Special Board of Aldermen 10-06-2020 Page 3
Susan Lovering, City Clerk
You have 13 in attendance.
President Wilshire
Thank you, also with us this evening is Corporation Counsel, Steve Bolton and the Mayor. As is
customary, | will turn this Public Hearing over to the Chairman of the Budget Review Committee, Alderman
Dowd. Alderman Dowd?
Chairman Dowd
Yes tonight we are here to have a Public Hearing on R-20-076, Authoring an energy performing contract
and leasing finance agreement. Before we get started with Public Comment, who from the School
Department is going to give us some words on this arrangement?
Mayor Donchess
Mr. Chair, | thought | would introduce the subject and then let others take over the details.
Chairman Dowd
OK, sounds good to me, Mayor?
Mayor Donchess
| know the Board of Aldermen is very interested in reducing the City’s carbon footprint. We have carbon
reduction goals which we have articulated. This is a large and very important green project for the City.
The proposal basically is to replace the lighting at each of the two High Schools with LED, greatly reducing
the City’s energy use. Shaun is going to speak soon | am sure, but | want to thank Shaun Smith especially,
as well as Dan Donovan. There are the ones who really developed this proposal and brought it to the point
where we can present it to you. Also, Doria Brown is on | think somewhere, she was addressing another
group, a Statewide Energy Group, but she helped to support the project on the way through.
But in essence, the energy bills for the High Schools are at $1.2 million dollars. This project would reduce
the energy bill by a guaranteed minimum of $460,000.00. The energy reduction that we would achieve is
something like 1,600 tons of carbon emissions a year, the equivalent of taking 348 cars off the road. And |
checked just to see what the City’s Fleet is cars and SUV’s, car and SUV’s, it’s around 80 something with
back ups it is closer to 100 but really 80 some active vehicles, so it’s like we taking almost 4 times the City’s
automobile and SUV fleet off the road.
There is certainly a cost and we are entering, there will be no upfront costs for the City, we do have to
make lease payments. The cost of the project after net of rebates is about $6.7 million dollars. So we need
to make lease payments. The lease payment is $450,000.00 a year but we are guaranteed savings of
$460,000.00 so Doria is optimistic it will be greater than that, but minimum $10,000.00 savings every year.
And, of course, we will be greatly reducing the City’s carbon footprint by doing this. Again, Doria’s estimate
is optimistic but no guarantee. But if the savings were less than the $460 that would reduce our lease
payment. So we could not lose money on the deal.
There’s a financing company involved and that’s who the contract is with. The contractor to do the work |
think is EEIl but Shaun Smith who again | want to thank for helping us keep this project on track because
things get really delayed with COVID. He’s been working very hard on the alternative care side, remote
learning, | mean there’s a lot going on at the School Department. But we are able to bring, thank you to
Shaun and Dan’s and Doria’s efforts, the project to you tonight. So with that, | will turn it over to Shaun
Smith who | think would go forward next.
