Agenda 03/12/2019 Item #10B03/12/2019
EXECUTIVE SUMMARY
Recommendation to direct the County Attorney to advertise and bring back for a public hearing an
ordinance to be known as “The Collier County Property Assessed Clean Energy (PACE)
Consumer Protection Ordinance.”
OBJECTIVE: To better protect Collier County homeowners who utilize the PACE Program.
CONSIDERATIONS: Individual residents of Collier County may wish to improve energy efficiency,
install energy improvements or retrofits, wind resistance/wind hardening measures, and improve water
conservation for residential, commercial or industrial properties. One way to facilitate such
improvements to real property is through a Property Assessment Clean Energy (PACE) financing
program pursuant to Section 163.08, Florida Statutes.
A PACE financing program is a financing structure by which commercial or residential property owners
voluntarily opt into a special assessment district to receive a loan to finance energy improvements and
retrofits, where those loans are repaid through an annual assessment on the property owner's property tax
bill. By Resolution No. 2017-130, the Board (1) approved the establishment of a PACE program within
the unincorporated area of Collier County for residential, commercial and industrial properties; and (2)
approved a standard form membership agreement which would among other things authorize a PACE
provider to operate a PACE program within Collier County.
Since that time a number of PACE providers have entered into the standard membership agreement and
are operating a PACE program within Collier County. It has come to my attention that potential abuses
of the PACE program have taken place, largely from a minority of PACE program contractors, which the
proposed ordinance seeks to address.
The primary intent of the proposed PACE Consumer Protection Ordinance is to create a mechanism
where property owners can file a complaint with the PACE provider as to a PACE contractor, require the
PACE provider to deal with the complaint, require the PACE provider to document both the complaint
and any resolution of the complaint, and to give the County the ability to terminate the agreement with the
PACE provider if they continue to allow bad contractors to participate in the PACE program. In other
words, the ordinance creates a mechanism which incentivizes the PACE providers to regulate PACE
contractors and weed out the problematic ones. I have also created a mandatory notice mechanism to give
the property owner a full understanding as to what they are getting into, wh ich works both to benefit the
property owner and to eliminate bad faith complaints by the property owner that they didn’t understand
what they were doing.
FISCAL IMPACT: Estimated cost of advertising is $350.
GROWTH MANAGEMENT PLAN (GMP) IMPACT: There are no anticipated impacts to the GMP.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority
vote for approval. -JAK
RECOMMENDATION: That the Board direct the County Attorney to advertise and bring back for a
public hearing an ordinance to be known as “The Collier County Property Assessed Clean Energy
(PACE) Consumer Protection Ordinance.”
Prepared by: Penny Taylor, Commissioner District 4
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ATTACHMENT(S)
1. Ordinance PACE Consumer Protection (DOCX)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 10.B
Doc ID: 8262
Item Summary: Recommendation to direct the County Attorney to advertise and bring back for a
public hearing an ordinance to be known as “The Collier County Property Assessed Clean Energy
(PACE) Consumer Protection Ordinance.”
Meeting Date: 03/12/2019
Prepared by:
Title: Legal Assistant/Paralegal – County Attorney's Office
Name: Virginia Neet
03/05/2019 3:24 PM
Submitted by:
Title: County Attorney – County Attorney's Office
Name: Jeffrey A. Klatzkow
03/05/2019 3:24 PM
Approved By:
Review:
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 03/05/2019 3:27 PM
Budget and Management Office Mark Isackson Additional Reviewer Completed 03/05/2019 3:29 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/06/2019 7:58 AM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 03/06/2019 10:34 AM
Board of County Commissioners MaryJo Brock Meeting Pending 03/12/2019 9:00 AM
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ORDINANCE NO. 2019 - _____
AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, ADOPTING THE COLLIER COUNTY
PROPERTY ASSESSED CLEAN ENERGY (PACE) CO NSUMER
PROTECTION ORDINANCE; PROVIDING FOR CONFLICT AND
SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF
LAWS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, individual residents of Collier County may wish to improve energy efficiency,
install energy improvements or retrofits, wind resistance/wind hardening measures, and improve
water conservation for residential, commercial or industrial properties; and
WHEREAS, one way to facilitate such improvements to real property is through a Property
Assessment Clean Energy (PACE) financing program pursuant to Section 163.08, Florida Statutes;
and
WHEREAS, a PACE financing program is a financing structure by which commercial or
residential property owners may voluntarily opt into a special assessment district to receive a loan
to finance energy improvements and retrofits, where those loans are repaid through an annual
assessment on the property owner's property tax bill; and
WHEREAS, PACE providers that have been created under Section 163.01(7) Florida
Statutes are considered local governments, and a county may select from those PACE providers
and enter into agreements with the selected providers, without proceeding with a solicitation; and
WHEREAS, by Resolution No. 2017-130, the Board (1) approved the establishment of a
PACE program within the unincorporated area of Collier County for residential, commercial and
industrial properties; and (2) approved a standard form membership agreement which would
among other things authorize a PACE provider to operate a PACE program within Collier County;
and
WHEREAS, a number of PACE providers have entered into the standard membership
agreement and are operating a PACE program within Collier County; and
WHEREAS, it has come to the Board’s attention that potential abuses of the PACE
program have taken place, largely from PACE program contractors, which the Board wishes to
correct and address by this Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
SECTION ONE: Title and Intent
This Ordinance shall be known and cited as “The Collier County Property Assessed Clean
Energy (PACE) Consumer Protection Ordinance ," and is intended to add requirements to the
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provisions of Section 163.08, Florida Statutes , the Standard Membership Agreement and other
applicable law as it currently exists and should be construed consistently with the PACE Statute
and any such other applicable law. To the extent that the PACE Statute provides for additional
requirements not otherwise found in this Ordinance or applicable law; the provisions of the
PACE Statute must be met. To the extent that this Ordinance provides for more restrictive or
additional requirements not found in the PACE Statute, the Standard Membership
Agreement or any other applicable law, the provisions of this Ordinance shall apply.
SECTION TWO: Definitions
The following words, terms and phrases, when bolded and used in this Ordinance, shall
have the meanings set forth herein:
Board shall mean the Collier County Board of County Commissioners.
PACE Assessment shall mean the non-ad valorem assessment placed on a property owner's tax
bill as a result of financing obtained through a PACE Provider.
PACE Financing Agreement shall mean the agreement entered into between a property owner
and the PACE Provider or its administrator specifying the Qualifying Improvements to be
installed at the property and the terms and conditions for financing those improvements through
non-ad valorem assessments levied on the property.
PACE Provider shall mean an entity created pursuant to the PACE Statute that has entered
into a Standard Membership Agreement with Collier C ounty.
PACE Statute shall mean Section 163.08, Florida Statutes , as may be amended from time to
time.
Qualifying Improvements shall mean only those improvements defined by the PACE Statute.
Standard Membership Agreement shall mean the Board-approved standard form agreement
as described in Resolution No. 2017-130 and as entered into by the PACE Provider.
SECTION THREE: PACE Program Standards
At a minimum, PACE Providers shall comply with each of the following standards:
(1) Qualifying Improvements : PACE Providers shall finance, and contractors and owner -
builders shall construct or install, only Qualifying Improvements, which shall be properly
permitted and must comply with Florida and local codes.
(2) Licensed Contractors: Any contractor constructing or installing a Qualifying Improvement
shall be properly licensed and insured.
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(3) Contractor Pricing: PACE Providers shall have in place pricing rules and enforcement
mechanisms to ensure property owners are protected from excessive or unjustified prices and
charges.
(4) Contractor Management. PACE Providers shall:
a. To the extent available, recruit and approve local contractors;
b. Establish a "Code of Conduct" that sets standards for participating contractors
such as licensing, advertising and marketing, accurate repr esentation of the
program, and consumer protections ;
c. Train all PACE program contractors on the regulations related to the PACE
program and the Code of Conduct;
d. Require that all contractors hold necessary licenses and insurance;
e. Confirm contractor qualifications at least annually and as necessary based upon
consumer complaints or other indications of lack of compliance; and
f. Remove contractors from the PACE program who no longer meet program
criteria, have not met program requirements , or who fail to resolve consumer
complaints.
(5) Right to Cancel: A property owner may cancel a PACE Financing Agreement within 3
days of execution without cost or penalty.
(6) Notice to Property Owner: At least 5 business days prior to entering into a PACE Financing
Agreement, PACE Providers shall provide the property owner with a separate written notice
disclosing the following items:
a. The estimated total amount of the homeowner’s debt, including amount financed,
fees, fixed interest rate, capitalized interest and the effective rate of the interest
charged ("Annual Percentage Rate" or "APR");
b. The estimated savings from the Qualifying Improvements, together with any
available rebates or incentives associated with the Qualifying Improvements;
c. The PACE Assessment will appear on the property owner's tax bill;
d. The PACE Assessment will be collected in the same manner as real estate taxes;
that failure to pay the PACE Assessment may cause a tax certificate to be issued
against the property; and that failure to pay may result in the loss of property
subject to the PACE Assessment, including homestead property, in the same
manner as failure to pay property taxes;
e. The installation of Qualifying Improvements may or may not affect the overall
market value of the Property;
f. The PACE Assessment may affect the sale or refinance of the Property;
g. The property owner may be required to pay any PACE Assessment in full at the
time of refinance or sale of the property;
h. The three-day right to cancel the PACE Financing Agreement without cost or
penalty; and
i. The notice shall be signed and dated by the property owner to acknowledge that
they understand these conditions.
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j. A copy of all documents to be signed at the PACE Financing Agreement closing
must accompany the notice, and a copy of all documents signed by the
homeowner must be provided to the homeowner at the closing.
(7) Customer Service: PACE Providers shall provide a high level of customer service,
including:
a. Access to customer service representatives by email and phone during normal
business hours;
b. A transparent customer feedback and complaint process with quick response and
resolution by both the contractor and the PACE Provider;
c. All complaints and resolutions shall be logged, with the following information at
a minimum: date and time of complaint, customer and contractor information,
details of complaint, when and what actions were taken by both the PACE
Provider and the contractor, and final resolution ; and
d. All disputes and complaints shall be investigated and resolved in a timely manner.
Reports of such disputes and complaints, the actions taken and how they were
resolved, or not resolved, shall be created and thereafter be treated as Public
Records as defined under Chapter 119, Florida Statutes, and provided to anyone,
including Collier County, upon request.
e. Upon the homeowner’s request, and at no charge, provide a full accounting of the
PACE Financing Agreement , including the total interest and principle paid to
date, all fees paid to date, the outstanding balance left on the loan, and the total
interest payments left due on the loan, assuming no prepayment is made.
SECTION FOUR: Penalty for Violations
Violation of any provision of this Ordinance shall be punishable by a fine not exceeding
$500. All violations of this Ordinance may be processed according to the Collier County
Consolidated Code Enforcement Ordinance (Ord. No. 2010-04, as amended) and per provisions
of Chapter 162, pts. I or II, Florida Statutes, as may be applicable. In addition to the imposition
of a fine, upon public hearing before the Board, a violation of this Ordinance shall be considered
a substantial breach of the Standard Membership Agreement, and upon determination of the
Board, shall be grounds for the termination of the Standard Membership Agreement.
SECTION FIVE: Conflict and Severability
In the event this Ordinance conflicts with any other ordinance of Collier County or other
applicable law, the more restrictive shall apply. If any phrase or portion of the Ordinance is held
invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a
separate, distinct and independent provision and such holding shall not affect the validity of the
remaining portion.
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SECTION SIX: Inclusion in the Code of Laws and Ordinances
The provisions of this Ordinance shall become and be made a part of the Code of Laws and
Ordinances of Collier County, Florida. The sections of the Ordinances may be renumbered or
relettered to accomplish such, and the word "ordinance" may be changed to "section," "article," or
any other appropriate word.
SECTION SEVEN: Effective Date
This Ordinance shall become effective upon receipt of notice from the Secretary of State
that this Ordinance has been filed with the Secretary of State.
PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier
County, Florida, this _______ day of _____________________, 2019.
ATTEST: BOARD OF COUNTY COMMISSIONERS
CRYSTAL K. KINZEL, Clerk COLLIER COUNTY, FLORIDA
By: ___________________________ By: _____________________________
, Deputy Clerk William L. McDaniel, Jr., Chairman
Approved as to form and legality:
_______________________________
Jeffrey A. Klatzkow, County Attorney
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