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PACE Halted By City Council

Gulfport City Council did not discuss or vote on an agreement for District Management Services to serve as a third party administrator for the PACE program.

 

About one year ago, the Gulfport City Council passed a PACE Ordinance that applies only to commercial businesses. Property Assessed Clean Energy (PACE) offers loans to business owners specifically for upgrades and retrofits that improve the property value and cut energy costs.

City Council Meeting

During Tuesday night's meeting, City Council Member Sam Henderson made a motion to vote on the bid and contract submitted by District Management Services to become the third party administrator for Gulfport's PACE program.

Previously, council members agreed that a third party administrator would be needed to supply the loans and run the program. In May the City Manager put out request for proposals and DMS has since responded and submitted a contract. Ygrene Energy Fund (EcoAssets Solutions) also submitted a bid but notified the city in November that it was "declining the opportunity to deliver a contract for consideration."

Council Member Sam Henderson's motion Tuesday night "died" for lack of a second motion when the room fell silent.

"I was surprised," Council Member Sam Henderson said following the meeting.

Gulfport Patch asked if PACE has a future in Gulfport. Henderson answered, "I would say not under this current council."

Henderson expressed concern over the unanimous reaction from his fellow council members. He said councilors "are obligated to follow The Sunshine Law"

"I think it's a real shame that three council members, two of which are business owners in Gulfport shoot down another oppertunity for other business owners in the city," Henderson said.

Vice Mayor David Hastings also told Gulfport Patch that he was "surprised" by the lack of a second motion. Hastings has been openly opposed to PACE and was prepared to argue his points Tuesday night. Hastings says the contract presented by District Management Services is all "flashing lights." He said "PACE is about other people making money," citing that the agreement lists five organizations that would be involved in the program.

The "Hypothetical Energy Savings Financing" information in the packet did not add up, Hastings said, adding that there are a lot of fees that could be tacked on, pointing out the phrase "this does not include any potential annual, long term maintenance costs"on one page of the contract.

Council Member Jennifer Salmon says she wants to see clean energy move forward. "I want PACE," Salmon said. "I do believe in clean energy. What's most important to me is a return on investment."

Salmon did not elaborate on her concerns about the agreement presented by DMS.

Update: Council Member Barbara Banno contacted Gulfport Patch on Wednesday to share her thoughts on the issue.

"I am 100% behind the redevelopment of 49th St. I was ready to move forward with PACE a few months ago, when the City Manager and Staff completed the RFP process and recommended YGrene. After that did not happen I agreed to review 2 contracts from a 3rd party administrator not 1. I was not comfortable making the 2nd motion last night, because I was not 100% confident with the contract that was brought forward.

As a Council Member, I feel I have an obligation to the citizens and local business owners in Gulfport to look out for what is in our best interest. Because not one business owner showed up in support, I felt it would be presumptious on my part to move forward with such an important contract with no support.'' 

Gulfport Residents

During public comments, Al Davis spoke against PACE and against the agreement submitted by DMS.

"We as a city require two bidders, in all the field of people who might be available for this, we now have one," Davis said. "I remember a lot of promises being made. I think PACE at this stage of the game has too many unanswered questions.

"I have grave concerns over the principals of this organization and I would hope in the process of consideration of involving yourself in a financial relationship that the city would do a formal background check of issues of past behavior," he continued.

"I would caution you to follow the money because this has all the odor of a scam," Davis said.

Doug Hudson also addressed the council.

"I'd like to see the city be cautious in entering into this agreement. I'd like to see us slow down," Hudson said. "The residents depend on the city to look out for the best interest. This is a program that's gonna be sold to the residents as being approved and autorized by the city. I just want to make sure you know exactly what we're getting into."

Margarete Tober also shared her concerns.

"I would, if nothing else tonight, like to understand the relationship between Farios Marketing and DMS. I have great concerns about the Farios involvement. I'm not so concerned about DMS."

Jeri Reed spoke up in support of moving forward with PACE and moving forward with DMS serving as a third party administrator.

"I think you've done a lot of homework. This is strictly for commercial, this is not for the residents at this point because you did your homework. And that's why you voted to go with commercial only because there are unanswered questions with residential. We did have two bidders, and as I understand it, one of them pulled out.

Depending on how far back, I'm sure almost everybody in this room has something that they wished they had never done, so, So49 backs this. We all get to make our own choices on what we do, if we get involved or not."

District Management Services

"We still believe it would be a great program. It's taylor made for Gulfport," Peter Altman, Regional District Manager of DMS, said.

DMS CEO Brian Lamb believes the program would benefit commercial owners. He says they will move forward despite tonight's outcome.

"It's a matter of recognizing the concerns," Lamb said.

Lamb says DMS will work with the Gulfport City Manager to see how they can improve the contract and possibly bring it back to council for future consideration.

Farias Marketing Group

"People did a real injustice tonight," Farias said.

Marketing consultant Mario Farias was extremely dissappointed by the council's decision and said he felt personally attacked by Gulfport residents.

"The past is the past. I've worked with various organizations over the years," Farias said. "They are very cold in a cruel way to someone who's trying to do the right thing."

Farias said he will continue to work with So49 to improve and bring new businesses to Gulfport.

"This is just a setback," he said.

The Farias Marketing Group was included in the agreement for the marketing and outreach elements of the Energy Savings Program.

About this column: Gulfport Patch will keep you up informed about Gulfport City Council Regular Meetings and Monthly Workshops. Related Topics: District Management Services and Pace

mtober

7:38 am on Wednesday, January 18, 2012

I was surprised as well that there was not a 2nd though I am glad there wasn't. It will be interesting to see how DMS proceeds. Spoke to them briefly and they appear to be genuine in their desire to do the right thing. This is not the 1st time a matter has died for lack of a 2nd. However, the innuendos of collusion by Mr. Henderson and Ms. Reed (in other posts) are rather omminous and IMO really serve no purpose other than political allienation. It is ironic that , some months ago, Mr. Henderson did not want to follow the advice of staff and seek a contract with the proposal that was originally ranked higher than the DMS proposal and insisted that there be two contracts negotiated in order to include DMS. What was the point of going thru the RFP process then and why is So 49 so tied to the Farias entity? Farias Marketing which was only just formed last January after discussions for Pace were started by Ms. King. I suspect PACE will eventually happen just not necessairily with So49's hand picked preference.

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Rainbow Energy

7:45 am on Wednesday, January 18, 2012

It is great to know that our small city did not let a pack of powerful suits, ready to start their lawyering, get the chance to sugarcoat a questionable, unproven program and use Gulfport in their future marketing maneuvers with other cities. Also, before we knight a business or project, giving it our blessing and high-five backing, we must be 100% sure that we are not letting the the wolves into the chicken coup. Thanks councilmenbers Banno, Hastings, and Salmon for taking a deep breath and a step backward and not proceeding to get into bed with, I mean contract with, this questionable business promoting a program that, in my understanding, has not been given the green light by the Federal government. For as you dug deeper and further studied the proposal and contract, you saw the red flags and the need for caution and more scrutiny. Your silence spoke words of wisdom.

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Douglas Hudson

7:56 am on Wednesday, January 18, 2012

Also thanks to the Mayor! Had he simply passed the gavel to the Vice-Mayor, he could have seconded the motion! Glad to see that he agreed with Banno, Hastings, and Salmon!

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Rainbow Energy

8:23 am on Wednesday, January 18, 2012

Did Mayor Yates agree with the Banno, Hastings, and Salmon or did he want to just fence sit? He knew the project wasn't going to be passed, so he can take both sides: yes, he wanted PACE, but as mayor, he wasn't allowed to 2nd the motion, or he can say he wasn't for PACE and didn't 2nd. the motion. After 25 years in office, I can't believe he didn't know if he could 2nd a motion. Also, the city attorney was there if the Mayor needed verification. I really don't know where the Mayor stands on the issue.

Gina Burke

8:00 am on Wednesday, January 18, 2012

It is interesting that Mr. Henderson and Ms. Reid think that there is so little intelligence within the other Council Members, that it would take collusion by them in order to take a stand against something that they didn't think was a good deal for our town.

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Douglas Hudson

8:34 am on Wednesday, January 18, 2012

Actions speak louder than words...The Mayor is an experienced politician. I have to believe that he knew his options, and chose not support this contract.

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Rainbow Energy

8:37 am on Wednesday, January 18, 2012

Charlene, I have pointed out that the headlines that come up in the email messages regarding what is on GulfportPatch do not accurately list the number of comments. For example, it shows "O" comments for this article, but as of now there are "5" when I open the link. Can this be corrected? I never heard from your staff regarding my previous concern, I sent days ago. Thanks.

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Cherlene Willis

10:00 am on Wednesday, January 18, 2012

I apologize for the delay. I am checking on it right now.- Cherlene

GGagnon

1:01 pm on Wednesday, January 18, 2012

@rainbow energy,

This has a very simple explanation. When the E-mail was orignally sent, 0 comments had been posted. The e-mail is most likely automatically generated when a new article has been posted and therefore will always show 0 comments. E-mails that are sent can not be updated as a website can, and the only way it would show accurate information regarding change would be the generation of a new E-mail for every change. Hope this helps.

GGagnon

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mtober

9:07 pm on Wednesday, January 18, 2012

I exchanged voice mail messages with Mayor Yakes and he advised (paraphrased) that he did not 2nd the motion as he had no indication of business support for it.

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Harrelcat

10:38 pm on Wednesday, January 18, 2012

Powerful suits? Lawyering? Nope, just local people getting behind a proposal that has been passed in over 35 states, was passed unanimously by the Florida Legislature, and is supported by the Federal Government. The DMS team is local business people and clean energy advocates with the skills and most importantly, the passion to work (for nothing) for 2 years to try to bring this program to your community. Does it make sense that DMS would be paid for its work? With hard work to make a successful program - yes, of course. I'm sure most of you are paid for your work. We loved the idea of PACE for Gulfport because Gulfport is a tight knit community with a council that is responsive to the needs of its citizens - or so it seemed. The So49 group understands the value of investing in their own businesses instead of sending bigger and bigger checks to Progress Energy every month. They also understand that this program creates local jobs. That's what Mr. Farias brings to town - jobs and new business. Yet Council's actions seemed to demonstrate that they do not believe in moving Gulfport into energy efficiency, affordability, and the jobs that come with it. So rather than being a "scam", this is a program that is spreading across the country to help people use less energy, save money and save the planet.

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Harrelcat

10:40 pm on Wednesday, January 18, 2012

Finally, some of the DMS team is from St. Pete, a few from Tampa, but we all love Gulfport. It's a very special place. That's why the kind of personal attacks that took place at that meeting in Gulfport last night made me physically sick. They were mean-spirited, personal, and immaterial to the issue at hand - a successful PACE for Gulfport.

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cindy davis

10:55 pm on Wednesday, January 18, 2012

Al, not Cindy,
The speed with which the ward 4 representative launched the motion was of olympic quality. The mayor looked like the proverbial deer in the headlights. His familiar nose count technique showed he needed a candidate to toss under a bus in order to avoid association with a lost cause; his time honored technique of governance by avoidance. His fellow ward 4 cohort lost the toss; again.
Gulfport benefitted once again by demonsration that three council members (none from ward 4) do their own research and arrive, independently at similar conclusions based upon fact.
The ward 4 guy's unfounded inference to media that three of his fellow council members violated sunshine was bogus allegation of criminal act. His low regard for people he can't intimidate or manipulate seems evident. The Gabber, by their low standards, believe he is somehow credible. Connect the dots on this issue from point of origin to present advocates on and off council. Follow the money. Who benefits? Gulfport? Not likely.
Email rages from island retreats off the coast of Purto Rico continue to inflict outside influence on matters of city business to include elections and PACE. In this interconnected world the former ex-mayor must know her tirades appear almost immeadiately on my desk and others. Another embarrassment from a familiar source.
If you want a better town; get a better mayor. The present council has three able options; none of whom are from ward 4.

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Bryan Tree

11:31 am on Friday, January 20, 2012

This reminds me of the way the republicans fight against anything no matter how sensible just to try to kill obamas chance for reelection. Its really sad that false information and fear is being spread against the commercial pace program. The residential pace is the only one with a problem and that is falsely being used against the commercial program.
I don't know that any government program is the best answer to problems but at least this one is optional Not forcing Anyone to use it.
Please stop attacking the opponents and focus on facts not falsehoods. Thats NOT the spirit of Gulfport.

mtober

11:48 pm on Wednesday, January 18, 2012

@ Harrelcat - The contract states DMS is charging a 6.5% fee ( of the loan amt) and that it is to be added to the amount to be financed. I didn't see anything about working for free. Can you please indicate where the "work for free " clause can be found- I'm not seeing it. Thanks.
http://www.mygulfport.us/City_Meetings/Agendas/2012/011712_Regular_Council_Agenda_Packet.pdf

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mtober

12:01 am on Thursday, January 19, 2012

@harrelcat- maybe you can help me with tis too--when I look at the Farias marketing www I see a the below referencing something organized in 2010 yet the Florida Corporate records show that Farias Marketing was not formed till 2011?
--------------------------------------------------------------------------------------
WE'RE WORKING WITH NON PROFIT
GROUPS TO SERVE OUR COMMUNITY!!
Mario Farias and Farias Marketing Group were instrumental in coordinating
more than 20 groups in a successful event to rebuild homes and communit
y in south St. Petersburg in April of 2010, including City of St. Petersburg,
St. Petersburg Dream Center, Rebuilding Together Tampa Bay (RTTB),
Channel 13 Live TV and Home Depot

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Harrelcat

12:07 am on Thursday, January 19, 2012

I had referred to the work done to-date, and also stated that DMS would be paid for its work under the contract. The thing that makes PACE exciting but is so often left out of the discussion is that the loans are structured to be paid from the amount of the energy savings, i.e. the amount you would otherwise be sending to your power company. It really can be a way to shift the energy balance in favor of rate payers for a change.

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Harrelcat

12:18 am on Thursday, January 19, 2012

mtober,
I started working with the DMS team around April of 2010 and did not check the date of incorporation. These programs are new and require a lot of advocacy and community education, so until the programs actually get underway, all our efforts are at our own expense. We have developed a professional, close-knit team who all believe in what we're doing, or we wouldn't continue, believe me. All of us are long-time volunteers in the community. I, for example, have cut my expenses and work part-time elsewhere so that I can continue to try to bring PACE and other renewable energy projects to the community. I just believe it's the best future for all of us and the time is now.

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mtober

12:51 am on Thursday, January 19, 2012

@Harrelcat - Working for 2 yrs. here in Gulfport? It was only first brought to Council in Nov / Dec 2010 for a presentation and then rushed thru for a vote in early 2011. I recall other entities making presentations as well, I suspect they also "did the work for free". My father was a frame and trim subcontractor and he sat up most nights doing proposals / bids for which he did not get paid. That's business. "gotta spend money to make money".

The payment comes out of the energy savings? Yes and no. That assumes alot of things, #1 that energy prices will never go up over the 15 yrs of the loan. Also I spoke with someone in the legal field who indicated that the notion of adding the fee to the loan amt could in fact be userous. I'm no expert but thought that was an interesting observation.

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mtober

1:00 am on Thursday, January 19, 2012

Con't.>>>>>>
>>>>>>>Last night I met Mr.'s Lamb, Alderman(sp?) and Turanachik and they came across as being very professional and businesslike. I got the sense that and I believe Mr. Lamb said he'd be contacting the City Manager to discuss further options, etc. In light of that I find it odd that if you are an employee of DMS that you would comment here and more odd that you would criticize the City Council and furthermore presume that they are not in favor of energy efficiency. You will recall the topic up for discussion last night was the CONTRACT , not the PACE program nor the Council's perspective on energy efficiency. The council voted 4-1 last year for the Pace Program and only one member of the current Council has issues with it. That would be an indication that they do support energy efficiency.That being said, your little rant here seems like a very odd way to win friends.
========================================================
I didn't say anything about when the DMS team was formed. Farias says it did XXX in Spring 2010 yet the State of Florida says Farias was not a business until Jan 2011? Devil is in the details. ;-)

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Nancy Kelley

6:54 am on Friday, January 20, 2012

Thank you mtober for the above link. It is a must read for everyone interested in Pace for Gulfport.

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mtober

1:57 pm on Friday, January 20, 2012

PACE was approved by the then City Council in 2/10, most of which are on the current City Council.
2. The next step is to engage an Administrator and enter into a contract with the Admin.
3. The current City Council, by lack of a 2nd to a motion, opted not to discuss the proposed contract presented to them on Tuesday. Several members of he Council have since stated their reason for their silence.
4. Some interpret this legislative action as the end of PACE and or the end of any energy initiatives for Gulfport. Others state that the Council is against business development and or bringing jobs to Gulfport. How are these conclusions being drawn? Why are they attacking the very people that are charged with selecting an Administrator? Simply because their Administrator and Marketer of choice was not selected?
5. The current council has already stated that the re-development of 49th Street is a top if not the top priority for the City.
6. The go forward priority should be to find an Administrator and enter into a contract. The Council has a fiduciary responsibility to ensure that the contract terms protect Gulfport and it's residents / taxpayers.
7. Those that feel that the DMS/Farias team was the only option should perhaps do what the principals of DMS suggested and collaborate with City Management and City Council and determine what and how the issues may be resolved.
JM2C

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