Belchertown officials have been guaranteed by Siemens Corp. that fuel and other energy cost savings will pay for the $3.3 million worth of efficiency upgrades that will be starting soon at town and school buildings.
BELCHERTOWN – The Board of Selectmen gave final approval Monday to an agreement in which Siemens Corp. will make efficiency upgrades to town buildings and guarantee that energy costs savings will at least equal the $3.3 million the town will pay for the work.
Just before the 4-0 vote for this contract, Town Administrator Gary L. Brougham informed the selectmen that the state has authorized the town to use Energy Conservation Bonds for the work with interest rates at 2 percent or lower, which will save Belchertown at least $700,000 in borrowing costs.
The work included under this energy saving program will include new boilers at Town Hall and Jabish Brook Middle School, a new roof and more insulation at the Senior Center, heating and air-conditioning upgrades at the Recreation Building and Freedom Center and more efficient heating control systems at several schools and other buildings.
Brougham and other town officials have been working With Siemens representatives on the proposed work for more than a year and at one point were considering a contract for $5 million worth of work.
But Brougham said the additional $2 million worth of work would have included installing some equipment that had life cycles of only three or four years, so the town representatives opted to leave those out of the package.
The town will be able to use two state grants, a $160,917 Green Communities grant and a $148,000 Thermal Efficiency grant, to pay toward project costs.
Brougham said that under the terms of the contract, Siemens is making a guarantee that the town will see at least $256,000 in energy costs savings annually for the next 17 years, based on last years fuel and electricity prices.
Borrowing the $3.1 million that will be needed to pay for this work was approved by a unanimous vote at the annual Town Meeting May 9.
Brougham said it would not be practical for the town to undertake this work by itself because it does not have the staff to oversee contractors working on specific phases.
Public Works Director Steven J. Williams and School Department Building Director Robert LaChance, and the town Energy Committee, worked on details of this project with Brougham and Siemens representatives for the past year.
Brougham said he expects the work will be completed in 16 months with a schedule that will have to take into account when the schools and other buildings are being used.
