Over the next decade, Blount County Schools may need $44.3 million in plumbing, mechanical and electrical upgrades, but energy savings could fund about $10 million worth of the work.
A preliminary audit by Trane found an estimated $15.4 million in “immediate capital needs” across the district, according to Owen Nevader, comprehensive solutions leader with Trane. The figure includes heating, ventilation and air conditioning units, many of which are more than 20 years old.
“It’s either at death’s door, it’s past its expected life expectancy or its failure is imminent,” Nevader said during a presentation Dec. 1 to an online meeting of the Blount County Commission’s Education Committee.
“These are the kind of things that keep the Blount County Schools maintenance team working in fireman mode as opposed to being able to do maintenance,” he told the commissioners on the committee.
With energy-saving upgrades, Trane estimates BCS could cut utility costs by nearly $625,000 the first year and operational costs by $72,500. That could be used to pay the debt service for about $10 million, Nevader explained.
The cost of doing nothing, he said, is $625,000 a year going to the utility companies, or more than $1,700 a day.
Going beyond the self-funding projects, Trane estimates over a decade nearly $44.3 million in improvements would result in $740,155 in annual utility savings.
As Nevader began a summary of Trane’s preliminary audit, he said, “It might make you cringe a little bit, but I think it’s important that you understand that Blount County Schools is really not that unique from a big-picture standpoint when it comes to where public K-12s are in the United States.”
“There’s just never enough money to go around to keep these real estate assets in the kind of condition that you would think they would be kept in,” he said. Blount County Schools covers about 2.3 million square feet of space, and the preliminary audit found immediate needs at more than half of the 22 sites.
Trane now is asking for approval for the next step: a $375,000 investment grade audit.
If the school district continues working with Trane, that cost could be rolled into a guaranteed performance contract. The energy savings would pay the cost of the audit, and if the projected savings falls short any year, the company would write a check to the school district.
That audit would take about six months, and BCS would be able to use the results for planning and budgeting.
Nevader said Trane would work with the school district to sift through the potential projects and prioritize work with available funding.
Energy savings
BCS spends more than $3.4 million on utilities annually for its 21 schools and Central Office.
Most of the potentially self-funded projects focus on changing to LED lighting and high-tech controls to manage energy usage.
For example, occupancy sensors would turn off items in unoccupied areas, and Trane’s Pivot smart thermostats would work with building automation systems to not only allow greater control of energy use but also capture data to improve efficiency.
In addition to paying for itself in savings, Nevader said those projects would return $4 million to the budget over 20 years.
One way BCS might borrow money for the improvements is the Tennessee Energy Efficient Schools Initiative, tapping up to $5 million at an interest rate of half a percent, Nevader said.
Heating, ventilation and air conditioning work will save money, but not enough to pay for itself, he said.
But wait, there’s more
During the committee presentation, Nancy McBee, business development manager for Trane, pointed to studies showing that improving lighting and indoor air quality are correlated to increased student achievement.
Trane also has several educational enrichment programs to offer, from encouraging students to take part in energy savings in schools to science programs.
McBee said the company would love to partner with BCS in developing an HVAC course at the proposed Eagleton College and Career Academy, too.
Nevader noted the potential environmental impact of the upgrades, reducing greenhouse gas emissions by more than 13 million pounds a year — the equivalent of taking more than 1,176 vehicles off the road or planting more than 143,000 trees a year.
Trane’s work does not include sewer plants, roofing or exterior wall needs, but during an investment grade audit the company would make recommendations based on a districtwide visual roof inspection.
