City Council
MEETING DATE: 6/14/2017
TITLE:
Title
Transition of CV Upgrade PACE Program to Ygrene’s Statewide Program
End
FROM:
Pat Milos, Community Development Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve a joint powers agreement addendum with Golden State Finance Authority; and approve a resolution for SB 555; and approve a resolution for AB 811.
Body
BACKGROUND:
The CV Upgrade PACE program was introduced to the Coachella Valley in November 2013 after Ygrene was selected in a competitive bid process. After their ramp-up began, they grew remarkably fast and have continued to grow at an impressive pace. They have completed over 2,000 projects amounting to over $46 million in the Coachella and Palo Verde Valleys. Following on their success here, Ygrene launched their statewide Ygrene Works program in late 2015, teaming up with the Golden State Finance Authority (GSFA). According to GSFA’s September 2016 Annual Report Ygrene Works has more than 11,000 completed contracts for more than $306 million in energy efficiency, renewable energy and water saving improvements. There are 8.8 million residential housing units served under the statewide program. Golden State Finance Authority (GSFA) is a California joint powers authority that was organized in 1993. According to their website, GSFA has helped more than 65,800 individuals and families purchase a home. GSFA has gifted over $128 million in down payment assistance grants and helped over 16,500 homeowners to make energy efficiency upgrades to their properties.
At the December 5, 2016 CVAG meeting, the Executive Committee approved transition of the CV Upgrade PACE program to Ygrene’s statewide program, known as Ygrene Works. Transition to Ygrene’s statewide program requires an amendment to CVAG’s existing agreement with Ygrene to allow for early termination. The transition also requires a new agreement with Ygrene for CVAG to join their statewide program. The new agreement is in line with agreements signed between CVAG and other PACE vendors. CVAG Staff worked with CVAG legal counsel and Ygrene on the necessary documents which are attached for your consideration. Each of these agreements provide for ongoing CVAG oversight of the Ygrene PACE program and protect each city from any liability from GSFA’s other programs.
DISCUSSION:
On April 24 2017, CVAG’s Executive Committee approved staff’s recommendation to transition Ygrene’s Coachella Valley program, CV Upgrade, to their state-wide program under the Golden State Finance Authority (GSFA). In order for this transition to take place, CVAG has executed a new agreement with Ygrene and each city will need to adopt two resolutions and a JPA addendum to opt into the GSFA state-wide program. One resolution is for their AB 811 PACE program, the other is for their SB 555 PACE program. These documents have been vetted by CVAG and their legal counsel.
Though CVAG will no longer sign off on Ygrene PACE applications as they do now, they will continue to provide oversight and coordination to ensure that consumer protection policies and other program requirements are being followed.
CVAG staff will continue to be the point of contact for all things PACE and act as mediator, should any issues arise between property owners and contractors or PACE providers in the Coachella and Palo Verde Valleys. The standardized agreement with PACE vendors, including Ygrene, will allow for CVAG to provide oversight on behalf of our member agencies to: 1) minimize issues that may arise from the operation of multiple programs simultaneously in the Coachella Valley; 2) assist with marketing and outreach; 3) coordinate with CVAG member agencies; and 4) assist in resolving any property owner or contractor complaints. The agreement also provides for a participation fee associated with CVAG’s role in working with these providers to implement a regional PACE program. If needed in the future, the CVAG Executive Committee will retain the option to discontinue participation of a PACE provider in the Coachella Valley if they are not following the adopted Consumer Protection Policies and best practices.
FISCAL IMPACT:
There is no direct financial impact to the City with this action. CVAG staff will continue to provide oversite and coordination of this program.
ATTACHMENTS:
1. JPA Addendum (ygrene)
2. Resolution for SB 555
3. Resolution for AB 811