HomeMy Public PortalAbout15-108RESOLUTION NO. 15-108
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARSON, CALIFORNIA, CONSENTING TO
INCLUSION OF PROPERTIES WITHIN THE CITY'S
JURISDICTION IN THE CALIFORNIA HOME
FINANCE AUTHORITY, PROGRAM TO FINANCE
RENEWABLE ENERGY GENERATION, ENERGY
AND WATER EFFICIENCY IMPROVEMENTS AND
ELECTRIC VEHICLE CHARGING
INFRASTRUCTURE AND APPROVING ASSOCIATE
MEMBERSHIP IN THE JOINT EXERCISE OF
POWERS AUTHORITY RELATED THERETO
WHEREAS, the California Home Finance Authority ("Authority") is a joint
exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of
the Government Code of the State of California (Section 6500 and following) (the "Act")
and the Joint Power Agreement entered into on July 1, 1993, as amended from time to
time (the "Authority JPA"); and
WHEREAS, the Authority is in the process of amending the Authority JPA to
formally change its name to the Golden State Finance Authority; and
WHEREAS, Authority has established a property -assessed clean energy
("PACE") Program (the "Authority PACE Program") to provide for the financing of
renewable energy generation, energy and water efficiency improvements and electric
vehicle charging infrastructure (the "Improvements") pursuant to Chapter 29 of the
Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways
Code ("Chapter 29") within counties and cities throughout the State of California that
elect to participate in such program; and
WHEREAS, City of Carson (the "City") is committed to development of
renewable energy generation and energy and water efficiency improvements, reduction of
greenhouse gases, and protection of the environment; and
WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to
assist property owners in financing the cost of installing Improvements through a
k voluntary contractual assessment program; and
{
WHEREAS, installation of such Improvements by property owners within the
jurisdictional boundaries of the counties and cities that are participating in the Authority
PACE Program would promote the purposes cited above; and
WHEREAS, the City wishes to provide innovative solutions to its property owners
to achieve energy and water efficiency, and in doing so cooperate with Authority in order
to efficiently and economically assist property owners within the City in financing such
Improvements; and
WHEREAS, Authority has established the Authority PACE Program, which is
such a voluntary contractual assessment program, as permitted by the Act, the Authority
JPA, originally made and entered into July 1, 1993, as amended to date, and the City,
desires to become an Associate Member of the JPA by execution of the JPA Agreement,
a copy of which is attached as Exhibit "A" hereto, to participate in the programs of the
JPA and to assist property owners within the jurisdiction of the City in financing the cost
of installing Improvements; and
WHEREAS, the City will not be responsible for the conduct of any assessment
proceedings; the levy and collection of assessments or any required remedial action in the
case of delinquencies in the payment of any assessments or the issuance, sale or
administration of any bonds issued in connection with the Authority PACE Program.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. This City Council finds and declares that properties in the City's
incorporated area will be benefited by the availability of the Authority PACE Program to
finance the installation of the Improvements.
2. This City Council consents to inclusion in the Authority PACE Program of
all of the properties in the jurisdictional boundaries of the City and to the Improvements,
upon the request by and voluntary agreement of owners of such properties, in compliance
with the laws, rules and regulations applicable to such program; and to the assumption of
jurisdiction thereover by Authority for the purposes thereof.
3. The consent of this City Council constitutes assent to the assumption of
jurisdiction by Authority for all purposes of the Authority PACE Program and authorizes
Authority, upon satisfaction of the conditions imposed in this resolution, to take each and
every step required for or suitable for financing the Improvements, including the levying,
collecting and enforcement of the contractual assessments to finance the Improvements
and the issuance and enforcement of bonds to represent such contractual assessments.
4. This City Council hereby approves joining the JPA as an Associate
Member and authorizes the execution by appropriate City officials of any necessary
documents to effectuate such membership.
5. City staff is authorized and directed to coordinate with Authority staff to
facilitate operation of the Authority PACE Program within the City, and report back
periodically to this City Council on the success of such program.
IN
6. This Resolution shall take effect immediately upon its adoption. The City
Clerk is directed to send a certified copy of this resolution to the Secretary of the
Authority.
7. PASSED, APPROVED and ADOPTED at a regular meeting of the City
Council on this 6th day of October, 2015.
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF CARSON )
I, Jim Dear, City Clerk of the City of Carson, California, do hereby certify that the whole
number of members of the City Council is five; that the foregoing resolution, being Resolution
No. 15-108 was duly and regularly adopted by said Council at a regular meeting duly and
regularly held on the 6`" of October, 2015, and that the same was passed and adopted by the
following vote:
AYES: COUNCIL MEMBERS: Mayor Robles, Santarina, Davis -Holmes, Hilton,
and Gause-Aldana
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
City Jerk Jim Dear
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CITY OF CARSON 701 East Carson Street
tt
File #: 2015-731, Version: 1
Report to Mayor and City Council
Tuesday, October 06, 2015
Discussion
SUBJECT:
CONSIDER RESOLUTION NOS. 15-107 AND 15-108 CONSENTING TO INCLUSION OF
PROPERTIES IN THE CITY OF CARSON IN THE CALIFORNIA HOME FINANCE
AUTHORITY PACE PROGRAMS AND ASSOCIATE MEMBERSHIP IN CALIFORNIA
HOME FINANCE AUTHORITY
I. SUMMARY
This action approves the California Home Finance Authority ("CHF"), which is in the
process of formally changing its name to Golden State Finance Authority, to offer two
Property Assessed Clean Energy ("PACE") financing programs for residential, commercial,
industrial and agricultural properties to address high up -front costs for property owners who
wish to improve their properties through installation of measures that will generate
renewable energy or reduce their energy and water use. By offering low cost financing,
CHF's PACE programs allow construction of these projects to proceed and, in the process,
stimulate building activity and the overall local economy, reduce peak energy demand,
increase property values, and generate savings on utility bills for property owners.
CHF contracts with Ygrene Energy Fund CA, LLC (Ygrene) to serve as the program
administrator and to operate the Ygrene Works for California PACE financing program.
II. RECOMMENDATION
TAKE the following actions:
ADOPT Resolution
Incorporated Area i
Finance Renewable
Electric Vehicle C
membership in CHF.
No. 15-107 consentin
n CHF Community Fa
Energy Generation,
harging Infrastructure
g to Inclusion of Properties within the City's
cilities District No. 2014-1 (Clean Energy) to
Energy Efficiency, Water Conservation and
Improvements and approving associate
2. ADOPT Resolution No. 15-108 consenting to Inclusion of Properties within the C1ty's
CITY OF CARSON
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Incorporated Area in the CHF PACE Program to Finance Renewable Energy
Generation, Energy and Water Efficiency Improvements and Electric Vehicle Charging
Infrastructure and approving associate membership in CHF.
2. AUTHORIZE the Mayor to execute the Resolutions and Associate Membership
Agreement following approval as to form by the City Attorney.
111. ALTERNATIVES
1. DO NOT APPROVE the Resolutions and Agreement. Should the City Council choose
this alternative, properties in the City would not be eligible for participation in these
specific PACE programs,
2. TAKE another action the City Council deems appropriate.
IV. BACKGROUND
California Home Finance Authority ("CHF"), which is in the process of formally changing its
name to Golden State Finance Authority, is a joint exercise of powers authority established
pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of
California (Section 6500 and following) (the "Act") and the Joint Power Agreement entered
into on July 1, 1993, as amended from time to time (the "Authority JPA").
CHF has established two Property Assessed Clean Energy ("PACE") financing programs
for residential, commercial, industrial and agricultural properties to address high up -front
costs for property owners who wish to improve their properties through installation of
measures that will generate renewable energy or reduce their energy and water use. By
offering low cost financing, CHF's PACE programs allow construction of these projects to
proceed and, in the process, stimulate building activity and the overall local economy,
reduce peak energy demand, increase property values, and generate savings on utility bills
for property owners.
CHF contracts with Ygrene Energy Fund CA LLC (Ygrene) to serve as the program
administrator and to operate the Ygrene Works for California PACE financing program.
PACE FINANCING PROGRAMS
CHF has established two PACE programs under the legislative authority of two separate
California PACE laws:
SB 555 PACE Community Facilities District: Senate Bill 555 amended the Mello -Roos
Community Facilities Act, set forth in sections 53311 through 53368.3 of the California
Government Code and particularly in accordance with sections 53313.5(1) and 53328.1
(a) ("Mello -Roos Act"), to allow for the creation of Community Facilities Districts
("CFDs")for the purpose of financing or refinancing the acquisition, installation, and
improvement of energy efficiency, water conservation, renewable energy and electric
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vehicle charging infrastructure improvements permanently affixed to private or publicly-,
owned real property.
Individual properties can be annexed into the district and be subject to the special tax
that is imposed to repay project financing only if (i) the Council adopts a resolution
consenting to the inclusion of parcels in the incorporated areas of the City within the
CFD and (ii) each participating owner provides its unanimous written approval for
annexation of its property into the PACE CFD.
AB 811 PACE Contractual Assessment Program: By the passage of Assembly Bill 811,
the California State Legislature added Chapter 29 to the Improvement Bond Act of
1911, being Division 7 of the California Streets and Highways Code. This legislation
authorized cities and counties to establish voluntary contractual assessment programs
for the purpose financing private property improvements that promote renewable
energy generation, energy and water efficiency and electric vehicle charging
infrastructure.
As with the S13 555 CFD, properties can be annexed into the AB 811 PACE program
and be subject to the property tax assessment that is imposed to repay project
financing only if (i) the Council adopts a resolution consenting to the inclusion of parcels
in the incorporated areas of the City within the program and (ii) each participating owner
consents in writing to the annexation of its property into the PACE program.
PARTICIPATION IN OTHER PACE PROGRAMS
The City of Carson is considering participation in other PACE programs as well. Adding the
CHF PACE programs, to be administered by Ygrene, provides more options for City
property owners. New or additional PACE programs, or any PACE programs the City may
already be a member of, will not add to or require any additional responsibilities for the
City.
JPA ASSOCIATE MEMBERSHIP
To participate in the PACE programs, the City must become an Associate Member of CHF
(JPA Agreement attached). Associate membership requires no dues or other costs to the
City, but permits participation in all CHF programs including the PACE program. The
attached resolutions approve joining the JPA as an Associate Member. Pursuant to the
JPA Agreement and CHF Board Resolution 15-01, the Executive Director has the authority
to approve the addition of new Associate Members to the JPA.
CHF is in the process of seeking validation judgments for both the SB 555 and the AB 811
programs from the Superior Court for the County of Sacramento. However, CHF intends to
only implement ONE of the above PACE programs. Once the court enters the validation
judgments, CHF will select the PACE program it believes will provide property owners with
the greatest flexibility. The other PACE program will not be implemented unless Changes,
in the PACE laws warrant changing or adding that option.
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In support of CHF's approach, the Council is being asked to pass two resolutions that
would approve the following actions:
• The first resolution authorizes the City to join the JPA as an Associate Member
and permits property owners within the incorporated areas of the City to participate
in the CHF SB 555 Community Facilities District (Exhibit No. 1).
• The second resolution authorizes the City to join the JPA as an Associate
Member and permits property owners within the incorporated areas of the City to
participate in the CHF AB 811 Authority PACE Program (Exhibit No. 2).
Each resolution also authorizes CHF (1) to accept applications from property owners within
the City's incorporated area to finance authorized improvements; and (2) to conduct
proceedings and levy special taxes or contractual assessments, as applicable, on the
property of participating owners.
Following are additional PACE program considerations:
• Supports development of renewable energy sources, installation of energy and
water efficiency improvements, reduction of greenhouse gases, and protection of
the environment.
• Only property owners who voluntary choose to participate in the program will be
subject either to assessments or special taxes, depending on which program CHF
decides to implement.
• Program financing provides for an affordable method for many property owners
to reduce their energy costs and improve their properties.
• Because program financing can be readily transferred upon sale, even owners
who are planning to sell have the ability to make responsible and beneficial
improvements to their property.
• While early payment premiums apply in some circumstances, property owners
can choose to pay off the program financing at any time.
• The City incurs no financial obligations as a result of program participation.
• Once the Council passes the resolutions, the City will incur no costs, and no staff
time is required for administration or funding of the PACE program.
V. FISCAL IMPACT
There are no fiscal impacts associated with the recommended actions. There is no cost to
the City to become an associate member of the JPA or by opting into the PACE programs
described in this report. The City will have no administrative responsibilities, marketing
obligations, or financial obligations associated with the PACE program.
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V1. EXHIBITS,
1. Resolution No. 15-107. (pgs. 6-9)
2. Resolution No. 15-108. (pgs. 10-12)
3. California Home Finance Authority Amended and Restated Joint Exercise of Powers
Agreement. (pgs. 13-25)
Prepared by: Barry Waite, Business and Employment Development Manager
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RESOLUTION NO. 15-107
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARSON, CALIFORNIA CONSENTING TO
INCLUSION OF PROPERTIES WITHIN THE CITY'S
JURISDICTION IN THE CALIFORNIA HOME
FINANCE AUTHORITY COMMUNITY FACILITIES
DISTRICT NO. 2014-1 (CLEAN ENERGY) TO
FINANCE RENEWABLE ENERGY IMPROVEMENTS,
ENERGY EFFICIENCY AND WATER
CONSERVATION IMPROVEMENTS AND ELECTRIC
VEHICLE CHARGING INFRASTRUCTURE AND
APPROVING ASSOCIATE MEMBERSHIP IN THE
JOINT EXERCISE OF POWERS AUTHORITY
RELATED THERETO
Recitals
WHEREAS, the California Home Finance Authority, a California joint powers
authority, (the "Authority") has established the Community Facilities District No. 2014-
1(Clean Energy) in accordance with the Mello -Roos Community Facilities Act, set forth
in sections 53311 through 53368.3 of the California Government Code (the "Act") and
particularly in accordance with sections 53313.5(1) and 53328.1(a) (the "District"); and
WHEREAS, the purpose of the District is to finance or refinance (including the
payment of interest) the acquisition, installation, and improvement of energy efficiency,
water conservation, renewable energy and electric vehicle charging infrastructure
improvements permanently affixed to private or publicly -owned real property (the
"Authorized Improvements"); and
WHEREAS, the Authority is in the process of amending the Authority Joint
Powers Agreement (the "Authority JPA") to formally change its name to the Golden
State Finance Authority; and
WHEREAS, the City of Carson is committed to development of renewable energy
generation and energy efficiency improvements, reduction of greenhouse gases, and
protection of the environment; and
WHEREAS, in the Act, the Legislature has authorized a parcel within the territory
of the District to annex to the District and be subject to the special tax levy of the District
only (i) if the city or county within which the parcel is located has consented, by the
adoption of a resolution by the applicable city council or county board of supervisors, to
the inclusion of parcels within its boundaries in the District and (ii) with the unanimous
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EXHIBIT N0. 1
0
written approval of the owner or owners of the parcel when it is annexed (the
"Unanimous Approval Agreement"), which, as provided in section 53329.6 of the Act,
shall constitute the election required by the California Constitution; and
WHEREAS, the City wishes to provide innovative solutions to its property owners
to achieve energy efficiency and water conservation and in doing so cooperate with
Authority in order to efficiently and economically assist property owners the City in
financing such Authorized Improvements; and
WHEREAS, the Authority has established the District, as permitted by the Act,
the Authority JPA, originally made and entered into July 1, 1993, as amended to date,
and the City, desires to become an Associate Member of the JPA by execution of the JPA
Agreement, a copy of which is attached as Exhibit "A" hereto, to participate in the
programs of the JPA and, to assist property owners within the incorporated area of the
City in financing the cost of installing Authorized Improvements; and
WHEREAS, the City will not be responsible for the conduct of any special tax
proceedings; the levy and collection of special taxes or any required remedial action in
the case of delinquencies in the payment of any special taxes in connection with the
District.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. This City Council finds and declares that properties in the City's
incorporated area will be benefited by the availability of the Authority CFD No. 2014-1
(Clean Energy) to finance the installation of the Authorized Improvements.
2. This City Council consents to inclusion in the Authority CFD No. 2014-1
(Clean Energy) of all of the properties in the incorporated area within the City and to the
Authorized Improvements, upon the request of and execution of the Unanimous Approval
Agreement by the owners of such properties when such properties are annexed, in
compliance with the laws, rules and regulations applicable to such program; and to the
assumption of jurisdiction thereover by Authority for the purposes thereof.
3. The consent of this City Council constitutes assent to the assumption of
jurisdiction by Authority for all purposes of the Authority CFD No. 2014-1 (Clean
Energy) and authorizes Authority, upon satisfaction of the conditions imposed in this
resolution, to take each and every step required for or suitable for financing the
Authorized Improvements.
4. This City Council hereby approves joining the JPA as an Associate
Member and authorizes the execution by appropriate City officials of any necessary
documents to effectuate such membership.
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5. City staff is authorized and directed to coordinate with Authority staff to
facilitate operation of the Authority CFD No. 2014-1 (Clean Energy) within the City, and
report back periodically to this City Council on the success of such program.
6. This Resolution shall take effect immediately upon its adoption. The City
Clerk is directed to send a certified copy of this resolution to the Secretary of the
Authority.
PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on this
day of October, 2015.
ATTEST:
CITY CLERK
CITY ATTORNEY
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8
Exhibit A
JPA Agreement
[to be inserted]
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9
RESOLUTION NO. 15-108
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARSON, CALIFORNIA, CONSENTING TO
INCLUSION OF PROPERTIES WITHIN THE CITY'S
JURISDICTION IN THE CALIFORNIA HOME
FINANCE AUTHORITY, PROGRAM TO FINANCE
RENEWABLE ENERGY GENERATION, ENERGY
AND WATER EFFICIENCY IMPROVEMENTS AND
ELECTRIC VEHICLE CHARGING
INFRASTRUCTURE AND APPROVING ASSOCIATE
MEMBERSHIP IN THE JOINT EXERCISE OF
POWERS AUTHORITY RELATED THERETO
WHEREAS, the California Home Finance Authority ("Authority") is a joint
exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of
the Government Code of the State of California (Section 6500 and following) (the "Act")
and the Joint Power Agreement entered into on July 1, 1993, as amended from time to
time (the "Authority JPA"); and
WHEREAS, the Authority is in the process of amending the Authority JPA to
formally change its name to the Golden State Finance Authority; and
WHEREAS, Authority has established a property -assessed clean energy
("PACE") Program (the "Authority PACE Program") to provide for the financing of
renewable energy generation, energy and water efficiency improvements and electric
vehicle charging infrastructure (the "Improvements") pursuant to Chapter 29 of the
Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways
Code ("Chapter 29") within counties and cities throughout the State of California that
elect to participate in such program; and
WHEREAS, City of Carson (the "City") is committed to development of
renewable energy generation and energy and water efficiency improvements, reduction of
greenhouse gases, and protection of the environment; and
WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to
assist property owners in financing the cost of installing Improvements through a
voluntary contractual assessment program; and
WHEREAS, installation of such Improvements by property owners within the
jurisdictional boundaries of the counties and cities that are participating in the Authority
PACE Program would promote the purposes cited above; and
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EXHIBIT NO. 2 10
WHEREAS, the City wishes to provide innovative solutions to its property owners
to achieve energy and water efficiency, and in doing so cooperate with Authority in order
to efficiently and economically assist property owners within the City in financing such
Improvements; and
WHEREAS, Authority has established the Authority PACE Program, which is
such a voluntary contractual assessment program, as permitted by the Act, the Authority
JPA, originally made and entered into July 1, 1993, as amended to date, and the City,
desires to become an Associate Member of the JPA by execution of the JPA Agreement,
a copy of which is attached as Exhibit "A" hereto, to participate in the programs of the
JPA and to assist property owners within the jurisdiction of the City in financing the cost
of installing Improvements; and
WHEREAS, the City will not be responsible for the conduct of any assessment
proceedings; the levy and collection of assessments or any required remedial action in the
case of delinquencies in the payment of any assessments or the issuance, sale or
administration of any bonds issued in connection with the Authority PACE Program.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. This City Council finds and declares that properties in the City's
incorporated area will be benefited by the availability of the Authority PACE Program to
finance the installation of the Improvements.
2. This City Council consents to inclusion in the Authority PACE Program of
all of the properties in the jurisdictional boundaries of the City and to the Improvements,
upon the request by and voluntary agreement of owners of such properties, in compliance
with the laws, rules and regulations applicable to such program; and to the assumption of
jurisdiction thereover by Authority for the purposes thereof.
3. The consent of this City Council constitutes assent to the assumption of
jurisdiction by Authority for all purposes of the Authority PACE Program and authorizes
Authority, upon satisfaction of the conditions imposed in this resolution, to take each and
every step required for or suitable for financing the Improvements, including the levying,
collecting and enforcement of the contractual assessments to finance the Improvements
and the issuance and enforcement of bonds to represent such contractual assessments.
4. This City Council hereby approves joining the JPA as an Associate
Member and authorizes the execution by appropriate City officials of any necessary
documents to effectuate such membership.
5. City staff is authorized and directed to coordinate with Authority staff to
facilitate operation of the Authority PACE Program within the City, and report back
periodically to this City Council on the success of such program.
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HE
6. This Resolution shall take effect immediately upon its adoption. The City
Clerk is directed to send a certified copy of this resolution to the Secretary of the
Authority.
7. PASSED, APPROVED and ADOPTED at a regular meeting of the City
Council on this day of October, 2015.
/_�1811•f. l�il
CITY CLERK
CITY ATTORNEY
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12
�I V A. to]a
AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEN[ENT
(Original date July 1, 1993 and as last amended and restated December 10, 2014)
THIS AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT
("Agreement") is entered into by and among the counties listed on Attachment 1 hereof and
incorporated herein by reference. All such counties are referred to herein as "Members" with the
respective powers, privileges and restrictions provided herein.
A. WHEREAS, the California Rural Home Mortgage Finance Authority ("CRHMFA") was
created by a Joint Exercise of Powers Agreement dated July 1, 1993 pursuant to the Joint Exercise
of Powers Act (commencing with Article 1 of Chapter 5 of Division 7 of Title 1 of the
Government Code of the State of California (the "Act"). By Resolution 2003-02, adopted on
January 15, 2003, the name of the authority was changed to CRHMFA Homebuyers Fund. The
most recent amendment to the Joint Exercise of Powers Agreement was on January 28, 2004.
B. WHEREAS, the Members of CRHMFA Homebuyers Fund desire to update, reaffirm,
clarify and revise certain provisions of the joint powers agreement, including the renaming of the
joint powers authority, as set forth herein.
C. WHEREAS, the Members are each empowered by law to finance the construction,
acquisition, improvement and rehabilitation of real property.
D. WHEREAS, by this Agreement, the Members desire to create and establish a joint powers
authority to exercise their respective powers for the purpose of financing the construction,
acquisition, improvement and rehabilitation of real property within the jurisdiction of the Authority
as authorized by the Act.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Members
individually and collectively agree as follows:
1. Definitions
Unless the context otherwise requires, the following terms shall for purposes of this
Agreement have the meanings specified below:
"Act" means the Joint Exercise of Powers Act, commencing with Article 1 of Chapter 5 of
Division 7 of Title 1 of the Government Code of the State of California, including the Marks -Roos
Local Bond Pooling Act of 1985, as amended.
"Agreement" means this Joint Exercise of Powers Agreement, as the same now exists or as it
may from time to time be amended as provided herein.
EXHIBIT NO. 3 13
"Associate Member" means a county, city or other public agency which is not a voting
member of the Rural County Representatives of California, a California nonprofit corporation
("RCRC"), with legal power and authority similar to that of the Members, admitted pursuant to
paragraph 4.d. below to associate membership herein by vote of the Board.
"Audit Committee" means a committee made up of the nine -member Executive
Committee.
"Authority" means California Home Finance Authority ("CHF"), formerly known as
CRHMFA Homebuyers Fund or California Rural Home Mortgage Finance Authority.
"Board" means the governing board of the Authority as described in Section 7 below.
"Bonds" means bonds, notes, warrants, leases, certificates of participation, installment
purchase agreements, loan agreements and other securities or obligations issued by the Authority,
or financing agreements entered into by the Authority pursuant to the Act and any other obligation
within the meaning of the term 'Bonds" under the Act.
"Delegate" means the Supervisor designated by the governing board of each Member to
serve on the Board of the Authority.
"Executive Committee" means the nine -member Executive Committee of the Board
established pursuant to Section 10 hereof.
"Member" means any county which is a member of RCRC, has executed this Agreement
and has become a member of the Authority.
"Obligations" means bonds, notes, warrants, leases, certificates of participation, installment
purchase agreements, loan agreements and other securities or obligations issued by the Authority,
or financing agreements entered into by the Authority pursuant to the Act and any other financial
or legal obligation of the Authority under the Act.
"Program" or "Project" means any work, improvement, program, project or service
undertaken by the Authority.
"Rural County Representatives of California." or "RCRC" means the nonprofit entity
incorporated under that name in the State of California.
"Supervisor" means an elected County Supervisor from an RCRC member county.
The purpose of the Authority is to provide financing for the acquisition, construction, ,
improvement and rehabilitation of real property in accordance with applicable provisions of law
for the benefit of residents and communities. In pursuit of this purpose, this Agreement provides
for the joint exercise of powers common to any of its Members and Associate Members as
provided herein, or otherwise authorized by the Act and other applicable laws, including assisting
E
in financing as authorized herein, jointly exercised in the manner set forth herein.
3. Principal Place of Business
The principal office of the Authority shall be 1215 K Street, Suite 1650, Sacramento,
California 95814.
4. Creation of Authority; Addition of Members or Associate Members
a. The Authority is hereby created pursuant to the Act. As provided in the Act, the
Authority shall be a public entity separate and distinct from the Members or Associate Members.
b. The Authority «rill cause a notice of this Agreement or any amendment hereto to
be prepared and filed with the office of the Secretary of State of California in a timely fashion in
the manner set forth in Section 6503.3 of the Act.
C. A county that is a member of RCRC may petition to become a member of the
Authority by submitting to the Board a resolution or evidence of other formal action taken by its
governing body adopting this Agreement. The Board shall review the petition for membership
and shall vote to approve or disapprove the petition. If the petition is approved by a majority of
the Board, such county shall immediately become a Member of the Authority.
d. An Associate Member may be added to the Authority upon the affirmative
approval of its respective governing board and pursuant to action by the Authority Board upon
such terms and conditions, and with such rights, privileges and responsibilities, as may be
established from time to time by the Board. Such terms and conditions, and rights, privileges and
responsibilities may vary among the Associate Members. Associate Members shall be entitled to
participate in one or more programs of the Authority as determined by the Board, but shall not be
voting members of the Board. The Executive Director of the Authority shall enforce the terms
and conditions for prospective Associate Members to the Authority as provided by resolution of
the Board and as amended from time to time by the Board. Changes in the terms and conditions
for Associate Membership by the Board will not constitute an amendment of this Agreement.
5. Term and Termination of Powers
This Agreement shall become effective from the date hereof until the earlier of the time
when all Bonds and any interest thereon shall have been paid in full, or provision for such
payment shall have been made, or when the Authority shall no longer own or hold any interest in a
public capital improvement or program. The Authority shall continue to exercise the powers
herein conferred upon it until termination of this Agreement, except that if any Bonds are issued
and delivered, in no event shall the exercise of the powers herein granted be terminated until all
Bonds so issued and delivered and the interest thereon shall have been paid or provision for such
payment shall have been made and any other debt incurred with respect to any other financing
program established or administered by the Authority has been repaid in full and is no longer
outstanding.
6. Powers; Restriction upon Exercise
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a. To effectuate its purpose, the Authority shall have the power to exercise any and all
powers of the Members or of a joint powers authority under the Act and other applicable
provisions of law, subject, however, to the conditions and restrictions herein contained. Each
Member or Associate Member may also separately exercise any and all such powers. The powers
of the Authority are limited to those of a general law county.
b. The Authority may adopt, from time to time, such resolutions, guidelines, rules and
regulations for the conduct of its meetings and the activities of the Authority as it deems necessary
or desirable to accomplish its purpose.
C. The Authority shall have the power to finance the construction, acquisition,
improvement and rehabilitation of real property, including the power to purchase, with the
amounts received or to be received by it pursuant to a bond purchase agreement, bonds issued by
any of its Members or Associate Members and other local agencies at public or negotiated sale, for
the purpose set forth herein and in accordance with the Act. All or any part of such bonds so
purchased may be held by the Authority or resold to public or private purchasers at public or
negotiated sale. The Authority shall set any other terms and conditions of any purchase or sale
contemplated herein as it deems necessary or convenient and in furtherance of the Act. The
Authority may issue or cause to be issued Bonds or other indebtedness, and pledge any of its
property or revenues as security to the extent permitted by resolution of the Board under any
applicable provision of law. The Authority may issue Bonds in accordance with the Act in order
to raise funds necessary to effectuate its purpose hereunder and may enter into agreements to
secure such Bonds. The Authority may issue other forms of indebtedness authorized by the Act,
and to secure such debt, to further such purpose. The Authority may utilize other forms of capital,
including, but not limited to, the Authority's internal resources, capital markets and other forms of
private capital investment authorized by the Act..
d. The Authority is hereby authorized to do all acts necessary for the exercise of its
powers, including, but not limited to:
(1) executing contracts,
(2) employing agents, consultants and employees,
(3) acquiring, constructing or providing for maintenance and operation of any
building, work or improvement,
(4) acquiring, holding or disposing of real or personal property wherever
located, including property subject to mortgage,
(5) incurring debts, liabilities or obligations,
(6) receiving gifts, contributions and donations of property, funds, services and
any other forms of assistance from persons, firms, corporations or
governmental entities,
(7) suing and being sued in its own name, and litigating or settling any suits or
claims,
(8) doing any and all things necessary or convenient to the exercise of its
specific powers and to accomplishing its purpose
(9) establishing and/or administering districts to finance and refinance the
acquisition, installation and improvement of energy efficiency, water
W
conservation and renewable energy improvements to or on real property
and in buildings. The Authority may enter into one or more agreements,
including without limitation, participation agreements and implementation
agreements to implement such programs.
e. Subject to the applicable provisions of any indenture or resolution providing for the
investment of monies held thereunder, the Authority shall have the power to invest any of its funds
as the Board deems advisable, in the same manner and upon the same conditions as local agencies
pursuant to Section 53601 of the Government Code of the State of California.
f. All property, equipment, supplies, funds and records of the Authority shall be
owned by the Authority, except as may be provided otherwise herein or by resolution of the
Board.
g. Pursuant to the provisions of Section 6508.1 of the Act, the debts, liabilities and
obligations of the Authority shall not be debts, liabilities and obligations of the Members or
Associate Members. Any Bonds, together with any interest and premium thereon, shall not
constitute debts, liabilities or obligations of any Member. The Members or Associate Members
hereby agree that any such Bonds issued by the Authority shall not constitute general obligations of
the Authority but shall be payable solely from the moneys pledged to the repayment of principal or
interest on such Bonds under the terms of the resolution, indenture, trust, agreement or other
instrument pursuant to which such Bonds are issued. Neither the Members or Associate
Members nor the Authority shall be obligated to pay the principal of or premium, if any, or
interest on the Bonds, or other costs incidental thereto, except from the revenues and funds
pledged therefor, and neither the faith and credit nor the taxing power of the Members or
Associate Members or the Authority shall be pledged to the payment of the principal of or
premium, if any, or interest on the Bonds, nor shall the Members or Associate Members of the
Authority be obligated in any manner to make any appropriation for such payment. No covenant
or agreement contained in any Bond shall be deemed to be a covenant or agreement of any
Delegate, or any officer, agent or employee of the Authority in an individual capacity, and neither
the Board nor any officer thereof executing the Bonds or any document related thereto shall be
liable personally on any Bond or be subject to any personal liability or accountability by reason of
the issuance of any Bonds.
7. Governing Board
a. The Board shall consist of the number of Delegates equal to one representative
from each Member.
b. The governing body of each Member shall appoint one of its Supervisors to serve
as a Delegate on the Board. A Member's appointment of its Delegate shall be delivered in writing
(which may be by electronic mail) to the Authority and shall be effective until he or she is replaced
by such governing body or no longer a Supervisor; any vacancy shall be filled by the governing
body of the Member in the same manner provided in this paragraph b..
C. The governing body of each Member of the Board shall appoint a Supervisor as an
alternate to serve on the Board in the absence of the Delegate; the alternate may exercise all the
rights and privileges of the Delegate, including the right to be counted in constituting a quorum, to
participate in the proceedings of the Board, and to vote upon any and all matters. No alternate
may have more than one vote at any meeting of the Board, and any Member's designation of an
alternate shall be delivered in writing (which may be by electronic mail) to the Authority and shall
be effective until such alternate is replaced by his or her governing body or is no longer a
Supervisor, unless otherwise specified in such appointment. Any vacancy shall be filled by the
governing body of the Member in the same manner provided in this paragraph c..
d. Any person who is not a member of the governing body of a Member and who
attends a meeting on behalf of such Member may not vote or be counted toward a quorum but
may, at the discretion of the Chair, participate in open meetings he or she attends.
e. Each Associate Member may designate a non-voting representative to the Board
who may not be counted toward a quorum but who may attend open meetings, propose agenda
items and otherwise participate in Board Meetings.
f. Delegates shall not receive compensation for serving as Delegates, but may claim
and receive reimbursement for expenses actually incurred in connection with such service
pursuant to rules approved by the Board and subject to the availability of funds.
g. The Board shall have the power, by resolution, to the extent permitted by the Act
or any other applicable law, to exercise any powers of the Authority and to delegate any of its
functions to the Executive Committee or one or more Delegates, officers or agents of the
Authority, and to cause any authorized Delegate, officer or agent to take any actions and execute
any documents for and in the name and on behalf of the Board or the Authority.
h. The Board may establish such committees as it deems necessary for any lawful
purpose; such committees are advisory only and may not act or purport to act on behalf of the
Board or the Authority.
i. The Board shall develop, or cause to be developed, and review, modify as
necessary, and adopt each Program.
8. Meetings of the Board
a. The Board shall meet at least once annually, but may meet more frequently upon
call of any officer or as provided by resolution of the Board.
b. Meetings of the Board shall be called, noticed, held and conducted pursuant to the
provisions of the Ralph M. Brown Act, Chapter 9 (commencing with Section 54950) of Part I of
Division 2 of Tide 5 of the Government Code of the State of California.
C. The Secretary of the Authority shall cause minutes of all meetings of the Board to
be taken and distributed to each Member as soon as possible after each meeting.
d. The lesser of twelve (12) Delegates or a majority of the number of current
Delegates shall constitute a quorum for transacting business at any meeting of the Board, except
UA•
that less than a quorum may act to adjourn a meeting. Each Delegate shall have one vote.
e. Meetings may be held at any location designated in notice properly given for a
meeting and may be conducted by telephonic or similar means in any manner otherwise allowed
by law.
9. Officers; Duties; Official Bonds
a. The Board shall elect a chair and vice chair from among the Delegates at the
Board's annual meeting who shall serve a term of one (1) year or until their respective successor is
elected. The chair shall conduct the meetings of the Board and perform such other duties as may
be specified by resolution of the Board. The vice chair shall perform such duties in the absence or
in the event of the unavailability of the chair.
b. The Board shall contract annually with RCRC to administer the Agreement and to
provide administrative services to the Authority, and the President and Chief Executive Officer of
RCRC shall serve ex officio as Executive Director, Secretary, Treasurer, and Auditor of the
Authority. As chief executive of the Authority, the Executive Director is authorized to execute
contracts and other obligations of the Authority, unless prior Board approval is required by a third
party, by law or by Board specification, and to perform other duties specified by the Board. The
Executive Director may appoint such other officers as may be required for the orderly conduct of
the Authority's business and affairs who shall serve at the pleasure of the Executive Director.
Subject to the applicable provisions of any indenture or resolution providing for a trustee or other
fiscal agent, the Executive Director, as Treasurer, is designated as the custodian of the Authority's
funds, from whatever source, and, as such, shall have the powers, duties and responsibilities
specified in Section 6505.5 of the Act. The Executive Director, as Auditor, shall have the powers,
duties and responsibilities specified in Section 6505.5 of the Act.
C. The Legislative Advocate for the Authority shall be the Rural County
Representatives of California.
d. The Treasurer and Auditor are public officers who have charge of, handle, or have
access to all property of the Authority, and a bond for such officer in the amount of at least one
hundred thousand dollars ($100,000.00) shall be obtained at the expense of the Authority and
filed with the Executive Director. Such bond may secure the faithful performance of such
officer's duties with respect to another public office if such bond in at least the same amount
specifically mentions the office of the Authority as required herein. The Treasurer and Auditor
shall cause periodic independent audits to be made of die Authority's books by a certified public
accountant, or public accountant, in compliance with Section 6505 of the Act.
e. The business of the Authority shall be conducted under the supervision of the
Executive Director by RCRC personnel.
10. Executive Committee of the Authority
a. Composition
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The Authority shall appoint nine (9) members of its Board to serve on an Executive
Committee.
b. Powers and Limitations
The Executive Committee shall act in an advisory capacity and make
recommendations to the Authority Board. Duties will include, but not be limited to, review of the
quarterly and annual budgets, service as the Audit Committee for the Authority, periodically
review this Agreement; and complete any other tasks as may be assigned by the Board. The
Executive Committee shall be subject to all limitations imposed by this Agreement, other
applicable law, and resolutions of the Board.
Quorum
A majority of the Executive Committee shall constitute a quorum for transacting
business of the Executive Committee.
11. Disposition of Assets
Upon termination of this Agreement, all remaining assets and liabilities of the Authority
shall be distributed to the respective Members in such manner as shall be determined by the
Board and in accordance with the law.
12. Agreement Not Exclusive; Operation in Jurisdiction of Member
This Agreement shall not be exclusive, and each Member expressly reserves its rights to
carry out other public capital improvements and programs as provided for by law and to issue
other obligations for those purposes. This Agreement shall not be deemed to amend or alter the
terms of other agreements among the Members or Associate Members.
13. Conflict of Interest Code
The Authority shall by resolution adopt a Conflict of Interest Code as required by law.
14. Contributions and Advances
Contributions or advances of public funds and of personnel, equipment or property may
be made to the Authority by any Member, Associate Member or any other public agency to
further the purpose of this Agreement. Payment of public funds may be made to defray the cost of
any contribution. Any advance may be made subject to repayment, and in that case shall be repaid
in the manner agreed upon by the advancing Member, Associate Member or other public agency
and the Authority at the time of making the advance.
15. Fiscal Year; Accounts; Reports; Annual Budget; Administrative Expenses
a. The fiscal year of the Authority shall be the period from January 1 of each year to
and including the following December 31, except for any partial fiscal year resulting from a change
we
in accounting based on a different fiscal year previously.
b. Prior to the beginning of each fiscal year, the Board shall adopt a budget for the
succeeding fiscal year.
C. The Authority shall establish and maintain such funds and accounts as may be
required by generally accepted accounting principles. The books and records of the Authority are
public records and shall be open to inspection at all reasonable times by each Member and its
representatives.
d. The Auditor shall either make, or contract with a certified public accountant or
public accountant to make, an annual audit of the accounts and records of the Authority. The
minimum requirements of the audit shall be those prescribed by the State Controller for special
districts under Section 26909 of the Government Code of the State of California, and shall
conform to generally accepted auditing standards. When an audit of accounts and records is made
by a certified public accountant or public accountant, a report thereof shall be filed as a public
record with each Member (and also with the auditor of Sacramento County as the county in which
the Authority's office is located) within 12 months after the end of the fiscal year.
e. In any year in which the annual budget of the Authority does not exceed five
thousand dollars ($5,000.00), the Board may, upon unanimous approval of the Board, replace the
annual audit with an ensuing one-year period, but in no event for a period longer than two fiscal
years.
16. Duties of Members or Associate Members; Breach
If any Member or Associate Member shall default in performing any covenant contained
herein, such default shall not excuse that Member or Associate Member from fulfilling its other
obligations hereunder, and such defaulting Member or Associate Member shall remain liable for
the performance of all covenants hereof. Each Member or Associate Member hereby declares
that this Agreement is entered into for the benefit of the Authority created hereby, and each
Member or Associate Member hereby grants to the Authority the right to enforce, by whatever
lawful means the Authority deems appropriate, all of the obligations of each of the parties
hereunder. Each and all of the remedies given to the Authority hereunder or by any law now or
hereafter enacted are cumulative, and the exercise of one right or remedy shall not impair the right
of the Authority to any or all other remedies.
17. Indemnification
To the full extent permitted by law, the Board may authorize indemnification by the
Authority of any person who is or was a Board Delegate, alternate, officer, consultant, employee or
other agent of the Authority, and who was or is a party or is threatened to be made a party to a
proceeding by reason of the fact that such person is or was such a Delegate, alternate, officer,
consultant, employee or other agent of the Authority. Such indemnification may be made against
expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in
connection with such proceeding, if such person acted in good faith and in a manner such person
reasonably believed to be in the best interests of the Authority and, in the case of a criminal
21
proceeding, had no reasonable cause to believe his or her conduct was unlawful and, in the case of
an action by or in the right of the Authority, acted with such care, including reasonable inquiry, as
an ordinarily prudent person in a like position would use under similar circumstances.
18. Immunities
All of the privileges and immunities from liabilities, exemptions from law, ordinances and
rules, all pension, relief, disability, workers' compensation and other benefits which apply to the
activity of officers, agents or employees of any of the Members or Associate Members when
performing their respective functions, shall apply to them to the same degree and extent while
engaged as Delegates or otherwise as an officer, agent or other representative of the Authority or
while engaged in the performance of any of their functions or duties under the provisions of this
Agreement.
19. Amendment
This Agreement may be amended by the adoption of the amendment by the governing
bodies of a majority of the Members. The amendment shall become effective on the first day of
the month following the last required member agency approval. An amendment may be initiated
by the Board, upon approval by a majority of the Board. Any proposed amendment, including the
text of the proposed change, shall be given by the Board to each Member's Delegate for
presentation and action by each Member's board within 60 days, which time may be extended by
the Board.
The list of Members, Attachment 1, may be updated to reflect new and/or withdrawn
Members without requiring formal amendment `of the Agreement by the Authority Board of
Directors.
20. Withdrawal of Member or Associate Member
If a Member withdraws as member of RCRC, its membership in the Authority shall
automatically terminate. A Member or Associate Member may withdraw from this Agreement
upon written notice to the Board; provided however, that no such withdrawal shall result in the
dissolution of the Authority as long as any Bonds or other obligations of the Authority remain
outstanding. Any such withdrawal shall become effective thirty (30) days after a resolution adopted
by the Member's governing body which authorizes withdrawal is received by the Authority.
Notwithstanding the foregoing, any termination of membership or withdrawal from the Authority
shall not operate to relieve any terminated or withdrawing Member or Associate Member from
Obligations incurred by such terminated or withdrawing Member or Associate Member prior to
the time of its termination or withdrawal.
20. Miscellaneous
a. Counterparts. This Agreement may be executed in several counterparts, each of
which shall be an original and all of which shall constitute but one and the same instrument.
b. Construction. The section headings herein are for convenience only and are not to
be construed as modifying or governing the language in the section referred to.
C. Approvals. Wherever in this Agreement any consent or approval is required, the
same shall not be unreasonably withheld.
d. Jurisdiction; Venue. This Agreement is made in the State of California, under the
Constitution and laws of such State and is to be so construed; any action to enforce or interpret its
terms shall be brought in Sacramento County, California.
e. Integration. This Agreement is the complete and exclusive statement of the
agreement among the parties hereto, and it supersedes and merges all prior proposals,
understandings, and other agreements, whether oral, written, or implied in conduct, between and
among the parties relating to the subject matter of this Agreement.
f. Successors; Assignment. This Agreement shall be binding upon and shall inure to
the benefit of the successors of the parties hereto. Except to the extent expressly provided herein,
no Member may assign any right or obligation hereunder without the consent of the Board.
g. Severability. Should any part, term or provision of this Agreement be decided by
the courts to be illegal or in conflict with any law of the State of California, or otherwise be
rendered unenforceable or ineffectual, the validity of the remaining parts, terms or provisions
hereof shall not be affected thereby.
The parties hereto have caused this Agreement to be executed and attested by their properly
authorized officers.
AS ADOPTED BY THE MEMBERS:
Originally dated July 1, 1993
Amended and restated December 10, 1998
Amended and restated February 18, 1999
Amended and restated September 18, 2002
Amended and restated January 28, 2004
Amended and restated December 10, 2014
f SIGNATURES ONFOLL0WING PAGES]
23
SIGNATURE PAGE FOR NEW ASSOCIATE MEMBERS
NAME OF COUNTY OR CITY:
Dated:
By:_
Name:
Title:
Attest:
By
[Clerk of the Board Supervisors or City Clerk]
AFTER EXECUTION, PLEASE SEND TO:
Golden State Finance Authority
(formerly California Home Finance Authority)
1215 K Street, Suite 1650
Sacramento, CA 95814
Ct'
11
• 1 •' • 1 1 i' 1 1: '
As of December 10 2014
Alpine County
Amador County
Butte County
Calaveras County
Colusa County
Del Norte County
El Dorado County
Glenn County
Humboldt County
Imperial County
Inyo County
Lake County
Lassen County
Madera County
Mariposa County
Mendocino County
Merced County
Modoc County
Mono County
Napa County
Nevada County
Placer County
Plumas County
San Benito County
Shasta County
Sierra County
Siskiyou County
Sutter County
Tehama County
Trinity County
Tuolumne County
Yolo County
Yuba County
CEJ