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Board declines immediate LED stadium-light quote after debate over payback and rebates

Le Sueur-Henderson School Board · July 1, 2024
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Summary

Board members discussed an LED retrofit for stadium and auditorium lighting, debating energy savings, rebates and payback periods; after debate the board voted unanimously to decline the immediate quote and revisit the project later.

Board members reviewed a cooperative bid to retrofit the stadium and auditorium lights to LED, with staff presenting rebate estimates and payback models. The finance presenter noted a likely rebate for the auditorium around $1,700 and a much smaller stadium rebate (roughly $18,000) due to current low usage figures.

One board member framed the decision in practical terms: the district currently pays about $700 a month in demand charges even when lights are often unused. "That $700 charge is just irritating as hell," the director said, noting that LED conversion could lower operating costs but the quoted capital cost produced payback scenarios ranging from about eight years (with high usage and rentals) to 15–16 years under more conservative assumptions.

Board members examined assumptions in the model — anticipated number of events (four vs. 14), rental opportunities, and whether utilities and rebates would materially change payback. Staff also noted the quote’s expiration timeline (good through 2027) and the possibility of staging funding over three years using arbitrage funds.

A motion was made to decline the quote at this time; the motion was seconded by Director Schwarz and carried unanimously. The board left open the option to revisit LED conversion with additional financial analysis or alternate funding sources.