RES-2015-200RESOLUTION NO. 201 5-200
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AUTHORIZING THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY TO CONDUCT
ANY LEVY CONTRACTUAL ASSESSMENTS WITHIN THE CITY
OF ANAHEIM IN ACCORDANCE WITH THE CALIFORNIA
STREET AND HIGHWAYS CODE; AND APPROVING A
PARTICIPATION AGREEMENT FOR THE CALIFORNIAFIRST
PROGRAM AND AUTHORIZNG THE CITY MANAGER TO
EXECUTE THAT AGREEMENT AND TAKE SUCH ACTIONS AS
NECESSARY TO IMPLEMENT AND ADMINISTER THE
AGREEMENT.
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 Anaheim (the
"City"); and
WHEREAS, California Communities has established the CaliforniaFIRST
program (the "CaliforniaFIRST Program") to allow the financing of certain renewable energy,
energy and water efficiency improvements, and seismic strengthening improvements (the
"Improvements") authorized by Chapter 29 of Division 7 of the Streets & Highways Code
("Chapter 29"), through the levy of contractual assessments and the issuance of improvement
bonds (the "Bonds") under the Improvement Bond Act of 1915 (Streets and Highways Code
Sections 8500 and following) (the "1915 Act") upon the security of the unpaid contractual
assessments; and
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
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;
WHEREAS, to protect the City in connection with any liabilities associated with
the CaliforniaFIRST Program, Renewable Funding, LLC ("Renewable Funding"), the third party
administer of the program, and California Communities has agreed to defend and indemnify the
City; and
WHEREAS, based upon such authorization as provided in the
Participation Agreement, a copy of which is attached hereto as Exhibit A, 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 CaliforniaFIRST Program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Anaheim as follows:
Section 1. This 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.
Sec?ion 2. 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
(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.
Section 3. 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 (the "Program Report"), and California Communities will undertake
assessment proceedings and the financing of Improvements as set forth in the Program Report,
Section 4. 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.
Section 5. The City Council hereby approves the Participation Agreement
between the City, California Communities, and Renewable Funding in the form attached hereto.
The City Council hereby authorizes the City Manager to execute the Participation Agreement
and related documents, and to take such actions as are necessary to implement and administer
the Participation Agreement.
Section 6. City shall not have any liabilities or obligations or incur any costs or
expenses for the CaliforniaFIRST Program, including, but not limited to, the repayment of any
bonds issued for the CaliforniaFIRST Program. The City may terminate its consent to the
Authority conducting contractual assessments within the City within thirty (30) days prior written
notice from the City Manager.
Section 7. The City Council hereby consents to the California Communities
serving as lead agency under the California Environmental Quality Act for any environmental
review that may be required in connection with the Program.
Section 8. This Resolution shall take effect immediately upon its adoption.
The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to
the Secretary of California Communities.
THE FOREGOING RESOLUTION is approved and adopted by the City Council
of the City of Anaheim this 16th day of ,lune 2015, by the
following vote:
Mayor Tait and Council Members Kring, Murray, Brandman,
AYES: and Vanderbilt
NOES: None
ABSENT: None
ABSTAIN: .None
CITY OF NAHEIM
' Z 7
MAYOR OF THE CITY OF ANAHEIM
ATTE
CITY CLERK OF THE CITY OP -ANAHEIM
109975
EXHIBIT A
PARTICIPATION AGREEMENT
PARTICIPATION AGREEMENT
This PARTICIPATION AGREEMENT ("Agreement"), made and entered into as of
2015, by and among the CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT .AUTHORITY, a joint powers agency organized and existing under the laws
of the State of California ("CALIFORNIA COMMUNITIES"), and Renewable Funding, LLC, a
California limited liability company ("RENEWABLE FUNDING"), third party administrator of
the CaliforniaFIRST Program, and the City of Anaheim, a municipal corporation organized and
existing under the laws of the State of California (the "PARTICIPATING MEMBER");
WITNESSETH:
(a) CALIFORNIA COMMUNITIES is a joint powers agency organized and existing
pursuant to the Joint Powers Act, comprising Articles 1, 2, 3 and 4 of Chapter 5 of
Division 7 of Title 1 (commencing with Section 6500) of the Government Code
of the State of California; and
(b) CALIFORNIA COMMUNITIES has adopted the CaliforniaFIRST Program (the
"Program"), for the financing of certain renewable energy and energy and water
efficiency improvements ("Improvements) authorized by Chapter 29 of the Streets
& Highways Code ("Chapter 29") within the Participating Member's jurisdiction;
and
(c) CALIFORNIA COMMUNITIES selected RENEWABLE FUNDING to the
third party administer the Program; and
(d) The Participating Member has authorized CALIFORNIA COMMUNITIES to
form an assessment district (the "District") for Program financing of
Improvements on certain properties owned by property owners who voluntarily
agree to participate in the Program ("Program Participant"); and
(e) CALIFORNIA COMMUNITIES intends to issue bonds, notes or other forms of
indebtedness (the "Bonds") to finance Improvements within the District; and
(f) The .Participating Member desires to authorize CALIFORNIA COMMUNITIES
to (i) record the assessment against the participating property owner's parcels, (ii)
administer the District in accordance with Chapter 29 and the Improvement Act of
1915 (commencing with Section 8500 et seq.) and (iii) prepare program
guidelines for the operations of the Program; and
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, THE PARTIES
HERETO AGREE AS FOLLOWS:
Section 1. Recitals. The Recitals contained herein are true and correct and are hereby
incorporated herein by reference.
Section 2. Appointment of CALIFORNIA COMMUNITIES. PARTICIPATING
MEMBER is not and will not be deemed to be an agent of CALIFORNIA COMMUNITIES as a
result of this Agreement. PARTICIPATING MEMBER consents to CALIFORNIA
COMMUNITIES's assumption of rights, responsibilities, obligations and liabilities related to the
Agreement within its jurisdiction upon satisfaction of the conditions imposed pursuant to this
Agreement and the resolution authorizing this Agreement, to take each and every step required
for or suitable for financing the Improvements, including the levying, collecting and enforcement
of the contractual assessments.
Section 3. Indemnification. CALIFORNIA COMMUNITIES and RENEWABLE
FUNDING agree to defend, indemnify, and hold harmless the Participating Member, its officers,
agents, employees and attorneys from and against any and all liabilities, claims, or demands
arising or alleged to arise as a result of CALIFORNIA COMMUNITIES or RENEWABLE
FUNDING'S performance or failure to perform under this Agreement or the Program, except
that arising from the sole negligence or willful misconduct of Participating Member.
Section 4. PARTICIPATING MEMBER has no liability. Except as expressly set forth in
this the Agreement or Resolution [INSERT NUMBER], PARTICIPATING MEMBER shall not
have any liabilities or obligations or incur any costs or expenses for the Program, including, but
not limited to, the repayment of any bonds issued for the Program. PARTICIPATING MEMBER
will not have any responsibilities or obligations with respect to the Program, including, but not
limited to, the conduct of any assessment proceedings, the levy of assessments, any required
remedial action in rhe case of delinquencies, the issuance, sale or administration of the bonds or
other indebtedness issued in connection with the Program.
Section 5. Information to be Provided. Within thirty (30) days of each request from
PARTICIPATING MEMBER, CALIFORNIA COMMUNITIES and RENEWABLE FUNDING
agrees to provide PARTICIPATING MEMBER with a list of property owners within the City of
Anaheim participating in the Program as well as their address, detailed description of
Improvement(s) installed, and date(s) of Improvement(s) completion.
Section 6. Confidentiality.
(a) "Confidential Information" means, with respect to a Party hereto, all information
or material which either (1) is marked or identified as "Confidential," "Restricted," or
"Proprietary Information" or other similar marking or identification, or (2) the other Party knew,
as recipient, or under the circumstances, should have known, was considered confidential or
proprietary by the Disclosing Party (as defined below). Confidential Information shall consist
of all information, whether in written, oral, electronic, or other form, furnished in connection
with this Agreement by one Party or its Representatives ("Representative" is defined as any
elected and appointed officials, affiliate, director, officer, employee, agent, advisor or consultant
of a Party or any of its subsidiaries or affiliates) to the other Party or to its Representatives, and
specifically includes but is not limited to (1) PARTICIPATING MEMBER's individually
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identifiable customer information, (2) PARTICIPATING MEMBER's customer data and
financial data, and (3) CALIFORNIA COMMUNITIES property owner information disclosing
to PATICIPATING MEMBER pursuant to Section 5.
(b) CALIFORNIA COMMUNITIES, RENEWABLE FUNDING and
PARTICIPATING MEMBER shall each hold the other's Confidential Information in
confidence. No Party shall make the other's Confidential Information available in any form to
any third party or use the other's Confidential Information for any purpose other than as specified
in this Agreement. The Party providing Confidential Information ("Disclosing Party") to the
other Party ("Receiving Party") shall remain the sole owner of such information. Except as
provided elsewhere within this Agreement, nothing contained in this Agreement shall be
construed as granting or conferring any right or license in any Confidential Information or in any
patents, copyrights, software or other technology, either expressly or by implication to the other
Party, or to its Representatives or to others. The term Confidential Information shall not include
any of the following: (1) information already in possession of, or already known to, the
Receiving Party as of the Effective Date without an obligation of confidentiality; (2) information
in the public domain at the time of the disclosure, or which, after such disclosure, enters into the
public domain through no breach of this Agreement by the Receiving Party or its
Representative(s); (3) information lawfully furnished or disclosed to the Receiving Party by a
non-party to this Agreement without any obligation of confidentiality and through no breach of
this Agreement by the Receiving Party or its Representative(s); (4) information independently
developed by the Receiving Party without use of any Confidential Information of the Disclosing
Party; or (5) information authorized in writing by the Disclosing Party to be released from the
confidentiality obligations herein.
(c) By virtue of this Agreement, each Party hereto may disclose to the other Party
information that is Confidential Information. This Agreement does not diminish, revoke or
supersede any existing confidentiality, non -disclosure or similar agreement between the Parties
that does not pertain to the subject matter of this Agreement. However, any Confidential
Information, whether or not previously disclosed, that pertains to the subject matter of this
Agreement shall be governed by the terms of this Section 6 which shall supersede any such
previous agreement with respect to such Confidential Information and any Confidential
Information relating to the subject matter of this Agreement that was exchanged under such
previous agreement shall be treated as though it was exchanged under this Agreement as of the
date of such exchange.
(d) The Receiving Party will treat all Confidential Information of the Disclosing
Party, no matter written, electronic, or oral, as confidential and proprietary, and the Receiving
Party shall only use such information in furtherance of this Agreement. As such, the Receiving
Party shall hold in confidence the Confidential Information of the Disclosing Party, and ensure
that such Confidential Information is not disclosed to any other person or entity, except as
expressly permitted by this Agreement or as authorized by the Disclosing Party. Receiving Party
shall not disclose Confidential Information of the Disclosing Party received under this
Agreement to any person other than its Representatives who require knowledge of such
Confidential Information in furtherance of this Agreement. The Receiving Party shall inform its
Representatives of the confidential nature of the Confidential Information of the Disclosing Party
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and advise such Representatives of the limitations on the use and disclosure and prohibition on
making copies or summaries of such Confidential Information. The Receiving Party shall be
responsible for any breach of this Agreement by its Representatives. Neither Party shall use the
Confidential Information of the other Party for any commercial purpose.
(e) If the Receiving Party becomes legally compelled (by oral questions,
interrogatories, request for information or documents, subpoena, civil investigative demand, or
similar process) to disclose any Confidential Information of the Disclosing Party, the Receiving
Party will provide the Disclosing Party with written notice of such an occurrence (if so
permitted) as soon as possible. Thereafter, at its sole costs and expense, the Disclosing Party may
seek a protective order or other appropriate remedy, or waive compliance with the provisions of
this Agreement. So long as it is consistent with applicable law, the Receiving Party will not
oppose action by, and the Receiving Party will cooperate with, the Disclosing Party, at the
Disclosing Party's sole cost and expense, to obtain an appropriate protective order or other
reliable assurance that confidential treatment will be accorded the Confidential Information. If
the Disclosing Party fails to obtain such protective order or other remedy, or if the Disclosing
Party waives compliance with the requirements of the preceding sentence, the Receiving Party
will disclose only that Confidential Information that it is legally required to disclose, and will
exercise commercially reasonable efforts, at Disclosing Party's expense, to obtain reliable
assurance that confidential treatment will be accorded the Confidential Information so disclosed.
(f) In the event the Receiving Party discloses, disseminates or releases any
Confidential Information, except as expressly permitted by this Agreement, such disclosure,
dissemination or release will be deemed a material breach of this Agreement and the Disclosing
Party may demand prompt return of all Confidential Information previously provided to the
Receiving Party. , As soon as the Receiving Party becomes aware that it has made an
unauthorized disclosure of Confidential Information, the Receiving Party shall take any and all
necessary actions to recover the improperly disclosed Confidential Information and immediately
notify Disclosing Party regarding the nature of the unauthorized disclosure and the corrective
measures being taken. Each Party agrees that any breach of their confidentiality obligations
could cause irreparable harm to the other Party, the amount of which would be extremely
difficult to estimate. Accordingly, it is understood and agreed that monetary damages would not
be a sufficient remedy for any material breach of this Agreement and that specific performance
and injunctive relief in addition to monetary damages shall be appropriate remedies for any
breach or any threat of such breach. The provisions of this Paragraph are in addition to any other
legal rights or remedies the Receiving Party may have.
(g) Notwithstanding the termination of this Agreement, this Confidentiality
Section shall survive the expiration or earlier termination of this Agreement.
Section 7. Integration. This Agreement contains the entire agreement of
PARTICIPATING MEMBER, RENEWABLE FUNDING and CALIFORNIA COMMUNITIES
with respect to the matters covered hereby, and no agreement, statement or promise made by
PARTICIPATING MEMBER, RENEWABLE FUNDING or CALIFORNIA COMMUNITIES
which is not contained herein, shall be valid or binding. No prior agreement, understanding or
representation pertaining to any such matter shall be effective for any purpose.
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Section 8. This Agreement may be terminated by either CALIFORNIA
COMMUNITIES or PARTICIPATING MEMBER with thirty (30) days written notice. In the
event of such termination, the CALIFORNIA COMMUNITIES shall not issue any additional
contractual assessments. CALIFORNIA COMMUNITIES shall immediately inform
PARTICIPATING MEMBER in writing of the termination of RENEWABLE FUNDING as the
third party administrator of the Program, including any anticipated or pending termination. At its
option, PARTICIPATING MEMBER may suspend its active participation in the Program,
including, but not limited to providing Confidential Information, until CALIFORNIA
COMMUNITIES selects a new third party administrator for the Program.
Section 9. Effective Date. This Agreement shall be effective on the date on which this
Agreement is executed by the PARTICIPATING MEMBER ("Effective Date").
IN WITNESS WHEREOF, the parties hereto have executed this Participation Agreement
by their officers duly authorized as of the day and year first written above.
CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY
By:
[INSERT]
CITY OF ANAHEIM, a municipal corporation
City Manager
RENEWABLE FUNDING, a California limited
liability company
By:
[INSERT]
ATTEST
By:
Linda N. Andal, City Clerk
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APPROVED AS TO FORM:
MICHAEL R.W. HOUSTON, CITY ATTORNEY
By:
Daniel A. Ballin, Deputy City Attorney