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Home My WebLink About2016-09-27 10:30AM WORKSHOPBRAZOS COUNTY BRYANJEXAS NOTICE OF MEETING AND AGENDA WORKSHOP SESSION BRAZOS COUNTY COMMISSIONERS COURT 2016 SEP 23 1 P I: pb t'a hl!r!r�1(jE�) COMYCLEW VA (fir BRAZOS COUNTY COMMISSIONERS WILL MEET INAWORKSHOP SESSION AS FOLLOWS: MEETING DATE: September 27, 2016 MEETING TIME: 10:30 AM MEETING PLACE: Commissioners Courtroom of the County Administration Building, 200 S. Texas Ave., Suite 106, Bryan, Texas 1. Call to Order 2. Presentation Discussion regarding the Property Assessed Clean Energy Program (PACE). 3. Adjourn The Commissioners Courtroom of the County Administration Building, 200 S. Texas Ave., Suite 106, Bryan, Terris is wheelchair accessible. Handicap parking spaces are available. Any request for sign interpretive services must be made two working days before the meeting. To make arrangements, please call (979) 361-4102. A MINUTES SEPTEMBER 27, 2016 BRAZOS COUNTY COMMISSIONERS COURT WORKSHOP SESSION Call to Order The Commissioners' Court of Brazos County, Texas met in a Workshop Session in the Commissioners' Courtroom in the Brazos County Administration Building in Bryan, Brazos County, Texas, scheduled at 10:30 a.m. on Tuesday, September 27, 2016 with the following members of the Court present: Duane Peters, County Judge, Presiding; Lloyd Wassermann, Commissioner of Precinct 1; Sammy Catalena, Commissioner of Precinct 2; Kenny Mallard, Commissioner of Precinct 3; Irma Cauley, Commissioner of Precinct 4; Karen McQueen, County Clerk, Absent. Attached is a list of the citizens and officials in attendance. The County Judge called the meeting to order at 10:47 a.m. 2. Presentation Discussion regarding the Property Assessed Clean Energy Program (PACE). A presentation on the Property Assessed Clean Energy Program (PACE) was given by Charlene Heydinger. Ms. Heydinger said that if a person defaults, it is collected in the same way back taxes are collected. She stated that this is the lowest cost administrator in the country. The program is funded with grants but at some point will be user funded. Ms. Heydinger also said that six (6) counties and two (2) cities, Dallas and Houston, are already using the program. She said that there is no cost to the county and the estimated life of the project can not be longer than the financing. She said that PACE tries to encourage businesses to incorporate several projects in one. Todd McDaniel with Research Valley Partnership was asked to give his thoughts on the program. Mr. McDaniel said that he feels this is a very attractive program for Brazos County and will generate revenue. Judge Peters asked if the County decides to move forward, will the County need to send out for bids and asked if there are other companies that do this. Ms. Heydinger said that other counties have set it up as a service contract. She said that they are the expert and do not require the use of bonded funding. She also mentioned that in the PACE in a Box package there are contracts and forms to make it easier. She stated that she doubts that the county could find someone willing to do it for what they can with their foundations support. She went on to say that other states are copying this PACE program. Commissioner Cauley said that she called Fort Bend County and asked about the program. Commissioner Cauley said that they spoke highly of the program and also spoke highly of Charlene Heydinger. She urges Brazos County to participate in the program. A copy of the PACE presentation is attached 3. Adjourn Vcl. � �� P9 . � The foregoing minutes of the Commissioners Court Workshop Session held September 27, 2016, have been examined and are approved in open Court this the 11-14, day of 0CAI be�c , 2016, in Bryan, Brazos County, Texas. Duane Peters County Judge Lloyd Wassermann Commissioner, Precinct 1 ?4wl Same Catale Kenny Mallard CommissionePrecinct 2 Commissioner, Precinct 3 Commissioner, Precinct 4 Attest: i iif, row BRAZOS COUTTY COIvIIVIISSIONER'S COURT &QDAY OF Name (PLEASE PRL�'Tl 20/,6 M. OrLyanization (PLEASE PRNT) Vnl. _ _ Pg. J September 26, 2016 The Honorable Duane Peters The Honorable Lloyd Wassermann The Honorable Sammy Catalena The Honorable Kenny Mallard The Honorable Irma Cauley Brazos County Commissioners Court 200 S. Texas Ave. Suite 310 Bryan, TX 77803 Dear Judge and Commissioners: We encourage you to adopt the Property Assessed Clean Energy Program (PACE) region authorized in 2013 through the Texas PACE statute, SB 385. With this economic development program, Brazos County will create jobs, promote business retention and expansion, upgrade building stock, promote energy and water conservation, and serve as a model for the rest of the state. The program is entirely voluntary and does not rely on taxpayer funding. The proposed PACE region is being developed with the guidance of Keeping PACE in Texas' PACE in a Box tool kit. This is the nation's first PACE model designed by volunteer stakeholders to be user-friendly, uniform, sustainable and scalable. Using the Texas -designed PACE in a Box model decreases costs and increases the likelihood of greater participation by local firms. This market-based approach will assist Brazos County's businesses to address deferred maintenance by investing in energy and water conservation -based improvements to their properties without the risk of over -investment. PACE enables commercial, industrial and multifamily real estate property owners to overcome the steep upfront costs for water and energy efficiency improvements by utilizing private sector financing for up to 100% of the capital improvements. This is done through a voluntary contractual PACE property assessment secured by a senior lien on the property. Businesses will benefit by saving more on their monthly utility bills than the costs of the financed improvements. If the property is sold before the full amount of the PACE assessment is repaid, the repayment obligation automatically transfers to the next owner. We urge your support for PACE open -market financing for commercial, industrial and multifamily properties in Brazos County. Sincerely, Ameresco Astin Aviation Astin Redevelopment LP ATSI Engineering, Inc. The Brandt Companies, LLC Central Texas Energy Solutions, LLC Clean Fund Clearview Electric, Inc. Connor -McGrath LP Community Energy Strategies E3 Entegral Solutions Easterwood Airport Management Fibertown DC, LLC Graves Mechanical GreenStar Engineering Greenworks Lending, LLC H/Cell Energy Corporation (Continued on back) E 1. 01 Pg. HTS Engineering Texas ICAST (International Center for Appropriate and Sustainable Technology) Johnson Controls, Inc. KawaPACE, LLC Keeping PACE in Texas Lynntech Inc Managed Network Solutions LP MHSC Energy Native, Inc. OGH Services Oldham Goodwin PACE Equity PACE Houston Peloton Commercial Real Estate, LP Petros PACE Finance Schneider Electric Buildings Americas, Inc. Simon Properties Solarview, Inc. Texas Association of Business Transwestem USGBC Texas State Level Board USGBC South Texas Regional Council Way Service, Ltd I VC) 1, _a �..a - Fq-__—� IL—_ _ Property Assessed Clean Energy (PACE) is innovative financing that enables owners of commercial, industrial and residential properties LU with five or more units to obtain low-cost, long - LU � term loans for water conservation, energy - efficiency, and renewable retrofits. Texas' PACE Statute The 2013 Texas PACE statute, SB 385, authorizes municipalities and counties to create a local PACE program and work with private sector lenders and property owners to finance qualified improvements using an optional economic development tool called the contractual property assessment. In exchange for funds provided by a private lender to pay for the improvement, the property owner voluntarily requests that the local government place an assessment secured with a senior lien on the property until the assessment is paid in full. The assessment is owed to the local government, which forwards the payments to the private lender. Community Benefits The benefits of PACE are multi -faceted, leading to a win -win-win scenario for virtually all stakeholders: For Local Governments • Improving property on the tax rolls creates jobs, Increases property value and sales tax revenue, and encourages business retention and expansion. • Updated buildings have increased occupancy, rental rates and net operating income. • Risk of obsolescence of an aging building stock is reduced. • The community's "clean city" reputation is improved, attracting workers and families. • There is no burden on the community's general fund or borrowing capacity—private sector PACE financing Is tax neutral. For the Economy • PACE unlocks opportunities for contractors, manufacturers and engineering firms. • PACE retrofits improve the efficiency and competitiveness of existing building stock. For Owners of Commercial, Industrial, and Large Multi -Family Properties • Money once spent on utilities can now be capitalized and used to pay for infrastructure upgrades, resulting in bottom-line savings. _ • Extended payback periods afford an immediate cost benefit. Assessments can be spread over multiple years, and the assessment remains with the property, allowing the utility savings to exceed the cost of the property assessment. • Businesses can utilize utility savings and hedge against increased costs. • With the application of power generation technologies, properties and operations can be protected from power blackouts or brownouts. For Lenders • Because a PACE loan is secured by the assessment, lenders can leverage its value to better serve clients with property in need of infrastructure improvements. • PACE offers a new avenue for moving an influx of capital into the marketplace. • Lenders are protected because those with mortgages on existing property must give written consent before that property is eligible for a PACE assessment. • Local lending allows current mortgage holders an option to make the PACE loan. www.KeepingPACEinTexas.org Pg. o For Our Water Resources and the Environment • Water- and energy-efficient buildings reduce stress on community resources, particularly the state's water supply. • Energy-efficient buildings help communities meet clean air goals and requirements and provide healthier environments for their occupants. Details The term of a PACE assessment may extend up to the projected life of the improvement, resulting in utility cost savings that exceed the amount of the assessment payment. PACE improvements generate positive cash flow upon completion with no out-of-pocket cost. With PACE, property owners overcome market barriers, such as limited payback periods and lack of access to capital that discourage investment in real property. PACE provides property owners with upfront financing for 100% of the cost of a qualified improvement, and allows property owners to amortize the debt over the useful life of the improvement. If the property is sold before the full amount of the PACE loan is repaid, the remaining repayment obligation automatically transfers to the next owner because the lien securing the PACE assessment follows title to the property. Successive property owners assume the lien and continue to reap the utility savings enabled by the improvement. PACE does not impose a burden on the local government's general fund because property owners pay the cost of the program. The property, not the local government, bears the risk. PACE in a Box To expedite the establishment of local PACE programs and to facilitate a consistent, state-wide approach to PACE design and implementation, Keeping PACE in Texas (KPT), a non-profit non-partisan association, organized a broad- based coalition of more than 130 stakeholders to develop a free toolkit for local governments to use in creating and implementing their PACE programs. The toolkit, known as "PACE in a Box," contains the design elements, documents, and implementation steps necessary for a local government to establish an effective PACE program quickly and economically. PACE in a Box is the first and only PACE program designed by market stakeholders. The open -market model creates a uniform, user-friendly, sustainable and scalable PACE program for Texas. Find PACE in a Box at www.Keei3ingPACEinTexas.org The Texas PACE Authority The Texas PACE Authority (TPA), a 501(c)(3) administers PACE in a Box programs on behalf of local governments in the most low cost, efficient manner. TPA a;o TEXASPACE administers Texas' first PACE program, established in Travis County in March 2015. To learn more, go to t www,TexasPACEAuthority.org. www.KeepingPACEinTexas.org \!r,I. __= pct. Family Eldercare is the first solar beneficiary of PACE financing in Texas. PACE financing enabled Eldercare to fund its new cool roof and add solar panels without diverting funds from its core mission. THE PROBLEM: Family Eldercare is a Central Texas nonprofit organization that has been 1✓ �' • L�h..Wt needed to increase net operating income and lower business expenses to provide for clients. "With hundreds of people waiting for services, any operational efficiencies we can find allow us to serve more clients," • said Kent Herring, CEO of Family Eldercare. "Our region has the fastest 0 0 0 growing population in the country — and the fastest growing senior population as well." After talks with Circular Energy about adding solar panels it learned that its building needed a new roof to support the .0 distributed generation system. This additional expenditure exceeded the project budget. ' THE PACE SOLUTION: '• �•° Long term PACE financing allowed Family Eldercare to build a new roof without any out of pocket spending in order to achieve its solar panel goal. Family Eldercare used an energy audit to analyze many efficiency C E• aspects of its facility and get a baseline for potential energy savings. The <'tPq final PACE project enabled Family Eldercare to finance comprehensive energy efficient upgrades including a new cool roof and solar panels ' • f ,+� 8N V"��Y4�YaW Yl'_ 8f fi�r�,cY ��S�i�� c' Family Eldercare is the first solar beneficiary of PACE financing in Texas. PACE financing enabled Eldercare to fund its new cool roof and add solar panels without diverting funds from its core mission. THE PROBLEM: Family Eldercare is a Central Texas nonprofit organization that has been - serving seniors and adults with disabilities for more than 30 years. It needed to increase net operating income and lower business expenses to provide for clients. "With hundreds of people waiting for services, any operational efficiencies we can find allow us to serve more clients," • said Kent Herring, CEO of Family Eldercare. "Our region has the fastest 0 0 0 growing population in the country — and the fastest growing senior population as well." After talks with Circular Energy about adding solar panels it learned that its building needed a new roof to support the .0 distributed generation system. This additional expenditure exceeded the project budget. ' THE PACE SOLUTION: '• �•° Long term PACE financing allowed Family Eldercare to build a new roof without any out of pocket spending in order to achieve its solar panel goal. Family Eldercare used an energy audit to analyze many efficiency C E• aspects of its facility and get a baseline for potential energy savings. The <'tPq final PACE project enabled Family Eldercare to finance comprehensive energy efficient upgrades including a new cool roof and solar panels without compromising its operating budget. Using PACE financing on these upgrades actually produced a positive cash flow for the nonprofit COMMUNITY IMPACT: e� Family Eldercare is a community mission -based organization serving Y �FE< Central Texas since 1982 by ensuring that older adults receive the care they need to remain independent and living in the comfort of their own homes for as long as possible. Today, Family Eldercare provides a wide° disabilities is# range of services to older individuals and adults with and their caregivers. Family Eldercare's PACE project enables Family Elder, $#a care to stretch every charitable dollar a little further for its clients._ VOL o� 3 I'g. HOW DOES PACE WORK? Property Assessed Clean Energy (PACE) is an innovative financing program that offers commercial, industrial, and large multi -family property owners to participate in a voluntary program to obtain up to l00% financing for water conservation, energy -efficiency, and distributed generation retrofits. PACE has great potential to directly affect a business' bottom line; a project's savings in utility costs offsets the cost of installing the project. In most instances, this will result in an immediate positive cash flow. TRAVIS COUNTY Travis County established Texas' first PACE program in March 2015. The economic development tool is a voluntary program that allows property owners to obtain long-term financing from private lenders without the use of taxpayer dollars or risk to the county treasury. Loans are repaid to private lenders through an assessment and senior lien placed on the improved property. The Travis County Tax Assessor Collector oversees the PACE program and projects. www.traviscountvtx.gov/pace TEXAS PACE AUTHORITY The Travis County program is administered by the Texas PACE Authority (TPA), a non-profit organization that administers Texas' new PACE statute by taking a market-based approach to energy finance and economic development. TPA works with all parties — property owners, contractors, and lenders to bring energy and water improvements that are both economically sound and environmentally friendly. w,ivtv.texaspaceauthori ty.org LENDER CONSENT GRANTED The Texas PACE Statute requires that if the property has a mortgage, the property owner must obtain the written consent of the mortgagee in order to use PACE Financing. Family Eldercare received lender consent from its mortgagee for this project. IIMiIIII'A'U PE ■ ROSS PACE Fl lance Word 12 refeWl" 9:16 (1 � CircularEnerc PETROS PACE FINANCING Petros PACE Finance, LLC is the first specialty finance firm in the US to dedicate all of its resources to the commercial PACE market nationwide. Petros PACE Finance has projects in Michigan and Texas, and is working on projects in California and Florida as well, The principles of Petros PACE Finance have substantial experience in structured finance and lending, and bring significant value to all parties involved in the transactions in which they participate. wwlv.petros-pace.wm AUSTIN ENERGY Austin Energy provides a number of commercial rebates and incentives that synergize with the PACE financing package. L1 this specific instance, AE added roof rebates of $11,000 dollars to immediately add to the cash flow model for Eldercare. In addition, AE added a production based incentive that is paid as the system produces power, in this case scents/kwh produced. For more information about Austin Energy Incentives with PACE projects, go to: tvww, powersaver, a Usti nenergy.com KENTEX ROOFING KENTEX Roofing Systems, LLC is a diversified commercial roofing contractor specializing in reroofing, new construction and all aspects of leak repair and preventive maintenance. KENTEX ownership and upper management combine over forty years of experience with an unmatched reputation for quality work and customer service. They provide state of the art equipment and a total dedication to safety. For more information go to http://kentexroofing.com/ CIRCULAR ENERGY With headquarters in Austin, Texas, Circular Energy brings years of combined energy expertise focused on building energy assets and providing innovative electricity products and energy intelligence to help clients manage energy differently. 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