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Casa Grande board authorizes $6M energy performance contract financing
Summary
The Casa Grande Elementary District board approved an energy and construction services contract with Schneider Electric to fund energy, water and telecom upgrades financed over 18 years; board members said the project is intended to pay for itself through guaranteed and projected savings.
The Casa Grande Elementary District Governing Board on an aye vote approved an energy and construction services contract and related financing to fund facility upgrades identified through the district's master capital planning process.
Superintendent Dr. Lecke invited Brandon Woodward of Schneider Electric to present the proposed energy performance measures, which the vendor said total just under $6,000,000 after an approximately $100,000 Arizona Public Service rebate. "Everything that we just shared is just under $6,000,000 in total improvements," Woodward said during the presentation. The board was also provided financing terms: an 18-year term at a 3.976 percent interest rate and a planned capital down payment of about $700,000 to $750,000.
The project is structured as an energy performance contract that Schneider Electric described as "100% self funding by statute," with guaranteed savings the company framed conservatively and larger projected savings over time. Woodward said the district could reasonably expect more than $400,000 per year in combined energy, water, maintenance and telecom savings and a projected total savings of about $13,000,000 under more optimistic assumptions; the guaranteed baseline the vendor highlighted was roughly $9,000,000. "Very little you need to do on the district's end between that 9 and 13," Woodward said when asked about steps needed to realize the higher savings figure.
Board members asked about financing flexibility, subcontractor vetting, and the electric-vehicle (EV) charging infrastructure to support electric buses. Board member Mr. Cruz asked whether there is a prepayment penalty in the financing agreement; staff replied that prepayment terms were addressed in the contract review and indicated no penalty (contract language not quoted in full during the meeting). Cruz also asked how subcontractors will be vetted; Schneider said it will use its usual subcontractor processes and noted final contractor lists would be provided as the project moves forward.
The vendor described measures that include energy conservation measures, water savings (including conversion of low-maintenance desert landscaping and artificial turf in locations difficult to maintain), EV charging for buses (initially supporting four level-2 ports at the bus facility), and miscellaneous value-added services such as marketing and student outreach activities related to solar education. Woodward also said the team performed telecom optimizations with district IT that are included in the projected savings.
During discussion of EV buses and chargers, transportation staff member Darla advised that buses typically return after morning runs and can be charged for afternoon routes; she noted routing will determine which runs an electric bus can serve. Darla also said some major repairs on electric buses require work by third-party providers and that battery warranties are comparable to diesel-engine warranties.
The motion to authorize the energy and construction services contract and related financing carried on a recorded roll call: President Varela, Mr. Sibley, Mrs. Sisson, Mrs. Martinez and Mr. Cruz voted aye.
The board and staff said they will continue contract review and coordination with finance and legal counsel before implementation.
