Guaranteed savings — that’s what an energy technology firm is promising the city if it allows the company to come in and redo all city buildings with the latest in energy-efficiency.
No thanks, the Board of Aldermen told them last week, at least not for now.
Public Improvement Building Committee chairman Jim Orazietti brought Johnson Controls in to talk to the Aldermen Thursday about the program that would guarantee savings that would cover the cost — or else the company makes up the shortfall.
“They will make our property energy-efficient at no cost to us,” Orazietti said.
The city would put up a determined amount of money for the work, he said, and the company would guarantee that money returned over a period of time in energy savings. If the savings fell short, the company would make up the rest, he said.
“We have done a lot of programs in some of the buildings on our own and tried to get grants,” Orazietti said, but Johnson Controls would complete all of the buildings under the program.
“When you install more efficient units, operating costs are reduced,” said Shawn Dickerson, Johnson Controls’ New England Installation Manager, “and that goes toward paying for the upgrade.”
The company would look at everything that uses energy, he said, from street lights to boilers to heating and air conditioning.
Johnson Controls guarantees the savings, he said. “If we identify $100,000 in savings, we guarantee a $100,000 reduction in operating costs that goes toward the upgrade costs,” he said.
His company designs, builds and installs the systems, he said.
At the end of the contract, the city owns all of the equipment, he said.
The company has done or is doing similar work in Fairfield, Ridgefield and East Hartford, Dickerson said.
In response to the Public Improvement Building Committee’s request for qualifications, the company drew up plans for two city buildings, Long Hill School and City Hall, Dickerson said, and determined that between $500,000 and $800,000 could be saved annually between the two.
Funding for the initial costs could be bonded through the state at low interest rates, he said, and grants are available through United Illuminating that would cover some of the work.
“Once the project is finished and everything is installed, what if something is not working right — will you come back to help us?” Alderman Anthony Simonetti asked.
The equipment comes with warranties, Dickerson said, and the company provides intensive training to city employees to run and maintain the system, which is computerized.
“It’s critical that we train city employees — when we hand it off to you, we want it to be functioning properly,” he said.
“The City of Shelton is no stranger to energy audits,” said board chairman John Anglace.
In the past it has taken part in a similar program that guaranteed savings that would be realized in five years, he said, “and it ended up taking nine years.”
“I don’t think I am adverse to the concept,” he said, “but I am very concerned about the details.”
Orazietti asked the Aldermen to approve drawing up a project development agreement that would give Johnson Controls the go-ahead to do an audit of the rest of the city’s buildings, but Anglace said he wanted more information before taking that step.
If the city then declined to go any further, it would be asked to reimburse the company for the cost of the audit, Dickerson said.
“I don’t think based on what we have heard tonight we are ready to go forward without investigating it,” Anglace said, requesting the company come back with more information before taking a vote.
