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Council discusses $4.05 million Siemens energy-performance contract; members request more data before vote
Summary
City staff presented two linked agreements with Siemens to finance and implement energy-efficiency upgrades totaling about $4.05 million. Council members asked for more detailed usage and savings data, and requested direct contact with Siemens and any third‑party review before approving the contract.
Binghamton City Council members reviewed two linked documents that would authorize a 20‑year lease and a guaranteed energy‑performance contract with Siemens, together covering $4,046,917.02 in upgrades and financing.
City officials said Siemens has been working with departments to identify projects to reduce energy use and operational costs. Deputy Mayor Megan Hyman summarized the two pieces of legislation as the performance contract (work scope and guaranteed savings) and a lease agreement (financing the improvements over 20 years).
Council members said the packet arrived late and raised technical and fiduciary questions. Council member Kavanaugh pointed to apparent inconsistencies in the baseline electricity numbers used in Siemens’ calculations — citing the Robinson Street underpass, Conklin Avenue fire station and several parks — and noted the contract lists EV chargers at multiple parks without line‑item consumption data for Mirabito Stadium, Sherilyn’s Park and Ross Park Zoo.
“This contract is $4 million plus. I don’t feel comfortable making that decision without being able to do my fiduciary responsibility,” Kavanaugh said.
Deputy Mayor Hyman and staff said Siemens had previously presented to council in December and that city consultants on the climate action plan had performed an outside review of Siemens’ measurements. Attorney staff said they would search for and share any report. Hyman said Siemens wanted to close in the middle of next week; the city attorney confirmed Siemens seeks a mid‑February closing date. Council members asked the administration to provide Siemens contact information so they could send specific questions directly to the vendor and to circulate any third‑party reviews (the climate consultant CNS was cited as having reviewed Siemens’ work).
Council members also pressed the administration about incentives and grant assumptions. The contract text states Siemens will apply for incentive or grant funds (NYSERDA, NYSEG and others) but explicitly disclaims any guarantee those funds will be available. Council members said that increases the importance of verifying savings and accurate baseline data before committing to a 20‑year lease schedule.
Deputy Mayor Hyman said she would provide Siemens contact information to council and attempt to gather the requested third‑party materials. Staff and council agreed to pursue more questions and, if needed, schedule a special meeting to decide before Siemens’ pricing commitment expires.
The council did not take a final vote on the agreements during the work session; several council members requested additional documentation and direct vendor responses before the scheduled closing date.
