Board approves bus lease and $5.2M LED energy project tied to roofing repairs

Liberty Public Schools on July 22 approved a package of lease-purchase agreements that funds 15 replacement buses and an energy-savings project that includes LED upgrades and roofing repairs. The board voted unanimously to approve a state municipal lease-purchase agreement with Clayton Holdings LLC to finance 15 buses, and a master equipment lease-purchase agreement with Bank of America Public Capital Corp. that will fund Schneider Electric’s guaranteed energy performance (ESCO) work. The board also approved an engagement letter with Piper Sandler to provide underwriting and financing services. School operations staff said the bus purchase is roughly $2.5 million over a five-year term to replace fleet vehicles. The ESCO project’s first phase covers about $5.2 million in LED lighting upgrades; the district’s projection for the total program anticipates roughly $4 million of energy savings over the life of the measures. District staff told the board that savings from the LED upgrades will be used in part to help pay for urgent roofing work at South Valley and Discovery, two projects estimated at about $2.5 million each that the district said it otherwise could not finance from the existing capital plan. The LED/ESCO financing carries an interest-rate lock reported at 4.1 percent, and the overall financing structure referenced a 15-year term for the ESCO/lease arrangement. Board members asked about term lengths and the match between the financing term and the expected life of roof systems. District staff said the 15-year term is influenced by the statutory escrow/measurement period that underpins guaranteed performance contracting and that the longer term minimizes short-term disruption to the district’s capital plan; staff said the district can accelerate payments if it so chooses. The board approved emergency/expedited procurement items related to the Schneider Electric guaranteed energy performance contract so installation could proceed on a summer schedule. Why it matters: The combined financing lets the district replace buses, invest in energy-saving facility upgrades that reduce operating costs, and address two high-priority roofs without a separate capital bond issuance. The decisions shift long-term capital obligations into lease payments tied to projected energy savings. What the board decided: The board approved three motions: (1) the Clayton Holdings LLC lease-purchase agreement for buses; (2) the Bank of America Public Capital Corp. master equipment lease-purchase agreement for the ESCO project; and (3) the Piper Sandler engagement letter for underwriting and financing services. All motions passed unanimously.