Washington C.H. is preparing to enter into a lease/purchase agreement for a comprehensive energy program and energy capital services.
Wednesday the City Council held the first reading of a resolution to contract with Honeywell International Inc. for financial services for comprehensive energy programs. The city plans to enter into a 10-year lease/purchase agreement not to exceed $610,000.
City Manager Joe Denen said that the city looked at other financing agreements, but decided to go with Honeywell because the rate could be locked in a 4.2 percent for the entire 10 years.
The council members also voted to enter into an agreement with Honeywell for a comprehensive energy program. At the Aug. 27 meeting, city officials said that the plan will reduce energy consumption, saving 34 percent of costs at the administration building over 10 years and providing other energy cost reductions. By making changes to building lighting, boilers and street lights and negotiating with Dayton Power & Light, the city can see an eventual savings.
The program will be funded by the savings generated through the increased energy efficiency. Those changes include a roof replacement at the administration building and the old YMCA on Main Street which now houses the city's Tax Department. New roofs will keep their integrity for about 15 years and combining this with the replacement of older rooftop cooling units for the buildings will increase energy efficiency, said Keith Valiquette of Honeywell at the Aug. 27 meeting.
At the administration building, 10 windows also will be replaced to reduce noise and air leakage while improving the look of the building. All together, Denen said the changes at the administration building should produce a 34 percent energy cost savings. This will reduce carbon dioxide emissions 11.4 percent, or 471 tons a year, the equivalent of 129 acres of tress.
Valiquette said Washington C.H. could see significant electric savings by switching from incandescent lights to LEDs (light emitting diodes) in traffic signals. The LEDs last longer and reduce energy costs by 50-60 percent. About 60 lights would be changed, those not part of an Ohio Department of Transportation grant that will be used to replace the main traffic signal system through the city.
Another idea Honeywell brought to the table was a rate change with DP&L. By having the city buy its own transformer and invest in some infrastructure at the wastewater treatment and water plants the energy company will be able to give Washington C.H. a much better rate.
Denen said the city also looked into alternative energy sources like solar panels, but that using them would be a symbolic gesture that actually would not provide much energy to Washington C.H. Ultimately, reducing consumption was the best choice overall.
Additionally, Denen said that at the next council meeting someone will attend to discuss the natural gas aggregation program on the fall ballot. In February, council members voted in favor of putting the idea on the ballot.
If the measure passes during the Nov. 4 election, the program would let the city enter into service agreements as one large group in order to buy natural gas at lower prices. This would be done primarily for residents and small businesses.
Eligible Vectren customers would automatically be enrolled in the program, except for those who choose to opt out.
The possibility for the local program came about after the Ohio Legislature enacted natural gas deregulation legislation which lets cities aggregate, or form a group for, the retail natural gas loads in their jurisdictions.
The city is interested in reducing its overall energy costs by "opt-out aggregation" and combining its government-owned natural gas accounts, according to an agreement between Washington C.H. and Buckeye Energy Brokers Inc., an energy broker certified by PUCO. The ordinance stated that this would provide "an opportunity for residential and small business customers collectively to participate in the potential benefits of natural gas deregulation through lower natural gas rates which they would not otherwise be able to have individually."
If the aggregate program takes place, the council will develop a plan of operation and hold at least two public hearings on it. Customers also will have to be notified that they will automatically be enrolled and given an opportunity to opt out. Once in the program, anyone enrolled will have the chance to leave the program every two years without paying a switching fee.
According to the arrangement with Buckeye Energy Brokers Inc., the deal between the city and Buckeye will be in effect for three years or until the end of the master service agreement with the selected supplier, whichever is later.
As the fall election approaches, Washington C.H. officials also are encouraging people to get informed about the issues that will affect them and the city.
Issue 2, Clean Ohio, benefits municipal corporations and should continue, said Denen at Wednesday night's City Council meeting.
Issue 5 affects payday lending practices. Cities are not allowed to regulate payday lenders, but the Ohio General Assembly sought to limit the rate the lenders may charge. A yes vote would uphold the changes made by lawmakers.
"The move to begin to regulate them is a very good move," Denen said.
Councilman Tim Fogt encouraged voters to think seriously about the issue, which was introduced by state Rep. Chris Widener, who also is the architect who designed the new police and fire building being constructed in Washington C.H.
Denen had no opinions on Issue 1, which provides earlier filing deadlines for statewide ballot issues, and Issue 3, which deals with private property rights for lakes and watercourses. Neither affects Washington C.H., he said.
The city manager also did not issue an opinion on the proposal to build a casino in Wilmington. He said told the council that the economic impact is debatable and that there also were "serious moral considerations" with the issue.
Reader Comments Posted: Thursday, September 11, 2008
Article comment by:
G. Burton
Regarding "The move to begin to regulate them is a very good move," Denen said.
I have to point out that this comment indicates a common lack of understanding of payday lending. Payday lending is already a heavily regulated industry. Reg Z, Reg P, the Ohio Check-Cashing Lending Regulations, minimum requirements for lenders… you get the idea. The payday lending industry sought even greater regulation in the form of mandatory repayment plans, tighter collection practices and other changes.
Unfortunately, in the election year fervor common sense fell to the wayside and the general assembly passed a “scorched earth” bill that was designed to do one thing – kill the industry. This is not “a move to begin to regulate” this is a bill intended to grab election year headlines at the expense of thousand of good jobs and depriving consumers of a product they obviously need and use. This is politics at its worst.
Furthermore, Issue 5 does NOT undo the new lower rate capped product in HB 545. It allows the new loan product to not only go into effect, but it bribes institutions with below market funds (your tax dollars at work) to offer these new short term loans.
Voting NO on Issue 5 will enable both products to be offered at once and let the consumer pick the winner. Isn’t that the way it should be?
Posted: Thursday, September 11, 2008
Article comment by:
Jon Schultz
"The move to begin to regulate them"? What a distortion. HB545 ends short-term loans as an option for consumers and puts short-term lenders out of business by requiring that the loans be offered for less than the cost of issuing them. Preserve the free market and vote No on Issue 5.
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