Department: Management and Budget
Department Head/Elected Official: Daniel Ramos, Executive Director
Regular or Supplemental RCA: Regular RCA
Type of Request: Financial Authorization
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A
MWDBE Contracted Goal (if applicable): N/A
MWDBE Current Participation (if applicable): N/A
Justification for 0% MWDBE Participation Goal: N/A - Goal not applicable to request
Request Summary (Agenda Caption):
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Request for approval and signature on the amendments of the Cool Chillers HVAC Loan Program applications offered by the State Energy Conservation Office.
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Background and Discussion:
The State Energy Conservation Office (SECO) is offering the "Cool Chillers HVAC Loan Program", which enables public entities to replace 12-year-old or older chillers and associated equipment. The loan offers an interest rate of 0.25%, which is lower than the current Public Infrastructure Bond (PIB) interest rate of 4.5%.
The 3 chillers at 1111 Fannin buildings are at their end of life, with an average age of 50 years old. Harris County will be eligible to submit 2 loans. Loan 1 will be for purchasing and installing 2 chillers, totaling to $2,298,000 and loan 2 will be for purchasing and installing 1 chiller, at $1,149,000. The total of the 2 loans is $3,447,000 to replace the 3 chillers.
SECO reviewed and approved Harris County's applications on 11/14/2023 and received the signed contract on 1/4/2024. This RCA requests approval to accept proposed amendments to the "Cool Chillers HVAC Loan Program" loan between Harris County and The State Energy Conservation Office (SECO). SECO will fully execute the contract after this RCA request is approved and the amendments are signed by the County Judge.
Expected Impact:
Based on OMB's calculation, the net present value total payment will be $5.09M using the 2 loans, which is approximately a $2.6M saving compared to using PIB.
Alternative Options:
We can ch...
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