The Town of Webb Board continued discussions Tuesday, as to the possibility of upgrading the heating systems in two town-owned buildings, to include ancillary Wood Pellet Boilers.
There had been questions among the board following a recent presentation regarding such systems, according to Webb Supervisor Ted Riehle.
One question regarded the appropriateness of a municipality partnering with a private corporation, which had proposed assistance with a grant, he said.
“I did contact NYSERDA, and it [the proposal would be] a legitimate grant opportunity,” Riehle said.
The intention would be to save on current fuel costs.
The two buildings—the town’s Park Avenue Building and its Highway Department building—both heat with fuel oil.
A grant is available through NYSERDA for 75 percent funding with a 25 percent match from the town, said Nick Rose, Executive Director of CAP-21.
That’s a nice amount of assistance, he said.
“Seventy-five or 80 percent is about the best you can do,” Rose said, referring to grant awards.
Supervisor Ted Riehle admitted that the project is costly.
But the grant designed by the governor to promote New York produced goods, and offered through NYSERDA, makes the project more attractive.
A significant reduction in projected fuel costs is another incentive, Riehle said.
“The payback is less than five years,” he said, basing that number on a report from the equipment provider.
The equipment involved includes a commercial wood-pellet boiler with a thermal-mass storage tank for hot water.
Also included are housing units to store wood-pellet deliveries, that then feed into the system.
“The estimated project cost is $336,000,” Riehle said.
The cost for the Park Avenue Building would be $185,000 with the local share being $46,250.
The Highway Department cost would be $151,000 with a local share of $37,750.
Payback on the town’s Highway Garage investment would be less than five years, due to fuel savings.
Payback on the Park Avenue Building would be less than four years, Riehle said.
Councilwoman Mary Brophy Moore said she attended the Adirondack North Country Assoc-iation (ANCA) Energy Conference recently, where she received information on the grant being considered by the Webb board.
“A lot of municipalities are taking advantage of it,” she said.
“These are incredible incentives from what I understand.”
She added that funds available through this particular initiative are due to dry up within a couple of years.
“We’re probably not going to see another opportunity that gives us this kind of match at 75 percent,” she said.
Moore said she still has questions pertaining to the appearance of the facility being considered.
But a letter in support of the town’s participation for grant application purposes is advisable, she said.
“I think it would be a great opportunity for us to save some long-term money for the taxpayers,” Moore said.
“From everything I could gather at the conference, it’s what everybody is doing. Now is the time; the technology is at a really good point; and the ability to buy bulk pellets [is assured due to manufacturing incentives, according to those in the industry].”
The resources are in place and sustainable, she said.
Additionally, the company that would be working with the town is not new at this, Moore said.
So, she believes the outcome will be as described.
Grant monies are expected to be awarded in late fall of 2013, Nick Rose said.
Councilwoman Kate Russell asked about construction details; specifically whether the town could opt out of converting one of the buildings.
She also said she would like to see a contract structured to allow maximum flexibility for the town, should it seek to change course.
Nick Rose said time remains for negotiating the details of a contract.
If successful in receiving a grant, Webb would have two years to complete installation, according to Rose.
This would allow the project to be performed in stages, he said.
Budgeting by the town could be staggered.
Supervisor Riehle reiterated that, even with a grant, the project remains costly.
And grant money is still provided at cost to the taxpayers, Councilman J.B. Herron said.
Councilwoman Moore pointed out that the money has already been allocated.
“Somebody is going to get it,” she said.
Nick Rose reminded that a commitment letter is needed and a deadline is looming.
“Without committing at this point, there is no moving forward,” he said.
The board voted unanimously to go forward with a commitment letter to be drafted by Attorney Richard Frye.
The letter would authorize the grant application to move forward with the town agreeing to support a 25 percent matching contribution.