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Finance committee authorizes mayor to sign chiller service contract after reported energy savings
Summary
Homewood City Finance Committee voted 3-0 to authorize the mayor to sign a reinstated quarterly service agreement with Train for the new city hall chiller after staff reported measurable electricity and cost savings from the system.
On March 3, 2025, the Homewood City Finance Committee voted 3-0 to authorize the mayor to sign a reinstated service agreement with Train covering quarterly maintenance of the city hall chiller, with the contract retroactive to March 1 and running through the end of the fiscal year on Sept. 30, 2025.
Committee members heard a report that the newer chiller and updated controls have reduced annual electricity use by more than 14% and lowered annual energy spending by roughly $27,000 despite a more than 6% rise in electricity rates. Committee members were also told the upgraded system produced more than $40,000 in energy savings since May 2024 and that a portion of those savings equate to an estimated $15,000 of utility cost avoidance in 2024. Those figures were presented to the committee during the discussion and were used to argue the maintenance contract would be cost-effective.
Committee members discussed that a one-year complimentary service period provided with the original installation had lapsed in mid- to late-2024 and the city has not had a full quarterly service contract in the last eight months. Train proposed a service agreement with a quarterly fee of $4,040 (annualized at $12,120); the company requested coverage for the remainder of this fiscal year rather than any retroactive charge for 2024. City staff said the expense will be covered from existing departmental budget lines rather than new general-fund appropriations.
During discussion, staff identified further optimization opportunities in the building — including additional zoning for the first floor (Rosewood Hall) — that could increase savings by another estimated 10%. Staff agreed to circulate the detailed reports and the proposed service agreement to committee members after the meeting.
A motion to authorize the mayor to sign the Train service agreement passed 3-0. The committee chair said the item will be placed on the city council agenda for the March 10, 2025, council meeting for final approval.
The committee also recorded that Train technicians and city mechanical staff continue to refine set points for heating and cooling zones in the building; staff will provide quarterly reports going forward to track savings and system performance.
