Augusta commissioners tapped the brakes on the expansion of an energy savings contract with Trane and contract manager NV5 after some had questions about what they were approving Tuesday.
In 2022, the city borrowed $24 million to jump-start the construction side of the savings project. Its more visible impacts include HVAC upgrades at some city buildings and the solar panels installed in the municipal building parking lot.
The effort goes back several years. In 2018 the city sought proposals for an energy savings contract and hired Trane. Trane produced a detailed audit of city facilities and their energy usage, lighting, HVAC, water conservation and air quality.
The 2021 report looked at nearly all city facilities, including the Webster Detention Center, Augusta Municipal Building and the Augusta Judicial Center.
Former commissioner Ben Hasan, who was on the commission when it initially hired the two firms, spoke at the Tuesday commission meting. The project was expected to save the city $7.2 million in energy bills over 18 years, with Trane required to make up the difference if savings goals weren’t met, he said.
MORE: Richmond County Board of Education approves decommissioning schools
Hasan said he did not recall the “Phase 2” being presented by Interim Central Services Director Ron Lampkin Tuesday, and expected any new services to require a new request for proposals. Several city officials said they only received final draft contracts that morning.
Procurement Director Geri Sams said she agreed with Hasan. “Phase 2 has not been vetted,” she said. “We did not see it and have not had an opportunity to see how we got here.”
“Is it a Phase 2 or is it a change order?” Commissioner Jordan Johnson asked Lampkin.
“We can call it a change order,” Lampkin said.
Sams said the terminology makes a difference when it came to procurement. A second phase is typically identified in advance, while a change order occurs when something unexpected comes up.
Lampkin, who became interim director after the initial contracts were approved, clashed with Interim Administrator Takiyah Douse last week when he bypassed her office, procurement and the Finance department and put the item on a committee agenda. Douse was not present Tuesday.
He said time was of the essence for the city to maximize savings from tax credits available from the Inflation Reduction Act of 2022 for renewable energy projects. For maximum benefit, the city must break ground on them this year.
Finance Director Donna Williams said the tax credit savings wouldn’t be as great because Augusta typically uses tax-exempt methods of financing projects.
“I think we need to slow down,” Commissioner Bobby Williams said.
Lampkin presented “Phase 2” for Trane and NV5, which serves as a required third-party monitor to verify Trane’s data and work.
“We act as an extension of your staff,” said NV5’s Aldo Mazzaferro, who called into the meeting. “We walk the sites, looking over (Trane’s) shoulder.”
Asked if the agenda items were a change order, Trane Account Manager Cal Smith said Trane “is neutral on that.”
The commission voted 8-1 to delay a decision until after the Masters Tournament. Commissioner Catherine Smith McKnight voted no and Commissioner Wayne Guilfoyle was absent.
“I voted no because 30 days is kicking the can down the road,” McKnight said.
