Dothan City Schools approved a $10.6 million energy services contract to fund a series of energy-saving upgrades at many area schools during Thursday’s specially-called board meeting.
The performance bond will allow the system to fund the replacement and upgrade of system-wide lighting and HVAC systems at Dothan Preparatory Academy, Carver Magnet School, and Selma Street Elementary School.
The debt service on the performance bond will mostly pay for itself with the annual savings in utility costs guaranteed by the company Trane, Inc. The system will be responsible for repaying $2.9 million.
Chief Financial Officer Mike Manuel recommended proceeding with the contract to prevent future costs necessary to keep facilities open.
“If we don’t do something at Carver and Dothan High, we will be spending some major dollars over the years just to keep them running,” Manuel said.
He expects the system will be able to fund the debt service, $14.5 million over 19 years, with the savings costs and contributions from the board of $155,000 a year to pay off the debt by 2031.
Manuel recommends, however, that the board not incur any more debt for three to four years, unless it sees an increase in funding.
Earlier this year, the board approved a $15 million capital improvement bond to fund a series of construction projects designed to upgrade facilities and renovate them for their new purposes.
Other business items:
>> Superintendent Phyllis Edwards introduced a new logo for the Dothan City School system to be approved by the board at a later meeting.
>> The board approved a custodial bid from ABBCO Service Corporation in the amount of $602,608.
>> The board approved bids from Great Southern Recreation for $51,720 and GameTime for $25,786 to extract and move playground equipment to schools in need.
The board will convene for a regularly scheduled board meeting on Thursday, June 20, at Beverlye Intermediate School at 5 p.m.