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HomeMy WebLinkAboutRES NO 104-17RESOLUTION NO. 1 0 4 - 17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAKERSFIELD TERMINATING THE E3 PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM WITHIN THE CITY OF BAKERSFIELD. WHEREAS, since 2009, the City of Bakersfield has had a relationship with California Municipal Finance Authority (CMFA) to issue bonds to finance projects to provide economic development within the City of Bakersfield; and WHEREAS, on September 16, 2015, the Bakersfield City Council adopted Resolution No. 120 -15 allowing CMFA to offer its E3 PACE program within the City's jurisdiction; and WHEREAS, under existing law, PACE loans can only be offered in the City's jurisdiction if the Bakersfield City Council first authorizes the offering; and WHEREAS, the Bakersfield Association of Realtors and others have submitted a significant body of evidence that has displayed negative consequences in Bakersfield as a result of PACE loans including instances where residents did not know a bill was going on their taxes, extremely out -of- market pricing for improvements, disruptions to real estate transactions, out -of- market interest costs, and other adverse impacts; and WHEREAS, the repayment of PACE loans is placed as an assessment on the borrower's property tax bill with priority lien status above even preexisting mortgage obligations; and WHEREAS, the Kern County Board of Supervisors, Bakersfield Chamber of Commerce and the Kern County Taxpayers Association have taken formal positions against PACE programs; and WHEREAS, it is not in the public interest to continue to allow PACE loans to be placed on tax bills for collection. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bakersfield as follows: The above recitals are true and correct. 2. The E3 PACE program in the City of Bakersfield is hereby terminated effective immediately and may no longer be offered as a financing option within the City's jurisdiction. 3. Resolution No. 120 -15 is hereby rescinded. 4. The rescission of Resolution No. 120 -15 is not intended to effect City's relationship with CMFA for other non -PACE programs. oF0�fF9 - Page 1 of 2 Pages - m v ORIGINAL 5. City staff is directed to take all necessary steps to facilitate termination of the E3 PACE program. 1 HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on JUL 19 2017 , by the following vote: ✓ ✓ ✓ AYE 5 COUNCILMEMBER: RIVERA, GONZALES. WEIR, SMHH, FREEMAN, SULLIVAN, EARLIER NOES: COUNCILMEMBER: Nr ABSTAIN: COUNCILMEMBER: SENL COUNCILMEMBER: APPROVED JUL 19 7017 By KA EN GOH Mayor APPROVED AS TO FORM: VIRGINIA GENNARO City Attorney By — a44,0 ANDREW HEG D Deputy City Attorney AHall sncoumaiv ,1oev- 1EvVacPJ FACE E— CHRIST�OPHE dGdGERRY ACTING CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield of Page 2 or 2 Pages - c, ORIGINAL