Council hears Siemens presentation on proposed 20-year energy performance contract; members press on maintenance, costs and EV chargers

Siemens representatives and city staff briefed the Binghamton City Council during a work session on a proposed 20-year energy performance contract that would fund building efficiency upgrades, electric vehicle charging infrastructure and ionization air-cleaning systems.

The presentation described a lease-style financing structure with semiannual payments and a performance-assurance add-on. Siemens representatives said incentives of about $333,000 from NYSEG and NYSERDA are part of the project package and that the performance-assurance program would cost $358,410 over 20 years; the presenter said the first-year payment for that monitoring program is about $10,079. Council members were told that regular semiannual payments would begin next year and that an annual contract payment is expected to appear in the next year’s budget.

Why it matters: Council members raised multiple implementation concerns about maintenance, continuing oversight and the city’s long-term financial commitment. Several members warned that if the city fails to maintain installed equipment, guaranteed savings could be lost and the city could assume replacement costs.

Discussion highlights

- Maintenance and guarantees: Multiple council members pressed Siemens and city staff on who will be responsible for ongoing equipment maintenance and on the risk that poor maintenance could void any performance guarantees. A council member said a municipality could be “on the hook for a 20 year contract” if maintenance lapses, and Siemens representatives acknowledged those are valid concerns that must be addressed in contract language and reporting.

- Performance assurance: A presenter described a performance-assurance program that would monitor and report system performance and said the program’s total cost over 20 years would be $358,410. The presenter said that program guarantees ongoing documentation of savings and recommended that reports be shared with multiple city contacts and the legislature.

- Indoor air technology: A Siemens representative described needlepoint bipolar ionization installed in other municipal and health facilities and said testing done in one county nursing home showed a 92% reduction in particle counts in pre/post testing. The presenter also said third-party testing and NIH documentation were reviewed in evaluating the technology; council members requested copies of the test reports and asked about relevant UL or other standards referenced in EPA coverage.

- EV chargers and revenue: Siemens representatives said the project includes plans for roughly 42 chargers at city sites selected by the mayor and the Department of Public Works, and that the city currently has not set a policy to charge users. Siemens gave a conservative revenue example — about $17,800 annually if each charger averaged one charge per week — and said the system can be enabled to collect payment at city discretion. Council members asked the city to provide actual utility and usage data for existing chargers (Rec Park and others) and to provide revenue models showing net income under different utilization scenarios.

- Baseline utility data: Siemens and staff explained differences in baseline electricity use at a pumping station near the Robinson Street underpass (higher use because of pumps, heaters and constant lighting) compared with a fire station. Staff also said some sites (Sherry Lynn Park / stadium) lack a clear billed service address on the utility ledger, which complicates baseline calculations.

Next steps and finance mechanics

City staff said the contract uses a municipal lease structure so the city would not pay the full project cost up front but would make semiannual lease payments over 20 years. Staff said payments would likely begin next year and that the city would create a specific budget line for the payments. Siemens said some grant and incentive dollars are already committed from NYSEG and NYSERDA to reduce the project cost.

Council direction and outstanding requests

Council members asked Siemens and staff to: provide the third-party test reports cited for the ionization equipment; supply a copy of the performance-assurance reporting template and indicate who on the city side would sign and receive the reports; provide usage and revenue data for existing chargers and a conservative revenue model for the planned chargers; and supply details on the division of maintenance responsibilities under the proposed contract.

Quotes

"I'm Emmanuel Raj Silbraj. I'm with Siemens," said one Siemens representative when introducing himself to the council. A Siemens presenter summarized testing results for ionization installed at a nursing home: "it dropped the particle count by 92%," and described the project as designed to demonstrate measurable savings before the city relies on longer-term guarantees.

Ending

Council members said they remain generally interested but cautious. Several members asked staff to circulate requested documents by email so the full council can review them before any contract is scheduled for a vote.