School bond details to be determined at Aug. 27 meeting

Deliberation continues on the Holyoke School District Re-1J bond election details for the Nov. 3 election.

At their Aug. 18 meeting, board members reviewed two options — the $2.16 million bond to provide matching money for the Building Excellent Schools Today grant and the $3.45 million bond election option to also include energy performance savings measures.

After extensive discussion, the board opted to give it another week’s time and make a decision on the ballot direction at a special in-person meeting Thursday, Aug. 27, at 7:30 p.m. in the board meeting room.

Schneider Electric representatives provided updated information on the company’s investment grade audit for the district’s energy performance savings at a work session prior to the board meeting last week. Will Benish was there in person, and Kathleen Pratt was on conference call with the board.

The energy performance dollars have been pared down to $1.3 million in numerous revisions over the past months.

Three options are on the table for the energy savings question. It could be included in the bond issue if the $3.45 million option is the direction the district decides to take.

A second option would be to have the $1.3 million energy savings piece stand alone and go to a lender for financing, with the energy savings to justify the loan.

Lastly, the entire energy performance plan could be postponed, with none of it scheduled at this time.

Four items are included in the energy savings proposal. The first involves lighting and changing out the florescents to LED lighting throughout the district.

Secondly, the replacement of controls for the heating/ventilation/air conditioning system is in the energy savings plan.

Recommissioning the mechanical system for the air conditioning at the Holyoke JR/SR high is the next item for savings. The proposal is to flush out the current system and prepare for the installation of a pony chiller, Benish explained. He said the pony chiller would be placed next to the new greenhouse across from the driveway in the grass area.

One of the last scope items for generating quite a bit of cost savings to the district involves upgrading the telecom services, Benish pointed out. Replacing the current landlines would equate to cost savings, although not energy savings specifically.

Looking at final project costs, Benish detailed Schneider Electric’s target of $1,306,155. He said the year-one cost savings would be $83,497. This includes a guaranteed utility cost savings of $71,497 and other savings of $12,000 in operations and maintenance. Total life cycle savings would be more than $2.6 million.

Board member Dusty Sprague asked questions surrounding when projected savings move into guaranteed savings and how it would be determined whether the guarantee was met.

Pratt explained that they would be measuring and verifying savings monthly on actual utility bills. In an extreme weather year, they would correct for that. If at the end of the first year the guarantee isn’t met, they would have the ability to rectify the issue by paying for missed savings and paying for repairs.

Benish added that the first three years are considered for the measurement and verification process, and the guaranteed period goes through the life of the project.

Sprague reiterated that “guarantee” is just an awfully strong word for him. He asked specifically for more information pertaining to the scope of the lighting portion of the proposal.

Benish said he will get that info. He also noted that they partner with the Colorado Energy Office who monitors them, especially in the first year.

Board member Justin Clayton asked about the continual advancement in technology and how that would look for the telecom piece of the project. Benish said that the Single Point Co. quote is on a three-year basis.

Superintendent Kyle Stumpf explained later that after three years, the district can either reduce its monthly fee or look at all new phones in maintaining the same dollar amount. So there’s the opportunity to upgrade every three years.

With regard to telecom services, Sprague noted a personal concern for not supporting the local telecom cooperative.

The smaller $2.16 million bond option would provide matching money required to receive $2,533,301 in state  grant financial assistance already awarded under the BEST program.

That project involves secure entry, student safety and access improvements to address existing deficiencies in the JR/SR high. “It’s a great accomplishment to have earned a BEST grant,” Stumpf said.

Clayton and board member Chas Lengfelder initiated conversation pertaining to the potential of losing out on voter support for that matching money if they go too big in adding the $1.3 million for the energy performance savings pieces to the bond election ballot issue.

Looking at long-range planning with the district master facility plan, board member Jon Kleve referenced future plans to consider a major building project in a new elementary school attached to the current JR/SR high.

Business and finance director Ben Rahe said that bonding capacity for the district is 20% of the most recent assessed valuation. Currently at just under $80 million in assessed value, the bonding capacity would be $16 million.

The new building project anticipated five to seven years down the road could be looking at funding through a bond election. The district would find the $16 million bond capacity reduced by whichever option the board chooses for this year’s bond issue.

Also in terms of long-range planning, the upcoming bond election decision will look at the bond term at 10, 15 or 20 years. In this discussion, it was noted that the district’s mill levy overrides will run out around 2026-27.

Hard numbers with regard to effects on taxpayers will be obtained from the bonding company for discussion purposes at the Aug. 27 board meeting. Other information requested from Schneider Electric will also be available to help contribute to the decision.

Benish pointed out that if the project goes forward, Schneider Electric will be here to support the November bond election from an outreach standpoint in promoting its passage.

Intergovernmental agreements with Phillips, Yuma and Sedgwick counties were approved for the Nov. 3 general election even though the ballot details will not be finalized until the Aug. 27 meeting.