ESG makes numbers work for move to Ops Center


By April you might have a new place to pay your water bill, apply for a zoning permit or attend a City Council meeting if all goes as planned by Energy Systems Group. City Council members and some staffers heard about ESG’s plans and the proposed financing Thursday afternoon at the Operations & Service Center on Beckford Drive.

Moving municipal offices from the “old Jubilee Hospital” to the “old Lowe’s” has been on the table for a while. Roy Williams, a senior account executive with ESG, and David Biles, ESG’s manager of engineering services, gave an update on the plans and answered questions. All council members except John Wester and Ranger Wilkerson were there, along with two staffers from the city’s Engineering Department and, later, City Manager Eric Williams and Assistant City Manager Mark Warren.

The main floor plan in the proposal to renovate the Operations Center shows the council chambers in the space to the right as you enter the building; the chambers could seat 90 people.

Behind the chambers would be the offices for the administrative and finance staffs. The collection counter would be in the front waiting area to the right, and the Planning and Code Compliance departments would occupy the area between the existing conference room and the administrative offices.

Originally the plans called for cubicles for staff, but the updated plans show offices with carpeting throughout. The walls could be removed for rearrangement as needed for future changes.

The Public Works Department, already in the building, would move upstairs, and the Engineering Department would occupy the left side of the building nearest the restrooms and employee break room.

ESG proposes to pay for the necessary renovations to the Operations Center through energy savings over 12 years found from outfitting five city buildings — the two fire stations, the Aycock Recreation Complex, the wastewater plant and the regional water plant — with energy-efficient improvements.

The deal is guaranteed: If the savings do not cover the costs, ESG will make up the difference. The contract would be set up as a lease agreement because that would be the best way to get financing, according to ESG.

ESG has carried out about 50 such energy-savings contracts since state legislation permitted the arrangements several years ago.

Vance County Schools entered an energy-savings contract with ESG’s predecessor, Progress Energy Solutions, in 2003. Although the energy-efficient renovations to buildings didn’t meet savings projections initially, the school system and ESG are working to make adjustments.

Asked for a recommendation on ESG, Claiborne Woods, the maintenance director for the school system, said: “I can say without any reservation that Vance County Schools received more than their money’s worth.”

People at the meeting joked that those words were high praise because Woods is a hard task master.

If the city accepts the lease contract, it will pay for the move from the Municipal Building, a new sign out front and the sound system for the council chambers, but ESG will cover most other bases, from the cost of engineering approval to sales tax reimbursement. The city will use the furniture from the present municipal offices.

The council will be asked to consider a resolution to accept the proposal Monday. The next steps will be to get an engineer to confirm the plans, to finalize the contract and lock in an interest rate, and to achieve Local Government Commission approval of the lease agreement by the first Tuesday in November. With LGC backing, the renovations could move ahead.

City Engineer Frank Frazier added a slight complication when he said the Operations Center’s roof is 20 years old and is in need of repair if not replacement. The estimated cost of $100,000 could be added to the agreement, and ESG could contract for a new roof.

Whether the city moves to the old Lowe’s building or not, the roof will have to be replaced. Making that repair part of the ESG contract could be the most feasible way to get the work done.

Moving to the Operations Center would give city workers a newer workplace and combine all operations under one roof. It should save money each year because the city no longer would pay to heat, light and cool the Municipal Building; in addition, the city wouldn’t have to carry out expensive repairs and renovations to the aging Municipal Building. The Operations Center also has far more parking than the Municipal Building.

The city likely would try to sell the Municipal Building after such a move, and the resulting revenue would go into the fund balance.