NEVC school board hears presentation on energy analysis

During the Northeast Vernon County Board of Education meeting held Tuesday, Oct. 19, the board heard the results of a preliminary energy analysis report prepared by energy Solutions Professionals of Overland Park, Kan. Tim O'Kane, director of marketing for ESP said the company specializes in "providing energy audits, facility analysis and turnkey implementation" of energy saving improvement projects, according to the document provided to the board of education.

O'Kane told board members that his firm has a three stage process for energy saving projects. Stage one includes the preliminary analysis, and if the project is viable, proceeds to an investment grade audit, which includes an in depth, three-year utility review, comprehensive facility assessment, measurements, scope of project, engineering and bids for firm pricing, which ESP guarantees in writing.

The second stage includes engineering design, construction, commissioning of equipment and training of district personnel. O'Kane told the board that during this phase of the process that local labor and materials would be used whenever possible.

The final step in the process is the performance stage in which projected energy savings are determined. Performance management involves the regular measurement of the system and improvements to be sure they perform at the desired level; and finally, there is the training phase, where operators are trained to get the most out of the systems and components.

In simplistic terms, the company guarantees how much the district will save, so that 100 percent of the project can be financed, but new dollars don't need to be identified or budgeted to pay for improvements. Money financed to do the project is paid back through money already budgeted for utility costs. For example, if ESP projects that the district can save 20 percent per month on its utility bills, then most of the 20 percent saved is used to pay back the financing. A small portion of the money can be set aside for other uses. No taxes or other money is involved. The money used is what the district has already budgeted for the utilities used by the district.

O'Kane told the board that ESP would manage the project start to finish and guarantee all costs, savings and performance in writing. He said that the price quoted in the beginning is the price paid. The projected savings and performance are also put in writing in the beginning of the project.

Board members questioned that and O'Kane reiterated that all of those guarantees would be in writing.

"What happens if our monthly bill goes over the amount we should have saved," asked one board member.

"We cut a check for the difference," said O'Kane.

During his presentation, the board asked many questions and tried to determine the merits and pitfalls of such an arrangement.

The company's preliminary figures estimate that the district could save as much as $17,600 per year; a figure that would enable somewhere between $150,000 to $220,000 improvements targeting energy savings, according to the company's documents. Several figures and timeframes and financing terms were discussed at the meeting, but NEVC board member Jeannie Hoagland said that none of it matters until the district knows it is going to survive the annexation issue.

However, Hoagland did say that the board "certainly saw a lot of good things," in O'Kane's presentation and information.

"We think it's the way we are probably going to look," once it is known if the school will stay open. Hoagland also said the board had checked out some of the references and could find nothing but good things about them.

Those sentiments were backed by NEVC board of education vice president Dennis Vantellman. Vantellman had checked some of the references and said, "I can find nothing wrong with it."

He said that everybody on the board seems to think it's OK.

Vantellman and Hoagland both said they will continue to check the company's references. The board will take up the issue at the next meeting unless the district is annexed.