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BACKGROUND The state legislature passed urgency measure AB 811 in July 2008, which modified Division 7, Chapter 29 of the California Streets and Highways Code to authorize contract assessment districts in charter and general law cities. The passage of AB 811 authorized county, regional, and statewide agencies to develop large -scale sustainable energy financing programs. A county, regional, or statewide program would theoretically spread overhead and financing costs over a much larger market area than a municipal program, making the program more feasible and encouraging more retrofit work. Also, administrative duties would be concentrated in an outside agency, thus minimizing the burden on individual cities. CSCDA is a joint powers authority sponsored by the League of California Cities and the California State Association of Counties. The member agencies of CSCDA include approximately 337 cities including the City of Pleasanton, and all 58 counties throughout California. CSCDA is currently developing a statewide sustainable energy financing pilot program called CaliforniaFIRST under the framework of AB 811. California Communities has already conducted an open solicitation and selected Renewable Funding as the program operator. Under the CaliforniaFIRST program, CSCDA would establish an AB 811 assessment district in Alameda County for participating communities. Pleasanton property owners could borrow money from the program to install energy efficiency improvements such as lighting efficiency retrofits, heating and air conditioning system efficiency improvements, solar photovoltaic electric systems and possibly weatherization and insulation improvements. If a property owner chooses to participate, the improvements to their property will be financed by the issuance of bonds by CSCDA and CSCDA will levy "contractual assessments" on the owner's property for several years in order to repay the portion of the bonds issued to finance the improvements on that property. CSCDA is still working out the final details of the program, but expects to launch the CaliforniaFIRST pilot program in June 2010. The "contractual assessment" proceedings will be undertaken by CSCDA under the authority granted under Chapter 29 of Part 3 of Division 7 of the Streets Highways Code, as amended in 2008 by Assembly Bill 811 and as further amended in 2009 by Assembly Bill 474, to allow the financing of renewable energy, energy efficiency and water efficiency improvements on private property. Pursuant to Streets and Highways Code Section 5898.12.(a), assessments may only be levied to finance these types of environmentally sound improvements 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." Property owners show their consent to the assessments, which become liens against their property, by executing a contract with CSCDA that allows bonds to be sold to finance the improvements. DISCUSSION The City of Pleasanton has a wealth of experience with assessment type financings since the City utilized 1911 and 1915 Act assessment district financings in the 80's and Page 2 of 4