(In August 2023, the School Board authorized the Superintendent to allow a no-expense audit of the energy systems in the school.  They allowed Siemens to perform the audit.  Here is the presentation Siemens made to the board and community on October 23, 2023.

Notes from October 23, 2023, School Board meeting to discuss the energy audit.

  1. The process was this, the SAU sent out a Request for Qualifications (RFQ) and got three responses.  Siemens response HERE.  Honeywell response HERE.  EEI Response HERE.  Siemens was selected to do the audit.  (Note that Siemens shows two projects in NH, one in 2017 and one in 2018 and EEI shows nine projects in-process or completed since 2017 including a major project for Plymouth Regional High School.)
  2. The Siemens process is this:
    1. Perform the audit.
    2. Present the results of the audit to the school board and the public (Oct 23, 2023 meeting).
    3. School board votes on which, if any of the options to pursue.
    4. If one is approved, Siemens and the school board enter into contract negotiations.
    5. Upon completion of the contract, Siemens performs the work.
  3. Siemans proposed three options.
    1. Option 1 – an energy modernization of the school – cost of $165,420 which will have guaranteed (1) savings of $13,590/year.  (Payback of 12-yrs.)
    2. Option 2 – all of Option 1 but also a new boiler and boiler room, pumps and accessories.  Total cost of project $2,634,413 but with rebates and incentives the total cost to the town will be $2,236,713.
    3. Option 3 – all of Option 2 but also with two “energy recovery ventilators” and two “radiant panels”.  Total cost of project $3,865,626 but with rebates and incentives the total cost to the town will be $3,455,926.

The school board voted to have a public meeting to discuss the options and to get feedback from the public.  This will happen on November 27 at the school board meeting.

Of special note, the SAU and the school board think that they do not have to get this approved by warrant article, they can do it themselves.  TTG has asked the SAU for clarification on how this is possible given RSA 33:8 requires a 3/5 (60%) vote at an annual or special meeting.

TTG contacted Dan Rossner, the business manager for the SAU and asked how the SB could approve this project without going through the warrant article process. Here is his response
Hello, We are in receipt of your email (below). Here is our response: RSA 33:7-e Lease Agreements of Equipment. – The governing body may enter into leases of equipment as required by the municipality. Appropriations to fund lease agreements with nonappropriation clauses may be approved by a simple majority vote of the legislative body. Lease agreements with nonappropriation clauses shall not be treated as debt under RSA 33:4-a. For the purposes of this section, “lease” shall include lease-purchase, sale and lease back, installment sale, or other similar agreement to acquire use or ownership of such equipment as is from time to time required by the municipality. For purposes of this section and RSA 382-A, building or facility improvements related to the installation, purpose, or operation of such equipment shall be deemed to constitute equipment and the costs of such improvements may be financed through lease agreements under this section. Thanks DR

So, it seems that this is a lease, not a purchase agreement. We find that odd because the Siemens presentation does not use the word “lease” and instead uses the word “cost” repeatedly.  In addition, the Siemens response to the RFQ has several example of other school districts with whom they have worked and again, the word “lease” does not show up.

Note that doing this project uses ESSOR funds.  Given this RSA, I wonder if this provision to hold a public hearing on the use of the funds is required.

Update, November 22, 2023

We obtained the letter from the SAU to Siemens authorizing them to perform the audit. It’s HERE.

A couple of interesting things in the letter:

  1. It does not appear to be a contract as it’s not signed by Siemens.  It’s a “letter of intent”.  Some letters of intent if signed by both parties are considered a contract.  See HERE.
  2. There is no specific scope of work specified.
  3. In the schedule on page 2, they reference a board meeting where the scope of the project is discussed.

Please comment below on your thoughts.

Questions for the public hearing on November 27

Siemens lists Hopkinton (contract signed September 2017) and Oyster River (contract signed March 2018) schools as references.  TTG has contacted both and under the NH Right to Know law (RSA 91a) and obtained copies of both contracts.  The scope of work seems similar, but one thing is troubling, neither of these contracts contains a non-appropriations clause.  See here for more information on multi-year contracts.

So, here are some questions:

General Questions:  Do we have an issue that requires spending millions of dollars?

  1. Has there been an analysis by a competent HVAC professional on the issues with the boiler/hearing system?  If so, where is it?  Why are we pursuing this course of action without such a diagnosis.
  2. At the October school board meeting, Steve Babin a HVAC expert offered his expertise.  As of Nov 15, 2023 the school board has not taken him up on his offer.
  3. Has the School Board gone out for bid – OR EVEN INQUIRED for just a new boiler?

Questions on the audit and the Siemens “proposal”:

  1. Reviewing the Siemens response to the RFQ they list two project references from 2017 – 2018.  So, it seems Siemens either hasn’t done a project in New Hampshire for over five years.  Why?  That leads us to ask, are they the best firm to be doing the work?
  2. For the school board to enter this contract without a warrant article, a contract with a “non-appropriations” clause is required.  Neither contract with Hopkinton nor Oyster River contains a non-appropriations clause.  Is Siemens aware that is what our School Board intends to do?
  3. The School Board is holding a public hearing asking for our comments but they do not have a detailed scope of work.  Do they know what they are approving?  NOTE: TTG HAS ASKED THE SAU FOR A SCOPE OF WORK SUBMITTED BY SIEMENS.
  4. Does the School Board plan to hold another public hearing to use the ESSOR funds?  Is the school board allowed to execute this contract that includes ESSOR funds without a public hearing?

Please list below questions you might have and we will list them here.