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HomeMy WebLinkAboutMinutes 07.18.2023 BOARD OF COUNTY COMMISSIONERS ST. LUCIE COUNTY, FLORIDA Sustainability District Meeting July 18, 2023 Convened: 9:02 AM Adjourned: 9:51 AM 1. CALL TO ORDER The meeting was called to order at 9:02 AM by Chair Linda Bartz, District No. 3. Present Commissioner Cathy Townsend District 5, Commissioner Linda Bartz District 3, Commissioner Chris Dzadovsky District 1, Commissioner Larry Leet District 2, Commissioner Jamie Fowler District 4 Also Present George Landry, County Administrator Mayte Santamaria, Deputy County Administrator Katherine Barbieri, Asst. County Attorney Jennifer Hill, OMB Director Benjamin Balcer, Planning & Dev. Services Director Jennifer Garrity, Interim Budget Manager Rangel Guerrero, Public Safety Director Sonji Hawkins, Emergency Management Division Manager Joel Shine, Development Director, Derecktor of Fort Pierce Joshua Revord, Coastal Engineer Barbara Guettler, MSBU Coordinator Chris Craft, Tax Collector Eddie Beck, Tax Collector Attorney Stephanie Morgan, City of Port St. Luice Council Member James Stokes, City of Port St. Luice Attorney Katrina Slay, the Agenda Coordinator Vera Smith, Deputy Clerk Recording Secretary 2. GENERAL PUBLIC COMMENT Chair Bartz opened the meeting for public comment at this time. With no one wishing to address the Board, Chair Bartz closed public comment. 3. CONSENT AGENDA There were no items scheduled. 4. REGULAR AGENDA Sustainability District Meeting Tuesday, July 18, 2023 9:00 AM 2 | Page A. COUNTY ATTORNEY 1. Florida Pace Funding Agency (FPFA) - Request for Board Direction Katherine Barbieri, Assistant County Attorney, presented this item to the Board. The County enacted County Ordinance No. 2010-025 to create the Sustainability District and establish an Energy Financing Program which offers qualified owners of real property an opportunity to acquire qualifying improvements and repay the costs associated with such improvements through voluntary special assessments imposed by the district according to financing agreements. According to the resolution, the district engaged the Solar and Energy Loan Fund of St.Lucie County, Inc. (SELF) as program administrator for the Energy Financing Program. The Administration Agreement expired in September 2022 and the consumer protections above those required by State law were built into the SELF program. In that regard, St. Lucie County is a statewide leader. The district previously issued its taxable special assessment bonds in 2014 and entered the special assessment funding agreement to establish a $2 million non-revolving line of credit with which to finance the costs associated with the qualifying improvements constructed according to the financing agreements entered into by the district and qualifying property owners. The Energy Financing Program, as funded by the loan, has successfully financed numerous Qualifying Improvements, and the principal amount of the non-revolving loan is now almost entirely expended. Inland, recently notified the district that they did not want to continue to fund the residential PACE Program under the agreement. County staff contacted the SELF program in an attempt to find out if they intend to continue processing residential and commercial PACE loans under a renewed administration agreement in St. Lucie with another lender. According to the Director of SELF, they remain interested in working with St. Lucie County to prudently oversee PACE financing in the future. On January 3, 2023, the Florida PACE Financing Authority (FPFA) sent a letter to former County Administrator Howard Tipton expressing their willingness to enter into an interlocal agreement to facilitate information sharing but does not believe that an interlocal agreement is necessary to provide PACE loans in St. Lucie County. The Florida PACE Financing Authority (FPFA) bases its position on a bond validation judgment done by Leon County. In the review of the FPFA validation judgment, the judgment with collateral issues beyond the scope of a bond validation case includes authorization to operate in other counties without regard to existing county programs or protection. St. Lucie County was not provided notice of the proceedings and was not a party to the proceeding. Also, the County has not entered into an interlocal agreement with Florida PACE Financing Authority (FPFA). The attorney for St. Lucie County Tax Collector contacted the County Attorney's office and provided a list of over 140 liens reportedly filed by Florida PACE Financing Authority (FPFA) on properties in St. Lucie County. Based on a staff review of the addresses, it appears that the number of liens is predominantly in the City of Port St. Lucie unincorporated area (25). The staff contacted the two City Attorney's offices, the City of Fort Pierce and the City of Port St. Lucie to see if they have entered into an interlocal agreement with Florida PACE Financing Authority (FPFA) and they indicated they had not. As noted the 2010 County ordinance provides for the ability of the cities to establish their own Florida PACE Financing Authority (FPFA) program and opt out of the County's program. As discussion items for the Board, the County has several options which may be Sustainability District Meeting Tuesday, July 18, 2023 9:00 AM 3 | Page impacted by answers to the questions from the City of Fort Pierce and the City of Port St. Lucie: 1. Attempt to negotiate an interlocal agreement with the Florida PACE Financing Authority (FPFA) program which, has indicated they will do but do not believe that is required. 2. Do nothing and let Florida PACE Financing Authority (FPFA) and other programs as such operate in St. Lucie County. 3. Authorize the County Attorney to send a cease and desist letter to the Florida PACE Financing Authority (FPFA) program, which several counties have done already. 4. Draft a Consumer Protection Ordinance instead of an agreement as previously done with SELF to protect St. Lucie County citizens. Staff recommended the Board provide direction. Due to the complexity of the issues and in the absence of Board consensus, the Board may want to consider holding a special informal meeting to further discuss the issues. Staff further recommended the Board direct the County Attorney to draft and advertise a Florida PACE Financing Authority (FPFA) program consumer protection ordinance for Board review and consideration at a public hearing. Commissioner Dzadovsky expressed his concerns regarding the Florida PACE Financing Authority (FPFA) program and the number of agencies around the nation involved in lawsuits due to providing Florida PACE Financing Authority (FPFA) program loans. He mentioned the number of homes in Port St. Lucie that have been affected by a little over $3 million Countywide and suggested a Cease and Desist letter be drafted. He questioned if the staff had assembled a coalition of agencies to manage the process. Ms. Barbieri advised the Florida Association of Counties to put together a coalition of 20-26 members and the County joined and attended the first meeting. She advised two counties are going through lawsuits, and they are monitoring them at this time. Commissioner Dzadovsky questioned whether there is a process by which the Board could meet in an informal meeting with the coalition and provide directions to staff to check if the other counties would participate in a lawsuit to stop this action in the state of Florida. Ms. Barbieri, there can be an informal meeting set with a consensus of the Board, and to her knowledge, Leon County is in consideration of a lawsuit at this time. Other counties are contemplating lawsuits, and two have filed. Chris Craft, St. Lucie County Tax Collector, and Tax Collector Counsel Eddie Beck addressed the Board and advised a call was received in March from the Florida PACE Financing Authority (FPFA) program asking if they would be placed on the tax roll if they were to send in the participating individuals of the program and there were 100 unaware loans. The Tax Collector indicated to them that there would be a challenge with their pending lawsuits that are being filed against them and until they are settled they are not able to decide. He advised them until the lawsuits are resolved it is recommended not to issue any more loans in St. Lucie County. The Florida PACE Financing Authority (FPFA) program is now exceeding 150 loans as confirmed recently, with 9 more lines being filed at St. Lucie County Clerks' Office. The Tax Collector advised Sustainability District Meeting Tuesday, July 18, 2023 9:00 AM 4 | Page Florida PACE Financing Authority (FPFA) until August 15, 2023, to provide the names of the participating individuals, and at that time they will have to take a formal position on whether to put them on the tax roll or not. Tax Collector Counsel Eddie Beck advised the Board there are limitations to what the Tax Collectors can do to stop the Florida PACE Financing Authority (FPFA) program because they are ignoring current ordinances adopted to protect the citizens. Also, the suggested Cease and Desist letter may not do anything because Florida PACE has gotten the same letters from 5-10 other counties. the Florida PACE Financing Authority (FPFA) program has continued to issue loans within St. Lucie County to vulnerable citizens. He advised Pace has entered into interlocal agreements with other counties and withdrew from them and suggested the Board be proactive and file a lawsuit. Jim Stokes, Attorney for the City of Port St. Lucie advised they are scheduled to have a meeting to discuss options regarding the Florida PACE Financing Authority (FPFA) program. The Board and staff discussed the Interest Rates of the Loans Provided by Florida PACE, adding Florida PACE to the Tax Roll, Loan Payment Defaults/Liens, Filing of Lawsuit against Florida PACE, Drafting a County Ordinance, Loans Exceeding Home Value, Consumer Protection, State/Federal Statues, funding, City of Fort Pierce and Port St. Lucie joining the Lawsuit against Florida PACE, Emergency Injunction against Florida PACE. There was a consensus to bring the item back before the Board for further discussion before August 15, 2023. A motion was made to direct legal to send a cease and desist letter to the Florida Pace Funding Agency (FPFA), to begin drafting and advertise a consumer protection ordinance, complete an emergency protection injunction, and hold a Special Informal Meeting the following week to finalize the following steps, and it passed unanimously. RESULT: APPROVE MOVER: Commissioner District 4 Jamie Fowler SECONDER: Commissioner District 2 Larry Leet AYES: Cathy Townsend, Linda Bartz, Chris Dzadovsky, Larry Leet, Jamie Fowler NAYS: None EXCUSED: None 5. MOTION TO ADJOURN With no other information to be brought for consideration before the Board, the meeting was adjourned at 9:51 AM. Please note: Final minutes are recorded in the official minute books filed with the Clerk of the Circuit Court and available for inspection upon request.