CITY OF BEACON WORKSHOP AGENDA

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1 DATE: June 8, 7:00 PM PLACE: 1 Municipal Plaza, Beacon, NY CITY OF BEACON WORKSHOP AGENDA Topics for Discussion Notes 1. Fire Department Consolidation - Conversation with Consultant 2. Energize New York - Elyssa Rothe 3. Wastewater Treatment Plant Update Odor Mitigation Plan - Ed Balicki, Superintendent 4. Wastewater Treatment Plant Liquid Chlorination Project 5. Highway Department Update on Road Paving Schedule 6. Dennings Point Bridge Easement 7. Rombout Avenue Reconstruction 8. Consideration of a Local Law to Amend the Requirements for Members of the Volunteer Fire Department 9. Executive Session-Requests to Purchase City-Owned Property

2 Title: City of Beacon Workshop Agenda 6/8/2015 Fire Department Consolidation - Conversation with Consultant Subject: Background:

3 Title: City of Beacon Workshop Agenda 6/8/2015 Energize New York - Elyssa Rothe Subject: Background: ATTACHMENTS: Description Energize NY Power Point Energize NY Local Law Energize NY Agreement Energize NY FAQ Type Backup Material Backup Material Backup Material Backup Material

4 Energize NY Finance ELYSSA ROTHE DIRECTOR OF MUNICIPAL MEMBERSHIP CITY OF BEACON JUNE 8, 2015 Commercial.EnergizeNY.org 1

5 Commercial Consumption New Yorkers spend $35 billion annually on energy in buildings $10.5 billion is wasted Commercial property owners want to save money and energy with building upgrades. Why don t they? Commercial.EnergizeNY.org 2

6 The Energy Upgrade Problem Commercial property owners need: 1. Help getting started with clean energy projects 2. Advice if they get stuck in the process 3. Access to capital. Other loan products not available. Commercial.EnergizeNY.org 3

7 The Solution Provide low-cost, long-term financing for clean energy projects in commercial sector Support property owners, service providers, municipal leaders through the clean energy upgrade process Commercial.EnergizeNY.org 4

8 EIC Energy Improvement Corporation Not-for-profit, Local Development Corp. Mission to increase Energy Efficiency & Renewable Energy Utilizes a shared service model Funded by NYSERDA, DOE, revenue from financings Serve property owners with four programs Energize NY Residential Energize NY Commercial Energize NY Finance Solarize Westchester Commercial.EnergizeNY.org 5

9 Energize NY Finance Property Assessed Clean Energy (PACE) Energize NY Finance is NY State s PACE program Municipalities would fulfill an important public purpose by providing financing to property owners for the installation of renewable energy systems & energy efficiency measures. - Article 5L of the NYS General Municipal Law NY passed PACE legislation in 2009 Repayments collected by municipality via tax bill charge Senior lien status Commercial.EnergizeNY.org 6

10 Eligible Buildings Commercially owned buildings Multifamily Healthcare Hospitality Industrial Warehouse Not-for-profit Office Retail Agricultural Institutional Private colleges Commercial.EnergizeNY.org 7

11 Eligible Improvements Renewables: Solar PV, Solar Thermal, Geothermal, Wind Efficiency: Lighting, Boiler Conversions, Furnace Upgrades, Insulation, HVAC, Chillers, Windows, Pumps, Smart Controls Commercial.EnergizeNY.org 8

12 Benefits of ENY Finance Covers up to 100% of project cost Long terms with competitive rates Rates at 3.5% - 6% Flexible terms 5-20 years Deeper upgrades Positive cash flow Automatically transfers to next property owner Aligned with community goals Job creation Keep dollars local Improve building stock Meet sustainability goals Commercial.EnergizeNY.org 9

13 Finance Criteria Estimated annual energy savings from improvements must be greater than annual finance payments Improvements have savings-to-investment ratio > 1 Property s existing loan-to-value is no greater than 80% Financing up to 10% of value of benefitted property No bankruptcy within last 7 years At least 3 year history of timely property tax payments Existing lender consent required NYSERDA energy assessments for quality & cost effectiveness Commercial.EnergizeNY.org 10

14 Municipal Role Municipality must join EIC to use ENY Finance 1. Municipality passes local law establishing program within municipal borders Template legislation completed 2. Sign MA that codifies the tax repayments to be transferred to EIC s trustee Template MA completed 3. Formally request EIC membership through letter to EIC Board Commercial.EnergizeNY.org 11

15 Municipal Costs Municipality incurs no variable cost as a member of EIC. No fees to join No membership fees Commercial.EnergizeNY.org 12

16 Municipal Tax Collection 1. Municipality adds PACE Finance charge to the annual tax bill for eligible property owners. The tax charge will be recorded on the land record for the term of the financing. It is pari passu with other line item tax bill charges, such as sewers, water districts, schools, etc. 2. Municipality collects the annual Energize NY PACE Finance tax charges from property owners. 3. Municipality remits total annual Energize NY PACE Finance tax charges to EIC s trustee regardless of tax delinquency. EIC protects Municipality from permanent losses from defaulted tax bill charge payments through Municipal Loss Reserve fund. Commercial.EnergizeNY.org 13

17 Tax Delinquency: Beacon Case Study $5,000,000 Energize NY projects = $489,886 in annual tax bill charge payments (15 yr. 5.25%) 2.60% = Beacon tax delinquency rate $12,737 = delinquent annual tax bill charges still remitted to EIC s Trustee in Year 1 $19,615 total recapture by year 3 ($12,737 principal + $2,293 interest + $4,585 penalty) Commercial.EnergizeNY.org 14

18 Current Members Dutchess County* Orange County Tompkins County* Ulster County Bedford Cortlandt (Town) Greenburgh Lewisboro Mt. Kisco Mt. Vernon New Rochelle North Salem Pound Ridge Rye (City) Somers White Plains Yorktown *Membership pending Cortland (City)* Ossining Croton-On-Hudson Peekskill Commercial.EnergizeNY.org 15

19 Prospective Members Albany (County) Auburn (City) Broome (County) Buffalo (City) Cayuga (County) Erie (County) Genesee (County) Glens Falls (City) Ithaca (City) Kingston (City) Monroe (County) Nassau (County) Oneida (County) Onondaga (County) Rochester (City) Saratoga (County) Schenectady (County) Schenectady (City) Suffolk (County) Syracuse (City) Troy (City) Warren (County) Westchester (remaining areas) Commercial.EnergizeNY.org 16

20 EIC Services MEMBER SERVICES Strategy development Launch & event planning for municipality Outreach & marketing support for municipality PROPERTY OWNER SERVICES Support with NYSERDA Application support Finance analysis tools Contractor qualification Property owner summits Commercial.EnergizeNY.org 17

21 Economic Development Buildings with low energy costs are more attractive to buyers Well maintained buildings are more attractive to potential employers Lowers the cost of doing business for existing owners Community stakeholders have increased dollars Spending and reinvestment in local economy Business stability and expansion Commercial.EnergizeNY.org 18

22 Workforce Development Energy projects increase demand for skilled building professionals Job creation and increased opportunity in engineering, architecture, HVAC and renewable fields EIC run trainings for local building professional workforce, in collaboration with local incentive programs Commercial.EnergizeNY.org 19

23 Environmental Benefit Mid Hudson Region Sustainability Plan: Section ES-13 Our plan for energy is to Become radically less energy and fossil fuel intensive while strengthening the regional economy To achieve these objectives, as the highest priority, we must: Create community energy districts develop innovative project, financing, and policy models. Goals of Energize NY Finance directly align with the Mid Hudson Region Sustainability Plan. Healthier, livable communities. Cleaner air quality, reduced GHG emissions, less pollution. Commercial.EnergizeNY.org 20 energizeny.org 20

24 Let s Get Started 1. Review template Local Law legislation and EIC Municipal Agreement. 2. Pass legislation, sign Municipal Agreement, send letter to EIC Board to request membership. 3. Launch Energize NY! Commercial.EnergizeNY.org 21

25 Energize NY Elyssa Rothe: (914) x108 Commercial.EnergizeNY.org Commercial.EnergizeNY.org 22

26 2/22/13 FINAL LOCAL LAW NO A LOCAL LAW TO ESTABLISH A SUSTAINABLE ENERGY LOAN PROGRAM IN THE Be it enacted by the of the County of as follows: Section 1. The Code of the is hereby amended by adding a new Chapter, entitled Energize NY Benefit Financing Program, to read as follows: ARTICLE I 1. Legislative findings, intent and purpose, authority. A. It is the policy of both the and the State of New York to achieve energy efficiency and renewable energy goals, reduce greenhouse gas emissions, mitigate the effect of global climate change, and advance a clean energy economy. The finds that it can fulfill this policy by providing property assessed clean energy financing to property owners for the installation of renewable energy systems and energy efficiency measures. This chapter establishes a program that will allow the Energy Improvement Corporation ( EIC ), a local development corporation, acting on behalf of the, to make funds available to qualified property owners that will be repaid by such property owners through charges on the real properties benefited by such funds, thereby fulfilling the purposes of this chapter and fulfilling an important public purpose. B. The is authorized to implement this Energize NY Benefit Financing Program pursuant to Article 5-L of the New York General Municipal Law. C. This chapter shall be known and may be cited as the Energize NY Benefit Financing Program Law of the. 2. Definitions For purposes of this chapter, and unless otherwise expressly stated or unless the context requires, the following terms shall have the meanings indicated:

27 2/22/13 FINAL Authority The New York State Energy Research and Development Authority, as defined by subdivision two of section eighteen hundred fifty-one of the public authorities law, or its successor. EIC the Energy Improvement Corporation, a local development corporation, duly organized under section fourteen hundred eleven of the Not-For-Profit Corporation Law, authorized hereby on behalf of the to implement the Energize NY Benefit Financing Program by providing funds to qualified property owners (as defined in this chapter) and providing for repayment of such funds from monies collected by the tax collector as a charge to be levied on the real property and collected in the same manner and same form as the taxes. Energy Audit A formal evaluation or assessment of the energy consumption of a permanent building or structural improvement to real property, conducted by a contractor certified by the Authority, or certified by a certifying entity approved by the Authority, for the purpose of identifying appropriate energy efficiency improvements that could be made to the property. Energy Efficiency Improvement Any renovation or retrofitting of a building to reduce energy consumption, such as window and door replacement, lighting, caulking, weatherstripping, air sealing, insulation, and heating and cooling system upgrades, and similar improvements, determined to be cost-effective pursuant to criteria established by the Authority, not including lighting measures or household appliances that are not permanently fixed to real property. Qualified Property Owner An owner of residential or commercial real property located within the boundaries of the that is determined to be eligible to participate in the Energize NY Benefit Financing Program under the procedures for eligibility set forth under this chapter. Renewable Energy System An energy generating system for the generation of electric or thermal energy, to be used primarily at such property, by means of solar thermal, solar photovoltaic, wind, geothermal, anaerobic digester gas-to-electricity systems, fuel cell technologies, or other renewable energy technology approved by the Authority not including the combustion or pyrolysis of solid waste. Renewable Energy System Feasibility Study A written study, conducted by a contractor certified by the Authority, or certified by a certifying entity approved by the Authority, for the purpose of determining the feasibility of installing a renewable energy system. 3. Establishment of an Energize NY Benefit Financing Program A. An Energize NY Benefit Financing Program is hereby established by the, whereby EIC acting on its behalf, may provide funds to

28 2/22/13 FINAL Qualified Property Owners in accordance with the procedures set forth under this chapter, to finance the acquisition, construction and installation of Renewable Energy Systems and Energy Efficiency Improvements and the verification of the installation of such systems and improvements. B. The funds provided shall not exceed the lesser of ten percent of the appraised value of the real property where the Renewable Energy Systems and/or Energy Efficiency Improvements will be located, or the actual cost of installing the Renewable Energy Systems and/or Energy Efficiency Improvements, including the costs of necessary equipment, materials, and labor and the cost of verification of such systems and improvements. 4. Procedures for eligibility A. Any property owner in the may submit application to EIC on such forms as have been prepared by EIC and made available to property owners on the website of EIC and at the offices. B. Every application submitted by a property owner shall be reviewed by EIC acting on behalf of the, which shall make a positive or negative determination on such application based upon the criteria for making a financing enumerated in subsection A of section 5 of this chapter. EIC may also request further information from the property owner where necessary to aid in its determination. C. If a positive determination on an application is made by EIC acting on behalf of the, the property owner shall be deemed a Qualified Property Owner and shall be eligible to participate in the Energize NY Benefit Financing Program in accordance with the procedure set forth under section 6 of this chapter; provided that in no case shall a property owner that has received funds from another municipal corporation for the acquisition, construction and installation of Energy Efficiency Improvements and/or Renewable Energy Systems be deemed a Qualified Property Owner. 5. Application criteria A. Upon the submission of an application, EIC acting on behalf of the, shall make a positive or negative determination on such application based upon the following criteria for the making of a financing: 1. The proposed Energy Efficiency Improvements and/or Renewable Energy Systems are determined to be cost effective by the Authority; 2. The proposed Energy Efficiency Improvements and/or Renewable Energy Systems will generate an estimated annual cost savings greater than the annual charge payments;

29 2/22/13 FINAL 3. Sufficient funds are available to provide to the property owner; 4. The property owner is current in payments on any existing mortgage; 5. The property owner is current in payments on any existing real property taxes and has been current on real property taxes for the previous three years; and 6. Such additional criteria, not inconsistent with the criteria set forth above, as the, or EIC acting on its behalf, may set from time to time. 6. Opt-in, Energize Finance Agreement A. A Qualified Property Owner may participate in the Energize NY Benefit Financing Program through the execution of an Energize Finance Agreement made by and between the Qualified Property Owner and EIC, acting on the behalf of the. B. Upon execution of the Energize Finance Agreement, the Qualified Property Owner shall be eligible to receive funds from EIC acting on behalf of, for the acquisition, construction, and installation of qualifying Renewable Energy Systems and Energy Efficiency Improvements; provided the requirements of section 7 of this chapter have been met. C. The Energize Finance Agreement shall include the terms and conditions of repayment set forth under section 8 of this chapter. 7. Energy audit, renewable energy system feasibility study A. No funds shall be made available for Energy Efficiency Improvements unless determined to be appropriate through an Energy Audit as defined in Section 2. B. No funds shall be made available for a Renewable Energy System unless determined to be feasible through a Renewable Energy System Feasibility Study as defined in Section 2. C. The cost of such Energy Audit and/or Renewable Energy System Feasibility Study shall be borne solely by the property owner but may be included in the financed amount if the work is approved. 8. Terms and conditions of repayment The Energize Finance Agreement between the Qualified Property Owner and EIC acting on behalf of the, shall set forth the terms and conditions of repayment in accordance with the following: A. The principal amount of the funds paid to the Qualified Property Owner hereunder, together with the interest thereon, shall be paid by the property owner as a charge on

30 2/22/13 FINAL their tax bill and shall be levied and collected at the same time and in the same manner as property taxes, provided that such charge shall be separately listed on the tax bill. The, shall make payment to EIC or its designee in the amount of all such separately listed charges within 30 days of the tax due date. B. The term of such repayment shall be determined at the time the Energize Finance Agreement is executed by the property owner and EIC, provided that in no case shall the term exceed the weighted average of the useful life of the systems and improvements as determined by EIC acting on behalf of the. C. The rate of interest for the charge shall be fixed by EIC acting on behalf of the at the time the Energize Finance Agreement is executed by the property owner and EIC. D. The charge shall constitute a lien upon the real property benefited by the Energize NY Benefit Financing Program and shall run with the land. A transferee of title to the benefited real property shall be required to pay any future installments, including interest thereon. 9. Verification and report A. EIC shall be responsible for verifying and reporting to the on the installation and performance of Renewable Energy Systems and Energy Efficiency Improvements financed by such program. B. The shall verify and report on the installation and performance of Renewable Energy Systems and Energy Efficiency Improvements financed by the Energize NY Benefit Financing Program in such form and manner as the Authority may establish. Section 2. This local law shall take effect upon filing with the Secretary of State.

31 ENERGY IMPROVEMENT CORPORATION MUNICIPAL AGREEMENT This Agreement made as of this day of, 20_ (the Agreement ), by and between the (the Municipality ) and the Energy Improvement Corporation ( EIC ) (both the Municipality and EIC may hereinafter be referred to individually as a Party and collectively as the Parties ), sets forth the duties and obligations of each Party in connection with the Municipality s participation in the Energize New York Benefit Finance Program (the Program ). WHEREAS, EIC is a local development corporation duly formed under Section 1411 of the Not-For-Profit Corporation Law of the State of New York, for the purpose of promoting, facilitating and financing energy audits and renewable energy system feasibility studies, energy efficiency improvements and alternative or renewable energy generating systems (as such terms are defined in Section 119-ff of the General Municipal Law of the State of New York) (collectively, the Energy Improvements ) on properties within its Participating Municipalities (as defined below), thereby promoting the public good by reducing greenhouse gas emissions, mitigating the effect of global climate change and lessening the burdens of government; and WHEREAS, Participating Municipalities are those municipalities within the State of New York that have established by local law, pursuant to Article 5-L of the General Municipal Law of the State of New York, a sustainable energy loan program for the issuance of financing to the owners of real property located within the Participating Municipality to finance Energy Improvements, and have authorized EIC to act on behalf of the Participating Municipality to carry out the Program through, among other things, the issuance of financing to property owners within such Participating Municipality, and have met the minimum criteria established by EIC to admit new Participating Municipalities; and WHEREAS, the Municipality adopted Local Law on, 20, pursuant to Article 5-L of the General Municipal Law of the State of New York, which Local Law also authorized EIC to act on its behalf in carrying out its Program; Now, THEREFORE, in consideration of the mutual promises contained in this Agreement, the Parties agree as follows: 1. Duties of EIC It is understood by the Parties that EIC will be responsible for the performance of the following duties: 2/21/13

32 a) Receive and review applications submitted by property owners within the Municipality for financing of Energy Improvements ( Property Owner(s) ), and approve or disapprove such applications in accordance with underwriting procedures and requirements established by EIC. b) Review the applications, energy assessments and scopes of work prepared for and by the Property Owners to establish the amount of financings to be approved pursuant to the requirements of the Program. c) Execute finance agreements (the Finance Agreement ) by and between EIC (on behalf of the Municipality) and the Property Owners for financing of Energy Improvements, which shall set forth the terms and conditions for the disbursement and repayment of financing and the duties and obligations of each Property Owner and EIC with respect to the acquisition, construction and installation of Energy Improvements (upon execution of the Finance Agreement by the Property Owner and EIC, the property that is the subject of the Finance Agreement shall be deemed a Benefited Property ). Copies of all executed Finance Agreements for all Benefited Properties within the Municipality shall be provided to the Municipality by EIC upon execution. d) Receive and review the certificates of completion submitted by the Property Owners of Benefited Properties (or the contractor hired by the owner of a Benefited Property) following installation or construction of Energy Improvements on such Benefited Property, and disburse funds to the Property Owner of the Benefited Property or his/her/its agent upon approval of such certificate in accordance with the terms of the Finance Agreement and the Program. e) Deliver to the Municipality an annual report (the Annual Report ) three months prior to when Municipal Taxes are due which shall contain information related to each Benefited Property within the Municipality through the end of the immediately preceding calendar year, including: i. A list of each newly approved Benefited Property for which the Property Owner or previous Property Owner of the Benefited Property executed a Finance Agreement within the annual time period covered by such report (for which a charge shall be added by the Municipality to its tax rolls in accordance with Paragraph 2b below). All Benefited Properties shall be identified in the Annual Report by address and Tax Map Identification (i.e. section, block and lot); ii. A list of each existing Benefited Property for which the Property Owner or previous Property Owner of such Benefited Property executed a Finance Agreement. All Benefited Properties shall be 2/21/13 2

33 identified in the Annual Report by address and Tax Map Identification (i.e. section, block and lot); iii. A list of each Benefited Property within the Municipality where all obligations under the Finance Agreement have been satisfied or paid in full during the calendar year including the satisfaction date and a copy of the notice of satisfaction; iv. For each non-satisfied Benefited Property (including each newly approved Benefited Property): a. the date of the Financing Agreement, b. the notional amount of the financing, c. the total principal balance and accrued interest outstanding, d. the annual payment due to EIC (which shall include principal and accrued interest) associated with such Benefited Property (including the amount of accrued interest on the initial payment, if different); v. the total annual payment due to EIC from all Benefited Properties in the Participating Municipality (which shall include principal and accrued interest), which shall be paid by the Municipality within thirty (30) days of the date upon which payment is due to the Municipality as part of the municipal tax bill in accordance with Paragraph 2(c) and the balance of any delinquent charge payment reported by the Municipality during the term of the Financing Agreement pursuant to Paragraph 2(d) and; vi. All other information EIC may deem to be relevant to each Benefited Property within the Municipality. f) Create an account (the EIC Trust Account ) held by a trustee that will accept payments from the Municipality made in accordance with Paragraph 2(d) below, and create a separate account (the EIC Administrative Fee Account ) to receive the transfer of those funds deposited within the EIC Trust Account that constitute payment of EIC administrative fees; g) Provide customer service by telephone to the Municipality during the hours of 9:00 a.m. through 5:00 p.m. Monday through Friday, Eastern Standard Time, excluding state and federal holidays; h) Upon EIC s receipt of payment in full under a particular Finance Agreement, send a letter of satisfaction by to the Municipality notifying it that such Property Owner or subsequent owner of the Benefited Property has satisfied his/her/its obligations under the terms of the Financing Agreement; 2/21/13 3

34 2. Duties of the Municipality It is understood by the Parties that the Municipality will be responsible for the performance of the following duties: a) Maintain copies received from EIC of each Finance Agreement for a Benefited Property throughout the term of the Finance Agreement relating to such Benefited Property, which shall be maintained until all obligations of the owner of such Benefited Property that are set forth in the Finance Agreement have been satisfied. b) Within thirty (30) days of receipt of the Annual Report, add a charge to its tax rolls for each newly approved Benefited Property listed therein, and include such charge in the next ensuing tax levy so that such charge shall be included on and due in the same manner and at the same time and in the same installments as the municipal taxes on real property are due within the Municipality and shall become delinquent at the same times, shall bear the same penalties and interest after delinquency, and shall be subject to the same provisions for redemption and sale as the general municipal taxes on real property of the Municipality. c) Within thirty (30) days of the due date of the municipal taxes, including the charge pursuant to a Finance Agreement, remit payment to the EIC Trust Account in the amount equaling the total annual payments due to EIC from each Benefited Property within the Municipality, regardless of whether the Municipality actually has received such payments from the owner of the Benefited Property. Failure to deliver payments to EIC would be considered an event of default hereunder. d) Deliver to EIC an annual delinquency report (the Delinquency Report ) no later than (90) days after the due date for the municipal taxes, including the charge, which shall: (i) list each Benefited Property that is delinquent in charge payments owed for such Benefited Property, (ii) provide the amount owed to the Municipality by the owner of such Benefited Property (including penalties and interest on delinquent charge payments), and (iii) outline the steps taken or to be taken and progress made in recovering delinquent charge payments from the owner of such Benefited Property. e) Make all reasonable efforts to assist EIC in carrying out the Program within the Municipality. 3. Program Modification The Municipality may modify the Program by limiting the types of properties which may receive financing for Energy Improvements and/or the amount of financing available within the Municipality. The Municipality shall provide written notice to 2/21/13 4

35 EIC of such proposed modification. The proposed modification shall only become effective upon written approval from EIC provided to the Municipality, which shall not be unreasonably withheld. Such approval shall have no effect on the duties and obligations owed by each Party hereto in connection with this Agreement and any Benefited Property for which a Finance Agreement was executed prior thereto. 4. Non Payment a) Failure of a Participating Municipality to deliver payments to EIC within thirty (30) days of when due shall be considered an event of default and EIC shall be entitled to pursue any one or more of the remedies set forth below. b) No Participating Municipality shall be responsible for the deficient payment of another Participating Municipality. 5. Terms of Membership The Municipality understands and agrees that membership in EIC is at the discretion of the Board of Directors of EIC and is conditional upon satisfying the membership criteria established by the EIC Board, as may be amended from time to time at the sole discretion of the Board, as well as compliance with the terms of the By-Laws of EIC. If a Participating Municipality s bond credit rating drops below A as rated by Standard and Poors and/or A2 as rated by Moodys and/or A by Fitch Ratings Service, EIC will no longer provide financings to Properties within such Municipality. 6. Reserve Funds and Permanent Loss (a) EIC shall maintain one or more reserve funds (each a Reserve Fund, collectively, the Reserve Funds ) to protect and compensate EIC, Participating Municipalities, lenders of funds to EIC, and other third parties approved by EIC against potential losses, including without limitation losses suffered by a Participating Municipality resulting from defaulted charge payments only in the event of a Permanent Loss (defined below) with respect to a Benefited Property. Certain Reserve Funds may be restricted in that they may only be used in conjunction with financings made to properties located within one or more designated Participating Municipalities. All Reserve Funds will be held at a bank or trust company located and authorized to do business in NYS. Reserve Funds will be invested in accordance with the investment guidelines approved by EIC (the Investment Guidelines ) as may be amended from time to time. (b) EIC reserves the right to refuse to make a financing to a property located within a Member Municipality in the event EIC determines, in its sole discretion, that there are inadequate reserve funds. (c) A loss shall not be deemed a permanent loss until the Participating Municipality has exhausted all remedies at law in an effort to collect the defaulted charge payments, including but not limited to the redemption and sale of the Benefited 2/21/13 5

36 Property where the proceeds are not sufficient to recover all amounts paid by the Municipality to EIC after the proceeds of such sale have been proportionately applied to all amounts owed to the Municipality at the time of such sale as a result of the non-payment of taxes ( Permanent Loss ). In order to collect from the Reserve Fund in the event of a Permanent Loss, the Municipality must provide EIC with all documentation as may be reasonably requested by EIC to document such Permanent Loss and must not be in default to EIC, including having made all payments to EIC when due. 7. Remedies Upon Default Should the Municipality default in any of its obligations hereunder, including but not limited to failure to make payments to EIC as required hereunder, EIC shall be entitled to any remedy it may have at law and as set forth below. EIC may utilize any one or all of these remedies at EIC s sole discretion. a) If the Municipality fails to make a required payment to EIC and the Municipality collects penalties or interest from the Property Owner for late payment, the Municipality shall pay to EIC all such penalties or interest attributable to the charge collected by the Municipality on behalf of EIC. b) EIC shall have the right to discontinue providing any new financings to Properties located within the Municipality. c) EIC may suspend the Municipality s membership in EIC. 8. Formation; Authority Each Party represents and warrants to the other that it has complied with all laws and regulations concerning its organization, its existence and the transaction of its business and that all necessary steps have been taken to authorize it to execute, deliver and perform its respective obligations under this Agreement, and no consent or approval of any third party is required for either Party s execution of this Agreement or the performance of its obligations contained herein. The individual executing this Agreement on behalf of each Party has been and is duly authorized to bind his/her respective Party. 9 No Violation or Litigation The performance by each Party of its respective obligations contained in this Agreement will not and do not conflict with or result in a breach of or a default under any of the terms or provisions of any other agreement, contract, covenant or security instrument or any law, regulation or ordinance by which the Party is bound. There is no litigation, action, proceeding, investigation or other dispute pending or threatened against either Party which may impair its ability to perform its respective 2/21/13 6

37 duties and obligations hereunder. 10. Notices Any and all notices, demands, or other communications required or desired to be given hereunder by either Party shall be delivered electronically and in writing by certified mail, return receipt requested as follows: EIC: Thomas Bregman Energy Improvement Corporation 321 Bedford Rd, Bedford Hills, NY Joseph Del Sindaco Energy Improvement Corporation 321 Bedford Rd, Bedford Hills, NY Attention: Tom Bregman Joseph Del Sindaco With a copy to: James Staudt, Esq. McCullough, Goldberger & Staudt, LLP 1311 Mamaroneck Avenue, Suite 340 White Plains, N.Y jstaudt@mgslawyers.com MUNICIPALITY: With a copy to: 2/21/13 7

38 Either Party hereto may change its address for purposes of this paragraph by providing written notice to the other party in the manner provided above. 11. Governing Law. This Agreement shall be construed and governed in accordance with the laws of the State of New York. Any legal action to be brought under this Agreement must be instituted in State or Federal Courts having jurisdiction located in Westchester County, New York. IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first written above. The Parties hereto agree that facsimile signatures shall be as effective as if originals. Date:, 20 Energy Improvement Corporation By: PRINT NAME: Date:, 20 Municipality Name: By: PRINT NAME: 2/21/13 8

39 Frequently Asked Questions Municipal Leaders Updated December 14, 2014 Administrative Questions What kinds of properties can use Energize NY Finance? Financing is available to existing, commercially owned properties within Energy Improvement Corporation (EIC) member municipalities in New York State. New construction is not eligible although financing for a renewable energy system on a recently completed building is eligible. Commercial properties include but are not limited to: offices, retail spaces, healthcare facilities, hospitality facilities, incorporated multifamily properties, cooperative multifamily properties, industrial buildings, warehouses, manufacturing, nonprofits, religious houses of worship, and more. Can a municipality restrict a certain building from using the program? As per Article 3 of the municipal agreement, you may modify the program by requesting that the EIC pass a resolution for your municipality that restricts a class of buildings and/or introduces a more restrictive underwriting requirement. You may not approve or deny specific building owners or projects on a case-by-case basis. Can the municipality make edits or changes to the wording in the local law or municipal agreement? The wording of the local law is based on Article 5-L of the NYS General Municipal Law which enables PACE in NYS and is not subject to edits or changes by individual municipalities. All municipalities that join the EIC must sign the same local law and same municipal agreement, so the wording is uniform for all members. Modifications to the municipal agreement may be requested as a separate document, as per Article 3. How much does it cost to join the EIC? There is no cost to join the EIC, no membership fees, and no charge to withdraw at any time. Underwriting Criteria Questions What is the maximum amount Energize NY can finance? Energize NY Finance can provide capital up to 10% of the value of the property. There is no dollar amount at which the financing is capped. Energize NY also requires that any existing debt on the property does not exceed 80% of the value of the property (80% LTV). Financing must be based on a scope of work that is conducted by an accredited contractor and approved by NYSERDA (New York State Energy Research and Development Authority.) How is the property value determined? Energize NY recognizes two types of property appraisals. 1) The fair market value (FMV) as reported by the local assessor on the latest Final Tax Roll. 2) An appraisal conducted within the last 12 months by a certified New York State Appraiser who is a Member of the Appraisal Institute (MAI). Energy Improvement Corporation 2051 Baldwin Road, Suite #107, Yorktown, NY (914) Commercial.EnergizeNY.org Page 1 of 4

40 Do you look at the property owner s credit in your underwriting procedure? Frequently Asked Questions, Municipal Leaders The Energize NY Finance tax charge is not attached to an individual or a company, it is attached to the property. Each property that applies for financing must meet the underwriting criteria, including no tax delinquencies within the last 3 years, existing mortgages/debt on the property cannot exceed 80% of the value of the property, and the owner cannot have filed for bankruptcy in the last 7 years. How is projected energy usage determined? Due to Article 5-L of the General Municipal Law, Energize NY defers to NYSERDA s standard procedures for certifying and accrediting contractors/developers, conducting energy audits and feasibility studies, and approving scopes of work. All properties must undergo an energy audit to determine current baseline energy usage before implementing upgrades, and work scopes must be approved by NYSERDA for all properties. Tax Charge Collection Questions What is the administrative role of the municipality after joining the EIC? The EIC manages all aspects of qualifying projects, approving applications, and facilitating financing. The Municipal Tax Assessor s office is responsible for physically adding the tax charge to applicable property tax bills, collecting the payments, and remitting the total annual Energize NY Finance tax charges to EIC s trustee. EIC will provide documentation with the amounts of each financing to be added to applicable property tax bills in advance of tax rolls being finalized. Does the municipality need to pass a specific resolution for each project, to distribute the Energize NY Finance tax charge on the tax bills each year? The municipality's payment obligation is subject to annual appropriations of the governing body as a matter of law. Just as other tax bill charges need to be authorized each year, so does the Energize NY Finance charge, but all PACE projects within the municipality are consolidated into one annual authorization. They do not need to be authorized individually. Does Energize NY Financing affect the 2% tax cap? The Energize NY PACE Finance charge is not an ad valorem tax, it is a tax bill charge. It is pari passu with all taxes and is similar to fees for service listed on the property tax bills, such as sewer and water charges. It is the opinion of EIC s Attorney, Squire Patton Boggs, that the Energize NY Finance tax bill charges do not affect the 2% tax cap. What happens if a property owner does not pay the Energize NY Finance tax charge? A property owner must pay their entire tax bill at one time. They cannot make the choice to include or exclude the Energize NY Finance charge, they must pay the full amount owed on the tax bill, or they will be delinquent in their taxes. What if a property doesn t pay their taxes? To meet Energize NY s underwriting criteria for financing, the property owner must meet over a dozen criteria including being current on their taxes for the last 3 years. Evidence from other PACE programs around the country Energy Improvement Corporation 2051 Baldwin Road, Suite #107, Yorktown, NY (914) Commercial.EnergizeNY.org Page 2 of 4

41 Frequently Asked Questions, Municipal Leaders shows that it is unlikely that a property owner in this good standing would become delinquent due to their Energize NY Finance charge. In the unlikely case that this does happen, the municipality would be responsible for remitting the amount of the finance charge to the EIC trustee. If the municipality can demonstrate a permanent loss on a property that has unpaid Energize NY Finance tax charges, the municipality will have access to the Municipal Loss Reserve Fund which refunds the amount that was lost, specific to the finance charge. This is explained further in Article 6 of the municipal agreement. How does a municipality demonstrate a permanent loss? A permanent loss can be demonstrated through proof that the property went into In-Rem foreclosure, and after the tax sale, the amount the municipality used to pay the finance charge was not fully recovered. In the event of a permanent loss on the behalf of the municipality, Energize NY Finance is the only public authority with a plan in place to ensure that municipal funds are replenished. Permanent losses from charges and assessments related to schools, water, sewers, etc. are not reimbursed. How is the Municipal Loss Reserve account funded? Our reserve fund currently has a balance of $1.1mm, funded with a NY Green Bank letter of credit and federal dollars from grants. With each financing that is closed.35% of the total loan is deposited into the reserves. Can you explain the constitutionality of foreclosure as it relates to Energize NY Finance? Article 5-L of the NY State General Municipal Law requires that the repayment for Energize NY financed improvements be made through a tax line on the regular property tax bill of the improved property. Furthermore, it states that these tax bill charges are to be collected in the same manner and same form as regular property taxes. Lender Consent Questions Why would a bank holding a senior mortgage on a property, give lender consent for the Energize NY Finance charge to take senior standing? The underwriting standards for Energize NY Finance were aided by bankers representing national financial institutions specifically to make lender consent an attractive option to financial institutions holding a senior mortgage. Senior mortgage lenders understand property taxes and assessments and factor them into underwriting decisions. There is broad acceptance of PACE as an assessment or tax charge, which limits lien exposure only to unpaid assessments, distinguishing it from a loan. There are many reasons a financial institution holding a senior mortgage would give lender consent for Energize NY Finance to hold senior lien status. The most common three reasons that banks approve lender consent are: 1. When a property implements energy improvements or installs renewable energy sources, the value of that property increases. This improves the value of the mortgage holder s collateral. 2. To be approved for Energize NY Finance, all projects must be immediately cash flow positive. The property owner will have immediate increased cash flow, which enhances their ability to make existing mortgage payments. 3. Lenders not consenting to Energize NY Finance run the risk of losing their customers to other financial institutions that are willing to refinance competitor loans and include Energize NY Finance in the new Energy Improvement Corporation 2051 Baldwin Road, Suite #107, Yorktown, NY (914) Commercial.EnergizeNY.org Page 3 of 4

42 Frequently Asked Questions, Municipal Leaders capital stack. Energize NY has a portfolio of banks that are committed to refinancing any competitor loans that deny lender consent for the PACE finance charge. CONTACT INFO questions can be referred to: Energy Improvement Corporation 2051 Baldwin Road - Suite 107 Yorktown Heights, New York, (914) info@energizeny.org Energy Improvement Corporation 2051 Baldwin Road, Suite #107, Yorktown, NY (914) Commercial.EnergizeNY.org Page 4 of 4

43 Title: City of Beacon Workshop Agenda 6/8/2015 Wastewater Treatment Plant Update Odor Mitigation Plan - Ed Balicki, Superintendent Subject: Background:

44 Title: City of Beacon Workshop Agenda 6/8/2015 Wastewater Treatment Plant Liquid Chlorination Project Subject: Background: ATTACHMENTS: Description WWTP Liquid Chlor Rec Type Cover Memo

45

46

47 Title: City of Beacon Workshop Agenda 6/8/2015 Highway Department Update on Road Paving Schedule Subject: Background: ATTACHMENTS: Description Type 2015 Paving Plan Backup Material

48 Anthony Ruggiero, City Administrator City of Beacon One Municipal Plaza Beacon, New York Office Fax To: Mayor and Council From: Anthony Ruggiero, City Administrator Date: June 4, 2015 Re: 2015 Paving Projects In consultation with Mr. Thomaselli, Highway Superintendent, and in accordance with the approved capital plan, we have confirmed the follow streets for paving in Road Cost Wilkes 60,450 Church 43,680 E. Willow 61,620 Larch 6,240 Franklin 15,990 South 63,180 Commerce 11,895 Depuyster Washington Madison Judson Total 8, ,880 11,700 23,400 $416,225.00

49 Title: City of Beacon Workshop Agenda 6/8/2015 Dennings Point Bridge Easement Subject: Background: ATTACHMENTS: Description Dennings Point Draft Easement Type Backup Material

50 TEMPORARY EASEMENT AGREEMENT THIS TEMPORARY EASEMENT AGREEMENT (the Agreement ) dated as of this day of, 2015 by and between THE CITY OF BEACON (the"city"), a municipal corporation with offices located at One Municipal Plaza, Beacon, NY 12508, and THE NEW YORK STATE OFFICE OF PARKS, RECREATION & HISTORIC PRESERVATION (the State Parks ), a department of the State of New York with offices at [insert]. WITNESSETH: WHEREAS, the City is the owner of certain real property known as, Beacon, New York, as shown on the map attached hereto as Exhibit A and more particularly described as [insert grid no.] on the Dutchess County Tax Grid (the City Property ); and WHEREAS, State Parks is the owner of certain real property known as Dennings Point State Park (the Park ), in the City of Beacon, New York, access to which is made by traversing a bridge over an existing railroad owned and operated by Amtrak and/or MetroNorth; and WHEREAS, State Parks has undertaken a capital construction project to make major capital repairs to the aforesaid bridge (the Project ) which will necessitate the staging and storing of equipment and supplies for the Project on the City Property; and WHEREAS, it is therefore necessary and/or desirable that the City grant State Parks a temporary easement on the City Property to allow the State Parks and its contractors and materialmen to access the City Property and stage and store equipment and material thereon; and WHEREAS, the City is willing to provide State Parks with said temporary easement, as more particularly described and defined in Schedule A attached hereto (the Easement Area ). NOW, THEREFORE, for and in consideration of the amount of One Dollar ($1.00), and in further consideration of the mutual covenants contained herein, the parties hereto, intending to be legally bound, agree as follows: 1. Subject to the terms and conditions of this Agreement, the City hereby grants and conveys unto State Parks (including, for all purposes, State Parks and its agents, affiliates, representatives, employees and contractors), for the benefit of State Parks: (i) a temporary and exclusive easement over and across the Easement Area for the staging and storage of construction equipment and material used in the Project; and (ii) the right, privilege and authority at all times to enter and remain upon the Easement Area and to access same through adjacent lands of the City. The easement described in the foregoing clauses (i)-(ii), collectively, the Temporary Easement. 1

51 2. The term of the Temporary Easement shall commence as of the date hereof and shall terminate on the eighteen (18) month anniversary thereof, unless extended by mutual, written agreement of the parties. 3. State Parks shall require its contractors and/or subcontractors to obtain and maintain comprehensive liability insurance in amounts reasonably satisfactory to the City, which policies shall name the City as an additional insured. State Parks shall provide the City with certificates of insurance, with separate endorsements naming the City as an additional insured, reflecting same prior to any use of the Easement Area. 4. All costs incurred in connection with the staging and storage of equipment and material within the Easement Area, including security therefore, shall be the sole responsibility of the State Parks. The parties agree the City shall have no responsibility to safeguard or secure the Easement Area or the equipment or materials placed on the Property by State Parks and shall incur no liability with respect thereto. 5. State Parks, at its sole cost and expense, shall: (i) keep the Easement Area in good order and repair for the duration of this Agreement, including without limitation repairing any damage and all other necessary repairs; (ii) repair any damage to personal or real property of the City, which arises in any way from the Temporary Easement; (iii) be responsible for keeping the Easement Area secure and safe; (iv) be responsible for the removal of any debris; (v) apply for and keep current all permits and licenses required, if any, for the lawful use of the Easement Area; and (iv) restoring the Easement Area, and any other affected areas of the Property, to their pre-easement condition upon discontinuing use of the Temporary Easement. 6. State Parks shall not dump, bury or store hazardous materials, combustible materials or harmful or noxious materials of any kind on the Property at any time. Notwithstanding the preceding sentence, State Parks may store fuel products on the Property temporarily, provided such fuel products are (a) necessary to power equipment used in the Project and are (b) removed at the end of each work day; or (c) secured such that they are not susceptible to theft or acts of vandalism. State Parks and its contractors and/or subcontractors shall defend, indemnify and hold the City, its directors, officers, employees, agents, partners, and successors and assigns of any of them harmless from and against any and all claims, damages, losses, liabilities, cost and expenses, including, without limitation, reasonable attorneys fees and court costs, that arise out of or in connection with (i) the exercise by State Parks or its contractors and/or subcontractors of 2