Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy Efficiency topic
No spam. Unsubscribe anytime.
Castleberry ISD board approves $5.0M energy‑savings deal and 15‑year financing despite board debate
Summary
The board approved an energy‑savings performance contract with Centrics Energy Partners and authorized up to $4.997 million in work financed with 15‑year maintenance tax notes. Trustees pressed staff on vendor experience, measurement of savings and early‑year cash shortfalls; district advisers said savings are third‑party validated and Centrics guarantees measured energy reductions.
The Castleberry Independent School District board on Monday approved an energy‑savings performance contract with Centrics Energy Partners LLC and authorized tax‑note financing to fund roughly $4.997 million of work on HVAC, controls and lighting.
Trustees voted to award the RFQ to Centrics (5–2) and approved the contract and issuance resolution in subsequent votes. The district’s financial adviser, Adrien Galvan, said competitive bank bids produced a 15‑year financing rate of 4.19 percent from Simmons Bank, which yields an annual debt service of roughly $461,000. Galvan’s financial model projects a future‑value net benefit of about $481,366 over 15 years after measured energy savings, maintenance (O&M) savings and capital‑cost avoidance are included.
Why it matters: the project is designed to reduce utility bills and to remove recurring maintenance and replacement pressure from the district’s limited operating budget. Staff described a package of targeted HVAC replacements, updated controls and interior/exterior LED conversions that they say will both lower energy consumption and reduce emergency repairs.
Board debate and safeguards: several trustees pressed for clearer, quantitative evidence that Centrics will deliver promised savings and asked about accreditation, contract guarantees and the early years when debt service can exceed verified savings. Adrien Galvan and district staff said a third‑party measurement and verification (M&V) review was completed and that Centrics provides a performance guarantee: if measured energy savings fall short, the vendor will pay the shortfall specified in the contract. Galvan summarized the financing tradeoffs and concluded, "So it's it's paying for itself and over the 15 years you're 481,000 better," attributing the long‑term positive to the combined set of energy, O&M and capital‑avoidance savings (Adrien Galvan).
Costs and timing: the board authorized issuance of maintenance tax notes to fund the work; the legal and closing process will include the Texas Attorney General review and an anticipated closing in about a month. Staff reported that design, M&V setup and vendor mobilization would begin after funds are available, with an intent to bring projects online quickly to realize savings sooner.
Dissent and next steps: trustees who voted against the RFQ or raised concerns said they needed stronger vendor performance history, clearer year‑by‑year cash flows for the district and more direct evidence tying the RFQ score to long‑term cost savings. District leaders countered that deferring the work would increase replacement and emergency repair costs and that the negotiated structure reduces the district’s exposure by shifting guaranteed measured savings risk to the vendor.
The district clerk recorded the RFQ award vote as 5–2; the maintenance tax‑note resolution passed 6–1. The contract contains M&V provisions and a vendor payment guarantee for measured shortfalls; staff said the district will report progress to the board and can call guarantees if the M&V shows underperformance.
What’s next: staff will complete AG review and close the financing, then proceed with sequencing and contractor mobilization. The board asked for periodic M&V updates and for staff to return with any proposed scope changes or updated cash‑flow assumptions.
