ORDINANCE  NO.  0-01-2012

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LANTANA, FLORIDA, ADOPTING AN ENTIRELY NEW CHAPTER 21.5 TO BE ENTITLED "SUSTAINABILITY AND ENERGY IMPROVEMENT," AND BY ENACTING ARTICLE I ENTITLED "LANTANA ENERGY IMPROVEMENT DISTRICT" OF THE TOWN OF LANTANA CODE OF ORDINANCES, PROVIDING FOR CREATION OF THE SPECIAL DISTRICT, ITS PURPOSE AND AUTHORITY; IMPROVEMENTS; USES OF, NON-AD VALOREM ASSESSMENTS; DEFINITIONS; ENERGY AUDITS AND AGREEMENTS; PROVIDING A CONFLICTS, A SEVERABILITY CLAUSE; PROVIDING  AN EFFECTIVE DATE AND FOR OTHER PURPOSES.

WHEREAS, the Town of Lantana, Florida (the "Town") is a municipal corporation of the State of Florida ("State"), duly organized and operating under the Constitution and the laws of the State;
WHEREAS, pursuant to Article VII, Section 10 of the Florida Constitution and Chapter 166, F.S. and Chapter 189, F.S. the Town is authorized to form an Energy Improvement District for the purpose of encouraging, accommodating, and financing energy efficiency, renewable energy and wind resistance improvements (both as defined in this Ordinance) on residential and commercial properties in the Town; and
WHEREAS, the Town desires to form the Lantana Energy Improvement District (the "District") pursuant to the Florida Constitution for the purpose of accomplishing the energy efficiency, renewable energy and wind resistance improvements, including paying the costs necessary and incidental thereto through non-ad valorem assessments; 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

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WHEREAS, home and business energy consumption accounts for approximately 60% of the overall usage of electric energy in the community; and
WHEREAS, the State of Florida has adopted a schedule for increasing the energy

perfonnance of buildings subject to the Florida Energy Efficiency Code for Building Construction Chapter 553, F.S.; 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
WHEREAS, a major contributor to statewide and Town greenhouse gas emissions is the inefficient use of energy by existing occupied building stock; and
WHEREAS, installing energy efficiency and renewable energy improvements on existing structures can provide significant progress towards greenhouse gas reductions and increased energy conservation in the Town and statewide; and
WHEREAS, such reductions in greenhouse gas emissions will improve air quality, lower fossil fuels use, create energy independence and security, promote the creation of jobs and economic development by stimulating "green industries" and save its citizens money by reducing energy consumption; and
WHEREAS, 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

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WHEREAS, the expected life of energy efficiency, renewable energy or wind resistance projects may require a longer term payback period than offered by traditional equity financing, which may necessitate alternative financing options to fund installation of the improvements; and WHEREAS, the formation of an Energy Improvement District, and the voluntary participation in the program by property owners, will provide alternative financing options to pay
for the cost of the improvements; and

WHEREAS, the District will provide, or otherwise make available, financing to a property owner who participates in the program through non-ad valorem assessments levied on the property, pursuant to Chapter 197, F.S., where the improvements occur to minimize risk of failure for non-payment of the District's funds; and
WHEREAS, the District will have options to raise capital to fund the program through

federal or state grant funds, through the issuance of debt, private equity or loans, state or federal loan or bond guarantee programs or other private or not-for-profit sources of funds; and
WHEREAS, local governments within Florida and nationally have either formed, or are contemplating the formation of, special districts to provide alternative financing options allowing a property owner to finance energy efficiency and renewable energy improvements through non­ ad valorem assessments repaid through their property taxes; and
WHEREAS, the Town finds that local needs and conditions warrant the fonnation of the District as an economical means to implement its energy efficiency, renewable energy and wind resistance goals and the Town Council desires to enact an ordinance creating a new Chapter 21.5 entitled "Sustainability and Energy Improvement," Town of Lantana Code of  Ordinances, relating to an Energy Improvement District;

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NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF LANTANA, FLORIDA, AS FOLLOWS, THAT:
Section 1.	That the Code of Ordinances of the Town of Lantana, Florida, is hereby amended

by adopting a new Chapter 21.5, entitled "Sustainability and Energy Improvement", including Article I thereof, entitled "Lantana Energy Improvement District", which shall read as follows:
Section 21.5-1.	Declaration of District. Pursuant to and in accordance with the Florida Constitution and Florida Statutes, §166.021, the Town hereby forms the "Lantana Energy Improvement District" (the "District") as a "dependent special district" within the meaning of Chapter 189, Florida Statutes.
Section 21.5-2.	Description  of District.   The Districts will consist of, and  shall

include all property within the geographical  boundaries of the Town; in accordance with Article

Territorial Boundaries of the Charter of the Town of Lantana, Florida.

Section 21.5-3.	District Board. The membership of the District's Board shall be identical to the Town Council of the Town of Lantana.
Section 21.5-4.	Purpose  of the District.	The purpose of the Lantana Energy

Improvement District (the "District") is to accomplish energy efficiency and renewable energy improvements on residential and commercial properties by financing such improvements to be repaid through non-ad valorem assessments on the property owner's property taxes.
Section 21.5-5. Authority of the District.	The District shall have, and the board may exercise by majority vote, the following powers:
To sue and be sued in the name of the District, to adopt and use a seal and

authorize the use of a facsimile thereof, and to make and execute contracts

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and other instruments necessary or convenient to the exercise of its powers.
To   contract   for   the   services   of   consultants	to   perform	planning,

engineering, legal, or other professional services.

To borrow money and accept gifts, to apply for and use grants or loans of money or other property from the United States, the state, a unit of local government, or any person for any District purpose and enter into agreements required in connection therewith, and to hold, use, sell, and dispose of such moneys or property for any District purpose in accordance with the terms of the gift, grant, loan, or agreement relating thereto.
To adopt resolutions and procedures prescribing the powers, duties, and functions of the officers of the District; the conduct of the business of the District; the maintenance of records; and the form of other documents and records of the District. The board may also adopt resolutions that are necessary to conduct District business, if such resolutions do not conflict with any ordinances of a local general purpose government within whose jurisdiction the District is located.
To maintain an office at places it designates within a county or municipality in which the District is located and appoint an agent of record.
To acquire, by purchase, lease, gift, dedication, devise, or otherwise, real and personal property or any estate therein for any purpose authorized by this act and  to  trade, sell, or otherwise dispose of surplus  real or personal

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property. The board may purchase equipment by an installment sales contract if funds are available to pay the current year's installments on the equipment and to pay the amounts due that year on all other installments and indebtedness.
To hold, control, and acquire by donation or purchase any public

easement, dedication to public use, platted reservation for public purposes, or reservation for those purposes authorized by this act and to use such easement, dedication, or reservation for any purpose authorized by this act consistent with applicable adopted local government comprehensive plans and land development regulations.
To lease as lessor or lessee to or from any person, firm, corporation, association, or body, public or private, any facility or property of any nature for the use of the District when necessary to carry out the District's duties and authority under this act.
To borrow money and issue bonds, revenue anticipation notes, or

certificates payable from and secured by a pledge of funds, revenues, assessments, warrants, notes, or other evidence of indebtedness, and mortgage real and personal property when necessary to carry out the District's duties and authority under this act.
To charge user fees and assessments authorized by resolution of the board, in amounts necessary to conduct District activities and services, and to enforce their receipt and collection in the manner prescribed by resolution and authorized by law.

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To cooperate or contract with other persons or entities, including other governmental agencies, as necessary, convenient, incidental, or proper in connection with providing effective mutual aid and furthering any power, duty, or purpose authorized by this act.
To assess and impose upon real property in the District non-ad valorem assessments as authorized by this act.
To impose and foreclose non-ad valorem assessment liens as provided by this act or to impose, collect, and enforce non-ad valorem assessments pursuant to Chapter 197.
To select as a depository for its funds any qualified public depository as defined in Section 280.02, F.S. which meets all the requirements of Chapter 280 and has been designated by the Chief Financial Officer as a qualified public depository, upon such terms and conditions as to the payment of interest upon the funds deposited as the board deems just and reasonable.
To provide financing to owners of residential and commercial property within the Energy Improvement District authorized for the purposes of this Chapter.
Section 21.5-6.	Description of Improvements. The improvements  to be financed by the Town for properties within the District shall consist of, and shall be limited to, any improvements constituting "energy efficiency" or "renewable energy improvements" or "wind resistance improvements" as defined herein. The improvements to be constructed on each

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property shall be set forth in a written agreement executed between the property owner and the District.
Section21.5-7.	Financing.	The cost of the improvements undertaken by the

property owner and financed by the District shall be assessed on the related property in the amount or amounts set forth in the written agreement for such property and shall be financed by federal or state grant funds, issuance of debt, private equity or loan funds, state or federal loan or bond guarantee programs or other private or not-for-profit sources of funds which shall be payable through non-ad valorem assessments by the property owner.
Section 21.5-8.	Non-ad valorem assessments. Pursuant to Chapter 197, F.S., non ad-valorem assessments levied pursuant to this Ordinance shall remain liens, coequal with the lien of all state, county, district, and municipal taxes, superior in dignity to all other liens, titles, and claims, until paid.
Section 21.5-9.	Definitions. A qualifying improvement shall be affixed to a building or facility that is part of the property and shall constitute an improvement to the building or facility or a fixture attached to the building or facility. The following additional definitions shall apply to this section:
Energy efficiency improvement. A material improvement made, and affixed, to an existing residential or commercial property that reduces energy consumption, including but not limited to:
1.	Caulking, weatherstripping (cost of weatherstripping shall not exceed fifteen hundred dollars) and air duct sealing;
Insulation in walls, roofs, floors, foundations and in heating and cooling distribution systems radiant barriers

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Heating and cooling system upgrades, combined heat and power systems, automatic energy control systems, heating, Chiller/boiler systems of cooling tower systems, ventilating or air conditioning and distribution system modifications or replacements in homes, buildings or central plants including micro-turbines and fuel cells
Storm or weather-tight windows and doors, multi-glazed windows and doors, heat-absorbing or heat-reflective glazed and coated windows and door systems, additional glazing, reductions in glass area, and other window and door system modifications that reduce energy consumption
Replacement or modification of lighting fixtures to increase the energy efficiency of the system without increasing the overall illumination of a residential or commercial building unless such increase in illumination is necessary to conform to the applicable building code for the proposed lighting system;
v1.	High efficiency water or pool heating systems.

v11. Permanent rainwater harvesting systems reducing energy demands such as cisterns or rain barrels, sink aerators, high-efficiency toilets and urinals and smart irrigation systems.
Reflective roof or other cool roof systems that mcrease solar reflectance and thermal emittance.
Commercial refrigeration system upgrades and systems for heat

recovery from compressors and condensers.

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Variable speed drives or high-efficiency pumps & motors.

Renewable energy improvement. Any fixture, product, system, device or interacting group of devices affixed to a building or facility that is part of the property and that constitutes an improvement to the building or facility or a fixture attached to the building or facility and that is installed behind the meter on any residential or commercial building that produces energy from renewable resources including but not limited to photovoltaic systems, small wind systems, biomass systems, or biogas or methane recovery systems, as may be authorized.
Wind Resistance Improvement.	These improvements shall include, but

not be limited to:

1.	Improving the strength of the roof deck attachment.

11.	Creating a secondary water barrier to prevent water intrusion.

111.	Installing wind-resistant shingles.

1v.	Installing gable-end bracing.

v.	Reinforcing roof-to-wall connections. v1.	Installing storm shutters.
vii.	Installing opening protections.

Section 21.5-10.	Eligible property owners.	An eligible property owner (or property) must meet the following criteria:
Be the legal owner and provide proof of ownership in the application for the program.
Property must be located within the District.

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Property owner must be current on property taxes, and show no delinquency in the last three years on the property subject of the application for improvements.
Property owner must be current on any mortgage.

Property owner cannot be in bankruptcy nor can the property be an asset in any bankruptcy proceeding.
Property cannot be in foreclosure.

Property cannot have any federal income tax lien, judgment lien or similar involuntary lien encumbering the property.
Improvements must be reasonable for the scope of the proposed project and to the property value.
Section 21.5-11.	Energy Savings  Audit.	An energy savings audit shall be

conducted by a qualified energy auditor or a certified building energy rater. The District shall provide a list of, and set forth the minimum standards for, qualified or certified auditors and raters. At a minimum, the energy savings audit shall include the following information:
Recommendations for energy savings measures;

Estimated energy savings and a priority ranking for each measure;

Estimated renewable energy to be produced;

Estimated greenhouse gas reductions; and

Estimated   cost   savings	resulting from the implementation of the recommendations and use of funds made available by the District.

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The Board may establish an alternative process to meet this requirement, but that process must  be based upon professionally accepted methodologies for documenting the information required herein.
Section 21.5-12.	Application. An eligible property owner must submit a complete application to the District for its approval. A complete application shall include the following

information:

Proof of ownership and location of the property.  Organizational documents if the property owner is not on the title as an individual.
Documentation showing the structure or building, subject of the application, is an existing structure or building on the date of application.
A cost estimate for the installation of the energy savings measures completed by a Florida licensed contractor (including the name  and license number of the contractor). This estimate shall include all construction costs, equipment, permitting fees, recording fees for the assessment of liens, energy audit costs, and contingency fees. Estimated costs shall be reasonable for the scope of the proposed project and in relation to the property value.
Written documentation indicating that the property owner is current in the mortgage, if one exists on the property, and that there are no federal or state tax liens, no property based debt delinquencies, judgment liens or similar involuntary liens against the property subject of the application for the last three years or the during the current owner's period of ownership, whichever is less.

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Disclosure regarding non-ad valorem assessments.

State of Florida Fair Lending Notice as required.

Proof of notice to any lender of any adjustment to monthly payments must be provided 30 days prior to entering into a written agreement.
A verified copy,  or other proof of notice, to any holder or loan servicer of a mortgage shall be provided to the county at least 30 days prior  to entering into the written agreement. This notice shall include the owner's intent to enter into the written agreement with the maximum principal amount to be financed and the maximum annual assessment necessary to repay that amount.
Section 21.5-13.  Written  agreement.  Upon submittal  of a complete  application  to enter into the program as approved by the District at a public hearing, the property owner shall enter into a voluntary written agreement with the District that shall constitute the property owner's consent to be subject to a non-ad valorem assessment as set forth in Section 7 of this Ordinance. The written agreement shall provide for the following:
The maximum limit of the financing for the program shall  be established in the property owner application process but shall be based upon, at a minimum, consideration of the following factors:
1.		Requirements in Section 163.08(12)(a), F.S. and other applicable state and federal law.
n.	The energy audit, or information on energy savings measures provided in the application, shows a demonstrated high level of

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energy savings or renewable energy produced over the duration of the financing.
Express voluntary consent to accept the non-ad valorem assessment has

been given.

The length of time permitted for the property owner to repay the non-ad valorem assessment shall not exceed 20 years including the term, interest rate and administrative fees.
The property owner shall be responsible for assuring the improvements are completed as reflected in the approved application documents. The property owner also consents to providing access to property to the county to verify that the improvements have been completed as proposed in the application.
At the time of a transfer of property ownership excepting foreclosure, the past due balances of any non-ad valorem assessment under this Subsection shall be due for payment, but future payments shall continue as a lien on the property. At or before the execution of a contract for the sale and purchase of any property for which a non-ad valorem assessment has been levied and has an unpaid balance due, the seller shall give the prospective purchaser a written disclosure statement in substantially the following fonn, which shall be set forth in the contract or in a separate writing:
"The property being purchased is located within the jurisdiction of a local govenunent that has placed an assessment on the property pursuant to s. 163.08, Florida

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Statutes. The assessment is for  a qualifying  improvement to the property relating to energy efficiency, renewable energy, or wind resistance, and is not based on the value of property. You are encouraged to contact the  county property appraiser's office to learn more about this  and other assessments that may be provided by law."
The risks associated with participating in the program shall be disclosed in the written agreement, including risks related to the failure of the participating property owners to make payments and the risk of issuance  of a tax certificate and loss of the property pursuant to Chapter 197, F.S.
The cost of an energy savings audit or the cost to complete an estimate of information on energy savings measures, estimated energy savings for each measure, estimated greenhouse gas reductions and estimated cost savings from the projects will be subject to reimbursement upon execution of the written agreement to accept the non-ad valorem assessment.
The property owner shall agree to apply any rebates provided by an entity other than the District, received for the projects approved by the District, towards the repayment of the non-ad valorem assessment.
The property owner is responsible for notifying the lender of any adjustment to monthly payments at least 30 days prior to entering into the written agreement.
The property owner shall provide all copies of final permits and inspections to the District upon completion of the projects.

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The property owner shall agree to provide the District 5 years of utility statements showing the energy usage for the property following the year in which the improvements are made. The statements shall be due on  the final day of the month when the improvements were completed.
The property owner shall agree to record either the written agreement or a summary memorandum of the written agreement in the Palm Beach County public records within 5 days after execution of the agreement.
Section 21.5-14.   Notice.   On December  29, 2011, in accordance with Chapters 125, 189, and 286 F.S., the Town published notice of the public hearing to adopt and approve  the form the Energy Improvement District.
Section 21.5-15.   Authorization of Town Officers and Employees.  The Board and all other Town offices and employees are hereby authorized and directed to take all action necessary and appropriate to effectuate the provisions of this Ordinance.
Section 2: All Ordinances or parts of Ordinances in conflict be and the same  are  hereby repealed. Pursuant to Section 189.4041, F.S. the Town finds that the formation of the District is consistent with the Comprehensive Plan.
Section 3: Should any section or provision of this Ordinance or any portion thereof, any paragraph, sentence or word be declared by a Court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder of this Ordinance.
Section 4: Specific authority is hereby given to codify this Ordinance.
Section 5: This Ordinance shall take effect immediately upon adoption.

FIRST READING this lz'h day of December, 2011.
SECOND AND FINAL READING this 9th day of January, 2012.

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/
Aye	Nay

Aye	Nay

Aye	Nay
v
Aye	Nay

TOWN OF LANTANA

Aye ATTEST:

Nay

(Seal)

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