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Ayes: Councilmembers Cook- Kallio, McGovern, Thorne, Sullivan, Mayor Hosterman Noes: None Absent: None 13. Public Hearing: Adopt resolution authorizing the City of Pleasanton to participate in the CaliforniaFirst program offered by the California Statewide Communities Development Authority Daniel Smith, Director of Operation Services presented the staff report, stating that staff is asking the Council to adopt a resolution to join the CaliforniaFirst program and develop a local financing district. Steps 1 and 2 of this process were approved with the Consent Calendar and will cover the costs associated with forming the district, making this cost free for the City and tax neutral for its residents. The CaliforniaFirst program provides residents with financing for efficiency improvements that are then paid back on their property taxes over a 20 -year period. Property owners automatically qualify provided they have paid property taxes for the three preceding years; no credit check is required. The voluntary program provides the City an opportunity to reduce the 35% of greenhouse gas emissions that come from residences and buildings. Mayor Hosterman opened the item to public comment and, seeing there was none, closed the public comment period. Councilmember Sullivan requested a full presentation for the sake of the public. Councilmember McGovern requested that staff use the City's newsletter to highlight the program and inform the public on funding amounts, interest rates, and repayment options. Mr. Smith confirmed and said that is one among several education campaigns planned. Mr. Smith stated that 35% of the City's carbon emissions come from residential and commercial buildings. A typical energy efficiency retrofit and solar system installation on a residence costs $15,000 to $30,000, an upfront cost most homeowners cannot afford. CaliforniaFirst is a property assessed clean energy (PACE) program that can be used for renewable energy, energy efficiency, and water efficiency projects. In addition to assisting homeowners finance efficiency projects, the program is aimed at providing jobs locally and decreasing California's construction industry unemployment rate of 22.5 The pilot program anticipates a finance rate of approximately 7 A California Energy Commission grant was used to buy that rate down an additional 1% for the first $25 million in projects and also to pay for the City's costs to develop the overall program. Councilmember McGovern inquired about funding limits per household. Mr. Smith said it is dependent upon the project, but could be as much as $30,000. Mr. Smith stated that proceeds from the PACE bond go to the property owner up front and are then paid back on the property tax bill for a period of up to 20 years. He noted that the cost of the land does transfer with the property if sold. Councilmember McGovern asked how the $25 million is distributed. Mr. Smith said the first round of financing is distributed throughout the 14 counties participating in the pilot program. After that, funding would be based on demand. City Council Minutes Page 14 of 15 February 16, 2010