HomeMy Public PortalAbout2019.009 (02-05-19) RESOLUTION NO. 2019.009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD,
CALIFORNIA, APPROVING ASSOCIATE MEMBERSHIP BY THE CITY IN THE
CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY; AUTHORIZING AND
DIRECTING THE EXECUTION OF AN ASSOCIATE MEMBERSHIP AGREEMENT
RELATING TO ASSOCIATE MEMBERSHIP OF THE CITY IN THE AUTHORITY;
AUTHORIZING THE CITY TO JOIN THE FIGTREE PACE PROGRAM; AUTHORIZING
THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY TO CONDUCT
CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL
ASSESSMENTS WITHIN THE TERRITORY OF THE CITY OF LYNWOOD; AND
AUTHORIZING RELATED ACTIONS
WHEREAS, the City of Lynwood, California (the "City") is a municipal corporation,
duly organized and existing under the Constitution and the laws of the State of California;
and
WHEREAS, the City may, upon authorization of the City Council,and pursuant to
Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California,
commencing with Section 6500 (the "JPA Law") enter into a joint exercise of powers
agreement with one or more other public agencies pursuant to which such contracting
parties may jointly exercise any power common to them; and
WHEREAS, the City and other public agencies wish to jointly participate in
economic development financing programs for the benefit of businesses and nonprofit
entities within their jurisdictions offered by membership in the California Enterprise
Development Authority (the "CEDA") pursuant to an associate membership agreement
and Joint Exercise of Powers Agreement Relating to the California Enterprise
Development Authority (the "Agreement"); and
WHEREAS, under the JPA Law and the Agreement, CEDA is a public entity
separate and apart from the parties to the Agreement and the debts, liabilities and
obligations of CEDA will not be the debts, liabilities or obligations of the City or the other
members of the Authority; and
WHEREAS, the form of Associate Membership Agreement (the "Associate
Membership Agreement") between the City and CEDA is attached hereto as Exhibit A;
and
WHEREAS, the City is willing to become an Associate Member of CEDA subject to
the provisions of the Associate Membership Agreement; and
WHEREAS, CEDA has adopted the Figtree Property Assessed Clean Energy
(PACE) and Job Creation Program (the "Program" or "Figtree PACE"), to allow the
financing of certain renewable energy, energy efficiency, seismic retrofits, electric vehicle
charging infrastructure, and water efficiency improvements (the "Improvements") through
the levy of contractual assessments pursuant to Chapter 29 of Division 7 of the Streets &
Highways Code ("Chapter 29"), and the issuance of improvement bonds or other
evidences of indebtedness (the "Bonds") under the Improvement Bond Act of 1915
(Streets and Highways Code Sections 8500, et seq.) (the "1915 Act") upon the security
of the unpaid contractual assessments; and
WHEREAS, Chapter 29 provides that assessments may be levied under its
provisions only with the free and willing consent of the owner of each lot or parcel on
which an assessment is levied at the time the assessment is levied; and
WHEREAS, the City desires to allow the owners of property ("Participating Parcel")
within its jurisdiction ("Participating Property Owners") to participate in Figtree PACE, and
to allow CEDA to conduct assessment proceedings under Chapter 29 and to issue Bonds
under the 1915 Act to finance the Improvements; and
WHEREAS, CEDA will conduct assessment proceedings under Chapter 29 to
establish an assessment district (the "District") and issue Bonds under the 1915 Act to
finance Improvements; and
WHEREAS, there has been presented to this meeting a proposed form of Resolution
of Intention to be adopted by CEDA in connection with such assessment proceedings (the
"ROI"), a copy of which is attached hereto as Exhibit B; and
WHEREAS, said ROI sets forth the territory within which assessments may be levied
for Figtree PACE which territory shall be coterminous with the City's official boundaries of
record at the time of adoption of the ROI (the "Boundaries"); and
WHEREAS, pursuant to Chapter 29, the City authorizes CEDA to conduct
assessment proceedings, levy assessments, pursue remedies in the event of
delinquencies, and issue bonds or other forms of indebtedness to finance the
Improvements in connection with Figtree PACE; and
WHEREAS, to protect the City in connection with operation of the Figtree PACE
program, Dividend Finance, LLC, the program administrator, has agreed to defend and
indemnify the City; and
WHEREAS, the City will not be responsible for the conduct of any assessment
proceedings, the levy of assessments, any required remedial action in the case of
delinquencies, the issuance, sale or administration of the bonds or other indebtedness
issued in connection with Figtree PACE.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS:
(1) Such proceedings are conducted pursuant to one or more Resolutions of
Intention in substantially the form of the ROI;
(2) The Participating Property Owners, who shall be the legal owners of such
property, voluntarily execute a contract pursuant to Chapter 29 and comply with
other applicable provisions of California law in order to accomplish the valid
levy of assessments; and
(3) The City will not be responsible for the conduct of any assessment
proceedings, the levy of assessments, any required remedial action in the case
of delinquencies in such assessment payments, or the issuance, sale or
administration of the Bonds in connection with Figtree PACE.
Section 8. Program Report. The City Council hereby acknowledges that
pursuant to the requirements of Chapter 29, CEDA has prepared and will update from
time to time the Program Report for Figtree PACE (the "Program Report") and associated
documents, and CEDA will undertake assessment proceedings and the financing of
Improvements as set forth in the Program Report.
Section 9. Foreclosure. The City Council hereby acknowledges that the Law
permits foreclosure in the event that there is a default in the payment of assessments due
on a property. The City Council hereby designates CEDA as its representative to proceed
with collection and foreclosure of the liens on the defaulting properties within the District,
including accelerated foreclosure pursuant to the Program Report.
Section 10. Indemnification. The City Council acknowledges that Dividend has
provided the City with an indemnification agreement, as shown in Exhibit C, for
negligence or malfeasance of any type as a result of the acts or omissions of Dividend,
its officers, employees, subcontractors and agents. The City Council hereby authorizes
the appropriate officials and staff of the City to execute and deliver the Indemnification
Agreement to Dividend.
Section 11. City Contact Designation. The appropriate officials and staff of the
City are hereby authorized and directed to make applications for Figtree PACE available
to all property owners who wish to finance Improvements. The following staff persons,
together with any other staff designated by the City Manager from time to time, are hereby
designated as the contact persons for CEDA in connection with Figtree PACE: Michelle
Ramirez, Community Development Director, mramirezlynwood.ca.us.
Section 12. CEQA. The City Council hereby finds that adoption of this Resolution
is not a "project" under the California Environmental Quality Act ("CEQA"), because the
Resolution does not involve any commitment to a specific project which may result in a
potentially significant physical impact on the environment, as contemplated by Title 14,
California Code of Regulations, Section 15378(b )( 4)).
Section 13. Effective Date. This Resolution shall take effect immediately upon
its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy
of this resolution to Dividend Finance, LLC.
Section 1. The City Council for the City of Lynwood finds and declares that the
foregoing recitals are true and correct, and incorporates said recitals fully into this
Resolution as substantive findings.
Section 2. The Associate Membership Agreement presented to this meeting and
on file with the City Clerk is hereby approved. The Mayor of the City, the City Manager,
the City Clerk and other officials of the City are each hereby authorized and directed, for
and on behalf of the City, to execute and deliver the Associate Membership Agreement
in substantially said form, with such changes therein as such officer may require or
approve, such approval to be conclusively evidenced by the execution and delivery
thereof.
Section 3. The officers and officials of the City are hereby authorized and directed,
jointly and severally, to do any and all things and to execute and deliver any and all
documents which they may deem necessary or advisable in order to consummate, carry
out, give effect to and comply with the terms and intent of this resolution and the Associate
Membership Agreement. All such actions heretofore taken by such officers and officials
are hereby confirmed, ratified and approved.
Section 4. Good Standing. The City is a municipal corporation and in good
standing.
Section 5. Public Benefits. On the date hereof, the City Council hereby finds and
determines that the Program and issuance of Bonds by CEDA in connection with Figtree
PACE will provide significant public benefits, including without limitation, savings in
effective interest rates, bond preparation, bond underwriting and bond issuance costs and
reductions in effective user charges levied by water and electricity providers within the
boundaries of the City.
Section 6. Appointment of CEDA. The City hereby appoints CEDA as its
representative to (i) record the assessment against the Participating Parcels, (ii)
administer the District in accordance with the Improvement Act of 1915 (Chapter 29 Part
1 of Division 10 of the California Streets and Highways Code (commencing with Section
8500, et seq.) (the "Law"), (iii) prepare program guidelines for the operations of the
Program and (iv) proceed with any claims, proceedings or legal actions as shall be
necessary to collect past due assessments on the properties within the District in
accordance with the Law and Section 6509.6 of the California Government Code. The
City is not and will not be deemed to be an agent of Dividend or CEDA as a result of this
Resolution.
Section 7. Assessment Proceedings. In connection with Figtree PACE, the
City hereby consents to the special assessment proceedings by CEDA pursuant to
Chapter 29 on any property within the Boundaries and the issuance of Bonds under the
1915 Act, provided that:
Section 14. Costs. Services related to the formation and administration of the
assessment district will be provided by CEDA at no cost to the City.
PASSED, APPROVED, AND ADOPTED THIS 5TH day of Februay, 2019.
Jo•é Luis Solache, Mayor
ATTEST:
,r
/ I
M ria Quinonez, City Clerk )
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Noel Tapia, City Attor -y Jose,;meteotl, City Manager
STATE OF CALIFORNIA
) SS.
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby
certify that the foregoing Resolution was passed and adopted by the City Council of the
City of Lynwood at a regular meeting held on the 5th day of February, 2019.
AYES: MAYOR PRO TEM CASTRO, MAYOR SOLACHE, COUNCIL MEMBERS
ALATORRE, CASANOVA AND SANTANA
NOES: NONE
ABSENT: NONE
RECUSE: NONE
411,
Maria Quinonez, City Clerk '
STATE OF CALIFORNIA )
SS.
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of
the City Council of said City, do hereby certify that the above foregoing is a full, true and
correct copy of Resolution No. 2019.009 on file in my office and that said Resolution was
adopted on the date and by the vote therein stated.
Dated this 5th day of February, 2019.
/
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Maria Quinonez, ty' lerk
‘' SCEO
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