Agenda Item
Meeting Date: 7/13/2017 - 6:30 PM
Category: SCHOOL DIVISION BUSINESS
Type: Info
Subject: Energy Performance Contract Update (LED Lighting)
ACPS Division Objective :
Objective 5
We will optimize resources.
Policy:
Enclosure: Enclosure 1: Energy Performance Contract Update
File Attachment:
Energy Performance Contract Update.pdf
Summary: We would like to provide an update on the possibility of utilizing an energy performance contract to upgrade lighting in our school facilities. The enclosure summarizes the proposed project and timeline.
Funding: We are currently exploring the following two financing mechanisms available for these potential projects:
1) Virginia Resources Authority (VRA) – In 2008, the General Assembly made energy conservation and energy efficiency projects eligible for VRA financing. Local Government must secure the VRA funding, and the borrowed amount would count towards the County’s debt capacity.
2) Virginia Small Business Financing Authority (VSBFA) - VSBFA offers loans directly to businesses & non-profits, as well as bond financings to benefit for-profit businesses, 501(c)(3) not-for-profit entities, and to support clean energy and transportation projects. The School Board can secure this financing independent of Local Government, and the borrowed amount does not count towards the County’s debt capacity.

Both funding mechanisms can take advantage of an interest rate subsidy for energy conservation projects, VirginiaSAVES. The program’s direct pay credit subsidy offsets the taxable interest rate to potentially lower the financing term for the proposed projects. Local Government is also considering an energy performance contract for lighting and water projects. Local Government intends to issue an RFP to determine the interest rate for 12-year debt for both possible financing mechanisms.
Recommendation: Staff is available to answer any questions associated with the project update. Staff intends to present financing options at the August 10th Board meeting.
Approvals:
Recommended By:
Signed By:
Lindsay Snoddy - Program Manager - Energy, Environment & Sustainability
Signed By:
Joe Letteri - Director, Building Services
Signed By:
Dean Tistadt - Chief Operating Officer
Signed By:
Dr. Pamela Moran - Superintendent