Energy Services Company (ESCO) Project

Background:

On June 11, 2019, the Council office received an Administrative Transmittal requesting consideration for a new bond issue to refund the Series 2007 bonds and provide funding upgrades for Lindquist Field and implementation of energy savings measures at various city-owned facilities.

Parameters Resolution:

On July 16, the City Council adopted a Resolution authorizing the refunding of the 2007 Series Municipal Building Authority Stadium Bonds and the issuance of new bonds to finance energy conservation measures at city-owned facilities and lighting improvements at Lindquist Field. The parameters of the resolution were as follows:

• Issue amount will be not more than $7,500,000;
• Interest rate Not to exceed 5.5% on a tax-exempt basis and not to exceed 18% on a taxable basis;
• Shall not be sold at less than 97% of the total principal amount;
• The term of the Bonds will not be more than 15 years;
• Pledged debt service on the bonds will come from Franchise Tax; and
• Designated Officers are authorized to make final decisions regarding final principal amounts, terms, discounts, etc.

Refunding the Series 2007 Bonds will generate approximately $200,000 in interest savings for the City. Interest rate savings will be available by changing the bond collateral from lease revenues to franchise tax revenues.

A committee of “Designated Officers” was established to complete the bonding process. This committee must be comprised of four of the following members:

• Mayor (or designee)
• Management Services Director
• City Treasurer
• Council Chair (or designee)
• Council Vice Chair (or designee)
• Council Executive Director (or designee)

With at least two officers being from the Council office.

Energy Conservation Measures:

An issuance of approximately $4.575 million in new bonds will help energy conservation measures for the City.  Ogden will be entering into an Energy Savings Performance Contract (ESPC) with McKinstry, an Energy Savings Contractor that focuses on designing, constructing, and maintaining high performance buildings. The following city-owned facilities will receive energy conservation upgrades:

• Municipal Building;
• Public Safety Building;
• Public Works Buildings 1 & 8;
• Fire Stations #2 and #5;
• Justice Court;
• Junction Parking Facility;
• City-owned Street Lighting; and
• Interior and Exterior lightings at most City buildings.

Lindquist Field Repairs:

Lindquist Field is home to the Ogden Raptors, a minor league baseball team in the Pioneer League and one of six farm teams of the Los Angeles Dodgers. The facility must be maintained to standards established by the Dodgers. Bonds of approximately $805,000 were issued for improvements to Lindquist Field. The facility is in need of lighting improvements, structural repairs, clubhouse and locker room upgrades, press box upgrades, and netting and fence guards.