2017-18 

July 26, 2017  Agenda  Item #26 page 611

Informational Presentation on Solar Feasibility Study Estimated Cost $23.4 million

Board Audio  at 2:01:53  Discussion of CREB Bonds

NEXT STEPS:

"Develop and submit an application to the IRS for CREB financing to ensure the District Captures necessary funding before the cap on available funding is reached" page 627

CUSDWatch covered this Board Meeting: link to Agenda Item #26 Solar Feasibility Study

CUSD Staff submitted the application for CREB Bonds in June of 2017.

Did Staff have Board approval to file an application for CREB Bonds in June 2017?

This was an Information/ Discussion item

The Board did not take any action.

 

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CUSDWatch Comment

The addition of solar was expected to reduce CUSDSs' utility bill by 44% from $91,516,257 to $49,407,025.

 Capital Purchase Power Purchase
Basline Utility Cost  $91,516,257 Basline Utility Cost  $91,516,257
Benefit of Solar  + $3,697,653 Benefit of Solar +9,991,197
Cost of Solar - $38,411,579 Cost of Solar - $32,118,035
Remaining Utility Cost $49,407,025 Remaining Utility Cost $49,407,025

 

If CUSD purchased the system CUSD was projected to save $3.7 million over 25 years. 

If CUSD paid for the system using a PPA (Power Purchase Agreement) CUSD was projected to save $10 million over 25 years. A solar power purchase agreement (PPA) is a financial agreement where a developer arranges for the design, permitting, financing and installation of a solar energy system on a customer's property at little to no cost.

 

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ARC Alternatives will present the findings of the solar feasibility study. Under consideration is whether the District should move forward with issuing an RFP to solar vendors to implement the solar projects, and whether the District should submit an application for financing the solar projects with Clean Renewable Energy Bonds (CREBs), which are a low interest cost method of financing subsidized by the United States Department of Treasury.

Solar Sizing Analysis

  • ARC Alternatives performed a site visits at each of the seven sites identified by the Capistrano Unified School District. 
  • Sites include the six high schools and the District Office.
  • We developed a prototypical conceptual system for each site.
  • Specific layout consideration are as follows:
    • Locations – Layouts include all areas initially deemed viable for solar; only a subset of the area shown for each site will be needed for a final system.
    • Parking Lot Lighting - Lighting where carport structures are installed will need to be removed. We are exploring options for reusing recently installed fixtures.
    • Existing Trees – Solar installations will require significant tree removal to make room for solar shade structures.
    • Shaded Accessible Parking – ADA rules require an equal portion of accessible spaces covered by shade as not accessible spaces.

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August 15, 2017

The District was awarded an allocation of Clean Renewable Energy Bonds by the US Department of the Treasury on August 15, 2017 in the amount of $23.87 million for the seven project sites. 

CUSDWatch Comment

Did Staff act unilaterally; without Board approval, to apply for CREB Bonds in June 2017?

September 13, 2017 Agenda Item #4  Independent Contractor, Professional Service and Master Contract Agreements

Board Audio at 2:40 Corrections were made to three contracts.

Contracts page 80 of 998

ICA 1718118 Governmental Financial Strategies page 141 of 998

PSA 1718110 Dannis Woliver Kelley page 143 of 998

ICA 1718117 Cooperative Strategies LLC page 127 of 998

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CUSDWatch Comment

On September 11, 2017 I sent Trustees a letter asking them to pull two contracts: 

ICA 1718118 $325,000.00 Contract with Government Financial Strategies to provide financial advisory services and analysis review and evaluation of a District Wide Solar Project.

Funding: Prop 39/General Funds 

and 

PSA 1718110 $50,000.00 Contract with Dannis Woliver Kelley to provide Bond Counsel services for CREB Bonds (Clean Renewable Energy Bonds).

Funding: General Funds   

 

Trustees pulled three contracts and made the following corrections to the Items:

ICA 1718117 Cooperative Strategies LLC Prepare Annual Five Year Report should read that funding is from Developer Fees, not the General Fund. 

ICA 1718118 Government Financial Strategies financial advisory services and analysis review and evaluation of a District wide solar project should read. Report should read that funding is from Bond Proceeds/ CFDs/ General Fund not Prop 39. Expenditures for this contract should read $250,000.00 not $325,000.00. 

PSA 1718110 Dannis Woliver Kelly to provide Counsel services for CREB Bonds should read Bond Proceeds not General Fund.

The corrections Trustees made verbally on September 13, 2017 have not been reflected in a "REVISED" Agenda to date. See Board minutes Agenda Item #4 and New Contracts page 81 of 998 

 

September 25, 2017 

Staff released RFP for proposals for solar and battery storage at seven sites

CUSDWatch Comment.

November 8, 2017 Agneda Item #35 Board Audio at 1:46:22 Presentation by Clark Hampton who introduced Russel Driver of ARC Alternatives who stated that they had released an RFP on September 25, 2017

October 11, 2017 Agenda Item #25 page 783

Presentation by Government Financial Strategies on using CREBS to finance Solar Energy

Board Audio at 3:58:35

"The solar feasibility study estimated net project cash flow benefits of approximately $100,000 - $200,000 per year totaling nearly $3.7 million over 25 years." at page 783

Trade commission recommended tariffs which has the potential to effect the cost/benefit of the solar project. 

Received CREBS $23.87 million.

Supplemental Financing will bring total to $24.8 million

This was an information/ discussion item only.

No board action was taken

NEXT STEPS:

Tonight: First Reading Debt Policy

November 8th: Board considers adoption of:

Debt Policy 

Resolution authorizing CREBS

December 6th Board considers adopt of resolution approving solar vendor contract

January 24th report back on CREB Bond financing.

 

 

 

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CUSDWatch Comment 

CUSD Staff is saying that the CREB Bond Application was submitted AFTER a presentation to the Board. Staff Submitted the application in June 2017. The first presentation on CREB Bond financing was on July 26, 2017

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CUSD stated to Trustees that Aliso Niguel High School would be used as collateral for the Lease- Lease back. But here they are saying:

2012 COPs: Capistrano Valley High School

New COPs: Las Flores Middle School

What are 2012 COPs?

 

October 20, 2017

CUSDWatch Comment 

The District Received 13 proposals with a wide variety of proposers in terms of size, location, and experience. Some of the proposls also offer battery storage systems. This was stated in Russel Driver's presentation to Trustees on November 8, 2017

November 8, 2017 Agneda Item #35 Board Audio at 1:49:11

October 26, 2017

CUSDWatch Comment 

CPUC Decision to reopen time-of-use (TOU) grandfathering for an additional 60 days. District is in an excellent position to submit interconnection agreements before the deadline, further improving projected savings from the project. 60-day time limit to be grandfatherd in.

November 8, 2017 Agenda Item #35 Board Audio at 1:51:30

 

  Draft of Preliminary Official Statement [page 974]
October 27, 2017 

Memorandum [page 789] from Government Financial Strategies re: 2017 Certificates of Participation- Authorizing Resolution and FInanciang Documents

Resolution

In addition to authorizing the sale of the Certificates via competitive bid process to finance energy projects and fund financing costs, the resolution also:

  • Sets the maximum amount of Certificates that may be issued ($26 million). Note that we will only issue as much as needed to accomplish the energy project and fund financing costs, but the maximum allows us the flexibility to adjust to changing market conditions.
  • Sets the maximum interest rate to 6%, and the maximum underwriter’s discount (or compensation) to 2%.
  • Designates a component of the Certificates as New Clean Renewable Energy Bonds.
  • Authorizes District officials to engage our firm as financial advisor, Dannis Woliver Kelley as special counsel.
  • Approves the forms of various financing documents listed below.
  • Authorizes certain District officials— such as the Superintendent and the Director, Business and Support Services--to execute the final versions of such documents to be completed after the sale of the Certificates.

Note that since the resolution approves the financing documents in form only to be finalized after the sale of the Certificates, many of the financial terms in the documents are blank, and will be filled in following the results of the sale.

Form of the Site Lease

Under the Site Lease, the District leases the school site chosen as collateral for the Certificates to a non-profit corporation, the Capistrano Unified School District School Facilities Corporation (the “Corporation”), in exchange for a one-time payment equal to the Certificates’ proceeds.

CUSDWatch Comment

Lease-leaseback agreement.

In a lease-leaseback agreement, a school district leases its property to a developer for a nominal amount and the developer constructs the construction project and returns the property back to the school district. A significant number of lease-leaseback agreements are entered into without competitive bidding.

California Education Code Section 17406 provided statutory authority for foregoing the competitive bidding process. That Section provides:

The governing board of a school district, without advertising for bids, may let, for a minimum rental of one dollar ($1) a year, to any person, firm, or corporation any real property that belongs to the district if the instrument by which such property is let requires the lessee therein to construct on the demised premises, or provide for the construction thereon of, a building or buildings for the use of the school district during the term thereof, and provides that title to that building shall vest in the school district at the expiration of that term. The instrument may provide for the means or methods by which that title shall vest in the school district prior to the expiration of that term, and shall contain such other terms and conditions as the governing board may deem to be in the best interest of the school district. (Emphasis added.)

CUSD put Capistrano Valley High School up as collateral.

November 8, 2017 

CUSD received proposals in response to RFP which were evaluated by the evaluation committee consisting of District staff and consultants, evaluated each of the proposal and developed a shortlist for interviews.

No students?

CUSDWatch Comment

From December 6, 2017 Agenda Item #33 page 525 of 657

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November 8, 2017 PUBLIC HEARING: Financing Solar Energy Projects page 13

Board Audio  at 1:05:45

No Public Comments

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November 8, 2017 Agenda Item #35 page 767

Board Audio  at 1:46:22 Presentation by Clark Hampton introduced Russel Driver of ARC Alternatives

Asked for Solar at all sites battery storage optional. Tree removal and replacement included.

Received 13 proposals- still evaluating proposals but all proposals came under the $24 million CREB Bond financing.

Next Steps: Come back December 6, 2017 for award of contract. 

Board Audio  at 1:58:07  Jack Hartsing student Tesoro High School 

Board Audio  at 2:00:27 Kyle Krugger student Tesoro High School

Board Audio  at 2:03:31 Erica Hunting San Clemente High School

Board Audio at 2:06:27  Trustee Discussion

Board Audio at 2:06:32 Trustee Bullockus Aliso Niguel HS no savings at last presentation - but now looks great?  Capo Valley HS 3 parking lots - why no panels on lot 3.

Board Audio at 2:08:54 Trustee McNicholas Prop 39 savings.

Board Audio at 2:09:17 Trustee Hanacek needs to understand funding.

Response Russel Driver CREB Bonds or Power Purchase Option. CREBS are Debt that can only be used on energy projects.

Board Audio at 2:12:40 Clarification Keith Weaver Government Financial Strategies savings on solar pays off debt and remainder $100,000 - $200,000 per year can be used in the General Fund

Board Audio at 2:14:27 Trustee Holloway Carbon Calculator for tree removal

Board Audio at 2:15:50 Trustee Jones Battery ready?

Board Audio at 2:20:41 Trustee Hanacek Warranties - 25 year obsolescence

Board Audio at 2:24:14 Student Advisor- electrical charging stations

This was an Information/ Discussion Item Only

No Board action was taken 

 

Solar Procurement Update 

Board of Trustees received an information presentation from ARC Alternatives on the status of the RFP to solar vendors, preliminary results, and the proposed process and timeline leading up to Board consideration of a solar vendor.

The solar feasibility study in July 2017 estimated net project cash flow benefits of approximately $100,000 to $200,000 per year, totaling nearly $3.7 million over 25 years. The project budget was $23.4 million. The District received 13 proposals from solar vendors, and all 13 proposed project costs below the budget.

CUSDWatch Comment 

If you look at the charts below- the district is not anticipating any savings on putting solar panels at the district office. In a previous meeting it was stated that the District offices had the most potential for savings? Also- the District offices were not included in the CEC applications- only the 6 high schools?

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November 8, 2017 Agenda Item #36 page 788

Resolution No. 1718-24 Authorizing the Execution and Delivery of the Capistrano Unified School District 2017 Certificates of Participation (New Clean Renewable Energy Bonds) ([page 792]

Series A – Direct Subsidy) and the Capistrano Unified School District 2017

Certificates of Participation (Series B – Taxable) in an Aggregate Principal Amount of Not to Exceed $26,000,000 for the purpose of funding solar energy projects.

Board Audio  at 3:08:14

Trustees approved the Resolution 5-0-2

CUSDWatch Comment

Trustees were very confused by Lease-lease back arrangement. Keith Weaver Government Financial Strategies explains:

Board Audio at 3:10:10

State law does not allow school districts to do loans without voter approval. So districts use capital leases (lease to own). Most common for equipment.

CUSD is leasing a property to the Facilities Corporation in order to get the money (CREB bond funds). In this case Aliso Niguel High School will be the collateral.

Lease Back Facilities Corporation owns Aliso Niguel HS and then CUSD pays back the lease over time.

 

Trustees approved $26 million in CREB bonds and a Lease- Lease Back financing arrangement using Capo Valley High School and Los Flores Middle school as collateral to finance the purchase of the system.

Estimated net project cash flow benefits of CREB Bond financing and the Lease Lease back arrangement would generate approximately $100,000 - $200,000 annual cash flow for a total of $3.7 million over 25 years.

Memorandum from Government Financial Strategies re: 2017 Certificates of Participation- Authorizing Resolution and FInanciang Documents

November 8, 2017 Agenda Item #37 page 1,052 

Board Audio  at 3:13:01

This is the same Resolution as in Agenda Item #36, but it is being approved by the Directors of the Facilities Corporation

Trustees approved the Resolution 5-0-2

 

Resolution No. 1718-25, A Resolution of the Board of Directors of the Capistrano Unified School District School Facilities Corporation Authorizing Delivery and Sale of Capistrano Unified School District 2017 Certificates of Participation (New Clean Renewable Energy Bonds) [page 1,053] (Series A – Direct Subsidy) and the Capistrano Unified School District 2017 Certificates of Participation (Series B – Taxable) in the Maximum Principal Amount of $26,000,000 and Approving Related Documents, Agreements and Actions. 

The Resolution authorizes the Capistrano Unified School District Facilities Corporation to be involved in the issuance of Certificates of Participation, with the designation of Clean Renewable Energy Bonds, and approves the associated legal documents. The financing would be issued in the amount of not-to-exceed $26 million for the purpose of funding solar energy projects.

Lease Agreement [page 1,064]

[page 1,102] The District plans to apply the portion of the proceeds from the sale of the Certificates deposited to the Project Fund to finance the costs of installation of solar photovoltaic energy systems on the following school campuses: Aliso Niguel High School, Capistrano Valley High School, Dana Hills High School, San Clemente High School, San Juan Hills High School, Tesoro High School, and District administrative office. 

[page 1,105] Exhibit E Form of Certificate of Addition of Project Component

Trust Agreement [page 1,111]

WHEREAS, the District applied for and has received from the Internal Revenue Service allocation of authority to issue new clean renewable energy bonds, in an aggregate amount of $23,870,000 (“Allocation”), under Section 54C(a) of the Internal Revenue Code (the “Code”) to finance various solar photovoltaic projects of the District (collectively, the “Project”) which constitute “qualified renewable energy facilities” within the meaning of Section 54C of the Code...

[page 1,112] “Certificate Payment Date” means June 1 and December 1 of each year commencing December 1, 2018 with respect to the interest payments evidenced by the Certificates and December 1 of each year commencing December 1, 2019 with respect to the principal payments evidenced by the Certificates.

December 1, 2017 Lease Commences

December 6, 2017 CUSD BOT Meeting Agenda Item #8 PUBLIC HEARING: ENERGY SERVICE CONTRACT FOR SOLAR ENERGY PROJECTS 

Board Audio at 1:52:01

Board Audio at 1:52:40 Trustee McNicholas starts to close the Public Hearing but Clark Hampton Deputy Superintendent for Business Services  interrupts the Public Hearing and request that a statement must be read into the record... four Items.

No Public Comments

Board Audio at 1:53:02

Trustee McNicholas reads a very long statement into the record which is not contained in the AGenda Item and has not been disclosed despite a Public Records Request.

 

 

 

 

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December 6, 2017 CUSD BOT Meeting Agenda Item #33 UPDATE ON SOLAR ENERGY PROJECTS AND REQUEST FOR PROPOSALS RESULTS page 520

Board Audio at 2:50:28  Russel Driver of ARC Alternatives presents the item. 

REC solar is lowest capital cost up front

Estimated Average Annual Savings $849,275 per year 

$21,231,875 over 25 years'

Students get extra Credit for attending Board meetings to advocate for solar.

Public Comments

Board Audio at 3:06:23 Jack Heartstein - States they have already received $23.7 million in CREB Bonds. Survey 99.3% of students say they are in favor of Solar Panels

Board Audio at 3:06:23 Malad Sakalee student Dana Hills speaking in favor of owning solar. 

Board Audio at 3:12:12 Ally Mavoss Tesoro High School re: On-line Survey

Board Audio at 3:15:38 Declan Herinton - Trees

Board Audio at 3:18:19 Niami - 

Board Audio at 3:18:19 Erica Hunting San Clemente High - overview of journey

Board Audio at 3:24:15 Kyle Kregger Tesoro High School- Vote to Approve Solar

Board Audio at 3:27:13 Trustee Discussion - AMy Hanacek suggested that their should be a video documentary

Board Audio at 3:28:59 Trustee Bullockus praised the speaking ability of students

Board Audio at 3:29:27 Student Advisor congratulates students for their work.

Board Audio at 3:30:48 Trustee Holloway Trees

Board Audio at 3:33:09 Trustee McNicholas thanked the students for sticking with the project

This was an Information/ Discussion Item only.

No board action was taken.

 

 

 

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December 6, 2017 CUSD BOT Meeting Agenda Item #34 RESOLUTION NO. 1718-28, RESOLUTION TO ENTER INTO ENERGY SERVICE CONTRACT page 532

Board Audio at 3:34:30 Clack Hampton presents. If approved CUSD would sell CREB Bonds tomorrow?

Board Audio at 3:35:48

Trustees approved Resolution 1718-28 which awarded the Energy Service Contract to REC Solar for the design , Installation and commission of Solar energy projects. Contract Amount $18,372,631

 

 

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Capital Cost $17,563,660.00

O&M $713,788.00

Performance Guarantee $95,184.00

Total Cost = $18,372,631.00 

The total cost approved in the resolution is $18,372,631.00

However- documentation in Agenda Item #33 showed a Total Cost of $20,622,124 excluding OEM of $713,788.00.

There seems to be a cost discrepancy of $2,963,281.00?

Agenda Item #33 ARC states that the total cost of the project is projected to be $20,622,124.00 excluding OEM.

The Resolution stated that OEM was $713,788.00 so according to Agenda Item #33, CUSD is spending $21,335,912 for the solar project not the $18,372,631 as stated in the resolution.

In addition to the above, CUSD amended the Agenda Item by Handout at the meeting which was NOT included in the original documentation for the Public Hearing Agenda Item #8 or Agenda Item #33 and #34.

In addition to the $43,830 paid to ARC Alternatives, CUSD has also paid Government Financial Strategies $250,000 as a financial Consultant on the Solar Project and $50,000 to Danis Wolver Kelly for work on the CREB Bond financing even after Staff represented to Trustees that there was NO EXPENSE in applying for the CREB Bonds.

see: October 11, 2017 2017 Complaint to DA for Brown Act Violations

Were these costs (paid for from Pacifica San Juan Mello Roos payments) included in the cash flow projections? 

December 6, 2017  Agenda Item #A Ratify and Renumber Corporation Resolution Authorizing Delivery and Sale of Capistrano Unified School District 2017 Certificates of Participation (New Clean Renewable Energy Bonds) (Series A – Direct Subsidy) and the Capistrano Unified School District 2017 Certificates of Participation (Series B – Taxable) in the Maximum Principal Amount of $26,000,000 and Approving Related Documents, Agreements and Actions. page 1

Board Audio at 1:38 CUSD 

Trustees approved the Resolution 5-0-2

CUSDWatch Comment

At the November 8th meeting Directors approved Agenda Item #37 as Directors of the CUSD Facilities Corporation but they used CUSD Board Resolution numbering instead of Facilities Corporation numbering so this item fixes the number of the Resolution

November 8, 2017 Agenda Item #37 page 1,052 

Board Audio  at 3:13:01

This is the same Resolution as in Agenda Item #36, but it is being approved by the Directors of the Facilities Corporation

Trustees approved the Resolution 5-0-2

 

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December 6, 2017  Agenda Item #B Adoption of Corporation Resolution No. 2017-02, Resolution of the Board of Directors of the Capistrano Unified School District Facilities Corporation Holding Annual Meeting and Electing Officers of the Corporation: The Capistrano Unified School District School Facilities Corporation (Corporation) was incorporated to assist the Capistrano Unified School District (District) in financing and refinancing public schools and school facilities by, among other things, participating with the District in the execution and delivery of certificates of participation. page 5

Board Audio at 2:59

Trustees approved the Resolution 5-0-2

 

CUSDWatch Comment 

This Resolution is to affirm the names of the Officers of the Facilities Corporation

 

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December 6, 2017  Agenda Item #C Approve the minutes of the December 14, 2016 Capistrano Unified School District Facilities Corporation page 8

Board Audio at 4:25:16

4-0-1-2

One abstention Trustee Bullockus because she was not a Director in 2016

CUSDWatch Comment 

The Resolution number in the minutes is Resolution No. 2016-01 because this is the minutes from the December 14, 2016 meeting.

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December 7, 2018

Sale of bonds via competitive bid process

January 24, 2018 Agenda Item #38 page 4 of 15

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December 21, 2017 

Financing on CREB Bonds is scheduled to close

See: December 6, 2017 CUSD School Facilities Corporation Agenda Item #A page 1 of 9

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December 21, 2018

CUSD Deposited CREB Bond Funds 

CUSD Deposited CREB Bond Funds 

January 24, 2018 Agenda Item #38 page 15 of 15

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December 26, 201  TOU Deadline  CHECK THIS 2017 or 2018

January 24, 2018 CUSD BOT Meeting Agenda Item #38 FINANCING RESULTS OF CLEAN RENEWABLE ENERGY BONDS FOR SOLAR ENERGY PROJECTS page 874

Board Audio 3:48:22

The District was awarded an allocation of Clean Renewable Energy Bonds by the US Department of the Treasury on August 15, 2017 in the amount of $23.87 million for the seven project sites.

This is an Information/ Discussion Item - No Board Action was taken.

Board Audio at 3:56:09 Trustee Bullockus how did you pick the order of the schools

Response: need more time to educate coastal communities re: appearance and coastal impact

Board Audio at 3:58:13 Trustee McNicholas do these projects need EIR's

[Inaudible]

Board Audio at 3:58:52 Trustee Jones Internet discussions- money should be spent in the classroom.

Board Audio at 3:59:49 Trustee McNicholas not General fund money.

This was an information/ discussion item only, no board action was taken.

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Annual Savings are now estimated to be $25,692,716 over 25 years due to favorable bond rates.

Issued $550,000 less in debt to do the same projects,

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Due to Bond cost reductions CUSD will now see $25,692,716 in savings over 26 Years rather than the $21,231,863 previously thought. This will provide CUSD with $849,275 per year in cash flow for other purposes if the following assumptions are correct:

Potential Tariff $0.15/watt - The Tariff is $.30/watt  so how much does that reduce the savings to?

Annual Rate Escalation 3% - This is limited to the first 10 years - What about the remaining 15 years? 

Sequestration - 7% 

Estimates included budget for tariffs of 15 cents/watt came in at 10 cents/watt so CUSD came under budget by 5 cents per/watt

The Federal Government eliminated CREB Bonds as of January 1, 2018.

Expect to receive $8.3 million dollars in federal subsidies over 26 years to help repay CREBS

Expect to receive $10 million in matching state modernization funds.

Financing Results of Clean Renewable Energy

This is an Information/Discussion Item - No Board Action is necessary.

How much money did CUSD receive?

CUSD was awarded $23.87 million in CREBs on August 15, 2017

CUSD Trustees approved Resolution 1718-24 authorizing the issuance of $26 million in CREBS November 8, 2017

CUSD budgeted and deposited $21,705,00 in CREBs on December 21, 2017

CUSD financed $21,155,000 because costs were $550,000 less than expected. Net Project Funds $20,622,124

Doing this project gives CUSD access to $10 million in State Modernization funds. How will this be spent? 

April 25, 2018 Agenda Item #32 page 1,218

PROP 39- Program Up-date

Board Audio at 2:54:38

Prop 39 - Program Up-date

Received $10.5 million in Grant Funds

Conservation and Efficiency

LED Lighting – Internal and External

Building Automation Standardization

Energy Management Software Program

HVAC Contingency Repair Effort

Board Audio at 3:03:38

High School Savings
Capo Valley  $40,686 
*Dana Hills   $92
*San Clemente   $15,175
San Juan Hills   $46,685
Tesoro  $65,514
Aliso Niguel  $70,659

Total Raw Savings

Feb 2017 - Jan 2018

$238,811 

* Dana Hills did not receive a building automation system Why Not?

* San Clemente High went on line in April 2018

 

Board Audio at 3:04:57 Communications Campaign

Board Audio at 3:05:38 Student Engagement

Public Comments

Board Audio at 3:06:30 Dawn Urbanek

$26 million

$10 million

Controlls on HVAC system that are past their useful life

Tax Deductions- Trump changed that from $2 to $7. We need to fix our buildings and buy new HVAC systems not fix them.

Trustee Comments

Board Audio at 3:08:06 Trustee Hanacek

Three new buildings - were they built with efficiencies?

Response- Caution mind set- new school sites use more energy than old.

Board Audio at 3:09:54 Clark Hampton New buildings will use more energy because they are all air conditioned. 

Board Audio at 3:10:58 Trustee Holloway New Buildings- Solar on top of new buildings - why not. All are solar ready. 

Board Audio at 3:12:01 Trustee Jones Solar on roofs is not always as good as parking structures which can be oriented to get most sun. 

CREB Bonds- were for Solar Projects only

 

 

CUSDWatch Comment 

The Passage of Prop allocated $2.5 billion to K-12 and Community Colleges to implement energy saving projects.

CUSD Money Received through Prop 39 Grant 
Year

EEP Funds paid to CUSD by State

Proposition 39 - Multi-year Schedule(XLSX; Updated 20-Aug-2018)
Consolidated fiscal information for fiscal years 2013–14 through 2017–18

Allocations were based on the % students in the district that are English Language Learners, receiving free and reduced lunch and/or are in Foster Care

What CUSD says it received
Planning Funds   $629,370 $629,370
Year CUSD Award Allocations  
2013-14 $2,097,901    $1,468,531
2014-15 $1,829,324   $1,829,324
2015-16 $1,651,437   $1,651,437
2016-17 $2,546,996   $2,546,996
2017-18 $2,414,706   $2,414,706
Total  $9,910,994 $9,910,994 $9,910,994
  $10,540,364 $10,540,346
EEP Funds Remaining at State  $690,787  
Added Community Roots Academy   $250,664

 

Estimated Annual Savings  
Phase I  LED Lighting at 6 High Schools (completed Feb 2017)  $226,733
Phase II  Building Automation Systems (Carrier I-Vu Standard) at 5 High Schools / LED Lighting at Dana Hills HS, SchoolDude Energy Module Software Program (completed March 2018)  $442,342
Phase III  Building Automation Systems (Carrier I-Vu Standard) and LED External Lighting (est complete by 9/18)  $217,522
Total   $886,579

 

Utility Provider Incentives  

This money is suppose to go back into school facilities

Phase I  LED Lighting Rebates $7,233
Phase II  BAS Rebates  $442,342
Phase III  BAS Rebates (tentative) $85,697
Total   $535,272

 

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2018-19 

October 3, 2018

Source: February 27, 2019 Agenda Item #13 page 413

RFP No. 1-1819 Inspector of Record published in OC Register

The evaluation committee identified the following firms as meeting those criteria and intends to establish a bench: Vital Inspection Services, TYR, Inc., AWI Industries, Knowland Construction Services and Sandy Pringle Associates, Inc.

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October 10, 2018 Agenda Item #5 page 266

Change Order No. 1 to Resolution No. 1718-28, Enter Into Energy Service Contract – REC Solar Project in the amount of $672,580.26.

Board Audio at 23:30 

Public Comment

Board Audio at 23:59 Dawn Urbanek 

Resolution 1718-28 Energy Service Contract with REC Solar was approved December 6, 2017 in the amount of $18,372,631  

This is a change Order in the amount of $672,580. The Contract budgeted $0.15/watt but REC was able to obtain the solar panels at $.09/watt. That should be a savings of $0.06/watt reducing the contract amount.

Instead Staff is changing the original contract amount to $17,563,660 and with the change order adding $672,580 to get to the original contract amount? 

What is going on here? This change order makes the original Resolution incorrect.

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CUSD Watch Comment

Due to governmental tariffs implemented earlier in the year, it has impacted the cost of the solar panels for the project. This increase was anticipated and is accounted for in the contract. Staff budgeted for a $0.15/watt increase and was able to obtain the panels at a $0.09/watt increase. This change order consists of additions, deletions, or other revisions now being presented to the Board for approval. All such changes in the work are performed under applicable conditions of the change in contract documents. 

Financial Implications

The financial implications related to this agenda item are detailed in the attached exhibit for Change Order No. 1 to Resolution No. 1718-28 in the amount of $672,580.26 bringing the total project cost up from $17,563,660 to $18,236,240.26. With this change order, the project continues to remain under budget.

Contract Amount from $17,563,660 to $18,236,240.26

If REC was able to save money why is the PO increasing?

see CUSDWatch: October 10, 2018 Agenda Item #5 CHANGE ORDER NO. 1, RESOLUTION NO. 1718-28, ENTER INTO ENERGY SERVICE CONTRACT – REC SOLAR PROJECT

"Per Contract Article 20.9, shown below, REC is submitting a request for change order to adjust for the cost of modules for the CUSD solar projects for the sum of  $672,580.26.

"Change Order Adjust for Cost of Modules. The parties agree that as of the effective date that contractor shall submit a Request for Change Order to adjust for the difference in the cost of the modules required for the Project between the cost assumed by Contractor prior to the effective date ($0.40/watt) and the actual cost of such modules at the time of procurement and following the implementation of the solar tariffs, whether these costs are higher or lower, in an amount not to exceed including adjustments based on the actual tariff, all mark=ups and costs. $0.55/watt. Notwithstanding anything in this agreement, the District agrees that it shall issue a Change Order in response to such a request for Change Order for the adjusted price of the modules in accordance with the terms of this Article 20.9"

For background on the Tariffs- see January 24, 2018 CUSD BOT Meeting Agenda Item #38 FINANCING RESULTS OF CLEAN RENEWABLE ENERGY BONDS FOR SOLAR ENERGY PROJECTS .

 

February 27, 2019 Agenda Item #13 page 413

Award of Request for Proposals RFP No. 1-1819 Inspector of Record multiple vendors

The evaluation committee identified the following firms as meeting those criteria and intends to establish a bench:

  • Vital Inspection Services,
  • TYR, Inc.,
  • AWI Industries,
  • Knowland Construction Services
  • Sandy Pringle Associates, Inc.

 

2019-20 
March 2019

Completed Construction Phase I and II

CUSDWatch Comment

Slide from October 16, 2019 Agenda Item #33 page 736 

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October 16, 2019 Agenda Item #33 page 731

Informational presentation on the completion of Prop. 39 projects, and generated savings for Phase I and Phase II.

Board Audio at 1:21:09 Mark Starky from Schneider Electric. Up-date Phase I and II (before solar). After Salaries and Benefits your utility costs are the second highest line item in the budget:

Annual Utility Cost
Electricity $10.2 M
Natural Gas  $379 K
Water/ Sewer $1.7 M
 Total $12,279 M

 

Average Utility Cost
High School $650K
Middle School $250K
Elementary School $100K

 

Savings After Phase I and II
Energy Costs kwh
Baseline  $3,691,638  .221
After  $3,320,838   .240

Savings $370,800

10% savings despite an 8.4% increase in utility rates

up .19

8.4%

 

Trustee Comments

Board Audio at 1:31:51 Trustee Bullockus asks about discrepancies.

[discussion]

Board Audio at 1:34:51

San Clemente High is one of the oldest schools but not the most expensive- their HVAC isn't working so maybe that is how they are saving money.

[laughter] Really ?

Board Audio at 1:36.05 Trustee McNicholas $680k utility cost avoidance - what is the total cost?

Response all of these projects were funded by your Prop 39 Grant 

CUSDWatch Comment

The Prop 39 Grant Amount was $10.5 million

IT WAS FREE

Saving $370K per year spending -0- district funds is great.

 

Information/Discussion Item 

No Board Action was taken

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Base Year Energy Costs $3,691,638 ($0.221 per kwh)

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After Phase I and Phase II Energy Costs $3,320,838 ($0.240 per kwh)

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CUSDWatch Comment 

Proposition 39 projects were funded and installed in three phases.

Phase I scope included the replacement of all exterior lighting fixtures and select interior locations such as gymnasiums and library spaces, with more energy efficient light emitting diodes (LED) lighting. The lighting project aimed to reduce utility costs through efficiency and maintenance costs, given the long life of LED fixtures and lamps, reducing time spent replacing burnt/failing lights and fixtures. Additionally the upgraded lighting provided improved safety and curb appeal. Phase I lighting was installed at all six high school campuses.

Phase II scope included the installation of Building Automation Systems (BAS) at five of six comprehensive District high schools, Dana Hills High School excluded. These systems allow the District to view, adjust, schedule, and monitor heating, ventilation, and air conditioning (HVAC) systems at these sites. The project aimed to reduce utility costs by maintaining standard schedules, run times and set points. Additionally, the visibility of the systems enhance technician troubleshooting and repair capabilities.

Phase III scope also included the installation of BAS at eight K8/middle school sites. Given recent completion, savings data for these sites are pending.

CUSD Prop 39 Energy Projects
Phase I  LED Lighting at 5 High Schools Not 6 or District Office? $2,490,333
Phase II  Building Automation System at 5 High Schools/Energy Software $3,409,320
Phase III  Building Automation System at 9 Middle Schools/Elementary Schools $4,321,505
Total  $10,221,158

 

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CUSDWatch Comment 

Total Savings per year
Aliso Niguel High School  $119,639 
Capistrno Valley High School  ($25,216)
Dana Hills High School   $18,437
San Clemente High School   $31,140
San Juan Hills High School   $135,817
Tesoro High School   $90,984
Total $370,801
Savings over 25 years $9,270,025
District Office No Data ?

 

 Aliso Niguel High School Saved $119,639 per year 
Date  Area Electricity    Natural Gas Total Ave $/kWh
     kWh  KW $ Therms $
July 2014 to June 2015 222,080 $508,713 2,724,331 874 $27,085 40,913 $535,798 $0.187
Jan 2018 to Dec 2019 222,080 $387,930 2,127,822 838 $28,229 40,951 $416,159 $0.182
Savings $120,783 Increase 1,144 Savings $119,639

 

Capistrano Valley High School Cost: NO SAVINGS $25,216 increase per year
Date  Area Electricity    Natural Gas Total Ave $/kWh
     kWh  KW $ Therms $
July 2014 to June 2015 200,448 $650,009 2,902,023 815 $43,154 54,188 $693,163 $0.224
Jan 2018 to Dec 2019 200,448 $660,013 2,754,968 539 $58,366 95,969 $718,379 $0.182
Increase Cost $10,004 Increase Cost $15,212

Increase Cost $25,216

  

Dana Hills High School Cost:  $18,437 savings per year
Date  Area Electricity    Natural Gas Total Ave $/kWh
     kWh  KW $ Therms $
July 2014 to June 2015 202,951 $461,010 1,904,170 627 $39,817 66,145 $500,827 $0.224
Jan 2018 to Dec 2019 202,951 $450,637 1,822,838 375 $31,754 46,984 $482,390 $0.182
Savings $10,373  Savings $8,063 

Savings $18,437 

 

San Clemente High School Cost:  $31,140 savings per year
Date  Area Electricity    Natural Gas Total Ave $/kWh
     kWh  KW $ Therms $
July 2014 to June 2015 229,090 $536,755 2,102,450 775 $33,915 66,145 $570,670 $0.224
Jan 2018 to Dec 2019 229,090 $500,046 1,998,876 474 $39,484 46,984 $539,530 $0.182
$36,709 Savings  $5,569 Savings 

$31,140 Savings 

 

San Juan Hills High School Cost:   $135,817 savings per year
Date  Area Electricity    Natural Gas Total Ave $/kWh
     kWh  KW $ Therms $
July 2014 to June 2015 213,669 $677,684 3,116,138 820 $42,848 71,190 $720,532 $0.224
Jan 2018 to Dec 2019 213,669 $543,670 1,928,156 489 $41,045 63,959 $584,715 $0.182
$134,014 Savings  $1,803 Savings 

$135,817 Savings 

 

Tesoro High School Cost:  $90,984 savings per year
Date  Area Electricity    Natural Gas Total Ave $/kWh
     kWh  KW $ Therms $
July 2014 to June 2015 212,211 $644,288 2,977,774 766 $26,360 40,195 $670,648 $0.224
Jan 2018 to Dec 2019 212,211 $552,181 2,279,263 453 $27,483 40,482 $579,664 $0.182
$92,107 Savings   Increase $1,123 

 $90,984 Savings 

 

DISTRICT OFFICES - NO DATA INCLUDED
Date  Area Electricity    Natural Gas Total Ave $/kWh
     kWh  KW $ Therms $
July 2014 to June 2015
Jan 2018 to Dec 2019
  

 

Charts October 16, 2019 Agenda Item #33 page 740 show that Total Savings (excluding District Offices) is $370,800 per year (not $100,000 - $200,00 per year as stated).

TIme Frame   Energy Costs
Energy Cost Before Prop 39 Projects July 2014 to June 2015  $3,691,638
Energy Cost After Prop 39 Projects Jan 2018 to Dec 2019   $3,320,838
Total Savings  ($370,800)
Savings Over 25 years $9,270,000

There is no data on the DIstrict Offices?

Why is CUSD mis-stating the savings? They are claiming it is $3 million over 25 years ($100,000 - $200,000 per year) and this does not include any savings on the District Offices.

 

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