OXFORD — The SAD 17 Board of Directors tabled a decision Monday night on a $1.19 million contract with Siemens Technology to install pellet boilers at three elementary schools.
The decision was based on a recommendation from the Operations Committee, which warned against making a hasty contract decision.
School officials have been reviewing an 18-year performance contract with Siemens to install pellet boilers at Rowe Elementary School in Norway, Harrison Elementary School and Oxford Elementary School. They would be paid for through reduced fuel costs compared to using the current, oil-fired boilers.
Facilities Director David Marshall said the proposed contract is for $1,197,714.
Members of the Operations Committee said they did not want to make a “rash decision.” Concerns about the length of the contract, the fact that they received the contract only recently and needed more time to review it and other issues stalled the decision.
Superintendent Rick Colpitts told the Operations Committee that officials hoped for a 10- to 12-year contract but the company said they had to go a minimum of 18 years to make the contract work for them. The company told school officials they have no other performance contracts in Maine lasting fewer than 20 years.
Under the terms of the contracts with Siemens, the company must guarantee savings for the school district each year. If the guarantee is not met, Siemens must reimburse the difference between the guaranteed amount and the actual savings.
School officials began investigating alternative energy projects in 2007 when they hired Siemens to install lighting and other energy-saving devices in the schools.
In 2007, officials said the projects demonstrated a 17 to 30 percent reduction in annual energy consumption and an annual cost savings of $247,942.
In 2008, SAD 17 realized $327,000 in energy savings in one year under its contract with Siemens Technology.
By 2012, Oxford Hills Comprehensive High School had a massive biomass boiler installed. Officials decided the savings was enough to investigate using pellet boilers at other schools.
Ten engineering firms submitted qualifications for the proposed projects last year, four were interviewed by members of the Operations Committee. Siemens Technology was selected to do the engineering study and performance contracting for the construction.
At the time, officials said they wanted a contract to pay back the bond within 12 years.
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