Racine Unified Could Spend $45 Million for Energy Upgrades
The School Board will negotiate energy service contracts with Trane and Johnson Controls. The contracts carry a potential price tag of $45 million for a variety of energy efficiency upgrades... but the plan is to pay for the projects with energy savings.
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Racine Unified staff will negotiate contracts with Johnson Controls and Trane so the companies could make energy efficiency upgrades to district facilities.
The upgrades would likely be several smalle projects that could cost a total of $45 million, said RUSD Chief Financial Officer David Hazen. The district would borrow money to pay for the projects, and use energy and operational savings to pay off the bond.
“So that the board doesn’t get nervous about that, every step of the way the board will be involved,” Hazen said.
The action taken Tuesday night allows staff to enter into contracts with the two companies, but specific projects will still need board approval. State law allows school districts to spend over their revenue caps to make physical plant upgrades, Hazen said, provided the projects will not place an "undue burden on the taxpayer."
“The idea is that it’ll be paid for with operational and energy savings,” Hazen said.
Bryan Arnold, the new director of buildings and grounds for Racine Unified, said the vendors, Trane and Johnson Controls, are more than capable and are good partners.
“We sent them a list of 10 or 12 questions that were specific enough to answer specific things – what they would to do partner with us, their recommendations for bonding and what their overall approach would be,” Arnold said.
Among the potential projects are: lighting upgrades, roofing and replacing windows. Susan Kutz, a school board member, asked if their attorneys would review the contracts and asked if staff understood what the liability of the contract would be.
If the board decides not to move forward with the projects, the district would still be responsible for paying engineering fees incurred when the companies put together the contract.
To pay for the projects, the district will borrow money outside the revenue cap, something allowed under a new state law. The law also requires the district show there's a payback for making the upgrades. The district expects energy savings from the project to cover the payments for the $45 million bond.
“(Johnson Controls and Trane) basically need to guarantee that (the savings) is going to happen; it’s part of the negotiations,” Hazen said. “Just because we have the authority, doesn’t mean we are going to borrow the money. The Board still has to make that decision so it comes in steps.”
GearHead
4:37 pm on Thursday, April 19, 2012
Before we borrow a frightening amount of money (shouldn't that be a referendum?) can we get an update on the last lighting/energy savings deal, and is it standing up to its promise?
http://mountpleasant.patch.com/articles/racine-unified-spending-now-for-future-energy-savings
Can a Patch journalist follow-up on this, please! Are solar panels and windmills involved? Good Grief!
GearHead
4:37 pm on Thursday, April 19, 2012
Since we know it is 45 MILLION dollars, do we also know what the payback is? Five to seven years? Not hardly. 45 years? More likely. I can see where blowing 45 mil might save a million a year. Prove me wrong.
C. Sanders
4:37 pm on Thursday, April 19, 2012
$45 million dollar investment in energy savings initiatives
Paid for by "energy and operational savings".
More lies from the same RUSD team that determined that a 21 year payback on new lighting made financial sense.
Brian Dey
9:27 pm on Wednesday, April 18, 2012
Just like always with Hazen; trust me it will pay for itself. Hasn't happened yet and coming from a guy who is not even smart enough to get an appraisal before purchasing or selling real estate, don't buy what he is selling!
Tuco
12:05 pm on Thursday, April 19, 2012
I would like to see the proposal from Johnson Controls & Trane. I would also want to see a guarantee clause, with no exceptions! You said $45 million. We only saved $40 million. Cut the check for the other $5 million.
Really tired of subsidizing these bureaucrats in RUSD!
enicar333
12:18 pm on Thursday, April 19, 2012
Like a drunk reaching for JUST ONE MORE....
Lift spending caps - spend away - no, it won't hurt much, just raise property taxes some more so that local people who don't work for Wealthy Corporations like RUSD and have benefits have even less, lose their homes, and spend more just to live in the Community.
It doesn't/won't affect RUSD employees at all - they'll just vote themselves a raise, and it will be just like before.
RUSD - working hard to make people poor, and ensuring they stay that way.
BTW RUSD - WHERE IS THE FRUIT? Why isn't Racine thriving and filled with successful people and businesses?
Public Education = FAILURE.
GearHead
2:25 pm on Thursday, April 19, 2012
Before we borrow a frightening amount of money (shouldn't that be a referendum?) can we get an update on the last lighting/energy savings deal, and is it standing up to its promise?
http://mountpleasant.patch.com/articles/racine-unified-spending-now-for-future-energy-savings
Can a Patch journalist follow-up on this, please! Are solar panels and windmills involved? Good Grief!
GearHead
2:27 pm on Thursday, April 19, 2012
Being we have 45 MILLION dollars in play, do we also know what the payback is? Five to seven years? Not hardly. 45 years? More likely. I can see where blowing 45 mil might save a million a year. Prove me wrong.
Ed Holladay
6:46 am on Friday, April 20, 2012
45 million? It will pay for itself?
I could not possibly be more bewildered.
C. Sanders
7:53 am on Friday, April 20, 2012
To all those that voted for the RUSD incumbents, CONGRATULATIONS
You have all brought more stupidity and fiscal irresponsibility to RUSD. From your standpoint, it's only money, right? There are more important issues? Certainly those issues have nothing to do with restructuring RUSD into a high performing educational institution, that can longer be permitted to line their pockets with taxpayer funds while dumbing-down our children.