County to consider energy savings agreement with TRANE

Area News

November 4, 2008

By Gary Nelson / gnelson@crossville-chronicle.com The Crossville Chronicle Tue Nov 04, 2008, 04:23 PM CST

A preliminary energy audit of the Cumberland County school system performed by TRANE indicates that energy costs in the school system are 30 percent higher than what they should be.

The information was shared with commissioners on the Cumberland County schools and education and budget committees during a presentation by TRANE Monday night.

A subsequent discussion led to members of the committee voting to approve the concept of an agreement between TRANE and the Board of Education.

"With this program we could potentially save a lot of money and replace a lot of the old, outdated equipment at no cost. The savings would pay for the program," said Cumberland County Director of Schools Aarona VanWinkle.

A detailed energy audit of the system would cost roughly $113,000 and the project would focus on replacing equipment that is costing the county excessive funds. TRANE would guarantee a specific amount of savings for a 15-year period.

"Why would you want to spend this kind of money on the audit during this budget cycle?" 5th District Commissioner Sharon York asked.

"Folks, we don't have the $113,000 to spend for this audit. But we don't have to pay for it up front. The fee for the audit will be incorporated into projected costs if the board and county decides to do the energy saving performance contract with TRANE," VanWinkle said.

"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 of TRANE.

The county would need to approve and obtain the funding of approximately $5.7 million for the energy savings project. The BOE would pay the county back in installments and the county would only be required to make payments to TRANE as the equipment replacements were performed.

The preliminary audit revealed:

• The school system's heating and air conditioning units have outlived their expectancy by anywhere from 5 to 25 years.

• Antiquated lighting systems that overuse energy, while producing sub-standard lighting levels for student performance.

• Outdated plumbing technology that wastes water.

• A total lack of centralized building control is contributing to less than desirable comfort levels, high energy costs and extra work for Cumberland County school maintenance personnel.

The preliminary audit also indicates that a guaranteed savings of $9.9 million could be achieved over the proposed 15-year term.

The current energy performance cost at the school system is at $1.25 per square foot. The proposed cost through utilizing TRANE's program would bring the cost down to 88 cents per square foot.

The guarantee is that the Cumberland County school system will "simply use the existing amount of funds allotted for utilities and reallocating them from overpayments on utilities into needed infrastructure upgrades," according to the preliminary TRANE audit.

It further states, "TRANE guarantees that the savings will always exceed the payment requirement for the loan. If for some reason there is a savings shortfall, TRANE will issue a check for that amount to Cumberland County."

After the discussion 7th District Commissioner Mike Harvel made a motion to accept the concept of the project and contract with TRANE and send it with recommendation for the budget committee and other commission members to consider. The motion was supported by 1st District Commissioner Jim Inman. It was approved with one member, 3rd District Commissioner Johnny Presley, voting no.

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