Anderson
BROWNSTOWN — Guaranteed energy savings contract signed. Check.
Next step: Seeking bids and selecting a contractor to do the work.
The contractor will work with the Brownstown Town Council to determine the scope of work based on what’s financially feasible. The council plans to pick the contractor during the May 16 meeting.
Switching the decorative streetlights to LED is the main priority, but the town may be able to do more if it’s within budget, including a solar project at the wastewater treatment plant.
Rick Anderson, business development director for Johnson-Melloh Solutions in Indianapolis, said there are three ways to finance the project: Cash, bond or third-party lease loan. Most municipalities choose the latter, he said.
“It’s very clean,” he said. “If you use that mechanism, it does not go against your indebtedness, so the thing sits over here in the corner and funds itself with energy and operational costs. It’s guaranteed. Payment is made by your savings. That’s the whole idea of the guaranteed savings is we’re going to come up with a project that’s going to pay for itself.”
The typical range for a third-party lease loan is 15 years, and a maintenance fee would be included in the cost, Anderson said.
“It’s not new money,” he said. “You’re already spending this money. It’s just spending it more efficiently and better. I’m in this industry because I really enjoy helping folks save money.”
The state’s energy savings program allows communities to do guaranteed savings projects, which could include lighting, solar and heating, ventilation and air conditioning.
While the cities of Shelbyville and North Vernon have encompassed several of those elements in projects in recent years, Anderson said Brownstown could incorporate whatever it wants within its means.
Brownstown’s streetlights include the decorative ones lining both sides of Main Street or U.S. 50, along a portion of Walnut Street and around the Jackson County Courthouse. In all, there are 71 lights.
Duke Energy would still own and maintain the streetlights unless the town wanted to buy them, but Anderson said most communities don’t do that because they would have to incur the maintenance costs.
“We’ll investigate what’s the best thing for you guys cost-wise, savings-wise, the whole nine yards,” Anderson said. “And the light levels are just unbelievably better than what the old ones are. It really jazzes up the community. That’s what I tell folks is ‘Go to Shelbyville and North Vernon and you’ll see it. It’s very cool.’ You guys are going to be the next one.”
Councilman Mark Reynolds made a motion to approve the contract, which was seconded by Councilwoman Sharon Koch and unanimously approved.
“I really think it’s best in the long run, especially if it’s going to pay for itself,” Reynolds said before making the motion. “If you want to improve the town, you want to improve the looks of the town … right now, the building that’s happening, we’ve got some growth going on on the east side of the town and the west side of town, new structures going up.”
If the town includes solar panels at the wastewater treatment plant in the project, Anderson said the normal life of those is 25 to 30 years.
Another aspect of the project could be adding electric vehicle charging stations in town.
With a major highway, U.S. 50, going through Brownstown, Anderson said that could be used as an economic development tool. The federal government is offering incentives for adding the charging stations.
“Electric vehicle owners are looking for ‘Where can I charge my car? I might have to charge my car for an hour or something,’” he said. “(Communities) are using that as an economic development tool to get folks to come to their community. That’s something that’s coming, too.”
After utilities, Anderson said the town’s fleet costs are the next-highest. The contract could include looking at lease versus buy and how the town is maintaining its fuel.
“A lot of times, they can come up with a pretty significant cost decrease in how you’re currently doing your fleet,” he said.