HomeMy WebLinkAboutItem 11d - Open Property Assessed Clean Energy ("PACE") ProgramResolution No.7353 – Open PACE Programs
March 2, 2021
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DATE: March 2, 2021
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
By: Janessa Kalanjian, Administrative Assistant
SUBJECT: RESOLUTION NO. 7353 CONSENTING TO THE INCLUSION OF
PROPERTIES WITHIN THE CITY IN THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY OPEN PACE PROGRAM;
AUTHORIZING THE AUTHORITY TO ACCEPT APPLICATIONS FROM
PROPERTY OWNERS; AND AUTHORIZING RELATED ACTIONS
Recommendation: Adopt
SUMMARY
Since 1988, the City has been a member of the California Statewide Communities
Development Authority (“CSCDA”), the Authority which operates the Open Property
Assessed Clean Energy (“PACE”) program. In part, PACE allows developers to seek
financing for projects that provide energy efficiency improvements. Recently, the
developer of the Le Meridian Hotel and mixed-use project approached the City with a
request to authorize the Open PACE program to enable them to seek financing for this
project. By opting into the Open PACE program, the City will provide qualifying property
owners (such as the Le Meridian) with more financing options for energy efficiency
improvements.
BACKGROUND
The CSCDA was founded and sponsored by the League of California Cities and the
California State Association of Counties and is the largest joint powers authority in
California. Over time, the CSCDA has implemented the PACE program under the
provisions of Chapter 29 of Division 7 of the Streets & Highways Code (“Chapter 29”) on
behalf of its member cities and counties. Chapter 29 authorizes a legislative body to
designate an area within which a public agency (including a joint powers authority such
as CSCDA) and a property owner may enter into voluntary contractual assessments to
finance and/or refinance the installment of renewable energy, energy/water efficiency,
seismic strengthening, electric vehicle charging infrastructure, and other improvements.
Resolution No.7353 – Open PACE Programs
March 2, 2021
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To opt into the Open PACE program, a City must adopt a resolution of authorization. To
date, nearly 400 municipal entities in California have opted into the program. In the San
Gabriel Valley, the Cities of Pasadena, Azusa, Claremont, Glendora, Glendale, Monterey
Park, San Gabriel, Walnut, West Covina, Baldwin Park, Duarte, and El Monte have all
opted in. Specifically, the developer of the Le Meridian project has worked with the City
of San Gabriel in the past on this effort to secure financing for a project there. More
information about the CSCDA and the Open PACE program is available at
www.cscda.org.
DISCUSSION
The Open PACE program provides property owners with financing options for the
Improvements authorized by Chapter 29, which include renewable energy, energy and
water efficiency improvements, seismic improvements, and electric vehicle charging
infrastructure on their property. Property owners can choose from the available Open
PACE administrators offering competitive financing which may not be available outside
this program. Open PACE financing is completed through issuance of bonds that are
levied on the owner’s property and collected as part of the property tax. To make the
Open PACE program available to property owners, the City needs to adopt a single
resolution which will provide access to the PACE approved administrators. The City will
have no obligation to pay the bonds and no administrative duties as the agreements would
be between the PACE administrator and property owner.
Authorizing the Open PACE program in the City will provide more options for financing
and incentive to include environmental upgrades in new buildings and improvements.
Although this effort is initially being pursued in response to a request from the Le Meridian
developer, the program would be available over time to other commercial or residential
developers who applied for financing through the Open PACE programs. Providing this
option for developers and property owners provides another path toward financing of
projects in a sustainable manner. As such, it is recommended that the City Council agree
to opt into the CSADA’s Open PACE program.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”) under Section 15051 (b)(3) of the CEQA Guidelines, as it can be
seen with certainty that it will have no impact on the environment. Thus, this matter is
exempt under CEQA.
FISCAL IMPACT
There is no fiscal impact associated with consenting to the inclusion of properties within
the City in the CSCDA’s Open PACE program. All administrative costs are covered
Resolution No.7353 – Open PACE Programs
March 2, 2021
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through an administrative fee which is collected on the property owner’s tax bill and all
future transactions under the program will not involve City financial involvement.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project and is therefore, exempt under, the California Environmental Quality Act
(“CEQA”); adopt Resolution No. 7353 consenting to the inclusion of properties within the
City in the California Statewide Communities Development Authority Open PACE
programs; authorizing the Authority to accept applications from property owners; and
authorizing related actions.
Attachments: Resolution No. 7353
Letter from Le Meridian Developer requesting the City to opt-in