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Leetonia schools OK energy saving deal

LEETONIA–The Leetonia school board Thursday night agreed to move forward with an energy savings project at the K-12 campus.

The board approved $699,670 for CCG Automation, an authorized dealer of Automated Logic, to upgrade the existing temperature control system and the lighting system. The purchase does not have to bid out since Automated Logic is approved through the Ohio Department of Administrative Service (DAS), exempting the need for the bid process.

The board also authorized Treasurer Jennifer Coldsnow and Schools Superintendent Rob Mehno to sign all necessary documents and to take all other actions necessary to carry out the purchase, and to incur any incidental expenses on behalf of the board.

Last month Brian Wagner of CCG Automation provided the board with details of the project to replace the interior lighting and HVAC system as the request of the building and grounds committee.

According to Wagner, the project will start to payback at approximately nine years at the company’s guaranteed rates on a 3.8 percent interest, 10-year loan. However, the guaranteed savings will cover the annual payments, he said. The guaranteed savings are conservatively estimated, meaning any increase in utilities, which is almost certain, will mean a larger savings, he said.

Wagner said even if the cash flow is neutral (no increase in cash balance) for the first six years, the benefits include an improvement in comfort and thusly productivity; and increase in the life of the building and campus, plus a reduction in maintenance costs and greenhouse gases due to utilities running less; as well as an improvement in service response time because it can be monitored online from offsite locations.

Wagner noted a joint study conducted by the Ohio Environmental Protection Agency (EPA) showed an increase in comfort resulted in an increase in productivity, a positive sign for both staff and students.

Once the project is complete, the district should experience a savings of $71,150 each year, Wagner said. Any positive cash flow is money that can be spent on something else, he added.

Wagner said the online system means administrators can monitor occupancy of the building and schedule the utilities around when people should be in specific areas of the campus. When there is a problem, administrators will be able to pinpoint the problem and troubleshoot it, and there is a service technician in office each day to assist with problems, Wagner said.

The board can finance the project using House Bill 264, but Coldsnow recommended self-financing. If the district elects to use self-financing, the board can opt for a seven- or 10-year loan. Coldsnow said the interest rates are similar for both, but the district will retain more savings through operating costs with the 10-year loan. Annual costs for the loans would be $116,000 for seven years and $76,000 for 10.

In November, the board approved the replacement of exterior lighting with LED bulbs including the parking lots, wall packs and entrance pole at an estimated $56,000, the first phase of the project.

No timetable has been established for the second phase of the project.

khowell@salemnews.net

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