Document elcerrito_gov_doc_19914002d5

AGENDA BILL Agenda Item No. 7(B) Date: March 17, 2015 To: El Cerrito City Council From: Melanie Mintz, Interim Community Development Director Emily Alter, Community Development Analyst/Consultant Subject: Property Assessed Clean Energy Financing Program ACTION REQUESTED 1) Adopt a resolution authorizing the City of El Cerrito to become a member of the California Statewide Communities Development Authority Joint Powers Authority (CSCDA), subject to the execution of an amended and restated joint exercise of powers agreement with the CSCDA. 2) Adopt a resolution authorizing the City to Join the CaliforniaFIRST Property Assessed Clean Energy (PACE) Program, provided through the CSCDA Joint Powers Authority, subject to the execution of an agreement for the CaliforniaFIRST program to indemnify the City. 3) Adopt a resolution authorizing the City to join the Open PACE Program, provided through the CSCDA Joint Powers Authority. 4) Adopt a resolution authorizing the City to become a member of the Western Riverside Council of Governments Joint Powers Authority (WRCOG) and participate in the California HERO program, subject to the execution of an agreement for the California HERO Program to indemnify the City. 5) Adopt a resolution authorizing the City to become a member of the California Enterprise and Development Authority Joint Powers Authority (CEDA) and participate in the Figtree PACE program. ---PAGE BREAK--- Agenda Item No. 7(B) Page 2 BACKGROUND The City of El Cerrito’s Climate Action Plan (CAP), adopted May 2013, recommends that the City: • Pursue commercial Property Assessed Clean Energy (PACE) financing in conjunction with other public entities; and • Adopt residential PACE financing if it becomes available in California. Over 250 cities and 50 percent of California’s population now have access to PACE programs, which establish special assessment districts to provide property owners with voluntary financing tools to finance energy and water efficiency projects, electric vehicle charging infrastructure and seismic improvements. In 2008, the City of Berkeley established the first special financing district to help residents put solar on their roofs, but in 2010 the Federal Housing Financing Agency (FHFA) issued a directive to halt PACE financing because they believe it created more risks for Fannie Mae and Freddie Mac mortgages; the directive effectively stopped implementation of PACE programs, particularly in the residential market. On September 23, 2013, Governor Brown sent a letter to the FHFA advising that California will establish a mechanism under the California Energy and Advanced Transportation Financing Authority (CAEATFA) to address the concerns raised by FHFA and protect the interest of Fannie Mae and Freddie Mac. The Governor proposed that the CAEATFA create a loan loss reserve for PACE programs to cover assessments in the case of any foreclosure or forced sale for unpaid taxes or special assessments. The full letter is attached (Attachment Since that time, a number of cities across the State have chosen to opt-in or reaffirm previous opt-in actions to CaliforniaFIRST, HERO, Figtree, Open PACE and/or other PACE programs, including the following Contra Costa County cities: • Antioch • Brentwood • Concord • Lafayette (reaffirmed) • Martinez (reaffirmed) • Oakley • Pleasant Hill • Richmond (reaffirmed) • San Pablo • San Ramon • Walnut Creek (reaffirmed) Collectively, PACE programs now operate in over 250 cities and 50 percent of the state’s population has access to PACE programs. ---PAGE BREAK--- Agenda Item No. 7(B) Page 3 Availability of PACE Programs Currently there are three Joint Powers Authorities (JPA) in California that operate PACE programs and make these programs available within their member agencies jurisdictions: 1. California Statewide Communities Development Authority (CSCDA) – CaliforniaFIRST Program and Open PACE Program 2. California Economic Development Authority (CEDA) – Figtree PACE Program 3. Western Riverside Council of Governments (WRCOG) – California HERO Program Each of these programs is operated on the assessment district model pursuant to AB 811. Each has its own policy regarding the availability of the PACE program to residential property owners. All three programs are non-exclusive, meaning that the City can make all three available to property owners to encourage market competition. Each JPA has retained the services of an administrator to market the programs, process the loan agreements with property owners and place the assessments on the property tax roll. These services are made available at no cost to the JPA or its member agencies as the administrative costs are rolled into the assessments that ultimately are paid for by the property owner who enters into the tax assessment to finance the energy/water efficiency improvements. Because assessments to fund improvements to private properties under a PACE program are different from traditional assessments that finance public improvements, prior to processing loan agreements under a PACE program, the JPA or governmental entity sponsoring the PACE program obtains court validation of the program to be implemented in a particular jurisdiction. 1. California Statewide Communities Development Authority – CaliforniaFIRST Program The California Statewide Communities Development Authority (CSCDA) is a state- wide JPA formed by the California State Association of Counties and the League of California Cities. CSCDA offers two PACE programs. CaliforniaFIRST, the first statewide PACE Program, is administered by Renewable Funding. The Open PACE Program is a new initiative intended to offer local governments a turn-key PACE program by providing multiple administrators under one program; based on the infancy of this program, City staff recommend opting into this program as just one of four PACE programs at this time. In the future, as additional administrators join the Open PACE program, the City will automatically have access to their services. CaliforniaFIRST Commercial PACE CaliforniaFIRST’s Commercial PACE offering uses an “open market” source of funding to finance the loans made to property owners. Under this model, the property owner may source financing either from private lenders with whom CaliforniaFIRST has established ---PAGE BREAK--- Agenda Item No. 7(B) Page 4 relationships, or from private lenders that the property owner identifies. CSCDA then issues a bond, secured by the assessment, to the private lender, the lender buys the bond, and then CSCDA disburses the bond sale proceeds to the property owner to implement the project. For commercial properties to participate, CSCDA requires affirmative acknowledgement by the mortgage lender of the “super first” lien position of the PACE assessment, in observance of prevailing mortgage contracts. CaliforniaFIRST Residential PACE CSCDA suspended the launch of the CaliforniaFIRST residential program in 2010 due to the FHFA issues discussed above. With the Governor’s establishment of the PACE Loss Reserve Program in 2014, CSCDA gave the CaliforniaFIRST Residential program the green light to launch its operations, which CaliforniaFIRST did in August, 2014. The CaliforniaFIRST Program is available to all residential properties and consent from residential lenders is not required. The CaliforniaFIRST residential loan application informs the loan applicant that the applicant should review the existing loan documents in order to determine whether entering into the CaliforniaFIRST loan would violate the existing loan. Staff recommends adopting a resolution to become a member of the CSCDA and to opt- in to the CaliforniaFIRST program to provide water and energy efficiency projects and seismic improvements (Attachment The Program Administrator has agreed to provide the City with and execute an indemnification and insurance agreement (Attachment 5) as described above. Open PACE CSCDA Open PACE is a 100% voluntary program being offered to allow property owners in participating cities and counties to finance renewable energy, energy water efficiency improvements, seismic improvements and electric vehicle charging infrastructure through the issuance of bonds by CSCDA. The bonds are secured by a voluntary contractual assessment levied on the owner’s property collected annually with property taxes. The OpenPACE program provides multiple program administrators to increase market competition with minimal work for City Staff; this is a new PACE model and currently offers two PACE administrators: CaliforniaFIRST and Alliance NRG. In the future, CSCDA may introduce more administrators to the Open PACE Program; these administrators’ services will automatically be made available to El Cerrito property owners. Staff recommends adopting a resolution to enable CSCDA Open PACE programs (Attachment 6) to be available to owners of residential and commercial property within El Cerrito to finance permanently fixed renewable energy, energy efficiency, water efficiency, and seismic strengthening improvements as well as electric vehicle charging infrastructure. CSCDA (and not the county or city) will be responsible for entering into voluntary contractual assessment agreements with participating property owners, levying the voluntary contractual assessments, issuing bonds to finance the Improvements and taking remedial actions in the event of delinquent assessment ---PAGE BREAK--- Agenda Item No. 7(B) Page 5 payments. The resolution expressly provides that the county or 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 assessment payments, or the issuance, sale or administration of any bonds issued in connection with CSCDA Open PACE. 2. Western Riverside Council of Governments – California HERO Program The Western Riverside Council of Governments (WRCOG) is a joint powers authority formed by various jurisdictions located in Western Riverside County. In December 2010, WRCOG established its PACE program known as the HERO Program that was limited to its members in the Western Riverside region. In August 2012, WRCOG amended its joint powers agreement in order to make its PACE program available throughout the State and named this program California HERO. California HERO Program The California HERO Program is administered and provided funding by Renovate America, Inc. for residential properties and by Samas Capital for commercial properties. WRCOG then issues bonds secured by the assessments that are purchased by Renovate America, Inc. and Samas Capital respectively. The California HERO Program is available to all residential properties and consent from residential lenders is not required. The California HERO residential loan application informs the loan applicant that the applicant should review existing loan documents in order to determine whether entering into the California HERO loan would violate the existing loan. For commercial properties, acknowledgement of any existing lender for the property is required in order to obtain a California HERO loan. In order to proceed with implementation of the California HERO in El Cerrito, the City Council will need to adopt a resolution authorizing the City to join WRCOG as an associate member and execute the associate membership agreement. Additionally, the City Council’s resolution will authorize WRCOG to conduct contractual assessment proceedings and to levy the assessments within El Cerrito. 3. California Economic Development Authority – Figtree PACE Program The California Economic Development Authority is a joint powers authority formed by the cities of Lancaster, Selma and Eureka (CEDA). The City of El Cerrito is not currently a member of CEDA. CEDA’s PACE program is known as the Figtree PACE program and is administered by Figtree Energy Financing. CEDA acts as the issuer of the municipal bonds that finance Figtree PACE projects. CEDA issues limited obligation bonds, notes or other forms of indebtedness secured by the contractual assessments revenue to finance improvements in the district in which it operates. These bonds are pooled to include multiple projects ---PAGE BREAK--- Agenda Item No. 7(B) Page 6 before being sold to investors on the open market. CEDA has authorized up to $500 million for the Figtree PACE program at this time. Figtree PACE Program Figtree PACE Program is currently available for commercial, industrial, and multifamily properties. For commercial properties subject to a loan, the Figtree PACE Program requires lender consent. The Figtree PACE Program will be made available to residential properties in April of 2015. In order to proceed with implementation of the Figtree PACE Program in El Cerrito, Staff recommends Council adopt a resolution to become a member of the CEDA JPA and authorizing CEDA to conduct contractual assessment proceedings and to levy assessments within El Cerrito. On July 16, 2013, CEDA obtained a judgment in a validation action for implementation of the Figtree PACE Program throughout the State of California. ANALYSIS PACE Programs allow property owners to finance renewable energy, energy and water efficiency improvements, electric vehicle charging infrastructure and seismic improvements on their property. The benefits to property owners of PACE programs include: - Eligibility: In today’s economic environment, alternatives for property owners to finance renewable energy/energy efficiency/water efficiency improvements, electric vehicle charging infrastructure or seismic improvements may not be available. As such, many property owners do not have financing options available that would provide funding for improvements that lower their utility bills. PACE Assessments prioritizes assessment of equity invested in the property when evaluating eligibility, as well as the property owner’s credit history, to provide flexibility and increase eligibility. - Savings: Energy prices continue to fluctuate. Installing energy efficient, water efficient and renewable energy improvements reduce utility bills. - 100% Voluntary: Property owners can choose to participate in the program at their own discretion. Improvements and properties must meet eligibility criteria in order to qualify for financing. Opting into multiple PACE programs provides additional flexibility for property owners. - Payment obligation stays with the property: Under Chapter 29, a voluntary contractual assessment stays with the property upon transfer of ownership, addressing a major barrier to renewable energy and efficiency improvement uptake. Note: certain residential conforming mortgage providers will, however, require the assessment be paid off at the time the property is refinanced or sold. Most private ---PAGE BREAK--- Agenda Item No. 7(B) Page 7 loans are due on sale of the benefited property, which makes it difficult for property owners to match the life of the repayment obligation with the useful life of the financed improvements. - Prepayment option: The property owner can choose to pay off the assessments at any time, subject to applicable prepayment penalties. - Lower Borrowing Costs: Regional aggregation provided by PACE Programs may produce a lower borrowing cost in some cases. Offering multiple PACE Programs increases competition in the market place to keep prices low. - Customer oriented program: Part of the success of the program is the prompt customer service. Committed funding partners provide funding upon project completion, resulting in both property owner and contractor satisfaction. The benefits to the City include: - Increase local jobs. - An increase in property values. - An increase in sales, payroll and property tax revenue. - As in conventional assessment financing, the City is not obligated to repay the bonds or to pay any delinquent assessments levied on the participating properties. - All California HERO Program and assessment administration, bond issuance and bond administration functions are handled by the PACE Program administrators. Little, if any, City staff time is needed to participate. - By leveraging the already successful PACE programs, the City can offer financing to property owners more quickly, easily and much less expensively than establishment of a new local Program. STRATEGIC PLAN CONSIDERATIONS Provision of Property Assessed Clean Energy financing options to residents and business owners will help to fulfill El Cerrito Strategic Plan Goal F, “Foster environmental sustainability citywide.” The program will help to implement the City’s Climate Action Plan by facilitating “energy and water efficiency and greater adoption of clean energy”, an objective of Goal F. The program helps to address up-front costs associated with efficiency and renewable energy projects. FINANCIAL CONSIDERATIONS There is no financial impact to the City. City staff time is not required to administer the program. ---PAGE BREAK--- Agenda Item No. 7(8) LEGAL CONSIDERATIONS The City Attorney has reviewed the proposed action and there are no legal issues. ReAff _ Scott Hanin, City Manager Attachments: 1. Attachment 1: Brown Loan Loss Reserve Letter 2. Attachment 2: Resolution to Join CSCDA 3. Attachment 3: CSCDA JPA Agreement 4. Attachment 4: Resolution to Opt-in to CaliforniaFIRST PACE . Program 5. · Attachment 5: CaliforniaFIRST Indemnification and Insurance Agreement 6. Attachment 6: Resolution to Opt-In to Open PACE Program 7. Attachment 7: Resolution to Join WRCOG and Opt-in to HERO PACE Program 8. Attachment 8: WRCOG JPA Agreement and Insurance and Indemnification Agreement 9. Attachment 9: Resolution to Join CEDA and Opt-in to Figtree PACE Program 10. Attachment 10: CEDA JPA Agreement Page 8 ---PAGE BREAK--- ATTACHMENT 2 OFFICE OF THE GOVERNOR September 23, 2013 Edward DeMarco Acting Director Federal Housing Finance Agency 1700 G Street, NW Washington, DC 20552-0003 Re: PACE Program in California; Resolution ofFannie Mae and Freddie Mac Issues Dear Mr, DeMarco: Last year, I asked President Obama to direct the Federal Housing Finance Agency to work with California to revive Property Assessed Clean Energy (PACE) programs, which provide home owners with funding for energy-efficiency retrofits. The Federal Housing Finance Agency prohibited Fannie Mac and Freddie Mac from purchasing mortgages subject to PACE liens in certain types of PACE programs. California has devised a mechanism that will address the concerns raised by FHFA and protect the interest of Fannie Mac and Freddie Mac, which I describe beiow. The Califomia Alternative Energy and Advanced Transportation Financing Authority (Authority), an existing state agency chaired by the California State Treasurer (Division 16 [commencing with Section 26000] of the Public Resources Code), will create a reserve fund for PACE programs. Any PACE program that wishes to use the reserve fund will enter an agreement that requires the PACE progrmn to make Farmie Mac and Freddie Mac whole, as follows: 1. In any foreclosure, for any losses to Fannie Mae and Freddie Mac resulting from the payment of any PACE assessment paid while in possession of the property, m~d 2. In any forced sale for unpaid taxes or special assessments, for any losses to Farmie Mac m~d Freddie Mac that result from PACE assessments being paid before the outstanding mortgage. GOVERNOR EDIvlUND G. BROWN JR. ¯ SACRAMENTO, CALIFORNIA 95814 ¯ (916) "145-2841 Agenda Item No. 7(B) Attachment 1 ---PAGE BREAK--- Edward DeMamo September 23, 2013 Page 2 PACE programs that em’oll in the Authority reserve fund will meet basic structural criteria, comply with underwriting criteria set by the Authority, and pay an annual premium based on file size of their portfolio. In the event of foreclosure, Faunie Mac and Freddie Mac will be able to claim fi’om the PACE program any amounts paid to keep the PACE assessment cm~rent until fl~e property is sold to a new buyer. If the property is sold for back taxes or special assessments, and the sale results in insufficient funds to satisfy the outstanding mortgage because of PACE lien priority payments, Fatmie Mae and Freddie Mac will be able to recover that mnount from the PACE program. In both instances, upon a sl~owing that Fannie Mae and Freddie Mac have been paid by the PACE program, the Authority will reimburse the PACE program. This process addresses the issues raised by the Federal Housing Finance Agency and that Fannie Mac and Freddie Mac will not be adversely impacted by the PACE first lien. The next step in moving this approach to fruition will be for the Auflaority to issue draft regulations for public comment, setting forth the requirements for PACE programs to participate in the reserve account. We will provide you with notice of that process and invite your participation. I look forward to moving ahead on a much larger scale with PACE in California. Sincerely, Edmund G. r. cc: Valerie Jarrett, Senior Advisor to the President House Alfred Pollard, General Counsel, Fede~ Finance Agency Bill Lockyer, Treasurer, State of California Members of the California Congressional Delegation ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 2 RESOLUTION 2015-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF AN AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY WHEREAS, the City of El Cerrito, California (City), has expressed an interest in participating in the economic development financing programs (Programs) in conjunction with the parties to that certain Amended and Restated Joint Exercise of Powers Agreement Relating to the California Statewide Communities Development Authority, dated as of June 1, 1988 (Agreement); and WHEREAS, there is now before the City Council the form of the Agreement; and WHEREAS, the City proposes to participate in the Programs and desires that certain projects to be located within the City be financed pursuant to the Programs and it is in the public interest and for the public benefit that the City do so; and WHEREAS, the Agreement has been filed with the City Clerk, and the members of the City Council of the City, with the assistance of its staff, have reviewed said document. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of El Cerrito as follows: Section 1. The Agreement is hereby approved and the City Manager is hereby authorized and directed to execute said document, with such changes, insertions and omissions as may be approved by said City Council, and the City Clerk is hereby authorized and directed to affix the City’s seal to said document and attest thereto. Section 2. The Mayor of the City, the City Manager, the City Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized. Section 3. The City Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to: Kathleen Jacobe Orrick, Herrington & Sutcliffe LLP 400 Capital Mall, Suite 3000 Sacramento, California 95814 BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon passage and adoption. I CERTIFY that at a regular meeting on March 17, 2015 the City Council of the City of El Cerrito passed this Resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 2 IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on March 17, 2015. Cheryl Morse, City Clerk APPROVED: Mark Friedman, Mayor ---PAGE BREAK--- AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY T H I S A G R E E M E N T , d a t e d a s o f J u n e 1 , 1 9 8 8 , b y a n d a m o n g t h e p a r t i e s e x e c u t i n g t h i s A g r e e m e n t ( a l l s u c h p a r t i e s , e x c e p t t h o s e w h i c h h a v e w i t h d r a w n i n a c c o r d a n c e w i t h S e c t i o n 1 3 h e r e o f , b e i n g h e r e i n r e f e r r e d t o a s t h e “ P r o g r a m P a r t i c i p a n t s ” ) : W I T N E S S E T H W H E R E A S , p u r s u a n t t o T i t l e 1 , D i v i s i o n 7 , C h a p t e r 5 o f t h e G o v e r n m e n t C o d e o f t h e S t a t e o f C a l i f o r n i a ( t h e “ J o i n t E x e r c i s e o f P o w e r s A c t ” ) , t w o o r m o r e p u b l i c a g e n c i e s m a y b y a g r e e m e n t j o i n t l y e x e r c i s e a n y p o w e r c o m m o n t o t h e c o n t r a c t i n g p a r t i e s ; a n d W H E R E A S , e a c h o f t h e P r o g r a m P a r t i c i p a n t s i s a “ p u b l i c a g e n c y ” a s t h a t t e r m i s d e f i n e d i n S e c t i o n 6 5 0 0 o f t h e G o v e r n m e n t C o d e o f t h e S t a t e o f C a l i f o r n i a , a n d W H E R E A S , e a c h o f t h e P r o g r a m P a r t i c i p a n t s i s e m p o w e r e d t o p r o m o t e e c o n o m i c d e v e l o p m e n t , i n c l u d i n g , w i t h o u t l i m i t a t i o n , t h e p r o m o t i o n o f o p p o r t u n i t i e s f o r t h e c r e a t i o n o r r e t e n t i o n o f e m p l o y m e n t , t h e s t i m u l a t i o n o f e c o n o m i c a c t i v i t y , a n d t h e i n c r e a s e o f t h e t a x b a s e , w i t h i n i t s b o u n d a r i e s ; a n d W H E R E A S , a p u b l i c e n t i t y e s t a b l i s h e d p u r s u a n t t o t h e J o i n t E x e r c i s e o f P o w e r s A c t i s e m p o w e r e d t o i s s u e i n d u s t r i a l d e v e l o p m e n t b o n d s p u r s u a n t t o t h e C a l i f o r n i a I n d u s t r i a l D e v e l o p m e n t F i n a n c i n g A c t ( T i t l e 1 0 ( c o m m e n c i n g w i t h S e c t i o n 9 1 5 0 0 o f t h e G o v e r n m e n t C o d e o f t h e S t a t e o f C a l i f o r n i a ) ) ( t h e “ A c t ” ) a n d t o o t h e r w i s e u n d e r t a k e f i n a n c i n g p r o g r a m s u n d e r t h e J o i n t E x e r c i s e o f P o w e r s A c t o r o t h e r a p p l i c a b l e p r o v i s i o n s o f l a w t o p r o m o t e e c o n o m i c d e v e l o p m e n t t h r o u g h t h e i s s u a n c e o f b o n d s , n o t e s , o r o t h e r e v i d e n c e s o f i n d e b t e d n e s s , o r c e r t i f i c a t e s o f p a r t i c i p a t i o n i n l e a s e s o r o t h e r a g r e e m e n t s ( a l l s u c h i n s t r u m e n t s b e i n g h e r e i n c o l l e c t i v e l y r e f e r r e d t o a s “ B o n d s ” ) ; a n d W H E R E A S , i n o r d e r t o p r o m o t e e c o n o m i c d e v e l o p m e n t w i t h i n t h e S t a t e o f C a l i f o r n i a , t h e C o u n t y S u p e r v i s o r s A s s o c i a t i o n o f C a l i f o r n i a ( “ C S A C ” ) , t o g e t h e r w i t h t h e C a l i f o r n i a M a n u f a c t u r e r s A s s o c i a t i o n , h a s e s t a b l i s h e d t h e B o n d s f o r I n d u s t r y p r o g r a m ( t h e “ P r o g r a m ” ) . Agenda Item No. 7(B) Attachment 3 ---PAGE BREAK--- 2 W H E R E A S , i n f u r t h e r a n c e o f t h e P r o g r a m , c e r t a i n C a l i f o r n i a c o u n t i e s ( c o l l e c t i v e l y , t h e “ I n i t i a l P a r t i c i p a n t s ” ) h a v e e n t e r e d i n t o t h a t c e r t a i n J o i n t E x e r c i s e o f P o w e r s A g r e e m e n t d a t e d a s o f N o v e m b e r 1 8 , 1 9 8 7 ( t h e “ I n i t i a l A g r e e m e n t ” ) , p u r s u a n t t o w h i c h t h e C a l i f o r n i a C o u n t i e s I n d u s t r i a l D e v e l o p m e n t A u t h o r i t y h a s b e e n e s t a b l i s h e d a s a s e p a r a t e e n t i t y u n d e r t h e J o i n t E x e r c i s e o f P o w e r s A c t f o r t h e p u r p o s e s a n d w i t h t h e p o w e r s s p e c i f i e d i n t h e I n i t i a l A g r e e m e n t ; a n d W H E R E A S , t h e L e a g u e o f C a l i f o r n i a C i t i e s ( “ L C C ” ) h a s d e t e r m i n e d t o j o i n a s a s p o n s o r o f t h e P r o g r a m a n d t o a c t i v e l y p a r t i c i p a t e i n t h e a d m i n i s t r a t i o n o f t h e A u t h o r i t y ; a n d W H E R E A S , t h e I n i t i a l P a r t i c i p a n t s h a v e d e t e r m i n e d t o s p e c i f i c a l l y a u t h o r i z e t h e A u t h o r i t y t o i s s u e B o n d s p u r s u a n t t o A r t i c l e 2 o f t h e J o i n t E x e r c i s e o f P o w e r s A c t ( “ A r t i c l e 2 ” ) a n d A r t i c l e 4 o f t h e J o i n t E x e r c i s e o f P o w e r s A c t ( “ A r t i c l e 4 ” ) , a s w e l l a s m a y b e a u t h o r i z e d b y t h e A c t o r o t h e r a p p l i c a b l e l a w ; a n d W H E R E A S , t h e I n i t i a l P a r t i c i p a n t s d e s i r e t o r e n a m e t h e C a l i f o r n i a C o u n t i e s I n d u s t r i a l D e v e l o p m e n t A u t h o r i t y t o b e t t e r r e f l e c t t h e a d d i t i o n a l s p o n s o r s h i p o f t h e P r o g r a m ; a n d W H E R E A S , e a c h o f t h e I n i t i a l P a r t i c i p a n t s h a s d e t e r m i n e d t h a t i t i s i n t h e p u b l i c i n t e r e s t o f t h e c i t i z e n s w i t h i n i t s b o u n d a r i e s , a n d t o t h e b e n e f i t o f s u c h I n i t i a l P a r t i c i p a n t a n d t h e a r e a a n d p e r s o n s s e r v e d b y s u c h I n i t i a l P a r t i c i p a n t , t o a m e n d a n d r e s t a t e i n i t s e n t i r e t y t h e I n i t i a l A g r e e m e n t i n o r d e r t o i m p l e m e n t t h e p r o v i s i o n s s e t f o r t h a b o v e ; a n d W H E R E A S , i t i s t h e d e s i r e o f t h e P r o g r a m P a r t i c i p a n t s t o u s e a p u b l i c e n t i t y e s t a b l i s h e d p u r s u a n t t o t h e J o i n t E x e r c i s e o f P o w e r s A c t t o u n d e r t a k e p r o j e c t s w i t h i n t h e i r r e s p e c t i v e j u r i s d i c t i o n s t h a t m a y b e f i n a n c e d w i t h B o n d s i s s u e d p u r s u a n t t o t h e A c t , A r t i c l e 2 , A r t i c l e 4 , o r o t h e r a p p l i c a b l e p r o v i s i o n s o f l a w ; a n d W H E R E A S , t h e p r o j e c t s u n d e r t a k e n w i l l r e s u l t i n s i g n i f i c a n t p u b l i c b e n e f i t s , i n c l u d i n g t h o s e p u b l i c b e n e f i t s s e t f o r t h i n S e c t i o n 9 1 5 0 2 . 1 o f t h e A c t , a n i n c r e a s e d l e v e l o f e c o n o m i c a c t i v i t y , o r a n i n c r e a s e d t a x b a s e , a n d w i l l t h e r e f o r e s e r v e a n d b e o f b e n e f i t t o t h e i n h a b i t a n t s o f t h e j u r i s d i c t i o n s o f t h e P r o g r a m P a r t i c i p a n t s ; N O W , T H E R E F O R E , t h e P r o g r a m P a r t i c i p a n t s , f o r a n d i n c o n s i d e r a t i o n o f t h e m u t u a l p r o m i s e s a n d a g r e e m e n t s h e r e i n c o n t a i n e d , d o a g r e e t o r e s t a t e a n d a m e n d t h e I n i t i a l A g r e e m e n t i n i t s e n t i r e t y t o p r o v i d e a s f o l l o w s : ---PAGE BREAK--- 3 S e c t i o n 1 . P u r p o s e . T h i s A g r e e m e n t i s m a d e p u r s u a n t t o t h e p r o v i s i o n s o f t h e J o i n t E x e r c i s e o f P o w e r s A c t , r e l a t i n g t o t h e j o i n t e x e r c i s e o f p o w e r s c o m m o n t o p u b l i c a g e n c i e s , i n t h i s c a s e b e i n g t h e P r o g r a m P a r t i c i p a n t s . T h e P r o g r a m P a r t i c i p a n t s e a c h p o s s e s s t h e p o w e r s r e f e r r e d t o i n t h e r e c i t a l s h e r e o f . T h e p u r p o s e o f t h i s A g r e e m e n t i s t o e s t a b l i s h a n a g e n c y f o r , a n d w i t h t h e p u r p o s e o f , i s s u i n g B o n d s t o f i n a n c e p r o j e c t s w i t h i n t h e t e r r i t o r i a l l i m i t s o f t h e P r o g r a m P a r t i c i p a n t s p u r s u a n t t o t h e A c t , A r t i c l e 2 , A r t i c l e 4 , o r o t h e r a p p l i a b l e p r o v i s i o n s o f l a w ; p r o v i d e d , h o w e v e r t h a t n o t h i n g i n t h i s A g r e e m e n t s h a l l b e c o n s t r u e d a s a l i m i t a t i o n o n t h e r i g h t s o f t h e P r o g r a m P a r t i c i p a n t s t o p u r s u e e c o n o m i c d e v e l o p m e n t o u t s i d e o f t h i s A g r e e m e n t , i n c l u d i n g t h e r i g h t s t o i s s u e B o n d s t h r o u g h i n d u s t r i a l d e v e l o p m e n t a u t h o r i t i e s u n d e r t h e A c t , o r a s o t h e r w i s e p e r m i t t e d b y l a w . W i t h i n t h e v a r i o u s j u r i s d i c t i o n s o f t h e P r o g r a m P a r t i c i p a n t s s u c h p u r p o s e w i l l b e a c c o m p l i s h e d a n d s a i d p o w e r s e x e r c i s e d i n t h e m a n n e r h e r e i n a f t e r s e t f o r t h . S e c t i o n 2 . T e r m . T h i s A g r e e m e n t s h a l l b e c o m e e f f e c t i v e a s o f t h e d a t e h e r e o f a n d s h a l l c o n t i n u e i n f u l l f o r c e a n d e f f e c t f o r a p e r i o d o f f o r t y ( 4 0 ) y e a r s f r o m t h e d a t e h e r e o f , o r u n t i l s u c h t i m e a s i t i s t e r m i n a t e d i n w r i t i n g b y a l l t h e P r o g r a m P a r t i c i p a n t s ; p r o v i d e d , h o w e v e r , t h a t t h i s A g r e e m e n t s h a l l n o t t e r m i n a t e o r b e t e r m i n a t e d u n t i l t h e d a t e o n w h i c h a l l B o n d s o r o t h e r i n d e b t e d n e s s i s s u e d o r c a u s e d t o b e i s s u e d b y t h e A u t h o r i t y s h a l l h a v e b e e n r e t i r e d , o r f u l l p r o v i s i o n s h a l l h a v e b e e n m a d e f o r t h e i r r e t i r e m e n t , i n c l u d i n g i n t e r e s t u n t i l t h e i r r e t i r e m e n t d a t e . S e c t i o n 3 . A u t h o r i t y . A . C R E A T I O N A N D P O W E R S O F A U T H O R I T Y . ( 1 ) P u r s u a n t t o t h e J o i n t E x e r c i s e o f P o w e r s A c t , t h e r e i s h e r e b y c r e a t e d a p u b l i c e n t i t y t o b e k n o w n a s t h e “ C a l i f o r n i a S t a t e w i d e C o m m u n i t i e s D e v e l o p m e n t A u t h o r i t y ” ( t h e “ A u t h o r i t y ” ) , a n d s a i d A u t h o r i t y s h a l l b e a p u b l i c e n t i t y s e p a r a t e a n d a p a r t f r o m t h e P r o g r a m P a r t i c i p a n t s . I t s d e b t s , l i a b i l i t i e s a n d o b l i g a t i o n s d o n o t c o n s t i t u t e d e b t s , l i a b i l i t i e s o r o b l i g a t i o n s o f a n y p a r t y t o t h i s A g r e e m e n t . B . C O M M I S S I O N . T h e A u t h o r i t y s h a l l b e a d m i n i s t e r e d b y a C o m m i s s i o n ( t h e “ C o m m i s s i o n ” ) w h i c h s h a l l c o n s i s t o f s e v e n m e m b e r s , e a c h ---PAGE BREAK--- 4 s e r v i n g i n h i s o r h e r i n d i v i d u a l c a p a c i t y a s a m e m b e r o f t h e C o m m i s s i o n . T h e C o m m i s s i o n s h a l l b e t h e a d m i n i s t e r i n g a g e n c y o f t h i s A g r e e m e n t , a n d , a s s u c h , s h a l l b e v e s t e d w i t h t h e p o w e r s s e t f o r t h h e r e i n , a n d s h a l l e x e c u t e a n d a d m i n i s t e r t h i s A g r e e m e n t i n a c c o r d a n c e w i t h t h e p u r p o s e s a n d f u n c t i o n s p r o v i d e d h e r e i n . F o u r m e m b e r s o f t h e C o m m i s s i o n s h a l l b e a p p o i n t e d b y t h e g o v e r n i n g b o d y o f C S A C a n d t h r e e m e m b e r s o f t h e C o m m i s s i o n s h a l l b e a p p o i n t e d b y t h e g o v e r n i n g b o d y o f L C C . I n i t i a l m e m b e r s o f t h e C o m m i s s i o n s h a l l s e r v e a t e r m e n d i n g J u n e 1 , 1 9 9 1 . S u c c e s s o r s t o s u c h m e m b e r s s h a l l b e s e l e c t e d i n t h e m a n n e r i n w h i c h t h e r e s p e c t i v e i n i t i a l m e m b e r w a s s e l e c t e d a n d s h a l l s e r v e a t e r m o f t h r e e y e a r s . A n y a p p o i n t m e n t t o f i l l a n u n e x p i r e d t e r m , h o w e v e r , s h a l l b e f o r s u c h u n e x p i r e d t e r m . T h e t e r m o f o f f i c e s p e c i f i e d a b o v e s h a l l b e a p p l i c a b l e u n l e s s t h e t e r m o f o f f i c e o f t h e r e s p e c t i v e m e m b e r i s t e r m i n a t e d a s h e r e i n a f t e r p r o v i d e d , a n d p r o v i d e d t h a t t h e t e r m o f a n y m e m b e r s h a l l n o t e x p i r e u n t i l a s u c c e s s o r t h e r e t o h a s b e e n a p p o i n t e d a s p r o v i d e d h e r e i n . E a c h o f C S A C a n d L C C m a y a p p o i n t a n a l t e r n a t e m e m b e r o f t h e C o m m i s s i o n f o r e a c h m e m b e r o f t h e C o m m i s s i o n w h i c h i t a p p o i n t s . S u c h a l t e r n a t e m e m b e r m a y a c t a s a m e m b e r o f t h e C o m m i s s i o n i n p l a c e o f a n d d u r i n g t h e a b s e n c e o r d i s a b i l i t y o f s u c h r e g u l a r l y a p p o i n t e d m e m b e r . A l l r e f e r e n c e s i n t h i s A g r e e m e n t t o a n y m e m b e r o f t h e C o m m i s s i o n s h a l l b e d e e m e d t o r e f e r t o a n d i n c l u d e t h e a p p l i c a b l e a l t e r n a t e m e m b e r w h e n s o a c t i n g i n p l a c e o f a r e g u l a r l y a p p o i n t e d m e m b e r . E a c h m e m b e r o r a l t e r n a t e m e m b e r o f t h e C o m m i s s i o n m a y b e r e m o v e d a n d r e p l a c e d a t a n y t i m e b y t h e g o v e r n i n g b o d y b y w h i c h s u c h m e m b e r w a s a p p o i n t e d . A n y i n d i v i d u a l , i n c l u d i n g a n y m e m b e r o f t h e g o v e r n i n g b o d y o r s t a f f o f C S A C o r L C C , s h a l l b e e l i g i b l e t o s e r v e a s a m e m b e r o r a l t e r n a t e m e m b e r o f t h e C o m m i s s i o n . M e m b e r s a n d a l t e r n a t e m e m b e r s o f t h e C o m m i s s i o n s h a l l n o t r e c e i v e a n y c o m p e n s a t i o n f o r s e r v i n g a s s u c h b u t s h a l l b e e n t i t l e d t o r e i m b u r s e m e n t f o r a n y e x p e n s e s a c t u a l l y i n c u r r e d i n c o n n e c t i o n w i t h s e r v i n g a s a m e m b e r o r a l t e r n a t e m e m b e r , i f t h e C o m m i s s i o n s h a l l d e t e r m i n e t h a t s u c h e x p e n s e s s h a l l b e r e i m b u r s e d a n d t h e r e a r e u n e n c u m b e r e d f u n d s a v a i l a b l e f o r s u c h p u r p o s e . C . O F F I C E R S ; D U T I E S ; O F F I C I A L B O N D S . T h e C o m m i s s i o n s h a l l e l e c t a C h a i r , a V i c e - C h a i r , a n d a S e c r e t a r y o f t h e A u t h o r i t y f r o m a m o n g i t s m e m b e r s t o s e r v e f o r s u c h t e r m a s s h a l l b e d e t e r m i n e d b y t h e C o m m i s s i o n . T h e C o m m i s s i o n s h a l l a p p o i n t o n e o r m o r e o f i t s o f f i c e r s o r ---PAGE BREAK--- 5 e m p l o y e e s t o s e r v e a s t r e a s u r e r , a u d i t o r , a n d c o n t r o l l e r o f t h e A u t h o r i t y ( t h e “ T r e a s u r e r ” ) p u r s u a n t t o S e c t i o n 6 5 0 5 . 6 o f t h e J o i n t E x e r c i s e o f P o w e r s A c t t o s e r v e f o r s u c h t e r m a s s h a l l b e d e t e r m i n e d b y t h e C o m m i s s i o n . S u b j e c t t o t h e a p p l i c a b l e p r o v i s i o n s o f a n y r e s o l u t i o n , i n d e n t u r e o r o t h e r i n s t r u m e n t o r p r o c e e d i n g a u t h o r i z i n g o r s e c u r i n g B o n d s ( e a c h s u c h r e s o l u t i o n , i n d e n t u r e , i n s t r u m e n t a n d p r o c e e d i n g b e i n g h e r e i n r e f e r r e d t o a s a n “ I n d e n t u r e ” ) p r o v i d i n g f o r a t r u s t e e o r o t h e r f i s c a l a g e n t , t h e T r e a s u r e r i s d e s i g n a t e d a s t h e d e p o s i t a r y o f t h e A u t h o r i t y t o h a v e c u s t o d y o f a l l m o n e y o f t h e A u t h o r i t y , f r o m w h a t e v e r s o u r c e d e r i v e d . T h e T r e a s u r e r o f t h e A u t h o r i t y s h a l l h a v e t h e p o w e r s , d u t i e s a n d r e s p o n s i b i l i t i e s s p e c i f i e d i n S e c t i o n 6 5 0 5 . 5 o f t h e J o i n t E x e r c i s e o f P o w e r s A c t . T h e T r e a s u r e r o f t h e A u t h o r i t y i s d e s i g n a t e d a s t h e p u b l i c o f f i c e r o r p e r s o n w h o h a s c h a r g e o f , h a n d l e s , o r h a s a c c e s s t o a n y p r o p e r t y o f t h e A u t h o r i t y , a n d s u c h o f f i c e r s h a l l f i l e a n o f f i c i a l b o n d w i t h t h e S e c r e t a r y o f t h e A u t h o r i t y i n t h e a m o u n t s p e c i f i e d b y r e s o l u t i o n o f t h e C o m m i s s i o n b u t i n n o e v e n t l e s s t h a n $ 1 , 0 0 0 . I f a n d t o t h e e x t e n t p e r m i t t e d b y l a w , a n y s u c h o f f i c e r m a y s a t i s f y t h i s r e q u i r e m e n t b y f i l i n g a n o f f i c i a l b o n d i n a t l e a s t s a i d a m o u n t o b t a i n e d i n c o n n e c t i o n w i t h a n o t h e r p u b l i c o f f i c e . T h e C o m m i s s i o n s h a l l h a v e t h e p o w e r t o a p p o i n t s u c h o t h e r o f f i c e r s a n d e m p l o y e e s a s i t m a y d e e m n e c e s s a r y a n d t o r e t a i n i n d e p e n d e n t c o u n s e l , c o n s u l t a n t s a n d a c c o u n t a n t s . T h e C o m m i s s i o n s h a l l h a v e t h e p o w e r , b y r e s o l u t i o n , t o t h e e x t e n t p e r m i t t e d b y t h e J o i n t E x e r c i s e o f P o w e r s A c t o r a n y o t h e r a p p l i c a b l e l a w , t o d e l e g a t e a n y o f i t s f u n c t i o n s t o o n e o r m o r e o f t h e m e m b e r s o f t h e C o m m i s s i o n o r o f f i c e r s o r a g e n t s o f t h e A u t h o r i t y a n d t o c a u s e a n y o f s a i d m e m b e r s , o f f i c e r s o r a g e n t s t o t a k e a n y a c t i o n s a n d e x e c u t e . a n y d o c u m e n t s o r i n s t r u m e n t s f o r a n d i n t h e n a m e a n d o n b e h a l f o f t h e C o m m i s s i o n o r t h e A u t h o r i t y . D . M E E T I N G S O F T H E C O M M I S S I O N . ( 1 ) R e g u l a r M e e t i n g s . T h e C o m m i s s i o n s h a l l p r o v i d e f o r i t s r e g u l a r m e e t i n g s ; p r o v i d e d , h o w e v e r , i t s h a l l h o l d a t l e a s t o n e r e g u l a r m e e t i n g e a c h y e a r . T h e d a t e , h o u r a n d p l a c e o f t h e h o l d i n g o f t h e r e g u l a r m e e t i n g s s h a l l b e f i x e d b y r e s o l u t i o n o f t h e C o m m i s s i o n a n d a c o p y o f s u c h r e s o l u t i o n s h a l l b e f i l e d w i t h e a c h p a r t y h e r e t o . ---PAGE BREAK--- 6 ( 2 ) S p e c i a l M e e t i n g s . S p e c i a l m e e t i n g s o f t h e C o m m i s s i o n m a y b e c a l l e d i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f S e c t i o n 5 4 9 5 6 o f t h e G o v e r n m e n t C o d e o f t h e S t a t e o f C a l i f o r n i a . ( 3 ) R a l p h M . B r o w n A c t . A l l m e e t i n g s o f t h e C o m m i s s i o n , i n c l u d i n g , w i t h o u t l i m i t a t i o n , r e g u l a r , a d j o u r n e d r e g u l a r , s p e c i a l , a n d a d j o u r n e d s p e c i a l m e e t i n g s s h a l l b e c a l l e d , n o t i c e d , h e l d a n d c o n d u c t e d i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h e R a l p h M . B r o w n A c t ( c o m m e n c i n g w i t h S e c t i o n 5 4 9 5 0 o f t h e G o v e r n m e n t C o d e o f t h e S t a t e o f C a l i f o r n i a ) . ( 4 ) M i n u t e s . T h e S e c r e t a r y o f t h e A u t h o r i t y s h a l l c a u s e t o b e k e p t m i n u t e s o f t h e r e g u l a r , a d j o u r n e d r e g u l a r , s p e c i a l , a n d a d j o u r n e d s p e c i a l m e e t i n g s o f t h e C o m m i s s i o n a n d s h a l l , a s s o o n a s p o s s i b l e a f t e r e a c h m e e t i n g , c a u s e a c o p y o f t h e m i n u t e s t o b e f o r w a r d e d t o e a c h m e m b e r o f t h e C o m m i s s i o n . ( 5 ) Q u o r u m . A m a j o r i t y o f t h e m e m b e r s o f t h e C o m m i s s i o n w h i c h i n c l u d e s a t l e a s t o n e m e m b e r a p p o i n t e d b y t h e g o v e r n i n g b o d y o f e a c h o f C S A C a n d L C C s h a l l c o n s t i t u t e a q u o r u m f o r t h e t r a n s a c t i o n o f b u s i n e s s . N o a c t i o n m a y b e t a k e n b y t h e C o m m i s s i o n e x c e p t u p o n t h e a f f i r m a t i v e v o t e o f a m a j o r i t y o f t h e m e m b e r s o f t h e C o m m i s s i o n w h i c h i n c l u d e s a t l e a s t o n e m e m b e r a p p o i n t e d b y t h e g o v e r n i n g b o d y o f e a c h o f C S A C a n d L C C , e x c e p t t h a t l e s s t h a n a q u o r u m m a y a d j o u r n a m e e t i n g t o a n o t h e r t i m e a n d p l a c e . E . R U L E S A N D R E G U L A T I O N S . T h e A u t h o r i t y m a y a d o p t , f r o m t i m e t o t i m e , b y r e s o l u t i o n o f t h e C o m m i s s i o n s u c h r u l e s a n d r e g u l a t i o n s f o r t h e c o n d u c t o f i t s m e e t i n g s a n d a f f a i r s a s m a y b e r e q u i r e d . S e c t i o n 4 . P o w e r s . T h e A u t h o r i t y s h a l l h a v e a n y a n d a l l p o w e r s r e l a t i n g t o e c o n o m i c d e v e l o p m e n t a u t h o r i z e d b y l a w t o e a c h o f t h e p a r t i e s h e r e t o a n d s e p a r a t e l y t o t h e p u b l i c e n t i t y h e r e i n c r e a t e d , i n c l u d i n g , w i t h o u t l i m i t a t i o n , t h e p r o m o t i o n o f o p p o r t u n i t i e s f o r t h e c r e a t i o n a n d r e t e n t i o n o f e m p l o y m e n t , t h e s t i m u l a t i o n o f e c o n o m i c a c t i v i t y , a n d t h e i n c r e a s e o f t h e t a x b a s e , w i t h i n t h e j u r i s d i c t i o n s o f s u c h p a r t i e s . S u c h p o w e r s s h a l l i n c l u d e t h e c o m m o n p o w e r s s p e c i f i e d i n t h i s ---PAGE BREAK--- 7 A g r e e m e n t a n d m a y b e e x e r c i s e d i n t h e m a n n e r a n d a c c o r d i n g t o t h e m e t h o d p r o v i d e d i n t h i s A g r e e m e n t . A l l s u c h p o w e r s c o m m o n t o t h e p a r t i e s a r e s p e c i f i e d a s p o w e r s o f t h e A u t h o r i t y . T h e A u t h o r i t y i s h e r e b y a u t h o r i z e d t o d o a l l a c t s n e c e s s a r y f o r t h e e x e r c i s e o f s u c h p o w e r s , i n c l u d i n g , b u t n o t l i m i t e d t o , a n y o r a l l o f t h e f o l l o w i n g : t o m a k e a n d e n t e r i n t o c o n t r a c t s ; t o e m p l o y a g e n t s a n d e m p l o y e e s ; t o a c q u i r e , c o n s t r u c t , p r o v i d e f o r m a i n t e n a n c e a n d o p e r a t i o n o f , o r m a i n t a i n a n d o p e r a t e , a n y b u i l d i n g s , w o r k s o r i m p r o v e m e n t s ; t o a c q u i r e , h o l d o r d i s p o s e o f p r o p e r t y w h e r e v e r l o c a t e d ; t o i n c u r d e b t s , l i a b i l i t i e s o r o b l i g a t i o n s ; t o r e c e i v e g i f t s , c o n t r i b u t i o n s a n d d o n a t i o n s o f p r o p e r t y , f u n d s , s e r v i c e s a n d o t h e r f o r m s o f a s s i s t a n c e f r o m p e r s o n s , f i r m s , c o r p o r a t i o n s a n d a n y g o v e r n m e n t a l e n t i t y ; t o s u e a n d b e s u e d i n i t s o w n n a m e ; a n d g e n e r a l l y t o d o a n y a n d a l l t h i n g s n e c e s s a r y o r c o n v e n i e n t t o t h e p r o m o t i o n o f e c o n o m i c d e v e l o p m e n t , i n c l u d i n g w i t h o u t l i m i t a t i o n t h e p r o m o t i o n o f o p p o r t u n i t i e s f o r t h e c r e a t i o n o r r e t e n t i o n o f e m p l o y m e n t , t h e s t i m u l a t i o n o f e c o n o m i c a c t i v i t y , a n d t h e i n c r e a s e o f t h e t a x b a s e , a l l a s h e r e i n c o n t e m p l a t e d . W i t h o u t l i m i t i n g t h e g e n e r a l i t y o f t h e f o r e g o i n g , t h e A u t h o r i t y m a y i s s u e o r c a u s e t o b e i s s u e d b o n d e d a n d o t h e r i n d e b t e d n e s s , a n d p l e d g e a n y p r o p e r t y o r r e v e n u e s a s s e c u r i t y t o t h e e x t e n t p e r m i t t e d u n d e r t h e J o i n t E x e r c i s e o f P o w e r s A c t , i n c l u d i n g A r t i c l e 2 a n d A r t i c l e 4 , t h e A c t o r a n y o t h e r a p p l i c a b l e p r o v i s i o n o f l a w . T h e m a n n e r i n w h i c h t h e A u t h o r i t y s h a l l e x e r c i s e i t s p o w e r s a n d p e r f o r m i t s d u t i e s i s a n d s h a l l b e s u b j e c t t o t h e r e s t r i c t i o n s u p o n t h e m a n n e r i n w h i c h a C a l i f o r n i a c o u n t y c o u l d e x e r c i s e s u c h p o w e r s a n d p e r f o r m s u c h d u t i e s u n t i l a C a l i f o r n i a g e n e r a l l a w c i t y s h a l l b e c o m e a P r o g r a m P a r t i c i p a n t , a t w h i c h t i m e i t s h a l l b e s u b j e c t t o t h e r e s t r i c t i o n s u p o n t h e m a n n e r i n w h i c h a C a l i f o r n i a g e n e r a l l a w c i t y c o u l d e x e r c i s e s u c h p o w e r s a n d p e r f o r m s u c h d u t i e s . T h e m a n n e r i n w h i c h t h e A u t h o r i t y s h a l l e x e r c i s e i t s p o w e r s a n d p e r f o r m i t s d u t i e s s h a l l n o t b e s u b j e c t t o a n y r e s t r i c t i o n s a p p l i c a b l e t o t h e m a n n e r i n w h i c h a n y o t h e r p u b l i c a g e n c y c o u l d e x e r c i s e s u c h p o w e r s o r p e r f o r m s u c h d u t i e s , w h e t h e r s u c h a g e n c y i s a p a r t y t o t h i s A g r e e m e n t o r n o t . S e c t i o n 5 . F i s c a l Y e a r. F o r t h e p u r p o s e s o f t h i s A g r e e m e n t , t h e t e r m “ F i s c a l Y e a r ” s h a l l m e a n t h e f i s c a l y e a r a s e s t a b l i s h e d f r o m t i m e t o t i m e b y t h e A u t h o r i t y , b e i n g , a t t h e d a t e o f t h i s A g r e e m e n t , t h e p e r i o d f r o m J u l y 1 t o a n d i n c l u d i n g t h e f o l l o w i n g J u n e 3 0 , e x c e p t f o r t h e f i r s t F i s c a l Y e a r w h i c h s h a l l b e t h e p e r i o d f r o m t h e d a t e o f t h i s A g r e e m e n t t o J u n e 3 0 , 1 9 8 8 . ---PAGE BREAK--- 8 S e c t i o n 6 . D i s p o s i t i o n o f A s s e t s . A t t h e e n d o f t h e t e r m h e r e o f o r u p o n t h e e a r l i e r t e r m i n a t i o n o f t h i s A g r e e m e n t a s s e t f o r t h i n S e c t i o n 2 h e r e o f , a f t e r p a y m e n t o f a l l e x p e n s e s a n d l i a b i l i t i e s o f t h e A u t h o r i t y , a l l p r o p e r t y o f t h e A u t h o r i t y b o t h r e a l a n d p e r s o n a l s h a l l a u t o m a t i c a l l y v e s t i n t h e P r o g r a m P a r t i c i p a n t s a n d s h a l l t h e r e a f t e r r e m a i n t h e s o l e p r o p e r t y o f t h e P r o g r a m P a r t i c i p a n t s ; p r o v i d e d , h o w e v e r , t h a t a n y s u r p l u s m o n e y o n h a n d s h a l l b e r e t u r n e d i n p r o p o r t i o n t o t h e c o n t r i b u t i o n s m a d e b y t h e P r o g r a m P a r t i c i p a n t s . S e c t i o n 7 . B o n d s . T h e A u t h o r i t y s h a l l i s s u e B o n d s f o r t h e p u r p o s e o f e x e r c i s i n g i t s p o w e r s a n d r a i s i n g t h e f u n d s n e c e s s a r y t o c a r r y o u t i t s p u r p o s e s u n d e r t h i s A g r e e m e n t . S a i d B o n d s m a y , a t t h e d i s c r e t i o n o f A u t h o r i t y , b e i s s u e d i n s e r i e s . T h e s e r v i c e s o f b o n d c o u n s e l , f i n a n c i n g c o n s u l t a n t s a n d o t h e r c o n s u l t a n t s a n d a d v i s o r s w o r k i n g o n t h e p r o j e c t s a n d / o r t h e i r f i n a n c i n g s h a l l b e u s e d b y t h e A u t h o r i t y . T h e f e e s a n d e x p e n s e s o f s u c h c o u n s e l , c o n s u l t a n t s , a d v i s o r s , a n d t h e e x p e n s e s o f C S A C , L C C , a n d t h e C o m m i s s i o n s h a l l b e p a i d f r o m t h e p r o c e e d s o f t h e B o n d s o r a n y o t h e r u n e n c u m b e r e d f u n d s o f t h e A u t h o r i t y a v a i l a b l e f o r s u c h p u r p o s e . S e c t i o n 9 . L o c a l A p p r o v a l . A c o p y o f t h e a p p l i c a t i o n f o r f i n a n c i n g o f a p r o j e c t s h a l l b e f i l e d b y t h e A u t h o r i t y w i t h t h e P r o g r a m P a r t i c i p a n t i n w h o s e j u r i s d i c t i o n t h e p r o j e c t i s t o b e l o c a t e d . T h e A u t h o r i t y s h a l l n o t i s s u e B o n d s w i t h r e s p e c t t o a n y p r o j e c t u n l e s s t h e g o v e r n i n g b o d y o f t h e P r o g r a m P a r t i c i p a n t i n w h o s e j u r i s d i c t i o n t h e p r o j e c t i s t o b e l o c a t e d , o r i t s d u l y a u t h o r i z e d d e s i g n e e , s h a l l a p p r o v e , c o n d i t i o n a l l y o r u n c o n d i t i o n a l l y , t h e p r o j e c t , i n c l u d i n g t h e i s s u a n c e o f B o n d s t h e r e f o r . A c t i o n t o a p p r o v e o r d i s a p p r o v e a p r o j e c t s h a l l b e t a k e n w i t h i n 4 5 d a y s o f t h e f i l i n g w i t h t h e P r o g r a m P a r t i c i p a n t . C e r t i f i c a t i o n o f a p p r o v a l o r d i s a p p r o v a l s h a l l b e m a d e b y t h e c l e r k o f t h e g o v e r n i n g b o d y o f t h e P r o g r a m P a r t i c i p a n t , o r b y s u c h o t h e r o f f i c e r a s m a y b e d e s i g n a t e d b y t h e a p p l i c a b l e P r o g r a m P a r t i c i p a n t , t o t h e A u t h o r i t y . S e c t i o n 8 . B o n d s O n l y L i m i t e d a n d S p e c i a l O b l i g a t i o n s o f A u t h o r i t y . T h e B o n d s , t o g e t h e r w i t h t h e i n t e r e s t a n d p r e m i u m , i f a n y , t h e r e o n , s h a l l n o t b e d e e m e d t o c o n s t i t u t e a d e b t o f a n y P r o g r a m P a r t i c i p a n t , C S A C , o r L C C o r p l e d g e o f t h e f a i t h a n d c r e d i t o f t h e P r o g r a m P a r t i c i p a n t s , C S A C , L C C , o r t h e ---PAGE BREAK--- 9 A u t h o r i t y . T h e B o n d s s h a l l b e o n l y s p e c i a l o b l i g a t i o n s o f t h e A u t h o r i t y , a n d t h e A u t h o r i t y s h a l l u n d e r n o c i r c u m s t a n c e s b e o b l i g a t e d t o p a y t h e B o n d s o r t h e r e s p e c t i v e p r o j e c t c o s t s e x c e p t f r o m r e v e n u e s a n d o t h e r f u n d s p l e d g e d t h e r e f o r . N e i t h e r t h e P r o g r a m P a r t i c i p a n t s , C S A C , L C C , n o r t h e A u t h o r i t y s h a l l b e o b l i g a t e d t o p a y t h e p r i n c i p a l o f , p r e m i u m , i f a n y , o r i n t e r e s t o n t h e B o n d s , o r o t h e r c o s t s i n c i d e n t a l t h e r e t o , e x c e p t f r o m t h e r e v e n u e s a n d f u n d s p l e d g e d t h e r e f o r , a n d n e i t h e r t h e f a i t h a n d c r e d i t n o r t h e t a x i n g p o w e r o f t h e P r o g r a m P a r t i c i p a n t s n o r t h e f a i t h a n d c r e d i t o f C S A C , L C C , o r t h e A u t h o r i t y s h a l l b e p l e d g e d t o t h e p a y m e n t o f t h e p r i n c i p a l o f , p r e m i u m , i f a n y , o r i n t e r e s t o n t h e B o n d s n o r s h a l l t h e P r o g r a m P a r t i c i p a n t s , C S A C , L C C , o r t h e A u t h o r i t y i n a n y m a n n e r b e o b l i g a t e d t o m a k e a n y a p p r o p r i a t i o n f o r s u c h p a y m e n t . N o c o v e n a n t o r a g r e e m e n t c o n t a i n e d i n a n y B o n d o r I n d e n t u r e s h a l l b e d e e m e d t o b e a c o v e n a n t o r a g r e e m e n t o f a n y m e m b e r o f t h e C o m m i s s i o n , o r a n y o f f i c e r , a g e n t o r e m p l o y e e o f t h e A u t h o r i t y i n h i s i n d i v i d u a l c a p a c i t y a n d n e i t h e r t h e C o m m i s s i o n o f t h e A u t h o r i t y n o r a n y o f f i c e r t h e r e o f e x e c u t i n g t h e B o n d s s h a l l b e l i a b l e p e r s o n a l l y o n a n y B o n d o r b e s u b j e c t t o a n y p e r s o n a l l i a b i l i t y o r a c c o u n t a b i l i t y b y r e a s o n o f t h e i s s u a n c e o f a n y B o n d s . S e c t i o n 1 0 . A c c o u n t s a n d R e p o r t s . A l l f u n d s o f t h e A u t h o r i t y s h a l l b e s t r i c t l y a c c o u n t e d f o r . T h e A u t h o r i t y s h a l l e s t a b l i s h a n d m a i n t a i n s u c h f u n d s a n d a c c o u n t s a s m a y b e r e q u i r e d b y g o o d a c c o u n t i n g p r a c t i c e a n d b y a n y p r o v i s i o n o f a n y I n d e n t u r e ( t o t h e e x t e n t s u c h d u t i e s a r e n o t a s s i g n e d t o a t r u s t e e o f B o n d s ) . T h e b o o k s a n d r e c o r d s o f t h e A u t h o r i t y s h a l l b e o p e n t o i n s p e c t i o n a t a l l r e a s o n a b l e t i m e s b y e a c h P r o g r a m P a r t i c i p a n t . T h e T r e a s u r e r o f t h e A u t h o r i t y s h a l l c a u s e a n i n d e p e n d e n t a u d i t t o b e m a d e o f t h e b o o k s o f a c c o u n t s a n d f i n a n c i a l r e c o r d s o f t h e A g e n c y b y a c e r t i f i e d p u b l i c a c c o u n t a n t o r p u b l i c a c c o u n t a n t i n c o m p l i a n c e w i t h t h e p r o v i s i o n s o f S e c t i o n 6 5 0 5 o f t h e J o i n t E x e r c i s e o f P o w e r s A c t . I n e a c h c a s e t h e m i n i m u m r e q u i r e m e n t s o f t h e a u d i t s h a l l b e t h o s e p r e s c r i b e d b y t h e S t a t e C o n t r o l l e r f o r s p e c i a l d i s t r i c t s u n d e r S e c t i o n 2 6 9 0 9 o f t h e G o v e r n m e n t C o d e o f t h e S t a t e o f C a l i f o r n i a a n d s h a l l c o n f o r m t o g e n e r a l l y a c c e p t e d a u d i t i n g s t a n d a r d s . W h e n s u c h a n a u d i t o f a c c o u n t s a n d r e c o r d s i s m a d e b y a c e r t i f i e d p u b l i c a c c o u n t a n t o r p u b l i c a c c o u n t a n t , a r e p o r t t h e r e o f s h a l l b e f i l e d a s p u b l i c r e c o r d s w i t h e a c h P r o g r a m P a r t i c i p a n t a n d a l s o w i t h t h e c o u n t y a u d i t o r o f e a c h c o u n t y i n w h i c h a P r o g r a m P a r t i c i p a n t i s l o c a t e d . S u c h r e p o r t s h a l l b e f i l e d w i t h i n 1 2 m o n t h s o f t h e e n d o f t h e F i s c a l Y e a r o r Y e a r s u n d e r e x a m i n a t i o n . ---PAGE BREAK--- 10 A n y c o s t s o f t h e a u d i t , i n c l u d i n g c o n t r a c t s w i t h , o r e m p l o y m e n t o f , c e r t i f i e d p u b l i c a c c o u n t a n t s o r p u b l i c a c c o u n t a n t s i n m a k i n g a n a u d i t p u r s u a n t t o t h i s S e c t i o n , s h a l l b e b o r n e b y t h e A u t h o r i t y a n d s h a l l b e a c h a r g e a g a i n s t a n y u n e n c u m b e r e d f u n d s o f t h e A u t h o r i t y a v a i l a b l e f o r t h a t p u r p o s e . I n a n y F i s c a l Y e a r t h e C o m m i s s i o n m a y , b y r e s o l u t i o n a d o p t e d b y u n a n i m o u s v o t e , r e p l a c e t h e a n n u a l s p e c i a l a u d i t w i t h a n a u d i t c o v e r i n g a t w o - y e a r p e r i o d . T h e T r e a s u r e r o f t h e A u t h o r i t y , w i t h i n 1 2 0 d a y s a f t e r t h e c l o s e o f e a c h F i s c a l Y e a r , s h a l l g i v e a c o m p l e t e w r i t t e n r e p o r t o f a l l f i n a n c i a l a c t i v i t i e s f o r s u c h F i s c a l Y e a r t o e a c h o f t h e P r o g r a m P a r t i c i p a n t s t o t h e e x t e n t s u c h a c t i v i t i e s a r e n o t c o v e r e d b y t h e r e p o r t s o f t h e t r u s t e e s f o r t h e B o n d s . T h e t r u s t e e a p p o i n t e d u n d e r e a c h I n d e n t u r e s h a l l e s t a b l i s h s u i t a b l e f u n d s , f u r n i s h f i n a n c i a l r e p o r t s a n d p r o v i d e s u i t a b l e a c c o u n t i n g p r o c e d u r e s t o c a r r y o u t t h e p r o v i s i o n s o f s a i d I n d e n t u r e . S a i d t r u s t e e m a y b e g i v e n s u c h d u t i e s i n s a i d I n d e n t u r e a s m a y b e d e s i r a b l e t o c a r r y o u t t h i s A g r e e m e n t . S e c t i o n 1 1 . F u n d s . S u b j e c t t o t h e a p p l i c a b l e p r o v i s i o n s o f e a c h I n d e n t u r e , w h i c h m a y p r o v i d e f o r a t r u s t e e t o r e c e i v e , h a v e c u s t o d y o f a n d d i s b u r s e A u t h o r i t y f u n d s , t h e T r e a s u r e r o f t h e A u t h o r i t y s h a l l r e c e i v e , h a v e t h e c u s t o d y o f a n d d i s b u r s e A u t h o r i t y f u n d s p u r s u a n t t o t h e a c c o u n t i n g p r o c e d u r e s d e v e l o p e d u n d e r S e c t i o n 1 0 h e r e o f , a n d s h a l l m a k e t h e d i s b u r s e m e n t s r e q u i r e d b y t h i s A g r e e m e n t o r o t h e r w i s e n e c e s s a r y t o c a r r y o u t a n y o f t h e p r o v i s i o n s o r p u r p o s e s o f t h i s A g r e e m e n t . S e c t i o n 1 2 . N o t i c e s. N o t i c e s a n d o t h e r c o m m u n i c a t i o n s h e r e u n d e r t o t h e P r o g r a m P a r t i c i p a n t s s h a l l b e s u f f i c i e n t i f d e l i v e r e d t o t h e c l e r k o f t h e g o v e r n i n g b o d y o f e a c h P r o g r a m P a r t i c i p a n t . S e c t i o n 1 3 . W i t h d r a w a l a n d A d d i t i o n o f P a r t i e s. A P r o g r a m P a r t i c i p a n t m a y w i t h d r a w f r o m t h i s A g r e e m e n t u p o n w r i t t e n n o t i c e t o t h e C o m m i s s i o n ; p r o v i d e d , h o w e v e r , t h a t n o s u c h w i t h d r a w a l s h a l l r e s u l t i n t h e d i s s o l u t i o n o f t h e A u t h o r i t y s o l o n g a s a n y B o n d s r e m a i n o u t s t a n d i n g u n d e r a n I n d e n t u r e . A n y s u c h w i t h d r a w a l s h a l l b e e f f e c t i v e o n l y u p o n r e c e i p t o f t h e n o t i c e o f w i t h d r a w a l b y t h e C o m m i s s i o n w h i c h s h a l l a c k n o w l e d g e r e c e i p t o f s u c h n o t i c e o f w i t h d r a w a l i n w r i t i n g a n d s h a l l f i l e s u c h n o t i c e a s a n a m e n d m e n t t o t h i s A g r e e m e n t e f f e c t i v e u p o n s u c h f i l i n g . ---PAGE BREAK--- 11 Q u a l i f y i n g p u b l i c a g e n c i e s m a y b e a d d e d a s p a r t i e s t o t h i s A g r e e m e n t a n d b e c o m e P r o g r a m P a r t i c i p a n t s u p o n : (i ) t h e f i l i n g b y s u c h p u b l i c a g e n c y o f a n e x e c u t e d c o u n t e r p a r t o f t h i s A g r e e m e n t , t o g e t h e r w i t h a c e r t i f i e d c o p y o f t h e r e s o l u t i o n o f t h e g o v e r n i n g b o d y o f s u c h p u b l i c a g e n c y a p p r o v i n g t h i s A g r e e m e n t a n d t h e e x e c u t i o n a n d d e l i v e r y h e r e o f ; a n d ( i i ) a d o p t i o n o f a r e s o l u t i o n o f t h e C o m m i s s i o n a p p r o v i n g t h e a d d i t i o n o f s u c h p u b l i c a g e n c y a s a P r o g r a m P a r t i c i p a n t . U p o n s a t i s f a c t i o n o f s u c h c o n d i t i o n s , t h e C o m m i s s i o n s h a l l f i l e s u c h e x e c u t e d c o u n t e r p a r t o f t h i s A g r e e m e n t a s a n a m e n d m e n t h e r e t o , e f f e c t i v e u p o n s u c h f i l i n g . S e c t i o n 1 4 . I n d e m n i f i c a t i o n . T o t h e f u l l e x t e n t p e r m i t t e d b y l a w , t h e C o m m i s s i o n m a y a u t h o r i z e i n d e m n i f i c a t i o n b y t h e A u t h o r i t y o f a n y p e r s o n w h o i s o r w a s a m e m b e r o r a l t e r n a t e m e m b e r o f t h e C o m m i s s i o n , o r a n o f f i c e r , e m p l o y e e o r o t h e r a g e n t o f t h e A u t h o r i t y , a n d w h o w a s o r i s a p a r t y o r i s t h r e a t e n e d t o b e m a d e a p a r t y t o a p r o c e e d i n g b y r e a s o n o f t h e f a c t t h a t s u c h p e r s o n i s o r w a s s u c h a m e m b e r o r a l t e r n a t e m e m b e r o f t h e C o m m i s s i o n , o r a n o f f i c e r , e m p l o y e e o r o t h e r a g e n t o f t h e A u t h o r i t y , a g a i n s t e x p e n s e s , j u d g m e n t s , f i n e s , s e t t l e m e n t s a n d o t h e r a m o u n t s a c t u a l l y a n d r e a s o n a b l y i n c u r r e d i n c o n n e c t i o n w i t h s u c h p r o c e e d i n g , i f s u c h p e r s o n a c t e d i n g o o d f a i t h a n d i n a m a n n e r s u c h p e r s o n r e a s o n a b l y b e l i e v e d t o b e i n t h e b e s t i n t e r e s t s o f t h e A u t h o r i t y a n d , i n t h e c a s e o f a c r i m i n a l p r o c e e d i n g , h a d n o r e a s o n a b l e c a u s e t o b e l i e v e t h e c o n d u c t o f s u c h p e r s o n w a s u n l a w f u l a n d , i n t h e c a s e o f a n a c t i o n b y o r i n t h e r i g h t o f t h e A u t h o r i t y , a c t e d w i t h s u c h c a r e , i n c l u d i n g r e a s o n a b l e i n q u i r y , a s a n o r d i n a r i l y p r u d e n t p e r s o n i n a l i k e p o s i t i o n w o u l d u s e u n d e r s i m i l a r c i r c u m s t a n c e s . S e c t i o n 1 5 . C o n t r i b u t i o n s a n d A d v a n c e s. C o n t r i b u t i o n s o r a d v a n c e s o f p u b l i c f u n d s a n d o f t h e u s e o f p e r s o n n e l , e q u i p m e n t o r p r o p e r t y m a y b e m a d e t o t h e A u t h o r i t y b y t h e p a r t i e s h e r e t o f o r a n y o f t h e p u r p o s e s o f t h i s A g r e e m e n t . P a y m e n t o f p u b l i c f u n d s m a y b e m a d e t o d e f r a y t h e c o s t o f a n y s u c h c o n t r i b u t i o n . A n y s u c h a d v a n c e m a y b e m a d e s u b j e c t t o r e p a y m e n t , a n d i n s u c h c a s e s h a l l b e r e p a i d , i n t h e m a n n e r a g r e e d u p o n b y t h e A u t h o r i t y a n d t h e p a r t y m a k i n g s u c h a d v a n c e a t t h e t i m e o f s u c h a d v a n c e . S e c t i o n 1 6 . I m m u n i t i e s. A l l o f t h e p r i v i l e g e s a n d i m m u n i t i e s f r o m l i a b i l i t i e s , e x e m p t i o n s f r o m l a w s , o r d i n a n c e s a n d r u l e s , a l l p e n s i o n , r e l i e f , d i s a b i l i t y , w o r k e r s ’ c o m p e n s a t i o n , a n d o t h e r b e n e f i t s w h i c h a p p l y t o t h e a c t i v i t y o f o f f i c e r s , a g e n t s o r e m p l o y e e s o f P r o g r a m P a r t i c i p a n t s w h e n p e r f o r m i n g t h e i r ---PAGE BREAK--- 12 r e s p e c t i v e f u n c t i o n s w i t h i n t h e t e r r i t o r i a l l i m i t s o f t h e i r r e s p e c t i v e p u b l i c a g e n c i e s , s h a l l a p p l y t o t h e m t o t h e s a m e d e g r e e a n d e x t e n t w h i l e e n g a g e d a s m e m b e r s o f t h e C o m m i s s i o n o r o t h e r w i s e a s a n o f f i c e r , a g e n t o r o t h e r r e p r e s e n t a t i v e o f t h e A u t h o r i t y o r w h i l e e n g a g e d i n t h e p e r f o r m a n c e o f a n y o f t h e i r f u n c t i o n s o r d u t i e s e x t r a t e r r i t o r i a l l y u n d e r t h e p r o v i s i o n s o f t h i s A g r e e m e n t . S e c t i o n 1 7 . A m e n d m e n t s . E x c e p t a s p r o v i d e d i n S e c t i o n 1 3 a b o v e , t h i s A g r e e m e n t s h a l l n o t b e a m e n d e d , m o d i f i e d , o r a l t e r e d e x c e p t b y a w r i t t e n i n s t r u m e n t d u l y e x e c u t e d b y e a c h o f t h e P r o g r a m P a r t i c i p a n t s . S e c t i o n 1 8 . E f f e c t i v e n e s s . T h i s A g r e e m e n t s h a l l b e c o m e e f f e c t i v e a n d b e i n f u l l f o r c e a n d e f f e c t a n d a l e g a l , v a l i d a n d b i n d i n g o b l i g a t i o n o f e a c h o f t h e P r o g r a m P a r t i c i p a n t s a t 9 : 0 0 a . m . , C a l i f o r n i a t i m e , o n t h e d a t e t h a t t h e C o m m i s s i o n s h a l l h a v e r e c e i v e d f r o m e a c h o f t h e I n i t i a l P a r t i c i p a n t s a n e x e c u t e d c o u n t e r p a r t o f t h i s A g r e e m e n t , t o g e t h e r w i t h a c e r t i f i e d c o p y o f a r e s o l u t i o n o f t h e g o v e r n i n g b o d y o f e a c h s u c h I n i t i a l P a r t i c i p a n t a p p r o v i n g t h i s A g r e e m e n t a n d t h e e x e c u t i o n a n d d e l i v e r y h e r e o f . S e c t i o n 1 9 . P a r t i a l I n v a l i d i t y . I f a n y o n e o r m o r e o f t h e t e r m s , p r o v i s i o n s , p r o m i s e s , c o v e n a n t s o r c o n d i t i o n s o f t h i s A g r e e m e n t s h a l l t o a n y e x t e n t b e a d j u d g e d i n v a l i d , u n e n f o r c e a b l e , v o i d o r v o i d a b l e f o r a n y r e a s o n w h a t s o e v e r b y a c o u r t o f c o m p e t e n t j u r i s d i c t i o n , e a c h a n d a l l o f t h e r e m a i n i n g t e r m s , p r o v i s i o n s , p r o m i s e s , c o v e n a n t s a n d c o n d i t i o n s o f t h i s A g r e e m e n t s h a l l n o t b e a f f e c t e d t h e r e b y , a n d s h a l l b e v a l i d a n d e n f o r c e a b l e t o t h e f u l l e s t e x t e n t p e r m i t t e d b y l a w . S e c t i o n 2 0 . S u c c e s s o r s. T h i s A g r e e m e n t s h a l l b e b i n d i n g u p o n a n d s h a l l i n u r e t o t h e b e n e f i t o f t h e s u c c e s s o r s o f t h e p a r t i e s h e r e t o . E x c e p t t o t h e e x t e n t e x p r e s s l y p r o v i d e d h e r e i n , n o p a r t y m a y a s s i g n a n y r i g h t o r o b l i g a t i o n h e r e u n d e r w i t h o u t t h e c o n s e n t o f t h e o t h e r p a r t i e s . S e c t i o n 2 1 . M i s c e l l a n e o u s . T h i s A g r e e m e n t m a y b e e x e c u t e d i n s e v e r a l c o u n t e r p a r t s , e a c h o f w h i c h s h a l l b e a n o r i g i n a l a n d a l l o f w h i c h s h a l l c o n s t i t u t e b u t o n e a n d t h e s a m e i n s t r u m e n t . ---PAGE BREAK--- 13 T h e s e c t i o n h e a d i n g s h e r e i n a r e f o r c o n v e n i e n c e o n l y a n d a r e n o t t o b e c o n s t r u e d a s m o d i f y i n g o r g o v e r n i n g t h e l a n g u a g e i n t h e s e c t i o n r e f e r r e d t o . W h e r e v e r i n t h i s A g r e e m e n t a n y c o n s e n t o r a p p r o v a l i s r e q u i r e d , t h e s a m e s h a l l n o t b e u n r e a s o n a b l y w i t h h e l d . T h i s A g r e e m e n t i s m a d e i n t h e S t a t e o f C a l i f o r n i a , u n d e r t h e C o n s t i t u t i o n a n d l a w s o f s u c h s t a t e a n d i s t o b e s o c o n s t r u e d . T h i s A g r e e m e n t i s t h e c o m p l e t e a n d e x c l u s i v e s t a t e m e n t o f t h e a g r e e m e n t a m o n g t h e p a r t i e s h e r e t o , w h i c h s u p e r c e d e s a n d m e r g e s a l l p r i o r p r o p o s a l s , u n d e r s t a n d i n g s , a n d o t h e r a g r e e m e n t s , i n c l u d i n g , w i t h o u t l i m i t a t i o n , t h e I n i t i a l A g r e e m e n t , w h e t h e r o r a l , w r i t t e n , o r i m p l i e d i n c o n d u c t , b e t w e e n a n d a m o n g t h e p a r t i e s r e l a t i n g t o t h e s u b j e c t m a t t e r o f t h i s A g r e e m e n t . I N W I T N E S S W H E R E O F , t h e p a r t i e s h e r e t o h a v e c a u s e d t h i s A g r e e m e n t t o b e e x e c u t e d a n d a t t e s t e d b y t h e i r p r o p e r o f f i c e r s t h e r e u n t o d u l y a u t h o r i z e d , a n d t h e i r o f f i c i a l s e a l s t o b e h e r e t o a f f i x e d , a s o f t h e d a y a n d y e a r f i r s t a b o v e w r i t t e n . Program Participant: [SEAL] By Name: Title: ATTEST: By Name: Title: City of El Cerrito ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 4 RESOLUTION 2015-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO AUTHORIZING THE CITY OF EL CERRITO TO JOIN THE CALIFORNIAFIRST PROGRAM; AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS, CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE INCORPORATED TERRITORY OF THE CITY; AND AUTHORIZING RELATED ACTIONS WHEREAS, the California Statewide Communities Development Authority (California Communities) 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 El Cerrito (City); and WHEREAS, California Communities has established the CaliforniaFIRST program and will provide financing for certain improvements authorized by Chapter 29 of Division 7 of the Streets & Highways Code (Chapter 29), including, but not limited to, renewable energy, energy efficiency and water efficiency improvements and seismic strengthening improvements (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 (Bonds) under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (1915 Act) upon the security of the unpaid contractual assessments; and WHEREAS, Chapter 29 provides that assessments may be levied under its provision 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 Property Owners) within the incorporated territory of the City to participate in the CaliforniaFIRST Program and to allow California Communities to conduct assessment proceedings under Chapter 29 within the incorporated territory of the City and to issue Bonds under the 1915 Act to finance the improvements; and WHEREAS, California Communities will conduct assessment proceedings under Chapter 29 and issue Bonds under the 1915 Act to finance improvements; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessments; or the issuance, sale or administration of the Bonds or any other bonds issues in connection with the CaliforniaFIRST Program. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of El Cerrito that the City Council hereby finds and declares that properties in the City’s incorporated area will benefit from the availability of the CaliforniaFIRST Program within the incorporated territory of the City and, pursuant thereto, the conduct of special assessment proceedings by California Communities pursuant to Chapter 29 and the issuance of Bonds under the 1915 Act. BE IT FURTHER RESOLVED that in connection with the CaliforniaFIRST Program, the City hereby consents to the conduct of special assessment proceedings by California Communities pursuant to Chapter 29 on any property within its jurisdiction and the issuance of Bonds under the 1915 Act; provided, that: ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 4 1) The Participating Property Owners, who shall be the legal owners of such property, 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 2) The City will not be responsible for the conduct of any assessment proceedings; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of the Bonds or any other bonds issued in connection with the CaliforniaFIRST Program. 3) The issuance of Bonds will occur following receipt of a final judgment in a validation action filed by California Communities pursuant to Code of Civil Procedure Section 860 that the Bonds are legal obligations of California Communities. BE IT FURTHER RESOLVED that pursuant to the requirements of Chapter 29, California Communities has prepared and will update from time to time the “Program Report” for the CaliforniaFIRST Program (Program Report), and California Communities will undertake assessment proceedings and the financing of improvements as set forth in the Program Report. BE IT FURTHER RESOLVED that the appropriate officials and staff of the City are hereby authorized and directed to make applications for the CaliforniaFIRST Program available to all property owners who wish to finance improvements; provided, that California Communities shall be responsible for providing such applications and related materials at its own expense. The following staff persons, together with any other staff persons chosen by the City Manager from time to time, are herby designated as the contact persons for California Communities in connection with the CaliforniaFIRST Program: Melanie Mintz, Community Development Director. BE IT FURTHER RESOLVED that the appropriate officials and staff of the City are hereby authorized and directed to execute and deliver such closing certificates, requisitions, indemnification and insurance agreements and related documents as are reasonably required by California Communities in accordance with the Program Report to implement the CaliforniaFIRST Program for Participating Property Owners. BE IT FURTHER RESOLVED that the City Council hereby finds that adoption of this Resolution is not a “project” under the California Environmental Quality Act, 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) BE IT FURTHER RESOLVED that this resolution shall take effect immediately upon its adoption and execution of the Indemnification and Insurance Agreement. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of California Communities upon execution of the Indemnification and Insurance Agreement: Secretary of the Board, California Statewide Communities Development Authority, 1400 K Street, Sacramento, CA 95814. I CERTIFY that at a regular meeting on March 17, 2015 the City Council of the City of El Cerrito passed this Resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 4 IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on March 17, 2015. Cheryl Morse, City Clerk APPROVED: Mark Friedman, Mayor ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 5 SAMPLE INDEMNIFICATION AGREEMENT 1 INDEMNIFICATION AND INSURANCE AGREEMENT BY AND BETWEEN CITY OF EL CERRITO AND RENEWABLE FUNDING, LLC This Indemnification and Insurance Agreement (the “Agreement”) is entered into by and between the City of El Cerrito a municipal corporation (“City”) and Renewable Funding, LLC, a California limited liability company (the “Administrator”), the administrator of the CaliforniaFIRST Program, which is a program of the California Statewide Communities Development Authority, a California joint exercise of powers authority (the “Authority”). RECITALS WHEREAS, the Authority is a joint exercise of powers authority whose members of which include the City in addition to other cities and counties in the State of California; and WHEREAS, the Authority established the CaliforniaFIRST Program (“PACE Program”) to allow the financing of certain renewable energy, energy efficiency and water efficiency improvements that are permanently affixed to real property through the levy of assessments voluntarily agreed to by the participating property owners pursuant to Chapter 29 of Division 7 of the Streets and Highways Code (“Chapter 29”) and the issuance of improvement bonds under the Improvement Bond Act of 1915 upon the security of the unpaid assessments; and WHEREAS, the Authority has conducted or will conduct proceedings required by Chapter 29 with respect to the territory within the boundaries of the City; and WHEREAS, on March 17th, 2015, the City Council of the City of El Cerrito adopted a resolution authorizing the City to join the PACE Program, authorizing the Authority to accept applications from eligible property owners, conduct assessment proceedings and levy assessments within the territory of the City and authorizing related actions; and ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 5 SAMPLE INDEMNIFICATION AGREEMENT 2 WHEREAS, the Authority is solely responsible for the formation, operation and administration of the PACE Program as well as the sale and issuance of any bonds in connection therewith, including the conduct of assessment proceedings, the levy and collection of assessments and any remedial action in the case of such assessment payments, and the offer, sale and administration of any bonds issued by the Authority on behalf of the PACE Program; and WHEREAS, the Administrator is the administrator of the PACE Program and agrees to indemnify the City and provide insurance and add the City as an additional insured on its insurance policy or policies in connection with the operations of the PACE Program as set forth herein; and NOW, THERFORE, in consideration of the above premises and of the City’s agreement to join the PACE Program, the parties agree as follows: 1. Agreement to Indemnify. The Administrator agrees to defend, indemnify and hold harmless the City, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, fines, penalties, judgments, demands and defense costs (including, without limitation, actual, direct, out-of-pocket costs and expenses and amounts paid in compromise or settlement and reasonable outside legal fees arising from litigation of every nature or liability of any kind or nature including civil, criminal, administrative or investigative) arising out of or in connection with the PACE Program except such loss or damage which was caused by the sole negligence or willful misconduct of the City. The Administrator will conduct all defenses at its sole cost and expense and the City shall reasonably approve selection of the Administrator’s counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies of the Administrator, its affiliates or any other parties are applicable thereto. The policy limits of any insurance of the Administrator, its affiliates or other parties are not a limitation upon the obligation of the Administrator including without limitation the amount of indemnification to be provided by the Administrator. ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 5 SAMPLE INDEMNIFICATION AGREEMENT 3 2. Insurance. The Administrator agrees that, at no cost or expense to the City, at all times during the operation of the PACE Program, to maintain the insurance coverage set forth in Exhibit A to this Agreement. 3. Amendment/Interpretation of this Agreement. . This Agreement, including all Exhibits attached hereto, represents the entire understanding of the parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. This Agreement shall not be interpreted for or against any party by reason of the fact that such party may have drafted this Agreement or any of its provisions. 4. Section Headings. Section headings in this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 5. Waiver. No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed by the party against whom enforcement is sought, and no such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided herein, no failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver thereof. 6. Severability and Governing Law. If any provision or portion thereof of this Agreement shall be held by a court of competent jurisdiction to be invalid, void, or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California applicable to contracts made and to be performed in California. ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 5 SAMPLE INDEMNIFICATION AGREEMENT 4 7. Notices. All notices, demands and other communications required or permitted hereunder shall be made in writing and shall be deemed to have been duly given if delivered by hand, against receipt, or mailed certified or registered mail and addressed as follows: If to the Administrator Renewable Funding, LLC 500 12th Street, #300 Oakland, CA 94607 If to the City: City of El Cerrito 10890 San Pablo Ave El Cerrito, CA 94530 ATTN: Community Development Director 8. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, which together shall constitute the same instrument. 9. Effective Date. This Agreement will be effective as of the date of the signature of City’s representative as indicated below in the City’s signature block. IN WITNESS HEREOF, the parties hereto duly executed this Agreement as of the date below. ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 5 SAMPLE INDEMNIFICATION AGREEMENT 5 APPROVED AS TO FORM: Sky Woodruff City Attorney “City” City of El Cerrito, a municipal corporation Date: “Administrator” Renewable Funding, LLC Name: Title: Date: ---PAGE BREAK--- ATTACHMENT A A-1 EXHIBIT A INSURANCE A. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. The coverage provided by Insurance Services Office Commercial General Liability coverage (“occurrence”) Form Number CG 0001; and 2. The coverage provided by Insurance Services Office Form Number CA 0001 covering Automobile Liability. Coverage shall be included for all owned, non- owned and hired automobiles; and 3. Workers' Compensation insurance as required by the California Labor Code and Employers Liability insurance; and 4. Professional Liability Errors & Omissions for all professional services. There shall be no endorsement reducing the scope of coverage required above unless approved by the City’s Risk Manager. B. Minimum Limits of Insurance Administrator shall maintain limits no less than: 1. Commercial General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit; and 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage; and 3. Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the California Labor Code and Employers Liability limits of $1,000,000 per accident; and 4. Professional Liability Errors & Omissions $1,000,000 per occurrence/ aggregate limit. ---PAGE BREAK--- ATTACHMENT A A-2 C. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to, and approved by City's Risk Manager. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its officers, employees, agents and contractors; or Administrator shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses in an amount specified by the City’s Risk Manager. D. Other Insurance Provisions The policies are to contain, or be endorsed to contain, the following provisions: 1. Commercial General Liability and Automobile Liability Coverages a. City of El Cerrito, its officers, employees, agents and contractors are to be covered as additional insureds as respects: Liability arising out of activities performed by or on behalf of, Administrator; products and completed operations of Administrator; premises owned, leased or used by Administrator; and automobiles owned, leased, hired or borrowed by Administrator. The coverage shall contain no special limitations on the scope of protection afforded to City, its officers, employees, agents and contractors. b. Administrator's insurance coverage shall be primary insurance as respects City, its officers, employees, agents and contractors. Any insurance or self-insurance maintained by City, its officers, employees, agents or contractors shall be excess of Administrator's insurance and shall not contribute with it. c. Any failure to comply with reporting provisions of the policies by Administrator shall not affect coverage provided City, its officers, employees, agents, or contractors. d. Coverage shall state that Administrator’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. e. Coverage shall contain a waiver of subrogation in favor of the City, its officers, employees, agents and contractors. 2. Workers’ Compensation and Employers’ Liability Coverage shall contain waiver of subrogation in favor of City of El Cerrito, its officers, employees, agents and contractors. ---PAGE BREAK--- ATTACHMENT A A-3 3. All Coverages Each insurance policy required by this AGREEMENT shall be endorsed to state that coverage shall not be suspended, voided, cancelled, or reduced in limits except after thirty (30) days' prior written notice has been given to City, except that ten (10) days’ prior written notice shall apply in the event of cancellation for nonpayment of premium. E. Acceptability of Insurers Insurance is to be placed with insurers acceptable to City's Risk Manager. F. Verification of Coverage Administrator shall furnish City with certificates of insurance and with original endorsements affecting coverage required by this AGREEMENT. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. Proof of insurance shall be either emailed in pdf format to: [EMAIL REDACTED], or mailed to the following postal address or any subsequent address as may be directed in writing by the Risk Manager: City of El Cerrito 10890 San Pablo Ave El Cerrito, CA 94530 ATTN: Community Development Director G. Subcontractors Administrator shall include all subcontractors as insureds under its policies or shall obtain separate certificates and endorsements for each subcontractor. ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 6 RESOLUTION 2015-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE TERRITORY OF THE CITY IN THE CSCDA OPEN PACE PROGRAMS; AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITY DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS, CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE CITY; AND AUTHORIZING RELATED ACTIONS. WHEREAS, the California Statewide Communities Development Authority (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 El Cerrito (City); and WHEREAS, the Authority is implementing Property Assessed Clean Energy (PACE) program, which it has designated CSCDA Open PACE, consisting of CSCDA Open PACE programs each administered by a separate program administrator (collectively with any successors, assigns, replacements or additions, the Programs), to allow the financing or refinancing of 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 pursuant to Chapter 29 of Division 7 of the Streets & Highways Code (Chapter 29) within counties and cities throughout the State of California that consent to the inclusion of properties within their respective territories in the Programs and the issuance of bonds from time to time; and WHEREAS, the program administrators currently active in administering Programs are Alliance NRG and Renewable Funding LLC, and the Authority will notify the City in advance of any additions or changes; 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 City desires to allow the owners of property (Participating Property Owners) within its territory to participate in the Programs and to allow the Authority to conduct assessment proceedings under Chapter 29 within its territory and to issue bonds to finance or refinance Improvements; and WHEREAS, the territory within which assessments may be levied for the Programs shall include all of the territory within the City’s official boundaries; and WHEREAS, the Authority will conduct all assessment proceedings under Chapter 29 for the Programs and issue any bonds issued in connection with the Programs; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy of any 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 Programs. ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 6 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of El Cerrito as follows: Section 1. This City Council hereby finds and declares that properties in the territory of the City will benefit from the availability of the Programs within the territory of the City 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 Improvements. Section 2. In connection with the Programs, the City hereby consents to the conduct of special assessment proceedings by the Authority pursuant to Chapter 29 on any property within the territory of the City and the issuance of bonds to finance or refinance Improvements; provided that 1. The Participating Property Owners, who shall be the legal owners of such property, 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 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 in connection with the Programs. Section 3. The appropriate officials and staff of the City are hereby authorized and directed to make applications for the Programs available to all property owners who wish to finance or refinance Improvements; provided that the Authority shall be responsible for providing such applications and related materials at its own expense. The following staff persons, together with any other staff persons chosen by the City Manager of the City from time to time, are hereby designated as the contact persons for the Authority in connection with the Programs: Community Development Director. Section 4. The appropriate officials and staff of the City are 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 Programs. Section 5. The City Council hereby finds that adoption of this Resolution is not a “project” under the California Environmental Quality Act, 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). BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon passage and 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. I CERTIFY that at a regular meeting on March 17, 2015 the City Council of the City of El Cerrito passed this Resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 6 IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on March 17, 2015. Cheryl Morse, City Clerk APPROVED: Mark Friedman, Mayor ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 7 RESOLUTION 2015-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO, CALIFORNIA, CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE CITY’S JURISDICTION IN THE CALIFORNIA HERO PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY AND WATER EFFICIENCY IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AND APPROVING THE AMENDMENT TO A CERTAIN JOINT POWERS AUTHORITY AGREEMENT RELATED THERETO WHEREAS, the Western Riverside Council of Governments (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 April 1, 1991, as amended from time to time (the Authority JPA); and WHEREAS, Authority intends to establish the California HERO Program to provide for the financing of renewable energy distributed generation sources, energy and water efficiency improvements and electric vehicle charging infrastructure (Improvements) pursuant to Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highway Code (Chapter 29) within counties and cities throughout the State of California that elect to participate in such a program; and WHEREAS, the City of El Cerrito (City) is committed to development of renewable energy sources and energy efficiency improvements, reduction of greenhouse gases, protection of our environment, and reversal of climate change; 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 California HERO 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 independence, and in doing so cooperate with the Authority in order to efficiently and economically assist property owners in the City in financing such improvements; and WHEREAS, the Authority has authority to establish the California HERO Program, which will be such a voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally made and entered into April 1, 1991, as amended to date, and the Amendment to Joint Powers Agreement Adding the City of El Cerrito as an Associate Member of the Western Riverside Council of Governments to Permit the Provision of Property Assessed Clean Energy (PACE) Program Services within the City (JPA Amendment), by and between Authority and the City, a copy of which is attached as Exhibit hereto, to assist property owners within the incorporated area 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 assessment or any required remedial action in the case of delinquencies in the ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 7 payment of any assessments or the issuance, sale or administration of any bonds issued in connection with the California HERO Program. NOW THEREFORE, BE IT RESOLVED that this City Council finds and declares that properties in the City’s incorporated area will be benefited by the availability of the California HERO Program to finance the installation of improvements. BE IT FURTHER RESOLVED that this City Council consents to inclusion in the California HERO Program of all of the properties in the incorporated area within 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 of the purposes thereof. BE IT FURTHER RESOLVED that the consent of this City Council constitutes assent to the assumption of jurisdiction by the Authority for all purposes of the California HERO Program and authorizes the 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 and be secured by such contractual assessments. BE IT FURTHER RESOLVED that the City Council hereby approves the JPA Amendment and authorizes the execution thereof by appropriate City officials. BE IT FURTHER RESOLVED that City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the California HERO Program within the City, and report back periodically to this City Council on the success of such program. BE IT FURTHER RESOLVED that 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 Executive Committee: 4080 Lemon Street, 3rd Floor, MS 1032, Riverside, CA 92501-3609. I CERTIFY that at a regular meeting on March 17, 2015 the City Council of the City of El Cerrito passed this Resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on March 17, 2015. Cheryl Morse, City Clerk APPROVED: Mark Friedman, Mayor ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 8 A - 1 AMENDMENT TO THE JOINT POWERS AGREEMENT ADDING CITY OF EL CERRITO AS AN ASSOCIATE MEMBER OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS TO PERMIT THE PROVISION OF PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM SERVICES WITH SUCH CITY This Amendment to the Joint Powers Agreement (“JPA Amendment”) is made and entered into on the day of by City of El Cerrito (“City”) and the Western Riverside Council of Governments (“Authority”) (collectively the “Parties”). RECITALS WHEREAS, 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 “Joint Exercise of Powers Act”) and the Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the “Authority JPA”); and WHEREAS, as of October 1, 2012, Authority had 18 member entities (the “Regular Members”). WHEREAS, Chapter 29 of the Improvement Act of 1911, being Division 7 of the California Streets and Highways Code (“Chapter 29”) authorizes cities, counties, and cities and counties to establish voluntary contractual assessment programs, commonly referred to as a Property Assessed Clean Energy (“PACE”) program, to fund certain renewable energy sources, energy and water efficiency improvements, and electric vehicle charging infrastructure (the “Improvements”) that are permanently fixed to residential, commercial, industrial, agricultural or other real property; and WHEREAS, Authority intends to establish a PACE program to be known as the “California HERO Program” pursuant to Chapter 29 as now enacted or as such legislation may be amended hereafter, which will authorize the implementation of a PACE financing program for cities and county throughout the state; and WHEREAS, City desires to allow owners of property within its jurisdiction to participate in the California HERO Program and to allow Authority to conduct proceedings under Chapter 29 to finance Improvements to be installed on such properties; and WHEREAS, this JPA Amendment will permit City to become an Associate Member of Authority and to participate in California HERO Program for the purpose of facilitating the implementation of such program within the jurisdiction of City; and WHEREAS, pursuant to the Joint Exercise of Powers Act, the Parties are approving this JPA Agreement to allow for the provision of PACE services, including the operation of a PACE financing program, within the incorporated territory of City; and WHEREAS, the JPA Amendment sets forth the rights, obligations and duties of City and Authority with respect to the implementation of the California HERO Program within the incorporated territory of City. ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 8 A - 2 MUTUAL UNDERSTANDINGS NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter stated, the Parties hereto agree as follows: A. JPA Amendment. 1. The Authority JPA. City agrees to the terms and conditions of the Authority JPA, attached. 2. Associate Membership. By adoption of this JPA Amendment, City shall become an Associate Member of Authority on the terms and conditions set forth herein and the Authority JPA and consistent with the requirements of the Joint Exercise of Powers Act. The rights and obligations of City as an Associate Member are limited solely to those terms and conditions expressly set forth in this JPA Amendment for the purposes of implementing the California HERO Program within the incorporated territory of City. Except as expressly provided for by the this JPA Amendment, City shall not have any rights otherwise granted to Authority’s Regular Members by the Authority JPA, including but not limited to the right to vote on matters before the Executive Committee or the General Assembly, the right to amend or vote on amendments to the Authority JPA, and the right to sit on committees or boards established under the Authority JPA or by action of the Executive Committee or the General Assembly, including, without limitation, the General Assembly and the Executive Committee. City shall not be considered a member for purposes of Section 9.1 of the Authority JPA. 3. Rights of Authority. This JPA Amendment shall not be interpreted as limiting or restricting the rights of Authority under the Authority JPA. Nothing in this JPA Amendment is intended to alter or modify Authority Transportation Uniform Mitigation Fee (TUMF) Program, the PACE Program administered by Authority within the jurisdictions of its Regular Members, or any other programs administered now or in the future by Authority, all as currently structured or subsequently amended. B. Implementation of California HERO Program within City Jurisdiction. 1. Boundaries of the California HERO Program within City Jurisdiction. City shall determine and notify Authority of the boundaries of the incorporated territory within City’s jurisdiction within which contractual assessments may be entered into under the California HERO Program (the “Program Boundaries”), which boundaries may include the entire incorporated territory of City or a lesser portion thereof. 2. Determination of Eligible Improvements. Authority shall determine the types of distributed generation renewable energy sources, energy efficiency or water conservation improvements, electric vehicle charging infrastructure or such other improvements as may be authorized pursuant to Chapter 29 (the “Eligible Improvements”) that will be eligible to be financed under the California HERO Program. 3. Establishment of California HERO Program. Authority will undertake such proceedings pursuant to Chapter 29 as shall be legally necessary to enable Authority to make ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 8 A - 3 contractual financing of Eligible Improvements available to eligible property owners within the Program Boundaries. 4. Financing the Installation of Eligible Improvements. Authority shall develop and implement a plan for the financing of the purchase and installation of the Eligible Improvements under the California HERO Program. 5. Ongoing Administration. Authority shall be responsible for the ongoing administration of the California HERO Program, including but not limited to producing education plans to raise public awareness of the California HERO Program, soliciting, reviewing and approving applications from residential and commercial property owners participating in the California HERO Program, establishing contracts for residential, commercial and other property owners participating in such program, establishing and collecting assessments due under the California HERO Program, adopting and implementing any rules or regulations for the California HERO Program, and providing reports as required by Chapter 29. City will not be responsible for the conduct of any proceedings required to be taken under Chapter 29; the levy or collection of assessments or 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 California HERO Program. 6. Phased Implementation. The Parties recognize and agree that implementation of the California HERO Program as a whole can and may be phased as additional other cities and counties execute similar agreements. City entering into this JPA Amendment will obtain the benefits of and incur the obligations imposed by this JPA Amendment in its jurisdictional area, irrespective of whether cities or counties enter into similar agreements. C. Miscellaneous Provisions. 1. Withdrawal. City or Authority may withdraw from this JPA Amendment upon six months written notice to the other party; provided, however, there is no outstanding indebtedness of Authority within City. The provisions of Section 6.2 of the Authority JPA shall not apply to City under this JPA Amendment. City may withdraw approval for conduct of the HERO Program within the jurisdictional limits of City upon thirty (30) written notice to WRCOG without liability to the Authority or any affiliated entity. City withdrawal shall not affect the validity of any voluntary assessment contracts entered prior to the date of such withdrawal or entered into after the date of such withdrawal so long as the applications for such voluntary assessment contracts were submitted to and approved by WRCOG prior to the date of City’s notice of withdrawal. 2. Agreement to Indemnify. The Administrator agrees to defend, indemnify and hold harmless the City, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, fines, penalties, judgments, demands and defense costs (including, without limitation, actual, direct, out-of- pocket costs and expenses and amounts paid in compromise or settlement and reasonable outside legal fees arising from litigation of every nature or liability of any kind or nature including civil, criminal, administrative or investigative) arising out of the acts, errors or omissions of the ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 8 A - 4 Administrator and it’s officers, employees, agents and subcontractors in the operation of the PACE Program except such loss or damage which was caused by the sole negligence or willful misconduct on the part of the City, its officers, elected or appointed officials, employees, agents or volunteers. The Administrator will conduct all defenses at its sole cost and expense and the City shall reasonably approve selection of the Administrator’s counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies of the Administrator, its affiliates or any other parties are applicable thereto. The policy limits of any insurance of the Administrator, its affiliates or other parties are not a limitation upon the obligation of the Administrator including without limitation the amount of indemnification to be provided by the Administrator. 3. Insurance. The Administrator agrees that, at no cost or expense to the City, at all times during the operation of the PACE Program, to maintain the insurance coverage set forth in Attachment 1 to this Agreement. 4. Environmental Review. Authority shall be the lead agency under the California Environmental Quality Act for any environmental review that may required in implementing or administering the California HERO Program under this JPA Amendment. 5. Cooperative Effort. City shall cooperate with Authority by providing information and other assistance in order for Authority to meet its obligations hereunder. City recognizes that one of its responsibilities related to the California HERO Program will include any permitting or inspection requirements as established by City. 6. Notice. Any and all communications and/or notices in connection with this JPA Amendment shall be either hand-delivered or sent by United States first class mail, postage prepaid, and addressed as follows: Authority: Western Riverside Council of Governments 4080 Lemon Street, 3rd Floor. MS1032 Riverside, CA 92501-3609 Attn: Executive Director City: Attn: Community Development Director City of El Cerrito 10890 San Pablo Ave El Cerrito, CA 94530 7. Entire Agreement. This JPA Amendment, together with the Authority JPA, constitutes the entire agreement among the Parties pertaining to the subject matter hereof. This JPA Amendment 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, ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 8 A - 5 inducement, promise of agreement, oral or otherwise, has been made by the other Party or anyone acting on behalf of the other Party that is not embodied herein. 8. Successors and Assigns. This JPA Amendment 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 JPA Amendment with prior written approval of the other Party, which approval shall not be unreasonably withheld. 9. Attorney’s Fees. If any action at law or equity, including any action for declaratory relief is brought to enforce or interpret the provisions of this Agreement, each Party to the litigation shall bear its own attorney’s fees and costs. 10. Governing Law. This JPA Amendment shall be governed by and construed in accordance with the laws of the State of California, as applicable. 11. No Third Party Beneficiaries. This JPA Amendment 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 a Party to this JPA Amendment to maintain a suit for personal injuries or property damages under the provisions of this JPA Amendment. The duties, obligations, and responsibilities of the Parties to this JPA Amendment with respect to third party beneficiaries shall remain as imposed under existing state and federal law. 12. Severability. In the event one or more of the provisions contained in this JPA Amendment is held invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this JPA Amendment and the remaining parts of this JPA Amendment shall remain in full force and effect as though such invalid, illegal, or unenforceable portion had never been a part of this JPA Amendment. 13. Headings. The paragraph headings used in this JPA Amendment are for the convenience of the Parties and are not intended to be used as an aid to interpretation. 14. Amendment. This JPA Amendment may be modified or amended by the Parties at any time. Such modifications or amendments must be mutually agreed upon and executed in writing by both Parties. Verbal modifications or amendments to this JPA Amendment shall be of no effect. 15. Effective Date. This JPA Amendment shall become effective upon the execution thereof by the Parties hereto. IN WITNESS WHEREOF, the Parties hereto have caused this JPA Amendment to be executed and attested by their officers thereunto duly authorized as of the date first above written. ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 8 A - 6 WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS By: Date: Executive Committee Chair Western Riverside Council of Governments CITY OF EL CERRITO By: Date: Title: ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 8 A - 7 ATTACHMENT 1 INSURANCE A. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. The coverage provided by Insurance Services Office Commercial General Liability coverage (“occurrence”) Form Number CG 0001; and 2. The coverage provided by Insurance Services Office Form Number CA 0001 covering Automobile Liability. Coverage shall be included for all owned, non-owned and hired automobiles; and 3. Workers' Compensation insurance as required by the California Labor Code and Employers Liability insurance; and 4. Professional Liability Errors & Omissions for all professional services. There shall be no endorsement reducing the scope of coverage required above unless approved by the City’s Risk Manager. B. Minimum Limits of Insurance Administrator shall maintain limits no less than: 1. Commercial General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit; and 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage; and 3. Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the California Labor Code and Employers Liability limits of $1,000,000 per accident; and 4. Professional Liability Errors & Omissions $1,000,000 per occurrence/ aggregate limit. ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 8 A - 8 C. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to, and approved by City's Risk Manager. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its officers, employees, agents and contractors; or Administrator shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses in an amount specified by the City’s Risk Manager. D. Other Insurance Provisions The policies are to contain, or be endorsed to contain, the following provisions: 1. Commercial General Liability and Automobile Liability Coverages a. City of El Cerrito, its officers, employees, agents and contractors are to be covered as additional insureds as respects: Liability arising out of activities performed by or on behalf of, Administrator; products and completed operations of Administrator; premises owned, leased or used by Administrator; and automobiles owned, leased, hired or borrowed by Administrator. The coverage shall contain no special limitations on the scope of protection afforded to City, its officers, employees, agents and contractors. b. Administrator's insurance coverage shall be primary insurance as respects City, its officers, employees, agents and contractors. Any insurance or self-insurance maintained by City, its officers, employees, agents or contractors shall be excess of Administrator's insurance and shall not contribute with it. c. Any failure to comply with reporting provisions of the policies by Administrator shall not affect coverage provided City, its officers, employees, agents, or contractors. d. Coverage shall state that Administrator’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. e. Coverage shall contain a waiver of subrogation in favor of the City, its officers, employees, agents and contractors. 2. Workers’ Compensation and Employers’ Liability Coverage shall contain waiver of subrogation in favor of City of El Cerrito, its officers, employees, agents and contractors. 3. All Coverages Each insurance policy required by this AGREEMENT shall be endorsed to state that coverage shall not be suspended, voided, cancelled, or reduced in limits except after thirty (30) days' prior ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 8 A - 9 written notice has been given to City, except that ten (10) days’ prior written notice shall apply in the event of cancellation for nonpayment of premium. E. Acceptability of Insurers Insurance is to be placed with insurers acceptable to City's Risk Manager. F. Verification of Coverage Administrator shall furnish City with certificates of insurance and with original endorsements affecting coverage required by this AGREEMENT. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. Proof of insurance shall be either emailed in pdf format to: [EMAIL REDACTED], and mailed to the following postal address or any subsequent address as may be directed in writing by the Risk Manager: City of El Cerrito 10890 San Pablo Ave El Cerrito, CA 94530 ATTN: Community Development Director G. Subcontractors Administrator shall include all subcontractors as insureds under its policies or shall obtain separate certificates and endorsements for each subcontractor. ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 9 RESOLUTION 2015-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO 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 EL CERRITO; AND AUTHORIZING RELATED ACTIONS. WHEREAS, the City of El Cerrito, California (City), a municipal corporation, duly organized and existing under the Constitution and the laws of the State of California; and WHEREAS, the City, upon authorization of the City Council, may pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, commencing with Section 6500 (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 business and nonprofit entities within their jurisdictions offered by membership in the California Enterprise Development Authority (the Authority) pursuant to an associate membership agreement and Joint Exercise of Powers Agreement Relating to the California Enterprise Development Authority (Agreement); and WHEREAS, under the JPA Law and the Agreement, the Authority is a public entity separate and apart from the parties to the Agreement and the debts, liabilities and obligations of the Authority 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 (Associate Membership Agreement) between the City and the Authority is attached; and WHEREAS, the City is willing to become an Associate Member of the Authority subject to the provisions of the Associate Membership Agreement; and WHEREAS, the California Enterprise Development Authority (CEDA) is a joint exercise of powers authority, comprised of cities and counties in the State of California, including the City of El Cerrito (City); and WHEREAS, CEDA has adopted the Figtree Property Assessed Clean Energy (PACE) and Job Creation Program (Program or Figtree PACE), to allow the financing of certain renewable energy, energy efficiency and water efficiency improvements (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 (Bonds) under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 et seq.) (1915 Act) upon the security of the unpaid contractual assessments; and ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 9 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 WHEREA, 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 (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 (ROI), a copy of which is attached hereto as Exhibit A; 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 (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 Figtree PACE program, Figtree Energy Financing, 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, BE IT RESOLVED, that the City Council of the City of El Cerrito, hereby finds, determines and declares as follows: Section 1. The City Council hereby specifically finds and declares that the actions authorized hereby constitute public affairs of the City. The City Council further finds that the statements, findings and determinations of the City set forth in the preamble above are true and correct. 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 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. ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 9 Section 4. Good Standing. The City is either a municipal corporation or other public body and a member of CEDA 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. Appoint of CEDA. The City hereby appoints CEDA as its representative to 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.) (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 Figtree 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: 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 (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 Figtree has provided the City with an indemnification agreement, as shown in Exhibit B, for negligence or malfeasance of any type as a result of the acts or omissions of Figtree, 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 Figtree. 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 ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 9 connection with Figtree Pace: Melanie Mintz, Community Development Director, (510) 215-4339, [EMAIL REDACTED] 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. Costs. Services related to the information and administration of the assessment district will be provided by CEDA at no cost to the City. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon passage and adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this Resolution to Figtree Energy Financing: 9915 Mira Mesa Boulevard, Suite 130, San Diego, CA 92131. I CERTIFY that at a regular meeting on March 17, 2015 the City Council of the City of El Cerrito passed this Resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on March 17, 2015. Cheryl Morse, City Clerk APPROVED: Mark Friedman, Mayor ---PAGE BREAK--- Agenda Item No. 7(B) Attachment 10 4833-7301-9141.1 1 ASSOCIATE MEMBERSHIP AGREEMENT by and between the CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY and the CITY OF EL CERRITO, CALIFORNIA THIS ASSOCIATE MEMBERSHIP AGREEMENT (this “Associate Membership Agreement”), dated as of March 17, 2015 by and between CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY (the “Authority”) and the CITY OF EL CERRITO, CALIFORNIA, a municipal corporation, duly organized and existing under the laws of the State of California (the “City”); WITNESSETH: WHEREAS, the Cities of Selma, Lancaster and Eureka (individually, a “Member” and collectively, the “Members”), have entered into a Joint Powers Agreement, dated as of June 1, 2006 (the “Agreement”), establishing the Authority and prescribing its purposes and powers; and WHEREAS, the Agreement designates the Executive Committee of the Board of Directors and the President of the California Association for Local Economic Development as the initial Board of Directors of the Authority; and WHEREAS, the Authority has been formed for the purpose, among others, to assist for profit and nonprofit corporations and other entities to obtain financing for projects and purposes serving the public interest; and WHEREAS, the Agreement permits any other local agency in the State of California to join the Authority as an associate member (an “Associate Member”); and WHEREAS, the City desires to become an Associate Member of the Authority; WHEREAS, City Council of the City has adopted a resolution approving the Associate Membership Agreement and the execution and delivery thereof; WHEREAS, the Board of Directors of the Authority has determined that the City should become an Associate Member of the Authority; NOW, THEREFORE, in consideration of the above premises and of the mutual promises herein contained, the Authority and the City do hereby agree as follows: ---PAGE BREAK--- 4833-7301-9141.1 2 Section 1. Associate Member Status. The City is hereby made an Associate Member of the Authority for all purposes of the Agreement and the Bylaws of the Authority, the provisions of which are hereby incorporated herein by reference. From and after the date of execution and delivery of this Associate Membership Agreement by the City and the Authority, the City shall be and remain an Associate Member of the Authority. Section 2. Restrictions and Rights of Associate Members. The City shall not have the right, as an Associate Member of the Authority, to vote on any action taken by the Board of Directors or by the Voting Members of the Authority. In addition, no officer, employee or representative of the City shall have any right to become an officer or director of the Authority by virtue of the City being an Associate Member of the Authority. Section 3. Effect of Prior Authority Actions. The City hereby agrees to be subject to and bound by all actions previously taken by the Members and the Board of Directors of the Authority to the same extent as the Members of the Authority are subject to and bound by such actions. Section 4. No Obligations of Associate Members. The debts, liabilities and obligations of the Authority shall not be the debts, liabilities and obligations of the City. Section 5. Execution of the Agreement. Execution of this Associate Membership Agreement and the Agreement shall satisfy the requirements of the Agreement and Article XII of the Bylaws of the Authority for participation by the City in all programs and other undertakings of the Authority. IN WITNESS WHEREOF, the parties hereto have caused this Associate Membership Agreement to be executed and attested by their proper officers thereunto duly authorized, on the day and year first set forth above. CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY By: Gurbax Sahota, Chair Board of Directors Attest: Michelle Stephens, Asst. Secretary CITY OF EL CERRITO, CALIFORNIA By: Scott Hanin City Manager ---PAGE BREAK--- 4833-7301-9141.1 3 Attest: Cheryl Morse City Clerk