Ongoing capital financing with a qualified financial firm with relevant experience with prenegotiated terms and conditions and a fixed basis point markup above a publicly available index. Such financing should include the option for tax-exempt or taxable financing. Financing schedules shall be based on terms of 2 years up to 10 years for capital equipment and up to and including 20 years for ESCOs, not to exceed the useful life of the property. Payments will be made on the 15th day following each calendar quarter or as otherwise mutually agreed. Campuses may require flexibility on the first payment date. Financing shall be obtained as needed. The University will file form 8038-G or form 8038-GC as applicable and provide a copy to the financing partner. The University prefers to have payments pulled from the University’s bank account by financial partner. The University will not commit to a minimum contract amount to be financed annually in any agreement resulting from this RFP. Since 2017, the University campuses have financed over $18M in purchases, which includes $11M in ESCO contracts. This also includes the Covid-19 time period from 2020-2022, where very few purchases were made. This University may increase this obligation with mutual agreement of the financier and University. Upon the finance closing, the University shall have title/own the asset. The University shall claim depreciation and deduct the interest expense each year on the asset(s) acquired through the agreement. Types of Assets Acquired by financing agreements: (not exclusive) ● Laboratory Equipment ● Computer Equipment ● Office Equipment ● Maintenance Equipment ● Motor Vehicles ● Heavy Construction / Maintenance Equipment (e.g, dump trucks, front end loader, excavator) ● Grounds Equipment (e.g., compact utility tractors, lawn mowers, etc.) ● Specialized Equipment made for the University ● Energy improments (e.g., lighting, HVAC, insulation, wiring, windows, roofs)
