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
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EBRASKA )
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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