001Board of Education it's March 7th 2023 because I have a uh Mr Martinelli present with Rosenberg yeah the white you do have a poem all right let's stand for the pledge of the United States okay so we have a presentation tonight by Johnson Controls my Mr Aaron I love Rio that's correct all right the floor is yours do you want to kick it off we have no audience Communications by the way and I did speak to Mr White earlier so you know what I've left for um formula attendees planning committee models especially is the five-year capital expenditure plan which February 16th so um we sat with Aaron alibrio oh I do know for many years through the Connecticut Association of school business officials and reviewed the capital plan with him um because his specialty is
002looking at among other things that we know shots of controls but they do specialize in um taking Capital infrastructure projects and bundling them and finding a way to obtain additional savings through the bundle or alternative ways to finance through the bundling and I'm going to let Aaron speak speak to that but the backdrop and the most important thing is that you know if you started with a review of this Capital plan and so I know you're intimately familiar because you went line by line to approve it so Aaron thought he might be able to present some options for us and you know with that great you can introduce yourself but yeah so Aaron alibril I live in Manchester Connecticut I cover all of Connecticut four Johnson Controls and um not sure whether how familiar you
003are with Johnson Controls as a company but it's a global company which does everything in your buildings okay and outside of your buildings as well and when we think of what that is it's it's HVAC it's fire it's security um and then a whole host of things another tremendous amount of small companies within there and you would be very surprised that we'll touch a building even if you don't know some of our Brands you watch your medicines major manufacturer filters and so what what I do and that's Branch Services if you will so we have 300 techs uh trucks in Connecticut that are doing Fire Security and HVAC and controls for a whole host of cni customers K-12 state state and Municipal certified but I work above the branch and my division is called sustainable
004infrastructure and I actually work and partner with a variety of different um groups K-12 is where we do most of our work and we're trying to help you let you do your core Mission and partner with you and come up with creative ways to to get more done uh and to try to stay up because we know that the amount of deferred maintenance in the K-12 is tremendous and we know it's very difficult to do that and so I'm going to walk you through some slides these typically are 50 60 pages I scale them down I think what's important is to have a little bit of an open discussion give you a high level preview and let me just talk about maybe some things we've done with some of your local neighbors that have been
005successful and from from um what I got from Ben uh with the capital plan kind of where I understand uh you guys may be you know what what things I could probably contribute and how that would look okay and by the way you did a great job at the cost meeting with the Tiff discussions so I know there's some creators out there which to be honest with you we look at and we do a potential tip with uh for Broadband infrastructure but that Broadband is a little bit different than what you typically see because that Broadband is going to be disappointed something that's been enough money to do a lot of capital thank you cheers everybody no no but I you know I thought it captured a lot and I I you know I went
006back right away I'm like I need the slides because I need was that a board of ed meeting that was very interesting gotcha okay other half very passionate I mean you know I can tell when somebody's talking fast and they know what they're talking about and they just pause and he slowed down and you're like what do you guys got he had a lot of different headlights yeah I'm sure but it was creative and it's certainly a way you know rather than take it and everybody likes to do when I'm talking about energy and power purchase agreements everybody's like I don't want to pay for it I don't want to do anything just give me the money right and it's like okay well but they're maybe a bigger idea here to do and so that's
007where I come my partner with you and I come up with a lot of different creative ideas that can try to help you do a little bit more and a lot of it is really um using your Opex for capex okay all right this is Tim White he's all right also a member of the planning committee I should have mentioned that this is similar to what we did you know about nine years ago with ameresco it's kind of the thinking and the representative who served on the sales side in that Moresco is now joined Johnson Controls I've known Jim daler for for quite some time he came over about three and a half years ago he was my manager and now he's got a divisional um uh director's position if you will working on higher
008ed so he does higher ed for a greater part of uh the greater New England area oh it's great no I worked with I mean I've spoken with Jim quite a bit yeah I like working with him he knows this stuff yeah yeah hmm so this was interesting putting the agenda together because to be honest with you I hate agendas and I just hate the just the flow of the Powerpoints because I'm personal I like to talk uh there's actually a funny little note in here Finn that I was going to point out that maybe you wrote there which was a little bit of a directive where it says in your line item I don't want to miss miss state it I just love the way it was read about it I know you probably
009didn't write it though funding is a request and Isa is all together I said oh I got a little time yeah yeah here it is this is what you're gonna do notice that title a couple of days ago for an agenda a few times like yeah yeah you know so I do too so I really you know I I don't like speaking to people like speaking with people but this is actually me formulating an idea um it's obviously K-12 schools in Connecticut and a lot of people you know in the country that I deal with because we have all of these peer reviews they don't understand how New England works you know their schools are actually owned in almost a regional by by the towns so they always want to know oh is it a
010town job or is it a school job as well you got to understand how the funding works and who can get obligated so yeah we're going to talk about some schools obviously cost or a high topic on schools and if you look at the pictures there there's always going to be a little leaf there in the first one right so schools and are you looking to green your schools or are you taking the uh you know ESG perspective and then there's a little lightning there so that's about cost and energy and deferred maintenance and then CO2 you know I mean are you really taking a net zero look at your buildings whether the new one the two new ones that you're going to build or try to decarb you know some of your other buildings
011and that's for me trying to partner uh with you to understand what your lens is so that I can bring my lens to it and expertise and that's another thing you know that it's a differentiator for some of our competitors some of our competitors just launched into that energy space I have subject matter experts that actually design those buildings and because we make the equipment we're agnostic so I don't care what equipment it is if your staff is trained on tritium system and we have a controls opportunity and that's what's going to be if it's a train or Carrier equipment that's fine ours is yours because I'm above the branch I don't push it but I do have the benefit of having subject matter experts that actually do this and work in the buildings um
012and that's not to put Engineers down you know but I'm talking about partnering with some of my guys that are actually in the field on a regular basis not just making you know using your education to look at existing buildings they're actually designing them uh you know on the ground floor uh and then global concerns um this is simply a focus on the core Mission educating the students at Cheshire and you have an opportunity you have a responsibility to make sure those buildings are the healthiest that they are they're operating efficiency efficiently and somehow you're able to maintain those and it's at the low in the total poll in terms of the mission I understand um but I think you've got a fairly good plan it's a robust plan the the you know taking three
013schools offline getting two maybe doing some of that redistricting I think that's all really good stuff where I come into those types of things is what is the system that you can do and how how we can do them best and I'll send you some follow-up documentation on this point if you're building new schools I'm not going to be really involved with it except for when there's a problem when you come to the value engineering side of things because you wanted the Smart Board you know the the cooling system and you want and all of a sudden the budget's not there what ends up happening is everybody starts throwing things out and they don't get what you want if we are working collaboratively together I can supplant some of those costs in the other project
014we can pivot and try to make sure that you're getting the best of best and I'll send you a video with four parts you can look at at your leisure with a school system that was having the same types of struggle I've sat with some school boards and literally listened to them um where three million dollars over the HVAC and I'm like I don't have a project yet I've been talking to you guys but I could solve that problem very quickly and very easily and so it's not a bad time um maybe my project doesn't even get off the ground but we're actually looking at it and there's a way that I could pivot and help sooner than later um and understand that you know I understand that's the process because when you're looking at
01552 million over over um several years and you've got the new schools on there I mean it may seem like a lot but don't don't um don't discount the fact that it could actually really help you get what you want when you when you when you get those two buildings uh moving down the path so this is just you know Common um things that you're seeing like where your pain points are and and this lots of times we'll we'll do this we'll get a meeting we'll move down a little bit and we'll take all of this out and we'll start to do it collaboratively together let's really make sure that the team that's going to come in to help you really hear us from you so but this is just collectively some ideas that's on
016timing it's going to try to keep me going huh um so agent infrastructure life cycle costs Rising energy I mean eversource just went up like 38 everybody went from 12 cents to 22. if you bought you know for a few years you know it's going to change it's Spike cyclical um but it was a certain pain point so I don't know how to stop that guys um but again there's also some transparency stuff that that we'll we'll talk about and keeping up with the technology making sure that you do you're doing are attracting students and they're not going other places they're staying here in your school system because there's a cost associated with that which is it's painful um I'm very astute with with school funding opportunities so leveraging state of Connecticut funds for HVAC
017programs new school construction has always been there very familiar with running through that process we do have some customers we put up for the new American schools which is a new eight-year program that you have the opportunity to um to get involved with and put some projects up there as well as there are some new energy conservation Bond grants that are back and available on the table that we could take a look at and making some applications I have a grant writing team that sort of takes that heavy bit for you and sort of helps us get all the documentation up um utilizing alternative contract vehicles to streamline the pros uh the Project's delivery uh as well as maybe utilizing Cooperative purchases to streamline that process uh when we're looking at a bigger project uh
018and I noticed some things that you guys just recently did and this would be a do different right you're spending some money with Architects and Engineers designing boiler systems designing roofing systems I mean it's forty fifty thousand dollars but it comes out of one pot if if we have some sort of a deal in place I cover all those first costs for you okay and as they move down the line you know then those costs are built into the project sometimes the development agreement could State something as bold as I will take care of the architect for the roofing cost and we're going to add a solar project to it if we're not successful in getting the grants you're gonna tell me nothing you still own the roofing design but if I couldn't put the
019package together to meet the ROI that you looked at then you know then it just doesn't happen and so um those types of work working arrangements with how we do business sort of is through that lens of preservation of cash okay so don't put out the money right now um for the architecture or the engineers that you need to do get this work queued up let's just go through the process and we we have the money built into our pre-order costs if you want with the doe um is that that's a federal program I'm assuming and it are we is that something that funds that we can go after obviously and just wrote it down because I was the first time hearing about this Suburban districts applicable it is it is it doesn't it is
020Spearing towards um some communities that are going to be where you're receiving programs saying 50 which is based upon on the different um income levels uh with your student population some of them are targeting more 66 to 67 percent before you start scoring a little bit higher but it doesn't mean that we can't take a look at those and they're it's an eight-year program right now which is going to get a little bit more focused I think what the department of energy is doing um from some of our discussions and I have local and federal lobbyists that worked out of DC is the department of energy wants to be part of some of these opportunities not just continue to throw money over to the state and see what happens and you know I I meet
021with them with about and no Sarah who's on the federal side of receiving federal funds for the state of Connecticut it's built agreement all the time and so what's interesting is the original 800 million commitment that came out of VP Harris uh got sidelined it didn't actually go to um the um the states at this point so there's another tranche of money that's going to be coming but what deal he did was they launched their own renew America a program and pull back some of the money that they're probably going to end up giving to the states and so that that application um the first pass for this year was due January uh 26 and we're getting our move forward to the full applications now which are due in uh by April and then we'll
022get notices May or June about the same timeline as a state of Connecticut's HVAC program which is it isn't roll it's it's rolled into uh School constructions but not through the same program that you know typically you do Roofing and windows which is that non-priority rolling admission uh any ideas it's it's already going to be funded for next year for for 23 about 75 million I'm here to get more money um the the first watch was subscribed I told you we've asked our legislators to Lobby to add that ad HVAC as a non-priority grant item it should be it should be rolled in that way instead of having this one big hump that everybody tried to get into with a 60-day notice I mean come on it was it's like that's a pretty big and
023you had to have your money appropriated right you had to have money appropriated well they backtracked they backtracked on it because they they but they said that they needed it and then then they said well if you just get it to us by February but the deadline for the applications December 1st and then they were saying for February and I don't know if you if you followed what happened but there was some big school districts that didn't get into the new construction that they let they let in legislatively they changed the rules right and so okay in anything so I'm very familiar with all the folks up there um I don't have as big as voice as you guys because you're really the customer they don't see us as we both have you guys as
024customers but um I'm happy to uh Point things out that need to be done Tim you have a question oh yeah thanks Andrew Yeah question on funding opportunities sure do you know Connecticut uh energy incentives rate structures at all specifically I'm wondering about bile cell all sure okay so we have 10 acres in the up in the north end of town that's near by our bus depot 10 acres of basically is not there's restrictions on it and stuff but it's basically unused fields is that a situation where in theory at least we could just put you know two or three megawatts on there do the buy all sell all and just take some get the town just makes a little bit of money right off the top because it's unused anyway it's right next to
025the prison it's not getting used for anything else yeah so under the new non-res program you can go up to five megawatts and you can virtually in that reader and them to beneficial accounts they don't have to be technically your own but I would imagine you have significant load across the the town buildings and the school buildings to be able to appropriate or use those as beneficial accounts okay so you produce them on site you put your own meter there you run it through there you get the z-rec and it's in the atres program you get the Renewable Energy Credit which is a subsidy you bid into it and then you can then take it to beneficial accounts all of the production uh that's associated there on top of that I would capitalize the new
026ITC for you start it up to get 30 it's you know be a check from the federal government uh 40 if we could do at least 40 made in America there's a lot of transitions that happen they make that a little bit easier so if you if you think about that opportunity um to put the solar array up there get 40 uh reimbursement payment I cover bridge financing for that because it'll take 18 months to come in fit into the program and then start you know reaping the benefits across the board I think for an Roi perspective we just have to talk about what the rate is that you're actually offsetting what you agree it to be and this is this would be the guarantee in the production that you agree agree it to be
027or what you want it to be and some people have said look I'm paying 22 I just bought down the 12. just give me 14 for 20 years and the ROI is going to be less than that over there I'm only saying if you want to capitalize on additional money so if it has an Roi of say 10 years but you want to borrow the money for 20. we prefix your your budgets at 14 cents if you will and I'm able then to capitalize and give you six or seven million dollars more money over that same period of time got it okay so I'm just going to put this in my own terms so I think I basically understood what you're saying but part of my role being here is always like I feel is
028make sure the voters are sort of aware of this and what I heard you say was there's no guarantees here or anything but the town schools I'm not sure about the town right but the schools are paying about 15 cents kilowatt hour right now that's I mean that's do a little on Highland recently and that's what okay sends supply cost yeah 15 so 15 cents delivered and what you just said without any guarantees or anything is it's plausible that we could do a project in that space that is not being used for anything else it's just a big field plausible that it could be done for 14 cents a kilowatt hour delivered via the virtual net metering but the point is is that it sounds like it's plausible that there is something that could happen
029there in the next couple years like reasonably good with a reasonable chance of something happening if people are interested in making it happen they're very reasonable don't and I know you were trying to not hold me to 14. yeah well no what I'm saying is if you use 14 and you want to do it for 20 years and fix your budget so they're predictable you know because we'll know how much Productions there we also can look at the last three years four years five years of buildings at 14 on 20 there's going to be a bucket of money there I could say let's just get it to eight cents in which case sure you're not using Opex for capex you're just getting a lower amount of money that you're going to have prefix in your
030electrical budget and then you're going to continue to battle for other funds for other priorities unless you're identifying them up front okay just to be clear the whether we're talking the 15 cents to 14 cents or the eight cents it's delivered it's not supply versus delivery okay anyway I will see if I can if there's anyone in Economic Development that's interested in yeah yeah and so so obviously there's moving Parts with solar sure it's whether it's ground Mark carport roof mounted um there's you know different cost structures uh there but there's subsidies they're called the nres non-residential that's the new program it was the Z Rec program Elric Z Rec program before um that's finished and now it's the NRS program the first year was two megawatts was the max now we're at five megawatts
031so we can produce a lot more it's virtual in that metering okay which means you can get those beneficial accounts it doesn't you don't have to consume it on site you can send it over via paper if you will uh to to another account to zero that out or less in the burden over there sure okay thank you if there's any general questions I know I started talking faster so um also the last bullet points support financing opportunities through bonds loans uh and different tax vehicles I mean this is just us trying to me telling you that we have figured out different ways to do different different things for different folks um that that work and everybody is everybody's flavor is a little bit different you know um and a lot of this is about
032shifting risk if it's a guarantee or if it's infrastructure as a service or you know however we're trying to use con different contract vehicles to get things done I'm going to end up sending you this email so so the bottom you can click on that's actually about school security um and and shooter detection and um I I don't know where you are with that it's a nine minute video it's very well done um that stuff that we do um I didn't in my research I didn't see that you were had a you know we're going to harden the facilities and we really want to do this but if you know that's something you want to talk about we again I I bring a different a different set of folks and have that discussion I mean
033we've done quite a bit of that you know but retrofitting an old building you know is always challenging no matter what you're doing with the security or HVAC yeah I appreciate it just so you know when you when you see it you'll hear it too like this is overlay on music some of your existing systems sort of tying in there to make sure that there's institution multiple alarms should the shooter detection be had everybody's phone is is as well as the police the first call goes 9-1-1 the next one notice buys everybody there if we're tying in some of the smart Lighting systems as well you'll be able to let people know this is the new evacuation plan based upon the location of the shooter I mean it's just there's a whole bunch of stuff
034in there that you'll see that may pique your interest for a conversation um we're really good at creating Wheels um so so this is a wheel um but that doesn't show okay so so the wheel has procurement methods on the top and blue okay and financing mechems on the bot on bottom and just so that you're hearing them I'm just going to go around so tax exemplies purchases what you probably did on your first um go around with amaresco with um unless you bonded it uh tax exempt lease purchase basically should never have been named that um it's just a financing vehicle like mortgage but you can sculpt the payments which means you can pay a little upfront you can pay a little bit more later sometimes those come into play where you're retiring debt
035okay and you want to be able to you know lower your payments until that debt's retired because that debt is already being paid by the existing tax base and so that gives you that flexibility it also gives you flexibility with regards to the rates of electricity or or gas and we try to plan the Commodities Market a little bit and try to come up with something that works so that's that's where you'll see that uh contingent payment uh here's a very unique way JC uh Johnson Controls jci will bring the money link to the table if I did a project that cost you principal and interest say three hundred thousand dollars and it was guaranteed you'd only pay me at the end of the year after we proved that we met the guarantee so you
036wouldn't have any borrowing um you wouldn't have to do any borrowing comes at a slightly percentage High more than what you'd get on the street and certainly a little bit more than bonds but the bonds you know have the issuance cost which is pretty expensive Aaron can you go back to the first one you're saying the first one is similar to kind of a reverse mortgage where we're we're obtaining whatever Equity through the bond and paying back or there's some flexibility in the payback there's always going to be some flexibility in the payback and so if if the project for a variety of different reasons one would be maybe some debt that's retiring you know in the short term four or five years and we're doing a project say 15-year project whatever the term is
037there's the flexibility to lower those payments until that is that debt is retired which frees you up free somebody up you know the dollars that they were already borrowed so let's say let's say it was specifically School dollars that we're going to retire in four years that you need to do in the other project you do it now we can fix the payments so that the payment would increase from an equity standpoint none of these you're not paying anything up front just to go back to what I stated earlier about the architect that engineer I mean all of that uh all of that project cost is born you know by us in the design it's like a design build process and then you're not paying it until construction is done and so you do have
038almost Instant Equity because if you think about the project if it's a 12-month cycle or 18-month cycle you're going to start to see what those benefits are right up front without having to pull any money out okay thank you straight down the bottom uh there's two things Energy service agreement which is an Esa or power purchase agreement which is typically what you would see where you don't borrow any money the assets not owned by you there's some sort of a benefit way fixed rate for electricity whether it be a fuel cell or solar or batteries or maybe say you know just some tax payment or Pilot payments coming in that form JC Capital coming up the right hand side of the wheel we can bring all the financing associated with it um with really competitive
039terms or supplant maybe some some project costs that need to be done that don't follow under the traditional uh statutory uh 20 years with no cash okay so state of Connecticut public act 1180 allowed us to do performance cut Contracting to a not to exceed 20-year term and it says that all costs of the project have to be borne by the savings associated with their project it's silent on you bringing Capital but let's say there's more work that you want to get into the project we can bring our own Capital into that project and then we'll just have two separate contracts one will be a performance contract that needs statutory one will be JC project that meets your requirements to help you guys get more done and then it'll that'll fall off because I'm sure
040that investment will be covered shortly go ahead is is there a way what you're talking about is there a way where this financing stays possible stays off the town council's books that it just stays with the school board here in Connecticut no okay well is it what you're saying it's kind of it almost sounds like you could do that so a tax for for when you do it when you do a telp tax exempt police purchase it is technically off the books um it has helped many municipalities do projects typically sizable which I'm saying more than 5 million that have increased their credit and the reason is is because the work is being guaranteed okay and the the financing that's be that's being guaranteed is being um uh we uh appropriated out of your operating
041budget and so when you go up to Boston and you sit down and you say and they they say oh you're doing an energy performance contract you're getting all of this work done and yes you're going to keep that budget better but you're not you're preserving your availability to borrow and I I leave it up to to your bond Council to tell you that but it is looked as being off the books so if I could just jump in that's exactly what we did with ameresco is we did 10 million dollars worth of work we did not Bond it we have a lease arrangement financed through Bank of America and the basic deal was we did 10 million dollars worth of work we were over 15 years we'll be saving about eight hundred thousand dollars
042a year round numbers and that savings essentially is being used instead of paying for energy you're paying you know back that lease that 800 000 per year so you have 10 million dollars worth of work done you had no change in your outlay of cash instead of paying utility bills you're making these lease payments um and then after the 15 years are over whatever Energy savings you have from the work that you did in that case replaced all of Highlands electric heat with natural gas and we got air conditioning so we continue to get that Energy savings did not have to go to referendum because it was not financed through bonds and it also didn't have to go through our procurement process because the contractor was essentially amaresco who hired the contractors to do the
043work so that you know was that was important for us under that agreement if you're doing one job you you would imagine you wouldn't be doing it this way but if you're looking at a multiple projects and you want to get them streamlined this is the way to do it um in same thing contingent payment if somebody didn't want to borrow borrow capacity as I have a school district they had they just did 186 million new high school and they're like we need to do this work but we don't want to borrow any more money we just borrowed 186 million so we'll continue to pay our books you know we'll put the money up you just same thing that ever Source line item now says eversource a eversource b and b means you're paying Debt
044Service for the work that you got done and you're doing that from the utility budget that you would you have to keep hold you know you'll get the enhancement of the budget the the line item from from Electric savings if you will you just put it over there back into the buildings and then uh the last two availability Arrangement and Concession agreements a lot that a lot has to do with the public private partnership um well let's just say we bought your high school um because you were going to put um you know 20 million dollar Edition on it and we give you concessions we buy buy the high school you stick the money in the bank maybe you generate some money we do the 20 million dollar uh project um and there's some streamlining
045there because it gets privatized from a cost perspective and a speed uh and lesser of tape and then we you know sell you back to building if you will um and those concession you know Arrangements happen availability payments happen if you weren't going to buy it back right away we built a new community center uh with a new firehouse on it and they just needed to prefix their dollars so they privatized it and you know we're in the process of doing that now and then up top and loop just a variety of different contract vehicles so from a from a what we do and delivery or it's anything that touches your buildings outside of your core Mission being educational this lens to the education component because we are a major producer of these equipment we
046know what's happening in the industry and nobody's going into the trades anymore um and everybody is getting around um 3D modeling if you will because that's what the universities are doing as an Avenue uh which we don't we don't disagree that there's certainly a need for that but we're sort of supplanting uh with some of our folks a different avenue for kids and exposure you know at a lower grade level and a higher grade level where they can learn and just you know get into that Greenfield energy field HVAC Tech field um where they maybe they can do something a little bit different again I'm going to Breeze through this I'll send it to you but this is you know stem based there's specific training that was designed for different levels of curriculum there's certifications
047and then we're actually building labs in in school systems where you know we're taking these unutilized space and we're putting lab systems in there and adding Renewables so adding batteries to some we're adding some some solar curriculum to those as well as straight HVAC and Tech so these kids understand you could start you know making seventy thousand dollars alternatively as going going to college and that curriculum was based and it's done at a national level with our team and I'd bring somebody in to talk to your curriculum people if that's something uh and it leads to internships we have great internship program too we have two offices in Connecticut one Rocky Hill and one in Shelton and we have students coming through our best program all the time so that's the that's the you know
048lab and so by the numbers up top I mean we know the shortage almost 40 000 HVAC jobs they're going to go projected open and that can't be filled and so this is going to get you know kids excited about there's a different uh different Avenue and there's something for you out there one thing our one thing our board has advocated is alternative Pathways Cheshire is a town that I think has a reputation for sending graduates recent graduates onto college and I think that's great but I think alternative pathways are also really important because of it's not working for every kid like you said 40 000 jobs open every year just for hvacs across the US which I'm thinking would probably translate to about 400 here in Connecticut yeah so many of those jobs would
049be right near here right near Cheshire a job where is is an HVAC job is that something where somebody might start at 70 000 a year out of high school uh depending on what level they're at but yeah okay yeah I mean I just I I just want to say thank you for bringing this up I think this is really important um alternative Pathways for kids I recently had this you know I got your five kids now the longest is 19. so I missed this boat um but but they're not fully grown interesting they're definitely but I had this conversation with somebody and I said look just go down to a marina on the shore and walk around and ask everybody what they do because I can tell you that when my in-laws had a
050boat there was five guys in there two that were plumbers and I actually have a lectures with money you last he's like yeah I had the vote too all those electricians of the boat we they're making plenty of money and they're making really good money and there's a good career path there certainly and just you know kids don't know it they just maybe it's our fault maybe we just tell me oh I got to go to college educating parents yeah yeah and you know I mean you might be an entrepreneur you might be somebody that's really good and you're going to learn this trade now you're going to open up your own business and forget about the seventy thousand I mean you're you're going to do fine so I it's about the exposure and getting
051them you know motivated about something else that's out there and so you know HVAC Plumbing electrical diagnostic HVAC getting to the Green Fields facility operations uh just it's good exposure I need to go through the rest of this but um I've covered most of it so um so some things that we've done locally so I worked with a town we did a nine and a half million dollar design uh and then discovered that they needed a new roof so what we did is we paused on a large component of the solar project got the Architects out there designed the roof they borrowed from Bank of America to they beat out TD Bank they bought 9.5 million dollars from Bank of America and we redesigned the project like I said before we got too far along
052and then we um we did 14 and a half million and they never borrowed another dime and so we've got two roofs paid for uh utilizing the state's program for roofing uh in the state's program for solar okay and so under the nine Pro non-uh priority list is Roofing solar wind turbines building management systems windows being recorded nobody's ever done a BMS job to the office of school constructions because they have no guidelines they won't give them to me they have no guidelines who has no guidelines School construction for what qualifies oh we know it's a pneumatic system right you guys have an automatic system only schools that should qualify that's exactly why it's up there is why it's in there I can't get the specs on it so but but anyway give us a
053minute no no that's the thing then I have to well because you want to know what it is I'm trying to consult right I can tell you what's in the winter right I can tell you solo a lot of people don't know that they have the opportunity to go up there for solar does it make sense to go up there for solar if you're only getting 30 you know 30 percent I mean there's a lot of red tape it takes a lot of time and you know you may have z-rex already in place and you gotta you gotta move but um it's that's something that you know that we did to help them because it was an unknown problem um while we were in there now that was possibly because the facilities guy had left
054while we were doing it in Zion work new guy was in there there was no paperwork we had no idea you know that the age of the roofs and you know they were 20 plus years old so they qualified for 100 of their rape reimbursement and they were only getting a little north of 50. and so we were we were helpful there we then have another school district where we use three solar opportunities um as Revenue generators in their bigger project to allow them to put cooling you know in a vrf system into the elementary school which they had sent kids home six days two two years ago three years ago now very hot summer very hot you know end of the year and they had to shut the schools down because as you can
055imagine they had no ventilation and it was hot and even opened up the windows the block building was cooking so um those are some of the things that we're doing on a on a creative side what I will tell you is that and we had this discussion that we've only talked once you got to look at the building you got to tighten up the building and you got to make sure that whatever you do inside the building you don't lose a lot and then once you get all of that done okay look at the next level making sure that you can digitize it and control it okay and set it and forget it and make it very easily make the alarming happen over the weekends make the nighttime shutback and the scheduling very easy and
056a very good system so that your buildings start to do that if we ever move to the next step and we are doing this with some of our customers that have done enough already and maybe you have I haven't walked your buildings we're adding a layover technology that we call open blue and that's your advisor and we've got real-time data of what's happening in that building with AI that are directing us with lots of data and things that we can do and we're driving them now to be able to to meet decarbonization goals and and it's just a very exciting time there's a plethora of science projects that are coming into that technology World um so you may hear stuff but we're not doing it right away but we're actually looking at indoor air quality
057and outdoor air quality okay and making sure that we're doing everything from a damper control to maximize those based upon the CO2 and the number of people that are coming in and out of the buildings to give the healthiest environment that you can and you you just can't do that sitting at a screen and you know taking some data points I mean this stuff is is happening you know with the brain power of AI so there's some really cool stuff is this one thought on that I appreciate what you're saying at the same time I was I also get Leary of bells and whistles that can go wrong so there's to me there's a balancing act in using you know technology as it comes forward absolutely but I still want things to go south because
058of every school district and they're they're like in the lower performing in the state that we're talking about um and and I wanted to be able to take their building management system and put it onto the screen and when the proper uh air changes um weren't going to come those buildings were going to turn orange then red depending on what the quality was they're very fearful of that but if we do the upgrades right then they'll be bringing in more than they need to be actually 62.1 anyways and we'll actually be pandemic ready and I told them that this is this is a transparency play that they should do this at this campus it's a three three school campus and then they should model that system around it and it's very inexpensive because it's technology
059there's some software subscriptions and stuff but that to me was telling you know these students you know that are in a district that really needs you know something behind them like you're providing the inner air quality it's been monitored you know on a minute by minute basis you know this this is not this is something you should really consider so they still got to go through Council but I mean those are the things that are out there but science projects were not we're not going to do it and it all depends on what you already have controlled on your existing systems because it is foreign so I have to you said this word three times and typically when this word is said I cringe a little the fact that the supplanting aspect is okay because
060in most cases when we're talking about grants and funding so planting is a taboo so can you kind of enlighten me then maybe as far as so I think you're taking a supplant word with if you have a matching funds Grant yes you can't Supply I understand that so am I used to the word is just me using a word that falls into what that doesn't have the proper definition and so I I'm familiar with different grants like that I'm saying that if you're utilizing grants as buy Downs to the projects okay they're they're going to be variety of different metrics that will have to be satisfied for that Grant and so each one is different and so that the doe Grant had a 95 you had to have five percent we actually got treasury
061approval that that five percent could come in funding from the energy performance contracts from the bank it didn't have to be cash that they had and so there are different things and you know my grants people go through that work with with uh whoever's signed uh from the school of town to do it too to make sure that we're meeting those but you're you're right I know I did say it several times um it reminded me of a a woman I just was talking to in another community that said oh grants everybody thinks they're all free and but nobody wants to fill them out and they also don't understand that there is cost involved with different grants I mean you have to also bring more money to the table because you're getting a specific variance
062up so just and I know you're trying to get a kind of a sense of you know where the planning committee you know might be in terms of our interest level of um you know Carbon you know carbon neutral versus you know just fixing the buildings that we need to fix so I know we talked a little bit about Doolittle yeah you know and maybe if you could give you know everybody a sense of you know right now too little you know which is one of the elementary schools that will be staying do a little on Highland or staying at least from redistricting but do a little neat Windows right there we're mostly still single-payment shows um do a little needs a roof it's not leaking yet but it's um we have a desire to
063um make that school you know give it proper ventilation and central air conditioning and we might have an opportunity for doing the roof to do solar on that Route 4 we had a z-rec for a solar in the form of a carport that that's actually still active so I mean can you talk a little bit about how we might just look at that school to to tighten up the building envelope and bundle some of this and finance it let's do those of the 13.5 million is Windows 3 million the HVAC is about six the windows two and a half to three something like that yeah all three yeah so it's about 39 bucks and so fifty percent of that for the for the roofing and windows comes through State construction OSG gr um and so
064we run the whole pro forma and then we we look at what savings are associated with adding cooling fuel switching um whatever the design should be um and we look at that at efficiency that's going to be small and then we're going to look at Revenue creation we're going to look at where the solar is going to spin off money uh and how much that that could spin off and with that would be hey I could I could show you the pro forma uh at no escalation or I could show you at one percent escalation and by the way now it's fully funded but but to one point that you made xerack is tied to a meter it's not tied to where you located it also is tied to the amount that you've applied for
065and you you've received so for argument's sake if you've received the 100 KW for there and maybe you said it was going to be a carport because the roof is old and you didn't want to put it there you still could put that on the roof if you put the roof on that would produce more a better Roi than the carport the meter will not allow me to add so if I wanted to put some on the roof and some on the carport until that first one is given its PTO permission to operate okay and so I see a little bit of limitations with Doolittle but if I was doing that I would one put those costs together maybe even the way you have them look at the systems that you want to create for
066better ventilation and add a coolant to the building and then I would look at what do I need to do to create enough Revenue on site then I could look at maybe one of the other buildings that has a new one say I only need to put 200 KW over there and virtually send it over here but let's put 400 over there and now we've covered all the cost over there for for that work and so that basically became you taking Doolittle doing the things that you want to do and not asking for Capital contribution yeah and so when you talk about Revenue so I I from I'm a rescue project I know we looked at you know doing windows and windows have a very long payback in other words the Energy Efficiency you know
067the window um doesn't pay back the cost of installing the windows for like 25 years so when you say Revenue that's what you're talking about well so when I say Revenue I'm talking about Renewables first when I talk about Energy savings creation I'm talking about doing things in the building that will save energy when I talk about Revenue it's just like you have the ability to own an asset that produces something so produces electricity that's where I call that repo but it also has a substitute so you're getting you're getting the 12 cents cost avoidance okay as savings or Revenue plus five cents if we bid it into right so now that asset over 25 30 years 25 it has degradation so solar doesn't produce the panel doesn't produce at 100 it goes down to
0680.06 okay but that means in year 25 which it has a warranty to it's producing about 80 to 82 percent so I can only monetize it for 20 years okay based upon the state statute right now if we did a contingent that's like a treating like a PPA I could fund that for longer but that's creating Revenue over and above paying for itself and paying for other things and so that's why I I have that differentiator coming out if I change your lights in that asset's already there we're changing it over for efficiency it's dropping to the bottom line bucket we can use to fund then I'm going to take something out there that produces it might be fuel cell batteries I mean demand might be so high I can shave that you know a
069ton of money off your Demand by deploying batteries I'm not going to have you own batteries that's that's for somebody that is in the science and and we have a lot of companies that do that we actually used to produce them but they'll put deploy batteries on there and give you the ancillary benefits they'll get the benefit out of the utility program one of just one of the things to keep in mind and tell me if you feel differently about it basically the state has its goals so years ago it was 20 by 2020 now I think it's 100 by 2040 and so one of the ways that it's incentivized by the state is I think it's 29 cents kilowatt hour is what like at least for residential you literally if you put in a
070solar you if you put solar on your house you could get paid 29 cents per kilowatt hour so that's real Revenue as compared to like an efficiency that's found or something like that yeah absolutely and um we're lagging I was talking at a casual event that you weren't at about sustainability and what it means to people but you know state of Connecticut is lagging in terms of putting some real teeth um in schools in municipalities I think when they do it'll be you know commercial industrial first but this is happening you know in other parts of the country there's five states that have actual mandated um regulations in terms of reducing carbon and and you know setting some goals not that lip service is bad but our lip service basically was 30 by 2030 85
071by 2040. um the one thing that I I did see that you're impacted in is the school bus situation um where you can get a 10-year contract if you have one one bus that is a battery so out of your Fleet if one is battery you can sign a 10-year contract which helps you lock in that price lower and longer uh and then I don't know 2040 or something like that it's changing over to almost everything has to be you know that's that's one thing they're adding some curriculum um teeth into the climate change and I forget exactly what it was but I just I just heard about that and then um people were testifying I don't know what bill it is I wish I did but they they're trying to get some additional stuff
072that are happening it won't it won't happen this year from everything I'm told but it'll probably trick around the next year we'll see some sort of it one other thought um in terms of our energy transition it's not in Connecticut but I think it's Rhode Island it's the first state in the Union that's had a bill introduced to ban new gas hookups directionally this is where at least I think the Northeast is headed so just something to keep in mind I don't think it's a ban it using gas that's in place but on uh hookups yeah I mean years ago almost everything needed to go to gas right yeah yeah so I mean you know the um there's there's a lot that's happening with hydrogen we'll see how that plays out the batteries are going
073to become you know better performers the fleet you know will do their own we're actually doing some fleet changeovers in other parts of the country but you can imagine that they're they have a lot more land mass um but you guys have some really good infrastructure close by that doesn't limit from a capacity standpoint I have some other towns that want to can't even put a megawatt in because they don't have the three-phase capacity and so you know and you guys from what I looked at you know didn't seem that there'd be too many limitations but that's something that's part of the due diligence to make sure but you do have a pretty good lineup get all the decent amounts just come back to that natural casting the one thing that 50 of the electricity
074in Connecticut or eversource anyway comes from natural gas so even though you want to limit and I know we're not doing it in Connecticut but you want to limit natural gas hookups well how are we replacing that electricity production I I don't know what the plan is for that I haven't heard much about that but cold it is a mystery yeah and I think we forget it comes together too you know German saw that's working out one thing I just want to mention is the the shift uh for a 501c3 municipalities being able to take advantage of the ITC um the only guidance that's out is is the wage guidance right now but in there you you should understand which is actually good is CHP heat pumps solar all that stuff is in there where
075you couldn't take advantage of that before you had to privatize it on the PPA side or somebody else and I know we talked about what you guys did down at the pool um you know you could have done that and gotten here you know 30 or 40 and known that that was available not that that that's what you want to do all the time but if we're doing heat pumps in a school and you can take advantage of that you know get 30 to 40 percent off uh that's a pretty good chunk of change which we didn't see that was available to you in the past so so it's heading in the right direction from subsidies so so let's just go by a little bit so the xerac program here said is replaced now with
076this program yep is it is it better I mean or is it equivalent it's just a does it it's still the same financing it's better and here's why for you guys because you're a Sam account State agriculture municipal being a Sam account you can virtually that meter the only way you could do that in the past is to go into a program that was limited to 30 megawatts and it was oversubscribed you could never get on the list so number one that's better number two it's 20-year contracts not 15. it's still a bidet process so okay there's two two um bid opportunities each year in February um but it's March 14th but it's February it comes out February 60 of the capacity in August 40 of the capacity that's allowed for each year so you
077do have that ability where it doesn't all have to line up you know at one time they make something may happen whatever that's how they're doing it this year that's for the next eight years so would we be better served letting the z-rex we have expire and just apply for an unrest if we're gonna do you know the same project let's say we're going to do a solo carport is there any value in the in that Z rack right now are you okay so at there's a lot of projects out there that are have missed their their uh start date yeah well I mean we could renew ours but you know we're not going to need our start date you okay you can extend it up to a year it automatically terminates after a year
078unless you're extended but you'll never get that year back so you essentially have a 14-year contract over a year behind got it yeah yeah so I call it the day rate yeah so the minute that permission outbreak date heads to April 1st yeah on April 2nd you have now 14 years 364 days production to get reimbursed on what's the what's the nres megawatt incentive right now because what we probably got it 90 bucks that was the other thing is I would say let's look at the rate versus what I have what you do and say you know because I think they were I think we did too they were probably both the small Z rack under 100 so it would have been set at a rate of I'll take a guess somewhere between 80 and
079100 when that when it phased out it's a small one right yeah so the number's set it's not to fit into it you could probably look at so now the small Z Rick is up to 200. and you can go up to 200 under the small which as well Oh megawatts I thought you meant 200.00 I was like what listen when I came out you know and then also like no they cut it down like 140 . I still want to bid that but like we're never gonna get it but um so the rolling admissions on the small goes up to 200 megawatts now yeah okay and then it goes from 2 to 600 600 to 2 megawatts now that goes up to five megawatts so so the large is up there the only bid
080in is medium and large they give you the rate for the other one so we could look that up oh you don't know if that yeah okay no that's fine but then we have the cost comparison it's just right now it'd be 14 years 15 years multiplied out and see what we've got an extra extra five years maybe an extra six years depending on where you are with the existing rack yeah yeah so I would just do that analysis before like terminated they still have to bid in so yeah so look I'll go over next steps with you after you give me feedback and you can send stuff out I'll send you information I'll send you some other links um this is a partnership but it's a collaborative partnership and so I only know very
081little about you I would love to know a little bit more um you certainly have a need I certainly fill that Gap um so if we can talk we'll talk next steps would just be us talking about a development type of agreement or maybe just getting a little bit deeper into me understanding your buildings with some preliminary Walks With My Team I definitely want to hear more the reality is from one of my government had and there there could be rules on bidding in rfps and also just what's appropriate like from a taxpayer's perspective about that stuff and I don't want to I don't want to get into a huge thing over that because this is of energy touches every aspect of what we do so it's big getting involved in something like this we
082did it before do you know how we did that with amerisco I don't know did we do an RFP or we did the RFP to hire Mrs go originally but amaresco once we sign an agreement they did all the procurement work to find the contractors who did the actual labor so the installation you know of the rooftop units and and other HVAC at Highland at the high school or the lighting replacement that was all on I mean we basically did an RF P to uh find a firm that would you know help us uh and put together an energy performance contract so oh did we hire ECG for that no so we hired emeresco um then we had three proposers at Moresco Schneider Electric yeah and I think it was kind of Okay the third
083um they started doing their work and then we subsequently hired ECG as an owner's rep okay so and I've if I had to do it all over again I probably would have done it the other way we would have done the owners rep first okay and then hired at morasko or at least bring them in at the same time because what happened is when ECG came in they had a lot of catch-up to do you know at maresco had already made their proposals we had the you know 40 or so conservation measures in place so it would have been good to have them working hand in hand on that particular project yeah I mean your opportunities are basically Cooperative purchasing if you want you guys do your Source well um that was a bad opportunity
084you can go look at all that all of our competitors on that um equalis has one I mean every every Cooper that you use the state contracts for all things energy absolutely stop everything that's going on with Casa stilantes and his group at AAS stopped everything deep fast Das to extend the contracts that ended on the 31st of December Diaz said we're not doing anything and so so now there's kind of quandary and I just laughed about it with commissioner likes I said you're part of energy and you've got no state approved contracts how is it she's like it's a nightmare I'm like okay I know but so you know RFQ RFP that's fine owner's rep you know depending on uh depending on how difficult the project is um how big you want to you
085know take on to start or start small um certainly up to you you know I'm happy to discuss you know any further I don't want to jeopardize myself from a procurement standpoint but you know we certainly are able to go direct negotiation which I've got the last four times on clients for you know 12 million 21 million uh and in between so but that's up to you guys and that's what Municipal governments okay yeah Cooperative here in Connecticut yep okay yeah so I already mentioned source file so Source well is a regional they may even be national uh purchasing cooperative and if you I mean we could use that to hire Johnson Controls or any other firm on that list or we can go to RPM and that's something that oh is it sort of
086like a pre-vetted state list or something oh no that is state but it is yeah um I just don't I I appearance also makes a difference I mean we can't just have somebody come in here oh you're great I I feel that way yeah the dip you know and I have 100 Justin control Fortune 500 I think it's okay I think I think the difference is when you're looking at something like this is It's a design build process it's a collaborative process and you're not going to know up front what it is so from an RFP perspective it's like what are you pricing yeah no I get it and from a quality perspective it's like okay why don't you show me what you did let me talk to some people and let us like understand
087what the opportunity may look like in a phased approach and I say phased approach because savings are never lost 20 years is a long time and we've had customers that said let's just do this as a phase one that worked out great we did it as a Master Lease all you got to do is go back to the bank and say hey we want phase two project and no problem and so you're not really shorting yourself but you're taking that baby steps in that engagement and you're making sure that you're you know getting what you want everybody you know is what they said they were going to be yeah so yeah and Aaron is here tonight you know as a guest of the planning committee um he he's not being recommended in any way but
088you know he's could share his information I'm sure he would love to have you know the business but I wasn't asking for a vote even when we had a course yes you have just a basic brochure of all the different things that we do um and then you have my business card my email my cell phones on that everybody wants to reach out for questions happy to answer in the afternoon thank you thank you mailed copy of the presentation [Music] clarify the lingle on owner's rep versus so the owner's rep is a firm in the case of the morse code we hire ECG engineering to represent us as the owner right basically to bring their expertise on all the recommendations that maresco had you know about um as an example you know Highlands replacement of
089electric heat they added boilers they added rooftop units you know so there was a whole design that was done we didn't have the expertise to review that you know even though you know we had an agreement with amaresco so they brought their engineers in as owners rest to look at that and basically work on our behalf to make sure that what was being designed and what it was planned to be built thank you thank you and have a great night made sense now what's interesting about ECG is they came in after we had signed the agreement with that Moresco to do the energy performance contract and they it didn't cost us any cash to hire them their fee was built in and folded into the energy performance contract with that Moresco so that's kind of
090how they sold their services that you don't have to outlay any money but our cost is covered by the energy performance contract so it was all fault so that's a semantic move in a sense but you know some plant thinking is not um as long as you're not so planning you can supplant anything as long as it's not illegal right that's why I cringe every time you said it yeah yeah I know you know what it's funny because I don't have that same sensitivity but I I understand yeah you can't supplant certain grants it's not allowed it tells you right you cannot supplant you could supplement your education but you can't supplant your budget so that's not what we would do okay all right solar carports uh so so Bob Mobley from energy resources um
091he and I talked a few times last week that um you know and he's the person that took over the relationship you know from the person that left a Morgan weapon to be very smart and intelligent and knew his stuff um so Bob you know asked what price would you be willing to do a solo carport four on a per kilowatt hour and so you know Tim and I had chatted um after the last board meeting and I went back and I looked at our bills for doolitan and Highland which is the two locations as you know and our cost all in you know the the generation plus you know the transmission is about 14.8 cents per kilowatt hour so I told Bob we'd like to see can you find us a an agreement that
092gets us in at you know 14.8 cents or less and then I also added and if you can't you know we'll take your best offer so he basically takes that information and shops it around to different firms so I'm waiting for him to get back back to me he didn't say oh my God that's crazy but um we'll see and it I guess it's all depending on you know what the cost to build the solar ports would be right because that that's kind of what held us up in the first place is the cost of you know materials and steel went up availability Financial sense anymore so he's working on that um and so as soon as I have his numbers I will email it out do you want anything no no I mean yeah
093I want to hear this but just follow up on what Aaron yes it said just about if we get those numbers to the comparison of what is does he recover was and what the address number is I'll going to email him out to xerx so he could see the document um and then you know we'll get we'll get information back from him I guess just before we move on further do we wanna talk about now if we want to go out for an RFP for services as child and control is presenting you tonight or it doesn't really want to continue to think about and we can be on our next meeting I think it could make sense based on what he was doing the only concern I have is it's that what he's saying it
094probably needs to be wrapped into school modernization in some way like we can't do right and that's what's our plan but I also I also like if there is if there is a real opportunity especially if there's like grant funding that's available now and it's expired in a year I don't want to sit around and say oh let's miss out on you know a million and a half dollars because we want to do school modernization so yeah but generally speaking I think moving forward to hear uh like if we did like an RFQ or something so I get not maybe not asking for an RFP but ECG if we wanted if he wanted the owner's rep if he wanted an ownership first um and you have a Consulting budget anyway my guess is you could
095probably get them involved just from your regular operating budget maybe not um well first of all I can make a phone call that cost us nothing yeah you know to find out how they would you know be willing to proceed we do have a relationship by the way our relationship with demoresco and ECG continues on to the you know end of the 15-year term nine or ten so when it's not like we're calling them out of the blue we're a customer and we pay them you know fees every year this is part of the agreement that does come out of our operating budget it's about 650 000 a year you know and that replaces some of the energy costs that were no longer pay something um and you know I I know that this would
096be a large project I will tell you this there's enough projects on there to justify there's another energy performance contract type of arrangement it sounds like the financing possibilities or even greater than existed you know nine years ago so I had I think it's worth it I mean one thing that he mentioned there I several hundred if not a million dollars plus of just upfront planning money the district would say would say that's one of the big things with the performance contract they've wrapped that into it is the basic idea I mean so as the planning committee you know you want me to go forward and start just doing some leg work and you know I'll go back I'll talk to ECG I'll pull what we did when we hired our maresco in the first
097place it's kind of a two-step process we had a consultant that helped us pull together the RFP and then we issued that and then we went into playing Mrs stuff and we did it generally with the town so the other opportunity here not that I want to complicate things will slow us down but the town has a capital budget too and you know worked out pretty well last time it was a 10 million dollar project eight nine dollars went to school projects because we've got a lot more buildings and infrastructure so if there's an opportunity that you know includes the town and it doesn't you know but it didn't it didn't hit her down it didn't hit our debt budget which is what he was talking about because the council is going to look at
098it to a certain extent a certain extent saying all right wastewater treatment plant 30 million dollars is going to be fully paid off in three years so let's wait for three years out before we put in this new project so we could just if the project worked out we could have it going in say 18 months or 24 months I don't know what the timing is on this stuff but it's as those projects roll off it makes it easier because you know I mean I personally don't really want the whole budget to hold that service to just spike it I'd rather have it more better managed without huge volatility we do have 600 000 a year of the board's budget that it's not going to roll off just yet but in five years that does
099roll off so you know you know if we have another layer of that coming in and it's going to take us a couple of years to get all this done anyway you know so that that we can replace that cost with a new cost and do more of our infrastructure projects I think it would make a lot of sense to start a discussion okay yeah I'd like to see the visual now that we've spoken to him and then you have relationship existing with the current okay I mean it's not gonna we'll get plenty of people that you know are willing to come in and talk to us so I'll try and spay you from the constant meetings and do the legwork no but I thought he did I thought he did a great job for
100me and you know for everybody and also for the people at home watching who are paying attention to it I think I think it was pretty well they didn't get to see the presentation unfortunately oh they did oh you had it on there okay great he's got everything wired in should run out um all right item five phase two Next Generation School modernization plan um what what do we do next I mean we know that so that's at buildings we made right I mean again we know what our capital projects are yeah I guess what my thought is you know how would we take this how would we take this to the next phase meaning you know the answer might be that the town's taking on too much debt with the Schools project now 166
101million dollars coming on That We're Not Gonna Do Anything for 10 years or it might be we want to start the next phase in five years or 20 years or not at all um so I don't know who answers those questions but I think that this group and me sitting in the sea and whoever will be here after me is going to need those details so we're not bonding for things and then throwing them away before the bonding debt has even paid out in 20 years yeah you know what it's what you know comes to mind is that you know the way we did phase one is you know we and when I say we was you know Town Council the board you know there was this agreement they had a school committee you know
102they had they formed the committee and they started doing you know the legwork of you know prioritizing what should be done and out of that came we need to build two elementary schools primarily because of Management's got a spike and we were able to take three of the whole buildings offline nothing that you don't already know but there was a phase two rough schedule that was laid out that talked about you know Renovations and um and the order of things and so maybe that's a starting point I mean I think ultimately you know the plan committee you know has a recommendation to the board and then you know the board goes back to the council not on what the plan should be but on maybe what the next step should be you know it's part
103that is is the way to go and again we have a starting point you know so maybe the planning committee wants to you know at its next meeting take a look at that think about what we have you know laid out on the capital plan and now Capital plan even though it's 52 million it's it is not all inclusive you know something new accomplished like what was originally proposed well yeah projects you know and rich and Dan obviously know our buildings very well they can't identify every single need but they prioritize the things that we know you know over the next five years are going to need to be you know replaced um keep in mind that the capital plan right now has nothing for this building and it's because this building's kind of in
104flux as you look at phase two or three but we do have to make a decision on this building so is air anything for the space used here is there any any part of the space over at the new Chapman yeah no because I know we bounced the idea around but we landed now quite a bit actually and you know the decision was made not to add on to that building for central office space and don't forget we have the hummerston school here as well you know which you know even though that's generally a small footprint but we need to account for that so yeah that's not that's certainly not including yeah I mean Central Illinois it was part of the discussion it was not and then it was and then it was not um
105I think it I think it would make sense we have a starting point if we Circle back to where they left off with where phase one left off on phase two ideas I mean I think it seems to me where my mind is right now is we have Lessons Learned which is our enrollment is incline is increasing in the elementary school which says to me phase two is the the elementary the other two elementary schools and Dot not the high school that's just and that could change but that's where where's dust that off for our next meeting and kind of dig into it I think that's a good place to stop here and then we can recommend to the full board and go from there and see what the council also I don't think it
106hurts to continue the conversation so it doesn't follow people's radar um but at the same time I think we need to be cautious as we haven't even broke ground on the other two yet oh yeah yeah so the perception that I have to say no absolutely but I think I also the discussion is is just that it's a discussion and I I think even though we're not gonna well there will be an architect hired presumably after next Tuesday's council meeting though the school building committee is voting at their meeting Thursday night to recommend one now we know that if a moment this increase enrollment as it continues to funnel through eventually it's going to hit the Middle School and even though it's you know nine years eight or nine years out it takes some planning
107time to decide what we want to do and then get approvals and consensus the other the other point is when it does hit Dodd that does not have a lot of years to look at the high school it's really only two years there let's read that so I think I do think it's important to have it to start a discussion especially I mean if we have an opportunity like you're talking about with a performance contract where it could be you know no cash outlay we can get all sorts of improvements um but to do it in the context of school modernization it just makes sense and the answer might be from the Town Council that there's just no appetite for it but then we know to be doing these you know renovation products and you
108know is there an appetite to put air conditioning and do a little schooling to go out to the photos and ask them for seven million dollars for that or is it going to be that hey do little school is going to be the next to be renovated is new and it's gonna be a 40 million dollar project like let's not put new roof and new AC on Doolittle and then five years later decided to do a 40 I got renovation in school it's just I agree so I know I'm pretty sure you know the thing is that if the HVAC grants are approved for a period of time you know we want to be in a position to take advantage of that right so you know maybe the cost isn't the 6 million it's it's
109a percentage of smaller percentage of that with grant opportunities then you finance some of that you know through you know a third party find some Energy savings you know through solar and help offset the cost and you kind of bundle everything it just might make a lot more sense and then becomes a lot more palatable right role in high school and you know for air conditioning so all right um everything else anybody so what I'll do is I'll start making some of my contacts through ECG um and then once I have that lined up we can set a meeting and then we'll add we'll keep this item on the agenda if you want I could you know I'll just email you the phase two recommendations that I have in the meantime but we don't have
110to set our meetings just yet okay all right no but I that's going to just be a reoccurring item on the agenda though is and we're looking at this concurrently with all the other items that we sure for years yeah they're just like I'm retired in 18 months bye it's not our time right now a year five years notice get that motion to adjourn all right thank you all right