Municipal Buildings Retrofit

Summary

The Municipal Buildings Retrofit initiative provides funding for energy efficiency projects including lighting, windows, and HVAC units.  These will reduce the City of Chicago’s consumption of electricity and natural gas.

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Program

Energy

Stage

Build

Municipal Buildings Retrofit Details

The Municipal Buildings Retrofit initiative upgrades City-owned and operated buildings without using taxpayer dollars or City bond capacity, leaving the City’s credit rating unaffected. Through an innovative, tax-exempt Energy Services Agreement (ESA) structure, 60 City buildings – including libraries, police stations, and health care facilities – across 36 Wards are undergoing 114 energy upgrades at no up-front cost, agreeing to share the realized electricity and natural gas savings. Unlike typical capital upgrades done using bonds, this initiative creates no economic risk for the City; if the City does not see any energy savings from the upgrades, it pays nothing.

The project will create 108 jobs and reduce annual energy usage in these buildings by 18%, helping to achieve Mayor Emmanuel’s 2015 Sustainability Goal to improve overall energy efficiency in municipal buildings by 10%. In addition to providing modern control systems, these important capital upgrades will also greatly enhance the lighting, comfort, indoor air quality, and safety of the buildings.

 

HWL8thFloorPriorToCapacitorTestInstall_20140917

Harold Washington Library – Before

Harold Washington Library - After

Harold Washington Library – After

 

An Investment Grade Audit was managed by the Public Building Commission in 2012 in conjunction with three Energy Service Companies: Ameresco, Inc., Noresco, LLC, and Schneider Electric Buildings Americas, Inc.

The Chicago Infrastructure Trust joined the retrofit project in 2013 and issued an RFQ for next-phase project participation on January 30 of that year; it had received 13 responses by March 6, 2013. After structuring the transaction as a tax-exempt ESA and receiving approval from its Board on July 19, 2013, the Trust released an RFP for a Placement Agent on August 12, 2013 and received 13 responses by August 20, 2013. Piper Jaffray was selected as the Trust’s placement agent, after which $12.2M of tax-exempt, 15-year debt was placed with Bank of America at 4.95% and three Guaranteed Energy Performance Contracts (GEPCs) were entered into between the Trust and the three ESCOs. Investment Grade Audit and GEPC costs were rolled into the overall project cost, ensuring the entire project was completely self-financing. Financing for the Trust’s first project – an Energy Services Agreement (ESA) – officially closed on April 10, 2014.

 

 

Retrofit 1 ESA Transaction Diagram 2014 12 12[1]

Click on diagram for larger view.

 

The installations of Energy Conservation Measures (ECMs) began in 60 City libraries and other buildings in end-July 2014. Currently, 61 out of 114 projects are underway; a more specific progress report is available here.  The project remains on budget and on schedule for completion by April 2015.

Municipal Buildings Retrofit Documents

Search
Title Date Initiative Type Format
Memorandum of Understanding 12/22/2014 Municipal Buildings Retrofit Terms PDF
Proposed Change Order 09/20/2014 Municipal Buildings Retrofit Terms PDF
Executed Change Order 10/17/2014 Municipal Buildings Retrofit Terms PDF
Closing Documents: Part 6 4/11/2014 Municipal Buildings Retrofit Terms PDF
Closing Documents: Part 5 4/11/2014 Municipal Buildings Retrofit Terms PDF
Closing Documents: Part 4 4/11/2014 Municipal Buildings Retrofit Terms PDF
Closing Documents: Part 3 4/11/2014 Municipal Buildings Retrofit Terms PDF
Closing Documents: Part 2 4/11/2014 Municipal Buildings Retrofit Terms PDF
Closing Documents: Part 1 04/11/2014 Municipal Buildings Retrofit Terms PDF
Executed Change Order 12/01/2014 Municipal Buildings Retrofit Terms PDF
Executed Change Order 10/17/2014 Municipal Buildings Retrofit Terms PDF
Proposed Change Order 11/14/2014 Municipal Buildings Retrofit Terms PDF
Proposed Change Order 09/20/2014 Municipal Buildings Retrofit Terms PDF
Initiative Progress Report 11/15/2014 Municipal Buildings Retrofit Miscellaneous PDF
Program Summary 04/09/2014 Municipal Buildings Retrofit Miscellaneous PDF
City Ordinance 11/13/2013 Municipal Buildings Retrofit Miscellaneous PDF
Independent Financial Advisor Assessment 12/26/2013 Municipal Buildings Retrofit Miscellaneous PDF
Proposed Service Providers 11/12/2013 Municipal Buildings Retrofit Miscellaneous PDF
Referenced Term Sheet 11/12/2013 Municipal Buildings Retrofit Terms PDF
Summary of Terms 11/06/2013 Municipal Buildings Retrofit Terms PDF
Project Presentation 11/06/2013 Municipal Buildings Retrofit Presentation PDF
RFP – Addendum 2 09/12/2013 Municipal Buildings Retrofit RFP PDF
Project Presentation 07/19/2013 Municipal Buildings Retrofit Presentation PDF
RFQ Responses 04/30/2013 Municipal Buildings Retrofit Responses PDF
RFP – Addendum 1 8/19/2013 Municipal Buildings Retrofit RFP PDF
RFP 8/12/2013 Municipal Buildings Retrofit RFP PDF
RFQ 1/29/2013 Municipal Buildings Retrofit RFQ PDF

Municipal Buildings Retrofit Timeline

13.07.2011

Public Buildings Commission of Chicago issues RFQ/P to identify energy service companies (ESCOs) to provide energy-related capital improvement services for various types of public buildings.

09.03.2012

Board of Public Buildings Commission of Chicago approves the following ESCOs as preferred vendors: Ameresco, Inc., Noresco, LLC, and Schneider Electric Buildings Americas, Inc.

06.11.2013

Trust Board of Directors approves initiative.

10.04.2014

Initiative reaches financial close.

30.01.2013

Trust issues RFQ to determine interest and qualifications for the initiative's financial partners.

12.08.2013

Trust issues RFP for Placement Agent, attracting 13 respondents.

01.10.2013

Four financial teams shortlisted over course of RFP process, with Piper Jaffray eventually securing mandate.

11.12.2013

City Council approves Municipal Buildings Retrofit.

14.04.2014

ESCOs given Notice to Proceed by the City.

29.07.2014

Municipal Buildings Retrofit construction begins.

Municipal Buildings Retrofit News