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HomeMy WebLinkAboutAgenda Packet 08.01.2023 SUSTAINABILITY DISTRICT AGENDA ST. LUCIE COUNTY Regular Meeting Tuesday, August 1, 2023 6:00 PM St. Lucie County Commission Chambers 2300 Virginia Avenue 3rd Floor of Roger Poitras Building Fort Pierce, FL 34982 BOARD MEMBERS District No. 3, Chair LINDA BARTZ District No. 4, Vice-Chair JAMIE FOWLER District No. 1 CHRIS DZADOVSKY District No. 2 LARRY LEET District No. 5 CATHY TOWNSEND Mission Statement St. Lucie Works to deliver superior service that enhances our quality of life Page 1 of 9 Regular Meeting Tuesday, August 1, 2023 6:00 PM 2 | P a g e WELCOME All meetings are televised. All meetings provided with wireless internet access for public convenience. Please turn off all cell phones and pagers prior to entering the commission chambers. Please mute the volume on all laptops and PDAs while in use in the commission chambers. GENERAL RULES AND PROCEDURES – Attached is the agenda, which will determine the order of business conducted at today’s Board meeting. INVOCATION-PLEDGE – To bring order and decorum to its meeting, the Board begins its meetings with an invocation followed by the Pledge of Allegiance. Participation is voluntary. CONSENT AGENDA – These items are considered routine and are enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests. REGULAR AGENDA – Proclamations, Presentations, Public Hearings, and Department requests are items, which the Commission will discuss individually, usually in the order listed on the agenda. PUBLIC HEARINGS – These items are usually heard on the first Tuesdays at 6 p.m. or as soon thereafter as possible. However, if a public hearing is scheduled for a meeting on the third Tuesday, which begins at 9 a.m., then public hearings will be heard at 9 a.m. or as soon thereafter as possible. These time designations are intended to indicate that an item will not be addressed prior to the listed time. The Chair will open each public hearing and asks anyone wishing to speak to come forward, one at a time. Comments will be limited to five minutes, and must be pertinent to the agenda item being considered by the Board. As a general rule, when issues are scheduled before the Commission under department request or public hearing, the order of presentation is: (1) County staff presents the details of the Board item (2) Commissioners comment (3) if a public hearing, the Chair will ask for public comment, (4) further discussion and action by the Board. ADDRESSING THE COMMISSION – Please state your name and address, speaking clearly into the microphone. If you have backup material, please have eight copies ready for distribution. NON-AGENDA ITEMS – These items are presented by an individual Commissioner or staff as necessary at the conclusion of the printed agenda. PUBLIC COMMENT – Time is allotted at the beginning of each meeting for general public comment. Please limit comments to three minutes. Comments may pertain to any matter related to the Board’s duties as the County’s governing body. Comments in support or opposition to candidates for public office are not pertinent to the Board’s duties. This includes any speaker identifying himself or herself as a candidate for public office. DECORUM – Please be respectful of others’ opinions. MEETINGS – All Board meetings are open to the public and are held on the first Tuesdays of each month at 6 p.m. and on the third Tuesdays at 9 a.m., unless otherwise advertised. Meetings are held in the County Commission Chambers in the Roger Poitras Administration Annex at 2300 Virginia Ave., Fort Pierce, Fla. 34982. The Board schedules additional workshops throughout the year necessary to accomplish their goals and commitments. Notice is provided of these workshops. Anyone with a disability requiring accommodation to attend this meeting should contact the St. Lucie County Community Services Manager at 772-462-1777 or TDD 772-462-1428 at least 48 hours prior to the meeting. Page 2 of 9 Regular Meeting Tuesday, August 1, 2023 6:00 PM 3 | P a g e 1. CALL TO ORDER 2. GENERAL PUBLIC COMMENT 3. REGULAR AGENDA A. COUNTY ATTORNEY 1. Resolution No. 2023-125 - A Resolution of the Sustainability District of St. Lucie County Declaring the Florida Pace Funding Agency 's Continued Operation in St. Lucie County without Authorization is a Public Health Safety and Welfare Emergency Staff recommends that the Board approve the attached resolution. 4. MOTION TO ADJOURN Page 3 of 9 3.A.1. 2023-61281 DATE: 8/1/2023 AGENDA REQUEST TO: Sustainability District PRESENTED BY: Katherine Barbieri, Assistant County Attorney III SUBMITTED BY: County Attorney SUBJECT: Resolution No. 2023-125 - A Resolution of the Sustainability District of St. Lucie County Declaring the Florida Pace Funding Agency 's Continued Operation in St. Lucie County without Authorization is a Public Health Safety and Welfare Emergency BACKGROUND: The County enacted County Ordinance No. 2010-025 to create the Sustainability District ("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 pursuant to Financing Agreements (the "Projects"). Pursuant to Resolution No. 2012-001 adopted on July 3, 2012, the District engaged the Solar and Energy Loan Fund of St. Lucie County, Inc. ("SELF") as Program Administrator for the Energy Financing Program. A copy of the July 3, 2012 Administration Agreement and the First Amendment are attached. The Administration Agreement expired in September 2022. 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 Bond, Series 2014 to Inland St. Lucie PACE, LLC ("Inland"), and entered into a Special Assessment Funding Agreement (Energy and Sustainability Financing Program) dated August 19, 2014 with SELF and the Lender, to establish a $2,000,000 non-revolving line of credit (the "2014 Loan") with which to finance the costs associated with Qualifying Improvements constructed pursuant to Financing Agreements, entered into between the District and qualifying property owners. The Energy Financing Program, as funded by the 2014 Loan, has successfully financed numerous Qualifying Improvements and the principal amount of the non-revolving 2014 Loan is now almost entirely expended. Inland, however, recently notified the District that Inland did not want to continue to fund residential pace projects under the Agreement. County staff has contacted SELF in an attempt to find out if SELF intends to continue to process residential and commercial PACE loans under a renewed Administration Agreement in St. Lucie with another lender for residential PACE. According to the Director of SELF, SELF remains interested in working with St. Lucie County to prudently oversee PACE financing in the future. The District's authority to issue revenue bonds is set out in County Resolution No. 10-259 which provided for the financing of Qualifying Improvements, including the 2014 Bond, and was validated by the Circuit Court in and for St. Lucie County pursuant to the Final Judgment entered on November 30, 2010 in Case No. 10-CA- 5410. Page 4 of 9 FPFA On January 3, 2023, FPFA sent the attached letter to former County Administrator Howard Tipton. The letter expresses FPFA's willingness to enter into an interlocal agreement that "facilitates information sharing and feedback" but states that FPFA does not believe that an interlocal agreement is necessary to provide PACE in St. Lucie County. FPFA bases its position on a bond validation judgment (Florida Pace Funding Agency v. State of Florida et. al., 2022-CA-001562 [ Fla. 2nd Cir. Ct. October 6, 2022]. In viewing the FPFA validation judgment, it appears that the judgment includes collateral issues beyond the scope of a bond validation case including authorizing FPFA to operate in other counties without regard to existing county programs or protections. St. Lucie County was provided no notice of this proceeding and was not a party to the proceeding. The County has not entered into an interlocal agreement with FPFA. Recently, the attorney for the St. Lucie County Tax Collector contacted the County Attorney's office and provided the County Attorney's office with a list of over 140 liens reportedly filed by FPFA on properties in St. Lucie County. St. Lucie County Attorney's staff updated the list on July 19, 2023: City of Fort Pierce: 10 St. Lucie County: 26 City of Port St. Lucie: 124 (one of these is a release of lien and probably should not be included in the count) Other: 3 (These do not appear to be liens. They are final judgments and a resolution) Staff has contacted the two City Attorney's offices to see if either City has entered into an interlocal agreement with FPFA. The Port St. Lucie City Attorney's Office indicated that the City of Port St. Lucie has not entered into an agreement with FPFA. Similarly, the Fort Pierce City Attorney's Office indicated that the City of Fort Pierce has not entered into an agreement with FPFA. Please note that the 2010 County ordinance provides for the ability of the Cities to establish their own PACE program and opt out of the County's program. In addition, the FPFA website indicates that FPFA will submit a roll to the St. Lucie County Tax Collector in 2023 in the amount of $3,120,081.98 for 111 parcels. Previously, FPFA did one loan in 2018 for $12,476.49. PREVIOUS ACTION: On July 18, 2023, the Commissioners of the Sustainability District ordered a Cease and Desist letter to go out and ordered drafting of a consumer protection order. FINANCIAL IMPACT: N/A RECOMMENDATION: Staff recommends that the Board approve the attached resolution. COMMISSION ACTION: RESULT: MOVER: None Page 5 of 9 SECONDER: None AYES: None NAYS: None EXCUSED: None Coordination/Signatures Date: July 26, 2023 Katherine Barbieri, Assistant County Attorney III Date: July 27, 2023 Daniel McIntyre, County Attorney Date: July 27, 2023 George Landry, County Administrator Page 6 of 9 RESOLUTION NO. 2023-125 A RESOLUTION OF THE SUSTAINABILITY DISTRICT OF ST. LUCIE COUNTY, FLORIDA, DECLARING THAT FLORIDA PACE FUNDING AGENCY'S CONTINUED OPERATION IN ST. LUCIE COUNTY WITHOUT AUTHORIZATION IS A PUBLIC HEALTH, SAFETY AND WELFARE EMERGENCY AND AUTHORIZING THE COUNTY ATTORNEY'S OFFICE TO INITIATE LITIGATION, AS APPROPRIATE, TO STOP FLORIDA PACE FUNDING AGENCY OPERATIONS IN ST. LUCIE COUNTY. RECITALS WHEREAS, Section 163.08, Florida Statutes, creates the framework for the administration of PACE programs, wherein property owners enter into financing agreements to obtain specified qualifying improvements that are paid for the levy of non-ad valorem assessments on the property owners tax bills; and, WHEREAS, Section 163.08, Florida Statutes, expressly provides that such statute is additional and supplemental to county and municipal home rule authority, and not a derogation or limitation on such authority; and, WHEREAS, on St. Lucie County (the "County") adopted Ordinance No. 2010-025 to create a Sustainability District (“District”) and established an Energy Financing Program which offers qualified owners of real property an opportunity to acquire Qualifying Improvements and repay costs associated with such improvements through voluntary special assessments imposed by the District pursuant to Financing Agreements; and, WHEREAS, the District engaged the Solar and Energy Loan fund of St. Lucie County, Inc. (“SELF”) as Program Administrator for the Energy Financing Program; and WHEREAS, Consumer protections above those required by state law were built into the SELF program; and, WHEREAS, without any notice to the County or the District, the Florida PACE Funding Agency (“FPFA”) initiated bond validation proceedings in St. Lucie County Circuit Court, which resulted in the issuance of a Final Judgment (the "Final Judgment") authorizing the FPFA to finance qualifying improvements for property owners in Florida in the aggregate principal amount of Five Billion Dollars ($5,000,000,000.00); and, Page 7 of 9 WHEREAS, the Final Judgment additionally asserts that the FPFA has independent statewide authority to operate its PACE program “without interference or regulation from local governments”; and, WHEREAS, on January 3, 2023, FPFA sent a letter to the former County Administrator. FPFA expressed willingness to enter into an interlocal agreement that “facilitates information and feedback” but states that FPFA does not believe that an interlocal agreement is necessary to provide PACE in St. Lucie County; and, WHEREAS, the FPFA asserts that it has "independent authority" to operate a PACE program in St. Lucie County based upon the Final Judgment; and, WHEREAS, on or about January 11, 2023, the FPFA began operating a PACE program in the County and the District in violation of the Ordinance No. 2010-025, and the FPFA or its representative began filing liens in the County for PACE program improvements; and, WHEREAS, the FPFA and its representatives continue to operate a PACE Program in the County in violation; and, WHEREAS, the liens filed in the County by FPFA or its representative reflect that the majority of property owners are being charged interest rates as high as 9.99% for the qualifying improvements, and the property owners will be paying such interest rates for at least 10 years, but the majority are for 30 years, for items such as windows, air conditioning units, and roofs; and, WHEREAS, based upon interest rates charged and terms of the financing agreements, the tax bill amount of the property owners in the County will increase significantly. Almost a third of the tax bills will double in amount. A few of the tax bills will increase five times; and, WHEREAS, the FPFA's continued operations pose an immediate danger to the health, safety, and welfare of the citizens of the County that requires immediate action; and, WHEREAS, the County contends that Chapter 164, Florida Statutes, otherwise known as the Florida Governmental Conflict Resolution Act, is not applicable based upon the FPFA’s assertion that it has statewide authority; and, WHEREAS, if a court finds that the FPFA is a governmental entity within the meaning of section 163.01, Florida Statutes, the significant legal rights of the County will be compromised if a court proceeding does not take place before compliance with the provisions of Chapter 164, Florida Statutes, the Florida Governmental Conflict Resolution Act; and, WHEREAS, Section 164.1041(2), Florida Statutes, requires that the Board of County Commissioners find, by a three-fourths vote, that an immediate danger to the health, safety, or welfare of the public requires immediate action or that significant legal rights will be compromised if a court 1 proceeding does not take place before compliance with the provisions of Chapter 164, Florida Statutes, 2 the Florida Governmental Conflict Resolution Act. 3 Page 8 of 9 NOW THEREFORE, BE IT RESOLVED by the Sustainability District of St. Lucie County, Florida, that: 1. The recitals above are true and correct and form a part of this Resolution. 2. This Board finds that the FPFA's continued operations in the County under its asserted independent authority pose an immediate danger to the health, safety, or welfare of the citizens of the County and compromise the significant legal rights of the County, and therefore requires immediate action against it before compliance with the provisions of Chapter 164, Florida Statutes, the Florida Governmental Conflict Resolution Act, to the extent such Act is applicable. PASSED AND DULY ENACTED this 1st day of August 2023. SUSTAINABILITY DISTRICT ATTEST: ST. LUCIE COUNTY, FLORIDA _________________________ BY: _______________________________ DEPUTY CLERK CHAIR APPROVED AS TO FORM AND CORRECTNESS: BY: ________________________________ COUNTY ATTORNEY Page 9 of 9