March 18, 2019
City, State, Zip Code
The Southside Regional Jail Authority, Virginia (the “Authority”) is soliciting proposals from banking institutions to provide financing to fund a Guaranteed Energy Savings Project at the Regional Jail. The amount to be borrowed will not exceed $1,000,000. The borrowing will be issued on either a bank qualified tax-exempt, non-bank qualified tax-exempt or taxable basis, and the Authority would like proposals to address all the above if possible. The attached Request for Proposal provides information regarding the Authority, the proposed financing terms and the project, as well as the delivery instructions.
Proposals will be received by the Authority until 2:00 p.m., local time on March 27, 2019.
We look forward to receiving your response.
Southside Regional Jail Authority
Request for Proposals for financing Guaranteed Energy Savings Project
Introduction: The Southside Regional Jail Authority, Virginia (the “Authority”), is seeking proposals from banks or financial institutions to finance a guaranteed energy savings project for which the Authority seeks to borrow an amount not to exceed $1.0 million. The Authority has entered into an energy services agreement (“ESA”) with its energy services contractor, Honeywell Building Solutions, whereby Honeywell will develop, implement and maintain certain Energy Conservation Measures (“ECMs”). The Authority and Honeywell have entered into an agreement that will guarantee the Authority a minimum level of savings for the term of the agreement.
Borrower: Southside Regional Jail Authority
Background: The Authority is comprised of the City of Emporia and Greensville County. The Regional Jail is located in Emporia and was placed in service in 1998. It provides incarceration services for both pre-trail and sentenced inmates and maintains an approximate daily population of 144 inmates. Currently, the Authority only has one long-term debt obligation with a loan balance of $2,263,600 (as of June 30, 2018) issued pursuant to its Master Indenture of Trust dated as of November 1, 1997, as previously amended and supplemented.
Use of Proceeds: The Authority intends to utilize the proceeds of this transaction to finance ECMs that are expected to achieve energy savings through a variety of equipment and practices and improvements, including lighting upgrades, water upgrades, refrigeration controls upgrades, and building automation and control upgrades.
Transaction Size: The Authority desires to borrow approximately $917,481, which is the cost of the Project, but no more than $1.0 million.
Tax Status: The Authority is requesting financing proposals for both tax exempt and taxable funding options. The borrowing will be issued on either a bank qualified tax-exempt, non-bank qualified tax-exempt or taxable basis, and the Authority would like proposals to address all the above if possible.
Security: Parity revenue pledge of the Authority under its Master Indenture of Trust dated as of November 1, 1997, as previously amended and supplemented.
Plan of Finance: The Authority expects to fund the project entirely at closing. The financing will be structured with a fixed rate of interest with annual payments of principal and interest in arrears with the loan maturing in fifteen years with no pre-payment penalty if possible.
Index Rate: The proposals should include rates for a 30- and 60-day rate lock period if available.
Construction Period: 6 months with first payment due at the end of the construction period.
Credit Enhancement: None
Interest Rate: The Authority desires a fixed rate alternative to be finalized at the time of the award.
Title: Title of equipment shall remain with the Authority throughout the term of the Agreement.
Offering Statement: The Authority will not prepare an offering statement or provide continuing disclosure of any kind in conjunction with the borrowing.
Costs: The proposal should identify specifically all costs associated with the transaction, if any, that would be an obligation of SRJA as either a direct payment or as additional project costs for purpose of determining the funded financing amount and/or ongoing payment obligation. These costs must be all-inclusive and may include commitment fees, capitalized interest, legal counsel fees, trustee fees, escrow fees, tax opinion fees and any other costs associated with the financing of the contract.
Closing: The Authority expects that closing and the transfer of funds will be made on or before May 1, 2019.
Of Proposals: Following the receipt of proposals selection shall be made of two or of more offerors deemed to be fully qualified and best suited among those submitting proposals, on the basis of the factors listed below. Negotiations shall then be conducted with each offeror so selected. After negotiations have been conducted with each offeror so selected, the Authority shall select the offeror which, in its opinion, has made the best proposal, and shall award the contract to that offeror. The factors for determining who makes the best proposal are (1) interest rate and other costs; (2) structure of the loan; and (3) the financial capability of the offeror.
Information: Proposers are encouraged to ask questions which may be directed to the Authority’s Superintendent Mark Shiflett at (434) 634-0670 or email@example.com
Proposal Submission: In order to be considered for selection, the proposal, including the information requested in the attached Submittal Information must be submitted in a sealed envelope by no later than 2:00 on Wednesday, March 27 to the following address:
Southside Regional Jail Authority
Attn: Linda Clements
244 Uriah Branch Way
Emporia, VA 23857
SOUTHSIDE REGIONAL JAIL AUTHORITY
Please provide responses to the following questions.
Bank qualified Tax exempt _________%
Non-Bank Qualified Tax Exempt _________%
4. Provide any proposed fees your firm may have as part of your commitment.
5. Please provide the Authority with any proposed financing alternatives which you believe could lower the Authority’s overall cost of funds.
Overview of Project
ESCO: Honeywell Building Solutions
Contractual Arrangement: Energy performance contract by and between ESCO and SRJA
Total Installed Costs: $917,481
NOTE: Price subject to adjustment based on final analysis by ESCO and scope selection by SRJA.
Financed Amount: Approximately $917,481
Anticipated Funding Date: On or before May 1, 2019
Term: 15-year term with first annual payment due on approx. November 1, 2019.
Payments: 15 annual non-level payments. See Attachment A for Savings available for debt service in each project year.
Project ECMs: Lighting: Replace / Upgrade indoor and outdoor lighting fixtures w/ new LED lights. Occupancy sensors will be installed in office areas.
Water Upgrades: Water fixtures will be retrofitted with lower water flow devices to reduce usage. Electronic water controls will be installed on cell areas toilets and showers reducing amount of times devices are used.
Building Envelope: All doors and garage doors will have door seal kits installed. Spray foam insulation will be installed at roof / wall intersection. Foam board will be installed in areas and all pipe wall penetrations will be sealed.
Kitchen Hood Controls: 3 Variable Speed Drives (VFDs) will be installed on existing kitchen hood fans – fans will be controlled based on required amount ventilation determined by heat and # of particulates in air stream.
Ozone Controller: Ozone system is added to washing machines allowing for use of less water, cooler water, and less detergent.
Refrigeration Controls: Operates the compressors for the refrigerators and freezers that reduces energy spend and extends life of equipment.
Building Automation and Controls Upgrades: Current Building Automation system will be replaced with latest technology allowing for better control and responsiveness to comfort issues within building.
Dishwasher Replacement: Replace current dishwasher with more efficient machine reducing hot water usage
Replace Domestic Hot Water Heaters: Replace both domestic hot water heaters with new efficient instantaneous hot water heaters with smaller storage tanks.
ECM as Percentage of Project Cost:
BAS Upgrades 23%
Building Envelope 2%
Water Upgrades 21%
Ozone System 4%
Hot water Heaters 9%
Kitchen Hoods 5%
Freezer Controls 1%
Savings Available for Debt Service
Loan payments are non-level and may not exceed the below amounts in any given project year. First annual loan payments will begin 6 months after project commencement.
Year 1 : $66,521
Year 2: $68,555
Year 3: $70,651
Year 4: $72,810
Year 5: $75,033
Year 6: $77,323
Year 7: $79,682
Year 8: $82,111
Year 9: $84,613
Year 10: $87,191
Year 11: $84,724
Year 12: $87,305
Year 13: $89,963
Year 14: $92,701
Year 15: $95,521
Request For Proposals
Request for Proposals to finance Guaranteed Energy Savings Project*
*This Proposal has been awarded to Signature Bank.
Invitation To Bid
None at this time
Notice of Intent
None at this time
None at this time
Southside Regional Jail