CITY OF GAINESVILLE
GAINESVILLE REGIONAL UTILITIES
REQUEST FOR PROPOSALS FOR ENERGY EFFICIENCY LOW INTEREST LOAN
December 27, 2006
The City of Gainesville, Florida, doing business as Gainesville Regional Utilities
(hereinafter referred to as “GRU” or “the Utility”) is implementing a variety of new energy
efficiency programs to help reduce customer energy usage. One of these programs is
the implementation of a low interest loan program that would allow customers to borrow
money at a low interest rate to make energy efficiency improvements in their homes.
GRU is seeking proposals from qualified lending institutions in response to this Request
for Proposals (“RFP”) to serve as the Financial Lender, Loan Consultant, and
Administrator for this loan program. The lending institution will work closely with GRU to
develop an application and loan approval process, evaluate borrower’s credit
worthiness, administer the technical aspects of designing financing arrangements, and
assist in representing the Utility’s interests in marketing the loans to residential electric
utility customers. Based on research, GRU estimates about $1 million (I think we should
put a number, but I am not sure what that number should be) in annual loans in FY 07.
For loans made under the program, GRU will subsidize the Financial Lender’s market
interest rate through a lump sum payment to the Financial Lender upon closing. The
Financial Lender’s market interest rate for program loans shall be reduced to 3%,
subject to change by GRU.
Five (5) copies of the Proposal should be sent to and received no later than p.m.,
local time, January , 2007, at the following address:
Gainesville Regional Utilities
P.O. Box 147117, Station A-130
Gainesville, FL 32614-7117
or hand delivered (by firm or express courier) to the address given below no later than
2:00 p.m., local time, January , 2007.
Gainesville Regional Utilities
301 S.E. 4th Avenue
Gainesville, FL 32601
Submittals should indicate on the envelope and cover sheet the following
“REQUEST FOR PROPOSALS FOR ENERGY EFFICIENCY LOW INTEREST
ANY PROPOSAL SUBMITTED AFTER THE DUE DATE AND TIME SPECIFIED WILL
NOT BE CONSIDERED.
City of Gainesville, Florida d/b/a Gainesville Regional Utilities
Request for Proposal for Energy Efficiency Low Interest Loans
The purpose of this Request for Proposal (RFP) is to retain local financial lending institutions to
develop a residential energy efficiency loan program. The financial lending institution will develop
the technical aspects of designing financing arrangements and instruments, and assist in
representing GRU’s interests in providing loans for its residential electric customer base to
implement energy efficiency improvements.
The following list provides the home improvements that are allowable under the loan program:
Central Air Conditioning Systems (15 SEER or Higher)
Weatherization (Caulking/Weather Stripping)
A/C Duct Leak repair or Duct Replacement
Energy Star Refrigerators
Energy Star front loading clothes washers
Windows and Glass Door Replacements (Multiple Glazed, Low E, E-Star or Better)
Door and Window Jam Repair/Replacement
Window Sash Kit Replacements
Exterior Door Replacements (Insulated Metal or Fiberglass)
Solar Water Heaters
Solar Electric (Photo Voltaic) PV Systems
High Efficiency Energy Star Electric Heat Pumps 15 SEER / 8.2 HSPF or better
Insulation (attic, wall, floor, duct, rim joist, knee wall)
Heating & Hot Water Piping Insulation
Water Heater Replacement (Electric/Natural Gas/Tankless Natural Gas)
Reflective Coatings (Roof, Windows, Doors)
Attic Radiant Barrier Reflective Material
2.0 OVERVIEW OF GAINESVILLE REGIONAL UTILITIES.
Under its home rule powers and pursuant to its Charter, the City owns and operates a combined
utilities system (the “System”), which provides the City and certain unincorporated areas of
Alachua County with electric, natural gas, water, wastewater, and telecommunications service.
Natural gas service is also provided to retail customers within the corporate limits of the City of
Alachua. All facilities of the System are owned by the City, and all facilities, except the City’s
undivided ownership interest in Crystal River 3, a nuclear powered electric generating unit, are
operated by the City. The System is governed by the City Commission.
The water and wastewater systems were established in 1891 to provide water and wastewater
service to the City. The water system has a nominal capacity of 54 Mgd and the wastewater
system has a treatment capacity of 22.4 Mgd average annual daily flow.
The electric system was established in 1912 to provide street lighting and electric service to the
downtown area. Continuous expansion of the electric system and its generating capacity has
resulted in the electric system having a maximum net summer generating capacity of 611 MW.
The natural gas system was acquired in 1990 to provide gas distribution throughout the City.
The telecommunications system, GRUCom, was established in 1995 to provide communication
services to the Gainesville area in a manner that would minimize duplication of facilities,
maximize interconnectivity, simplify access, and promote the evolution of new technologies and
business opportunities. GRUCom operates a state-of-the art fiber optic network and current
product lines include telecommunications transport services, Internet access services,
communication tower antenna space leasing services, and public safety radio services.
3.0 SCOPE OF SERVICES.
The Financial Lending Institution must provide a full scope of loan services. The services shall
include, but not be limited to the following:
1. Developing financing structure and options to enable GRU electric customers to
obtain low interest (defined below) loans and implement energy efficient home
improvements, based on the following criteria:
Loans between $1000 - $10,000
5 Year Loan Term
3% effective fixed rate to borrower, with GRU subsidizing difference between
Financial Lender’s market interest rate and 3% loan program rate through
lump sum payment
Provisions for qualifying high risk low income (defined by HUD guidelines as
80% of median household income) customers
2. Providing general consulting services to GRU residential electric customers relating
to the lending institution’s loan application services and approval process.
3. Notifying GRU Customer and GRU of Loan Approvals/Denials.
4. Providing Joint GRU/Lender approval notification to Customers.
5. Providing Administration and Billing related to GRU electric customer loan.
6. Providing recommendations for and assist in implementing a favorable marketing
program to generate significant demand from GRU electric customer base for
Energy Efficient Loan Program..
7. Consulting as needed with staff regarding various aspects of the loan program
including loan eligibility requirements and pre-approved contractors.
8. Providing verification of measures installed or work completed.
9. Providing flexible repayment options such as electronic bill pay or automatic draft.
10. Providing periodic analysis and reporting of loan program to GRU Marketing Staff as
appropriate for long-range planning purposes. Including but not limited to:
a) Number of applications received categorized by credit segment
b) Applications turned down
c) Number of applications received from Low Income customers
d) Total dollars lent broken down by credit segment and Income segment
11. Updating GRU Staff on changes in legislation and regulations affecting energy
efficiency loan financings.
4.0 PROPOSAL REQUIREMENTS.
Proposers shall include the following information with their Proposal:
1. A description of the loan terms and services the firm is capable of providing for GRU
residential electric utility customers. Include an explanation of how these terms and
services will best assist GRU’s customers. Including but not limited to:
a. Application process
b. Process by which verification of installation or completion of services will be
c. Repayment options
d. Description of security if applicable
2. Completion of loan worksheet (Attachment 1). Additionally, proposers must indicate
the underwriting guidelines they propose to use in approving loan applications
through the program. GRU prefers a Financial Lender willing to provide financing with
a minimum score of 600. Proposers must indicate their willingness to provide
financing, and under what terms, for various credit scores as outlined in the attached
loan worksheet, as well as all other criteria used in underwriting program loans.
Proposer may indicate their proposed cost to GRU for the interest rate subsidy in
terms of points paid at closing. Underwriting guidelines may be modified over the
term of the program upon mutual agreement between GRU and the Financial Lender.
3. The names, qualifications, experience and office locations of each professional who
will be assisting the GRU Customer through the loan process. Provide a statement
as to local availability and the degree of accessibility to staff for each professional.
4. A statement of the lending institution’s understanding of the work to be done and how
resources will be provided to best serve the Utility and its customer.
5. Marketing Partnership – Note any marketing support that will be provided including
but not limited to development and production of collateral, Point of-Purchase in
lender facilities, website link/support, inserts in bank statements or newsletters,
events/community meetings, incentives or referrals (contractors, employees,
consumers). Include cost sharing ratio or total dollar amount willing to dedicate to the
marketing of this program.
6. Any other additional information of significance and importance such as other
community-based loan programs or promotions which would be of value in the
Proposed Timeline of Events
Issuance of RFP December, ? 2006
Deadline for Submission of Questions January, ? 2007
Proposal Due Date January, ? 2007
Award January, ? 2007
5.0 INTERPRETATIONS AND ADDENDA.
10.1 All questions about the meaning or intent of the RFP are to be directed to the Purchasing
Representative who has signed the RFP. Interpretations or clarifications considered
necessary in response to such questions will be issued by Addenda mailed or delivered
to all parties recorded as having received the RFP. Questions received less than seven
(7) days prior to the closing date may not be answered. Only questions answered by
formal written Addenda will be binding. Oral and other interpretations or clarifications will
be without legal effect.
10.2 Addenda may also be issued to modify the RFP as deemed advisable by the Purchasing
10.3 Addenda issued by the City prior to the opening date shall be binding as if written into the
RFP. Proposers are required to acknowledge receipt of the addenda by providing a copy
of the Addendum Form with the proposal.
6.0 PREPARATION OF PROPOSAL.
All proposals must be in the name of the Lending Institution.
The Proposal shall contain an acknowledgment of receipt of all Addenda.
Unless stated otherwise, Proposers must submit detailed and itemized financing
solutions related to their low interest energy efficiency loan proposal.
Only one proposal from any individual, firm, corporation, organization or agency under
the same or different name shall be considered. Should it appear to the City that any
Proposer has interest in more than one proposal, all proposals in which such Proposer
has interest shall be rejected.
Responses to this RFP upon receipt by the City, become public records subject to the
provisions of Chapter 119, Florida Statutes, Florida's Public Records Law. Should a
Proposer feel that any portion or all of its response is exempt from the Florida Public
Records Law, its response should clearly assert such exemption and the specific legal
authority for the asserted exemption.
Proposals will be available for inspection after such time as an award is recommended or
within ten (10) days after closing date, whichever is earlier.
The Proposer, by affixing the authorized signature to the Proposal, declares that the
proposal is made without any previous understanding, agreement, or connections with
any persons, firms, or corporations making a proposal on the same items and that it is in
all respects fair and in good faith without any outside control, collusion or fraud.
No City Commissioner, other City officer, or City employee may directly or indirectly own
more than five (5) percent of the total assets or capital stock of the bidding entity, nor directly
or indirectly benefit by more than five (5) percent from the profits or emoluments of this
contract. [For purposes of this paragraph, indirect ownership or benefit does not include
ownership or benefit by a spouse or minor child.]
7.0 SUBMISSION OF PROPOSALS.
Five (5) copies of the proposal shall either be delivered to Gainesville Regional Utilities, Purchasing
Division, 301 S.E. 4th Avenue, Gainesville, FL 32601, by 2:00 p.m., local time. January, 2007 or
mailed to Gainesville Regional Utilities, Purchasing Division, P.O. Box 147117, Station A130,
Gainesville, FL 32614-7117, but must be received by 2:00 p.m., local time, on January, 2007.
Facsimiles of proposals received prior to the due date and time are acceptable, but they must be
followed up with an original document within two business days of the RFP due date.
Proposals may be mailed to:
Gainesville Regional Utilities
P.O. Box 147117, Station A-130
Gainesville, Florida 32614-7117
or delivered to:
Gainesville Regional Utilities
Third Floor Administration Building
301 S.E. 4th Avenue
Gainesville, Florida 32601
Proposals must be clearly labeled:
“REQUEST FOR PROPOSALS FOR ENERGY EFFICIENCY LOANS”
8.0 MODIFICATION AND WITHDRAWAL OF PROPOSALS.
13.1 Proposals may be modified or withdrawn by an appropriate document duly executed (in
the manner that a proposal must be executed) and delivered to the place where
proposals are to be submitted at any time prior to the opening date.
13.2 After closing date, corrections in the proposals shall be permitted: 1) only to the extent
that the Proposer can show by clear and convincing evidence a mistake of a
nonjudgmental character was made; 2) the nature of the mistake is evident; and 3) the
proposal price intended is evident. After the closing date, no changes in proposal prices
or other provisions of the proposal prejudicial to the interest of the City or fair competition
shall be permitted. In lieu of proposal correction, an apparent low evaluated Proposer
alleging a material mistake of fact may be permitted to withdraw its proposal, at the
option of the City if: (a) the mistake is clearly evident on the face of the proposal but the
intended correct proposal is not similarly evident; or, (b) the Proposer submits evidence
which clearly and convincingly demonstrates that a good faith mistake (without
negligence of the Proposer) was made.
9.0 COSTS IN DEVELOPMENT OF PROPOSAL.
Costs for developing a response to this RFP are entirely the obligation of the Proposer and shall
not be charged in any manner to the City.
10.0 NON-SUBMITTAL OF PROPOSAL.
If a firm in receipt of this RFP does not wish to submit a proposal for this work, please advise
Utilities Purchasing at (352) 334-3400, Ext. 1240, of the firm’s decision and reason for not
submitting a proposal no later than the stated proposal submittal date. Failure to respond may
cause removal of the firm's name from future projects.
11.0 GENERAL TERMS OF AWARD.
16.1. The City reserves the right to reject any and all Proposals, to waive any and all
informalities or irregularities, and the right to disregard all nonconforming, nonresponsive,
unbalanced or conditional Proposals. Also, the City reserves the right to reject the
Proposal of any Proposer if the City believes that it would not be in its best interest to
make an award to that Proposer, whether because the Proposal is not responsive or the
Proposer is unqualified or of doubtful financial ability or fails to meet any other pertinent
standard or criteria established by the City. Discrepancies in the multiplication of units of
work and unit prices will be resolved in favor of the unit prices. Discrepancies between
the indicated sum of any column of figures and the correct sum thereof will be resolved in
favor of the correct sum.
16.3 If the contract is to be awarded, the City will give the successful proposer a Notice of
Award within TEN(10) days after the day of the proposal opening.
16.4 As a result of this RFP, the City intends to enter into a contract with the successful
Proposer. The proposal will not constitute a contract but, rather, will supply provisions
which will, if accepted, be incorporated by reference into the contract between the
parties. All material submitted with the proposal shall be considered a part of the
proposal and will be incorporated into the contract to the extent accepted by the City.
Responses to questions that occur during the proposal evaluation period may be
included as part of the contract. The contract awarded under this RFP will require
approval of the Gainesville City Commission.
16.5 Any contract negotiated as a result of this RFP shall be interpreted under and governed by
the laws of the State of Florida.
16.6 If GRU is unsuccessful in its negotiations with the selected firm, it will terminate such
negotiations and may initiate negotiations with the firm determined to have the next best
evaluated proposal. GRU reserves the right to accept any part or all of the proposer’s fee
schedule and to negotiate changes accordingly.
12.0 INTERPRETATIONS AND ADDENDA.
All questions about the meaning or intent of the RFP must be made in writing and directed to:
P.O. Box 147117, Station A-130
Gainesville, FL 32614-7117
Fax: (352) 334-2989
Interpretations or clarifications considered necessary in response to such questions will be issued
by Addenda and mailed or delivered to all parties recorded as having received the RFP. Only
questions answered by formal written addenda will be binding. Oral and other interpretations or
clarifications will be without legal effect.
Addenda may also be issued to modify the proposal documents as deemed necessary by GRU’s
Addenda issued by the City before the proposal opening shall be binding as if written into the
RFP. Proposers shall acknowledge receipt of the same with the proposal.
13.0 CONDITIONS ESTABLISHED BY THE CITY.
18.1 Late Submittals: Any responses submitted after the due date specified in the RFP will not
be considered and will be returned.
18.2 Rejection of Submittals: the City reserves the right to reject any and all submittals received in
response to the RFP as determined to be in the best interest of the City. Non-acceptance of
any proposal will not imply any criticism of the proposal or convey an indication that the
proposal was deficient. Non-acceptance of any proposal will mean that another proposal
was deemed more advantageous to the City.
18.3 All materials submitted in response to the RFP become the property of the City and will be
returned only at the option of the City.
18.4 The RFP solicitation process is in accordance with and subject to the City of Gainesville’s
Purchasing Policies and GRU’s Purchasing Procedures. Participants in this RFP solicitation
may protest the RFP specifications or award recommendation in accordance with Section 23
of the GRU Purchasing Procedures Manual.
14.0 USE OF RFP IDEAS.
Except as otherwise prohibited by law, the City has the right to use any and all ideas presented in
response to this RFP, whether amended or not. Selection or rejection of the proposal does not affect
15.0 PUBLIC ENTITY CRIME.
A person or affiliate who has been placed on the convicted vendor list following a conviction for a
public entity crime may not submit a bid on a contract to provide any goods or services to a public
entity, may not submit a bid on a contract with a public entity for the construction or repair of a public
building or public work, may not submit bids on leases of real property to a public entity, may not be
awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with
any public entity, and may not transact business with any public entity in excess of the threshold
amount provided in Section 287.017, for Category Two for a period of 36 months from the date of
being placed on the convicted vendor list.
Proposers shall be responsible for any violation of the current policies regarding
debarment/suspension/termination which have been issued by the Utilities Purchasing Department,
a copy of which is attached hereto and is incorporated herein by reference.
Customer Lender’s Points required Program
Credit Range unsubsidized for buy-down Interest Rate
> 720 3%
680 – 720 3%
640 – 679 3%
< 640 3%