Kutztown School Board Weighs $5.2M Elementary HVAC Deal

The Kutztown Area School District board will decide Monday whether to spend $5.23 million to upgrade the heating and cooling system and make related improvements at Kutztown Elementary School. The vote is set for Monday, Sept. 21 at 7 p.m. in the high school library, and residents can speak before the board acts.

The vote

Item 8.l on the agenda asks the board to hire McClure Company for HVAC and related upgrades at Kutztown Elementary under a Guaranteed Energy Savings Agreement. The administration recommends that directors "approve McClure Company to perform Guaranteed Energy Savings Agreements (GESA)," with a total project cost listed at $5,231,547.

Monday's vote follows an Aug. 17 decision. On that date the board approved a notice to proceed that let McClure begin preconstruction work and equipment procurement, and said the final project scope, timing, and details would return for approval on or after Sept. 21. This is that scope-and-price decision.

What a GESA is and how it gets paid

A Guaranteed Energy Savings Agreement is a way to finance building work. A contractor installs energy-efficiency upgrades and guarantees the resulting utility savings will cover the cost over time. If the promised savings fall short, the contractor pays the difference. Pennsylvania school districts use these agreements to fund projects like this one.

Where a school district spends matters to residents, because the school portion is the largest part of most Berks County property tax bills. See our guide to how that bill is built.

The agenda gives the total project cost, but it does not spell out the financing term, the interest rate, or the guaranteed annual savings. Those figures, if set, would appear in the agreement attached to the agenda, which was not part of the public posting. Until the district releases that agreement, whether the promised savings offset the $5.23 million cost cannot be confirmed.

The rest of the agenda

The board will also work through routine and financial items. Bills for payment include $1,109,923.51 in general-fund spending to ratify and $739,013.89 to approve. Directors will consider a special-education settlement agreement with a single student, and a request to lock in electricity rates for the Greenwich Elementary building starting July 1, 2027, through a contract with the lowest bidder secured by the district's energy consultant, Provident Energy. Personnel moves, policy updates, and student transportation contracts fill out the list.

How to attend or comment

The meeting is open to the public in the high school library. The agenda sets aside a public comment period on agenda items before the votes, and a second comment period for other topics near the end. The board's next regular meeting is Oct. 19 at 7 p.m. in the same location. For a broader look at when local boards meet, see our Berks County meeting schedule guide. For recent Kutztown borough coverage, see our report on the borough's data-center and short-term-rental zoning votes.