Within the next two months, the Gillett School District will begin a $3 million endeavor to upgrade its buildings.
The School Board on Thursday approved a contract payment of $635,000 to Energy Savings Group for consulting fees relating to a $2.54 million energy savings project.
The district also plans to replace a section of the secondary school roof installed in 1995, bringing the total energy-savings project cost to $2.975 million. The district will manage the roofing project itself, not contract with ESG.
The $635,000 paid to ESG is a 20 percent down payment toward the total cost of the project that includes facility improvements related to plumbing, heating and ventilation.
The money will come from the district’s fund balance and will be repaid after the district secures loans from the bank in late February. District Administrator Todd Carlson said making the payment out of district funds now will allow the project to move forward faster.
“It’s so we can start as soon as possible,” he said.
The approval for the payment was made contingent upon the district not receiving a referendum petition filed by a district resident by Jan. 21, which would effectively halt the start of the project. The district applied for an energy savings exemption to the state-imposed revenue limit, which allowed it to move ahead with the projects without going to referendum.
No members of the community attended a public hearing Thursday that preceded the School Board meeting.
Energy Services Group business consultant Josh Hounsell praised the board for its diligence in helping to gather information and inform the public about the project.
“To have nobody here, that’s a first time for me. I think that shows you did a good job at the first (informational) meeting,” Hounsell said.
As project manager, ESG will provide quality control of all aspects of the project, guarantee the cost and energy savings, and accept any risk.
Hounsell presented a PowerPoint, highlighting ineffective air ventilation and aging water-heating systems, lighting and pneumatic controls. He correlated the lack of proper air circulation to student absenteeism, stating that when the carbon dioxide levels reach 1,000 parts per million, absenteeism increases by 10 percent.
While Gillett did not have areas that exceeded those limits, Carlson said air quality needed to be addressed.
“We need to help students and staff by ensuring better air quality in the buildings,” he said.
Comfort in the classrooms was another issue. Carlson said during a recent cold spell, the variation between room temperature was very noticeable.
“I was amazed at the inconsistencies of heat and cold in classrooms next to each other,” he said. “This is really needed by the district, and I’m glad we’re moving forward with it.”
The renovations, beginning with lighting upgrades, are scheduled to begin in eight weeks. Crews will work a third-shift time schedule to minimize disruption for students and staff. Work will continue through the summer and is scheduled to be completed before the start of 2015-2016 school year.
Carlson said a kickoff meeting was held for custodial and administrative staff to coordinate communication about what to expect through the construction period.
“Everyone understands right now what’s going to happen,” Carlson said.
To pay for the energy saving projects, the board in December approved the borrowing and issuance of $2.975 million in bonds to cover both the roofing and energy savings projects.
According to figures presented at the informational meeting in December, the district spends $267,379 on energy-related expenses. After retrofit, the cost would decrease to $200,687, a savings of $66,692.
ESG will test and monitor the new systems at least once a year over the next 10 years to ensure that the district is reaching at least that much in energy cost savings. Money that the district saves each year will go directly toward the loan for the project.
Annual loan payments of an estimated $350,000 would be offset by the approximate $67,000 in energy savings guaranteed by ESG, lowering the payment to about $285,000 a year. That amount is less than district’s current debt load. In spring, the district will pay its final $410,000 payment for a loan secured when additions were built onto the secondary school.
At September’s annual meeting, taxpayers approved a $2.9 million tax levy that translated to $1,080 in taxes for a person owning property valued at $100,000. According to information provided by the school district, compared to 2014, taxpayers would pay $40 less per $100,000 of property value, despite the energy savings project.
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