Trenton approves Verigee energy performance agreement and $10.5 million lease financing proposal

Trenton — The Trenton City Council on Sept. 2 unanimously approved a design-build performance agreement with Verigee LLC to install solar arrays and energy-efficiency upgrades at city facilities and accepted a $10.5 million tax-exempt lease purchase financing proposal from Bank of America. The project covers upgrades at Kennedy Recreation Center, Westfield Community Center, Veterans Memorial Library and the wastewater treatment plant and is structured so guaranteed energy savings will cover annual lease payments, city officials said. City parks and recreation staff described the agreement as a phased design-build contract that includes financing support and provisions to mitigate risk. The parks and recreation director said the contract has been reviewed by the city attorney, bond counsel and the city’s insurance carrier; final approval is contingent on meeting insurance and legal requirements. The council approved the agreement by motion and voiced no objection. Under the financing proposal presented to council, Bank of America offered tax-exempt lease purchase proceeds of $10,500,000 at an interest rate of 4.173 percent. The parks and recreation director said the financing would be deposited into an escrow fund and distributed for project costs upon submission and approval of payment requests. A representative of Verigee addressed the council after the vote and thanked staff and elected officials for their support. “We never would have been able to do it without all their wonderful support,” the Verigee representative said, and added the company would “do a great job for the city.” Council discussion and staff comments indicated the city intends to use projected energy-cost savings to make annual lease payments; staff described the financing as reviewed by bond counsel and the city attorney. Council approved both the design-build performance agreement and the financing proposal unanimously. The council did not set a construction start date during the meeting; staff said phasing and insurance requirements remain to be finalized before work begins.