$21.5M in upgrades proposed at Greater Latrobe high school campus

Greater Latrobe School District is mulling over a consultant’s proposal for updating aging climate control systems, lighting and other equipment at the senior high and junior high at a projected cost of $21.5 million.

Siemens representatives presented the proposal at this week’s school board meeting, citing an estimated $8.2 million in energy and operational savings over 20 years, which could help offset costs of the improvements.

In December, a seven-member majority on the school board voted to halt a more ambitious facilities plan being pursued by the previous board that called for at least $182 million in proposed construction and renovations.

That plan was projected to raise district property taxes by 24 mills by 2039. It included an addition to the senior high for ninth grade, a new building for seventh and eighth grades, demolition of the junior high and either renovation or consolidation of the Baggaley and Mountain View schools.

The board decided to focus on needs at the two connected high school buildings after Siemens conducted an audit of energy expenditures and facility operations at all district schools.

“They are our largest capital assets and represent our largest costs,” Kurt Thomas, district director of facilities, operations and planning, said of the buildings on the high school campus. “We went through a series of renovations in the late ’90s and early 2000s. Now, 20 years later, all those items will start to fall out at the same time.”

While it would be up to Greater Latrobe to set up financing for the project, Siemens would look to tap government funding to benefit the district.

Proposed installation of new mechanical equipment — to replace old boiler and chiller units — and replacement of existing light fixtures with more energy-efficient versions accounts for more than 95% of the projected cost of the proposal by Siemens.

The consultant also suggested making improvements to HVAC controls, some kitchen equipment and the “building envelope.” The latter category could include making sure windows are sealed properly against weather conditions, Thomas said.

Of the controls, he said, “Not everything is automated, because of the age of the infrastructure.”

“We want to modernize the systems that are keeping the schools up and running,” Siemens account executive Jonathan Zeller told the board. “You have an aging infrastructure. The buildings are decades old, and systems have exceeded their useful service life.

“The cost to maintain them will only go up over time. We want to make sure there is no catastrophic failure.”

Siemens is proposing to take charge of the improvements in accordance with Pennsylvania’s Guaranteed Energy Savings Act. Zeller explained the company would act as a general contractor, overseeing subcontractors, rather than the usual process where the district would seek competitive bids for the project.

In return, Siemens would guarantee the savings it projects for the district, reimbursing Greater Latrobe annually for any shortfall in those expected cost reductions.

“It’s on us to go out and capture investment tax credits and rebates that the district is eligible to receive by making these improvements,” Zeller said, “and there’s a lot of them.”

He estimated the project could qualify for more than $585,000 in tax credits.

All together, he said, savings the district can expect to realize should cover more than 35% of the project cost.

School board member Heidi Kozar said she likes the idea of the project format Siemens proposed.

“One of the advantages that I really like is we don’t have to go through the low bidder process,” she said. “Sometimes the lowest bidder is not the best.”

Thomas said he likes the idea of working closely with the company.

“As opposed to a traditional construction method, where you get low bidders, they did their work and they’re gone, we would have a partnership with a group like Siemens,” he said. “They would track and make sure our systems are operating the way they should be.”

It will be up to the school board to determine a scope for proposed high school improvements and to decide whether the district will use the process Siemens offered.

If the district wants to have the updated equipment installed next summer, the board should decide on the project scope by November, Zeller said.

“We’re happy to work with you and tailor the scope,” he told the board. “Once the board finalizes the scope, we want to go to market for products, materials and local subcontractors that can actually build this out.

“It’s a fairly volatile market with materials and delivery time.”