By Kate Hill
Staff Writer
Last December, Cazenovia Central School District residents approved a $15 million capital project — the first phase of the district’s “Cazenovia 2030 And Beyond” long-range facilities plan.
On April 25, the school board discussed the district’s plan to pursue an Energy Performance Contract (EPC) to finance an energy project to be implemented in coordination with the 2020 Capital Project.
An EPC is a valuable tool that enables facilities to make energy-saving retrofits and improvements without tapping into capital budget funds.
“In our capital project, we specifically excluded all of the work that would qualify for an EPC . . .in order to stretch our dollars so we can afford to do more [in the district],” said Director of Facilities Matt Erwin. “It’s a tool we can use that is not going to impact our tax payers.”
Under an EPC, an organization partners with an energy service company (ESCO)/contractor to scope, develop and implement an energy efficiency improvement program. The savings generated from the improvements are used to repay the cost of the project over the length of the contract. An ESCO typically provides a savings guarantee, reducing the project risk. After the contract ends, additional energy savings go back to the customer.
During the board meeting, Erwin reported the completion of an initial facility assessment to identify the EPC project potential (i.e., available and cost-effective upgrades).
Following a preliminary analysis of potential savings, Erwin contacted Steve Heaslip, senior energy services manager of Day Automation to confirm the findings and put together a preliminary project proposal.
Heaslip presented Day Automation’s proposal during the April 25 board meeting.
The company’s proposed $1.6 million project includes lighting, building envelope, building management system and mechanical/electrical system improvements.
According to Heaslip, the district currently spends an estimated $290,000 per year in utilities (electric and fuel). Combined, the proposed energy conservation measures could potentially generate $97,000 in guaranteed savings.
Heaslip assured the board that the project would be paid for from existing budgeted operating funds; thus, there would be no net cost to the district.
The project would likely be funded over 15 years through a capital lease. According to the company’s initial calculations, the annual cost would be $133,000.
According to Heaslip, the project would be eligible for utility incentives, a matching grant program to fund the energy audit, and NYS Building Aid (about 57%).
He explained that although a referendum would not be required, voter approval would enable the district to receive an additional 10 percent in building aid.
Taking into account the additional building aid and expected utility incentives (about $100,000), Day Automation projects year two net savings of $40,000.
“Those savings go right back into the operating budget for the district,” added Erwin.
Long-term, the company estimates $1.4 million in savings returned to the district over the 18-year life of the project.
In the next few weeks, the district will begin work with James Bouffard, Senior Architectural Designer at Tetra Tech, to develop a request for proposal (RFP) outlining the project information and requirements. Once interested contractors have submitted their bids, the board will select an energy services partner. The district will contract with the chosen ESCO to conduct a more detailed energy audit and to develop a final project scope and design. From there, the board will set a date for a public vote.
According to Bouffard, Tetra Tech will assist with the project design to ensure the coordination and integration of the work with the 2020 Capital Project.
Monthly school board meetings begin at 6:30 p.m. in the Board Meeting Room in the District Office in the Middle School. For more information, visit cazenoviacsd.com or call Superintendent Reilly at 315-655-1317.
