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2435ORDINANCE NO. 2435 COUNCIL MEMBER WOLFF INTRODUCED THE FOLLOWING ORDINANCE: AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF BLAIR, NEBRASKA TO CREATE A CLEAN ENERGY ASSESSMENT DISTRICT; TO ESTABLISH DEFINITIONS; TO PROVIDE FOR THE FINANCING, ADMINISTRATION, AND COLLECTIONS, TO PROMOTE ENERGY EFFICIENCY IMPROVEMENTS AND RENEWABLE ENERGY SYSTEMS; AND TO PROVIDE THE EFFECTIVE DATE HEREOF AND ORDERING THE ORDINANCE PUBLISHED IN PAMPHLET FORM. WHEREAS, the City of BLAIR desires to create a clean energy assessment district to enable property assessed clean energy financing for its property owners; and, WHEREAS, the City also desires to authorize the clean energy assessment district to enable third -party lenders to accept applications and enter into financing agreements with property owners within the boundaries of the district; and, WHEREAS, this Ordinance, upon execution, shall create a clean energy assessment district, which shall be known as the BLAIR PACE District, as authorized by Nebraska Revised Statute Sections 13-3203 and 13-3204(3), which boundaries shall be the corporate boundaries of the City of BLAIR and its extraterritorial jurisdiction. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BLAIR: Section 1. Findings and Determinations. That the City Council of the City of BLAIR, Nebraska (the "City"), hereby finds and determines as follows: Pursuant to NEB. REV. STAT. §§13-3201 to 13-3211, inclusive, the Property Assessed Clean Energy Act (the "Act"), energy efficiency and the use of renewable energy are important for preserving the health and economic well-being of Nebraska's citizens. Using less energy decreases the cost of living and keeps the cost of public power low by delaying the need for additional power plants. To further these goals, it is necessary for the City to promote energy efficiency improvements and renewable energy systems. Upfront costs for energy efficiency improvements and renewable energy systems may prohibit or deter many property owners from making improvements. It is necessary for the City to implement an alternative financing method through the creation of a clean energy assessment district. Financing energy projects to further these goals is a valid public purpose and can be accomplished through Property Assessed Clean Energy ("PACE") financing, which is used to overcome the upfront costs for energy efficiency improvements and renewable energy systems by using private capital and equity, rather than public debt. Pursuant to the Act and NEB. REV. STAT. § 13-3204, the City of BLAIR is authorized to establish a clean energy assessment district so that owners of qualifying property can access PACE financing for energy efficiency improvements or renewable energy improvements to their properties located in the City. The City also may enter into an agreement with one or more other municipalities pursuant to the Interlocal Cooperation Act, NEB. REV. STAT. §§ 13-801, et seq., for the joint creation, administration, or creation and administration of clean energy assessment districts, pursuant to NEB. REV. STAT. § 13-3210. The City declares its intent that the provisions of this Ordinance shall be in conformity with federal and state laws. The City enacts this Ordinance pursuant to the Act, as amended. Section 2. Title and Definitions. That this Ordinance shall be known and may be cited as "The City of BLAIR Property Assessed Clean Energy (PACE) Ordinance." Except the words and phrases specifically defined below or in NEB. REV. STAT. § 13-3203, as amended, words and phrases used in this Ordinance shall have their customary meanings. As used in this Ordinance, the following words and phrases shall have the following meanings: "District" means the BLAIR PACE District, created pursuant to this Ordinance, as authorized by NEB. REV. STAT. §§ 13-3203 and 13-3204(3), which boundaries shall be the corporate boundaries of the City and its extraterritorial jurisdiction. "District Administrator" means 1) the City Administrator of the City; 2) a designated representative of the City Administrator of the City; 3) another employee of the City designated by the Mayor of the City; or, 4) a third -party administrator selected by the City. "PACE financing" means funds provided to the owner(s) of qualified property by third -party lender, pursuant to the Act and this Ordinance, for an energy efficiency improvement or renewable energy system(s). "Qualifying Property" means commercial property, including multifamily residential property having more than four dwelling units, and industrial property located in the District. Section 3. District Boundaries and Requirements Pursuant to NEB. REV. STAT. § 13- 3204 3 . A. The City finds that the financing of energy efficiency improvements and renewable energy systems is a valid public purpose. Such public purposes include, but are not limited to, reduced energy and water costs, reduced greenhouse gas emissions, economic stimulation and development, improved property valuation, and increased employment. B. The boundaries of the District shall be the corporate boundaries of the City and its extraterritorial jurisdiction, as allowed pursuant to NEB. REV. STAT. § 13- 3204(1). C. The District Administrator shall use a form contract for assessment contracts among the City, the owner of the qualifying property, and a third -party lender, containing similar terms as attached hereto as Exhibit "A," with such qualifications, subtractions and additions, as agreed to by the parties to the contract, governing the terms and conditions of financing and annual assessments in accordance with the Act, including NEB. REV. STAT. § 13-3205(1), which provides for repayment of the costs financed through annual assessments upon the qualifying property benefited by the energy project. D. The District Administrator is authorized to enter into assessment contracts on behalf of the City. E. The District Administrator will use a financing application process and eligibility requirements, which shall be more specifically defined in a program manual created by the District Administrator, an example of which is attached hereto as Exhibit "B,", for financing energy projects in accordance with the requirements of the Act and accepted by the third -party lender. The application process and program eligibility requirements shall be, at a minimum, as follows: i. Submission of an application as attached hereto as Exhibit "C" to the District Administrator, which shall include, but not be limited to, the following information: a) Applicant name and contact information, including property owner and developer; b) Project location and legal description; c) Identification of contractor or supplier, including anticipated PACE contractor; d) Project description; e) Total project cost; f) Description of proposed improvements; g) Description of energy efficiency project to be financed; h) Amount of requested assessment; i) Interest rate on the PACE assessment and any required fees; j) Term of assessment; k) Energy savings report indicating estimated energy savings and estimated cost savings for the energy project; 1) Whether the applicant is requesting a waiver of the estimated economic benefit requirement; m) Title report showing any mortgage or lien holders; n) Lender consent; o) Projected jobs created by PACE project; p) Project environmental benefits; q) Funding source; r) All other such information as needed to demonstrate the project complies with all the requirements of the Act. ii. The District Administrator may grant an applicant's request to waive the estimated economic benefit requirement. If the District Administrator denies the applicant's waiver request, the applicant may appeal the denial by submitting a request in writing to the City Administrator for consideration of the city council. The appeal shall be mailed by certified mail or hand delivered to the City Administrator within fourteen days after the denial. Within 30 days of receipt of the appeal the matter shall be considered by the city council at a regular or special meeting. The applicant shall have an opportunity to address the council at the same meeting at which the appeal is considered and prior to the council's vote to approve or deny the appeal. The District Administrator shall review the application to determine whether the energy project meets the eligibility requirements of the Act and this Ordinance. An energy project shall not be eligible for PACE financing if the qualifying property is subject to any of the following: a) Delinquent ad valorem taxes; b) Delinquent personal property taxes; c) Delinquent special assessments; d) Overdue or delinquent water or sewer charges; e) Involuntary liens, including but not limited to construction liens; f) Notice of default pursuant to any mortgage or deed of trust related to the qualifying property, or g) If the property owner or property developer is delinquent in the payment of any assessment required to be paid for any energy efficiency improvement financed pursuant to the Act. iii. If the energy project is determined to be eligible under the terms of the Act and as required in this Ordinance, the District Administrator shall review the application and approve, request additional information, or deny the application. iv. Upon approval of an application, the District Administrator is authorized to proceed with and execute an assessment contract. F. Pursuant to NEB. REV. STAT. § 13-3205(7), annual assessments agreed to under an assessment contract shall be levied against the qualifying property and collected in accordance with the Act; and, direct collection, whereby a third -party lender remits assessment invoices to the borrower and the borrower remits payments to the third -party lender directly shall be permitted. G. The District shall establish procedures to determine the following in the future: i. Provisions for an adequate debt service reserve fund created under Section 13-3209, if applicable; ii. Provisions for an adequate loss reserve fund created under Section 13-3208, if applicable; iii. Any application, administration, or other program fees to be charged to owners participating in the program that will be used to finance costs incurred by the City as a result of the program; and iv. Any costs to be deducted before remitting the assessment to the third -party PACE program administrator. H. The assessment term shall not exceed the weighted average useful life of the energy project paid for by the annual assessments. I. Any energy efficiency improvement that is not permanently affixed to the qualifying property upon which an annual assessment is imposed to repay the cost of such energy efficiency improvement must be conveyed with the qualifying property if a transfer of ownership of the qualifying property occurs during the assessment term. J. Prior to the effective date of any contract that binds the purchaser to purchase qualifying property upon which an annual assessment is imposed, the owner shall provide notice to the purchaser that the purchaser assumes responsibility for payment of the annual assessment as provided in NEB. REV. STAT. § 13- 3205(3)(d), and that the obligations set forth in the assessment contract, including the obligation to pay annual assessments, are a covenant that shall run with the land and be assessed upon future owners of the qualifying property. K. In connection with providing PACE financing, the City will provide for marketing and participant education. L. The City shall obtain, or applicable third -party lenders shall obtain and provide to the City, verification that the renewable energy system or energy efficiency improvement was properly installed and is operating as intended. Section 4. Authorization for PACE Program. That, pursuant to NEB. REV. STAT. § 13- 3204(1), the District shall be governed by the BLAIR City Council. A. The District Administrator shall comply with the Act and the provisions of this Ordinance and follow any applicable City procurement policy and procedures for selecting a third -party administrator, should a third -party administrator be selected for the administration of the PACE program. Any such third -party administrator must ensure that there is no financial requirement, liability, or exposure to the District or City. The District Administrator as defined in Section 2 of this ordinance may serve as the administrator of the PACE program for the District and City. B. The District or City may also engage the services of a state or local financing agency for the purposes of providing conduit bond financing for the District or City as part of its third -party administration. B. Upon selection of a third -party administrator, that third -party administrator may, on behalf of the City, accept applications for financing energy efficient improvements within the District boundaries, facilitate the financing application process, and review eligibility requirements for financing energy projects in accordance with the requirements of the Act and as accepted by the third -party lender. C. The District may be expanded via the Interlocal Cooperation Act in order to create a program of sufficient size and scale to attract qualified third -party administrators and/or to promote energy efficiency across multiple political subdivisions, as authorized under the Act. Section 5. Liability of City Officials, Liabilijy of City. That notwithstanding any other provision of law to the contrary, officers and other officials of the City, the District, and the County in which the City is located shall not be personally liable to any person for any claims, of whatever kind or nature, under or related to the City's participation in the District's PACE Program, including, without limitation, claims for or related to uncollected PACE Assessments. The City has no liability to a property owner for or related to energy savings improvements funded under a PACE Program. Section 6. This Ordinance shall be in full force and effect from and after its passage, approval, and publication as provided by the law, and satisfaction of any conditions set forth in this Ordinance. PASSED AND APPROVED THIS 9TH DAY OF MARCH 2021. CITY OF BLAIR RICHARD HANSEN, MAYOR ATTEST: B WHEELER, CITY CLERK .40 q, r] EBRASKA ) ) :ss: COUNTY OF WASHINGTON ) BRENDA WHEELER, hereby certifies that she is the duly appointed, qualified, and acting City Clerk of the City of Blair, Nebraska, and that the above and foregoing Ordinance was duly passed and approved at a regular meeting of the Mayor and City Council of said City held on the 9th day of March 2021. BRENDA WHEELER, CITY CLERK State of Nebraska, County of Washington Chris Rhoades, Being by me first duly sworn, deposes and says that he is the Associate Publisher ofthe Enterprise, a legal weekly newspaper printed and published at Blair, in Washington County, Nebraska and of general circulation in said County and State: that said newspaper has a bona fide circulation of more than 3000 copies weekly, in said County: and has been published in said County for more than 52 successive weeks prior to the first publication of the attached notice, that the attached notice was published in said newspaper for 1 consecutive week(s) being the issues of. March 19, 2021 Associate Publisher -Signa Suin my presence, and sworn to before me this 19th day of March, 2021. Notary Public G:�N:RAL NOTARY • Stale of Nebraska �E SHAUNA GERKE My Comm. Exp. July 24, 2023 Printers Fee For Publishing This Notice $ 18.00 Preparation of Affidavit and Billing $ 0.00 Notary Fees $ 0.00 Copy $ 0.00 25% discount for minutes $ 0.00 TOTAL $ 18.00