Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, To Provide A Mechanism For The Financing Of Energy Conservation And Efficiency Improvements, Renewable Energy Improvements, And Wind Resistance Improvements; Authorizing The Execution Of A Non-Exclusive Interlocal Subscription Agreement With The Florida Pace Funding Agency For An Initial Term Of Three Years Ending September 30, 2017; Pursuant To Which The Florida Pace Funding Agency Will Administer A Financing Program For Such Improvements Within The Municipal Boundaries Of The City; Authorizing And Directing City Officials, Officers, Employees And Agents To Take Such Actions As May Be Necessary Or Desirable In Furtherance Of The Purposes Of This Resolution; Providing For Conflicts; Providing For Severability; And Providing An Effective Date.
Body
Staff Recommends: Approval of Resolution
Explanation:
As of March 13, 2014, the Florida PACE Funding Agency has up to $200 million to immediately fund improvements in Florida communities. The Agency has received expressed immediate interest from local commercial property owners interested in pursuing the Agency’s financing opportunity. Because the City of Hollywood is a coastal community, there are hundreds of individual condominium units that can immediately take advantage of this program.
The Florida PACE Funding Agency is actually a local governmental entity that presents an innovative opportunity to immediately implement a PACE Program for property owners. The acronym PACE generally refers to “property assessed clean energy.” The Program parameters are broadly outlined in section 163.08, Florida Statutes. The special assessments being offered to interested property owners are strictly voluntary and authorized by general law.
The Florida PACE Funding Agency PACE program and the documentation are ‘open’ and non-exclusive. The City of Hollywood (the “City”) can participate in the advantages of a PACE program and access capital markets, without having to implement or deploy individual programs or individually seek capital from its treasury for City constituents. But, because the Agency advances an ‘open’ or ‘non-exclusive’ program, any county or city can bring in another PACE funding provider, or start their own local program at any time. The Agency embraces competition, seeks to be the best program and best cost alternative for the local constituents, and is simply a transparent and accountable alternative available to the City. The Florida PACE Funding Agency PACE Program provides an immediate opportunity to create private sector wind hardening, clean energy and renewable energy jobs and economic activity in the City’s business community.
Because the Agency is a special purpose local government, by law and the City’s own procurement code, no procurement process is required - as well, the City can at the same time engage one or more programs, or do its own - that is what ‘open’ or ‘non-exclusive’ means. Entrance or use of other PACE programs remains within the exclusive domain of the City - now and in the future.
Any county or a municipality desiring to make available a PACE program, can simply “subscribe” to the uniform Program offered by the Agency. This is done by entering into a short and concise interlocal agreement which lays out the details involved. Essentially the very limited role for Local Government is to authorize the Agency to implement the Program. Financing Agreements, to be executed by interested property owners will be prepared and provided by the Agency to the property owners, and then recorded to evidence the non-ad valorem assessments for Qualifying Improvements. This is done only with willing property owners who meet the underwriting guidelines of the Agency’s funding-servicer. This means there are 2 layers of oversight that protects the bond purchasers, the Agency (or the City Commission) from reputational risk from fraud and abuse. First the program administrator, and second the funding-servicer. All of the ministerial actions and activities and documentation (e.g., interface between interested property owners and qualified vendors, determining compliance with all requirements for a valid financing agreement, recording, assessment roll extension, etc.) will be performed by the Agency through its third party administrator, Leidos Engineering. Leidos is a world-wide solutions-focused business that employs over 20,000 people and has several offices throughout Florida. They are also subject to the funding party’s servicer CES, an expert organization purchasing over $275 million in tax certificates in Florida annually.
On March 26, 2015, the Green Team Advisory Committee approved a motion to recommend that the City enter into an ILA with Florida PACE Funding Agency.
Recommended for inclusion on the agenda by:
Green Team Advisory Committee