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HomeMy WebLinkAboutRes 2021-10-1031 Notice of Intent to Establish a Program Under the Texas "PACE" Act of 2013CITY OF ANNA, TEXAS RESOLUTION NO. �'dc�b ID - 1W A RESOLUTION OF THE CITY OF ANNA, TEXAS GIVING NOTICE OF INTENT TO ESTABLISH A PROGRAM UNDER THE TEXAS PROPETY ASSESSED CLEAN ENERGY ("PACE") ACT OF 2013 FOR THE CITY OF ANNA, AS PROVIDED BY TEXAS LOCAL GOVERNMENT CODE CHAPTER 399; AND SETTING A PUBLIC HEARING. WHEREAS, The 83rd Regular Session of the Texas Legislature enacted the Property Assessed Clean Energy Act, Texas Local Government Code Chapter 399 (the "PACE Act"), which allows the governing body of a local government, including a City or County, to designate an area of the territory of the local government as a region within which an authorized representative of a local government and the record owners of commercial, industrial, and large multifamily residential (5 or more dwelling units) real property may enter into written contracts to impose assessments on the property to repay the financing by the owners of permanent improvements fixed to the property intended to decrease water or energy consumption or demand; and WHEREAS, the installation or modification by property owners of qualified energy or water saving improvements to commercial, industrial, and large multifamily residential real property in the City of Anna (the "City") will further the goals of energy and water conservation without cost to the public; and WHEREAS, the City Council of the City of Anna, Texas (the "City Council") finds that financing energy and water conserving projects through contractual assessments ("PACE financing") furthers essential government purposes, including but not limited to, economic development, reducing energy consumption and costs, and conserving water resources; and WHEREAS, the City Council, subject to the public hearing scheduled as provided below, at which the public may comment on the proposed program and the report issued contemporaneously with this resolution, finds that it is convenient and advantageous to establish a program under the PACE Act and designate the entire geographic area within the City's corporate limits and extraterritorial jurisdiction as a region within which a designated City authorized representative and the record owners of qualified real property may enter into PACE financing agreements: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS: Section 1. Recitals Incorporated. The Recitals to this Resolution are true and correct and are incorporated into this Order for all purposes. Section 2. Expression of Intent to Adopt Program, A. City hereby adopts this Resolution of Intent and finds that financing qualified projects through contractual assessments pursuant to the PACE Act is a valid public purpose. B. City intends to make contractual assessments to repay PACE financing for qualified energy or water conserving projects available to owners of commercial, industrial, and large multifamily residential real property. The program is to be called Anna Property Assessed Clean Energy Program ("Anna PACE"). C. The following types of projects are qualified projects for PACE financing that may be subject to such contractual assessments: Projects that (a) involve the installation or modification of a permanent improvement fixed to privately owned commercial, industrial, or residential real property with five (5) or more dwelling units, and (b) are intended to decrease energy or water consumption or demand, including a product, device, or interacting group of products or devices on the customer's side of the meter that uses energy technology to generate electricity, provide thermal energy, or regulate temperature. D. An assessment may not be imposed to repay the financing of facilities for undeveloped lots or lots undergoing development at the time of the assessment or the purchase or installation of products or devices not permanently fixed to real property. E. The boundaries of the entire geographic area within City's jurisdiction, including all areas within the City's corporate limits and extraterritorial jurisdiction are the boundaries of the region where PACE financing and assessments can occur. F. Financing for qualified projects under the PACE program will be provided by qualified party lenders lenders chosen by the owners. Such lenders will execute written contracts with the City 's authorized representative to service the assessments, as required by the PACE Act. The contracts will provide for the lenders to determine the financial ability of owners to fulfill the financial obligations to be repaid through assessments, advance the funds to owners on such terms as are agreed between the lenders and the owners for the installation or modification of qualified projects, and service the debt secured by the assessments, directly or through a servicer, by collecting payments from the owners pursuant to contracts executed between the lenders and the owners. The lender contracts will provide that the City will maintain and continue the assessments for the benefit of such lenders and enforce the assessment lien for the benefit of a lender in the event of a default by an owner. The City will not, at this time, provide financing of any sort for the PACE program. G. The City will contract with Texas PACE Authority, a qualified non-profit organization to be the independent third -party Authorized Representative. H. The City will consult with the County Tax Assessor/Collector for the County of Collin. Section 3. Report Publicly Available. The report on the proposed PACE program prepared as provided by Tex. Local Gov't Code Sec. 399.009, is available for public inspection on the Internet website of the City of Anna and in the Economic Development Inc -Cube Office at 312 North Powell Parkway, and is incorporated in this resolution and made a part hereof for all purposes. Section 4. Notice of Public Hearing. The City Council will hold a public hearing on the proposed PACE program and report on November 9th at 6:30 p.m. in the Anna ISD Board Room at 201 E. 7"' Street, Anna, Texas 75409. DULY PASSED by the City Council of the City of Anna, Texas, this �h. day of ��, 2021. ATTESTED: _' #/ Carrie L. • City Secretary CIF *It APPROVED: 4\ Mayor ��+nunllun,• TF;XAS PACE o �. IMPROVING PROPERTIES, INCREASING CAPITAL. DUB TAYLOR -COO, TEXAS PACE AUTHORITY Joined the Texas PACE Authority in February 2020, after 21 years as the director of the Texas State Energy Conservation Office (SECO) - part of the Texas Comptroller of Public Accounts Managed engineering, technical assistance and energy/water efficiency loan programs for public entities Prior to public service, private sector experience was focused on commercial real estate, property appraisal and property tax consulting A TEXAS PACE o Business owners know they can save money over the long haul by investing in energy/water saving upgrades to their properties Even modest upgrades can be expensive Hard to pay those upfront costs given all their other expenses Failing equipment is replaced on emergency, piecemeal basis at a premium cost with no systems optimization Results in higher operating costs, lower building performance, indoor comfort challenges, lower productivity A U T H O R I T Y A SOLUTION... PACE P`'�PF�TY ASSESSF� CN F��I E�IFR�Y Innovative financing tool that provides long term, low cost 100� funding for energy efficiency, water conservation and distributed generation projects Private financing secured by a special property assessment in place over the financing term/useful life of the improvements State Authorized - Local Gov't Code 399 Local Government Enabled Voluntary & Open Market Eligible Property Commercial (including non-profit) Multi -family (5+ units) Industrial (manufacturing/agricultural) a TEXAS PACE o WHY PACE? Improves assets -budget neutral/cashflow positive Lowers utility usage/costs Increases net operating income Conventional SA`ANGS ❑$ PACE 4 TEXAS PACE 9 Projects that reduce energy or water usage or generate energy onsite Energy High efficiency chillers, boilers, and furnaces Mechanical system modernization Air cooled systems to water or geothermal cooled systems Energy management systems and controls High efficiency lighting upgrades Building envelope improvements Combustion and burner upgrades Fuel switching Heat recovery and steam traps Renewable/DG energy systems Water High efficiency water heating systems Water conservation systems as Wtewater recovery and reuse systems Alternate, on -site sources of water (A/C ndensate, rainwater, RO reject water, co foundation drain water, etc.) On -site improvements to accommodate reclaimed water use Water management systems and controls (indoor and outdoor) High efficiency irrigation equipment AUTHORITY Investment Barrier Upfront capital Short financing term /long ROI Lacl< of funding Landlord /tenant split incentives Short-term ownership TX -PACE Solution No upfront capital needed Funded up to life of equipment (20 years+) 100%financingpersonal or business loan Can be passed to tenants Stays with the land - is transferred upon sale a TEXAS PACE $174 million of investment to date Annual C-PACE Financing in Texas $180,0000000.00 - $160,OOQ000.00 — - $140,000,000.00 S120,000,000.00 ---- --- ----------- - $100,000,000,00 $80,ao00000.00 - -- S60,000,000.00 -- - - - - S401000,000.00------- --- -- $200000,000.ao $0.00 2015 2016 2017 2018 2019 2020 2021 02015 ©2016 [32017 ❑2018 ■2019 02020 MEASURE TYPE Energy Efficiency: 557o / Water Conservation: 337o / Distributed Gen: 127o S TEXAS PACE o CITIES mvil o TowN of vaosvER CORIMH � � PRINCETON _ ®*FARMERS BRAAO"T *DALLAS p �ta 64 local PACE programs +60% of state population covered aansas counry ew.se county Cameron County D:Cket>; Casty Fistkr County Guada'upe Cw* tErda'go county tMLennan County hLs•iarto County San Patriio Cwnry row Gran county YJl�acy County COUNTIES Bastrop coisry &azos County Ccrtul County E Pao County Fort ec*d County Hardtt County lefizrsrxt Cowry Pedian0 County Nacres county Snrth County Tm s CWrny WiGarMon County Bea county Burr>zt Camiy Dasrcn County Erath county Galvzrton Casty Hays County Medsa County ddam Casty Reeves Cwnry Tarrant County tVasknytun Casty A TEXAS PACE o Texas upell LOCAL GOVERNMENT ADOPTION MeetingsAet. MUNICIPALITY OR COUNTY 1) Public briefing/discussion (optional) 2) Post Report on how PACE program will work 3) Pass Resolution of Intent to establish PACE program 4) Public hearing (required) 5) Pass Resolution to Establish PACE program 6) Select administrator 'PAGE a TEXAS PACE Municipalities Counties Governmental Private mmm m m m 4 TEXAS PACE 501(c) (3) Capital Providers Property Owners Service Providers finds a � selects contractor a project tFte owner capital signs a provider contract with signs a the PACE contract with the program, county in which places exchange a senior lien for the on the assessment property payments • identifies applies to a capital PACE program provider J/ the owner the sends capital contractors installment provider complete payments su lies the directly nding project to the fund lender T Underwriting Criteria Guideline Assessment to 520% of the assessed property value. Requests for a variance are Assessed Value Ratio evaluated on a case -by -case basis. *25% as of 1/22/2021 Savings to Investment >_1.0. Requests for a variance are evaluated on a case -by -case basis. Ratio (SIR) Mortgage Holder Written consent required from existing mortgage holders. Consent https://www.texaspaceauthority.org/Documents/Program%20Guide.pdf?d1=0 � Z'E}�S PACE g • Based on Nationally Accepted Standards • American Society for Testing and Materials (ASTM) • International Performance Measurement and Verification Protocol (IPMVP) • American National Standards Institute / Building Owners and Managers Association (ANSI / BOMA) • American Society of Heating, Refrigerating & Air-Cononing Engineers (ASHRAE) • National Institute of Standards and Technology (NIST) • Independent Third Party Reviewer (ITPR) -Qualifications • Texas -licensed Professional Engineer with energy/water efficiency experience • Preferred certifications: ASHRAE, AEE, Building Commissioning Association 4 TF) AS PACE TECHNICAL STANDARDS MANUAL https://wwwtexaspaceauthority.org/Documents/Program%20Guide.pdf?d1=0 o TEAS PACE a CONTRACTOR'S ITPR* ENERGY/WATER � SAVINGS ANALYSIS REVIEW PROJECT INSTALLATION CONSTRUCTION VERIFICATION *Owner -selects Contractor and ITPR a TEXAS PACE 9 Urban and rura Office, mixed -use, non-profit, hospitality, multi- family, parking garage, retail Energy efficiency, water conservation, distributed generation & demand reduction/resiliency projects Project sizes: $68,000 - $24,000,000 All received 100% financing '.4 TEXAS PACE o �;•::�' A_ • 1 i DID, Aft 'rDo DoiCL y" ham, - Houston Measures: HVAC BAS S- LED lighting Utility Incentives: $30,000 Assessment Total: $1,304,352 Utility Savings: 38% Annually s TEXAS PACE o Measures: HVAC Lighting Insulation, roof Windows Plumbing fixtures Incentives: $21 million Historic Tax Credits Assessment Total: $23.9 million Annual Utility Savings: 40� Electric: 6.6 million kWh Water: 700K gallons City )f Dallas 4 TEXAS PACE g Rockport /Aransas County Measures: Above -code Lighting Plumbing fixtures Building envelope Windows Wall insulation Roof insulation Assessment Total: $2.75 million Annual Utility Savings, Electric: 926,000 kWh Water: 3.2 million gallons PEARL POINT R OCK PORT. TEXAS A U T H O R I T Y City of Amarillo Measures: Ductless VRF HVAC Low voltage LED lighting Building envelope Water efficiency Domestic water heating Historic Tax Credit financing: $9,050,551 Assessment Total, $6,471,443 Total Savings: Electric: 73� Gas: 79% Water: 60% MARRIOTT BONV,�Y ��IIFILLD AHTOG RAPH COIIFCTION tlolfk5 AUTHORITY PACE is aWIN-WIN-WIN (WIN -WIN) Property Owners -lower utility bills, energy independence, energy efficiency, property value increase Contractors -source of increase in business, more local hiring, best practices, keeping up with technology advancements Lenders -new loans, steady &stable process, fully collateralized, Tax Assessment lien position, improved asset value State of Texas -reduced peak demand, enhanced grid reliability, distributed generation as resilient power source, improved air quality, water resource conservation Communities -increased economic development and jobs, improved building infrastructure, more appealing building stock and plants � TEXAS PACE Texas PACE Authority: www.texaspaceauthority.com TX -PACE Program Guide and Technical Standards www.texaspaceauthority.org/Documents/Program%20Guide.pdf?dl=0 Events and Training - (Online Contractor Training Soon!) www.texaspaceauthority.ora/event-directory Case Studies www.texaspaceauthority.ora/resources/case-studies-marketing Service Provider Directory https://www.texaspaceauthority.org/service-provider-directory/ a TEXAS PACE QUESTIONS? Dub Taylor, COO dubCtexaspaceauthority.orc� �' AUTHORITY www.texaspaceauthority.ora