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Tuesday, July 8, 2014

Energy saving projects set to be brought before town meeting on for July 14 in West Boylston

Energy saving projects set to be brought before town meeting on for July 14 in West Boylston

By Michael D. Kane BANNER EDITOR    michael.kane@telegram.com

WEST BOYLSTON — Selectmen have called for a special town meeting to be held Monday, July 14, with one article only. The article's request will be to borrow millions. But, if all works like it should, taxpayers will never see a penny added to their tax rate. In fact, they could reap some benefits. It's all thanks to a decades old law.

Town meeting voters will be asked to borrow between $2.6 and $2.9 million (the cost was not finalized when The Banner went to press). The money will be used for a series of repair and replacement projects to the infrastructure of town-owned buildings.

The "investment" will be paid for by the savings those new lights, controls and heating systems provide.


The entire concept is about energy efficiencies, and Massachusetts General Law Chapter 25A, Section 11. Energy efficiency is good for the environment, but it's also good for budgets, over time. It can be costly to start. In order to spur communities into adopting more energy efficient ways, the state legislature created a way for communities to pay for related work and equipment, by utilizing savings.

West Boylston became involved in 2013, when representatives of ABM Building Solutions Inc., fresh off a similar project in Shirley, began looking for its next customer. After ABM met with selectmen, the School Committee and department heads about the potential savings West Boylston could realize, the town, earlier this year, sent out a request for proposals.

Two companies, ABM and Trane Commercial Systems, responded with bids. A subcommittee led by Conservation Commission member and engineer David Eckhardt, reviewed those bids. After determining the written proposals were too close to decide, both companies were invited to a lengthy interview process on May 20.

Based on a predetermined grading system that ranked several requirements on a scale, ABM was the unanimous choice. Two things factored into that decision heavily. First, ABM agreed to use local subcontractors to do much of the work. Second was that ABM, through its initial contact with the town, already had several ideas that could be started immediately.

But time is still a factor. For example, the town wants most, if not all of the school's lighting replacement done while school is not in session. ABM had a better response, according to committee members.

Perhaps most important was the largest project to be proposed: Converting the middle/high school to natural gas.

The School Committee had already begun its own exploration of this idea when ABM reached out to the town. Having already completed similar projects through National Grid, ABM was able to get involved in the existing conversation readily. In addition, during its interview, ABM representatives claimed to be able to get the utility company to extend a deal that would save the town tens of thousands of dollars on the conversion, if the town could commit to the project by July.

The biggest negative against ABM was the cost if the town fails to agree with the selectmen's request. If voters say no to the project, the town will have to pay the firm's engineering fees, which will be about $30,000. That's more than Trane would have charged.

Trane also proposed higher savings, but through projects that the town found unnecessary and that would have had Trane working in the schools for a longer period than ABM during the upcoming school year.

With ABM picked as the town's choice, selectmen found they had to act quickly to both get all the available savings from the gas conversion, and to get the work started to be ready to heat the schools by the upcoming heating season.

The town would look to pay the bond through 2026, which is the expected lifetime of much of the equipment that would be replaced. If it wants, the town could also contract with ABM for a long-term maintenance agreement beyond the initial construction phase.

Companies that manage these types of energy efficiency projects are required, by law, to inform the host communities of how much will be saved on energy bills. If those numbers are not met, the company must pay the community the difference.

"The way the statute is written it has to pay for itself. It is guaranteed to pay for itself, or the company writes the town a check," Town Administrator Leon Gaumond Jr. said.

ABM Account Executive Robert Reddish and Kevin Brown, the company's director of engineering, were among the company officials to tell selectmen that, quite often, communities save more money than predicted. If the money saved is more than the payments for the bond, the money may be used elsewhere in the budget.

"The way it works is, you are using existing operating budget, but, rather than going to pay for the electricity, the gas or oil, you are paying for the work and new equipment," Gaumond said. "Anything (saved) over and above that is gravy for the town's operating budget."

The largest portion of the work will be in the two schools. With much of the work expected to be completed by the end of summer, savings should be realized almost immediately. Therefore, the payments should never have to be seen on tax bills, Gaumond said.

Special town meeting is set for 7 p.m. on Monday, July 14. It will take place at the middle/high school, 125 Crescent St.



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