA 92307
To City of Barstow Curt Mitchell
City Manager E
City of Barstow
220 E. Mountain View Street, Suite A 2
Barstow, CA 92311-2888 n.
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To City of Big Bear Lake Jeff Mathieu a
City Manager
City of Big Bear Lake N
P.O.Box 10000
Big Bear Lake, CA 92315-8900 e,
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To City of Chino Miles Pruitt
City Manager E
City of Chino
P.O. Box 667
Chino,CA 91708-0667 d
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To City of Chino Frills Michael Fleager
City Manager a
City of Chino Hills
14000 City Center Drive
Chino Hills,CA 91709
To City of Colton Rod Foster
City Manager
City of Colton
650 N.La Cadena Drive
Colton,CA 92324
To City of Fontana Ken Hunt
City Manager
City of Fontana
8353 Sierra Avenue
Fontana,CA 92335
C13066 Property Assessed Clean Energy Program(PACE) Page 2
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To City of Grand Terrace Betsy Adams
City Manager
City of Grand Terrace
22795 Barton Road
Grand Terrace, CA 92313
To City of Hesperia Mike Podegracz,P.E.
City Manager
City of Hesperia
9700 Seventh Avenue
Hesperia,CA 92345
To City of Highland Joseph Hughes
City Manager
City of Highland
27215 Base Line
Highland, CA 92346
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To City of Loma Linda Jarb Thaipejr,P.E.
or
City Manager Q
City of Loma Linda n.
25541 Barton Road U
Loma Linda,CA 92354 a
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To City of Montclair Edward Starr
City Manager
City of Montclair ,r,
P.O.Box 2308 N
Montclair,CA 91763 N
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To City of Needles David Brownlee Jr.
City Manager
City of Needles d
817 Third Street E
Needles,CA 92363
To City of Ontario Christopher Hughes a
City Manager
City of Ontario
303 East B Street
Ontario,CA 91764
To City of Rancho Cucamonga John Gillison
City Manager
City of Rancho Cucamonga
P.O.Box 807
Rancho Cucamonga,CA 91729
To City of Redlands N.Enrique Martinez
City Manager
City of Redlands
P.O. Box 3005
Redlands, CA 92373-1505
C13066 Property Assessed Clean Energy Program(PACE) Page 3
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To City of Rialto Michael Story
City Manager
City of Rialto
150 South Palm Avenue
Rialto, CA 92376
To City of San Bernardino Andrea Travis-Miller
City Manager
City of San Bernardino
300 North"D" Street
San Bernardino,CA 92418
To City of Twentynine Palms Richard Wame
City Manager
City of Twentynine Palms
6136 Adobe Road
Twentynine Palms, CA 92277
To City of Upland Stephen Dunn o
City Manager a
City of Upland w
460 N.Euclid Avenue
P.O.Box 460 a
Upland,CA 91786
To City of Victorville Doug Robertson
City Manager
City of Victorville N
P.O.Box 5001
Victorville, CA 92393-5001
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To City of Yucaipa Ray Casey c
City Manager E
City of Yucaipa u
34272 Yucaipa Boulevard a
Yucaipa,CA 92399
To Town of Yucca Valley Mark Nuaimi
Town Manager
Town of Yucca Valley
57090 29 Palms Highway
Yucca Valley,CA 92284
To San Bernardino County Mr. Gregory C. Devereaux
Chief Executive Officer
San Bernardino County Administrative Office
385 N. Arrowhead Avenue,5"Floor
San Bernardino,CA 92415-0120
C13066 Property Assessed Clean Energy Program(PACE) Page 4
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MUM San Bernardino Associated Governments
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1170 W. 3rd Street, 2nd Floor San Bernardino, CA 92410-1715
Phone: (909) 884-8276 Fax: (909) 885-4407 Web:www.sanbog.ca.gov
■ San Bernardino County Transportation Commission ■ San Bernardino County Transportation Authority
■ San Bernardino County Congestion Management Agency ■ Service Authority for Freeway Emergencies
October 15,2012
Ms.Andrea Travis-Miller
City of San Bernardino
300 North "D" Street
San Bernardino,CA 92418
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Dear Ms.Travis-Miller: o
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The SANBAG Board of Directors has approved the creation of a Property Assessed Clean a
Energy(PACE)Program in San Bernardino County. In order for the residential and commercial a
property owners in your community to benefit from and participate in the PACE Program your
City Council needs to approve the enclosed Memorandum of Understanding with SANBAG.
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PACE Programs were allowed in California under AB 811. The PACE Program allows >,
SANBAG and an interested property owner to enter into a contractual agreement to finance the
installation of eligible renewable energy, energy efficiency, or water efficiency improvements o
that are permanently fixed to the property. SANBAG loans the property owner the funds for the
improvement. The funds are being provided by two private firms (Renovate America, Inc. and
Samas Capital, LLC)that have pledged up to $200 million for the program. The property owner _J
repays the loan through an assessment on the property tax bill for the property. The term of the m
loan ranges from 5 to 20 years. Enclosed with this letter is a fact sheet on the program with more rn
detailed information about the program, o
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The PACE Program can provide a tool that property owners can use to finance projects like solar
panels and energy and water conservation improvements that will help them save money on their 4
utility ills. The PACE Program can het reduce overall a
Y gr p greenhouse gas emissions in our
communities. Finally, the PACE Program provides a source of private investment into our
communities for property improvements that will provide jobs to local contractors and suppliers. s
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Staff from SANBAG or from our PACE Program Team would be happy to answer any questions
that you might have or to appear at your City Council meeting. Please let me know whether or
not you will be scheduling this item on an upcoming agenda. You may contact me at
(909) 884-8276 or at dbaker@sanbag.ca.gov. Thank you for your time and consideration.
Sincerely,
A Baker
Director of Management Services
cc: Patrick Morris, SANBAG Board Member
CM-PACE-121015-DAB
Attachments: MOU C13066;PACE Program Fact Sheet
Cities of:Adelanto, Barstow,Big Bear Lake,Chino,Chino Hills, Colton, Fontana,Grand Terrace,Hesperia,Highland,Loma Linda,Montclair,
Needles,Ontario, Rancho Cucamonga, Redlands, Rialto,San Bernardino,Twentynlne Palms,Upland,VicloMlle,Yucaipa
Towns of:Apple Valley,Yucca Valley County of San Bernardino
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FACT SHEET
Property Assessed Clean Energy (PACE) Program in San Bernardino County
When AB 811 and AB 474 were passed in 2008 and 2009, the intent was to find ways to
improve the energy and water efficiency of existing homes and businesses by providing loans to
property owners that would be paid back over time through property assessments. This would
provide an incentive for property owners to make improvements to their properties to reduce
energy and water use, reduce utility costs, reduce greenhouse gas emissions and put contractors
to work E
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How does a PACE program work? o
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A jurisdiction(SANBAG) and an interested property owner enter into a contractual agreement to
finance the installation of eligible renewable energy, energy efficiency, or water efficiency a
improvements that are permanently fixed to the property. Examples of eligible improvements
include: N
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• Air sealing and weatherization c
• Insulation
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• Cool roof systems @
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• Duct sealing E
• High efficiency heat and air conditioning
• Attic fans and whole house fans 0
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• High efficiency and tank-less water heaters w
• Weatherized doors, windows and window film L)
• High efficiency pool pumps and heaters a
• Solar photovoltaic systems v
• Solar thermal water heating E
• Small wind turbines R
• High efficiency toilets and shower heads a
• Weather based irrigation control systems
• Drip irrigation
• Gray water systems
• Commercial light fixture replacements
• Commercial boiler improvements
• Commercial refrigeration improvements
The jurisdiction (SANBAG) loans the property owner the funds for the improvement.
The amount of the loan plus a fixed interest amount is repaid through an assessment on the
property tax bill for the property. The term of the loan can be from 5 to 20 years.
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The jurisdiction gets the funds to loan by selling bonds to private investors secured by the
property tax assessments paid by the property owners. SANBAG has secured initial
commitments from private investors for$200 million.
What are the benefits of a PACE program?
There are two primary types of benefits from a PACE program. The first type of benefit is
economic. Economic benefits include:
• Lower utility bills for property owners
• Increased property value due to improvements
• Investment of millions of dollars in local economy through contractors and suppliers
• Localjobs
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The second type of benefit is environmental and the benefits include: a`
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• Lower greenhouse gas emissions due to reduced energy use a
• Reduce air pollution due to reduced energy use
• Conservation of water
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The PACE program will serve as a conduit to get millions of dollars in private investment
circulating in the local economy. The program will help residential property owners lower their
energy bills. Commercial property owners and businesses benefit from lower energy and water
costs which help make them more competitive. This private investment creates jobs for
contractors, installers, and suppliers of the materials used for these improvements. All of these E
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economic benefits also directly benefit our environment by reducing greenhouse gas emissions, o
delaying construction of new power plants, helping the common goal of energy security, and W
conserving water. a
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Why a regional PACE program makes sense.
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Any individual agency can implement a PACE program. However, there are some real
advantages to taking a regional approach. This approach allows agencies large and small to
participate. This is a real benefit to smaller agencies that may not have the staff or volume of
interested property owners to make sense for a stand-alone program. The regional Program
provides a uniform application process for property owners regardless of what community they
are in, thus empowering contractors to include PACE as a funding option across city lines
without having to learn multiple options. Program marketing efforts will be implemented on a
regional basis which is more cost effective and reaches more people. A regional program is able
to attract more private capital because the larger market means larger investment opportunity.
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How would a SANBAG PACE program be structured?
SANBAG has selected a team of firms that is providing a turnkey program from structuring and
securing investment to developing program manuals, applications and providing application
processing. The PACE Program Team is as follows:
• The PFM Group—Financial Advisor and Program Manager
• Best Best&Krieger LLP—Legal Advisor for program formation and operation
• Renovate America, Inc.—Daily administration and funding of the residential program
• Samas Capital,LLC—Daily administration and funding of the commercial program
• David Taussig&Associates, Inc.—Special Tax Consultant and Assessment Engineer
• Westhoff,Cone&Holmstedt—Placement Agent E
• U.S. Bank, N.A.—Trustee `
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Cities and the County are being asked to take an action to opt into the program. After agencies 0.
have decided to opt in or not, a district, administered by SANBAG, would be formed U
encompassing the agencies that have opted in. The property owners in the district would be a
eligible to participate in the program Day-today operation of the Program will be handled by
Renovate America, Inc. for residential properties and by Samas Capital, LLC for commercial
properties.
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Residential property owners can access the system directly via an online application and a call N
center (see Western Riverside County Council of Governments PACE Program site for an LL
example http://wrcog.herofinancing.com/) or through contractors. Renovate America provides E
contractors with tools to help them co-market and qualify homeowners. It is anticipated that M,
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most applications will come through contractors. a
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Contractor orientation workshops will be held. The workshops will train contractors on how a
PACE Program financing works, the application process, the funding process and other terms a
and conditions of participation. All licensed contractors who meet the requirements of the
California State License Board are eligible to participate. Z
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Once the homeowner has been qualified and the eligibility of the project has been approved, the
contractor can begin work. When the job is done the contractor or the homeowner submits the
Funding Request with the required attachments and the Closing Documents are then sent to the
homeowner. The homeowner signs, notarizes and returns the Closing Documents and then
payment is sent to the contractor and the assessment is placed on the tax rolls.
Processing for commercial properties is very similar, however, individual project and eligibility
review includes acknowledgement of the assessment by any existing mortgage-holder.
Questions—Contact Duane Baker at SANBAG(909) 884-8276 or at dbaker@sanbag.ca.gov
Packet Pg. 93