CITY COUNCIL STAFF REPORT
MEETING DATE: February 1, 2017
PREPARED BY: Anthony Eulo, Program Administrator/Community Services
APPROVED BY: City Manager
Title
RESOLUTION AUTHORIZING ADDITIONAL PACE ADMINISTRATORS
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution authorizing additional administrators to serve Morgan Hill customers for property improvements.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Enhancing public safety
Protecting the environment
REPORT NARRATIVE:
The purpose of this agenda item is to present the Council with an opportunity to expand the number of administrators eligible to finance property improvements in Morgan Hill.
Property Assessed Clean Energy, commonly referred to as PACE, is a financing mechanism in which a property owner may enter into voluntary contractual assessments to finance the installation of renewable energy, energy efficiency, water efficiency, and seismic strengthening improvements as well as electric vehicle charging infrastructure. Once the improvements are made, the property owners who wish to participate in PACE agree to repay the money through the voluntary contractual assessment collected with property taxes. An advantage of this mechanism is that the obligation to pay the assessment is connected to the property, not the property owner, and can remain with the property after a transfer of ownership.
There are two PACE programs currently serving Morgan Hill, California First and HERO. Since the City must authorize a PACE administrator to operate in the community, City staff and the City Council have heard from other PACE providers that they would also like to serve the community. Like any service provided to a customer, having more choices in the eligible providers has the potential to improve customer service and reduce costs by enhancing competition.
With this in mind, staff recommends adopting the attached resolution authorizing all of the PACE administrators associated with the California Statewide Communities Development Authority to provide services in Morgan Hill.
COMMUNITY ENGAGEMENT: Inform
If the resolution is adopted, the City’s website will be updated to reflect the availability of project financing from the additional administrators. Most of the communication about these administrators is likely to come from contractors making financing available to their customers.
ALTERNATIVE ACTIONS:
The Council could decline to adopt the resolution pending additional analyses or could direct staff to suspend any efforts to expand the number of PACE administrators serving Morgan Hill.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
The City Council adopted a resolution authorizing California First to offer financing in Morgan Hill on December 16, 2009 and a resolution authorizing HERO to serve the community on February 4, 2015.
FISCAL AND RESOURCE IMPACT:
There are no City fiscal impacts associated with this proposed action as neither the initial funding nor the repayment assessments are administered by the City. The staffing resources to consider energy financing opportunities for the community are included in the work program of the Community Services Department.
CEQA (California Environmental Quality Act):
Not a Project
The recommended action does not constitute a “project” under the California Environmental Quality Act, because the resolution does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b)(4).
LINKS/ATTACHMENTS:
Resolution