a. The provisions and operation of the EPAD program in the City of Bowling Green shall be subject to the requirements and procedures set out in the EPAD Act of 2015.
b. The City’s Department of Finance is designated as the official office for the City to administer the EPAD program and is delegated the responsibility of administering the program pursuant to the provisions of the applicable state statutes and this Subchapter, including working with the Warren County Property Valuation Administrator (PVA), the Warren County Court Clerk and all applicable City departments in the operation of the program, assessment of properties and collection of the assessments. The Department of Finance is authorized to impose fees on participating property owners to offset the costs of administering the program, including assessments and collection functions of Warren County and City offices, except that these fees shall not exceed one percent (1%) of the amount assessed per payment with the fees to be divided among the applicable agencies as agreed by the agencies. The Department of Finance is further authorized to engage financing for the purpose of administering the EPAD program from financial institutions with a physical presence in Kentucky whose deposits are insured by the Federal Deposit Insurance Corporation. In addition, the Department of Finance may contract with a third-party entity to administer the EPAD program.
c. The Department of Finance is authorized to develop the necessary application and procedures for property owners of record to apply for the EPAD program. To qualify for the program, the property owner of record shall file the application with the Department of Finance no later than thirty (30) days prior to commencing the installation of the energy project. The application shall be submitted in compliance with the procedures set out in the EPAD Act of 2015 and as established by the Department of Finance. The application shall include a legal description of the real property being improved including a deed book and page number, the PVA Code and the names and addresses of all owners of the property. The application shall also include a general description of the proposed energy project and a proposed time schedule for undertaking and completing the project. The application shall be signed by all owners of the property and shall include the written consent of the holder of each existing mortgage lien on the property stating that the lien holder does not object to the imposition of the EPAD Act lien.
d. The Department of Finance staff, in cooperation with any other City department staff, shall review each application for compliance with the applicable State statutes and the Department of Finance procedures, including a review of the energy project being proposed, an examination of the property’s baseline energy or water usage conditions and the energy or water savings projected to be achieved as a result of the energy project. For any energy project requiring a total assessment of two hundred and fifty thousand ($250,000) dollars or more, that review shall include evidence that the energy project has been examined by a Kentucky Licensed Professional Engineer who has attested that: 1) the scope of work is in compliance with all applicable building codes; 2) the scope of work and the project budget are consistent with completed projects of a similar nature; and 3) the estimated energy savings calculations are accurate and achievable.
e. The Department of Finance shall review the application and all other materials presented with it and shall determine if the application and energy study, if applicable, comply with the EPAD Act of 2015. If the application is approved, the Department of Finance, in conjunction with the City Department of Law, shall prepare and enter into a written contract between the City and the property owners accepting the energy project pursuant to reasonable terms and conditions established by the City, including the establishment of the necessary assessment to finance the costs of the project. The written contract shall set forth the total amount of the assessment, the term of the assessment, the interest rate established for the assessment and the annual amount of the assessment. The contract may also designate the qualified contractor that will construct and install the energy project. The City Manager is hereby designated to execute these contracts on behalf of the City.
f. Once the application is approved, the Department of Finance shall file a written notice of the assessment in the real property records of the Warren County Court Clerk’s Office indicating the amount of the assessment, the legal description of the real property, the name of each owner of record of the real property and a reference to the statutory assessment lien provided by the State statutes and this Subchapter.
g. Upon the recording of the written notice and the imposition of the assessment, the Department of Finance is authorized to add the assessment to the City property tax bill for the relevant property. The assessment shall be imposed and collected in the same manner as other City property taxes and any unpaid assessment shall bear the same interest rate and penalty as other City property taxes. The assessment shall, together with any interest and penalties, constitute a first and prior lien against the real property on which the assessment is imposed from the date on which the notice of assessment is recorded until paid. Furthermore, this lien shall have the same priority status as a lien for any other State or local ad valorem tax upon the property. The Department of Finance is authorized to pursue collection actions for unpaid assessments in the same manner it pursues collections of unpaid property taxes. The Department of Finance shall collect the assessments annually and make the required payments to the entity financing the energy project. Any bonds or notes issued under the applicable State statutes or this Subchapter for an EPAD project shall not be general obligations of the City and the City of Bowling Green and its officers, officials or officers shall have no liability to any persons for uncollected EPAD assessments and unpaid EPAD debt.
h. The owner shall notify the City Department of Finance upon completion of the energy project and, in the event the total assessment for the energy project is two hundred and fifty thousand ($250,000) dollars or greater, provide the Department of Finance a certification from a Kentucky Licensed Professional Engineer that an on-site inspection verifies the actual construction and installation was in compliance with the application and contract.
(Ord. BG2015-18, 6/16/2015; Ord. BG2016-49, 1/3/2017; Ord. BG2019-36, 8/20/2019; Ord. BG2023-28, 10/17/2023)