Agenda Item
Meeting Date: 8/10/2017 - 6:30 PM
Category: SCHOOL DIVISION BUSINESS
Type: Info
Subject: Energy Performance Contract Finance Update (LED Lighting) (7:30 to 7:40)
ACPS Division Objective :
Objective 5
We will optimize resources.
Policy:
Enclosure: Enclosure 1: ACPS - Project Savings Summary
Enclosure 2: ACPS - Finance Proforma
File Attachment:
ACPS - ECM Cost and Savings.pdf
ACPS - Finance Proforma.pdf
EPC Benefits.pptx
Final Albemarle EPC Financing RFP Results_8.9.2017.pdf
Summary: At the July 13th Board meeting, staff presented an update on the possibility of using an energy performance contract to update LED lighting and water fixtures throughout our school facilities. The County Finance Department, through Davenport & Company LLC, issued a Request for Proposals for financing rates for the proposed project and received 9 proposals on August 1, 2017. The financing options and recommendations will be presented by Davenport. Davenport will present this information to the Board of Supervisors at the August 9th meeting.
Funding: Davenport will provide financing recommendations based on the RFP responses for the following options:

Option 1A: Tax Exempt financing secured by County
Option 1B: Tax Exempt financing secured by School Board
Option 2A: Taxable Bond through Virginia Resources Authority (VRA) secured by County
Option 2B: Taxable Bond through Virginia Small Business Financing Authority (VSBFA) secured by School Board

Funding options 2A and 2B 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.

Funding option 2B does not contribute to Local Government's debt capacity.
Recommendation: Ameresco representatives, Davenport representatives, Charlie Barksdale (Virginia Department of Mines, Minerals & Energy), and staff will be available to answer questions. Action items for proceeding with the project and securing financing will follow at the August 24 or September 14 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