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District advances energy performance plan for LED, water and efficiency upgrades; staff seeks board approval and financing
Summary
District staff proposed an energy performance contract to install LED lighting and water‑efficiency upgrades at about 20 sites, to be financed by a lease tied to expected energy savings and with three years of measurement and verification.
Director of Operations Kristin Batibi and staff presented an energy performance contract proposal intended to modernize lighting and water systems and to finance the work through an energy‑savings model.
Batibi said the program originated from district strategic goals to improve learning environments and energy efficiency. The currently proposed scope focuses on LED lighting upgrades at 20 sites (an initial eight sites plus an additional 12 smaller scopes) and water‑conservation projects; earlier solar plans were removed because of uncertainty in federal tax incentives.
The financing model relies on an energy performance contract (EPC) with a lender and includes measurement and verification (M&V) for three years to ensure projected savings are realized. Staff said Bank of America had offered a fixed interest rate held through April 30; the interest rate quoted in the discussion was not to exceed 4.596 percent, with anticipated financing term of about 16–20 years and cash flow over 19–20 years. Total project cost staff cited was approximately $5.5 million; staff also anticipated modest utility rebates.
Board members asked several questions about lease structure and risk. Chief Financial Officer Bob explained the financing is structured as a lease‑to‑own instrument rather than a bond or general obligation loan; because of TABOR constraints the district uses lease financing subject to annual appropriation. Bob said protections are written into the contract so equipment would not be removed if the district chose not to appropriate funds in a future year; once the lease is paid the equipment becomes district property.
Kristin Batibi said the implementation and construction timeline targets summer 2025 if the board approves and financing closes by the lender’s rate hold (staff cited an April 30 rate lock). Staff requested the board consider contract approval and closing actions in April to begin summer installation.
No formal board vote was taken at the meeting; staff said they would present final contract documents and financing terms for board approval at the April action meeting and emphasized the program’s expectation that energy savings will offset debt service over the financing term.
