Res 24-12ON NO. 24 -12
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, EXPRESSING THE CITY'S SUPPORT
AND INTENTION TO CREATE WITHIN THE CITY, THE
"FLORIDA GREEN ENERGY WORKS PROGRAM" A VOLUNTARY
PROGRAM PROVIDING INTERESTED PROPERTY OWNERS WITH
THE OPPORTUNITY TO FINANCE ENERGY EFFICIENCY
IMPROVEMENTS ON THEIR PROPERTY BY REPAYMENT
THROUGH NON -AD VALOREM ASSESSMENTS ON THEIR
PROPERTY TAX BILL; AUTHORIZING THE MAYOR OF DELRAY
BEACH TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE
FLORIDA GREEN FINANCE AUTHORITY FOR ADMINISTRATION
OF THE FLORIDA GREEN ENERGY WORKS PROGRAM IN THE
CITY OF DELRAY BEACH; PROVIDING AN EFFECTIVE DATE;
AND FOR OTHER PURPOSES.
WHEREAS, home and business energy consumption accounts for a large portion of the overall
usage of energy in a community; and
WHEREAS, there is a vast quantity of existing structures with many years of remaining life before
replacement, and these structures are not as energy efficient as today's standards, not do many existing
buildings have renewable energy systems installed to provide some or all of their electric energy needs and
many buildings are in need of improvements to protect them against damage from storm events; and
WHEREAS, installing energy efficiency, renewable energy and wind resistance improvements on
existing structures can provide significant progress towards increased energy conservation and protection of
properties in the City and statewide; and
WHEREAS, the upfront costs of these improvements are a hurdle to installing them and existing
financing options may be insufficient for property owners to access cost - effective financing for energy -
saving or wind- resistance property improvements due to requirements associated with traditional debt or
equity financing options; and
WHEREAS, the expected life of energy efficiency, renewable energy or wind resistance projects
may require a longer term payback period than offered by traditional financing, which may necessitate
alternative options to fund installation of the improvements; and
WHEREAS, local governments within Florida and nationally have either formed, or are
contemplating the formation of, programs to provide alternative financing options allowing a property
owner to voluntarily finance energy efficiency and renewable energy improvements through non -ad valorem
assessments repaid through their property taxes; and
e State of orida has declared it the public policy of the State to develop energy
management programs aimed at promoting energy conservation and protecting properties from wind
damage; and
WHEREAS, the financing provided to these participating property owners will be repaid though
non -ad valorem assessments levied on their property tax bills and only those property owners who want to
participate will be levied the assessments; and
WHEREAS, the benefits of these energy financing programs include improved air quality, lowered
fossil fuels use, creating energy independence and security, promoting the creation of jobs and economic
development by stimulating "green industries" and saving citizens money by reducing energy consumption;
and
WHEREAS, Section 163.08, F.S. authorizes local governments in Florida to either form
individually, or in partnership with other local governments, programs to allow property owners to
voluntarily finance energy efficiency, renewable energy or wind resistance improvements; and
WHEREAS, the Town of Lantana has formed the Florida Green Energy Works program which is
an energy financing program created pursuant to Section 163.08, F.S.; and
WHEREAS, other local governments in the State are able to partner in the Florida Green Energy
Works program by executing an Interlocal Agreement creating the Florida Green Finance Authority to
administer the program, thus eliminating the costs and reducing the efforts to form an energy financing
program by individual local governments; and
WHEREAS, the Florida Green Finance Authority is already creating the financing, levy and
collection process to implement the Florida Green Energy Works program through the local government
partners; and
WHEREAS, the Florida Green Energy Works program will provide significant benefits including
property owner cost savings, enhancing property values, economic development and job opportunities and
the City of Delray Beach believes that it is in the best interests of the health, safety and welfare of its citizens
to participate in the program and authorize the City Manager and City Attorney to finalize the Interlocal
Agreement creating the Florida Green Finance Authority and begin the steps to create the Florida Green
Energy Works program in the City of Delray Beach.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, THAT:
Section 1. The above declarations are true and accurate, and are incorporated herein.
Section 2. The City Commission of Delray Beach, a municipal corporation, hereby authorizes
2 RES. NO. 24-12
participation in the Florida Green Finance Authority to implement the Florida Green Energy Works
program.
- Section 3. The City Commission hereby directs the City Manager and City Attorney to finalize the
Interlocal Agreement with the Florida Green Finance Authority, and further authorizes the Mayor of Delray
Beach to execute the Interlocal Agreement on behalf of the City.
Section 4. The City Commission hereby directs that the City Manager and City Attorney to begin
creating the levy and collection process for the voluntary non -ad valorem assessments with the Florida
Green Finance Authority and Palm Beach County Property Appraiser and Tax Collector.
Section 5. This Resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED in regular session on thT-OSO4
ay of �� , 2012.
MA R
ATTEST:
City Clerk
3 RES. NO. 24 -12
Coversheet
MEMORANDUM
TO: Mayor and City Commissioners
FROM: Richard J. Reade, Sustainability Officer/Public Information Officer
THROUGH: David T. Harden, City Manager
DATE: May 11, 2012
Page 1 of 3
SUBJECT: AGENDA ITEM 8.M. - REGULAR COMMISSION MEETING OF JUNE 19.2012
RESOLUTION NO.24- 12/INTERLOCAL AGREEMENUTHE FLORIDA GREEN FINANCE
AUTHOMY/TOWN OF LANTANA/TOWN OF MANGONIA PARK: P.A.C.E.
ITEM BEFORE COMMISSION
Resolution No. 24 -12, authorizing an Interlocal Agreement with the Town of Lantana and the Florida
Green Finance Authority to administer and implement a micro -loan program that enables property
owners to voluntarily finance energy efficiency improvements to be repaid through a non -ad valorem
assessment on their annual property tax bill.
BACKGROUND
I n 2010, the Florida Legislature approved F.S. Section 163.08 authorizing the creation of Property
Assessed Clean Energy (PACE) programs and authorizing local governments in Florida to either form
programs individually or in partnership with other local governments, to allow property owners to
voluntarily finance the installation of renewable energy, energy efficiency improvements and wind
resistance improvements on residential, commercial and industrial buildings. By voluntarily
participating in this program, property owners pay an assessment over the functional life of the
improvement as an on -going assessment on property tax bills (up to 20 years).
PACE is unique because it:
* Creates desperately needed local jobs
* Uses private capital, not taxes or government subsidies
* Saves money for building owners and increases property values
* Is voluntary — not a government mandate
* Promotes energy security without driving up energy costs
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* Avoids the need to build costly new power plants
* Is transferable to subsequent property owners upon sale
The City of Delray Beach has been provided with the opportunity to participate in the "Florida Green
Energy Works" PACE program, which was developed by the Town of Lantana with stimulus grant
funding that was received by the Greater Lake Worth (now Central Palm Beach) and Greater Boynton
Beach Chambers of Commerce. In an effort to provide an administrative entity and to streamline
program costs (Cities would not be required to create their own individual PACE programs), the Florida
Green Finance Authority was developed by the participating cities. The Authority was formed by Inter -
local agreement as a separate legal entity and pursuant to Florida law and will serve as the financing
agency, thus there is no obligation for City financing or contributions.
Essentially, this program is a voluntary micro -loan program that enables property owners to finance
qualified energy conservation improvements within their property(ies) that they may otherwise not be
able to afford. After the applicant goes through an approval process and receives financing, they hire
their own contractor and complete the project. Following this process, the Palm Beach County Property
Appraiser will levy a non -ad valorem assessment on this property to repay the financing through the
annual property tax bill. Even though the property owner's taxes increase from the voluntary non -ad
valorem assessment, the end result is that the property owner will realize reduced monthly utility bills
that would assist in repaying/offsetting the loan. In addition, all costs are tied to the property, thus, if
sold, the non -ad- valorem assessment will continue with the property until all costs are paid.
If the City were to participate in this program, there would be a number of expected benefits, including:
* Promotes Green and Sustainability within City
* Provides long term and safe financing for property owners to develop energy and water
efficiency improvements that they may otherwise not be able to afford
* Promotes and funds economic development opportunities and activities
* Increasejobs
* Increase in building and construction permits and fees — higher City revenues
* Increase in property valuations and ad- valorem revenues
* Increase in Tax Increment Financing (TIF) funding
* Reduce environmental impacts (i.e., Greenhouse Gas Emissions) generated within City
* No City staff requirement
* No cost to the City to participate in the program
At this time, due to issues related to residential lending requirements, the proposed PACE program
would initially provide funding to commercial properties only. However, residential properties will be
eligible to participate in this program once these federal residential lending issues are resolved.
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By entering into this program, the City would not be required to provide any City staff or funding
provided the City remains a member for at least 2 consecutive years. Please note that if the City were to
opt out of the program prior to the completion of 2 years, a fee of not more than $17,500 (pro -rated if
opt -out occurs during the second year) will be applied.
To date, the Florida Green Energy Works includes three (3) local municipalities — the Town of Lantana,
the Town of Mangonia Park and the City of West Palm Beach. In addition, a number of local
governments within Palm Beach County and around the state are considering a PACE program for their
community.
Joining this PACE program would assist in stimulating economic activity and serve to meet a core
recommendation in developing a comprehensive Economic Development program within the City. In
fact, this tool would contribute to the Delray Beach Economic Development Fund
and serve as a sustainabililty incentive(s) for new and existing businesses.
The Florida Green Energy Works PACE program would enable the City to meet the Green Task Force's
recommendation to "Develop Incentives for Green Redevelopment" (2009 Recommendations Report).
RECOMMENDATION
Recommend that the City Commission approve Resolution No. 24 -12 authorizing the City to enter into
the Florida Green Energy Works program, which will make PACE financing options available to
commercial property owners located in the City of Delray Beach.
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RESOLUTION NO, 24-12
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, EXPRESSING THE CITY'S SUPPORT
AND INTENTION TO CREATE WITHIN THE CITY, THE
"FLORIDA GREEN ENERGY WORKS PROGRAM" A VOLUNTARY
PROGRAM PROVIDING INTERESTED PROPERTY OWNERS WITH
THE OPPORTUNITY TO FINANCE ENERGY EFFICIENCY
IMPROVEMENTS ON THEIR PROPERTY BY REPAYMENT
THROUGH NON -AD VALOREM ASSESSMENTS ON THEIR
PROPERTY TAX BILL; AUTHORIZING THE MAYOR OF DELRAY
BEACH TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE
FLORIDA GREEN FINANCE AUTHORITY FOR ADMINISTRATION
OF THE FLORIDA GREEN ENERGY WORKS PROGRAM IN THE
CITY OF DELRAY BEACH; PROVIDING AN EFFECTIVE DATE;
AND FOR OTHER PURPOSES.
WHEREAS, home and business energy consumption accounts for a large portion of the overall
usage of energy in a community; and
WHEREAS, there is a vast quantity of existing structures with many years of remaining life before
replacement, and these structures are not as energy efficient as today's standards, nor do many existing
buildings have renewable energy systems installed to provide some or all of their electric energy needs and
many buildings are in need of improvements to protect them against damage from storm events; and
WHEREAS, installing energy efficiency, renewable energy and wind resistance improvements on
existing structures can provide significant progress towards increased energy conservation and protection of
properties in the City and statewide; and
WHEREAS, the upfront costs of these improvements are a hurdle to installing them and existing
financing options may be insufficient for property owners to access cost - effective financing for energy-
saving or wind- resistance property improvements due to requirements associated with traditional debt or
equity financing options; and
WHEREAS, the expected life of energy efficiency, renewable energy or wind resistance projects
may require a longer term payback period than offered by traditional financing, which may necessitate
alternative options to fund installation of the improvements; and
WHEREAS, local governments within Florida and nationally have either formed, or are
contemplating the formation of, programs to provide alternative financing options allowing a property
owner to voluntarily finance energy efficiency and renewable energy improvements through non -ad valorem
assessments repaid through their property taxes; and
WHEREAS, the State of Florida has declared it the public policy of the State to develop energy
management programs aimed at promoting energy conservation and protecting properties from wind
damage; and
WHEREAS, the financing provided to these participating property owners will be repaid though
non -ad valorem assessments levied on their property tax bills and only those property owners who want to
participate will be levied the assessments; and
WHEREAS, the benefits of these energy financing programs include improved air quality, lowered
fossil fuels use, creating energy independence and security, promoting the creation of jobs and economic
development by stimulating "green industries" and saving citizens money by reducing energy consumption;
and
WHEREAS, Section 163.08, F.S. authorizes local governments in Florida to either form
individually, or in partnership with other local governments, programs to allow property owners to
voluntarily finance energy efficiency, renewable energy or wind resistance improvements; and
WHEREAS, the Town of Lantana has formed the Florida Green Energy Works program which is
an energy financing program created pursuant to Section 163.08, F.S.; and
WHEREAS, other local governments in the State are able to partner in the Florida Green Energy
Works program by executing an Interlocal Agreement creating the Florida Green Finance Authority to
administer the program, thus eliminating the costs and reducing the efforts to form an energy financing
program by individual local governments; and
WHEREAS, the Florida Green Finance Authority is already creating the financing, levy and
collection process to implement the Florida Green Energy Works program through the local government
partners; and
WHEREAS, the Florida Green Energy Works program will provide significant benefits including
property owner cost savings, enhancing property values, economic development and job opportunities and
the City of Delray Beach believes that it is in the best interests of the health, safety and welfare of its citizens
to participate in the program and authorize the City Manager and City Attorney to finalize the Interlocal
Agreement creating the Florida Green Finance Authority and begin the steps to create the Florida Green
Energy Works program in the City of Delray Beach.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, THAT:
Section 1. The above declarations are true and accurate, and are incorporated herein.
Section 2. The City Commission of Delray Beach, a municipal corporation, hereby authorizes
2 RES. NO, 24-12
participation in the Florida Green Finance Authority to implement the Florida Green Energy Works
program.
Section 3. The City Commission hereby directs the City Manager and City Attorney to finalize the
Interlocal Agreement with the Florida Green Finance Authority, and further authorizes the Mayor of Delray
Beach to execute the Interlocal Agreement on behalf of the City.
Section 4. The City Commission hereby directs that the City Manager and City Attorney to begin
creating the levy and collection process for the voluntary non -ad valorem assessments with the Florida
Green Finance Authority and Palm Beach County Property Appraiser and Tax Collector.
Section 5. This Resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED in regular session on the _ day of 2012.
ATTEST:
City Clerk
MAYOR
3 RES. NO. 24 -12
INTERLOCAL AGREEMENT
BETWEEN
THE FLORIDA GREEN FINANCE AUTHORITY,
THE TOWN OF LANTANA,
AND THE TOWN OF MANGONIA PARK
This Interlocal Agreement (the "Agreement ") is entered into between the Town of
Lantana, Florida, a Florida municipal corporation ( "Lantana ") and the Town of Mangonia Park,
Florida, a Florida municipal corporation, ( "Mangonia Park ") (together the "Originating Parties ");
and the Florida Green Finance Authority (the "Authority ").
RECITALS
WHEREAS, Section 163.01, F.S., the "Florida Interlocal Cooperation Act of 1969,"
authorizes local government units to enter into interlocal agreements for their mutual benefit; and
WHEREAS, the Lantana and Mangonia Park desire to enter into this Interlocal
Agreement in order to establish the Florida Green Finance Authority as a means of implementing
and financing a qualifying improvements program for energy conservation and efficiency
improvements, and to provide additional services consistent with law; and
WHEREAS, Section 163.08, F.S., provides that a local government may finance
"qualifying improvements," including the type of improvements sought to be provided through
this Agreement, via the levy and collection of voluntary non -ad valorem assessments on
improved property; and
WHEREAS, Sections 170.01, and 170.201, F.S. provide for supplemental and
alternative methods of making local municipal improvements, including the type of "qualifying
improvements" sought to be provided by this Agreement; and
WHEREAS, pursuant to Sections 163.08, 170.0 1, and 170.201, F.S. and this Agreement,
Lantana has created a "qualifying improvements" program entitled "Florida Green Energy
Works "; and
WHEREAS, Section 163.01(7), F.S., allows for the creation of a "separate legal or
administrative entity" to carry out the purposes of an interlocal agreement for the mutual benefit
of the governmental units, and provide for parties to the agreement to administer the agreement;
and
WHEREAS, pursuant to Section 163.01(4), F.S. a public agency of this state may
exercise jointly with any other public agency of the state, any power, privilege or authority
which such agencies share in common and which each might exercise separately, and the Parties
to this Agreement have legislative authority over property within their jurisdictional boundaries;
and
WHEREAS, Section 166.021, F.S., authorizes Lantana and any other municipalities to
exercise any power for municipal purposes, except when expressly prohibited by law, and
Section 125.01 F.S. grants counties the power to carry on county government to the extent not
inconsistent with general or special law; and
WHEREAS, Section 163.08, F.S., provides that property retrofitted with energy- related
"qualifying improvements" receives a special benefit from reduced energy consumption, benefits
from the reduced potential for wind damage and assists in the fulfillment of the state's energy
and hurricane mitigation policies; and
WHEREAS, the Lantana and Mangonia Park have determined that it is necessary and
appropriate to establish various obligations for future cooperation between Lantana, Mangonia
Park, the Authority and all other local governments that execute this Interlocal Agreement (each
a "Party ") thereby becoming members of the Authority related to the financing of qualifying
improvements within the Authority; and
WHEREAS, Lantana shall administer this Interlocal Agreement; and
WHEREAS, Lantana and Mangonia Park have determined that it shall serve the public
interest to enter into this Agreement to make the most efficient use of their powers by enabling
them to cooperate on a basis of mutual advantage to provide for the financing of qualifying
improvements within the Authority.
NOW, THEREFORE, in consideration of the terms and conditions, promises and
covenants hereinafter set forth, the Originating Parties agree as follows:
Section 1. Recitals Incorporated. The above recitals are true and correct and are
hereby incorporated herein.
Section 2. Pure. The purpose of this Agreement is to provide the most economic
and efficient means of implementing a financing program for qualifying improvements on
property owners' lands within the Authority's Service Area and to provide additional services
consistent with state law.
Section 3. Creation of the Authority. By execution of this Interlocal Agreement there
is hereby created, pursuant to Section 163.01, F.S. and Section 163.08, F.S., the Florida Green
Finance Authority ( "the Authority "), a separate legal entity and public body with all of the
powers and privileges as defined herein.
Section 4. Legal Authority /Consent to Serve the Authority. The Authority shall have
all the powers, privileges and authority as set forth below and as provided by Chapter 163, F.S.,
as necessary to accomplish the purposes set forth in this Agreement. By resolution of the
governing bodies of the Originating Parties, all powers available to the Authority under this
Agreement and general law, including but not limited to, Chapters 163, 170, 189 and 197, F.S.
may be implemented by the Authority within the jurisdictional boundaries of the Originating
Parties. The Originating Parties do hereby consent and agree to levy and collect voluntary non-
2
ad valorem assessments on properties, either individually or collectively as permitted by law,
within their respective jurisdictions in accordance with the purposes of this Agreement and
applicable law, to be repaid to the Authority. The Originating Parties also delegate the power to
levy and collect voluntary non -ad valorem assessments on properties within their jurisdictions as
may be permitted by law. The Authority shall not act, provide its services or conduct its
activities within any Party's jurisdiction without the execution of this Agreement.
Section 5. Definitions.
a. "Authority Board" shall be the governing body of the Authority, comprised of
representatives from all Parties as defined herein.
b. "Florida Green Energy Works Program" is the qualifying improvements
program authorized by Section 163.08, F.S., developed by the third party
administrator for Lantana and other Parties who elect to participate.
C. " Interlocal Agreement" or "Agreement" is defined as this Agreement including
any amendments and supplements executed in accordance with the terms herein.
d. "Originating Parties" include the Florida local governments (as defined by
Section 163.08, F.S.) that are the original signatories to this Agreement. These
are the Towns of Lantana and Mangonia Park.
e. "Participating Property Owner" is defined as a property owner whose property
is located within the Service Area of the Authority and has voluntarily acquired
financing from the Authority.
f. "Parties" are any Florida local government (as defined by Section 163.08, F. S.)
having the power to enter into interlocal agreements and which may, subject to
the provisions of this Agreement, join in the efforts and activities provided for by
this Agreement pursuant to Section 163.01, F.S. Any local government joining
these efforts after the initial execution of this Agreement shall be known as a
"Party ". To be a Party, a local government shall execute the Signatory Page
attached as Exhibit B to this Agreement, which Signatory Page shall supplement
and amend this Agreement.
g. "Qualifying Improvements" are as defined in Section 163.08, F.S. in addition
to any other improvements or services not inconsistent with state law.
h. "Service Area" shall mean the geographic area comprising all of the areas within
the Florida Green Finance Authority as that area may be expanded or contracted
in accordance with the provisions of this Agreement and the laws of the State of
Florida.
Section 6. Representation on the Authority Board. The Originating Parties, and all
subsequent Parties upon joining the Authority through execution of this Agreement, shall be
represented by a member of the Authority Board as provided in Section 10 of this Agreement.
Section 7. Authority Boundaries and Service Area. The boundaries of the Authority
shall be the legal boundaries of the local governments that are Parties to this Agreement. This is
also the Authority's Service Area.
Section 8. Role of the Authority. As contemplated in this Agreement, the Authority
will uniformly facilitate and assist the Originating Parties and all subsequent Parties with any
3
necessary actions to levy and collect voluntary non -ad valorem assessments, or other legally
authorized form of collection, on the benefitted properties within the Authority's Service Area to
secure the repayment of costs of qualifying improvements for those individual properties
participating in the Florida Green Energy Works Program. Upon approval by the Authority of an
application by a landowner desiring to benefit their property, those properties receiving financing
for Qualifying Improvements shall be assessed from time to time, in accordance with the
applicable law and/or financing documents. Notwithstanding a local government's termination
of participation within this Agreement, those properties that have received financing for
Qualifying Improvements shall continue to be a part of the Authority, until such time that all
outstanding debt has been satisfied and the special assessments shall continue to be levied until
paid in full for the applicable benefitted property.
Section 9. Powers of the Authority. The Authority shall exercise any or all of the
powers granted under Sections 163.01, and 163.08, F.S., as well as powers, privileges or
authorities which each local government might exercise separately, as may be amended from
time to time, which include, without limitation, the following:
a. To finance qualifying improvements within the Authority Service Area and to
facilitate additional improvements or services consistent with law; including, but
not limited to, acquiring, constructing, managing, maintaining or operating
buildings, works or improvements;
b. To make and enter into contracts in its own name;
C. To enter into any inter-local agreement as necessary to exercise powers conferred
by law;
d. To appoint committees to assist with implementation of this Agreement;
e. To employ agencies, employees, or consultants;
L To acquire, hold, lease or dispose of real or personal property;
g. To borrow money, incur debts, liabilities, or obligations which shall not constitute
the debts, liabilities, or obligations of the Originating Parties or any of the Parties
to this Agreement;
h. To levy and collect assessments, or assist in the levy and collection of
assessments, either as the Authority or on behalf of an Originating Parry or
subsequent Party as permitted by law;
L To adopt resolutions and policies prescribing the powers, duties, and functions of
the officers of the Authority, the conduct of the business of the Authority, and the
maintenance of records and documents of the Authority;
j. To maintain an office at such place or places as it may designate within the
Service Area of the Authority or within the boundaries of an Originating Parry or
a subsequent Party;
k. To cooperate with or contract with other governmental agencies as may be
necessary, convenient, incidental, or proper in connection with any of the powers,
duties, or purposes authorized by Section 163.08, F.S., and to accept funding from
local and state agencies;
1. To exercise all powers necessary, convenient, incidental, or proper in connection
with any of the powers, duties, or purposes authorized in Section 163.08, F. S.;
M. To create and adopt any and all necessary operating procedures, policies, manuals
or bylaws;
4
D. To maintain insurance as the Authority deems appropriate;
o. To apply for, request, receive and accept gifts, grants, or assistance funds from
any lawful source to support any activity authorized under this Agreement; and
P. To exercise any powers or duties necessary to address carbon or renewable energy
credits, or any other similar commodity that may come into existence, for the
public benefits of the program.
Section 10. Authority Board. The Authority shall be governed by a seven (7) member
Board of Directors which shall include one Director appointed by the governing body of each
Originating Party plus five (5) additional Directors. To assure geographical representation
across the State, the Authority seeks to appoint one (1) Director from the boundaries of each of
the five (5) water management districts as defined in Chapter 373, F.S. Only Parties, through
their governing bodies, may appoint representatives to serve as an Authority Board Director.
Originating Party representatives serve an initial four (4) year term commencing upon execution
of this Agreement, and subsequent terms as further set forth in subparagraphs a. and b. of this
section. The remaining five (5) Directors will each be appointed by the governing body of the
first Party from each requisite water management district boundary area that joins the Authority
through execution of this Agreement and that desires to serve as a Director. Upon execution of
this Agreement by such a Party, the term of its appointed Director shall commence for an initial
term of three (3) years, and subsequent terms as further set forth in subparagraphs a. and b. of
this section. Thereafter, any Party may submit one nominee to serve as an Authority Board
Director for any given term.
a. Prior to the appointment of the full Authority Board as set forth above, and for
purposes of the first organizational meeting(s), the Authority Board shall be
comprised of representatives appointed by the governing bodies of the two (2)
Originating Parties. Actions taken in this interim period shall be by unanimous
consent and shall be binding on the Authority pursuant to the adoption of
resolutions which do not require an in- person meeting, but which must be ratified
by a majority vote of the Authority Board Directors in the next regularly
scheduled meeting. All actions enumerated in paragraph c. of this section, as well
as any other actions necessary to initiate the operation of the Authority may be
taken during this interim period.
b. The Town Manager of Lantana, or designee, shall serve as the Chair of the
Authority Board for the initial four (4) year term. The Mangonia Park
representative shall serve as Vice Chair of the Authority Board for the initial four
(4) year term. Upon the conclusion of the initial terms as set forth above, the
Authority Board shall annually select directors and appoint its Chair, Vice Chair
and Secretary, each. of which shall then serve one (1) year terms. The
appointment of Authority Board Directors and officers shall take place at the first
regular Authority meeting of the year. The Chair shall preside at meetings of the
Authority, and shall be recognized as head of the Authority for service of process,
execution of contracts and other documents as approved by the Authority. The
Vice Chair shall act as Chair during the absence or disability of the Chair. The
Secretary shall keep all meeting minutes and a record of all proceedings and acts
of the Board. Minutes shall be distributed to all Directors and Parties in a
reasonable time period after the subject meeting.
5
C. The Authority Board shall act as the governing body of the Authority and shall
have, in addition to all other powers and duties described herein, the following
powers and duties:
1. To fix the time, and determine policies and orders of business for
meetings, the place or places at which its meeting shall be held, and as set
forth herein, to call and hold special meetings as may be necessary.
2. To make and pass policies, regulations, resolutions and orders not
inconsistent with the Constitution of the United States or of the State of
Florida, or the provisions of this Agreement, as may be necessary for the
governance and management of the affairs of the Authority, for the
execution of the powers, obligations and responsibilities vested in the
Authority, and for carrying into effect the provisions of this Agreement.
3. To adopt bylaws and rules of procedure, or amend those that may be
initially adopted by the Originating Parties.
4. To fix the location of the principal place of business of the Authority and
the location of all offices maintained thereunder.
5. To create any and all necessary offices in addition to Chair, Vice -Chair
and Secretary; to establish the powers, duties and compensation of all
employees or contractors; and to require and fix the amount of all non -ad
valorem assessments and/or fees necessary to operate the Florida Green
Energy Works Program.
6. To select and employ such employees and executive officers as the
Authority Board deems necessary or desirable, and to set their
compensation and duties.
7. To employ or hire such attorneys as it deems appropriate to provide legal
advice and/or legal services to the Authority, and to employ and hire such
other consultants as it deems appropriate through any procedure not
inconsistent with law.
8. As applicable and available, nothing herein shall limit the Authority's
ability to pursue actions or remedies pursuant to Chapter 120, F.S.
d. Any Director may resign from service upon providing written notice pursuant to
Section 27 of this Agreement, to the Authority Board Secretary. Such notice shall
state the date said resignation shall take effect. Any Director who resigns shall be
replaced in the same manner that the resigning Director was selected. Any
resigning Director shall immediately turn over and deliver to the Authority Board
Secretary all records, books, documents or other property in their possession or
under their control which belongs to the Authority. Directors are encouraged to
provide a minimum of 30 days notice so that a successor can be properly
appointed; however, any Director who must resign immediately upon extenuating
circumstances shall be succeeded by an interim Director by majority vote of the
Authority Board until such time as a permanent successor can be seated.
e. Any Authority Board Director who is absent for three (3) consecutive Authority
Board meetings, unless otherwise excused by the Chair, shall be deemed to have
resigned from the Authority Board.
L Authority Board Directors shall serve without compensation for the first year after
the establishment of the Authority pursuant to this Agreement. Thereafter,
R
Authority Board Director compensation may be set by a unanimous vote of the
Directors of the Authority Board in a manner and at such amounts as is consistent
with applicable law. Travel expenses for Authority Board Directors shall be
reimbursed as permitted by Florida law.
Section 11. Meetings of the Authority Board.
a. Within thirty (30) calendar days of the creation of the Authority, or sooner if
feasible, the Originating Parties shall hold an organizational meeting to elect
officers and perform other duties as required under this Agreement.
b. Prior to the beginning of each fiscal year (October 1), on a date, place and time as
determined by the Authority Board, there shall be an Annual Meeting of the
Authority. The annual statements shall be presented, and any other such matter as
the Authority Board deems appropriate may be considered.
C. The Authority Board shall have regular, noticed, quarterly meetings at such times
and places as the Authority Board may designate or prescribe. In addition, special
meetings may be called, from time to time, by the Authority Board Chair, or by a
majority vote of the Authority Board. A minimum of 24 hours notice to the
public and all Authority Board Directors shall be given for any special meetings.
d. In the absence of specific rules of procedure adopted by the Authority Board for
the conduct of its meetings, the fundamental principles of parliamentary
procedure shall be relied upon for the orderly conduct of all Authority Board
meetings.
Section 12. Decisions of the Authority Board. A quorum of the Authority Board shall
be required to be present at any meeting in order for official action to be taken by the Board. A
majority of all Authority Board Directors shall constitute a quorum. It is the desire and intent of
this Agreement that decisions made by the Authority Board shall be by consensus of the Board.
However, if a consensus is not achievable in any particular instance, then a majority vote of the
quorum of the Authority Board shall be required to adopt any measure or approve any action,
unless otherwise provided herein.
Section 13. Authority Staff and Attorney.
a. The Authority's administrative functions shall be carried out by Lantana and its
consultants, and shall include all duties necessary for the conduct of the
Authority's business and the exercise of the powers of the Authority as provided
in Section 163.01 and Section 163.08, F.S.
b. The law firm that serves as the General Counsel for Lantana shall also serve as
the General Counsel to the Authority. After the Authority has been operating for
four (4) years, the Authority may opt to hire different Authority staff and/or
general counsel.
Section 14. Authorized Official. The Authority Board Chair shall serve as the local
official or designee who is authorized to enter into a financing agreement, pursuant to Section
163.08(8), F.S., with property owner(s) who obtain financing through the Authority.
VA
Section 15. Subsequent Parties. Recognizing the benefit that the formation of the
Authority will provide to all Florida local governments, the Originating Parties to this
Agreement support and encourage the participation of subsequent Parties as contemplated herein.
Section 16. Funding the Initial Program. Funding for the Authority shall initially be
from grant funds or other funds acquired by the Originating Parties and/or subsequent Parties.
For the initial establishment of the Authority, contributions can be made to the Authority as
permitted by law.
Section 17. Debts of the Authority are Not Obligations of any Parties. Pursuant to
Section 163.01(7), F.S. the Authority may exercise all powers in connection with the
authorization, issuance, and sale of bonds or other legally authorized mechanisms of finance.
However, any debts, liabilities, or obligations of the Authority do not constitute debts, liabilities
or obligations of the Originating Parties or any subsequent Party to this Agreement.
Section 18. Annual Budget.
a. Prior to the beginning of the Authority's fiscal year, the Authority Board will
adopt an annual budget. Such budget shall be prepared in the manner and within
the time period required for the adoption of a tentative and final budget for state
governmental agencies pursuant to general law. The Authority's annual budget
shall contain an estimate of receipts by source and an itemized estimation of
expenditures anticipated to be incurred to meet the financial needs and obligations
of the Authority.
b. The adopted Budget shall be the operating and fiscal guide for the Authority for
the ensuing Fiscal Year.
C. The Board may from time to time amend the Budget at any duly called regular or
special meeting.
Section 19. Reports.
a. Financial reports: The Authority shall provide financial reports in such form
and in such manner as prescribed pursuant to this Agreement and Chapter 218,
F.S. Both quarterly and annual financial reports of the Authority shall be
completed in accordance with generally accepted Government Auditing Standards
by an independent certified public accountant. At a minimum, the quarterly and
annual reports shall include a balance sheet, a statement of revenues, expenditures
and changes in fund equity and combining statements prepared in accordance
with generally accepted accounting principles.
b. Operational reports: The Authority Board shall cause to be made at least once
every year a comprehensive report of its operations including all matters relating
to fees, costs, projects financed and status of all funds and accounts.
C. Audits: The Authority shall be subject to, and shall cause to be conducted: (i) an
independent budget audit and (ii) an independent financial and /or performance
audit performed in accordance with generally accepted accounting practices and
as applicable by state law.
d. Reports to be public records: All reports, as well as supporting documentation
such as, but not limited to, construction, financial, correspondence, instructions,
memoranda, bid estimate sheets, proposal documentation, back charge
8
documentation, canceled checks, and other related records produced and
maintained by the Authority, its employees and consultants shall be deemed
public records pursuant to Chapter 119, F.S., and shall be made available for
audit, review or copying by any person upon reasonable notice.
Section 20. Bonds. The Authority Board is authorized to provide, from time to time,
for the issuance of bonds, or other legally authorized form of finance, to pay all or part of the
cost of qualifying improvements in accordance with law.
Section 21. Schedule of Rates and Fees.
a. Upon the creation of the Authority as set forth in this Agreement, the Authority
Board shall establish a schedule of rates, fees or other charges for the purpose of
making the Authority a self - sustaining district. There shall not be any obligation
on the part of the Originating Parties or any subsequent Parties for financing
contributions. The Authority shall not be authorized to create or distribute a
profit. This shall not, however, prevent the Authority from establishing reserves
for unanticipated expenses or for future projects in keeping with sound, prudent
and reasonable operation of the Program within industry standards or from
fulfilling any other requirements imposed by bond financings, other financial
obligations or law. Nor shall this prevent the Authority from incurring costs such
as professional fees and other costs necessary to accomplish its purpose. The
Authority Board shall fix the initial schedule of rates, fees or other charges for the
use of and the services to operate the Florida Green Energy Works Program to be
paid by each participating property owner consistent with Section 163.08(4), F.S.
b. The Authority Board may revise the schedule of rates, fees or other charges from
time to time; provided however, that such rates, fees or charges shall be so fixed
and revised so as to provide sums, which with other funds available for such
purposes, shall be sufficient at all times to pay the expenses of operating and
maintaining the Florida Green Energy Works Program. This shall include any
required reserves for such purposes, the principal of and interest on bonds, or
other financing method, as the same shall become due, and to provide a margin of
safety over and above the total amount of any such payments, and to comply fully
with any covenants contained in the proceedings authorizing the issuance of any
bonds or other obligations of the Authority.
C. The rates, fees or other charges set pursuant to this section shall be just and
equitable and uniform for users and, where appropriate, may be based upon the
size and scope of the financial obligation undertaken by a Participating Property
Owner. All such rates, fees or charges shall be applied in a non - discretionary
manner with respect to the Participating Property Owner's geographical location
within the Authority's Service Area. No rates, fees or charges shall be fixed or
subsequently amended under the foregoing provisions until after a public hearing
at which all the potential participants in the Program, and other interested persons,
shall have an opportunity to be heard concerning the proposed rates, fees or other
charges. Notice of such public hearing setting forth the proposed schedule or
schedules of rates, fees or other charges shall be provided in accordance with
Chapter 163 and Chapter 197, F.S.
d. The Authority shall charge and collect such rates, fees or other charges so fixed or
revised, and such rates, fees and other charges shall not be subject to the
supervision or regulation by any other commission, board, bureau, agency or
other political subdivision or agency of the county or state.
e. In the event that any assessed fees, rates or other charges for the services and
financing provided by the Authority to Participating Property Owners shall not be
paid as and when due, any unpaid balance thereof, and all interest accruing
thereon, shall be a lien on any parcel or property affected or improved thereby.
Pursuant to Section 163.08(8), F.S., such lien shall constitute a lien of equal
dignity to county taxes and assessments from the date of recordation. In the event
that any such fee, rate or charge shall not be paid as and when due and shall be in
default for thirty (30) days or more, the unpaid balance thereof, and all interest
accrued thereon, together with attorney's fees and costs, may be recovered by the
Authority in a civil action, and any such lien and accrued interest may be
foreclosed and otherwise enforced by the Authority by action or suit in equity as
for the foreclosure of a mortgage on real property.
Section 22. Disbursements. Disbursements made on behalf of the Authority shall be
made by checks drawn on the accounts of the Authority.
Section 23. Procurement; Program Implementation and Administration. The
Authority shall be administered and operated by a Third Party Administrator ( "TPA ") who shall
be responsible for providing services to the Authority for the design, implementation and
administration of the Florida Green Energy Works Program. The Originating Parties and all
subsequent Parties understand and agree that the procurement for the initial TPA was performed
by Lantana in accordance with its adopted procurement procedures. Pursuant to said
procurement procedures, "BcoCity Partners, L3C" has been hired as the TPA. The "Florida
Green Energy Works Program Administration Services Agreement" between Lantana and
EcoCity Partners, L3C is attached hereto as Exhibit 1 and is hereby incorporated by reference.
By execution of this Agreement, all parties hereto agree that the initial Florida Green Energy
Works Program Administration Services Agreement, as amended, will be assigned by Lantana to
the Authority and shall be executed and assumed by the Authority.
Section 24. Term. This Interlocal Agreement shall remain in full force and effect
from the date of its execution by the Originating Parties until such time as there is unanimous
agreement of the Authority Board to dissolve the Authority. Notwithstanding the foregoing,
dissolution of the Authority cannot occur unless and until any and all outstanding obligations are
repaid; provided, however, that any Party may terminate its involvement and its participation in
this Interlocal Agreement upon thirty (30) days' written notice to the other Parties. Should a
Party terminate its participation in this Interlocal Agreement, be dissolved, abolished, or
otherwise cease to exist, this Interlocal Agreement shall continue until such time as all remaining
Parties agree to dissolve the Authority and all special assessments levied upon Participating
Property Owners properties have been paid in full.
10
Section 25. Consent. The execution of this Interlocal Agreement, as authorized by the
government body of the Originating Parties and any subsequent Party shall be considered the
Parties' consent to the creation of the Authority as required by Sections 163.01 and 163.08, F.S.
Section 26. Limits of Liabilitv.
a. All of the privileges and immunities from liability and exemptions from law,
ordinances and rules which apply to municipalities and counties of this state
pursuant to Florida law shall equally apply to the Authority. Likewise, all of the
privileges and immunities from liability; exemptions from laws, ordinances and
rules which apply to the activity of officers, agents, or employees of counties and
municipalities of this state pursuant to Florida law shall equally apply to the
officers, agents or employees of the Authority.
b. The Originating Parties and all subsequent Parties to this Agreement shall each be
individually and separately liable and responsible for the actions of their own
officers, agents and employees in the performance of their respective obligations
under this Agreement pursuant to Chapters 768 and 163, F.S. and any other
applicable law. The Parties may not be held jointly or severally liable for the
actions of officer or employees of the Authority or by any other action by the
Authority or another member of the Authority and the Authority shall be solely
liable for the actions of its officers, employees or agents to the extent of the
waiver of sovereign immunity or limitation on liability provided by Chapter 768,
F.S. Except as may be otherwise specified herein, the Parties shall each
individually defend any action or proceeding brought against their respective
agency under this Agreement, and they shall be individually responsible for all of
their respective costs, attorneys' fees, expenses and liabilities incurred as a result
of any such claims, demands, suits, actions, damages and causes of action,
including the investigation or the defense thereof, and from and against any
orders, judgments or decrees which may be entered as a result thereof. The
Parties shall each individually maintain throughout the term of this Agreement
any and all applicable insurance coverage required by Florida law for
governmental entities. Such liability is subject to the provisions of law, including
the limits included in Section 768.28, F.S., which sets forth the partial waiver of
sovereign immunity to which governmental entities are subject. It is expressly
understood that this provision shall not be construed as a waiver of any right or
defense that the parties have under Section 768.28, F.S. or any other statute.
Section 27. Notices. Any notices to be given pursuant to this Interlocal Agreement
shall be in writing and shall be deemed to have been given if sent by hand delivery, recognized
overnight courier (such as Federal Express), or certified U.S. mail, return receipt requested,
addressed to the Party for whom it is intended, at the place specified. The Originating Parties
designate the following as the respective places for notice purposes:
Lantana: Town Manager
Town of Lantana
500 Greynolds Circle
Lantana, Florida 33462
11
With a Copy to: Corbett and White, P.A.
1111 Hypoluxo Road, Suite 207
Lantana, FL 33462
Attn: Keith W. Davis, Esq.
Mangonia Park: Town Manager
Town of Mangonia Park
1755 East Tiffany Drive
Mangonia Park, Florida 33407
With a Copy to: Corbett and White, P.A.
1111 Hypoluxo Road, Suite 207
Lantana, FL 33462
Attn: Keith W. Davis, Esq.
Section 28. Filing. It is agreed that this Interlocal Agreement shall be filed with the
Clerk of the Circuit Court of Palm Beach County, as required by Section 163.01 (11), F.S.
Section 29. Joint Effort. The preparation of this Interlocal Agreement has been a joint
effort of the Parties hereto and the resulting document shall not, as a matter of judicial
construction, be construed more severely against any one party as compared to another.
Section 30. Execution in Counterparts. This Interlocal Agreement may be executed in
counterparts which shall be in original form all of which, collectively, shall comprise the entire
Interlocal Agreement.
Section 31. Merger, Amendment. This Agreement incorporates and includes all prior
negotiations, correspondence, agreements or understandings applicable to the matters contained
herein; and the Parties agree that there are no commitments, agreements or understandings
concerning the subject matter of this Agreement that are not contained in this document.
Accordingly, the Parties agree that no deviation from the terms hereof shall be predicated upon
any prior representations or agreements whether oral or written. It is further agreed that no
change, amendment, alteration or modification in the terms and conditions contained in this
Interlocal Agreement shall be effective unless contained in a written document executed with the
same formality and of equal dignity herewith by all Parties to this Interlocal Agreement.
Section 32. Assignment. The respective obligations of the Parties set forth in this
Interlocal Agreement shall not be assigned, in whole or in part, without the written consent of the
other Parties hereto.
Section 33. Records. The Parties shall each maintain their own respective records and
documents associated with this Interlocal Agreement in accordance with the requirements for
records retention set forth in Florida law.
12
Section 34. Compliance with Laws. In the performance of this Agreement, the Parties
hereto shall comply in all material respects with all applicable federal and state laws and
regulations and all applicable county and municipal ordinances and regulations.
Section 35. Governing Law and Venue. This Interlocal Agreement shall be governed,
construed and controlled according to the laws of the State of Florida. Venue for any claim,
objection or dispute arising out of the terms of this Interlocal Agreement shall be proper
exclusively in Palm Beach County, Florida.
Section 36. Severability. In the event a portion of this Interlocal Agreement is found
by a court of competent jurisdiction to be invalid, the remaining provisions shall continue to be
effective to the extent possible.
Section 37. Effective Date and Joinder by Authority. This Interlocal Agreement shall
become effective upon its execution by the Originating Parties. It is agreed that, upon the
formation of the Authority, the Authority shall thereafter join this Interlocal Agreement and that
the Authority shall thereafter be deemed a Party to this Interlocal Agreement.
Section 38. No Third Party Rights. No provision in this Agreement shall provide to
any person that is not a party to this Agreement any remedy, claim, or cause of action, or create
any third -party beneficiary rights against any Party to this Agreement.
Section 39. Access and Audits. Palm Beach County has established the Office of
Inspector General in Article VIII of the Charter of Palm Beach County, as may be amended,
which is authorized and empowered to review past, present and proposed county or municipal
contracts, transactions, accounts and records. The Inspector General has the power to subpoena
witnesses, administer oaths and require the production of records, and audit, investigate, monitor,
and inspect the activities of Palm Beach County, its officers, agents, employees, and lobbyists, as
well as the activities of all municipalities in the county, and their officers, agents, employees, and
lobbyists, in order to ensure compliance with contract requirements and detect corruption and
fraud. Failure to cooperate with the Inspector General or interference or impeding any
investigation shall be in violation of Chapter 2, Article XHI of the Palm Beach County Code of
Ordinances.
[Remainder of page intentionally left blank.]
13
IN WITNESS WHEREOF, the Originating Parties hereto have made and executed this
lnterlocal Agreement on this day of , 2012.
U0 NMI 6
BY:
Town Clerk
(Affix Town Seal)
Approved by Town Attorney
as to form and legal sufficiency
ATTEST:
BY:
Town Clerk
(Affix Town Seal)
Approved by Town Attorney
as to form and legal sufficiency
Town of Lantana, a municipal
corporation of the State of Florida
M
Town Manager
Town Attorney
Town of Mangonia Park, a municipal
corporation of the State of Florida
mm
14
Town Manager
Town Attorney
ATTEST: The Florida Green Finance Authority, a separate
legal entity established pursuant to Section
163.01(7), Florida Statutes
BY: BY:
Secretary of the Authority Chair of the Authority
Approved by Authority Attorney
as to fonn and legal sufficiency
Authority Attorney
15
Exhibit A
[Third Party Administrator Agreement]
16
Exhibit B
Party Membership Agreement
To The Florida Green Finance Authority
The Interlocal Agreement between the Florida Green Finance Authority, the Town of Lantana
and the Town of Mangonia Park (the " Interlocal Agreement") entered into on ' 2012
for the purpose of facilitating the financing of qualifying improvements for energy conservation
and efficiency via the levy and collection of voluntary non -ad valorem assessments on improved
property is hereby supplemented and amended on the date last signed below by this Signatory
Party Membership Agreement, which is fully incorporated into the Interlocal Agreement as
follows:
The Florida Green Finance Authority, together with its member Parties, and the City of Delray
Beach, with the intent to be bound thereto, hereby agree that the City of Delray Beach shall
become a Party to the Interlocal Agreement together with all of the rights and obligations of
Parties to the Interlocal Agreement.
The City of Delray Beach hereby agrees to appoint a representative to serve as a member of the
Authority. All Parties acknowledge that the remaining five (5) Directors will each be appointed
by the governing body of the first Party from each requisite water management district boundary
area that joins the Authority through execution of this Agreement and that desires to serve as a
Director serving an initial term of three (3) years.
The City of Delray Beach designates the following as the respective place for any notices to be
given pursuant to the Interlocal Agreement Section 27:
Delray Beach: David T. Harden
City of Delray Beach
100 NW 1St Avenue
Delray Beach, FL 33444
With a Copy to: Corbett and White, P.A. Authority Attorney
1111 Hypoluxo Road, Suite 207
Lantana, FL 33462
Attn: Keith W. Davis, Esq.
17
IN WITNESS WHEREOF, the Parties hereto subscribe their names to this Interlocal
Agreement by their duly authorized officers on this day of , 2012.
ATTEST: The Florida Green Finance Authority, a separate
legal entity established pursuant to Section
163.01(7), Florida Statutes
BY: BY:
Secretary of the Authority Chair of the Authority
Approved by Authority Attorney
as to form and legal sufficiency
ATTEST:
BY:
City Clerk
(Affix Town Seal)
Approved by City Attorney
as to form and legal sufficiency
Authority Attorney
City of Delray Beach, a municipal
corporation of the State of Florida
18
Nelson S. McDuffie, Mayor
City Attorney
Florida
Green Energy
Works
Attn: Richard J. Reade
Sustainability Officer/Public Information Officer
City of Delray Beach, Florida
June 13, 2012
Dear Mr. Reade:
Thank you for Delray Beach's interest in participating in the Florida Green Energy Works
Program (the "Program ").
The Program, which is entirely voluntary, facilitates funding for energy and wind- resistance
property improvements at little to no upfront cost and at competitive interest rates. The energy
savings pays for the costs of the financing with repayment collected automatically through the
property tax bill.
A hallmark of our Program is that it is "open market." This means that we allow funding by any
lender and installation work by any licensed contractor that the property owner chooses. We view
local lenders and community banks as partners in the financings. We require their consent to the
project. As a result, project financing will typically be provided by existing mortgage holders as a
means of enhancing value of their collateral.
PACE is a proven job creator. For every $4M in total spending, PACE can generate $10M in
economic output, $1M in tax revenue (federal, state and local) and 60 jobs. The Program design
was fully funded with grant dollars secured by the Greater Lake Worth (now Central Palm Beach)
and Greater Boynton Beach Chambers of Commerce.
To streamline costs, participating cities formed the Florida Green Finance Authority
("Authority'), a separate legal entity that offers the Program on behalf of participating cities. The
Authority was formed by interlocal agreement pursuant to Florida law.
As a result, the Program does not require any City funding, staff or other resources. All that is
required by the City of Delray to access the Program is execution of the Program Interlocal
Agreement, which immediately makes PACE financing options available to commercial property
owners located in the City of Delray Beach.
We appreciate your interest in the Program. If you have any questions, please do not hesitate to
contact me at Michael@ecocitypartners.com.
Very Truly Yours,
Michael Wallander, Prograin Manager
224 vatura Street, Suite 211, Vilest Palm Beach, Florida 33401
EXHIBIT B
List of Qualifying Improvements
The following list represents improvements that may be Qualifying Improvements under the Florida
Green Energy Works Program. Additional and /or alternative measures may be approved on a case -by-
case basis and /or as the list is modified from time to time as may be approved by the Authority or a
participating District.
Eligible measures are listed below. Ineligible measures include compact fluorescent, screw -in lamps;
plug load devices; measures that are not permanently installed and can be easily removed; measures that
save energy solely due to operational or behavioral changes; power correction, power conditioning; any
measure that does not result in energy savings or renewable energy production; any measure that can not
be explained in terms of industry- standard engineering or scientific principles; vending machine
controllers; and, refrigerant charge (AC /Split Systems /Heat Pumps).
..
_.._..A.
32" ^. ^Y^"t :+:�x'S�K��U( ..,�5•� �. - .#: ' �•'Y
� »..�»..» � E.��� ..�'r �M'S•�� SS 'Y ^..SS�Y x� f
Renewable - Thermal Energy
DHW
Service water
Solar thermal water heat
HVAC
Heating
Solar thermal space heat (hydronic)
Process
Pool
Solar pool heat
Renewable - Electrical Energy
,. :..�
__ -.. ...,...�__.
Photovoltaic
PV
Grid -tied PV System
Wind
Wind
Grid -tied wind turbine
Microturbine
(Renewable fuel)
microturbine using renewable fuel
Grid -tied microturbine
Internal Combustion Engine
(Renewable fuel)
internal combustion engine using
renewable fuel
Grid -tied internal combustion engine
Fuel Cell
(Renewable fuel)
Electric -only fuel cell using renewable
fuel
Grid -tied fuel cell
Non - Renewable - Electrical
Energy
Fuel Cell
(Non - Renewable fuel)
Electric -only fuel cell using non-
renewable fuel (e.g., natural gas)
Grid -tied fuel cell
Cogeneration
Microturbine
(Non- renewable fuel)
Microturbine with Cogeneration
Grid -tied microturbine with heat exchanger
for cogeneration
Internal Combustion Engine
(Non - renewable fuel)
Internal Combustion Engine with
Cogeneration
Grid -tied internal combustion engine with
heat exchanger for cogeneration
Fuel Cell
(Non - renewable fuel)
Fuel Cell with Cogeneration
Grid -tied fuel cell with heat exchanger for
cogeneration
1
5s. s •
Domestic Hot Water
(DHW)
Water Heater
Efficient Unit Replacement
Water Heater
Domestic Hot Water Pipe Insulation
Commercial Kitchen
Pre -rinse Spray Valve
Commercial Laundry
Ozone Laundry System
Pumps
Efficient Unit Replacement
Pumps
Trimmed impeller
Pumps
Installing VFD & controls
Envelope
Doors
Reduce Building Infiltration
Walls
Insulation (Conditioned spaces only)
Roof
Insulation (Conditioned spaces only)
Roof
Cool roof surface
Roof
Green roof installation
Windows
High Performance Windows
Windows
Window film installation
Lighting
Fluorescent
Efficiency Improvement
Compact Fluorescent
Efficiency Improvement
Induction Lighting
Efficiency Improvement
Cold Cathode Lamps
Efficiency Improvement
HID
Efficiency Improvement
Bi -Level Fixtures
Replace existing lighting in Stairwells and Garages with
Bi -level Lighting fixtures
Exit Signs
Replace existing with LED / LEC exit Sign
Exit Signs
Replace existing with self - luminescent
Interior Lighting
Replace existing with Induction or LED
Exterior Lighting
Replace existing with Induction or LED
Street Lighting
Replace existing with Induction or LED
Daylighting
Skylights
Controls
Demand Response Controls
Controls
Lighting scheduling controls
Controls
Daylighting controls
Controls
Occupancy sensors
General
Delamping
HVAC
AC / Split Systems / Heat
Pumps
Efficient Unit Replacement
AHUs
Airflow distribution improvements
AHUs
Economizer (Air or Water- side)- Repair or New Unit
Boilers
Burner upgrade
Boilers
Combustion fan VFD
Boilers
Economizers
Boilers
Efficient Unit Replacement
Boilers
Heat recovery
Boilers
Oxygen trim controls
Boilers /Chillers
Pipe Insulation
Chillers
Addition of Water -side economizer
Chillers
Efficient Unit Replacement
Chillers
Heat recovery
Cooling Tower
Installing VFD & controls for fans
Cooling Tower
Replacement or additional capacity
Data Center
Air Flow Management
Energy Management Controls
Cooling tower fan sequencing
Energy Management Controls
Demand Response Controls
Energy Management Controls
Improved scheduling capability
Energy Management Controls
Sensors calibration /optimal relocation
Energy Management Controls
Retrocomissioning
Evaporative Cooling Systems
Offset existing mechanical cooling
Fans
Installing VFD & controls
Furnaces
Condensing furnaces
HVAC System (General)
Duct testing and sealing
HVAC System (General)
Duct testing and sealing
HVAC System (General)
VAV system conversions
HVAC System (General)
Radiant Heating/ Cooling
HVAC System (General)
Geothermal HVAC
HVAC System (General)
Thermal Storage for Load Shifting
Steam Heating
Install /Replace Steam Traps
Labs
Reduced ACH
Labs
VAV fume hoods
Motors
Efficient Unit Replacement
Pumps
Efficient Unit Replacement
Pumps
Trimmed impeller
Pumps
Installing VFD & controls
Ventilation
Demand controlled ventilation
Ventilation
Garage CO controls
Refrigeration
Refrigerated Cases / Walk -ins
Addition of insulation
Refrigerated Cases/ Walk -ins
Anti -sweat heater controls
Refrigerated Cases / Walk -ins
Auto - closers for cooler /freezer doors
Refrigerated Cases / Walk -ins
Case - lighting Controls
Refrigerated Cases/ Walk -ins
Defrost Controls
Refrigerated Cases / Walk -ins
Efficient evaporator fan motors
Refrigerated Cases/ Walk -ins
Efficient Unit Replacement
Refrigerated Cases / Walk -ins
Evaporator fan controllers
Refrigerated Cases / Walk -ins
High Efficiency Display Cases
Refrigerated Cases/ Walk -ins
Improved Defrost Controls
Refrigerated Cases / Walk -ins
Installing doors with low /no anti -sweat heat
Refrigerated Cases / Walk -ins
Installing Night covers
Refrigerated Cases/ Walk -ins
Replacing Door gaskets
Refrigerated Cases/ Walk -ins
Strip curtains
Refrigerated Cases / Walk -ins
Suction line insulation
Thermal Storage Systems
Thermal Storage for Load Shifting
Compressors
Add VFD and Controls
Compressors
Added Heat Recovery
Compressors
Addition of Mechanical Sub- cooling
Compressors
Efficient Unit Replacement
Compressors
Floating Head Pressure Controls
Compressors
Floating Suction Pressure
Condensers
Efficient Unit Replacement
Condensers
Evaporative Condensers
Condensers
Floating Head Pressure
Condensers
Replace Air Cooled with Evaporative Condenser
Controls
Retrocommissioning
..
Y
Compressed Air
Air Compressors
Efficient Unit Replacement
Compressed Air Storage
Additional compressed air storage
Controls
Improved compressor sequencing
Controls
Improved scheduling or controls
Process / Plug Loads
Boilers
Efficient Unit Replacement
Boilers
Burner upgrade
Boilers
Combustion fan VFD
Boilers
Economizers
Boilers
Heat recovery
Boilers
Oxygen trim controls
Chillers / Cooling
Efficient Unit Replacement
Air / Water Distribution
System
Efficiency Improvement
Fans
Efficient Unit Replacement
Fans
Installing VFD & controls
Industrial Process
Equipment scheduling for load reduction
Industrial Process
Process improvement
Motors
Efficient Unit Replacement
Elevators
Hoisting and Standby improvements
Pool
Add pool cover
Pool
Efficient Heater Replacement
Pool Pump
Reduce /Optimize Flow /Configuration
Pool Pump
Replace Motor
Envelope
Doors I High impact doors
Walls Installing perimeter opening protections
Roof Improving the strength of the roof deck and
foundation attachment
Roof Wind resistant shingles or other roofing
material
Roof Gable -end bracing
Roof Reinforcing roof -to -wall connections
Windows Installing storm shutters
Windows High impact windows
51
Pool Pump
Replace Pump
Pool Pump
Variable Flow
Pumps
Efficient Unit Replacement
Pumps
Installing VFD & controls
Energy Storage
Electric Vehicle Charger
Install AC Level 1 and /or 2 charging station, or DC
Level 1 EV charging station
Electric Vehicle Charger - Fast
Charge
Install DC Level 2 or 3 EV charging station
Envelope
Doors I High impact doors
Walls Installing perimeter opening protections
Roof Improving the strength of the roof deck and
foundation attachment
Roof Wind resistant shingles or other roofing
material
Roof Gable -end bracing
Roof Reinforcing roof -to -wall connections
Windows Installing storm shutters
Windows High impact windows
51
Laundry & Laundromats
Commercial Laundry Efficient Unit Replacement
Commercial Laundry I Retrofit with wastewater recovery system
Commercial Laundry Ozone Laundry System
HVAC
Cooling Towers
Upgrades to Reduce Bleed -off and Drift
Condensers
Upgrades to Reduce Bleed -off and Drift
Steam Boiloers
Upgrades to Reduce Bleed -off
_
Industrial / Process Water
Steam Sterilizers / Autoclaves
Efficient Unit Replacement
Car Wash Operations
Water Recycling System
Manufacturing
Film/ X -Ray Processing
Manufacturing
Food / Beverage Processing
Manufacturing
Metal Finishing
Manufacturing
High Tech Manufacturing
WLandscaping
Irrigation system
Rain Shutoff device
Irrigation System
Soil Moisture Sensors
Irrigation System
Rainwater Harvesting system
Irrigation System
Greywayter system
Irrigation System
Blackwater treatment system
7
Finance Program Handbook
Table of Contents
OVERVIEW .............. ............................... ... ... .. ...............4
INTRODUCTION.............................................................................................................. ..............................4
NATURE OF THIS PROGRAM HANDBOOK ..................................................................... ..............................4
TYPEOF FI NANCING ...................................................................................................... ..............................4
SOURCEOF CAPITAL ...................................................................................................... ..............................4
SECURITY...................................................................................................................... ............................... 5
PROGRAMPROCESS FLOW ............................................................................................ ..............................5
1 ELIGIBLE PROPERTIES 5
2. ELIGIBLE PROPERTY IMPROVEMENTS ........................................................ ..............................9
COMMONIMPROVEMENTS ............................................................................................ ..............................9
CUSTOMIMPROVEMENTS ............................................................................................. ..............................9
INELIGIBLEIMPROVEMENTS ......................................................................................... ..............................9
LOADING ORDER RECOMMENDATI ON .......................................................................... ..............................9
RESPONSIBILITY FOR QUALIFYING IMPROVEMENTS ............................................... ............................... 10
MINIMUM AND MAXIMUM PROJECT FUNDING ........................................................ ............................... 10
3. ELIGIBLE CONTRACTORS .................................... ............................... 10
QUALIFIEDCONTRACTORS ....................................................................................... ............................... 10
SELECTING AN ENERGY, WATER OR WIND RESISTANCE EVALUATOR ................... ............................... 10
SELECTING AN INSTALLATION CONTRACTOR .......................................................... ............................... 11
4. ELIGIBLE PROJECT LENDERS. 11
S. ENERGY. WATER & WIND RESISTANCE EVALUATIONS .. 12
ENERGYEVALUATIONS .............................................................................................. ............................... 12
WATEREVALUATIONS .............................................................................................. ............................... 12
WIND RESISTANCE EVALUATIONS ........................................................................... ............................... 13
PURPOSEAND BENEFITS ........................................................................................... ............................... 13
6. PARTICIPATION IN REBATE f INCENTIVE PROGRAMS 13
BENEFITS................................................................................................................... ............................... 13
PARTICIPATION IS ENCOURAGED BUT NOT REQUIRED .......................................... ............................... 13
CONSEQUENCES OF NONPARTICIPATION IN OPTIONAL PROGRAMS ....................... ............................... 14
7. APPLICATION AND APPROVAL PROCESS 14
PROGRAMCOSTS/FEES ............................................................................................ ............................... 14
DEBTSERVICE RESERVE FUND ................................................................................. ............................... 14
Florida Green Energy Works - Program Handbook 1 of 32 v. 1.1.2012
TWO -STEP APPLICATION PROCESS ......................................................................... ............................... 15
STEP 1: SUBMIT AN ELIGIBILITY APPLICATION ...................................................... ............................... 15
STEP 2: SUBMIT A FINAL APPLICATI ON ................................................................... ............................... 15
TASKS AND DEADLINES FOR SUBMITTING FINAL APPLICATION ............................ ............................... 16
FINAL APPLICATION APPROVAL ............................................................................... ............................... 17
ADDRESSING DSRF UNDERESTIMATES ................................................................... ............................... 17
8. REQUESTING FUNDING DISBURSEMENT ................................................... .............................18
FUNDINGDISBURSEMENT TYPES ............................................................................. ............................... 18
PROGRESSPAYMENTS ................................................................................................. .............................19
PROGRAM PARTICIPATION EXPIRATION ................................................................. ............................... 20
9 QUALITY ASSURANCE AND QUALITY CONTROL (QA /QC) 20
10. MEASUREMENT AND VERIFICATION ( M& V) ........................................ ............................... 20
11. DESCRIPTION OF BONDILEGAL DOCUMENTS ............................... 21
12, FINANCING COST: INTEREST RATE ......................................................... ............................... 21
13. IMPORTANT LEGAL TERMS . 22
REPAYMENTTERMS .................................................................................................. ...............................
22
ASSESSMENTS............................................................................................................ ...............................
22
FORECLOSURETERMS ............................................................................................... ...............................
23
COMPLIANCE WITH EXISTING MORTGAGES ............................................................. ...............................
23
TRANSFER OR RESALE OF THE SUBJECT PROPERTY ............................................... ...............................
23
REBATESAND TAXES ................................................................................................ ...............................
23
CHANGES IN STATE AND FEDERAL LAW ................................................................... ...............................
23
CHANGES IN THE PROGRAM TERMS; SEVERABI LITY ............................................... ...............................
24
DISCLOSURE OF PROPERTY OWNER INFORMATION ............................................... ...............................
24
FRAUD........................................................................................................................ ...............................
24
EXCEPTIONS TO THESE TERMS AND PROVISIONS .................................................... ...............................
25
APPENDIX A - FLORIDA GREEN ENERGY WORKS FINANCING PROCESS 26
APPENDIX B - GUIDANCE FOR SELECTING ENERGY EVALUATOR 27
OVERVIEW................................................................................................................. ............................... 27
CREDENTIALS/QUALIFICATI ONS .............................................................................. ............................... 27
RECOMMENDATIONS/QUESTIONS FOR PROSPECTIVE ENERGY AUDI TORS ........... ............................... 27
OTHER TIPS FOR THE BUILDING AUDIT PROCESS .................................................. ............................... 28
APPENDIX C — ENERGY EVALUATION TYPES ............ 29
OVERVIEW................................................................................................................. ............................... 29
INDUSTRY STANDARD AUDIT FORMATS .................................................................. ............................... 29
TARGETEDAUDIT ..................................................................................................... ............................... 29
ASHRAE LEVEL 1, 2, AND 3 AUDITS ...................................................................... ............................... 29
MINIMUMDATA REQUIREMENTS ............................................................................. ............................... 31
APPENDIX D - PROGRAM COSTSIFEES 32
Florida Green Energy Works - Program Handbook 2 of 32 v. 1.1.2012
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Florida Green Energy Works - Program Handbook 3 of 32 v. 1.1.2012
Overviews
The Town of Lantana, pursuant to a U.S. Department of Energy funded grant issued
through the State of Florida, is working with willing city and county partners to
create the Florida Green Finance Authority (the "Authority ") as well as the Florida
Green Energy Works ( "FGEWorks ") financing program (the "Program "). The
Authority will administer the Program in order to give commercial, and ultimately,
residential property owners access to a new form of financing for the installation of
certain energy efficiency, renewable energy, water conservation and wind
resistance improvements ( "Qualifying Improvements "). The anticipated benefits of
completing Qualifying Improvements include reduced operating costs, improved
occupant health and comfort, reduced environmental impact, and support for the
local economy.
The program for commercial property is focus of this Program Handbook. The
program will be extended to residential property once issues with the Federal
Housing Finance Agency (FHFA) are resolved to allow homes participating in the
Program to qualify for mortgages approved by Fannie Mae and Freddie Mac.
Nature of this Program Handbook
This handbook details the Program Terms governing all Program participants,
including property owners and lenders. By submitting an Initial Application,
applicants warrant that they have read this handbook in its entirety, and that they
understand and agree to the terms set forth herein.
Type of Financing
FGEWorks is a financing program that is designed to provide property owners with
options for retrofitting their properties, which currently include Property Assessed
Clean Energy (PACE) as well as PACE3P` financing options. PACE is an innovative
type of secured financing program that provides funding for energy efficiency,
renewable energy, water conservation and wind resistance improvements to
privately owned buildings. Under FGEWorks, the Authority may sell a PACE bond to
a qualified investor, use the proceeds to finance the improvements, and place an
assessment lien on the property to secure repayment. The assessment is collected
on the property tax bill. Similarly, PACE3PT11 is a third -party ownership form of
PACE financing where the funds to finance the improvements are brought by
Demeter Power Group, Inc., who has responsibility for managing the improvement
project for the property owner.
Source of Capital
FGEWorks is using the "open- market" PACE model in which individual property
owners may choose any project lender willing to fund their project Property
owners negotiate specific financing terms, including the interest rate and repayment
Florida Green Energy Works - Program Handbook 4 of 32 v. 1.1.2012
term, with their chosen project lender. The Authority uses assessments to repay the
project lender.
Security
The assessment obligation is secured by a lien on the property of equal status with
the lien for ad valorem property taxes. The Authority reserves the right to seek to
enhance the security of FGEWorks financing by raising and using funds to establish
a Debt Service Reserve Fund (DSRF) that will help cover payment to lenders in the
event of assessment delinquencies by the property owner. See Chap. 7 "Application
and Approval Process" below, for more information on the DSRF.
• , . ,,
Appendix A, attached, shows a high -level description of the Program's process flow
from beginning to end. It shows the significant stages for the property owner that
applies to the Program, and for the Program in response to property owner
submissions (the steps are numbered to illustrate further the flow and interaction)
1. Eligible Properties
In order to participate in the Program, a property owner must meet and /or
complete the following requirements and steps:
a. The property to be improved with Qualifying Improvements (the "subject
property ") must be located in within the geographic boundaries of a local
government located in Florida that opts into the Program by becoming a
member of the Authority (hereinafter an "Energy Improvement District ").
b. The subject property must be non - residential property defined as (i) a
property the primary use of which is not residential or (ii) a property used
for multi - family housing with five or more units.
c. The property owner must provide written notice of the proposed senior lien
to any and all lenders with existing liens on the subject property, and must
obtain the written consent /acknowledgment of existing lenders; the
Program will provide templates for this purpose but it is the property
owners' responsibility to obtain the consent /acknowledgement of the
lenders. The owner must submit a copy of the lender's written
consent /acknowledgment with the Final Application.
d. All owners of fee simple title to the subject property or their legally
authorized representatives must sign the Program Documents. Therefore,
before submitting an initial application, please ensure that all owners (or
their representatives) of the fee simple title to the subject property will agree
to participate in the Program on the terms set forth in these Program Terms.
Florida Green Energy Works - Program Handbook 5 of 32 v. 1.1.2012
e. The property owner must have a professional energy, water and /or wind
resistance evaluation conducted on the property that corresponds to the
types of Qualifying Improvements the owner is seeking to finance, and those
Qualifying Improvements must appear as identified opportunities or
recommendations within the resulting evaluation report. The Program
reserves the right on a case -by -case basis to review and approve Qualifying
Improvements that do not appear as an identified opportunity or
recommendation within the evaluation report. For the initial phase of the
Program, the following evaluation and project requirements will apply as
outlined below:
If the property owner wishes to finance energy efficiency
improvements, water conservation improvements and /or a
renewable energy project through the Program, the owner must
obtain an evaluation from a firm with the appropriate skills and
experience for non - residential buildings, to complete the appropriate
type of evaluation. See the Program Handbook for requirements for
participating evaluators and for details about the type of evaluation
required.
ii. If a renewable energy system is financed, the property owner should
also demonstrate that lower -cost and higher value energy efficiency
improvements were evaluated that could result in a 10%
improvement in building performance, or demonstrate that the
building already meets one of a predefined list of efficiency
performance requirements as specified in the Program Handbook.
iii. If the property owner wishes to finance wind resistance improvement
projects only, the owner must obtain a wind resistance improvement
evaluation from a firm with the appropriate skills and experience for
non - residential buildings, to complete the appropriate type of wind
resistance evaluation. The property owner will also receive
information regarding energy efficiency and renewable energy at that
time but will have no obligation to install such improvements.
f. The property owner will be encouraged or required (as described below) to
participate in appropriate state and local incentive programs to the extent
the subject property is eligible for such programs at the time of application.
For example, property owners planning to finance the installation of a solar
PV system will be encouraged to seek to participate in the Florida Power &
Light photovoltaic ( "PV ") rebate program (if available) with respect to the
subject property. Property owners will also be encouraged to participate in
similar incentive programs for solar thermal (hot water) systems and energy
efficiency improvements. Property owners will be encouraged to participate
in other utility rebate and incentive programs (if available) that cover the
Florida Green Energy Works - Program Handbook 6 of 32 v. 1.1.2012
Qualifying Improvements, but may elect not to do so. See Chapter 6 of this
Program Handbook for more detail.
g. The financed improvements must be Qualifying Improvements and must be
installed by a contract that meets the Program's qualification criteria
( "Qualified Contractors "). See Chap. 2 "Eligible Property Improvements"
below.
h. The property owners must agree to provide the Authority with access to the
property's utility usage information to enable the Program to monitor energy
and /or water savings. The owner must further agree to participate in
surveys and Program evaluations directed by the Authority.
The property owner must use the no -cost ENERGY STAR online energy -use
benchmarking service called Portfolio Manager. The Authority may further
recommend or require participation in other low- or no -cost energy usage
tracking systems so owners have access to the raw data necessary to
determine if the installed improvements are delivering the expected energy
and cost savings. (Determining whether or not installed improvements are
meeting projections is encouraged, but may require additional analysis by
professionals and any such additional services would be the responsibility of
the owner). See Chapter 10 of this Program Handbook for more detail.
The property owner must certify that it (and its corporate parent if the
property owner is a single - purpose entity) is solvent and that no proceedings
are pending or threatened in which the property owner (or the corporate
parent, as applicable) may be adjudicated as bankrupt or become the debtor
in a bankruptcy proceeding, or discharged from all of the property owner's
(or corporate parent's, as applicable) debts or obligations, or granted an
extension of time to pay the property owner's (and the corporate parent's, as
applicable) debts or a reorganization or readjustment of the property
owner's (and the corporate parent's, as applicable) debts. The property
owner must also certify that the property owner (or any corporate parent if
the property owner is a single- purpose entity) has not filed for or been
subject to bankruptcy protection in the past three years.
k. The property owner must be current in the payment of all obligations
secured by the subject property, including property taxes, assessments and
tax liens, within the past 3 years (or since taking title to the subject property
if it has been less than 3 years). The Authority may review public records,
including the real property records, to verify compliance with this
requirement. Certain allowances may be made for property tax payment
delays that do not reflect financial distress. Properties that are currently
appealing a property tax assessment will be reviewed and eligibility will be
determined on a case -by -case basis.
Florida Green Energy Works - Program Handbook 7 of 32 v. 1.1.2012
1. There must be no notices of default or foreclosure, whether in effector
released, due to non - payment of property taxes or loan payments filed
against the subject property within the last 5 years (or since ownership, if
less than 5 years). Exceptions maybe granted on a case -by -case basis.
m. The property owner must not have any involuntary liens, defaults or
judgments applicable to the subject property. The Authority may review
public records, including the real property records and court documents, to
verify compliance with this requirement. A property owner with an
involuntary lien(s) may be allowed to participate in the Program if it can
demonstrate an acceptable reason for the lien, default or judgment and a
path for resolution along with supporting documentation. A property with an
involuntary tenant's lien will be reviewed and eligibility will be determined
on a case -by -case basis.
n. The value of the property (based on current assessed value, recent (within
90 days of the Program application) or appraised value determined by an
Authority- approved appraiser) plus the value of the Qualifying
Improvements financed by the Program must be equal to or greater than the
sum of (i) the total private property debt including mortgages and maximum
draw amount of any equity lines of credit secured by the property, (ii) the
principal amount of any Program indebtedness attributable to the property,
and (iii) the aggregate principal amount of any fixed assessment liens or
other assessment debt on the property (not including Program assessments).
o. The property owner must certify that the property owner is not party to any
litigation or administrative proceeding of any nature in which the property
owner has been served, or is pending or threatened which, if successful,
would materially adversely affect the property owner's ability to operate its
business or pay the assessments when due, or which challenges or questions
the validity or enforceability of documents executed by property owner in
connection with the Program.
p. The Program may involve issuance of bonds by the Authority on behalf of the
Energy Improvement District(s). Therefore, it is important that property
owners pay their assessments and other property - related obligations in full
on a timely basis. Consequently, the Authority reserves the right to request
additional information in its sole discretion and to deny applications based
on any information that reflects on the likelihood that a property owner may
not pay assessments.
Florida Green Energy Works - Program Handbook 8 of 32 v. 1.1.2012
2. Eligible Property Improvements
In general, in order for property improvements to be eligible for financing through
the Program, they must have a useful life of five years or longer or be attached to
real property or building and must have the capacity to reduce energy or water
usage, generate renewable energy or further wind resistance capabilities for the
property.
Common Improvements
The Program has an extensive list of common energy efficiency (EE), renewable
energy (RE), water conservation (WC) and wind resistance (WR) property
improvements that are eligible for financing, which can be found in the separate
Qualifying Improvements List document organized by these categories. The
improvements are further organized into system and subsystem groupings for
easier navigation within the list. The list also contains each type of improvement's
estimated effective useful life, performance guidelines, and applicable incentive
programs.
Custom Improvements
The Program will also consider, on a case -by -case basis, other improvements (a.k.a.
custom improvements) that do not appear in the Qualifying Improvements List. Such
custom improvements will require additional technical review by the Program if
they are not covered by an incentive program that approves them, likely at
additional cost for the applicant. See Chap 6 "Participation in Rebate /Incentive
Programs ", below, more information about incentive programs.
Ineligible Improvements
Improvements that are not attached to the real property or building and can be
easily removed are not eligible for financing through the program (e.g., screw -in
fluorescent light bulbs). Any improvement that cannot be explained in terms of
industry- standard engineering or scientific principles are also not eligible. See the
Ineligible Improvements page of the Qualifying Improvements List for the short list
of what qualifies as being ineligible.
Loading Circler Recommendation
Property owners are encouraged, but not required, to apply a loading order when
seeking to install eligible on -site renewable energy systems, such as solar
photovoltaic (PV) systems.
Essentially, a loading order is intended to assure that, before installing a renewable
energy system, the property should first evaluate options to reduce its total energy
demand - for example, by 10% - by implementing energy efficiency improvements
identified in the energy evaluation. Energy efficiency improvements are typically
less expensive on a per kWh basis (i.e., cost per kWh saved through efficiency is less
than the cost per kWh generated through renewable energy), and decreasing energy
demand usually makes it possible to decrease the size (and cost) of the desired
Florida Green Energy Works - Program Handbook 9 of 32 v. 1.1.2012
renewable energy system. Consult with the Program Administrator for approaches
to the loading order.
Responsibility for Qualifying Improvements
The Program's PACE financing option is a financing program only. By establishing
the Qualifying Improvements List, the Authority is not recommending nor
warranting any particular improvements. Neither the Authority nor the
Administrator is responsible for the improvements or their performance.
Property owners are solely responsible for the improvements installed on their
property. Should there be any unsatisfactory performance or other system - related
issues that arise during or after installation, the property owner must address those
directly with the responsible contractor according to the terms of the contract
between the two parties.
The Program's PACE3PT" option is offered by Demeter Power Group, Inc., and any
improvements installed utilizing PACE3P` shall be governed solely by a separate
agreement executed between the property owner and Demeter Power Group, Inc.
Neither the Authority nor the Administrator is responsible for the improvements or
their performance. Should there be any unsatisfactory performance or other
system - related issues that arise during or after a PACE3PT" financed installation, the
property owner must address those directly with Demeter Power Group, Inc.
according to the terms of the contract between the two parties.
Minimum and Maximum Project Funding
The Authority requires a minimum funding request of $10,000. The Authority will
only authorize funding requests in an amount equal to the final cost of installing the
Qualifying Improvements (including the energy evaluation fee) less State, Local and
Utility rebates plus the additional items identified in Chap 12 "Financing Cost;
Interest Rate ", below. The funding limits are per property per financing request.
3. Eligible Contractors
Qualified Contractors
There are two primary types of contractors that may participate in the Program:
evaluators and installation contractors.
Selecting an Energy, Water or Wind Resistance Evaluator
The commercial building energy audit market is fragmented, with no universally
accepted standards for auditors (referred to in the Program as "evaluators ").
Although the Program does not endorse specific contractors or accreditation
programs, it has compiled some recommendations for selecting a qualified energy
auditor and getting a suitable energy audit conducted on the subject property. See
Appendix B — Guidance for Selecting Energy Evaluator and Appendix C — Energy
Evaluator Types for more details.
Florida Green Energy Works - Program Handbook 10 of 32 v. 1.1.2012
Selecting an Installation Contractor
The Qualifying Improvements must be installed by contractors who meet the
eligibility criteria set forth for the specific category of work being financed. If you
choose to work with a contractor that does not meet eligibility criteria below, you
are not eligible for Program financing:
• Energy efficiency and water conservation improvements must be
installed by licensed contractors.
• Solar PV and water heating projects must be installed by licensed
contractors.
Wind resistance improvements must be installed by licensed
contractors.
The Authority may provide lists of contractors who have satisfactorily participated
in the Program or received training regarding Program requirements, but the
Authority does not warrant the work of any such contractor. The Authority
encourages you to do your research and receive bids from multiple contractors
before signing a contract. Neither- the Authority nor the administrator is responsible
for determining the appropriate equipment, price or contractor for your property.
By establishing these contractor eligibility criteria, the Authority is not
recommending a particular contractor or warranting the reliability of any such
installer. The Program is a financing program only. Neither the Authority nor the
administrator will participate in the resolution of any dispute between you and your
installer or equipment manufacturer.
4. Eligible Project Lenders
Lenders must be qualified to purchase a municipal bond as detailed in the Bond
Purchase Contract, a sample of which can be provided upon request. Generally,
basic qualification criteria includes that the lender is one of the following:
a. An "accredited investor" as defined by Rule 501(a) promulgated under
the Securities Act of 1933; or
b. A "qualified institutional buyer" as defined in Rule 144A under the
Securities Act of 1933; or
c. A bank, savings institution or insurance company; or
d. A certain trust, custodial or similar arrangements conforming with
Section 7(iv) of the Sample Bond Purchase Contract.
Florida Green Energy Works - Program Handbook 11 of 32 v. 1.1.2012
S. Energy, Water & Wind Resistance Evaluations
Energy Evaluations
The Program requires properties seeking to finance energy efficiency or renewable
energy improvements through the Program to receive an energy evaluation
conducted by a professional energy evaluator of the owner's choice and at the
owner's cost. That auditor must meet Program eligibility requirements (see Chap. 3
"Eligible Contractors ", above, for or more detail). Note that the cost of the energy
evaluation can be included in the financing.
The improvements for which the property owner is seeking financing must appear
as identified opportunities or recommendations within the resulting evaluation
report. The Program reserves the right on a case -by -case basis to review and
approve improvements that do not appear as an identified opportunity or
recommendation within the evaluation report.
The type of energy evaluation that the Program requires the property owner to
conduct on its property depends on the number of improvements and total project
cost. The Program has organized these into three evaluation tiers for easier
reference. See Table 1 below for the resulting evaluation tiers and thresholds.
Table 1-- Programs Energy Evaluation Tiers
Energy Evaluation Evaluaion Type Project Cast
Tier.hnprovements
Tier 1 Targeted Audit 1 Any amount
Tier 2 ASHRAE Level 1 2 or more Less than $100k
Tier 3 ASHRAE Level 2 2 or more Equal to or more than $100k
The Targeted evaluation and ASHRAE evaluation types referenced in the above table
are fully described within Appendix B- Energy Evaluation Types.
Water Evaluations
The Program requires properties seeking to finance water conservation
improvements through the Program to receive a water evaluation conducted by a
professional water evaluator of the owner's choice and at the owner's cost. That
evaluator must meet Program eligibility requirements (see Chap. 3 "Eligible
Contractors ", above, for or more detail). Note that the cost of the water evaluation
can likewise be included in the financing.
The improvements for which the property owner is seeking financing must appear
as identified opportunities or recommendations within the resulting evaluation
report. The Program reserves the right on a case -by -case basis to review and
approve improvements that do not appear as an identified opportunity or
recommendation within the evaluation report.
Florida Green Energy Works - Program Handbook 12 of 32 v. 1.1.2012
Wind Resistance Evaluations
Regardless of the types of improvements installed, the Program requires all
participants to undergo a wind resistance improvements evaluation through the
program.
Property owners can use the resulting evaluation report(s) to identify and prioritize
building- specific energy and wind resistance improvement opportunities and to
predict associated cost /energy /water /insurance savings. The Program also uses the
evaluation report(s) as a third -party check that the selected improvements for
implementation are appropriate for the property and its unique context, thus
reducing Program and participant costs.
Visit www.citizensfla.com for more detail about insurance benefits of wind
resistance improvements.
6. Participation in Rebate /Incentive Programs
Depending on the types of improvements that the property owner is including in
their financing through the Program, the Program may participation in applicable
rebate and /or incentive programs (offered through the State, local utilities, federal,
or associated third -party programs).
Rebate and incentive programs reward participants with cash payments or tax
credits for implementing improvements that, for example, reduce energy (or water)
usage, thus reducing a property owner's project cost. "Netting out" rebates and
incentives reduces the total financing amount that a property owner will request
through the Program. Leveraging such existing programs also helps reduce overall
program costs by providing credible savings projections, quality control and
assurance, and project inspection services at no additional cost that maximize
project benefits.
Participation is Encouraged But Not Required
Property owners seeking financing through the Program are encouraged, but not
required, to participate in certain rebate or incentive programs that are or may be
available.
Given the benefits associated with such programs (see the.section entitle
"Benefits "), the Program anticipates that most property owners will elect to
participate in all applicable rebate and incentive programs that cover improvements
in their projects. The Program strongly encourages such participation, but does not
require it in order to give property owners maximum flexibility.
Reasons some property owners may choose not to participate in applicable rebate
or incentive programs may include;
Florida Green Energy Works - Program Handbook 13 of 32 v. 1.1.2012
• The rebate /incentive amount is small compared to the time and effort
involved in applying for such.
• The rebate /incentive program possibly introduces delays (e.g., for project
review, approval, inspections, etc.) that the project cannot accommodate.
Consequences of Nonparticipation in Optional Programs
Because rebate and incentive programs can act as a third -party check for the
Program on the validity of the property owner's improvements and their likely
energy savings, participation in such programs reduces the Program's costs for
project review, verification and quality assurance /control (QA /QC) activities.
Therefore, property owners who elect not to participate in such rebate or
incentive programs may incur additional fees to cover the Program's costs in
conducting activities normally performed by such programs. The Authority
reserves the right to impose these fees, which may vary depending on the type and
complexity of improvements included in the project. See Appendix D - Program
Costs /Fees for a summary of possible additional fees.
7. Application and Approval Process
Program Costs /Fees
There are a number of direct and indirect costs and fees associated with the
Program. Some of these are mandatory fees, whereas a few are conditional
depending on what type of financing is being utilized (PACE or PACE3P"'), what
improvements are being undertaken, what rebate or incentive programs are being
utilized, and what method of property valuation is chosen. Most of these can be
included in the financing. See Appendix D - Program Costs /Fees for a breakdown of
Program costs and fees.
Debt Service Reserve Funs!
The Authority reserves the right to raise and /or charge fees for use in establishing
and funding a Debt Service Reserve Fund (DSRF) for each financing project in order
to provide greater security (lower risk) for project lenders. For some lenders, this
reduced risk may support the ability to offer better financing rates and terms to
property owners participating in the Program. Other lenders may not find the DSRF
useful in impacting rates.
If the Authority elects to offer a DSRF option and there are sufficient DSRF funds,
each project approved by the Program has the option to a standard allocation for a
DSRF equal to 10 percent of the total requested financing amount, with a maximum
DSRF allocation of $100,000 for any single project (which, at 10 percent, would
support up to a $1 million project financing).
The Program will consider requests that exceed the $100,000 maximum DSRF
allocation on a case -by -case basis, as well as allocations greater than the standard
Florida Green Energy Works - Program Handbook 14 of 32 v. 1.1.2012
10 percent. Project lenders may also decline to receive an allocation from the DSRF,
if they so choose.
Two -Step Application Process
The Program's application process is broken into two steps: 1) Eligibility
Application, and 2) Final Application, as detailed below. Applicants must complete
both steps in order to be fully approved.
Stela 1: Submit an Eligibility Application
This step is a simple process for property owners to quickly indicate their interest in
participation and to submit preliminary details of their proposed project. This gives
the Program the ability to promptly ascertain project eligibility as well as give
owners the preliminary indication that their property meets program requirements.
The Eligibility Application may include a request for an allocation from the Debt
Service Reserve Fund, if desired. The Program has developed an Eligibility
Application form to be used in completing this step.
Items to be submitted with Initial Application:
• Eligibility Application Form: filled out completely
• Organizational Documents: necessary if property owners is an entity
• Title Search Payment: a check for the title search payment made out to the
"Florida Green Finance Authority" so the Authority can perform a title search
to verify the property meets eligibility requirements. (Note: the title search
fee is listed in the current Program Fee Schedule on file with the Authority.
The property title search may cost more for more complicated ownership
structures or histories, in which case the Program will contact the property
owner to provide the associated cost before conducting the search.)
The Program will review the completed Initial Application form and related items
within fifteen (15) business days and determine if all eligibility requirements are
met (incomplete applications will result in a longer review period). Upon approval
of the application, the Owner will be conditionally eligible for participation in the
Program. Eligibility will remain valid as long as the applicant makes progress
toward completing the second step of the application process, according to the
Program deadlines for submitting the associated Final Application. Failure to meet
Program deadlines (or to obtain extensions to deadlines) for preparation of the
Final Application may result in a cancellation of eligibility. Approval of the Final
Application will establish ultimate eligibility for funding disbursements.
Step 2: Submit a Final Application
This step is a more involved process that requires the property owner to complete
all related planning and application tasks, including: conducting an energy
evaluation (if applicable), obtaining existing mortgage holder acknowledgment /
authorization, and finding a project lender. Upon review and approval of the
complete Final Application, the Program will issue a reservation for financing (a
Florida Green Energy Works - Program Handbook 15 of 32 v. 1.1.2012
"Reservation "), including any necessary adjustments to the reserved allocation from
the DSRF (if applicable), based on any refinements that have occurred (since
conditional eligibility for participation) to project scope and desired amount to be
financed. The Program has developed a Final Application form and other related
documents to be used in completing this step.
Items to be submitted with Final Application:
• Final Application Form: completed and signed by all property owners or
their legally authorized representatives
• Program Terms: signed by all property owners or their legally authorized
representatives
• Contractor Bids: copies of contractor bids for the work they will be
performing on the project, along with a completed Contractor Coversheet
attached to each bid
• Property Value Statement Form: completed and signed by all property
owners or their legally authorized representatives
• Lender Authorization Form: a completed and signed Lender Authorization
form from any and all existing mortgage or lien holders on the property
• Energy / Water / Wind Resistance Evaluation Reports: copies of the
appropriate energy, water and /or wind resistance evaluation reports
conducted on the property that contain recommendations for the property
improvements for which the property owner is seeking financing
• Rebate / Incentive Documents: copies of applications and /or pre - approval
letters from rebate /incentive programs from which the project will receive
related funding
• Application Fee. (Note: the application fee is currently waived)
Tasks and deadlines for Submitting Final Application
Related to the items to be submitted with the Final Application, there are three
major tasks that must be accomplished between determination of conditional
eligibility and submission of the Final Application. Completing these tasks by certain
deadlines (or receiving deadline extensions from the Program) is necessary in order
to maintain eligibility and also to prepare for submitting the Final Application. The
property owner must make progress toward completing these tasks within a certain
timeframe relative to when conditional eligibility was approved. Those tasks, and
their associated deadlines, are listed in Table 4below.
Florida Green Energy Works - Program Handbook 16 of 32 v. 1.1.2012
"fable 4 - Tasks & Deadlines for Maintaining Conditional Reservation
Task
esimp, f> a *........,
1. Evaluation & Final
If not already conducted, have an
Within 90 calendar days of
Project Scope
appropriate qualifying evaluation
conditional eligibility
conducted on the property by a
professional, and determine final project
scope and financing amount.
2. Lien Holder
Obtain written acknowledgment /
Within 90 calendar days of
Approval
consent from all existing mortgage or
conditional eligibility
lien holders on the property for
participation in the Program.
3. Project Lender
Identify a project lender that will
Within 90 calendar days of
rovide financing for the project.
conditional eli ibili
Submit Final
Submit Final Application with all tasks
Within 120 calendar days
Application
completed and necessary approvals.
of conditional eligibility
*Exceptions to the above deadlines may be granted on a case -by -case basis if the Program
determines that the applicant
is making good progress toward completing
these tasks.
Final Application Approval
The Program will review the completed Final Application form and related items
within ten (10) business days and determine if all eligibility requirements are met
(incomplete applications will result in a longer review period). Upon approval of the
application, the Owner will be issued a Reservation for participation in the Program.
Approval or denial will be based on the eligibility requirements listed within this
handbook. Submission of an application does not guarantee that you will be
approved for Program participation. If you proceed with installation before
notification of a Program approval, you risk incurring the cost of installation
without the benefit of Program financing.
In addition, a Program approval does not guarantee that you will receive funds.
Before you receive funds through the Program, you must satisfy the requirements
listed in Chap. 8 `Requesting Funding Disbursement" below.
Addressing DSRF Underestimates
If the DSRF amount that the applicant originally requested is underestimated (i.e.
increases between Initial Application or Final Application steps), the Program may
or may not be able to allocate additional funds from the DSRF to cover the
difference. There are several options to rectify this, as detailed below:
1. The applicant can contribute funds to the DSRF to cover the gap (and such
funds can be added to the total amount financed; if there are never any
payment defaults, applicant would get these funds back when financing was
paid off).
2. The applicant can adjust the agreement with the project lender for the lender
to accept less DSRF coverage (which may result in a change of related
interest rate or terms).
Florida Green Energy Works - Program Handbook 17 of 32 v. 1.1.2012
3. The applicant can reduce the scope of the project and the associated amount
of needed financing such that the original DSRF gives sufficient coverage.
4. The applicant can contribute capital (e.g. internal funds) to reduce the
project costs such that the remaining amount being financed is sufficiently
covered by the original DSRF estimate.
8. Requesting Funding Disbursement
Funding [disbursement Types
After a Qualified Contractor has completed installation of the Qualifying
Improvements on the subject property or has reached a milestone at which a
progress payment is permitted (see "Progress Payments" below), you must submit a
funding disbursement request and the Project Verification documents listed below in
order to receive funding from the Program. The administrator will review the funding
request and the Project Verification documents, and produce Final Program forms.
The Final Program forms will be sent to you within five (5) business days after you
have submitted a funding request and the Project Verification documents. You must
return the executed Final Program forms to the administrator within seven (7)
calendar days. The Project Verification documents and Final Program forms are
listed below.
Project Verification Documents (submitted by you with your funding request)
a. A signed final permit inspection from the appropriate City's
Department of Building Inspection for applicable completed projects
b. A final invoice from all contractors (or, for progress payment, an
invoice stating percentage of work complete; see "Progress Payments"
below.)
c. A copy of any applicable rebates or incentives.
Final Program Forms (to be executed and returned by you within 7 days of
receipt from the Authorityl
a. An executed and notarized Financing Agreement (by all property
owners or authorized representatives). By executing the Financing
Agreement, you agree to annex the subject property to the Energy
Improvement District and to pay assessments in specified amounts for
the period specified in the Financing Agreement, consent to recordation
of a lien against the subject property, and release the Authority, the
participating local government and its administrator from any liability
associated with installation of the Qualifying Improvements or their
performance.
b. Utility Authorization to Release Information.
c. Payment Assignment Form, if the payment is to be assigned to the
contractor.
Florida Green Energy Works - Program Handbook 18 of 32 v. 1.1.2012
When the Authority has received all required documentation from you, it will
confirm your compliance with the eligibility requirements (see "Eligibility" above).
The timing of when the Authority will record the Financing Agreement and lien as
an encumbrance on the subject property is determined on a case -by -case basis
according to the terms agreed upon between the Authority, the property owner, and
the project lender. The Authority will document the bond or other financing
transaction with you and the project lender identified by you, and approve the
issuance of bonds or other financing for purchase by the project lender.
All funding requests will be deemed final upon submission of the required
documentation listed above and may not be subsequently changed.
In the event a property owner cancels financing after a request for funding is
submitted to the Authority, all expenses incurred by the Authority for
recording tax liens, preparing bond or other financing documents and
removing tax liens will be the responsibility of the applicant. The Authority
will terminate the lien evidenced by recordation of the Financing Agreement
upon receipt of reimbursement from the applicant for these expenses.
'rabic I - Related Disbursement Request Items to be Submitted
Progress Payment:
• Applicable permit(s)
• Invoices, cost statements, or
equivalent from contractors
showing progress
• Copies of any applicable rebates
or incentives
Check made out to the Florida
Green Finance Authority for
progress payment processing*
Final Payment:
• Applicable finalized permit(s)
• Final invoices, cost statements,
or equivalent from contractors
• Copies of any applicable rebates
or incentives
• Receipts, statements, purchase
orders, or other evidence of
actual cost for items not covered
in contractor invoice
*Please consult the Authority for amounts listed in the Program Fee Schedule.
If the property owner wishes to assign payment directly to the contractor that has
performed the work on the project, then the owner must also submit a completed
Disbursement Assignment Form to the Program.
The Program will review the submitted Disbursement Request and associated items
within five (5) business days and, upon approval, issue payment.
Progress Payments
The Authority will consider making progress payments in certain circumstances on
a case -by -case basis. In general, the Authority may agree to make progress
payments before the installation of the Qualifying Improvements is complete if
certain criteria are met, which may include (i) the amount financed is in excess of a
Florida Green Energy Works - Program Handbook 19 of 32 v. 1.1.2012
minimum amount, (ii) the time required to install the Qualifying Improvements
exceeds a certain length of time, (iii) the amount of each progress payment is a
minimum percentage of the total cost of the Qualifying Improvements to be financed
by the Program and (iv) based on a certification of the Qualified Contractor, the
percentage of the total amount to be financed that will have been disbursed by the
Authority after disbursement of the progress payment will not exceed the
percentage of the installation work that has been completed.
Program Participation Expiration
If the Authority approves your application, your approval will be effective for 360
calendar days. Property owners that receive Program approval must have a
Qualified Contractor complete installation of the Qualifying Improvements on the
subject property and complete the financing process within this period. If you fail to
have a Qualified Contractor complete the installation of Qualifying Improvements on
the subject property within the reservation period, your Program approval will
expire. You may request to extend your Program approval prior to its expiration for
an additional 90 days. However, you will have to pay an extension fee.
An applicant may cancel a Program approval in writing during the 360 -day
period, but will forfeit the application fee (if applicable) and the opportunity
to receive funding under that approval. The applicant may reapply but will
not be guaranteed funding availability and will need to pay another
application fee.
9. Quality Assurance and Quality Control (QA /QC)
In order to ensure that financed property improvements are properly completed
and are able to deliver expected savings and benefits, the Program recommends that
property owners either participate in existing utility rebate or incentive programs
(where available and applicable) that have their own verification /inspection
mechanisms, or submit to and pay for other third -party site inspections (service
providers may be retained by the Program for this purpose).
The Program and /or the partner project lender may require additional inspections
if the property owner requests progress payments be made before final payment -
also at additional cost.
10. Measurement and Verification (M &V)
The Program requires property owners to enroll in the free energy usage tracking
and benchmarking service called ENERGY STAR Portfolio Manager which provides
access to the data necessary to determine how the installed improvements are
performing over time, and how their building is performing relative to its peers.
Florida Green Energy Works - Program Handbook 20 of 32 v. 1.1.2012
The Program reserves the right to require property owners to utilize additional data
collection tools developed for the Program and to require property owners to grant
the Authority access to their ENERGY STAR Portfolio Manager accounts for a period
of three years after project completion so that the Authority can analyze project
performance and gauge program effectiveness. Information received under this
provision shall remain confidential.
Property owners and project lenders are encouraged to conduct more detailed
performance analysis on their own to ensure continued cost and energy savings.
11. Description of Bond /Legal Documents
The following table summarizes the Program's major legal documents.
Table 5 - Major Bond /Legal Documents
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Form of Lender Consent
Relates to a property owner's existing mortgage
Part of Final
lender /lienholder, whereby that existing
Application
lender /lienholder (i) consent to the levy of special
Submission
assessments and the creation of the assessment
lien and (ii) agrees that the proposed assessment
lien will not constitute an event of default of
trigger the exercise of any remedies under the
loan documents in force between the existing
lender /lienholder and the property owner.
Form of Financing Agreement
Document pursuant to which the property owner
Closing
agrees to the levy of assessments for purposes of
the issuance by the Authority of an assessment
bond to a project lender and which is recorded in
the real property records to provide notice of a
lien securing payment of assessments on the
property.
Form of Bond Purchase
A contract between the Authority and the lender,
Closing
Agreement or other finance
pursuant to which the lender (i) agrees to
agreement
purchase an assessment bond issued by the
Authority and (ii) makes representations and
warranties that it is a "qualified investor'. This
contract also reflects the basic financing terms
agreed between the lender and the property
owner.
12. Financing Cost; Interest Rate
The following terms are helpful in understanding the Program's financing structure.
Financing Cost. In order to receive funding, you will agree to pay
assessments in an amount equal to (i) the principal amount you received through
the Program, (ii) interest on the principal amount you received through the
Florida Green Energy Works - Program Handbook 21 of 32 v. 1.1.2012
Program and (iii) initial and on -going program expenses summarized in Appendix C.
The Authority expects to levy assessments on your property tax bill, although it
reserves the right to bill or collect assessments separately.
Principal Amount. This is the amount equal to all project costs you choose to
finance, which may include costs associated with implementing the project such as
permits, evaluation expenses, application fee, an applicable deposit to a debt service
reserve fund if required and capitalized interest (see "Capitalized Interest" below).
Interest Rate. The rate of interest on the amount of funding you receive will
be negotiated between you and the financial institution identified by you.
Capitalized Interest. Because of the August 15th deadline for placing the
assessments on the property tax bill, the principal component of the assessment
may also include the first tax year's installments if the deadline cannot be met.
Deposit to a Debt Service Reserve Fund. A debt service reserve fund (DSRF)
may be required by your chosen lender as additional security to participating
financial institutions to pay debt service on the bonds in the event of late payments
or default by the property owners. The Authority may permit property owners to
finance a reasonable deposit to a DSRF, if a DSRF is required by the lender identified
by you.
Initial and On -going Program Administrative Costs. Program Administrative
Costs are built into the total financed amount and the ongoing assessment
requirement (which increases the effective interest rate you will pay). The fees for
any specific project will be disclosed and agreed to prior to financing.
13. Important Legal Terms
Repayment Terms
Following recordation of the Financing Agreement, the property owner will be
obligated to pay the assessments specified in the Financing Agreement.
.Assessments
A property owner must pay the agreed -upon assessments regardless of personal
financial circumstances, the condition of the property, or the performance of the
Qualifying Improvements. Do not apply for financing if you are not certain you can
pay the assessments. The failure to pay your assessment in full will result in
financial repercussions, including penalties, interest and, potentially,
foreclosure of your property by the Authority.
Florida Green Energy Works - Program Handbook 22 of 32 v. 1.1.2012
Foreclosure Terms
If you use an escrow account to pay annual property taxes, you must notify your
escrow company of your assessment payments. You will need to increase your
monthly payments to the escrow account by an amount equivalent to your annual
assessments divided by 12 months.
Compliance with Existing Mortgages
Recordation of the Financing Agreement will establish a continuing lien as security
for your obligation to pay assessments. The lien securing the obligation to pay
assessments will be senior to all private liens, including your existing purchase
mortgage(s). Many mortgage and loan documents limit the ability of a property
owner to place senior liens upon property without the consent of the lender, or
authorize the lender to obligate you to prepay the senior obligation. Please confirm
with your lender(s) that participation in the Program will not adversely
impact your rights with respect to any existing loan documents, or obligate
you to prepay your assessments. Property owners must notify the lender in
writing and receive written acknowledgment /consent from the lender prior to
applying to the Program. The Program will provide lender acknowledgment /
consent templates, but responsibility for addressing issues with existing lenders is
the property owners'.
Transfer or Resale of the Subject property
If you sell your property prior to the end of the agreed -upon assessment period, the
new owner will assume the assessment obligation. Ownership of any Qualifying
Improvements on the subject property will transfer to the new owner at the close of
the real estate sale; Qualifying Improvements financed through the Program may
not be removed from the property until the bond issued by the Authority to finance
installation of the Qualifying Improvements has been retired. Program participants
agree to make all legally required disclosures about the existence of the assessment
lien on the property in connection with any sale.
Rebates and Taxes
Participation in this Program does not reduce rebates available through federal,
State or local rebate programs.
Please consult with your tax advisors with respect to the State and federal tax
implications of participating in the Program.
Neither the Authority nor the administrator is responsible for the State or federal
tax consequences of participating in the Program.
Changes in State and Federal Law
The Authority's ability to issue bonds to finance the Program is subject to a variety
of State and federal laws. If those laws or the judicial interpretation thereof were to
change after you have applied for funding (and, thereafter, incurred the cost of
installation in anticipation of Program funding) but before the Authority issues a
Florida Green Energy Works - Program Handbook 23 of 32 v. 1.1.2012
bond to finance your funding request, the Authority may be unable to fulfill your
funding request. The Authority shall have no liability as a result of any such
change in law or judicial interpretation.
Changes in the Program Terms; Severability
The Authority reserves the right to change these Program Terms at any time
without notice; however, no such change will affect your obligation to pay
assessments as set forth in the Financing Agreement. Your participation in the
Program will be subject to the Program Terms in effect from time to time during
your participation.
If any provision of these Program terms is determined to be unlawful, void, or for
any reason unenforceable, then that provision shall be deemed severable from these
Program terms and shall not affect the validity and enforceability of any remaining
provisions.
Disclosure of Property Owner Information
Property owner agrees that the Authority may disclose its personal /corporate
information submitted as part of the Program to the administrator, and that the
Authority and the administrator may disclose the property owner's information to
third parties when such disclosure is essential to the conduct of the Authority's
business or to provide services to the property owner, including but not limited to
where such disclosure is necessary to (i) comply with the law, legal process or our
regulators, and (ii) enable the Authority or the administrator's employees or
consultants to provide services to the property owner and to otherwise perform
their duties. The Program will not provide property owner information to third
parties beyond the Program administrative team for any telemarketing, e-mail or
direct mail solicitation.
All property owner information obtained is treated with great care in order to
protect privacy and security.
You further- agree to the release of property owner's name and contact information
and the property's utility usage data to the Authority, its grantors and its designated
contractors for the purpose of conducting surveys and evaluation of the Program.
Fraud
Giving materially false, misleading or inaccurate information or statements to the
Authority or its employees and agents (or failing to provide the Authority with
material information) in connection with an application is punishable by law.
Material representations include, but are not limited to, representations concerning
the project costs, ownership structure and financial information relating to the
property and the applicant.
Florida Green Energy Works - Program Handbook 24 of 32 v. 1.1.2012
Exceptions to these Terms and Provisions
The Program Administrator may make exceptions to the terms and provisions
detailed in this handbook where there is a finding that such exception furthers the
goals and objectives of the Florida Green Energy Works Program. Consideration of
an exception request from a property owner may involve payment of the
Application Fee or other fees.
Florida Green Energy Works - Program Handbook 25 of 32 v. 1.1.2012
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Appendix B -- Guidance for Selecting Energy Evaluator
Overview
The commercial building energy evaluation and audit market is fragmented, with no
universally accepted standards for auditors. Although the Program does not endorse
specific contractors or accreditation programs, it has compiled this guidance to serve as
suggested minimum requirements that property owners might look for in an energy
auditor in the commercial sector.
Credentials /Qualifications
Although the following credentials and qualifications are not required, the more of these
that a service provider's staff has, the more confident you can be in their knowledge,
experience and abilities:
• Florida Professional Engineering License (PE)
• ASHRAE Building Energy Assessment Professional (BEAP) Certification
• Certified Energy Manager (CEM) or Certified Energy Auditor (CEA) from the
Association of Energy Engineers (AEE)
• Multi- disciplinary competence (lighting, HVAC, refrigeration, appliances)
• Years of directly relevant professional experience
Recommendations/Questions for Prospective Energy Auditors
1. If seeking a whole - building energy audit, request that the auditor follow the ASHRAE
Level 1 and /or 2 audit guidelines. (This is a requirement of the Program for projects
that include multiple improvements)
a. Ask for a copy of previous ASHRAE Level 1 and 2 audits that they have
completed.
b. Request and check references for past building energy audit work
2. Ask about training
a. Are they a mechanical engineer?
b. A licensed Professional Engineer (PE)?
c. A Certified Energy Manager, Certified Energy Auditor, or Certified Lighting
Efficiency Professional through the Association of Energy Engineers, or other
accredited energy audit training program?
3. Ask about active involvement with relevant professional organizations such as (in
alphabetical order):
a. Association of Energy Engineers (AEE)
b. American Society of Heating Refrigeration and Air - Conditioning Engineers
( ASHRAE)
c. ENERGY STAR (U.S. E.P.A.)
d. Illuminating Engineering Society (IES)
e. U.S. Green Building Council (USGBC)
4. Be clear about what you expect as the outcome from the building evaluation report. You
may want to specifically ask for some of the following products or services:
a. Actionable recommendations
Florida Green Energy Works - Program Handbook 27 of 32 v. 1.1.2012
b. Realistic treatment of utility rates and energy cost savings
c. Transparent (not black box) analysis
d. Guidance to more resources to assist with implementation
e. Credible energy and cost savings estimates
f. Reasonable cost estimates or vendor bids
g. Interactive effects of multiple improvements
h. Measurements of existing systems
i. Logging of temperatures or base case energy consumption
j. Hourly modeling
k. Project design specifications
1. Construction management services
m. Utility incentive /rebate application assistance
5. Talk to your CFO and discuss with your evaluator what type of financial /economic
analysis would be most helpful to your decision - making process. Inform the evaluator
that the Program has a simple, uniform Energy and Cost Savings Analysis template (an
Excel spreadsheet) that the evaluator can use to present the energy and economic data.
Other Tips for the Building Audit Process
1. Collect all as -built mechanical, electrical and plumbing (for water audits) plans and
specs that you have accessible, and make them available to the auditor.
2. Ask your property manager and building engineer to be present at the building audit.
3. Contact your utility account representative to coordinate incentives for your project.
4. You may want to involve vendors that you typically rely on, or have existing contracts
with, such as controls companies, HVAC service companies, or lighting companies. They
can provide cost estimates for proposed retrofits.
Florida Green Energy Works - Program Handbook 28 of 32 v. 1.1.2012
Appendix C — Energy Evaluation Types
Overview
This appendix contains a description of four levels of building energy evaluation that are
commonly used in the energy efficiency industry. They are intended to help address
questions that property owners may face when they decide to undertake an energy
efficiency, renewable energy, or water conservation project.
Industry Standard Audit Formats
While there is no single approach to conducting building evaluations, there are widely
accepted industry standard audit formats. Depending on the size of the building, scope of
the energy efficiency measure(s), and the complexity of systems, one can specify a Targeted
Audit, or American Society of Heating Refrigeration and Air - Conditioning Engineers
( ASHRAE) Level 1, 2, or 3 audit. Costs of audits are dependent on these variables as well.
Targeted Audit
In a Targeted Audit, the analysis need only account for the energy use of the system of
concern, rather than the energy use of the whole building. This approach is generally used
for larger, single- system projects. For example, this approach may be used for a project to
replace only a cooling tower that is part of a building's chilled water system. In this
example, only the chilled water system would be examined in the targeted audit.
In addition to reporting the same minimum building and Energy Conservation Measure
(ECM) information as above, this approach also includes an estimate of the base case
energy use of the targeted system. In the example above, the Targeted Audit should include
the base case energy use estimate of the combined cooling tower and chilled water plant.
: ASHRAE Level 1, 2, and 3 Audits
The ASHRAE evaluation summary below lays out basic parameters for performing varying
degrees of a whole building audit. For more precise guidelines see the ASHRAE Publication
"Procedures for Commercial Building Energy Audits" (available from the ASHRAE online
bookstore at http : / /www.ashrae.org).
Level I to III designations are based on increasing level of detail, depth, and cost. Each
evaluation level includes an initial, preliminary analysis that compares the building energy
use to similar building stock based on the energy use intensity (EUI in kWh /sq ft or
kBTU /sq ft). Please see additional descriptions and components of these energy audit
types in Table 2, Table 3, and Table 4, below.
Florida Green Energy Works - Program Handbook 29 of 32 v. 1.1.2012
Table 2-8S8R&E Energy i\mdit Level Descriptions
Pe
; *|/ |
Auditte 'I
Walk-through analysis
Level
Brief review of building systems with primarily qualitative results.
Energy Survey and Engineering Analysis
Level Includes identification of energy efficiency improvements with estimates of energy
and cost savings for capital projects.
Detailed Analysis w[ Capital-intensive Modifications
Level Includes more detailed calculations based on monitored end use data or hourly
building simulations. Also includes more detailed project specifications for retrofits.
Table 3-ASBR48 Energy Audit Activities
Table 4-ASBRAEEnergy AudbRuppr|Cnmnpmoents
'Audit Level
Audit Activit
0
0
0
Walk-through survey
*
0
0
Identify low-cost/no-cost recommendations
Review mech. & elec. design, condition and O&M practices
0
0
Measure/Monitor key parameters
0
0
Analyze capital improvements (savings & costs inc. interaction)
0
0
0
Additional testing/monitoring
0
0
Detailed system modeling
0
0
Schematic layouts for recommendations
0
0
Meet with owner to review recommendations
0
0
Table 4-ASBRAEEnergy AudbRuppr|Cnmnpmoents
Florida Green Energy Works - Program Handbook 30 of22 v. 1.1.2012
'Audit Level
Estimate savings from utility rate change
0
0
0
Compare energy use intensity (EUI) to similar sites
*
0
0
Detailed end-use breakdown
0
0
Estimate low-cost / no-cost savings
0
0
0
Estimate capital project costs, savings
0
0
Complete bldg description & equipment inventory
0
0
Detailed description of recommendations
0
0
Recommended monitoring & verification (M&V) method
0
0
Specifications and schematics of all recommendations
0
Florida Green Energy Works - Program Handbook 30 of22 v. 1.1.2012
Minimum Data Requirements
For all projects, regardless of size or audit type, the energy analysis or evaluation report
should, at a minimum, provide the following key parameters in an easy -to- identify
summary table. Note: Some of these requirements are included in a Level I Energy
Evaluation while others augment the requirements in a Level 1 Evaluation.
For the building overall:
• Description of the Project and facilities affected by the Project
• The square footage for conditioned space by space type (e.g. office, retail, industrial,
schools, hospital, high tech, etc)
• The historical annual energy consumption by fuel type (e.g. electricity kWh, natural
gas therms) for at least one year
• The historical annual energy cost by fuel type
• The applicable utility rate schedule(s)
For each proposed Energy Conservation Measure (ECM):
• Measure description (including specifications, as appropriate)
• Estimated annual energy consumption savings (e.g. kWh, therms, kBTU) based on
specific application (not manufacturer's generic, average estimate)
• Estimated peak demand savings (kW)
• Estimated operations and maintenance savings (if applicable)
• Estimated measure utility cost savings
• Estimated measure cost
• Calculated measure simple pay back
• Measure Equipment Useful Lifetime (from approved measure list if available)
Florida Green Energy Works - Program Handbook 31 of 32 v. 1.1.2012
Appendix D -- Program Costs/Fees
This appendix contains a summary of the direct and indirect program costs and fees. Some
of these are mandatory fees, whereas a few are conditional depending on what
improvements are being undertaken, what rebate or incentive programs are being utilized,
and what method of property valuation is chosen. Most of these can be included in the
financing.
<< See attached Program Fee Schedule Tables >>
Florida Green Energy Works - Program Handbook 32 of 32 v. 1.1.2012
Schedule 1
Fee Schedule
Community Opt -In Fee Schedule'
Opt -in fees cover the upfront legal costs of establishing the district as Well as the technology set »up costs of
adding the community to the Program web platform.
ier 1
(MO—T
19
Free
$12,500
$6,250
No charge
$10,000
Tier 2
(20,000 — 74,999)
Free
$15,000
$7,500
No charge
$12,500
Tier 3
(75,000 — 199,999)
Free
$1.7,500
$8,750
No charge
$15,000
Tier 4
(200,000 — 499,999}
Free
$20,000
$10;000
No charge
$17,500
Tier 5
(500,000 +)
Free
$22,500
$11,250
No charge
$20,000
Opt -in fees cover the upfront legal costs of establishing the district as Well as the technology set »up costs of
adding the community to the Program web platform.
Finance Program Closing Fee Schedule
R&-,JdPw'u4l Prneram Faac only gn into PffPrt if the Rc2sidential Program k offered and becomes available
pending resolution of legal uncertainty given FHFA, Fannie Mac and Freddie Mac litigation.
** Pass - through fees are estimates of third -party charges and are subject to change.
$50
mom
$0
$0
APro cessing
Waived
Waived
Simple Buildings:
Simple Buildings:
- $0.02/sq ft (lighting)
- $0.02 /sq ft (lighting)
Energy Audit
$0.02 /sq ft
- $0'06 /sq ft
- $0.06 /sq ft (comprehensive)
(pass - through)"
(comprehensive)
Complex Buildings:
Complex Buildings:
-$0.10 - $o.25/sq ft
-$0.10 - $0.25/s ft
Technical Project
Review
$50
$195
$495
ass -throe h **
Appraisal Fee
(optional.) (pass-
TBD
Est. $2.5k - $5k
Est. $5k - $10k
through)**
Title Search
$425
$425
$425
ass - through) **
Jurisdiction
$0
$0
$0
Set up Fee
Recording Fee (Set by
$10 for l' page; $8.50
each add'l page; $0.60
$10 for 1 "page; $8.50
$l0 for I" page; $8.50 each
tute)
Florida statute) pass -
abstract fee pies doc.
each add'I page; $0.60
add'1 page; $0.60 abstract fee
through) *
stamp tax of
abstract fee plus doc.
plus doc. stamp tax of
stamp tax of $0.35/$1.,000.
$0.35 51,000.
Origination Fee
2.5% of cost of the
2.5% of cost of the
2.5% of cost of the
improvement
imp rovement
improvement
Bond Counsel Legal
TBD
l' BD
TBD
{ ass -through)**
Progress Payment
Request (if applicable)
TBD
$200
$200
Pre - install Site
TBD
$525
$525
Inspection (optional)
Post- install Site
TBD,
$675
$675
Inspection (optional)
Debt Service Reserve
Fund
TBD
Est. 10% of financed
Est. 10% of financed amount
(if required)
amount (subject to lender
(subject to lender approval)
approval)
R&-,JdPw'u4l Prneram Faac only gn into PffPrt if the Rc2sidential Program k offered and becomes available
pending resolution of legal uncertainty given FHFA, Fannie Mac and Freddie Mac litigation.
** Pass - through fees are estimates of third -party charges and are subject to change.
* Residential Program Fees only go into effect if the Residential Program is offered and becomes available
pending resolution of legal uncertainty given FHFA, Fannie Mae and Freddie Mac litigation.
** Pass - through fees are estimates of third -party charges and are subject to change.
1 The PACE District Administration fees cover the cost of the annual audit for the PACE governmental
authority along With district management fees and costs to manage the AuLhoriiy, prepare the assessment
role, and to legally advertise and hold four (4) quarterly hearings per year.
z District assessments are considered levied by the County for purposes of determining commissions under
Chapter 192, F.S. Payments must be paid quarterly.
3 Obapter 147, F.S. requires reimbursement to Ow Property Appraiser For administrative costs, �1 SO peryear
plui ern ennual ft-t- of $0.75 per parrr:1 subject to the assessment
-I-The amount of the fee is dependent on the actual assessments, not to exceed 2%
Finance Proaram Administrative Fees
E
MEMM e
PACE District
0.5% of collected
0.5% of collected
0.5 6 /0 of collected amount
Admin. Feel
amount
mount
PACE District Legal
Fee (Incurred by
0,5% of collected
0.5% of collected
0.5% of collected amount
Authority)
amount
amount
Property s3
Appraiser
$150 /year +
$1.50 /year + $0.75 /per
$150/year + $0.75 /per parcel
er $0.75/ parcel
p p
parcel
p
(Pass-through)"
Tax Collector
1 -2% of collections
1 -2% of collections
1 -2% of collections
ass -throu "
,
* Residential Program Fees only go into effect if the Residential Program is offered and becomes available
pending resolution of legal uncertainty given FHFA, Fannie Mae and Freddie Mac litigation.
** Pass - through fees are estimates of third -party charges and are subject to change.
1 The PACE District Administration fees cover the cost of the annual audit for the PACE governmental
authority along With district management fees and costs to manage the AuLhoriiy, prepare the assessment
role, and to legally advertise and hold four (4) quarterly hearings per year.
z District assessments are considered levied by the County for purposes of determining commissions under
Chapter 192, F.S. Payments must be paid quarterly.
3 Obapter 147, F.S. requires reimbursement to Ow Property Appraiser For administrative costs, �1 SO peryear
plui ern ennual ft-t- of $0.75 per parrr:1 subject to the assessment
-I-The amount of the fee is dependent on the actual assessments, not to exceed 2%
Green,� n TM mm
or
Financing
the Power of Florida
. ......... ..................... __ .... .. .. .... . .... ....... .. . ........... ....
Financing Energy - Saving
Improvements
Throuct Th F
as �
Energy
,rkc Who we are
-Local governments:
- Lantana, Mangonia Park and City of West Palm
Beach
- Chambers:
- Greater Boynton Beach Chamber of Commerce
1.855.171—MORKS I Florid aGreenEnergyWorks.corn �7
Wi
rgy,
1n /h
Program Design Support
we are
partners
PACE PROGRAM PARTNERS
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Special District Management
ERIN I . EWAOY, P.A.
Legal I Government Relations
PEMETER
PACE2P'" Provider
ecochamber
!,'WW Profit
Outreach & Marketing
FINANCIAL PARTNERS & SUPPORTERS:
-PNC RBC Capital Markete
Hall
FloridaGreenEnergyWorksxom
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5i A
Two components:
Our Program
• Green Business Certification Program
• Voluntary Financing for Energy Saving
Improvements
1.855.FL.VIORKS I Florid aGreenEnergyWorks.com
vvnat is
• Property Assessed Clean Energy
• Voluntary low cost energy financing program
• Administered through an Interlocal Authority (the
Florida Green Financing Authority)
• Funds are provided to complete energy efficiency,
renewable energy, water efficiency and wind
resistance projects
• Repayment is through property tax bill over terms up
to 20 years
1.855.FL.WORKS I FloridaGreenEnergyWorksxom
• Wasted energy means wasted money.
• Avoid large upfront costs. Pay over time.
• Reduce operating costs. Benefits both
owners and tenants.
• Major "green" points!
.... ..... .....
1.855.FL.WORKS FtoridaGreenEnergyWorksxom
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PACE Benefits .. . . ........ . .. ..... . ........
• Long term and safe financing
for property owners to
develop energy and water
efficiency improvements
• Promotes Green initiatives
and Sustainability within City
• Reduces environmental
impacts within City
(commercial sector
greenhouse gas emissions)
Economic development:
• Puts construction sector to work
• Increases property's value,
promotes economic development
opportunities and activity (can
increase in TIF funding with
property value increases)
• Increase in building and
construction permits and fees,
• EcoNorthwest Study (April 2011)
for every $1 Million in spending =
$10Million in gross economic
output + $1 Million in tax revenue +
60 jobs
1.855.FL.WORKS FloridaGreenEnergyWorks.com
cc PA(
tatus in Florida
• Additional municipalities and counties
are presently moving on PACE.
• Numerous local governments across the
1.855.FL.WORKS Florid aGreenEnergyworks.com -
T"I Energy
W� or ks,,.,
.0TV,
rionaa green r
Authority
• By executing the Interlocal Agreement Delray Beach
gives property owners access to PACE financing
• Lantana &Mangonia Park created the Florida Green
Finance Authority pursuant to Section 163.01 & 163.08,
Florida Statutes (WPB signed on 6/11)
• Contemplated by grant
• Administer the Program
• Authority's role is administrative:
• Bears program costs for participating governments
• Markef the Program
• Approve projects for financing
• Match property owners with investors
• Manage levy and collection process with property
appraiser and tax collector
• Assure investors receive repayment
• Commercial properties (not residential)
* Office •Hotel
• Retail • Multifamily housing
• Restaurant • Churches and private schools
1.855.FL.WORKS Florid aGreenEnergyWorks.com
Dozens of eligible technologies
Goal: Reduce total energy costs by 20%
• Energy efficiency
• Windows, doors • Refrigeration
• Insulation • Elevators
• Roofing • Pool pumps and heaters
1.855.FL.WORKS FloridaGreenEnergyWorksxom
ma
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�y{
Eligible Improvements
• Renewable energy
• Solar photovoltaic
• Wind turbines
• Water Efficiency
• Irrigation systems
• Toilets
• Restaurant equipment
1.855.FL.WQRKS Florid aG reen En ergyWorks. co M �
9
Green E nerg,
.Works Financing Amounts
• Up to 100% of available eguily in property
• Equity = appraised value minus balance of
any existing mortgage loans
1.855.FL.WORKS j FloridaGreenEnergyWorksxom
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Wo r k "
teps
010
• Only property owners who want to participate
complete initial application &eligibility review
• Energy or water or wind - resistance
improvement review (owner responsibility)
• FGEW underwriting
� r
Steps
• Repayment of financing agreement is
through voluntary non -ad valorem
assessments on annual property tax bill
• If property is sold, assessment remains in
1.8 5.FL.WORKS FloridaGreenEnergyWorksxom
PER 7
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WHOM
Edit Your Information
PROPERTY DETAILS
....... ... .................... ..
PNt.......... . ... . ........ ..... .... . ........ . . ..... ..... ......
-------- . . . . ........ .. .. ......... .................. - ... ........ ...... . .....
............. ... .. ......... ..
1.855.FL.WORKS
.. . .................. . .......
rion aa ti
P•, ,•,� Energy
Wnrkc . Kevs to Success
• only those who want to participate received
financing and are assessed
• Projects must generate sufficient savings to pay
for the improvements,
• Projects that are good candidates for financing will
be cash flow positive in year 1 (cost savings are
greater than payments on the assessment) and
• Owner remains eligible for other rebates and
incentives.
1.855.FL.WORKS j Florid aGreenEnergyWorks.corn
Property:
Energy Usage:
40,000 sq ft grocery
2,000,000 kWh / yr
Annual Energy Costs: $250,000 per yr
s � jai i i y
Sample Financing,
Financed amount: $108,895
(includes closing costs; interest is capitalized)
Interest: 7% Term: 10 years
Annual payment:
Enerqv savings (20%
$15,984
$50,000
ontractors
•Simple application to become a registered
contractor for the program
• Receive leads for qualified applicants
• Contractors responsible for negotiating
deals directly with owners
jo
1.855.FL.WORKS
Florida+GreenEnergyWorksxom
• Owners
and tenants need
to
cooperate to
achieve
positive outcome
for
both
• Where tenant pays utilities and taxes are passed
through, tenant will pay cost of financing and get
the benefit of savings
1.855.FL.WORKS l Florid aGreenEnergyWorks.com
Banks
• Mortgage holder's consent is required
• PACE projects make existing buildings into
better collateral and improve the cash flow of
borrowers
• Existing lenders are invited to extend credit
with the additional collateral of a PACE..,..:,:..,::.
assessment lien,.,'k
...... -------------
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Any questions?
Florida Green Energy Works Program
(855) FL -WORKS