HomeMy WebLinkAbout05 - Inclusion of Properties within the City’s Jurisdiction in the CMFA, Property Assessed Clean Energy Program5-1
NEWPORT BEACH
City Council Staff Report
COUNCIL STAFF REPORT
CITY OF
March 8, 2016
Agenda Item No. 5
ABSTRACT:
The City of Newport Beach is currently a member of the California Municipal Finance
Authority (CMFA), a Joint Powers Authority. CMFA along with its current program
administrator, Energy Efficient Equity (E3), are offering a Property Assessed Clean
Energy (PACE) financing program for residential and commercial property owners in its
member territories. The program offers low-cost financing for property owners who wish
to improve their properties to generate renewable energy or reduce their energy and
water use. The benefit of the PACE programs includes reducing peak energy demand,
increasing property values, saving on utility bills, and stimulating building activity.
RECOMMENDATION:
a) Find this action is not subject to the California Environmental Quality Act (CEQA)
pursuant to Section 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines; and
b) Adopt Resolution No. 2016-38,A Resolution of the City Council of the City of
Newport Beach, California, Authorizing the City’s Consent to the Inclusion of
Properties within the City’s Jurisdiction in the CMFA PACE Program; Authorizing the
California Municipal Finance Authority to Accept Applications from Property Owners,
Conduct Contractual Assessment Proceedings and Levy Contractual Assessments
within the City.
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:Kimberly Brandt, Community Development Director - 949-644-3232,
kbrandt@newportbeachca.gov
PREPARED BY:Seimone Jurjis, Assistant Community Development Director
Chief Building Official
PHONE:949-644-3282
TITLE:
Adopt Resolution for Inclusion of Properties within the City’s
Jurisdiction in the California Municipal Finance Authority, Property
Assessed Clean Energy Program
Adopt Resolution for Inclusion of Properties within the City’s Jurisdiction in the California
Municipal Finance Authority, PACE Program
March 8, 2016
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FUNDING REQUIREMENTS:
There is no fiscal impact related to this item. The City will have no administrative
responsibilities, marketing obligations, or financial obligations associated with this
program.
DISCUSSION:
The PACE program is an innovative way to finance energy efficiency, water efficiency,
and renewable energy upgrades for residential and commercial buildings. Property
owners who participate in the program repay the loans through a voluntary contractual
assessment collected together with their property taxes. One of the most notable
characteristics of PACE programs is the loan is attached to the property rather than
belonging to an individual. Therefore, when the owner sells the property, the loan may
be paid off during the sale or stay with the property and be paid off by the new owner,
who also benefits from the upgrades that were completed.
PACE financing enables individuals and businesses to defer the upfront costs of energy
efficiency, water efficiency, and renewable energy improvements. PACE loans are paid
over a long period of time while energy costs are simultaneously lower, which typically
provides the property owner with net savings. PACE overcomes challenges that have
hindered adoption of energy efficiency and renewable energy measures for many
property owners. Please see Attachment B for a more detailed program description.
Staff has determined that participation in this program is a cost-effective means of
offering property owners the opportunity to make energy and water efficiency retrofits to
their property and create new local jobs. Property owners will repay the financing as a
charge on their property tax bill over a period of years.
Following are additional PACE program benefits:
Supports the development of renewable energy sources, installation of energy
and water efficiency improvements, reduction of greenhouse gases, and
protection of the environment.
Only property owners who voluntarily choose to participate in the program will be
subject to assessments.
Program financing provides for an affordable method for many property owners
to reduce their energy costs and improve their properties. The length of the
financing is based on the expected useful life of the improvements. Depending
Adopt Resolution for Inclusion of Properties within the City’s Jurisdiction in the California
Municipal Finance Authority, PACE Program
March 8, 2016
Page 3
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on the lender and the improvements, the term can range from five years to 39
years.
Since program financing can be readily transferred upon sale, even owners who
are planning to sell have the ability to make responsible and beneficial
improvements to their property.
While early payment premiums may apply in some circumstances, property
owners can choose to pay off the program financing at any time. However, there
may be applicable prepayment penalties, and the program administrators review
these terms with prospective participants.
The City incurs no financial obligations as a result of program participation.
If the City Council passes the attached resolution, the City will incur no costs, and
no staff time is required for administration or funding of the PACE programs.
The City is not obligated to repay the bonds issued by the CMFA or to pay the
assessments levied on the participating properties. The City will not incur any cost or
involvement, and there are no administrative responsibilities, marketing obligations, or
financial exposures to the City. CMFA and its program administrators handle all
assessment administration, bond issuance, and bond administration functions.
The proposed resolution authorizes the CMFA to accept applications from City property
owners for municipal financing of authorized improvements. It also authorizes the CMFA
to conduct assessment proceedings and levy assessments against the property of
participating owners within the City.
The City Council has previously approved participation in four other PACE programs:
HERO, Figtree, Ygrene and CaliforniaFirst. Adding the CMFA PACE program, to be
administered by E3, provides more options for property owners to choose from. It will
not add to or require any additional responsibilities for the City.
Adopt Resolution for Inclusion of Properties within the City’s Jurisdiction in the California
Municipal Finance Authority, PACE Program
March 8, 2016
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ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Draft Resolution
Attachment B – PACE Program Report and Handbook
OHSUSA:759366422.3
Attachment A
Resolution - California Municipal Finance Authority
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OHSUSA:759366422.3
RESOLUTION NO. 2016 - ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORIA, AUTHORIZING THE CITY’S
CONSENT TO THE INCLUSION OF PROPERTIES WITHIN THE
CITY’S JURISDICTION IN THE CMFA PACE PROGRAM;
AUTHORIZING THE CALIFORNIA MUNICIPAL FINANCE
AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY
OWNERS, CONDUCT CONTRACTUAL ASSESSMENT
PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS
WITHIN THE CITY
WHEREAS, the California Municipal Finance 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 Newport Beach (“City);
WHEREAS, the Authority has established its CMFA PACE Program (“Program”)
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 Program and the issuance of bonds from time to time;
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 Program and to allow the
Authority to conduct assessment proceedings under Chapter 29 within its territory and
to issue bonds to finance or refinance Improvements;
WHEREAS, the territory within which assessments may be levied for the
Program shall include all of the territory within the City’s official boundaries;
WHEREAS, the Authority will conduct all assessment proceedings under
Chapter 29 for the Program and issue any bonds in connection with the
Program; and
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OHSUSA:759366422.3
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 in such assessment payments; or the issuance, sale, administration
repayment or guarantee of any bonds issued in connection with the Program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Newport Beach as follows:
Section 1: The City Council finds and declares that the foregoing recitals are
true and correct.
Section 2: The City Council finds and declares that properties in the territory of
the City will benefit from the availability of the Program 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 3: In connection with the Program, 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:
(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,
administration, repayment or guarantee of any bonds issued in connection with
the Program.
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
Program.
Section 5: The City Council finds the adoption of this resolution is not subject
to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2)
(the activity will not result in a direct or reasonably foreseeable indirect physical change
in the environment) and 15060(c)(3) (the activity is not a project as defined in Section
15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly
or indirectly. Alternatively, the City Council finds the adoption of this resolution is not a
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OHSUSA:759366422.3
project under CEQA Regulation Section 15061(b)(3) because it has no potential for
causing a significant effect on the environment.
Section 6: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall
not affect the validity or constitutionality of the remaining portions of this resolution. The
City Council hereby declares that it would have passed this resolution, and each
section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any
one or more sections, subsections, sentences, clauses or phrases be declared invalid
or unconstitutional.
Section 7: This resolution shall take effect immediately upon its adoption by
the City Council and the City Clerk shall certify the vote adopting this resolution. The
City Clerk is hereby authorized and directed to transmit a certified copy of this resolution
to the Financial Advisor of the Authority at: California Municipal Finance Authority, 2111
Palomar Airport Road, Suite 320, Carlsbad, California 92011, Attn: Travis Cooper.
ADOPTED this 8th day of March, 2016.
By: ______________________
Diane B. Dixon
Mayor
ATTEST
By: ____________________________
Leilani I. Brown
City Clerk
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Attachment B
PACE Program Report and Handbook
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CMFA PACE Program Report and Handbook 1 January 16, 2015
PACE Program Report and Handbook
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CMFA PACE Program Report and Handbook 2 January 16, 2015
Contents
1 Introduction ............................................................................................................ 3
2 Future Program Changes ......................................................................................... 4
3 Program Administrators .......................................................................................... 4
4 Contacts ................................................................................................................. 5
5 Program Eligibility Requirements ........................................................................... 5
6 Financing Terms ................................................................................................... 10
7 Quality Control ..................................................................................................... 13
8 Required Documents ............................................................................................. 13
9 General Terms & Conditions ................................................................................. 15
10 Definitions ......................................................................................................... 20
EXHIBIT A - CMFA Boundary Map .......................................................................... 22
EXHIBIT B - Product Eligibility Guidelines ............................................................... 23
EXHIBIT C - Form of Assessment Contract ............................................................... 33
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CMFA PACE Program Report and Handbook 3 January 16, 2015
1 Introduction
The California Municipal Finance Authority’s (“CMFA”) Property Assessed
Clean Energy (“PACE”) program (the “Program”) is enabled under Assembly
Bill 811 (Enabling Legislation), which was approved by the California State
Legislature in July 2008.
PACE Programs are an innovative way to finance or refinance the installation of
distributed generation renewable energy sources, energy efficiency
improvements, water efficiency improvements, electric vehicle charging
infrastructure, seismic strengthening improvements and such other work to
existing commercial and residential buildings. Interested residential and
commercial property owners (“Property Owners”) enter into a voluntary
assessment to receive up to 100% project financing, which assessment is repaid
together with, and collected as part of, their property taxes for up to 39 years.
The Program has been established for CMFA members to assist Property Owners
in financing eligible improvements. The Program facilitates financing for
Property Owners in participating areas by issuing bonds secured by assessments
levied on the subject properties (“Assessments”). The Program has engaged
multiple program administrators (“Program Administrators”) responsible for
administration of the Program. Such Program Administrators will purchase the
bonds issued by the CMFA to provide capital for the Program to finance the
eligible improvements. Program Administrators work with local contractors that
specialize in the installation of distributed generation renewable energy sources,
energy efficiency improvements, water efficiency improvements, electric vehicle
charging infrastructure, seismic strengthening improvements and such other
work; while ensuring fair pricing, controlling quality for consumers, utilizing
existing incentive Programs, and complying with local regulations.
This CMFA Program Report and Handbook (this “Program Handbook”) outlines
the basic design and financing structure of the Program, and constitutes the
report required pursuant to Section 5898.22 of Chapter 29 of Part 3 of Division 7
of the California Streets & Highways Code (“Chapter 29”). Separate Program
Administrator Procedures Handbooks will provide additional details and
information for the Program and each of the Program Administrators.
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CMFA PACE Program Report and Handbook 4 January 16, 2015
2 Maximum Financing Amount for Program
The maximum aggregate dollar amount of the principal component of voluntary
contractual assessments to be levied under the Program is $50 billion, subject to
increase if there is sufficient demand.
Applications from Property Owners for financing under the Program will be
considered on a first come, first served basis. If the authorized maximum
aggregate dollar amount is exceeded, then the last property that caused such
authorized maximum aggregate dollar amount to be exceeded will be ineligible
for financing under the Program. Once $48 billion of qualified improvements
have been financed, applications will receive a time stamp in order to evidence
priority.
3 Future Program Changes
The CMFA reserves the right to change the Program and its terms at any time;
however, any such change will not affect a Property Owner’s existing obligation
to pay the contractual Assessment agreed to in an executed Assessment Contract.
4 Program Administrators
Program financing is offered to the public through a Public / Private Partnership
with one or more Program Administrators. Program Administrators are
responsible for originating Program financings while ensuring fair pricing,
controlling quality, utilizing existing incentive programs, providing capital, and
complying with local regulations. Program Administrators operate independently
under the guidelines described in this Program Handbook. Processes and
financing rates and terms offered by each Program Administrator may vary
subject to the Program Administrator Procedures Handbook. References to
Program Administrators in this Program Handbook apply to all Program
Administrators engaged by the Program. A list of active Program Administrators
is available online at www.cmfa-ca.com/paceprogram/programadministrators.
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CMFA PACE Program Report and Handbook 5 January 16, 2015
5 Contacts
5.1 Program
California Municipal Finance Authority (“CMFA”)
Phone (760) 930-1333
Fax (760) 683-3390
Email pace@cmfa-ca.com
Address 2111 Palomar Airport Rd, Suite 320
Carlsbad, CA 92011
Online www.cmfa-ca.com/paceprogram
5.2 Program Administrators
PACE Funding Group
Phone (650) 799-4540
Email contact@PACEFunding.com
Address 100 Cooper Court
Los Gatos, CA 95032
Online www.pacefunding.com
Energy Efficient Equity
Phone (310) 307-4940
Fax (310) 307-4701
Email contact@energyefficientequity.com
Address 10880 Wilshire Blvd Suite 1101
Los Angeles, CA 90024
Online www.energyefficientequity.com
6 Program Eligibility Requirements
Financing by the Program is subject to the following Eligibility Requirements.
The Eligibility requirements described herein are the minimum requirements to
qualify for financing offered by the Program. Program Administrators may at
their own discretion require additional criteria to qualify for financing.
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CMFA PACE Program Report and Handbook 6 January 16, 2015
6.1 Properties
To be eligible, the subject property must pay property taxes and meet the
requirements as set forth below:
6.1.1 Geography
The subject property must be located within a county or city that (a) is a member
of the CMFA (a boundary map showing the boundaries of the current members
and, accordingly, the territory within which the Program is offered is attached as
Exhibit A) and (b) is participating in the Program by adopting an authorizing
resolution in compliance with applicable law (a current list of cities and counties
participating in the CMFA PACE Program can be found at www.cmfa-
ca.com/pace).
6.1.2 Property Tax Status
The subject property’s taxes must be current for the prior twelve (12) months.
6.1.3 Equity
The sum of all debt secured by the subject property and all involuntary liens as
described herein must not exceed the subject property’s market value.
6.1.4 Maximum Assessment
The amount financed by the Program may not exceed twenty percent (20%) of
the subject property’s market value. The total annual property tax and
assessments on a subject property may not exceed five percent (5%) of the
subject property’s market value, as determined at the time of approval for the
Property Owner’s contractual Assessment.
6.1.5 Bankruptcy
The subject property must not be an asset in a current bankruptcy proceeding.
6.1.6 Liens
The subject property must not have any of the following involuntary Liens with a
balance greater than one thousand Dollars ($1,000.00):
Federal Income Tax
State Income Tax
Judgment
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CMFA PACE Program Report and Handbook 7 January 16, 2015
Prohibited liens do not include community facilities district assessments or
other financing district liens placed on all properties in that particular
financing district.
Any non-mortgage-related debt may be subject to review.
Payment Arrangement exception:
If any of the above-mentioned liens exist, the Property Owner may provide
documentation of a payment arrangement with a term of less than 12 months to
satisfy this requirement, provided however that the sum of the lien balance and
mortgage balance conforms to the Equity requirements described herein.
6.1.7 New Construction
New construction is not eligible unless certificate of occupancy has been
obtained.
6.1.8 Mobile & Manufactured Homes
Mobile homes and manufactured homes are eligible if the homes are permanently
attached to the real property, and if the mobile/manufactured home owner(s) also
own the underlying land and pay real property taxes (not DMV fees).
6.1.9 HOA
Properties within Homeowners Associations (“HOA”) are eligible, subject to
HOA restrictions. It is the Property Owner(s) sole responsibility to ensure that
the installed products meet all HOA requirements. The Program and Program
Administrators are not responsible for any claims made by an HOA, If a HOA
requires a Property Owner to remove and or modify any improvements financed
by the Program the Property Owner is still responsible for making Payments as
agreed in the Assessment Contract.
6.1.10 Commercial Properties
Commercial Properties, defined as (i) a property of which the primary use is not
residential or (ii) a property used for multi-family housing with five or more
units, are eligible for Program financing provided that (a) the Property Owner
must provide written notice of the proposed assessment to any lenders with liens
secured by the subject property, and (b) the Property Owner must have an energy
audit, water audit or engineering report conducted on the subject property
recommending the improvements the property owner is seeking to finance.
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CMFA PACE Program Report and Handbook 8 January 16, 2015
6.2 Property Owners
To be eligible, the Property Owner(s) must meet the following criteria:
6.2.1 Owner of Record
Applicant(s) must be the owner(s) of record according to the property’s Title
records recorded with the Participating County.
6.2.2 Mortgage Status
All debt secured by the subject property must be current and not more than sixty
days past due for the twelve (12) months prior to application date (or since
purchase if owned for less than 12 months).
6.2.3 Bankruptcy
Property Owner(s) must not be involved in current bankruptcy proceedings or
have filed for bankruptcy during the past three (3) years.
6.2.4 Approval
All Owners of record must sign the Required Program Documents as described in
the Required Documents sections of this Program Handbook.
6.2.5 Legal Entities
If the property is held in a Trust or owned by a legal entity such as a Corporation
or LLC, the property is eligible for Program participation provided that the
applicant(s) produce documentation from the legal entity granting the
applicant(s) the authority to enter into such a transaction.
6.3 Projects
The Program offers financing for various distributed generation renewable
energy sources, energy efficiency improvements, water efficiency improvements,
electric vehicle charging infrastructure, seismic strengthening improvements and
such other work that will be permanently fixed to property (the “Eligible
Products”). The initial Eligible Products are identified by the initial Product
Eligibility Guidelines attached as Exhibit B, and the CMFA may update the
Product Eligibility Guidelines and, accordingly, the list of Eligible Products
authorized for financing from time to time. The financing of the Eligible
Products may be structured through a power purchase agreement or lease, the
payments under which may be prepaid in whole or in part, subject to the
requirements of Chapter 29. The financing can be used to cover the cost of a
project to include but not limited to: products; materials; professional
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CMFA PACE Program Report and Handbook 9 January 16, 2015
installation; analysis; design; drafting; engineering; permitting, inspections and
fees. To be eligible the project must meet the following criteria:
6.3.1 Project Approval
Prior to installation, the Program Administrator must approve each project. To
obtain project approval the contractor must define the project’s scope, products
to be installed, permits required, costs, obtain Property Owner consent then
submit the proposed project for approval through the Program Administrator’s
website. Upon receipt of the project request the Program Administrator will
determine the projects eligibility for financing. The projects eligibility for
financing may be determined based on A) the use of approved products, or B) a
projects capacity to: generate renewable energy; make the property energy
efficient; conserve water; charge electric vehicles or construct a seismic
improvement. If the Program Administrator determines that the project is
eligible for financing, a notice to proceed will be sent to contractor and Property
Owner(s).
6.3.2 Approved Products
Products must be approved by a Program Administrator, and meet minimum
energy production, energy efficiency, water conservation, water efficiency and/or
other requirements. Product guidelines and eligibility criteria is attached as
Exhibit B and available on the Program website, www.cmfa-
ca.com/paceprogram/productguidelines.
6.3.3 No Used Products
All products and materials must be new. Used, refurbished or remanufactured
products are not eligible for financing.
6.3.4 Permanently Affixed
Products must be permanently affixed to the subject property.
6.3.5 Installation
A licensed contractor that is approved by the Program Administrator must
complete all installations. No self-installations are permitted. Installation costs
may include, but are not limited to, energy/water audit costs, appraisals, labor,
design, drafting, engineering, permit fees, and inspection charges.
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CMFA PACE Program Report and Handbook 10 January 16, 2015
6.3.6 Installation Warranty
Contractors must provide a reasonable warranty as determined by a Program
Administrator for all work performed.
6.4 Contractors
Only contractors that have been approved by a Program Administrator may
complete projects financed by the Program. New contractors may apply to
participate in the Program by contacting a Program Administrator and requesting
a new contractor application. Upon receiving a completed new contractor
application, the Program Administrator will review and determine if the
contractor meets the necessary criteria for Program eligibility.
A contractor must meet the following minimum criteria to be approved and
register with a Program Administrator:
6.4.1 Good Standing
Contractor must be in good standing with the California State License Board
(“CSLB”).
6.4.2 Qualified to Install
Contractors may only perform work for which they have the appropriate CSLB
license.
6.4.3 Insured & Bonded
Contractors must have general liability and workers compensation insurance and
are required to carry a bond that adequately protects the Property Owner for the
project costs.
6.5 Third Party Transactions
The Program may be used in conjunction with third party transactions including
but not limited to Leases and Power Purchase Agreements.
6.6 PACE Assessment Refinancing
7 The Program may be used to refinance existing PACE assessments. Financing
Terms, Costs and Fees
This section contains the general Fees and Terms of the financing offered by the
Program. The costs of issuing bonds and administering the Program will be
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CMFA PACE Program Report and Handbook 11 January 16, 2015
financed through participant application fees, proceeds of the financing, and an
administrative component of the contractual Assessments. The Program
Administrator may apply additional Terms, Rates and Fees to each Assessment
as specified in the financing documents and provided to the Property Owner
upon application approval. A form of the Assessment Contract, which specifies
the terms and conditions that would be agreed to by a Property Owner and the
CMFA, is attached as Exhibit C.
7.1 Minimum Assessment Amount
The minimum Assessment amount is five thousand dollars ($5,000).
7.2 Maximum Assessment Amount
The maximum residential Assessment amount is two hundred thousand dollars
($200,000). Program Administrators may at their own discretion approve
amounts over two hundred thousand dollars ($200,000) on a case-by-case basis.
Assessments over two hundred thousand dollars ($200,000) require Lender
Notification and an Energy Audit. The maximum residential and nonresidential
Assessment amount is also subject to the limitation set forth in Section 6.1.4 of
this Program Handbook.
7.3 Maximum Interest Rate
Interest rates may be up to the maximum rate allowed by law in the subject
property’s jurisdiction.
7.4 Financing of Costs and Fees
In addition to financing the eligible improvements, the CMFA will finance the
following, which will be included in the Assessments:
7.4.1 Recording Fee
The recording fee is a one-time fee used to record the Recording Documents at
the county recorder’s office.
7.4.2 Initial Administrative Fee
The initial administrative fee is a one-time fee used for expenses associated with
administration of the Program and issuance of the bonds, which includes closing
fees paid to the CMFA, other entities responsible for program administration and
management, fees of issuer and bond counsel to the CMFA, trustee fees, as well
as other related costs of issuance of any bond.
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CMFA PACE Program Report and Handbook 12 January 16, 2015
7.4.3 Annual Ongoing Administrative Fee
The annual ongoing administrative fee is used for ongoing administrative
expenses incurred by the Program in connection with collecting Assessments and
the administration and management of the Program.
7.4.4 Reserve Deposit
Program Administrators may require property owners to finance a deposit to a
reserve fund or account, which would be used to pay debt service on a related
series of bonds in the event of contractual Assessment installment delinquencies.
The amount of such deposit, if any, will be provided in the Program
Administrator Procedures Handbook and/or the financing documents.
7.4.5 Interest Before First Payment (Capitalized Interest)
An amount equal to the interest between the Bond Issuance Date and the First
Payment Date will be added to the principal balance of the Assessment.
7.4.6 Third Party Expenses
Costs, Fees and other expenses associated with third party financings including
but not limited to Leases and Power Purchase Agreements.
7.4.7 Refinancing Expenses
Costs and expenses associated with refinancing activities, including but not
limited to principal repayment, processing fees, accrued interest and prepayment
penalties.
7.4.8 Additional Fees
Additional fees may be applied to each Assessment as specified in the financing
documents and provided to the Property Owner upon application approval.
7.5 Terms
The Program offers financing Terms up to thirty-nine (39) years. The financing
term may not exceed the “useful life” of the installed Eligible Product. The
Program Administrator determines the useful life and maximum financing term
offered for each assessment.
7.6 Prepayment
Assessments can be prepaid in full at any time and may or may not be subject to
a prepayment penalty. Any prepayment penalties will be identified in the
Assessment Contract.
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CMFA PACE Program Report and Handbook 13 January 16, 2015
7.7 Repayment
Property Owners will repay the Principal, Interest and applicable Fees over the
financing term as agreed to and specified in the Assessment Contract. Payment
will be billed and paid as a line item on the Property Tax Bill. Failure to repay as
agreed will result in additional interest and penalties and may result in
foreclosure and sale of the Property.
8 Quality Control
Program Administrators may at their own discretion conduct the following
quality control procedures to ensure that any projects financed by the Program
meet the Program and Program Administrators eligibility requirements:
8.1 Inspection
Program Administrator reserves the right to schedule an on-site validation visit
to confirm that the approved Eligible Product was fully and permanently
installed either before or after loan proceeds have been dispersed.
8.2 Building Permits
If Building Permits are required for the Project, cause the Property Owner to
furnish a copy of the approved permit. Property Owners are responsible for
obtaining any required permits and should speak to their contractor to determine
if the Project requires a permit prior to submitting a financing request. If
permits are required, finalized permit documentation must be submitted with the
Completion Certificate.
9 Required Documents
The following documents are required for financing by the program. A set of
sample documents can be found on the Program website at www.cmfa-ca
.com/paceprogram/sampledocuments. A description of each document is as
follows:
9.1 Financing Documents
The following individual documents are included in the Financing Documents:
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CMFA PACE Program Report and Handbook 14 January 16, 2015
9.1.1 Application
To be submitted at the beginning of the process, used by the Program
Administrator to determine eligibility and Approval Amount.
9.1.2 Assessment Contract
A contract between the Property Owner(s) and Program to provide financing for
approved Projects. The Assessment Contract specifies the terms and conditions
that would be agreed to by a Property Owner and the CMFA. A form of
Assessment Contract is attached as Exhibit C.
9.1.3 Project Definition
A document describing the scope, products and costs of each Project being
financed in the Assessment Contract.
9.1.4 Right to Cancel
A document that allows the Property Owner to cancel an Assessment prior to
start of construction, provided to the Property Owner(s) with the Assessment
Contract, submitted with the Assessment contract acknowledging receipt,
executed only if the Property Owner decides to cancel.
9.1.5 Completion Certificate
A Document signed by the Contractor and Property Owner upon acceptable
completion of each Project; submitted to the Program Administrator upon
completion of each Project.
The Completion Certificate must be submitted with the following documents:
A final invoice from all contractor(s)
A Bill of Sale
If required by the jurisdiction, a signed finalized permit from the
appropriate city or county building department for all permitted Eligible
Products
If no building permits are required for any of that contractor’s installed
Eligible Products, the participating contractor’s Business license for the
city or county
Conditional Lien Release
9.2 Recording Documents
The following documents are recorded with the participating County as public
record.
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CMFA PACE Program Report and Handbook 15 January 16, 2015
9.2.1 Notice of Assessment
A notice to be sent with the next annual Property Tax statement sent by County
revenue authorities to taxpayers detailing the amount of property tax they owe.
9.2.2 Payment of Contractual Assessment Required
A notice to be sent to the Auditor-Controller-Treasurer-Tax Collector describing
the assessment and Assessment Contract.
9.3 Additional Documents
The Program Administrator may at its own discretion require additional
documents for Program financing.
9.4 Public Agency Official
The CMFA will, from time to time, authorize certain representatives to execute
Assessment Contracts on its behalf. Each member of the Board of Directors of
the CMFA is authorized to execute Assessment Contracts.
Address: California Municipal Finance Authority
2111 Palomar Airport Road, Suite 320
Carlsbad, CA 92011
Phone: (760) 930-1333
Email: pace@cmfa-ca.com
10 General Terms & Conditions
Agree to All Program Terms
By execution of the Financing Documents, each executing Property Owner
certifies that they have read, understood and agreed to the terms of the Program
as outlined in this Program Handbook in addition to the terms of the Assessment
Contract. Property Owner also thereby certifies that the Property Owner(s), the
property, and the products meet all Program eligibility requirements.
Property Owner Representations
By submitting an application the Property Owner represents that He or She:
Is the legal Property Owner;
Has the authority to install the approved products on the property;
Has received a copy of this Program Handbook;
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CMFA PACE Program Report and Handbook 16 January 16, 2015
Is authorizing the Program Administrator to obtain Credit information;
Inspection
The Program and Program Administrators reserve the right to inspect any and all
products financed by the Program at any time during installation or Term of the
Assessment.
Rebates and Incentives
Federal, state, or local laws or rebate programs may change at any time. The
Program and Program Administrators are not liable for any loss of or change in a
rebate or tax credit. Property Owners should consult with their tax advisors
and/or accountants as to the applicability of any federal tax credits to their
personal tax situation.
Tax Matters
The Program and Program Administrators do not offer any tax advice or related
services. Property Owners should consult with a qualified tax advisor or
accountant on any tax matters including whether or not he or she recommends
deductions of any part of the Contractual Assessment on tax returns.
Program Administrator Policy and Procedures Handbook
In Addition to this Program Handbook, each Program Administrator will provide
a Program Administrator Procedures Handbook to provide additional details and
information about the Program and the Program Administrator, and to help
Property Owners Apply for and receive financing.
Fraudulent Activity
Any misrepresentations made to the Program or Program Administrator by a
Property Owner or Contractor at any time is likely to cause the Property Owner
and/or the Contractor to be terminated from the Program and may result in legal
action.
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CMFA PACE Program Report and Handbook 17 January 16, 2015
Renewable Energy Certificates
Renewable Energy Certificates (“RECs”) and all related green attributes
associated with every Project that is financed by the Program are assigned to the
Program Administrator for the length of the financing term.
Marketing Guidelines
Use of any trademarks, logos or other branding collateral owned by the CMFA or
its Program Administrators requires prior written approval.
Collection & Use of Data
By submitting a Program application, Property Owner agrees that the Program
Administrator may disclose his or her personal information to Program staff, and
that the Program Administrator and Program staff may disclose that information
to third parties when such disclosure is essential to the conduct of the Program
Administrators’ or its member agencies’ business or to provide services to
Property Owner, including, but not limited to, where such disclosure is necessary
to (i) comply with the law, legal process or regulators, (ii) enable the Program
Administrator or the Program staff or third parties to provide services to
Property Owner and to otherwise perform their duties, and (iii) obtain and
provide credit reporting information.
In order to receive funding for this Program and to enable communication
regarding the State of California’s rebate program, Property Owner consents to
the release of his or her name and contact information to the California Solar
Initiative or the utility solar rebate program operated by the local Utility.
Property Owner further agrees to the release of his or her name and contact
information and the subject property’s utility usage data for twelve (12) months
before installation of the improvements and throughout the financing term, from
the local utility company to the Program Administrator, Program staff, its
grantors, and its designated contractors for the purpose of conducting surveys
and evaluating the Program and its impact. In addition, Property Owner
understands that the CMFA is a public agency which, in certain circumstances,
may have an obligation to release information under the California Public
Records Act or pursuant to court order.
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CMFA PACE Program Report and Handbook 18 January 16, 2015
No Endorsement
The Program and Program Administrator offer no endorsement of the
Contractors, Products, or product claims of economic value, warranty, energy
savings, safety or reliability of the products.
Prepayments
Early pre-payment of the assessment may result in pre-payment penalties as set
forth in the Assessment Contract.
Defaults on Assessment Payments
After written notification, defaults in payment of assessments will result in the
initiation of foreclosure proceedings.
Releases and Indemnification
By submitting a Program application, Property Owner thereby acknowledges that
the CMFA has established the Program solely for the purpose of assisting the
Property Owners in the CMFA participating jurisdictions with the financing of
approved products and that the CMFA, Program Administrators, its member
agencies and Program staff, including their officers, directors, employees and
agents, have no responsibility of any kind for, and shall have no liability of any
kind arising out of, the installation, operation, financing, refinancing or
maintenance of the products. Property Owner agrees that Property Owner and his
or her successors in interest to the fee simple title in the subject property shall be
solely responsible for the installation, operation, financing, refinancing or
maintenance of the products. Participation in the Program does not in any way
obligate the CMFA, Program Administrators, its member agencies and Program
staff, including their officers, directors, employees and agents, to guarantee or
ensure the performance of any products. Property Owner thereby acknowledges
that the subject property will be responsible for payment of the contractual
assessment regardless of whether the products are properly installed or operate as
expected.
Property Owner also agrees to release, defend, indemnify, and hold harmless the
CMFA, Program Administrators, its member agencies and Program staff,
including their officers, directors, employees and agents, from and against any
claims, actions, demands, costs, damages or lawsuits, including the payment of
attorneys’ fees and cost of court, arising out of or in any way connected with his
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CMFA PACE Program Report and Handbook 19 January 16, 2015
or her participation in this Program, including, without limitation, the
installation, maintenance or repair of the products or compliance with any
applicable federal, state or local laws.
Property Owner Is Responsible for Products, Permits and Inspections
The Property Owner is solely responsible for all products installed on his or her
property, including the selection of any contractor(s), energy auditor(s), or
equipment, including manufacturers. Any performance related issues are the
responsibility of the Property Owner and the Property Owner’s contractor(s).
Neither the CMFA, Program staff, including their officers, directors, employees
and agents nor the Program Administrator is responsible for the performance of
the products. The CMFA and the Program Administrators disclaim any express
or implied warranty of merchantability or fitness for a particular purpose in
connection with the Property Owner’s purchase or installation of any Product
under the Program.
Completion of all city and county permitting and inspections are the
responsibility of the Property Owner. The Program Administrator will require a
copy of the final approved permit to submit a Completion Certificate.
Dispute Resolution
Signed Assessment Contract:
The parties who have signed an Assessment Contract for the Program shall
attempt in good faith to promptly resolve any dispute arising out of or relating to
any Assessment Contract under the Program by negotiations between the
Program Administrator or his or her designated representative and the Property
Owner. Either party must give the other party or parties written notice (sent by
certified mail) of any dispute. Within thirty (30) calendar days after delivery of
the notice, the Program Administrator, and the Property Owner shall meet at a
mutually acceptable time and place, and shall attempt to resolve the dispute. If
the matter has not been resolved within thirty (30) calendar days of the first
meeting, any party may pursue other remedies, including mediation. All
negotiations and any mediation conducted pursuant to this clause are confidential
and shall be treated as compromise and settlement negotiations, to which Section
1152.5 of the California Evidence Code shall apply, and Section 1152.5 is
incorporated herein by reference. Each party is required to continue to perform
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CMFA PACE Program Report and Handbook 20 January 16, 2015
its obligations under the Assessment Contract pending final resolution of any
dispute arising out of or relating to the Assessment Contract. If a meeting and
mediation is unsuccessful, the matter will be submitted to arbitration. The
parties will mutually select an arbitrator. The arbitration will be decided using
so-called “baseball arbitration” or “best last offer” where the arbitrator may only
choose one of the final two offers.
No Signed Assessment Contract:
Property Owners who wish to dispute decision(s) made by the Program or
Program Administrator, but who have not signed a formal Assessment Contract,
shall use a similar process. Written notice must be sent by certified mail to the
Program Administrator at the Address indicated in the Contact section of this
Program Handbook. The notice must identify the issue(s) for resolution, the
circumstances that surround the issue(s), the section in the Handbook that the
issue(s) pertain(s) to, and a timeline of events. Within thirty (30) calendar days
after delivery of the notice, the Program Administrator with the Property Owner,
and shall attempt to resolve the dispute. The Program Administrator shall render
a written decision in 30 calendar days and send that decision to the Property
Owner. The decision of the Program Administrator is final.
11 Definitions
Application Date
The Date that a Program Administrator receives an Application for financing.
Closing Date
The Date that a fully executed Completion Certificate is submitted to the
Program Administrator.
Recording Date
The Date that that the recordation of the Recording Documents is confirmed by
the County.
Bond Issuance Date
The Date of issuance for the Bond secured by the Assessment.
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CMFA PACE Program Report and Handbook 21 January 16, 2015
First Payment Date
The date that the first payment is due for an Assessment.
Program Administrator
The Program Administrators are responsible for administration of the Program
and management of the process to ensure that Assessments are made according to
Program eligibility requirements. There are currently two Program
Administrators: Energy Efficient Equity and PACE Funding Group.
Property Owner
A Property Owner is the owner of record as determined by the official County
records. A property may be a person or entity. In the case of entity ownership,
Property Owner may also be used to describe a required signatory for the
Financing Documents.
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CMFA PACE Program Report and Handbook 22 January 16, 2015
EXHIBIT A
CMFA Boundary Map
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CMFA PACE Program Report and Handbook 23 January 16, 2015
EXHIBIT B
Initial Product Eligibility Guidelines
1 Renewable & Alternative Energy Products
1.1 Solar Photovoltaic
Product Type Eligibility Specifications
Solar Panel 1. Products must be in compliance with CA-SB1 guidelines.
2. Installation Contractor must have the correct CSLB
licensure to install solar systems.
3. System must be grid connected unless the property is not
currently connected to the grid.
4. Installed per manufacturer specifications.
Solar Inverter 1. Products must be in compliance with CA-SB1 guidelines.
2. Installation Contractor must have the correct CSLB
licensure to install solar systems.
3. System must be grid connected unless the property is not
currently connected to the grid.
4. Installed per manufacturer specifications.
1.2 Solar Thermal
Product Type Eligibility Specifications
Solar Water
Heating
1. System must have the OG-300 System Certification by the
Solar Rating and Certification Corporation (SRCC).
2. System Solar Fraction (SF) must be ≥ 0.5.
3. Installed per manufacturer specifications.
Solar Pool
Heating
1. Product must have the OG-100 Collector Certification by
the Solar Rating and Certification Corporation (SRCC).
2. Installed per manufacturer specs.
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CMFA PACE Program Report and Handbook 24 January 16, 2015
1.3 Alternative Energy
Product Type Eligibility Specifications
Small Wind
Turbine
1. Product must be certified by the Small Wind Certification
Council as meeting the requirements of the AWEA Small
Wind Turbine Performance and Safety Standard (9.1-2009).
2. Product must be grid connected unless the property is not
currently connected to the grid.
3. Installed per manufacturer specs.
Advanced
Energy
Storage
System
1. System must meet the eligibility requirements outlined in
the current California Self-Generation Incentive Program
(SGIP) Handbook.
2. System must be tied to a program eligible Solar PV system.
3. System must be grid connected unless the property is not
currently connected to the grid.
4. Installed per manufacturer specs.
Electric
Vehicle
Charging
Station
1. Product must be certified as meeting the UL Subject 2594
Standard Testing for Charging Stations.
2. Product must be a Level 2 charger with SAE J1772
standard charging plug.
3. Installed per manufacturer specs.
Stationary
Fuel Cell
Power System
1. System must be certified as meeting the ANSI/CSA
America FC1 standard.
2. Installed per manufacturer specs.
1.4 Cogeneration
Product Type Eligibility Specifications
Micro turbine 1. P.U. Code 216.6
2. Installed per manufacturer specs.
Internal
Combustion
Engine
1. P.U. Code 216.6
2. Installed per manufacturer specs.
Fuel Cell 1. P.U. Code 216.6
2. Installed per manufacturer specs.
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CMFA PACE Program Report and Handbook 25 January 16, 2015
2 Energy Efficiency Products
2.1 High-Efficiency Heating Ventilation and Air Conditioning (HVAC)
Product Type Eligibility Specifications
Air-Source
Heat Pump
1. Product must be AHRI Certified.
2. Product must be ENERGY STAR Certified:
a. Split: SEER ≥ 14.5 and EER ≥ 12 and HSPF ≥ 8.2.
b. Package: SEER ≥ 14 and EER ≥ 11 and HSPF ≥ 8.0.
3. Installed per manufacturer specs.
Central
Air
Conditioner
1. Product must be AHRI Certified
2. Product must be ENERGY STAR Certified:
a. Split: SEER ≥ 14.5 and EER ≥ 12.
b. Package: SEER ≥ 14 and ≥ EER 11.
3. Installed per manufacturer specs.
Furnace 1. Product must be AHRI Certified
2. Product must be ENERGY STAR Certified: AFUE ≥
90%.
3. Installed per manufacturer specs.
Evaporative
Cooler
1. Product must be listed in California Energy Commission
Appliance Efficiency Database.
2. Must be permanently installed through wall or on the
roof; window installed product is not eligible.
3. Installed per manufacturer specs.
Boiler 1. Product must be AHRI Certified.
2. Product must be ENERGY STAR Certified: AFUE ≥
85%.
3. Installed per manufacturer specs.
Geothermal
Heat Pump
1. 1. Product must be ENERGY STAR Certified:
a. Closed Loop Water-to-Air: ≥ 14.1 EER and ≥ 3.3
COP
b. Open Loop Water-to-Air: ≥ 16.2 EER and ≥ 3.6 COP
c. Closed Loop Water-to-Water: ≥ 15.1 EER and ≥ 3.0
COP
d. Open Loop Water-to-Water: ≥ 19.1 EER and ≥ 3.4
COP
e. DGX: ≥ 15.0 EER and ≥ 3.5 COP
2. Installed per manufacturer specs.
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CMFA PACE Program Report and Handbook 26 January 16, 2015
Hydronic
Radiant
Heating
1. System must be powered by a high- efficiency heating
source.
2. Installed per manufacturer specs.
Mini-Split Air
Conditioner
1. Product must be AHRI certified.
2. Efficiency: ≥ 15 SEER.
3. Installed per manufacturer specs.
Mini-Split
Heat Pump
1. Product must be AHRI certified.
2. Efficiency: ≥ 15 SEER and HSPF ≥ 8.2.
3. Installed per manufacturer specs.
Biomass /
Wood Stove
1. Product must be certified and listed on the EPA
Certified Wood Stoves list.
2. Installed per manufacturer specs.
Duct
Replacement
1. Duct system leakage:
a. Partial Replacement: ≤ 15% total system nominal
flow
b. Full Replacement: ≤ 6% total system nominal flow
2. Duct Insulation R-Value ≥ R-6.
3. Installed per Title 24, Part 6.
Heat/Energy
Recovery
Ventilator
1. Product must be certified by the Home Ventilation
Institute (HVI).
2. Installed per manufacturer specs.
Exhaust
Ventilation
Fixture
1. Product must be ENERGY STAR Certified.
2. Installed per manufacturer specs.
Whole House
Fan
1. Product must be listed in California Energy Commission
Appliance Efficiency Database.
2. Installed per manufacturer specs.
Attic
Ventilation
Fixture
1. Product must have thermostat control.
2. Installed per manufacturer specs.
Ceiling Fan 1. Product must be ENERGY STAR Certified.
2. Installed per manufacturer specs.
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CMFA PACE Program Report and Handbook 27 January 16, 2015
2.2 Windows Doors and Skylights
Product Type Eligibility Specifications
Window 1. Product must be Energy Star or NFRC Certified:
a. U-Factor ≤ 0.32 and SHGC ≤ 0.30.
2. Installed per manufacturer specs.
3. Product must meet Title 24 requirements.
Door 1. Product must be Energy Star or NFRC Certified:
a. Opaque: U-Factor ≤ 0.21 and SHGC = Any
b. ≤ 1/2-Lite: U ≤ 0.27 and SHGC ≤ 0.30
c. > 1/2-Lite: U ≤ 0.32 and SHGC ≤ 0.30
2. Installed per manufacturer specs.
Skylights and
Tubular Day
Lighting
Device
1. Product must be Energy Star or NFRC Certified:
U-Factor ≤ 0.55 and SHGC ≤ 0.30
2. Installed per manufacturer specs.
Applied
Window Film
1. Product must be NFRC Certified.
2. Installed per manufacturer specs.
Exterior
Window
Shading
Device
1. Product must be permanently secured to the property
with attachments or fasteners that are not intended for
removal.
2. Product must be installed to provide shading to at least
one window or door.
3. Other exterior structural products including, but not
limited to, sunroom enclosures, exterior decks,
balconies, roof overhangs, detached/free-standing
arbors, detached/free-standing pergolas, and/or carports
are NOT eligible.
4. Interior window shading products including, but not
limited to, blinds, shutters, shades, or curtains are NOT
eligible.
5. Installed per manufacturer specs.
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CMFA PACE Program Report and Handbook 28 January 16, 2015
2.3 Building Envelope
Product Type Eligibility Specifications
Cool Wall
Coating
1. Product must have solar reflectance ≥ 0.5 as tested by
recognized third-party laboratory to ASTM C1549-09
standard.
2. Installed per manufacturer specs.
Cool Roof -
Prescriptive
1. Product must be ENERGY STAR Qualified:
a. Low-Slope Roofs: ≥ 0.5 Aged (3 yrs.) Solar
Reflectance
b. Steep-Slope Roof: ≥ 0.15 Aged Solar Reflectance
2. Product must meet Title 24, Part 6.
3. Installed per manufacturer specs.
Cool Roof -
Performance
1. If ENERGY STAR Qualified roofing product is not
specified, one of the following cool roof performance
measures must also be implemented:
a. Install ≥ 1” Air-space between the top of the roof
deck to the bottom of the roofing product.
b. Insulate attic floor to R-value ≥ 38.
c. Seal & Insulate attic HVAC duct work to R-8 and
≤ 6% leakage.
d. Install an eligible radiant barrier.
e. Insulate roof deck to R-value ≥ 4.
f. Install roof construction with thermal mass over a
membrane with a weight of at least 25 lb/ft2.
2. Project must comply with CA Title 24 Part 6. Project
stakeholder is fully and solely responsible to meet any
such additional requirements.
Attic
Insulation
1. R-value ≥ 38.
2. Installed per manufacturer specs.
Wall
Insulation
1. R-value ≥ 13 to full framing cavity depth.
2. Installed per manufacturer specs.
Under-Floor
Insulation
1. R-value ≥ 19 to full joist depth.
2. Installed per manufacturer specs.
Radiant
Barrier
1. Emissivity ≤ 0.1 and Reflectivity ≥ 0.9.
2. Installed per manufacturer specs.
Air Sealing 1. Performed to BPI, ENERGY STAR or ASHRAE 62.2
guidelines.
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CMFA PACE Program Report and Handbook 29 January 16, 2015
2.4 High Efficiency Water Heating
Product Type Eligibility Specifications
Gas Storage
Water Heater
1. Product must be ENERGY STAR Certified.
2. EF ≥ 0.67.
3. Installed per manufacturer specs.
Electric Heat
Pump Storage
Water Heater
1. Product must be ENERGY STAR Certified.
2. EF ≥ 2.0.
3. Installed per manufacturer specs.
Gas Tankless
Water Heater
1. Product must be ENERGY STAR Certified.
2. EF ≥ 0.82.
3. Installed per manufacturer specs.
2.5 High Efficiency Pool Equipment
Product Type Eligibility Specifications
Pool Pump
and Motor
1. Product must be ENERGY STAR Certified:
a. Single Speed Pump: EF ≥ 3.8 for single speed
b. Multi/Variable Speed/Flow: EF ≥ 3.8 for most
efficient speed.
2. Installed per manufacturer specs.
Electric Heat
Pump Pool
Heater
1. Product must be listed in California Energy Commission
Appliance Efficiency Database.
2. COP ≥ 4.5.
3. Installed per manufacturer specs.
Gas Pool
Heater
1. Product must be listed in California Energy Commission
Appliance Efficiency Database.
2. Thermal Efficiency ≥ 83%.
3. Installed per manufacturer specs.
Automatic
Pool Cover
1. Product must be an automatic pool cover UL certified as
meeting ASTM F1346 Standard Performance
Specification.
2. Product must be permanently installed on an existing
swimming pool.
3. Installed per manufacturer specs.
4. Manual swimming pool covers are not eligible.
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CMFA PACE Program Report and Handbook 30 January 16, 2015
2.6 High Efficiency Lighting
Product Type Eligibility Specifications
Indoor
Lighting
Fixture
1. Product must be ENERGY STAR Certified and meet
Title 24, Part 6 requirements.
2. Product must be permanently installed.
3. Installed per manufacturer specs.
Outdoor
Lighting
Fixture
1. Product must be ENERGY STAR Certified and meet
Title 24, Part 6 requirements.
2. Product must be permanently installed.
3. Installed per manufacturer specs.
Lighting
Control
1. Product must be listed in the
California Energy Commission Appliance Efficiency
Database.
2. Eligible control types include:
a. Automatic Time-Switch
b. Daylight/Photo- Sensor
c. Dimmer
d. Occupant/Motion/Vacancy Sensor
3. Install per manufacturer specs.
2.7 Indoor Water Efficiency
Product Type Eligibility Specifications
High-
Efficiency
Toilet Fixture
1. Product must be listed in the CEC Appliance Efficiency
Database.
2. Toilet and urinals fixtures are eligible.
3. Flow rate ≤ 1.28 GPF.
4. Installed per manufacturer specs.
High-
Efficiency
Faucet Fitting
1. Flow rate ≤ 1.5 GPM.
2. Must be permanently installed.
3. Installed per manufacturer specs.
High-
Efficiency
Showerhead
1. Flow ≤ 2.0 GPM.
2. Installed per manufacturer specs.
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CMFA PACE Program Report and Handbook 31 January 16, 2015
Hot Water
Delivery
System
1. System meets the definition of one of the following
water delivery options:
a. Dedicated Recirculation Line
b. Whole House Manifold System
c. Demand-initiated Recirculating System
d. Core Plumbing System
2. Installed per manufacturer specs.
2.8 Outdoor Water Efficiency
Product Type Eligibility Specifications
High-
Efficiency
Sprinkler
Nozzle
1. Product must be on SoCal Water Smart Qualified
Sprinkler Nozzle product list.
2. Installed per manufacturer specs.
Weather-
Based
Irrigation
Controller
1. Product must be WaterSense Qualified.
2. Installed per manufacturer specs.
Drip Irrigation 1. Product installed be installed in turf, garden, planter, or
flower bed area.
2. Installed per manufacturer specs.
Rainwater
Catchment
System
1. Sized to hold ≥ 50 gallons at one time.
2. Must be permanently installed.
3. Installed per manufacturer specs.
Gray Water
System
1. System must meet California Plumbing Code, Chapter
16A.
2. Product must comply with local code and permitting
requirements.
3. Eligible system types include:
a. Single-Fixture
b. Multi-Fixture Simple (≤ 250 GPD)
c. Multi-Fixture Complex (> 250 GPD)
4. Installed per manufacturer specs.
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CMFA PACE Program Report and Handbook 32 January 16, 2015
Artificial Turf 1. Product must be water and air permeable.
2. Product must be non-toxic and lead free.
3. Product must be recyclable.
4. Product installation must carry ≥ 10 year warranty.
5. Installed per manufacturer specs.
3 Seismic Improvements
Product Type Eligibility Specifications
Seismic
Improvements
1. Retrofitting or Reconstruction Products to Abate falling
hazards
2. Structural Strengthening
3. Improvements resisting seismic force levels
4. Improvements providing safe entry and exit
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CMFA PACE Program Report and Handbook 33 January 16, 2015
EXHIBIT C
Form of Assessment Contract
5-42
March 18, 2016
California Municipal Finance Authority
Attn: Travis Cooper
2111 Palomar Airport Road, Suite 320
Carlsbad, CA 92011
Re: Resolution No. 2016-38
Dear Mr. Cooper:
100 Civic Center Drive
Newport Beach, California 92660
949 644-3005 1 949 644-3039 FAX
newportbeachca.gov/cityclerk
Enclosed please find your certified copy of Resolution No. 2016-38, A Resolution of the
City Council of the City of Newport Beach, California, Authorizing the City's Jurisdiction
in the CMFA Pace Program; Authorizing the California Municipal Finance Authority to
Accept Applications from Property Owners, Conduct Contractual Assessment
Proceedings and Levy Contractual Assessments within the City.
If you have any questions or need additional information, please contact Deputy Finance
Director Steve Montano at (949) 644-3240.
Sincerely,
q
r
i
Leilani I. Brown, MMC
City Clerk
Enclosure
cc: Steve Montano, Finance (via email only)
Dan Matusiewicz, Finance (via email only)
CERTIFIED A A TRUE D CORRECT COPY
CITY ERK O THE CITY OF r
RT BEACH
RESOLUTION NO. 2016-38DATE:1
i•. • .moi.: r. � � �':
r'. •'sir' .�.:.
WHEREAS, the California Municipal Finance 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 Newport Beach ("City);
WHEREAS, the Authority has established its CMFA PACE Program ("Program")
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 Program and the issuance of bonds from time to time;
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 Program and to allow the
Authority to conduct assessment proceedings under Chapter 29 within its territory and
to issue bonds to finance or refinance Improvements;
WHEREAS, the territory within which assessments may be levied for the
Program shall include all of the territory within the City's official boundaries;
WHEREAS, the Authority will conduct all assessment proceedings under
Chapter 29 for the Program and issue any bonds in connection with the Program; 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 in such assessment payments; or the issuance, sale, administration
repayment or guarantee of any bonds issued in connection with the Program.
Resolution No, 2016-38
Page 2 of 3
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Newport Beach as follows:
Section 1; The City Council finds and declares that the foregoing recitals are
true and correct.
Section 2: The City Council finds and declares that properties in the territory of
the City will benefit from the availability of the Program 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 3: In connection with the Program, 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:
(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,
administration, repayment or guarantee of any bonds issued in connection with
the Program.
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
Program.
Section 5: The City Council finds the adoption of this resolution is not subject
to the California Environmental Quality Act (`CEQA") pursuant to Sections 15060(c)(2)
(the activity will not result in a direct or reasonably foreseeable indirect physical change
in the environment) and 15060(c)(3) (the activity is not a project as defined in Section
15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly
or indirectly. Alternatively, the City Council finds the adoption of this resolution is not a
project under CEQA Regulation Section 15061(b)(3) because it has no potential for
causing a significant effect on the environment.
Resolution No. 2016-38
Page 3 of 3
Section 6: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall
not affect the validity or constitutionality of the remaining portions of this resolution. The
City Council hereby declares that it would have passed this resolution; and each
section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any
one or more sections, subsections, sentences, clauses or phrases be declared invalid
or unconstitutional.
Section 7: This resolution shall take effect immediately upon its adoption by
the City Council and the City Clerk shall certify the vote adopting this resolution. The
City Clerk is hereby authorized and directed to transmit a certified copy of this resolution
to the Financial Advisor of the Authority at: California Municipal Finance Authority, 2111
Palomar Airport Road, Suite 320, Carlsbad, California 92011, Attn: Travis Cooper.
ADOPTED this 8 day of March, 2016.
lane B. Dixon
Mayor
ATTEST:
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Leiiani 1. Brown
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH ;
1, Leilani 1. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing resolution, being Resolution
No. 2016-38 was duly and regularly introduced before and adopted by the City Council of said City at a
regular meeting of said Council, duly and regularly held on the 8ffi day of March, 2016, and that the same
was so passed and adopted by the following vote, to wit:
AYES: Council Member Peotter, Council Member Duffield, Council Member Selich,
Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 8th day of March, 2016.
Leilani I. Brown, MMC
City Clerk
Newport Beach, California
{Seal}