HomeMy WebLinkAboutFCMeetingMinutes_04.17.12
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TOWN OF NORTH ANDOVER
FINANCE COMMITTEE
Meeting Minutes
Meeting Date:
April 17, 2012
Meeting Location: Town Hall, First Floor Meeting called to order: 6:45PM
Conference Room
Alan LeBovidge AL, Chairman Ramsey Bahrawy- RB
X
Tom Dugan TD, Vice Chairman Robert Norbedo-RN
X
Ben Osgood-BO Matthew Remis-MRem
X X
Dan Leary -DL
x
Peter Besen-PB Pat Sifferlen, PS, Admin
X X
Donald Elliot DE
Non FinCom Members in Attendance
OTHERS: - Ray Santilli (RS), Stan Limpert (SL), Jim Mealey (JM)
Note: All FINCOM votes are subject to change upon receipt of new information.
Note: Documents used in this meeting are listed in Document Table, herein.
II. Previous Minutes Approved
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AGENDA ITEM: A ESCO DISCUSSION (Ray Santilli and Jim Mealey)
RS Over a year ago the Merrimack Valley Planning Commission on behalf of its
member communities selected Ameresco Inc to perform Energy Performance
Contracting over 7 companies applied. They also hired a private consultant to assist
the towns and act as an objective person to assist communities. Last May the Board
of Selectman and School Committee gave approval for Ameresco to perform an
investment grade audit (IGA) in all municipal and school buildings took roughly 8-9
months. They gave a report that was separated into 4 categories, and over 7 million in
projects. Town met with them and took out all enterprise projects now there are 89
projects totally over 4million. The cost of the projects would be offset by the energy
savings over a number of years. This company is a design/build company. The ESCO
provides all the services required to design and implement a comprehensive project
from the initial energy audit through long term monitoring and verification of the
project savings. No bidding process still prevailing wage. 2 project selection sheets
were distributed to members one showing projects by buildings and one showing by
category. There are 4 different categories (O) obsolete, not functional, unserviceable,
(P) problematic, operational or comfort issues, (E) end of useful life failing equipment
(S) savings cost savings. Amounts are 3.6 million for school and 800K for municipal
side. Savings are guaranteed. The ESCO provides a guarantee that the savings by the
projects will be sufficient to cover the cost of all or some of the project financing for
the life of the project. If they do not match what they have promised they will write
the town a check. Two options do this are leasing or bonding. If Leasing (Ameresco
financing) we will not incur charges of bonding.
MR How big is the Company?
RS they have been doing business in other states. We are not the first to jump into
them
AL what if the job is not done properly?
RS we will receive a check if they do not meet their savings
PB Are there any warranties?
RS we would be under contract for 15 yrs
BO do they name equipment and guarantee price?
RS they will generate a 300 -400 page report and name all equipment. Paragon is our
project manager and will oversee.
RS Municipal and school will still receive utility budgets (general Budgets) and then
take back savings to pay cost of bond.
Enterprise funds were not added because it added a lot and big projects were already
funded.
DL Looking @proposals about 1/3 of cost is energy. IT Systems who is actually
proving savings?
RS Savings is determined by EMS systems.3% escalation of cost for energy added in.
Maintenance will be done by them for a period of time based on contract also by
Facilities manager he has been going with Ameresco to see buildings and equipment.
If we do not do any of these projects we will owe them 40K we cannot get an audit of
both municipal and school for any less. If we go out to bid it will cost us over 300 or
400K dollars. We will need to do a minimum of 1million to save the 40K.
MR we need to check the sources other towns they have worked with. Have you
talked to other towns?
RS this was an RFP and 7 other companies bid on this. MVPC selected them.
RS If town meeting turns this project down we will still owe them the 40K. If we do
projects we will not owe them the money.
4.3 million in costs savings over 15 yrs will pay cost borrowing rate @3.75%
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AGENDA ITEM: A
Discussion: AL:What are the steps for this?.
RS If we decide to bond it we need to go Town meeting so we have article in
Warrant. We go thru leasing borrowing it would be out of town meeting scope it
would be part of budget. Super Majority 4 votes from selectman and 4 from School
committee Decision will be made before Town Meeting.
III. New Business
IV. Next Meetings
April 24, 2012
V. Adjournment-
Motion: MR Unanimous
Seconded: DL Time: 8:25
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DOCUMENTS PROVIDED AT MEETING
TYPE FROM TO SUBJECT COMMENTS
ITEM #
1 Pamphlet Ray Santilli Fincom Energy Performance Contracting
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ITEM # ACTION ITEM INDIVID. COMPL. STATUS
DATE