RECOMMENDATION(S): (CONT'D)
AUTHORIZE the Conservation and Development Director, or designee, to execute the Indemnification and Insurance Agreement with PACE Funding Group, LLC to provide indemnification and insurance protection to the County related to PACE Funding program.
FISCAL IMPACT:
There is no fiscal impact to the County associated with this item.
BACKGROUND:
California law allows cities, counties, and other authorized public agencies to establish voluntary financing districts to facilitate energy and water efficiency improvements to existing residential and commercial properties. Such financing is commonly referred to as Property Assessed Clean Energy (PACE) financing. Once established, property owners within the boundaries of such a district can choose to enter into a voluntary agreement and borrow funds from the district to finance eligible improvements on their property. The assessment is then repaid in installments on the property tax bill.
The California Statewide Communities Development Authority (CSCDA) is a joint powers authority with the legal authority to establish (PACE) financing districts, and is the public agency sponsor of the PACE Funding program. Contra Costa County is a member agency of CSCDA. CSCDA contracts with PACE Funding Group, LLC, to administer day-to-day operations of the PACE Funding program.
On June 16, 2015, the Board of Supervisors approved the recommendation of the Internal Operations Committee to direct the Department of Conservation and Development (DCD) to establish an application process and accept applications from PACE providers to operate within the unincorporated area of the County. The Board also approved the form of an Operating Agreement the County would require PACE providers to enter into with the County as a condition of operations. The purpose of the Operating Agreement is to protect the County and the general public from the potential costs and risks of PACE programs. The Operating Agreement requires PACE providers to participate in the State PACE Loss Reserve Program, disclose financial costs and risks to participating property owners, and indemnify the County from legal claims arising from the operation of PACE programs.
CSCDA and PACE Funding Group, LLC, have submitted an application to operate the PACE Funding program in the unincorporated area of the County. Staff has reviewed this application and recommends the Board authorize the PACE Funding program to operate within the County's jurisdiction.
The Board of Supervisors has previously authorized three other PACE programs to operate within the County's jurisdiction. If the Board approves the recommended actions, PACE Funding would become the fourth PACE program authorized to operate within the unincorporated area of the County.
CONSEQUENCE OF NEGATIVE ACTION:
If the Board of Supervisors does not approve the recommended actions, the PACE Funding program will not be able to provide property owners in the unincorporated area of the County with financing for energy and water efficiency improvements to their property.