School board accepts energy proposal from TRANE

Area News

October 8, 2008

By Missy Wattenbarger / mwattenbarger@crossville-chronicle.com The Crossville Chronicle Wed Oct 08, 2008, 07:37 AM CDT

Sometimes in order to save money you have to spend it first.

That's what the Cumberland County Board of Education has decided to do. During its regular meeting Sept. 29, the board accepted a contract from TRANE to conduct a system-wide energy audit and show how the school system's utility bills can be lowered.

"They are going to come in here and do an audit…to show us how this system can save money in energy costs, and they are going to suggest things that we can do, equipment that can be purchased (and) things that can be switched out," explained attorney Earl Patton during the meeting.

He added, "The idea is that over the course of time you will end up saving more money than you actually spent in the first place."

Many of the board members understood the concept, but some of them were uncomfortable about footing the bill for the audit, which is expected to cost up to $113,900.

"I'm just trying to figure out how much money it is going to cost us to save money," said 8th District representative Jim Blalock, who also questioned if anything will have to be paid in advance.

Patton reassured them that nothing will have to be paid up front. Instead, the fee for the audit will be incorporated into projected costs if the board decides to execute an energy saving performance contract with TRANE, he noted.

"They have to set out what the fee will be ultimately…the intent of TRANE and the Board of Education is the cost of the actual audit will be made up in savings which you will have over the course of the years if in fact you enter into a contract with them to make the modifications they are going to suggest as a result of the audit," explained Patton.

"That is correct. There is no money paid up front. The cost of the energy audit will be rolled up into the project, and that will be paid when savings are achieved," added Terry Massey, a representative for TRANE.

However, in the event an energy saving performance contract is not executed within 90 days after TRANE delivers its final report with a "viable project," the county will be forced to pay the audit fee within 30 days, explained Patton.

In addition to the audit, the board will be responsible for purchasing new equipment. This caused Blalock to suggest the upgrades will "put our savings off a little while longer." However, Massey said he could guarantee enough savings each year for a 15-year period to cover the fee and possiblly pay for the modifications.

"Instead of investing the money in utilities, you can invest in new equipment and upgrades," he said.

Dan Schlafer, 9th District representative, motioned to approve the contract.

"We looked at this in 2002 and had we gone ahead and done then what we are doing now we would be close to halfway there…We cannot afford not to do this," said Schlafer.

Five board members agreed with Schlafer and voted in favor of the motion. They included Victor Randolph, 6th District, who supported the motion; Roger Hyder, 4th District; Richard Janeway, 2nd District; Brian Houston, 1st District; and Board Chair Shirley Parris, 3rd District.

Voting against it were Blalock, 7th District representative Mary Smith and 5th District representative Bob Scarbrough.

According to Patton, the contract will now be forwarded to the Cumberland County Commission for approval.

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