Franklin Area School District tables $1.75 million ESCO boiler contract after price concerns and calls for more bids

The Franklin Area School District board voted to table a $1,752,083 Guaranteed Energy Savings Act (GESA) services contract with Efficiency Network Inc. for boiler-plant and domestic hot-water upgrades at the junior–senior high school after a resident and multiple trustees questioned the price and procurement approach.

Resident Dennis Baker told the board he researched comparable projects and cited two recent local installations — a 2022 boiler at North Clarion High School for $424,000 and a 2020 installation at Keystone Elementary for $434,000 — and said local firms could supply boilers in eight to 10 weeks. “If these companies locally can supply a boiler in eight to 10 weeks for a million dollars less, we could have the boiler in place before school breaks out in the summer,” Baker said.

Board members pushed back that the ESCO proposal is turnkey, including design, permitting, project management and inspection, and therefore is not directly comparable to purchaser-supplied equipment costs. One trustee summarized the administration’s view: the ESCO’s contract structure is designed to reduce the district’s exposure to change orders and project-management risk.

Bond counsel Tim Walker told the board that timing affects financing options. Under IRS rules for ‘‘bank qualified’’ bonds, a district can keep borrowings cheaper if it schedules projects so that total bank-qualified borrowing stays below $10 million in a calendar year. Walker warned that delaying the transaction into 2026 could limit bank-qualified options and raise borrowing costs, though he said he could not estimate the exact additional interest cost.

Trustees asked administration to validate the price comparisons Baker presented by contacting the districts he cited, to check whether those projects included the same scope (design, oversight, turnkey guarantees) and to get itemized quotes for the Franklin jobs. The board directed staff to try to collect that information immediately and to consider calling a special meeting if the data arrive quickly.

A motion to table the contract (and the related authorizing resolution) passed on a roll-call vote: eight in favor, one opposed (Mrs. Boyer). The board’s tabling vote leaves the district able to revisit the ESCO contract at a subsequent meeting once the administration supplies comparative costs and clarifies what phase-one would include.

Votes at a glance • Motion to table Resolution 17 (ESCO/GESA contract, item 21) — Motion passed by roll call, 8–1 (Boyer opposed). • Consent items 9–13 (payments and financial reports) — Approved by voice (included general fund payments of $2,454,133.54; capital reserve bills $33,955.46). • Resolution 19 of 2025 (reimbursement resolution for bond proceeds) — Approved by voice; counsel said passage does not obligate bond issuance. • Resolution 20 (participation in Allegheny Intermediate Unit joint purchasing for fuel) — Approved by voice.

What’s next The administration said it will contact referenced districts and vendors, gather validated cost comparisons and bring the information back to the board. Trustees discussed the possibility of a special meeting with 24-hour notice to consider new information; no date was set.

The tabling action does not cancel the district’s ability to proceed later; counsel said the resolution can be brought back and that a motion to reconsider would be possible at a subsequent meeting.