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HomeMy WebLinkAboutAgenda Packet 08.15.2023SUSTAINABILITY DISTRICT AGENDA ST. LUCIE COUNTY Regular Meeting Tuesday, August 15, 2023 9:01 AM 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 *Final on 8/9 Page 1 of 42 Regular Meeting Tuesday, August 15, 2023 9:01 AM 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 42 Regular Meeting Tuesday, August 15, 2023 9:01 AM 3 | P a g e 1.CALL TO ORDER 2.GENERAL PUBLIC COMMENT 3.APPROVAL OF MINUTES A.Board of County Commissioners minutes for the Sustainability District Meeting of July 18, 2023. B.Board of County Commissioners minutes for the Sustainability District Meeting of August 1, 2023. C.Board of County Commissioners minutes for the Sustainability District Meeting of May 16, 2023. 4.CONSENT AGENDA A.PUBLIC WORKS 1.Energy Special Assessment District (SAD) Annual Assessment Resolution Staff recommends Board adoption of the attached resolution and authorization for the Chair to sign documents as approved by the County Attorney. 5.PUBLIC HEARINGS A.COUNTY ATTORNEY 1.Ordinance No. 2023-009 - An Ordinance of St. Lucie County, Florida Amending Article VI Of Chapter 40 of the St. Lucie County Code Entitled "St. Lucie County Sustainability District" To Adopt Additional Consumer Protection Provisions For Property Owners Applying For "Property Assessed Clean Energy" (Pace) Funding In The District Staff recommends the Board approve the attached draft ordinance. 6.MOTION TO ADJOURN Page 3 of 42 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 Page 4 of 42 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 Page 5 of 42 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 Page 6 of 42 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. Page 7 of 42 BOARD OF COUNTY COMMISSIONERS ST. LUCIE COUNTY, FLORIDA Sustainability District Meeting August 1, 2023 Convened: 6:01 PM Adjourned: 6:05 PM 1. CALL TO ORDER The meeting was called to order at 6:01 PM 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 Dan McIntyre, County Attorney George Landry, County Administrator Mayte Santamaria, Deputy County Administrator Katherine Barbieri, Assistant County Attorney III Benjamin Balcer, Planning & Development Services Director Kori Benton, Planning & Development Services Planning Manager JoAnn Riley, Property Acquisition Manager Thad Crowe, Planning & Development Services Senior Planner Daniel Zrallack, County Engineer Kori Benton, Planning & Development Services Planning Manager 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. 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 Katherine Barbieri, Assistant County Attorney III, presented this item to the Board. The authorization for the County Attorney's office to initiate litigation as appropriate to stop the Florida PACE Funding Agency's s continued operation in St. Lucie County. Whereas, without notice to the County or District, the Florida Page 8 of 42 Sustainability District Meeting Tuesday, August 1, 2023 6:00 PM 2 | Page PACE Funding Agency (FPFA) initiated bond validation proceedings in Leon County Circuit Court, which resulted in the issuance of a final judgment authorizing the agency to finance qualifying improvements for property owners in all of Florida and the aggregate principal amount of $5 billion. On January 3, 2023, FPFA sent a letter to former County Administrator Howard Tipton expressing their willingness to enter into an interlocal agreement that just facilitates information sharing and feedback but states they do not believe that an interlocal agreement is necessary to provide PACE in St. Lucie County. On January 11, 2023, the Florida PACE Funding Agency (FPFA) began operating a program in the County and District in violation of the Ordinances. Then the Florida PACE Funding Agency (FPFA) or its representatives began filing liens in the County for program improvements. Whereas the liens filed in the County by Florida PACE Funding Agency (FPFA) or its representatives reflect that the majority of property owners are being charged interest rates as high as 9.99% for the qualifying improvement and that property owners will pay such interest rates for at least 10 years, but a majority for 30 years for items such as windows, air-conditioning units, and roofs. Based on the interest rates charged and the terms of the financing agreements, the tax bill amount of the property owners in the County will increase significantly. Almost a third of tax bills will double in amount and a few will increase five times. The County contends that Chapter 164, the Florida Statutes, also known as the Florida Government Conflict Resolution Act is not applicable based on the Florida PACE Funding Agency (FPFA) assertion that has statewide authority and the court finds that Florida PACE is a governmental entity. The Board of County Commissioners finds Florida PACE an immediate danger to the health, safety, and welfare of the public in the creation of the liens. The County has the legal right not to comply with Florida Statute Chapter 164. In the, whereas clause, the County has to make an amendment stating the bond validation was in St. Lucie County when it is in Leon County, and the scrivener's error will be corrected. St. Lucie County is requesting that the Board find that the Florida PACE Funding Agency (FPFA) continued operation in the County under its asserted independent authority poses an immediate danger to the health, safety, and welfare of the citizens of the County and compromises significant legal rights of the County and therefore requires immediate action against it before compliance with the provisions Chapter 164, Florida Statutes, the Florida government Conflict Resolution Act. Staff requested the Board to approve the resolution as amended with one change to the whereas clause. The Board did not have any questions or comments on this item. A motion was made to approve the staff recommendation as amended, and it passed unanimously. RESULT: APPROVE MOVER: Commissioner District 1 Chris Dzadovsky SECONDER: Commissioner District 4 Jamie Fowler AYES: Cathy Townsend, Linda Bartz, Chris Dzadovsky, Larry Leet, Jamie Fowler NAYS: None EXCUSED: None Page 9 of 42 Sustainability District Meeting Tuesday, August 1, 2023 6:00 PM 3 | Page 4. MOTION TO ADJOURN With no other information to be brought for consideration before the Board, the meeting was adjourned at 6:05 PM. 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. Page 10 of 42 BOARD OF COUNTY COMMISSIONERS ST. LUCIE COUNTY, FLORIDA Sustainability District Meeting May 16, 2023 Convened: 9:04 AM Adjourned: 9:04 AM 1. CALL TO ORDER The meeting was called to order at 9:04 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 Dan McIntyre, County Attorney George Landry, County Administrator Mayte Santamaria, Deputy County Administrator Benjamin Balcer, Planning & Development Services Director Patrick Dayan, Public Works Director Barbara Guettler, Public Works MSBU Coordinator JoAnn Riley, Property Acquisition Manager Rebecca Olson, Interim Director of Public Utilities Angela Riggins, 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. APPROVAL OF MINUTES A motion was made to approve all minute sets, and it passed unanimously. RESULT: APPROVE MOVER: Commissioner District 5 Cathy Townsend SECONDER: Commissioner District 2 Larry Leet AYES: Cathy Townsend, Linda Bartz, Chris Dzadovsky, Larry Leet, Jamie Fowler NAYS: None EXCUSED: None A. Board of County Commissioners minutes for the Sustainability District Meeting of February 21, 2023. Page 11 of 42 Sustainability District Meeting Tuesday, May 16, 2023 9:01 AM 2 | Page 4. CONSENT AGENDA There were no items scheduled. 5. REGULAR AGENDA There were no items scheduled. 6. MOTION TO ADJOURN With no other information to be brought for consideration before the Board, the meeting was adjourned at 9:04 AM. Please note: Final minutes are recorded in the official minute's books filed with the Clerk of the Circuit Court and available for inspection upon request. Page 12 of 42 4.A.1. 2023-61077 DATE: 8/15/2023 AGENDA REQUEST TO: Sustainability District PRESENTED BY: Barbara Guettler, MSBU Coordinator SUBMITTED BY: Public Works SUBJECT: Energy Special Assessment District (SAD) Annual Assessment Resolution BACKGROUND: In 2010, the St. Lucie County Board of Commissioners created the Sustainability District (“the District”) for purposes of accomplishing energy efficiency and renewable energy improvements through a Special Assessment District (“SAD”). Property owner participation in the Energy SAD is completely voluntary. In 2012, the District designated the Solar and Energy Loan Fund of St. Lucie County, Inc. (“SELF”) as the program administrator for the District’s Energy Financing Program. The attached 2023 Energy SAD Annual Assessment Resolution includes 81 parcels. The proposed assessment amount per parcel ranges from $4,712.38 to $57,438.89 and will be financed for five (5) to twenty (20) years at an interest rate ranging from 5.61% to 9.25%. The proposed annual assessment amount per parcel ranges from $627.41 to $8,244.89 . PREVIOUS ACTION: October 18, 2022 - The Sustainability District Board approved Resolution No. 2021-187, Notice of Intent to levy, and collect non-ad valorem special assessments in 2023 for the Energy SAD. FINANCIAL IMPACT: The revenue generated by the collection of special assessments for the Energy SAD will be utilized to repay the loan obtained to fund the improvements. Funds will be deposited into the Energy SAD Fund (191-4115- 325100-4920). RECOMMENDATION: Staff recommends Board adoption of the attached resolution and authorization for the Chair to sign documents as approved by the County Attorney. COMMISSION ACTION: RESULT: MOVER: None Page 13 of 42 SECONDER: None AYES: None NAYS: None EXCUSED: None Coordination/Signatures Date: July 24, 2023 Patrick Dayan, Public Works Director Date: August 03, 2023 Daniel McIntyre, County Attorney Date: August 04, 2023 Mayte Santamaria, Deputy County Administrator Page 14 of 42 1 RESOLUTION NO. 23-110 A RESOLUTION OF THE ST. LUCIE COUNTY SUSTAINABILITY DISTRICT APPROVING THE DISTRICT'S FISCAL YEAR 2023-24 NON-AD VALOREM ASSESSMENT ROLL; DIRECTING CERTIFICATION OF THE ASSESSMENT ROLL TO THE ST. LUCIE COUNTY TAX COLLECTOR; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE GOVERNING BOARD OF THE ST. LUCIE COUNTY SUSTAINABILITY DISTRICT AS FOLLOWS: SECTION 1. AUTHORITY. This Resolution of the St. Lucie County Sustainability District (the "District") is adopted pursuant to the provisions of Article VI of Chapter 40 of the Code of Ordinances (the "Ordinance") of St. Lucie County, Florida (the "County"), Chapter 189, Florida Statutes, Sections 163.08 and 197.3632, Florida Statutes, and other applicable provisions of law (collectively, the "Act"). SECTION 2. DEFINITIONS.Capitalized terms not otherwise defined herein shall have the meanings set forth in the Ordinance or the Act. SECTION 3. FINDINGS.It is hereby ascertained, determined and declared as follows: (A) The County enacted the Ordinance in order to create the District and establish the Energy Financing Program which offers qualified owners of real property an opportunity to acquire and finance certain facilities and improvements, including energy efficiency, conservation and sustainability improvements, as authorized by the Act (the "Qualifying Improvements"). (B) The District is authorized by the Act and the Ordinance to impose special assessments, sometimes referred to as non-ad valorem assessments, upon real property within the District to provide for the funding of Qualifying Improvements. (C) The special assessments are imposed by the District pursuant to financing agreements entered into with the owners of real property who voluntarily apply for, and who are approved for, the financing of Qualifying Improvements (the "Financing Agreements"). (D) Such Financing Agreements provide for, among other things, repayment of the costs associated with Qualifying Improvements through special assessments imposed Page 15 of 42 2 by the District upon the real property benefitted by the improvements, and collection of the assessments in annual installments pursuant to the uniform method of collecting non- ad valorem assessments set forth in Section 197.3632, Florida Statutes. (E) The District's execution of Financing Agreements, imposition of special assessments and collection of same pursuant to the uniform method are expressly authorized by Section 163.08, Florida Statutes. (F) The District adopted Resolution No. 2022-187 on October 18, 2022, expressing the District's intent to use the uniform method for collecting the non-ad valorem assessments levied within the District, commencing in November, 2023. (G) The Governing Board of the District wishes to hereby approve and certify the District's non-ad valorem assessment roll for fiscal year 2023-24 and to direct certification of such roll to the Tax Collector for collection of the special assessments in November, 2023. (H) The Assessments are imposed by the District, not the Property Appraiser or Tax Collector. Any activity of the Property Appraiser or Tax Collector under the provisions of this Resolution shall be construed solely as ministerial. SECTION 4. APPROVAL AND CERTIFICATION OF ASSESSMENT ROLL. (A) The District's non-ad valorem assessment roll for fiscal year 2023-24 lists all of the properties subject to special assessments imposed by the District pursuant to Financing Agreements, and the amount of the annual installment to be collected from each for such fiscal year. Such non-ad valorem assessment roll, a copy of which is on file with the County Engineering Department and incorporated herein by reference, is hereby confirmed and approved. (B) The County's MSBU Coordinator is hereby authorized and directed to certify the foregoing assessment roll to the Tax Collector by September 15, 2023. The assessment roll as delivered to the Tax Collector shall be accompanied by a Certificate to Non-Ad Valorem Assessment Roll in substantially the form attached hereto as Appendix A. SECTION 5. SEVERABILITY.If any clause, section, or other part of this resolution shall be held by any court of competent jurisdiction unconstitutional or invalid, such unconstitutional or invalid part shall be considered as eliminated and in no way affects the validity of the other provisions in this resolution. Page 16 of 42 3 SECTION 6. EFFECTIVE DATE. This Resolution shall take effect immediately upon its passage and adoption. Passed and adopted by the St. Lucie County Sustainability District at a regular meeting duly called this 15th day of August, 2023. ST. LUCIE COUNTY SUSTAINABILITY DISTRICT By: Chair ATTEST: Approved as to Form: Deputy Clerk County Attorney Page 17 of 42 APPENDIX A FORM OF CERTIFICATE TO NON-AD VALOREM ASSESSMENT ROLL I HEREBY CERTIFY that I am the St. Lucie County MSBU Coordinator and authorized agent of the St. Lucie County Sustainability District (the "District") located in St. Lucie County, Florida; as such I have satisfied myself that all property included or includable on the non-ad valorem assessment roll for the District (the "Non-Ad Valorem Assessment Roll") is properly assessed so far as I have been able to ascertain; and that all required extensions on the above described roll to show the non-ad valorem assessments attributable to the property listed therein have been made pursuant to law. I FURTHER CERTIFY that, in accordance with the Uniform Assessment Collection Act, this certificate and the herein described Non-Ad Valorem Assessment Roll will be delivered to the St. Lucie County Tax Collector by September 15, 2023. IN WITNESS WHEREOF, I have subscribed this certificate and directed the same to be delivered to the St. Lucie County Tax Collector and made part of the above described Non-Ad Valorem Assessment Roll this 15th day of September 2023. ST. LUCIE COUNTY SUSTAINABILITY DISTRICT By: ________________________________ Barbara Guettler, MSBU Coordinator Page 18 of 42 5.A.1. 2023-61658 DATE: 8/15/2023 AGENDA REQUEST TO: Sustainability District PRESENTED BY: Katherine Barbieri, Assistant County Attorney III SUBMITTED BY: County Attorney SUBJECT: Ordinance No. 2023-009 - An Ordinance of St. Lucie County, Florida Amending Article VI Of Chapter 40 of the St. Lucie County Code Entitled "St. Lucie County Sustainability District" To Adopt Additional Consumer Protection Provisions For Property Owners Applying For "Property Assessed Clean Energy" (Pace) Funding In The District 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- Page 19 of 42 5410. 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. On July 27, 2023, the County Attorney sent a Cease and Desist Letter to FPFA. On August 1, 2023,a Special Informal meeting was held by the St. Lucie County Board of County Commissioners to review the status of the issues surrounding FPFA. On August 1, 2023, Resolution No. 2023-129 was approved by the Board of County Commissioners. On August 1, 2023, Resolution No. 2023-125 was approved by the Sustainability District. On August 4, 2023, a notice was published in the St. Lucie News Tribune providing notice of the Public Hearing on August 15, 2023 to consider the adoption of Ordinance No. 2023-009 by the Board of County Commissioners Sustainability District. FINANCIAL IMPACT: Page 20 of 42 N/A RECOMMENDATION: Staff recommends the Board approve the attached draft ordinance. COMMISSION ACTION: RESULT: MOVER: None SECONDER: None AYES: None NAYS: None EXCUSED: None Coordination/Signatures Date: August 08, 2023 Katherine Barbieri, Assistant County Attorney III Date: August 08, 2023 Daniel McIntyre, County Attorney Date: August 09, 2023 George Landry, County Administrator Page 21 of 42 Draft: 07/27/23 1 ORDINANCE 23-009 AN ORDINANCE OF ST. LUCIE COUNTY, FLORIDA AMENDING ARTICLE VI OF CHAPTER 40 OF THE ST. LUCIE COUNTY CODE ENTITLED "ST. LUCIE COUNTY SUSTAINABILITY DISTRICT" TO ADOPT ADDITIONAL CONSUMER PROTECTION PROVISIONS FOR PROPERTY OWNERS APPLYING FOR "PROPERTY ASSESSED CLEAN ENERGY" (PACE) FUNDING IN THE DISTRICT; PROVIDING THAT SUCH CONSUMER PROTECTIONS SHALL APPLY TO ALL PACE FUNDING WITHIN THE DISTRICT; RATIFYING AND CONFIRMING COUNTY INTENT THAT THE DISTRICT SHALL HAVE SOLE AUTHORITY AND JURISDICTION TO PROVIDE AND ADMINISTER PACE FUNDING, AND TO IMPOSE AND COLLECT RELATED NON-AD VALOREM ASSESSMENTS WITHIN DISTRICT BOUNDARIES, UNLESS OTHERWISE AGREED UPON AND CONSENTED TO BY THE DISTRICT THROUGH INTERLOCAL AGREEMENT; PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners (the "Board") of St. Lucie County (the "County") adopted Ordinance No. 10-025 on June 15, 2010 (the "Sustainability Ordinance") which created the St. Lucie County Sustainability District (the "District") for the purpose of establishing a financing program (the "Energy Financing Program") for efficiency and renewable energy improvements through the imposition of property assessed clean energy ("PACE") non-ad valorem special assessments, consistent with and in furtherance of the state energy efficiency policy objectives set forth in section 163.01(8), Florida Statutes (the "PACE Act"); and WHEREAS, a property owner may participate in the Energy Financing Program by applying for funding, and if the application is approved, by entering into a financing agreement (the "Financing Agreement") with the District setting forth the terms and conditions by which funding is made available for qualifying improvements ("Qualifying Improvements") and by which the funding is repaid over time through PACE assessments collected in annual installments on the ad valorem property tax bill pursuant to section 197.3632, Florida Statutes and the PACE Act; and WHEREAS, participation in the Energy Financing Program and the imposition of PACE assessments pursuant to Financing Agreements is thus consensual and voluntary, and PACE assessments are only imposed upon the request and consent of property owners who have applied for funding; and WHEREAS, the Sustainability Ordinance provides that the District consists of and includes property within the geographical boundaries of the County, and that if any such property is located within any municipality in the County, such property shall be so included in the District unless such municipality shall have enacted an ordinance opting out of the District; and WHEREAS, the District engaged the Solar and Energy Loan Fund of St. Lucie County ("SELF") to act as program administrator and process and approve funding applications, facilitate financing of Qualifying Improvements, and take such other actions and may be necessary and appropriate for ongoing administration of the Energy Financing Program; and WHEREAS, the District previously issued its Taxable Special Assessment Bond, Series 2014 (including any amendments thereto, the "2014 Bond") to Inland St. Lucie PACE, LLC (the "Lender"), and Page 22 of 42 Draft: 07/27/23 2 entered into that certain Special Assessment Funding Agreement (Energy and Sustainability Financing Program) dated August 19, 2014 with SELF and the Lender (as amended from time to time, the "Funding Agreement"), to establish a funding source with which to finance the costs associated with Qualifying Improvements constructed pursuant to Financing Agreements entered into between the District and qualifying property owners; and WHEREAS, the Funding Agreement includes extensive disclosure requirements and consumer protection provisions which meet or exceed the minimum requirements of the PACE Act, including qualification criteria based on the applicant's ability to pay the PACE assessment over time, which are applicable to Financing Agreements funded through proceeds of the 2014 Bond; and WHEREAS, the Energy Financing Program has achieved great success over time, due in large part to such disclosure requirements and consumer protections; and WHEREAS, it has come to the Board's attention that PACE programs offered in other jurisdictions in the State of Florida and nationally, particularly with respect to residential PACE assessments, have led to negative property owner experiences including complaints against contractors and vendors who construct and install Qualifying Improvements, and also against entities administering PACE financing programs; and WHEREAS, the County's Energy Financing Program has largely avoided such issues due to direct oversight and involvement by the District and its consumer protection provisions; and WHEREAS, since establishment in 2010, the District has been the sole authorized provider of PACE Funding within the boundaries of the District, and the County wishes to ratify and confirm its continued intent for the District to be the sole entity with authority and jurisdiction to provide PACE funding therein, absent an interlocal agreement with a third party local government PACE provider by which the District and/or the County expressly consents to the provision of PACE services, the imposition of PACE assessments and administration of PACE services by such local government entity; and WHEREAS, property owners are subject to losing title to assessed property, including homestead property, in the event PACE assessments are unpaid, which underscores the necessity for appropriate disclosure requirements, consumer protections and public safeguards, and the need for transparency and local accountability; and WHEREAS, this Ordinance is adopted for purposes of extending disclosure requirements and consumer protections to all PACE funding within District boundaries. NOW, THEREFORE, BE IT ORDAINED by the Board of County Commissioners of St. Lucie County, Florida, as follows: SECTION 1. Amendment. (A) Division 1 of Article VI of Chapter 40 of the St. Lucie County Code is hereby amended as follows, with additional text indicated by underline and deleted text indicated by strikethrough: Page 23 of 42 Draft: 07/27/23 3 ARTICLE VI. ST. LUCIE COUNTY SUSTAINABILITY DISTRICT DIVISION 1. GENERALLY * * * Sec. 40-172. Program Administration. (a) The District may engage a for-profit or not-for-profit organization to administer the financing program contemplated hereunder. (b) Any such financing program offered within the District shall be administered pursuant to the process, standards and requirements set forth in Division 3 and F.S. § 163.08, as may be amended from time to time. Sec. 40-173. Authorization of county officers and employees. The board and all other county offices and employees are hereby authorized and directed to take all action necessary and appropriate to effectuate the provisions of this article. Secs. 40-174 – 40-205. Reserved. Sec. 40-172. Eligible property owners. An eligible property owner (or property) must meet the following criteria: (1) Be the legal owner and provide proof of ownership in the application for the program. (2) Property must be located within the county. (3) Property owner must be current on property taxes, and show no delinquency in the last five years or such shorter period during which the applicant has owned the property on the property subject of the application for improvements. (4) Property owner must be current on any mortgage or other debt secured by the property. (5) Property owner cannot be in bankruptcy nor can the property be an asset in any bankruptcy proceeding. (6) Property cannot be in foreclosure. (7) Property cannot have any federal income tax lien, judgment lien or similar involuntary lien encumbering the property. (8) Improvements must be reasonable for the scope of the property project and to the property value in accordance with guidelines approved by the district. Sec. 40-173. Energy savings audit. (a) If required, an energy savings audit shall be conducted by a qualified energy auditor or a certified building energy rater. The district shall provide a list of, and set forth the minimum standards for, qualified or certified auditors and raters. At a minimum, the energy savings audit shall include the following information: (1) Recommendations for energy savings measures; (2) Estimated energy savings and a priority ranking for each measure; Page 24 of 42 Draft: 07/27/23 4 (3) Estimated renewable energy to be produced; (4) Estimated greenhouse gas reduction; and (5) Estimated cost savings resulting from the implementation of the recommendations and use of funds made available by the district. (b) The board may establish an alternative process to meet this requirement, but that process must be based upon professionally accepted methodologies for documenting the information required herein. Sec. 40-174. Application. An eligible property owner must submit a complete application to the district for its approval. A complete application shall include the following information: (1) Proof of ownership and location of the property; organizational documents if the property owner is not on the title as an individual. (2) If applicable, documentation showing the existing structure or building that is the subject of the application. (3) A cost estimate for the installation of the qualifying improvements completed by a state licensed contractor (including the name and license number of the contractor). This estimate shall include all construction costs, equipment, permitting fees, recording fees for the assessment of liens, energy audit costs, and contingency fees. Estimated costs shall be reasonable for the scope of the proposed project and in relation to the property value. (4) Written documentation indicating that the property owner is current in the mortgage, if one exists on the property, and that there are no federal or state tax liens, judgments liens or similar involuntary liens against the property subject of the application. (5) Disclosure regarding non-ad valorem assessments. (6) State fair lending notice, as required. Sec. 40-175. Written agreement. Upon submittal of a complete application to enter into the program as approved by the district, the property owner shall enter into a voluntary written agreement with the district that shall constitute the property owner's consent to be subject to a non-ad valorem assessment. The written agreement shall be recorded and provide for the following: (1) The maximum limit of the financing for the program shall be 20 percent of assessed value per property, unless: a. A higher financing amount is consented to by the mortgage holder on the property, if one exists; and b. For energy conservation and efficiency improvements or renewable energy improvements, the energy audit, or information on energy savings measures provided in the application, shows a demonstrated high level of energy savings that is equal to or greater than the proposed assessment amount or renewable energy produced over the duration of the financing. (2) Express voluntary consent to accept the non-ad valorem assessment has been given. Page 25 of 42 Draft: 07/27/23 5 (3) The length of time permitted for the property owner to repay the non-ad valorem assessment shall not exceed 20 years, including the term, interest rate and administrative and financing fees. (4) The property owner shall be responsible for ensuring the improvements are completed as reflected in the approved application documents. The property owner also consents to providing access to property to the county to verify that the improvements have been completed as proposed in the application. (5) At the time of a transfer of property ownership, the past due balances of any non-ad valorem assessment under this subsection shall be due for payment, but future payments shall continue as a lien on the property. (6) The risks associated with participating in the program shall be disclosed in the written agreement, including risks related to the failure of the participating property owners to make payments and the risk of issuance of a tax certificate and loss of the property pursuant to F.S. ch. 197. (7) For energy conservation and efficiency improvements or renewable energy improvements, the cost of an energy savings audit or the cost to complete an estimate of information on energy savings measures, estimated energy savings for each measure, estimated greenhouse gas reductions and estimated cost savings from the projects will be subject to reimbursement upon execution of the written agreement to accept the non-ad valorem assessment. (8) The property owner shall agree to apply any rebates provided by an entity other than the district, received for the projects approved by the district, towards the repayment of the non-ad valorem assessment. (9) If property taxes are paid through an escrow account, the property owner is responsible for notifying the lender of any adjustment to monthly payments. (10) The property owner shall provide all copies of final permits and inspections to the district upon completion of the projects. (11) The property owner shall agree to provide the district five years of utility statements showing the energy usage for the property following the year in which the improvements are made. The statements shall be due on the final day of the month when the improvements were completed. Sec. 40-176. Authorization of county officers and employees. The board and all other county offices and employees are hereby authorized and directed to take all action necessary and appropriate to effectuate the provisions of this article. (B) Division 3 of Article VI of Chapter 40 of the St. Lucie County Code is hereby created to read as follows: DIVISION 3. PACE PROGRAM ADMINISTRATION; CONSUMER PROTECTIONS. Sec. 40-208. Definitions. For the purposes of this division, the following definitions shall apply: Page 26 of 42 Draft: 07/27/23 6 Assessed property shall mean property subject to a PACE assessment. Board shall mean the St. Lucie County Board of County Commissioners. County shall mean St. Lucie County, Florida. District shall mean the St. Lucie County Sustainability District. Eligible participant shall mean any residential or nonresidential property owner who voluntarily participates in the PACE program and satisfies the eligibility requirements set forth in section 40-213. PACE Act shall mean F.S. § 163.08, as may be amended from time to time. PACE administrator shall mean a for-profit or not-for-profit organization engaged by the District to administer a PACE program on behalf of and at the discretion of the District. In the event the County has entered into a PACE interlocal agreement with PACE local government other than the District to administer a PACE program within the County, the term PACE administrator shall include a for-profit or not-for-profit organization engaged by such PACE local government. PACE assessment shall mean the non-ad valorem assessment placed on a property owner's tax bill as a result of financing obtained pursuant to the PACE financing agreement. PACE contractor shall mean a contractor authorized by a PACE local government to sell, construct or install qualifying improvements funded through the PACE program. PACE financing agreement shall mean the agreement entered into between the eligible participant and the PACE local government specifying the qualifying improvements to be installed at the property and the terms and conditions for financing those improvements through PACE assessments levied on the property. PACE interlocal agreement shall mean an agreement entered into between the County and a PACE local government other than the District authorizing the PACE local government to administer a PACE program within the County in accordance with F.S. § 163.01 and this article. PACE local government shall mean (i) the District, or (ii) a separate legal entity created pursuant to F.S. § 163.01(7). To the extent that a PACE local government other than the District operates a PACE program within the County through a contracted PACE administrator, the PACE local government is responsible for the actions or inactions of the PACE administrator acting within the County in furtherance of the PACE program as if it had taken such action, or failed to take such action, itself. PACE program or program shall mean any Property Assessed Clean Energy program authorized by F.S. § 163.08 offered within the boundaries of the District, excepting any municipality that has opted out of the District. Property means residential or nonresidential property located within the jurisdictional boundaries of the District, excepting any municipality that has opted out of the District. Qualifying improvements shall mean those improvements to real property provided for this article or in F.S. § 163.08, including, but not limited to, energy conservation and efficiency, renewable energy and wind-resistance improvements. Page 27 of 42 Draft: 07/27/23 7 Sec. 40-209. Purpose. (a) PACE programs allow a property owner to voluntarily finance qualifying improvements through a non-ad valorem assessment repaid through installments collected on the annual property tax bill. Failure to pay the annual property tax bill can result in loss of title to property, even property which comprises a homestead. (b) It is in the best interests of the citizens of the County to have uniform consumer protection regulations that apply to all PACE local governments and PACE administrators who implement and manage PACE programs in the District. (c) The purpose of this article is to provide such uniform consumer protection regulations to ensure that: (1) The citizens of St. Lucie County are fully apprised of the program; (2) PACE local governments have developed a responsive complaint process; (3) Qualifying improvements meet the statutory goals set forth in F.S. § 163.08; and (4) PACE contractors meet certain standards of conduct. (d) This article is intended to add requirements to the provisions of F.S. § 163.08 and other applicable law as it currently exists and should be construed consistently with the PACE Act and any such other applicable law. To the extent that the PACE Act provides for additional or more restrictive requirements not otherwise found in this article or applicable law, the provisions of the PACE Act must be met. To the extent that this article provides for more restrictive or additional requirements not found in the PACE Act or any such other applicable law, the provisions of this article are intended to apply. Sec. 40-210. PACE Program Authorization. The County hereby ratifies and confirms its intent that the District is and shall continue to be the sole PACE local government authorized to provide a PACE program and related services in the County (other than municipalities which have opted out of the District), unless otherwise agreed upon and consented to by the District and/or the County in a PACE interlocal agreement expressly authorizing a PACE local government other than the District to provide such PACE program and services. Upon entering into a PACE interlocal agreement with the County, any such PACE local government shall be authorized to administer a PACE program pursuant to F.S. § 163.08, the terms of this article as may be amended from time to time, the PACE interlocal agreement and other regulations adopted by the board within the District. The determination as to whether to grant such authorization and to enter into any such PACE interlocal agreement shall be in the sole discretion of the District. Sec. 40-211. Applicability. The consumer protections and disclosure requirements set forth herein shall apply to any PACE funding occurring in St. Lucie County, regardless of whether the program is administered by the County, the District, a PACE local government other than the District where so authorized by PACE interlocal agreement, or any PACE administrator. The adoption of uniform consumer protections applicable to all Page 28 of 42 Draft: 07/27/23 8 PACE funding in the County is in the best interests of, and is necessary for protection of, the property owners and citizens of St. Lucie County. Sec. 40-212. PACE program standards. At a minimum, PACE local governments shall comply with each of the following standards and include the following requirements: (1)Qualifying improvements. All qualifying improvements shall be properly permitted (where applicable) and must comply with Florida and local codes. PACE local governments shall finance only qualifying improvements that are permanently affixed to the property. (2)Licensed contractors. Any contractor constructing or installing a qualifying improvement shall be properly licensed and insured, and authorized by the PACE local government as a PACE contractor. (3)Materials and improvements. PACE local governments shall fund, and PACE contractors shall construct or install, only qualifying improvements. PACE local governments shall establish an "eligible measures list" that identifies the types and specifications of qualifying improvements, using efficiency standards for materials and installation established by the U.S. Department of Energy, the U.S. Environmental Protection Agency, or Florida state agencies, or independent third-party expert rating entities, as applicable. Any solar photovoltaic system financed under a PACE program must have an online monitoring system for maintenance and production monitoring purposes unless the property owner declines the monitoring system in writing. The eligible measures list shall be regularly updated and made publicly available. The county shall have the right to review and approve that list annually. (4)Data security and consumer privacy. PACE local governments shall take security measures to protect the security and confidentiality of consumer records and information to the extent permitted or mandated by law. In addition, a privacy policy must be in place that complies with state and federal law and, in particular, shall provide a property owner the ability to opt-out of having the property owner's information shared with third parties, except where expressly permitted or required by state or federal law. (5)Contractor pricing. Within six months of entering into a PACE interlocal agreement, PACE local governments shall have in place pricing rules and enforcement mechanisms to ensure property owners are protected from excessive or unjustified prices and charges of PACE contractors. (6)Estimated energy savings disclosure. PACE local governments shall require that PACE contractors inform eligible participants of the following: a. Where applicable, an estimate of energy and/or insurance cost savings, including the range of efficiency options if appropriate, to the best of the PACE contractors' knowledge and using industry best practices; b. Available rebates or incentives; c. The benefits of installing energy efficiency improvements before renewable energy to reduce costs overall; d. The benefits of a full energy audit of their property, names or websites of energy audit professionals qualified through the Building Performance Institute, Association of Energy Engineers, or other comparable program, and any available incentive programs associated with a qualifying improvement; Page 29 of 42 Draft: 07/27/23 9 e. That the actual potential energy savings and/or insurance cost savings will depend on usage patterns, seasonal variation and weather, insurance or utility rates and trends and product specifications; f. That any tax incentives, credits or rebates should be confirmed and discussed with an independent tax professional of the eligible participant's choosing if there are any tax questions; and g. Costs of the energy audit are eligible for financing as part of the assessment. This estimated energy savings disclosure requirement shall be included in the "code of conduct" and in training for PACE contractors. (7)Notice to property owner. Prior to or contemporaneously with entering into a PACE financing agreement, PACE local governments shall provide the property owner with a written notice disclosing the following items: a. The total amount of the debt, including interest; b. The maximum annual PACE assessment and payment term that does not exceed the expected useful life of the improvements or 20 years, whichever is less; c. A three-day right to cancel the PACE financing agreement; d. That the PACE assessment will appear on the property owner's tax bill; e. That the PACE assessment will be collected in the same manner as real estate taxes, that failure to pay the PACE assessment may cause a tax certificate to be issued against the property, and that failure to pay may result in the loss of property subject to the PACE assessment, including homestead property, in the same manner as failure to pay property taxes; f. That the installation of qualifying improvements and PACE assessment may or may not affect the overall market value of the property or energy cost savings; g. That all applicable warranties or guarantees terms are set forth in writing, and what materials or labor are not warrantied or guaranteed for each qualifying improvement; h. That the PACE assessment may affect the sale or refinance of the property; i. The right of prepayment without penalty; j. That the property owner may be required to pay any PACE assessment in full at the time of refinance or sale of the property; and k. That if the property owner is using an escrow or impound account to pay their property taxes, they should contact their lender immediately to ensure that the escrow payments are adjusted correctly and the property owner is aware of and prepared for the increased payment amount. The notice shall be signed and dated by the property owner to acknowledge that they understand these conditions. The PACE local government shall record, or cause to be recorded, the notice in the public records as an attachment to the PACE financing agreement. The signature page must clearly designate that it relates to the PACE financing agreement and notice to property owner acknowledgement. In the alternative, the foregoing notice provisions may be incorporated into the recorded financing agreement or summary memorandum of financing agreement relating to the PACE assessment. (8)PACE financing agreement. After achieving compliance with all other mandated steps provided for by law, including but not limited to receiving a verified copy or other proof of such notice required by F.S. § 163.08(13), the PACE local government shall enter into a voluntary written agreement with each eligible participant. Such agreement, or supporting documentation referenced within such agreement and attached thereto, must include, at a minimum, the following: Page 30 of 42 Draft: 07/27/23 10 a. The full legal description of the property subject to the PACE assessment. b. The amount of funding to be provided to the eligible participant. c. Express voluntary consent by the eligible participant to accept the non-ad valorem assessment collection process, set forth in F.S. § 197.3632. d. The length of time for the eligible participant to pay the non-ad valorem assessment, which shall not exceed the expected useful life of the most costly qualifying improvement(s) funded by the PACE program (based on certification or other documentation provided by the manufacturer of the qualifying improvement) , or 20 years, whichever is less. e. The eligible participant shall be responsible for verifying that the qualifying improvements are completed as reflected in the approved application documents. The eligible participant also consents to providing access to the PACE local government or its agent to the property to verify that the qualifying improvements have been completed as proposed in the application. f. At or before the execution of a contract for the sale and purchase of any property for which a non-ad valorem assessment for the PACE program has been levied and has an unpaid balance due, the seller shall give the prospective purchaser a notice of the lien in accordance with F.S. § 163.08(14). g. The risks associated with participating in the PACE program shall be clearly disclosed in plain language in the written agreement with the eligible participant, including risks related to the failure of the eligible participant to make payments, the risk that they may not be able to refinance the property or sell the property unless the PACE assessment is paid off in full first, and the risk of issuance of a tax certificate and loss of the property pursuant to F.S. ch. 197. h. Description of the qualifying improvements, their cost, and estimated completion date. i. Notice of the non-ad valorem assessment shall be recorded in the public records for the property. j. The PACE financing agreement shall clearly disclose, in plain language, the interest rate to be charged, including points, as well as any and all fees or penalties that may be separately charged to the eligible participant, including potential late fees. The subsequent charging or collecting any additional fees that were not specifically disclosed in the written agreement with the property owner shall be prohibited. (9) The PACE local government shall record, or cause to be recorded, the following notice in the public records within five days after execution of the PACE financing agreement, along with appropriate PACE local government contact information for property owner inquiries: QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, OR WIND RESISTANCE. This property is located within the jurisdiction of a PACE local government that has placed an assessment on the property pursuant to Section 163.08, Florida Statutes. The assessment is for a qualifying improvement to the property relating to energy efficiency, renewable energy or wind resistance, and is not based on the value of property. You are encouraged to contact the county property appraiser's office to learn more about this and other assessments that may be provided by law. (10)Financing. The PACE local government may offer only fixed simple interest rates and payments that fully amortize the obligation. Variable or negative amortization financing terms are not permitted. Capitalized interest included in the original balance of PACE financing does not constitute negative amortization. Page 31 of 42 Draft: 07/27/23 11 (11)Project completion. The PACE local government shall require compliance with each of the following conditions prior to the issuance of any payment to a PACE contractor for which a property will be assessed: a. PACE contractor and property owner has certified in writing that any necessary permits have been obtained and any necessary inspections have been completed to close out any such permits; b. Verification that the qualifying improvements have been constructed or installed; and c. The property owner and the PACE contractor have signed a certificate of completion that all improvements have been installed to the property owner's satisfaction. (12)Lender notification. The PACE local government shall ensure that the property owner provides notice to the holders or loan servicers of any existing mortgages encumbering or otherwise secured by the property of the owner's intent to enter into a PACE assessment that, at a minimum satisfies the requirements of F.S. § 163.08(13). (13)PACE contractor management. Each PACE local government shall: a. To the extent possible, conduct outreach to and enroll local contractors as PACE contractors; b. Establish a "code of conduct" that sets standards for PACE contractors such as licensing, advertising and marketing, accurate representation of the program, and consumer protections; c. Have and shall strictly enforce anti-kickback policies and procedures that prohibit direct or indirect financial or other monetary incentives to PACE contractors in exchange for or related to such PACE contractor being awarded work under a PACE program, excepting payment for the PACE contractor's construction or installation of eligible improvements; d. Train all PACE contractors on the regulations related to the PACE program and the code of conduct; e. Ensure that all PACE contractors hold necessary licenses and insurance; f. Confirm PACE contractor qualifications at least annually and as necessary based upon consumer complaints or other indications of lack of compliance; and g. Remove PACE contractors from the PACE program who no longer meet program criteria, have not met program requirements, or fail to resolve consumer complaints. (14)Customer service. PACE local governments or their PACE administrators shall provide customer service, including: a. Access to customer service representatives by email and phone during normal business hours (not less than 9:00 a.m. to 5:00 p.m. Monday through Friday excluding holidays); b. A detailed website with specific reference to the PACE program offered in the District; c. A transparent customer feedback and complaint process with quick response and resolution by both the PACE contractor and the PACE local government or PACE administrator as applicable. 1. A document outlining a complaint process shall be clearly available on the PACE local government or PACE administrator's website and provided to customers. 2. For PACE programs administered by PACE local governments other than the District, the document shall make clear that neither the District nor the County are operating or administering the PACE program in any way and that all concerns about the program should be addressed directly to the PACE local government, with clear contact information provided. Page 32 of 42 Draft: 07/27/23 12 3. All complaints and resolutions shall be logged, with the following information at a minimum: date and time of complaint, customer and PACE contractor information, details of complaint, when and what actions were taken by both the PACE local government or PACE administrator, and the PACE contractor, and final resolution. 4. All disputes and complaints shall be investigated, and resolved in a timely manner. Reports of the number of complaints received, time until resolution of each complaint, and method of resolution of each complaint shall be provided to the County annually. (15)Marketing and communications. a. Marketing practices for a PACE local government that are or could appear to be unfair, deceptive, abusive, or misleading, or that violate applicable laws or regulations, that are inappropriate, incomplete or are inconsistent with the PACE local government's purpose are prohibited. b. Neither PACE local governments (other than the District) nor their PACE administrators or PACE contractors, shall use facsimiles of the County, city, property appraiser, or tax collector logos in their marketing materials. Marketing materials shall not state that PACE: 1. Is a free program; 2. Is a county or city program; 3. Does not involve a financial obligation by the property owner; or 4. Is a form of public assistance. (16)Protected classes. No PACE local government, PACE administrator, nor PACE contractor shall discriminate against individuals on the basis of race, color, ancestry, disability, national origin, religion, age, familial status, marital status, sex, gender, sexual orientation, gender identity and expression, or genetic information. (17)Metrics reporting. After not more than one year from the date of adoption of this ordinance, PACE local governments shall track program metrics and report those metrics to the County and any participating municipalities, by jurisdiction and in total, at least quarterly, in spreadsheet format or another electronic format agreed upon by the County. Those metrics shall include, at a minimum: a. Dates of the reporting period; b. List of PACE projects (including municipal jurisdiction, financed amount, interest rate, assessment duration, and project description) started during the reporting period, separated by building type (e.g. retail, office, industrial, etc.); c. List of PACE projects (including municipal jurisdiction) completed during the reporting period, separated by building type project (e.g. retail, office, industrial, etc.), specifying: 1. The qualifying improvements made; 2. Project start date and completion date; 3. The projected energy savings and/or amount of potential renewable energy to be generated; 4. Financial information such as cost per kilowatt hour saved/generated associated with the projected energy savings and/or amount of potential renewable energy to be generated; 5. Other resource savings if data is available; and 6. Energy audits performed detailing the audit results, if applicable to the project; Page 33 of 42 Draft: 07/27/23 13 d. Number of actual or estimated jobs created during the reporting period, including, if available, local versus non-local jobs and permanent versus temporary jobs; e. Number of applications declined during the reporting period; f. Unresolved complaints and/or contractor issues and status; g. PACE assessment defaults and tax certificates issued on properties subject to PACE assessment (updated annually); and h. All data included in the reports must be developed and collected using standardized and verified principles and methodologies for the industry. The methodologies and supporting assumptions and/or sources must be made available to the county by the PACE local government. It is the responsibility of the PACE local government to test and verify the data collection and reporting methods and models used. All reports shall include only aggregate data, excluding any nonpublic personal information. (18)Amendments. The County reserves the right to amend this article to revise PACE program standards. It is the obligation of the PACE local governments to remain abreast of and comply with all changes in applicable law, including changes to this ordinance made at public hearings. (19)Reporting. PACE local governments will respond to County requests for information on the PACE program in a timely manner and shall provide sufficient documentation as requested by the County to ensure that the requirements of this article and the state statutes are being met. The PACE local government shall retain sufficient books and records demonstrating compliance with the agreement and state and county requirements for a minimum period of seven years from the initial date of each non-ad valorem assessment, and shall allow County representatives access to such books and records upon request. Sec. 40-213. Eligible participants. In order to be an eligible participant, a property owner (or property) must meet the criteria listed below. The PACE local government is responsible for verifying that all of these conditions are met. (1) Be the legal owner of the property and provide proof of ownership in the application for the PACE program; (2) Property must be within District boundaries; (3) All property taxes and any other assessments levied on the same bill as property taxes are paid and have not been delinquent for the preceding three years or the property owner's period of ownership, whichever is less; (4) Property owner must be current on any mortgage on the subject property; (5) Property owner cannot be in bankruptcy nor can the property be an asset in any bankruptcy proceeding; (6) Property cannot have any federal income tax lien, judgment lien or similar involuntary lien, including construction liens, encumbering it; and (7) No notices of default or other evidence of property-based debt delinquency on the property have been recorded during the preceding three years or the property owner's period of ownership, whichever is less. Sec. 40-214. Ability to Pay Determination. Page 34 of 42 Draft: 07/27/23 14 Prior to approving a financing agreement for the financing of qualifying improvements on single family residential property, the PACE administrator shall make a good faith determination that the property owner has a reasonable ability to pay the annual payment obligations for the PACE assessment. Such determination shall be made based on the property owner’s current income, assets, and debt obligations as follows. (A) property owner applications shall include current monthly household income and current monthly housing expenses. (i) Housing expenses include: (a) All mortgage principal and interest payments; (b) Property insurance; (c) Property taxes; (d) Mortgage guaranty insurance; and (e) Other preexisting fees and assessments on the property. (ii) Household income includes: (a) Income of mortgagor on the assessed property. (b) Income may include the income of any persons 18 years of age or older who are on the title of the property. (c) The determination may also utilize the income of a property owner’s legal spouse through marriage or domestic partnership who is not on title to the assessed property. Any spouse or domestic partner who is not on title to the property shall consent, in writing, to the inclusion of his or her income and to the verification of his or income. (iii) For any person whose income is considered, the PACE administrator shall also consider their debt obligations which may be verified by the PACE administrator through a credit report. (iv) In evaluating current income, assets and debt obligations of the property owner, the PACE administrator shall not consider the equity of the assessed property. (v) The PACE administrator shall determine and consider the current or reasonably expected income or assets of the property owner using reasonably reliable third-party records of the property owner’s income or assets, which may include but are not limited to: (1) A pay stub showing the most recent 30-day pay period or financial institution records showing regular deposits consistent with reported income for the most recent 60 days. (2) Copies of the most recent tax returns the property owner filed with the Internal Revenue Service. Page 35 of 42 Draft: 07/27/23 15 (3) Copies of the most recent Internal Revenue Service Form W-2 (Wage and Tax Statement), or other similar Internal Revenue Service forms that are used for reporting wages or tax withholding. (4) Payroll statements, including the Department of Defense Leave and Earnings Statement (LES). (5) Financial institution records, such as bank statements or investment account statements reflecting the value of particular assets. (6) Records from the property owner’s employer or a third party that obtained income information from the employer. (7) Records from a federal, state, or local government agency stating the property owner’s income from benefits or entitlements. Income from benefits paid by a government entity shall not include any benefits for which the recipient must satisfy a means test or any cash equivalent nonmonetary benefits, such as food stamps. (vi) Income may not be derived from: (1) Temporary sources of income. (2) Nonliquid assets. (3) Proceeds derived from the equity from the assessed property. (vii) Monthly debt obligations that shall be considered by the PACE administrator include, but are not limited to: (1) All secured and unsecured debt. (2) Alimony. (3) Child support. (4) Monthly housing expenses. If property tax and insurance obligations are not included in a property owner’s escrow, the PACE administrator shall use reasonably reliable methods to determine these obligations. (viii) In calculating the ability of the property owner to pay the annual payment obligations, the PACE administrator shall determine that the property owner’s income is sufficient to meet: (1) Payment of the PACE assessment, including all interest and fees. (2) Any mortgage payments, as defined by the higher of the property owner’s self-reported housing payment or housing expenses. (3) All existing debts and obligations. (4) Sufficient residual income to meet basic household living expenses, defined as expected expenses which may be variable based on circumstances and consumption patterns of the Page 36 of 42 Draft: 07/27/23 16 household. The PACE administrator may make reasonable estimation of basic living expenses based on the number of persons in the household. Examples of basic living expenses include, but are not limited to, the following: (a) Food and other necessary household consumables. (b) Transportation costs to work or school, including fuel costs, auto insurance and maintenance costs, and public transit costs. (c) Utilities expenses for telecommunication, water, sewage, electricity, and gas. (ix) In the event the PACE administrator is unable to make a reasonable good faith determination that the property owner has a reasonable ability to pay the annual payment obligations for the PACE assessment, then the application submitted by such property owner shall be denied. (x) Notwithstanding a determination by the PACE administrator that the property owner has a reasonable ability to pay the annual payment obligations for the PACE assessment, the PACE administrator shall not be held liable for any delinquency or default by the property owner with respect to the owner's payment obligations under the applicable Financing Agreement. Sec. 40-215. Recordation. Any financing agreement entered into or a summary memorandum of such agreement between the eligible participant and the PACE local government shall be recorded in the public records of the County within five days after execution of the agreement pursuant to F.S. § 163.08(8). The recorded agreement or summary memorandum of such agreement shall provide constructive notice that the assessment to be levied on the property constitutes a lien of equal dignity to county taxes and assessments from the date of recordation. Sec. 40-216. Notice to purchaser. (1) Property owners must comply with F.S. § 163.08(14) regarding providing a written disclosure statement to a prospective purchaser. (2) Failure to provide the notice referenced above to a purchaser of the property shall have no effect on either the validity of any PACE assessment or any obligation of a property owner. Sec. 40-217. Suspension or termination. In the event any PACE local government fails to abide by the provisions of this article and the PACE interlocal agreement, following 60-day notice to cure, the Board, in its sole discretion, may suspend or terminate the PACE interlocal agreement and the PACE local government shall have no authority to continue with any new projects within the District. Notwithstanding termination of the PACE interlocal agreement, however, property owners whose applications were approved prior to the termination date, and who received funding through the PACE program, shall continue to be a part of the PACE program, for the sole purpose of paying their outstanding assessment payments, until such time that all outstanding assessment payments have been satisfied. Page 37 of 42 Draft: 07/27/23 17 Secs. 40-218—40-237. - Reserved. SECTION 2. Codification. County staff is hereby authorized and directed to codify, include and publish the provisions of this Ordinance within the County Code. The provisions of this Ordinance may be renumbered or re-lettered and the word "ordinance" may be changed to "section," "article" or other appropriate word whenever necessary or convenient to accomplish such codification. SECTION 3. Severability. In the event that any portion or section of this Ordinance is determined to be invalid, illegal or unconstitutional by a court of competent jurisdiction, such decision shall in no manner affect the remaining portions or sections of this Ordinance which shall remain in full force and effect. SECTION 4. Effective Date. This Ordinance shall take effect immediately after its adoption. SECTION 5. Adoption. After motion and second, the vote on this ordinance was as follows: Linda Bartz, Chair ______ Jamie Fowler, Vice Chair ______ Chris Dzadovsky, Commissioner ______ Larry Leet, Commissioner ______ Cathy Townsend, Commissioner ______ PASSED AND DULY ADOPTED by the Board of County Commissioners Sustainability District of St. Lucie County, Florida, this _______ day of __________________, 2023. BOARD OF COUNTY COMMISSIONERS SUSTAINABILITY DISTRICT ATTEST: ST. LUCIE COUNTY, FLORIDA _________________________ BY: ___________________________ Deputy Clerk Chair APPROVED AS TO FORM AND CORRECTNESS: BY: ___________________________ County Attorney Page 38 of 42 Page 39 of 42 Order Amount Tax Amount Total Order Amount Payment Method Order Payment Amount Order Amount Due ST LUCIE COUNTY ATTO 2300 VIRGINIA AVE FORT PIERCE FL 34982--563 $0.00 $246.24 $0.00 $246.24 AD#Account $246.241313427 Invoice0005782418 Sales Rep: jrohde Order Taker: jrohde 07/25/2023Order Created End DateStart Date# InsProduct Column Lines 08/04/2023 08/04/2023 1TCN-St Lucie News Tribune 1.00 144 * ALL TRANSACTIONS CONSIDERED PAID IN FULL UPON CLEARANCE OF FINANCIAL INSTITUTION Page 40 of 42 Text of Ad: 07/25/2023 Page 41 of 42 Page 42 of 42