|
|
|
|
|
Meeting Date:
|
5/23/2017 - 5:30 PM
|
|
Category:
|
ITEMS OF BUSINESS
|
|
Type:
|
Action
|
|
Subject:
|
5. Action on a Request to Amend the Resolution to Exceed the Revenue Limit for Energy-Efficiency Projects (Phase I) in the 2017-18 through 2036-37 School Years
|
|
Strategic Plan Compatibility Statement:
|
Goal 3 Effective and Efficient Operations
|
|
Attachments
|
1. MPS Resolution for Revenue-Limit Exemption-Phase I-Amended
2. MPS Resolution for Revenue-Limit Exemptions-Phase I-Original
|
|
File Attachment:
|
|
|
Background:
|
In 2009, Wisconsin Act 28 originally created the Energy Efficiency Exemption (EEE) for projects completed within the fiscal year. In 2011, this law was modified, to include the following specifications: 1) the project must result in the avoidance of, or reduction in, energy costs or operational costs; 2) the project must be governed by a performance contract entered into under Wis. Statute §66.0133; and 3) the levy may be used to repay the bonds or notes issued to finance the project, if any are issued for periods not exceeding 20 years.
In March 2016, the Board approved Johnson Controls, Performance Services, and Trane as pre-qualified energy-service contractors for the design, engineering, project management, and implementation for the replacement of large capital costs items in accordance with Wis. Statute §66.0133; Energy Savings Performance contracting, as referenced in the Revenue-Limit Exemption for Energy Efficiency, Wis. Statute §121.91(4)(o).
In June 2016, the Board approved a contract with CESA #10 to provide owner’s representative services for performance-contracting energy-savings and infrastructure-improvements projects.
In September 2016, the Board approved entering into a three-year performance contract under Wis. Statute §66.0133 with Johnson Controls, Inc., and a two-year performance contract under Wis. Statute §66.0133 with Performance Services, Inc., for $27 million of energy-efficiency projects at Vincent High School, Wisconsin Conservatory of Lifelong Learning, and River Trail.
In December 2016, $27.3 million in RACM Lease Revenue Bond proceeds was received to fund the $26.9 million of energy-efficiency projects and $0.4 million of related cost of issuance, with the execution of the Amended and Restated Cooperation Agreement, an Amended and Restated Ground Lease, an Amended and Restated Lease, Bond Purchase Agreement, bond-offering documentation, and all necessary certificates and resolutions. The bonds issued include $6.3 million issued as Qualified Energy Conservation Bonds (QECB) through an allocation provided by the City for MPS’s use. The bonds have a total term of 20 years, with all bonds to be repaid by November 15, 2036.
On January 26, 2017, the Board passed the resolution to exceed the Revenue Limit for Energy-Efficiency Projects (Phase I) in the 2017-18 through 2036-37 school years.
|
|
Fiscal Impact Statement:
|
Adoption of the Amended Resolution to Exceed the Revenue Limit for Energy-Efficiency Projects (Phase I) provides funding for the corresponding debt-service payments in compliance with Wis. Statute §121.91(4)(o)(1m).
|
|
Implementation and Assessment Plan
:
|
Wis. Statute §121.91(4)(o)(1) allows a school board to adopt a resolution to exceed the revenue limit in any school year by the amount spent by the school district in that school year on a project to implement energy-efficiency measures or to purchase energy-efficiency products, including the payment of debt service on a bond issued to finance the project, if the project results in the avoidance of, or reduction in, energy costs or operational costs, the project is governed by a performance contract entered into under Wis. Statute §66.0133, and the bond obtained to finance the project is issued for a term not exceeding 20 years. If so adopted, the resolution is valid for each year in which the school board pays debt service on the bonds.
Wis. Statute §121.91(4)(o)(3) requires that, when a school district issues bonds to finance such projects as described above and utility costs are measurably reduced as a result of the project, the school board shall use the savings to retire the bonds.
As a matter of best practice, the Board should adopt the Resolution for Revenue-Limit Exemptions for Energy Efficiencies when entering into performance contracts, as referenced in Wis. Statute §66.0133, and when future utilization of the Revenue-Limit Exemption for Energy Efficiencies under Wis. Statute §121.91(4)(o) is expected. Board-approved resolutions must be passed by October 1 of the school year in which a revenue-limit exemption is sought.
Upon further review and clarification from the Department of Public Instruction (DPI), in order to be compliant with Wis. Statute §121.91(4)(o)(1m), which requires levying for the calendar year payments, an amendment to the resolution passed on January 26, 2017, is required.
|
|
Recommendation:
|
The Administration recommends the Board pass the Amended Resolution for Revenue-Limit Exemption for Energy Efficiencies associated with the three-year performance contract entered into under Wis. Statute §66.0133 with Johnson Controls, Inc., and the two-year performance contract under Wis. Statute §66.0133 with Performance Services, Inc. (Phase I), funded with the issuance of RACM Lease Revenue Bonds, with a total term of 20 years, to fund $26.9 million of energy-efficiency projects at Vincent High School, Wisconsin Conservatory of Lifelong Learning, and River Trail, and $0.4 million of debt issuance costs.
|
|
Approvals:
|
|
Recommended By:
|
|
Signed By:
|
|
|
LaWanda Baldwin - Comptroller
|
|
|
Signed By:
|
|
|
Shannon Gordon - Senior Director
|
|
|
Signed By:
|
|
|
Dr. Darienne Driver - Superintendent
|
|
|
|
|
|
|
|
|