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BLUE CARD: Dawn Urbanek (I was not able to attend... but if I did, here is what I would have said.)
Full Details can be read at: CUSDWatch: CUSD Approves Solar Panel Project at a cost of $26 million dollars - Good Deal or Unscrupulous Waisting of Taxpayer Funds? Students Learn a Lesson from CUSD's Solar Project.
Timeline:
May 10, 2017
January 24, 2018 CUSD BOT Meeting Agenda Item 38 FINANCING RESULTS OF CLEAN RENEWABLE ENERGY BONDS FOR SOLAR ENERGY PROJECTS Staff is representing that On May 10, 2017, the Board of Trustees authorized ARC Alternatives, an independent energy advisor, to conduct a solar feasibility study. The feasibility study provides a framework for then issuing a Request for Proposals (RFP) to solar vendors.
ARC Alternatives was not on the May 10, 2017 Board meeting as a Discussion/Action Item.
May 10, 2017 CUSD BOT Meeting Agenda Item #5 at page 67 of 598 PSA 1617287 Prop 39 ARC Alternatives Contract for $43,840.00 was passed as part of the Consent Calendar without Discussion. The Contract is at page 79.
May 10, 2017 CUSD BOT Meeting Agenda Item #5 at page 67 of 598 PSA 1617284 Prop 39 Government Financial Strategies to provide an analysis review and evaluation of a Districtwide solar projects for District Contract for $9,000.00 was passed as part of the Consent Calendar without Discussion. The Contract is at page 79.
June 2017
CUSD Staff, without Board Approval, submitted the application for the CREB Bonds.
July 26, 2017
July 26, 2017 CUSD BOT Meeting Agenda Item #26 Results of Solar Feasibility Study page 611
This was an Information/Discussion Item only. The Board took no action.
Arc Alternatives presented the findings of the Solar Feasibility Study so that the District could determine if it should move forward to implement the Solar Project, and if the District should submit an application for CREB Bonds to finance the solar project.
Note: CUSD Staff had already submitted the application for the CREB Bonds prior to receiving Board approval (CREB Application was submitted in June 2017)
At this meeting Staff represented to Trustees that there would be NO COST associated with applying for the CREB Bonds.
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.
Staff Unilaterally and without Board approval applied for CREB Bonds in June 2017 and received an allocation of CREBs in August 2017.
September 25, 2017
Staff released and RFP for proposals for solar and battery storage at seven sites.
When was this approved by Trustees?
October 11, 2017
October 11, 2017 CUSD BOT Meeting Agenda Item #25 Financing Solar Energy Projects page 783
Presentation by Government Financial Strategies on using CREBS to finance Solar Energy
"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
CUSD had to put up Capo Valley High School and Las Flores Middle School as Collateral in a Lease - Lease back arrangement for the management of the system.
November 8, 2017
November 8, 2017 CUSD BOT Meeting Agenda PUBLIC HEARING at page 13 FINANCING SOLAR ENERGY PROJECTS
November 8, 2017 CUSD BOT Meeting Agenda Item #35 at page 767 Up-date on Solar Energy Project.
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.
This was an Information/Discussion Item Only - No Action Was Taken
November 8, 2017 CUSD BOT Meeting Agenda Item #36 at page 788 RESOLUTION NO. 1718-24, RESOLUTION OF THE BOARD OF TRUSTEES OF THE CAPISTRANO UNIFIED SCHOOL DISTRICT AUTHORIZING THE EXECUTION AND DELIVERY OF THE 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 AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $26,000,000, AUTHORIZING THE DISTRIBUTION OF AN OFFICIAL STATEMENT IN CONNECTION THEREWITH, AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS, AGREEMENTS, AND RELATED ACTIONS
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.
December 6, 2017
December 6, 2017 CUSD BOT Meeting Agenda PUBLIC HEARING ENERGY SERVICE CONTRACT FOR SOLAR ENERGY PROJECTS
Board Audio at 1:52:01
Open Public Hearing at 9:08 pm
No BLUE CARDS
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.
Board Audio at 1:53:02
Trustee McNicholas reads a very long statement containing four items.
Close the Public Hearing at 9:11 pm
Why did Clark Hampton ask Trustee McNicholas to read a 4- Item Statement into the record without providing that documentation to the Public?
A PUBLIC RECORDS REQUEST was made for this Statement on December 15, 2017 but has never been responded to.
December 6, 2017 CUSD BOT Meeting Agenda Item #33 UPDATE ON SOLAR ENERGY PROJECTS AND REQUEST FOR PROPOSALS RESULTS
The Up-date presented a total cost of $20,622,124.00 at page 529 of 657 with an average annual savings of $849,275 per year.
December 6, 2017 CUSD BOT Meeting Agenda Item #34 RESOLUTION NO. 1718-28, RESOLUTION TO ENTER INTO ENERGY SERVICE CONTRACT
Trustees approved Resolution 1718-28 which awarded the Energy Service Contract to REC Solar for the design , Installation and commission of Solar energy projects.
The total cost approved in the resolution is $18,372,631.00
Capital Cost $17,563,660.00
O&M $713,788.00
Performance Guarantee $95,184.00
Total Cost = $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?
January 24, 2018
January 24, 2018 CUSD BOT Meeting Agenda Item #38 FINANCING RESULTS OF CLEAN RENEWABLE ENERGY BONDS FOR SOLAR ENERGY PROJECTS
This is an Information/Discussion Item - No Board Action is necessary.
Tonight Trustees are being told that because of 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%
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?
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