A conversion of the middle school heating system from steam to hot water is a top priority of the School District’s facility planning committee. The current system is 1950’s vintage. This conversion would ultimately lead to a switch from oil to wood as the primary heating fuel.
The total cost of the project is $1,995,000 for a new wood-chip boiler building and boiler. The School Department has submitted a grant application to the United States Department of Agriculture in the amount of $500,000. The local match will be approximately $1.2 million. The local match can be funded with long term debt or through a lease purchase agreement. Assuming a 20-year bond, the average annual payment will be approximately $91,500. The School Department has calculated heating cost savings of approximately $115,000 annually based on current consumption and prices (one ton of chips at $60 = 70 gallons of oil at $3.15/gal).
The project will only be undertaken if the United States Department of Agriculture Grant is awarded to the School Department. The Council passed a resolution on March 28, 2011 in support of the School Department's application for this grant. A copy of that resolution is attached.
Information about the grant, a memo from School Finance & Operations Director Dan O'Shea, orders and the draft referendum question are attached. |
