Yonkers committee reviews $28.1M energy savings package; public hearing set for Oct. 7

The Yonkers Budget & Finance Committee on Sept. 30 heard a presentation on the Yonkers Energy Savings (YES) program, a proposed $28.1 million package of energy conservation improvements at 37 municipal facilities that officials said would be financed with a 20-year tax-exempt lease. A public hearing is scheduled for Oct. 7, followed by a likely special meeting that same night to vote on the capital budget amendment.

The administration presented the package as a bundled energy performance contract with nine measure types, including LED lighting and control upgrades, fan coil and air-handling replacements, building-management-system upgrades, building-envelope work, pipe insulation and steam-trap replacements, roof replacements and about 4.8 megawatts of solar photovoltaics at roughly 20 sites. "It is a program that includes $28,000,000 in energy conservation improvements at 37 facilities that will reduce our annual energy costs by 31%," a presenter said during the committee meeting.

Officials described the financing as a single, 20-year tax-exempt lease. Staff said the project includes roughly $6.1 million in guaranteed incentives or rebates that would be applied directly to the lease to reduce payments, and that Honeywell Building Solutions will guarantee the energy savings. Staff also said an independent energy-performance specialist will oversee measurement and verification of savings annually over the 20-year term.

City staff described expected outcomes in both budget and operational terms: they cited a projected net program benefit of $2.2 million over the 20-year period and first-year energy savings on the order of $700,000. The package, staff said, would allow the city to complete roughly two years' worth of facility upgrades in a two-year window rather than spreading those projects over five to 10 years if done individually.

Council members pressed staff for more detail. Minority Leader Breen asked whether solar output would be sold back to Con Edison or used to offset city loads; staff replied the solar generation will offset the city's own energy use. "Are we selling any of this back to Con Ed?" Breen asked. Councilman Moranti repeatedly requested the schedule of projects and the vendor proposal used to select Honeywell; staff said RFP documents are public and that the Honeywell proposal can be provided.

Several members raised long-term risk questions: Moranti said he was concerned about future replacement costs and performance guarantees, citing past technology rollouts that required earlier-than-expected replacement. Staff responded that many components in the package (for example, roofs and large mechanical units) are projects the city would have to undertake regardless, that Energia (an outside energy engineering firm) validated Honeywell's calculations, and that contract language was developed to strengthen guarantees.

On accounting and capital planning, staff said the lease payments will appear in the debt/lease section of the budget as a long-term obligation rather than as bond issuance; they said the YES package avoids future borrowing for projects included in the bundle but does not automatically reduce the capital plan dollar-for-dollar. "We will have the full schedule of the lease term" when final lease documents are returned to the council, staff said.

Next steps: staff will provide the council with the RFP/proposal materials on request, deliver the final lease-payment schedule when financing is secured, and proceed to a public hearing on Oct. 7 at City Hall, with a special meeting expected the same night to vote on the capital budget amendment.

Notes: Where presenters gave numeric details during the meeting, staff cited a $6.1 million rebate/incentive amount and a $2.2 million net benefit over 20 years; staff also cited first-year savings of approximately $700,000. Committee members asked for clearly written talking points for outreach to constituents and for final lease and procurement documents before a vote.