Danbury Board of Awards advances Phase 2 energy-efficiency upgrades for schools and city buildings, contingent on reviews

The City of Danbury Board of Awards discussed and voted to proceed with Phase 2 of a multi-phase energy-efficiency program for schools and city buildings at its April 2 meeting, but members asked for additional financial and operating-cost verification before full implementation.

Purchasing Agent Jake Volpe summarized the Phase 1 results and the Phase 2 proposal. He said Phase 1 work (lighting upgrades and some pipe insulation) covered 14 schools, city hall, the police department and the library at a proposed cost of $4,714,411, with an Eversource incentive of $1,102,728 and an executed 0% loan for 84 months. Volpe reported estimated monthly payments of $42,996 for Phase 1 and estimated energy savings of $44,042 per month, leaving a modest positive cash flow during that contract term.

For Phase 2 — described in the vendor's letter as mechanical, field lighting and additional energy-efficiency measures — Volpe gave the vendor's numbers: a proposed cost of $2,949,816.24; an Eversource incentive of $812,261.91; and a net city responsibility of $2,137,554.33, to be financed at 0% for 84 months. Blending Phases 1 and 2, Volpe said the combined project cost would be $7,337,473 with total incentives of $1,813,933 and a combined monthly payment of $65,756 compared with projected energy savings of $56,990 and operating-and-maintenance savings of $12,349, producing a projected positive cash flow of $3,583 per month during the term.

A board member raised caution about the operating-and-maintenance (O&M) savings and said the savings estimates "look a little light." The member (recorded as a committee member in the transcript) said: "I have not yet, but I do need to dig deeper into them to make sure that it's actually gonna be viable because it's looking a little light." Jake Volpe and other staff acknowledged that RLE, the preferred vendor, guaranteed energy savings within +/-20% but could not guarantee O&M savings; they said the award would be contingent on final financial review and satisfactory contract, bonding and insurance.

Committee records show RLE secured an Eversource incentive for Phase 2 of $812,261.91 and proposed to bid mechanical work through an open-book process. A motion to award the Phase 2 work to RLE (the vendor identified as a preferred vendor via the Connecticut Conference of Municipalities cooperative vehicle) passed; the motion and award were conditioned on satisfactory contract language, full financial review (including Mr. Hanley and the finance director), and confirmation of the proven energy portion of the savings.

The board recorded no opposition to the motion but attached the stated contingencies. Next steps recorded in the meeting included the requested financial review by the superintendent of public buildings and finance staff and execution of the Eversource agreement and municipal contracts only in acceptable form.

The board adjourned following the vote.