Town of Willington
Public Hearing meeting minutes
Public Hearing July 10, 2013
Willington Public Library 6:30 P.M.
First Selectman Mailhos called the meeting to order at 6:03 P.M with members from Siemens: Jerry Drummond, Curtis Rose and Mark Buzzell; Andy Merola from CCM; Selectmen Littell & Blessington and residents.
First Selectman Mailhos read the call of the hearing:
TOWN OF WILLINGTON
NOTICE OF
PUBLIC HEARING
The Board of Selectmen, will hold a Public Hearing on Wednesday July 10, 2013 in the Community Room at the Willington Public Library; 7 Ruby Road, Willington, at 6:00 P.M. for the following purpose:
- Presentation of a detailed Energy Audit/Report for Town owned buildings at a potential cost of over $10,000.
First Selectman Mailhos opened the floor to Jerry Drummond. Mr. Drummond then presented the final Energy Saving Performance Plan, which was based on the input from prior public hearings. Mr. Drummond then thanked the working group, which was made up of members who represent Town property: Ron Strong, (Hall and Center School) Tyler Millix, (Fire Department) Jim Bulick (CIP) Lynn Nicholls, (Public Works); Wilbur Gangaway (Senior Center); Nancy Bailey (Library) and First Selectman Mailhos. The working group discussed and made the final decisions on what upgrades and improvements would be made to benefit the Town.
Mr. Drummond stated that the decision boils down to how the Town is going to spend the money on upgrades. He also reviewed the process; that the ESPC (Energy Savings Performance Contracting) is paid from an escrow account funded by a municipal lease. Payments will begin 6 months after construction has begun. The contract guarantees that the savings are more than the program costs.
Business Manager, Donna Latincsics asked what if we do not realize savings before the first payment is due? Mr. Drummond answered that the construction phase is usually six months and they do not require payment until the construction has been finished. He added that savings will begin to occur once the installation begins.
Donna then asked how we measure the savings. Mark Buzzell explained that the Electricity provider will come out and measure the electric usage prior to the installation and then again, after the installation.
A question was asked how the Town will budget for the upgrades. Mr. Drummond explained that the Town already has the money budgeted; it is the current operating budget. He then explained that as time goes on, the current budget will remain the same as it would have been, but operating costs will become less, and the difference will go towards paying the financing, In years to come, the Town will also accrue savings in addition to paying off the financing.
Donna Latincsics then stated that she is afraid there might be a risk because the Town is obligated to purchase oil at a minimum number of gallons per year. If the upgrades cause us to use less oil, we will still have to pay for it. Mr. Drummond stated that the proposed plan does not have a lot of oil savings. The proposed propane boilers were taken out of the project because the Town has been locked in such a low price. He then credited Facilities Manager, Ron Strong, who has worked directly with Hartford Steam Boiler to plan to have three of the boilers at the schools refurbished. Mr. Strong stated that he believes he can get an additional 20 years out of them once they are refurbished. He can also use the old parts for replacement parts.
The proposed plan will be as follows:
- All buildings (except the Library and DPW) will receive new lighting and ballasts as well as building envelope improvements.
- Programmable thermostats will be installed in the Town Offices, Senior Center and WFD#1.
- Vending machine controls will be installed at WFD#1 and both schools.
- Network controls (for pc’s) will be installed in every building.
- Cool Trol controls for the walk in freezer/refrigerator will be installed at HMS.
Mr. Drummond clarified that Siemens will not be making a profit on the boiler refurbishment as Mr. Strong is working directly with Hartford Steam Boiler.
Nancy Gauthier questioned the plan: it is for $757,500 and we are not even getting new boilers? Mr. Drummond replied that they tried to make it work out with new boilers, but they could not get 20 year financing, for a long enough pay back and because the Town is locked in for the lowest oil prices, it just did not fit the equation.
Mr. Buzzell added that the Town will also be eligible to receive $63,290 in rebates from the service providers. The rebates can be applied either by check, or applied towards the financing.
Mr. Drummond stated that the proposed plan shows that the Town could receive $757,000 worth of new equipment and is guaranteed to save $47,694 per year in energy costs. He added that Siemens Financial will be handling the financing as they were the lowest bidder.
Peter Latincsics stated that the plan has changed since the last public hearing; and he thought more capital improvements would have been included in the plan. Mr. Drummond stated that it could cost up to $700,000 to replace just one boiler and reiterated that the boiler project would not work because of the pricing of oil (that the Town is locked into) and the financing plan was just not long enough of a time period to offer a positive payback.
Mr. Latincsics asked what the next step is going to be. First Selectman Mailhos stated that the Board of Selectmen will add it to the next agenda. Mr. Latincsics asked why it will not go to Town Meeting. Discussion was held with the process of the next step. First Selectman Mailhos clarified that there is no appropriation of money; the Board of Finance will not be involved. She added that the Board of Selectmen are authorized to make financial leasing decisions.
Selectman Blessington stated that he is concerned because this has been presented to the people at four public hearings and everyone was under the impression it would go before Town Meeting for a final decision. First Selectman Mailhos disagreed and stated that municipal leasing decisions do not go before Town meeting, and stated that most of the stake holders (Superintendent Harding, Public Works Director, Lynn Nicholls, the Library Board, etc.) are not here tonight because they were all happy with the proposal and would like the Town to move forward. Very little has changed from the last time.
Selectman Littell also disagreed. He stated that we relied on Siemens to go do the evaluation and come back with a plan that would fit. The plan is based on their analysis and they are guaranteeing that we will save; if not, they will cut us a check.
Mark Jones stated that we voted for these Board members and we should trust that they know what they are doing and it is the right thing for the Town.
*A copy of the presentation, financial proforma (of program costs)and breakdown of the proposed work can be found on the Town website: www.willingtonct.org under “Boards and Commissions” Energy Advisory Committee. It is also attached to the minutes filed in the Town Clerk’s Office.
The meeting was adjourned at 7:56 P.M.
Respectfully Submitted
Robin Campbell
Administrative Assistant
Board of Selectmen
Board of Selectmen
860-487-3100
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