Resolution 2010-01
RESOLUTION NO. 2010-01
RESOLUTION AUmORIZING THE CITY OF GILROY TO JOIN THE
CALIFORNIAFIRST PROGRAM; AUTHORIZING THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS
FROM PROPERTY OWNERS, CONDUCT CONTRACTUAL ASSESSMENT
PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE
TERRITORY OF THE CITY OF GILROY; AND AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority ("California
Communities") is a joint exercise of powers authority the members of which include numerous
cities and counties in the State of California, including the City of Gilroy and
WHEREAS, California Communities has established the CaliforniaFIRST program (the
"CaliforniaFIRST Program") to allow the fmancing of certain renewable energy, energy
efficiency and water efficiency improvements (the "Improvements") through the levy of
contractual assessments pursuant to Chapter 29 of Division 7 of the Streets & Highways Code
("Chapter 29") and the issuance of improvement bonds (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 of Gilroy desires to allow the owners of property within its
jurisdiction ("Participating Property Owners") to participate in the CaliforniaFlRST Program and
to allow California Communities to conduct assessment proceedings under Chapter 29 and to
issue Bonds under the 1915 Act to fmance the Improvements; and
WHEREAS, California Communities will conduct assessment proceedings under
Chapter 29 and issue Bonds under the 1915 Act to finance Improvements;
WHEREAS, there has been presented to this meeting a proposed form of Resolution of
Intention to be adopted by California Communities in connection with such assessment
proceedings (the "ROI"), a copy of which is attached hereto as Exhibit A, and the territory within
which assessments may be levied for the CaliforniaFlRST Program shall include all of the
territory within the City's official boundaries (the "Proposed Boundaries"); and
WHEREAS, the City of Gilroy 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; and
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RESOLUTION NO. 2010-01
WHEREAS, pursuant to Government Code Section 6586.5, a notice of public hearing
has been published once at least five days prior to the date hereof in a newspaper of general
circulation in the City of Gilroy and a public hearing has been duly conducted by this City
Council concerning the significant public benefits of the CaliforniaFIRST Program and the
financing of the Improvements;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy as
follows:
Section 1. On the date hereof, the City Council held a public hearing and the City
Council hereby fmds and declares that the issuance of bonds by California Communities in
connection with the CaliforniaFIRST Program will provide significant public benefits, including
without limitation, savings in effective interest rate, bond preparation, bond underwriting and
bond issuance costs and reductions in effective user charges levied by water and electricity
providers within the boundaries of the City of Gilroy.
Section 2. In connection with the CaliforniaFIRST Program, the City of Gilroy
hereby consents to the conduct of special assessment proceedings by California Communities
pursuant to Chapter 29 on any property within the Proposed Boundaries and the issuance of
Bonds under the 1915 Act; provided, that
(1 ) Such proceedings are conducted pursuant to one or more Resolutions of
Intention in substantially the form of the ROI;
(2) The Participating Property Owners, who shall be the legal owners of such
property, execute a contract pursuant to Chapter 29 and comply with other applicable
provisions of California law in order to accomplish the valid levy of assessments; and
(3) The City will not be responsible for the conduct of any assessment
proceedings; the levy 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
CaliforniaFlRST Program; and
(4) 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 of Gilroy are hereby
authorized and directed to make applications for the CaliforniaFlRST program available to all
property owners who wish to fmance Improvements; provided, that California Communities
RESOLUTION NO. 2010-01
shall be responsible for providing such applications and related materials at its own expense. The
City Administrator or his designee shall be the lead program contact.
Section 5. The appropriate officials and staff of the City of Gilroy are hereby
authorized and directed to execute and deliver such closing certificates, requisitions, agreements
and related documents as are reasonably required by California Communities in accordance with
the Program Report to implement the CaliforniaFIRST Program for Participating Property
Owners. City of GilroyCity of Gilroy
Section 6. The appropriate officials and staff of the City of Gilroy are hereby
authorized and directed to pay California Communities a fee in an amount not to exceed $12,500
which California Communities will use to pay for the costs of implementing the
CaliforniaFIRST Program in the City of Gilroy, including the payment of legal costs incurred in
connection with judicial validation of the CalifomiaFIRST Program.
Section 7. The City Council hereby finds that adoption of this Resolution is not a
"project" under the California Environmental Quality Act, because the Resolution does not
involve any commitment to a specific project which may result in a potentially significant
physical impact on the environment, as contemplated by Title 14, California Code of
Regulations, Section 15378(b)(4)).
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.
AYES: COUNCILMEMBERS:
ARELLANO, BRACCO, DILLON,
GARTMAN, TUCKER, WOODWARD and
PINHEIRO
NOES: COUCILMEMBERS:
NONE
ABSENT: COUNCILMEMBERS:
NONE
APPROVED:
RESOLUTION NO. 2010-01
I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2010-01 is an original resolution, or true and correct copy of a city
resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council
held on the 11th day of January, 2010, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 12th day of January, 2010.
awna Freels, CMC
City Clerk of the City of Gilroy
(Seal)