HomeMy WebLinkAbout1J OCR
CITY COUNCIL STAFF REPORT
DATE: JUNE 5, 2023 CONSENT CALENDAR
SUBJECT: CONSIDERATION OF A RESOLUTION CONSENTING TO THE
INCLUSION OF THE PROPERTY LOCATED AT 3500 RAMON ROAD,
PALM SPRINGS, CALIFORNIA, IN THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY OPEN PACE PROGRAM
FROM: Scott C. Stiles, City Manager
BY: Office of Sustainability
SUMMARY:
Staff requests that the City Council consider a resolution that would allow the property at
3500 Ramon Road to be included in the CSCDA Open PACE Program, enabling the
property owners to access special financing for the installation of energy efficiency,
distributed renewable energy efficiency, electric vehicle charging infrastructure, and other
eligible improvements.
RECOMMENDATION:
Approve the resolution consenting to the inclusion of the property located at 3500 Ramon
Road (“Airport Parking”) in the CSCDA Open PACE Program.
BACKGROUND:
The California Statewide Communities Development Authority (“CSCDA”)1, the largest
joint powers authority in California, was founded and sponsored by the League of
California Cities and the California State Association of Counties. The City of Palm
Springs is a member of CSCDA. CSCDA has implemented Property Assessed Clean
Energy (“PACE”) under the provisions of Chapter 29 of Division 7 of the Streets &
Highways Code (“Chapter 29”) on behalf of its member counties and cities. Chapter 29
authorizes a legislative body to designate an area within which a public agency (including
1 The California Statewide Communities Development Authority (CSCDA) was created in 1988, under
California’s Joint Exercise of Powers Act, to provide California’s local governments with an effective tool for
the timely financing of community-based public benefit projects. CSCDA has over 530 member agencies
and is a Joint Powers Authority and conduit bond issuer founded and sponsored by the League of California
Cities and the California State Association of Counties. More information about CSCDA is available at
www.cscda.org.
Item 1J - Page 1
City Council Staff Report
June 5, 2023 -- Page 2
PACE Program – Airport Parking
a joint powers authority like CSCDA) and property owners may enter into voluntary
contractual assessments to finance and refinance the installation on real property of
distributed generation renewable energy, energy efficiency, water efficiency and seismic
strengthening improvements, electric vehicle charging infrastructure and such other
improvements, infrastructure or work as may be authorized by law from time to time
(collectively, the “Improvements”).
PACE has been approved and is available in over 460 cities and counties throughout the
State. The two projects seeking authorization at this meeting of the City Council represent
the first two Commercial PACE projects supported by the CSCDA in Palm Springs. Cities
must consent to the CSCDA’s conduct of special assessment proceedings pursuant to
Chapter 29 and the issuance of bonds to finance or refinance the installation of eligible
improvements on the participating property for financing to be authorized.
CSCDA has established the CSCDA Open PACE Program to provide financing for
Improvements under Chapter 29 and designated multiple third-party program
administrators, including GreenRock Capital, LLC and Poppy Bank (collectively,
“Program Administrators”), to offer CSCDA’s members turn-key PACE solutions.
STAFF ANALYSIS:
The owner (the “Participating Property Owner”) of the property located at 3500 Ramon
Road, Palm Springs, California (the “Participating Property”) has asked the Authority and
the Program Administrators to provide financing through the CSCDA Open PACE
Program for the installation of Improvements (including solar panels and electric vehicle
charging stations) on the Participating Property as part of the construction of a covered
parking lot adjacent to the Palm Springs International Airport (the “Project”).
The Participating Property’s participation in the CSCDA Open PACE Program would allow
the Participating Property Owner to finance the Improvements authorized by Chapter 29.
The Improvements installed on the Participating Property would be financed by the
issuance of bonds by CSCDA. The bonds would be secured by a voluntary contractual
assessment levied on the Participating Property and collected as part of the regular
county property tax bill.
CSCDA has pre-qualified the Program Administrators based on their business practices,
qualifications, experience, and capital commitment to the PACE market, and CSCDA (and
not the City of Palm Springs) will be responsible for entering into the voluntary contractual
assessment agreement with the Participating Property Owner, levying the voluntary
contractual assessment on the Participating Property, issuing bonds to finance the
Improvements and taking remedial actions in the event of delinquent assessment
payments. The resolution expressly provides that the City of Palm Springs 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 assessment payments, or
the issuance, sale or administration of any bonds issued by CSCDA.
Item 1J - Page 2
City Council Staff Report
June 5, 2023 -- Page 3
PACE Program – Airport Parking
The proposed approval is limited to the property located at 3500 Ramon Road; no other
properties in the City would be allowed to participate in the CSCDA Open PACE Program
without the approval of the City Council.
ENVIRONMENTAL ASSESSMENT:
Environmental review has not yet been completed for the project. The proposed approval
provides that CSCDA may not issue bonds to finance or refinance the installation of
Improvements on the Participating Property until the Participating Property Owner has
provided evidence to CSCDA that the City has approved the Project in compliance with
the California Environmental Quality Act.
ALIGNMENT WITH STRATEGIC PLANNING:
This resolution aligns with the City Council’s sustainability priorities.
FISCAL IMPACT:
There is no negative fiscal impact to the City’s general fund by consenting to the
participation of the Participating Property in the CSCDA Open PACE Program.
REVIEWED BY:
Department Director: Lindsey-Paige McCloy
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Resolution
Item 1J - Page 3
ATTACHMENT A
Item 1J - Page 4
RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, CONSENTING TO THE
INCLUSION OF THE PROPERTY LOCATED AT 3500
RAMON ROAD, PALM SPRINGS, CALIFORNIA IN THE
CSCDA OPEN PACE PROGRAM; AUTHORIZING THE
CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY TO ACCEPT AN
APPLICATION FROM THE OWNER OF SUCH PROPERTY,
CONDUCT CONTRACTUAL ASSESSMENT
PROCEEDINGS AND LEVY CONTRACTUAL
ASSESSMENTS ON SUCH PROPERTY; AND
AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority (the
“Authority”) is a joint exercise of powers authority, the members of which include
numerous cities and counties in the State of California, including the City of Palm Springs
(the “City”); and
WHEREAS, Chapter 29 of Division 7 of the Streets & Highways Code (“Chapter
29”) authorizes the Authority to establish voluntary contractual assessment programs to
finance or refinance renewable energy, energy efficiency, water efficiency and seismic
strengthening improvements, electric vehicle charging infrastructure and such other
improvements, infrastructure or other work as may be authorized by law from time to time
(collectively, the “Improvements”) through the levy of contractual assessments within
counties and cities throughout the State of California that consent to the participation of
properties within their respective territories and the issuance of bonds from time to time;
and
WHEREAS, for the purpose of providing financing and refinancing for the
Improvements, the Authority has established the CSCDA Open PACE Program; and
WHEREAS, the Authority has designated multiple third-party program
administrators to administer the CSCDA Open PACE Program, including GreenRock
Capital, LLC and Poppy Bank (collectively, “Program Administrators”); and
WHEREAS, Chapter 29 provides that assessments may be levied under its
provisions only with the free and willing consent of the owner or owners of each lot or
parcel on which an assessment is levied at the time the assessment is levied; and
WHEREAS, the owner (the “Participating Property Owner”) of the property located
at 3500 Ramon Road, Palm Springs, California (the “Participating Property”) has asked
the Authority and the Program Administrators to provide financing through the CSCDA
Open PACE Program for the installation of Improvements (including solar panels and
electric vehicle charging stations) on the Participating Property as part of the construction
Item 1J - Page 5
of a covered parking lot adjacent to the Palm Springs International Airport (the “Project”),
and the City desires to allow the Participating Property Owner to participate in the CSCDA
Open PACE Program and to allow the Authority to conduct assessment proceedings
under Chapter 29 within its territory and to issue bonds to finance or refinance the
installation of Improvements on the Participating Property; and
WHEREAS, the Authority will conduct all assessment proceedings under Chapter
29 for the Participating Property and issue any bonds related to the Participating Property,
and 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 any bonds issued in
connection with the Participating Property;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby finds and declares that the Participating
Property will benefit from participating in the CSCDA Open PACE Program and, pursuant
thereto, the conduct of special assessment proceedings by the Authority pursuant to
Chapter 29 and the issuance of bonds to finance or refinance the installation of
Improvements on the Participating Property.
SECTION 2. The City hereby consents to the conduct of special assessment
proceedings by the Authority pursuant to Chapter 29 on the Participating Property and
the issuance of bonds to finance or refinance the installation of Improvements on the
Participating Property; provided, that:
(1) the Participating Property Owner, who shall be the legal owner of
such property, executes a contract pursuant to Chapter 29 and complies with other
applicable provisions of California law in order to accomplish the valid levy of
assessments; and
(2) 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 any bonds issued by the Authority in connection with the
Participating Property.
SECTION 3. The City Manager or designee is hereby authorized and directed to
execute and deliver such certificates, requisitions, agreements and related documents as
are reasonably required by the Authority to implement the authorization accomplished by
this Resolution. The City Manager or designee is hereby designated as the contact
persons for the Authority in connection with the CSCDA Open PACE Program.
Item 1J - Page 6
SECTION 4. The City’s consent is subject to the condition that the Authority shall
not issue bonds to finance or refinance the installation of Improvements on the
Participating Property until the Participating Property Owner has provided evidence to the
Authority that the City has approved the Project in compliance with the California
Environmental Quality Act (“CEQA”).
SECTION 5. 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 the Secretary of the Authority at: Secretary of the Board, California Statewide
Communities Development Authority, 1400 K Street, Sacramento, CA 95814.
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 5TH DAY OF JUNE, 2023.
SCOTT C. STILES
CITY MANAGER
ATTEST:
BRENDA PREE
CITY CLERK
Item 1J - Page 7
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. ____ is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on _______________________,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal
of the City of Palm Springs, California, this ______ day of ______________, _________.
Brenda Pree, City Clerk
City of Palm Springs, California
Item 1J - Page 8